Answer:
Hannah Co.
The debit to Retained Earnings will be:
$44,000
Explanation:
Common Stock outstanding = 10,000 shares of $10 par
With a 10% stock dividend, the outstanding shares increase to 11,000 (10,000 x 1.1).
The cash dividend per share = $4
Total cash dividend equals $44,000 ($4 x 11,000).
So the Retained Earnings will be debited to the sum of $44,000 following the cash dividend to reduce the Retained Earnings account by $44,000.
Previous Question Question 5 of 20 Next Question Which of the following items represents the net income/(loss) for the year? The difference between the revenues/gains and expenses/losses. The difference between the cash receipts and payments. The difference between the funds raised by stock issuance and the dividends paid. The difference between the net increase in assets and in liabilities.
Answer:
Option A. The difference between the revenues/gains and expenses/losses
Explanation:
The net income of an organization is the net value received by taking the difference of all the income earned and the losses borned by the organization.
Mathematically,
Net Income = Revenue - Expenses
It can be also calculated as under:
Net Income = Gains - Losses
The required investment cost of a new, large shopping center is $49 million. The salvage value of the project is estimated to be $20 million (the value of the land). The project's life is 15 years and the annual operating expenses are estimated to be $14 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture?
Answer:
The minimum annual revenue is 22.38 million.
Explanation:
Let the minimum annual revenue = X
Therefore,
The present value of cash inflows = Present value of cash outflows
X (P/A,15%,15) + 20 (P/F,15%,15)= 49*1 + 14(P/A,15%,15)
Now look into the annuity table or compound interest factor table and use that values to solve the equation.
X(5.847) + 20 (0.1229) = 49 + 14 (5.847)
X(5.847) = 130.858
X = 130.858 / 5.847
X = 22.38 millions
The minimum annual revenue = 22.38 million.
Which of the following statements about executing and evaluating the promotion program is most accurate?
a. Although there are five elements in the promotional mix, the only element that reallybenefits from an IMC audit is advertising.
b. Most IMC programs have no difficulty creating a pretest, but posttests are much moredifficult to construct since a number of unknown elements must be measured.
c. To fully benefit from IMC programs, companies must create and maintain a test-resultdatabase that allows comparisons of the relative impact of the promotional tools and theirexecution options in varying situations.
d. The ideal IMC program does not need any evaluation if it is executed according to plan.E. The most effective IMC audits are external. Internal audits tend to skew results to fitexpectations.
Answer: To fully benefit from IMC programs, companies must create and maintain a test-resultdatabase that allows comparisons of the relative impact of the promotional tools and their execution options in varying situations.
Explanation:
Out of the statements about executing and evaluating the promotion program that were given in the question, the option that is most accurate is that to fully benefit from IMC programs, companies must create and maintain a test-result database that allows comparisons of the relative impact of the promotional tools and their execution options in varying situations.
Therefore, option C is the correct answer.
Alexander has been accepted as a freshman at a college two hundred miles from his home for the fall semester. Alexander's wealthy uncle, Michael, decides to give Alexander a car for Christmas. In November, Michael makes a contract with Jackson Auto Sales to purchase a new car for $18,000 to be delivered to Alexander just before the Christmas holidays, in mid-December. The title to the car is to be in Alexander's name. Michael pays the full purchase price, calls Alexander and tells him about the gift, and takes off for a six-month vacation in Europe. Is Alexander an intended third party beneficiary of the contract between Michael and Jackson Auto Sales
Answer:
Yes.
Alexander is an intended third party beneficiary of the contract between Michael and Jackson Auto Sales.
Explanation:
In the law of contracts, Alexander becomes a third-party beneficiary of the contract between Michael and Jackson Auto Sales, and he has the right to sue in the contract notwithstanding that he was not an active party to the contract. Some of the factors that may be present to show that a Alexander is an intended beneficiary are: (1) the contract's performance is rendered directly to Alexander; (2) Alexander has rights to control the details of the performance; or (3) there is an express designation in the contract, e.g. the title to the car is in Alexander's name.
