Answer:
the answer would have to be a
Milner Developers proposed an offer to Henry Wright,an independent contractor,offering to hire him for their next project.They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance but received no response.Wright responded to the offer after a delay of two months with a quote for a higher amount than that mentioned by Milner Developers.Do the two parties have a binding contract?
A) No,because the offer made by Milner Developers was ambiguous.
B) No,because Wright's letter was a counteroffer to the original offer.
C) Yes,because Milner Developers did receive a response from Wright.
D) Yes,because Wright's silent signaled his acceptance of the offer.
Answer: b. No, because Wright's letter was a counteroffer to the original offer.
Explanation:
Contract is issued based on a binding agreement between two parties, the employer and the employee. The employer gives the terms and conditions which embeds the allowances, while the employee receives the letter and is either expected to give a response there or after a specific period of time, the letter cannot be changed by the employee after delay but there could be negotion within the time frame given. Wright had to offence to be blamed for; 1) he delayed the response. 2) Requesting a higher amount after a long while.
Which of the following statements is CORRECT? a. The specific risk premium used in the CAPM is the same as the risk premium used in the bond-yield-plus-risk-premium approach. b. Beta measures market risk, which is, theoretically, the most relevant risk measure for a publicly-owned firm that seeks to maximize its intrinsic value. This is true even if not all of the firm's stockholders are well diversified. c. An advantage shared by both the DCF and CAPM methods when they are used to estimate the cost of equity is that they are both "objective" as opposed to "subjective," hence little or no judgment is required. d. The discounted cash flow method of estimating the cost of equity cannot be used unless the growth rate, g, is expected to be constant forever. e. If the calculated beta underestimates the firm's true investment risk—i.e., if the forward-looking beta that investors think exists exceeds the historical beta—then the CAPM method based on the historical beta will produce an estimate of rs and thus WACC that is too high.
Answer:
Correct Answer:
b. Beta measures market risk, which is, theoretically, the most relevant risk measure for a publicly-owned firm that seeks to maximize its intrinsic value. This is true even if not all of the firm's stockholders are well diversified.
Explanation:
In the Options given above, the only one that is TRUE is Option B which is about a Beta measures market risk found in a publicly-owned firm.
Claire Nevsky is in charge of advertising for her company and has produced a 30-second television spot to promote one of the company's new products. One of her assistants just out of college believes that the commercial has too much visual and audio information packed into such a small amount of time. The assistant is specifically concerned about limits in the receiver's
Answer:
Channel capacity
Explanation:
The channel capacity is the rate in which the data and information could be converted through a channel of communication
Here, in the given question as it is mentioned that the commercial includes more visual and audio information that to be converted into a less amount of time so this determines the channel capacity for the limits
Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 30%, and the current dividend yield is 2%. Its beta is 1.2, the market risk premium is 8%, and the risk-free rate is 4%. (LO13-4) a. Use the CAPM to estimate the firm’s cost of equity. b. Now use the constant growth model to estimate the cost of equity. c. Which of the two estimates is more reasonable?
Answer:
a. 13.60 %
b. 10.00 %
c. CAPM accounts for investment risk and can be applied by any company irregardless of dividend size or growth rate.
Explanation:
Cost of Equity is the return required by holders of Common Stock
1. CAPM
Cost of Equity = Expected Return on Risk Free Security + Company`s Beta × Market Risk Premium
= 0.04 + 1.20 × 0.08
= 13.60 %
2. Constant growth model
Cost of Equity = Current Dividend Yield + Expected Growth
= 2 % + 8 %
= 10.00 %
How do I do this? I think I know how But I am not 100% sure! Thanks in advance! I will mark answer the Branliest! Calculate the break-even level of customers needed.
Answer:
Break-even point in unit = 250 units
Explanation:
Given:
Fixed cost = $500
Variable cost = $2
Number of customer = 325
Sales amount = $4
Find:
Break-even point
Computation:
Break-even point in unit = Fixed cost / (SP - VC)
Break-even point in unit = 500 / ($4 - $2)
Break-even point in unit = 250 units
On May 10, 2017, Vaughn Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2017. Greig agrees to pay the full contract price of $1,990 on July 15, 2017. The cost of the goods is $1,310. Vaughn delivers the product to Greig on June 15, 2017, and receives payment on July 15, 2017. Prepare the journal entries for Vaughn related to this contract. Either party may terminate the contract without compensation until one of the parties performs.
