Ultimate Sportswear has $150,000 of 8% non-cumulative, non-participating, preferred stock outstanding. Ultimate Sportswear also has $550,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $35,000. This dividend should be distributed as follows:
a. $8,750 preferred: $26,250 common.
b. $0 preferred: $35,000 common.
c. $12.000 preferred: $23.000 common.
d. $19.000 preferred: $16.000 common
e. $17,500 preferred; $17,500 соmmоn.

Answers

Answer 1

Answer:

c. $12,000 preferred: $23,000 common

Explanation:

Calculation of how the Dividend should be distributed

First step is to calculate for preferred stock outstanding

Preferred stock outstanding=$150,000 * 8% non-cumulative

Preferred stock outstanding=$12,000

Second step is to calculate for common stock outstanding

Using this formula

Common stock outstanding = Cash Dividend-Preferred stock outstanding

Let plug in the formula

Common stock outstanding=$35,000-$12,000

Common stock outstanding=$23,000

Therefore Preferred stock outstanding will be $12,000 while Common stock outstanding will be $23,000


Related Questions

What is the equivalent annual annuity of a project that requires an investment of $50,000 today and is expected to generate free cash flows of $15,000 per year for the next five years? The company’s weighted average cost of capital is 13.1% per year.

Answers

Answer:

$749.57

Explanation:

equivalent annual annuity = (NPV x rate) / [1 - (1 + rate)⁻ⁿ]

using a calculator, the NPV = $2,630rate = 13.1%n = 5

equivalent annual annuity = ($2,630 x 0.131) / [1 - (1 + 0.131)⁻⁵] = $344.53 / 0.4596 = $749.57

The equivalent annual annuity is used to compare mutually exclusive projects and determine which yields the highest annual returns.

Recently, the Google team announced its fleet of driverless cars had completed over 1 million miles of "autonomous driving." The Google driverless car is at which stage of the new-product development process?

Answers

Answer:

Product Development (stage five)

Explanation:

Sometimes companies make moves towards introducing new products in the market space. To do this there are different stages that must be passed in the new-product development process. The product development stage is the stage where a prototype version of the product is produced. This version of the product would have the required features of the end product and the effect the product is expected to produce. After this stage, the product undergoes market testing. For products that took in a lot of investment, more intense test marketing should be done in order to ascertain what would really translate to higher sales for the product.

When the Google team announced that its fleet of driverless cars had completed over 1 million miles of 'autonomous driving', it means that they had produced the prototype of the product and it has undergone testing. The next stage would entail testing the product in the market and then commercialization.

risk-free assets have a beta of 0 and the market portfolio has a beta of 1. true or false true false

Answers

Answer: true

Explanation:

The term risk free assets are the assets that are secure because they are expected to bring about a return while the Beta is used to know the volatility of a portfolio when it is compared to the entire market.

Risk-free assets typically have zero beta since they're risk free. Therefore, risk-free assets have a beta of 0 and the market portfolio has a beta of 1 is true.

Joy Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of total sales each month. Historically, sales on account have been collected as follows: 50 percent in the month of the sale, 30 percent in the month after the sale, and the remaining 20 percent two months after the sale.
Gross sales for the quarter are projected as follows:
January $20,000
February $10,000
March $40,000
Accounts receivable on December 31 were $30,000.
Joy's expected cash collections for March would be:________.
A. $37,000
B. $32,000
C. $30,250
D. $47,200

Answers

Answer:

Total cash collection= $30,250

Explanation:

Giving the following information:

Cash sales are 25 percent of total sales each month.

Sales on account:

50 percent in the month of the sale

30 percent in the month after the sale

20 percent two months after the sale.

Sales:

January $20,000

February $10,000

March $40,000

We need to calculate the cash collection for March:

Sales on cash March= 40,000*0.25= 10,000

Sales on account March= (40,000*0.75)*0.5= 15,000

Sales on account February= (10,000*0.75)*0.3= 2,250

Sales on account January= (20,000*0.75)*0.2= 3,000

Total cash collection= $30,250

The ____________________ problem is the main source of market failure in the provision of nonexcludable public goods.

Answers

Answer: Free Rider

Explanation:

Non-excludable goods refers to public goods that are free to the public to use such goods and therefore there is no restriction to the  consumption of non-excludable goods because every single individual  has the right to access and consume it  For example,  Public parks, roads, and public infrastructures.

