Answer: D. increasing the volatility of the firm's net income
Explanation:
Financial Leverage simply has to do with using debt in the finance of assets. It should be noted that companies typically fund their growth or invest using either debt or equity.
When the debt financing of a particular company is high, the company's financial leverage will be high and vice versa. It should also be noted that the financial leverage is usually positive in good times.
Financial leverage impacts the performance of the firm by increasing the volatility of the firm's net income.
Therefore, option D is the right answer.
Menard quit his high school teaching job, which paid $60,000 per year, to start a business that prepares students for the SAT exam. His first year in business generated the following revenues and costs: Menard's economic cost of SAT preparation is $____. 20,000 15,000 105,000 100,000
Answer: $105,000
Explanation:
Maynard's economic cost is the sum of both his implicit and explicit costs.
Explicit costs are the normal accounting costs of running a business which in this case are supplies and employee salaries.
Implicit costs are the opportunity costs which means that this is the benefit foregone from another alternative for the current decision one has made. In this case that would be the $60,000 Menard could have been making from his high school teaching job had he not quit to prepare students for the SATs.
Economic costs;
= Explicit + Implicit costs
= 30,000 + 15,000 + 60,000
= $105,000
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Which of the following describes the impact a few years of heavy rainfall would have on commodity prices?
- Crops would enjoy a longer planting season, and commodity prices would go down. - - Planting would be delayed, resulting in crop shortages, and commodity prices would rise.
- Crops would increase due to additional rainfall, and commodity prices would go down. - Planting would be delayed, limiting farmers’ risks, and commodity prices would rise.
Answer:
Crops would enjoy a longer planting season, and commodity prices would go down
Explanation:
Answer:
c
Explanation:
If the balance in the account 7 months after the final deposit is $8, 000, how large is each deposit?
Answer:
the first part of the question is missing:
Suppose that you make a sequence of 31 equal monthly deposits into an account paying a nominal rate of 6.7% convertible quarterly.
we need to determine the present value of the $8,000 at the moment that you stop making the monthly payments.
the effective annual interest rate = (1 + 6.7%/4)⁴ - 1 = 6.87%
the effective monthly interest rate = (1 + 6.87%)¹/¹² - 1 = 0.55523%
the value at the moment that you finish making the deposits = $8,000 / (1 + 0.0055523)⁷ = $7,695.86
now we can calculate the monthly payments using the future value of an annuity formula:
future value = monthly payment x FV annuity factor
monthly payment = future value / FV annuity factor
future value = $7,695.86FV annuity factor, 31 periods, 0.55523% = 33.72594monthly payment = $7,695.86 / 33.72594 = $228.19
According to the rational-actor model, as the benefits of an activity rise a. we should observe fewer people undertaking the activity, because when benefits rise, costs usually rise by more. b. we should observe more people undertaking the activity. c. it is hard to predict how people will react, because some people are often irrational. d. the costs will rise too. e. none of the above
Answer: b.we should observe more people undertaking the activity
Explanation:
The rational actor model follows the theory of rational choice which believes that the behavior of individual actors make up the social behavior on the society and that the individual actors are all making their own individual decisions.
It should be noted that when there's an increase in the benefits of an activity, this will lead to more people enjoying the benefit as there will be more players.
Therefore, the correct option is B
Which approach is a positive way to deal with conflicts?
Answer:
trying to evaluate the situation from all diff perspectives
One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that:A. the firm will select only all-equity financed projects.B. stockholders expropriate value from bondholders by selecting high-risk projects.C. the firm will always select the lowest-risk project available.D. bondholders expropriate value from stockholders by selecting high-risk projects.E. the firm will rank all projects and select the project which results in the highest expected firm value.
Answer: B. stockholders expropriate value from bondholders by selecting high-risk projects.
Explanation:
Bankruptcy simply means when an individual or business cannot pay back the funds that is owed to the creditor. When bankruptcy is declared by a particular business, the assets for the business are used in paying back the debt.
One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that stockholders expropriate value from bondholders by selecting high-risk projects.
Therefore, option B is the answer.
