Answer:
Since Portuguese Company owns 80% of Spanish Company, all inter-company transactions must not be included in the consolidated balance sheet. This means that Portuguese's balance sheet should not include anything related to the purchase of Spanish's bonds.
If Portuguese Company had acquired the bonds from an unrelated third party, then that would be considered a retirement of bonds, but here Portuguese bought the bonds directly from Spanish.
Suppose the contribute $10 per week ($520 per year) into an interest-bearing account that earns 6% a year(compounded once per year). That's probably one less pizza per week! But if you contribute faithfully each week into this account, how much money would you have saved through the compounding of interest by the end of 15 years
Answer:
The money that should be saved at the end of 15 years is $12,103.52
Explanation:
The computation of the money that should be saved at the end of 15 years is shown below:
= A(F/A, i, N)
= 520 (F?A, 6,15)
= 520(23.2760)
= $12,103.52
hence, the money that should be saved at the end of 15 years is $12,103.52
We simply applied the above formula so that the correct answer could come
The same is to be considered
Revenues Low (0.30) Medium (0.50) High (0.20) A 120,000 255,000 390,000 B 130,000 295,000 460,000 C 100,000 300,000 480,000 What is the best decision if you prefer the mini-max regret approach
Answer:
B
Explanation:
The computation is shown below:
Decision S1 S2 S3
A 10000 45000 90000
(120,000 - 130,000) (295,000 - 255,000) (480,000 - 390,000)
B 0 5000 20000
C 30000 0 0
Based on the above table, the minimum value is for the decision B
So, the best decision should be taken for B only
All things being equal except the ratio of fixed assets to long-term liabilities, a lender would prefer to lend to a company whose ratio is:
Answer: d. 3.5
Explanation:
The Fixed assets to long-term liabilities ratio is used to check how much of a company's debt can be covered by its fixed assets because fixed assets can be sold to recover the debt if need be.
It is calculated by dividing the fixed assets by the long-term labilities of the company and in general, the higher this ratio, the better. The highest from the options is 3.5 so that is the answer.
Parkway Void Co. issued 17-year bonds two years ago at a coupon rate of 8.6 percent. The bonds make semiannual payments. If these bonds currently sell for 110 percent of par value, what is the YTM
Answer:
7.48 %
Explanation:
Lets first assume that the par value on this Bond is $100.
Then, we would calculate the Yield to Maturity as
PV = $100 × 110% = - $110
N = 15 × 2 = 30
P/yr = 2
Pmt = ($100 × 8.6 %) ÷ 2 = $4.30
FV = $100
YTM = ?
Using a financial calculator to input the values as above, the Yield to Maturity of this Bond will be 7.48 %
Novak Corp. purchased a piece of equipment for $52,000. It estimated a 8-year life and $2,080 salvage value. At the end of year 4 (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $4,160. Compute the revised depreciation. Company uses straight-line depreciation method. (Round answer to 0 decimal places, e.g. 125.)
Answer:
$2,288 per year
Explanation:
We can calculate the revised depreciation to be;
• Annual depreciation charge of equipment using initial estimates
Depreciation charge = (Cost of asset - Salvage value) / Useful life
= ($52,000 - $2,080) / 8 years
= $6,240 per year
• Calculate the net book value of equipment at the end of year 4
Cost of asset
$52,000
Less: Accumulated depreciation of 4 years ($6,240 × 4)
($24,960)
Net book value
$27,040
• Calculate revised depreciation charge using the revised useful life
Revised depreciation charge = (Net book value of asset at the end of year 4 - New salvage value) / Revised useful life
= ($27,040 - $4,160) / 10 years
= $2,288 per year
Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .77. The cost of equity is 11.7 percent and the pretax cost of debt is 6.7 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 35 percent?