The budgeted conversion costs for a just-in-time cell are $244,720 for 3,800 production hours. Each unit produced by the cell requires 45 minutes of cell process time. During the month, 2,100 units are manufactured in the cell. The estimated materials cost is $50 per unit. What would be the journal entry to record the materials purchased on account to produce 2,200 units
Answer: Debit to Raw and In Process Inventory $ 110,000
Credit to Accounts Payable $ 110,000
Explanation:
Budgeted Conversion Cost = $ 244,720
Total Production hours = 3,800 hours
Material cost per unit = $ 50 per unit
Material purchase for 2,200units (50 x 2,200) = $ 110,000
Journal to record purchase of raw material for 2200 units at $50
Accounts title and explanation Debit Credit
Raw and In process Inventory $ 110,000
Accounts Payable $110,000
The risk-free rate is 2.3 percent and the market expected return is 12 percent. What is the expected return of a stock that has a beta of .87?
Answer:
The expected return = 10.739.
Explanation:
Given risk-free rate of return = 2.3 per cent
Market expected return = 12 percent
The value of beta = 0.87
Use the below formula to find the expected return.
The expected return = Risk free rate of return + Beta × (Market expected return - risk free rate of return)
The expected return = 2.3 + 0.87 (12 – 2.3)
The expected return = 10.739
Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2015 for $55 per bond and classified the investment as securities available for sale. The value of the Diamond investment was $85 per bond on December 31, 2016, and $97 on December 31, 2017. During 2018, Hawk sold all of its Diamond investment at $147 per bond. In its 2018 income statement, Hawk would report:_________.
Answer:
Gain of $920,000
Explanation:
Calculation for what Hawk would report In its 2018 income statement.
First step is the adjustment of Hawk accumulation of unrealized holding gain and fair value for 205-2017
Unrealized holding gain and fair value Adjustment=($97- 55) × 10,000 shares
Unrealized holding gain and fair value Adjustment=$42×10,000 shares
Unrealized holding gain and fair value Adjustment= $420,000
Second step is to find the additional increase that occurred in 2018
Additional increase=($147-$97)×10,000 shares
Additional increase=50×10,000 shares
Additional increase =$500,000
Last step is to find the total gain realized in the income statement
Total gain realized=$500,000+$420,000
Total gain realized=$920,000
Therefore what Hawk would report In its 2018 income statement will be a gain of $920,000
Firm M has a margin of 7%, turnover of 2.0, sales of $910,000, and average stockholders' equity of $490,000. Required: Calculate Firm M’s average total assets, net income, return on investment (ROI), and return on equity (ROE
Answer:
1. Average total asset = $455,000
2. Net income = $63,700
3. Return on investment = 14%
4. Return on equity (ROE) = 13%
Explanation:
These can be calculated as follows:
1. Average total asset
To calculate this, we use the formula for calculating the Asset turnover ratio as follows:
Asset turnover ratio = Sales / Average total asset ……………………………… (1)
Where;
Turnover = asset turnover ratio = 2
Sales = $910,000
Average total asset = ?
Substituting the values into equation (1) and solve for average total asset, we have:
2 = $910,000 / Average total asset
Average total asset = $910,000 / 2
Average total asset = $455,000
2. Net income
To calculate this, we use the formula for calculating net income margin as follows:
Net income margin = Net income / Sales ……………………………………. (2)
Where,
Margin = Net income margin = 7%, or 0.07
Net income = ?
