Answer:
Phoenix Financial Ltd.
For one new share to achieve the $25 price, 50 of the old shares must be given up.
Explanation:
a) Data and Calculations:
Current stock price = $0.50
Reverse stock split to get the price up to a more "reasonable" level = $25 per share
To calculate the number of shares to be give up $25/$0.50 = 50 shares
b) Reverse stock split takes place when the company wants to shore up the per unit stock price. It consolidates the number of existing shares of stock into fewer, proportionally more valuable and reasonable, share price per unit. There are many reasons for reducing the outstanding shares. It may be that the company is facing some financial distress. Or in this case, management may want "to get the price up to a more reasonable level."
Jones Company reported pretax book income of $403,000. Included in the computation were favorable temporary differences of $50,300, unfavorable temporary differences of $20,150, and favorable permanent differences of $40,150. Book equivalent of taxable income is:
Answer:
$362850
Explanation:
First of all it is important that we know this:
The book equivalent of taxable income only takes permanent difference into consideration
Favorable income difference are then reduced from pretax but if they are found to be unfavorable they are added to pretax income.
Jones company have their pretax income to be equal to $403000
The favourable permanent difference is given as $40150
The equivalent of taxable income
= 403000 - 40150
= $362850
This is the answer to the question
The use of different national currencies creates a barrier to further growth in international business activity. What are the pros and cons, among companies and governments, of replacing national currencies with regional currencies
Answer:
The advantages of a regional currency are given as follows:
Reduction in costs of transaction: For example, the Euro removes the added accounting expenses necessary to keep track of the various and fluctuating exchange rates between trading partners in the single currency zone. Also, there is also the cost of converting from one currency to another between trade partners in different countries. In a mono currency regime, these costs are eliminated and may increase the volume and frequency of trade. Stability of Currency: A single currency across a community of nation-states will automatically stabilize or dampen the frequency of fluctuation given that the rate will not reflect the average economic condition of several countries put together rather than on country.A regional currency is likely to be stronger than a national currency because unifying currencies eliminates competitive devaluation among countries within the region. To avoid unfair competition, neighboring countries may be forced to also devalue their currencies following similar action by a country or countries in the same block.Improvement in prices due to greater price transparency: It is easier to compare prices using one currency than with different currencies. This means that companies that previously profited from abnormal profits due to various currencies are now forced to redesign their market offering to stay competitive price-wise.Disadvantage
A single policy for many countries may prove to be dissastrous for some countries. Single currencies do not automatically unify all the other macro-economic conditions of the various countries in the region. This means that what is good for countries in recovery may prove detrimental for a country in a recession.Transition Costs: Moving from one currency to another usually involves some costs which include:Discarding old currency printing equipment for new ones as well as doing away with old currencies whilst printing new ones.
Cheers
Joe’s Beer, Bait, & Tackle Co. is a small chain of fishing tackle stores in northern Minnesota. In 2019, the company’s revenue was $4,300,000 and its cost of sales was $3,200,000. Assume 52 weeks and 365 days per year. Joe keeps only 7.59 days-of-supply of inventory on average because much of his inventory is live bait and micro-brew beer, both of which have a short shelf life. What is his annual inventory turns?
Answer:
the annual inventory turn is 48.09
Explanation:
The computation of the annual inventory turns is shown below:
Annual inventory turn
= Number of days in a year ÷ Number of days of inventory
= 365 days ÷ 7.59 days
= 48.09
We simply applied the above formula and the same is to be considered
hence, the annual inventory turn is 48.09
By dividing the total days from the inventory days we can get the annual inventory turn
A game may be zero-sum in the short run but have scope for mutual benefit in the long run. True False
Answer:
True
Explanation:
A zero sum game happens when one player's gain is exactly the same as the other player's loss, e.g. I won $100 and my opponent lost $100. But as economics has taught us, sometimes both sides can win, i.e. a win win situation.
