Answer:
will be greater than the nominal interest rate.
Explanation:
Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
Deflation can be defined as a fall or decrease in the overall price level of goods and services in an economy, so that inflation becomes negative while causing an increase in the purchasing power of a currency. Thus, an economy experiences a deflation when its inflation rate becomes negative i.e falls below zero percent (0%).
Furthermore, if an economy experiences deflation, the real interest rate will be greater than the nominal interest rate due to a negative inflation.
Mathematically, deflation is given by the formula;
Real interest rate - Nominal interest rate = - Inflation
E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a return of 9.75 percent on this stock, how much should you pay today
Answer:
You would pay approximately $35.00 today
Explanation:
The cost of the stock at the beginning of the year 20
= 20/9.75%
= 20/0.0975
= 205.13 dollars
We find the current price of the stock
= Fv/(1+r)^n
= 205.13/(1+9.75%)¹⁹
= 205.13/1.0975¹⁹
= 205.13/5.86
= $35.00
From this calculation you have to pay 35 Dollars today.
Andy Tyre manages Tyre's Wheels, Inc. Andy has received an order for 1000 standard wheels and 1200 deluxe wheels for next month, and for 750 standard wheels and 1000 deluxe wheels the following months. He must fill all the orders. The cost of regular time production for standard wheels is $25 and for deluxe wheels, $40. Overtime production costs 50% more. For each of the next two months there are 1000 hours of regular time production and 500 hours of overtime production available. A standard wheel requires .5 hour of production time and a deluxe wheel, .6 hour. The cost of carrying a wheel from one month to the next is $2.
a) Define the decision variables and objective function for this problem.
b) Write the constraints for this problem.
Answer:
A) S1R = The number of standard wheels that are produced on regular time production in the first month
S1O = The number of standard wheels that are produced on overtime production in the first month
S2R = The number of standard wheels that are produced on regular time production in the second month
S2O = The number of standard wheels that are produced on overtime production in the second month
D1R = The number of deluxe wheels that are produced on regular time in the first month
D1O = The number of deluxe wheels that are produced on overtime time in the first month
D2R = The number of deluxe wheels that are produced on regular time in the second month
D2O = The number of deluxe wheels that are produced on overtime time in the second month
Y1 = The number of standard wheels that are stored from the first month to the second month.
Y2 = The number of deluxe wheels that are stored from the first month to the second month.
B) S1R + S1O – Y1 = 1000
D1R + D1O – Y2 = 1200
S2R + S2O + Y1 = 750
D2R + D2O + Y2 = 1000
0.5 S1R + 0.6 D1R ≤ 1000
0.5 S2R + 0.6 D2R ≤ 1000
0.5 S1O + 0.6 D1O ≤ 500
0.5 S2O + 0.6D2O ≤ 500
Explanation:
A) Let's first define the decision variables and objective functions;
S1R = The number of standard wheels that are produced on regular time production in the first month
S1O = The number of standard wheels that are produced on overtime production in the first month
S2R = The number of standard wheels that are produced on regular time production in the second month
S2O = The number of standard wheels that are produced on overtime production in the second month
D1R = The number of deluxe wheels that are produced on regular time in the first month
D1O = The number of deluxe wheels that are produced on overtime time in the first month
D2R = The number of deluxe wheels that are produced on regular time in the second month
D2O = The number of deluxe wheels that are produced on overtime time in the second month
Y1 = The number of standard wheels that are stored from the first month to the second month.
Y2 = The number of deluxe wheels that are stored from the first month to the second month.
B) They received an order for 1000 standard wheels and 1200 deluxe wheels. Thus;
S1R + S1O – Y1 = 1000
D1R + D1O – Y2 = 1200
For the second month they received 750 standard wheels and 1000 deluxe wheels. Thus;
S2R + S2O + Y1 = 750
D2R + D2O + Y2 = 1000
For each of the next two months, we are told that there are 1000 hours of regular time production and 500 hours of overtime production. And that standard wheel requires 0.5 hour of production time & deluxe wheel requires 0.6 hour.
Thus;
0.5 S1R + 0.6 D1R ≤ 1000
0.5 S2R + 0.6 D2R ≤ 1000
0.5 S1O + 0.6 D1O ≤ 500
0.5 S2O + 0.6D2O ≤ 500
Consider the telecommunications, networking, and wireless technologies you use today as a consumer and student. Does your comfort level with changes in these technologies in your personal life influence how comfortable you would be with adapting to new technologies in the workplace? Why or why not?
