Part 4. The value of James' business is $166,667. option A
Part 5. the most favorable trade credit term for James would be "2/10, Net 30. Option A
Part 4: To calculate the value of James' business, we can use the concept of valuation based on the investor's stake. If the investor is giving James $100,000 for a 60 percent stake in the company, we can set up a proportion to find the total value of the business.
Let "x" be the total value of the business. We can write the proportion as:
$100,000 / x = 60% / 100%
Simplifying the proportion, we have:
$100,000 / x = 0.6
Cross-multiplying, we get:
0.6x = $100,000
Dividing both sides by 0.6, we find:
x = $100,000 / 0.6
x = $166,667
Therefore, the value of James' business is $166,667.
The correct answer is A) $166,667.
Part 5: As James markets his bike tires to sporting goods manufacturers, the most favorable trade credit terms for him would be those that provide a shorter payment period and offer an early payment discount. This allows James to receive payment quickly and potentially benefit from a discount.
Among the options provided, the trade credit term that would be most favorable to James is "2/10, Net 30." This means that if the manufacturers pay within 10 days, they can take a 2% discount, and if they don't take the discount, the full payment is due within 30 days.
This gives James the advantage of receiving payment earlier if the manufacturers choose to take the discount, or receiving the full payment within a reasonable timeframe if they don't.
Therefore, the most favorable trade credit term for James would be "2/10, Net 30."
The correct answer is "2/10, Net 30."
Option A
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Note the complete question is:
Finance & Banking - HW Savel Help Save & Exit Required information 17 7d. Assuming James were to take on a sole investor... Part 4 of 5 Assuming James were to take on a sole investor who gives him a total of $100,000 for a 60 percent stake in his company, how much is James' business valued at? 434 points Multiple Choice $166667 $100,000 $60,000 $1000.000 Required information 18 As James markets his bike tires to sporting goods manufacturers, what trade credit terms would be the most favorable to him not the manufacturers? Part 5085 Multiple Choice 4.34 points Net 15 Net 30 2/10, Net 60 Net 50 2/10. Net 30
The management of company has presented their fixed assets in the current assets. As an auditor you have to test the presentation and disclosure of the fixed assets. Determine the most applicable audit objective for the test. Select one: O A. Classification O B. Cut-off O C. Existence OD. Right and obligation Clear my choice Determine the main source of evidence to be used in the substantive test Select one: A. Journal listing B. Payment Vouchers Fixed Asset Register Fixed Asset Ledger O C. O D. Which test is predominantly used in auditing fixed assets? Select one: O A. Substantive test O B. Risk assessment O C. Test of control O D. Scanning Auditors establish the validity of Fixed Assets Register by the following actions except for ......... Select one: O A. Test check the additions and disposal B. Perform analytical procedures O C. Check the casting in the PPE register O D. Agree the total cost of PPE in the general ledger with that of the PPE register Auditors select a sample of PPE from physical inspection and trace them to the Fixed Assets Register. Determine the audit objective for the procedure, which is performed by the auditors. Select one: O A. Right an obligation O B. Existence O C. Valuation D. Completeness
The most applicable audit objective for testing the presentation and disclosure of the fixed assets is Existence. The purpose of this procedure is to establish that the fixed assets exist, are owned by the entity, and are included in the Fixed Asset Register.
The for this is that the existence objective is used to test whether the assets or liabilities exist at the balance sheet date. The auditor needs to verify that the fixed assets presented in the current assets exist and are owned by the entity. This objective is used to establish that the company's financial statements include all assets and liabilities that should be recorded and that these assets are the company's property.The main source of evidence to be used in the substantive test is the Fixed Asset Register. The Fixed Asset Register is the source document that provides information about each fixed asset owned by the company. It shows the acquisition cost, accumulated depreciation, and the net book value of each asset.
The auditor will need to test the accuracy and completeness of the Fixed Asset Register to ensure that it includes all the fixed assets owned by the company.The Substantive test is predominantly used in auditing fixed assets. This test involves gathering evidence from different sources to support the amounts and disclosures in the financial statements. It is used to detect material misstatements in the financial statements, which could arise from fraud or error. Auditors will use substantive tests to obtain evidence about the completeness, accuracy, and validity of the fixed assets register.Auditors establish the validity of Fixed Assets Register by performing analytical procedures, test check the additions and disposal, and agree the total cost of PPE in the general ledger with that of the PPE register. However, they do not check the casting in the PPE register because that is not an effective way to establish the validity of the fixed assets register.The audit objective for the procedure that auditors use to select a sample of PPE from physical inspection and trace them to the Fixed Assets Register is Existence.
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Shippers and 3PL providers strive towards reducing costs, securing more profits, which may not adhere with various environmental concerns. O True O False In the push system production orders begin upo
The given statement, "Shippers and 3PL providers strive towards reducing costs, securing more profits, which may not adhere with various environmental concerns" is True.
This statement explains that Shippers and 3PL providers may not consider environmental concerns while trying to reduce costs and increasing their profit.Increasing environmental concerns about the impact of logistics operations have highlighted the need for logistics to become more sustainable. Shippers are trying to respond to environmental concerns by changing their logistics practices. According to a study, shippers have started making logistics decisions that are environmentally friendly, such as changing the transportation mode or investing in new transportation equipment.
The involvement of 3PL providers (third-party logistics providers) in logistics operations has a considerable impact on the sustainability of logistics operations. The 3PL providers also aim to increase their profit and reduce costs. Thus, the cooperation between shippers and 3PL providers must involve ensuring the sustainability of logistics operations. Therefore, the given statement is True.In 200 words, Shippers and 3PL providers strive towards reducing costs, securing more profits, which may not adhere to various environmental concerns.
With the environmental concerns about the impact of logistics operations, the logistics industry is becoming more sustainable. Shippers and 3PL providers are taking several steps to address these environmental concerns.The shippers have started making logistics decisions that are environmentally friendly, such as changing the transportation mode or investing in new transportation equipment. For example, some shippers are replacing road freight with more environmentally friendly rail freight or are using hybrid or electric trucks for their transportation operations.The involvement of 3PL providers in logistics operations has a significant impact on the sustainability of logistics operations. The 3PL providers also aim to increase their profit and reduce costs.
