Answer:
The Expected return is 8.492%
Explanation:
The computation of the expected return is shown below:
Expected return is
= Risk free rate + Beta × market risk premium
= 2.10% + 0.94 × 6.80%
= 2.10% + 6.392%
= 8.492%
Hence, the Expected return is 8.492%
We simply applied the above formula
and, the same is to be considered
By considering all the information given in the question
Cory recently sold his qualified small business stock for $90,000 after holding it for 10 years. His basis in the stock is $40,000. Applying the rules as if the stock were acquired in 2020 and assuming his marginal tax rate is 32 percent, how much tax will he owe on the sale
Answer:
$0
Explanation:
Calculation for how much tax will he owe on the sale
Realized gain= $90,000 - $40,000
Realized gain = $50,000
Despite the fact that the realized gain was the amount of $50,000 , the total amount of $50,000 gain that was Realized on the qualified small business stock that was been acquired in the year 2020 and was withheld for than five years will be excluded from the tax .
Therefore the amount of tax that he will owe on the sale is $0
Multiple Mutual Funds had year-end assets of $457,000,000 and liabilities of $17,000,000. There were 24,300,000 shares in the fund at year end. What was Multiple Mutual's net asset value
Johnson sells $111,000 of product to Robbins, and also purchases $12,200 of advertising services from Robbins. The advertising services have a fair value of $9,100. Johnson should recognize total revenue to account for these events of: rev: 01_03_2020_QC_CS-190391 Multiple Choice $101,900 $98,800 $107,900 $111,000
Answer:
$107,900
Explanation:
Calculation for the amount of total revenue to account for these events
Sale $111,000
Less Difference in advertising fair value $3,100 (12,200-9,100)
Total Revenue $107,900
Therefore the amount of total revenue to account for these events will be $107,900
A taxable bond has a coupon rate of 5.98 percent and a YTM of 5.63 percent. If an investor has a marginal tax rate of 30 percent, what is the equivalent aftertax yield
Answer:
3.941%
Explanation:
Equivalent after tax yield = Yield to maturity*(1-tax rate)
Equivalent after tax yield = 5.63 *(1 - 30%)
Equivalent after tax yield = 5.63 *(1 - 0.30)
Equivalent after tax yield = 5.63*(0.70)
Equivalent after tax yield = 3.941%
On January 1, Year 1, Friedman Company purchased a truck that cost $48,000. The truck had an expected useful life of 100,000 miles over 8 years and an $8,000 salvage value. During Year 2, Friedman drove the truck 18,500 miles. The company uses the units-of-production method. The amount of depreciation expense recognized in Year 2 is:
Answer:
the depreciation rate is $7,400
Explanation:
The computation of the depreciation expense for the year 2 is shown below:
But before that the depreciation rate would be
= (Purchase cost - salvage value) ÷ (estimated miles)
= ($48,000 - $8,000) ÷ (100,000 miles)
= $0.40
Now the depreciation expense is
= Truck drove × depreciation rate
= 18,500 × $0.40
= $7,400
hence, the depreciation rate is $7,400
A company manufacture parts using either domestic contractor (A) or competing oversea contractor (B). Find the break-even quantity of parts
Answer:
The table is missing in the question. The table is :
Contractor Overhead Cost Shipping Cost Import tax Part cost
Domestic A 350 0.50 0 8.25
Overseas B 200 1.20 12 5.50
The answer is : The two contractors will never achieve even and the overseas contractor will be cheaper than the domestic contractor.
Explanation:
Finding the number of the parts the two contractors i.e the domestic A as well as the overseas B will cost the same to the company.
Let us suppose the x number of parts that the two contractors will be breaking even. So we get,
350 + 0.5x + 8.25x = 200 + 1.2x + 0.12x + 5.5x
350 + 8.75x = 200 + 6.82x
8.75x - 6.82x = 200- 350
x = -77.72
Since, we get x as negative, it means that the contractor will never get even. Thus the overseas contractor will always be cheaper.
