Supernormal Growth Rizzi Co. is growing quickly. Dividends are expected to grow at a 25 percent rate for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 13 percent and the company just paid a $3.10 dividend, what is the current share price?

Answer:

Sales (Dr.) $45,000

Income Summary (Cr.) $45,000

Income summary (Dr.) $63,900

Advertising Expense (Cr.) $1,200

Rent expense (Cr.) $5,600

Office Supplies Cost (Cr.) $9,800

Insurance Expense (Cr.) $7,000

Sales Returns (Cr.) $2,900

Interest Expense (Cr.) $3,200

Cost of Goods sold (Cr.) $27,500

Selling and administrative expense (Cr.) $6,700

Income Summary (Dr.) $250,000

Capital investment (Cr.) $ 250,000

Explanation:

Closing entries are prepared to close business transactions that occurred during the month. These transactions are closed with a contra account of Income Summary. All debit balance are credited with a debit of Income summary account and vice versa. the temporary account balances are reset to zero after closing entries are passed.

Answer:

The IPO Process

One of the underwriters in the IPO deal described above is.

a. J.P. Morgan Securities Inc.

Explanation:

J.P. Morgan Securities Inc. and the following underwriters, Goldman Sachs & Co., Bear Stearns & Co. Inc., Credit Suisse First Corporation, and Lehman Brothers Inc. was involved in the Initial Public Offering (IPO) in 1999, where $3.6 billion was raised in the United States and Canada.  An underwriter is a financial specialist, working closely with the issuing houses to determine the initial offering price of the securities.  The underwriters usually buy the securities from the issuer and then sell them to investors using its distribution network.

Answer:

b. it is appropriate to borrow if the return on the assets is greater than the cost of the financing.

Explanation:

A leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.

In Financial accounting, the concept of leverage is that it is appropriate for a business firm to borrow an amount of money (debt), if the return on the assets (capital gain or income) is greater than the cost of the financing (debt or borrowed money).

Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.

Answer:

5375

Explanation:

Given that:

Initial Fixed assets costing = $962000

Annual fixed costs = $403400

Variable cost per unit = $123.60

Sales price per unit = $249.00

Discount rate = 14%

Tax rate = 21%

The contribution per unit = Sales price - Variable cost

= $(249.00 - 123.60)

= $125.40

The present value break-even point(BEP) is the region of sales level where the net present value (NPV) equals zero.

Assuming that the sales level = p

i.e.

NPV = PV(of inflows - of outflows)

Inflows = (p * contribution per unit - annual fixed cost)( 1- tax rate) + depreciation * tax rate

= (p * 125.4 - 403400) ( 1 - 0.21) + depreciation * tax rate

where;

depreciation = initial fixed assest cost/ lifetime of the project

= (125.4p - 403400)*0.79 + (962000/6)*0.21

= (125.4p - 403400)*0.79 + (160333.33)*0.21

= (125.4p - 403400)*0.79 + 33670

Now, the PV of the inflows =PV factor(6 years, 14%) * inflows

[tex]= inflows * \dfrac{( 1-(1.14)^{-6})}{0.14}[/tex]

[tex]= inflows * 3.8887[/tex]

Replacing the value for inflows, we have:

[tex]=((125.4p - 403400)*0.79 + 33670)* 3.8887[/tex]

The PV of the outflows = Initial Fixed asset cost = $962000

∴

Equating both together using:

PV(of inflows - of outflows) = 0

((125.4p - 403400)*0.79 + 33670)* 3.8887 - 962000 = 0

((125.4p - 403400)*0.79 + 33670)* 3.8887 =  962000

(99.066p - 318686 + 33670) * 3.8887 =  962000

(99.066p - 285016) * 3.8887 =  962000

385.24p - 1108341.72 = 962000

385.24p= 962000 + 1108341.72

385.24p= 2070341.72

p = 2070341.72 / 385.24

p ≅ 5375

Answer:

Four main types of structures of the organization are:

Explanation:

This structure consists of employees performing similar tasks or specialties. For example, in the finance department, accountants are grouped and the same applies to marketing departments, operations, and human resources. This structure enables swift decision-making because the group members have similar skills, can communicate easily, and can also improve their ability by learning from each other.

This structure groups employees according to the products or projects that meet customer requirements of a certain type. For instance, a catering services restaurant could organize the employees by departments, e.g. weddings or wholesale retail departments, according to which they serve. Employees are split so that their performance is maximized.

The traditional top-down management system is impeded by a flat organizational structure. There is no concept of the boss, every employee is the boss, which removes bureaucracy and improves direct contact. For example, an employee with an innovative idea or suggestion need not contact every level of senior management to give the person responsible for the idea. The staff can directly communicate on an individual basis.