Sales = $910,000
Substituting the values into equation (2) and solve for net income, we have:
7% = Net income / $910,000
Net income = $910,000 * 7%
Net income = $63,700
3. Return on investment
To calculate this, we use the formula for calculating the return on investment as follows:
Return on investment = Net income / Average total assets ……………… (3)
Where;
Net income = $63,700
Average total asset = $455,000
Substituting the values into equation (3), we have:
Return on investment = $63,700 / $455,000
Return on investment = 0.14, or 14%
4. Return on equity (ROE)
To calculate this, we use the formula for calculating the return on equity (ROE) as follows:
Return on equity (ROE) = Net income / Average stockholders' equity…….. (4)
Net income = $63,700
Average stockholders' equity = $490,000
Substituting the values into equation (4), we have:
Return on equity (ROE) = $63,700 / $490,000
Return on equity (ROE) = 0.13, or 13%
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15 % 32 % Bond fund (B) 9 % 23 % The correlation between the fund returns is 0.15. What is the Sharpe ratio of the best feasible CAL?
Answer:
0.296875
Explanation:
Given the following :
Probability distribution of risky funds :
- - - - - - - - - - - - - - stock fund(S) - - bond fund(B)
Expected return - - - 15% - - - - - - - - - - 9%
Std - - - - - - - - - - - - - 32% - - - - - - - - - - 23%
Correlation between funds return = 0.15
Sure rate = 5.5%
To calculate the Sharpe ratio we use the formula :
Sharpe Ratio = (Expected Return of Investment - Risk Free Rate) / Standard Deviation of excess return of investment
For the stock fund :
Expected return = 15%
Risk free rate = market sure rate = 5.5%
Standard deviation = 32%
Sharpe ratio of stock fund :
(15% - 5.5%) / 32%
= 9.5% / 32%
= 0.296875
For Bond fund :
Expected return = 9%
Risk free rate = market sure rate = 5.5%
Standard deviation = 23%
Sharpe ratio of bond fund :
(9% - 5.5%) / 23%
= 3.5% / 23%
= 0.1521739
Therefore the Sharpe ratio of the best feasible CAL is the higher of the two ratios which is 0.296875
Bland Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2003, and charged the $4,200 premium to Insurance expense. At its December 31, 2003, year-end, Bland Foods would record which of the following adjusting entries?A) Insurance expense 875 Prepaid insurance 875
B) Prepaid insurance 875 Insurance expense 875
C) Insurance expense 875
Prepaid insurance 3,325
Insurance payable 4,200
D) Prepaid insurance 3,325
Insurance expense 3,325
Answer:
D) Prepaid insurance 3,325
Insurance expense 3,325
Explanation:
insurance cost per month = $4,200 / 24 months = $175 per month
August, September, October, November and December = 5 months = $875
$4,200 - $875 = $3,325
The correct journal entries should have been:
August 1, 2003, purchased 2 year insurance policy
Dr Prepaid insurance 4,200
Cr Cash 4,200
December 31, 2003, accrued insurance expense
Dr Insurance expense 875
Cr Prepaid insurance 875
But, since the purchase was incorrectly journalized as:
Dr Insurance expense 4,200
Cr Cash 4,200
the adjusting entry must be:
Dr Prepaid insurance 3,325
Cr insurance expense 3,325
Gilley Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% convertible bonds outstanding during 2015. The preferred stock is convertible into 40,000 shares of common stock. During 2015, Gilley paid dividends of $.90 per share on the common stock and $3.00 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2015 was $600,000 and the income tax rate was 30%.
Diluted earnings per share for 2015 is:_____________ (rounded to the nearest penny)
Answer:
Gilley Co.
Diluted earnings per share for 2015 is:_____________ $1.68
Explanation:
a) Data and Calculations:
Number of common stock shares = 200,000
Number of convertible preferred = 40,000
Number of convertible bonds = 45,000 ($1,000,000/$1,000 x 45)
Total shares = 285,000
Earnings = $600,000
Income tax (180,000)
Net Income $420,000
Plus preferred dividend = $60,000
Adjusted net income = $480,000
EPS = $480,000/285,000
= $1.68
b) After deducting income tax expense to arrive at the income after tax, then add the dividends of preferred stockholders before arriving at the adjusted net income for computing the earnings per share.
A 20-year-old woman wants to purchase a $100,000 one-year life insurance policy. What should the insurance company charge the woman for the policy if it wants an expected profit of $50?
