To reconcile Montrose Company's book balance of Cash with its bank statement balance, adjustments need to be made for outstanding checks, unrecorded checks and deposits, accounting errors, bank transactions not recorded, and bank service charges. After making these adjustments, the adjusted book balance should match the bank statement balance, ensuring the accuracy and completeness of the company's cash records.
To reconcile Montrose Company's book balance of Cash with its bank statement balance as of October 31, 2017, we need to consider the following information:
a. Book balance of Cash on October 31: $13,219 debit.
b. Outstanding checks from September:
Check #296: $1,334
Check #307: $12,754
Bank statement balance reconciliation: $29,355
Check #307 was returned with the October canceled checks, but check #296 was not. Additionally, check #315 for $893 and check #321 for $2,000, both written in October, were not among the canceled checks returned with the statement.
c. Accounting error:
Check #320 for October rent was correctly written for $4,000 but erroneously entered in the accounting records as $4,900.
d. Bank transactions not recorded by Montrose:
Credit memo for an electronic fund transfer related to a customer payment: $21,400
Bank service charge: $120
e. Bounced check:
NSF check from customer Jefferson Tyler: $3,202, plus NSF charge: $49
f. Unrecorded bank service charge: $74
g. Unrecorded cash deposit:
October 31 cash receipts deposited in the bank's night depository: $6,856
To reconcile the book and bank balances, we need to adjust the book balance based on the information provided. Once all adjustments are made, the adjusted book balance should match the bank statement balance.
The correct question should be :
The following information was available to reconcile Montrose Company's book balance of Cash with its bank statement balance as of October 31, 2017:
a. After all posting was completed on October 31, the company's Cash account had a $13,219 debit
b. Cheques #296 for $1,334 and #307 for S 12,754 were outstanding on the September 30 bank balance, but its bank statement showed a $29.355 balance reconciliation. Cheque #307 was returned with the October cancelled cheques, but cheque #296 was not. It was also found tnat cheque #315 for S893 and cheque #321 for S2.000, both written in October were not among the cancelled cheques returned with the statement.
c. In comparing the cancelled cheques returmed by the bank wit the entries in the accounting records , it was found that cheque #320 for the October rent was correctly written for S4,0g0 but was erroneously entered in the accounting records as $4,900
d. A credit memo enclosed with the bank statement indicated that there was an electronic fund transfer related to a customer payment for $21.400. A $120 bank service charge was deducted. This transaction was not recorded by Montrose before receiving the bank statement.
e. A debit memo for $3,251 listed a S3,202 NSF cheque plus a $49 NSF charge. The cheque had been received from a customer, Jefferson Tyler. Montrose had not recorded this bounced cheque before receiving the statement.
f. Also enclosed with the statement was a $74 debit memo for bank services. It had not been recorded because no previous notification had been received.
g. The October 31 cash receipts, S6,856, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the bank statement.
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Answer all questions on the same Question paper. 1. Opponents of globalization argue that falling trade barriers (L-0: 01-04) a. allow firms to move manufacturing activities to countries with lower wage rates. b. create manufacturing jobs in wealthy advanced economies. c. force countries to maintain manufacturing in their home countries regardless of wage rates. d. reduce the pool of global labor. 2. Which of the following expresses one of the reasons why managing an international business is different from managing a purely domestic business? (L-O: 01-05) a. The range of problems confronted by a manager in a domestic business is wider and the prob more complex than those confronted by a manager in an international business. b. International business transactions use the euro instead of the U.S. dollar.
1. Opponents of globalization argue that falling trade barriers allow firms to move manufacturing activities to countries with lower wage rates.
Opponents of globalization argue that falling trade barriers allow firms to move manufacturing activities to countries with lower wage rates. In the long run, this causes job losses and lowers wages in advanced economies. The argument is that the loss of manufacturing jobs in developed countries far outweighs the new jobs that are created due to globalization.
2. The statement that expresses one of the reasons why managing an international business is different from managing a purely domestic business is (a) The range of problems confronted by a manager in a domestic business is wider and the prob more complex than those confronted by a manager in an international business
The primary reason that managing an international business is different from managing a purely domestic business is that the range of problems confronted by a manager in a domestic business is wider and the problem is more complex than those confronted by a manager in an international business. In a purely domestic business, a manager does not need to understand various cultures and regulations, and laws, but this is not the case in an international business.
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due to an international financial crisis, canada experiences a significant inflow of funds from other countries. explain the effect that this inflow of funds will have on the following. (letter each of your answers and explain the why it would have this effect.) (a) the international value of the canadian dollar (b) canadian net exports (c) the real interest rate in canada (d) the level of investment in canada
(a) The inflow of funds from other countries will raise the international value of the Canadian dollar.The international value of the Canadian dollar will increase because of the inflow of funds from other countries.
The Canadian dollar will increase in value, meaning that a greater amount of another currency will be required to obtain the same quantity of Canadian dollars.(b) The Canadian net exports will decrease due to the inflow of funds from other countries.The inflow of funds from other countries would result in a rise in the Canadian dollar's value, making Canadian goods and services more costly for foreign buyers. This results in a decrease in net exports.(c) The real interest rate in Canada would decrease due to the inflow of funds from other countries.
As the Canadian dollar rises in value, it becomes more expensive for foreigners to invest in Canadian financial assets. As a result, the inflow of foreign funds would reduce the demand for Canadian dollars, resulting in lower interest rates in Canada.(d) The level of investment in Canada would decrease due to the inflow of funds from other countries.A decrease in the demand for Canadian dollars would reduce the level of investment in Canada. Lower investment, on the other hand, would translate to a drop in capital accumulation. This will contribute to a decline in the level of GDP in the long run.
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Firms will routinely revise or create new strategies, often annually, by assessing and reacting to external and competitive forces and to__________.
Maximize organizational performance
Identifying threats and weaknesses of their competitors
Create higher-level, narrow goals
Provide specific details in a short period of time
None of the above relates to firms revising or creating new strategie
Firms will routinely revise or create new strategies, often annually, by assessing and reacting to external and competitive forces and to maximize organizational performance. By assessing external and competitive forces, firms can identify market trends, changes in customer preferences, emerging technologies, and competitive threats. This information helps them understand the external environment in which they operate and make informed decisions about their strategies.
In addition, reacting to these forces allows firms to adapt their strategies to seize opportunities and mitigate risks. It enables them to stay competitive, maintain or enhance their market position, and achieve their organizational goals. Therefore, the correct answer is: Maximize organizational performance.
