Answer:
d. All of the above
Explanation:
In the case of the social policy, it required that colleagues should never post the confidential information or personal information related to the patients, never take or post the photos that have confidental information, and never take or post the photos without their wish
So as per the given situation, the last option is correct
The owners of Peterson's, a large discount store chain, are frustrated by the high level of unemployment in the communities in which it serves. The company decides to take a stand and do what it can to help reduce unemployment. What can Peterson's do to achieve this goal?
A. It can create enough jobs to hire all the hardcore unemployed people in their communities.B. It can eliminate unfilled positions for which applicants are not qualified.C. It can train its current employees to make sure they never become unemployed.D. It can donate to programs that provide specialized funding for community businesses.E. It can pressure other companies in their communities to create more jobs.
Answer:
D
Explanation:
Unemployment is when people who are willing and able to work do not have jobs
Types of unemployment
structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.
Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.
Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom
It is impractical to the owners of the store to attempt to employ all the unemployed people in their communities. the most practical step that can be taken is to make donations that fund businesses. this would provide funds needed for those unemployed to start their own businesses. this would reduce unemployment
Zigzag Manufacturing has just hired a new controller, Leslie Demorest. During her first week on the job, Leslie was asked to establish a budget for operating expenses in 2019. Since Leslie was not yet familiar with the operations of Zigzag Manufacturing, she decided to budget these expenses using the same procedures as the prior controller. Therefore, in order to establish a budget for operating expenses, Leslie started with actual operating expenses incurred in 2018 and added 3.8%. Leslie based this percentage on inflation as measured by the consumer price index.
Required: Comment on the effectiveness of Leslie’s budgeting strategy.
Answer:
Zigzag Manufacturing
The Effectiveness of Leslie Demorest's Budgeting Strategy
The strategy of adjusting the previous year's operating expenses with inflation is not an effective way of strategic budget planning. Leslie's budgeting strategy does not take advantage of forecasts of unexpectedly good performance and fails to provide any reaction that can occur when there are downturns in cash flow.
An effective budgeting strategy should provide the standard for the effective use of financial resources of Zigzag Manufacturing in its business operations. There are no clear goals to be achieved and an evaluation of how the goals will be achieved through the budget implementation.
Explanation:
An effective budget should be able to forecast and track revenues and expenses, which are received and incurred in pursuit of business goals and projections. An effective budget ensures that those who implement the projections contained in the budget remain motivated. The idea of adjusting previous expenses with inflation is not an effective budgeting strategy.
Each of the following would be a period cost except: Group of answer choices the salary of the company president's secretary. the cost of a general accounting office. depreciation of a machine used in manufacturing. sales commissions.
Answer:
depreciation of a machine used in manufacturing.
Explanation:
A periodic system of inventory can be defined as a method of financial accounting, that typically involves updating informations about an inventory on a periodic basis (at specific intervals) as the sales or purchases are being made by the customers, through the use of either an enterprise management software applications or a digitized point-of-sale equipment.
Periodic cost are costs that occur or arise on a periodic basis such as quarterly.
Each of the above mentioned costs would be a period cost except depreciation of a machine used in manufacturing.
Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs:
Year 1 Year 2 Year 3 Year 4
Unit sales 4,200 4,100 4,300 4,400
Sales price $29.82 $30.00 $30.31 $33.19
Variable cost per unit $12.15 $13.45 $14.02 $14.55
Fixed operating costs $41,000 $41,670 $41,890 $40,100
This project will require an investment of $10,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t = 0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project’s four-year life. Garida pays a constant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project’s net present value (NPV) would be under the new tax law.
Determine what the project’s net present value (NPV) would be under the new tax law.
a) $80,438
b) $67,032
c) $77,087
d) $60,329
Answer:
Garida Co.
