This morning you purchased one share of stock for $14. The stock pays $.20 per share each quarter as a dividend. What must the stock price be one year from now if you want to earn a total return of 12 percent for the year
Answer:
$14.88
Explanation:
The computation of the stock price is given below:
A total return of 12% means that
= 0.12 × 14
= $1.68 in a year.
Now
The total dividend payments for 4 quarters is
= 0.2 × 4
= $0.8.
Now the price of the stock should increase by
= 1.68 - 0.8
= 0.88
So the stock price one year from now is
= 14 + 0.88
= $14.88
The table below pertains to a small agricultural economy where the typical consumer's basket
consists of 10 pounds of apples and 20 pounds of oranges. If 2017 is the base year, then the CPI
for 2018 was?
Year
Price of Apples
Price of Oranges
2017
$2.0 per pound (Apples)
$2.00 per pound (Oranges)
2018
$1.5 per pound (Apples)
$3.00 per pound (Oranges)
A) 125.0
B) 100.0
C) 95.0
D) 110.0
Answer:
125
Explanation:
Given the table:
Year
Price of Apples
Price of Oranges
2017
$2.0 per pound (Apples)
$2.00 per pound (Oranges)
2018
$1.5 per pound (Apples)
$3.00 per pound (Oranges
Consumer price index is obtained using the formular :
CPI = (Cost of market basket In current period / Cost of market basket in base period) * 100
Current period (2018):
Cost of 10 pounds of apple and 20 pounds of oranges :
($1.5 * 10) + ($3 * 20) = $15 + $60 = $75
Base year (2017)
Cost of 10 pounds of apple and 20 pounds of oranges :
($2 * 10) + ($2 * 20) = $20 + $40 = $60
Hence,
CPI = ($75 / $60) * 100
CPI = 1.25 * 100
CPI = 125
An organization that meets only minimum legal requirements in its commitments two groups and individuals in at social environment has taken a to social responsibility
Answer:
defensive stance
Explanation:
Corporate social responsibility (CSR) can be defined as a strategic management concept which typically involves socially contributing to the growth and development of the people, community and the world at large. Thus, it's an organization's obligation to act in a manner that benefits and adds significant value to the society, usually it has its business operations.
Some examples of CSR programs are building of roads, provision of electricity, water supply, establishing health care centers, awarding scholarships etc.
In addition to making profits and maximizing shareholders, organizations are required to lessen negative environmental impact or degradation and provide social amenities such as pipe-borne water, electricity, roads, etc.
According to Carroll, the four (4) main levels of an organization's pyramid of corporate social responsibility are;
I. Legal
II. Economic.
III. Philanthropic.
IV. Ethical.
However, an organization has taken a defensive stance to social responsibility when it decide to meet only minimum legal requirements in its commitments to individuals and groups in a social environment.
On the other hand, a proactive stance can be defined as voluntary business practices adopted by an organization or business firm beyond the standard regulatory practice, so as to actively enhance and facilitate growth and development in a society.
RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. RST desires to earn a profit of $20,000. The sales level in units to achieve the desire profit is A company that sells multiple types of products has a selling price per composite unit of $150, variable cost per composite unit of $50 and total fixed costs of $25,000. The contribution margin per composite unit is:__________
Answer:
The correct answer is "12,500 units" and "$100 per unit".
Explanation:
Given:
Selling price,
= $10 per unit
Variable cost per unit,
= $6 per unit
Fixed cost,
= 30,000
Desired profit,
= 20,000
Now,
The contribution margin per unit will be:
= [tex]Selling \ price - Variable \ cost[/tex]
= [tex]10-6[/tex]
= [tex]4[/tex] ($) per unit
The required units will be:
= [tex]\frac{(Fixed \ cost+Desired \ profit)}{Contribution \ margin}[/tex]
= [tex]\frac{30000+20000}{4}[/tex]
= [tex]\frac{50000}{4}[/tex]
= [tex]12,500 \ units[/tex]
Now,
The contribution margin per composite unit will be:
= [tex]Selling \ price-Variable \ cost[/tex]
= [tex]150-50[/tex]
= [tex]100[/tex] ($) per unit
Mantle Publications publishes a golf magazine for women. The magazine sells for $4.00 a copy on the newsstand. Yearly subscriptions to the magazine cost $36 per year (12 issues). In December 2016, Mantle Publications sells 4,000 copies of the golf magazine at newsstands and receives payment for 6,000 subscriptions for 2017. Financial statements are prepared monthly.
a. Indicate the accounts increased or decreased to record the December newsstand sales and subscriptions received.
b. Indicate the accounts increased or decreased for the necessary adjustment on January 31, 2017. The January 2017 issue has been mailed to subscribers.