Answer:
Hello some parts of the question is missing here is the missing part
Age probability of female death
20 0.00060
30 0.00070
40 0.00095
50 0.00300
Answer : $110
Explanation:
Given that the woman is 20 years of age and wants to buy one-year life insurance policy the insurance company would have to charge her considering the probability of female death within 20 years of age
expected profit for insurance company = $50
cost of insurance = $100000
For the company to make a profit of $50 we make use of this relation
x * ( 1 - probability of female death at 20 ) - ( cost of insurance - x ) * probability of female death at 20 = 50
= x *( 1 - 0.00060 ) - ( 100000 - x ) * 0.00060 = 50
= x* ( 0.9994 ) - (60 - 0.00060 x ) = 50
= 0.9994 x - 60 + 0.00060 x = 50
hence x = 50 + 60 = $110
A firm recently reported EBITDA of $3.95 million, depreciation of $1.20 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totaled $1.2 million. How much was its free cash flow, in millions
Answer:
Free cash flow=$2.37
Explanation:
Calculation for how much was its free cash flow, in millions
Using this formula
Free cash flow =[ (Operating income * (1- tax rate) + Depreciation- Expenditures on fixed assets and net operating working capital]
Where,
Operating income =$3.95
(1- tax rate) = (1 - .40)
Depreciation=$1.20
Expenditures on fixed assets and net operating working capital=$1.2
Let plug in the formula
Free cash flow = [($3.95 * (1 - .40) + $1.20 - $1.2]
Free cash flow=$3.95*0.60+$1.20-$1.2
Free cash flow=$2.37+$1.20-$1.2
Free cash flow=$3.57-$1.2
Free cash flow=$2.37
Therefore the amount of its free cash flow, in millions will be $2.37
The Herfindahl-Hirschman Index (HHI) is a mathematical approach to understanding market concentration that provides a single concentration indicator. What is the HHI for an industry characterized by the below noted data?Firm 1 has a market share of 40%Firm 2 has a market share of 20%Firm 3 has a market share of 15%Firm 4 has a market share of 15%Firm 5 has a market share of 10%HHI=___
Answer:
2550
Explanation:
The HHI is calculated by squaring the market share of each firm in the industry.
40² + 20² + 15² + 15² + 10² = 1600 + 400 + 225 + 225 + 100 = 2550
Manufacturing overhead—multiple application bases Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $5.60 per machine hour, and the balance of the overhead is applied at the rate of 240% of direct labor cost.
Required:
a. Calculate the cost per unit of October production of 4,200 toy flutes that required
1. Raw materials costing $490.
2. 21 direct labor hours costing $357.
3. 36 machine hours.
b. At the end of October, 3,870 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at October, 31.
Answer:
a. $ 0.45
b. $148.50
Explanation:
Production Cost Schedule for 4,200 toy flutes
Raw materials costing $490.00
Direct Labor $357.00
Overheads ($5.60 × 36) $201.60
Overheads ($357 × 240%) $856.80
Total Cost $1,905.40
Cost per unit = Total Cost / Total Number of Units produced
= $1,905.40 / 4,200
= $ 0.45
Closing Inventory = Units Left × Cost per unit
= (4,200 - 3,870) × $ 0.45
= 330 × $ 0.45
= $148.50
Abby had a checkbook balance of $1,002.45. She paid $76.98 to the electric company and $254.34 to the water company. What is Abby’s current checkbook balance?