Answer:
June 15, 2017, goods sold on account to Greig
Dr Accounts receivable 1,990
Cr Sales revenue 1,990
Dr Cost of goods sold 1,310
Cr Merchandise inventory 1,310
July 15, 2017, payment collected from Greig
Dr Cash 1,990
Cr Accounts receivable 1,990
The transaction must be recorded only after some type of consideration is exchanged between the parties.
A project manager has just found out that a major subcontractor for her project is consistently late delivering work. The project team member responsible for this part of the project does not get along with the subcontractor. To resolve the problem, the project manager says, "You both will have to give up something to solve this problern," What conflict resolution method is she using
Answer:
compromise
Explanation:
Compromise as a conflict resolution strategy is one that involves finding acceptable reasons such that all the parties involved in the conflict have their concerns satisfied partly.
The project manager saying "You both will have to give up something to solve this problem" means that both parties involved in the conflict will have to come to an agreement that suits or benefits both parties.
Cheers.
Mortgage loan originator Carol is in a hurry to leave on her vacation, and she leaves a customer's file that contains his Social Security number and bank account numbers on her desk. Carol's carelessness is violating what federal law
Answer: Fair and Accurate Credit Transaction Act
Explanation:
From the question, we are informed that Mortgage loan originator Carol is in a hurry to leave on her vacation, and she leaves a customer's file that contains his Social Security number and bank account numbers on her desk.
Carol is violating the Fair and Accurate Credit Transaction Act. The Act was put in place to detect and also hinder Identity theft.
Define Networking
Explain types of Network
Explain topologies
Answer: Network topology is the way a network is arranged , including the physical or logical description of how links and nodes are set up to relate to each other. There are numerous ways a networks can be arranged , all with different pros and cons and some are more useful in certain circumstances than others. hope you understand
Explanation:
The decision to take less salary in a year when the company was less profitable and employees' pay was cut is an example of Nishimatsu's:
Answer: commitment
Explanation:
The Chief Executive Officer of Japan Airlines, who was Haruka Nishimatsu, was an example of a strategic leader who had a high performance.
The The decision to take less salary in a year when the company was less profitable and employees' pay was cut is an example of Nishimatsu commitment to the company.
On January 1, a company issues bonds dated January 1 with a par value of $320,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 6% and the bonds are sold for $333,650. The journal entry to record the first interest payment using the effective interest method of amortization is: (Rounded to the nearest dollar.)
Answer: Debit interest expense $10,010, debit premium on bonds payable $1,190, credit cash $11,200.
Explanation:
Given the following :
Par value = $320,000
Bonds payable = $333,650
Market rate = 6% compounded semianually
Contract rate = 7%
Cash credited :
Par value * contract rate = $320,000 * 0.07 * 0.5 = $11,200
Interest Expense :
Bonds payable * market rate * 0.5
$333,650 * 0.06 * 0.5 = $10,009.5 (debit)
= $10,010 ( nearest dollar)
Discount Premium on bonds :
Cash - interest expense
$11200 - $10010 = $1,190
"A customer contributed $20,000 to a variable annuity contract. The account value has grown over the years and the NAV is now $35,000. The customer is now age 60, and takes a lump-sum distribution of $20,000 to pay for expenses. Which statement is TRUE?"
Answer: C. $15,000 of the distribution is taxable and $5,000 is not taxable
Explanation:
The options to the question are:
A The entire $20,000 distribution is not taxable
B $5,000 of the distribution is taxable and $15,000 is not taxable
C $15,000 of the distribution is taxable and $5,000 is not taxable
D The entire $20,000 distribution is taxable
It should be noted that variable annuity contributions are typically not tax-deductible. Since the customer contributed $20,000 to a variable annuity contract and the account value has grown over the years and the NAV is now $35,000; when the customer takes a lump-sum distribution of $20,000. From the $20,000, $15,000 of the distribution is taxable and $5,000 is not taxable.
