Answer:
$20.11
Explanation:
The computation of the price i.e. paid is shown below:
Given that
Growth rate = 2.8%
Dividend at time 0 = $1.8
So,
Dividend at time 1 = Dividend at time 0 × (1 + growth rate)
= $1.8 × (1 + 2.8%)
= $!.85
And,
Required return = 12%
Based on the above information
Now use the Gordon Growth formula,
Price today = Dividend at time 1 (Required return - Growth rate)
= $1.85 ÷ (12% - 2.8%)
= $20.11
Rising relative strength indicates a. lack of investor conviction b. the security is performing better than the market or entity being compared c. the market is performing better than the security d. positive price momentum e. both b and d
Answer:
b. the security is performing better than the market or entity being compared
Explanation:
In the case when the relative strength is rising so that means the stock maintain its present price i.e. better as compared with the general market
In the given situation, the option B is correct as it mentioned that the security which is performed is better as compared with the market or entity.
Therefore option B is correct
And, all the other options are wrong
The introduction of risk-free borrowing and lending changes the nature of the original Markowitz efficient frontier by turning the efficient frontier into a straight line true or false
Answer: True
Explanation:
The efficient frontier consists of the investment portfolios which gives the highest return for a certain level of risk or the lowest risk for the return. The returns that are gotten depends on the portfolios investment combination.
The introduction of risk-free borrowing and lending changes the nature of the original Markowitz efficient frontier by turning the efficient frontier into a straight line.
The statement in the question is true.
A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years
Answer:
$58,204.67
Explanation:
The computation of the fund contains at the closing of six years is shown below:
Given that
Present value = $46,000
Compound interest rate, i = 4%
Period = 6 years
Based on the above information
As we know that
Future value = Present value × (1 + interest rate)^number of years
So,
= $46,000 × (1 + 0.04)^6
= $58,204.67
What are two examples of "non-store" retailing?
Answer:
vending machine
Explanation:
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,200 of direct materials and used $3,700 of direct labor. The job was not finished by the end of the month, but needed an additional $2,700 of direct materials and additional direct labor of $5,900 to finish the job in October. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B
Answer:
$11,450
Explanation:
Given the data below;
Direct materials requisitioned = $2,200
Direct labor = $3,700
Overhead = 150% of $3,700 = $5,550
•Total job costs added to work in process at the end of September
= $2,200 + $3,700 + $5,550
= $11,450
Costs added during October
Direct materials = $2,700
Direct labor = $5,900
Overhead = 150% × $5,900 = $8,850
Total job costs added to work in process in October
= $2,700 + $5,900 + $8,850
= $17,450
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 430 units. Ending inventory at January 31 totals 170 units. Units Unit Cost Beginning inventory on January 1 390 $ 3.80 Purchase on January 9 90 4.00 Purchase on January 25 120 4.10 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)
Answer:
cost of goods sold = 430 units x $3.89 = $1,672.70
ending inventory = 170 units x $3.89 = $661.30
Explanation:
Beginning inventory on January 1: 390 $3.80 = $1,482
Purchase on January : 90 $4.00 = $360
Purchase on January 25: 120 $4.10 = $492
total number of units = 600
total value = $2,334
average cost per unit = $3.89
cost of goods sold = 430 units x $3.89 = $1,672.70
ending inventory = 170 units x $3.89 = $661.30
A company reported the following amounts and balances: Beginning capital balance $45,000, Net Sales $420,000, Cost of Goods Sold $273,000, Total Expenses $112,000, Net Income $35,000, Ending Cash Balance $22,000, Withdrawals $7,200, Ending Accounts Receivable $27,000. What is the Ending Capital Balance
Answer:Ending Capital Balance= $72,800
Explanation:
Ending Capital Balance is is the amount left in an account whether , positive or negative, at the end of an accounting period and calculated as Beginning Capital Balance+Net Income-Withdrawals
Particulars Amount
Beginning Capital Balance $45,000
Add:
Net Income $35,000
deduct:
Withdrawals $7,200
Ending Capital Balance $72,800
Red Sun Rising Corp. has just signed a lease for its new manufacturing facility. The lease agreement calls for annual payments of $1,050,000 for 15 years with the first payment due today. If the interest rate is 3.23 percent, what is the value of this liability today
Answer:
$12,727,043.35
Explanation:
The value of the lease payments today can be ascertained using the formula for the present value of an annuity due shown below:
PV=annual payments*(1-(1+r)^-n/r*(1+r)
annual payments=$1,050,000
r=interest rate=3.23%
n=number of annual payments in 15 years=15
PV=$1,050,000*(1-(1+3.23%)^-15/3.23%*(1+3.23%)
PV=$1,050,000*(1-0.62074194 )/3.23%*1.0323
PV=$1,050,000*0.37925806/ 3.23%*1.0323
PV=$12,727,043.35
A company sells a product that is relatively unique. Consequently, there is not a lot of competition for the product. The company most likely: A. is a price-taker. B. uses a pricing approach emphasizing target costing. C. is a price-setter. D. sells commodities.