A matrix structure has a complex story true as it combines elements from both the functional and the divisional models. It first divides employees according to their specialization, then further separates them into departments according to projects and products. To make this structure a lot of planning and efforts are required but one e achieved increases the productivity of the team, promotes innovation and creativity, and good decision making.

Answer:

Present Value of Cash Flows

Exactly when they occur

Expansion Project

Sunk cost is the cost which is already incurred and it is not affected by the decision to accept or reject the project.

Include the value of the warehouse as part of the initial investment in the new project.

Negative Externality

Explanation:

Present value of Cash flows is the discounted cash flows which shows the real worth of the money now which is to be received in future. Sunk costs are not part of the project as they are already incurred. These cost are not included in the calculations of the project cash flows. Negative externality is the undesirable impact due to production and manufacturing plants operations on the environment.

Answer:

Lemelin Corporation

The overall effect on the company's monthly net operating income of this change is an increase of $1,500.

Explanation:

a) Data and Calculations:

Sales units per month = 7,000

Fixed expenses per month = $581,000

                                Per Unit   Percent of Sales

Selling price               $ 230            100 %

Variable expenses         115             50 %

Contribution margin   $ 115             50 %

Income Statements

                                  Before Change      After Change        Difference

Sales unit                        7,000                      7,300                     300

Sales revenue                $1,610,000           $1,679,000           $69,000

Variable cost of sales       805,000                839,500            -34,500

Sales commission           0                               146,000          -146,000

Contribution margin      $805,000              $693,500          ($111,500)

Fixed expenses                581,000                 468,000            113,000

Net operating income  $224,000               $225,500             $1,500

Answer:

Slapshot Company

The total production is $98,000 with a unit cost of $49 per hockey stick.

The selling price per unit should be above $49 when marked-up.

Explanation:

a) Data and Calculations:

Direct materials (wood, paint, Kevlar, and resin)        $26,000

Direct labor (10 workers x 100 hours x $20 per hour) 20,000

Manufacturing overhead equaled                                52,000

Total production costs =                                             $98,000

Production of hockey stick = 2,000 units

Unit cost of hockey stick = $49 ($98,000/2,000)

Answer:

Another important benefit of making a reservation in the desired restaurant is the better quality of service one will receive. As the restaurant knows at what time and with how many people the customer will arrive, a comfortable table with enough seats and space will be reserved, and the restaurant's staff will be prepared to serve ...

Explanation:

Answer:

a. The number sentence that is the topic sentence is sentence (1).

b. Sentence (6) does not contribute to the paragraph's unity.  It can be eliminated, without changing the meaning that can be obtained from the paragraph.  It does not support the topic.

c. The writer, in sentences 3 through 7, provides an example and further details to help the reader to understand her point.

d. The example in a sentence makes the idea clearer to the reader.  Without the example, which provides further details, the reader may not clearly appreciate the topic under discussion.

Explanation:

The purpose of the topic sentence is to introduce the theme of the paragraph or the point of view of the writer.  It captures the essence of the story.  As it bears the central idea, it focuses the paragraph to achieve unity.

Answer:

Guillermo and Nora

The amount of adoption credit that they can take is limited to:

= $14,300 in 2020.

Explanation:

a) Data and Calculations:

Modified AGI of Guillermo and Nora = $220,000

Total amount of qualified adoption expenses incurred in 2020 = $18,000

Limit of adoption credit available to the couple in 2020 = $14,300

Lost adoption expenses = $3,700 ($18,000 - $14,300)

b) The couple will not be able to take adoption credit amounting to $3,700 because the amount they spent on adoption expenses exceeded the adoption credit limit for 2020.

Answer:

Small Business Administration offers lenders, mostly traditional banks, a federal guarantee on your loan

Answer:

False

Explanation:

Vertical analysis can be regarded as accounting tool which gives room for

proportional analysis of some documents. This document is usually

financial statements.In carrying out vertical analysis, all the item line that is on the financial statement is been recorded as percentage of another item. Instance of this is an income statement.

Answer:

The data partition does not occur in a single step

Explanation:

Answer:

Bill has taken three history courses and found them very stimulating and valuable. So he signs up for another one, confidently expecting that it too will be worthwhile.

25. Suppose that his previous history courses were in ancient history, modern European history, and American history.

Answer A

26. Suppose that his previous history courses had all been taught by the same professor that is scheduled to teach the present one.

Answer A

27. Suppose that his previous history courses all had been taught by Professor Smith, and the present one is taught by professor Jones.

Answer B

28. Suppose that Bill had found his three previous history courses to be the most exciting intellectual experiences of his life.

Answer A

29. Suppose that his previous history courses had all met at 9:00am, and the present one is scheduled to meet at 9:00am also.

