Question Completion:
On December 31, 2014, Renda's common stock sold for $35 per share. At that price, how much did investors say $1 of the company's net income was worth? Earnings per share = $1.50
Answer:
Renda Company
The value of $1 of the company's net income by investors was:
$23.33
Explanation:
a) Data and Calculations:
Market price of Renda's common stock = $35 per share
Earnings per share = $1.50
This means that investors' value on $1 = $35/$1.50 = $23.33
b) Investors in Renda's common stock place a value of $23.33 for each $1 of the company's net income. This is why they can afford to pay $35 per share in order to benefit from $1 of the company's earnings. This calculation is based on the price-earnings ratio, which relates the company's share price to the earnings per share.
A business is considering a cash outlay of $880,000 for the purchase of land, which it intends to lease for $200,000 per year. If alternative investments are available that yield a 15% return, the opportunity cost of the purchase of the land is:___________.
a. $102,000.
b. $132,000.
c. $200,000.
d. $175,000.
Answer:
b. $132,000
Explanation:
Opportunity cost is an economic term for expressing cost in terms of foregone alternatives. From the above, we can infer that the company is considering a cash outlay of $880,000 for the purchase of land which it could lease for $200,000 per year and the alternative investment would bring in return 15% yield.
It therefore means that the opportunity cost for the purchase of land would be;
= Initial cash outlay × yield returns
= $880,000 × 15%
= $132,000
The opportunity cost of the purchase of the land is $132,000
According to the quantity-quality model of hospital behavior:________.
a. Hospitals will choose a quantity and quality combination that maximizes the hospitals profit
b. Hospitals will choose a quantity and quality combination that maximizes the utility of the administrator subject to the hospital residual
Answer:
a. Hospitals will choose a quantity and quality combination that maximizes the hospitals profit
Explanation:
As per the quantity and quality model fo the hostipal behavior is focused on the selection of the quantity and quantity combination that maximize the profit of the hospitals
Therefore as per the given situation, the a option is correct as for every type of organization the main motive is to maximize the profit
So the option a is right
And, the rest of the options are wrong
Which of the following scenarios BEST illustrates the role of money as a medium of exchange?
A
Jane writes a $600 check to pay her rent.
B
Jane has a $500 balance on her credit card.
C
Jane puts 5% of her income into savings each month.
D
Jane uses her investments as collateral for a business loan.
Answer:it’s A
Explanation: I just took a test with this question
Scenarios that best illustrates the role of money as a medium of exchange is Jane writes a $600 check to pay her rent. Option (a) is correct.
What do you mean by Exchange?Giving or receiving something in exchange for another is known as an exchange.
As a means of exchange, money makes transactions for goods and services easier. Producers trade money for the products they sell to wholesalers. Retailers then sell the goods to consumers in exchange for money from wholesalers, who in turn sell their products to them.
The first function of money is that it is a medium of trade, which implies that it works as a go-between for buyers and sellers. The accountant now trades accounting services for money instead of shoes when they were first introduced.
Therefore, Option (a) is correct. Scenarios that best illustrates the role of money as a medium of exchange is Jane writes a $600 check to pay her rent.
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Q2. Which of the following is not covered under Marine Insurance?
a Theft insurance
b. Marine insurance
c. Life insurance
d. Fire insurance
Answer:
Marine Insurance? lol kinda make no sense
A project that cost $80000 with a useful life of 5 years is being considered. Straight-line depreciation is being used and salvage value is $5000. The project will generate annual revenues of $24350. The annual rate of return is:_______
a. 17%
b. 50.3%
c. 16%
d. 15%
Answer:
22%
Explanation:
Net income = Annual cash flow - Depreciation
Net income = 24350 - (80,000-5,000 / 5)
Net income = 24350 - 15,000
Net income = $9350
Average investment = Beg. value + End. Value / 2
Average investment = 80,000 + 5,000 / 2
Average investment = $42,500
Annual rate of return = Net income / Average investment * 100
Annual rate of return = $9350 / $42,500 * 100
Annual rate of return = 0.22 * 100
Annual rate of return = 22%
Answer:Annual Rate of Return =22%
The correct option is not given
Explanation:
Annual Rate of Return = Net Income / Average Investment x 100
Net Income= Annual Cash flow - Depreciation
Straight-line depreciation =Cost - salvage value / useful years
= 80,000 - 5,000 / 5
75,000/5= $15,000
Net Income=$24,350 - $15,000
=$9,350
Average Investment= Initial investment + salvage value / 2
$80,000 + 5000 / 2
= $85,000/ 2
$42,500
Annual Rate of Return =$9, 350/ $42,500 x 100
= 0.22 x100
=22%
In a period when costs are declining and inventory quantities are stable, the lowest cost of goods sold would be reported by using the inventory method of
Answer:
LIFO
Explanation:
To record the lowest cost of goods sold, the ending inventory amount must be high. This would only be high in LIFO whish would not be affected by declining costs.