Answer:
56.50%
Explanation:
Calculation for the capital structure weight of the firm's equity
Using this formula
Capital structure weight of the firm's equity =
1/(1+Debt equity ratio)
Let plug in the formula
Capital structure weight of the firm's equity =
1/(1+0.77)
Capital structure weight of the firm's equity = 1/1.77
Capital structure weight of the firm's equity = 0.5650*100
Capital structure weight of the firm's equity = 56.50%
Therefore Capital structure weight of the firm's equity will be 56.50%
30 points, please help
Answer: You didn’t post a picture can you please post it so I can answer it?
Explanation: I’ll help you but add a picture.
Answer:
Explanation:
? There’s no picture, :(
The _______________________, also known as the Currency and Foreign Transactions Reporting Act, was created to fight drug trafficking, money laundering, and other crimes.
Answer:
Bank Secrecy Act.
Explanation:
The Currency and Foreign Transactions Reporting Act, also known as the Bank Secrecy Act is a legislation created by the United States in 1970 to prevent the misuse of banks and financial institutions by criminals. This Act authorizes banks to disclose any large transactions or transfers.
Accordingly, this Act makes it secure from banks and financial institutions from being involved in criminal activities. This in turn helps in the fight against drug trafficking, money laundering cases, and other criminal activities.
You have been told that, in this hot weather, lemonade is selling for $5.50 a unit. Use the spreadsheet to determine: g
Answer:
The revenue will be $5.50 per lemonade the cost will be $4.25 per lemonade the profit is $1.25 per lemonade.
Explanation:
Spreadsheet application is used for solving complex equation. To determine the profit per lemonade we will enter the selling price and the cost of lemonade in the cells of the spreadsheet. The gross profit calculations will be arrived when we enter the formula in the bar above the home tab.
Which of the following is a decision an Italian restaurant owner makes only in the long
run?
Answer:
B - The decision to stay in business
options for this question obtained through online search
A - The decision to hire an additional cook
B - The decision to stay in business
C - Whether to open on Sundays or not
D - The decision to increase prices in response to an increase in the price of cheese
Explanation:
The long-run refers to a period beyond the current financial year. Long-run decisions are futuristic in nature. In the long run, all costs and the factors of production are variable. A business has time to adapt to changes in technology and react to customer preferences.
The long-run period contrasts with the short-run. Short-run is about the current financial year. Short-run decisions have an immediate impact. The decision to hire an additional cook, whether to open on Sundays or not, and the decision to increase prices in response to an increase in the price of cheese will affect the current financial period. Staying in business is a decision that will impact the current and future periods.
A US importer will purchase 500 Italian sport cars on each of the following dates: the 15th of FEB, APR, JUL and OCT of 2014. The price per car is fixed at EUR40,000/car. 3.1 What is the risk born by the US importer
Answer:
Foreign exchange risk
Explanation:
Foreign exchange risk is associated with currency fluctuations. When foreign currencies fluctuate, the accounts receivables or payables will vary. Sometimes these variations are positive for your business and a gain might result, e.g. the price of euros decreases and you need less dollars to pay your debt. But other times, variations might result in negative consequences for your business. E.g. the price of euros increases, meaning that you will need more dollars to pay your debt.
Assume the Mirtha Company had the following balances at year-end. Assume the company recorded no write-offs or recoveries during 2015. What was the amount of bad debt expense reported in 2015
Answer:
The answer is "$ 14,500".
Explanation:
please find the complete question in the attached file:
calculating the bad debt spending reported in 2015:
[tex]\to \$ \ 80,000 - \$ \ 65,500\\\\ \to \$ \ 14,500[/tex]
To get rid of a bad habit, it takes a minimum of 21 days? True or False
John has $20 to spend on potato chips (X) and pretzels (Y). The price of a bag of potato chips is $4 and the price of a bag of pretzels is $2.5. How much is the market rate of substitution?
a. 0.625
b. 5
c. 8
d. 1.6
Answer:
1.6
Explanation:
The Market Rate of Substitution: The rate at which one good can be exchanged for another at current market prices. The Market Rate of Substitution for X with Y. The amount of Y which must be given up in order to get one more unit of X, given a fixed budget and market price .