Answer:
C.
Explanation:
Price-setters or price-makers are those companies that are able to set prices as their products vary from those of it's competitors. Such entities are able to enjoy pricing power in monopoly market.
In the given scenario, the company whose product is relatively unique will be price setter. Since the product is new in the market, the entity is able to set price in the market for it's competitors.
Therefore, the correct answer is option C.
5. The Federal Reserve's organization There are members of the Federal Reserve Board of Governors. Which of the following is a responsibility of the Federal Open Market Committee (FOMC)? Making decisions regarding monetary policy Buying and selling stocks Issuing mortgages to homeowners
Answer: Making decisions regarding monetary policy
Buying and selling stocks
Explanation:
The primary purpose of the federal open market committee is to look all the open market operations all over the nation. It ensures the buying and selling of government bonds. It reviews financial conditions of the nation and makes decisions for monetary policy. It looks for sustainable economic growth and also checks for price stability of goods in the market.
Read the following training evaluation problem, then carefully answer the questions that follow. Before beginning, you should be familiar with Kirkpatrick’s (1976) four levels of criteria for evaluating training programs:
Walstart" has recently designed a training program for their employees on crime prevention. Employees will attend a two-hour workshop designed to train them to watch for shoplifters. They will also be taught procedures that should be used when identifying a potential shoplifter. This workshop primarily includes videos of Walstart’s policies, conducted in large rooms that can accommodate up to 150 trainees at a time. You are called in to help Walstart evaluate the effectiveness of their training program.
Required:
You first ask Walstart whether they conducted an organizational needs assessment with respect to designing this training. What factors might be particularly important for you to know with respect to this type of needs assessment?
Answer:
The variables that would need to be weighed for this kind of evaluation of need will be given below.
Explanation:
Reaction: The trainees could believe that the experience has been beneficial for them anyway. This assessed some basic questions via asking the trainees, such as-did you enjoy the training? Is it going to be useful here for some on-job role? Was it possible to comprehend the vocabulary used?Learning: Evaluate the performance including its trainees by basic tests to see if the teaching needs have indeed been fulfilled. Behavior: The next step would be to see how the workers put the studying into effect to be used on the job. The procedures learned to be themselves for capturing or picking a shoplifter could now be successfully applied by the educated workers to work.Results: The assumption as well as perception including its training results will now be measured throughout this phase and therefore any shortcomings need to be reviewed and addressed during the next module for something like a successful training result.The party responsible for the preparation of financial statements is:_______
a. external auditors
b. management
c. stockholders
d. Financial Accounting
e. Standards Board
Answer:
The party responsible for the preparation of financial statements is:_______
b. management
Explanation:
Company B's financial statements are prepared by its management (board of directors) the under the applicable reporting framework, such as the international financial reporting standards (IFRS) or the US GAAP (generally accepted accounting principles). The external auditors verify that the financial statements have been so prepared and issue their audit opinion as to their true and fair view and in compliance with auditing standards. Financial statements are prepared for the stockholders mainly and other stakeholders.
