Answer:
53.09
Explanation:
The price/earnings ratio of common stock is an investment ratio that compares the current price of the stock to its earnings per share, in a bid to assess the stock performance relative to its earnings
share price=$60
earnings per share=net income/year-end shares outstanding
net income=$260,000
year-end outstanding shares=230,000
earnings per share=$260,000/230,000
earnings per share=$1.13
price/earningsratio=$60/$1.13
price/earningsratio=53.09
A minimum acceptable rate of return for an investment decision is called the: Multiple Choice Internal rate of return. Average rate of return. Hurdle rate of return. Maximum rate of return. Payback rate of return.
Answer:
Hurdle rate of return.
Explanation:
A hurdle rate can be regarded as minimum rate of return that is been required by an investor or manager
on a particular project or investment.
The hurdle rate gives the description of the appropriate compensation as regards level of risk present. There are
higher hurdle rates associated with riskier projects.
It should be noted that A minimum acceptable rate of return for an investment decision is called the Hurdle rate of return.
Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Flannigan Company management targets an annual pre-tax income of $1,125,000. Compute the unit sales to earn the target pre-tax net income.
a. 4,333.
b. 7,500.
c. 6,650.
d. 13,300.
e. 11,750.
Answer:
Break-even point in units= 13,300
Explanation:
Giving the following information:
Unitary selling price= $450
Fixed cost= $870,000
Unitary variable cost= $300
Desired profit= $1,125,000
To calculate the units to be sold, we need to use the break-even point with desired profit:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (870,000 + 1,125,000) / (450 - 300)
Break-even point in units= 13,300
During a conversation with the credit manager, one of Tabor's sales representatives learns that a $1,234 receivable from a bankrupt customer has not been written off but was considered in the determination of the appropriate year-end balance of the Allowance for Bad Debts account balance. What is the effect of write-off on 2013 net income
Answer:
The answer is "No Effect ".
Explanation:
In the situation wherein the write-off would not affect the 2019 net earnings, the write-off reduces that both debt accounts as well as the benefit counter-asset for similar quantities. Whenever an expenditure was recognized, net revenues were affected, therefore, there will be nothing to write off under the allowance approach, so the response is no effect.
Franchising can be a beneficial way for entrepreneurs to get a head start in launching their own businesses since they do not have to pay the franchisor royalties after buying the franchise. true or false
Answer:
false
Explanation:
A franchise provides entrepreneurs with a shortcut way of starting a business without necessarily beginning from the scratch.
The entrepreneur is free to leverage on the trademark and the customer base of the franchisor. This eliminates part of the risk associated with starting an entirely new business.
However, the franchisee continues to pay royalty to the franchisor which makes the franchise arrangement quite expensive.
Suppose the dividends for the Seger Corporation over the past six years were $1.42, $1.50, $1.59, $1.67, $1.77, and $1.82, respectively. Assume that the historical average growth rate will remain the same for 2020. Compute the expected share price at the end of 2020 using the perpetual growth method. Assume the market risk premium is 13.5 percent, Treasury bills yield 4.5 percent, and the projected beta of the firm is .75.
Answer:
$20.05
Explanation:
Calculating the required rate using CAMP Model
Required rate = Risk free rate + Beta*Market risk premium
Required rate = 4.5% + 0.75*13.5%
Required rate = 4.5% + 10.13%
Required rate = 14.63%
Calculating the growth rate using Future value method
Future value = Present value * (1+r)^n
r = [tex]n\sqrt{Future value/Present value }[/tex] - 1
r = [tex]5\sqrt{$1.82/$1.42}[/tex] - 1
r = 1.05088842546 - 1
r = 0.05089
r = 5.09%
Stock price = Last year dividend * (1 + Growth rate) / (Required rate - Growth rate)
Stock price = $1.82 * (1+0.05089) / (0.1463-0.05089)
Stock price = $1.82*1.05089 / 0.09541
Stock price = $1.9126198 / 0.09541
Stock price = $20.04632428466618
Stock price = $20.05
So, the expected share price at the end of 2020 using the perpetual growth method is $20.05.
