Answer:
A.
Explanation:
add on interest loan is more frequently in case of sub prime borrowers.
Determine aggregate expenditures (AE) in this economy when real GDP (Y) is equal to $1,500 billion, $2,000 billion, and $2,500 billion.
When Y = $1,500 billion, AE =
billion.
When Y = $2,000 billion, AE =
billion
When Y = $2.500 billion, AE =
billion.
Answer:
a) When Y = $1,500 billion, AE =$1050 billion
b)When Y = $2,000 billion, AE = $1400 billion
c) When Y = $2.500 billion, AE =$1750 billion
Explanation:
As we know,
Yd = Y- T
Y = national income (or GDP)
T = Tax Revenues = 0.3Y
a) When Y = $1,500 billion, AE = $1,500 -0.3*$1,500 = $1050 billion
b) When Y = $2,000 billion, AE =$2,000 - 0.3*$2,000 = $1400 billion
c) When Y = $2.500 billion, AE = $2.500 - 0.3 * $2.500 = $1750 billion
Assuming the economy to operate in equilibrium, the aggregate expenditure model explains that GDP is equal to the Aggregate expenditure. Therefore, the solutions are:
Y = $1,500 billion, AE = $1,500 billion.Y = $2,000 billion, AE = $2,000 billion.Y = $2,500 billion, AE = $2,500 billion.What is the aggregate expenditure model?The aggregate expenditure model explains the relationship between GDP and planned spending. The model states that:
[tex]\rm GDP = Planned \:spendings[/tex]
Therefore the Aggregate expenditure for the real GPDs is:
Y = $1,500 billion, AE = $1,500 billion.Y = $2,000 billion, AE = $2,000 billion.Y = $2,500 billion, AE = $2,500 billion.Learn more about the aggregate expenditure model here:
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Waterway Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6400000 on March 1, $5250000 on June 1, and $8650000 on December 31. Waterway Industries borrowed $3200000 on January 1 on a 5-year, 11% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 3-year, $6440000 note payable and an 10%, 4-year, $12550000 note payable.
Required:
What are the weighted-average accumulated expenditures?
Answer:
$8,395,833
Explanation:
Calculation to determine What are the weighted-average accumulated expenditures
Weighted-average accumulated expenditures
=($6,400,000 × 10/12) + ($5,250,000 × 7/12) + ($8,650,000 × 0/12)
Weighted-average accumulated expenditures=$5,333,333+$3,062,500+0
Weighted-average accumulated expenditures=$8,395,833
Therefore the weighted-average accumulated expenditures will be $8,395,833
Hewell Co. started 2020 with two assets: Cash of E200,000 (Euros) and Land that originally cost E252,000 when acquired on April 4, 2015. On April 1, 2020, the company rendered services to a customer for E75,000, an amount immediately paid in cash. On October 1, 2020, the company incurred an operating expense of E50,000 that was immediately paid. On October 1, 2020, they also declared and paid a dividend of E100,000 to their parent company. No other transactions occurred during the year, so an average exchange rate is not necessary. Currency exchange rates were as follows:
Exchange Rate Chart
April 4, 2015 §1 = $0.28
January 1, 2018 §1 = $0.29
May 1, 2018 §1 = $0.30
October 1, 2018 §1 = $0.31
December 31, 2018 §1 = $0.35
Assume Boerkian was a foreign subsidiary of a U.S. multinational company and the U.S. dollar was the functional currency of the subsidiary. Prepare a schedule of changes in the net monetary assets of Boerkian for the year 2018 and properly label the resulting gain or loss.
Answer:
Please find the complete question and its solution file in the attachment.
Explanation:
Timing of shifts in Boerkian's net money assets
Date Particulars Stickles Exchange Rate Dollars
1-Jan Assets [tex](26000 + 72000)[/tex] [tex]98000 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.29\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 28420[/tex]
1-May Service Revenue [tex]36000\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.30\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 10800[/tex]
1-Oct Operating Expenses [tex](22000) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.31\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 6820[/tex]
31-Dec Net Assets [tex]112000\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 32400[/tex]
31-Dec Net Assets at Current Exchange Rate on Dec.31 [tex]112000\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.35\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 39200[/tex]
31-Dec Gain[tex](\$39200 - \$32400)[/tex] [tex]6800[/tex]
The profit is $6,800 for the subsidiary. The exchange rate is higher on 31 December.
