Answer:
True
Explanation:
When damages exceed the limits defined in the insurance policy, the insurer may deny the claim. This is usually the case when accident is due to negligence of driver. The insurance company may cover partial or none of the claim.
Hellman Industries is estimating the weighted average cost of capital of its new project. The company plan to finance this new project by 50 percent ordinary shares, 10 percent preference equity and rest by issuing debt. The return on FTSE 100 index is 11.4 percent and the 3 months’ treasury bills yield is 4%. The Hellman beta is 1.05. The average yield to maturity of Hellman semiannual coupon bonds is 8.3 percent. The Preference share are currently valued at £76, with a par value of £100 and an 8% dividend. The Hellman Industries is in the 40% marginal Tax bracket. a. Find the Pretax cost of Debt,
Question Completion:
a. Find the Pretax cost of Debt, cost of preference, and ordinary shares.
b. Calculate Hellman Pre- tax and after Tax WACC.
Answer:
Hellman Industries
a) Pretax cost of debt = Yield on bonds = 8.3%
b) Cost of Common equity
= 11.77%
c) Cost of preferred stock
= 10.53%
d) Pre-tax WACC
= 10.3%
e) After-tax WACC
= 8.93%
Explanation:
a) Data and Calculations:
Weight of Common stock = 50%
Weight of Preferred stock = 10%
Weight of Debts (Bonds) = 40% (100% - 50% - 10%)
Market return on common stock = 11.4%
Risk-free return (treasury bills yield) = 4%
Beta = 1.05
Average yield to maturity of Hellman semiannual coupon bonds = 8.3%
Market price of Preferred stock = £76 per share
Par value of Preferred stock = £100
Dividend rate of Preferred stock = 8%
Dividend per share = £8 (£100 * 8%)
Cost of Preferred stock = £8/£76 * 100 = 10.53%
Marginal tax rate = 40%
a) Pretax cost of debt = Yield on bonds = 8.3%
After-tax cost of debt = 8.3% (1 - 0.4) = 4.98%
b) Cost of Common equity, Re = Risk Free Rate + Beta x (Market Return - Risk Free Rate) = 4% + 1.05 x (11.4% - 4%)
= 4% + 1.05 * 7.4%
= 4% + 7.77%
= 11.77%
c) Cost of preferred stock = Dividend per share/Price * 100
= $8/$76 * 100
= 10.53%
d) Pre-tax WACC = 50% * 11.77% + 10% * 10.53% + 40% * 8.3%
= 5.885 + 1.053 + 3.32
= 10.258
= 10.3%
e) After-tax WACC = 50% * 11.77% + 10% * 10.53% + 40% * 4.98%
= 5.885 + 1.053 + 1.992
= 8.93%
Which of the following statements is the most correct?
a. A borrower's long-term debt typically has a higher interest rate than its short-term debt.
b. Debt that is infrequently traded (less liquid) typically has a lower interest rate than similar but highly traded debt.
c. Variable (floating) rate debt is more prevalent when long-term borrowing rates are low.
d. Variable (floating) rate debt should never be used by healthcare providers because it is too risky.
e. Fixed interest rate debt is more prevalent when long-term borrowing rates are high.
Answer:
A
Explanation:
i think it has been explain according to the option
This may also be asked as "Why are you looking for a job?" This question can make the most seasoned interviewee squirm a little because of the first word; why. A question starting with "why" immediately places you on the defensive.
Answer:
Starting a question in a job interview with the word "why" can be a little intimidating and put even a more experienced interviewee on the defensive because communication has been established directly, which occurs when the sender conveys the main message of clearly and objectively, and when it is asked in the form of a question, such as in a job interview, this can generate increased expectations and consequently put a candidate on the defensive, which can make the interviewer not able to actually capture the real motivation of the candidate in the interview.
In order for a job interview to be effective, and for the best candidate to be selected for the job vacancy, it is necessary that it be carried out indirectly, with the interviewer being cordial and not intimidating, gaining the candidate's trust and the make you feel comfortable and safe to share your professional experiences and demonstrate your personality more spontaneously.
