Answer:
$11.93
Explanation:
Calculation to determine the price per share of equity
Using this formula
Price per share of equity = Debt under Plan II / (Number of shares under Plan I - Number of shares under Plan II)
Let plug in the formula
Price per share of equity= $1,820,000 / (405,000 - 252,397)
Price per share = $1,820,000 / 152,603
Price per share = $11.93
Therefore the price per share of equity is $11.93
Following a decrease in price from $1.90 to $1.50, the weekly demand for a magazine increases from 100,000 to 120,000 copies. The price elasticity of demand for magazines in this range is:
Answer:
0,95
inelastic
Explanation:
0.21
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
If there are six firms in an industry and the market shares of the firms are 32 percent, 25 percent, 19 percent, 9 percent, 8 percent and 7 percent, the Herfindahl index is
Answer: 2,204
Explanation:
The Herfindahl-Hirschman Index (HHI) shows just how competitive an industry is with a higher HHH meaning that it is not very competitive and a lower one meaning that it is quite competitive.
It is calculated by adding up the squares of the percentage market shares of the firms in the industry of interest:
= 32² + 25² + 19² + 9² + 8² + 7²
= 1,024 + 625 + 361 + 81 + 64 + 49
= 2,204
Nadal Inc. had two temporary differences at the end of 2013. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Nadal's accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows:
Taxable amounts:
2014 $40,000
2015 $50,000
2016 $60,000
2017 $80,000
Deductible amounts:
2014 $0
2015 $(15,000)
2016 $(19,000)
2017 $0
As of the beginning of 2013, the enacted tax rate is 34% for 2013 and 2014, and 38% for 2015-2018. At the beginning of 2013, the company had no deferred income taxes on its balance sheet. Taxable income is expected in all future years.
A. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2013.
B. Indicate how deferred income taxes would be classified on the balance sheet at the end of 2013.
Answer:
72,880
Explanation:
Given:
Taxable amounts are as follows,
2014$40,000
2015$50,000
2016$60,000
2017$80,000
Deducible amounts are as folllows,
2014$0
2015$(15,000)
2016$(19,000)
2017$0
Solution:
Taxable amount is as follows,
2014$40,000-34%-13,600
2015$35,000-38%-13,300
2016$41,000-38%-15,580
2017$80,000-38%-30,400
Therefore the deferred liability 72,880
To income tax provision 72,880
This would be shown as deferred tax liability under the long term liabilities head with amount of $72,880
A trademark is a device that can take almost any form as long as it is capable of identifying and distinguishing specific products or services. Owens-corning fiberglas corporation's trademark is an example of a poduct that is protected by:__________
a. combination of letters and designs.
b. product shape.
c. picture.
d. logo.
e. color.
Answer:
E)color
Explanation:
Trademark can be regarded as one of intellectual property, it can be explained as recognizable insignia, symbol as well as phrase and word, which denotes a particular product and it's one that legally differentiates that particular Product from all other products of its kind. A trademark can also be regarded as one that exclusively identifies a product and allow the consumer to know specific company it belongs to and also allows them to know company that have the ownership of the brand.
It should be noted that trademark is a device that can take almost any form as long as it is capable of identifying and distinguishing specific products or services.
For instance Owens-corning fiberglas corporation's trademark is an example of a poduct that is protected by logo.
Product K has a unit contribution margin of $120. Product L has a unit contribution margin of $100. Product K requires five furnace hours, while Product L requires four furnace hours. Determine the most profitable product, assuming the furnace is a bottleneck constraint.
Answer: Product L is more profitable
Explanation:
The unit contribution margin per production of product K per bottleneck hour will be:
= $120/5
= $24
The unit contribution margin per production of product L per bottleneck hour will be:
= $100/4
= $25
Product L is more profitable as it gives a profit of ($25 - $24) = $1 more than product K
Lãi suất tiền gửi và cho vay của Việt nam hiện tại là bao nhiêu?
Answer:
?????
Explanation:
A rock group assigns its payment under a performance contract to the Costume Shop, a business that has supplied the group with outrageous stage outfits, and to which the group owes a great sum of money. Under this arrangement the rock group is the a. delegator. b. delegatee. c. assignee. d. assignor.