When presenting evidence in a Small Claims Court, it is advisable to avoid using pictures or graphics.
T OR F
The statement "When presenting evidence in a Small Claims Court, it is advisable to avoid using pictures or graphics" is true.
What is graphics?Graphics are visual pictures or designs on a material, such as a wall, canvas, screen, paper, or stone, that inform, explain, or entertain.
In modern use, it refers to a graphical representation of data, such as in design and manufacturing, typesetting and the visual arts, and instructional and recreational software. Computer graphics refers to images created by a computer.
Small claims courts are a simple, informal, and low-cost method for settling matters with claims of $7,000 or less.
It is correct that "when presenting evidence in a Small Claims Court, it is best to avoid introducing photographs or graphics." Therefore, it can be concluded that the above statement is true.
Learn more about the graphics here:
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Shamrock, Inc. issues a $660,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $107,412. Prepare the entry to record the mortgage loan on December 31, 2022, and the first installment payment on December 31, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer: See explanation
Explanation:
The entry to record the mortgage loan on December 31, 2022 will be:
Debit Cash Account $660,000
Credit 10% Mortgage loan payable $660,000
The entry to record the first installment payment on December 31, 2023 will be:
Debit 10% Mortgage loan payable = $41412
Debit Interest Expenses $600,000 × 10% = $60,000
Credit Cash $107412
Bonita, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.
Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity
Designing $452,795 11,900 designer hours
Sizing and cutting 4,231,150 157,000 machine hours
Stitching and trimming 1,501,000 79,000 labor hours
Wrapping and packing 327,050 31,000 finished units
Required:
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools.
Answer:
Results are below.
Explanation:
To calculate the activities rates, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Designing= 452,795 / 11,900= $38.05 per designer hour
Sizing and cutting= 4,231,150 / 157,000= $36.95 per machine hour
Stitching and trimming= 1,501,000 / 79,000= $19 per labor hour
Wrapping and packing= 327,050 / 31,000= $10.55 per finished unit
Well-managed companies set aside money to pay for emergencies that inevitably arise in the course of doing business. A commercial solid-waste recycling and disposal company in Mexico City puts 0.5% of its after-tax income into such an account. (a) How much will the company have after 7 years if after-tax income averages $15.2 million and inflation and market interest rates are 5% per year and 9% per year, respectively
Answer:
$699,200
Explanation:
According to the scenario, computation of the given data are as follows,
After tax income = $15,200,000
Amount in account = 0.5% × $15,200,000 = $76,000
Time period = 7 years
inflation = 5%
Interest rate = 9%
So, Total amount after 7 years = $76,000 × (F/A, 9%, 7)
= $76,000 ×[ [tex]((1+.09)^{7}-1 )[/tex] ÷ .09]
= $76,000 × [.82803912082 ÷ .09]
= $76,000 × 9.2
= $699,200
Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:
Current Year Prior Year
Balance sheet at December 31
Cash $66,550 $65,500
Accounts receivable 18,150 24,750
Merchandise inventory 24,750 19,200
Property and equipment 212,250 152,600
Less Accumulated depreciation (61,500) (47,050)
$260,200 $215,000
Accounts payable $11,800 $21,900
Wages payable 4,500 5,100
Note payable, long-term 62,300 74,400
Contributed capital 102,000 67,000
Retained earnings 79,600 46,600
$260,200 $215,000
Income statement for current year
Sales $206,000
Cost of goods sold 103,000
Depredation expense 14,450
Other expenses 44,100
Net income $44,450
Additional Data:
a. Bought equipment for cash $59 650.
b. Paid $12,100 on the long-term note payable.
c. Issued new shares of stock for $35,000 cash.
d. Dividends of $11,450 were declared and paid.
e. Other expenses all relate to wages.
f. Accounts payable includes only inventory purchases made on credit.
Required:
Prepare the statement of cash flows using the indirect method for the year ended December 31, current year.
