Answer:
FV= $1,873,697.4
Explanation:
Giving the following formula:
Annual deposit= $150,000
Number of periods= 9 years compound periods (10 deposits)
Interest rate= 6%
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {150,000*[(1.06^9) - 1]} / 0.06 + 150,000
FV= 1,723,697.4 + 150,000
FV= $1,873,697.4
For a cheese-lover, Burger King's Mac n' Cheetos are what type of product? (1pt)
Answer:
specialty product
Explanation:
For a cheese-lover, this product would be considered a specialty product. This is because they will actively seek out this product specifically because they love the ingredient/flavor of the product. For someone that loves cheese, products that are cheese flavored or contain cheese will be prioritized above all of the other products that do not contain cheese. This ultimately classifies the product as a specialty product because it is being sought after, even with other options around.
Suppose you started a new all-equity financed company that is expected to generate an ROE of 15% indefinitely. The current book value per share equals $30. The required return on the stock equals 12% and you expect to grow at a constant rate of 5% forever. What is the value of the stock of the startup company
Answer:
The value of the stock at start-up = $67.5
Explanation:
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return
This principle can be applied as follows:
The value of stock today is the present value of the future return discounted at the required rate of return
The return can be computed as the ROE × Book value of share
Return = 15%× 30 =4.5
Price of stock today = D× (1+g)/r-g
D= current return, g- growth rate, r-required rate of return
DATA: D= 4.5, g= 5%, r= 12%
PV = 4.5× (1.05)/(0.12-0.05)
= 67.5
The value of the stock at start-up = $67.5
Which statement describes the word “iterative”?
Answer:
D.
Explanation:
The word 'iterative' is derived from the Latin word 'iterare', which means 'to repeat.'
Iterative is a term used to define a process of repetition to attain the desired outcome. It is a repetitive process performed to improve or do better than before.
The statement that correctly defines the term 'iterative' is option D. The statement talks about working in cycles (repetition) to get a desired result of (refined product).
Therefore, option D is correct.
_____________ is when your company makes an effort to actively control and shape your brand image with your target market.
A.
Market penetration
B.
Market segmenting
C.
Data mining
D.
Market positioning
Answer:
D. (Market positioning)
Explanation:
The definition is pretty much in the question itself! hope this helps
Rollins Corporation is estimating its WACC. It's current and target capital structure is 20
percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12
percent coupon rate, paid semiannually, a current maturity of 20 years, and sell for $1,040. The
firm could sell, at par, $100 preferred stock which pays a $12.00 annual preferred dividend.
Rollins' common stock beta is 1.2, and the risk-free rate is 10 percent. Rollins is a constant-
growth firm which just paid a dividend of $2.00. Its stock sells for $27.00 per share, and has a
growth rate of 3 percent. The floatation cost is 5% for debt, 10% for preferred stock, and 25%
for common stock. The firm's marginal tax rate is 40 percent.
Question 1 (worth 15 out of 100 possible points for the quiz)
Part a. Calculate the cost of existing debt.
Part b. Calculate the cost of new debt.
Answer:
i dont get it, all words are distinguish
Explanation:
\AllCity, Inc., is financed 40% with debt, 8% with preferred stock, and 52% with common stock. Its cost of debt is 5.7%, its preferred stock pays an annual dividend of $2.49 and is priced at $30. It has an equity beta of 1.15. Assume the risk-free rate is 1.7%, the market risk premium is 7.3% andAllCity's tax rate is 35%. What is its after-tax WACC? [Note: Assume that the firm will always be able to utilize its full interest tax shield.]