Why would a firm that incurs losses choose to produce rather than shut down? In a perfectly competitive industry, if a firm is incurring losses, then it might choose to produce in the short run because A. is greater than , resulting in profit in the long run. B. is greater than , resulting in smaller losses than would result from shutting down. C. variable costs are greater than fixed costs, resulting in smaller losses than would result from shutting down. D. zero in the long run, resulting in profit in the long run. E. is greater than , resulting in smaller losses than would result from shutting down.
Answer:
E. price is greater than , resulting in smaller losses than would result from shutting down
Explanation:
The firm incurred losses and select to generate instead of shutting down as in the perfect competifive market if a firm has the loss so it produce in the short run because here the price should be more than due to which it result in less losses as compared to the losses at the time of shutting down
So as per the given situation, the option e is correct
Carmichael Inc. has a beginning balance in Accounts Receivable of $100,000 at June 1. On June 24, Carmichael sells $20,000 of merchandise to K. Low, terms 2/10, n/30. Assuming just this one transaction occurred, what is the ending balance in Accounts Receivable at June 30 under the gross method
Answer:
$120,000
Explanation:
Particulars Amount
Beginning balance in accounts receivables A/C $100,000
Add: Credit sales $20,000
Ending balance in accounts receivables A/C $120,000
The first three cars I bought all fell apart around 50,000 miles. It was called planned obsolescence and no one seemed to care until companies entered the market that promised 70,000, then 80,000, and finally 100,000 warranties. What sets a great car apart from a good one now is not the quality, which is assumed, but performance, safety and fuel economy. A car that can achieve all three is highly sought after. In the automotive market, performance, safety and fuel economy are sterling examples of:________.
A) order winners.
B) the voice of the engineer.
C) order qualifiers.
D) the voice of the customer.
Answer:
A)order winners.
Explanation:
Order winners can be regarded as competitive advantages, these advantages could be product design,
delivery speed, as well as reliability and image that influence the customers of that firm in selection of
products or services if that firm. It can be regarded as the reason that draw customers to purchase the product of a company. It should be noted that ability of a company to win orders on the market can be attributed to the company competitiveness.
The federal deficit fell from $1,300 billion in 2011 to $1,087 billion in 2012. How much of this change was due to
Answer:
Dear Student,
I trust that this meets you well.
The question requires additional details for it to be answered.
Kindly provide the same as soon as you can.
Cheers
Hellppp ASAP please I need help with business I have another question to
Answer:
Well what are the options
Preparation of the statement of cash flows does not involve: Select one: a. Computing the net increase or decrease in cash. b. Computing and reporting net cash provided or used by operations. c. Computing the profit compared to the net increase or decrease in cash. d. Computing and reporting net cash provided or used by financing activities. e. Computing and reporting net cash provided or used by investing activities.
Answer:
c. Computing the profit compared to the net increase or decrease in cash.
Explanation:
In a typical cash flow statements, the company's activities are divided into 3 sections that are recognized in the cash flow statements.
These are operating activities, investing activities and financing activities.
Operating activities includes cash inflow/outflow as a result of changes to inventory, payables and receivables.
Investing activities includes cash inflow/outflow from the disposal/acquisition of assets while financing includes cash inflow/outflow from the sale of shares.
Hence the only option not involved in the preparation of the statement of cash flows is computing the profit compared to the net increase or decrease in cash.
one characteristic that has allowed the US economy to change the mix of output in response to customer demand is
Answer:
The ease with which resources move from one industry to another.
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Basically, there are four (4) main types of economy and these are;
I. Mixed economy.
II. Command economy.
III. Traditional economy.
IV. Pure capitalism economy.
Pure capitalism also referred to as free-enterprise system or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a pure capitalism is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.
Simply stated, a pure capitalism is a type of economy that is completely driven by demand and supply of goods and services.
