Answer:
effective annual rate = 1164.28%
Explanation:
effective annual rate = (1 + i)ⁿ - 1
i = weekly interest rate = 5%n = number of weeks in a year = 52 weekseffective annual rate = (1 + 0.05)⁵² - 1 = 12.6428 - 1 = 11.6428 = 1164.28%
Sadly this question is probably taken from a real world case. Payday loans are infamous for their extremely high interest rates. They can help someone cover some immediate expense, but their customers are digging their financial graves. That is why they are forbidden in many states.
QS 8-5 Computing revised depreciation LO C2 On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $65,800. The band estimates it will use this equipment for four years. It estimates that after four years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that due to concert bookings beyond expectations, this equipment will last only a total of three years. The salvage value remains unchanged. Compute the revised depreciation for both the second and third years
Answer:
depreciation expense per year (for years 2 and 3) = $23,925
Explanation:
depreciable value = $65,800 - $2,000 = $63,800
depreciation expense per year = $63,800 / 4 = $15,950
book value after 1 year = $65,800 - $15,950 = $49,850
new depreciable value = $49,850 - $2,000 = $47,850
depreciation expense per year = $47,850 / 2 years = $23,925
Footsteps Co. has a bond outstanding with a coupon rate of 6.4 percent and annual payments. The bond currently sells for $964.14, matures in 22 years, and has a par value of $1,000. What is the YTM of the bond
Answer:
YTM of the bond = 6.72%
Explanation:
Coupon rate =6.4%
Par value = $1,000
Annual coupon = 6.4%*1000 = $64
Current price = $964.14
Nper = 22 years
YTM of the bond = RATE(nper,pmt,pv,fv) (Using MS Excel)
YTM of the bond = RATE(22,-64,964.14,1000)
YTM of the bond = 6.72%
Which statement is an objection of using the Consumer Price Index (CPI) to measure changes in the cost of living
Complete Question:
Which of the following is an objection of using the Consumer Price Index (CPI) to measure changes in the cost of living?
A. The calculated inflation rate is only accurate for an individual who purchases all the goods and services in the basket.
B. The inflation rate is always understated due to substitution bias.
Answer:
Consumer Price Index (CPI)
A. The calculated inflation rate is only accurate for an individual who purchases all the goods and services in the basket.
Explanation:
To obtain the Consumer Price Index (CPI), a predetermined basket of consumer goods and services is obtained. Weights are assigned to the goods according to their relative values in the basket. The price changes are calculated. The resulting figures are averaged to determine the CPI.
Answer:
The calculated inflation rate is only accurate for an individual who purchases all the goods and services in the basket.
Explanation:
The objective of a(n) ________ system is to reduce costs by integrating all of the operations of a firm.
Answer:
Enterprise Resource Planning (ERP)
Explanation:
Enterprise Resource Planning (ERP) is a business strategy process where organizations manage and integrate the main parts of their day-to-day business activities by using software applications.
The ERP software system is used to integrate planning, accounting, finance, marketing and human resources.
For instance, when an organization is replacing a payroll program that it developed in house, with the relevant subsystem of a commercial Enterprise Resource Planning (ERP) system, It should be noted that a faulty migration of historical data from the old system to the new system represent the highest potential risk because you won't be able to measure and analyze performance.
The objective of an Enterprise Resource Planning (ERP) system is to reduce costs by integrating all of the operations of a firm.
A firm does not pay a dividend. It is expected to pay its first dividend of $0.10 per share in two years. This dividend will grow at 11 percent indefinitely. Using a 13 percent discount rate, compute the value of this stock.
Answer:
$4.504
Explanation:
Dividends do grow at a constant rate in definitely. Hence, price for year 2 will be:
Price2 = D2 * (1 +g) / (r - g)
Price2 = 0.11 * (1+11%) / 0.13 - 0.11
Price2 = 0.11 * (1.11/ 0.13 - 0.11
Price2 = $5.55
Now, Price0 = Price2 / (1+r)^2
Price0 = $5.55 / (1.11)^2
Price0 = $4.504
Hence, the current value of this stock is $4.504
A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 113% of its $1,000 par value. If the last interest payment was made 3 months ago and the coupon rate is 5.60%, the invoice price of the bond will be _________. Multiple Choice
Answer:
$1,144.00
Explanation:
Calculation for the invoice price of the Bond
Invoice price = 1.13(1,000) + 28.00(3/6)
Invoice price=$1,130+$14
Invoice price= $1,144.00
Therefore the Invoice price of the Bond will be $1,144.00
On January 1, 2014, Red Company purchased Patriot Shop for $400,000 cash in a merger transaction. Red Company received the assets listed below and assumed accounts payable owed by Patriot to its suppliers in the amount of $30,000. What amount of goodwill will be recorded in the transaction
Answer:
The value of the assets is missing, so I looked for similar questions and found the attached image.