However, the cooperation between shippers and 3PL providers must involve ensuring the sustainability of logistics operations.The implementation of green logistics practices may increase the costs, but this may also increase the efficiency of logistics operations. Moreover, implementing green logistics practices can improve the public image of the shippers and 3PL providers. Thus, shippers and 3PL providers should address environmental concerns and take steps towards becoming more sustainable.
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Firm commitment versus best efferts. Astro Investment Bank offers Lunar Vacations the following options on its initial public sale of equity: (a) a best efforts arrangement whereby Astro will keep 3.1% of the retail sales or (b) a firm commitment arrangement of $10,200,000. Lunar plans on offering shares at $11.17 per share to the public. What is the break-even point in number of shares for Lunar Vacations? What are the proceeds to Lunar Vacations and Astro Investment Bank at the break-even point?
The break-even point in number of shares for Lunar Vacations is determined by dividing the total amount needed to be raised by the offer price per share.
To determine the break-even point in number of shares for Lunar Vacations, we need to divide the total amount needed to be raised by the offer price per share. In this case, the total amount needed to be raised is $10,200,000 and the offer price per share is $11.17. Dividing these values, we find that the break-even point is approximately 914,438 shares.
At the break-even point, the proceeds to Lunar Vacations can be calculated by multiplying the offer price per share by the number of shares sold, which is 914,438 in this case. The proceeds to Lunar Vacations would be approximately $10,220,000.
For Astro Investment Bank, in the best efforts arrangement, they keep 3.1% of the retail sales. Since the break-even point represents the point where no profit or loss is incurred, Astro Investment Bank would not receive any proceeds at the break-even point.
Therefore, the break-even point for Lunar Vacations is approximately 914,438 shares, and at this point, Lunar Vacations would receive proceeds of approximately $10,220,000, while Astro Investment Bank would not receive any proceeds in the best efforts arrangement.
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Standardization of documents is the main focus of: O Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) O Islamic Financial Services Board (IFSB) O International Islamic Financial Market (IFM) O International Islamic Rating Agency (IIRA)
The main focus of standardization of documents lies with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is an international organization that plays a significant role in setting standards for Islamic finance. One of its primary objectives is the standardization of documents used in Islamic financial transactions.
AAOIFI develops and issues accounting, auditing, and governance standards for Islamic financial institutions. These standards cover a wide range of areas, including financial reporting, investment, risk management, and Shariah compliance. By standardizing documents and practices, AAOIFI aims to enhance transparency, consistency, and comparability within the Islamic finance industry.
The organization's standards are widely recognized and followed by Islamic financial institutions globally. They provide guidance on the preparation of financial statements, the classification and valuation of assets and liabilities, and the treatment of specific Islamic financial instruments. Standardization facilitates better understanding, improves investor confidence, and promotes harmonization across different jurisdictions.
While other organizations such as the Islamic Financial Services Board (IFSB), International Islamic Financial Market (IIFM), and International Islamic Rating Agency (IIRA) also contribute to the development and regulation of Islamic finance, the main focus on standardization of documents lies with AAOIFI.
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the government sent 1200 checks to most americans last summer. this can be thought of as a one time lump sum tax cut. 31) what should happen to labor supply? 32) what will happen to consumption and by how much? and why?
Labor supply might decrease for some individuals who choose to reduce their work hours or take time off and The specific amount of the increase in consumption cannot be determined without more information about individual behavior and economic conditions.
The effect on labor supply due to a one-time lump sum tax cut like the government sending $1200 checks to most Americans can vary depending on individual circumstances and preferences.
In general, a tax cut increases disposable income, which could potentially reduce the need for some individuals to work additional hours or take on additional jobs to meet their financial needs. Consequently, labor supply might decrease for some individuals who choose to reduce their work hours or take time off.
The impact on consumption resulting from a one-time lump sum tax cut also depends on various factors. Typically, a tax cut leads to increased disposable income, which can stimulate consumer spending. However, the magnitude of the effect on consumption may vary depending on individual propensities to consume and save. Some individuals might choose to spend the entire amount of the tax cut, leading to a significant increase in consumption.
Others might choose to save or use the funds to pay off debts, resulting in a smaller impact on immediate consumption.
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The monopolist's goal is to maximize its profits. As a result of this behavior, the economic consequence is price is greater than marginal cost. result in a transfer of consumer surplus to the firm. producing output where MR = MC and charging whatever the market demand curve will bear. All answers are correct
The larger the price difference between the marginal cost and the price, the greater the deadweight loss.
A monopolist's goal is to maximize profits. As a result of this behavior, the economic consequence is that price is greater than marginal cost. As the monopolist is the only firm operating in the market, it can charge a higher price than marginal cost to increase its profits. This results in a transfer of consumer surplus to the firm. The monopolist produces output where MR = MC and charges whatever the market demand curve will bear. This enables the monopolist to achieve the highest possible profits. In economic terms, this is known as a deadweight loss. It refers to the reduction in overall economic efficiency that occurs when a monopoly firm charges a price that is greater than marginal cost. The deadweight loss results from the reduction in economic surplus that occurs when consumers are forced to pay more for a good or service than it is actually worth to them. The larger the price difference between the marginal cost and the price, the greater the deadweight loss.
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The Parent Company purchased common stock of Sub Company in a series of open-market purchases in 2020 and 2022. January 1, 2020 purchased 1,000 shares at $15 per share. January 1, 2022 purchased 8,000 shared at $18 per share. Sub Company had 15,000 shares of $10 par value common stock outstanding for the entire period. Dividends of 67000 were paid on December 31, 2022. The Parent Company uses the cost method to account for the investment. Any investment the Parent Company owns less than 20% is classified as available for sale securities.
The amount of dividend income the Parent Company recognizes in 2022 is 4670 Incorrect
The amount of realized gain reflected in the Parent's retained earnings would be 37360
The amount of dividend income the parent company recognizes in 2022 is $5,000. The parent company purchased the common stock of the subcompany in a series of open-market purchases in 2020 and 2022.
On January 1, 2020, I purchased 1,000 shares at $15 per share.
On January 1, 2022, 8,000 shares were purchased at $18 per share. Sub Company had 15,000 shares of $10 par value common stock outstanding for the entire period. Dividends of $67,000 were paid on December 31, 2022. The parent company uses the cost method to account for the investment. Any investment the parent company owns less than 20% of is classified as available-for-sale securities.