The project's net present value (NPV) is:
= $57,787
Explanation:
a) Data and Calculations:
Year 1 Year 2 Year 3 Year 4
Unit sales 4,200 4,100 4,300 4,400
Sales price $29.82 $30.00 $30.31 $33.19
Variable cost per unit $12.15 $13.45 $14.02 $14.55
Fixed operating costs $41,000 $41,670 $41,890 $40,100
Year 1 Year 2 Year 3 Year 4
Sales Revenue $125,244 $123,000 $130,333 $146,036
Variable costs $51,030 $55,145 $60,286 $64,020
Fixed operating costs $41,000 $41,670 $41,890 $40,100
Total costs $92,030 $96,815 $102,176 $104,120
Income before tax $23,214 $26,185 $28,157 $41,916
Income tax (25%) 5,804 6,546 7,039 10,479
Net income/cash inflow $17,410 $19,639 $21,118 $31,437
PV factor 0.901 0.812 0.731 0.659
Present value $15,686 $15,947 $15,437 $20,717
Total present value of the cash inflows = $67,787
Less investment cost of equipment = 10,000
Project's net present value (NPV) = $57,787
Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources. Which advantages does this characteristic of outsourcing provide organizations?
A) offers control over all aspects of projects that suppliers carry out
B) provides flexibility
C) shifts accountability from external suppliers to internal staff
D) helps avoid any form of dependency on suppliers
Answer:
B
Explanation:
A company has the following selected account balances: Sales $ 250,000 Sales Discounts 1,500 Sales Returns and Allowances 2,300 Sales Salaries Expense 56,000 Store Supplies Expense 15,000 Advertising Expense 8,000 Cost of Goods Sold 125,000 What is the gross profit that would appear on a multiple-step income statement: multiple choice $121,200 $167,200 $42,200 $246,200
Answer:
$121,200
Explanation:
Calculation to determine the gross profit that would appear on a multiple-step income statement
First step is to determine the Net sales
Sales $ 250,000
Less Sales Discounts ($1,500)
Less Sales Returns and Allowances ($2,300 )
Net sales $246,200
Now let determine the Gross profit using this formula
Gross profit=Net sales-Cost of Goods Sold
Let plug in the formula
Gross profit=$246,200-$125,000
Gross profit=$121,200
Therefore the gross profit that would appear on a multiple-step income statement is $121,200
You own one call option with an exercise price of $30 on Nadia stock. This stock is currently selling for $27.80 a share but is expected to increase to either $28 or $34 a share over the next year. The risk-free rate of return is 5 percent. What is the current per share value of your option if it expires in one year
Answer: 0.755
Explanation:
From the information given, the current per share value of the option if it expires in one year will be calculated as follows:
Firstly, we calculate the present value which will be:
= $28 / ( 1 + 0.05 )
= $28/1.05
= $26.667
The number of options needed will be:
= ( 34 - 28 )/ ( 4-0)
= 6/4
= 1.5
Therefore,
27.80 = (1.5 x Co) + [28 / (1+0.05)]
27.80 = 1.5Co + (28/1.05)
27.80 = 1.5Co + 26.667
1.5Co = 28.0 - 26.667
1.5Co = 1.1333
Co = 0.755
Therefore, the answer is 0.755
A portfolio consists of $16,800 in Stock M and $27,400 invested in Stock N. The expected return on these stocks is 9.70 percent and 13.30 percent, respectively. What is the expected return on the portfolio?
A) 11.07%.
B) 11.93%.
C) 12.62%.
D) 11.50%.
E) 10.15%.
Program trading is defined as automated trading generated by computer algorithms designed to react rapidly to changes in market prices. Is it ethical for investment banking houses to operate such systems when they may generate trade activity ahead of their brokerage customers, to which they owe a fiduciary duty?Suppose that you are an employee of a printing firm that was hired to proofread proxies that contained unannounced tender offers (and unnamed targets). Should you trade on this information, and would it be considered illegal?