If a firms’ net income (i.e., profits before taxes) is $11.7 billion US Dollars and it has total assets of $90.0 Billion US Dollars, the Return on Assets (expressed as a percentage) is
Answer:
13%
Explanation:
Net income is $11.7 billion
Total assets is $90.0 billion
Therefore the return on assets as a percentage can be calculated as follows
= net income/Total assets
= 11.7 billion/90 billion
= 0.13 × 100
= 13%
Hence the ROA expressed as a percentage is 13%
Return on total assets = Net income of a company over a specific time period divided by the total assets
Return on Assets (expressed as a percentage) is 13%
Given:
Net income = $11.7 billion
Total assets = $90.0 billion
Return on asset = net income / total assets
= $11.7 billion / $90.0 billion
= 0.13
Return on asset expressed as a percentage = net income / total assets × 100
= 0.13 × 100
= 13%
Therefore, the Return on Assets (expressed as a percentage) is 13%
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There is a probability of 25 percent that the economy will boom; otherwise, it will be normal. Stock Q is expected to return 18 percent in a boom and 9 percent otherwise. Stock R is expected to return 9 percent in a boom and 5 percent otherwise. What is the standard deviation of a portfolio that is invested 40 percent in Stock Q and 60 percent in Stock R?
a. 0.7%
b. 1.4%
c. 2.6%
d. 6.8%
e. 8.1%
Answer:
c. 2.6%
Explanation:
Calculation to determine the standard deviation
First step is to calculate E(r)Boom
E(r)Boom = (0.40 ×0.18) + (.0.60 ×0.09)
E(r)Boom= 0.126
Second step is to calculate E(r)Normal
E(r)Normal = (0.40×0.09) + (0.60×0.05)
E(r)Normal = 0.066
Third step is to calculate E(r)Portfolio
E(r)Portfolio = (0.25×0.126) + (0.75×0.066)
E(r)Portfolio = 0.081
Fourth Step is to calculate VarPortfolio
VarPortfolio = [0.25(0.126 - 0.081)^2] + [0.75(0.066- 0.081)^2]
VarPortfolio= 0.000675
Last step is to calculate Standard Deviation
Standard deviation= 0.000675^.5
Standard deviation= 2.6%
Therefore the the standard deviation is 2.6%
Which situations offer examples of Business Financial Management workers? Check all that apply.
Lupe analyzes investment information for companies.
Kirk helps individuals complete bank transactions.
Keisha uses mathematical models to make tools for analyzing finances.
Stuart researches company records to investigate fraud.
Margaret analyzes statistics to determine whether to offer insurance to people.
Chung helps a family create an investment plan.
Lupe, Keisha, Stuart, and Margaret represent different examples of Business Financial Management workers in various scenarios related to investment analysis, financial modeling, fraud investigation, and insurance risk assessment.
Several situations offer examples of Business Financial Management workers. Here are the applicable scenarios:
1. Lupe analyzes investment information for companies: Lupe's role involves evaluating investment opportunities, assessing risks, and providing recommendations to companies regarding their financial investments. This helps businesses make informed decisions about where to allocate their funds.
3. Keisha uses mathematical models to make tools for analyzing finances: Keisha's work involves developing financial models and tools that utilize mathematical techniques to analyze and interpret financial data. These tools assist businesses in forecasting, budgeting, and making strategic financial decisions.
4. Stuart researches company records to investigate fraud: Stuart's role entails examining company records and financial statements to identify potential instances of fraud or financial irregularities. By conducting thorough investigations, Stuart helps organizations maintain financial integrity and mitigate risks associated with fraudulent activities.
5. Margaret analyzes statistics to determine whether to offer insurance to people: Margaret's responsibility involves analyzing statistical data related to individuals' characteristics, demographics, and risk factors to assess the viability of offering insurance products. This analysis enables businesses to make data-driven decisions about insurance coverage and pricing.
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I think my friend like me in a romantic way, but I don't feel the same. any advice?
Answer:
Just talk to him/her/them about it. When you tell them try to be gentle and let them know you still value and would like to continue their friendship. Maybe even help them find someone else. The most important thing is to be nice and try to make them feel comfortable because they might be embarrased.
Explanation:
One of Hartman Company's activity cost pools is inspecting, with estimated overhead of $140,000. Hartman produces throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pool should be assigned to throw rugs
Answer:
the cost assigned to throw rugs is $49,000
Explanation:
The computation of the cost assigned to throw rugs is shown below:
Cost assigned is
= Estimated overhead × number of inspections ÷ total number of inspections
= $140,000 × 700 ÷ (700 + 1300)
= $49,000
hence, the cost assigned to throw rugs is $49,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
. Alternative X has a first cost of $5 million and an annual maintenance cost of $200,000. Alternative Y has a first cost of $7 million, a maintenance cost of $40,000 and periodic expenditures of $100,000 every five years. If both alternatives have infinite lives, create the equation that will yield the rate of return on the incremental investment
Answer:
0 = -$2 million + $160,000 ÷ i - $100,000(A/F,i,5) ÷ i
Explanation:
The equation is shown below:
But before that first determine the following things
Incremental investment is
= $5000,000 - $7,000,000 - $200,000 - $40,000 - $100,000(P/F,I,N)
Now solve it
= -2 million + $160,000 - 100000(P/F,I,n)
As it is a perpetuity so
Present value = Periodic payment ÷ rate of interest
So,
0 = -$2 million + $160,000 ÷ i - $100,000(A/F,i,5) ÷ i
An ABC 40 call is quoted at 4.25 - 4.50, and an ABC 45 call is quoted at 1.50 - 2.00. What is the cost of establishing a debit spread
Answer:
$300
Explanation:
Calculation to the cost of establishing a debit spread
Based on the information given in order to establish a debit spread we were told that the investor bought a 40 call at the ask price of the amount of $4.50 in which the investor also sells a 45 call at the bid price of the amount of $1.50 which means that we are going to calculate the net premium of the amount that was paid in order for us to know the cost of establishing a debit spread
Hence,
Net premium= ($4.50 - $1.50) × 100 shares
Net premium=$3×100 shares
Net premium=$300
Therefore the cost of establishing a debit spread is $300
An increase in the minimum wage is likely to _____ the quantity of labor demanded and at the same time is likely to _____ the quantity of labor supplied.