Answer and Explanation:
The preparation of the cash flow statement using the indirect method is as follows:
Cash flow from operating activities
Net income $44,450
Add: depreciation expense $14,450
Add: decrease in account receivable ($18,150 - $24,750) $6,600
Less: Increase in merchandise inventory ($24,750 - $19,200) $5,550
LesS: decrease in accounts payable ($11,800 - $21,900) $10,100
Less Decrease in wages payable ($4,500 - $5,100) -$600
Net cash provided from operating activities $49,250
Cash flow from investing activities
Equipment purchased -$59,650
Cash flow used by investing activities -$59,650
Cash flow from financing activities
Cash payment made for long term note payable -$12,100
Issuance of the new shares $35,000
Dividend paid -$11,450
Cash flow from financing activities $11,450
Net increase in cash $1,050
Add: opening cash balance $65,500
Closing cash balance $66,550
Rabbit Foot Motors has been approached by a new customer with an offer to purchase 5,000 units of its hands-free, Wi-Fi-enabled automotive model—the SMAK—at a price of $18,000 per automobile. Rabbit Foot’s other sales would not be affected by this new customer offer. Rabbit Foot normally produces 100,000 units of its SMAK model per year but only plans to produce and sell 90,000 in the coming year. The normal sales price is $35,000 per SMAK. Unit cost information for the normal level of activity is as follows:
Fixed overhead will not be affected by whether or not the special order is accepted.
1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)?
a. Special order price, direct materials, direct labor, and variable overhead.
b. Special order price, direct materials, direct labor, variable overhead, and fixed overhead
c. Normal price, direct materials, direct labor, and variable overhead.
d. Normal price, direct materials, direct labor, variable overhead, and fixed overhead.
2. By how much will operating income increase or decrease if the order is accepted?
a. increase by $_______
b. decrease by $_________
Answer: 1. Special order price, direct materials, direct labor, and variable overhead.
2. Increases by $10,000,000
Explanation:
1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)
These include special order price, direct materials, direct labor, and variable overhead.
2. By how much will operating income increase or decrease if the order is accepted?
This will be:
= Units × (special order price-variable costs)
= 5000 × ($18000 - $10000 - $2000 - $4000)
= 5000 × $2000
=$10,000,000
Therefore, it increases by $10,000,000
Ralph, knowing that his son, Ed, desires to purchase a tract of land, promises to give him the $25,000 he needs for the purchase. Ed, relying on this promise, buys an option on the tract of land. Now Ralph wants to rescind his promise to Ed. Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build, and will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
Answer:
(a) Yes, Judy will be required to give her daughter, Liza, the tract of land on which she has started to build. Therefore, Judy cannot rescind his promise to Liza.
(b) No, Ralph will NOT be required to give his son, Ed $25,000 to purchase a tract of land. Therefore, Ralph can rescind his promise.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
(a) Judy orally promises her daughter, Liza, that she will give her a tract of land for her home. Liza, as intended by Judy, gives up her homestead and takes possession of the land. Liza lives there for six months and starts construction of a home. Now Judy wants to rescind his promise to Liza.
(b) Ralph, knowing that his son, Ed, desires to purchase a tract of land, promises to give him the $25,000 he needs for the purchase. Ed, relying on this promise, buys an option on the tract of land. Now Ralph wants to rescind his promise to Ed.
Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build, and will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
Explanation of the answers is now provided as follows:
Each of the two cases will be decided based on the principle promissory estoppel.
Promissory estoppel refers to the legal principle that states that despite that there us formal consideration attached to a promise, it is still enforceable by law if the promise from the promisor makes the promisee to rely on the promise to his subsequent detriment.
(a) Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build?
Yes, Judy will be required to give her daughter, Liza, the tract of land on which she has started to build.
The is because Liza has relied on the promise from Judy to her subsequent detriment by giving up her up her homestead and already starts construction of a home. Since the Judy promise from Judy induces the action of Liza that is reasonably expected by Judy, he cannot rescind his promise to Liza.
(b) Will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
No, Ralph will NOT be required to give his son, Ed $25,000 to purchase a tract of land.
This is because there is Ed has not taken any definite and substantial action to justify that he has relied on the promise from Ralph to his subsequent detriment. It may not be possible to construe the purchase of an option on the tract of land by Ed as a definite and substantial action. Therefore, Ralph can rescind his promise.
Can I use MemberPress to create and sell online courses?