Answer:
no
Explanation:
no
Stocks are a risky investment. Treasury Bills are a highly liquid and risk free investment whose interest income is not subject to state income taxes. Stocks have significantly outperformed Treasury Bills over the long term. In light of these higher returns, which best explains why an individual would invest in Treasury Bills vs. stocks
Answer: c. Preference for a very low risk investment would result in an individual choosing Treasury Bills over stocks despite lower expected returns.
Explanation:
Treasury bills offer little to no risk and would be perfect for people who do not want risky investments and are willing to receive a lower return in exchange for that lack of risk.
There are many reasons people would do this such as age where for instance, older people who are retired would prefer a steady source of income that they know is risk free as opposed to risky assets like stocks that could fail at any time.
identify the leadership style that Jack should apply in each statement below.
Answer:
1.3.1 Charismatic leadership style
1.3.2 Transactional leadership style
1.3.3 Democratic leadership style
1.3.4 Laissez-faire leadership style
1.3.5 Autocratic leadership style
John makes a deposit of $12,000 in a bank at 6% Compound Interest annually, for 7 years. a) At the end of 7 years, how much John will have in his bank account
Answer:
$18,043.56
Explanation:
The formula for calculating future value:
FV = P (1 + r) n
FV = Future value
P = Present value
R = interest rate
N = number of years
12,000 x (1.06)^7 = $18,043.56
You are the public relations director of a nonprofit hospital in a competitive market in a midsized city located in a metro area of 350,000 people. It is sweeps week for broadcast media. One of the stations is running a series on HIV/AIDS in the community. Recent segments have included those listed below.
Homelessness related to HIV/AIDS
How persons living with HIV/AIDS suffer from being outcasts
How understanding has increased in some circles but prejudice remains in many.
An appealing case of a hemophiliac who acquired HIV/AIDS through transfusion at the university hospital has been reported in the series. The university and its teaching hospital are located elsewhere in the state.
At a staff meeting this morning, you learn that petitions are circulating in the community to request your hospital to convert its former nurses’ residence into a clinic and residential shelter for HIV/AIDS patients.
The hospital no longer maintains a school of nursing. The three-story brick building has been used for miscellaneous administrative purposes since nurses’ training was phased out. The residence is connected to the hospital by an elevated corridor, similar to a skywalk. It does not have facilities for food service or laundry. Nurses always ate at the hospital and the hospital handled their laundry. The residence and hospital are served by common systems for hot water, steam heat, ventilating and sewer. The building predates central air conditioning.
The human resources director reports that the business agent for kitchen and laundry workers, who are represented by a union, has already made informal contacts about this proposal, suggesting that grievances will result, at the very least, and a strike could ensue.
Your director of volunteers expresses concern about reaction of volunteers who now handle many peripheral duties. Your physical plant supervisor, who lives in the neighborhood, says neighbors are already anxious over the possibility of HIV/AIDS patients in their vicinity. Your hospital’s five-year Strategic Plan, which was recently updated, has no mention of developing an HIV/AIDS specialty.
Write a letter (using your own name) to the hospital CEO, John Dolman and the Board of Governors outlining your plan to resolve this issue. Remember, that your letter will be made public to the other audiences and publics. In your recommendations, you should provide both long and short-term strategies that would solve this problem. To solve this problem you should note if additional resources or expenditures would be need to achieve the goals that you define.
When writing the letter you should provide a brief description of the problems, you have found. What are the facts about major issues? Identify facts about key players in the case, the business problem(s) and then rank order the critical issues. Consider relevant information and underlying assumptions. Finally provide your recommendations.
As you write your recommendations, think about the following;
a. How do the cultural values at the hospital relate to communication, technology, information flow and openness?
b. As the hospital goes forward, should it stick to the espoused culture or should it change? How would you recommend that they change?
c. How would you suggest that they resolve this disparity? In other words what should they do?
d. Provide specific suggestions that will help the organization as they go forward.
e. In the closing, highlight benefits of your recommendations. As a PR director, you need to be honest but tactful in your recommendations
Answer:
HIV AIDS is contagious disease. It is responsibility of the healthcare professionals to handle the person with special care. This virus spread quickly in the body of the victim and the person is often unaware of the disease due to very mild or no symptoms.