Answer:
The answer is "decrease and increase".
Explanation:
The rise throughout the subsistence wages was expected to decrease that required the volume of labor and can the same time increase the supply of labor.
Its higher minimum wage also means that many people want jobs. They both rise in labor supply, as well as the decrease in jobs demanded by businesses, was contributing to increased unemployment.
Greg Noronha has been told the expected return on Merchants Bank is 7.00%, He knows the risk-free rate is 2.10%, the market risk premium is 6.45%, and Merchants' beta is 0.78. Based on the Capital Asset Pricing Model, Merchants Bank is:
Answer:
Merchants Bank is overvalued
Explanation:
In the first, we need to determine the required rate of return on Merchant Bank stock using the Capital Asset Pricing Model formula for the required rate of return found below:
The required rate of return=risk-free rate+beta*market risk premium
risk-free rate=2.10%
beta=0.78
market risk premium=6.45%
The required rate of return=2.10%+(0.78*6.45%)
the required rate of return=7.13%
Since the expected return(discount rate) used in valuing Merchant Bank is lower viz-a-viz the required rate of return of 7.13%, the stock is said to overvalued
The type of information that will need to be collected during a project and who will receive this information can be found in the project __________ plan.
Answer:
Communication
Explanation:
The communication plan is the plan i.e. being communicated to the people who are engaged in some kind of project. Without communicating, the plan cannot be executed and also many misunderstanding could be created that ultimately delay the plan execution
Therefore the information i.e. needed to be collected during the time of project so it would be the case of the communication plan
The same is to be considered
Using the axes as constructed below, depict marginal revenue and marginal cost curves that would support the conclusion that the optimal short run output is q = 1000. Be sure to label all important values. upload graph.
Question 1B
Is this a short run equilibrium? Explain.
Question 2A
Reproduce your graph from Question 1, but add an average total cost curve to the picture in such a way that the firm is earning zero profits (π = 0).
Upload your graph.
Question 2B
Does your graph in Question 2A depict a short run equilibrium? If so, explain why. If not, explain why not.
Question 3A
Again, reproduce your graph from Question 1. For this question, depict a different ATC curve, one where the firm has negative profits (π < 0) at the profit maximizing output of 1000. Add an additional average cost curve that will allow you to determine whether to shutdown or keep producing at Q = 1000.
Upload your graph.
Question 3B
Should the firm produce Q = 1000 in the short run or should it shutdown, producing Q = 0?
Answer:
moojajskxjsjiaxjxnwkakcjjwhxhjajjjzbdbsxx
A job order costing system is most likely used by which of the following? a pet food manufacturer a paper manufacturing company an accounting firm specializing in tax returns a stereo manufacturing company
Answer: An accounting firm specializing in tax returns
Explanation:
A Job-order costing system is used when a job is unique and so the costs associated with the different jobs cannot be accounted for in the same manner.
An Accounting firm that is specializing in tax returns will face unique costs per client that they provide their services for so they will have to use a Job order costing method to account for the costs associated with their individual clients.
Assuming a perpetual inventory system and the last-in, first-out method: Nov. 1 Purchased 600 units $80 each 4 Sold 200 units 11 Purchased 350 units $82 each 12 Sold 275 units 22 Purchased 175 units $84 each 23 Sold 155 units a. Determine the inventory on November 30. $fill in the blank 1 b. Determine the cost of the goods sold for November. $fill in the blank 2
Answer:
Results are below.