Answer:
$671.13
Explanation:
Abby had a checkbook balance of $1,002.45
$76.98 was paid to the electric company
$254.34 was paid to the water company
Therefore the current checkbook balance can be calculated as follows
=$1,002.45-($76.98+$254.34)
= $1,002.45-$331.32
= $671.13
Hence Abby's current checkbook balance is $671.13
The Drogon Co. just issued a dividend of $3.05 per share on its common stock. The company is expected to maintain a constant 6.3 percent growth rate in its dividends indefinitely. If the stock sells for $61 a share, what is the company’s cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
11.62%
Explanation:
Drogo corporation issued a dividend of $3.05 per share
The growth rate is 6.3%
= 6.3/100
= 0.063
The stock is sold at a price of $61 per share
The first step is to calculate the estimated dividend for the next year
= $3.05×(1+0.063)
= $3.05×(1.063)
= $3.24215
Therefore, the company's cost of equity can be calculated as follows
Po= Div1/r-g
61= 3.24215/r-0.063
r-0.063= 3.24215/61
r-0.063= 0.05315
r= 0.05315+0.063
r= 0.1162×100
r= 11.62%
Hence the company's cost of equity is 11.62%
Brian purchased two automobiles for personal use. Automobile 1 had an adjusted basis of $20,000, and automobile 2 had an adjusted basis of $10,000. In the current year, Brian sold automobile 1 for $15,000 and automobile 2 for $15,000. What gain or loss should Brian recognize on the sales of the automobiles g
Answer:
Automobile 1, Loss of $5,000
Automobile 2, Gain of $5,000
Explanation:
Calculation of gain or losses on sale of Automobile 1
Sale value of Automobile 1 $15,000
Less: Adjusted Basis of Automobile 1 $20,000
Loss on sale of Automobile 1 $5,000
Calculation of gain or losses on sale of Automobile 2
Sale value of Automobile 2 $15,000
Less: Adjusted Basis of Automobile 2 $10,000
Gain on sale of Automobile 2 $5,000
You are considering an investment in software company. The beta of software companies is 1.5. The annual risk-free rate is 2% and the annual market premium is 8%. The expected annual profit from the software subscription is $100,000 and it is expected to grow at the rate of 6% per year. What is the maximum price you are willing to pay for the company? A. $1,370,925.78 B. $1,250,000.00 C. $1,123,221.12 D. $908,153.55
Answer:
Maximum price = $ 1,325,000
Explanation:
The maximum price to be paid for the company is the present value of the annual profit discounted at the rate of return on equity.
The return on equity can be calculated using the capital asset pricing model (CAPM)
Under CAPM,
E(r)= Rf + β(Rm-Rf)
E(r)- expected return, Rf-risk-free rate , β= Beta, Rm= Return on market.
Using this model, we can work out the value of beta as follows:
Ke= ?., Rf- 2%, Rm-Rf - 8%
Ke- 2% + 1.5× (8%)= 14 %
Price for the company can now be determined using the present value of the perpetuity formula with growth as follows:
The model is represented below:
P = A ×(1+g)/ ke- g
DATA
A- 100,000
g- 6%
ke- 14%
Price = 100,000× (1.06)/(0.14-0.06)= $ 1,325,000
Maximum price = $ 1,325,000
The currency drain ratio is 0.5 of deposits and the banks' reserve ratio is 0.4. What is the money multiplier?
Answer: 1.67
Explanation:
From the question, we are informed that the currency drain ratio is 0.5 of deposits and the banks' reserve ratio is 0.4.
The money multiplier is calculated as:
(1 + the currency drain ratio)/( the reserve ratio + the currency drain ratio)
= (1 + 0.5)/(0.5 + 0.4)
= 1.5/0.9
= 1.67
Therefore, the money multiplier will be 1.67.
Rank the following investments from lowest to highest, for overall historical returns experienced by investors over long periods of time:
a. Treasury Bills
b. AAA Rated Corporate Bonds
c. Common Stocks
Answer:
Treasury BillsAAA Rated Corporate BondsCommon StocksExplanation:
Treasury Bills are considered risk-less investments. As a result the interest rate will not be adjusted for risk and will be relatively low compared to other securities. It will give the lowest return overtime here.
AAA Rated Corporate Bonds are the highest rated Corporate bonds there are. Even still, they will pay an interest rate that has a little risk premium in it which will make its returns overtime higher than a T-bill.
Common Stocks will provide the highest rate of return overtime on average simply because as well as the dividend payments that are paid to holders, the stock also has a chance of rising in value overtime which will give the holder a Capital gain as well. Something that the other 2 investments cannot give.
