The cost of goods manufactured for the month is $165,640, and the cost of goods sold is $155,740.
Primare Corporation: Schedule of Cost of Goods Manufactured
Direct materials:
Total raw materials available = Purchases of raw materials + Beginning raw materials inventory
Total raw materials available = $31,000 + $11,800 = $42,800
Raw materials used in production = Total raw materials available - Ending raw materials inventory
Raw materials used in production = $42,800 - $18,500 = $24,300
Direct materials used in production = Raw materials used in production + Indirect materials used in production
Direct materials used in production = $24,300 + $4,640 = $28,940
Total manufacturing costs added to production = Direct materials used in production + Direct labor + Manufacturing overhead applied to work in process
Total manufacturing costs added to production = $28,940 + $59,400 + $88,100 = $176,440
Total manufacturing costs to account for = Beginning work in process inventory + Total manufacturing costs added to the production
Total manufacturing costs to account for = $55,500 + $176,440 = $231,940
Cost of goods manufactured = Total manufacturing costs to account for - Ending work in process inventory
Cost of goods manufactured = $231,940 - $66,300 = $165,640
Therefore, the schedule of cost of goods manufactured for the month is as follows:
Primare Corporation: Schedule of Cost of Goods Manufactured
Direct materials:
Total raw materials available $42,800
Raw materials used in production $24,300
Direct materials used in production $28,940
Total manufacturing costs added to production $176,440
Total manufacturing costs to account for $231,940
Cost of goods manufactured $165,640
Primare Corporation: Schedule of Cost of Goods Sold
Cost of goods manufactured $165,640
Beginning finished goods inventory $33,400
Cost of goods available for sale $199,040
Ending finished goods inventory $43,300
Cost of goods sold $155,740
Assuming the underapplied or overapplied overhead is close to the Cost of Goods Sold, the cost of goods sold for the month is $155,740.
Therefore, the schedule of cost of goods sold for the month is as follows:
Primare Corporation: Schedule of Cost of Goods Sold
Cost of goods manufactured $165,640
Beginning finished goods inventory $33,400
Cost of goods available for sale $199,040
Ending finished goods inventory $43,300
Cost of goods sold $155,740
In conclusion, the cost of goods manufactured for the month is $165,640, and the cost of goods sold is $155,740.
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Fama's LLamas has a weighted average cost of capital of 9.4 percent. The company cost of equity is 13 percent, and its pretax cost of debt is 6.7 percent. The tax rate is 2 percent. What is the company's target debt-equity ratio?
The ideal debt-to-equity ratio for Fama's LLamas is at 6.27%.
Fama's LLamas is a company with a weighted average cost of capital of 9.4 percent, which takes into account the cost of both equity and debt financing.
The company's cost of equity is 13 percent, while its pre-tax cost of debt is 6.7 percent. With a tax rate of 2 percent, the after-tax cost of debt is 6.56 percent.
To determine Fama's LLamas' target debt-equity ratio, we can use the formula:
Target Debt-Equity Ratio = (1 - Tax Rate) x (Cost of Equity - Cost of Debt)
(1 - 0.02) x (0.13 - 0.066)
= 0.98 x 0.064
= 0.0627 or approximately 6.27%
Therefore, Fama's LLamas' target debt-equity ratio is about 6.27%, meaning that the company should aim to have a slightly higher proportion of equity financing compared to debt financing in order to maintain its desired level of financial risk and return on investment.
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Management accounting is said to meet: Select one: O A. The external accounting needs of the organisation OB. The regulatory requirements of the organisation O C. The internal accounting needs of the organisation OD. The requirements of laws which govern company financial reporting
The correct answer is C. The internal accounting needs of the organisation.
Management accounting focuses on providing financial information and analysis to help managers make informed decisions about the operations and performance of the organisation. This includes creating budgets, analyzing costs, and evaluating the financial impact of different business decisions. While external accounting and regulatory requirements are important, they are typically handled by financial accountants and auditors.
Management accountants play a crucial role in providing information related to budgeting, cost analysis, performance evaluation, and strategic planning. They help managers understand the financial implications of various business activities, identify cost-saving opportunities, assess the profitability of different products or services, and make informed decisions to improve organizational performance.