Answer:
Yes, people´s comfort level with changes in technology in their personal lives has a great influence over how comfortable they can be with adapting to new technologies in the workplace.
Explanation:
Telecommunications, networking, and wireless technologies are used regularly by most students, as those who are in studying years have grown with those technologies already developed. However, the rapid changes in technology that are common these days can become quite overwhelming, as they require users to constantly readapt to them. For example, our use of email has changed so much in the past years, with so many new lines of communication and new softwares that one has to learn how to use. And the more we get used to readapting, the more comfortable we can be when those changes become part of the workplace. It´s important to be prepared and to have the proper training to ensure the effective use of technology in such a fast-paced technological era.
Equipment was purchased for $51,000 on January 1, 2012. Freight charges amounted to $2,100 and there was a cost of $6,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $9,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2013, if the straight-line method of depreciation is used? Group of answer choices $20,040 $10,020 $8,580 $17,160
Answer: $20040
Explanation:
The amount of accumulated depreciation at December 31, 2013, will be calculated thus:
Cost = $51000 + $2100 + $6000 = $59100
Less: Salvage value = $9000
Depreciable cost = $50100
Annual depreciation will then be:
= $50100/5
= $10020
Accumulated depreciation at Dec 31,2013 will then be:
= $10020 × 2
= $20040
What is the effective annual rate for an APR of 10.80 percent compounded quarterly?
Answer:I think its 11.89
Explanation:
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where Group of answer choices
Answer: Nooo
Explanation:
One year ago, Peyton purchased 7,200 shares of Broncos stock for $329,640. Today, he sold those shares for $58.92 a share. What is the total return on this investment if the dividend yield is 2.2 percent
Answer:
30.90%
Explanation:
total return = dividend yield + price appreciation
price appreciation = (current price per share / previous price per share) - 1
Previous price per share = $329,640 / 7,200 = $45.78
price appreciation = ( $58.92 / $45.78) - 1 = 0.287 = 28.70%
total return = 28.70% + 2.2% = 30.90%
O entendimento das relações de interdependência entre os diversos componentes de uma organização é uma das competências centrais do gestor na atualidade. Ela é regularmente conhecida como:
Answer:
Administración.
Explanation:
La administración es la gestión integral de una empresa u otra organización, como una organización sin fines de lucro o gubernamental. El objetivo de la administración es formular y lograr los objetivos de la empresa en el contexto dado (a veces muy cambiante). Para alcanzar los objetivos son importantes: determinación de la estrategia, gestión financiera, uso de factores productivos, marketing, innovación y política de personal.
Answer:
Administración
Explanation:
O entendimento das relações de interdependência entre os diversos componentes de uma organização é uma das competências centrais do gestor na atualidade. Ela é regularmente conhecida como: Administración
Brockney Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.70 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $95,460 per month, which includes depreciation of $19,850. All other fixed manufacturing overhead costs represent current cash flows. The July direct labor budget indicates that 8,600 direct labor-hours will be required in that month.
a. Determine the cash disbursements for manufacturing overhead for July.
b. Determine the pre-determined overhead rate for July.
Answer:
Results are below.
Explanation:
Giving the following information:
The variable overhead rate is $1.70 per direct labor hour.
Budgeted fixed manufacturing overhead= $95,460 (depreciation of $19,850)
The July direct labor budget indicates that 8,600 direct labor hours will be required in that month.
Cash disbursement July:
Fixed overhead= 95,460 - 19,850= $75,610
Variable overhead=) 1.7*8,600= $14,620
Total cash disbursement= $90,230
Now, the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (95,460/8,600) + 1.7
Predetermined manufacturing overhead rate= $12.8 per direct labor hour
Uncertainties in the supply chain can lead to: _____________
a. strategic changes in production plans
b. increases in inventory across all tiers
c. declines in production
d. a reduction in safety stocks
e. the bullwhip effect
Answer:
e. the bullwhip effect
Explanation:
Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers.
Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.
Therefore, the fundamental principle on which supply chain management is reliant on, is the complete collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing producer), a wholesaler, and a retailer who typically sells the products to the customers or consumers.
Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.
However, uncertainties or fluctuations in the supply chain can lead to the bullwhip effect.