Hence, a characteristic that has allowed the economy of the United States of America to change the mix of output in response to customer demand is the ease with which resources move from one industry to another due to pure capitalism or its free-enterprise system.
Zoe Corporation has the following information for the month of March:Purchases $92,000Materials inventory, March 1 6,000Materials inventory, March 31 8,000Direct labor 25,000Factory overhead 37,000Work in process inventory, March 1 22,000Work in process inventory, March 31 23,500Finished goods inventory, March 1 21,000Finished goods inventory, March 31 30,000Sales 257,000Selling and administrative expenses 79,000Prepare a schedule of cost of goods manufactured. Enter all amounts as positive numbers."
Answer:
cost of goods manufactured= $150,500
Explanation:
Giving the following information:
Purchases $92,000
Materials inventory, March 1 6,000
Materials inventory, March 31 8,000
Direct labor 25,000
Factory overhead 37,000
Work in process inventory, March 1 22,000
Work in process inventory, March 31 23,500
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 22,000 + (6,000 + 92,000 - 8,000) + 25,000 + 37,000 - 23,500
cost of goods manufactured= $150,500
Hailey Corporation pays a constant $9.45 dividend on its stock. The company will maintain this dividend for the next 13 years and will then cease paying dividends forever. If the required return on this stock is 10.7 percent, what is the current share price?
Answer:
$64.76
Explanation:
The current share price can be determined by calculating the present value of the dividend
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow from year 1 to 13 = 9.45
I = 10.7
PV = 64.76
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
A company's direction, objectives, and strategy Group of answer choices are set in stone as the end of the planning process. never have to be revisited, even if time pressures or internal conditions warrant. are insulated from disruptive changes that a company might experience in its external environment. are never final, as managing strategy is an on-going, dynamic process. are primarily a now-and-then task.
Answer:
are never final, as managing strategy is an on-going, dynamic process.
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;
I. Value.
II. Vision.
III. Mission.
Hence, a company's direction, objectives, and strategy are never final because managing strategy is a continuum or an on-going, dynamic process. Thus, it's never a now and then task.
MC Qu. 99 The Work in Process Inventory account... The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $5,220 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,200 and direct labor cost of $1,000. Therefore, the company's overhead application rate is:
Answer:
202%
Explanation:
Calculation to determine what the company's overhead application rate is
First step is to calculate the Total manufacturing overhead using this formula
Total manufacturing overhead = Overhead rate - Direct material cost - Direct labor cost
Let plug in the formula
Total manufacturing overhead =5220 - 2,200 - 1000
Total manufacturing overhead =2020
Now let determine the overhead application rate using this formula
Overhead application rate=Total manufacturing overhead/Direct labor cost
Let plug in the formula
Overhead application rate=2020/1000*100
Overhead application rate=202%
Therefore, the company's overhead application rate is:202%
Madeline is an interior designer. When she chooses a new color for her client's walls, she always checks the swatch against different colored objects in the room. Madeline is aware of how colors change because of:
Answer:
relative luminance
Explanation:
From the question we are informed about Madeline who is an interior designer. When she chooses a new color for her client's walls, she always checks the swatch against different colored objects in the room. Madeline in this case, is aware of how colors change because of relative luminance.
Relative luminance can as well be regarded as Perceptual constancy, This can be explained as amount of light that can be reflected by an objects on its surroundings. Perceptual constancy is one that visualize familiar objects as one having a consistent color, even though a case whereby light changes the court arises. Relative luminance can be regarded as one that goes in same way as photometric definition of luminance, here Relative luminance has normalized values of 1 or 100 with respect to reference white.