DATA
Price of bag of potato chips = $4
Price of bag of pretzels = $2.5
Solution
Market rate of substitution = MUx / MUy = Px / Py
Market rate of substitution = 4 / 2.5
Market rate of substitution = 1.6
A company's ___ is the coordinated series or sequence of functional activites necessary to transform inputs into the finished goods or services that customers value and want to buy.
Answer:
Value chain
Explanation:
The value chain refes to a concept in which it adds the values to the company and on the other hand is the sequencing series where the activities are carried out to transform the raw material into the finished goods that created some value for the customer so that they can able to buy the company goods
Therefore in the given case, the value chain is the answer
If the securities market is efficient, an investor need only throw darts at the stock pages to pick securities and be just as well off as they would be with a professionally-developed portfolio. This statement is:
Answer: This statement is false.
Explanation:
An efficient security market simply means a market whereby the prices of the securities that are available rovides the investors with the necessary information and all available information.
The statement given in the question isn't true. This is due to the fact that a desirable combination of risk return may not be held by such investors which could bring about loss to the investor.
Suppose you repay a $100 loan from City National Bank (CNB) by writing a check from your CNB checking account. Use the T accounts to show the effects of this transaction on you and the CNB. How much has your wealth changed as a result of this transaction
Answer:
T accounts shows additions & subtractions (debit & credits) to the account, in individual accounts resembling 'T' shape.
Explanation:
Repaying Loan from CNB by CNB check account :
Loan is a liability, its increase balance is credit. So, paying off loan decreases the loan, hence Loan T a/c is Debited
Bank Balance is an asset, its increase is debit. So, paying off loan by bank checking account decreases bank balance, hence Bank ac is Credited
In England the price of gasoline averages $1.03 around per liter. Using unit analysis, calculate the cost of gasoline in England in dollars per gallon.
Answer:
$3.90 dollars
Explanation:
Ok, let's assume that the $1.03 are dollars since it is using the cash symbol for dollar and not pounds which is £. Since we also know that there are 3.78541 liters in a gallon, we can use all three of these values using the three-way rule to find the amount a gallon of gasoline would cost which would be represented by x
$1.03 <==========> 1 liter
x <==========> 3.78541 liters
(3.78541 * 1.03) / 1 liter = x
3.898 / 1 liter = x
$3.90 = x
Therefore, we can see now that a gallon of gasoline would cost roughly $3.90 dollars.
$35.50 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today
Answer:
$41.69
Explanation:
Calculation for stock's expected price 3 years from today
Using this formula
P3 = P0(1 + g)^Years in the future
Where,
Stock price=P0=$35.50
Growth rate=g=5.50%
Years in the future=3
Let plug in the formula
P3 = $35.50(1 +0.055 )^3
P3=$35.50(1.055)^3
P3 =$35.50(1.174241375)
P3=$41.69
Therefore stock's expected price 3 years from today will be $41.69
On its 2010 balance sheet, Lowell Co, reports treasury stock at cost of $1,000 million. The company has a total of 1,000,000,000 shares issued and 900,000,000 shares outstanding. What average price did Lowell Co. pay for treasury shares
Answer:
$10
Explanation:
The average price paid for a treasury stock is computed using the formula below:
Average price of treasury stock=balance of treasury stock/number of shares repurchased
balance of treasury stock=$1,000 million=$1,000,000,000
number of shares repurchased =number of shares issued- number of shares outstanding
number of shares issued=1,000,000,000 shares
number of shares outstanding=900,000,000 shares
number of shares repurchased =1,000,000,000-900,000,000= 100,000,000
Average price of treasury stock= $1,000,000,000/100,000,000=$10
All of the following factors drive compensatory versus non-compensatory decision making EXCEPT: * 57 points a. the total price of the items. b. the importance of the various attributes to the consumer. c. resource availability. d. the size of the choice set.