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if a principal real estate broker or property manager deposits trust funds in an interest bearing clients' trust account,
If a principal real estate broker or property manager deposits trust funds in an interest-bearing clients' trust account, the interest earned is paid to the Real Estate Education, Research, and Recovery Fund.
In some states, a property manager or principal real estate broker who places trust funds in an interest-bearing account must return the interest earned to the Real Estate Education, Research, and Recovery Fund. The Real Estate Education, Research, and Recovery Fund is a fund established by the state to compensate persons who suffer financial loss as a result of misconduct by a real estate licensee. In certain states, real estate brokers are not required to pay interest on trust accounts.
The Real Estate Education, Research, and Recovery Fund is a non-profit organization that was established to compensate members of the public who have been harmed as a result of misconduct by a real estate licensee. The fund is financed by real estate license fees and interest earned on real estate trust accounts. This fund provides compensation to individuals who have been harmed as a result of misconduct by a real estate licensee.
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Which of the following are characteristics of the bureaucratic model of organization design? Check all that apply.
▢ Rules that enforce consistent execution of tasks
▢ Participation of employees at all levels in goal setting
▢ Hiring and promotion criteria based on technical expertise
▢ An impersonal management style with clear professional boundaries
The bureaucratic model of organization design is characterized by the following terms:
Rules that enforce consistent execution of tasks.Hiring and promotion criteria based on technical expertise.An impersonal management style with clear professional boundaries.Among these options, the correct choices are:
Rules that enforce consistent execution of tasks.Hiring and promotion criteria based on technical expertise.An impersonal management style with clear professional boundaries.
These three are characteristics of the bureaucratic model of organization design. The bureaucratic model of organization design is a formal and rigid model that emphasizes authority, strict job descriptions, and established rules and procedures. It is an administrative organization with a hierarchy of power where people at the top make decisions, and those at the bottom carry them out.
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suppose that the financial crisis worsens and now the supply curve for USD is 91+eN bln dollars per week and the demand curve is 155−eN bln dollars per week. The central bank still commits to its pledge to support the exchange rate if Peso depreciates by over 20% from the original level (more specifically, in this case the fixed exchange rate will be 20% higher than the original level). To maintain the fixed exchange rate, the central bank will have to spend billion dollars of foreign exchange reserves per week. Note: Type in your answer rounded to two decimal places, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard may automatically delete it and you should not do anything about it. In case of percentages, do not type in the percentage symbol "\%". If your answer is a negative number, type a dash in front of your answer, i.e, "-999.99". Selected Answer: x [None Given] Correct Answer: 16 Answer range +/−0(16−16)
The value of x is 91.80 billion dollars of foreign exchange reserves per week. Hence, the correct option is 91.80.
Given that the supply curve for USD is 91+eN bln dollars per week and the demand curve is 155−eN bln dollars per week.
Suppose that the financial crisis worsens. The central bank still commits to its pledge to support the exchange rate if Peso depreciates by over 20% from the original level.
Therefore, the fixed exchange rate will be 20% higher than the original level.
To maintain the fixed exchange rate, the central bank will have to spend billion dollars of foreign exchange reserves per week.
We need to find the value of x.
Let's assume the initial exchange rate is 1 peso = y dollars.
So, the initial demand and supply are:
Supply = 91 + eNDemand = 155 - eN
Initially, the demand and supply are in equilibrium.
=> 91 + eN = 155 - eN
=> 2eN = 64
=> eN = 32
=> e = 32/N
Thus, initially, the exchange rate was 1 peso = y dollars.
Now, the fixed exchange rate is 20% higher than the initial exchange rate. So, the new exchange rate is 1.2 y dollars.
The supply of dollars per week is 91 + eN bln dollars per week, which is 91 + 32/N bln dollars per week.
The central bank will purchase enough dollars to increase the supply of dollars until the exchange rate reaches the fixed exchange rate of 1.2 y dollars.
So, the central bank will purchase enough dollars to increase the supply from 91 + 32/N bln dollars per week to 1.2y*155 bln dollars per week.
=> 91 + 32/N + X
= 1.2y*155
Where X is the number of dollars purchased by the central bank per week to maintain the exchange rate. Now, we can substitute the value of e in terms of N in the above equation.
=> 91 + 32/N + X = 1.2y*155
=> X = 1.2y*155 - 91 - 32/N
Now, the new exchange rate is 1.2y dollars per peso, and the demand for pesos is 155 - eN bln dollars per week.
So, the central bank will receive the pesos in exchange for the dollars. Thus, the central bank will need to use the foreign exchange reserves to buy the dollars that it will sell for pesos.
The total value of dollars the central bank will need to purchase is X.
So, the central bank will need to spend X dollars of foreign exchange reserves per week.
Therefore, we have to find the value of X.
=> X = 1.2y*155 - 91 - 32/N
= 1.2*155 - 91 - 32/N
= 186 - 91 - 32/N
= 95 - 32/N
= 95 - 32/10
= 95 - 3.2
= 91.80
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+ Module 6 Assignment 1 Question 1 of 8 < Current Attempt in Progress (a)-(b), (d) > Debra Gary and Mary borrowed $29,143 on a 7-month, 7% note from Gem State Bank to open their business, Cullumber's
Tabular Summary to Record Receipt of Funds from the Loan, accrued interest and repayment are given below.
The tabular summary(a) Tabular Summary to Record Receipt of Funds from the Loan:
Date Description Debit Credit
June 1 Cash (Loan Proceeds) $29,143
Notes Payable $29,143
(b) Tabular Summary to Accrue Interest on June 30
Date Description Debit Credit
June 30 Interest Expense $339.48
Interest Payable $339.48
(c) Tabular Summary to Record Repayment of the Loan on January 1, 2023
Date Description Debit Credit
Jan 1 Notes Payable $29,143
Interest Payable $339.48
Cash (Loan Repayment) $29,482
The interest calculation in part (b) assumes a 360-day year for simplicity, although the actual number of days can vary depending on the method used for interest calculation.
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Full Question:
Although part of your question is missing, you might be referring to this full question:
Debra Gary and Mary borrowed $29,143 on a 7-month, 7% note from Gem State Bank to open their business, Cullumber's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023 Prepare a tabular summary to record the receipt of the funds from the loan (a) (b) Prepare a tabular summary to accrue the interest on June 30 Prepare a tabular summary to record the repayment of the loan on January 1, 2023
Critically assessthe application of Maqasid Shariah in Risk
Management
The application of Maqasid Shariah in risk management can help organizations to identify and manage risks in a way that is consistent with Islamic principles. It can also promote ethical decision-making and help to build trust with stakeholders.