The Fama-French 3 factor model contains... Group of answer choices market, momentum, and liquidity risk factors none of the answers market, size, and momentum risk factors market, size, and volatility risk factors
Complete Question:
The Fama-French 3 factor model contains
Group of answer choices
A. Market, Momentum and Liquidity Risk Factors
B. None of the answers
C. Market, Size and Momentum risk factors
D. Market, Size and Volatility Risk Factors
Answer:
Hence option is none of these.
Explanation:
The Fama French 3 Model contains following three factors:
Size of FirmsBook-to-Market Values which is Value RiskExcess Return on the Market which is Market RiskIt doesn't include Liquidity risk and Momentum risk factors.
Hence none of the option is correct so we will choose "None of the answers".
You purchased a machine for $1.19 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 40%. If you sell the machine today (after three years of depreciation) for $724,000, what is your incremental cash flow from selling the machine?
Answer:
The incremental cash flow is $706,400
Explanation:
Calculation of Depreciation for 3 years
Depreciation = Cost / Useful years
= $1,190,000/7
= $170,000
Depreciation up to 3 years = $170,000 * 3
= $510,000
Calculation of Book value
Book value = Cost - Deprciation up to 3 years
= $1,190,000-$510,000
= $680,000
Profit on sale of assets = Sales value - Book value
= $724,000 - $680,000
= $44,000
Incremental Cash flow = Sales value - (Profit on sales of asset * Tax rate)
= $724,000 - $44,000 * 40%
= $724,000 - $17,600
= $706,400
Therefore, the incremental cash flow is $706,400
A stock priced at $61 has three-month calls and puts with an exercise price of $55 available. The calls have a premium of $5.28, and the puts cost $0.56. The risk-free rate is 1.1%. If the put options are mispriced, what is the profit per option assuming no transaction costs?
Answer:
The Profit per option = $1.431
Explanation:
Given that:
Current stock price S = $61
Exercise Strike price X = $55
Value of call option C = $5.28
Puts Costs = $0.56
risk-free rate = (1.1% × 3)/12
risk - free rate = 0.275%
If the put options are mispriced, what is the profit per option assuming no transaction costs
Present value of the strike price [tex]X = \dfrac{X}{(1+r)}[/tex]
[tex]X = \dfrac{55}{(1+\dfrac{0.275}{100})}[/tex]
[tex]X = \dfrac{55}{(1+0.00275)}[/tex]
[tex]X = \dfrac{55}{(1.00275)}[/tex]
X = $54.849
The formula that hold for the put option can be expressed as:
P = Present value of the strike price X + C - S
P = $(54.849 + 5.28 - 61)
P = $60.129 - $61
P = - $0.871
Thus, the put option = - $0.871
This implies that the Put option is out of cash since it is negative.
Now, The Profit per option = put costs - (- put option)
The Profit per option = 0.56 - ( - 0.871)
The Profit per option = $1.431
To reach the maximum money multiplier, it is assumed that A. there is insufficient loan demand. B. commercial banks keep excess reserves. C. loans are diverted into circulating currency. D. all loans get redeposited in a checkable and debitable account.
Answer:
D. all loans get redeposited in a checkable and debitable account.
Explanation:
The money multiplier refers to the amount i.e to be generated by the bank so that it could able to generate maximum reserves.
It is to be calculated below:
Money multiplier = 1 ÷ reserve ratio
Also it shows a direct relationship between the supply of money and the reserves
Therefore the appropriate option is d.
a project will produce cash inflows of 5400 a year for 3 years with a final cash inflow of 2400 in year 4. The projects initial cost is 13400. what is the net present value if the required rate of return is 14.2 percent?
