Answer:
$20.692.24 must be invested
Explanation:
The amount to be invested today is the present value of $1,000,000 discounted at 9%.
PV = FV× (1+r)^-n
PV - present value , FV- Future value , r- rate of return, n- number of years
FV =1,000,000, r- 9%, n- 45
PV = 1,000,000 × 1.09^(-45)
PV = 20,692.24
Present Value = $20.692.24
$20.692.24 must be invested out of the $32,000
homeworklib You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 6%, and the average return on the market portfolio is 19%. The average returns, residual standard deviations, and betas for the three funds are given below. Average Return Residual Standard Deviation Beta Fund A 20 % 4.00 % 0.8 Fund B 21 % 1.25 % 1.0 Fund C 23 % 1.20 % 1.2 The fund with the highest information ratio measure is Multiple Choice Funds A and C (tied for highest). Funds A and B (tied for highest). Fund A. Fund C. Fund B.
Answer:
The fund with the highest ratio is Fund B.
Explanation:
Risk-free return = 6%
The average return on the market portfolio = 19%
The ratio equation formula is as follows:
FUND A: Return on fund - Risk free rate - Beta (Return on market portfolio - Risk free rate)/Standard deviation of fund
FUND A : 20 - 6 - 0.8(19 - 6 ) / 4 = 0.9
FUND B : 21 - 6 - 1(13)/1.25 = 1.6
FUND C : 23 -6 - 1.2 (13 ) /1.2 = 1.167
Therefore, the fund with the highest ratio is Fund B.
In business, it is customary to praise individualistic competition and denigrate collective bargaining in all forms. However, in the Hanseatic League, we clearly see an example of merchants working together for mutual success over a period of three hundred years! What lessons are we to learn from this? Are there prospects for more merchant leagues in an increasingly globalized economy? Outline your thoughts on these questions in ten sentences minimum, and post them in the discussion. Then select two fellow students posts for peer review and critique their comments without the use of flattery.
Answer:
What lessons are we to learn from this?
The Hanseatic league, just like the Northern Italian City-States of the Late Middle Ages, are early examples of capitalism: they represent proto-capitalism.
In the cities that belonged to the Hanseatic League, the work of merchants was promoted, and capital accumulation and the profit motive began to develop. However, this does not meant that cooperation was out of place. The merchants cooperated voluntarily because they could get more working in association.
Are there prospects for more merchant leagues in an increasingly globalized economy?
There will always be the prospect for more merchant leagues, because people naturally cooperate if it is in the benefit of all the parties.
In fact, trade unions and economic unions could be seen as a form of merchant league, that are created by states instead of individual merchants.
Using the table below, select "X" in the column that corresponds to the type of activity level referred to in each scenario.Unit Batch Product Customer Organizationala. Setting up a machine for a production run of 500 units b. Conducting a seminar for local doctors on the benefits of a new drug c. Embossing a company logo on every product made d. Seating a party of 11 at a restaurant e. Providing technical support for two years following a sale f. Managing a corporation's accounting department g. Attaching a price tag to each product h. Issuing an invoice i. Developing a corporate advertising campaign j. Recalling a defective product
Answer: Please refer to Explanation
Explanation:
There are different activities involved in making a final product by a company to get a good ready.
These Activities are divided into the levels, Unit, Batch, Product, Customer and Organizational.
Unit Level Activities are activities that are performed on the individual units. If you see an activity that focuses on a singular unit at a time, it is a Unit Level Activity.
Batch Level Activity. When units are put together in a set, they form a batch. Batch Level Activity therefore refers to those activities on a set of units at a particular time.
Product Level Activity. When taling about activities related to the entire product this is where they fall under. The entire product refers to what is being produced exactly. For instance, out of 300 units of Ford Mustangs produced, the product is the Ford Mustang. Recalling all Ford Mustangs is a Product Level Activity.
Customer Level Activities are those related to what the company does regarding those who buy it's products. As long as the activity has to do with a customer, it is a Customer Level Activity.
Finally, an Organizational Activity refers to an activity that encapsulates or affects the organization as a whole.