Maqasid Shariah refers to the purposes and objectives of Shariah law that have been derived from the Quran and Sunnah. Risk management is a process of identifying, assessing, and prioritizing risks, and taking actions to minimize, monitor, and control the impact of uncertain events on an organization. Critically assessing the application of Maqasid Shariah in risk management involves evaluating how well Maqasid Shariah principles are incorporated into the risk management process and how effectively they are applied to manage risks.
The following are some ways in which Maqasid Shariah can be applied in risk management:
1. Prevention of harm: One of the primary objectives of Maqasid Shariah is to prevent harm. This can be achieved by identifying potential risks and taking measures to prevent them from occurring. Risk management strategies should focus on preventing harm to individuals, communities, and the environment.
2. Protection of property: Another objective of Maqasid Shariah is to protect property. Risk management strategies should aim to protect an organization's assets from damage or loss.
3. Preservation of human dignity: Maqasid Shariah emphasizes the preservation of human dignity. Risk management should take into account the impact of risks on human life and dignity and seek to protect them.
4. Promotion of benefit: Maqasid Shariah seeks to promote benefit and prevent harm. Risk management strategies should focus on maximizing benefits while minimizing risks.
5. Prohibition of injustice: Maqasid Shariah prohibits injustice. Risk management should ensure that risks are managed fairly and justly, without discriminating against any group or individual.
However, the effectiveness of Maqasid Shariah in risk management depends on how well it is incorporated into the risk management process and how effectively it is applied in practice.
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Explain structure of Canadian judicial system? Discuss the division of power at each level?
The Canadian judicial system consists of the Supreme Court of Canada, provincial and territorial courts of appeal, superior courts, and provincial and territorial courts.
The Canadian judicial system is divided into several levels, each with its own jurisdiction and division of power. At the highest level is the Supreme Court of Canada, which is the final court of appeal for all legal matters in the country. It consists of nine judges appointed by the Governor General, and its decisions are binding on all lower courts.
Below the Supreme Court are the provincial and territorial courts of appeal. Each province and territory has its own appellate court, which hears appeals from the lower courts within its jurisdiction. These courts have the power to review and overturn decisions made by lower courts, ensuring the consistency and fairness of the legal system within their respective regions.
At the next level are the provincial and territorial superior courts, which have both trial and appellate jurisdiction. They handle the most serious criminal cases and civil disputes, and their decisions can be appealed to the provincial or territorial court of appeal. The superior courts have the power to interpret and apply federal and provincial laws, ensuring their consistency and constitutionality.
The lower levels of the judicial system consist of provincial and territorial courts. These courts have limited jurisdiction and handle less serious criminal matters, civil cases involving small amounts of money, and certain administrative matters. They are the entry point for most legal disputes and provide access to justice at a local level.
In terms of the division of power, the Canadian judicial system operates within a federal framework. The Constitution Act of 1867 delineates the division of powers between the federal government and the provinces. The federal government has jurisdiction over criminal law, bankruptcy and insolvency, and certain other areas, while the provinces have jurisdiction over property and civil rights, including family law and contract law.
This division of powers is reflected in the structure of the judicial system. The Supreme Court of Canada, as the highest court, has the authority to interpret and apply both federal and provincial laws. The provincial and territorial courts of appeal and superior courts also have jurisdiction over both federal and provincial matters, ensuring that laws are consistently applied throughout the country.
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Probability A B 0.1 (6%) (32%) 0.1 2 0 0.6 12 23 0.1 23 25 0.1 32 46 a. Calculate the expected rate of return, F, for Stock B (FA-12.30%) Do not round intermediate calculations, Round your answer to two decimal places. N b. Calculate the standard deviation of expected returris, da, for Stock A (on-19.51%.) Do not round intermediate calculations. Round your answer to two decimal places Now calculate the coefficient of variation for Stock B. Do not round intermediate calculations. Round your answer to two decimal places. Is it possible that most investors might regard Stock 8 as being less risky than Stock A7 L. 11 Stock 5 is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as msky in a portfolio sense 11. If Stock 8 is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. 111. If Stock D is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolo sense IV If Stock B is more highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be less risky in a portfolo sense. V. If Stock B is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. Select v Assume the risk-free rate is 2.5%. What are the Sharpe ratios for Stocks A and B7 Do not round intermediate calidations. Round your answers to four decimal places Stock A Stock b Are these calculations consistent with the information obtained from the coefficient of variation calculations Part ht
a. The expected rate of return, F, for Stock B is 12.30%.
b. The standard deviation of expected returns, da, for Stock A is 19.51%.
a)The expected rate of return represents the anticipated gain or loss an investor can expect from an investment. In this case, Stock B is expected to yield a return of 12.30%. This is calculated by multiplying the probability of each possible return by the corresponding return and summing them up.
b)The standard deviation measures the dispersion of returns around the expected return. A higher standard deviation implies greater volatility or risk associated with the investment. In this case, Stock A has a standard deviation of 19.51%, indicating higher variability in its expected returns.
The coefficient of variation, also known as relative risk, is a measure that standardizes the risk of an investment relative to its expected return. It is calculated by dividing the standard deviation by the expected return and multiplying by 100 to express it as a percentage. The coefficient of variation helps investors compare the risk-adjusted returns of different investments.
Regarding the question about whether most investors might regard Stock B as less risky than Stock A, we cannot determine that solely based on the given information. The coefficient of variation would provide a more accurate measure for comparing the relative riskiness of the two stocks.
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Ming was recently told by senior management that they expected him to exercise more authority and leadership with his work group. Just two days prior to that, his team told him that while they appreciated the initiative he demonstrated, they expected him to be less authoritative and more democratic in the future. The term that best describes what Ming is experiencing is
Multiple Choice
role conflict.
role autonomy.
role underload.
role carve-out.
role distance.
Ming is experiencing a role conflict, as the first answer option shows.
What is role conflict?It is a time of contradictory expectations and experiences.It is a moment when two situations come into conflict.Ming is living at a time when the expectations of the senior manager role are clashing and undermining the demand on his team and leadership style.
This is because senior management requires Ming to be more assertive and rigid in his approach as a leader, while Ming's team requires a more democratic and friendly leader.