The Easton manufacturing Company is looking to replace its conveyor belt system. A new system will cost $345,000, and will result in cost savings of $220,000 in the first year, followed by savings of $100,000 per year over the following 3 years. If the firm’s cost of capital is 9%, what is the discounted payback period for this project? (Do not round intermediate computations. Round final answer to two decimal places.)
Answer:
It will take 3 years and 279 days to cover for the initial investment.
Explanation:
Giving the following information:
Initial investment= $345,000
Annual cost saving:
Cf1= $220,000
Cf2 to 4= $100,000
Discount rate= 9%
The payback period is the time required to cover for the initial investment:
Year 1= (220,000/1.09) - 345,000= -143,165.14
Year 2= (100,000/1.09^2) - 143,165.14= -58,997.14
Year 3= (100,000/1.09^3) - 58,997.14= 18,221.21
To be more accurate:
(58,997.14/77,218.35)*365= 279 days
It will take 3 years and 279 days to cover for the initial investment.
only a monopolistically competitive firm operates at its efficient scale. both a perfectly competitive firm and a monopolistically competitive firm operate at their efficient scale of production. neither a competitive firm nor a monopolistically competitive firm charges a markup over marginal cost. only a perfectly competitive firm operates at its efficient scale.
Answer:
Correct Answer:
only a monopolistically competitive firm operates at its efficient scale.
Explanation:
In a given market, a given organization or firm could operate either in a monpolistically competitive or perfectively competitive at its efficient scale. However, in the long run, only a monopolistically competitive firm operates at its efficient scale.
Silca Electronics Inc. is a consumer-electronics company based in the country of Pelo. It has approximately 300 stores across the country and is already active in three foreign countries. It attempts to establish itself successfully in the country of Zevar, and uses its low-cost strategy to do so. However, due to the additional costs associated with training, coordinating across geographic distances, and other costs associated with doing business in an unfamiliar cultural and economic environment, Silca Electronics Inc. incurs huge financial losses in Zevar. In this scenario, Silca Electronics Inc.'s failure to establish itself successfully in Zevar occurs most likely because:
Answer:
It under-estimated its cost and liabilities in expanding to Zevar market
Explanation:
The pricing strategy adopted by Silca is low cost , which is the practice of stimulating demand and gaining market share through setting a lower price with the benefit of higher profit per sale , which is made possible as a result of lower cost of production.
However , the processes involved in expansion to Zevar attracted additional costs which violated the the lower cost principle, as the cost of operation became higher than would have been , leading to a financial loss.
It is apparent here that Silca did not do its due diligence properly before going ahead with the expansion move as cost and liabilities appeared to have been under estimated.
Linda’s Autoplex performs oil changes on automobiles, light trucks, and sport utility vehicles. She is a profit- maximizing business owner whose firm operates in a competitive market. The marginal cost of an oil change is $10. The marginal productivity of the last worker that Linda hired was 1.5 oil changes per hour. What is the maximum hourly wage that Linda was willing to pay the last worker hired?
Answer:
$15 per hour
Explanation:
In order for a profit maximizing firm to operate in a competitive market, the marginal revenue product (MRP) must be equal to the marginal cost (MC).
MRP = 1.5 oil changes per hour x $10 per oil change = $15
since MRP = MC, then Linda should pay her worker a maximum of $15 per hour
4. Mathew is a brand manager for a large chocolate producer. Every six months, Mathew and a team of colleagues review the new product proposals that come from employees and managers and choose two that the company will pursue. This activity is part of
Answer:
product screening
Explanation:
The activity being described in this question is part of the product screening. This is a step in the product development process where different product designs are evaluated and analyzed according to the company's goals and criteria and those that meet all of their requirements are chosen for production while the ones that don't are scraped. This is what Mathew is doing by choosing the two product proposals that meet the companies requirements and which they believe will be good to pursue.