Classifying the above therefore,
a. production run of 500 units. BATCH LEVEL ACTIVITY as it involves multiple units.
b. Conducting a seminar for local doctors on the benefits of a new drug. PRODUCT LEVEL ACTIVITY as it speaks to the entire product.
c. Embossing a company logo on every product made. UNIT LEVEL ACTIVITY as it speaks of putting a logo on EACH UNIT.
d. Seating a party of 11 at a restaurant. BATCH LEVEL because in this case each person is a unit and putting them together creates a batch.
e. Providing technical support for two years following a sale. CUSTOMER LEVEL ACTIVITY as it involves services related to the customer.
f. Managing a corporation's accounting department. ORGANIZATIONAL LEVEL ACTIVITY as it speaks to the management of an organization wide system.
g. Attaching a price tag to each product. UNIT LEVEL ACTIVITY as it speaks to an activity related to a single unit.
h. Issuing an invoice. CUSTOMER LEVEL ACTIVITY as it deals with issuing invoices which is done to customers who have bought a good.
i. Developing a corporate advertising campaign. ORGANIZATIONAL LEVEL ACTIVITY because it is at a Corporate Level thereby affecting the entire organization. Had it been a specific product advertisement it would be a Product Level Activity.
j. Recalling a defective product. PRODUCT LEVEL ACTIVITY as it concerns the entire product in question.
A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On release, it has a price of $104 per $100 of face value. What is the yield to maturity of this bond when it is released? A) 0.60% B) 1.92% C) 4.00% D) 5.47%
Answer:
B) 1.92%
Explanation:
For computing the yield to maturity we need to apply the RATE formula i.e to be shown in the attachment
Given that,
Present value = $104
Future value or Face value = $100
PMT = $100 × 6% = $6
NPER = 1
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
After applying the above formula, the yield to maturity is 1.92%
Tom, age 13, is claimed as a dependent by his parents. Tom has unearned income of $3,400 and $300 of income from mowing lawns in the neighborhood. If the first $2,600 of Tom's net unearned income is taxed at 10%, what is Tom’s 2019 income tax liability?
Answer:
$260
Explanation:
First, we need to calculate the Taxable income as follow
Taxable income = income unearned + Income earned - Standard deduction Taxable income = $3400 + $300 - $1100
Taxable income = $2600
Now Multiply the tax rate to the taxable income to calculate the tax liability.
Tax Liability = Taxable income x Tax Rate
Tax Liability = Taxable $2,600 x 10% = $260
3) Calculate two individuals total amount of retirement assets after 30 years of investing using the following two examples to display and articulate the effect of compounded fees on two different individuals' retirement accounts with the exact same mutual funds. The two mutual funds have the same before expense rate of return, but one mutual fund charges a higher expense ratio than the other. Describe what effect fees have on the two different individuals' retirement assets: (a) Yearly Savings: $15,000, Inflation Rate: 2%, Rate of Return:(8.15%-.15%=8%), Expense Ratio of Mutual Fund: .15%, Periods: 30 years (b) Yearly Savings: $15,000, Inflation Rate: 2%, Rate of Return:(8.15%-.65%=7.50%) (It is lower than example (a) due to the increased expense ratio), Expense Ratio of Mutual Fund: .65%, Periods: 30 years
Answer: The answer is given below
Explanation:
Based on the explanations and the figures provided on the question, the solution goes thus:
a. Assuming that the inflation rate is also be the rate of growth in savings amount i.e the income of an individual will grow minimum by inflation amount.
r = 8% = 8/100 = 0.08
g = 2% = 2/100 =0.02
Future value = 15000[(.08)^30 - (1.02)^30)]/0.06
Fv= 2062250
b) similarly for b as expense ratio of mutual fund is said to be higher, we will get:
r=7.5% = 7.5/100 = 0.075
g= 2% = 2/100 = 0.02
fv= 15000[(1.075)^30 - (1.02)^30)]/0.055 Future value = 1892454
we can therefore deduce that due to the increase in expense ratio assets in the 2nd scenario, the value are less by:
= 2062250 - 1892454
= 169,796.
Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Quantity Unit Cost Total Cost Beginning inventory (Jan. 1) 16 $ 10 $ 160 Purchase (Jan. 11) 14 $ 12 168 Purchase (Jan. 20) 23 $ 15 345 Total 53 $ 673 - On January 14, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at January 31. Assuming that Beech Soda uses the LIFO cost flow assumption, the 28 units of this product in inventory at January 31 have a total cost of:
Answer:
$304
Explanation:
LIFO means last in first out. It means that it is assumed that it is the last purchased inventory that is the first to be sold.
There was a total of 53 inventories before any sales. The 25 units sold would be sold from the last purchased inventories. That is the inventory purchased on Jan 20 and 11.
The remaining inventory =
12 × $12 = $144
16 × $10 = $160
Total = $304
I hope my answer helps you
Prepare Lipman Auto Parts’ cash budget for January and February. How much cash will Lipman Auto Parts borrow in February if collections from customers that month total $13,800.00 instead of $14,800.00?
Answer:
The answer given is for the data given in the question below.
Explanation:
The complete question is :
Lipman Auto Parts, a family-owned auto parts store,began January with $10,300 in cash. Management forecasts that collection from credit customers will be $11,400.00 in January and $14,800 in February. The store is scheduled to receive $5,000.00 in cash on a business note receivable in January. Projected cash payments include inventory purchases($13,000 in January and $13,600 in February) and operating expenses ($2,700 each month). Lipman Auto Parts' bank requires $10,000 minimum balance in the store's checking account. At the end of any month when the account balance dips below $10,000, the bank automatically extends credit to the store in multiples of $1,000. Lipman Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,000, plus 4 percent interest on the entire unpaid principal. The first payment occurs three months after the loan.
Prepare Lipman Auto Parts' cash budget for January and February
How much cash will Lipman auto Pars borrow in February if collections form customer that month total $13,800 instated of $14,800?
Answer would be like this :
Lipman Auto Parts
Cash Budget
January - February
January February Beginning cash balance $ 10,300 $ 41,000
Cash collections from customers $ 11,400 $ 14,800
Collection of note receivable $ 5,000 $ -
Total cash available $ 56,700 $ 55,800
Cash payments:
Purchases of inventory $ 13,000 $ 13,600
Operating expenses $ 2,700 $ 2,700
Total cash payments $ 15,700 $ 16,300
Ending Cash Balance Before Financing $ 41,000 39,500
Less Required Cash Balance 10,000 10,000
Cash Excess $ 31,000 29500
Financing of Cash Deficiency ------- -------
Ending Cash Balance $ 41,000 39500
Lipman Auto Parts
Cash Budget
January - February
January February Beginning cash balance $ 10,300 $ 41,000
Cash collections from customers $ 11,400 $ 13,800
Collection of note receivable $ 5,000 $ -
Total cash available $ 56,700 $ 54,800
Cash payments:
Purchases of inventory $ 13,000 $ 13,600
Operating expenses $ 2,700 $ 2,700
Total cash payments $ 15,700 $ 16,300
Ending Cash Balance Before Financing $ 41,000 38,500
Less Required Cash Balance 10,000 10,000
Cash Excess $ 31,000 28500
Financing of Cash Deficiency ------- -------
Ending Cash Balance $ 41,000 38500
Judith Thompson, the manager of the student center cafeteria, has added pizza to the menu. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. Judith anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks a year, 5 days a week. The ordering cost is $15 and the holding cost is $0.40 per pizza per year. The pizza vendor has a 4-day lead-time and Judith wants to maintain 1 pizza for safety stock. What is the optimal reorder point
Answer:
9 pizzas
Explanation:
Given that:
A pizza is ordered frozen from a local pizza establishment and baked at the cafeteria.
Judith anticipates a weekly demand of 10 pizzas.
Opening weeks in a year = 45 weeks
Opening days in a week = 5 days
Daily demand = 10/5 = 2
Ordering cost = $15
Holding cost = $0.40 /pizza/year
Lead time = 4 days
Safety stock = 1 pizza
The objective is to determine the optimal reorder point.