The bullwhip effect is also referred to as the Forrester effect and it can be defined as the increasing inefficient allocation of resources or inventory fluctuations (distortions) due to changes in demand with respect to the upward movement in supply chain i.e from the retailer to wholesaler and to the manufacturer. Thus, this inaccurate assessment of the demands of consumers leads to uncertainties or fluctuations in the supply chain, especially a decrease in the accuracy of the forecast made by a manufacturer (supplier).
Your engineering team improved one of your core products, in the context of this course you should immediately:
a. File for patent protection.
b. Consider the market
c. Perform some due dilgence to make sure you remain in compliance with the laws, rules, and regulations.
d. Begin looking at the Institutional views of the Host location.
e. Start analyzing the Resurces and capabilities needed in the Host.
Answer:
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Explanation:
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The real risk-free rate of interest is 3 percent. Inflation is expected to be 4 percent this coming year, jump to 5 percent next year, and increase to 6 percent the year after (Year 3). Assume maturity risk premium is zero, what should be the interest rate on 2-year, treasury securities today
Answer: 7.5%
Explanation:
Interest rate on 2 year treasury security:
= Real interest rate + Average inflation rate + Maturity risk premium
Average inflation rate = (Inflation rate coming year + Inflation rate next year) / 2
= (4% + 5%) / 2
= 4.5%
Interest rate on 2-year treasury security is:
= 3% + 4.5% + 0%
= 7.5%
Find the present value of $7,000 in 7 months at 9% interest
Answer:
[tex] = principle \times rate \times time \\ = 7000 \times \frac{9}{100} \times 7 \\ = 4410 \: dollars[/tex]
Jose is subject to the top marginal Federal income tax rates. Carlita is considering establishing a trust in which Jose would be an income beneficiary. Considering only income tax consequences, Jose should be designated as:
Answer:
Second tier beneficiary
Explanation:
Since Jose probably doesn't need the money right now, he would probably benefit from being a second tier beneficiary since the distributions for second tier beneficiaries are discretional, meaning that they can happen or not depending on the circumstances. For example, if Jose doesn't need the money this year, he can postpone the cash payment.
Carla Willis will invest $34,700 today. She needs $173,500 in 14 years. Click here to view factor tables What annual interest rate must she earn
Answer:
12.18%
Explanation:
Present value = $34,700
Future Value = $173,500
Time (n) = 14 years
Interest Rate = i
Future Value = Present Value * (1+i)^n
$173,500 = $34,700 * (1 + i)^14
(1 + i)^14 = $173,500/$34,700
(1 + i)^14 = 5
1 + i = 5^(1/14)
1 + i = 1.1218284
i = 1.1218284 - 1
i = 0.1218284
i = 12.18%
So, the annual interest rate she must earn is 12.18%.
You consider buying a share of stock at a price of $12. The stock is expected to pay a dividend of $1.60 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $14. The stock's beta is 1.2, rf is 15%, and E[rm] = 25%. What is the stock's abnormal return?
Answer:
3%
Explanation:
The computation of the abnormal return of the stock is shown below:
= Rf + Beta (Rm - Rf)
= 15% + 1.2 (25% - 15%)
= 15% + 12%
= 27%
Now actual return is
=[ $1.60 + ($14 - $12)] ÷ $12
= 0.3
= 30%
ANd, finally the abnormal return is
= 30% - 27%
= 3%
Assuming that periodic inventory records are kept, the ending inventory on a LIFO basis is Group of answer choices $16,440. $17,160. $17,880. $16,640. None of these answer choices are correct.
Answer:
$16,440.
Explanation:
Please find attached the data used in answering this question
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
the ending inventory would consist of earlier purchased goods
total sales is 20800
total purchases = 26,000
ending inventory = 26,000 - 20800 = 5200
this price of the ending inventory = 3200 x 3.2) + (2000 x 3.1) = $16,440.
Consider single-server Q with LIFO (last-infirst-out) services. Suppose that three customers show up at times 5, 6, and 8, and that they all have service times of 4. When does customer 2 leave the system?
a. 3
b. 9
c. 13
d. 17
e. 19a
Answer:
d. 17
Explanation:
The computation is shown below;
Here the time started i.e. t=0
Therefore there was no customer upto t=5 hour
At t=5
The client first came and as there was no other customer available so we begins service to customer 1
Now
As service off is 4 hour so service to client 1 will end at
t=9 hour.
Also mid-time at t = 6
That means the client 2 came and at t = 8 the client 3 came.