The parent company's total investment in the sub-company would be as follows:
Investment on January 1, 2020, = $15 × 1,000 = $15,000
Investment on January 1, 2022, = $18 × 8,000 = $144,000
Total investment = $15,000 + $144,000
= $159,000
Since the parent company owns less than 20% of the subsidiary, the cost method is used to account for the investment. In the cost method, the investor records its investment in the stock at cost and recognizes dividends when they are received. Dividend income is the portion of a company's profit that is paid out to shareholders. Thus, dividend income can be calculated by multiplying the dividends paid by the proportion of shares owned by the investor.
Here, the parent company owns 1,000 shares plus 8,000 shares, or 9,000 shares, out of the 15,000 shares that the subcompany had outstanding throughout the period. Dividend income recognized in 2022 = Dividends paid × Proportion of shares owned by the investor
Dividend income recognized in 2022 = $67,000 × (9,000 / 15,000)
= $40,200However, the parent company uses the cost method to account for the investment. Therefore, it recognizes only the dividend income it received as revenue. Dividend income received in 2022 = $18 × 1,000 + $18 × 8,000
= $5,000The amount of realized gain reflected in the parent's retained earnings would be $42,000.
The calculation is done as follows: Parent Company's investment in
Sub Company on January 1, 2022, = $18 × 8,000 shares = $144,000
Sub Company's dividend per share = $67,000 ÷ 15,000 shares
= $4.47
Sub Company's dividend on 8,000 shares purchased in 2022 = $4.47 × 8,000 shares
= $35,760
The parent company's cost basis in these 8,000 shares = $18 × 8,000 shares
= $144,000
Realized gain = Sale proceeds - Cost basis = $35,760 - $18,000 = $17,760
The total realized gain on the sale of 8,000 shares = $17,760 × 2 = $35,520
On December 31, 2022, the parent company sold 2,000 shares of the subcompany's common stock for $37,360 ($18.68 per share), resulting in a realized gain of $35,520. This gain would be reflected in the parent company's retained earnings.
Therefore, the amount of realized gain reflected in the parent's retained earnings would be $35,520 (and not $37,360). Thus, the amount of dividend income the parent company recognizes in 2022 is $5,000, and the amount of realized gain reflected in the parent's retained earnings would be $35,520.
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E14.13 (LO 4) The following information is taken from the 2020 general ledger of Okonedo ASA. Rent Rent expense € 40,000 Prepaid rent, January 1 5,600 Prepaid rent, December 31 9,000 Salaries Salaries and wages expense € 65,000 10,000 Salaries and wages payable, January 1 Salaries and wages payable, December 31 8,000 Sales Sales revenue €170,000 Accounts receivable, January 1 19,000 Accounts receivable, December 31 7,000 Instructions In each case, compute the amount that should be reported in the operating activities section of the state- ment of cash flows under the direct method.
The amount that should be reported in the operating activities section of the statement of cash flows under the direct method for Okonedo ASA is €171,000.
The operating activities section of the statement of cash flows under the direct method includes cash inflows and outflows directly related to the company's core operations. To calculate the amount for this section, we need to consider the changes in the relevant accounts. For Rent, the Rent expense of €40,000 is reported as an outflow in the operating activities section. For Salaries, the change in Salaries and wages payable is considered. The Salaries and wages payable of €10,000 (January 1) minus €8,000 (December 31) represents a decrease in payable, which means an increase in cash. Therefore, €2,000 is reported as an inflow in the operating activities section.
For Sales, the change in Accounts receivable is considered. The Accounts receivable of €19,000 (January 1) minus €7,000 (December 31) represents a decrease in receivables, which means an increase in cash. Therefore, €12,000 is reported as an inflow in the operating activities section. Adding up the Rent expense, Salaries adjustment, and Sales adjustment, the total amount reported in the operating activities section of the statement of cash flows under the direct method is €40,000 + €2,000 + €12,000 = €54,000. However, it's important to note that the given information does not provide specific details about other operating cash flows, such as cash paid for operating expenses. Therefore, the total amount reported in the operating activities section may vary depending on additional information not provided.
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OSCM 3430-01F/07F Ethan Cox 06/08/22 5:09 PM 2 Save Homework: M3 Assignment 2 Question 1, Problem 9 Pa HW Beore: 0%, 0 of 00 O Point: 0 of 4 Yoksa Press, Inc. buys paper in 1,500 pound tols for printing Annual demands 3,000 The cost per rot is $575, and the areal hoiding cost is 16 percent of the coal. Cacho a. How many roles should Vedow Press order t Yellow Press houso order rolls at a time (Enter your response rounded to the nearest whole number)
Once we have the EOQ, we will round it to the nearest whole number to determine the number of rolls Vedow Press should order at a time.
To determine how many rolls Vedow Press should order at a time, we need to consider the economic order quantity (EOQ) formula. The EOQ formula helps to find the optimal order quantity that minimizes the total inventory costs.
The formula for EOQ is:
EOQ = √((2 * D * S) / H),
where:
D = Annual demand = 3,000 rolls,
S = Ordering cost per order, and
H = Holding cost per unit.
Given that the cost per roll is $575 and the holding cost is 16% of the cost, we can calculate the ordering cost and holding cost as follows:
Ordering cost per order (S) = Cost per roll * Number of rolls = $575 * Number of rolls,
Holding cost per unit (H) = Holding cost as a percentage * Cost per roll = 0.16 * $575.
Substituting these values into the EOQ formula, we have:
EOQ = √((2 * D * S) / H)
= √((2 * 3,000 * ($575 * Number of rolls)) / (0.16 * $575))
Simplifying the equation, we can cancel out the common factor of $575:
EOQ = √((2 * 3,000 * Number of rolls) / 0.16)
Now we can calculate the EOQ by substituting the values and solving the equation. Once we have the EOQ, we will round it to the nearest whole number to determine the number of rolls Vedow Press should order at a time.
Please provide the values for the ordering cost per order (S) and the holding cost as a percentage, and I can assist you further in calculating the EOQ.