Answer:
Accounting uses the Revenue recognition principle which means that a business should only recognize revenue when it has provided the service for which it was paid for.
a.
Date Account Title Debit Credit
12/31/2016 Cash $16,000
Sales Revenue $16,000
Working
= 4,000 issues sold for December * $4 per copy
= $16,000
Date Account Title Debit Credit
12/31/2016 Cash $216,000
Unearned Subscription Revenue $216,000
Working
= 6,000 subscriptions * $36 per subscription
= $216,000
b.
Date Account Title Debit Credit
12/31/2016 Unearned Subscription Revenue $18,000
Sales revenue $18,000
Working
= 216,000 * 1/ 12 months
= $18,000
Aug. 1 Madison Harris, the owner, invested $10,250 cash and $44,075 of photography equipment in the company.
2 The company paid $3,900 cash for an insurance policy covering the next 24 months.
5 The company purchased office supplies for $1,948 cash.
20 The company received $3,050 cash in photography fees earned.
31 The company paid $866 cash for August utilities.
Prepare general journal entries for the above transactions.
Answer and Explanation:
The journal entries are shown below:
(i) On August 1,
Cash A/c Dr. $10,250
photography equipment A/c Dr. $44,075
To common stock $54,325
(Being the issuance of common stock for cash and photography equipment is recorded)
(ii) On August 2,
Prepaid insurance A/c Dr. $3,900
To cash $3,900
(Being the cash paid in advance for insurance is recorded)
(iii) On August 5,
Office supplies A/c Dr. $1,948
To cash $1,948
(Being the cash paid for office supplies is recorded)
(iv) On August 20,
Cash A/c Dr. $3,050
To photography fees earned $3,050
(Being the photography fees earned is recorded)
(v) On August 31,
Utilities A/c Dr. $866
To cash A/c $866
(Being the cash paid for utilities)
Do you think the licensing process for international medical graduates is an unnecessary hurdle meant to shield U.S. doctors from foreign competition?
Answer:
No licensing is right. Doctors in U.S. are spending more on medical studies than any other country. It is necessary for other country medical students to gain license in order to do practice in the country.
Explanation:
In U.S. doctors are in deficiency so the country cannot completely cease employment for foreign doctors. The country needs to welcome foreign doctors but it is also necessary to safeguard home doctors. If U.S. will not safeguard rights of home country doctors then they will be demotivated and will not be patriotic for the country.
Briefly state the reasons why a company would not wish to distribute all its profits to its shareholders.
Answer:
Explanation:
The profits of a company may be used to invest in equipment, land or some other capital as a one time purchase.
the company may anticipate that they will not make a profit in the following year so they need the current year profits to absorb that loss.
A short forward contract that was negotiated some time ago will expire in 12-month and has a delivery price of $49.25. The current forward price for the 12-month forward contract is $46.00. The 12-month risk-free interest rate (with continuous compounding) is 6.65%. What is the value of the short forward contract? Answer with two decimal digits accuracy and the correct sign. Example: -11.92
Answer:
$3.04
Explanation:
F = (K - F0)*e^(-r*T) Where f = current value of forward contract, F0 = forward price agreed upon today, K = delivery price for a contract negotiated, r = risk-free interest rate applicable to the life of forward contract, T = delivery date
F = ($49.25-$46.00)*e^(-0.0665*12/12)
F = $3.25*e^(-0.0665)
F = $3.25*0.935662916
F = $3.040904477
F = $3.04
So, the value of the short forward contract is $3.04.
Drew wants to save $2,500 to go to the next World Cup. To the nearest dollar, how much will he need to invest in an account now with 6.25% APR, compounding daily, in order to reach his goal in 4 years
Answer:
195
Explanation:
FV/ (1 + r/m)^nm = pv
FV = Future value
P = Present value
R = interest rate
m = number of compounding
N = number of years
2500 / (1 + 0.0625/365)^365 x 4
2500 / (1.000171) = 2499.57
What is the best candle brand for the cost performance?