Goodwill = total consideration paid - fair market value of net assets
total consideration = $400,000fair market value of net assets = inventory + furniture + other assets - accounts payable = $280,000 + $73,000 + $32,000 - $30,000 = $355,000Goodwill = $400,000 - $355,000 = $45,000
Consider the following scenario analysis for stock X and Y. Assume that of your $10,000 portfolio, you invest $6,000 in X and the rest in Y. What is the expected return of your portfolio?
Bear Market Normal Market Bull Market
Probability 0.2 0.5 0.3
Stock X -20% 18% 50%
Stock Y -15% 20% 10%
Answer:
Portfolio r(e) = 0.16 or 16%
Explanation:
We can calculate the expected return of the portfolio by taking the weighted average of the expected return of the individual stocks that form up the portfolio. The formula for the expected return of portfolio is,
Portfolio r(e) = wA * rA + wB * rB + ... + wN * rN
Where,
w is the weight of each stock in the portfolior is the expected return of each stockFirst we need to calculate the expected return of both X and Y.
Expected Return
r - X = 0.2 * -0.2 + 0.5 * 0.18 + 0.3 * 0.5
r - X = 0.2
r - Y = 0.2 * -0.15 + 0.5 * 0.2 + 0.3 * 0.1
r - Y = 0.1
Portfolio r(e) = 6000/10000 * 0.2 + 4000/10000 * 0.1
Portfolio r(e) = 0.16 or 16%
Assume you are managing an assembly line with 7 stations/workers and you know the following: 7 people working ... 20 pieces per hour, 71% efficiency 5 people working ... 15 pieces per hour, 75% efficiency 4 people working ... 13 pieces per hour, 87% efficiency Your boss calls to tell you that operating costs per product are too high. What do you do
Answer:
Utilize 4 people on the line
Explanation:
Here you want to utilize the four people who are on the line as the efficiency could be increased by having minimum 10-15 points also at the same time the number of workers would be decreased by a significant margin
Therefore the option fourth is correct
And, the same is to be considered
All other options are wrong
A firm requires an investment of $30,000 and borrows $10,000 at 8%. If the return on equity is 14% and the tax rate is 21%, what is the firm's WACC
Answer:
11.466%
Explanation:
WACC = cost of equity x percentage of equity + cost of debt x percentage of debt x (1 - tax rate)
percentage of debt = 10,000 / 30,000 = 0.33
percentage of equity = 1 - 0.33 = 0.67
0.67 x 14% + 0.33 x 8% x (1 - 0.21) = 2.086% + 9.38% = 11.466%
examples of kinetic energy
Answer:
Wind mills, moving cars
Explanation:
A book falling off a shelf
Water falling from a water fall
An arrow being shot from a bow
Some riding a bike down a hill
A cart moving down from a high point in on a roller coaster
Quantitative Problem: You need $13,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 4 years, with the first payment to be made one year from today. He requires a 7% annual return. What will be your annual loan payments
Answer:
$3,837.97
Explanation:
The formula for computing the annual loan payments is provided and explained below:
PMT=P(r/n)/1-(1+r/n)^(-nt)
P=loan amount=$13,000
r=interest rate=7%
n=number of payments in a year=1
t= duration of loan=4 years
PMT= 13,000*(7%/1)/(1-(1+7%/1)^(-1*4)
PMT=13000*0.07/(1-(1.07)^-4
PMT=910 /(1-0.762895212 )
PMT=910 /0.237104788
PMT=$3,837.97
In 1930 the United States passed the Smoot-Hawley Tariff Act, which ________. led to the consolidation of the U.S. banking system instituted strict regulations to contain intellectual property theft opened foreign markets for U.S. agricultural products raised U.S. tariffs to near-record highs of more than 50 percent
Answer: raised U.S. tariffs to near-record highs of more than 50 percent
Explanation:
What are the total liabilities of Big Galaxy Toys if the total assets are $248,000 and the equity is $67,000
Answer:
Big Galaxy Toys
The total liabilities will be equal to:
$181,000
Explanation:
a) Data and Calculations:
Total assets = $248,000
Equity = 67,000
Liabilities = $181,000
b) The accounting equation states that assets = liabilities + equity at every given time and as per each business transaction. If total assets = $248,000 and Equity = $67,000. Therefore, total liabilities = Total assets minus equity. This implies that $248,000 - 67,000 = $181,000.