A non excludable good can overtime have a negative result in a community, because such good need to be constantly maintained so as to continue to be beneficial and  therefore may require small token of fair share among its consumers but there would always be some individuals who are referred to as Free Riders  who would rather use the good without paying for it and in the long run cause the good to not be adequate for all or difficult  to be maintained at its best resulting to failure in the provision of the non excludable public goods.

the free rider problem can be solved by

1. Government's intervention to subsidize the public good through fair distribution of tax, using the pay as you earn method .

2. Overused non excludable good can be privatized, ensuring that people who consume it, contribute to ts maintenance.

Which of the following conditions would necessitate the use of non-verbal communication instead of verbal communication?A) Low physical distanceB) Need for immediate feedbackC) Personal nature of communicationD) Familiarity with the listenerE) Increased noise

Answers

Answer:

E) Increased noise

Explanation:

The answer is that the condition that would necessitate the use of non-verbal communication instead of verbal communication is increased noise because the noise is any type of sound that affects the verbal communication and in a case of increased noise, it could be necessary to use non-verbal communication to be able to deliver a message.

The other options are not right because they don't affect the verbal communication in a way that forces you to use non-verbal communication.

​Break-even EBIT​ (with and without ​taxes). Alpha Company is looking at two different capital​ structures, one an​ all-equity firm and the other a levered firm with ​$ million of debt financing at ​% interest. The​ all-equity firm will have a value of ​$ million and shares outstanding. The levered firm will have shares outstanding. a. Find the​ break-even EBIT for Alpha Company using EPS if there are no corporate taxes. b. Find the​ break-even EBIT for Alpha Company using EPS if the corporate tax rate is ​%. c. What do you notice about these two​ break-even EBITs for Alpha​ Company? a. What is the​ break-even EBIT for Alpha Company using EPS if there are no corporate​ taxes?

Answers

Complete Question:

Alpha company is looking at two different capital structures, one an all-equity firm and the other a leverages firm with $2 million of debt financing at 8% interest. The all-equity firm will have a value of $4 million and 400,000 shares outstanding. The leveraged firm will have 200,000 shares outstanding.

a. Find the break even EBIT for Alpha company using EPS if there are no corporate taxes.

b.Find the break even EBIT for Alpha company using EPS if the corporate tax rate is 30%

c. What do you notice about these two break-even EBITs for Alpha company?

Answer:

Alpha Company

a. Break-even EBIT, using EPS without taxes:

= (EBIT - Interest 1) * (1 - taxes)/No. of shares =  (EBIT - Interest 2) * (1 - taxes)/No. of shares

With alternative 1, there are no taxes, so:

= (EBIT - Interest 1)/No. of shares = EBIT - Interest 2)/No. of shares

= (EBIT - 0)/400,000 = EBIT - ($2,000,000 x 8%)/200,000

= (EBIT/400,000( = (EBIT - $160,000)/200,000

cross-multiplying:

EBIT200,000 = EBIT$64,000,000,000

dividing by 200,000:

EBIT = $64,000,000,000/200,000

EBIT = $320,000

b. Break-even EBIT, using EPS with taxes:

= (EBIT - Interest 1) * (1 - taxes)/No. of shares =  (EBIT - Interest 2) * (1 - taxes)/No. of shares

= {(EBIT - $0) * (1 - 0.30)}/400,000 = {(EBIT - $160,000) * (1 - 0.30)}/200,000

= EBIT/400,000 = (EBIT - $112,000)/200,000

cross-multiplying:

= EBIT 200,000 = EBIT $44,800,000,000

EBIT = $44,800,000,000/200,000

= $224,000

c. The two break-even EBITs are not the same.  When there are taxes, the break-even EBIT is $224,000, less by $96,000.

Explanation:

a) Data:

Alternative 1: All Equity:

No. of shares = 400,000

Value of shares = $4,000,000

Debt = $0

Interest on Debt = $0

Alternative 2: Equity + Debt:

No. of shares = 200,000

Value of shares = $2,000,000

Debt = $2,000,000

Interest on Debt = 8% or $160,000

b) Alpha's break-even EBIT is the point when the EBIT under alternative 1 are equal to the EBIT under alternative 2.  This implies that under these given alternative financing options, the earnings before interest and taxes are before no matter the alternative chosen.

1.If the manufacturer is considering production quantities of 40,000 units or 80,000 units, assuming 90% of product will be sold and 10% will be salvaged, what is the profit per unit

Answers

Carrier sells air conditioning units to distributors. Ahead of the upcoming summer, demand probability is 40,000 units (25%), 55,000 units (35%), 70,000 units (25%), and 80,000 units (15%).

