Answer:
FED raise the federal funds rate target by 0.5%
FED raise the federal fund rate target by 2%
Explanation:
Taylor Rule states that Federal Funds should raise rates when inflation rises. When Gross domestic products growth of a country is high and above potential level then FED should raise rates. When inflation rises by 1% above target level then federal funds should raise FED by 2%.
Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,324,000 $2,630,000 Preferred dividends $50,000 $50,000 Average number of common shares outstanding 70,000 shares 120,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $fill in the blank 1 $fill in the blank 2 b. Is the change in the earnings per sha
Question Completion:
b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?
Answer:
Black Bull Inc.
20Y5 20Y6
1. Earnings per share (EPS) $18.20 $21.50
2. The change in the earnings per share from 20Y5 to 20Y6 is favorable.
More revenue and profits were generated in 20Y6 and despite the increased number of shares outstanding, the EPS for 20Y6 performed better than 20Y5's.
Explanation:
a) Data and Calculations:
20Y5 20Y6
Net income $1,324,000 $2,630,000
Preferred dividends $50,000 $50,000
Earnings available to common
stockholders $1,274,000 $2,580,000
Average number of
common shares outstanding 70,000 shares 120,000 shares
Earnings per share (EPS) $18.20 $21.50
($1,274,000/70,000) ($2,580,000/120,000)
Star Corp., a publicly traded, accrual-method C corp., incurred the following expenses in 2020 (all of which are ordinary and neccessary unless the facts indicate otherwise):
Office rent: $50,000
CEO compensation: $1,500,000
Salary paid to janitor: $250,000
Business meals: $30,000 (100% of the amount paid)
Client entertainment: $100,000 (100% of the amount paid)
Political contribution/lobbying: $5,000
Advertising: $70,000
Taxes & licenses (state, local &
payroll tax; not fed. inc. tax): $30,000
Life insurance policy on CEO - premiums: $12,000
Federal income taxes: $250,000
Average office rents in the area run $50,000-$55,000/year for similar office space. Star Corp.'s janitor is the CEO's sister. Reasonable salary for a janitor with similar experience, job description and work hours is $20,000/year. Star Corp. is the beneficiary on the life insurance policy. What is Star Corp.'s total deductible business expenses for the year?
Answer:
Star Corp.
Star Corp.'s total deductible business expenses for the year is:
= $1,952,000.
Explanation:
Ordinary and Necessary Expenses incurred in 2020:
Office rent: $50,000
CEO compensation: $1,500,000
Salary paid to janitor: $250,000
Business meals: $30,000 (100% of the amount paid)
Client entertainment: $100,000 (100% of the amount paid)
Political contribution/lobbying: $5,000
Advertising: $70,000
Taxes & licenses (state, local &
payroll tax; not fed. inc. tax): $30,000
Life insurance policy on CEO
- premiums: $12,000
Federal income taxes: $250,000
Total expenses incurred $2,297,000
Total Deductible Business Expenses for the year:
Office rent: $50,000
CEO compensation: $1,500,000
Salary paid to janitor: $20,000
Business meals: $15,000 (50% of $30,000)
Client entertainment: $0 (0% of $100,000)
Political contribution/lobbying: $5,000
Advertising: $70,000
Taxes & licenses (state, local &
payroll tax; not fed. inc. tax): $30,000
Life insurance policy on CEO
- premiums: $12,000
Federal income taxes: $250,000
Total deductible expense = $1,952,000
according to investment digest (diversification and the risk/reward relationship, winter 1994, 1-3), the mean of the annual return for common stocks from 1926 to 1992 was 16.5% and the standard deviation of the annual return was 19%.what is the probability that the stock returns are greater than 17%.