While external accounting and regulatory requirements are important and necessary for compliance with financial reporting standards and legal obligations, they are typically handled by financial accountants and auditors. Financial accounting focuses on preparing financial statements that comply with generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS) and providing information to external stakeholders such as investors, creditors, and regulatory authorities.
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the benefits of economic development under colonial rule accrued fairly evenly to colonial peoples and european wage laborers, as well as banks and import-export firms in europe. true or false
False. The benefits of economic development under colonial rule did not accrue fairly evenly to colonial peoples and European wage laborers, as well as banks and import-export firms in Europe.
The statement is false as economic development under colonial rule was characterized by significant inequalities and imbalances in the distribution of benefits. Colonial powers primarily aimed to extract resources and wealth from their colonies, often exploiting the local population and resources for their own economic gain.
Colonial peoples, who were subjected to exploitative systems such as forced labor, low wages, and discriminatory policies, typically experienced limited benefits from economic development. Their labor and resources were exploited to fuel the economic growth of the colonial powers, while the majority of the profits and benefits flowed back to Europe.
European wage laborers, on the other hand, often faced harsh working conditions and low wages during the colonial era. They were often pitted against colonial subjects in a race to the bottom, as companies sought to maximize their profits by keeping labor costs low.
Meanwhile, banks and import-export firms in Europe were the primary beneficiaries of the colonial economic system. They controlled the financial and trade networks, profiting from the extraction of resources and the sale of colonial products in European markets.
Overall, the benefits of economic development under colonial rule were highly skewed in favor of the colonial powers and the economic elite in Europe, while the colonial peoples and European wage laborers faced significant disadvantages and exploitation.
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From the basis of the following pieces of information, please give the exact equation of the SRAS in terms of inflation. (6 marks) i) ii) Wage setting curve: W/P=1-2utz Production function in the economy: Y=ANOS
To derive the short-run aggregate supply (SRAS) equation in terms of inflation, we need to combine the information given about the wage setting curve and the production function.
i) The wage setting curve is given by W/P = 1 - 2utz, where W represents nominal wages, P represents the price level, u represents the unemployment rate, t represents a constant, and z represents a variable capturing other factors influencing wage setting.
ii) The production function in the economy is given by Y = ANOS, where Y represents output, A represents total factor productivity, N represents the level of employment, O represents a measure of capacity utilization, and S represents a supply shock.
In the short run, assuming that the level of employment (N) is fixed and there are no supply shocks (S = 0), we can express the output (Y) in terms of the price level (P) and total factor productivity (A) as:
Y = AN
Using the wage setting curve, we can substitute the wage (W) in terms of the price level (P) as:
W/P = 1 - 2utz
Since wages(W) are a cost component of production, we can equate it to the marginal cost (MC), which is equal to the nominal wage divided by the price level (W/P):
MC = W/P = 1 - 2utz
Since in the short run, marginal cost (MC) is equal to the average variable cost (AVC), we can equate it to the output (Y) divided by the level of employment (N):
MC = AVC = Y/N
Combining the equations, we can express the short-run aggregate supply (SRAS) equation in terms of inflation (π), where π represents the rate of change of the price level (P):
1 - 2utz = Y/N = Y/(AN)
Simplifying the equation, we get:
1 - 2utz = (Y/AN)
Multiplying both sides by AN:
AN - 2ANutz = Y
Dividing both sides by AN:
1 - 2utz = (Y/AN) = (Y/(AN)) * (A/A)
1 - 2utz = (Y/A) * (1/A) = (Y/A^2)
Rearranging the equation, we obtain the SRAS equation in terms of inflation:
1 - 2utz = (Y/A^2) = (Y/AN) = (Y/AN) * (N/N)
1 - 2utz = (Y/AN) * (N/N) = (Y/AN) * (1/N)
1 - 2utz = (Y/AN) * (1/N)
Therefore, the exact equation of the short-run aggregate supply (SRAS) in terms of inflation is:
1 - 2utz = (Y/AN) * (1/N)
Please note that this equation assumes fixed employment (N) and no supply shocks (S = 0) in the short run.