true false capital structure refers to the relative proportion of monetary and real assets in the firm
Answer:
False.
Explanation:
Capital structure refers to the relative proportion of equity and debt that an organization uses to finance its assets.
An optimal capital structure can be defined as the best or optimum mix of equity and debt financing which typically maximizes or boost an organization's market value and reducing its capital costs.
Generally, capital structure can be achieved through a strategic technique of minimizing weighted average cost of capital (WACC) in an organization. The capital structure of a firm will vary over time as taxes and market conditions change.
Additionally, the optimum capital structure used by a firm to maximize its market value;
1. Provides the lowest cost of capital.
2. Has the best mix of common equity, debt and preferred stock.
3. Changes over time as market and firm conditions change.
In its first month of operations, Metlock, Inc. made three purchases of merchandise in the following sequence: (1) 300 units at $7, (2) 400 units at $9, and (3) 500 units at $10. Assuming there are 200 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Metlock, Inc. uses a periodic inventory system. FIFO LIFO The Ending Inventory $Enter a dollar amount $Enter a dollar amount
Answer:
a. $2,000
b. $1,400
Explanation:
FIFO
FIFO method assumes that the inventory bought in first, will be the first to the sold to customers.
Ending Inventory = 200 units × $10
= $2,000
LIFO
LIFO methods assumes that the inventory bought in last will be the first to be sold to the customers.
Ending Inventory = 200 units × $7
= $1,400
Annual demand for an item is 6,500 units with the cost per unit at $380. The holding rate is 18% and the order cost is $15.00 per order. The standard deviation of daily demand is 7 units. Assume 261 days in the year and a lead-time of 4 days. If a service level of 96% is desired during the reorder interval, what is the reorder point
Answer:
124 units
Explanation:
The reorder point (ROP) is the level of inventory which triggers an action to replenish that particular inventory stock. It is a minimum amount of an item that a firm holds in stock, such that, when a stock falls to this amount, the item must be reordered.
DATA
Annual Demand = 6500
Ordering Cost = $15.00
Holding Cost (18% of Price $380) = $68.40
EOQ = √ 2AO / H
where
A = Annual Demand
O = Ordering Cost per order
H = Holding Cost per unit per annum
EOQ = √ 2AO / C
EOQ = √ (2 * 6500 * 15) / 68.40
EOQ= 53.393 units or, 54 units
Standard Deviation of Daily Demand = 7
No of days = 261
Lead Time = 4 days
Average Demand ( Annual Demand/ No of days) = 24.90421
Service Level Desired = 96%
Z Value at 96% = 1.751
Standard Deviation of Demand in Lead Time = SDd * √Lead Time 14
Safety Stock for 93% service level
Z value * Standard Deviation of Demand in Lead Time 25
Lead Time Demand ( Lead Time x Avg Demand) = 99.61686
Reorder Point = Lead Time Demand + Safety Stock = 124
g Use the appropriate formula to determine the periodic deposit. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate Time Financial Goal $? at the end of each month % compounded monthly years $
Question Completion:
Periodic Deposit = ?
Rate = 7% compounded monthly
Time = 19 years
Financial Goal $120,000
Answer:
a) The periodic deposit = $253.03
b) Amount of financial goal from deposits = $57,691.30
c) Amount of financial goal from interest = $62,308.71
Explanation:
You will need to contribute $253.03 at the end of each month to reach the future value of $120,000.00.