Seafood Trading Co. commenced operations during the year as a large importer and exporter of seafood. The imports were all from one country overseas. The export sales were conducted as drop shipments and were merely transshipped at Seattle. Seafood Trading reported the following data: Purchases during the year $12.0 million Shipping costs from overseas 1.5 million Shipping costs to export customers 1.0 million Inventory at year end 3.0 million What amount of shipping costs should be included in Seafood Trading’s year-end inventory valuation? A. $250,000 B. $0 C. $1,125,000 D. $375,000
Answer:
D. $375,000
Explanation:
given data
Purchases during the year = $12.0 million
Shipping costs from overseas = 1.5 million
Shipping costs to export customer = 1.0 million
Inventory at year end = 3.0 million
solution
we get here Seafood Trading’s year-end inventory valuation.
and we know here that shipping cost to export to customers is selling expense but not include the inventory.
so
shipping costs = ( Inventory at year-end ÷ Purchases during the year ) × Shipping costs from overseas ..................1
put here value and we get
shipping costs = [($3.0 million ÷ $12.0 million) × $1.5 million]
shipping costs = $375,000
Links Cable Network has decided to offer a one-hour appointment window for customers needing installation or repair of its service, which will require the company to have several technicians on call. Links hopes this practice will give it an advantage over the competition, none of which have adopted such a practice. Links Cable Network is introducing a(n) ______ change.
Answer:
Radically innovative.
Explanation:
In this scenario, Links Cable Network has decided to offer a one-hour appointment window for customers needing installation or repair of its service, which will require the company to have several technicians on call. Links hopes this practice will give it an advantage over the competition, none of which have adopted such a practice. Links Cable Network is introducing a radically innovative change.
A radically innovative change is a strategic business approach aimed at developing the business drastically.
You are a policy analyst in the Department of Energy. You were just offered a job with a renewable energy company. How long must you wait before you can lobby the Department of Energy on behalf of your new employer?
Answer:
2 years
Explanation:
In case when you offered a job from a renewable energy company and you are currently working as a policy analyst in the energy department so you have to wait for 2 years prior for lobbing the department of energy on new employer behalf
Hence, the time period is for 2 years and the same is to be considered for the given situation.
In the second case study, why did the court MOST likely feel that the agent's limited dealings with the buyer did not constitute the creation of an agency? A) The agent never spoke directly with the buyer. B) Dual agency is illegal. C) The buyer and agent did not complete an agency agreement, either oral or written. D) The buyer did not like the agent from the very beginning.
Answer:
C) The buyer and agent did not complete an agency agreement, either oral or written.
Explanation:
Agency agreement, which is a binding contract between an agent and another person, (most likely a buyer) is an important document which helps to establish the relationship between both and the agency which renders the help. Since, there was no agreement whether oral or written, their dealings do not constitute the creation of an agency.
Data for Shelby Company for the current year is as follows: Sales Revenue $10,000 Cost of Goods Sold: Beginning Merchandise Inventory $3,000 Net Cost of Purchases 7,000 Cost of Goods Available for Sale 10,000 Less: Ending Merchandise Inventory 2,000 Cost of Goods Sold 8,000 Gross Profit $2,000 Assume that the ending Merchandise Inventory was accidentally overstated by $500. What are the correct amounts for Cost of Goods Sold and Gross Profit?
Answer:
$8,500 and $1,500
Explanation:
The computation of the corrected amount for the cost of goods sold and the gross profit is shown below:
Since the ending inventory is overstated by $500 that means it is extra added so we deduct this amount from the ending inventory i.e
= $2,000 - $500
= $1,500
Now the cost of goods sold is
= Sales revenue - ending inventory
= $10,000 - $1,500
= $8,500
And, as we know that
Gross profit = Sales revenue - the cost of goods sold
= $10,000 - $8,500
= $1,500
Ultra Big Corporation, Inc. is preparing its annual report for shareholders. The statement of cash flows, which is included in the report, shows that the company sold one million shares of stock but repurchased half a million of those shares. It also shows that the company issued a ten-cent per share dividend. Where would this information be found on the statement of cash flows?
Answer:
Cashflow from financing activitues
Explanation: A company's statement of cashflow refers to a concise and segmented financial statement broken into three parts namely the operations, financing and investing activities showing changes in the account and cash inflow and outflow from the company's dealings. The scenario stated stated above would be recorded under the cashflow from financing activities as it is that part of the cashflow statement which shows net cashflow utilized in funding activities. This section contains financial cashflow on income from Issuance of debt or bond, stock repurchase and payment of Dividend which are all highlighted in the scenario above.
what is diminishing return law???