Real life business is not the same as sports where one side must win and the other must lose. E.g. a trade agreement between 2 countries might at first result in one country benefiting more from trade, but as time passes, things will start to balance out and both countries will start to benefit from trade. As trade increases between nations, all the nations involved will win, so the situation will be a non zero sum game.
On November 15, 2018, Shields Company purchased inventory costing $6,200 on credit. The credit terms were 2/10, n/30. a. Assume that Shields Company paid the invoice on November 23, 2018. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier using the net-of-discount method.
Answer:
Entries posted
Explanation:
The dicount received will be credited as we paid the supplier earlier of 30 days according to the credit terms
Journal Entry to purchase inventory on November 15, 2018
Dr Inventory $6,200
Cr Accounts payable $6,200
Journal Entry for payment to supplier on November 23, 2018
Dr Accounts payable $6,200
Cr Discount received $124
Cr Cash $6076
Sheffield Corp.is contemplating the production and sale of a new widget. Projected sales are $390000 (or 75000 units) and desired profit is $33000. What is the target cost per unit
Answer:
Unitary cost= $4.76
Explanation:
Giving the following information:
Projected sales are $390,000 (or 75000 units), and the desired profit is $33,000.
First, we need to calculate the total desired cost:
Desired total cost= Sales - desired profit
Desired total cost= 390,000 - 33,000= $357,000
Now, the unitary desired cost:
Unitary cost= total cost / number of units
Unitary cost= 357,000/75,000
Unitary cost= $4.76
You 100 shares of stock today for $30 per share that he purchased for $20 six years ago. Determine the average annual rate of return on Shawn's investment, assuming the stock paid no dividends.
a. 25%
b. 8.33%
c. 150%
d. 7%
Answer:
d. 7%
Explanation:
Calculation to Determine the average annual rate of return on Shawn's investment
Using this formula
A=P(1+r/100)^n
where,
A=future value
P=present value
r=rate of interest
n=time period.
Let plug in the formula
30=20(1+r/100)^6
(30/20)^(1/6)=1+r/100
Hence,
1+r/100=1.0699(Approximate ly)
r=(1.0699-1)*100
r=0.0699*100
r=7% Approximately
Therefore the average annual rate of return on Shawn's investment is 7%
A company manufactures and sells a single product that sells for $475 per unit; unit variable costs are $280. Annual fixed costs are $550,000. Current sales volume is $1,150,000. Flannigan Company management targets an annual pre-tax income of $850,000. Compute the unit sales to earn the target pre-tax net income.
Answer:
$195 per unit.
Explanation:
• Note. The question is incomplete as the concluding part requested for the calculation of contribution margin per unit.
The formula for contribution margin per unit is denoted as;
Contribution margin per unit = Selling price per unit - Variable cost per unit.
Given that;
Selling price per unit = $475
Variable cost per unit = $280
Contribution margi per unit
= $475 - $280
= $195 per unit
You are considering the following three mutually exclusive projects. The required rate of return for all three projects is 14%. Year A B C 0 $ (1,000) $(5,000) $(50,000) 1 $ 300 $ 1,700 $ 0 2 $300 $ 1,700 $15,000 3 $ 600 $1,700 $ 28,500 4 $300 $1,700 $ 33,000 What is the IRR of the best project
Answer:
Project A has the highest IRR. the IRR is 17.49%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
For project A
Cash flow in year 0 = -1000
Cash flow in year 1 = 300
Cash flow in year 2 = 300
Cash flow in year 3 = 600
Cash flow in year 4 = 300
IRR = 17.49%
For project B
Cash flow in year 0 = -5000
Cash flow each year from year 1 to 4 = 1700
IRR = 13.54%
For project C
Cash flow in year 0 = -50,000
Cash flow in year 1 = 0
Cash flow in year 2 = 15,000
Cash flow in year 3 = 28,500
Cash flow in year 4 = 33,000
IRR = 14.23%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
A cost is $34,500 at an activity level of 23,000 units, and $42,000 at an activity level of 28,000 units. What type of cost is this
Answer:
Incremental cost
Explanation:
The incremental cost is the cost that is incurred for increase in the production level that means if the level of the production rises, the cost or an expense also increased. It involves both type of cost i.e. fixed and variable
Therefore in the given situation it is mentioned that
For the activity level of 23,000 units the cost $34,500 is spent
And, for the activity level of 28,000 units the cost $42,000 is spent
So this is an incremental cost
What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C
Answer: 13.5%
Explanation:
The expected return is a weighted average of the portion invested in each individual stock and the expected return of each individual stock.