By using LIFO (Last in First Out) inventory valuation will be based on the value of the earliest goods purchased instead of latest goods purchased as in FIFO (First In First Out)
A firm produces 4,000 units of output using 500 workers. Marginal cost is $10, the wage rate is $160, and total fixed cost is $100,000. When output is 4,000 units, Group of answer choices average variable cost is increasing. average total cost is increasing. average total cost is decreasing. average variable cost is decreasing.
Explanation:
i am just at class 10 comp and opt so i dont know about business
Bank reserves are $200, the public holds $1000 in currency, and the reserve-deposit ratio is 20%. What is the Value of Bank Deposits? What is the Money Supply? Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase? Please enter your answers as numerical responses (ie. 100 or $100 not "One Hundred Dollars")
Answer:
What is the Value of Bank Deposits?
bank deposits = bank reserves / required reserve ratio = $200 / 20% = $1,000
What is the Money Supply?
money supply = bank deposits + currency held by the public = $1,000 + $1,00 = $2,000
Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase?
if the FED sells $50 worth of bonds, money supply will decrease by $50 x (1 / 20%) = $50 x 5 = $250
total money supply = $2,000 - $250 = $1,750
The stock in Bowie Enterprises has a beta of .89. The expected return on the market is 11.90 percent and the risk-free rate is 2.93 percent. What is the required return on the company's stock?a. 10.91%b. 13.52%c. 10.31%d. 10.61%e. 12.22%
Answer:
a. 10.91%
Explanation:
The computation of the required return on the company stock is shown below:
As per CAPM, the required return is
= Risk free rate of return + Beta × (Market rate of return - risk free rate of return)
= 2.93% + 0.89 × (11.90% - 2.93%)
= 2.93% + 0.89 × 8.97
= 10.91%
Hence, the required return on the company's stock is 10.91%
Therefore the correct option is a.
A credit union is different from a bank mainly because
Answer:D:(A cooperative lending institution for a particular group.)
Explanation:
A credit union is different from a bank mainly because it is owned and controlled by its members, who are typically individuals with a common bond, such as belonging to a specific community or organization.
In the context of a credit union, a common bond refers to a shared characteristic or affiliation among its members, such as living in the same community, working for the same employer, or belonging to a specific organization.
This common bond serves as the basis for membership eligibility and participation in the credit union. It fosters a sense of community and cooperation among members, who collectively own and control the credit union.
The common bond principle promotes a more personalized and community-oriented approach to financial services, catering to the specific needs and interests of the members it serves.
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On January 1, Jim Shorts Corporation issued $300 million face value bonds for $580 million. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared by the indirect method, Jim Shorts Corporation should report: A) An addition to net income of $1,500,000. B) An investing activity of $580 million. C) A financing activity of $300 million. D) A deduction from net income of $1,500,000. g
Answer: a deduction from net income of $1,500,000.
Explanation:
Based on the statements provided in the question, it should be noted that Jim Shorts Corporation should report a deduction from net income of $1,500,000 on the statement of cash flows prepared by the indirect method.
It should be noted that the caah flow statement would start the accrual basis of the net income under an indirect method of the cash flow and then, all the non-cash items would either be added or subtracted in order for the reconciliation of account.
Besides knowing the amount of sales, what other
information is required to calculate a return on
sales (ROS)?