Answer:
Yankee candle
Explanation:
Your first morning in your new office, you reflect on what type of manager and leader you hope to be. Which of the following best reflects what you believe about employees and how they can best be led?
a. Employees are more loyal and productive if they feel that their leader is admirable, caring, and ethical.
b. Employees’ behavior can be shaped and motivated, not only by rewarding good behavior but also by penalizing bad behavior.
c. Employees need to be discouraged from bad behavior.
d. They work harder when they know that failure has consequences.
Answer:
a. Employees are more loyal and productive if they feel that their leader is admirable, caring, and ethical.
Explanation:
Leadership can be defined as a process which typically involves motivating, encouraging and inspiring employees working under an individual to be innovative and create positive changes that will foster growth and enhance the success of a business firm or company in the future.
A leader can be defined as an individual who is saddled with the responsibility of controlling, managing and maintaining a group of people under him or her. Some types of power expressed by leaders are referent power, legitimate power, coercive power, etc.
Generally, leaders use their powers to get other people to follow them. Some forms of power result from a formalized position in the organization while others are derived from personal characteristics or knowledge.
Basically, when a leader possesses and favors referent power (strong interpersonal relationship skills with subordinates), he or she would have a strong and productive working relationship with his subordinates (employees) because it encourages loyalty.
Hence, employees are more loyal and productive if they feel that their leader is admirable, caring, and ethical.
Each of the following factors affects the weighted average cost of capital (WACC) equation. Which are factors that a firm can control?
A. Interest rates in the economy
B. Tax rates
C. The firm's dividend payout ratio
D. The general level of stock prices
Answer:
C. The firm's dividend payout ratio
Explanation:
Interest rates are set by the Bank, Tax rates by the Government, Stock Prices by demand from customers. The only factor that the company can control is its dividend payout ratio.
Mellilo Corporation issued $4.7 million of 20-year, 9.5 percent bonds on July 1, 2021, at 98. Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2041. Mellilo's fiscal year ends on December 31. Prepare the following journal entries.
Answer:
On Issue date
July 1, 2021
Debit : Cash $4.606 million
Credit : Bonds Payable $4.606 million
Explanation:
The journal entry on Issue date include a debit of Cash and Credit to Bond Payable at discount price of 98 % ($4.606 million).
Dallas Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 37,880,000 Net operating income $ 3,508,960 Average operating assets $ 9,400,000 The company's minimum required rate of return 14 % The division's margin used to compute ROI is closest to:
Answer:
See below
Explanation:
Given the above information, margin is computed as;
Margin = Net operating income / Sales
Sales = $37,880,000
Net operating income = $3,508,960
Then,
Margin = $3,508,960 / $37,880,000
Margin = 9.26%
Therefore, the division's margin used to compute ROI is closest to 9.26% approximately
(Select all that apply) Maria is researching social media usage in her company for a marketing meeting later in the month. What should she consider as she chooses sources to read and/or include
Answer:
Hello,
this question above appears to be missing options from which one is to select from. In the absence of those, an alternative approach would suffice.
When considering sources for research, Maria should take she must consider sources that meet the following requirements:
DepthObjectivityCurrency of SourceAuthorityPurposeExplanation:
Depth: A source with just a simple cursory overview may not suffice. It is pertinent to elect a source that treats the subject matter in sufficient depth and which uses data to support its position on the topic she is researching Objectivity: If any source takes a biased position on the topic Maria is researching, then it is not a good source. Maria wants to ensure that the author of the source has not taken a position that does not have a balanced view. If any source is not properly cited it should not count.The currency of source: Simple logic requires that a source that is more up-to-date should be preferred above one that is dated. The rule of thumb requires that where possible, sources cited should not be older than 3 years.Authoritative: The more qualified an Author is in the field under consideration, the more reputable the company it works for, the more authoritative that source is considered to bePurpose: Sometimes a text may contain several sub-topics which build up to buttress its primary purpose. Sometimes, these sub-topics may deviate slightly from the main topic. To cite from the sub-topics because it aligns with her work would be a mistake on Maria's part. For example, if she cites from a research proposal whose main topic is Photo Journalism in the Wild West, but which references or the importance of social media in one of its paragraphs, that citation would not be considered adequate because the purpose of the main body is not specific to her work.Cheers
A computer manufacturer is producing a one-of-a-kind innovation called Innovel, a cloud computing software that helps navigate Internet content. While making the channel decision and finalizing the distribution arrangement, the manufacturer is keen on limiting the distribution of Innovel and gives only Techaven Inc. the rights to sell Innovel in that region. Techaven is known for its unique facilities and specialized inventories. In this case, the manufacturer is using the ________ arrangement of distribution.