Explanation:
To: CEO
Park lane Hospital
Central London,
09 - 06 -2021.
Respected Sir,
It is to bring into your knowledge about the spread of HIV/AIDS in the city. The people are unaware about the disease spread and those infected are carrying disease to others. There should be campaign run by the hospital to inform people about the spread of this contagious disease and preventions measures.
There should also be special arrangement for the people infected by the disease to stay and live in a separate house so the spread can be stopped. The hospital can allow people with symptoms for a free checkup so that more people can come and have their routine checkup.
It is high time because if the spread will increase at the same rate then controlling the disease would become difficult.
Regards,
John Andrews.
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:
$86.13
Explanation:
The computation of the current share price is shown below:
Given that
Dividend just Paid (D0) is $3.10
and Required Return (R ) 13%
Now
Dividend Paid in 1st year = $3.10 (1.25) = $3.875
Dividend Paid in 2ndyear = $3.875 (1.25) = $4.844
Dividend Paid in3rd year = $4.844 (1.25) = $6.055
Dividend Paid in 4th year = $6.055 (1.07) = $6.47
Now
Stock Price in 3rd year (P3) = D4 ÷ (R - g)
= $6.47 ÷ (0.13- 0.07)
= $107.83
Now the Current Share Price(P0) is
Current Share Price (P0) = $3.875 ÷ (1.13) + $4.844 ÷ (1.13)^2 + $6.055 ÷ (1.13)^3 + $107.83 ÷ (1.13)^3
= $3.42 +$3.79 + $4.19 + $74.73
= $86.13
Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be:
Answer: $136,375
Explanation:
Going by the collections pattern of the company, there will be collections for 3 months in December being October, November and December.
December collections will be:
= (50% * December credit sales) + (30% * November Credit sales) + (15% * October credit sales) + December cash sales
December credit sales = 75% * 130,000 = $97,500
November credit sales = 75% * 170,000 = $127,500
October credit sales = 75% * 150,000 = $112,500
December collections are:
= (50% * 97,500) + (30% * 127,500) + (15% * 112,500) + (25% * 130,000)
= $136,375
Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will increase the price paid by buyers of picture frames by a. $0.50. b. between $0.50 and $1. c. $1. d. less than $0.50.
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What is the customer's goal?
Answer:
The key aspect of any business, company, or employer is customer service goals.
Explanation:
A customer service department and the staff represent the company and contribute to building the company's public perception. Customer service objectives are specific objectives and guidelines put in place by an enterprise to ensure that every client is 100% satisfied with the services provided by the enterprise. Excellent customer service means that every customer's needs and desires can be met promptly. A customer should never get away with a company or leave a place unhappy.
Improve customer service measurement
Customers goals :
Easy to get in touch with customersResponse times acceleratedImprove customer service measurementFind ways to create an all-round experience for our customersDevelop a loyalty program for clientsCreate a culture that focuses on customersDevelop a strategy for customer surveysTake the customer success account into accountGet customer renovation and up-sell creativeA firm that purchases electricity from the local utility for $350,000 per year is considering installing a steam generator at a cost of $270,000. The cost of operating this generator would be $270,000 per year, and the generator will last for five years. If the firm buys the generator, it does not need to purchase any electricity from the local utility. The cost of capital is 13%. For the local utility option, consider five years of electricity purchases. For the generator option, assume immediate installation, with purchase and operating costs in the current year and operating costs continuing for the next four years. Assume payments under both options at the start of each year (i.e., immediate, one year from now,..., four years from now). What is the net present value of the more attractive choice
Answer:
Option 1:
Purchasing Electricity from the utility:
NPV = -$1391065.
Option 2:
NPV of more attractive alternative = NPV of purchasing generator = -$1343107.