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Susan has a $2,000,000 retirement account. Beginning today, Susan wishes to withdraw the first of twenty-five equal annual payments but still have $400,000 remaining after the final withdrawal. Assuming the retirement account will earn 7.5 percent per year, how much can she withdraw each period?
Susan can withdraw approximately $42,760.57 each period from her retirement account to have $400,000 remaining after the final withdrawal.
To determine how much Susan can withdraw each period from her retirement account, we can use the formula for the present value of an annuity.
The present value of an annuity formula is given by:
PV = PMT * [(1 - (1 + r)^(-n)) / r]
Where:
PV = Present Value (desired remaining balance)
PMT = Payment amount (to be determined)
r = Interest rate per period (7.5% or 0.075 in decimal form)
n = Number of periods (25)
Plugging in the values:
$400,000 = PMT * [(1 - (1 + 0.075)^(-25)) / 0.075]
To solve for PMT, we can rearrange the equation:
PMT = $400,000 * [0.075 / (1 - (1 + 0.075)^(-25))]
Calculating this expression:
PMT = $400,000 * [0.075 / (1 - 0.29578)]
PMT = $400,000 * [0.075 / 0.70422]
PMT = $400,000 * 0.1069
PMT ≈ $42,760.57
Therefore, Susan can withdraw approximately $42,760.57 each period from her retirement account to have $400,000 remaining after the final withdrawal.
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Susan can withdraw approximately $42,760.57 per period from her retirement account to ensure that she has $400,000 remaining after the final withdrawal.
This calculation is based on the present value of an annuity formula, which takes into account the desired remaining balance, interest rate, and number of periods.
By plugging in the values into the formula and solving for the payment amount (PMT), we find that PMT is approximately $42,760.57. This means that Susan can withdraw this amount each period to achieve her desired remaining balance.
It's important to note that this calculation assumes a constant withdrawal amount over the specified period and doesn't account for potential changes in investment returns or other factors that may affect the actual value of the retirement account.
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Materiality is an important aspect of any audit. Which of the following statements are accurate? (Several choices may be correct.)
The lower the materiality, the more work that is required
The higher the materiality the more work that is required
Materiality is used to guide the planning of the audit
Materiality is determined based on the level of audit risk
Materiality is determined during the execution phase of the audit
Materiality is an important aspect of any audit. The following are the accurate statements:Materiality is used to guide the planning of the auditMateriality is determined based on the level of audit risk.
Materiality is defined as the level below which financial information can be ignored without materially impacting the decision-making process of the users of financial statements. It is an important aspect of any audit. The auditor needs to have an understanding of materiality when conducting an audit. Materiality is used to guide the planning of the audit. It is determined during the planning phase of the audit.
Materiality is determined based on the level of audit risk. The auditor has to take into account both the size of the item and the nature of the item. In general, the larger the item, the lower the materiality, and the smaller the item, the higher the materiality. Materiality is important as it determines the scope of the audit. If materiality is set too high, the auditor may miss material misstatements. If materiality is set too low, the audit can become too time-consuming and expensive.
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Hassan's income increases and, as a result, he buys more fish. Is fish an inferior or a normal good? Why? What happens to Hassan's demand curve for fish? Explain. Over the past 30 years, technological advances have reduced the cost of computer chips. How do you think this has affected the market for computers? And the market for typewriters? Explain.
Fish is likely a normal good for Hassan because as his income increases, he buys more of it. The demand curve for fish would shift to the right, indicating an increase in demand, as Hassan's higher income allows him to purchase more fish.
Fish being a normal good for Hassan implies that it is a product for which demand increases as income rises. This suggests that fish is considered a desirable and higher-quality product that people are willing to consume more of when they have more purchasing power. As Hassan's income increases, he has more disposable income available to spend on various goods, including fish. Consequently, he chooses to buy more fish, indicating that it is a normal good for him.
In terms of the demand curve for fish, the increase in Hassan's income would cause a rightward shift in the curve. This means that at each price level, Hassan is now willing and able to buy more fish compared to his previous income level. The shift reflects an increase in demand for fish, as higher income enables him to afford and consume a greater quantity of fish. The entire demand curve would shift, indicating a change in the relationship between the price of fish and the quantity demanded by Hassan. The extent of the shift depends on the income elasticity of demand for fish, which measures the responsiveness of quantity demanded to changes in income.
Regarding technological advances in computer chips, they have had a significant impact on the market for computers. These advancements have led to increased efficiency, improved performance, and reduced production costs for computer manufacturers. As a result, the market for computers has experienced increased supply, lower prices, and higher demand.
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Daily 120 patients come to a walk-in clinic to visit the doctors or get tested. The clinic operates 8 hours a day, and is closed on both Saturdays and Sundays. On average, there are 5 patients in the clinic at any point in time. 3-1. What is the weekly rate of patients visit at this clinic? What is the monthly rate, considering that the clinic works 22 days a month (write down the unit for your calculated value)?
The weekly rate of patients in a clinic is close to 280 patients per week.
Any person who receives medical treatment from trained experts is referred to as a patient. Most frequently, the patient is ill or hurt and needs care from a doctor, nurse, optometrist, dentist, veterinarian, or other healthcare professional.
Originally, the word "patient" meant "one who suffers." The Latin word patients, the present participle of the deponent verb patior, which means "I am suffering," is the source of our English term. It is related to the Greek verb v and its corresponding noun (pathos).
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Over time the level of output in the United States has risen steadily.
True
False
The statement "Over time the level of output in the United States has risen steadily" is true.
Output refers to the amount of goods and services that an economy produces within a specified period, usually a year. The output level is a measure of the economic growth of a country.The output of the United States has been increasing steadily over time. Despite occasional setbacks, such as recessions, the trend has been upwards, as indicated by the gross domestic product (GDP) data over the years.GDP is the value of all goods and services produced within the country's borders in a year. The US GDP has increased steadily over the years, from $3.9 trillion in 1990 to $21.4 trillion in 2019. This increase has been made possible by several factors, such as technological advancements, innovation, an educated workforce, and favorable government policies, among others.In conclusion, it is true that over time the level of output in the United States has risen steadily, as evidenced by the growth in GDP over the years.
