Suppose that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed in class). If the supply of this kind of labor increases, we would expect a(n) _____________.

A. increase in equilibrium wage, W, and increase in equilibrium quantity of labor, L, employed.

B. an increase in W and a decrease in L.

C. A decrease in W and a decrease in L.

D. A decrease in W and no change in L.

E. None of the above.

Answer:

The printing press.

Explanation:

The printing press and its form of works are known to be an early age form that have been used and still in use for advertising. Advertisements of this form are seen in form of newspapers or magazines and are sometimes included as brochures or fliers. Write ups used in the print media to grab the attention of the specific target audience comes under the purview of print advertising.

Newspapers readers and also other publications methods have a tendency to browse the print ads that they come across. Moves to purchase these products could possibly not be instantaneous, but it does settle down in their subconscious mind. Next time they see the product in the market, they are tempted to buy it.

Answer:

5.65%

Explanation:

Last year a stock of $78.00 was bought

During the period of one year $2.70 was received in dividend and inflation averaged 3.2%

Today the shares was sold for $82.20

The first step is to calculate the nominal return

= ($82.20-$78.00+$2.70)/$78.00

= 6.9/78

= 0.0885×100

= 8.85%

Therefore, the approximate real rate can be calculated as follows

= 8.85%-3.2%

= 5.65%

Hence the approximate real rate of return on this investment is 5.65%

Answer:

the bond is trading at a discount

Explanation:

There is an inverse relationship between the yield and the price of the bond.

As the yield goes up, the price of the bond goes down and as the yield goes down, the price of the bond goes up.

The yield - 10%, is greater than the coupon rate - 9%, the price will be less than the par value, and we say that the bond is trading at a discount.

Answer:

j = 4.52%

Explanation:

face value = $100, with 6% annual coupons

bond₁ matures in 1 year (December 31, 1987), market price $101.92

bond₂ matures in 2 years (December 31, 1988), market price $102.84

bond₃ matures in 3 years (December 31, 1989), market price $105.51

we must determine the market interest rate (j) for bond₂, and to do this we will use the approximate yield to maturity formula:

YTM = {coupon + [(face value - market price)/n]} / [(face value + market price)/2]

YTM = {6 + [(100 - 102.84)/2]} / [(100 + 102.84)/2] = 4.58 / 101.42 = 0.045158 = 4.52%

Since the bonds are sold at a premium, it means that the coupon rate is higher than the market rate.

Answer:

The exit multiple expect that the market different premise is a reasonable strategy for esteeming a business. The estimation of the business is gotten by duplicating money related measurements, for example, EBITDA or EBIT by a factor that is basic to practically identical organizations that were as of late procured. A fitting scope of products can be created by taking a gander at late equivalent acquisitions in the open market.  

The various acquired is then increased by the anticipated EBIT or EBITDA in year N (last year of projection period) to give the future incentive toward the finish of year N. The future value (otherwise called terminal value) is then limited by a factor equivalent to the quantity of years in the projection time frame.  

The worth got is then added to the current estimation of the free incomes to acquire the suggested venture esteem. For repetitive organizations where profit vacillate as per varieties in the economy, we utilize the normal EBITDA or EBIT over the span of the particular recurrent as opposed to the sum in year N in the projection time frame.  

This implies an industry different is applied as opposed to applying a current numerous to consider the recurrent varieties of profit. On the off chance that investigators utilized a current numerous, the valuation would be influenced by financial cycles.

A Enterprise Value (EV) to Revenue Multiple is used to value a business by dividing its enterprise value by its annual revenue. The formula to calculate the Enterprise Value (EV) to Revenue Multiple is EV/Revenue

EV = Enterprise Value

EV can be denoted as (Equity Value + All Debt + Preferred Shares) – (Cash and Equivalents)

While Revenue = Total Annual Revenue

This can be calculated when we have a share price, shares outstanding, debt, and cash or its equivalence.

Answer:

Find the explanation below.

Explanation:

1. Sole Proprietorship is owned by a single person or a married couple.

a. Ease of formation: This business is very easy to form because owners are not required to have legal documentation for the business to begin operation.

b. Liability of Owners: Owners are personally liable for the success or failure of the business. This means that they bear the cost of whatever debt or losses that are incurred in the business and can be sued for it.

c. Management: The owner makes all the management decisions that could affect the business. He sets the time when his business can be run as well as the prices for his products.

d. Tax Implications: They fill out Schedule C where they calculate the profit and loss from their business. They declare their income in Standard Form 1040 and they are subject to Self-employment tax.

2. General Partnership is a business agreement between to or more owners.

a. Ease of Formation: It is quite easy to start this business because little or no legal documentation is required to kick-start the business.

b. Liability: All partners are liable for debts and losses incurred in the business.

c. Management Decisions: The management decisions are made by the general partners. This affords them a measure of flexibility.

d. Tax implications: Income tax is not paid rather, a separate tax return form is filed.