Answer:
a. the total price of the items.
Explanation:
In compensatory decision making consumer does not consider the price of the item. The Consumer evaluates the characteristics of the item. Consumer compares the good and bad characteristics of the item. He/She compensates for the price and bad characteristics of the product in Compensatory decision making.
Whereas in non-compensatory decision making the price of the product is considered.
Prices of zero-coupon bonds reveal the following pattern of forward rates: Year Forward Rate 1 6 % 2 8 3 9 In addition to the zero-coupon bond, investors also may purchase a 3-year bond making annual payments of $50 with par value $1,000. a. What is the price of the coupon bond?
Answer:
$900.83
Explanation:
the price of the zero coupon bonds are:
maturity price
1 $943.40
2 $857.34
3 $772.18
the price of the coupon bond:
(coupon x price of 1 year bond) + (coupon x price of 2 year bond) + [(maturity value + coupon) x price of 3 year bond] = ($50 x 0.9434) + ($50 x 0.85734) + ($1,050 x 0.77218) = $900.83
Brian and Clara paid $4,350 in foreign income taxes to Mexico. Their total income was $105,000, which included $16,000 of foreign income. Their U.S. tax liability is $22,750. How much can Brian and Clara claim as foreign tax credit
Answer:
$3,467
Explanation:
Calculation for How much can Brian and Clara claim as foreign tax credit
Using this formula
Foreign tax credit=(Foreign income/Total income)×U.S. tax liability
Let plug in the formula
Foreign tax credit=($16,000/$105,000) x $22,750
Foreign tax credit=0.15238095×$22,750
Foreign tax credit= $3,467
Therefore the amount that Brian and Clara can claim as foreign tax credit will be $3,467
"Farley Inc. has perpetual preferred stock outstanding that sells for $36 a share and pays a dividend of $2.50 at the end of each year. What is the required rate of return? Round your answer to two decimal places."
Answer:
Required rate of return = 6.944% (Approx)
Explanation:
Given:
Sale price = $36
Dividend = $2.50
Find:
Required rate of return
Computation:
Required rate of return = [Dividend/Sale price]100
Required rate of return = [2.50/36]100
Required rate of return = 6.944% (Approx)
A bond that compounds annually has a Face Value of $1,000 and maturity of 15 years. Assume that its coupon rate is 8% and yield to maturity (YTM) is 6.12%. What is this bond’s market price?
Answer: $1181.164
Explanation:
Based on the information given in the question, the interest will be:
= $1,000 × 8%
= $1000 × 0.08
= $80
The current bond price will be calculated as:
=[$80(PVIFA 6.12%,15)] + [$1,000(PVIF 6.12%,15)]
= ($80 × 9.63655) + ($1,000 ×0.41024)
= $770.924 + $410.24
= $1181.164
The bond's bond’s market price is $1181.164
Suppose a fast-food restaurant wishes to estimate average sales volume for a new menu item. The restaurant has analyzed the sales of the item at a similar outlet and observed the following results: __ X 500 (mean daily sales) S 100 (standard deviation of sample) n 25 (sample size) The restaurant manager wants to know into what range the mean daily sales should fall 95 percent of the time. Perform this calculation.
The Victor Company sells two products. The following information is provided: Product A Product BUnit selling price$100 $150 Unit variable cost$30 $70 Number of units produced and sold 20,000 60,000 What is the weighted average contribution margin per unit?