XYZ Corp issued $600,000 of 9% , 10-year bonds on June 30,2020, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If XYZ uses the effective- interest method , what is the amount of interest expense that has accrued if the accounting period ends on October 31, 2020.
a. $27,000
b. $28,125
c. $18, 750
d. $20,000
Answer:
c. $18, 750
Explanation:
The computation of the amount of interest expense i.e. accrued is shown below:
= Issued amount × yield on the bonds × given months ÷ total number of months in a year
= $562,500 × 10% × 4 months ÷ 12 months
= $18,750
The 4 months is calculated from July 1 to October 31
Hence, the correct option is c. $18,750
A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating income was:____________.
a. $420,000
b. $980,000
c. $180,000
d. $1,080,000
Answer:
A
Explanation:
Based on the fixed and variable costs, as well as the sales amount, the operating income was C. $180,000.
What was the operating income?This can be found as:
= Sales - Variable costs - Foxed costs
Solving gives:
= 1,000,000 - (40% x 1,000,000) -420,000
= 1,000,000 - 400,000 - 420,000
= $180,000
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Under the principle of lower of cost and net realizable value, when a company has 10 units of inventory A with net realizable value of $50 and a cost of $60, what is the adjustment
Answer:
Dr Cost of Goods Sold $100
Cr Inventory $100
Explanation:
Calculation for the Adjustment
Based on the information given we were told that in a situation where a company has 10 units as inventory A which include a net realizable value of the amount of $50 and a cost of the amount of $60 Under the principle of lower of cost as well as net realizable value the adjustment will be:
Dr Cost of Goods Sold $100
Cr Inventory $100
(10 units x $10 price reduction)
Calculation for price reduction
Cost $60
Realizable value $50
Price reduction $10
05. In identifying risks to then manage and control, as the portfolio
manager you are consulting organizational process assets such as:
Allison Corp. has just issued nonconvertible preferred stock (cumulative) with a par value of $20 and an annual dividend rate of 4.25%. The preferred stock is currently selling for $18.75 per share. What is the annual yield or return (r) on this preferred stock
Answer:
4.5%
Explanation:
Calculation for the annual yield or return (r) on this preferred stock
Using this formula
PVper = PMT / r
Where,
PVper =$18.75
PMT =(4.25%*$20)=0.85
Let plug in the formula
$18.75 = 0.85 / r
r = 0.045*100
r= 4.5%
Therefore the annual yield or return (r) on this preferred stock will be 4.5%
Many firms offer substantial rebates by mail or coupons for discounts at the point of sale. The people who use the rebates or coupons have ______ than the people who don't use them.
a. greater price sensitivity.
b. less price sensitivity.
c. inverted price sensitivity.
d. the same price sensitivity.
Answer:
a. greater price sensitivity.
Explanation:
Price sensitivity can be defined as a measure of the degree to which the selling price of a product affects the purchasing behavior of a customer.
This ultimately implies that, a price sensitive customer is impacted negatively by the price of a product and as such would be stuck between making the decision of whether to buy or not buy the product.
Hence, when customers are paying the bill themselves, they are likely to be more price sensitive because they are solely responsible for the payment. Therefore, it's an innate nature of human to be less sensitive to the price of goods and services when it's another person paying for them or say when sharing the cost.
In this scenario, many firms offer substantial rebates by mail or coupons for discounts at the point of sale. Thus, the people who use the rebates or coupons have greater price sensitivity than the people who don't use them.
To use an outline for writing a formal business document, what should you do after entering your bottom-line statement? O A. Move the bottom-line statement to the end of the document. OB. Write a topic sentence for every detail. O C. Enter each supporting detail from the outline on a separate line. O D. Enter each major point from the outline on a separate line.
Answer:
enter each major point from the outline on a separate line
Explanation:
Kk
Answer:
D : Enter Each Major Point From The Outline On a Separate Line
Explanation:
AP3X
pog
The allowance method that assumes a given percent of a company’s credit sales for the period is uncollectible is:___________.
a. The percent of sales method.
b. The percent of accounts receivable method.
c. The aging of accounts receivable method.
d. Direct write-off method.
e. Factoring method.
Answer:
Option A
Explanation:
In simple words, The percentage of sales method can be defined as the financial forecasting model under which all financial line items such as cost of goods sold, stock levels, and funds are expressed in the form of percentage of total sales made from a company's accounts. The analyst then used those projected sales to estimate he future values of those items.