If the Federal Reserve buys $8,500 worth of securities from non-bank public, and the non-bank public then keeps the payment from the bank as cash, then
a: R increases by $8,500 and the MB rises by $8,500
b: C and R both increase by $8,500, and the MB does not change
c: C increases by $8,500 and the MB increases by $8,500
d: C increases by $8,500 and the MB does not change
Answer:
c: C increases by $8,500 and the MB increases by $8,500
Explanation:
If the Federal Reserve buys $8,500 in securities from non-bank public and then payment is kept from the bank in form of cash, theC increases by $8,500 and the MB increases by $8,500
EMAAR Co. wants to sell an electrical generator for AED 165,000 in 2024. The price of this generator in the market today is AED 94,000 (according to GE company who is the producer of this generator). If the discount rate on this generator is 9.5 percent per year.
1. Do you think the firm will make a profit if they sell this generator? (3 marks)
Answer:
If they sell this generator, the firm will make profit of "20,769.036". A further solution is provided below.
Explanation:
According to the question,
The present value of generator will be:
= [tex]\frac{FV}{(1+r)^n}[/tex]
= [tex]\frac{165000}{(1+0.095)^4}[/tex]
= [tex]\frac{165000}{(1.095)^4}[/tex]
= [tex]\frac{165000}{1.43767}[/tex]
= [tex]114,769.036[/tex]
hence,
The profit will be:
= [tex]114,796.036-94000[/tex]
= [tex]20,769.036[/tex]
Bond Company uses a plantwide overhead rate with direct labor hours as the allocation base. Use the following information to solve for the amount of direct labor hours estimated per unit of product G2.
Direct material cost per unit of G2 $13
Total estimated manufacturing overhead $312,000
Total cost per unit of G2 $28
Total estimated direct labor hours 156,000 DLH
Direct labor cost per unit of G2 $4.85
a. 5.08 DLH per unit of G2.
b. 17.85 DLH per unit of G2.
c. 8.60 DLH per unit of G2.
d. 0.52 DLH per unit of G2.
e. 2.00 DLH per unit of G2.
Answer:
a. 5.08 DLH per unit of G2.
Explanation:
The calculation is given below:
We know that
Direct material + direct labor + applied overhead = Total cost
$13 + 4.85 + x = 28
x = 28 - 13 - 4.85 1
= 10.15 overhead per unit
Now
Estimated overhead rate
= $312000 ÷ 156000
= 2.0
So, the Direct labor hours per unit is
= 10.15 ÷ 2
= 5.08
MC Qu. 84 Henderson Co. has fixed costs of... Henderson Co. has fixed costs of $32,000 and a contribution margin ratio of 25%. If expected sales are $200,000, what is the margin of safety as a percent of sales
Answer:
Margin of safety ratio= 0.36
Explanation:
Giving the following information:
Fixed costs= $32,000
Contribution margin ratio= 25%
Expected sales= $200,000
First, we need to calculate the break-even point in dollars:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 32,000 / 0.25
Break-even point (dollars)= $128,000
Now, the margin of safety ratio:
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= (200,000 - 128,000) / 200,000
Margin of safety ratio= 0.36
Traditional project management focuses on thorough planning up front. Such planning requires ____. Multiple Choice predictability All of these alternatives are correct a planning schedule a planning budget thoroughness
Answer:
Traditional project management focuses on thorough planning up front. Such planning requires ____.
All of these alternatives are correct
Explanation:
Traditional project management requires processes to occur in a predictable manner. Such an approach follows an upfront planned set of stages based on the assumption that the requirements for each project will remain fixed while the budget and project timeline can alter according to user requirements and prevailing circumstances. It lacks agility but requires thorough upfront planning.
The traditional project management focuses on mainly on thorough planning up front and requires high predictability.
The traditional project management entails an approach which works for most environments.
The Traditional project management refers to the process of planning, executing and controlling of set of tasks to arrive at the desired goal under a budget The traditional project management focuses on mainly on thorough planning up front and requires high predictability.Therefore, the Option A is correct.