A. $75.00
B. $80.00
C. $77.50
D. $72.50
Answer:
Weighted average contribution margin= $77.5
Explanation:
Giving the following information:
Product A Product B
Unit selling price $100 $150
Unit variable cost $30 $70
Number of units produced and sold 20,000 60,000
First, we need to determine the sales proportion:
Product A= 20,000/80,000= 0.25
Product B= 0.75
To calculate the weighted-average contribution margin, we need to use the following formula:
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (0.25*100 + 0.75*150) - (0.25*30 + 0.75*70)
Weighted average contribution margin= 137.5 - 60
Weighted average contribution margin= $77.5
What are the human behavior problems that can potentially arise in the budgeting process and how to overcome them
Answer:
Some of the human behaviors which can mar the efficacy of the budgeting process are:
GamesmanshipUse it or lose it syndromeTime taken to prepareBlame gameExplanation:
Gamesmanship
Gamesmanship refers to the unethical practice by line managers to understate how much they can make within a financial period against their expenses for the same period. What this helps them to achieve is that during appraisal periods, "additional revenues" create a favorable variance which gives the team the appearance of positive performance.
This can be prevented by great oversight by the Chief Financial Officer and other members of the leadership over the budgeting process.
Use it or lose it syndrome
Toward the end of a financial period, managers authorize expenditures that are not necessarily required on the basis that their budget for the next period will be reduced if it is found that their budget for a particular period was underutilized.
This can be resolved by ensuring that departments are actually rewarded for accomplishing all their target objectives using a lower budget. HR and can work together with the accounting and finance team to achieve this.
Time taken to Prepare
In some organizations, due to internal bureacracies, it takes a very long time to come up with a budget. The best way to overcome this challenge is through the use of technology.
There are great apps such as Mint, Goodbudget, which not only helps with the budgeting process but also helps to track the spending process, recording them as the activities are carried out.
Blame game
This is the practice of projecting the problems arising from budgeting on other departments. The most common argument is that such units didn't give adequate support towards the attainment of its goals, hence the poor performance of the budget for that unit.
Greater training toward accountability can be used to correct this mentality. Also, the HR unit can build into the Key Performance Areas of the organization the section that measures the degree of accountability.
Cheers
A company's postretirement health care benefit plan had an APBO of $220,000 on January 1, 2021. During 2021, retiree benefits paid were $35,500. The discount rate for the plan for this year was 10%. Service cost for 2021 was $75,500. Plan assets (fair value) increased during the year by $37,800. The amount of the APBO at December 31, 2021, was:
Answer:
$282,000
Explanation:
APBO means Accumulated post retirement benefit obligation
Computation of amount of the APBO at December 31, 2021
APBO at the beginning $220,000
Add: Service cost $75,500
Add: Interest cost $22,000 (220,000*10%)
Less: Benefit paid $35,500
APBO at December 31 $282,000
A company paid its annual dividends of $4.40 per share last week. The company expects to grow its dividends at the rate of 5.0 percent per year for four years, after which the dividends are expected to remain constant at the level of $5.68 per share per year in perpetuity. If investors require a rate of return of 11.5 percent on this company's stock, what should be the price of one share of this stock today
Answer:
$47
Explanation:
Calculation for what should be the price of one share of this stock today
First step is to calculate Year 1 dividend
Year 1 dividend = 4.4 (1 + 5%)
Year 1 dividend= 4.62
Second step is to calculate Year 2 dividend
Year 2 dividend = 4.62 (1 + 5%)
Year 2 dividend= 4.851
Third step is to calculate Year 3 dividend
Year 3 dividend = 4.851 (1 + 5%)
Year 3 dividend= 5.09355
Fourth step is to calculate Year 4 dividend
Year 4 dividend = 5.09355(1 + 5%)
Year 4 dividend= 5.34823
Now let calculate the year 4 value using this formula
Year 4 value = Year 5 dividend / Required rate - Growth rate
Let plug in the formula
Year 4 value = 5.68 / 0.115
Year 4 value=49.3913
Last step is to calculate the Present value using this formula
Present value = Future value / (1 + rate)^time
Let plug in the formula
Price today = 4.62 / (1 + 0.115)^1 + 4.851 / (1 + 0.115)^2 + 5.09355 / (1 + 0.115)^3 + 5.34823 / (1 + 0.115)^4 + 49.3913 / (1 + 0.115)^4
Price today = $47
Therefore what should be the price of one share of this stock today will be $47