The allowance method with the assumption that a given percent of a company’s credit sales for the period is uncollectible is: The percent of sales method.
The percent of sales method serves as financial forecasting model whereby financial line items such as costs of goods sold as well as inventory, and cash are been calculated as a percentage of sales.It usually use the assumption that particular percent of credit sales in that particular period is uncollectible .Therefore, option A is correct.
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When dealing with tangible products, consistency is usually measured in terms of:_____.
A. Features.
B. Attributes.
C. Systems.
D. Defects.
Answer:
D. Defects
Explanation:
In order to meet the unending needs and wants of consumers, to satisfactorily provide products that meets their requirements, tastes or preferences various manufacturing companies use five (5) main methods of production, and these are; labour-intensive production, mass production, batch production, capital-intensive production and job production.
Generally in Economics, the question of how goods are produced, determines how resources are combined in the production of goods.
This ultimately implies that, before a manufacturer produce its goods it determines the amount of resources that are available. These resources that are to be combined for the purpose of production of goods are entrepreneur, land, labor, and capital, which are generally referred to as the four (4) factors of production.
A tangible product refers to any product that can be physically touched by the end users or consumers such as electronic gadgets, bread, furniture, cooking utensils, etc.
When dealing with tangible products, consistency is usually measured in terms of defects. Any goods (products) manufactured by a company that is consistently devoid of defects such as broken parts or missing parts is generally considered to be of high quality and as such consumers would feel safe to use or buy such tangible products at all times.
On January 10, 2017, a man in Lebanon, Virginia, frustrated with the DMV bureaucracy, paid his DMV bill with 300,000 pennies that he carted into the DMV office in five wheelbarrows. The DMV had to count all these pennies and deposit them into the DMV bank account. After the DMV deposit and assuming a reserve requirement of 7 percent, calculate the initial change in
Answer:
the requirements are missing, so I looked for them:
a. Money supply. b. Deposits. c. Total reserves. d. Excess reserves.a. $0
the coins are part of M1 money supply already, so it will not change it.
b. $3,000.
the DMV should deposit the pennies in their account account, therefore, total bank deposits will increase by 300,000¢ /100 = $3,000
c. $3,000
since bank deposits increase by $3,000, total reserves also increase by $3,000
d. $2,790
excess reserves = total reserves - required reserve ratio = $3,000 - ($3,000 x 7%) = $2,790
Why might ranchers want to lock in a price today for their cattle by signing a six-month futures contract?
Responses
A. To be able to sell all of their cattle for a profit a year from now.
B. To be able to buy a new herd of cattle when the six months is up.
C. To be able to pay off the put option when the futures contract expires.
D. To be able to plan on a certain amount of income in the future.
Answer:
D. To be able to plan on a certain amount of income in the future.
Explanation:
Locking in price is when a seller and buyer agree on the minimum price for a transaction in the future. A locked-in price remains unchanged for the agreed period.
By lock in prices for their cattle, the ranchers have set the cattle's selling price after six months. Changes in market conditions will not affect the price. The ranchers will focus on controlling their costs to attain their target income. Locking in prices guarantees selling of stable prices, which allows them to plan of expected income.
A perfectly competitive industry consists of many identical firms, each with a long-run average total cost of LATC = 800 – 10Q + 0.1Q2 and long-run marginal cost of LMC = 800 – 20Q + 0.3Q2. In long-run equilibrium, each firm produces a quantity of ____. 50 40 30 60
Answer:
50
Explanation:
According to the question, The computation of the quantity produce is shown below:
Here we use the differentiation LRAC to zero
[tex]\frac{\partial LRATC}{\partial Q}=-10+0.2Q=0\\\\ 0.2Q=10\\\\ Q=50[/tex]
From above calculation it can be concluded that the each firm would be produced the quantity of long run equilibrium for 50
Hence, the first option is correct
In what type of business organization is each owner personally liable for all
business debts, even if the debts were created by other owners?
A. Proprietorship
B. S corporation
C. Corporation
D. Partnership
Answer:
A
Explanation:
It is the simplest form of business organization. Proprietorships have no existence apart from the owners. The liabilities associated with the business are the personal liabilities of the owner, and the business terminates upon the proprietor's death.