Answer:Absolutely! the MemberPress Courses Add-on is built right in and is included as part of MemberPress. No separate download is required. And the 100% visual builder is super simple to use
https://memberpress.com/myohoguy/home
Explanation:
I have been using this for a while now so you can easily create and sell online courses
Answer:
Yes you can do this on Memberpress because you can offer a lot of different topics and sell online courses using this platform
Explanation:
Benny is 57 years old and is employed by the state as a school bus driver.He has an exemplary record,with no accidents in the past 27 years.Tom,aged 31,replaces Benny.Benny intends to file a discrimination claim under the Age Discrimination in Employment Act (ADEA)with the Equal Employment Opportunity Commission.If Benny lives in a state that has not waived sovereign immunity,which of the following statements is most likely to be true?
A) Benny has a valid claim and can sue the state because he can establish all of the elements of a prima facie case.
B) Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
C) Benny is a state employee and must file his claim pursuant to the Older Workers' Benefit Protection Act.
D) Benny does not have a claim for age discrimination under the ADEA as he was replaced by an employee who is older than 30.
Answer: B. Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Explanation:
Based on the information given in the question, since Benny lives in a state that has not waived sovereign immunity, thus simply means that Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Eben though the Age Discrimination in the Employment Act protects workers that are 40 years and above and Benny is 57 years, it should be noted that in the states whereby sovereign immunity hasn't been waived, the state employees cannot due their employers as they're barred from doing so.
Therefore, the correct option is B.
Time Warner Inc. is a leading media and entertainment company with businesses in television networks, filmed entertainment, and publishing. The company's recent annual report contained the following information (dollars in millions):
Net loss $(13,402 )
Depreciation, amortization, and impairments 34,790
Decrease in receivables 1,245
Increase in inventories 5,766
Decrease in accounts payable 445
Additions to equipment 4,377
Required:
a. Based on this information, compute cash flow from operating activities using the indirect method.
b. What were the major reasons that Time Warner was able to report a net loss but positive cash flow from operations? Why are the reasons for the difference between cash flow from operations and net income important to financial analysts?
Answer and Explanation:
a. The cash flow from operating activities using the indirect method is
Net loss $(13,402 )
Add: Depreciation, amortization, and impairments $34,790
Add: Decrease in receivables $1,245
Less: Increase in inventories -$5,766
Less: Decrease in accounts payable -$445
Net cash flow from operating activities $16,442
b. The reasons for net loss but positive cash flow from operations are
Change in current assets, liabilities, depreciation
ANd, the reasons for having a difference is that the operating activities records the cash payment & cash receipt related to operating activities and the rest of things would be ignored
A company reports the following: Sales $3,150,000 Average accounts receivable (net) 210,000 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover fill in the blank 1 b. Number of days' sales in receivables
Answer:
a. Account Receivables turnover = Sales / Average Account Receivables
Account Receivables turnover = $3,150,000 / $210,000
Account Receivables turnover = 15
b. Number of days sales in receivables = 365 / Account Receivables turnover
Number of days sales in receivables = 365 days / 15
Number of days sales in receivables = 24.33 days
A developing economy requires 1,000 hours of work to produce a television set and 10 hours of work to produce a bushel of corn. This economy has available a total of 1,000,000 hours of work per day.
Answer:
so what's your question
Are female expatriates different?.
Answer:
Explanation: Selmer and Leung (2003c) found that female expatriates have the same general adjustment as male expatriates, but with higher levels of work adjustment and better interaction adjustment. A replication study by Haslberger (2010) confirms that the adjustment patterns of male and female expatriates are different.
Answer:
yes the patterns of male and female expatriates are different
Wesley, who is single, listed his personal residence with a real estate agent on March 3 of the current year at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7. The closing statement showed the following disbursements:
Real estate agent's commission $21,780
Appraisal fee 600
Exterminator's certificate 300
Recording fees 800
Mortgage to First Bank 305,000
Cash to seller 34,520
Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2017, Wesley purchases another residence for $325,000.
a. Wesley's recognized gain on the sale is __________
b. Wesley's adjusted basis for the new residence is ___________
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is _____________, and his adjusted basis for the new residence is __________
Answer:
a. Wesley's recognized gain on the sale is $0.
b. Wesley's adjusted basis for the new residence is $325,000
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is $326,520, and his adjusted basis for the new residence is $325,000.
Explanation:
Wesley's actual gain = $363,000 - $21,780 - $600 - $300 - $800 - $200,000 = $139,520, but it can all be excluded using section 121.