Fixed cost of production = $500,000

Variable cost of production per unit = $1,200

unit selling price= $1500

value for unsold products = $900

Answer the following questions:

1. If the manufacturer is considering production quantities of 40,000 units or 80,000 units, assuming 90% of product will be sold and 10% will be salvaged, what is the profit per unit?

Answer:

For 40,000 units

Profit per unit = $287.50

For 80,000 units

Profit per unit = $293.75

Explanation:

Total Profit = (0.9 * Total Unit Produced * Per unit selling price) + (0.1 * Total Unit Produced * Per unit selling price) - ( Fixed cost + (Total unit produce* Variable cost per unit))

Total Profit = (0.9 * 40,000 * 1,500 ) + (0.1 * 40,000 * 1,500) - (500,000 + (40,000 * 1,200))

=  54,000,000 + 6,000,000 - 48,500,000 = $11,500,000

For 40,000 units

Total Profit = $11,500,000

Profit per unit = total profit/no. of units

= 11,500,00 / 40,000 =  $287.50

For 80,000 units

Total Profit = (0.9 * 80,000 * 1,500 ) + (0.1 * 80,000 * 1,500) - (500,000 + (80,000 * 1,200))

= 108,000,000 + 12, 000,000 - 96,500,000

= 23,500,000

Total profit = $ 23,500,000

Profit per unit = 23,500,000 / 80,000

=  $293.75

Slack Inc. borrowed $400,000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31? a. $0. b. $48,000. c. $32,000. d. $36,000

Answers

Answer:

D.$36,000

Explanation:

Calculation for How much interest is recognized for the period from April 1 to December 31

First step is to find the 12% of the amount that was borrowed which is $400,000

$400,000×12%

=$48,000

Now let calculate for the amount of interest that is recognized from April 1 to December 31

Interest =$48,000×3/12

Interest =$12,000

Hence,

Interest =$48,000-$12,000

Interest=$36,000

Therefore the amount of interest that is recognized from April 1 to December 31 will be $36,000

The bond has a 12% annual coupon rate, a $1,000 par value, it matures in 15 years and pays coupon quarterly. The current bond price is $900. What is the bond’s annual yield? A. 14.28% B. None of the answers is correct C. 13.60% D. 12.85%

Answers

Answer:

A. 14.28%

Explanation:

As per Approximation formula,

Quarterly yield = (A + B / C) * 100

A = Quarterly coupon = 12% of 1,000 / 4 =30

B = (Redemption - Price value / Number of coupon) = (1,000 - 900) / (15 * 4)

= 1.667

C= (Redemption value + Price / 2) = 1,000 + 900 / 2 = 1,900 /2 =  950

Quarterly yield = 30 + 1.66667 / 950 = 31.6667 / 950 = 0.03333

Quarterly yield = 3.33%

Using the calculator, we get exact Ytm quarterly = 3.3925%

Effective amount yield = {(1 + 0.033925)^4 - 1} * 100

Effective amount yield = 0.142762 * 100

Effective amount yield = 14.2762%

Effective amount yield = 14.28%

Apply the integration-responsiveness framework to describe which global strategy Hollywood studios followed originally, and how their strategic positioning has changed over time. Explain how and why.

Answers

Answer is given below :

Explanation:

Global integration refers to the coordination of the organization’s value chain operations within countries, achieving efficiency, synergy and cross-fertilization between countries so that equality between countries is maximized. Between global integration and local accountability, the integration-accountability framework is called to help managers develop a deeper understanding of the business. We can say at the outset or at the outset that an export strategy that applies to Hollywood is used when a company focuses primarily on its domestic operations. It is not intended to expand globally, but to export certain products to take advantage of international opportunities. It does not seek to adapt its products to international markets. It is not interested in responding to specific situations in other countries or formulating a unified world strategy. Hollywood not only produced films and shows that catered to the needs of its native business aimed at American Western culture, but as the industry began to expand it began to adopt a multi-national strategy. Multi dimensional strategy follows products or processes for specific situations in each country. In the initial example, Lincoln should use a multi-year strategy to adapt its manufacturing methods to the conditions of each country where electric factories are built. Retailers often use multicultural strategies because they must cater to local customer tastes. Hollywood has started producing Indian films like Kung Fu Panda, Karate Kids, Oscar Winning Slumdog Millionaire.

The global strategy that Hollywood studios followed at first was the international strategy.

It should be noted that the global strategy that Hollywood studios followed originally was the international strategy where identical movies were showed in foreign countries.