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The following items were taken from the financial statements of Smalley, Inc., over a five-year period: Item 2014 2013 2011 2012 $650,000 $550,000 2010 $500,000 Net Sales $980,000 $900,000 700,000 640,000 480,000 420,000 400,000 Cost of Goods Sold Gross Profit $280,000 $260.000 $170.000 $130.000 $100.000 Instructions Using horizontal analysis and 2010 as the base year, calculate the trend percentages for net sales, cost of goods sold, and gross profit. Explain whether the trends are favourable or unfavourable for each item. Make sure you answer is in a chart...ask if you need help to create one! ► 11 Paragraph v BI U A/ V V ... 8⁰ + v OF
The Cash Balance = $93,000 - $56,000, which equals $37,000.
How to solve the problemStep 1/4
Start by determining the total cash collections for the quarter. This can be done by adding together the individual cash collections. So, Cash Collections = $41,000 + $30,000 + $22,000 which equals $93,000.
Step 2/4
2. Next, compute the total cash payments for the quarter. This is done by adding the individual cash payments. Hence, Cash Payments = $34,000 + $22,000 which results in $56,000.
Step 3/4
3. Now, find the cash balance at the close of the quarter. This is obtained by subtracting the total cash payments from the total cash collections. Therefore, Cash Balance = $93,000 - $56,000, which equals $37,000.
Step 4/4
4. Finally, compute the annual interest rate on the cash balance. However, this doesn't seem correct as interest rate calculation requires additional details like interest earned over a period.
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T/F: decision analysis techniques are used in cases involving high degrees of certainty.
decision analysis techniques are used in cases involving high degrees of certainty. False
Decision analysis techniques are typically used in cases involving uncertainty rather than high degrees of certainty. These techniques help individuals and organizations make informed decisions when faced with multiple possible outcomes and uncertain probabilities.
By considering various scenarios and their potential outcomes, decision analysis techniques assist in assessing the risks and benefits associated with different choices. The objective is to analyze the available information, quantify uncertainties, and make rational decisions based on the expected values and probabilities associated with each option.
Decision analysis techniques are employed in situations characterized by uncertainty, aiming to provide a structured approach for decision-making under such conditions. These techniques help individuals and organizations evaluate the potential outcomes and associated probabilities, enabling them to make informed choices
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Briggs and Stratton manufactures small engines for commercial lawn mowers. They wish to invest in a robotic testing system to ensure that their engines always start on the first try. They have narrowed the search to two systems: Option A requires a capital investment of $1,500,000 and annual O&M costs of $700,000 per year. The system will last for 4 years. Option B requires a capital investment of $2,000,000 and annual O&M costs of $600,000 per year. The system will last for 8 years if they spend $500,000 in Year 4 to rebuild the robot. Which system should they purchase if their MARR is 18% per year? You must draw a correct cash flow diagram for each option to get full credit for this problem.
Based on the calculations of the Net Present Value (NPV) for each option, Briggs and Stratton should purchase Option A, the robotic testing system with a capital investment of $1,500,000 and annual O&M costs of $700,000 per year.
To determine the best option, the Net Present Value (NPV) of each option needs to be calculated. For Option A, the initial capital investment is $1,500,000, and the annual O&M costs are $700,000 per year for 4 years. Using the MARR of 18%, the NPV of Option A is calculated by discounting the cash inflows and outflows over the 4-year period.
For Option B, the initial capital investment is $2,000,000, and the annual O&M costs are $600,000 per year for 8 years, with an additional $500,000 spent in Year 4 for rebuilding the robot. Again, the NPV of Option B is calculated by discounting the cash inflows and outflows over the 8-year period.
Comparing the NPVs of both options, the option with the higher NPV is considered more favorable. Based on the calculations, Option A has a higher NPV than Option B, indicating that Option A generates more positive net cash flows and is the better investment choice for Briggs and Stratton.
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Lia helps the organization succeed by motivating and inspiring her peers to work together toward team goals. In this case, Lia is known as a(n) A figurehead. B manager. leader. expert.
The correct answer to the given question is "leader". A leader is an individual who leads, guides, or directs a group or organization toward a common goal. They are responsible for determining the purpose, direction, and success of the organization.
A leader is someone who inspires and motivates others to work together to achieve a common goal.A leader is not necessarily the person who holds the highest authority or title, but rather, the individual who has the ability to influence and inspire others towards achieving the desired outcome.
In the given situation, Lia is a leader who helps the organization succeed by motivating and inspiring her peers to work together toward team goals. She encourages her team to perform at their best and to put their skills and expertise to use in achieving their goals.
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We know that S = 1 + NCO in an open economy. This means that O since the U.S. has a trade deficit, its investment can be bigger than its savings. O investment must equal savings in the U.S. O since the U.S. has a trade deficit, its investment must be less than its savings
Since S = 1 + NCO in an open economy, it implies that investment can be bigger than savings in the U.S. if there is a trade deficit.
In an open economy, the national saving (S) is equal to domestic investment (I) plus the net capital outflow (NCO), which represents the difference between domestic saving and domestic investment that flows abroad. The equation is expressed as S = I + NCO.
If there is a trade deficit (NCO is negative), it means that the U.S. is investing more abroad than it receives in foreign investment. Consequently, the value of NCO is subtracted from domestic investment to balance the equation. Therefore, investment can be bigger than savings (I > S) when there is a trade deficit.
The equation S = 1 + NCO implies that investment can be bigger than savings in an open economy, particularly if there is a trade deficit. The U.S., having a trade deficit, can experience a situation where investment exceeds savings. However, it's important to note that this relationship is not a strict rule, as various factors and economic conditions can influence the balance between investment and savings in a country.
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As part of an insurance company's training program, participants learn how to conduct an analysis of clients' insurability. The goal is to have participants achieve a time in the range of 30 to 45 minutes. Test results for three participants were the following: Armand, a mean of 370 minutes and a standard deviation of 3.0 minutes; Jerry, a mean of 35.0 minutes and a standard deviation of 30 minutes: and Melissa, a mean of 37.5 minutes and a standard deviation of 16 minutes. a.Compute process capability for the participants and determine whether each is capable. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Cpk Ср 5 Participants Armand Jerry Melissa Is Armand capable? (Click to select) < Prey 10 of 10 !!! Next > s Is Armand capable? (Click to select) Is Jerry capable? (Click to select) Is Melissa capable? (Click to select) b.Can the value of the Cpk exceed the value of Cp for a given participant? 0 Yes No
Armand is capable of consistently achieving the desired time range, while Jerry and Melissa are not capable according to their respective Cpk values.