If the selling price is $800,000;
Wesley's actual gain = $800,000 - $21,780 - $600 - $300 - $800 - $200,000 = $576,520, but he can exclude $250,000, so his recognized gain = $326,520
The excess return is computed by ________ the average return for the investment. Group of answer choices subtracting the inflation rate from adding the inflation rate to subtracting the average return on the U.S. Treasury bill from adding the average return on the U.S. Treasury bill to subtracting the average return on long-term government bonds from
Answer:
The answer is "subtracting the average return on the U.S. Treasury bill from".
Explanation:
By subtracting the average annual return on the US Treasury bill form of the investment's average return, that excess return is calculated, when the risk premium is another term for excess return. After subtracting the risk-free return from its investment's annualized value, the risk premium is calculated its avg treasury bond investment is a risk-free portfolio.
For 126 consecutive days, a process engineer has measured the temperature of champagne bottles as they are made ready for serving. Each day, she took a sample of 8 bottles. The average across all 1,008 bottles (126 days, 8 bottles per day) was 58 degrees Fahrenheit. The standard deviation across all bottles was 1.5 degree.
When constructing an X-bar chart, what would be the center line?
Answer:
58 degrees fahrenheit
Explanation:
the centerline will be 58 degrees fahrenheit
the upper control limit = 58 degrees + (1.099 x 1.5) = 59.6485 degrees fahrenheit
the lower control limit = 58 degrees - (1.099 x 1.5) = 56.3515 degrees fahrenheit
the A₃ control value for n = 8 is 1.099
Use the drop-down menu to select the qualification best demonstrated in each example. Virgil is on time every day to his job as a Packaging Machine Operator. Lily analyzes a product's supply chain to identify ways to make it more efficient. Chase manages shipping schedules so products are sent on time. Zaida helps another worker get products ready for shipping.
Answer:
Dependability, critical-thinking skills, organizational skills, and teamwork.
Explanation:
I got it right.
Answer:
Noting here you answer is UP there ↑↑↑↑
Explanation:
Burcham Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,000. Compute the company's book equivalent of taxable income. - Use this number to compute the company's total income tax provision or benefit, assuming a tax rate of 34%.
Answer: See explanation
Explanation:
Pre-tax book income = $600,000
Less: Tax exempt interest = $300,000
Book equivalent of taxable income = $600,000 - $300,000 = $300,000
The company's total income tax provision or benefit, assuming a tax rate of 34% will be:
= 34% × $300,000
= 0.34 × $300,000
= $102,000
Suppose you trade dollars and euros for a bank that has branches in Los Angeles and Frankfurt. You can electronically transfer the funds between the two branch locations at no cost, and trading commissions are negligible. The current dollar-per-euro exchange rate in Los Angeles is E$/EURLA=1.5653 , while in Frankfurt, it is E$/EURFR=1.586.
You can make a profit for the bank if you buy euros in _______ and sell them in _________.
Answer:
Explanation:
Profit will be made by you for the bank if you buy the Euros in Los Angeles, and sell the Euros to customers in Frankfurt...
Buying in Los Angeles comes at a price of $1 = €1.5653, then going ahead to sell in Frankfurt means you get to sell it at a rate of $1 = €1.586
Although this is a very tiny difference, of 0.0207. The reality is that when you're doing a lot of tradings that involves currency, you tend to see the profit. If for example, a total of $1 million is traded, then the profit would be $20700, which we all can attest to the fact that it's a lot of money.
Acort Industries owns assets that will have a 75% probability of having a market value of $52 million in one year. There is a 25% chance that the assets will be worth only $22 million. The current risk-free rate is 5%, and Acort's assets have a cost of capital of 10%. a) If Acort is unlevered, what is the current market value of its equity? b) Suppose instead that Acort has debt with a face value of $18 million due in one year. According to MM (i.e. perfect market), what is the value of Acort's equity in this case? c) What is the expected return of Acort's equity without leverage? What is the expected return of Acort's equity with leverage? d) What is the lowest possible realized return of Acort's equity with and without leverage?
Solution :
a). The current market value of the unlevered equity
[tex]$=\frac{75\% \times \$52 \text{ million} + 25\% \times \$22 \text{ million}}{1+10 \%}$[/tex]
= $ 40.45 million
b). The market value of the equity one year from now is
[tex]$=(75\% \times \$52 \text{ million} + 25\% \times \$22 \text{ million})- \$18 \ \text{million}$[/tex]
= $ 44.5 million - $ 18 million
= $ 26.5 million
c). The expected return on the equity without the leverage = 10%
The expected return on the equity with the leverage = [tex]$=10\% +\frac{ \$22 \text{ million}}{\$ 26.5 \text{ million}}$[/tex]
= 0.93 %
d). The lowest possible value of equity without the leverage = $20 million - $ 18 million
= $ 2 million
The lowest return on the equity without the leverage = 10%
The lowest return on the equity with the leverage = 2 % as the equity is eroded.