This has changed now as there are different movies that are filmed and in different versions. Also, it isn't in the control of the government to edit out any part.

Read related link on:

https://brainly.com/question/17104121

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours. Standard hours per unit of output 4.50 machine-hours Standard variable overhead rate $11.52 per machine-hour
The following data pertain to operations for the last month:
Actual hours 8,900 machine-hours Actual total variable manufacturing overhead cost $95,920 Actual output 1,800 units
What is the variable overhead rate variance for the month?

Answers

Answer:

Variable manufacturing overhead rate variance= $7,209 favorable

Explanation:

Giving the following information:

Standard variable overhead rate $11.52 per machine-hour

Actual hours 8,900 machine-hours

Actual total variable manufacturing overhead cost $95,920

To calculate the variable overhead rate variance, we need to use the following formula:

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Standard rate= 95,290/8,900= 10.71

Variable manufacturing overhead rate variance= (11.52 - 10.71)*8,900

Variable manufacturing overhead rate variance= $7,209 favorable

Indicate the type of Deferred Tax account created by Unearned Revenues and Prepaid Expenses, respectively:

Answers

Answer:

The answer is Deferred tax asset and Deferred tax liability.

Explanation:

Unearned revenue creates deferred tax asset. In here, taxes have been paid because income has been received but have not been recognized on the income statement because according to the revenue recognition, the services for the revenue has not been rendered.

Prepaid expenses give rise to deferred tax liability. In here, taxes have been recognized on income statement but the actual tax has not been paid. Income tax expense on income statement is greater than taxes payable

Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.
a. True
b. False

Answers

Answer: False

Explanation:

Revenues are an equity entry and as such are credited when they increase therefore the credit side of an income statement contains revenue. Expenses on the other hand are debited to remove them from revenue.

A credit of $29,000 and a debit of $27,000 means that there was a net income of $2,000 not a net loss. If the debits are less than the credits then that means that there are less expenses than revenue which would bring about a profit.

Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $108,000 and semiannual interest payments.

Semiannual Period-End Unamortized Premium Carrying Value
(0) January 1, issuance $8,271 $116,271
(1) June 30, first payment 7,444 115,444
(2) December 31, second payment 6,617 114,617
Use the above straight-line bond amortization table and prepare journal entries for the following:

a) The issuance of bonds on January 1.

b) The first interest payment on June 30.

c) The second interest payment on December 31.

Answers

Answer:

See the journal entries and explanation below.

Explanation:

The journal entries will look as follows

a) The issuance of bonds on January 1.

Date         Accounts title                              Debit ($)         Credit ($)  

Jan. 1        Cash                                              111,671

                   Premium on Bonds Payable                                8,271

                   Bonds Payable (w.1)                                        108,000

          (To record issuance of bonds.)                                                  

b) The first interest payment on June 30.

Date         Accounts title                                 Debit ($)         Credit ($)  

Jun. 30    Interest Expense (w.4)                       3,493  

                 Premium on Bonds Payable (w.2)      827

                 Cash (w.3)                                                                 4,320

               (To record first interest payment)                                              

c) The second interest payment on December 31.

Date         Accounts title                                 Debit ($)         Credit ($)  

Dec. 31    Interest Expense (w.4)                       3,493  

                 Premium on Bonds Payable (w.5)      827

                 Cash (w.6)                                                                 4,320

               (To record second interest payment)                                              

Workings:

w.1: Bond payable = Cash - Premium on Bonds Payable = $111,671 - $8,271

w.2: Premium on Bonds Payable = January 1 Unamortized Premium - June 30 Unamortized Premium = $8,271 - $7,444 = $827

w.3: Cash = $108,000 * 8% * (6 / 12) = $4,320

w.4: Interest expense = w.3 - w.2 = $4,320 - $827 = $3.493

w.5: Premium on Bonds Payable = June 30 1 Unamortized Premium - December 31 Unamortized Premium = $7,444 - $6,617 = $827

w.6: Cash = $108,000 * 8% * (6 / 12) = $4,320

w.7: Interest expense = w.6 - w.5 = $4,320 - $827 = $3,493

A customer has requested that Inga Corporation fill a special order for 3,000 units of product K81 for $30 a unit. While the product would be modified slightly for the special order, product K81's normal unit product cost is $21.30:
Direct materials $ 5.40
Direct labor 6.00
Variable manufacturing overhead 2.50
Fixed manufacturing overhead 7.40
Unit product cost $21.30
Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product K81 that would increase the variable costs by $1.00 per unit and that would require an investment of $14,000 in special molds that would have no salvage value.
This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, the company's overall net operating income would increase (decrease) by:______.
A. $14,200
B. $31,300
C. $(13,700)
D. $(2,800)

