Answer:
The present value of growth opportunities is $23.08
Explanation:
First, we need to calculate the price with growth
Stock Price = Expected Dividend / ( Required rate of return - growth rate )
Where
Expected Dividend = $5
Required rate of return = 13%
Growth rate = 8%
Pacing values in the formula
Stock Price = $5 / ( 13% - 8% )
Stock Price = $100
Now determine the expected EPS
EPS = Dividend / Payout ratio
Where
Dividend = $5
Payout ratio = 50%
Placing values in the formula
EPS = $5 / 50%
EPS = $10
Now calculate the present value of growth opportunity
PV of Growth opportunity = Price with growth - ( EPS / Required rate of return )
Where
Price with growth = $100
EPS = $10
Required rate of return = 13%
Placing value in the formula
PV of Growth opportunity = $100 - ( $10 / 13% )
PV of Growth opportunity = $100 - $76.92
PV of Growth opportunity = $23.08
Standard Deviation (%) R 2 Beta Standard Error of Beta TDM 13 0.49 0.83 0.11 LLW 21 0.01 0.21 0.25 What proportion of each stock's risk was market risk, and what proportion was specific risk
Answer:
Note: These values are not from this question, as this question is incomplete and lacks necessary data. So, in order to solve this question and deliver you the main concept. I have chosen some random values.
Answer is explained in the explanation section.
Explanation:
Solution:
Data Given:
This question is about the two well known Canadian Stocks namely:
1. Toronto Dominion Bank
2. Research in Motion.
Data For Toronto Dominion Bank:
For answering about the proportion of risk involved in each of stocks, we just need the value of [tex]R^{2}[/tex].
Note: These values are not from this question, as this question is incomplete and lacks necessary data. So, in order to solve this question and deliver you the main concept. I have chosen some random values.
[tex]R^{2}[/tex] value for TDB = 0.77
[tex]R^{2}[/tex] value of 0.77 means, 77% of the risk is derived from the market movements. So we can say it as this 0.77 or 77% of proportion for Toronto Dominion Bank is of market risk.
Generally speaking, in market risk there is the probability that people will lose their investments due to the factors that create negative impacts on the market.
Whereas, specific risk is totally opposite to market risk and people specific to any company or group may experience losses but not the whole market, which is the case in market risk.
Where as, remaining 0.23 or 23% of the risk is unique risk or specific risk.
Similarly for the other stock:
[tex]R^{2}[/tex] value for Research in Motion = 0.44
[tex]R^{2}[/tex] value of 0.44 means 44% of the risk is derived from the movements of the market or it is market risk. On the other hand, remaining 0.66 or 66% of the risk is specific risk or unique risk.
(b) A company had an average inventory last year of $208,000 and its inventory turnover was 6. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year
Answer: 156000
Explanation:
The average inventory during the current year would be calculated as follows:
Inventory Turnover Ratio = Cost of goods sold / average inventory
where,
Inventory turnover = 8
Cost of goods sold = $208,000 × 6 = $1,248,000
Average inventory = Unknown
Therefore, 8 = 1248000 / Average inventory
Average inventory = 1248000 / 8
Average inventory = 156,000
Opportunity cost occurs because of a producer’s need to
limit resources.
protect resources.
allocate resources.
spend resources.
Mark this and return
Answer:
allocate resources.
Explanation:
Scarcity of resources makes producers make choices on how to use the few available resources. Like other people, producers will want to do many things but are restricted by a lack of resources. Time and money are examples of scarce resources. They have to allocate the available resources among different needs and wants.
Opportunity cost is measured by calculating the value of the next best alternative.
Answer:
C On Edge Jan 2021
Explanation:
Distinguish between small and large office.
Answer:
A small office is usually found in a small organisation because the volume of clerical activities is small. An example of a large office is a bank. A factory could also be an example of a large office if it has more than ten people working in it. In a large office, work is divided among the many clerical workers.
The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by Job 603 is $1,400.How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates
Answer:
the total manufacturing overhead allocated is 610
Explanation:
The computation of the manufacturing overhead allocated is as follows;
= Assembly department + sandling department
= 50 × 11 + 15 × 4
= 550 + 60
= 610
Hence, the total manufacturing overhead allocated is 610
We simply applied the above formula so that the total manufacturing allocated to Job 603 could come
paid rent of Rs.25000 by cheque. make journal entry
Answer:
see below
Explanation:
Rent is an expense to the business. An increase in expenses is debited.
rent was paid by cheque. The transaction will reduce money held at the bank( asset) by Rs. 25,000. A reduction in assets is credited.