On January 1, 2021, G Corp. granted stock options to key employees for the purchase of 87,000 shares of the company's common stock at $26 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2023, by the grantees still in the employ of the company. No options were terminated during 2021, but the company does have an experience of 6% forfeitures over the life of the stock options. The market price of the common stock was $32 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $8. What amount should G charge to compensation expense for the year ended December 31, 2021
Answer:
the compensation expense for the year is $327,120
Explanation:
The computation of the compensation expense for the year is given below:
= (Number of stock options to be purchased × (1 - forefeiture percentage) × fair value per option)) ÷ 2
= (87,000 shares × (1 - 0.06) × $8)) ÷ 2
= $327,120
Hence, the compensation expense for the year is $327,120
The same should be considered and relevant too
A retail store sold gift certificates that are redeemable in merchandise. The gift certificates lapse one year after they are issued. How would the deferred revenue account be affected by each of the following?
Redemption of certificates Lapse of certificates
a. Decrease Decrease
b. Decrease No effect
c. No effect Decrease
d. No effect No effect
Answer:
The correct option is b. That is, the deferred revenue account will be affected as follows:
Redemption of certificates Lapse of certificates
b. Decrease No effect
Explanation:
The given options in the question are clearly stated as follows:
Redemption of certificates Lapse of certificates
a. Decrease Decrease
b. Decrease No effect
c. No effect Decrease
d. No effect No effect
The explanation of the answers is now provided as follows:
When a gift certificate is redeemed, it implies that merchandise has been given to the holder of the gift certificate in return. This will therefore decrease the deferred revenue account.
However, the moment a gift certificate is lapse; it is no longer possible redeem it for merchandise. That is, no merchandise has been given to the holder of the gift certificate in return. This therefore indicates that that the deferred revenue account will not change.
Therefore, the correct option is b. That is, the deferred revenue account will be affected as follows:
Redemption of certificates Lapse of certificates
b. Decrease No effect
When effective communication affected your success at work
Answer:
Being able to communicate at school and in the workplace may mean the difference between success and failure. With your peers, communication helps you to engage and find common ground, allowing you to build friendships that not only last a lifetime, but may lead to future employment opportunities.
Explanation:
A company's managers should almost always give serious consideration to making significant adjustments in its camera/drone strategies and competitive approaches when:
a. all or most of its competitors are using mostly different competitive approaches and therefore the marketplace is not big enough to accommodate all of the competitors.
b. all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor-expected EPS, ROE, and stock price appreciation targets.
c. the number of camera and drone workstations the company has installed is NOT well above the industry-averages (as reported on pages 6 and 7 of the most recent Camera & Drone Journal).
d. the company's market share for action cameras has not been the largest for two straight years and when its EPS and ROE have also not been the highest in the industry for two straight years.
e. the company's operating profits per action camera sold are not substantially above the industry-average benchmarks in at least three geographic regions (as reported on p. 6 of the most recent Camera & Drone Journal),
Answer:
Hence the correct option is option b - All are most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor expected EPS, ROE, and stock price appreciation targets.
Explanation:
A company's management should nearly always give serious consideration to creating significant adjustments in its camera or drawn strategies and competitive approaches when all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of those companies to capture sales volumes and revenues large enough to earn profits large enough to satisfy investor expected EPS ROE and stock price appreciation targets.
The correct option for the given question is "all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor-expected EPS, ROE, and stock price appreciation targets."
What is camera/drone strategies?The camera/drone strategy involves the strategic approach of a company in which the company overlooks its competitors, their market, and strategies and modify its strategies accordingly.
If the competitors are using copycat competitive approaches and hence are making it difficult for the company to achieve sales volume and revenue and the expectations of the companies' investors regarding the EPS, ROE and stock price appreciation are difficult to meet, the company should consider its camera/drone strategies and competitive approaches.
Therefore the correct option is b.
Learn more about camera/drone strategies here:
brainly.com/question/27006230
Change Treaster in equilibrium Income Investment adultiplier =Y-S II 1-6 In au A the (ID Accure acanany Tax Increased by eas what will be the change in equilibrium Income if the slope of the saving function is 0.5 Initial equilibrium income was cu 1000 what will be the new squilibrium. & Incame after tax decrease Interprete your findings
Answer:
실례합니다? 당신은 이것을 의미합니까?