Explanation:
Giving the following information:
Nov. 1 Purchased 600 units $80 each
Nov. 4 Sold 200 units
Nov. 11 Purchased 350 units $82 each
Nov. 12 Sold 275 units
Nov. 22 Purchased 175 units $84 each
Nov. 23 Sold 155 unit
The perpetual inventory system records a sale in real-time. Under the LIFO inventory method, we need to use the cost of the last units incorporated into inventory.
a) First, we need to calculate the ending inventory cost on November 30:
Ending inventory cost:
Nov. 1= 600*80=48,000
Nov. 4= (200*80)= (16,000)
Nov. 11= 350*82= 28,700
Nov. 12= (275*82)= (22,500)
Nov. 22= 175*84= 14,700
Nov. 23= (155*84)= (13,020)
Ending inventory cost= $39,880
Now, the cost fo goods sold:
COGS= 16,000 + 22,500 + 13,020
COGS= $51,520
g What is the value today of receiving $6,000 at the end of each six-month period for the next four years, assuming an interest rate of 8%
Answer: $40,396.20
Explanation:
This is a frequent amount every period so this is an annuity and the present value is the present value of an annuity.
Period = 2 * 4 years = 8 semi annums
Interest = 8%/2 = 4% per semi annum
Present Value = 6,000 * [tex]\frac{1 - (1 + 0.04) ^{-8} }{0.04}[/tex]
= 6,000 * 6.7327
= $40,396.20
. If real GDP demanded at each price level increases by $50 billion, what is the new short-run macroeconomic equilibrium and the output gap? The new short-run macroeconomic equilibrium is at a real GDP of $ nothing billion and a price level of nothing. The economy has ▼ output gap.
Answer:
The new short-run macroeconomic equilibrium is $600 billion and no output gap.
Explanation:
The increase in demand of $50 billion is the rightward shift of aggregate demand as at each price level the demand increases by 50 units.
Price equilibrium was 110
where
Real GDP demanded = Real GDP supplied in the short run
575 = 575
As there is an increase in Real GDP demanded by 50 units so, their is an output gap of 50 units at price 110.
Resulting the increase in quantity demanded
The new equilibrium price is 120
Where
Quantity demanded = 550 + 50 = 600
Quantity supplied = 600
There is no output gap.
g Suppose you invest $15,000 in Merck stock and $25,000 in Home Depot stock. You expect a return of 16% for Merck and 12% for Home Depot. What is the expected return on your portfolio?
Answer: 13.5%
Explanation:
From the question, we are informed that an individual invest $15,000 in Merck stock and $25,000 in Home Depot stock and expect a return of 16% for Merck and 12% for Home Depot.
The expected return on the portfolio will be:
= [($15,000/$40,000) × 16%] + [($25,000/$40,000) × 12%]
= (0.375 × 0.16) + (0.625 × 0.12)
= 0.06 + 0.075
= 0.135
= 13.5%
Suppose you deposited $1,000 in a credit union that pays a nominal rate of 7% with daily compounding and a 365-day year. How much could you withdraw after nine months, assuming this is three-fourths of a year?
a. $1,011.02
b. $1,053.90
c. $ 951.27
d. $1,073.56
e. $ 980.69
Answer:
FV= $1,054.01
Explanation:
Giving the following information:
Initial investment (PV)= $1,000
Number of periods= 365*0.75= 274
Interest rate= 0.07/365= 0.000192
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1+i)^n
FV= 1,000*(1.000192^274)
FV= $1,054.01
The January 1, 2005, yield on a Treasury STRIP maturing in 8 years is 5.488%. If the face value is $1,000, what should be the quoted cost of the STRIP today, assuming annual compounding?
Answer:
$652.19
Explanation:
the market price = $1,000 / (1 + 0.05488)⁸ = $1,000 / 1.53329 = $652.19
In order to calculate the price of the STRIP we have to use the present value formula.
present value = future value / (1 + i)ⁿ
future value is the face value = $1,000
i = 5.488%
n = 8
A famous quarterback just signed a $15 million dollar contract providing $3 million dollars a year for 5 years. A less famous receiver signed a $14 million dollar 5-year contract providing $4 million now and $2 million a year for 5 years. The interest rate is 10%. Who is better paid
Answer:
the less famous receiver is paid more in current dollars
Explanation:
the present value of the famous quarter back is:
PV = $3,000,000 x 3.7908 (PV annuity factor, 5 periods, 10%) = $11,372,400
the present value of the less famous receiver is:
PV = $4,000,000 + [$2,000,000 x 3.7908 (PV annuity factor, 5 periods, 10%)] = $11,581,600
Explanation:
the difference results form the time value of money, $1 earned today is wroth than $1 earned in the future.