Answer:
Rock Group and Costume Shop
Under this arrangement the rock group is the
d. assignor.
Explanation:
The rock group, as the assignor, is the entity that transfers its property rights or its powers to payment to Costume Shop. The Costume Shop is the assignee because it is the entity to which property rights or powers to payment of the rock group are transferred. Under the performance contract, the rock group can also be described as the delegator while the Costume Shop is the delegatee. However, under payment terms, the rock is the assignor while the Costume Shop is the assignee.
Two years ago, Global Airlines sold a $250 million bond issue to finance the purchase of new jet airliners. These bonds were issued in at par value with an original maturity of 12 years and a coupon rate of 12%. Determine the value today of one of these bonds to an investor who requires a 14% rate of return on these securities. Is it a discount or premium bond and why
Answer:
$897
Explanation:
Calculation to determine the value today
Using Financial calculator to determine the Present value (PV)
N = (12- 2) = 10 years
I = 14%
PMT =12%*1,000=120
FV = $1000
PV=?
Hence;
PV = $896.68
PV=$897 (Approximately)
Therefore the value today is $897
Seeing his son graduate from college is most likely a short-term goal for a
person of which of these ages?
A. 8 years old
B. 58 years old
C. 28 years old
D. 18 years old
The answer is c 28 years old
Typical cash outflows of a project include all of the following except: A. the original investment B. depreciation expense. C. additional inventory required D. repairs and maintenance expenses E. all of the above are typical cash outflows.
Answer:
B. depreciation expense
Explanation:
Project cash flow can be regarded as how cash flows into as well as out of an organization with respect to a particular potential or existing project. Project cash flow encompass costs for such a project as well as the revenue.
conventional cash flow as regards a project is been structured typically as an initial outflow, which is then followed by inflows numbers over a particular period of time.
Typical cash outflows of a project include the following ;
✓the original investment
✓additional inventory required
✓repairs and maintenance expenses
g The fundamental limitation of a matrix structure is that it ________. A. introduces more errors in the decision-making process due to the speed of the process B. institutes a dual hierarchy that violates the unity-of-command principle C. isolates upper management from operational levels D. creates a poor organizational culture
Answer:
The correct answer is the option B: Institutes a dual hierarchy that violates the unity-of-command principle.
Explanation:
To begin with, in the business management field the concept known as "Matrix structure" or matrix management as well is refered to the dynamic way of organizating the company that has the characteristic of having the employees of the business answering directly to two or more superiors of leaders instead of just one. Therefore that in this type of organizational structure sometimes the matters of certain departments tend to interfere or collide with the objectives of others. That is the main reason why it does violates the principle of unity-of-command described in the organizational theory.
A vendor sells hot dogs at $17.00 /piece. For every hot dog he spends $11.23 in the raw material. Additionally he spends $0.90 for packing each hotdog and monthly $46.00, $25.00, $13.00 as food truck rent, electricity and other expenses respectively. How much is the vendor contributing to covering his fixed costs or generating profits
Answer: $4.87
Explanation:
The question is asking for the Contribution margin which is the amount left of the selling price after the variable costs have been deducted.
Contribution margin = Selling price - variable costs
= Selling price - Raw materials - packing costs
= 17 - 11.23 - 0.90
= $4.87
Melvin begins his retirement fund at age 30, depositing $1,000 per month until age 50. Cindy begins her retirement fund at age 20, depositing the same $1,000 per month amount until age 50. Both Melvin and Cindy earn 5 percent annual interest on their funds, and there are no tax considerations in this problem. Based on the provided information :____________
a) and assuming they retire at age 50, Cindy will have less than 50 percent more than Melvin
b) and assuming they retire at age 50. Cindy will have exactly 50 percent more than Melvin.
c) and assuming they both retire at age 60. Cindy will have less than Melvin.
d) the difference between the two will get larger with higher inflation
e) and assuming they retire at age 50. Cindy will have over 50 percent more than Melvin.
Answer: D. and assuming they retire at age 50, Cindy will have over 50% more than Melvin
Explanation:
Since Melvin begins his retirement fund at age 30, depositing $1,000 per month until age 50 while Cindy begins her retirement fund at age 20, depositing the same $1,000 per month amount until age 50 with a 5% annual interest on their funds, then we can deduce that if they retire at age 50, Cindy will have over 50% more than Melvin.