17. You have just been awarded a $200,000 insurance settlement. The insurance company has offered to invest this amount at a guaranteed interest rate of 4.5% for ten years. You think you can invest this money yourself and earn an average return of 8%. If you are able to do that, how much more will your settlement be worth ten years from now than if you had left the funds with the insurance company
Answer:
$121191.12
Explanation:
Future value is the value of an asset at a specific date. It measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, rate of return.
Formula: FV=PV(1+r/100)^n
where
FV=future value
PV=present value = 200,000
r=rate of interest = 4.5%
n=time period. = 10
Insurance company
FV = 200,000*(1.045)^10
FV = 200,000*1.55296942
FV = $310593.88(Approx)
Investment by yourself
FV = 200,000*(1.08)^10
FV = 200,000*2.158925
FV = $431785
Difference= 431785-310593.88
Difference= $121191.12
Christopher is a self-employed cash-method, calendar-year taxpayer, and he made the following cash payments related to his business this year. Calculate the after-tax cost of each payment assuming Christopher has a 37 percent marginal tax ra
Answer:
a. The After-tax cost is $1,080 because this cost is not deductible
b. Municipal bonds provide returns that are tax deductible which means that half of of this interest will be tax deductible.
After-tax cost = 465 - (465 *0.5 * 37%)
= $379
c. Office supplies are full deductible for tax reasons so after-tax cost is;
= 965 * ( 1 - 37%)
= $608
d. The work boots are not deductible so the after-tax cost is the same as the cost of $675.
2. A bank offers a savings account with a 6% annual interest rate, compounded monthly. Stu wants to open a savings account and make one deposit now that will enable him to withdraw $700 to go on vacation 5 months from now and $2000 for a deposit on a rental apartment when he starts working in 3 years from now. How much money does Stu need to deposit now
Answer:
2354.048
Explanation:
To calculate the Present Value we need to use the Present Value formula
Present Value = Future Value (1/1+Required Return)^number of periods
Required return = 0.5%.
For the vacation,
Present Value = 700/1.005^5
Present Value = 682.759.
Similarly, for rent,
Present Value = 2000/1.005^36
Present Value = 1671.289.
Hence, the total amount will be = 1671.289 + 682.759 = 2354.048
A process is __________ constrained if the highest implied utilization of all resources is less than or equal to 100%.
Answer:
Demand.
Explanation:
Demand can be defined as the quantity of goods or services that consumers are willing and able to buy at a given price over a specific period of time.
The law of demand states that there is a negative relationship between the price of a good or service and the quantity of the good or service demanded by a customer or consumer.
This ultimately implies that, when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.
Hence, a process is demand constrained if the highest implied utilization of all resources is less than or equal to 100% because employment and the level of production or output is limited by overall demand. An example of a demand constrained process or system is capitalism because it is always characterized by unending unemployment rate.
3. Assume that on January 2, 2022, the copyrighted item was impaired in its ability to continue to produce strong revenues. The other intangible assets were not affected. Starn estimated that the copyright would be able to produce future cash flows of $22,700. The fair value of the copyright was determined to be $21,700. Compute the amount, if any, of the impairment loss to be recorded.
Answer:
Explained
Explanation:
The impairment loss can be calculated by comparing the carrying value and the higher of recoverable amount and value in use assets. In this question, the carrying value of the copyrighted item is not given. But we have the recoverable amount (FV) and the Value in use( i.e Future cashflows).In this question, the value in use is higher than the recoverable amount. so we will deduct value in use from the carrying amount of the copyrighted asset.
Impairment loss = Carrying value - Value in use
All else equal, which of the following bond has the lowest market price? Select one: a. A bond with a 7% coupon. b. A bond with a 6% coupon. c. A bond with a 5% coupon. d. A bond with a 9% coupon. e. A bond with a 10% coupon.
Answer:
b. A bond with a 6% coupon.
Explanation:
All else equal, the bond with the lowest coupon payment (in this case, the bond with a 6% coupon) is the bond that will have the lowest price, simply because the coupon represents the periodic interest that the bondholder will get, and in general terms, the less interests a bond pays, the cheaper its price.