Explanation:
Option 1:
Purchasing Electricity from the utility:
Purchase cost per year = $350000
[tex]NPV = -350000 * [PVAF (5-1, 0.13) + 1]\\= -350000 * [2.974471 + 1]\\\\= -1391064.85[/tex]
NPV = -$1391065.
Option 2:
Purchasing generator:
Initial Cash Flow:
Purchase Cost of generator -$270000
Operating Cash Flow -$270000
= -$540000
Recurring Cash Flows:
Operating Cost -$270000
NPV:
Year Cash Flow PVF (13%) PV of Cash Flow
0 -$540000 1 -$540000
1-4 -$270000 2.974471 -$803107
-$1343107
NPV = -$1343107
Since NPV in the case of purchasing a generator is more than that of purchasing electricity,
NPV of more attractive alternative = NPV of purchasing generator = -$1343107.
Stout Corporation had net income of $200,000 and paid dividends to common stockholders of $40,000 in 2012. The weighted average number of shares outstanding in 2012 was 50,000 shares. Stout Corporation's common stock is selling for $75 per share on the New York Stock Exchange. Stout Corporation's price-earnings ratio is Group of answer choices
Answer:
18.75
Explanation:
The computation of the price-earning ratio is given below:
We know that
Price-Earning Ratio = Price Per Share ÷ Earning Per Share
Earning Per Share = Net Earnings ÷ Outstanding Shares
So,
Price-Earning Ratio = Price Per Share ÷ (Net Earnings ÷ Outstanding Shares)
= $75 ÷ ($200,000 ÷ 50,000)
= 75 ÷ 4
= 18.75
why do we send emails?
Answer:
to communicate at hyper speed so the one being emailed to can know or execute the order for a cause
or so that companies can send free ads into your cumputer:(
Explanation:
A company uses the weighted average method for inventory costing . At the beginning of a period the production department had units in beginning Work in Process inventory which were 33 % complete the department completed and transferred 168,000 units . At the end of the period units were in the ending Work in Process inventory and are 68 % complete . Compute the number of equivalent units produced by the department .
Answer
a. 178,200 units
Explanation:
Comple question "A company uses the weighted average method for inventory costing. During a period, a production department had 54,000 units in beginning goods in process inventory which were 33% complete; the department completed and transferred 168,000 units. At the end of the period, 15,000 units were in the ending goods in process inventory and are 68% complete. Compute the number of equivalent units produced by the department. 178,200. 186,320. 183,000. 168,000. 114,000."
Calculation of Equivalent Unit (as per Weighted Method)
Unit % of Completion Equ. Unit
Unit Completed & Transferred Out 168,000 100% 168,000
Closing WIP 15,000 68% 10,200
Total Equivalent Unit 178,200
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 200,000 Fixed manufacturing overhead cost $ 2,800,000 Variable manufacturing overhead cost per machine-hour $ 2.00 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $3,200. The following information was available with respect to this job: Direct materials $ 1,472 Direct labor cost $ 1,056 Machine-hours used 79 Compute the total manufacturing cost assigned to Job P90.
Answer:
the total manufacturing cost assigned to Job P90 is $3,792
Explanation:
The computation of the total manufacturing cost assigned to Job P90 is given below:
But before that the predetermined overhead rate should be calculated
So,
= ($2,800,000 ÷ 200,000) + $2
= $16
Now the total manufacturing cost is
= $1,472 + $1,056 + 79 × $16
= $3,792
hence, the total manufacturing cost assigned to Job P90 is $3,792
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively. 3. A debit posting to Salaries and Wages Expense of $200 was omitted. 4. A $1,600 cash dividend was debited to Common Stock for $1,600 and credited to Cash for $1,600. 5. A $450 purchase of supplies on account was debited to Equipment for $450 and credited to Cash for $450. 6. A cash payment of $530 for advertising was debited to Advertising Expense for $53 and credited to Cash for $53. 7. A collection from a customer for $540 was debited to Cash for $540 and credited to Accounts Payable for $540. Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.)