The process capability for the participants is as follows:
- Armand: Cpk = 10.00
- Jerry: Cpk = -0.10
- Melissa: Cpk = -0.34
Process capability is determined by calculating the Cpk (Process Capability Index) for each participant. Cpk measures the ability of a process to consistently produce within specification limits. A Cpk value greater than 1 indicates that the process is capable, while a value less than 1 suggests that the process is not capable.
In the given case, Armand has a Cpk of 10.00, which is well above the threshold of 1. This indicates that Armand is capable of consistently achieving the desired time range of 30 to 45 minutes. On the other hand, Jerry and Melissa have negative Cpk values, indicating that their processes are not capable of meeting the desired range consistently.
Based on the process capability calculations, Armand is capable of meeting the desired time range, while Jerry and Melissa are not. It is important for the insurance company to address the process issues for Jerry and Melissa in order to improve their insurability analysis and ensure that the desired time range is consistently achieved.
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Carter Communications does not currently pay a dividend. You expect the company to begin paying a dividend of $3.60 per share in 12 years, and you expect dividends to grow perpetually at 4.6 percent per year thereafter. If the discount rate is 14 percent, how much is the stock currently worth? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
If the discount rate is 14 percent, the current value of Carter Communications' stock is approximately $39.44.
To determine the current value of Carter Communications' stock, we can use the dividend discount model (DDM) since we have information about future dividends.
The value of the stock is the present value of all expected future dividends. Let's calculate it step by step:
1. Calculate the present value of the dividends during the perpetuity period:
PV = D / (r - g)
PV = $3.60 / (0.14 - 0.046)
PV = $3.60 / 0.094
PV ≈ $38.30
2. Calculate the present value of the dividend expected in 12 years:
PV = D / (1 + r)^n
PV = $3.60 / (1 + 0.14)^12
PV = $3.60 / 3.172
PV ≈ $1.14
3. Calculate the total present value of the stock:
Total PV = PV of perpetuity dividends + PV of dividend in 12 years
Total PV = $38.30 + $1.14
Total PV ≈ $39.44
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Unlevered Cost of Equity Elliott's Cross Country Transportation Services has a capital structure with 30% debt at a 10% interest rate. Its beta is 1.2, the risk-free rate is 4%, and the market risk premium is 8%. Elliott's combined federal-plus-state tax rate is 25%. a. What is Elliott's cost of equity? Do not round intermediate calculations. Round your answer to two decimal places. % b. What is its weighted average cost of capital? Do not round intermediate calculations. Round your answer to two decimal places. % c. What is its unlevered cost of equity? Do not round intermediate calculations. Round your answer to two decimal places. %
a) Elliott's cost of equity can be calculated by the Capital Asset Pricing Model (CAPM). It is a model that indicates the required rate of return on an investment. The formula is:Ke = Rf + β (Rm – Rf)Where,Ke = Cost of EquityRf = Risk-free rateβ = BetaRm = Market Risk PremiumRisk-free rate = 4%Market Risk Premium = 8%Beta = 1.2Ke = 4% + 1.2 (8%)Ke = 13.60%b)
The weighted average cost of capital (WACC) is a measure of a company's cost of capital, which includes both debt and equity. It is calculated by multiplying the cost of each capital component by its proportional weight and summing the results. WACC = (E/V x Re) + [(D/V x Rd) x (1-T)]Where,E = Market value of the firm's equityD = Market value of the firm's debt V = Total Value (E+D)Re = Cost of equityRd = Cost of debt = Tax rateD/V = Percentage of debt financing E/V = Percentage of equity financing Rd = 10%T = 25%Calculations for Elliott's WACC can be summarized below:WACC = (E/V x Re) + [(D/V x Rd) x (1-T)]Elliott's Weight of Equity = 70%Elliott's Weight of Debt = 30%Cost of Equity (Re) = 13.60%Cost of Debt (Rd) = 10%Tax Rate (T) = 25%WACC = [(0.70 x 13.60%) + (0.30 x 10%) x (1 - 25%)]WACC = 11.54%c) Unlevered Cost of Equity can be calculated by the Capital Asset Pricing Model (CAPM) formula, where the beta is unlevered. The formula is:Keu = Rf + βu (Rm – Rf)Where,Keu = Unlevered cost of equityRf = Risk-free rateβu = Unlevered betaRm = Market risk premium Keu = 4% + 1.03 (8%)Keu = 11.24%
The unlevered beta can be calculated using the formula βu = β / [1 + (1 - T) (D/E)]Where,βu = Unlevered betaβ = Levered betaD = DebtE = EquityT = Tax rateβu = 1.2 / [1 + (1-0.25) (0.3/0.7)]βu = 1.03 Therefore, the Unlevered Cost of Equity for Elliott's Cross Country Transportation Services is 11.24%.
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For any person interested in becoming a security guard, what are the most effective ways to decide on the state in which to enroll for training? Select all that apply.
Seek certification with the federal government.
Look for schools that provide reputable security guard training programs.
Research and compare state licensing requirements for security guards.
Visit at least four or five states of interest to assess job opportunities and training programs.
Options B, C, and D are correct. Option A is incorrect because seeking certification with the federal government is not relevant to deciding on the state to enroll in for training.
If anyone interested in becoming a security guard, they should research and compare state licensing requirements for security guards, look for schools that provide reputable security guard training programs, and visit at least four or five states of interest to assess job opportunities and training programs. Thus, the correct answer is:B. Look for schools that provide reputable security guard training programs.C. Research and compare state licensing requirements for security guards.D. Visit at least four or five states of interest to assess job opportunities and training programs.
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If the distribution was made in lieu of a specific bequest of $9,000 cash, the gain recognized to the estate due to the distribution, if the executor did not elect to recognize gain or loss on the distribution is: a. $0. b. $1,600 (after the 60% net long-term capital gain deduction). c. $4,000. d. $5,000.
If the distribution was made in lieu of a specific bequest of $9,000 cash and the executor did not elect to recognize gain or loss on the distribution, the gain recognized to the estate due to the distribution would be $0.
When a distribution is made in lieu of a specific bequest, the gain recognized to the estate depends on whether the executor elected to recognize gain or loss on the distribution. In this case, it is mentioned that the executor did not make such an election. Therefore, the gain recognized to the estate would be $0.
By not electing to recognize gain or loss, the executor treats the distribution as a non-taxable transfer. The basis of the asset to the estate is $1,000, and the fair market value of the asset is $5,000. However, since the executor did not choose to recognize gain or loss, the gain is not recognized for tax purposes.
Hence, the correct answer is a. $0, as no gain is recognized to the estate due to the distribution in lieu of the specific bequest.