= (20% * 10%) + (50% * 20%) + (30% * 5%)
= 13.5%
If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined. Group of answer choices the working-age population the quantity of goods or services that can be produced by one hour of work nominal GDP labor force participation
Answer:
the quantity of goods or services that can be produced by one hour of work
Explanation:
In the case when the growth of the labor productivity slows down in a country so that means the growth rate is declined in terms of the good or services quantity that could be generated by performing one hour of work
Therefore in the given case, the second option is correct
And all the other options are incorrect
2. Suppose you are a producer of asphalt located in China. Petroleum is one of the major inputs for asphalt. Your company must import petroleum which is sold in a world market and priced in U.S. dollars. How are the profits of your company affected when the yuan appreciates against the dollar
Answer: There'll be an increase in profit.
Explanation:
Appreciation of a currency is when the value of a currency increases. Based on the information given in the question, since the company imports petroleum which is sold in a world market and priced in U.S. dollars, when the Yuan appreciates against the dollar, this will bring about increase in profit to the company.
This is because when the Yuan appreciates against the dollar, the company will be spending a lessee amount to buy petroleum and since the cost of production has been reduced, it'll bring about an increase in profit.
Consider the following stock price and shares outstanding data: Stock Name Price per Share Shares Outstanding (Billions) Lowes $28.80 1.53 Wal-Mart $47.90 4.17 Intel $19.60 5.77 Boeing $75.00 0.79 The total market capitalization for all four stocks is closest to:
Answer: B. $415 Billion
Explanation:
Total Market Cap is the total market value of all the stock of the 4 companies.
= ∑(Price per share * Shares outstanding)
= (28.8 * 1.53) + (47.90 * 4.17) + (19.60 * 5.77) + (75 * 0.79)
= 44.064 + 199.743 + 113.092 + 59.25
= $416 billion
Closest to option B.
Explain how the company integrates ISO 14000 standards in its manufacturing plants. Support your explanation with citations from your textbook or outside sources.
Answer:
following are the solution to the given question:
Explanation:
ISO 14000 integration:
Its sense of responsibility that will provide the highest quality product for society encourages them and also be socially responsible for many various factors that output generating income. Much like ISO 9000, a quality control program with both the highest quality products they have ISO 1400 that calculates staff capabilities from the very first stage of manufacturing to the very last phase and protect or prevent damage to an ecosystem throughout their interest. Nissan seems to have this alignment with production lines to satisfy consumers give a hand to the conservation of national resources of their very own place. They have the Branch of environmental protection Management concentrating only on protecting the environment. We conduct research and other activities which have proven environmentally beneficial.HomeCraft makes wooden play sets. The company pays annual rent of $400,000 per year and pays administrative salaries totaling $150,000 per year. Each play set requires $400 of wood, ten hours of labor at $70 per hour, and variable overhead costs of $100. Fixed advertising expenses equal $100,000 per year. Each play set sells for $3,200. What is HomeCraft's break-
Answer:
325 play sets
Explanation:
The computation of the break even point in unit sales is shown below:
= Fixed cost ÷ (Selling price per unit - variable cost per unit)
where,
Fixed cost is
= Annual rent + salaries + Fixed advertising expenses
= $400,000 + $150,000 + $100,000
= $650,000
Variable cost is
= $70 × 10 + $400 + $100
= $1,200
Now the contribution margin is
= $3,200 - $1,200
= $2,000
So, the break even point is
= $650,000 ÷ $2,000
= 325 play sets
The use of acquisition cost as a valuation method is justified on the basis that acquisition cost is: Select one: a. relevant b. timely c. subjective d. objective
Answer: d. objective
Explanation:
The Acquisition cost of an asset is the total cost that the company incurred for the asset. It is objective because it does not change and is not influenced by the Accounting method used by the company.