The optimal reorder point = (daily demand × lead time) + safety stock
The optimal reorder point =( 2 × 4 ) + 1
The optimal reorder point = 8 + 1
The optimal reorder point = 9 pizzas
Rudo asked Harun to detail his brand-new sports car by painting flames on the side of the vehicle. After the parties signed a contract and after Harun had already started to paint, Rudo decided that he also wanted Harun to install a new stereo system in the car at the same cost and modified the contract likewise. Harun painted the flames on the side of the vehicle as originally agreed but did not install a new stereo. Rudo refuses to pay the originally agreed upon price. If Harun sues Rudo for the contract price, he will win because:_______
a. Rudo's act was unenforceable for lack of consideration
b. Rudo's promise was enforceable.
c. The old contract automaticallt got cancelled with the addition of a new condition.
d. Harun's act was not a preexisting duty and hence of no legal value.
Answer:
a. Rudo's act was unenforceable for lack of consideration
Explanation:
In this scenario where Rudo changed the contract after Harun had commenced painting, his new contract is not enforceable because it lacks consideration.
Consideration is defined as the action in a contract where the parties involved agree to carry out their side of the contract.
When the parties do not agree to the terms of the contract then the contract is not legally binding on the parties.
Rudo made the first contract which Harun agreed to. However Harun did not agree to the terms of the modified contract, so this makes it unenforceable
Answer: Rudo's act was unenforceable for lack of consideration
Explanation:
Any contract that must be enforceable by law needs an appropriate consideration. Based on the above scenario on the question, when there was a modification that was made in the contract, we were informed that Rudo told Harun to detail his brand-new car by painting flames on side of the vehicle and after the contract was signed by the parties, he wanted to modify the contract by telling Harun to install new stereo system in the car.
Rudo did not promise for modifications from the beginning of the contract, therefore there should not be any change in the existing contract. If Hrun Sue's Rado based on the scenario, he will win due to the fact that Rudo's act was unenforceable for a lack of consideration.
An investor is considering buying a restaurant that has been in operation for a number of years. The restaurant has a highly regarded chef and many long-term kitchen and wait staff who work together smoothly to make innovative new dishes. It has a reputation for dishes of consistently high quality and an appealing dining atmosphere. What should the investor consider when making a decision?
Answer:
The investor will find that the restaurant's financial statements undervalue the true value of its resources.
Explanation:
It is said here that the investor will find the financial statements undervalue the true value of its resources. In as much as the quality of the chefs, staffs and standard of the restaurant, all were put into consideration.
It is also known that financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.
Financial statements are written records that convey the business activities and the financial performance of a company.
The balance sheet provides an overview of assets, liabilities, and stockholders' equity as a snapshot in time.
Answer: The investor will find that the restaurant's financial statements will undervalue the true value of its resources.
Explanation:
A Financial statements is a formal record of all financial activities that shows the position of a business, person, or other entity’s. Important financial information are presented in a structured manner and in a away it can be easily understood. This financial statement helps one value the true worth of a business, individual or entity’s.
Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $2,300; Cost of Goods Sold, $22,140; Income Tax Expense, $3,040; Interest Expense, $1,500; Interest Revenue, $180; General Expenses, $2,500; Net Sales Revenue, $37,105; and Delivery (freight-out) Expense, $290.Prepare a multi-step income statement for distribution to external financial statement users.
Answer:
The net income is $5,515
Explanation:
Kindly check the attached picture for the Income statement table
The agency problem refers to the possible conflicts of interest between:_______.
a. self-interested managers as principals and shareholders of the firm who are the agents.
b. altruistic managers as agents and shareholders of the firm who are the principals.
c. self-interested managers as agents and shareholders of the firm who are the principals.
d. dutiful managers as principals and shareholders of the firm who are the agents.
Answer: c. self-interested managers as agents and shareholders of the firm who are the principals.
Explanation:
The Agency Problem in Corporate Finance refers to a situation where the Managers who are supposed to be agents to increase the wealth of the Shareholders who are the principles realise and decide to act in their own interest and increase their wealth instead.
It is an age old problem that rears its head up in almost every relationship where a party is to act in the best interest of another. They might simply ask themselves, why not act in our own best interests.
For example, Managers might award contracts to companies that promise to give them some form of compensation for the contract instead of companies that would have done the job in question at cheaper rates and with more efficiency and thus brought more Profitability to the firm.
The agency problem is the conflict that can arise between self-interested managers as agents and shareholders of the firm who are the principals.