Besides, a lower coupon rate is more likely to be lower than the prevailing interest rate in the market, which is one of the most important factors when determining the price of a coupon.
Answer: c) A bond with a 5% coupon.
Explanation: All else equal, the bond with the lowest coupon rate has the lowest market price, whereas the bond with the highest coupon rate has the highest market price. As a result, a bond with a 5% coupon has a lower market price than a bond with a 6% coupon, which has a lower market price than a bond with a 7% coupon, and so on.
A bond with a 9% coupon has a higher market price than a bond with a 7% coupon, which has a higher market price than a bond with a 6% coupon, and so on. Furthermore, a bond with a higher coupon rate is less vulnerable to interest rate fluctuations because its coupon payments are larger.
As a result, high-coupon bonds have less interest rate danger than low-coupon bonds. As a result, in general, bond prices and yields move in the opposite direction.
To know more about coupon rate refer here :
https://brainly.com/question/16913107#
#SPJ11
At the end of the year, Bramble Co. has pretax financial income of $583,000. Included in the $583,000 is $74,200 interest income on municipal bonds, $26,500 fine for dumping hazardous waste, and depreciation of $63,600. Depreciation for tax purposes is $47,700. Compute income taxes payable, assuming the tax rate is 30% for all periods.
Answer: $165,360
Explanation:
Taxable Income = Pretax income + fine for dumping waste - interest income on municipal bond + book depreciation - tax depreciation
= 583,000 + 26,500 - 74,200 + 63,600 - 47,700
= $551,200
Income taxes payable = 551,200 * 30%
= $165,360
For each of the three generic strategies (i.e., cost leadership, differentiation, and focus), which of the four competitive uses of information is most powerful?
Answer: Focus
Explanation:
The overall cost leadership is a kind of generic strategy which mainly focuses on the encouraging the customers to purchase goods on low cost and also appeal them on a industry wide market. This also offers an competitive advantage of industry worldwide.
The differentiation is a strategy which encourages the customers based on the uniqueness of goods.
The focus is a strategy which focus on narrow market segment using both uniqueness of goods and low cost as competitive advantages at the international level.
The Hart-Scott-Rodino Act requires certain competing business entities who are contemplating mergers involving dollar amounts of a certain size to give advance notice to the: I. Federal Trade Commission. II. Federal Antitrust Bureau. III. Department of Justice. IV. Secretary of Commerce. Multiple Choice III only. III and IV. I only.
Answer:
I. Federal Trade Commission.
III. Department of Justice.
Explanation:
The Hart-Scott-Rodino Act of 1976 is actually a complement of prior antitrust laws that already existed but were incomplete or outdated. Its main focus is set on a pre-merger notification report that must be given by the parties involved to the Federal Trade Commission (FTC) and the Department of Justice (DOJ). The HSR Act only applies to mergers or acquisitions that are relatively large, e.g. the transaction must involve at least $90 million.
During recessionary periods: a outlays decrease and tax revenue increases. b outlays and tax revenue stay the same. c outlays decrease and tax revenue falls. d outlays increase and tax revenue falls. e outlays increase and tax revenue increases.
Answer:
D
Explanation:
A recession is when the GDP of an economy for two consecutive quarters is negative.
In a recessionary period, income falls and as a result tax falls. this makes tax is an automatic stabilizer.
The government would also increase spending in order to stimulate the economy
Find the duration of a 6% coupon bond making annual coupon payments if it has four years to maturity and a yield to maturity of 5%. (assuming a face value of $1,000)
Answer:
3.703716
Explanation:
The duration can be calculated by dividing the present value of cash flow over time by the present value of cashflow.