Answer:
WACC = 6.38%
Explanation:
Cost of equity = 1.7% + (1.15 x 5.6%) = 8.14%
Weight of equity = 52%
After tax cost of debt = 5.7% x (1 - 35%) = 3.705%
Weight of debt = 40%
Cost of preferred stock = $2.49 / $30 = 8.3%
Weight of preferred stock = 8%
WACC = (8.14% x 0.52) + (3.705% x 0.4) + (8.3% x 0.08) = 6.3788% ≈ 6.38%
Seattle Health Plans currently uses zero-debt financing. Its operating profit is $6 million, and it pays taxes at a 23 percent rate. It has $10 million in assets and, because it is all-equity financed, $10 million in equity. Suppose the firm is considering replacing 59 percent of its equity financing with debt financing that bears an interest rate of 9 percent. What impact would the new capital structure have on the firm's ROE (return on equity)
Answer: ROE increases by 56.5% to 102.7%
Explanation:
ROE before capital structure change:
= Net income / Equity
= (Operating income * ( 1 - tax)) / Equity
= (6,000,000 * (1 - 23%)) / 10,000,000
= 46.2%
With new capital structure:
Debt financing = 59% * 10,000,000
= $5,900,000
Interest = 9% * 5,900,000
= $531,000
Net income = (Operating profit - interest) * ( 1 - tax)
= (6,000,000 - 531,000) * ( 1 - 23%)
= $4,211,130
Return on Equity = 4,211,130 / ( 10,000,000 - 5,900,000)
= 102.7%
Difference:
= 102.7 - 46.2
= 56.5%
A 25-year maturity mortgage-backed bond is issued. The bond has a par value of $10,000 and promises to pay an 8-percent annual coupon. At issue, bond market investors require a 12-percent interest rate on the bond. Assume that 20 years after the bond is issued, bond market investors require a 15-percent interest rate on the bond. What is the market price of the bond
Answer:
Bond Price after 20 years = $7653.4914 rounded off to $7653.49
Explanation:
To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, the annual coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 10000 * 0.08 = $800
Total periods remaining (n) = 5
r or YTM = 0.15 or 15%
The formula to calculate the price of the bonds today is attached.
Bond Price = 800 * [( 1 - (1+0.15)^-5) / 0.15] + 10000 / (1+0.15)^5
Bond Price after 20 years = $7653.4914 rounded off to $7653.49
Discovering the process of distribution of commonly used items is quite interesting and opens eyes to several new processes and careers! Your group will be in charge of dissecting the process of distribution related to any of the following items:
*Televisions
*Milk in Cartons
*Laundry Detergent
*Refrigerators
*Lumber
*Pineapples
*Video Games
*Watches
*Coffee
*Shoes
*Football Helmets
*Pencils
Narrow your research by selecting a brand or company that manufactures or distributes one of the products listed above. For example, not all shoes come from the same country, manufacturer, distributor, or are distributed alike. Select a brand of shoes you are familiar with and begin the search. The goal is to trace the process from production to consumer.
Answer and Explanation:
The distribution of laundry detergent can happen in two ways. The first way, occurs with a distribution of the factory direct to the retailers of a country. These retailers, receive the detergents, store large inventories and send them to smaller stores, within a given region. This type of distribution has a lower economic cost, which causes the detergent to be sold at lower prices.
The second form of distribution occurs with the use of intermediaries between factories and retailers. These intermediaries are the wholesalers, they receive the product from the factories forming large stocks, which will be distributed to retailers, who in turn, will distribute the product to stores. This process makes the product more expensive, making the price higher.
a stock analyst wants to use a dividend pricing model to value stock. the analyst believes will pay its first dividend in exactly 15 years, and she is guessing that the dividend will be $10.00 per share at that time. the analyst assumes that dividends will grow by 5% per year going forward after year 15. the required return to hold is estimated to be 12% per year. based on these assumptions, what is the intrinsic value of stock today
Answer:
P0 = $27.4044 rounded off to $27.40
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is the dividend expected in Year 1 or next year g is the constant growth rate in dividends r is the discount rate or required rate of return
To calculate the price of the stock today, we firsts need to calculate the price of the stock in year 15 and discount it back to today's value.
As we can see that to calculate the price of the stock today, we use dividend that is expected for the next period or Year 1. Thus to calculate the price of the stock in Year 15, we will use the dividend that will be expected in Year 16.