3. Limited Liability Company: These business entities are run by two or more business partners.

a. Ease of Formation: It is relatively easy to form because it is governed by state rules and regulations which must be adhered to by the business owners.

b. Liability: There is a limited liability as just the business assets can be withheld when there is a legal battle. Personal assets of partners can not be withheld.

c. Management Decisions: There could be a member-managed LLC where members make decisions in the business or a manager-managed LLC one or two non-members are employed to manage the business and make business decisions therein.

d. Taxation: Taxation is done once and profits realized are passed through to the personal income taxes of the members.

4. Corporations are set up by a group of businesspeople.

a. Ease of Formation: They are not easy to form as proper documentation which is governed by state laws must be adhered to.

b. Liability: There is a limited liability as shareholders are not held accountable for the debts and losses of the corporation.

c. Management: There are directors of the corporation who are elected by the shareholders, They make decisions for the corporation. Business officers are also appointed.

d. Tax Implications: There are lots of taxation requirements for which the corporation might seek advice from a taxation advisor to prevent double taxation.

Answer and Explanation:

The Journal entry is shown below:-

As per requirement 1

1. Investment in Sonny Enterprises Dr, $1,000,000

            To Cash $1,000,000

(Being investment is recorded)

2. Cash Dr, $24,000

          To Dividend revenue $24,000

(Being cash dividend received is recorded)

3. Fair value adjustment Dr, $34,000

            To Unrealized holding gain or loss - OCI $34,000

(Being investment at fair value is recorded)

As per requirement 2

1. Investment in Sonny Enterprises Dr, $1,000,000

           To Cash $1,000,000

(Being investment is recorded)

2. Investment in Sonny Enterprises Dr, $34,000

        To Investment Income $34,000 ($340,000 × 10%)

(Being revenue from Sonny is recorded)

3. Cash Dr, $24,000

            To Investment in Sonny Enterprises $24,000

(Being the receipt of dividend is recorded)

Answer:

The answer is 17.67 years.

Explanation:

Present value is $2,500

Future value of the money to be double of the present value. This means the future value will be $5,000($2,500 x 2)

Interest rate is 4%

Number of years or periods to reach this $5,000 is unknown. So we are looking for this.

To compute this number of periods, lets use Financial calculator.

I/Y = 4; PV= -2,500; FV= 5,000; CPT N= 17.67 years.

Therefore, the number of years to accumulate to $5,000 is 17.67 years

Answer:

Career , Financial , Health and Fitness, Relationships, Spirituality

Explanation:

Goals are what one plan to achieve within a specified period of time. Goal could be short term , usually one year or long term goal, which is more than a year. People that want to succeed must set goals because setting goal gives direction. When people set goals, it gives them the opportunity to work harder towards achieving that goal and also provides benchmark for determining if one is actually succeeding or on the right path.

People set goals on daily basis. The question is; how effective are those goals. It therefore means that for a goal to be effective, it must touch or cover the following areas ; career, financial, health and fitness, relationships, spirituality.

Answer:

the first part of the question is missing:

"Radig Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 8 helicopters makes between 1,000 and 2,000 round-trips per year. The records indicate that a helicopter that has made 1,000

Round-trips in the year incurs an average operating cost of $300 per round-trip, and one that has made 2,000 round-trips in the year incurs an average operating cost of $250 per round-trip.

Using the high-low method, estimate the annual operating costs:"

variable costs per trip (per helicopter) =  ($500,000 - $300,000) / (2,000 - 1,000) = $200,000 / 1,000 = $200 per trip

fixed costs = $500,000 - (2,000 x $200) = $500,000 - $400,000 = $100,000

the estimated operating budget per helicopter = $100,000 + (1,200 x $200) = $100,000 + $240,000 = $340,000

operating budget for the whole fleet (8 helicopters) = 8 x $340,000 = $2,720,000

Answer:

79.1%

Explanation:

Hoosier manufacturing operates a production shop that is modelled to have the lowest unit of production

The output rate is 145 units per hour

In the month of July the company operated the production line for 265 hours

30,400 units of output were produced

Therefore, the capacity utilization rate can be calculated as follows

= 30,400 units/265 hours ×145

= 30,400/38,425

= 0.791×100

= 79.1%

Hence the capacity utilization rate for the month is 79.1%

Answer:

Average accumulated expenditures for 2021 was: $349,000.

Explanation:

Note: See the attached excel file for the calculation of the Average accumulated expenditures for 2021.