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Question 10 1 pts In the market for tomatoes, assume the market demand is perfectly elastic and the market supply is elastic. If a tax is placed on the suppliers in this market, how will the tax burden be distributed? O Consumers will bear all the tax O Producers will bear all the tax O Consumers and producers will bear the tax burden equally O Producers will bear a greater burden of the tax, but not all of the tax. O Consumers will bear a greater burden of the tax, but not all the tax.
In the case of a perfectly elastic demand, the suppliers will bear a very small part of the tax, and consumers will bear the majority of the burden.
If a tax is imposed on the tomato suppliers in a market where the market demand is perfectly elastic and the market supply is elastic, the tax burden will be distributed between the consumers and producers. The answer is option E, that consumers will bear a greater burden of the tax, but not all of the tax. Perfectly elastic demand occurs when a tiny increase or decrease in price results in an infinite decrease or increase in the quantity of goods bought by customers. In other words, the amount demanded of a good is infinitely sensitive to price changes. The demand curve in a perfectly elastic market is horizontal or flat. The tax burden is a term that refers to how the financial burden of a tax is distributed between buyers and sellers in the market. The tax burden can be shared between the two parties, or it can be borne entirely by one group. In a perfectly elastic market, when a tax is imposed on suppliers, they will pass on the burden of the tax to the buyers in the form of higher prices. In the case of a perfectly elastic demand, the suppliers will bear a very small part of the tax, and consumers will bear the majority of the burden.
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Choose a FALSE statement regarding the t-distribution.
O The t distribution is based on the assumption that the population of interest is normal nearly normal.
O The t distribution has a greater spread than does the z distribution. As a result, the critical values of t for a given level of significance are larger in magnitude than the corresponding z critical values.
O There is not one t distribution, but rather a "family" of t distributions. All t distributions have a mean of zero and a standard deviation of 1.
O The higher the degree of confidence, the larger the sample required to give a certain precision.
The false statement regarding the t-distribution is: "The t distribution has a greater spread than does the z distribution. As a result, the critical values of t for a given level of significance are larger in magnitude than the corresponding z critical values."
The t distribution actually has a greater spread than the standard normal distribution (z distribution). This means that the critical values of t for a given level of significance are larger in magnitude than the corresponding z critical values. In other words, the tails of the t distribution are fatter than the tails of the standard normal distribution, which accounts for the larger critical values.
The t distribution is a family of distributions, and not all t distributions have a mean of zero and a standard deviation of 1. The shape of the t distribution depends on the degrees of freedom, which is determined by the sample size. As the sample size increases, the t distribution approaches the standard normal distribution.
The statement about the relationship between the degree of confidence and sample size is generally true. As the degree of confidence increases, the precision or level of certainty desired also increases. To achieve a higher degree of confidence, a larger sample size is typically required to provide more reliable and accurate results.
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.Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below:
Whitman Company Income Statement Sales (39,000 units x $40.60 per unit) $1,542,800
Cost of goods sold (38,000 units x $24 per unit) 912,000
Gross margin 630,800
Selling and administrative expenses 437,000
Net operating income $193,800
The company's selling and administrative expenses consist of $285,000 per year in fixed expenses and $4 per unit sold in variable expenses. The $24 per unit product cost given above is computed as follows:
Direct materials $11
Direct labor 5
Variable manufacturing overhead 3
Fixed manufacturing overhead ($240,000 x 48,000 units) 5
Absorption costing unit product cost $24
1. Prepare the company's income statement in the contribution format using variable costing.
2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement.
1. Whitman Company Income Statement (Variable Costing)
Sales: (39,000 units x $40.60 per unit) $1,542,800
Variable Expenses:
- Direct materials: (39,000 units x $11 per unit) $429,000
- Direct labor: (39,000 units x $5 per unit) $195,000
- Variable manufacturing overhead: (39,000 units x $3 per unit) $117,000
- Variable selling and administrative expenses: (39,000 units x $4 per unit) $156,000
Total Variable Expenses: $897,000
Contribution Margin: $1,542,800 - $897,000 = $645,800
Fixed Expenses:
- Fixed manufacturing overhead: $240,000
- Fixed selling and administrative expenses: $285,000
Total Fixed Expenses: $525,000
Net Operating Income: $645,800 - $525,000 = $120,800
2. Reconciliation of Net Operating Income:
Absorption Costing Net Operating Income: $193,800
Variable Costing Net Operating Income: $120,800
Difference = Absorption Costing Net Operating Income - Variable Costing Net Operating Income
= $193,800 - $120,800
= $73,000
The difference of $73,000 represents the increase in net operating income under absorption costing compared to variable costing. This difference is due to the fixed manufacturing overhead being absorbed into the product cost under absorption costing. Since the company produced more units (39,000) than it sold (38,000), the fixed manufacturing overhead allocated to each unit is higher, resulting in a higher product cost and higher net operating income under absorption costing.
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Assume that the market for wood is perfectly competitive.
During the COVID-19 pandemic, many people work from home and therefore need to build or improve their home offices. Using a supply and demand diagram explain how this event may affect the market equilibrium price and quantity of wood.
During the COVID-19 pandemic, the increased demand for home offices may have an impact on the market equilibrium price and quantity of wood. Using a supply and demand diagram, we can explain this as follows:
Begin with a standard supply and demand diagram, with the quantity of wood on the x-axis and the price of wood on the y-axis.
Due to the increased demand for home offices, the demand curve for wood will shift to the right, indicating a higher quantity demanded at each price level. This shift represents the increased willingness of consumers to purchase wood for home office construction or improvement.
As a result of the increased demand, the equilibrium price of wood will rise, reflecting the upward pressure on prices due to the higher demand. This is because the increased number of people working from home creates a higher need for wood products, such as desks, shelves, or renovations.
The equilibrium quantity of wood will also increase due to the increased demand. This implies that more wood will be bought and sold in the market to meet the higher consumer demand.
Therefore, the increased demand for home offices during the COVID-19 pandemic would lead to a higher equilibrium price and quantity of wood in the market. The specific magnitude of the price increase and quantity increase would depend on the elasticities of demand and supply for wood.