P15 = D15 * (1+g) / (r - g)
P15 = 10 * (1+0.05) / (0.12 - 0.05)
P15 = $150 per share
To calculate the price of this stock today, we must discount the Year 15 price to today's price.
P0 = P15 / (1+r)^15
P0 = 150 / (1+0.12)^15
P0 = $27.4044 rounded off to $27.40
difference between transport business and drink business
Answer:
a transport business uses (preferably semi's) any vehicles to transport one item from one place to another. a drink business is a place/product ( drinks (soft or alcoholic) and you sell them to make a profit
transport business is both cheaper and easy to set up and run.
Take a deck of playing cards and remove the aces, jacks, queens, kings, and jokers. Imagine that any remaining card in the deck is a single individual, either a seller or a consumer, and all are gathered at a single perfectly competitive market. Red cards are sellers, and black cards are consumers. The number on a card indicates the individual's WTP or MC. Each seller owns a single unit of an indivisible good. Each consumer can buy at most one unit of the good from a seller. Then the market outcome will be
Answer:
the equilibrium price is 6 and units sold is 10
Explanation:
In the case when we eliminate all the jacks, queens, aces and kings we have a total of 36 card that left with the numbers from 2 to 10
also there are 18 red card of sellers and 18 black card of buyers
Now the following table should be prepared
Price Quantity demanded Quantity supplied
2 18 2
3 16 4
4 14 6
5 12 8
6 10 10
7 8 12
8 6 14
9 4 16
10 2 19
As we can see that at the price of 6 the quantity demanded would be equivalent to the quantity supplied
So, the equilibrium price is 6 and units sold is 10
How the experience affects buyer behavior.
Answer:
because it does
Explanation:
A
Answer:
Situational influences are temporary conditions that affect how buyers behave. They include physical factors such as a store's buying locations, layout, music, lighting, and even smells. Companies try to make the physical factors in which consumers shop as favorable as possible.
Explanation:
Presented below are certain account balances of Swifty Products Co. Rent revenue $6,980 Sales discounts $8,170 Interest expense 13,320 Selling expenses 99,730 Beginning retained earnings 114,520 Sales revenue 405,100 Ending retained earnings 134,450 Income tax expense 27,776 Dividend revenue 71,430 Cost of goods sold 166,455 Sales returns and allowances 12,730 Administrative expenses 88,620 Allocation to noncontrolling interest 17,320 From the foregoing, compute the following: (a) total net revenue, (b) net income, (c) income attributable to controlling stockholders, if Swifty has allocation to noncontrolling interest of $17,320. (a) Total net revenue $enter total net revenue in dollars (b) Net income $enter net income in dollars (c) Income attributable to controlling stockholders $enter income attributable to controlling stockholders in dollars
Answer and Explanation:
The computation is shown below:
a
Sales revenue $405,100
Add: Rent revenue $6,980
Add: Dividend revenue $71,430
Less: Sales returns and allowances $(12730)
Less: Sales discounts $(8170)
a
Sales revenue 405100
Add: Rent revenue 6980
Add: Dividend revenue 71430
Less: Sales returns and allowances (12730)
Less: Sales discounts (8170)
Total net revenue $462,610
b
Total net revenue $462,610
Less: Expenses
Interest expense $13,320
Selling expenses $99,730
Income tax expense $27,776
Cost of goods sold $166,455
Administrative expenses $88,620
Total Expenses $395,901
Net income $66,709
c
Net income $66,709
Less: Allocation to noncontrolling interest $17,320
Income attributable to controlling stockholders $49,389
Which section of a business plan gives details about a business's core products and services?
The
section of a business plan talks about a business's core products and services, and their features and benefits
to the consumers.
Answer:
an executive summary is compelling which reveals the company's mission statement, along with a short description of its products and services. its also good to briefly explain why you're starting your company and include details about your experience in the industry that you're entering
Suppose a less developed country is having difficulty making payments on its foreign debts. What option does this nation have?
Targ
It can ask its lenders for more loans in exchange for accepting a foreign portfolio investment from the World Bank.