When ___ differ from one global financial center to another, ____ profit opportunities are said to exist but __________..
Answer: cross rates, arbitrage, disappear quickly
Explanation:
When cross rates differ from one global financial center to another, arbitrage profit opportunities are said to exist but disappear quickly.
Cross rates simply means the foreign exchanges rates for currencies of countries. It should be noted that when the cross rates of countries differs, it brings about arbitrage profit which simply means the profit one makes due to the different rates utilized on different markets. It should be noted that when though this profits occur, they disappear quickly.
All of the following are true except: a. Projects have a finite timeline, while programs may exist as long as the parent organization does. b. A program manager has the discretion to make trade-offs in regard to which projects to pursue. c. A portfolio may contain multiple programs and projects. d. A project manager has the discretion to make trade-offs in regard to which programs to pursue.
Answer: d. A project manager has the discretion to make trade-offs in regard to which programs to pursue
Explanation:
A project manager is an individual who is responsible for planning and executing of a project using the available resources and within a specified time frame to achieve the goals and objectives of the project.
A project is a task that has a start and ending and must be completed within a specific time frame using the available resources. A Portfolio simply means the collection of projects, or programs.
Based on the explanation, the answer is option D. "A project manager has the discretion to make trade-offs in regard to which programs to pursue".
A project manager doesn't have the discretion to make trade-offs in regard to which programs to pursue. That is the role of a program manager and not the project manager. The project manager only has discretion when it has to do with making trade-offs regarding the projects to pursue.
Option D is the right answer.
The false statement is option d. A project manager has the discretion to make trade-offs in regard to which programs to pursue.
Trade-off theory:The trade-off theory of capital structure shows that corporate leverage is measured by balancing the tax-saving benefits of debt against dead-weight costs of bankruptcy. The project should contains the finite timeline. Also, the project manager should considered the trade-off theory for pursue it not for the program.
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A company issues $10,000,000, 7.8%, 20-year bonds when the market rate of interest for the bonds is 8%. The bonds were issued on January 1, 2014. Interest is paid on June 30 and December 31. The proceeds from the bonds are $9,802,072. Using effective-interest amortization, how much interest expense will the company recognize in 2014
Answer:
$784,249.08
Explanation:
The interest expense the company would recognize in the year is the sum of the interest expenses for both June and December as computed below:
Interest expense for June=$9,802,072*8%*6/12=$392,082.88
June coupon payment=$10,000,000*7.8%*6/12=$390000
June bond balance=cash proceeds+Interest expense for June-June coupon payment
June bond balance=$9,802,072+$392,082.88 -$390000
June bond balance=$9,804,154.88
December interest expense=$9,804,154.88*8%*6/12=$392,166.20
Interest expense for 2014= $392,082.88+$392,166.20
Interest expense for 2014==$784,249.08
4. Murphy started putting $100/month into his 401(k) earning 6% APR when he was 25 years old. How much will be in his account when he retires at age 65, if interest is compounded monthly
Answer:
The amount in his account is $199,149.07
Explanation:
The computation of the amount in his account is shown below:
= {Compounding period × per month amount × {(1 + rate of interest ÷ Compounding period)^Compounding period × years - 1}} ÷ { rate of interest}
= {12 × $100 × {(1 + 0.06 ÷ 12)^12 × 40 - 1}} ÷ {0.06}
= $199,149.07
Years should be
= 65 - 25
= 40
Hence, the amount in his account is $199,149.07
Kai decides to add color and keep his price the same. This will increase variable costs by $0.40 per issue. What will be the new unit volume (copies per issue) required to maintain $500 profits and cover the increased fixed and variable costs?
Answer:
the first part of the question is missing, so I looked it up:
Kai sells a small magazine full of celebrity gossip to college students for $2.05 per copy. Hiring the printing press for one day, the only fixed cost, is $431 an issue. The variable cost of printing each issue is $1.19 per copy.
before color is added, the contribution margin and break even point were:
contribution margin = $2.05 - $1.19 = $0.86
break even point in units = $431 / $0.86 = 501.16 ≈ 502 units
break even point in $ = 502 x $2.05 = $1,029.10
if Kai wants to earn $500 in profits = $931 / $0.86 = 1,082.56 ≈ 1,083, Kai must sell 1,083 copies
after color is added:
contribution margin = $2.05 - $1.19 = $0.46
break even point in units = $431 / $0.46 = 936.96 ≈ 937 units
break even point in $ = 937 x $2.05 = $1,920.85
if Kai wants to earn $500 in profits = $931 / $0.46 = 2,023.91 ≈ 2,024, Kai must sell 2,024 copies