The journal entry will be
Rent A/c Dr. Rs. 25,000
Bank A/c Cr. Rs. 25,000
Lisa is trying to earn some extra money for a cruise she's taking in a few months, so she's made sure to book her days so that she has back to back clients. Today she's scheduled some clients to come in for simple washes and cuts between applying and finishing color treatments for other clients. Lisa plans to clean up at the end of her day to save time. What is the ergonomic issue with this situation? Select the best option. This will make her customers annoyed. She won't have enough time to perform each service. It's against licensing policy to schedule services like this. She will have long periods of holding the same posture.
Explanation:
would it be the overexaustion? I'm not even sure if its a word
Lisa is trying to earn some extra money for a cruise she's taking in a few months, so she's made sure to book her days so that she has back-to-back clients. Today she's scheduled some clients to come in for simple washes and cuts between applying and finishing color treatments for other clients. Lisa plans to clean up at the end of her day to save time. She will have long periods of holding the same posture. The correct option is D.
Why is ergonomics an issue?Muscle fatigue, muscle imbalances, and strain are all consequences of poor ergonomics. Performing the same motion repeatedly can lead to numerous muscle strains. These develop into repetitive stress injuries, some of the most frequent workplace accidents.
Working in uncomfortable positions or holding one position for a long time. assuming positions that strain the body, such as bending over to use a knife with the wrists bent or twisting the torso while lifting, or repeatedly reaching above shoulder height.
Thus, the ideal selection is option D.
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Suppose that your monthly net income is $2,540. Your monthly debt payments include your student loan payment and a gas credit card. They total $762. What is your debt payments-to-income ratio
Answer: 30%
Explanation:
We should note that debt payments-to-income ratio is calculated as:
= Debt payment / Net income
= 762 / 2540
= 0.3 or 30%
Therefore, the debt payments to income ratio is 30%
if the united states imposes an import quota on imported soybeans, how much will the united states produce domestically
Answer:
If the United States imposes an import quota, domestic production will rise, from what was produced at the world price (because the world price is the price the equilibrium price in the absence of tariffs), to the level of production determined by the domestic price.
Explanation:
This increase in production will only benefit domestic producers though, because they will now sell a higher quantity at a higher price, raising their incomes substantially.
Consumers, however, will be worse off, because before the tariff, they could buy the same amount of soybeans at the lower world price, but with the tariff, they are obliged to purchase the soybeans at the higher domestic price, lowering their available income for other goods and services.
True or False: The date line of a balance sheet depicts a specific day and not a period of time.
Determine the future value of $19,000 under each of the following sets of assumptions (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. Round your final answers to nearest whole dollar amount.)
Answer and Explanation:
The computation of the future value in the following situations:
As we know that
Future value = Present value × (1 + rate of interest)^number of years
1. For semiannually
= $19,000 × (1 + 0.10 ÷ 2 )^8 × 2
= $19,000 × (1.05)^16
= $19,000 × 2.1829
= $41,475
2. For quartely
= $19,000 × (1 + 0.12 ÷ 4 )^2 × 2
= $19,000 × (1.03)^4
= $19,000 × 1.2268
= $23,309
3. For monthly
= $19,000 × (1 + 0.36 ÷ 12 )^15
= $19,000 × (1.03)^15
= $29,602
Q1. While walking to the local electronics store, MusicLover ponders his desire for a high-end noise cancelling headset with soft leather earcups, and realizes that he would purchase it if it were priced at $150, or $180, or even $195, but not at $210. On arriving at the store, he finds that the product is priced at $170. He buys it! Based on this information, Which number is closest to MusicLover's reservation price or willingness-to-pay (WTP) for the headset
Answer: b. $200
Explanation:
A person's willingness-to-pay refers to the maximum price they would be want to pay for a good or service. For instance, if you refused to pay more than $25 for a jar of honey, your willingness-to-pay for the jar of honey is $25.
In this scenario, MusicLover will buy the headset if they are $195 but not if they are $210. His willingness to pay is therefore between $195 and $210. From the options, the only figure in that range is option B with $200.
Write a report to senior management why you believe that a cloud-based B2B solution is best for your firm.
Answer
Hello, the question seems to be asking for one to justify why cloud-based B2B solutions should be adopted rather than another kind of solution. However, the background leading up to this comparison, and the reason why we are justifying one of the solutions above another is not clearly indicated.