It can ask its lenders to forego the payments until the economy of the debtor nation is stronger.
It can ask its lenders to forgive the loans in exchange for accepting temporary control by the lender nation.
It can ask its lenders for debt rescheduling in exchange for accepting a stabilization program from the IMF.
Answer:
it can ask its lenders for dept resceduling in exchange for accepting a stabilization program from the IMF
Explanation:
gradpoint
1. You invest $1,000 in a certificate of deposit that matures after ten years and pays 5 percent interest, which is compounded annually until the certificate matures. a. How much interest will the saver earn if the interest is left to accumulate? b. How much interest will the saver earn if the interest is withdrawn each year? c. Why are the answers to a and b different?
Answer and Explanation:
a. The computation of the interest earned is given below:
= $1,000 × (1.05)^10 - $1,000
= $628.29
b. Now the interest earned in case of withdrawn is
= $1,000 × 5% × 10
= $500
c. In part a there is a compound interest while on part b there is a simple interest so the both answers should be different
The same would be relevant and considered too
Rare earth metals are used in the production of many of the personal electronic devices you use every day. Suppose there is an unexpected decrease in the price of rare earth metals. a. The decrease in price of rare earth metals will lead to negative cost-push inflation. demand-pull inflation. an increase in expected inflation. negative demand-pull inflation. b. Illustrate the effect of the decrease in the price of rare earth metals by making the appropriate adjustments to the Phillips curve.
Answer:
a. negative cost-push inflation
b. Phillips Curve will shift right
Explanation:
a. Cost push inflation occurs when the costs of inputs such as wages and material costs increases. This leads to an increase in prices because producers will have to increase prices to make a profit.
In this scenario, material prices dropped instead of increasing. A negative cost-push inflation will therefore happen.
b. This will lead to a shift right in the Phillips curve to reflect that inflation has fallen. It will increase the output gap between Potential and Actual GDP because a lower inflation means more unemployment which means the economy is shrinking.
The black dot will shift right to (0, -2)
Indicate the missing amount for each letter (a) through (i). Case A Case B Case C Direct materials used $ (a) $72,720 $131,700 Direct labor 59,280 90,560 (g) Manufacturing overhead 49,120 82,680 105,500 Total manufacturing costs 199,600 (d) 255,700 Work in process 1/1/20 (b) 17,110 (h) Total cost of work in process 226,310 (e) 339,900 Work in process 12/31/20 (c) 13,240 71,550 Cost of goods manufactured 188,400 (f)
Answer:
Case A Case B Case C
Direct materials used $ 91,200 $72,720 $131,700
Direct labor 59,280 90,560 18,500
Manufacturing overhead 49,120 82,680 105,500
Total manufacturing costs 199,600 245,960 255,700
Work in process 1/1/20 26,710 17,110 84,200
Total cost of work in process 226,310 263,070 339,900
Work in process 12/31/20 37,910 13,240 71,550
Cost of goods manufactured 188,400 249,830 268,350
Explanation:
Given:
Case A Case B Case C
Direct materials used $ (a) $72,720 $131,700
Direct labor 59,280 90,560 (g)
Manufacturing overhead 49,120 82,680 105,500
Total manufacturing costs 199,600 (d) 255,700
Work in process 1/1/20 (b) 17,110 (h)
Total cost of work in process 226,310 (e) 339,900
Work in process 12/31/20 (c) 13,240 71,550
Cost of goods manufactured 188,400 (f) (i)
Therefore, we have:
Case A
a. Direct materials used = Total manufacturing costs - Direct labor - Manufacturing overhead = 199,600 - 59,280 - 49,120 = 91,200
b. Work in process 1/1/20 = Total cost of work in process - Total manufacturing costs = 226,310 - 199,600 = 26,710
c. Work in process 12/31/20 = Total cost of work in process - Cost of goods manufactured = 226,310 - 188,400 = 37,910
Case B
d. Total manufacturing costs = Direct materials used + Direct labor + Manufacturing overhead = 72,720 + 90,560 + 82,680 = 245,960
e. Total cost of work in process = Total manufacturing costs + Work in process 1/1/20 = 245,960 + 17,110 = 263,070
f. Cost of goods manufactured = Total cost of work in process - Work in process 12/31/20 = 263,070 - 13,240 = 249,830
Case C
g. Direct labor = Total manufacturing costs - Direct materials used - Manufacturing overhead = 255,700 - 131,700 - 105,500 = 18,500
h. Work in process 1/1/20 = Total cost of work in process - Total manufacturing costs = 339,900 - 255,700 = 84,200
i. Cost of goods manufactured = Total cost of work in process - Work in process 12/31/20 = 339,900 - 71,550 = 268,350
Why wouldn't giving yourself a manicure count as GDP for the United States?