Answer:
0.488
Explanation:
Mean annual return for common stocks = 16.5%
standard deviation of annual return = 19%
Determine the probability that the stock returns are greater than 17%
P ( Stock returns > 17% )
stock returns = x
= 1 - p ( x - μ / 6 < 17 - 16.5 / 19 )
∴ 1 - p ( Z < 0.03 )
= 1 - 0.5120 = 0.488
Feedback is important in improving our performance, and we should solicit feedback, and not just wait until someone provides us with feedback
a. True
b. False
impact of population growth on environmental degradation
Answer:
Explanation:
Population growth may be described in simple terms as the rate at which the number of people residing in a particular country is increasing or multiplying. Some states or countries have a higher population figure than the other and also higher rate of growth. As population increases, the resources available to people in that community suffers as the burden will also grow. The environment also will also take its own share of the effects as overcrowding seems to creep in together with increased burden on environmental resources and infrastructure. If proactive measures aren't taken in other to boost resources and infrastructure as indaquate handling of population growth will almost always result in environmental and infrastructure degradation or decline.
Find the present value of $3,900 under each of the following rates and periods: (Round your final answer to the nearest penny.) a. 8.9 percent compounded monthly for five years. Present value $ b. 6.6 percent compounded quarterly for eight years. Present value $ c. 4.3 percent compounded daily for four years. Present value $ d. 5.7 percent compounded continuously for three years. Present value $
Answer:
(a) 8.9 percent compounded monthly for five years is $2,503.32.
(b) 6.6 percent compounded quarterly for eight years is $2,310.09.
(c) 4.3 percent compounded daily for four years is $3,283.75.
(d) 5.7 percent compounded continuously for three years is $3,287.05
Explanation:
The Present Value is calculated by using:-
Present Value = Future Value / (1 + r)n
Here, r is the Interest Rate and n is the number of periods.
(a). 8.9 percent compounded monthly for five years:-
Future Value = $3,900
Interest Rate (r) = 0.741667% [8.90% / 12 Months])
Number period (n) = 60 Years [5 Years x 12]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.00741667)60\\= $3,900 / 1.5579298\\= $2,503.32[/tex]
(b). 6.6 percent compounded quarterly for eight years:-
Future Value = $3,900
Interest Rate (r) = 1.65% [6.60% / 4]
Number period (n) = 32 Years [8 Years x 4]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.0165)32\\= $3,900 / 1.688248\\= $2,310.09[/tex]
(c). 4.3 percent compounded daily for four years
Future Value = $3,900
Interest Rate (r) = 0.0117808% [4.30% / 365 Days]
Number period (n) = 1460 Years [4 Years x 365 Days]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.000117808)1460\\\\= $3,900 / 1.187665\\\\= $3,283.75[/tex]
(d). 5.7 percent compounded continuously for three years
Future Value = $3,900
Interest Rate (r) = 0.0156164% [5.70% / 365 Days]
Number period (n) = 1095 Years [3 Years x 365 Days]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.000156164)1095\\= $3,900 / 1.1864749\\= $3,287.05[/tex]
Tax Savings. John and Cheryl just borrowed $30,000 on a home equity line of credit. The interest rate for the loan is 6.75% for the entire year, and they took out the loan on May 1. John and Cheryl are in the 28% tax bracket. What will be their tax savings for the first year ending December 31st
Answer:
$378
Explanation:
Interest expenses in current year = Amount of borrowing*Interest rate*8 month/12 months
Interest expenses in current year = $30,000 * 6.75% * 8/12
Interest expenses in current year = $1,350
Tax saving on interest expenses = Interest expenses * Tax rate
Tax saving on interest expenses = $1,350 * 28%
Tax saving on interest expenses = $378
So, their tax savings for the first year ending December 31 will be $378.
A person who establishes a trust is known as the __________ , whereas the person who is entitled to the income and other distributions from the trust is known as the ___________. g
Answer:
grantor; trustee
Explanation:
A trust can be defined as a fiduciary relationship between two party in which one of the parties referred to as a grantor (trustor) grants another party known as the trustee, the express permission, right or authority to hold title to assets or properties for the benefit of a third party. Also, this third party is typically referred to as a beneficiary.