Answer C

30. Suppose that, in addition to the three history courses previously taken, Bill also had taken and enjoyed courses in anthropology, economics, political science, and sociology.

Answer B

Explanation:

Answer:

Following are the solution to the given question:

Explanation:

The decrease of a marginal input return implies that its input is increasing by one unit, thereby decreasing its marginal input product.

Function of production

[tex]F(K, L) = AK^{\frac{3}{4}} L^{\frac{3}{4}}[/tex]

Its capital products subject (MPK) is derived by differentiating the factor of production from K.

[tex]MPK = \frac{3}{4}\times AK^{\frac{3}{4}} - 1L^{\frac{3}{4}}\\\\MPK = \frac{3}{4}AK^{-\frac{1}{4}}L^{\frac{3}{4}}\\\\MPK = \frac{3}{4}\times A\times (\frac{L^{\frac{3}{4}}}{K^{\frac{1}{4}}})[/tex]

Note: When a value is changed from numerator to denominator, then the power symbol shifts between positive to negative.

Since k is in the denominator, K decreases [tex]\frac{3}{4}\times A\times (\frac{L^{\frac{3}{4}}}{K^{\frac{1}{4}}})[/tex], and therefore MPK is reduced.

There's hence a decreased effective return on capital again for production function.

Its marginal labor product (MPL) is determined by distinguishing the manufacturing function from L.

[tex]MPL = (\frac{3}{4})\times AK^{\frac{3}{4}}L^{\frac{3}{4}}-1\\\\MPL = (\frac{3}{4})AK^{\frac{3}{4}}L^{-\frac{1}{4}}\\\\MPL = (\frac{3}{4})\times A\times (\frac{K^{\frac{3}{4}}}{L^{\frac{3}{4}}})[/tex]

The denominator of L reduces L [tex](\frac{3}{4})\times A\times (\frac{K^{\frac{3}{4}}}{L^{\frac{3}{4}}})[/tex] and therefore reduces MPL.

So there is a decreasing marginal return to labor in the production function.

Answer:

The correct solution is "125%".

Explanation:

Given:

Desired profit,

= $55

Selling and administrative expenses,

= $45

Product cost,

= $80

Now,

The markup percentage will be:

= [tex]\frac{Desired \ profit+Selling \ and \ administrative \ expenses}{Product \ cost}\times 100[/tex]

By putting the values, we get

= [tex]\frac{55+45}{80}\times 100[/tex]

= [tex]\frac{100}{80}\times 100[/tex]

= [tex]125[/tex] (%)

125% is the markup percentage on product cost.

It is important to remember that markup is a term used to refer to the difference between the selling price of a product and cost.

Using the formula

Desired profit + Selling and administrative expenses/product cost X 100

55+45/80 = 1.25

1.25* 100= 125

= 125%

You can learn more about markup percentage here https://brainly.com/question/19104371

Answer:

Stocks and Bonds

Yes.  It is a rational behavior for individuals with a long-term investment horizon to choose to invest in bonds rather than investing in stocks despite the overwhelming "evidence that suggests that over long periods of time stocks still outperform bonds."

Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.

Explanation:

Every rational investor would prefer to reduce her risk exposure instead of increasing it.  Every investor is also aware that  investments with higher risks attract higher returns.  However, determining the certainty of the returns is difficult.

Answer:

16.25;

g(f(x)) ;

76 ;

f(g(x))

Explanation:

For 15 off

f(x) = x - 15

For 35% off

g(x) = (1 - 0.35)x = 0.65x

g(x) = 0.65x

A.)

For the $15 off coupon :

f(x) = x - 15

f(x) 40 - 15 = 25

For the 35% coupon :

g(x) = (1-0.35)x

g(x) = 0.65(25)

g(x) = 16.25

B.)

Applying $15 off first, then 35%

Here, g is a function of f(x)

g(f(x))

Here g(x) takes in the result of f(x) ;

For the $140 off coupon :

f(x) = x - 15

f(140) = 140 - 15 = 125

For the 35% coupon :

g(125) = (1-0.35)x

g(124) = 0.65(125) = $81.25

C.)

x = 140

g(x) = 0.65x

g(140) = 0.65(140)

g(140) = 91

f(x) = x - 15

f(91) = 91 - 15

f(91) = 76

D.)

Here, F is a function of g(x)

f(g(x))

f(x) = (0.65*140) - 15

Answer:

Annual deposit= $496.51

Explanation:

Giving the following information:

Future value (FV)= $10,000

Interest rate (i)= 9%

Number of periods (n)= 12 years

To calculate the annual deposit, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (10,000*0.09) / [(1.09^12) - 1]

A= $496.51

Answer:

A relationship because he/she is reaching out personaly

Answer:

Results are below

Explanation:

Giving the following information:

Sales are 80% cash and 20% on account.