Therefore, the correct option is D.
Suppose you invest every quarter, for 20 years, in an annuity that pays 5% interest, compounded quarterly. At the end of the 20 years, you have $100,000. How much of this total is interest
Answer: $41,228
Explanation:
The first step is to determine the amount that was being invested, in other words, the annuity.
First find the future value of annuity factor:
= 1 * Future value of annuity formula
= 1 * ( ( 1 + rate)^ number of periods) - 1) / rate
Rate = 5% / 4 = 1.25%
Number of periods = 20 * 4 quarters = 80 quarters
Annuity factor = 1 * ( ( 1 + 1.25%) ⁸⁰ - 1) / 1.25%
= 136.118795
The annuity is:
Future value of annuity = Annuity * Future value of annuity factor, 80 years, 1.25%
100,000 = Annuity * 136.118795
Annuity = 100,000 / 136.118795
= $734.65
The interest is:
= Future value of annuity - (Annuity * number of periods)
= 100,000 - (734.65 * 80)
= $41,228
legal advisor and marketing researcher are examples of
Answer:
White-collar jobs.
Explanation:
A white-collar worker is a term used since the mid-20th century to describe any individual or social group engaged in a job that requires higher education and professional qualifications, or little or no physical work. Depending on the context, the term white collar may be synonymous with new forms, that is, the working class layer - as opposed to the traditional forms used for the term blue collar - or the middle class, and sometimes the upper class.
White collars are generally better educated and better paid than blue collars. They are characterized by individualism and a greater propensity for liberal ideas as opposed to blue-collar workers who prefer collectivism and conservative values.
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. The project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. The tax rate is 21 percent.
a) what is the projects year 0,1,2,3 net cash flow?
b) if the required return is 12 percent, what is the project's NPV?
Answer:
Quad Enterprises
a. The project's net cash flow:
Year 0 -$2.32 million
Year 1 $857,150
Year 2 $857,150
Year 3 $857,150
b. The project's NPV is -$261,126
Explanation:
a) Data and Calculations:
Initial cost of investment in fixed asset = $2.32 million
Estimated annual sales = $1,735,000
Estimated annual costs = 650,000
Before-tax income $1,085,000
Company tax (21%) 227,850
Net income/cash flow $857,150
a. The project's net cash flow:
Year 0 -$2.32 million
Year 1 $857,150
Year 2 $857,150
Year 3 $857,150
b. The project's NPV, if the required return is 12%:
Period Cash Flows
Annuity Factor for 3 years at 12% = 2.402
Year 0 -$2.32 million -$2.32 million
Year 1 $857,150
Year 2 $857,150
Year 3 $857,150 $2,058,874 ($857,150 * 2.402)
NPV = -$261,126
Dylan invested $4200 into a continuously compounded account with an interest rate of 2.4%. How much will she have in the account after 11 years
Answer:
$47,322.21
Explanation:
the formula for calculating future value when there is continuous compounding is : A x e^r x N
A= amount
e = 2.7182818
N = number of years
r = interest rate
42,000xe^0.024 x 11 = $47,322.21
Answer:
A≈5469
Explanation:
Use the formula for calculating compound interest A=P0ert where P0=4200, r=0.024, and t=11. Substitute the values into the formula and simplify.
A=4200e0.024⋅11
A=4200e0.264
A=4200(1.302)
A=5468.94
After 11 years, the balance in the account is A≈5469, rounded to the nearest dollar.
Matching Items Reported to Cash Flow Statement Categories (Indirect Method).
Adidas AG is a global company that designs and markets sports and fitness products, including footwear, apparel, and accessories. Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the Operating Activities, Investing Activities, or Financing Activities section of the statement or use Not Applicable if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement).
1. Dividends paid.
2. Repayments of short-term borrowings.
3. Depreciation and amortization.
4. Proceeds from reissuance of treasury shares to employees.
5. [Change in] Accounts payable and other liabilities.