Explanation:
균형에서 Treaster의 변화 소득 투자 성체 = YS II 1-6 In au A (ID Accure acanany Tax 증가 eas만큼 균형의 변화는 얼마입니까 저축 함수의 기울기가 0.5인 경우 소득 초기 균형 소득은 cu 1000 새로운 균형이 되십시오. & 세금 감면 후 소득 조사 결과 해석 ??
On May 1, Carlisle Co. sold inventory to a customer for $1,000 2/10, n/30. Carlisle Co. uses the gross method for reporting sales discounts. The customer paid the account in full on May 20. What will be the Net Sales reported on the Income Statement from these tranactions
Answer:
The Net Sales that will reported on the Income Statement from these transactions is $1,000.
Explanation:
The term "2/10, n/30" implies that the customer will enjoy a 2% discount if it pays within 10 days but must pay the total amount within 30 days.
However, customer paid on May 20 which is outside the 2% discount period. This implies the customer did not enjoy the 2% discount. That is, the customer paid the full amount of $1,000. Therefore, the net sales is $1,000 from these transactions.
Therefore, the Net Sales that will reported on the Income Statement from these transactions is $1,000.
The following information relating to a company's overhead costs is available.
Actual total variable overhead$73,000
Actual total fixed overhead$17,000
Budgeted variable overhead rate per machine hour$2.50
Budgeted total fixed overhead$15,000
Budgeted machine hours allowed for actual output 30,000
Based on this information, the total variable overhead variance is:_______.
Answer: $2,000 favorable
Explanation:
Total variable overhead variance = Budgeted variable overhead - Actual total variable overhead
Budgeted variable overhead = Budgeted machine hours allowed for actual output * Budgeted variable overhead rate per machine hour
= 30,000 * 2.50
= $75,000
Total variable overhead variance = 75,000 - 73,000
= $2,000 favorable
Favorable because the actual amount was less than the budgeted one.
An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; all earnings are subject to social security tax; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. Prepare the journal entry to record the salaries expense. If required, round your answers to two decimal places. If an amount box does not require an entry, leave it blank.
Answer and Explanation:
The journal entries are shown below:
On December 31
Salary Expense $735.00
To Federal Withholding Taxes Payable $120.00
To Social Security Taxes Payable 44.10 (735 × 6%)
Medicare Taxes Payable 11.03 (735 × 1.5%)
Salaries Payable 559.87
(Being salary expense is recorded)
Here the salaries expense is debited as it increased the expense and credited the payable account as it increased the liabilities account
Working note
Regular earnings 600 (40 × 15)
Overtime earnings 135 (46 - 40) × 15 × 1.5
Gross earnings 735
Can someone please help with this question ^▪︎^
Answer:
liability
Explanation:
The Rolling Department of Oak Ridge Steel Company had 3,600 tons in beginning work in process inventory (50% complete). During July, 59,500 tons were completed. The ending work in process inventory on July 31 was 3,000 tons (40% complete).
What are the total equivalent units for direct materials for July if materials are added at the beginning of the process?
Chad is the founder of a firm producing self-driving vehicles. Because the industry is so new and chaotic, Chad favors a top-down strategic planning approach in which he exerts strong control over all aspects of the business, from product development and design to manufacturing and marketing. What is wrong with this scenario?
a. The self-driving vehicle industry is changing too much for the top- down approach to be effective.
b. The top-down approach can only be applied to specific business functions.
c. The top-down approach leaves other employees uncertain about their roles in the company.
d. The top-down approach is expensive to maintain, leaving the company at a competitive disadvantage.
Answer:
A)The self-driving vehicle industry is changing too much for the top-down approach to be effective.
Explanation:
Top-down analysis can be regarded as utilization of comprehensive factors to serve as basis for making decision . This top-down approach helps in
identifying the big picture as well as all of its components. It usually serves as
driving force as regards the end goal.
Top-down is commonly used in domain of macroeconomics.
Hence, the problem here is self-driving vehicle industry is changing too much for the top-down approach to be effective.
Next year, we will be in a boom, bust, or normal state with 25%, 25% and 50% probabilities respectively. Apple will return 15%, -22% and 7% in each state (again respectively).
a) What is the expected return for Apple next year?
b) What is the standard deviation of returns for Apple next year?