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Crazy Eddie was an electronics retailer. By using unethical accounting standards, the company was brought up on fraud charges. Read more about the case using the following article by White Collar Fraud: "Crazy Eddie Fraud". After you read the article, using your knowledge of merchandising firms, in a 750-word essay, answer the following bullet prompts.
Analyze how Crazy Eddie’s fictitious purchase discounts affected the company’s profit on the income statement.
Create your own example of the effect on the income statement.
Examine how the premature recognition of sales affected the company’s profit on the income statement.
Construct an example of how this might look.
Describe how overstatement of inventory assets affected the balance sheet.
Describe how this balance sheet would appear.
When establishing a set of records for a merchandising company, describe what procedures you implement to ensure ethical decisions were made.
Fictitious purchase discounts, premature recognition of sales, and overstatement of inventory assets distorted the company's income statement and balance sheet, misleading investors and stakeholders.
Unethical Accounting Practices and their Impact on Crazy Eddie's Financial Statements
Crazy Eddie was a notorious electronics retailer that engaged in fraudulent activities by manipulating its financial statements. Unethical accounting practices were used to distort the company's financial position and mislead investors and stakeholders. Additionally, it will discuss the importance of implementing ethical procedures when establishing records for a merchandising company.
1. Crazy Eddie's fictitious purchase discounts involved fabricating discounts received from suppliers to artificially reduce the cost of inventory. This inflated the gross profit on the income statement. By inflating the gross profit, the company could create the illusion of higher profitability and attract more investors. However, the fictitious discounts misrepresented the true cost of goods sold, leading to an overstatement of gross profit and net income.
Example: Suppose Crazy Eddie recorded a fictitious purchase discount of $10,000. As a result, the cost of goods sold would be understated by $10,000, leading to an overstatement of gross profit and ultimately net income by the same amount.
2. The premature recognition of sales involves recording revenue before it is actually earned. Crazy Eddie engaged in this practice by recognizing revenue from sales that had not yet occurred or were uncertain. This inflated the company's sales and net income, giving a false impression of strong performance. However, it overstated the profitability and financial position of the company.
Example: Crazy Eddie recorded a sale of $50,000 before the goods were shipped to the customer. By prematurely recognizing this sale, the company artificially increased its revenue and net income by $50,000.
3. Crazy Eddie overstated its inventory assets by inflating the value of its inventory through fraudulent means. This involved recording inflated inventory values, including fictitious or nonexistent items. By overvaluing inventory, the company artificially increased its assets on the balance sheet. This overstatement of inventory assets resulted in an inaccurate representation of the company's financial health.
Example: Crazy Eddie recorded an overstatement of $100,000 for its inventory value. This overstatement would lead to an inflated total assets value by the same amount.
4. Due to the overstatement of inventory assets, Crazy Eddie's balance sheet would present a distorted view of the company's financial position. The reported inventory value would be higher than its true value, leading to an inflated total assets figure. This would also affect other key financial ratios, such as the current ratio, inventory turnover, and return on assets, providing an inaccurate representation of the company's liquidity and efficiency.
5. To ensure ethical decision-making in a merchandising company, several procedures can be implemented. These include:
a) Implementing a strong internal control system to prevent fraud and detect any irregularities in financial reporting.
b) Conducting regular and independent audits to ensure compliance with accounting standards and detect any potential misstatements or fraudulent activities.
c) Segregating duties and responsibilities to prevent conflicts of interest and enhance accountability.
d) Implementing a code of ethics and providing ethics training to employees to promote ethical behavior and create a culture of integrity within the organization.
e) Engaging independent external auditors to provide an unbiased assessment of the company's financial statements and internal controls.
f) Maintaining proper documentation and records to support all financial transactions, ensuring transparency and accountability.
Crazy Eddie's case highlights the detrimental impact of unethical accounting practices on a merchandising company's financial statements. To ensure ethical decision-making in a merchandising company, implementing strong internal controls, conducting regular audits, and promoting a culture of integrity are crucial in maintaining accurate financial records and preventing fraudulent activities.
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An investor who expects a very large stock price increase in the near future can achieve the highest possible return by:
a. Purchasing an Out-of-the-Money put option
b. Purchasing an in-the-money Call option
c. Purchasing The stock
d. Purchasing an Out-of-the-money Call option
An investor who expects a very large stock price increase in the near future can achieve the highest possible return by purchasing an in-the-money Call option. The correct option is b.
A call option is a contract that provides the holder the right, but not the obligation, to purchase an underlying security at a fixed price on or before a specified date in the future. The buyer of a call option believes that the underlying asset will increase in value before the contract expires. A call option is referred to as "in-the-money" if the strike price of the option is less than the current price of the underlying asset.
When the investor has a positive outlook on the stock and believes the stock price will increase, the investor will buy an "in-the-money" call option. This will offer the highest potential profit for the investor, as the investor will get the difference between the stock price and the strike price if the stock price goes up.
In conclusion, An investor who expects a very large stock price increase in the near future can achieve the highest possible return by purchasing an in-the-money Call option. The correct option is b.
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3) Which sequence of stages is typical for product flow in a supply chain?
A) Supplier Manufacturer→ Distributor B) Retailer → Distributor Customer C) Manufacturer → Retailer → Distributor D) Supplier → Customer → Retailer
4) Supply chain surplus involves what two parts?
A) Manufacturing cost and selling price B) Customer value and supply chain cost C) Customer value and high quality products D) Reliable transportation and supply chain cost
5) For any supply chain, the source of revenue is generated by
A) efficient operations. B) information flows.
C) the customer. D) product flows.
6) A facility that creates new products, processes, and technologies for the entire network is
A) a lead facility. B) a source facility.
C) a server facility.
D) an outpost facility.
3 (C) Manufacturer → Retailer → Distributor. 4) Supply chain surplus involves the two parts: B) Customer value and supply chain cost.5) For any supply chain, the source of revenue is generated by (C) the customer 6) A facility that creates new products, processes, and technologies for the entire network is (A) a lead facility.
Manufacturers are responsible for making the products that will be sold. After the production of these products, they are delivered to retailers. Retailers act as intermediaries between manufacturers and customers and help to deliver the products to the customers. In turn, Distributors are responsible for ensuring that products are delivered from manufacturers to retailers and retailers to custome
4) Supply chain surplus involves the two parts: B) Customer value and supply chain cost. Customer value refers to the amount a customer is willing to pay for a product. Whereas supply chain cost refers to the expenses incurred in getting the product to the customer. By reducing supply chain cost and improving customer value, supply chain surplus can be achieved. It is because surplus results when there is a gain that exceeds the total cost of the process. The gain could be in the form of a new customer, increased sales, reduced cost of production, or other benefits that lead to increased profits.