Average accumulated expenditures is calculated by adding the weighted average amount of each expenditure which is the product of the weight of each expenditure in a year and the amount of each expenditure. That is;

Weight of each expenditure = Number of relevant months the expenditure is used 2021 / 12 months

Weighted average amount of each expenditure = Weight of each expenditure * The amount of the expenditure

Answer:

The Correct Answer:

$40,000

Explanation:

IRC Section 1250 requires that excess depreciation (actual depreciation in excess of straight-line depreciation) be recaptured as ordinary income. Since the property has sold for more than the adjusted basis ($300,000 − $40,000 = $260,000 adjusted basis), the initial gains are recaptured based on the original purchase price of $300,000.

This makes the first $40,000 of the profit subject to the unrecaptured Section 1250 gain while the remaining $20,000 is considered regular long-term capital gains.

Answer:

a) Jill's

beginning inventory = $44,500

purchases  = $88,500 - $5,900 - $840 = $81,760

transportation in expenses = $1,180

total inventory costs = $127,440

cost of goods sold = $91,300

ending inventory = $127,440 - $91,300 = $36,140

b) Ken's

beginning inventory = $8,000

purchases = $36,900 - $1,200 - $360 = $38,460

transportation in expenses = $900

total inventory costs = $47,360

cost of goods sold = $33,900

ending inventory = $47,360 - $33,900 = $13,460

Answer:

b. The competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage.

Explanation:

The Porter’s five forces of competition is a framework developed by Michael E. Porter in 1979, it is used to measure and analyze an organization's competitiveness in a business environment.

The Porter's five forces of competition framework are:

1. The bargaining power of suppliers.

2. The bargaining power of customers.

3. Threat posed by substitute products.

4. Threats posed by new entrants.

5. Threats posed by existing rivals in the industry.

The most powerful of the five competitive forces is usually the competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage. When the amount of competitors (sellers), as well as the quantity of goods and services they provide are large, the lesser their competitive strengths or advantage in the market because the customers have a large pool of finished goods and services to choose from and vice-versa.

Answer:

Non-Dividend-Paying Stock

i) Calculation of the expected future price:

EVENT   PROBABILITY   FUTURE PRICE P   RETURN R

A                 0.18                      $180                   $32.40

B                 0.09                     $108                     $9.72

C                 0.3                        $90                   $27.00

D                0.25                       $81                   $20.25

E                 0.18                    $225                   $40.50

Total           1.0                 $129.87                 $129.87

Future price = the expected returns = $129.87

ii) Calculation of the return in each of the five events:

EVENT   PROBABILITY   FUTURE PRICE P   RETURN R

A                 0.18                      $180                   $32.40

B                 0.09                     $108                     $9.72

C                 0.3                        $90                   $27.00

D                0.25                       $81                   $20.25

E                 0.18                    $225                   $40.50

iii) Calculation of the expected return:

EVENT   PROBABILITY   FUTURE PRICE P   RETURN R

A                 0.18                      $180                   $32.40

B                 0.09                     $108                     $9.72

C                 0.3                        $90                   $27.00

D                0.25                       $81                   $20.25

E                 0.18                    $225                   $40.50

Total           1.0                                                 $129.87

Explanation:

a) Data & Calculations:

EVENT   PROBABILITY   FUTURE PRICE P   RETURN R

A                 0.18                      $180                      ?

B                0.09                      $108                      ?

C                 0.3                        $90                      ?

D                0.25                       $81                      ?

E                  ?                        $225

If stock A does not pay dividend, it will attract capital appreciation which compensates for the unpaid dividends since the company has increased assets over liabilities.  When the assets grow more than the liabilities from the reinvestment of the profits, the net value of the business which is the equity increases.  This capital growth belongs to the stockholders and  is distributable to them in the form of the future price of the stock, which appreciates with the capital growth.

Answer:

$296.90

Explanation:

For computing the value of the zero coupon bond we need to apply the present value formula i.e to be shown in the attachment below:

Given that,  

Future value = $1,000

Rate of interest = 6.60%

NPER = 19 years

PMT = $0

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the value of zero coupon bond is would be $296.90

Answer:

ROE will increase

Explanation:

This action will cause an increase in Baldwin's ROE

ROE is the same as return on Equity. The return on equity is equal to the net profit margin multiplied by asset turnover which is also multiplied by equity multiplier.

From the above, if asset turnover is being increased by measures taken by the management, the ROE will also have to increase too. Firms will have to be generating more sales per units of the assets that they own.

Answer: 35.29%

Explanation:

Municipal Bonds are attractive in that they give the tax benefit of being tax exempt whereas a corporate bond is liable for taxation. The tax rate that will therefore make an investor indifferent between the two bonds is the one that will equate the Corporate bond's yield net of tax to the yield on the Municipal bond.

5.5% = 8.5% * ( 1 - x)

5.5% = 8.5% - 0.085x

0.085x = 8.5% - 5.5%

0.085x = 3%

x = 35.29%

Answer:

1. $787 billion

2. 650,000; 1.6

3. did not​ meet; the multiplier was much smaller than 1.6

Explanation:

The fiscal stimulus package of 2008-2009 was​ $787 billion. This is because, the United States government wanted to increase spending in order to have sufficient economic growth. Thus, the fiscal stimulus was expected to create​ 650,000 JOBS, in which the multiplier implied by that expectation is​ 1.6.