Answer:
a. 1.75%b. 14.10%Explanation:
a. Expected return:
This will be a weighted average of the returns in different states.
= (25% * 15%) + (25% * -22%) + (50% * 7%)
= 1.75%
b. Standard deviation:
= √ Variance
= √(25% * (15% - 1.75%)²) + (25% * (-22% - 1.75%)²) + (50% * (7% - 1.75%)²)
= √0.01986875
= 14.10%
Ana, a project manager, has been asked to estimate the cost of the project. She wants that cost estimate for the project to be as accurate as possible. Which techniques will she use to accomplish the task?
Answer:
v
Explanation:
Final goods or services used to compute GDP refer to: the value of outstanding shares of stock of manufacturing firms. the value of outstanding shares of stock of manufacturing firms. the factors of production used to produce output. the factors of production used to produce output. goods and services at the final stage of production they have reached during the year.
Answer:
goods and services at the final stage of production they have reached during the year.
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. Also, gross domestic products (GDP) is a measure of the production levels of any nation.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
Hence, the gross domestic products (GDP) of a country is computed using final goods or services, which simply are goods and services at the final stage of production they have reached during the year.
In conclusion, the goods or services that are purchased by consumers (end users) are typically used for computing final goods or services.
Local currency debt is valuable to the foreign subsidiary that has substantial local currency cash inflows from its business activities. It provides a foreign exchange financial hedge.
a. True
b. False
On January 1, 2021, Doyle Corporation had 140,000 shares of its $5 par value common stock outstanding. On December 1, when the market price of the stock was $15, the corporation declared a 40% stock dividend to be issued to stockholders of record on December 16, 2021. What was the impact of the 40% stock dividend on the balance of the retained earnings account
Answer: Retained earnings would reduce by the $840,000 dividend.
Explanation:
Stock dividends to the shareholders is to be paid from the retained earnings of the company as it represents profits that the shareholders get because they are owners in the company.
Retained earnings spent = Number of shares * Market price * Stock dividend
= 140,000 * 15 * 40%
= $840,000
Retained earnings would reduce by the $840,000 dividend.
Bạn chọn yếu tố nào để định vị bản thân trong tương lai, góp phần nâng cao khả năng tìm kiếm việc làm? Trình bày kế hoạch để thành công trong công tác định vị này ?
Answer:
quan trọng bản thân thật sự thích cái gì và học chuyên môn về cái mình thíc
Explanation:
On December 31, 2018, a company had assets of $34 billion and stockholders' equity of $28 billion. That same company had assets of $50 billion and stockholders' equity of $12 billion as of December 31, 2019. During 2019, the company reported total sales revenue of $27 billion and total expenses of $25 billion. What is the company's debt-to-assets ratio on December 31, 2019
Answer:
131.6%
Explanation:
Total assets is $50 billion
Liabilities = 50-stock holder equity which is $12 billion
= 50-12
= $38 billion
Therefore the debt to assets ratio can be calculated as follows
= 50 billion/38 billion
= 1.3157×100
°= 131.6
Hence the debts to assetsrayion is 131.6%
Buffet Company was organized in January 2018 and has 1,000 shares of $200 par value, 10 percent, noncumulative preferred stock outstanding and 3,000 shares of $1 par value common stock outstanding. Dividends declared and paid each year are $10,000 in 2018, $15,000 in 2019, and $75,000 in 2020. During 2020, the dividends that must be paid to the preferred and common stockholders, respectively, total _____. multiple choice $35,000 and $40,000 $75,000 and $0 $20,000 and $55,000 $100,000 and $0
Answer:
$20,000 and $55,000
Explanation:
Calculation to determine the dividends that must be paid to the preferred and common stockholders, respectively
PREFERRED
Preferred stock holders = 1,000 × $200 × 10%
Preferred stock holders=$20,000
COMMON STOCKHOLDERS
Common stockholders =$75,000-(1,000 × $200 × 10%)
Common stockholders = $75,000 - $20,000
Common stockholders = $55,000
During 2020, the dividends that must be paid to the preferred and common stockholders, respectively, total $20,000 and $55,000
Áp dụng một trong các phương pháp quản trị chất lượng để phân tích thực trạng công tác quản trị chất lượng tại một tổ chức/doanh nghiệp cụ thể.