Answers

Answer:

B. $31,300

Explanation:

Sales                                            $90,000

Less: Variable Cost                     $44,700

Less: Additional Fixed Cost        $14,000  

Increase in Operating Income  $31,300

Workings:

Sales= 3,000 unit * $30

Sales= 90,000

Variable cost = 3,000 unit * (5.4 + 6 + 2.5 +1)

Variable cost = 3,000 * 14.9

Variable cost = $44,700

A customer buys a variable annuity and elects a payout option of Life Income with a 20 year period certain. This means that payments will continue for:

Answers

Answer:

the annuitant's life, but if he dies before 20 years elapse, payments continue to his heir(s)

Explanation:

An annuity life payment is a financial option that continues until the annuitant dies. a lump sum payment is made by this annuitant which he uses in securing a payout option of Life Income with a 20 year period certain . This annuity would continues for as long as the customer or annuitant is alive, but if he dies before that certain period, Someone else, that is a beneficiary or heir would be entitled to the payment until that period of 20 years elapses.

What is the payback period of a project with average annual cash outflows of $8,000, average annual cash inflows of $10,000 and an initial investment of $13,000

Answers

Answer:

It will take 3 years and 219 days to cover for the initial investment.

Explanation:

Giving the following information:

Annual cash flow= 13,000 - 8,000= $5,000

Initital investment= $13,000

The payback period is the time required to cover for the initial investment:

Year 1= 5,000 - 13,000= -8,000

Year 2= 5,000 - 8,000= -3,000

Year 3= 5,000 - 3,000= 2,000

To be more accurate:

(3,000/5,000)*365= 219 days

It will take 3 years and 219 days to cover for the initial investment.

Some 150 million customers a month visit Amazon and the company passes through $160 billion in sales via its global supply channels and partnerships making interorganizational relationships very important to the company. Which interacting organization has a low coordination, low integration, transactional focus

Answers

Answer with Explanation:

Amazon is fastest growing company in the world which has crossed 2 billion customer visits. It has also increased the worth of the company to $1.14 trillions. The supply chain management is where the strengths of the company lies and nobody can match the pricing strategy, quality management and other significant factors that are included in the supply chain management to ensure that the customer is having what they are paying for.

Supply chain management process includes the key partners which includes their suppliers, partners, clients and customers as well who play important roles in the supply chain process by coordinating, integrating systems with each other and are involved in the transaction-al process.

The customers are the one who interact fewer than partners, suppliers, clients, etc because all they do is order a particular product. This is the first interaction of the customer with Amazon and the last interaction is when the customer received the order. So this means they are less interacting party in this process.

Suppliers are continuously contacted and informed about the pricing, supply chain issues, etc so that the company is able to deliver its customers what they are desiring. Supply chain partners also in the process of interacting with Amazon as they have to move products from supplier to the customer. These partners are highly interacted, possess integrating systems and of transaction-al importance to the company.

In a short-run model of a large open economy with a floating exchange rate, net capital outflow ______ as the domestic interest rate increases and is just equal to the ______ in net exports. Group of answer choices increases; decrease decreases; increase increases; increase decreases; decrease

Answers

Answer:

1. decreases

2. decrease

Explanation:

When Domestic interest rate increases, as a result of floating exchange rate, the net capital outflow decreases which in turn leads to most goods to be used internally, instead of exporting it abroad, there by reducing the level of exports.

Hence, All things being equal, it is assumed or believed that, In a short-run model of a large open economy with a floating exchange rate, net capital outflow DECREASES as the domestic interest rate increases and is just equal to the DECREASE in net exports.

An existing robot can be kept if $2,300 is spent now to upgrade it for future service requirements. Alternatively, the company can purchase a new robot to replace the old robot. The following estimates have been developed for both the defender and the challenger. The company's before-tax MARR is 25% per year. Based on this information, should the existing robot be replaced right now? Assume the robot will be needed for an indefinite period of time.
Defender Challenger
Current MV $39,000 Purchase price $50,000
Required upgrade $2,300 Installation cost $5,000
Annual expenses $1,600 Annual expenses $1,000
Remaining useful life 6 years Useful life 10 years
MV at end of useful life -$1,500 MV at end of useful life $7,000
The AW value of the defender is:________ $.

Answers

Answer:

The AW value of the defender is:________ $15,729.