Now at t = 9 the service begins for client 3 and end at t = 13 ( 9 + 4)
At t=13 hour, so after four hours it should be 17
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 42,000 units and sold 34,000 units at a price of $120 per unit.
Manufacturing costs
Direct materials per unit $ 48
Direct labor per unit $ 18
Variable overhead per unit $ 6
Fixed overhead for the year $ 420,000
Selling and administrative cost
Variable selling and administrative cost per unit $ 12
Fixed selling and administrative cost per year $ 110,000
1a. Assume the company uses absorption costing. Determine its product cost per unit.
1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.
2a. Assume the company uses variable costing. Determine its product cost per unit.
2b.
Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Answer:
1a. Product cost per unit if absorption costing is used by the company is $82 per unit.
1b. Net operating income if absorption costing is used by the company is $774,000.
2a. Product cost per unit if variable costing is used by the company is $72 per unit.
2b. Net operating income if variable costing is used by the company is $694,000.
Explanation:
1a. Assume the company uses absorption costing. Determine its product cost per unit.
Fixed overhead per unit = Fixed overhead for the year / Units produce for the year = $420,000 / $42,000 = $10
Product cost per unit = Direct materials per unit + Direct labor per unit + Variable overhead per unit + Fixed overhead per unit = $48 + $18 + $6 + $10 = $82
Therefore, product cost per unit if absorption costing is used by the company is $82 per unit.
1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.
Note: See number 1b of the attached excel file for the income statement for the year under absorption costing.
From number 1b of the attached excel file, we have:
Net operating income = $774,000
Therefore, net operating income if absorption costing is used by the company is $774,000.
2a. Assume the company uses variable costing. Determine its product cost per unit.
Product cost per unit = Direct materials per unit + Direct labor per unit + Variable overhead per unit = $48 + $18 + $6 = $72
Therefore, product cost per unit if variable costing is used by the company is $72 per unit.
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Note: See number 2b of the attached excel file for the income statement for the year under variable costing.
From number 2b of the attached excel file, we have:
Net operating income = $694,000
Therefore, net operating income if variable costing is used by the company is $694,000.
The measurement of earnings concept that consists of a company’s profit from operations after taxed are subtracted is ________.
Answer:
Net Operating Profit After Taxes or NOPAT
Explanation:
NOPAT is calculated by substracting the tax expense from the revenue that the company obtains exclusively from its operating activities. This means that NOPAT does not include income from non operating activities like small investments or one time sales of capital goods.
NOPAT is a very important indicator in corporate finance, often used by analysts to gauge a company's true level of profitability. It is also an important element in the calculation of another important indicator, Economic Value Added or EVA.
A stock index currently stands at 107. The risk-free interest rate is 8.75% per annum (with continuous compounding) and the dividend yield on the index is 2.75% per annum. What should the futures price for a 6-month contract be? (Answer with two decimal accuracy. Example: 132.06)
Answer: $110.25
Explanation:
Futures price is calculated by the formula:
= Strike price * e ^ (risk free interest rate - dividend yield) * annualized time to expiry
= 107 * e^(8.75% - 2.75%) * 6/12 months
= $110.25
The concepts statements provide several examples in which specific quantitative materiality guidelines are provided to firms. Identify at least two of these examples. Do you think materiality guidelines should be quantified
Answer:
Two examples of materiality are:
1.Separate disclosure of balance sheet items - If 10% or more of their immediate category or more than 5% of total assets.
2.Receivables from officers and stockholders - Disclose details of receivables from any officer or principal stockholder if it equals or exceeds $20,000 or 1% of total assets.
Explanation:
Material guidelines indicate the relevance of a specific financial information by creating a set of quantitative materiality guides or criteria that addresses a variety of financial situations and is used as an authoritative support.
The predominant view among FASB is that materiality judgments can properly be made only by those who have all the facts and not relying on a formulated numerical guides.
However, I personally feel that the materiality guidelines should be quantified. Having a formulated set of standards would make it easier for decision makers to analyze the impacts that any material transaction could have on financial statements and the ongoing concerns of the organization. By having such guidelines, the relevance of certain situations would be universally understood with a unified approach.
Australia has only one firm that makes aircraft. Without assistance from the government, that firm has lost most of its business to imports from the United States and Europe. Which policies would be most costly for the Australian nation as a whole, and which would be least costly?
Answer:
The least costly option for the Australian government would be providing a loan to the aircraft maker without protecting against imports.