Read more about traditional project management:
brainly.com/question/14318704
1. A cash reserve of 15% on deposit and customers deposit $150.000 in the bank, show the
bank balance sheet and calculate money creation multiplier
Answer:
Please check the attached image for an image of the balance sheet of the bank
money multiplier money creation : $1,000,000
Explanation:
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
$150,000 x 0.15 = $22,500
The amount of loan that the bank can grant = deposits - reserves
$150,000 - $22,500 = $127,500
Money multiplier = amount deposited / reserve requirement
$150,000 / 0.15 = $1,000,000
A producer of fixed proportion goods X and Y ( Q = QX = QY) has marginal costs and revenues of MC = 12 Q, MRX = 54 – 6 QX, MRY = 126 – 12 QY . The producer should produce how many units?
Answer:
A producer of fixed proportion goods X and Y ( Q = QX = QY) has marginal costs and revenues of MC = 12 Q , MRX = 54 – 6 QX , MRY = 126 – 12 QY . The producer should produce how …
Cheese Mart LLC sells cheese to Pizza Palace for $1,500. Pizza Palace uses the cheese to make pizzas, selling them to consumers for a total of $9,000. These transactions contribute ________ to the gross domestic product (GDP).
Answer: $9000
Explanation:
The gross domestic product (GDP) is the final value of the goods that are produced in an economy. In this case, we are only interested in the final value which is the $9000.
It should be noted that when Cheese Mart LLC sells cheese to Pizza Palace for $1,500, this is an intermediate good and should not be counted when calculating the GDP.
Paul’s Pizza Parlor bakes pizza pies according to Q = 3 L – 0.3 L 2. If labor costs $6 and pizza sells for $10, the optimal amount of labor is:
Answer: 4 units of labor
Explanation:
Optimum amount of labor occurs where marginal revenue equals marginal cost which means:
Marginal revenue product = Cost of labor
Marginal revenue product = Marginal product of labor * Prize of pizza
Marginal product of labor = differentiation of Q
= dQ/dL
= d(3L - 0.3L²)
= 3 - 0.6L
Marginal revenue product = (3 - 0.6L) * 10
= 30 - 6L
Marginal revenue product = Cost of labor
30 - 6L = 6
30 - 6 = 6L
L = 24/6
= 4 units of labor
Jon Brooks quit his job in a bicycle shop, where he earned $15,000 per year, to become a graduate student in economics. At the university he attended, he spent $2,000 on books, $1,000 on cough medicine, and earned $12,000 as an economics teaching-assistant. What were Jon's economic costs while attending college?a. $18,000.b. $15,000.c. $6,000.d. $3,000.
Answer: a. $18,000
Explanation:
Economic costs are the sum of opportunity costs and accounting costs incurred when the next best alternative is not followed.
In this case, the opportunity costs are the salary that Jon Brooks foregoes and the actual costs are the cost on books and cough medicine.
Economic costs will therefore be:
= 15,000 + 2,000 + 1,000
= $18,000
A refiner produces heating fuel and gasoline from crude oil in virtually fixed proportions. What can you say about economies of scope for such a firm? What is the sign of its measure of economies of scope, SC?
Answer:
The cost benefits of simultaneous manufacturing do not exist and there are thus no economies as well as range disadvantages. A further explanation is provided below.
Explanation:
Scope savings are environmental impacts if a variety of commodities are produced collectively when producing these commodities collaboratively is far less costly than individually.Throughout this case, the manufacturer can create two items from the main resource although manufacturing takes place in some kind of a set proportion. Therefore includes the amount of production is identical to the expenditure of combined production of the products.Thus the above is the appropriate solution.
If the expected returns of two stocks are the same but the standard deviations of the returns differ, which security is to be preferred
Simple organizational structures often exhibit low levels of formalization and specialization. Which of the following is not a benefit of employing a simple organizational structure?
a. being able to easily and quickly coordinate and communicate within the firm
b. not having the need for sophisticated information technology/management systems
c. employing specialists that can develop deep knowledge/expertise in their field
Answer:
The answer is "Option c"
Explanation:
As in simplistic organizational structures, formalization and competence often are low. It is a lack of a simple organizational structure for engaging specialists who've been able to develop everyone's knowledge/expertise in such a wide field. That implies all the advantages are simple organizational architectures.