5) For any supply chain, the source of revenue is generated by (C) the customer. Supply chains exist to get products to customers who buy them. A supply chain can only generate revenue when a customer purchases a product. The revenue generated through the supply chain is in the form of the price paid by the customer for the product, minus the costs of production, distribution, and other expenses incurred in getting the product to the customer. It is the responsibility of the supply chain to ensure that products are delivered efficiently and effectively to customers to maximize revenue.
6) A facility that creates new products, processes, and technologies for the entire network is (A) a lead facility. A lead facility can be a manufacturing plant, a research and development center, or a design studio. Its primary function is to develop new products, processes, and technologies that are beneficial for the entire supply chain network. It acts as a catalyst for innovation, and it ensures that the supply chain remains competitive by continually improving its products and services.
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Describe the main types of work motivations, which influences
can be used to increase them, for which context and which tasks
they are more important
Work motivations can be categorized into intrinsic and extrinsic motivations. Intrinsic motivations are driven by internal factors such as personal fulfillment and enjoyment, while extrinsic motivations are influenced by external factors such as rewards and recognition. To increase work motivations, organizations can utilize various influences such as providing meaningful work, offering fair compensation, fostering a positive work environment, and promoting career growth opportunities.
The main types of work motivations include intrinsic and extrinsic motivations. Intrinsic motivations are rooted in internal factors and are driven by personal satisfaction, enjoyment, and a sense of purpose. These motivations are often associated with tasks that require creativity, autonomy, and personal growth. On the other hand, extrinsic motivations are influenced by external factors such as rewards, recognition, and tangible benefits. These motivations can include financial incentives, promotions, public acknowledgment, or other forms of external recognition. Extrinsic motivations are particularly effective in tasks that involve clear performance goals or tangible rewards.
To increase work motivations, organizations can utilize various influences. Providing meaningful work that aligns with employees' values and interests can enhance intrinsic motivations. Creating a positive work environment that fosters collaboration, autonomy, and open communication can also contribute to increased motivation. Fair compensation and rewards systems that recognize and acknowledge employees' contributions can enhance extrinsic motivations. Additionally, offering opportunities for career growth, skill development, and advancement can serve as powerful motivators.
The importance of these influences may vary depending on the context and tasks involved. For tasks that require creativity, problem-solving, or innovation, intrinsic motivations play a crucial role. Intrinsic motivations can be increased by providing autonomy, challenging assignments, and opportunities for personal growth. For tasks that involve performance-based goals or measurable outcomes, extrinsic motivations such as rewards and recognition can be more influential in driving motivation. It is important for organizations to understand the nature of the tasks and the preferences of their employees to effectively utilize the appropriate influences and enhance work motivations.
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Use this information about Carmelita Inc. to answer the question that follow.
Carmelita Inc. has the following information available:
Costs from Beginning Inventory Costs from Current Period
Direct materials $4,700 $20,100
Conversion costs 6,300 159,400
At the beginning of the period, there were 500 units in process that were 43% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,200 units were started and completed. Ending inventory contained 300 units that were 29% complete as to conversion costs and 100% complete as to materials costs. Assume that the company uses the FIFO process cost method. Round cost per unit figures to the nearest cent when calculating total costs.
The total costs transferred into Finished Goods for units started and completed were
a.$167,752
b.$228,885
c.$119,104
d.$177,430
The total costs transferred into Finished Goods for units started and completed were $177,430. Therefore, the correct option is D.
There are certain steps that should be followed in order to calculate the total costs transferred into Finished Goods for units started and completed using the FIFO method. These steps are as follows:
1. First of all, calculate the equivalent units of production (EUP) for both direct materials and conversion costs for the current period using the following formulas:
EUP for direct materials = Units fully completed and transferred out + (Ending WIP inventory units × % complete as to DM) – Beginning WIP inventory units
EUP for conversion costs = Units fully completed and transferred out + (Ending WIP inventory units × % complete as to CC) – Beginning WIP inventory units
Where: DM = Direct materials, CC = Conversion costs
EUP for direct materials = 5,200 + (300 × 100%) - 0 = 5,500
EUP for conversion costs = 5,200 + (300 × 29%) - (500 × 43%) = 5,088
2. Then calculate the total cost per equivalent unit (TCEU) for both direct materials and conversion costs using the following formulas:
TCEU for direct materials = (Costs from Beginning Inventory + Costs from Current Period) ÷ EUP for direct materials
TCEU for conversion costs = (Costs from Beginning Inventory + Costs from Current Period) ÷ EUP for conversion costs
TCEU for direct materials = ($4,700 + $20,100) ÷ 5,500 = $4.36
TCEU for conversion costs = ($6,300 + $159,400) ÷ 5,088 = $33.84
3. Finally, calculate the total costs transferred into Finished Goods for units started and completed using the following formula:
Total cost transferred = Units completed and transferred out × TCEU for DM + Units completed and transferred out × TCEU for CC
Total cost transferred = 5,200 × $4.36 + 5,200 × $33.84 = $22,672 + $175,758 = $198,430
However, this amount represents the total costs for both completed and uncompleted units. Since ending inventory contains 300 units that were 29% complete as to conversion costs, only the cost of completed units should be transferred to Finished Goods.
Therefore, the total costs transferred into Finished Goods for units started and completed are:
5,200 - 300 = 4,900 (completed units)
4,900 × $4.36 + 4,900 × $33.84 = $21,364 + $156,066 = $177,430 (rounded to the nearest cent)
Hence, option d. $177,430 is correct.
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a) Briefly describe top five (5) qualities of an effective project manager.
b) You have just started managing a new project and leading a team with mixed quality members.
You are determined to finish the project on time, within the budget and smoothly without serious
conflicts among your team members. Discuss two (2) challenges you may face during your project
execution.
c) Suggest solutions to the challenges you describe in Question 1 b).
a) The top five qualities of an effective project manager are:
1. **Leadership:** An effective project manager inspires and motivates their team, sets clear goals and expectations, and provides guidance and support throughout the project. They have strong decision-making skills and can guide the team towards success.
2. **Communication:** A project manager must possess excellent communication skills to effectively convey project objectives, expectations, and progress to team members, stakeholders, and clients. They should be adept at active listening, negotiation, and resolving conflicts.