This ultimately implies that, a grantor typically refers to an individual or person that establishes a trust while the person (individual) who is entitled to the income and other distributions as a beneficiary from the trust is generally referred to as the trustee.
In conclusion, a trust refers to a fiduciary entity that is mainly focused on holding and administering a corpus for other individuals or third parties (beneficiaries).
my sister (laugh) at my story
Answer:
no
Explanation:
Answer:
My sister laughed at my story.
Explanation:
The Panama Canal has completed a tremendous expansion the will allow nearly double the capacity than previously available. What are the benefits and challenges from this expansion
Answer:
The answer is below
Explanation:
There are various benefits and challenges from the Panama Canal expansion
Some of the Benefits are:
1. There will be rapid growth in the trading activities within the Caribbean region
2. Pacific-Atlantic trade will increase generally, which will benefit the stakeholders and countries within the area including their seaports in terms of high concentration of goods, lower cost, and rapid circulation
Some of the Challenges are:
1. The need to adjust to logistical and services platforms by the Caribbean countries
2. How the stakeholders and countries around the region support and absorb the tremendous increase that is expected in the mobilization of containers.
Q2. Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance premiums, wage payments, sales taxes, and rental payments on leas
Answer:
Variable costs vary with the volume of production and can be changed in the short run.
Fixed costs do not vary with the volume of production and cannot be changed in the short run. Only in the long run can they be changed.
Variable costs:
Advertising expendituresFuelShipping chargesPayments for raw materialsWage paymentsSales taxesFixed costs:
Interest on company issued bonds Real estate taxesExecutive salaries Insurance premiums Rental payments on leased office machinery.Companies usually buy __________ assets. These include both tangible assets such as _______________ and intangible assets such as _____________. To pay for these assets, they sell _____________ assets such as_____________. The decision about which assets to buy is usually termed the _____________ or _______________ decision. The decision about how to raise the money is usually termed the _____________ decision.
Answer:
Companies usually buy ____real______ assets. These include both tangible assets such as ___property, plant, and equipment____________ and intangible assets such as ____patents, copyrights, and brands_________. To pay for these assets, they sell ____financial_________ assets such as_____bonds________. The decision about which assets to buy is usually termed the _____investment________ or _____capital budgeting__________ decision. The decision about how to raise the money is usually termed the ____financing_________ decision.
Explanation:
Real assets can be tangible or intangible assets. They are also known as long-term or fixed assets, given their time horizon before they are fully consumed in production. Real assets, which possess intrinsic value, can be distinguished from financial assets, which are based on contractual claims or securities, including stocks and debts. In any management role, decisions are made about capital budgeting or investment. These also require financing decisions to fund the investments.
Some portion of fixed assets and the nonseasonal portion of current assets are financed with long-term capital, and all seasonal needs of current assets and the remaining portion of fixed assets are financed with short-term loans. Which current asset financing policy is consistent with this statement
Answer: Aggressive approach
Explanation:
With an Aggressive approach to financing, the management is trying to take advantage of the fluctuations in interest rates by using short term loans to finance some parts of fixed assets as well as current assets. This is what is happening here so the management must be using aggressive financing.
This is unlike the conservative approach where fixed assets are financed with long term financing like stocks and bonds with the logic being that both of them have similar lifetimes and so will supply adequate cashflow for the payment of interest overtime.
what are expansionary ficalpolicy? Contrationary fiscal policy, What do you mean by automatic stabilizer?
subject Macroeconomics, please please help...
Answer:
Here is your answer : )
Explanation:
Contractionary fiscal policy means when the government taxes more than it spends.
Expansionary fiscal policy means when the government spends more than it taxes.
Automatic stabilizers means features of the tax and transfer systems that temper the economy when it overheats and stimulate the economy when it slumps without direct intervention by policymakers.
Hope it helps you
When leaders of an organization compete and debate for scarce resources. They are operating within which frames of reference?
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Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Aug.1 Inventory on hand—2,500 units; cost $6.60 each.