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The market for cigarettes has the following supply and demand functions: Q* = 8 + 3PS QP = 20 - PD where ps and pb denote the prices (in pounds) recelved by sellers and price paid by buyers respect
In the market for cigarettes, the supply and demand functions.
Supply function: Qs = 8 + 3PS
Demand function: Qd = 20 - PD
Here, Qs represents the quantity supplied by sellers, Qd represents the quantity demanded by buyers, PS represents the price received by sellers, and PD represents the price paid by buyers.
To find the equilibrium price and quantity in the market, we set the quantity supplied equal to the quantity demanded:
Qs = Qd
8 + 3PS = 20 - PD
Simplifying the equations, we can rearrange them to solve for the equilibrium price and quantity:
3PS + PD = 12 (Equation 1)
Qs = Qd
Now, the equilibrium price and quantity can be determined by solving the system of equations formed by Equation 1 and the supply and demand functions.
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which of the following statements is true? i. sugar consumers pay higher prices because of sugar quotas, a sufficient incentive for them to campaign against politicians that favor quotas. ii. sugar producers know more about sugar quotas than do sugar consumers because the quota system has a large effect on sugar industry profits. iii. when it comes to sugar trade policy, sugar producers are rationally informed and sugar consumers are rationally ignorant. group of answer choices
a) i only b) i and ii only c) ii and iii only
d) i, ii, and iii
Sugar producers know more about sugar quotas than do sugar consumers because the quota system has a large effect on sugar industry profits. The statement that is true is option ii.
Sugar quotas directly affect the amount of sugar that can be produced and sold, which in turn affects the profits of sugar producers. Therefore, sugar producers have a greater incentive to understand and influence sugar trade policies, including quotas.
Option i is not entirely true, as sugar consumers may not necessarily campaign against politicians that favor quotas just because they pay higher prices for sugar. Other factors such as convenience, taste, and brand loyalty may also influence their purchasing decisions.
Option iii may be partly true, as sugar producers may have more information about sugar trade policies and their implications for the industry. However, it is not fair to assume that sugar consumers are rationally ignorant, as they may also have valid concerns and opinions about sugar trade policies.
Overall, the incentive for different stakeholders in the sugar industry to influence sugar trade policies varies based on their interests and the potential impact on their profits or costs. The statement that is true is option ii.
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i caused water damage to my downstairs condo neighbor. i'm uninsured. should i pay him directly or request he file a claim with his insurance? what saves me more money?
When you have caused water damage to your uninsured downstairs condo neighbor, it is generally advisable to pay them directly rather than requesting them to file a claim with their insurance. This approach helps to avoid potential negative consequences and maintain a good relationship.
By paying your neighbor directly for the damage, you take direct responsibility for your actions and demonstrate accountability. Requesting your neighbor to file a claim with their insurance may lead to increased premiums for them, especially if they are found to be at fault. Paying them directly avoids potentially impacting their insurance rates and shows your willingness to resolve the situation without involving their insurance company.
Furthermore, if your neighbor's insurance company discovers that you were at fault for the water damage, they may seek reimbursement from you directly. This can result in legal complications and higher costs in the long run. By taking the initiative to pay for the damages upfront, you can avoid potential legal disputes and maintain a positive relationship with your neighbor.
In summary, paying your uninsured downstairs condo neighbor directly for the water damage you caused is the recommended course of action. It demonstrates responsibility, helps preserve a good relationship, and avoids potential negative consequences associated with involving insurance companies.
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roke inc. is experiencing a cashflow problem finding that its cash decreases, even though net income increases. which would be the possible reason?
One possible reason for Roke Inc. experiencing a cash flow problem, despite an increase in net income, could be an issue with accounts receivable.
Here's how it can happen:
1. Sales on credit: Roke Inc. may have made sales on credit, allowing customers to pay at a later date. While these sales contribute to an increase in net income (as revenue is recognized), they do not immediately generate cash inflows.
2. Slow collections: If Roke Inc. is facing delays or difficulties in collecting payments from customers, it can result in a decrease in cash even though net income is increasing. Customers may be taking longer to pay their outstanding invoices, causing a delay in cash receipts.