Which types of charitable giving have you heard of? Check all that apply.
volunteering at a soup kitchen
donating clothes to a charity
donating canned food to a charity
volunteering at a hospital
donating toys to a charity
volunteering at an animal shelter
Answer:
volunteering at a soup kitchen
volunteering at a hospital
volunteering at an animal shelter
Explanation:
The correct options are given below.
volunteering at a soup kitchenvolunteering at a hospitalvolunteering at an animal shelterWhat Is Charitable Giving?Charitable Giving can be defined as an act of giving money, time, or some goods to unlucky or inopportune people, directly or through a worthy cause like a charitable trust.
What are the Disadvantages of Charitable Giving?The reasons most people give for objecting to conditional charity gifts are:
It interferes with the autonomy of the recipient.It's unethical to interfere in the self-determination of sovereign states.The conditions may be contrary to human rights.The conditions may be politically manipulative.Learn more about charitable giving here https://brainly.com/question/21376202
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The higher prices charged by monopolists: Group of answer choices are like a private tax that redistributes income from consumers to monopoly sellers. are socially optimal because they better reflect how much society values the good relative to the resources used to produce it. have no effect on the distribution of income. return to consumers through the public goods provided by monopolies.
Answer:
are like a private tax that redistributes income from consumers to monopoly sellers.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.
The higher prices charged by monopolists are like a private tax that redistributes income from consumers to monopoly sellers because the consumers are left with no choice than to patronize these monopolists for essential goods and services since they are the only seller.
What is the difference between demand and supply curve?
Fatuma invests a total of $22,000 in two accounts. The first account earned a rate of return of 15% (after a year). However, the second account suffered a 7% loss in the same time period. At the end of one year, the total amount of money gained was $110.00. How much was invested into each account
Answer:
$7,500 was invested in the account that gained 15%, while $14,500 was invested in the account that lost 7%.
Explanation:
Given that Fatuma invests a total of $ 22,000 in two accounts, and the first account earned a rate of return of 15% after a year while the second account suffered a 7% loss in the same time period, and at the end of one year the total amount of money gained was $ 110.00, to determine how much was invested into each account, the following calculation must be performed:
11,000 x 0.15 - 11,000 x 0.07 = 880
5,000 x 0.15 - 17,000 x 0.07 = -440
8,000 x 0.15 - 14,000 x 0.07 = 220
7,000 x 0.15 - 15,000 x 0.07 = 0
7,500 x 0.15 - 14,500 x 0.07 = 110
Therefore, $ 7,500 was invested in the account that gained 15%, while $ 14,500 was invested in the account that lost 7%.
Merchandise that is priced significantly lower than what customers expect to pay is likely to remain unsold.
a) True
b) False
what is the most important contribution of the hawthorne studies
The Hawthorne studies taught managers that communication with the employees is essential for higher productivity and efficiency. One theory in the human relations subject which is criticised is Maslow's hierarchy of needs.