Bill Smith is evaluating the performance of four large-cap equity portfolios: Funds A, B, C, and D. As part of his analysis, Smith computed the Sharpe ratio and the Treynor's measure for all four funds. Based on his finding, the ranks assigned to the four funds are as follows: Fund Treynor Measure Rank Sharpe Ratio Rank A 1 4 B 2 3 C 3 2 D 4 1 The difference in rankings for Funds A and D is most likely due to:
Question Completion with Options:
a. A lack of diversification in fund A as compared to fund D.
b. Different benchmarks used to evaluate each fund’s performance.
c. A difference in risk premiums.
Answer:
The difference in rankings for Funds A and D is most likely due to:
a. A lack of diversification in fund A as compared to fund D.
Explanation:
a) Data and Calculations:
Fund Treynor Measure Rank Sharpe Ratio Rank
A 1 4
B 2 3
C 3 2
D 4 1
b) The Sharpe ratio and the Treynor measure are two financial performance ratios that measure the risk-adjusted rate of return of an investment. Specifically, the Sharpe ratio helps investors to understand an investment's return profile when compared to its risk profile. On the other hand, the Treynor ratio measures the excess return generated for portfolio risk per unit.
In conclusion, the Sharpe ratio appears to be a better measure with a portfolio that is not properly diversified, while the Treynor ratio works better with a well-diversified portfolio.
Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $315,900. The company estimated that the machine would have a salvage value of $15,900 at the end of its service life. Its life is estimated at 4 years, and its working hours are estimated at 40,000 hours. Year-end is December 31.
Instructions
Compute the depreciation expense under the following methods and complete the depreciation schedules below.
(a) Straight-line depreciation.
(b) Activity method for 2014 and 2015, assuming that machine usage was 15,000 hours for 2014; 11,710 hours for 2015; 12,150 hours for 2016 and 1,140 hours for 2017.
(c) Sum-of-the-years'-digits.
(d) Double-declining-balance.
Answer:
(a) Straight-line depreciation.
depreciation expense per year = ($315,900 - $15,900) / 4 = $75,000
(b) Activity method for 2014 and 2015, assuming that machine usage was 15,000 hours for 2014; 11,710 hours for 2015; 12,150 hours for 2016 and 1,140 hours for 2017.
depreciation expense per unit = $300,000 / 40,000 = $7.50 per unit
depreciation expense 2014 = $7.50 x 15,000 = $112,500
depreciation expense 2015 = $7.50 x 11,710 = $87,825
(c) Sum-of-the-years'-digits.
depreciation expense 2014 = $300,000 x 4/10 = $120,000
depreciation expense 2015 = $300,000 x 3/10 = $90,000
(d) Double-declining-balance.
depreciation expense 2014 = $315,900 x 2 x 1/4 = $157,950
depreciation expense 2015 = $157,950 x 2 x 1/4 = $78,975
depreciation expense 2016 = $78,975 x 2 x 1/4 = $39,487.50
depreciation expense 2017 = $39,487.50 - $15,900 = $23,587.50
Game Theory and Strategic Choices -- End of Chapter Problem You have developed a new computer operating system and are considering whether you should enter the market and compete with Microsoft. Microsoft has the option of offering their operating system for a high price or a low price. Once Microsoft selects a price, you will decide whether you want to enter the market or not enter the market. If Microsoft charges a high price and you enter, Microsoft will earn $30 million and you will earn $10 million. If Microsoft charges a high price and you do not enter, Microsoft will earn $60 million and you will earn $0. If Microsoft charges a low price and you enter, Microsoft will earn $20 million and you will lose $5 million. If Microsoft charges a low price and you do not enter, Microsoft will earn $50 million and you will earn $0. Construct a payoff table and find the Nash equilibrium if you and Microsoft both make your decisions simultaneously.
In a simultaneous move game, Microsoft will and you will:___________
Answer:
Microsoft will choses High price and you will choose to enter the market .