6. Cash collections from customers.
7. Purchase of investments.
8. Net income.
9. Purchase of property, plant, and equipment.
10. Increase in receivables and other assets.
Answer:
1. Dividends paid.
Classification: Financing Activity
2. Repayments of short-term borrowings.
Classification: Financing Activity
3. Depreciation and amortization.
Classification: Operating Activities
4. Proceeds from reissuance of treasury shares to employees.
Classification: Financing Activity
5. Change in Accounts payable and other liabilities.
Classification: Operating Activities
6. Cash collections from customers.
Classification: Not Applicable
7. Purchase of investments.
Classification: Financing Activity
8. Net income.
Classification: Operating Activities
9. Purchase of property, plant, and equipment.
Classification: Investing Activities
10. Increase in receivables and other assets.
Classification: Operating Activities
Axis Pvt. Ltd., an international financial services firm, assigns projects to employees in different nations. Since these multinational projects and careers provide employees with global exposure, they are more than willing to cooperate. With regard to organizing a multinational company, which of the following internal factors has been covered in this example?
A. Structure.
B. People.
C. Culture.
D. Management.
Answer: B. People
Explanation:
The people who work in a company are a very important internal factor because their work makes or breaks a company. When the company does something that can be expected to improve the efficiency of its workers, it is said to be investing in its people.
In the above, Axis is sending workers around the world which is giving these workers much needed exposure. In this day and age where globalization is everything, skills gained from being exposed to different nations are very important and can make workers more efficient.
If a company has discriminated against minorities in the past, should it be required to give priority to minority applicants today? Why or why not?
Answer:
The description as per the given statement is summarized in the below segment.
Explanation:
There should priorities immigrants, although it has its inherent consequences since it damages the morality of all other project teams and thereby discourages them.This would also dissuade customer prejudice from purchasing the merchandise of the company and then so this might not be beneficial to priorities it.Suppose the economy is in long-run equilibrium. Concerns about pollution cause the government to significantly restrict the production of electricity. At the same time, the value of the dollar falls. What would we expect to happen in the short run?
a. The price level will rise, and real GDP might rise, fall, or stay the same.
b. The price level will fall, and real GDP might rise, fall, or stay the same.
c. Real GDP will rise, and the price level might rise, fall, or stay the same.
d. Real GDP will fall, and the price level might rise, fall, or stay the same.
Answer:
the price level will rise, and real GDP might rise, fall, or stay the same.
Explanation:
Short run
In microeconomics, it is simply defined as the timeframe when all resource prices (including wages) are constant not changing.
Long run
This is also known as the period of time when all resource prices (including wages) change/is altered or do not remain the same.
Long-run equilibrium can change with constant long run aggregate supply (LRAS) and potential output thereby leading to changes only in the price level and this can cause inflation. Due to the changing LRAS, causing an increase in potential output leading to economic growth or decreasing potential output leading to negative growth.
A TV manufacturing company uses speakers at the rate of 8000/mo. When it places an order for speakers it incurs a fixed cost of $1200. The monthly interest rate for keeping a speaker in stock is assessed at 1%/mo. The cost of the speaker depends on the order size. If less than 1000 speakers are ordered the cost is $11 each. When the order size is between 1000 and 10,000 the cost is $10.50/unit. For order sizes between 10,000 and 30,000 the cost is $10 per unit. For order quantities between 30,000 and 80,000 the cost drops to $9.50. Beyond 80,000 the cost is $9.25. Determine the optimum order size and time between orders if shortages are not allowed.
Please use excel to solve this problem. Show all cell formulas and parameters used.
Solution :
1. Ordering quantity 500 1000 10000 30000 80000
2. No. of orders 16 8 0.8 0.27 0.1
3. Average inventory 250 500 5000 15000 40000
4. Value of average 2750 5250 50000 142500 370000
inventory
5. Monthly total cost
a). Cost of material 88000 84000 80000 760000 740000
b). Ordering cost 19200 9600 960 320 120
c). Carrying cost 27.5 52.5 500 1425 3700
Total monthly cost 107227.5 93652.5 81460 77745 77820
Among the total monthly cost, $ 77,745 is the least cost.
Therefore, the optimum order size of quantity = 30,000
The number of orders per month = 8000/30000 = 0.267
Time between two consecutive orders = 30000/8000 = 3.75 months
If a firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from :___________
a. declining interest rates.
b. rising interest rates.
c. inflation.
d. changes in hedging activities.