Answer:
selling price, variable cost, fix cost
Explanation:
As the marginal propensity to consume (MPC) increases, the spending multiplier: Increases, decreases, stays the sameIf the marginal propensity to consume is 0.70, then, assuming there are no taxes or imports, the multiplier is: (Note: round to the nearest tenth)Given the multiplier that you calculated, what is the total impact on spending when there is a $1,000 increase in government spending?
Answer:
(a) As the marginal propensity to consume (MPC) increases, the spending multiplier Increases.
(b) Multiplier is 3.30.
(c) Total impact on spending is $3,300.
Explanation:
(a) As the marginal propensity to consume (MPC) increases, the spending multiplier: Increases, decreases, stays the same.
In economics, the higher the MPC, the higher the spending multiplier.
Therefore, as the marginal propensity to consume (MPC) increases, the spending multiplier Increases.
(b) If the marginal propensity to consume is 0.70, then, assuming there are no taxes or imports, the multiplier is: (Note: round to the nearest tenth).
This can be calculated as follows:
Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.70) = 1 / 0.30 = 3.33333333333333
Rounding to the nearest tenth, we have:
Multiplier = 3.30
(c) Given the multiplier that you calculated, what is the total impact on spending when there is a $1,000 increase in government spending?
Total impact on spending = Increase in government spending * Multiplier = $1,000 * 3.30 = $3,300
The spending multiplier rises as the marginal propensity to consume (MPC) rises. 3.30 is the multiplier. The total financial impact is $3,300.
What is the total impact on spending?(a) The spending multiplier grows, declines, or remains constant when the marginal propensity to consume (MPC) increases.
The higher the MPC, the higher the spending multiplier in economics.
As a result, the spending multiplier rises as the marginal propensity to consume (MPC) rises.
(b) If the marginal propensity to consume is 0.70, the multiplier is: assuming no taxes or imports (Note: round to the nearest tenth).
Computation:
[tex]\text{Multiplier} = 1 / (1 - MPC) \\= 1 / (1 - 0.70) \\= 1 / 0.30 \\= 3.33333333333333[/tex]
If we round to the nearest tenth, we get: a 3.30 multiplier
(c) Given the multiplier you computed, what is the total impact on spending when government spending is increased by $1,000?
[tex]\text{Total impact on spending = Increase in government spending} \text{ x } \text{Multiplier}\\ = $1,000 \text { x } 3.30 = $3,300[/tex]
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Boston Company sells thirty items for $800 per unit and has a cost of goods sold per unit of $480. The gross profit to be reported for selling 30 items is:_____________A) $320.B) $9,600.C) $14,400.D) $24,000.
In what positive and negative ways has the Internet changed the conduct and coordination of global business?
Answer: Positive ways; Barriers in connecting is slightly no more, Negative ways; Increase in fraud and cyber theft
Explanation:
The internet has changed the conduct and cordination of global business in many ways both positively and negatively. Considering the positive ways
Positive Ways: Barriers in connecting is slightly no more: connecting to one another has been made easy to do business recently, people in continents can carry out a transaction and a trade under minutes of interaction and get the goods and services exchanged among each other immediately.
Negative ways; Increase in fraud and cyber theft; despite the swift nature of doing business now, it has also Increased fraud as some people disguise themselves to be traders and businessmen just to collect people's money.
Mary orders a dress for $1,000. The designer sends the wrong size. Mary doesn't inspect the dress on arrival and therefore doesn't discover the nonconformity until the day before she is to wear it to her first board meeting as president of Tri-State Engineering. She calls the designer and sends the dress back, but it is lost in the mail. Mary's insurance would cover $400 of the loss. The designer's insurance would cover $900. Who is liable
Answer:
The Correct option is d.The risk is Mary's to the extent of $400
Explanation:
Based on the information given the person Who is liable is MARY reason been that we were told that MARY did not inspect the dress when she received it to check for any nonconformity and Secondly we were told that she calls the designer in which she sent back the dress BUT it was lost in the mail after her designer sents the wrong size to her which means that Mary's insurance would cover $400 of the loss.