Answer: exclusive
Explanation:
Exclusive distribution occurs when a manufacturer authorizes only one distributor to sells its product within a particular region. It should be noted that this distribution arrangement is typically used for premium and exclusive products.
Since the manufacturer is keen on limiting the distribution of Innovel and gives only Techaven Inc. the rights to sell Innovel in that region, the this is an exclusive arrangement of distribution.
Assume a market for a normal good is currently in equilibrium. If the government increases the taxes that firms must pay, then:
Answer:
The supply will decrease.
Explanation:
The supply will decrease because the application of taxes will make selling costly. Thus, when cost increases then producers supply less. Therefore, less quantity will be supplied in the market when tax is imposed and this will increase the prices of products.
An investor purchases a 15-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is 5%, what is the current market value of the bond
Answer:
Bond Price= $846.3
Explanation:
Giving the following information:
YTM= 0.05
Maturity= 15*2= 30 semesters
Par value= $1,000
Coupon= $40
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 40*{[1 - (1.05^-30)] / 0.05} + [1,000 / (1.05^30)]
Bond Price= 614.90 + 231.38
Bond Price= $846.3
The board of directors declared cash dividends totaling $160,000 during the current year. The comparative balance sheet indicates dividends payable of $43,200 at the beginning of the year and $38,900 at the end of the year.
Required:
What was the amount of cash payments to stockholders during the year?
Answer: $164,300
Explanation:
Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.
= Beginning dividends payable + Dividends for the year - Ending dividends
= 43,200 + 160,000 - 38,900
= $164,300
Suppose a company owns a warehouse that costs $500,000 and depreciates at $10,000 per year. If the interest rate is 5%, what is the implicit rental price of the warehouse
Answer: $35,000
Explanation:
Implicit rental price = Interest payment + Depreciation
Interest payment = 5% * 500,000
= $25,000
Implicit rental price is therefore:
= 25,000 + 10,000
= $35,000
The board of directors of Synergie Incorporation discussed a few goals for the new fiscal year. The chief goals included maximizing total sales revenue and improving the overall market position of the firm. These goals are categorized as:
Answer: offensive
Explanation:
Offensive goals are the goals that maximize sales revenue, increase long term growth and profit, improve market position and take advantage of economics of scale.
Since the chief goals included maximizing total sales revenue and the improvement of the overall market position of the firm, then these goals are categorized as offensive goals.
1. Sharon, a newly engaged woman, saw an advertisement in a bridal magazine for a beautiful pearl necklace priced at $69.99 from Precious Jewelry. She thought the necklace would be a wonderful present for her bridesmaids, so she ordered 5 necklaces from Precious Jewelry. After a few weeks, Sharon received a letter, along with her returned check from Precious Jewelry. The letter stated that the jeweler was sorry they could not fill her order because they had been overwhelmed with so many requests that their supply of necklaces ran out very quickly.
a. List the 3 elements of an offer and describe each (in your own words).
b. Did Precious Jewelry make an offer when they placed the ad in the magazine? Did Sharon make an offer when she placed the order? Why or why not?
c. What will be the likely outcome if Sharon sues Precious Jewelry to force them to fill her order? Explain your answer.
Answer:
a. The three elements which make an offer valid are communication, commitment, and definite terms. The communication of an offer happens between the offeror and the offeree and not with the general public, as depicted by the ad. Commitment in an offer requires that Sharon and Precious Jewelry are identified as the involved parties and are committed to enter a valid contract. Definite terms require no ambiguity.
b. Precious Jewelry did not make an offer when it placed the ad in the magazine. The ad was an invitation to treat. Sharon initiated the offer when she ordered for the jewelries. At this point, Precious Jewelry could accept or reject the offer, depending on its capacity.
c. If Sharon sues Precious Jewelry to force it to fill her order, she does not have the good standing required to enforce specific performance of a contract because there is no basis for the existence of a contract between her and Precious Jewelry. Moreover, Sharon’s offer was never accepted by Precious Jewelry and there was no consideration.
Explanation:
A valid contract will exist between Sharon and Precious Jewelry when the five elements of a contract are present. These include valid offer, acceptance, mutual consent (or assent), consideration, and legality (including the capacity of the contracting parties).