3. Increased inventory: Another possibility is that Roke Inc. is investing more in inventory to meet growing demand. Building up inventory requires cash outflows to purchase or produce goods, which can lead to a decrease in cash.
4. Operating expenses: If Roke Inc.'s operating expenses, such as salaries, rent, utilities, or raw materials, are increasing at a faster rate than its sales, it can impact cash flow. Higher expenses can absorb the cash generated from increased net income, resulting in a decrease in cash.
It's essential to analyze the specific financial statements and cash flow statement of Roke Inc. to determine the exact reasons for the cash flow problem. Additionally, other factors such as capital expenditures, loan repayments, or changes in financing activities could also contribute to the cash flow issue.
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Imagine you are addressing a person who is deeply involved in personal conflict with a long-term business associate over a breach of contract. Tell this party, in your own words, what negotiation and mediation are and how either of them might be preferable to a civil lawsuit for addressing their problem. Explain what negotiation and mediation can and can't accomplish.
Negotiation and mediation are alternative dispute resolution methods to avoid the expense and hassle of a civil lawsuit. In a personal conflict over a breach of contract with a long-term business associate, either of them might be preferable to a lawsuit as they can be less time-consuming, expensive, and adversarial. Negotiation involves the parties meeting and discussing the issue, with a goal to reach a mutually acceptable solution. Mediation, on the other hand, involves a third-party mediator who works to facilitate an agreement between the parties.
Negotiation and mediation can both accomplish conflict resolution without the need for a trial and a judge's ruling. Both methods can preserve a working relationship between the parties, as they involve finding a mutually acceptable solution. However, negotiation and mediation have their limitations. The parties may not be able to reach an agreement, which means that further legal action may still be necessary. Additionally, some disputes may be too complex for these methods to effectively address. While negotiation and mediation are often preferable to a civil lawsuit, they are not always the best option.
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Suppose a stock provides, over an infinitesimally short period of time, an expected return of = 0.10 per annum and has a volatility of 0= 20 per annum. What is the expected value of the continuously compounded return during the course of one year?
The expected value of the continuously compounded return during the course of one year is approximately 0.0953.
The continuously compounded return can be calculated using the formula:
ln(1 + R) = μ - σ^2/2
Where R is the continuously compounded return, μ is the expected return, and σ is the volatility.
In this case, the expected return (μ) is 0.10 per annum and the volatility (σ) is 0.20 per annum.
Substituting these values into the formula:
ln(1 + R) = 0.10 - (0.20)^2/2
ln(1 + R) = 0.10 - 0.02/2
ln(1 + R) = 0.10 - 0.01
ln(1 + R) = 0.09
To find the expected value of the continuously compounded return (R), we take the exponential of both sides:
1 + R = e^0.09
Simplifying the expression gives:
1 + R = 1.0953
Subtracting 1 from both sides:
R = 0.0953
Therefore, the expected value of the continuously compounded return during the course of one year is approximately 0.0953 (or 9.53%).
The question should be:
Suppose a stock provides, over an infinitesimally short period of time, an expected return of μ= 0.10 per annum and has a volatility of σ= .20 per annum. What is the expected value of the continuously compounded return during the course of one year?
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Assume that a company is considering a capital investment project with a four-year time horizon and the following cash flows: Cost of new equipment $ 210,000 Working capital required $ 50,000 Annual net cash inflows $ 100,000 Maintenance and repairs in third year $ 40,000 Salvage value of equipment in fourth year $ 30,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming the company's required rate of return is 20%, the profitability index of the project is closest to:
The profitability index is calculated by dividing the total present value of the cash flows by the initial investment. In this case, the profitability index is $347,609 / $210,000 = 1.6553. The closest profitability index for this project is 1.66.
To determine the appropriate discount factor(s) using the provided tables, we need to identify the project's time horizon and the required rate of return. Since the project has a four-year time horizon and a required rate of return of 20%, we can use Exhibit 14B-2 to find the discount factor for 20% and four years, which is 0.4823.
Next, we need to calculate the net present value (NPV) of the project. We can do this by finding the present value of each cash flow and subtracting the initial investment.