Sales:

May= $500,000

June= $680,000

July= $720,000

Cash collection June:

Cash collection from May= (500,000*0.2)= 100,000

Cash collection June= (680,000*0.8)= 544,000

Cash collection June= $644,000

Cash collection July:

Cash collection from June= (680,000*0.2)= 136,000

Cash collection July= (720,000*0.8)= 576,000

Cash collection July= $712,000

Answer:

The map misrepresents the scale of orange production in the United States, because even in the U.S. is an important orange producer, the map conveys the idea that the U.S. as a whole is a producer, when it only produces oranges in a few states, with almost the entirety of the production being located in Florida.

A more accurate map would clarify this in a textbox or a note, or would have the state of Florida colored in a way that highlights that the production of oranges in the U.S. comes almost exclusively from this state.

Answer:

The terms that capture the effect of industry of employment and work experience are:

Industry of employment = uit

Work experience = β1

Height = ai

Explanation:

a) Data:

                                         ai      uit       β1

Work experience

Height

Industry of employment

b) Explanation

The "idiosyncratic error" (uit) describes the unobserved factors that impact the dependent variable.  For example, industry of employment, and this factor vary from one-time period to the next.

The unobserved (time-invariant) effect (ai) refers to the height of the industry of employment, which does not vary over time.  

Finally, work experience is depicted by β1, which is a factor that changes with time.

The correct answer to this open question is the following.

The value of interactive leadership in the public sector can be seen in the efficiency and effectiveness of the work done by the cabinet of the executive branch. Many different departments and public offices are managed using interactive leadership, informing employers of what needs to be done and the reason why.

Interactive leadership has the capacity to empower employers because it maintains open lines of communication, informing about key activities that need to be done, ​clarifying goals, establishing strategies, and facilitating the tools to perform and be effective.

The public sector is comprised of what is known as the bureaucracy, and in order to coordinate and lead this public sector, leaders have to properly interact with employers. These employers can openly and honestly express their concerns and opinions to the leader, who takes into consideration this input. The great advantage of using interacting leadership is that people know what is expected of them.

Out of the choices provided above, it can be concluded to state that the quantity of money demanded for transactions will be $6,000 if the conditions given above with respect to the nominal GDP are satisfied in an economic situation. Therefore, the option B holds true.

The nominal GDP of an economy can be referred to or considered as the unit of measurement that is used to represent the final value of finished goods and services, where no adjustments for the prevailing inflation rates are taken into consideration.

The quantity of money demanded can be computed using the given nominal GDP's information as under,

Quantity of Money Demanded = Nominal GDP x Dollar Spending

Quantity of Money Demanded = 1200 × 5

Quantity of Money Demanded = $6,000

Therefore, the option B holds true and states regarding the significance of nominal GDP.

Learn more about nominal GDP here:

https://brainly.com/question/14810510

#SPJ3

Answer:

58.12%

Explanation:

Return on investment = Net operating income / Average operating assets

Return on investment = $76,140 / $131,000

Return on investment = 0.5812214

Return on investment = 58.12%

So, the company's return on investment (ROI) is 58.12%.

Answer:

The amount of revenue that should be reflected in the fiscal year ended June 30, 2019 is $52,235.29.

Explanation:

Number of days from June 7 to June 30 = 30 - 6 = 24 days

Number of days from July 1 to July 27 = 27 days

Total number of days for the summer session = Number of days from June 7 to June 30 + Number of days from July 1 to July 27 = 24 + 27 = 51

Total tuition paid for the summer session = $111,000

Amount to be reflected in the fiscal year ended June 30 = (Number of days from June 7 to June 30 / Total number of days for the summer session) * Total tuition paid for the summer session = (24 / 51) * $111,000 = $52,235.29

Therefore, the amount of revenue that should be reflected in the fiscal year ended June 30, 2019 is $52,235.29.

Answer:

$91,100

Explanation:

Calculation to determine the total cost of merchandise purchased

Using this formula

Total cost of merchandise purchased = Invoice cost of merchandise purchases + Cost of transportation in - Purchase returns and allowances - Purchase discount

Let plug in the formula

Total cost of merchandise purchased= $100,000 + $500 - $400 - $9,000

Total cost of merchandise purchased= $91,100

Therefore the total cost of merchandise purchased is $91,100

Answer:

b. $17,000 underallocated

Explanation:

Given the information above, the computation of manufacturing overhead cost for the current year is seen below;

First, we will compute the predetermined overhead cost

= Estimated manufacturing overhead / Estimated direct labor hour