We can however make certain assumptions.
Assuming there was a loss of revenue by your company resulting from poor communication between the company and its supply chain, it could potentially lead up to the conversation where a solution is being contemplated.
Explanation
So if a cloud-based Business to Business solution is under consideration, here are possible reasons why the company can opt for the same.
A) Ease of Communication: It will give direct communication and access between your firm and its supply chain. Thus making for faster and real-time decision making. It will make the connection and collaboration between partner firms easier. It will also make building, and managing your partner business ecosystems easier.
B) Cheaper Solutions: Cloud-based business to business solutions are more robust yet cheaper than having an inbuilt inhouse business solution.
C) Flexibility and Scalability: With a cloud-based solution, your company does not need to invest money in the acquisition and maintenance of permanent servers, systems, and storage capacity which all increase as the business expands. Instead, you can opt for more or less space or computing power with the service provider based on your organization's needs.
Unlike owned B2B solutions, you cannot descale because that would mean selling off some of your hardware. But this is totally possible with cloud-based solutions.
D) Competitive Agility: It is important to note that many successful enterprises use cloud-based Business to Business solutions such as Asada, IBM, Basecamp, Descartes, etc. So to remain relevant within its industry, your company should consider the use of cloud-based B2B solutions.
E) Risk Reduction: When your company owns it's own IT infrastructure, there will always be the risk of having to deal with downtimes. This can happen due to Natural disasters such as floods, hurricanes, etc. There are also power outages or equipment failures etc. By outsourcing this component of your company's operation, the risks are also outsourced.
Cheers
If the free market (private) equilibrium quantity is greater than the socially optimal quantity, one can infer that:
Answer:
The only that socially optimal quantity is lower than the equilibrium quantity is that the production of that specific good results in a negative externality. Negative externalities reduce social benefits of third parties, even though they do not actively participate in any type of transaction.
Using the information below for Laurels Company; determine the manufacturing costs added during the current year:
Direct materials used $5,000
Direct labor 7,000
Total factory overhead 5,100
Beginning work in process 3,000
Ending work in process 4,000
a. $12,000.
b. $16,100.
c. $17,100.
d. $18,100.
e. $13,600.
Answer:
C. $17,100
Explanation:
The manufacturing cost for the year is computed as;
Manufacturing cost = (Direct materials + Direct labor + Total factory overheads) + Beginning work in process - Ending work in process
Direct materials
$5,000
Direct labor
$7,000
Total factory overheads.
$5,100
Direct manufacturing costs
$17,100
Add beginning work in process
$3,000
Less ending work in process
($4,000)
Total manufacturing costs
$16,100
Dealing with a customer or seller in another country ________.
a. A U.S. company can always choose to be governed by U.S. law.
b. A U.S. company is always required to deal with the law of the foreign country.
c. Always raises issues over which country or countries law(s) will be applied and issues of jurisdiction to hear the case.
Answer:
iraq
Explanation:
Dealing with a customer or seller in another country A U.S. company is always required to deal with the law of the foreign country. Thus the correct option is B.
What is a Customer?A customer is referred to as an individual who purchases a product or service. He may or may not be the consumer. A consumer refers to a person who utilizes or consume goods and service.
An e-commerce company will be governed by the rules and legislation of any other countries or states where you sell to customers. In the case, when the customer makes any complaint it will be handled by a foreign jurisdiction.
Therefore, it is crucial to start any business on an international border first need to check the legal environment to avoid any consequences in later terms and helps in the better positioning of the business.
Therefore, option B is appropriate.
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James Company has 1,000 shares of $10 par preferred stock, which were issued at par. It also has 25,000 shares of common stock outstanding, and its total stockholders' equity equals $500,000. The book value per common share is:
Answer:
The book value per common share is: $19.6
Explanation:
1,000 × 10 = 10,000
500,000 - 10,000 = 490,000
490,000 ÷ 25,000 = 19.6
Tanya (born 10-31-90) is single, has no dependents and will not itemize deductions. She cannot be claimed as a dependent by anyone else. Tanya can claim adjustments of $800 for her student loan and $1200 for an IRA. She had the following income: Wages $22,594 Bank interest $320 Unemployment $250 Alimony (Pre 2018) $2,400 What is her taxable inccome
Answer:
Tanya
Taxable Income is:
$23,564
Explanation:
a) Data and Calculations:
Gross Income:
Wages $22,594
Bank interest $320
Unemployment $250
Alimony (Pre 2018) $2,400
Total gross income $25,564
Claim adjustments:
Student loan interest ($800)
IRA (1,200)
Taxable income $23,564
b) Tanya's taxable income is the amount of income that will be used to calculate how much tax she owes to the government in a given tax year. It is generally described as the adjusted gross income because it is her total income, known as her “gross income,” minus any deductions or exemptions allowed in that tax year.
Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $4,300 and a fair market value of $15,000. Kelsey will invest a building with a book value of $34,600 and a fair market value of $57,600. What amount will be recorded to Kelsey's capital account
Answer: $57600
Explanation:
The capital account of a business indicates the net worth it that particular business. The fair value of an asset brings about an increase to the capital account.
In this scenario, the amount that will be recorded to Kelsey's capital account will be her fair market value of the building which is $57,600.
what is legislative
Answer:
having the power to make laws
Explanation:
Answer:
having the power to make laws.
Do you agree with the decision from below mention case?
While driving his employer’s vehicle to call on a customer, Mandel decides to stop at his bank—which is one block off his route—to make a personal deposit. Mandel then negligently runs into a parked vehicle owned by Kelly. In this situation, because Mandel’s detour from the employer’s business is not substantial, he is still acting within the scope of employment, and the employer is liable.
The result would be different, however, if Mandel had decided to pick up a few friends for cocktails in another city and in the process had negligently run into Kelly’s vehicle. In that situation, the departure from the employer’s business would be substantial, and the employer normally would not be liable to Kelly for damages. Mandel would be considered to have been on a "frolic" of his own.
Answer:
I do agree with the decision.
Explanation:
Luckily for all of us, employees are still human beings. As such, we are allowed certain privileges when using a company's car, e.g. we are allowed to go to a coffee shop to buy a cup of coffee or eat something while we are using the car. In this case, Mandel went to the bank, which was only 1 block away form his route, which is still under the normal scope of what an employee can do. He could argue that he wanted to check his bank account were he deposits his paycheck.
It is very different if Mandel does something irresponsible like going out with friends or drinking. In no way these actions can be related with his normal employment activities.
can produce two types of light fixtures, the indoors model and the outdoors model. if the total sales are expected to be 21,050 units, what would be the totla operating income of the company if it decides to buy the new production equipment
Answer:
$1,000,000
Explanation:
The computation is shown below:
Particulars Indoors Model Outdoors Model Total
No of Units
(21,050 in ratio 2:3) 8,420 12,630 21,050
Sales 1,263,000 2,778,600 4,041,600
Less: Variable costs 168,400 505,200 673,600
Contribution margin 1,094,600 2,273,400 3,368,000
Less: Fixed costs
(2,160,000 + 208,000) 2,368,000
Operating Income 1,000,000
Brent has to complete a final group project and his group members aren't
doing their share of the work. Brent generally believes in being kind to others,
but at the last group meeting, he was so frustrated that he yelled at the group
and threatened to stop working on the project. Which value system is mainly
in question here?
A.ethics
B.law
C.business law
M.morality
Answer: M. Morality
Explanation:
Morality is the value system is mainly in question here. Hence, option D is correct.
What is Morality?Moral and just standards define what constitutes unacceptable behavior in society and what constitutes right and acceptable behavior.
A civilisation uses moral standards to decide what is reasonable, right, or acceptable. The majority of nations agree that murder is evil, while some grant an exemption for murder committed when waging a war to defend the nation or when acting in self-defense.
According to Louis Pojman, morality has five objectives: "keep society from disintegrating," "lessen human suffering," "promote human flourishing," "resolve conflicts of interest in just and orderly ways," and "give praise and blame, reward the good, and punish the guilty".
Thus, option D is correct.
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Assume the CPI increases from 100 to 110 and a person's nominal income increases from $50,000 to $55,000 over the same period. This person's real income has
Answer and Explanation:
The computation of the real income percentage is as follows:
The Increase in CPI would be
= (110 - 100) ÷ 100 × 100
= 10%
And, the increase in nominal income is
= ($55,000 - $50,000) ÷ ($50,000) × 100
= 10%
As the CPI and increase in nominal income percentage is same
SO the real income would also remains the same
A g drought ravaged crops across the United States during the summer of 2012. What is the likely impact of this drought on the price of corn
Answer: Increase
Explanation:
The price of corn will increase sharply due to the relative scarcity of corn in the market.