The transport layer adds IP addresses to data. True False
Answer:
I am sure that it's true
Answer:
false
Explanation:
i just did this lesson and guessed true it was wrong
so your corrects answer is FALSE!!!
A company issues 7% bonds with a par value of $70,000 at par on January 1. The market rate on the date of issuance was 6%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is
Answer:
the amount of cash paid as on July 1 to the bond holder is $2,450
Explanation:
The computation of the amount of cash paid as on July 1 is shown below:
= Par value × rate of interest × semi-annual basis
= $70,000 × 7% × 6 months ÷ 12 months
= $2,450
Hence, the amount of cash paid as on July 1 to the bond holder is $2,450
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Congratulations, You’re Volun-Hired!
A newly formed educational charity wants to create a website, and they have invited you in as a consultant because they don’t have a web developer and would like your advice on what sort of website will work best for their business. This charity could promote literacy in your area, or it could advocate for the promotion of music in education. You could also consider charities that educate the public about a particular interest of yours. You choose!
Identify different types of websites that would be useful for the charity and briefly explain why each is appropriate for this type of business and how each could be used effectively. Think about which coding languages or scripting languages would be necessary or best-suited for their purposes. Depending on what type of website you suggest, you will need to explain different programming languages and their purposes. For example, since you’re creating a website for a charity, you will need to take fundraising into account, right? What else should you consider?
Step 1. For this activity, you should demonstrate your understanding of the basics of web development. In doing so, identify and describe at least three different types of website and explain how and why each is suited for this charity.
3 types of websites Explanation on how and why each is suited for this charity
1.
2.
3.
Step 2. Choose at least four coding or scripting languages that could be used to build the websites and explain why these languages are suitable.
4 Coding and Scripting Languages Explanation on why languages are suitable
1.
2.
3.
4.
Please don't answer unless you know the correct answer.
Answer:
3 types of websites Explanation on how and why each is suited for this charity
1.Homepages. The homepage is your site’s main hub and serves as the face of a brand. Your homepage helps site visitors get to different areas of the site, and it can also serve as a conversion funnel. Because most people come to you through your homepage, this is where design matters most. It is suited for the charity because it can help people who struggle with getting through websites get through quick and easy.
2.Magazine websites A magazine website features articles, photos and videos that are informational and educational. This way if even a child with limited attention span went to the website could get through it.
3.Educational. usually an interactive website with educational information on any given topic. This is important because the charity is educational. It feels right that the website was informational about what the charity is and everything that it's about.
and the second part is
Step 2. Choose at least four coding or scripting languages that could be used to build the websites and explain why these languages are suitable.
4 Coding and Scripting Languages Explanation on why languages are suitable
HTML. HTML, or Hypertext Markup Language, is primarily used in the creation of the webpage skeleton. It is the most important of the three languages that this post will cover. HTML is responsible for creating the “physical” elements of the webpage. Elements such as links, text, images/video, dividers, and others are inserted into the webpage through HTML.
CSS. CSS is used to style the elements of the webpage that are created through HTML. Colors, fonts, borders, and other characteristics are all controlled through CSS.
Ruby. The Ruby language is completely object-oriented, in that everything is an object. For instance, even the most basic data types, like integers, have methods and instance variables. This provides a greater ability to use method chaining, where many lines of code can be consolidated into one. For example, if you wanted to use three different methods on a string, one way would be to write several lines of code
Explanation:
I figured that sense I finished this assignment just now that I could help you :) I hope this helps
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. *Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 545,000 units during next year, the number of units it would have to manufacture during the year would be:________
a) 492,000 units
b) 545,000 units
c) 575,000 units
d) 515,000 units
Answer: d. 515,000 units
Explanation:
If they plan to sell 545,000 units then given those beginning and ending balances of finished goods, they will have to manufacture;
= Sales + Ending balance - Beginning balance
= 545,000 + 63,000 - 93,000
= 515,000 units
Your company experienced 20% percent turnover last year. This means 20 percent of people employed at the beginning of the year were terminated or no longer employed by the year’s end. You know that a year from now you will need to have 40 more people in your company to keep up with increasing customer demand. How many employees should you plan on hiring, assuming turnover remains constant?