The present value of the annual net cash inflows is $100,000 x 3.0374 (from Exhibit 14B-1 for 20% and four years) = $303,740.
The present value of the maintenance and repairs in the third year is $40,000 x 0.7350 (from Exhibit 14B-1 for 20% and three years) = $29,400.
The present value of the salvage value in the fourth year is $30,000 x 0.4823 = $14,469.
The total present value of the cash flows is $303,740 + $29,400 + $14,469 = $347,609.
Subtracting the initial investment of $210,000 and the working capital required of $50,000, we get a net present value of $87,609.
The profitability index is calculated by dividing the total present value of the cash flows by the initial investment. In this case, the profitability index is $347,609 / $210,000 = 1.6553.
Therefore, the closest profitability index for this project is 1.66.
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closing entries are needed to prepare the books for the new accounting period. group of answer choices true false
True, closing entries are needed to prepare the books for the new accounting period. They ensure that temporary accounts, such as revenues and expenses, are closed and their balances are transferred to permanent accounts for accurate financial reporting.
Closing entries are necessary to prepare the books for the new accounting period. These entries are made at the end of an accounting period to close temporary accounts, such as revenue, expense, and dividend accounts, and transfer their balances to the retained earnings or capital account.
By closing these accounts, the company starts the new accounting period with zero balances in the temporary accounts, which allows for accurate recording of transactions in the new period. Closing entries ensure that the income and expenses of the previous period are properly closed out and reflected in the retained earnings or capital account, providing an accurate starting point for the new accounting period.
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Briefly describe IBM's investment in new software research, development, and engineering. Did IBM amortize more or less capitalized software costs during 2020 compared to 2019? Why was there a difference?
IBM has invested heavily in new software research, development, and engineering. In fact, the company has spent over $5 billion annually on research and development alone. This investment has allowed IBM to stay at the forefront of technological advancements and develop innovative solutions for its clients.
In terms of amortizing capitalized software costs, IBM actually amortized less in 2020 compared to 2019. This is because the company experienced a decline in its revenue and earnings due to the COVID-19 pandemic. As a result, IBM had to cut costs and prioritize investments in areas that would provide the most value to its clients.
Overall, IBM's investment in software research, development, and engineering has allowed the company to remain competitive in the market and develop innovative solutions that help businesses stay ahead of the curve. While there was a slight decrease in the amount of capitalized software costs amortized in 2020, IBM remains committed to investing in new technologies and delivering value to its clients.
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Isabella invested in a stock for five years. The annual return over the past five years were: 14.4%, 28.7%, 38.2%, 19.4%, and 38.0%, respectively. What was her average annualized rate of return over the past five years?
Isabella's average annualized rate of return over the past five years was 33.8%. The calculations are as follows:
Average Annualized Rate of Return = [(1 + Rate of Return 1) x (1 + Rate of Return 2) x ... x (1 + Rate of Return n)]^(1/n) - 1
Where n is the number of years (in this case, 5), and the Rate of Return is the annual return for each year.
Plugging in the values we have, we get: Average Annualized Rate of Return = [(1 + 0.144) x (1 + 0.287) x (1 + 0.382) x (1 + 0.194) x (1 + 0.380)]^(1/5) - 1
Simplifying the equation, we get the following: Average Annualized Rate of Return = [2.522^(1/5)] - 1
Calculating this value, we get: Average Annualized Rate of Return = 0.338 or 33.8%
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A stock just paid $4.2 dividend yesterday. The dividend is expected to grow at 2.5% per year thereafter. If the investor’s required rate of return on the stock is 11.7%, the stock price should be _______. (Round your answer to two decimal places, such as 12.34)
The value of Stock price is = $45.65
To calculate the stock price using the dividend growth model, we can use the formula:
Stock Price = Dividend / (Required Rate of Return - Dividend Growth Rate)
Given:
Dividend = $4.2
Dividend Growth Rate = 2.5%
Required Rate of Return = 11.7%
Let's substitute the values into the formula:
Stock Price = 4.2 / (0.117 - 0.025)
Stock Price = 4.2 / 0.092
Stock Price ≈ 45.65
Therefore, the stock price should be approximately $45.65.