It can therefore be used as a valuation method for the asset regardless of which company it is sold to and that makes it very advantageous for comparison and other calculations.
Suppose that Luther's beta is 0.9. If the market risk premium is 8% and the risk-free interest rate is 4%, then then expected return for Luther stock is?
Answer:
11.2%
Explanation:
Luther's beta is 0.9
Market risk premium is 8%
Risk free Interest rate is 4%
Therefore the expected return for Luther's stock can be calculated as follows
= risk free interest rate + beta × risk premium
= 4/100 + 0.9 × 8/100
= 0.04 + 0.9 × 0.08
= 0.04 + 0.072
= 0.112 × 100
= 11.2%
Hence the expected return for Luther's stock is 11.2%
What is a family brand?
O A. A brand used during the maturity stage of the product life cycle
O B. A brand for children's producto
O C. A brand for the products in one or more product lines
O D. Goods purchased for use by a family
SUBMIT
Answer:
The correct answer is c
Companies that achieve Value Innovation a. pursue differentiation and low cost simultaneously b. pursue differentiation or low cost c. pursue differentiation or low price d. None of the above
Answer: a. pursue differentiation and low cost simultaneously
Explanation:
Value Innovation as a strategy is highly sought after in many industries as it represents an opportunity to acquire more market share whist keeping costs low. This is because with Value innovation, a company invests in technology that will achieve both low costs and differentiation simultaneously.
This is great news for both consumers and the company because consumers get to buy more differentiated products at lower prices and for the company, they will get more customers buying from their brand.
Cullumber, Inc., stock has a beta of 1.30. If the expected market return is 12.5 percent and the risk-free rate is 9.0 percent, what does CAPM indicate the appropriate expected return for Cullumber stock is
Answer:
25.3%
Explanation:
Cullumber incorporation stock has a beta of 1.30
The expected market return is 12.5
The risk free rate is 9.0
Therefore the expected return for cullumber stock can be calculated as follows
= 9% + (1.3% × 12.5%)
= 9% + 16.25%
= 25.3%
Hence the expected return of cullumber stock is 25.3%
Preston John, the office manager of Greenleaf Inc. strongly believes that providing positive consequences for a job well done will increase the likelihood of good work performance in the future. He personally sends e-mails to his employees to commend their efforts when they perform well. From this it can be inferred that Preston believes in ________
Answer:
positive reinforcement
Explanation:
Positive reinforcement is a psychological behavior. It may be defined as the giving or providing someone with a rewards or a praising somebody when the person performed the desired action or work.
In the context, Preston John believes in the positive reinforcing his employees and personally mailing them and congratulating them for their hard work and achievements. He believes that by doing so, it will increase the likelihood of the good work performance of the employees in the future.
If the market risk premium increased to 5%, what would happen to the stock's required rate of return
Answer:
a. 1.5
b. Required rate of return would increase by 3% to 12%
Explanation:
a. According to the Capital Asset Pricing Model,
Required return = Risk free rate + beta *market premium
9% = 4.5% + beta * 3%
Beta * 3% = 9% - 4.5%
Beta = (9% - 4.5%)/3%
= 1.5
b.
= 4.5% + 1.5 * 5%
= 12%
The required return would increase by 3%
The current dividend paid by Astromarketis $1. It is expected to grow by 40% a year for two years, and then at 3% forever. The company cost of capital is 10%. What is the value of Astromarket stock
Answer:
P₀ = $26.73
Explanation:
Div₀ = $1 (current dividend)
Div₁ = $1.40 (40% growth)
Div₂ = $1.96 (40% growth)
Div₃ = $2.0188 (3% growth rate forever)
the terminal value at year 2 = Div₃ / (Re - g) = $2.0188 / (10% - 3%) = $28.84
P₀ = $1.40/1.1 + $1.96/1.1² + $28.84/1.1² = $26.73
wants to maximize profits for SPI's new tennis racquets, then he should set a price (and produce that related output) where:
Answer: E. marginal cost is just less than or equal to marginal revenue.