In this way, the aircraft would be responsable to invest the money from the loan in an efficient way in order to become more competitive. In either case, Australian consumers would benefit, either from more American imports if the Australian firm fails to invest the loan well, or from more Australian aircraft if if manages to become more competitive.
The costliest option would be imposing a tariff or an import quota. In either case, the government would be benefiting the Australian aircraft maker against the interests of Australian consumers, who would now be prevented from buying American aircraft either due to higher prices (the tariff), or by restrictions in the quantity they can purchase (the import quota).
Here is a small part of the order book for Mesquite Foods:Bid AskPrice Size Price Size$ 107 270 $ 107.5 540$ 106.5 540 $ 107.8 540$ 105 1,080 $ 108 980$ 103.8 810 $ 108.5 910a. Georgina Sloberg submits a market order to sell 270 shares. What price will she receive
Answer: $107
Explanation:
This is a rather straightforward question and in such case, the answer to the question is quite easy.
Since Georgina Sloberg submits a market order to sell 270 shares, the price that she will receive is $107. Looking at the order book provided, when the size is 270, the price allocated is $107.
Therefore, the price that Georgina Sloberg will receive is $107.
g Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 4,211 units. It is estimated that warranty repairs will average $12 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of
Answer:
The warranty expense is $50,532
Explanation:
the computation of the warranty expense is as follows;
= Warranty repairs per unit × Unit sales
= $12 × 4,211 units
= $50,532
By multiplying the warranty repairs per unit with the unit sales we can calculate the warranty expense
hence, the warranty expense is $50,532
Darin Company purchased a truck and trailer for $54,000. The appraised values of the truck and trailer are $19,000 and $38,000, respectively. What is the amount of the cost that should be assigned to the truck?
Ravelo Corporation has provided the following data from its activity-based costing system:
Activity Cost Pools Estimated Overhead Cost Expected Activity Assembly
$ 498,520 44,000
machine-hours Processing orders $ 54,263 1,100
orders Inspection $ 77,589 1,110
inspection-hours Data concerning the company's product L19B appear below:
Annual unit production and sales 430
Annual machine-hours 990
Annual number of orders 70
Annual inspection hours 20
Direct materials cost $ 37.74 per unit
Direct labor cost $ 10.45 per unit
According to the activity-based costing system, the unit product cost of product L19B is closest to:_________
(Round your intermediate calculations to 2 decimal places.)
Answer:
$85.56 per unit
Explanation:
Assembly = $498,520 / 44,000 Machine hours
Assembly = $11.33 per machine hour
Processing orders = $54,263 / 1,100 Orders
Processing orders = $49.33 per processing orders
Inspection = $77,589 / 1,100 Inspections
Inspection = $70.54 per inspections
Total Overhead Costs = [990*$11.33] + [70*$49.33] + [20*$70.54]
Total Overhead Costs = $11,217 + $3,453 + $1,411
Total Overhead Costs = $16,081
Overhead Cost per unit = Total Overhead cost / Number of units produced
Overhead Cost per unit = $16,081 / 430 Units
Overhead Cost per unit = $37.37 Per unit
Step-3, Average cost of product L19B
Unit cost of product L19B = Direct Material cost per unit + Direct Labor cost per unit + Overhead costs per unit
Unit cost of product L19B = $37.74 + $10.45 + $37.37
Unit cost of product L19B = $85.56 per unit
Darnell lives in an area where labor is plentiful and locations for startup are relative cheap
Answer:
The answer is "Entrepreneurship and knowledge".
Explanation:
The situation is based on the research on beginning a firm, there two key production aspects which Darnell needs to succeed would be enterprise and expertise, based on the data supplied inside the question. He needs to learn a way to create, start-up, run a new business and get depth knowledge of both the arts.
A separate company unit responsible for its own cost and revenue is referred to as which of the following?
Answer:
forming a work team. A company unit responsible for its own costs and profits is referred to as______ -departmentalization. -specialization.
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The current population of a small town is 2262 2262 people. It is believed that town's population is tripling every 12 12 years. Approximate the population of the town 8 8 years from now.
Answer:
5,278
Explanation:
The computation of the population of the town after 8 years from now is as follows;
After 12 years, the total population is
= 2262 × 3
= 6,786
increment in the population is
= 6,786 - 2262
= 4,524
Per year increment is
= 4,524 ÷ 12
= 377
Now after 8 years it should be
= 2,262 + 377 × 8
= 5,278