Therefore The risk is MARY'S to the extent of the amount of $400
Compared with supermarkets, the product mix for vending machines is: __________.
a. the same
b. wider and deeper
c. wider and deeper
d. shallower and narrower
e. narrower and deeper
Answer:
d. shallower and narrower
Explanation:
Product width basically refers to how many different product lines are sold, and obviously a supermarket sells hundreds of product line, while a vending machine generally sells soft drinks or snacks, which is only 1 product line.
The product depth refers to the amount of products sold, and a supermarket is much larger than a vending machine so it can sell many more products.
A coupon bond that pays interest of $60 annually has a par value of $1,000, matures in 5 years, and is selling today at a $75.25 premium from par value. The current yield on this bond is _________.
a. 6%
b. 6.49%
c. 6.73%
d. 7%
Answer:
b. 6.49%
Explanation:
Calculation for The current yield on this bond
First step is to calculate the Current price
Current price = $1,000 - 75.25
Current price = $924.75
Now let calculate the Current yield using this formula
Current yield =Coupon bond interest/Current price
Let plug in the formula
Current yield = $60/$924.75
Current yield = 6.49%
Therefore the current yield on this bond is 6.49%
Piper Pizzaâs pizza-and-sub deal is back! Any consumer who orders two pizzas will get a free meatball sub. Piper Pizzaâs promotion uses ____ to increase short-term sales.
Answer:
YUMMM
Explanation:
Pizza sounds good, sorry lol
Any consumer who orders two pizzas will get a free meatball sub. Piper Pizzas' promotion uses loyalty programs to increase short-term sales.
What type of promotion is a loyalty program?Retailers and other companies who sponsor loyalty programs do so in an effort to draw and keep consumers by providing prizes, discounts, and other unique incentives. They are made to reward customers for their brand or shop loyalty and promote repeat business (hence the name). Usually, a consumer receives bigger benefits the more frequently they shop at the business and the more money they spend.
The purpose of loyalty programs is to reward customers for their continued patronage by providing benefits, discounts, or other unique incentives. Companies profit from loyalty programs not only by fostering client loyalty but also by receiving vital data on consumer spending patterns and the most tempting goods or offers. Retailers and other businesses provide loyalty programs as a strategy to draw in and keep consumers.
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A stock is currently selling for $79 per share. A call option with an exercise price of $83 sells for $3.95 and expires in three months. If the risk-free rate of interest is 2.8 percent per year, compounded continuously, what is the price of a put option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer: $7.37
Explanation:
The price of a put option with the same exercise price would be calculated as:
C + Xe^-rt = P + S
It should be noted that in the formula above,
P = Put option price
C = price of call option
S = stock price
X = exercise price
r = interest rate
t = time
We then slot in the values which will be:
= 3.95 + 83e^-2.8% × 3/12 = P + 79
P = 3.95 + 83e^-2.8% × 3/12 - 79
P = 3.95 + 82.42 -79
= $7.37
Sheridan Company has received a shipment of suits that cost $140 each. If the company uses cost-plus pricing and applies a markup percentage of 60%, what is the sales price per suit?
A. $417.
B. $400.
C. $350.
D. $625 .
Answer:
Selling price= $224
Explanation:
Giving the following information:
Unitary purchase cost= $140
Mark-up percentage= 60%
To calculate the selling price per unit, we need to use the following formula:
Selling price= unitary cost*(1 + mark-up)
Selling price= 140*1.6
Selling price= $224
A manufacturing firm has an annual demand of 300,000 units. Using its current operation, the firm pays $800,000 in annual fixed costs and $15.00 per unit in variable costs. A potential outsourcing provider has offered to produce the product for the manufacturer. Annual fixed costs would drop to $200,000, but variable costs would increase to $18.00 per unit. Based on this information, what should the manufacturer do
Answer:
It is cheaper to make the units in-house by $300,000.-
Explanation:
First, we need to calculate the total avoidable production costs of making 300,000 units:
Total variable cost= 300,000*15= $4,500,000
Total avoidable fixed cost= 800,000 - 200,000= $600,000
Total production cost= $5,100,000
Now, the total differential cost of buying:
Cost of buying= 300,000*18= $5,400,000
It is cheaper to make the units in-house.
Quality circles have been used successfully to solve product defect problems in U.S. firms.