Explanation:
In order to maximize profits when it comes to production, it is best to do so at a quantity where Marginal cost is equal to Marginal revenue or at least slightly lower but not higher.
At this quantity, all available resources are being used efficiently and so profit is being maximised because if Marginal costs exceed marginal revenue, this will result in losses.
Randy Todd should therefore produce the racquets at a point where marginal cost is just less than or equal to marginal revenue.
If Lourdes plans to raise additional capital and wants to use debt financing, what coupon rate would it have to set in order to issue new bonds at par
Answer: 2.)Since the bonds are selling at a premium, the coupon rate should be set at the going rate, which is the YTC.
Explanation:
The bond is a callable bond and the callable price is below the market price so the bond is likely to be called. In which case the relevant going rate would be the Yield to Call and so this the rate Lourdes should issue the bonds at in order for it to be at par.
an article in the Wall Street Journal on the recreational vehi- cle (RV) industry listed several factors that led to a larger quantity of RVs sold: a. Increasing confidence among households that their future incomes would rise
Answer and Explanation:
When there is a movement in a demadn curve so it could be bought when the price vary so in the given case all four factors need to be required for shifting the demand curve
1. As if the confidence is increased so the demand increased that shift the demand curve to the right
2. Now if the credit is cheaper so the RV could be purchased in an easiest way due to which demand increased that shift the demand curve to the right
3. Gasoline i.e. fuel is a complementary good for RV if the gasoline is fallen so it would be more affordable due to which the demand increased hat shift the demand curve to the right
4, Due to the Consumer preference the demand increased that shift the demand curve to the right
Powers Company reported net sales of $1,200,000, average Accounts Receivable, net of $78,500, and net income of $51,025. The Day's sales uncollected (rounded to whole days) is:
Answer:
24 days
Explanation:
Power company has a net sales of $1,200,000
The average account receivable net is $78,500
The net income is $51,025
Therefore the day's sales uncollected can be calculated as follows
= net sales/net income
= 1,200,000/51,025
= 23.5
= 24 days (rounded to whole days)
Ivanhoe Company sells product 1976 NLC for $25 per unit. The cost of one unit of 1976 NLC is $23, and the replacement cost is $22. The estimated cost to dispose of a unit is $5, and the normal profit is 20% of selling price. At what amount per unit should product 1976 NLC be reported, applying lower-of-cost-or-market
Answer:
The product should be reported at $20
Explanation:
The formulae for net realizable value is given as ;
Net realizable value = Estimated selling price - Cost of completion and disposal
= $25 - $5
= $20
But,
The upper limit of Market = Net realizable value = $20
Market = Replacement cost = $22
Hence,
Lower limit of market = Net realizable value - Normal profit margin
Lower limit of market = $20 - ( 20% × 25 )
= $20 - $5
= $15
It therefore means that if the present replacement cost is higher than the selling price, it then means that the selling amount is the market amount.
The product should therefore be reported at $20
Best for Pets has three product lines: cat food, dog food, and fish food. For the coming month, 4,000 units of direct materials will be needed to meet expected demand. However, only 3,200 units are available. Additional information on the three product lines is given here:
Answer:
Note: The full question has been attached as picture
Cat Food Dog Food Fish Food
Contribution margin per unit $4.50 $5.60 $2.70
of product
Contribution margin per unit $5.30 $3.57 $4.65
of Direct materials
The contribution margin per unit of direct materials is higher for Cat food than Dog and Fish food, hence the company should sell Cat food in order to maximize profit.
Number of units of direct materials available = 3,200 units
Contribution margin per unit of direct materials of cat food = $5.30
Total profit = Number of units of direct materials available * Contribution margin per unit of direct materials of cat food
Total profit = 3,200 unit * $5.30
Total profit = $16,960
Thus, $16,960 is the maximum profit if the company can sell either of the three products.