However, the stimulus​ did fiscal stimulus did not work, as it DID NOT MEET the expectations of the Obama administration, simply because​ "the multiplier was much smaller than 1.6"

Answer:

The answer is 'it increases the number of shares outstanding'

Explanation:

Stock split increases the number of shares outstanding. It causes dilution of earnings per share.

For example, ABC Inc. has 50,000 shares outstanding and it announces a stock split of 3-for- 1.

This means that any shareholder that has 1 will exchange that 1 share for 3 shares. So at the end of the stock split the total number of shares outstanding will be 150,000 shares (50,000 x 3)

Answer:

$12

Explanation:

The computation of the value of the share is shown below:

Value of the share is

= Dividend ÷ (Required rate of return - shrinking rate)

where,

The Dividend is $3

The Required rate of return is 15%

And the shrinking rate is 10%

Now placing these values to the above formula

= $3 ÷ (15% - (-10%)

= $3 ÷ 25%

= $12

Answer: 2.5 Yen

Explanation;

The Economic theory of Purchasing Power Parity when held, believes that prices of goods in different countries are the same if their exchange rates are taken into account.

For the above therefore it means that the price of the good is the same in both the US and Japan barring exchange rates.

Exchange rate is;

$100 = ¥250

$1 = 250/100

$1 = ¥2.5

Exchange rate is 2.5 yen per dollar.

Answer:

$1,000

Explanation:

The above means that for every $1 increase in the market value in a long margin account, the SMA increases by $0.50

If the market value rises to $22,000, the account will show

Long market value - Debit = Equity % SMA

$22,000 - $10,000 = $12,000

Against $22,00 of market value, 50% can be borrowed or $11,000. Since the debit is $10,000, an additional $1,000 can be borrowed . This is the SMA

Answer:

Debit Cash or Accounts Receivable (Container Corporation) $144,000

Credit Sales Revenue $72,000

Credit Installation Revenue $48,000

Credit Training Revenue $24,000

To record the sale of goods and services worth $144,000.

Explanation:

a) Data and Calculations:

Performance Obligations and Contract Price:

Computer equipment = $90,000/$180,000 x $144,000 = $72,000

Installation = $60,000 x 0.80 = $48,000

Training = $30,000 x 0.80 = $24,000

Total purchase costs = $144,000

b) The performance obligations and the consideration prices are allocated accordingly based on their separate consideration values.

Answer: Actual amount

Explanation:

Standard Costing deviates from traditional accounting in that it is not based on historical costs of a good. In standard cost accounting, the actual costs are put in place of standard costs and then the variance between the two will be recorded and used for analysis.

The debit to the Work in Process Inventory account under a standard cost accounting system will be the actual amount.

Answer:

Observation method

Explanation:

Through observation, this analyst collects data by watching the employees directly. This is participatory because the analyst has to involve himself in the work environment where this employees are in other to collect data. This method would allow the analyst to have more reliable insights. He would get data based on what the employees do rather than what the Employees tell him that they do.

Answer:

Create constancy of purpose

Explanation:

Deming 14 points of quality are recommended management strategy to transform business effectiveness.

Deming postulated that by increasing quality one is able to reduce cost and increase efficiency of a business.

The first of his 14 points is to create a constancy of purpose. This is achieved by striving for long-term improvement rather than short-term profit, as is done by Jordan in the given scenario.

The 14 points of Deming are given below:

Create a constancy of purpose

Adopt the new philosophy

Stop depending on inspections

Using a single supplier for one item

Improve constantly and forever

Use training on the job

Implement leadership

Eliminate fear

Breakdown barriers between departments

Get rid of unclear slogans

Eliminate management by objectives

Remove barriers to pride of workmanship

Implement education and self improvement

Make transformation everyone's job

Answer:

Explanation:

There could be multiple reasons as to why the pizza bistro is losing money.

Waste not being counted accurately.

Food being replaced for wrong orders and not being accounted for.

Theft.

Orders not being entered correctly.

Answer: C. This is not an appropriate strategy because the customer's income will decline

Explanation:

A. The options for the question are:

This is an appropriate strategy that will increase the customer's income

B. This is not an appropriate strategy because the customer's tax liability will increase if the securities appreciate and are sold

C. This is not an appropriate strategy because the customer's income will decline

D. This is an appropriate strategy because the customer has the potential for larger capital gains

From the information that have been provided in the question, we can see that the customer needs income but based on the information that have been provided in the question, the interest that will be charged will eat up the dividend paid by the the stock.

Therefore, this is not an appropriate strategy because the customer's income will decline.