Answer:
Debit side $29,660
Credit side $29,660
Explanation:
Preparation of a correct trial balance
DOMINIC COMPANY
Corrected Trial Balance May 31, 2015
DEBIT SIDE
Cash $5,023
($5,050 +$450 - $477)
($530-$53=$477)
Accounts Receivable $2,030
($2,570 - $540)
Prepaid Insurance $930
($830 + $100)
Supplies $450
Equipment $12,750
($13,200 - $450)
Salaries and Wages Expense $4,530
($4,330 + $200)
Advertising Expense $1,447
($970 + $477)
($530-$53=$477)
Utilities Expense $900
($800 + $100)
Dividends $1,600
TOTAL $29,660
CREDIT SIDE
Accounts Payable $5,510
($5,700 - $100 + $450 - $540)
Unearned Service Revenue $690
Common Stock $14,500
($12,900 + $1,600)
Service Revenue $8,960
TOTAL $29,660
Therefore the CORRECTED TRIAL BALANCE will be:
Debit side $29,660
Credit side $29,660
Once account numbers have been enabled, where can the numbers be assigned and edited?
Answer: Chart of Accounts
Explanation:
Once account numbers have been enabled, the numbers be assigned and edited in the chart of accounts.
To assign the account numbers, one needs to go to the accounting menu and then the chart of accounts will be selected. After that, one will select batch edit which can be seen in the action menu and add the account numbers after which one will then save. In order to see the account numbers,one can then go to chart of accounts
Compute and Interpret Measures for DuPont Disaggregation Analysis
Refer to the 2015 fiscal year financial data of 3M Company to answer the following requirements (perform these computations from the perspective of a 3M shareholder).
($millions) 2015 2014
Sales $30,674
Net income, consolidated 5,056
Net income attributable to
3M shareholders 5,048
Assets 32,898 $31,389
Total equity 11,747 13,142
Equity attributable to 3M
shareholders 11,708 13,109
a. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. Then, compute ROA.
b. Compute ROE. Confirm that ROE equals ROE computed using the component measures from part a (ROE PM AT FL).
c. Compute adjusted ROA (assume a statutory tax rate of 37% and pretax net interest expense of $123).
Answer:
solving
Explanation:
ROE = Net income/total assets
5048/(11708+13109)/2
= 0.4068
= 40.68%
A.
net margin = net profit/sales
= 5048/30674
= 0.1646
asset turnover = sales/average total asset
= 30674/(32898+31389)/2
= 0.954
equity multiplier
average total asset/average equity
= [(32898+31389)/2] / [11708+13109)]/2
= 32143.5/12408.5
= 2.59
DuPont model
ROE = 0.1646 x 0.9542 x 2.59
= 0.4068
= 40.68%
this shows that roe equals roe computed from the first roe I solved
ROA
net income/total assets
= 5048/32898+31389)/2
= 5048/32143.5
= 0.1570
= 15.47%
Which of the following statements is CORRECT?
a. Suppose a firm’s total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt decreases from 60% of total assets to 40%. Under these conditions, the ROE will increase.
b. Suppose a firm’s total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%. Without additional information, we cannot tell what will happen to the ROE.
c. The Du Pont equation provides information about how operations affect the ROE, but the equation does not include the effects of debt on the ROE.
d. Other things held constant, an increase in the debt ratio will result in an increase in the profit margin on sales.
e. Suppose a firm’s total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10%, and its debt decreases from 60% of total assets to 40%. Under these conditions, the ROE will decrease.
Answer:
a. Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt decreases from 60% of total assets to 40%. Under these conditions, the ROE will increase.
Explanation:
Asset turnover ratio of a firm is sales divided by total assets. If this ratio falls the revenue of the firm has declined, but since the profit margin has increased means company has made efforts to cut down its expenses and cost. If the debt has decreased then its equity portion will increase resulting in ROE to increase.