On April 30, 2019, Macy Products purchased machinery for $132,000. The useful life of this machinery is estimated at 5 years, with a $32,000 residual value. The company uses the double-declining-balance method. Depreciation expense for the fiscal year ending on December 31, 2020 will be:
Answer:
$38,720
Explanation:
Depreciation Expense = 2 x SLDP X BVSLDP
where,
SLDP = 100 ÷ number of useful life
= 100 ÷ 5
= 20 %
2019
Annual Depreciation Expense = 2 x 20 % x $132,000
= $52,800
But, depreciation expired for only 8 months from April 30, 2019 to December 31, 2019 during the year, therefore
Depreciation Expense = $52,800 x 8/12 = $35,200
2020
Annual Depreciation Expense = 2 x 20 % x ($132,000 - $35,200)
= $38,720
Conclusion :
Depreciation expense for the fiscal year ending on December 31, 2020 will be $38,720
You charge $500 on each of your two credit cards.
One is American Express with an interest rate of 15.99%.
The other is Chase Sapphire with an interest rate of
20.99%. Assuming that you are only making the minimum
payment of $25 to each of the credit card companies,
which card will you pay off first
It is advisable to pay off the Chase Sapphire card first to minimize the overall interest paid.
To determine which credit card to pay off first, we need to consider the interest rates and the minimum payment amounts. Let's calculate the interest accrued on each card and compare the total amounts.
For the American Express card with a balance of $500 and an interest rate of 15.99%, the interest accrued per month would be (15.99/100) * (500) = $79.95. With a minimum payment of $25, the remaining balance after the payment would be $500 - $25 = $475.
For the Chase Sapphire card with a balance of $500 and an interest rate of 20.99%, the interest accrued per month would be (20.99/100) * (500) = $104.95. After making the minimum payment of $25, the remaining balance would be $500 - $25 = $475.
Comparing the two cards, we see that the interest accrued on the Chase Sapphire card is higher ($104.95) compared to the American Express card ($79.95). Therefore, it is advisable to pay off the Chase Sapphire card first to minimize the overall interest paid.
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Which of the following statements about cash versus accrual accounting is most correct? A. In cash accounting, an event is recognized when a cash transaction occurs. B. In accrual accounting, an event is recognized when a cash transaction occurs. C. Most large healthcare organizations use cash accounting because it presents a better picture of the economic status of the organization. D. Most small healthcare organizations use accrual accounting because it closely matches statements required for income tax purposes. E. In cash accounting, an event is recognized when the obligation for a cash transaction is created.
Answer:
In cash accounting, an event is recognized when a cash transaction occurs
Explanation:
Account
This is simply a place to summarize all of the transactions that influence or affect one particular asset, liability, equity, revenue, expense, gain, or loss item.Cash are said to be asset.
Cash Accounting (COST)
This usually show (recognize) revenues and expenses when cash is physically paid or received even if or when transaction do happens. That is it will record only those transactions that affect cash ( only when someone gives or receives cash). It is very common in smaller business and can be a little inaccurate.
Accrual Accounting on the other hand, record revenue when sale is made and not when cash received. It also records expense when they arise and not when they are paid. It links revenues to when they were earned, while expenses when they are incurred. It is very common in bigger business and said to be more accurate indication of performance.
In order to sell a product at a profit, the product must be priced higher than the total cost to build the unit, plus period expenses and overhead. At the end of last year, Chester had their product Cake aimed at the Low End segment. Cake's production cost (labor + materials) last year was $14.07 ($5.89 unit labor cost and $8.18 unit material cost). Exclude possible inventory carrying costs. Assume period expenses and overhead total 50% of their production cost. What is the minimum price the product could have been sold for in the American region to cover the unit cost, period expenses, and overhead?
Answer:
Chester Cakes
The minimum price the product could have been sold for in the American region to cover the unit cost, period expenses, and overhead is:
= $21.11.
Explanation:
a) Data and Calculations:
Production cost:
Labor per unit = $5.89
Materials per unit 8.18
Total production cost $14.07
50% Overhead 7.04
Minimum price = $21.11
b) The minimum price for a unit of the cake includes the total variable production cost and the determined 50% overhead on the production cost to cover period expenses and other overhead costs.