8 Purchased 12,500 units for $6.00 each.
14 Sold 10,000 units for $12.50 each.
18 Purchased 7,500 units for $5.20 each.
25 Sold 9,000 units for $11.50 each.
28 Purchased 4,500 units for $5.80 each.
31 Inventory on hand—8,000 units.
Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using last-in, first-out (LIFO).
Answer:
Please find the complete solution in the attached file.
Explanation:
Green Goddess Developers is a large nationwide landscape company with home offices in Libertyville, IL. The local media often gushes over the gorgeous landscaping that surrounds the 30-acre headquarters. At the back end of the complex are several large warehouses and garages that hold large equipment. The grounds surrounding the warehouses look like a park. Across the street from the garages are several shops and businesses. The CEO, Patty, often talks about how thankful she is that the town permits her to store equipment at that site, and vows to always maintain the premises for her neighbors, not to mention that she asks 100 employees to come to work there every day. Which of the following statements describes Patty's business philosophy?
A. Patty is a nice woman whose company made a lot of money, so she is willing to spread it around.
B. Patty understands that even though it may cost a little more, stakeholder considerations are very important if you want your business to thrive.
C. Patty is more concerned about town politics than about the company profits. She should ask his employees if they would rather have that money in their pockets than on the lawns.
D. Patty is taking a business risk that her trucks and equipment will not make too much noise as they enter and exit the garages.
Nathan's Athletic Apparel has 2,000 shares of 6%, $100 par value preferred stock the company issued at the beginning of 2020. All remaining shares are common stock. The company was not able to pay dividends in 2020, but plans to pay dividends of $25,000 in 2021.
Required:
Assuming the preferred stock is cumulative and noncumulative, how much of the $25,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021?
Answer:
Cumulative Noncumulative
Preferred Dividend 2021 $12,000 $12,000
Preferred Dividend in arrears for 2020
$12,000 $0
Remaining dividend for common Stock holders $1,000 $13,000
Explanation:
Calculation to determine how much of the $25,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021
First step is to calculate the Dividend to be paid to preferred stock holders
Dividend to be paid to preferred stock holders=(2000*$100)*6%)
Dividend to be paid to preferred stock holders=$12,000
Now let determine how much of the $25,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021
CUMULATIVE NONCUMULATIVE
Preferred Dividend 2021 $12,000 $12,000
Preferred Dividend in arrears for 2020
$12,000 $0
Remaining dividend for common Stock holders $1,000 $13,000
($25,000-$12,000+$12,000=$1,000)
($25,000-$12,000=$13,000)
Total Dividend $25,000 $25,000
Necesito un susario de la uanl de aspirante con admisión rechazada
Answer:
ta bueno pue
Explanation:
Hot Topic has a policy of promoting from within. If Hot Topic uses clearly defined selection criteria and a transparent process, employees are likely to think the process is fair and to experience ___, even if they are not chosen for promotion.
a. procedural justiceb. interactional justicec. equityd. positive inequitye. distributive justice
Answer:
a. procedural justice
Explanation:
Procedural justice can be defined as an idea of fairness in a process and how this perception of fairness is greatly influenced by the quality of service, experience and transparency received by the people. Thus, it impacts the perception that people have about those in a place of authority with respect to decision-making and processes.
Hence, if Hot Topic uses clearly defined selection criteria and a transparent process, employees are likely to think the process is fair and to experience procedural justice, even if they are not chosen for promotion
You made a $500,000 loan at 10% interest when the CPI was 120. The loan was repaid five years after that, when the CPI was 130. Assume the tax on interest income is 20%. Calculate the tax you owe the government.
Answer:
10000 before inflation, 10833 after inflation
Explanation:
P = 500000
1 = 10%
Interest calculated = 500000x0.1
= $50000
20%x50000 = $10000
Rate of inflation = (130-120)/120 = 0.833
0.833x100%
= 8.333%
What has to be paid to government
= 10000+(8.333*10000)
= 10833
Before inflation, you owe $10000
After inflation you owe $10833
Someone offers to buy your car for five, equal annual payments, beginning 6 years from today. If you think that the present value of your car is $15,000.00 and the interest rate is 10%, what is the minimum annual payment that you would accept
Answer:
The minimum annual payment that you would accept is $7,010.