In most situations, asset values do not equal the amount of money that could be realized if the assets were sold.
a. True
b. False
Answer:
True
Explanation:
The answer to this question is true. The recording of assets is usually done at cost. This is equivalent to the value that was exchanged when the asset was sold. In a country like the United States for example, if an asset such as a land or machine gets to appreciate in value after a period of time, it is not usually revalued. Therefore the answer to this question is true.
Macroeconomics, as opposed to microeconomics, includes the study of what determines the level of:___________
A) employment in a specific industry.
B) output of a specific firm.
C) output of a specific industry.
D) employment in the economy.
Assume that as their leader, you wanted to influence minimum wage earners in a plastic bottle recycling center to work faster. Which one or two influence tactics are likely to be effective
Answer:
An effective leader is one who is able to influence his team through his communication and interpersonal skills.
In order to achieve greater speed and productivity at work, some influencing tactics that can be effective in a recycling center where workers earn a minimum wage may be associated with the leader's ability to empathize with the team, recognizing the difficulties and challenges of the work, but acting in a comprehensive, ethical way and helping them in their demands, exercising practical leadership, where the leader is the first to set a positive example of what he wants to achieve.
A company designs a training program for underperforming employees. They enroll in the program the employees who received the worst 10% of performance evaluations in a given year. They find that very few of the employees who go through the program are in the bottom 10% of performance evaluations the next year. What can they conclude about their new program
Answer:
They can conclude that the program was a success
Explanation:
They can conclude that the program was a success. The main goal of the program is to increase the performance of the employees that were performing the worst in the company. By choosing the bottom 10% of the performance evaluation, they make sure that they are getting the worst of the worst in the company. Therefore, if after the program, the subjects are no longer in the bottom 10% then this means that they have drastically increased their performance and have even passed those that were in a much higher performance ranking than them in the previous year. This means that the program exceeded its goal and can be marked as successful.
Take a real time example of a company of your own choice working in Pakistan and then discuss the factors that lead to pressure for local responsiveness. Discuss it in detail. Draw diagram to show the effect.
Answer:
This responsiveness also promotes the local market orientation of a subsidiary and therefore the strength of its existing network with the businessmen and government authorities.
Explanation:
Usually, firms working within the global market confront two sorts of competitive pressure. They face pressure to scale back costs and pressure to react locally. These competing forces throw a corporation into conflict. In response to cost-reduction efforts, a corporation has got to lower its unit cost. It's going to also need a corporation to supply a consistent product on the international market to downstream the experience curve as soon as feasible. In response to local pressures, however, it's necessary for a firm to differentiate its product offering and marketing strategy from one country to a different in an effort to satisfy the various demands arising from domestic consumer preferences, business practices, channels of distribution, competitive conditions and public policies.
While some associations, like Company A, face a high to scale back cost and low for the reaction locally, while others, like Company B, face low to scale back costs and high for local reaction, many companies are within the situation of Company C. they're under strong costs reduction demands and high local responsiveness pressures. Tackling competing and contradicting demands may be a strategically challenging problem for a corporation, especially because local reactions tend to extend expenses. It suggests and supports three layers of variables, including environmental, structural, and organizational responsiveness. Structural variables like the intensity of competition, heterogeneity of demand, and localization of components increase local reaction.
g The price elasticity of gasoline demand in the United States is 0.4 If the price of gasoline rises by 8 what is the expected change in the quantity of gasoline demanded in the United States Group of answer choices 5 20.0 3.2 3.2 5
Answer: 3.2
Explanation:
The price elasticity of demand shows the change in quantity demanded of a good in response to a change in its price.
Price elasticity of demand = Change in quantity demand / Change in price
0.4 = Change in quantity demanded / 8
Change in quantity demanded = 0.4 * 8
= 3.2
A risky fund has an expected return of 17% and standard deviation of 25%. The risk-free rate is 9%. The expected return of the optimal complete portfolio is 12%. The Sharpe ratio of the optimal complete portfolio is:
Answer:
the Sharpe ratio of the optimal complete portfolio is 0.32
Explanation:
The computation of the sharpe ratio is shown below:
= (Return of portfolio - risk free asset) ÷ Standard deviation
= (17% - 9%) ÷ 25%
= 8% ÷ 25%
= 0.32
Hence, the Sharpe ratio of the optimal complete portfolio is 0.32
We simply applied the above formula