Graphically depicted, the Supply curve will shift to the left due to reduction in supply of corn brought upon by the drought. It will then intersect with the demand curve to bring about a new equilibrium price with a higher price.
Davis Enterprises has 250,000 shares of $5 par value common stock outstanding. Davis declares $2 dividend on March 2, payable on April 2. The journal entry for the payment of the Cash dividend on April 2 is:_____
Answer with explanation:
Total shares = 250,000
Dividend per share = $ 2
Total dividend = (Total shares) x (dividend ) = 250,000 x 2 = $500,000
So, the journal entry for the payment of the Cash dividend on April 2 would be :
Date particular business transaction Debit Credit
April 2 Dividend payable A/c Dr. $500,000
To cash A/c Cr. $500,000
The journal entries that would take place in the books of Davis enterprises as on April 2nd will take effect as debit in dividend payable Ac which would in turn be credited to the Cash Ac.
Journal entries is a simple format of recording the financial transactions of an organization in a chronological manner as they keep occurring in the business.
There will be debit in dividend payable account which would lead to take entry in the cash ac in the ledger accounts of the organization, here, Davis Enterprises.There are 250000 share outstanding at the end of Davis Enterprises and the dividend of $2 has been declared per share which will lead to declaration of $500000 dividend in amount.This $500000 will be distributed proportionately among the shareholders of the firm by virtue of number of shares being held by them in their demat accounts as on the record date.Hence, the dividend of $500000 will be declared by Davis Enterprises and the journal entries are attached below.
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Countries often use various government regulations to manipulate the amount of goods and services imported from other countries. This activity is important because it will help you to understand the effects of trade protectionism on the overall international trading atmosphere.
Required:
Challenge your knowledge of the different types of international trade barriers.
Answer:
Solar ⇒ Tariffs
Tariffs are taxes on imported goods such that their prices are increased so that the domestic producers of that good can be able to compete with the imports which is the case here.
Numbers ⇒ Import Quotas
Import Quotas refer to limits on the amount of imports into a country. When the imports reach a certain amount they will be no more imports for the year.
Aluminium ⇒ Import Quotas
By only allowing a certain number of sheets to come into the country the US has imposed an import quota on the metal as per the definition above.
Materials ⇒ Embargoes and Sanctions
Embargoes and sanctions limit the trade of goods and services to the country under sanctions or being embargoed. Here the US will not ship goods to North Korea as they are under sanctions for their nuclear program.
Prohibition ⇒ Embargoes and Sanctions
This scenario describes an embargo which means that there is a ban on trade of certain goods and services with the nation under embargo.
Imports ⇒ Tariffs
Customs duties are taxes on imports which therefore makes them tariffs.
if you invest $200 the end of each month over the next 20 years in a mutual fund that has a nominal annual rate of 12% how much will you get at the end of 20 years
Answer:
I will get $197,851 at the end of the 20 years.
Explanation:
Note: It is assumed the interest is compounded monthly
Use the following formula to calculate the amount to be received after 20 years
Future value of annuity = Annuity payment x ( ( ( 1 + periodic interest rate )^ Numbers of periods ) - 1 ) / periodic interest rate )
Where
Annuity Payment = $200 monthly
Periodic Interest rate = Nominal Interest rate / Numbers of periods in a year = 12% / 12 months = 1%
Numbers of periods = Numbers of years x Numbers of periods in a year = 20 years x 12 months = 240 months
Placing values in the formula
Future value of annuity = $200 x ( ( ( 1 + 1% )^240 ) - 1 ) / 1% )
Future value of annuity = $197,851.07
Future value of annuity = $197,851
Kaye Blanchard is 50 years old. She has $48,000 of adjusted gross income and $11,600 of qualified medical expenses. She will be itemizing her tax deductions this year. How much of a tax deduction will Kaye be able to deduct (assume 10% floor for deduction)
Answer:
$6,800
Explanation:
Calculation for How much of a tax deduction will Kaye be able to deduct (assume 10% floor for deduction)
Tax deduction=$11,600-(10%*$48,000)
Tax deduction=$11,600-$4,800
Tax deduction=$6,800
Therefore the amount of tax deduction that Kaye will be able to deduct (assume 10% floor for deduction) is $6,800
itemise the importance of marketing in an economy
Answer:
Marketing drives a consumer economy, promoting goods and services and targeting consumers most likely to become buyers. Higher sales for a business that employs successful marketing strategies translate into expansion, job creation, higher tax revenue for governments and, eventually, overall economic growth.