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Exercise 13.5 (Algo) Preparing a classified balance sheet. LO 13-3 The worksheet of Bridget's Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $59,775 on January 1, 20X1, and $52,725 on December 31, 20X1. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses. Accounts 401 Sales $248,900 Cr. 4,350 Dr. 451 Sales returns and allowances 491 Miscellaneous income 501 Purchases 400 Cr. 103,600 Dr. 1,975 Dr. 502 Freight in 503 Purchases returns and allowances 3,600 Cr. 504 Purchases discounts 1,800 Cr. 611 Salaries expense-Sales 45,300 Dr. 614 Store supplies expense 2,310 Dr. 617 Depreciation expense-Store equipment 1,510 Dr. 631 Rent expense 13,500 Dr. 634 Utilities expense 3,000 Dr. 637 Salaries expense-Office 640 Payroll taxes expense 643 Depreciation expense-Office equipment 21,100 Dr. 6,000 Dr. 570 Dr. 720 Dr. 740 Dr. 646 Uncollectible accounts expense 691 Interest expense The worksheet of Bridget's Office Supplies contains the following owner's equity accounts. Accounts 301 Bridget Swanson, Capital $63,760 Cr. 302 Bridget Swanson, Drawing 40,700 Dr. Net income for the year $42,975. The worksheet of Bridget's Office Supplies contains the following asset and liability accounts. The balance of the Notes Payable account consists of notes that are due within a year. Accounts 101 Cash 107 Change fund 111 Accounts receivable 112 Allowance for doubtful accounts 121 Merchandise inventory 131 Store supplies 133 Prepaid interest 141 Store equipment 142 Accum. depreciation-Store equipment 151 Office equipment 152 Accum. depreciation-Office equipment 201 Notes payable 203 Accounts payable 216 Interest payable 231 Sales tax payable Prepare a balance sheet dated December 31, 20X1. $ 5,605 Dr. 500 Dr. 5,140 Dr. 860 Cr. 52,725 Dr. 1,100 Dr. 130 Dr. 11,200 Dr. 1,180 Cr. 3,400 Dr. 500 Cr. 5,500 Cr. 3,725 Cr. 110 Cr. 1,890 Cr. Current Assets Assets Prepaid Expenses Total Current Assets Plant and Equipment Store equipment Office equipment Total plant and equipment Total Assets Current Liabilities BRIDGET'S OFFICE SUPPLIES Balance Sheet Liabilities and Owner's Equity Total Current Liabilities Owner's Equity Total Liabilities and Owner's Equity
Balance sheets are financial statements that report on a company's assets, liabilities, and equity at a specific point in time. A classified balance sheet is one in which assets and liabilities are divided into current and non-current categories.
Assets are what a company owns and are classified as either current or non-current on a classified balance sheet. Current assets are those that are expected to be converted to cash or used within one year, whereas non-current assets are those that are expected to be held for more than one year. Prepaid expenses are one of the items that are listed in current assets.Preparing a classified balance sheet involves taking the information that's been gathered from the company's accounting records and organizing it into a format that shows the company's financial position at a specific point in time, such as the end of a fiscal year or quarter. This process helps a company understand its financial position by categorizing assets, liabilities, and equity into sections that are more easily analyzed.
Store Equipment$11,200Accumulated Depreciation-Store Equipment$1,180Office Equipment$5,500Accumulated Depreciation-Office Equipment$3,725Total Plant and Equipment$12,795Total Assets$77,855Current Liabilities
Bridget Swanson, Capital$63,760Bridget Swanson, Drawing$40,700Net Income for the Year$42,975Total Owner's Equity$66,035Total Liabilities and Owner's Equity$77,855
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The excessive national debt can also negatively impact the
economy. How do we find a healthy balance?
Please do not use any answers that are already posted.
Finding a healthy balance in managing national debt requires a careful approach that considers both the short-term and long-term implications. It involves striking a balance between necessary government spending, fiscal discipline, and sustainable economic growth.
To achieve a healthy balance, governments can implement several strategies. First, it is crucial to maintain a disciplined fiscal policy by controlling government spending and ensuring that expenditures align with revenue generation. This may involve evaluating and prioritizing public investments, reducing wasteful spending, and implementing efficient tax policies. Second, promoting economic growth and productivity can help alleviate the negative impacts of national debt. Governments can focus on implementing structural reforms, fostering innovation, and investing in education and infrastructure. These measures can enhance competitiveness, attract investment, and stimulate economic activity, leading to increased tax revenues and improved debt sustainability. Lastly, prudent debt management practices are essential. Governments can strive to diversify their debt portfolio, negotiate favorable interest rates, and closely monitor debt levels to prevent excessive borrowing. Transparency and accountability in debt management are critical to ensure responsible fiscal policies.
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T/F (Qualitative) A stock with a higher market capitalization will have a higher beta, and vice versa. ANSWER Type your answer here.... BY 5 5 Pts
The statement is false. Market capitalization and beta are two distinct measures that provide different insights into a stock.
Market capitalization refers to the total value of a company's outstanding shares in the market. It is calculated by multiplying the current share price by the number of outstanding shares. Market capitalization categorizes stocks into different groups, such as large-cap, mid-cap, and small-cap, based on their total market value.
Beta, on the other hand, is a measure of a stock's systematic risk or volatility compared to the overall market. It indicates the sensitivity of a stock's returns to fluctuations in the market. A beta greater than 1 implies that the stock tends to be more volatile than the market, while a beta less than 1 suggests lower volatility.
There is no direct relationship between market capitalization and beta. Stocks with higher market capitalization can have a wide range of beta values. Some large-cap stocks may have low beta values, indicating lower volatility compared to the market. Similarly, small-cap stocks can exhibit a wide range of beta values, including both high and low values.
The beta of a stock is influenced by various factors such as the company's business model, industry dynamics, financial leverage, and market conditions. Market capitalization alone does not determine a stock's beta. It is important to consider the specific characteristics and risk factors associated with the individual stock or company when assessing its beta.
In summary, market capitalization and beta are independent measures that provide different information about a stock. Market capitalization does not directly determine the beta of a stock, and stocks with higher market capitalization can have a wide range of beta values.
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Explain with examples the total quality management (TQM)
technique of rewards and recognition and how its
perform.
Total Quality Management (TQM) is a business approach that seeks to improve quality and performance to meet or exceed customer expectations.