Explanation:
Using the future value formula, we have:
Future value of the car in 6 years = Present value * (100% + Interest rate)^number of years = $15,000 * (100% + 10%)^6 = $26,573.42
Using the present value of an ordinary annuity formula, we have:
Minimum annual payment = Future value of the car in 6 years / ((1 - (1 / (100% + Interest rate))^number of years to pay equal amount) / Interest rate) = $26,573.42 / ((1 - (1 / (100% + 10%))^5) / 10%) = $26,573.42 / 3.79078676940845 = $7,010
Therefore, the minimum annual payment that you would accept is $7,010.
Hadley Company is considering the disposal of equipment that is no longer needed for operations. The equipment originally cost $600,000 and accumulated depreciation to date totals $460,000. An offer has been received to lease the machine for its remaining useful life for a total of $290,000, after which the equipment will have no salvage value. The repair, insurance, and property tax expenses that would be incurred by Hadley on the machine during the period of the lease are estimated at $75,800. Alternatively, the equipment can be sold through a broker for $230,000 less a 10% commission. Required: Prepare a differential analysis report, dated June 15. Use a minus sign to indicate costs or a negative impact on income. Below the report, indicate whether the equipment should be leased or sold.
Answer and Explanation:
The preparation of the differential analysis report is presented below:
Particulars Lease Equipment Sell Equipment Differential Effect on Income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenues $290,000 $230,000 ($60,000)
Less: Costs -$75,800 $23,000 ($52,800)
(10% of $230,000)
Income (Loss) $214,200 $207,000 ($7,200)
Based on the above report, the equipment should be leased as it generated more profit as compared to sell of an equipment
An analyst gathered the following information about a company: 01/01/04 - 50,000 shares issued and outstanding at the beginning of the year 04/01/04 - 5% stock dividend 10/01/04 - 10% stock dividend What is the company's weighted average number of shares outstanding at the end of 2004
Answer:
Company A
The company's weighted average number of shares outstanding at the end of 2004 is:
= 53,188 shares.
Explanation:
a) Data and Calculations:
Date Description Weight Weighted Average
01/01/04 - 50,000 shares issued
and outstanding 12/12 = 50,000
04/01/04 - 5% stock dividend (2,500) 9/12 = 1,875
10/01/04 - 10% stock dividend (5,250) 3/12 = 1,313
Total weighted average number of shares = 53,188
A part of financial report of company Z is given below. Calculate days of supply for company Z.
Value of finished goods on-hand $2,930
Value of production materials on-hand $1,640
Value of work-in-process inventory $710
Cost of goods sold $12,500
Net revenue $24,800
a. More than 0 but less than or equal to 60
b. More than 60 but less than or equal to 100
c. More than 100 but less than or equal to 140
d. More than 140 but less than or equal to 200 More than 200
Answer:
Company Z
The days of supply for Company Z are:
d. More than 140 but less than or equal to 200
Explanation:
a) Data and Calculations:
Value of finished goods on-hand $2,930
Value of production materials on-hand $1,640
Value of work-in-process inventory $710
Total inventory = $5,280
Cost of goods sold $12,500
Net revenue $24,800
Days of Supply = Average Inventory/Cost of goods sold * 365
= $5,280/$12,500 * 365
= 154.2 days
b) The Inventory Days of Supply for Company Z or Days Inventory Outstanding" or Inventory Period measures the average number of days Company Z holds its inventory before selling it. As an efficiency ratio, the ratio measures the number of days Company Z's funds are held up in inventory before actual sales to customers.
Which firm will have a higher level of economic performance: a) a firm with valuable, rare, and costly-to imitate resources and capabilities operating in a very attractive industry or b) a firm with valuable, rare, costly-to-imitate resources and capabilities operating in a very unattractive industry
Answer: a) a firm with valuable, rare, and costly-to imitate resources and capabilities operating in a very attractive industry.