Answer:
Numerous different factors are presumed constant by the law. An additional description is given below.
Explanation:
In psychology, a definition that unless certain input factor becomes continued to increase whereas some considerations (hardware as well as a conference room) are kept constant, the outcome per unit including its dependent variable will inevitably decrease.This law specifically states that such an increased amount of some kind of single manufacturer component would result in a decrease in gross profit efficiency.The law of diminishing return is that marginal return states that, at some point that adding an additional factor of the production results in smaller increases in the output.
Hope this helps!
Jarden Company has credit sales of $3,600,000 for year 2017. On December 31, 2017, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 830,000 Not yet due 1.25 % 254,000 1 to 30 days past due 2.00 86,000 31 to 60 days past due 6.50 38,000 61 to 90 days past due 32.75 12,000 Over 90 days past due 68.00 Problem 7-3A Part 1 Required: 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method.
Answer:
$41,650
Explanation:
The computation of Estimate the required balance of the Allowance for Doubtful Accounts is shown below:-
Particulars Account receivable % Estimated uncollectible
Not yet due $830,000 1.25% $10,375
1 to 30 days $254,000 2% $5,080
31 to 60 days $86,000 6.50% $5,590
61 to 90 days $38,000 32.75% $12,445
Over 90 days $12,000 68.00% $8,160
Estimated balance $41,650
Rubinski Enterprises Inc. has long-term bonds worth $20 million, retained earnings of $45 million, accounts payable of $10 million, notes payable of $12 million, and inventory worth $18 million. What is the value of total liabilities of Ruby Enterprises
Answer:
$42,000,000
Explanation:
Rubinski enterprise has a long term bond of $20 million
The retained earnings is $45 million
The account payable is $10 million
The notes payable is $12 million
The inventory is $18 million
Therefore, the value of the total liabilities of Ruby enterprises can be calculated as follows
= long term bond+ account payable+notes payable
=$20,000,000+$10,000,000+$12,000,000
= $42,000,000
Hence the value of total liabilities of Ruby enterprises is $42,000,000
Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 120 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
Answer: Buy U.S. dollars.
Explanation:
As the currency market is also controlled by the laws of supply and demand where an increase in demand increases price and a decrease in supply does the same, should the US want to increase the value of the dollar, they should buy more US dollars.
This action would increase the demand for the dollar while reducing the amount of dollars in the market. This will invariably lead to an increase in the price of the dollar all else equal.
An agent of a broker-dealer "A" has been terminated and is associating with broker-dealer "B." The terminated agent agrees to turn over his clients to another agent at broker-dealer "A" in return for half of the commissions generated by those clients over the following year. This arrangement is:
Answer: Prohibited
Explanation:
This agreement is prohibited because agents working in different firms are not allowed to split commissions. The agent who has been terminated from broker-dealer A is associating with broker-dealer B and seeing as the arrangement is for a year, it will last the entirety of the time that both agents will be in different firms.
Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to
Answer:
Franchising
Explanation:
Franchising is a strategy that companies use to expand their business in which one party called the franchisee pays the other party the franchisor a specific amount of money to have access to the company's processes, knowledge and brand to sell the product or service in a specific place using the name of the company. This would be the best suited strategy for this service because the company can expand without having to get a big amount of capital using the resources of other people and this can allow to grow faster and the franchisee can have a better knowledge of the specific market.
DEF Company is incorporating and coming to market with an initial public offering of common stock. The company has already filed their registration statement and the registration has become effective. The company sees that demand for securities is high, and decides to amend the total amount of common stock that will be offered. Would this amendment be allowable under the rules of the Uniform Securities Act
Answer: Yes. The amendment be allowable under the rules of the Uniform Securities Act.
Explanation:
Based on the scenario that have been provided in the question,the amendment will be allowable under the rules of the Uniform Securities Act.
It should be noted that even though the amendments that are made to a registration statement are not allowed when it's beyond the effective date, there is a limited exception when the modification is made to the amount of securities that are being offered.