Explanation:

a) Data and Calculations:

Defender                                                Challenger

Current MV                    $39,000           Purchase price            $50,000

Required upgrade           $2,300           Installation cost             $5,000

Annual expenses             $1,600           Annual expenses           $1,000

Remaining useful life      6 years           Useful life                     10 years

MV at end of useful life  -$1,500           MV at end of useful life $7,000

Investment = $39,000 + $2,300           Investment = $50,000 + $5,000

= $41,300                                                = $55,000

Present Value = ($41,300 +                   Present Value = ($55,000 +

$1,600 x 2.951)  = $46,021.60               $1,000 x 3.571) = $58,571

$46,022 + $393 ($1,500 x .262)            $58,571 - $749 ($7,000 x .107)

Equivalent Annual Cost                         Equivalent Annual Cost

= $46,415/ 2.951                                     = $57,822/3.571

= $15,729                                                = $16,192

The robots' Equivalent Annual Costs (or Average Weighted Value) are the total costs of owning, operating, and maintaining the robots for 6 years and 10 years respectively.  For the old robot, additional cost of $1,500 will be incurred to retire the asset, while the new robot will have a salvage value of $7,000.  These are factored into the equivalent annual costs, after discounting them to their present values.

Whenever an existing piece of equipment is considered for replacing by a new piece of equipment, the old piece is referred to as the defender, and the new piece of equipment is referred to as the challenger.  

The AW value of the defender is------------$15,729.

a) Data and Calculations:

Defender                                                Challenger

Current MV  -------$39,000                     Purchase price-------$50,000

Required upgrade----------$2,300           Installation cost------$5,000

Annual expenses-----------$1,600           Annual expenses -------$1,000

Remaining useful life--------6 years           Useful life ------10 years

MV at end of useful life------$1,500           MV at end of useful life--$7,000

Investment--------- $39,000 + $2,300           Investment = $50,000 + $5,000

= $41,300                                                           = $55,000

Present Value = ($41,300 +                      Present Value = ($55,000 +

[tex]\$1,600 \times 2.951[/tex])  = $46,021.60                  [tex]\$1,000 \times3.571[/tex]) = $58,571

$46,022 + $393 [tex](\$1,500 \times .262)[/tex]                $58,571 - $749 ([tex]\$7,000 \times .107[/tex])

Equivalent Annual Cost                             Equivalent Annual Cost

= [tex]\frac{\$46,415}{ 2.951}[/tex]                                                            = [tex]\frac{\$57,822}{3.571}[/tex]

= $15,729                                                        = $16,192

The overall expenses of owning, operating, and maintaining the robots for 6 - 10 years, correspondingly, are the Equivalent Annual Costs (or Average Weighted Value).

The old robot will incur an additional cost of $1,500 to retire it, but the new robot will have a salvage value of $7,000. After discounting to the current value, these are included in the comparable yearly expenses.

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If Ben invests $3500 at 4% interest per year, how much additional money must he invest at 5 1 2 % annual interest to ensure that the interest he receives each year is 4 1 2 %

Answers

Answer:

Additional $1,750 must be invested by Ben.

Explanation:

Note: The question is not complete as some dots are omitted. The question is therefore given correctly before answering it as follows:

If Ben invests $3500 at 4% interest per year, how much additional money must he invest at 5 1/2 % annual interest to ensure that the interest he receives each year is 4 1/2 %.

The question is now answered as follows:

From the question, we have:

Initial amount invested = $3,500

Interest rate on initial amount invested = 4%, or 0.04

Interest amount from initial amount invested = Initial amount invested * Interest rate on initial amount invested = $3,500 * 4% = $140

Let y represents the additional amount to invest. Therefore, we have:

Interest rate of additional amount invested = 5 1/2% = 5.5% = 0.055

Interest amount from additional amount invested = y * Interest rate of additional amount invested = y * 0.055 = y0.055

Total interest amount = Interest amount from initial amount invested + Interest amount from additional amount invested = $140 + y0.055

New amount invested = Initial amount invested + y = $3,500 + y

Interest rate of new amount invested = 4 1/2% = 4.5% = 0.045

Interest amount from new amount invested = New amount invested * ($3,500 + y) * 0.045 = $157.50 + y0.045

Since total interest amount must equal interest amount from new amount invested, we equate the two and solve as follows:

Total interest amount = Interest amount from new amount invested

$140 + y0.055 = $157.50 + y0.045

We can now solve for y as follows:

y0.055 - y0.045 = $157.50 - $140

y0.01 = $17.50

y = 17.50 / 0.01

y = $1,750

Therefore, additional $1,750 must be invested by Ben.