In the first paragraph, we'll discuss the TQM technique of rewards and recognition, using a company's implementation as an example. In the second paragraph, we'll discuss the performance impacts of this technique. Toyota Motor Corporation is a prime example of the successful implementation of TQM's rewards and recognition. In addition to its rigorous quality standards and continuous improvement (Kaizen) culture, Toyota regularly recognizes employees who excel in their roles or suggest useful improvements. They do this through various means, such as awards ceremonies, commendations, or financial bonuses. This approach of recognition has several performance benefits. Firstly, it promotes a sense of ownership among employees, making them feel valued and motivated to perform at their best. Secondly,
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when making a decision in the presence of uncertainty, decision makers should only be interested in the average, or expected, outcome.
When making a decision in the presence of uncertainty, decision-makers should not only be interested in the average or expected outcome. Uncertainty can make it difficult to come to a final decision because the outcome may not be known.
Decision-makers need to take into account the likelihood of the different outcomes that may occur.Therefore, decision-makers should be interested in more than just the expected outcome. They need to consider the range of possible outcomes and their associated probabilities. This is where risk analysis comes into play. Risk analysis helps decision-makers to understand the risks and potential rewards of different options and make a more informed decision.In conclusion, when making a decision in the presence of uncertainty, decision-makers should not only be interested in the average or expected outcome. They need to consider the range of possible outcomes and their associated probabilities, which can be achieved through risk analysis.
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Answer all please. Thank you so much
1. Which of the following has NOT been impacted by digital and mobile marketing programs?
a. Where and when consumers research products, companies, and brands
b. The ability to touch and feel a product
c. How consumers receive the products they purchase
d. Where and when consumers purchase products
2. One of the major advantages of e-commerce over brick-and-mortar stores is ______.
a. no need for local staff
b. ability to reach consumers worldwide
c. lack of legal export and import constraints
d. ease of shipping
3. What is the difference between paid search insertions and paid search ads?
a. Paid search ads include text boxes or display ads that pop up when a specific word is typed in the search box.
b. Companies do not pay a premium for paid search insertions.
c. Paid search insertions do not focus on certain products.
d. Paid search insertions are not usually identified as such to the consumer.
4. Mobile devices incorporate features through GPS, beacon, or NFC (near field communication) technologies to help with
a. enhancing the customer engagement process
b. geo-location
c. capturing demographic data
d. voice recognition
5. In what ways does mobile differ from other media?
a. It does not allow for video or camera technology.
b. It is usually used by multiple people and encourages two-way communication.
c. It is personal and offers geo-location and voice recognition.
d. It is personal but does not offer tracking features.
1.The answer is b.The ability to touch and feel a product
2.The answer is b.ability to reach consumers worldwide
3.The answer is a.Paid search ads include text boxes or display ads that pop up when a specific word is typed in the search box.
4.The answer is b.geo-location
5.The answer is c.It is personal and offers geo-location and voice recognition.
1.The answer is b. The ability to touch and feel a product has not been directly impacted by digital and mobile marketing programs. While digital and mobile marketing can provide virtual experiences and product information, they cannot replicate the physical sensation of touching and feeling a product.
2.The answer is b. One of the major advantages of e-commerce over brick-and-mortar stores is the ability to reach consumers worldwide. E-commerce platforms allow businesses to expand their customer base beyond local geographical boundaries and tap into a global market.
3.The answer is a. Paid search ads include text boxes or display ads that pop up when a specific word is typed in the search box. Paid search insertions, on the other hand, refer to the placement of advertisements within search engine results or other online content, but they may not necessarily include text boxes or pop-up ads.
4.The answer is b. Mobile devices incorporate GPS, beacon, or NFC technologies to enable geo-location capabilities. These technologies help determine the user's physical location and allow businesses to provide location-based services and targeted marketing messages.
5.The answer is c. Mobile differs from other media in that it is personal and offers features such as geo-location and voice recognition. Mobile devices are typically owned and used by individuals, allowing for personalized experiences and interactions. Additionally, mobile devices have built-in features like GPS for location-based services and voice recognition for hands-free interactions.
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(Present value of a growing perpetuity) Your firm has taken on cost saving measures that will provide a benefit of $16,000 in the first year. These cost savings will decrease each year at a rate of 4 percent forever. If the appropriate interest rate is 5 percent, what is the present value of these savings?
Formula to calculate the Present value of a growing perpetuity is:
PV of a growing perpetuity = C1 / (r - g)
where C1 is the cash flow at the end of year one,
r is the discount rate and g is the growth rate.
The cash savings each year decrease at a rate of 4% per year, so in the first year, it will be $16,000, the next year it will be $15,360 ($16,000 * 96%), and so on. The appropriate interest rate is 5% so the discount rate would be 0.05.The first year savings are $16,000. The cash flow growth rate is -4%, as the savings decrease by 4% each year. Starting from the second year, the savings for that year are the savings for the previous year, multiplied by (1 - 0.04).
Therefore, the second-year savings are 16,000 * (1 - 0.04) = 15,360
The third-year savings are the second-year savings, multiplied by (1 - 0.04).
Therefore, the third-year savings are 15,360 * (1 - 0.04) = 14,745.60 and so on.
The formula to calculate the Present value of a growing perpetuity is given as follows:
PV of a growing perpetuity = C1 / (r - g)
Where, C1 is the cash flow at the end of year one,
r is the discount rate, and g is the growth rate.
In the given problem, the cash savings each year decrease at a rate of 4% per year. The savings are $16,000 for the first year, which will be decreased by 4% each year. Therefore, the savings for the second year will be $15,360 ($16,000 * 96%), and so on. The savings will continue to decrease by 4% each year.So, we need to calculate the present value of these savings using the formula mentioned above. The appropriate interest rate is 5%, so the discount rate would be 0.05. The first-year savings are $16,000. The cash flow growth rate is -4%, as the savings decrease by 4% each year.
Therefore, the PV of the growing perpetuity can be calculated as:
PV of a growing perpetuity = C1 / (r - g)= $16,000 / (0.05 - (-0.04))= $16,000 / (0.05 + 0.04)= $16,000 / 0.09= $177,777.78
Therefore, the present value of these savings is $177,777.78.
Thus, the present value of these savings is $177,777.78.
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six -five traffic tickets are to be served in 700.what is takt time?