Answer:
48
Explanation:
Employee turnover is the rate at which employees leave a company, whether voluntary or involuntary.
In this company, 20 percent of employees leave every year.
If the company intends to have 40 more workers, it should plan to hire the 40 plus an extra 20 percent.
The company should hire 40 plus 20% of 40
=40 + (20/100 x 40)
=40 +(0.2 x40)
=40 +8
=48
The company should hire 48 workers
For the maintenance of the employee turnover ratio of the company constant there will be a need of employing forty (40) and an additional 20% of the total employees to be hired for the same.
The firm will have to maintain the number of employees in such a way that even if the 20% employees leave the company there shall not be need to employ any such further.
The ratio of calculation of such employee turnover ratio to be kept constant will be simple. It can be calculated using the simple formula that is given below.[tex]\rm Employee\ turnover\ ratio= employees\ to\ be\ hired + additional\ percentage\ of\ employees\ to\ be\ hired[/tex]
So if we put the values in the formula we get the solution as below[tex]\rm Employees\ to\ be\ hired= 40+ (\dfrac{20}{100}\ x\ 40)[/tex]
Continuing further
[tex]\rm Employees\ to\ be\ hired= 40+ 8[/tex]
[tex]\rm Employees\ to\ be\ hired= 48[/tex]
So the number of employees to be hired for maintaining the turnover ratio to be constant the firm will have to hire 48 in total.Hence, the correct number of employees to be hired for the maintenance of the ratio, the firm will have to employ 48 employees and 8 employees in addition to the 40 employees required each year.
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Macroeconomic is the branch of economics that focuses on ?
Answer:
economic principles affecting entire countries
Explanation:
A car's price is currently $20,000 and is expected to rise by 4% a year. If the interest rate is 6%, how much do you need to put aside today to buy the car one year from now
Answer:
the amount need to put aside is $19,623
Explanation:
The computation of the amount need to put aside is shown below;
= (Current car price × (1 + expected rise percentage)) ÷ (1 + rate of interest)
= ($20,000 × 1.04) ÷ 1.06
= $19,623
hence, the amount need to put aside is $19,623
We simply applied the above formula so that the correct value could come
And, the same is to be considered
The scatter plot shows the balance of a loan over the course of two years. Assuming the line of best fit for the given scatterplot is
y=-353.71x + 18,075, after how many months will the balance of the loan reach $0?
The time that it is going to take for the scatter plot to reach zero dollars is 51 months.
How to solve for the period using the line of best fit.
y=y=-353.71x + 18,075,
We have to set x to be 51
When x is 51,
We have y = -353.71 * 51 + 18,075
Hence at this period the answer would 0
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Answer: D. 51 months
A.
32 months
B.
35 months
C.
47 months
D.
51 months
E.
63 months
Explanation: plato answer
A person who offers a bribe to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a(n)
Answer:
utilitarian
Explanation:
Utilitarian ethics or utilitarianism is a type of moral ethic code that judges actions only based on the final results. In this case, only the outcome matters, the road used to get there doesn't.
Personally, I do not share this philosophy because a person who needs a transplant could just get out and kill someone else just to get some organ. The final outcome is that they live, which is great for them, but they did something bad to reach that outcome.
A manufacturing company incurs direct materials costs of $6 per unit. The total direct materials cost is______when the company manufactures 2,000 units.
Answer:
$12,000
Explanation:
The manufacturing company has a direct materials cost of $6
The company manufactures 2,000 unit
Therefore total direct material cost can be calculated as follows
= 2,000×6
= $12,000
Hence the total direct material cost of $12,000
Crane Corporation had net income of $2040000 and paid dividends to common stockholders of $303000 in 2017. The weighted average number of shares outstanding in 2017 was 510000 shares. Crane Corporation's common stock is selling for $36 per share on the NASDAQ. Crane Corporation's price-earnings ratio is
Answer:
9 times
Explanation:
The computation of price earning ratio is as seen below;
Earning per share = Net income ÷ Weighted average outstanding shares
= $2,040,000 ÷ 510,000
= 4
Price earning per share = Market price per share ÷ Earning per share
= $36 ÷ 4
= 9 times
Therefore, Crane Corporation's price earning ratio is 9 times