FV (Future Value) $120,000.00
PV (Present Value) $31,860.39
N (Number of Periods) 228.000 (19 * 12 months)
I/Y (Interest Rate) 0.583% (7%/12)
PMT (Periodic Payment) $253.03
Starting Investment $0.00
Total Principal $57,691.30
Total Interest $62,308.71
when using the economic order quantity modelmultiple choiceordering costs increase as the level of inventory increases.carrying costs decrease as the level of inventory increases.costs are minimized when total carrying costs and total ordering costs are equal.none of the options are true.
Answer:
costs are minimized when total carrying costs and total ordering costs are equal.
Explanation:
An economic order quantity model can be defined as an ideal order quantity that typically minimizes or reduces the overall ordering cost, shortage cost and holding cost of an asset.
When using the economic order quantity model costs are minimized when total carrying costs and total ordering costs are equal.
Sheridan Company had accounts receivable of $116000 at 1/1. The only transactions affecting accounts receivable were sales of $937000 and cash collections of $889000. The accounts receivable turnover is
Answer:
6.7 times
Explanation:
The accounts receivable turnover is calculated below;
= $937,000 ÷ ( $116,000 + $164,000 )
/2
= $937,000 ÷ $140,000
= 6.7 times
Therefore, accounts receivable turnover is 6.7 times.
Where do you get job applications ?
Answer:
well its hard but you can apply trough online or go so where they are hiring most likely they will tell you to apply trough online because of everything that is happening but anyways i wish you the best and good luck!!:)
Explanation:
Applicants either receive paper job applications from an employer or print them out from an online source to mail to an employer once completed.
An applicant is a job seeker who has submitted an application or a resume in response to a job posting. Candidate refers to the applicant who passed the screening and satisfies the position's requirements. Any person who meets the definition of "marginalized" or "disadvantaged" as stated in Section 12 of the Legal Services Authority, Act of 1987, is considered an applicant.
"Applicant" in the context of patent applications essentially refers to the owner. A person (or business, also known as a "juristic person") who is eligible to file for a patent is referred to as a "patent applicant," or patent owner.
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What is globalization?
Answer:
the process by which businesses or other organizations develop international influence or start operating on an international scale.
in other words
the process where businesses or organizations begin spreading internationally
Explanation:
A U.S. company uses U.K. pounds it already owned to purchase bonds issued by a company in the U.K. Which of these countries has an increase in net capital outflow?
Answer:
d. Neither the U.S. nor the U.K.
Explanation:
Net capital outflow is the net flow of funds i.e. invested in abroad by a nation during a specified period of time generally a year. It could come in positive when the nation invest more amount as compared with the invested amount in the world
Since in the question it is mentioned that U.S company that used U.K pounds that are already owned to buy bond issued by a U.K company
So here no one has an increase in net capital outflow
hence, the correct option is d.
At the current GDP level, inventories are rising. What does this mean in terms of the relationship between aggregate expenditures and GDP, leakages and injections, and would we expect GDP to ise or fall in the future?
Answer:
Explanation:
If at the current GDP level inventories are rising, that means firms are spending more to stock up on inventories.
What does this mean, in terms of the relationship between aggregate expenditures and GDP?
- The information provided in the question shows that aggregate expenditure is on the rise; as firms' spending is increasing.
What does this mean in terms of the relationship between leakages and injections?
- This situation means that the level of injection of money into the economy is rising; probably faster than withdrawal rate.
Would you expect GDP to rise or fall in the future?
- You should expect GDP (Gross Domestic Product) to rise in the future. This is because a greater level of spending in the economy will lead to a higher amount of gross (overall) domestic (within the country) product!