Answer:
b. rising interest rates.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.
In Economics, bonds could either be issued at discount or premium.
Generally, if a business firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from rising interest rates.
If Hilltop Turf Farm’s total cost of producing acres of sod is TC = 0.2 Q 2 + 120 Q + 5,000, the marginal cost of producing the 50th acre of sod is:
Answer: $140
Explanation:
Based on the information given in the question, the marginal cost of producing the 50th acre of sod will be:
TC = 0.2Q² + 120Q + 5000
The marginal cost will be:
= dTC / dQ
= 0.4Q + 120
Then we put the value of Q = 50 into the equation and this will be:
MC = 0.4Q + 120
MC = (0.4 x 50) + 120
MC = 20 + 120
MC = 140
A firm's marginal product of labor is 4 and its marginal product of capital is 5. If the firm adds one unit of labor but does not want its output quantity to change, the firm should A. add 1.25 units of capital. B. use 1.25 fewer units of capital. C. use 0.8 fewer units of capital. D. use 5 fewer units of capital.
Answer: C. use 0.8 fewer units of capital.
Explanation:
The Marginal Rate of Technical Substitution (MRTS) shows how much you can decrease capital or labor by in order to keep production constant if you increase either capital or labor.
It is calculated by the formula:
= Marginal product of labor / Marginal product of capital
= 4 / 5
= 0.8
The firm should use 0.8 fewer units of capital in order to maintain the same production level.
The Cherrywood Fine Furniture Company finds itself with excess capacity in its plant and equipment for furniture manufacturing. This excess capacity will be useful in Group of answer choices
Answer: related diversification project
Explanation:
Related diversification simply means the scenario whereby a firm moves into a new industry which possesses vital similarities with the existing industry of the firm.
In this case, since Cherrywood Fine Furniture Company has excess capacity in its plant and equipment for furniture manufacturing, then this can be used for related diversification project.
A young college student on a tight budget is campaigning for an open city council seat. A friend in her economics class estimates that voters are influenced by TV and newspaper ads according to the following function: Votes = 300TV0.6 NP0.2, where TV represents the number of television ads and NP represents the number of newspaper ads. Thus, the marginal product of a newspaper ad is 60TV0.6 NP–0.8 and the marginal product of a TV ad is 180TV–0.4 NP0.2. A local television ad costs $400, and a local newspaper ad costs $250. If the candidate needs 1,800 votes to win, what is the lowest-cost combination of newspaper and TV ads that will bring her victory?
Answer:
Explanation:
..
The Federal Reserve mandates banks and thrifts to deposit in their regional Federal Reserve Bank a fraction of their checkable deposits as:
Answer:
Required Reserves
Explanation:
Fractional banking is a banking system where a portion of customer's deposits is kept as reserves while remaining portion is lent out. The amount kept as reserves is determined by the required reserve ratio set by the Central bank.
Reserves is the total amount of a bank's deposit that is not given out as loans
Reserves = Deposits - outstanding loans
$100,000 - $70,000 = $30,000
there are 2 types of reserves
1. Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
0.2 x $100,000 = $20,000
2. Excess reserves is the difference between reserves and required reserves
$30,000 - $20,000 = $10,000
On January 1, 2013, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,546. During the first 11 months of the year, bad debts expense of $21,399 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2013, was $9,859. Required: (a) What was the total of accounts written off during the first 11 months
Answer: $25,086
Explanation:
The bad debt written off is calculated by:
= Opening balance in Allowance for bad debts account + Bad debt expense - Closing balance in Allowance for bad debt
= 13,546 + 21,399 - 9,859
= $25,086
Suppose that when the price of hamburgers rises by 7%, the quantity of ketchup demanded at the current price of ketchup falls by 6%. When income rises by 12%, the quantity of ketchup demanded at the current price increases by 5%. Calculate the income elasticity of demand for ketchup.
Answer:
0.42
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.
If the absolute value of income elasticity of demand is less than one, it means demand is inelastic.
Income elasticity of demand = percentage change in quantity demanded / percentage change in income
5/12 = 0.42