Time Cash flow PV of CF PV of CF X t
1 60 $59.41 $59.41
2 60 $58.82 $117.64
3 60 $58.24 $174.71
4 1060 $1,018.64 $4,074.56
Total $1,195.10 $4,426.30
Duration = 4426.30/1195.1
Duration = 3.703716
Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000. The current price index is
Answer:
125
Explanation:
Calculation for the current price index using this formula
Current price index =Current price/Base year price
Let plug in the formula
Current price index=$2,500/$2,000
Current price index=1.25*100
Current price index=125
Therefore the Current price index is 125
Calculate the present value for the following assuming that the money can be invested at 12% percent. (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)
Answer and Explanation:
The computation of the present value in the following cases are as follows
As we know that
A = P × (1 + interest)^number of years
a) P = $50,000
b) $75,000 = P × (1.12)^6
P = $37,998
c) P = $12,000 × [ 1 ÷ 1.12 + 1 ÷ 1.12^2 + 1 ÷ 1.12^3 + 1 ÷ 1.12^4 + 1 ÷ 1.12^5 + 1 ÷ 1.12^6 ]
= $12,000 × [ 1 ÷ 1.12] [1- (1 ÷ 1.12)^6] / (1 - 1 ÷ 1.12)
= $12000 × [0.893] [0.493] ÷ 0.107
= $12,000 × 4.111
= $49,332
Option A would be chosen
30. Kendra wants to be able to make withdrawals of $60,000 a year for 30 years after retiring in 35 years. How much will she have to save each year up until retirement if her account earns 7% interest
Answer:
Annual deposit= $5,386
Explanation:
First, we need to calculate the capital required when she retires. We will use the following formulas:
FV= {A*[(1+i)^n-1]}/i
A= annual withdraw
FV= {60,000*[(1.07^30) - 1]} / 0.07
FV= $5,667,647.18
PV= FV/(1+i)^n
PV= 5,667,647.18/1.07^30
PV= $744,542.47
At retirement, she needs $744,542.47
Now, we can determine the annual deposit:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (744,542.47*0.07) / [(1.07^35) - 1]
A= $5,386
I F Passed Company (IFPC) purchased a new van on January 1, 2019. The van cost $40,000 with an estimated life of 5 years and $10,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance in the accumulated depreciation for 2020
Answer:
Accumulated depreciation= $19,200
Explanation:
Giving the following information:
The van cost $40,000 with an estimated life of 5 years and $10,000 salvage value at the end of its useful life.
To calculate the depreciation expense for each year, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
2019:
Annual depreciation= 2*[(40,000 - 10,000)/5]= 12,000
2020:
Annual depreciation= 2*[(30,000 - 12,000)/5]= 7,200
Accumulated depreciation= 12,000 + 7,200= $19,200
Help me please thank you
Answer:
Preparing a gourmet meal is a great team building exercise! Working in a kitchen together is similar to working a project. Each person has to work cohesively together to produce a product. This can help teach divvying up certain aspect of the project, like one person cuts the vegetables and the other starts to gather the pots and pans. If they work separately and alone, the meal won't be prepared correctly. Communication is a very important aspect of this. If the group works together correctly, separates the jobs equally, and communicates the needs of the project to each other the meal will be made correctly! If they do not, the entire meal will fall apart.
when a perpetual system is in used and transportation cot is incurred to obtain inventory, the transportation cost is:
Answer: a. added to Inventory.
Explanation:
A Perpetual Inventory system is one where the inventory records of a company are updated as soon as inventory is either received or sold thus ensuring that the inventory balance is more accurate.
When using a perpetual inventory system, a key feature is that the transportation costs of the inventory are added to the inventory as part of the costs of acquiring the inventory unlike with the periodic system where a separate account will be maintained.
A parent uses the initial value method, sells inventory to the subsidiary, and intra-entity gross profits exist in beginning inventory. What is the effect of Consolidation Entry
Answer: The cost of goods sold and the retained earnings of the subsidiary decreases.
Explanation:
Subsidiary simply means when an entity is owned by another entity which can either be fully or partly owned. depending on its ownership shares.
It should be noted that cash basis is being used in the recognition of inform in the initial value method and that when an investment in a subsidiary is to be accounted for, such investments will remain at the initial value.
Regarding the scenario in the question, when the initial value method is used by the parent company, the cost of goods sthst are sold and the retained earnings of the subsidiary would decrease.