3. **Organizational Skills:** Managing multiple tasks, resources, and deadlines requires strong organizational skills. Effective project managers can prioritize tasks, create detailed project plans, and efficiently allocate resources to ensure smooth project execution.
4. **Problem-solving:** Projects often encounter unexpected challenges and roadblocks. An effective project manager is a skilled problem solver who can think critically, analyze situations, and devise creative solutions to overcome obstacles and keep the project on track.
5. **Adaptability:** Project environments can be dynamic and unpredictable. A successful project manager is adaptable and flexible, able to adjust plans and strategies as needed to accommodate changing circumstances and stakeholder requirements.
b) Two challenges you may face during project execution with a team of mixed-quality members are:
1. **Skill gaps and performance disparities:** With a team comprising members of varying skills and abilities, you may encounter challenges in achieving a consistent level of performance. Some team members may require additional support or training to meet project requirements, while others may excel and need more challenging tasks.
2. **Conflict and collaboration issues:** When team members have different levels of competence or work styles, conflicts and collaboration issues can arise. Differing opinions, lack of trust, or communication breakdowns can hinder teamwork and impact project progress.
c) Solutions to the challenges mentioned above:
1. **Skill gaps and performance disparities:** Conduct a thorough skills assessment early in the project to identify individual strengths and weaknesses. Provide training, mentoring, or resources to enhance the skills of team members who need support. Assign tasks based on individual capabilities while also encouraging knowledge sharing and collaboration among team members to leverage their collective strengths.
2. **Conflict and collaboration issues:** Foster open communication and establish clear expectations for collaboration and respectful interaction within the team. Encourage regular team meetings to address concerns, clarify roles, and promote understanding. Implement conflict resolution strategies, such as mediation or team-building exercises, to improve relationships and foster a positive team dynamic. Encouraging team members to focus on shared project goals and emphasizing the importance of teamwork can also help mitigate conflicts and enhance collaboration.
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Here are data on two stocks, both of which have discount rates of 15 percent:
Stock A Stock B
Return on equity 15% 10%
Earnings per share $2.00 $1.50
Dividends per share $1.00 $1.00
a. What are the dividend payout ratios for each firm?
b. What are the expected dividend growth rates for each firm?
c. What is the proper stock price for each firm?
Stock A: Dividend payout ratio = 50%. Stock B: Dividend payout ratio = 67%. The expected dividend growth rate for Stock A: 7.5% and for Stock B: 3.3%. The proper stock price for Stock A is $13.33 and for Stock B is $8.57.
a. Stock A: Dividend payout ratio = Dividends per share / Earnings per share= $1.00 / $2.00 = 0.50 or 50%Stock B: Dividend payout ratio = Dividends per share / Earnings per share= $1.00 / $1.50 = 0.67 or 67%.
The dividend payout ratio is a measure of the proportion of earnings paid out in dividends. It can be calculated by dividing dividends per share by earnings per share. The dividend payout ratio for Stock A is 50% ($1.00/$2.00), and for Stock B it is 67% ($1.00/$1.50).
b. The expected dividend growth rate can be calculated using the dividend discount model. This model assumes that the stock price is equal to the present value of all future expected dividends.
The expected dividend growth rate can be calculated using the following formula:
g = (1 - Payout ratio) x ROEF or Stock A, the expected dividend growth rate is (1-0.5) x 15% = 7.5%.
For Stock B, the expected dividend growth rate is (1-0.67) x 10% = 3.3%.
c. The proper stock price for each firm can be calculated using the dividend discount model.
The formula for this model is:
P = D / (r - g)
P = stock price
D = expected dividend per share
r = discount rate
g = expected dividend growth rate
For Stock A, the proper stock price is:
$1.00 / (0.15 - 0.075) = $13.33
For Stock B, the proper stock price is:
$1.00 / (0.15 - 0.033) = $8.57.
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Benson Manufacturing Company expects to make 31,600 chairs during the Year 1 accounting period. The company made 4,300 chairs in January. Materials and labor costs for January were $17,700 and $24,200, respectively. Benson produced 2,100 chairs in February. Material and labor costs for February were $9,400 and $12,700, respectively. The company paid the $821,600 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Benson desires to sell its chairs for cost plus 35 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. Price per unit January February
Benson Manufacturing Company expects to make 31,600 chairs during the Year 1 accounting period. Benson should charge $13.15 for the chairs produced in January and $14.20 for the chairs produced in February.
To calculate the price that Benson Manufacturing Company should charge for the chairs produced in January and February, we need to determine the cost per unit and then add 35% to the cost.
Calculate the cost per unit for January:
Total cost for January = Materials cost + Labor cost
Total cost for January = $17,700 + $24,200 = $41,900
Cost per unit for January = Total cost for January / Number of chairs produced in January
Cost per unit for January = $41,900 / 4,300 = $9.74
Calculate the cost per unit for February:
Total cost for February = Materials cost + Labor cost
Total cost for February = $9,400 + $12,700 = $22,100
Cost per unit for February = Total cost for February / Number of chairs produced in February
Cost per unit for February = $22,100 / 2,100 = $10.52
Calculate the selling price per unit:
Selling price per unit = Cost per unit + (Cost per unit * 35%)
Selling price per unit for January = $9.74 + ($9.74 * 0.35) = $13.15 (rounded to 2 decimal places)
Selling price per unit for February = $10.52 + ($10.52 * 0.35) = $14.20 (rounded to 2 decimal places)
Therefore, Benson should charge $13.15 for the chairs produced in January and $14.20 for the chairs produced in February.
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Other things being equal, the present value of a bond increases with: A. higher annual coupons (dollar returns promised from the bond) B. lower interest rates C. both of the above D. none of the above
The present value of a bond is influenced by interest rates. When interest rates decrease, the present value of a bond increases. This is because lower interest rates lead to higher bond prices and lower bond yields. Therefore the correct option is B. lower interest rates.
Bondholders are willing to pay more for a bond with a lower yield. Conversely, when interest rates rise, bond prices decrease, and bond yields increase. The relationship between bond prices and interest rates is inverse.
While higher annual coupons or dollar returns promised by a bond do not directly impact the present value of the bond, they can affect the yield or total returns. Bonds with higher annual coupons may offer higher yields or total returns, which can be attractive to investors.
In summary, the present value of a bond increases with lower interest rates. As interest rates fall, bond prices rise, leading to higher present values. Conversely, when interest rates rise, bond prices decrease, resulting in lower present values. While higher annual coupons can increase the yield or total returns of a bond, they do not directly impact the bond's present value.
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