True
False
Chancellor Ltd. sells an asset with a $1 million fair value to Sophie Inc. Sophie agrees to make six equal payments, each to be paid one year apart, commencing on the date of sale. The payments include principal and 6% annual interest. Compute the annual payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) $166,651. $203,351. $135,252. $191,852.
Answer:
$191,852
Explanation:
The computation of the annual payment is shown below
Given that
Loan Amount (P) = $1,000,000
Annual Interest Rate (r) = 6.00% per year
Loan Period (n) = 6 Years
Now
The Annual Lona Payment is
= [P × {r × (1 + r)^n}] ÷ (1 + r)^n - 1
= [$1,000,000 x {0.06 x (1 + 0.06)^5}] ÷ [(1 + 0.06)^6 - 1]
= $191,851.5363
= $191,852
Hence, the annual payment is $191,852
The Johnson Drum Company is planning to build a new factory. The purchase of the land, building the plant, and installation of equipment will take place over a 2-year period. The following are planned cash outflows:
Year Cash Outflow 0 $3,500,000 1 $4,750,000 2 $6,100,000
Johnson Drum's cost of capital is 14%, and its marginal tax rate is 35%. What is the NINV measured in present value terms today?
Answer:
$12,356,650
Explanation:
Calculation for What is the NINV measured in present value terms today
Year Cash Outflow PVIF PV of NINV
Year 0 $3,500,000 * 1.000 = $3,500,000
Year 1 $4,750,000* 0.877 =$ 4,165,750
Year2 $6,100,000* 0.769 =$4,690,900
Total NINV=$12,356,650
(3,500,000+4,165,750+=4,690,900)
Therefore the NINV measured in present value terms today will be $12,356,650
Discuss the priority of charges whenever a company needs to pay off all of its creditors’ debts
A company's_______ tells you how much money the company has left over after subtracting all expenses. *
a) Net Profit
b) Gross Profit
c) Revenue
d) Cost Of Goods Sold (COGS)
Answer:
net profit
Explanation:
net profit is the money left after all cost are deducted
Answer:
D: COGS
Explanation:
A company's COGS tells you how much money the company has left over after subtracting all expenses
A drawback of countertrade is that it fails to enable firms to finance an export deal. it is detrimental to the economy of the importing country. developing nations have trouble raising the foreign exchange necessary to pay for imports. it does not allow firms to invest in an in-house trading department dedicated to arranging and managing deals. it may involve the exchange of poor-quality goods that cannot be disposed of profitably.
Answer: it may involve the exchange of poor-quality goods that cannot be disposed of profitably.
Explanation:
Countertrade is a form of trade that typically occurs in international trade when rather than exchanging goods or services for foreign exchange, the goods are being exchanged for another good. It is just like a bartee system.
It should be noted that a disadvantage of this is that it may involve the exchange of poor-quality goods that cannot be disposed of profitably. This is because when a particular country has a low quality good, the counter can use the opportunity to exchange the low quality goods with another country during the counter trade.
Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 280 shares to its attorneys in payment of a $4,800 charge for drawing up the articles of incorporation. The entry to record this transaction would include:__________.
a. A debit to Organization Expenses for $4,800.
b. A debit to Organization Expenses for $2,800.
c. A credit to Common Stock for $4,800.
d. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,800.
e. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.
Answer:
a. A debit to organization expenses for $4800
Explanation:
Based on the information given we were told
the corporation issued a 280 shares in payment of the amount of $4,800 which was a charge for drawing up the articles of incorporation . Therefore the journal entry to record this transaction would include A debit to organization expenses for the amount of $4,800 that was charge for drawing up the articles of incorporation.
A company's managers have decided to issue bonds to raise financial capital. What is the first step in this process?
A. Selling the bonds to investors
B. Contacting a financial advisory firm
C. Filing documents with the SEC
D. Determining the firm's creditworthiness
E. Preparing documentation
Answer: Contacting a financial advisory firm
Explanation:
Since the company's managers have decided to issue bonds to raise financial capital, the first step in this process is for them to contact a financial advisory firm.
The financial advisory firm would help in giving advice and also consultation regarding the finance of the company and provide them with strategies that can help the company reduce costs and achieve their financial goals.