Agency conflict occur when the shareholders of a firm do not manage the company. Instead, managers are hired to manage the firm. Sometimes, the interest of shareholders and managers are not aligned.
For example, if the remuneration managers receive is tied to the net income of the firm. The manager can undertake projects that would boost net income but not be in the best interest of shareholders.
A similar question was answered here: https://brainly.com/question/10075588
Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 36 comma 000 parts is $ 110 comma 000, which includes fixed costs of $ 50 comma 000 and variable costs of $ 60 comma 000. The company can buy the part from an outside supplier for $ 2 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $ 15 comma 000. If Voltaic outsources, what will be the effect on operating income?
Answer:
The net income will increase by $13,000 is the part is out source.
Explanation:
Giving the following information:
Units= 36,000 parts
Total variable cost= $60,000
Total fixed costs= $50,000
The company can buy the part from an outside supplier for $ 2 per unit and avoid 20% of the fixed costs.
Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $15,000.
We need to calculate the effect on the income of buying the part.
First, we will calculate the current cost:
Production:
Total cost= total variable cost + avoidable fixed cost
Total cost= 60,000 + 10,000= $70,000
Buy:
Total cost= 36,000*2 - 15,000= $57,000
The net income will increase by $13,000 is the part is out source.
Abbott Landscaping purchased a tractor at a cost of $42,000 and sold it three years later for $21,600. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,000 residual value. Tractors are included in the Equipment account.Required:1. Record the sale.2. Assume the tractor was sold for $13,600 instead of $21,600. Record the sale of equipment.
Answer:
Hi
Explanation:
Hi
Answer:
Please need help, to answer this question. thanks
Explanation:
An asset's book value is $21,600, on January 1, Year 6. The assets is being depreciated $300 per month using the straight-line method. Assuming the asset is sold on July 1, year 7 for $14,200, the company should record:
4. Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. Using the values of cash flows and number of periods, the valuation model is adjusted accordingly. Assume that a $1,000,000 par value, semiannual coupon US Treasury note with three years to maturity has a coupon rate of 3%. The yield to maturity (YTM) of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $876,205.93 $744,775.04 $1,051,447.12 $552,009.74 Based on your calculations and understanding of semiannual coupon bonds, complete the following statement: The T-note described in this problem is selling at a .
Answer:
T-note described in this problem is selling at a price of $876,205.93
Explanation:
The price of the bond can be computed using pv formula in excel as stated thus:
=-pv(rate,nper,pmt,fv)
rate is the semiannual yield which is the annual yield of 7.70% divided by 2
nper is the number of coupons payable by the bond over its three years' tenure given that coupon is paid twice a year i.e 3*2=6
pmt is the semiannual coupon payment=$1,000,000*3%*6/12=$15000
fv is the face value of $1,000,000
=-pv(7.70%/2,6,15000,1000000)=$876,205.93
An internal control system consists of all policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies. Evaluate each of the following statements and indicate which are true and which are false regarding the objectives of an internal control system.
1. Separating the responsibility for a transaction between two or more individuals or departments will help prevent someone from creating a fictitious invoice and paying the money to herself or himself.
2. Separation of for assets from the custody over assets will likely increase theft and fraud.
3. The primary objective of internal control procedures is to grow the assets of the business.
4. Separation of recordkeeping for assets from the custody over assets will not prevent collusion between two or more employee to commit fraud.
Answer:
Explanation:
Evaluation of the listed internal control procedure.
1. Yes
Separating the responsibility for a transaction between two or more individuals or department known as segregation of duties will help to prevent creating of fictitious invoice for the benefit of an individual, As the role of on of these individuals is subjected to review and oversight by other people in that line of action, falsified records and actions can easily be discovered.
2.No
Separation of record keeping of assets from the custody over assets will not increase theft and fraud but rather prevent it . As different individuals are in charge of the records and the custody of the assets , it will be hard for theft and fraud of assets to take place unless there is a collusion between the people involved. If the custodian steals an assets , the record keeper can easily detect it , and a record keeper can not steal an asset as it is not in his custody
3. No
Even though the safe keeping of an asset is part of the objectives of internal control procedures , the primary objectives is not to grow assets but to safeguard the entire organization and ensure its economic, effectiveness and efficiency of its operation towards achieving its performance objectives.