Eve's Apples opened business on January 1, 2011, and paid for two insurance policies effective that date. The liability policy was $36,000 for eighteen months, and the crop damage policy was $12,000 for a two-year term. What was the balance in Eve's prepaid insurance as of December 31, 2011
Answer:
the balance in the prepaid insurance is $6,000
Explanation:
The computation of the balance in the prepaid insurance is shown below:
= Liability policy - crop damage policy
= ($36,000 ÷ 18 months × 6 months) - ($12,000 ÷ 24 months × 12 months)
= $12,000 - $6,000
= $6,000
Hence, the balance in the prepaid insurance is $6,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
You want to retire in 30 years and be able to withdraw the equivalent of $90,000 per year (in today's dollars) from a retirement fund. Assume 3% inflation. You plan to be retired for 20 years. Assuming you can earn 12% on your investments BEFORE retirement and 7% on your investments DURING retirement, how much will you need to save per month in order to be able to fund this retirement
Answer:
$662.18
Explanation:
first we must determine how much are $90,000 in 30 years:
FV = $90,000 x (1 + 3%)³⁰ = $218,453.62
since the inflation rate is expected to remain the same during the 20 years that you are retired, we must find the present value of your distributions using the interest rate as our discount rate:
PV = $218,453.62 x 10.594 (PV annuity factor, 7%, 20 periods) = $2,314,297.65
the future value of your contributions = $2,314,297.65
you can earn 12% interest rate and should be able to make 360 contributions
$2,314,297.65 = monthly contribution x 3,494.96413 (FV annuity factor, 1%, 360 periods)
monthly contribution = $2,314,297.65 / x 3,494.96413 = $662.18
The amount required to save per month in order to be able to fund this retirement is $662.18
Calculation of the saving amount:Since $90,000 now at 3% inflation should be
= 90000 × 1.03^30
=. $218,454
Now the PV at 7% should be
FV = 0;
1/y = 7%;
n=20;
PMT = 218454;
calculate PV = $2,314,305
Now the PMT should be
FV = 2314305;
PV = 0;
n= 12 × 30;
1/y = 12% ÷ 12;
Now PMT = $662.18
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Pearsall company's defined benefit pension plan had a PBO of $265,000 on January 1, 2021. During 2021, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2021 was $80,000. Plan assets (fair value) increased during the year by $45,000. The amount of the PBO at December 31, 2021, was: Multiple Choice $225,000. $305,000. $331,500. None of these answer choices are correct.
Answer:
$331,500
Explanation:
Calculation for the amount of the PBO at December 31, 2021
PBO/1/1 $265,000
Add Service cost $80,000
Add Interest cost $26,500
($265,000 × 10%)
Less Benefits paid($40,000)
PBO 12/31 $331,500
Therefore the amount of the PBO at December 31, 2021 will be $331,500
What is the present value of a benefit of $1,000, to be obtained 20 years from now, with a discount rate of 3%
Answer:
The present value is $553.68
Explanation:
Giving the following information:
Future Value (FV)= $1,000
Number of periods= 20 years
Interest rate= 3%
To calculate the Present Value (PV), we need to use the following formula:
PV= FV/(1+i)^n
PV= 1,000 / (1.03^20)
PV= $553.68
The present value is $553.68
What unique challenges need to be addressed in designing the training program, given the wide range of ages of the employees and the cultural differences in different parts of the United States and abroad
Answer: See explanation
Explanation:
Training programs for employees are vital in order to improve employees skills, improve employees blindness and also help in the accomplishment and achievement of the goals of the company.
The blended learning approach i.e using online educational materials to train the employees. The blended learning approach gives room for interaction and can help in improving the productive capacity of employees.
This can also allow the workers learn about diversity since the employees learn and interact together. Lastly, there should be coaching or mentoring program for employees as the mentors can help in motivating the employees. A motivated and happy worker will help the company to achieve its goals.
10 pts) DoorRed Pharmacy replenishes one of its best-selling drugs using a continuous review policy. Daily demand for the drug is normally distributed, with a mean of 300 and a standard deviation of 100. The wholesaler can process a replenishment request in two days. The current replenishment policy is to order 1,500 units when there are 750 units on hand. a) What is the cycle service level and fill rate that DoorRed achieves with its policy
Solution :
In the context, it is stated that the DoorRed Pharmacy reloads or replenishes its best selling drug by a policy of continuous review.
Mean daily demand = 300
Standard deviation of daily demand = 100
Replenishment lead time = 2
Reorder point = 750
Order quantity = 1500
Therefore, Safety inventory = 150
Standard deviation of demand during lead time = 141. 42%
Cycle service level = 85.56 %
The cycle service level and fill rate that door red achieves with its policy is :
Cycle service level = 85.56 %
DoorRed PharmacyWhat all information we have ?
Mean daily demand = 300
Standard deviation of daily demand = 100
Replenishment lead time = 2
Reorder point = 750
Order quantity = 1500
Safety inventory = Reorder point -Mean daily demand - Order quantity
Safety inventory = 750 - 300-1500 - 100
Safety inventory = 150
Standard deviation of demand during lead time = 141. 42%
Cycle service level = 85.56 %
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