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Researches and summarizes each of the five generations in the workforce:
Traditionalists
Baby Boomers
Generation X
Millennials
Generation Z
Identifies effective strategies for communicating with, motivating, and supporting a generationally diverse workforce.
How does each generation prefer to communicate?
How do you keep them engaged?
Examines the benefits that companies have experienced employing multigenerational workforces and why these are important for organizational success.
Analyzes potential communication and collaboration challenges that could occur among the different generations and why these are important to understand when managing a diverse workforce. References and Citations needed.
To keep all five generations engaged in the workforce, adapt your management style and offer diverse communication channels. Address potential collaboration challenges by understanding generational differences.
Each generation in the workforce has unique characteristics, preferences, and communication styles. The five generations are: Traditionalists (1925-1945), Baby Boomers (1946-1964), Generation X (1965-1980), Millennials (1981-1996), and Generation Z (1997-2012). To keep them engaged, consider the following:
1) Offer various communication channels, such as face-to-face, phone, email, and instant messaging;
2) Provide flexible work arrangements, recognizing that different generations may have different work-life balance priorities;
3) Encourage mentorship and cross-generational collaboration to foster learning and understanding among employees.
By being aware of generational differences and promoting a culture of inclusivity and respect, you can help ensure that all employees feel valued, leading to increased engagement and productivity. Remember to provide proper references and citations when using information from external sources.
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edmonds community college's (edcc) scholarship fund received a gift of $ 145,000. the money is invested in stocks, bonds, and cds. cds pay 6% interest, bonds pay 3.5% interest, and stocks pay 11.5% simple interest. edcc invests $ 75,000 more in bonds than in cds. if the annual income from the investments is $9,325.00 , how much was invested in each vehicle?
we find C = $35,000, which represents the amount invested in CDs. Therefore, the amount invested in bonds is $110,000 (C + $75,000), and there was no investment in stocks.
$35,000 was invested in CDs, $110,000 was invested in bonds, and $0 was invested in stocks. Let's denote the amount invested in CDs as C. According to the given information, the interest rate for CDs is 6%. Therefore, the annual income from CDs can be calculated as 0.06C.The amount invested in bonds is $75,000 more than the amount invested in CDs. So, the amount invested in bonds can be represented as C + $75,000. The interest rate for bonds is 3.5%, resulting in an annual income of 0.035(C + $75,000).Lastly, the amount invested in stocks is not mentioned, but we can deduce that it is $0 since the total investment is specified as $145,000, and the remaining amount after accounting for CDs and bonds is $0.Given that the annual income from the investments is $9,325, we can set up the equation:0.06C + 0.035(C + $75,000) = $9,325
Solving this equation, we find C = $35,000, which represents the amount invested in CDs. Therefore, the amount invested in bonds is $110,000 (C + $75,000), and there was no investment in stocks.
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A bond is convertible into common stock for $50. If the company announces a 50% stock dividend, what is the new conversion price? a. $18.18. b. $22.22. c. $33.33. d. $45.45
The new conversion price of the bond after a 50% stock dividend is (C) $33.33, calculated by dividing the original conversion price of $50 by the new number of shares resulting from the dividend.
Explanation: The conversion price of a bond refers to the price at which the bond can be converted into common stock. To calculate the new conversion price after a stock dividend, we need to consider the adjustment in the number of shares and the original conversion price.
In this case, the bond is convertible into common stock for $50. A 50% stock dividend means that for every one share held, an additional 0.5 shares will be issued. This results in a total of 1.5 shares for each original share. To determine the new conversion price, we divide the original conversion price by the new number of shares:
New conversion price = $50 / 1.5 = $33.33.
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A fundamental problem examined by agency theory is how it is possible to align group of answer choices:
a) The interests of agents with the interests of principals.
b) The interests of principals with the interests of competitors.
c) The interests of agents with the interests of competitors.
d) The interests of shareholders with the interests of customers.
A fundamental problem examined by this theory is how to align- A. the interests of agents with the interests of principals.
What is the reason?Agency theory is concerned with the relationship between principals (e.g., shareholders) and agents (e.g., managers) who act on behalf of principals but may have their own interests.