Explanation:
Companies that have valuable, rare and costly to imitate resources and capabilities will see a better economic performance overall because they are offering the market something that not a lot of companies are offering which gives them the opportunity to increase profitability.
This would be even more effective if the company was in an attractive industry. An attractive industry means that there are a lot of buyers and sellers but because the company has costly to imitate resources, they will worry less about the sellers and gain more buyers thereby helping them to perform better.
Which has a direct upon the environment? A. Business operations b. Taxation C. Presidential elections D. None of the above
Answer:
creo que la A
Explanation:
porque por que ahi se buscaria lo que es mas barato y que es mejor para la empresa asi que en esos casos es donde se pone al medio ambiente en riesgo ya que para estos tienen menor importnciaa
Match each marketable security with its description. (a) Eurodollar deposit (b) Banker's acceptance (c) Federal agency issue (d) Commercial paper (e) Repurchase agreement (f) Treasury bill (g) Money market mutual fund (h) Negotiable certificate of deposit (i) Treasury note 1. ________ A short term, unsecured promissory note issued by a corporation. 2. ________ An obligation of the U.S. Treasury with common maturities of 91 to 182 days. 3. ________ A portfolio of marketable securities. 4. ________ An arrangement whereby a bank or securities dealer sells specific marketable securities to a firm and agrees to purchase them in the future. 5. ________ An obligation of the U.S. Treasury with mutual maturities of between one and seven years. 6. ________ Negotiable instrument evidencing the deposit of a certain number of dollars in a commercial bank. 7. ________ An instrument issued by the Federal National Mortgage Association. 8. ________ Funds deposited in banks located outside the U.S. and denominated in U.S. dollars. 9. ________ Short term credit arrangement used by businesses to finance transactions with foreign countries or firms with unknown credit capacities.
Answer: See explanation
Explanation:
1. A short term, unsecured promissory note issued by a corporation. = Commercial paper
2. An obligation of the U.S. Treasury with common maturities of 91 to 182 days. = Treasury bill
3. A portfolio of marketable securities. = Money market mutual fund
4. An arrangement whereby a bank or securities dealer sells specific marketable securities to a firm and agrees to purchase them in the future. = Repurchase agreement
5. An obligation of the U.S. Treasury with mutual maturities of between one and seven years. = Treasury note
6. Negotiable instrument evidencing the deposit of a certain number of dollars in a commercial bank. = Negotiable certificate of deposit
7. An instrument issued by the Federal National Mortgage Association. = Federal agency issue
8. Funds deposited in banks located outside the U.S. and denominated in U.S. dollars. = Eurodollar deposit
9. Short term credit arrangement used by businesses to finance transactions with foreign countries or firms with unknown credit capacities = Banker's acceptance.
A borrower obtains a one-year ARM which starts at 4.0% and has a margin of 3.0% and 2/6 caps. At the end of the first year, the index is 5.0%. What is the interest rate after the first adjustment
Answer:
The answer is "6".
Explanation:
In the given question the response is 6 because the new rate is the lower of the index + margin (in that case 5 + 3 = 8) whenever the interest rate changes as well as the current rate + cap (in that instance the value 4 + 2 = 6). Its rate of interest would also be 6 percent after the very first adjustment.
Erika would like to hire a financial advisor. The financial advisor that she has been considering indicated that she would charge $2,500 to write a financial plan and 1% of any asset she manages. The financial advisor that Erika is considering is using what type of compensation model
Answer:
Fee-only
Explanation:
The financial advisor that Erika is considering is using the fee only compensation model. An advisor who uses this model of compensation is one who receives payment for his or her services rendered directly as fees and not through any forms of commissions. This payment could be based on a particular percentage of your assets that they are in charge of, or it could be hourly.
Answer:
Plato Users
Explanation:
The first drop down is risk and the second one is liquid got 100% on the test.