To calculate the takt time, we need to determine the available time and divide it by the customer demand.
In this case, the available time is 700 units (minutes), and there are 65 traffic tickets to be served.
Takt Time = Available Time / Customer Demand
Takt Time = 700 / 65
Takt Time ≈ 10.77 minutes per traffic ticket
Therefore, the takt time for serving each traffic ticket would be approximately 10.77 minutes.
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Real GDP is $3,000, autonomous consumption is $500, and planned investment spending is $200. The marginal propensity to consume is 0.8. What is planned aggregate spending?
a. $2,900.
b. $3,000
c. $3,100.
d. $2,400.
To calculate planned aggregate spending, we need to consider autonomous consumption, planned investment spending, and the marginal propensity to consume. The marginal propensity to consume (MPC) represents the fraction of additional income that individuals choose to spend. In this case, the MPC is 0.8, indicating that for every additional dollar of income, individuals spend $0.8.The correct answer is not among the options provided. The planned aggregate spending is $2,700.
Given:
Real GDP = $3,000
Autonomous consumption = $500
Planned investment spending = $200
MPC = 0.8
Planned aggregate spending can be calculated as follows:
Planned aggregate spending = Autonomous consumption + Planned investment spending + MPC * (Real GDP - Autonomous consumption)
Planned aggregate spending = $500 + $200 + 0.8 * ($3,000 - $500)
Planned aggregate spending = $500 + $200 + 0.8 * $2,500
Planned aggregate spending = $500 + $200 + $2,000
Planned aggregate spending = $2,700
Therefore, the correct answer is not among the options provided. The planned aggregate spending is $2,700.
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Exercise 2. Suppose the only three risky assets in the market have the following expected returns and standard deviations: Asset A Asset B Asset C Expected returns 12.5% 15.0% 25.0% Standard deviation
The degree of variance or dispersion in a group of values is measured statistically by the standard deviation. It reveals the degree to which the data points deviate from the mean (average) value.
Given the following expected returns and standard deviations: Asset A Asset B Asset C Expected returns 12.5% 15.0% 25.0% Standard deviation For this case, we have the following mathematical formula that represents the calculation of the expected return:
E(Rp) = w1R1 + w2R2 + w3R3
where E(Rp) = expected return on a portfolio w1 = proportion of the portfolio invested in asset 1 R1 = expected return of asset 1 w2 = proportion of the portfolio invested in asset 2 R2 = expected return of asset 2 w3 = proportion of the portfolio invested in asset 3 R3 = expected return of asset 3.
Using the provided formula, let us find the portfolio expected returns (E(Rp)) below: For Asset A: E(Rp) = w1R1 + w2R2 + w3R3E(Rp) = (0.25 * 0.125) + (0.5 * 0.15) + (0.25 * 0.25)E(Rp) = 0.03125 + 0.075 + 0.0625E(Rp) = 0.16875For Asset B: E(Rp) = w1R1 + w2R2 + w3R3E(Rp) = (0.25 * 0.125) + (0.5 * 0.15) + (0.25 * 0.25)E(Rp) = 0.03125 + 0.075 + 0.0625E(Rp) = 0.16875For Asset C: E(Rp) = w1R1 + w2R2 + w3R3E(Rp) = (0.25 * 0.125) + (0.5 * 0.15) + (0.25 * 0.25)E(Rp) = 0.03125 + 0.075 + 0.0625E(Rp) = 0.16875.
Hence, the expected return for all the risky assets is 16.875%.
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You want to value a stock, but it does not pay any dividends. The last period’s FCFE was $5.79 and it has an estimated annual free cash flow growth rate of 7.76%. The required return for this stock is 10.63% and its long term growth rate is 2.46%. It also has an ROE of 25.7%. What is the estimated intrinsic value using the constant state FCFE method? State your answer as a percentage with two decimal places
The estimated intrinsic value using the constant state FCFE method is $201.39.
Constant state FCFE (Free Cash Flow to Equity) is a valuation approach to calculate a firm's intrinsic value based on the estimated future cash flows generated by the firm.
The constant state FCFE method assumes that the free cash flow to equity will remain constant, which makes it a preferred valuation method for stable and mature companies.
To calculate the estimated intrinsic value using the constant state FCFE method, we can use the formula:
Intrinsic Value = FCFE / (R - G)
where,FCFE = the Free Cash Flow to Equity
R = the Required Rate of Return
G = the Annual Growth Rate of Free Cash Flow to Equity
Considering the given values in the question:
FCFE = $5.79
Growth rate of FCFE = 7.76%
Required rate of return (R) = 10.63%
Long-term growth rate (g) = 2.46%
We can use the above formula to find out the intrinsic value of the stock.
Intrinsic Value = $5.79 / (10.63% - 7.76%)
Intrinsic Value = $5.79 / 0.0287
Intrinsic Value = $201.39
Therefore, the estimated intrinsic value using the constant state FCFE method is $201.39.
Now, let's calculate the percentage change in the stock price. It can be calculated as follows:
Percentage Change = ((Intrinsic Value - Current Market Price) / Current Market Price) * 100
Given that the current market price is not given, we cannot calculate the percentage change in the stock price.
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You own a stock that had returns of 13.82 percent, -16.94 percent, 23.16 percent, and 21.24 percent over the past four years. What was the arithmetic average return for this stock? 9.66% ,10.32%, 11.18% ,9.00%
Arithmetic Average Return is the simple average of a series of returns generated over a specific time period. For instance, if you owned a stock that had returns of 10 percent, 12 percent, 15 percent, and 9 percent over the past four years, the arithmetic average return for that stock would be 11.5 percent.
The arithmetic average return for the given stock can be calculated as follows:Given data:Returns of the stock over the past four years:[tex]13.82%[/tex], [tex]-16.94%[/tex], [tex]23.16%[/tex], and [tex]21.24%[/tex]. Now, we will add all the given returns and divide by the number of terms to obtain the arithmetic average return: Average return=[tex](13.82 - 16.94 + 23.16 + 21.24)/4=40.28/4=10.07%[/tex]
Hence, the arithmetic average return for the stock is 10.07 percent, which is approximately 10.32% (rounded to two decimal places).Therefore, the correct option is [tex]10.32%.[/tex]
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