Answer:
Bench marking and Continuous improvement.
Explanation:
Quality management is essential for any business. It is necessary to inspect quality of goods before they are sold to customers so that faulty products are identified at an earlier stage. There are various quality management techniques which are used by businesses. Kaizen, Six sigma, and zero defect programs are various total quality management techniques. There should be strict inspection of finished goods before they are dispatched to the customers.
On September 30, Franz Corporation notices a decline in value of its investment in held-to-maturity bonds that it believes to be other than temporary. On that date, the carrying value of the bonds is $38,500 and the fair value is $22,980.
Required:
Prepare the journal entry to record the impairment.
Answer:
Dr Loss on Impairment $15,520.00
Cr Maturity Debt Securities $15,520.00
Explanation:
Preparation of the journal entry to record the impairment.
Journal entry
Sep. 30
Dr Loss on Impairment $15,520.00
Cr Maturity Debt Securities $15,520.00
($38,500-$22,980=$15,520)
(To record the impairment)
The following data relate to direct materials for the month for the Hodge Wax Company: The standard costs for the work done was 5,900 pounds of wax at $9.50 per pound. The actual costs were 6,300 pounds at $9 per pound. What is the direct materials efficiency variance
Answer: $3800 U
Explanation:
The direct material efficiency variance will be calculated as follows:
Direct material efficiency variance = (Standard quantity - Actual quantity) × Standard price of material
= (5900 - 6300) × 9.50
= 400 × 9.50
= $3800 U
Therefore, the direct material efficiency variance is $3800 Unfavorable.
All of the following are qualified education expenses for the Lifetime Learning Credit and American Opportunity Credit, except: _________
a) Books and Supplies.
b) Tuition and Fees.
c) Equipment.
d) Room and Board.
Answer:
d) Room and Board.
Explanation:
The only option that is not qualified as an educational expense would be Room and Board. This is because a place to stay on campus is not a necessity for learning. Tuition/Fees, Equipment, and Books/Supplies are all necessary in order to be able to attend the university and learn. Without these, it would be impossible for you as a student to learn what is needed. However, with these things you can easily travel by car, bus, or train to the faculty without the need for a room or board.
A machine costs $5240 and produces benefits of $1000 at the end of each year for eight years. Assume an annual interest rate of 10%. Use engineering economics principals a.) What is the payback period in years
Answer:
5.24 YEARS
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
5240 / 1000 = 5.24 YEARS
Old Tired Professor Mullen, Inc. has $20,000 of ending (EI) finished goods inventory. If beginning (BI) finished goods inventory was $10,000 and Cost of Goods Sold (CGS) (OUT) was $40,000, how much would the Old Tired Professor report for Cost of Goods Manufactured (CGM) (IN)
Difference between beginning and ending CoG: 20,000-10,000 = 10,000
Difference + sold:
10,000 + 40,000 = 50,000
Answer: $50,000
Beech Company produced and sold 105,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales, $1,300,000; variable costs, $750,000; and fixed costs, $300,000. The following actual financial results are available for May.
Actual
Sales (105,000 units) $ 1,275,000
Variable costs 712,500
Fixed costs 300,000
Prepare a flexible budget performance report for May.
Beech Company
Flexible Budget Performance Report
For Month Ended May 31
Flexible Budget
Actual Results
Variance
Favorable/Un fav.
Sales
Variable Expense
Contribution Margin
Fixed Expense
Income from Operations
(Could you please show how to get the Flexible Budget)
Answer:
I will answer next time not this
Assume that Zonk is a potential leveraged buyout candidate. Assume that the buyer intends to put in place a capital structure that has 70 percent debt with a pretax borrowing cost of 14 percent and 30 percent common equity. Compute the revised equity beta for Zonk based on the new capital structure.
Answer: 4.35
Explanation:
The revised equity beta for Zonk based on the new capital structure will be gotten as follows:
= 1.13 × [1 + (1 - 35%)][70% /30%]
= 1.13 × [1+(1-0.35)][0.70/0.30]
= 1.13 × [1 + 0.65][2.33]
= 1.13 × (1.65)(2.33)
= 4.35
Therefore, the revised equity beta for Zonk is 4.35.