Explanation:
The Nash equilibrium
You
enter Don't enter
Microsoft high price ( $30 , $10 ) ( $60 , $0 )
Microsoft low price ( $20, -$5 ) ( $50, $0 )
From the Nash equilibrium the best time for you to enter the market is when Microsoft Charges a high price
While the best time for Microsoft is when it charges a high price and you do not enter the market
But considering Simultaneous Move game : Microsoft will choses High price and you will choose to enter the market .
Here is the payoff table:
Enter Don't enter
High 30, 10 60,0
Low 20, -5 50, 0
In a simultaneous move game, Microsoft will charge a high price and you will enter the market.
Game theory studies how participants in a competitive market make the best choice for themselves.
Nash equilibrium is the best outcome for participants in a competitive market where no player has an incentive to change their decisions.
If I enter the market, I can either earn $10 million or lose $5 million. If I don't enter the market, I would earn nothing. The best strategy for me is to enter the market because $5 million is greater than 0.
If Microsoft charges a high price, it can either earn $30 million or $60 million. If the firm charges a low price, it would earn either $20 or $50 million. The best strategy is to charge a high price.
A similar question was answered here: https://brainly.com/question/14987529
Cavy Company estimates that the factory overhead for the following year will be $1,745,300. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 56,300 hours. Calculate the predetermined overhead rate to apply factory overhead. Round your answer to the nearest cent. $fill in the blank 1 per machine hour
Answer:
$31
Explanation:
Given the following information,
Total factory overhead costs = $1,745,300
Direct labor hours = 56,300
To calculate the predetermined manufacturing overhead rate, we will make use of the formula below;
Predetermined manufacturing overhead rate = Total estimated overhead costs for the period / Total amount of allocation base
= $1,745,300 / 56,300
= $31
Therefore, the predetermined overhead rate to apply to factory overhead is $31
Due to better internet job searching websites, the job finding rate increases in the recent years. In a survey studying the job finding rate in Jan 2019, 420 out of 10,000 unemployed workers report that they found jobs. In the same period of time, a similar survey studying employment status reports that 29 out of 10,000 employed workers left their jobs. What is the steady unemployment rate
Answer:
6.46%
Explanation:
Job finding rate (F) = Rate at which the unemployed people get job
Job Separation rate (S) = Rate at which the employed people loose their job
Steady state level of unemployment = Ratio of Unemployed people to the Total labor (i.e U/L)
Formulae used to calculate the steady state level of unemployment is: U/L = S / S + F
Where F = (420/10,000)*100 = 4.2%
Where S = (29/10,000)*100 = 0.29%
Steady unemployment rate (U/L) = 0.29 / (0.29 + 4.2)
Steady unemployment rate (U/L) = 0.29 / 4.49
Steady unemployment rate (U/L) = 0.0646
Steady unemployment rate (U/L) = 6.46%
The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookbook Travel Book Classics Total Sales $63,000 $179,000 $60,000 $302,000 Cost of goods sold 37,000 70,000 23,000 130,000 Contribution margin 26,000 109,000 37,000 172,000 Order and delivery processing 19,000 26,000 9,000 54,000 Rent (per sq. foot used) 3,000 3,000 3,000 9,000 Allocated corporate costs 10,000 10,000 10,000 30,000 Corporate profit $ (6,000) $70,000 $15,000 $79,000 If the cookbook product line had been discontinued prior to this year, the company would have reported ________. the same amount of corporate profits less corporate profits greater corporate profits resulting profits cannot be determined
Answer:
the company would have reported loss
A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system yields an incremental after-tax income of $165,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,000. A machine costs $410,000, has a $26,000 salvage value, is expected to last eight years, and will generate an after-tax income of $75,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Answer:
The net present value of each potential investment:
Machine A Machine B
NPV $167,675 $2,267
Explanation:
a) Data and Calculations:
Machine A Machine B
Cost of machine $565,000 $410,000
Incremental after-tax income 165,000 75,000
Salvage value 25,000 26,000
Estimated useful life 6 years 8 years
Required rate of return 10% 10%
Annuity factor 4.355 5.335
PV factor 0.564 0.467
PV of incremental after-tax income $718,575 $400,125
($165,000*4.355) ($75,000*5.335)
PV of salvage value $14,100 $12,142
Total PV of income $732,675 $412,267
NPV $167,675 $2,267
= Total PV of income minus PV of initial investment cost