Hankins Corporation has 8.1 million shares of common stock outstanding, 300,000 shares of 4.1 percent preferred stock outstanding, par value of $100; and 185,000 bonds with a semiannual coupon rate of 5.5 percent outstanding, par value $2,000 each. The common stock currently sells for $57 per share and has a beta of 1.15, the preferred stock has a par value of $100 and currently sells for $99 per share, and the bonds have 18 years to maturity and sell for 107 percent of par. The market risk premium is 6.6 percent, T-bills are yielding 3.3 percent, and the company’s tax rate is 24 percent.A. What is the firm’s market value capital structure?B. If the company is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flows?Solve for:A. DebtPreferred StockEquityB. Discount Rate

Answers

Answer:

common stocks = 8,100,000 x $57 = $461,700,000

preferred stocks = 300,000 x $99 = $29,700,00

debt = 185,000 x $2,000 x 1.07 = $395,900,000

total market value = $887,300,000

a)

capital structure:

common stocks = $461,700,000 / $887,300,000 = 52.03%

preferred stocks = $29,700,00 / $887,300,000 = 3.35%

debt = $395,900,000 / $887,300,000 = 44.62%

b) WACC = 7.48%

Re = 3.3% + (1.15 x 6.6%) = 10.89%

Cost of preferred stock = 4.1 / 99 = 4.14%

cost of debt = YTM = {55 + [(2,000 - 2,140)/36]} / [(2,000 + 2,140)/2] = 51.11 / 2,070 = 2.469 x 2 = 4.94%

WACC = (10.89 x 52.03%) + (4.14 x 3.35%) + (4.94 x 44.62% x 0.76) = 5.67% + 0.14% + 1.67% = 7.48%

Part-time workers likely result in A. inaccurately high estimates of the labor force. B. inaccurately low estimates of the labor force. C. a disincentive for the unemployed to seek employment. D. lower incomes and fewer jobs.

Answers

Answer:

Correct answer:

A. inaccurately high estimates of the labor force.

Explanation:

Part-time work is the type of work where an individual has a flexible work plan is a given company unlike the traditional full-time work. Doing such work create the impression that, there is high labour force among the various industries and sectors. For example, someone might be working in two different firms under part-time basis same day which create an impression of two different individuals.

Karya Company produces a handcrafted musical instrument called a gamelan. The gamelans are sold for a unit price of $839 Selected data for the company's operations last year follow: Units in beginning inventory 0 Unit produced 11,000 Units sold 7,000 Variable cost per unit: Direct materials $150 Direct labor $450 Variable manufacturing overhead $47 Variable selling and administrative $19 Fixed costs: Fixed manufacutring overhead $790,000 Fixed selling and administrative $620,000 What are the unit product costs under absorption and variable costing system

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Unit produced 11,000

Variable cost per unit:

Direct materials $150

Direct labor $450

Variable manufacturing overhead $47

Fixed costs:

Fixed manufacturing overhead $790,000

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Variable costing:

Unitary cost= 150 + 450 + 47= $647

Absorption costing:

Unitary fixed overhead= 790,000/11,000= $71.82

Unitary cost= 647 + 71.82= $718.82

A company's net sales are $787,030, its costs of goods sold are $439,160, and its net income is $106,280. Its gross margin ratio equals:

Answers

Answer:

Gross margin ratio = 46.57%

Explanation:

Gross margin is also known as gross profit margin ratio, and it is a measure of profitability. It compares a company's gross margin to its revenue and shows how much profit is made after the cost of goods sold is paid for.

the formula for calculating gross margin is as follows:

[tex]Gross\ Margin =\ \frac{(Total\ Revenue)-(cost\ of\ goods\ sold) }{Total\ Revenue} \times 100[/tex]

where:

Total revenue = net sales = 787,030

cost of goods sold = $439,160

[tex]\leq Gross\ Margin =\ \frac{787,030-439,160 }{747,030} \times 100\\\\Gross\ Margin =\ \frac{347,870 }{747,030} \times 100\\Gross\ Margin =\ 46.57\%[/tex]

Stephen Battista argues that public relations should help Under Armour convince customers that the company has a new kind of sports apparel. One way that public relations differs from other kinds of marketing communications is that it substitutes the term ________ for target market. Multiple Choice target audience consumer referent group public market segment

Answers

Answer:

The correct answer is the option: Public.