Answer:
NPV = $505.9242271 rounded off to $505.92
Explanation:
The NPV or net present value is an important metric that is used for project and investment evaluation. The NPV is the present value of the series of cash flows provided by the project less the initial cost incurred to undertake the project. NPV can be calculated as follows,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n - Initial cost
Where,
CF1, CF2 and so on represents the cash flow in year 1 , cash flow in year 2 and so onr represents the required rate of returnNPV = 5400 / (1+0.142) + 5400 / (1+0.142)^2 + 5400/ (1+0.142)^3 +
2400 / (1+0.142)^4 - 13400
NPV = $505.9242271 rounded off to $505.92
A corporation is attempting to sell additional shares to its existing shareholders through a rights distribution. A shareholder who wishes to subscribe must send the purchase amount with the rights certificate to the:
Answer:
Right agent.
Explanation:
A rights agent is said to be a correlative junction, serve and also seen to be an obedient mediator and right assistance between his client and any form of third party organisation or also other clients. A right agent is sometimes seen to be reliable to a principal when he/she acts without actual authority, but with apparent authority. He is also held responsible for indemnify and also principal loss or damage resulting from his/her act. He is also keen and careful in his advise and dealing on behalf of his client is he owes certain contractual duties to his/her agent as he protect him also from wrong claims, expenses that are not worthwhile, liabilities etc.
Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews’s product Ant currently has an awareness level of 78% . While an important product for Andrews, Ant’s promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Ant loses one-third of its awareness each year, what will Ant’s awareness level be next year?
Answer:
52%
Explanation:
Calculation for Ant’s awareness level be next year
First step
Based on the information given Ant current awareness level is 78% and we are told that Ant loses 1/3 of its awareness each year. Hence we are going to first calculate for Ant Starting awareness using this formula
Starting Awareness=Currently awareness level *(1-1/3 of awareness each year)
Starting Awareness=78%*2/3
Starting Awareness=52%
Second Step
Based on the information given we were told that the first one million dollars results in a 26% increase in awareness.This means that we are going to find the percentage of the awareness after promotion using this formula:
Awareness after promotion = Starting Awareness +increase in awareness
Awareness after promotion=52% + 26%
Awareness after promotion= 78%
The last step is to find the what Ant’s awareness level will be next year using this formula
Awareness level next year = Awareness after promotion * 2/3
Awareness level next year = 78%*2/3
Awareness level next year= 52%
Therefore Ant’s awareness level next year will be 52%
What are the benefits and risks associated with social networks? Support your answers with relevant examples
Answer:
Explanation:
There are many benefits as well as risks to social networks. The greatest benefit is that they allow us to connect with individuals from anywhere in the world, at any distance, and in a seconds notice. This is incredibly powerful and opens the door for many opportunities in all types of markets. Social networks also come with risks, since everyone is on it people tend to share all of their information which can cause problems for that individual if it falls into the wrong hands. For example, an individual connects with a family member who lives in Brasil and has casual conversations with that family member every other day. A hacker may be able to access that information and extract all the valuable information needed to steal that individual's identity.
Prepare journal entries to record the following four separate issuances of stock. A corporation issued 7,000 shares of $20 par value common stock for $168,000 cash. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $34,000. The stock has a $1 per share stated value. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $34,000. The stock has no stated value. A corporation issued 1,750 shares of $25 par value preferred stock for $77,750 cash.
Answer: Please see explanation column for answer
Explanation:
1. For shares issued in excess of par value common stock
Amount Debit Credit
Cash $168,000
Common stock at $20 ( 7000 x 20) $140,000
Paid in excess of par value common stock
(168,000 - 140,000) $28,000
2. For shares issued to Promoters at stated value
Amount Debit Credit
Organisational expenses $34,000
Common stock at $1 ( 3,500x 1) $3,500
Paid in capital in excess of stated value
common stock(34,000 - 3,500) $30, 500
3. For shares issued to Promoters at no stated value
Amount Debit Credit
Organisational expenses $34,000
Common stock at $1 no par value $34,000
4.For shares issued in excess of par value preferred stock
Amount Debit Credit
Cash $77,750
preferred stock at $25(1,750 x 25) $43,750
Paid in capital in excess of par value
Preferred stock(77,750 -43,750) $34,000