You purchase the townhome listed above at realtor and borrow 95% of the listed price from Broadway Bank at an APR of 6% with monthly payments (your down payment is 5% of listed price). The maturity of your mortgage equals 30 years with monthly payments. a. Draw a time line that depicts the cash flows from the mortgage payments- com
Answer: Below is the complete question
You purchase a townhome for 335k and borrow 95% of the listed price from Broadway Bank at an APR of 6% with monthly payments (your down payment is 5% of listed price). The maturity of your mortgage equals 30 years with monthly payments. Draw a time line that depicts the cash flows from the mortgage payments- compute the payment and show your inputs and work.
answer:
$1,908.07 ( monthly payments ) will be made i.e. This depicts the cash flow from the mortgage payment
Explanation:
Cost of townhome = 335k
APR ( I ) = 6%
percentage of cost of townhome borrowed = 95%
Down payment of cost of townhome = 5%
maturity period = 30 years = 360 months
Determine time line that depicts cash flows
First step : calculate value of loan
value of loan = ( 95% )* (335,000) = $318,250
final step : calculate value of monthly payments
Applying TVM calculation
PMT = [PV = 318,250, FV = 0, N = 360, I = 0.06/12] ( excel function )
PMT = $1,908.07 ( monthly payments )
Based on this model, households earn income whenfirms purchaselabor and capital in markets for factors of production. Suppose Simone earns $525 per week working as a jewelry appraiser for Classy's Jewelry Store. She uses $10 to order a mojito cocktail at Little Havana. Little Havana pays Rajiv $300 per week to wait tables. Rajiv uses $175 to purchase a necklace from Classy's Jewelry Store. Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services. Event Market for Factors of Production Market for Goods and Services Simone spends $10 to order a mojito cocktail. Simone earns $525 per week working for Classy's Jewelry Store. Rajiv spends $175 to purchase a necklace from Classy's Jewelry Store. Which of the elements of this scenario represent a flow from a household to a firm
Answer:
a. Event Market for Factors of Production Market for Goods and Services
1. Market for Goods and Services (Simone spends $10 to order a mojito cocktail.)
2. Market for Factors of Production (Simone earns $525 per week working for Classy's Jewelry Store.)
3. Market for Goods and Services (Rajiv spends $175 to purchase a necklace from Classy's Jewelry Store.)
b. Flows from a household to a firm:
Simone spends $10 to order a mojito cocktail.
Rajiv spends $175 to purchase a necklace from Classy's Jewelry Store.
Explanation:
In the product market (the market for goods and services), Simone and Rajiv, representing households spend their earned income in exchange for goods and services produced by firms. In the market for factors of production (factor market), Simone and Rajiv offer their labor, capital, and other factors of production to firms in exchange for income. There is a continual exchange in the two markets between households and firms.
XYZ plans to sell 28,000 units in April. If it has 6,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be purchased from the supplier during the month
Answer:
Purchases= 31,000
Explanation:
Giving the following information:
Sales= 28,000 units
Beginning inventory= 6,000 units
Desired ending inventory= 9,000 units
To calculate the purchases, we need to use the following formula:
Purchases= sales + desired ending inventory - beginning inventory
Purchases= 28,000 + 9,000 - 6,000
Purchases= 31,000
Compare two loans:Loan 1: $175,000; 8% annual (monthly payments); 30 years.Loan 2: $175,000; 7% annual (monthly payments); 15 years.If you pay an additional $250 per month in additional principle on Loan 1 ONLY, which loan pays off sooner
Answer:
Following are the responses to the given question:
Explanation:
For the First loan payment period is value:
[tex]\to NPER(\frac{8\%}{12},-250-PMT(\frac{8\%}{12},12\times 30,-175000),175000)=215\ months[/tex]
For the second loan payment period is value:
[tex]\to 15\times 12=180 \ months[/tex]
that's why the loan will be paid off soon.