Explanation:

To begin with, the term of "Public Relations" refers to the instrument that the marketing managers have in order to establish better relationships with agents that are outside the company with the primary focus of increasing those relations that will eventually increase the company's public image. Moreover, one the variables that changes when the company decides to use this type of strategy is the fact that the target audience or market changes to be the public in general and that is why that the company forgets about their customers and focus on the public as a whole.

Rocket Shoe Company is planning a one-month campaign for August to promote sales of one of its two shoe products. A total of $113,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign. Cross-Trainer Shoe Running ShoeUnit selling price $41 $45 Unit production costs: Direct materials $(8) $(10) Direct labor (3) (3) Variable factory overhead (2) (3) Fixed factory overhead (3) (4) Total unit production costs $(16) $(20) Unit variable selling expenses (13) (12) Unit fixed selling expenses (8) (4) Total unit costs $(37) $(36) Operating income per unit $4 $9No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 24,000 additional units of cross-trainer shoes or 20,000 additional units of running shoes could be sold without changing the unit selling price of either product.Required:Prepare a differential analysis report presenting the additional revenue and additional costs anticipated from the promotion of cross-trainer shoes and running shoes.

Answers

Answer:

Contribution Margin from proposal

Cross Trainer Shoes $360,000

Running Shoe $340,000

Explanation:

Preparation of differential analysis for Rocket Shoe Company

DIFFERENTIAL ANALYSIS

Cross Trainer Shoes Running Shoe

Differential Revenue 984,000 900,000

Differential costs:

Direct Material (192,000) (200,000)

Direct labor (72,000) (60,000)

Variable factory overhead (48,000) (60,000)

Variable selling expense (312,000) (240,000)

Differential cost (624,000) (560,000)

Contribution Margin from proposal 360,000 340,000

Differential Revenue

Cross Trainer Shoes(41*24,000)=$984,000

Running Shoe(45*20,000) =$900,000

Differential costs:

Direct Material

Cross Trainer Shoes (8*24,000)=192,000

Running Shoe(10*20,000)=200,000

Direct labor

Cross Trainer Shoes (3*24,000)=72,000

Running Shoe(3*20,000)=60,000

Variable factory overhead

Cross Trainer Shoes (2*24,000)=48,000

Running Shoe(3*20,000)=60,000

Variable selling expense

Cross Trainer Shoes (13*24,000)=312,000

Running Shoe(12*20,000)=240,000

Differential cost is the addition of direct materials +direct labor + Variable factory overhead+Variable selling expense

Contribution Margin from proposal

Cross Trainer Shoes 984,000-624,000=360,000

Running Shoe 900,000-560,000=340,000

Since Cross trainer shoes had $360,000 this means that cross trainer shoes would contribute more than Running shoe which had $340,000 because Cross trainer shoes contribution margin is higher.

Assume that the tracking error of Portfolio X is 13.20 percent. What is the information ratio for Portfolio X

Answers

Answer:

The answer is below

Explanation:

To calculate the information ratio of portfolio X, we have to first calculate the Jensen's alpha of portfolio X. The Jensen's alpha is given as:

Jensen’s Alpha = Expected Portfolio Return – [ Risk-Free Rate + Beta of the Portfolio* (Expected Market Return – Risk-Free Rate) ]

From the picture attached, the values of the data are gotten, substituting:

[tex]\alpha_p=R_p-[R_f+B_p(R_m-R_f)]\\\\\alpha_p=13-[5+1.3(10.1-5)]=1.37=1.37\%[/tex]

Information ratio = Jensen's alpha / Tracking error = 1.37% / 13.2% = 0.1038

During the year, Octagon produced 8,000 units, used 24,000 direct labor hours, and incurred variable overhead of $120,000. Budgeted variable overhead for the year was $90,000. The hours allowed per unit are 2. The standard variable overhead rate is $3.00 per direct labor hour. The variable overhead spending variance is: Group of answer choices $48,000 U. $61,000 U. None of these $27,000 U. $54,000 F.

Answers

Answer:

Variable manufacturing overhead rate variance=  $48,000 unfavorable

Explanation:

Giving the following information:

Actual direct labor= 24,000 direct labor hours

Actual variable overhead of $120,000.

The standard variable overhead rate is $3.00 per direct labor hour.

To calculate the variable overhead spending variance, we need to use the following formula:

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Actual rate= 120,000/24,000= $5

Variable manufacturing overhead rate variance= (3 - 5)*24,000

Variable manufacturing overhead rate variance=  $48,000 unfavorable

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