4. Yes.
In as much as this is an internal control procedure to prevent fraud and theft , this can still be bypassed through collusion with employees involved to commit and cover up a fraud . While the custodian of assets release the assets , the record keeper adjusts his record to accommodate the theft of assets.
The following data apply to Hill's Hiking Equipment: Value of operations $20,000, Short-term investments $1,000, Debt $6,000, Number of shares 300; The company plans on distributing $50 million by repurchasing stock. What will the intrinsic per share stock price be immediately after the repurchase?
Answer:
$50
Explanation:
Solution
Recall that:
The company plans on giving out $50 million by repurchasing stock hence, number of stock to be purchased = 50/50 = 1 million
The Number of share bought back = 300-1 = 299
Thus
$20,000 + $1,000 - $6000 = $15,000
$15,000 / 300 shares = $50
Before Repurchase After the repurchase
Value of operations 20000 20000
Short-term investments 1000 950
Less : Debt 6000 6000
Intrinsic value of equity 15000 14950
Number of shares 300 299
Intrinsic value per share 50 50
Therefore the intrinsic per share stock price be immediately after the repurchase is $50
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 29,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 118,000. Units completed and transferred out: 147,000. Ending Inventory: 32,000 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $47,000. Costs in beginning Work in Process - Conversion: $52,850. Costs incurred in February - Direct Materials: $320,650. Costs incurred in February - Conversion: $603,150. Calculate the cost per equivalent unit of conversion.
Answer:
Cost per equivalent unit = $4.23 per unit
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Cost per equivalent unit = cost / total equivalent units
To determine the cost per equivalent unit of conversion cost , we follow the steps below
Step 1
Determine the total equivalent units
Item Equivalent units
Transferred out 100%× 147,000 = 147,000
closing inventory 25% × 32,000 = 8000
Total Equivalent unit 155,000
Step 2: cost per equivalent units
Cost per equivalent units= Total conversion cost/Equivalent units
= ( $52,850+ $603,150)/155,000 units= $4.23 per unit
Cost per equivalent unit = $4.23 per unit
=
Identify the top five recipient countries of FDI from the US. Then Identify top 10 MNEs headquartered in the US that have made outbound FDI elsewhere. Why do theses countries attract FDI from the US? Explain using the resource and the institution based views.
Answer:
The top five recipient countries of FDI from the US are:
The Netherlands - 866.33 billion dollarsUnited Kingdom - 757.78 billion dollarsLuxembourg - 713.83 billion dollarsIreland - 442.17 billion dollarsCanada - 401.87 billion dollarsThose countries attract FDI from the US either because of low taxes, including low corporate taxes (The Netherlands, Luxembourg, Ireland), or for very close relationships at all levels: cultural, commercial, geographical, and so on (Canada, and the United Kingdom).
From a resource perspective, only Canada is particularly resource-rich, it has large quantities of natural gas, oil, and metals.
The other four countries are not resource-rich, instead, they have institutions that protect property rights, that promote investment, and that do not charge very high taxes.
A buyer wants to purchase a home for $60,000. The lender appraises the home for $58,000 and offers to finance it with an 80% loan-to-value loan, charging a loan origination fee of 1.5 points. How much will the buyer's loan origination fee be?
Answer:
Loan origination fee = $696
Explanation:
Given:
Home value = $58,000
Loan-to-value loan = 80%
Loan origination fee = 1.5 points = 1.5%
Find:
Loan origination fee = ?
Computation:
Total loan amount = Home value × Loan-to-value loan
Total loan amount = $58,000 × 80%
Total loan amount = $46,400
Loan origination fee = Total loan amount × 1.5%
Loan origination fee = $46,400 × 1.5%
Loan origination fee = $696
Which of the following assertions is true?
A) Agency costs do not involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value and do not involve costs that are incurred by shareholders to make sure that managers pursue shareholder value.
B) Agency costs do not involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value, but do involve costs that are incurred by shareholders to make sure that managers pursue shareholder value.
C) Agency costs involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value, but not costs that are incurred by shareholders to make sure that managers pursue shareholder value.
D) Agency costs involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value and costs that are incurred by shareholders to make sure that managers pursue shareholder value.
Answer:
D) Agency costs involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value and costs that are incurred by shareholders to make sure that managers pursue shareholder value.
Explanation:
Due to the fact that most public companies are not managed by owners but by managers, agency cost arises.
Agency cost arises when the manager pursues her own interest to the detriment of the owners.
In order to mitigate against agency costs , owners put certain mechanisms in place to limit these costs. Some of these mechanisms include increased monitoring and employment contracts
I hope my answer helps you
The 2021 income statement of Adrian Express reports sales of $19.310.000. cost of goods sold of $12,250,000, and net income of $1,700,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2e2e Assets Current assets: Cash Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity $ 700,000 1,600,000 2,000,000 4,900,000 $9, 200,000 $ 860,000 1,100,000 1,500,000 4,340,000 $7,800, eae $1,920,000 2,400,000 1.900.000 2,980,000 $9,200,000 $1,760,000 2,500,000 1.900,800 1.640.ece $7,8ee, eee Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 25% 15% 2.5tines 35%
Required:
Calculate the five profitability ratios listed above for Adrian Express
(Round your answers to 1 decimal place.) Profitability Ratios Gross profit ratio Return on assets Profit margin Asset turnover Return on equity
Answer:
The Gross profit ratio is 36.6%
The Return on assets is 20%
The Profit margin is 8.8%
The Asset turnover would be 2.3 times
The Return on equity is 40.4%
Explanation:
The calculation of the five profitability ratios listed would be a follows:
Gross profit = Sales - Cost of goods sold
= $19,310,000 - $12,250,000
= $7,060,000
Gross profit ratio = Gross profit / Sales * 100
= $7,060,000 / $19,310,000 * 100
= 36.6%
The Gross profit ratio is 36.6%
Return on assets = Net income / Average total assets * 100
= $1,700,000 / [($9,200,000+$7,800,000)/2] * 100
= 20%
The Return on assets would be 20%
Profit margin = Net profit / Sales * 100
= $1,700,000 / $19,310,000 * 100
= 8.8%
The Profit margin would be 8.8%
Asset turnover = Sales / Average total assets
= $19,310,000 / [($9,200,000+$7,800,000)/2]
= 2.3 times
The Asset turnover would be 2.3 times
Return on equity = Net income / Average total equity
= $1,700,000 / [($1,900,000+$2,980,000+$1,900,000+$1,640,000)/2]
= 40.4%
The Return on equity would be 40.4%
In a bilateral monopoly with one buyer and one seller, the monopoly power of the seller and the monopsony power of the buyer tend to: counter-act one another. reinforce one another. favor the buyer. favor the seller.
Answer:
counter-act one another.
Explanation:
As a bilateral monopoly has one buyer and one seller, the buyer wants to pay the lower price possible and the seller wants to charge a high price. So, they have opposite goals and they have to negotiate considering the power each one has and find an agreement in which both win. According to this, the answer is that in a bilateral monopoly with one buyer and one seller, the monopoly power of the seller and the monopsony power of the buyer tend to counter-act one another as their positions are in conflict and they have to find a middle point to get to an agreement.
The other options are not right because their goals are in conflict so they don't support the idea of the other party and both parties have a relative bargaining power and because of that, the monopoly power of the parties does not favor the buyer or the seller.
Atlas Transportation is considering installing temperature logger in all its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $40,000 per year for 5 years how much should the company be willing to spend now if it uses an interest rate of 12% compounded quarterly
Answer:
$144191.05
Explanation:
Solution
Recall that:
The insurance claim reduction is =$40,000
The time = 5 years
The interest rate = 5%
Now,
We find how much the company be willing to spend if it uses an interest rate of 12% compounded quarterly.
The present value is computed as follows:
The Present Value of the saving (PV) = 40000/(1+12%) + 40000/(1+12%)2 +40000/(1+12%)3 +40000/(1+12%)4 +40000/(1+12%)5
= $144191.05
Hence, the maximum amount the company should be freely spend is
= $144191.05
Sheridan Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $146000, the present value of the lease payments discounted at 9%. The first of eight annual lease payments of $22000 due at the beginning of each year of the lease term was received and recorded on July 3, 2021. Sheridan had purchased the equipment for $113000. What amount of interest revenue from the lease should Sheridan report in its 2021 income statement
Answer:
The amount of interest revenue from the lease should Sheridan report in its 2021 income statement is $5,580
Explanation:
According to the given data The first payment will reduce the principle because interest has not started to accrue ,
Therefore= $146,000 - $22,000 = $124,000
The Computation of interest that will be owned for 6 months would be as follows:
Interest revenue for full year = $124,000*9% = $11,160
Therefore, the amount of interest revenue from the lease is = Interest revenue for full year*6/12
amount of interest revenue from the lease = $11,160*6/12 = $5,580 (from july to december)
The amount of interest revenue from the lease should Sheridan report in its 2021 income statement is $5,580
Which of these statements about cycle inventory is BEST? A. Cycle inventory exists to avoid customer service problems. B. Cycle inventory is used to compensate for cycles in supply or demand. C. A change in lead time does not necessarily entail a change in cycle inventory. D. Longer lead times entail more cycle inventory is needed.
Answer:
A. Cycle inventory exists to avoid customer service problems.
Explanation:
Cycle inventory is the part of inventory kept by a supplier, that shows the amount of inventory available to satisfy demand. Cycle inventory allows the supplier to keep track of his available inventory so as to remove the problem of not meeting customers demand, which can led to loss of customers. And also to reduce the problem of over-storage that can lead to additional holding charge.
Ways to address the occurrence of negative net factor income from abroad
Answer: The net factor income can be positive or negative.
Explanation:
The net factor income becomes negative when income obtained by the foreigners or native of abroad from our country is more than the income earned by us while working in abroad. This can be positive when former is less than the later.
The ways to address the negative net factor income are as follows:
1. Availing compensation from employers.
2. Earning on direct investment.
Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 18 Direct labor 23 16 Variable manufacturing overhead 10 8 Traceable fixed manufacturing overhead 19 21 Variable selling expenses 15 11 Common fixed expenses 18 13 Total cost per unit $ 115 $ 87 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 6. Assume that Cane normally produces and sells 93,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line
Answer:
financial disadvantage = ($1,953,000)
Explanation:
Alpha selling price $135 per unit
Beta selling price $95 per unit
raw materials = $6 per pound
production capacity 105,000 of each product
Alpha Beta
Direct materials $30 $18
Direct labor $23 $16
Variable manufacturing overhead $10 $8
Traceable fixed manufacturing overhead $19 $21
Variable selling expenses $15 $11
Common fixed expenses $18 $13
Total cost per unit $115 $87
margin per unit $20 $8
93,000 Betas produced per year:
total revenue $8,835,000
COGS ($5,859,000)
Gross profit $2,976,000
Variable selling expense ($1,023,000)
Fixed common expenses ($1,209,000)
net profit $744,000
if the Beta product line is discontinued:
lost net profits ($744,000)
fixed common expenses ($1,209,000)
financial disadvantage ($1,953,000)
If the company decides to shut down the production of Betas, then it will lose $1,953,000. This includes lost profits generated by the product and unavoidable fixed costs which must be allocated to Alphas.
The following transactions were completed by the company a. The owner invested $19,000 cash in the company in exchange for its common stock. b. The company purchased supplies for $1,500 cash c. The owner invested $12,000 of equipment in the company in exchange for more common stock. d. The company purchased $400 of additional supplies on credit. e. The company purchased land for $11,000 cash Required Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Assets Liabilities+ Accounts Equity CommonD Cash +Supplies + Equipment+ Land Dividends Revenue +Revenue Expenses Payable Stock $19,000+ Bal 19,000 Bal 19,000 + Bal 19,000 + 0 Bal 19,000 + 0
Answer:
ASSETS = LIABILITIES + EQUITY
cash supplies equip. land = acc. payable common stock
19,000 19,000
-1,500 1,500
12,000 12,000
400 400
-11,000 11,000
6,500 1,900 12,000 11,000 = 400 31,000
Explanation:
Dr cash 19,000
Cr common stock 19,000
Dr supplies 1,500
Cr cash 1,500
Dr equipment 12,000
Cr common stock 12,000
Dr supplies 400
Cr accounts payable 400
Dr land 11,000
Cr cash 11,000