This can be achieved through various mechanisms, such as incentives, monitoring, and communication. It is not about aligning the interests of principals with competitors or agents with competitors, as this would be unethical and potentially harmful to the organization. Ultimately, the goal is to ensure that the interests of shareholders are aligned with the interests of customers, as this leads to long-term success and sustainability.
Hence, option a. is correct.
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an advertising campaign in the usa by godiva that will cost $5 million dollars is expected to result in additional sales of 200 000 boxes of chocolate for a net profit of $20 per box of chocolates after subtracting all other costs except advertising costs. therefore it is profitable for godiva to a. advertise b. not advertise c. we do not know from the above information d. none of the above
Based on the given information, we can determine whether it is profitable for Godiva to advertise or not.
The advertising campaign by Godiva is expected to cost $5 million. If we assume that the additional sales of 200,000 boxes of chocolate will occur solely as a result of the advertising campaign, we can calculate the total revenue generated from these additional sales.
Total Revenue = Additional Sales * Net Profit per Box
Total Revenue = 200,000 * $20
Total Revenue = $4 million
Since the total revenue generated from the additional sales is $4 million, which is less than the cost of the advertising campaign ($5 million), it appears that the advertising campaign would result in a net loss for Godiva. Therefore, it would not be profitable for Godiva to advertise in this scenario. The correct answer is b. not advertise.
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a company is considering investing in a new machine that requires an initial investment of $47,947. the machine will generate annual net cash flows of $21,000 for the next three years. what is the internal rate of return of this machine? (pv of $1, fv of $1, pva of $1, and fva of $1) (use appropriate factor(s) from the tables provided.)
The internal rate of return (IRR) of the new machine investment is approximately 16%.
To calculate the IRR, we need to find the discount rate that makes the net present value (NPV) of the investment equal to zero. The initial investment of $47,947 is negative, and the net cash flows of $21,000 per year for three years are positive. Using the present value of an annuity (PVA) table, we can calculate that the present value of these cash flows at a discount rate of 16% is approximately $51,560. Subtracting the initial investment, we get an NPV of approximately $3,613. To find the exact IRR, we can interpolate between the discount rates that give an NPV of just above and just below zero. Based on this calculation, the IRR of the new machine investment is approximately 16%.
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a. Click cell E2 on the Inventory sheet. The weekly rental rate is 96% of the daily rate for a 4% discount times 5 for a five-day week. b. Enter a formula in cell E2 to multiply the daily rate by 96% times five days and copy it down the column. c. Select cell F2. The monthly rate is 90% of the daily rate for a 10% discount times 30 for a standard 30 -day month. d. Build the formula in cell F2 and copy it down the column.
a. In cell E2 on the Inventory sheet, the weekly rental rate can be calculated by multiplying the daily rate by 96% for a 4% discount, and then multiplying it by 5 for a five-day week.
b. To calculate the weekly rental rate, enter the formula "=DailyRate0.965" in cell E2 and copy it down the column to apply the formula to the other cells.
c. Moving to cell F2, the monthly rate can be determined by multiplying the daily rate by 90% for a 10% discount and then multiplying it by 30 for a standard 30-day month.
d. To calculate the monthly rate, construct the formula in cell F2 as "=DailyRate0.930" and copy it down the column to extend the formula to the other cells.
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Which of the following does not belong in the Financial section of the CAFR?
A. GFOA Certificate
B. Combining Statements and Schedules
C. Required Supplemental Information
D. Independent Auditors' Opinion
The item that does not belong in the Financial section of the CAFR is the GFOA Certificate.
The Comprehensive Annual Financial Report (CAFR) is a detailed financial statement that provides an overview of a government entity's financial activities. It typically consists of several sections that present different aspects of the entity's financial information.
In the Financial section of the CAFR, items related to the entity's financial statements and accompanying information are included. These items generally include combining statements and schedules, required supplemental information, and the independent auditors' opinion.
The GFOA Certificate, on the other hand, does not typically belong in the Financial section of the CAFR. The Government Finance Officers Association (GFOA) is an organization that promotes best practices in financial management for government entities. They often provide recognition and certification to entities that meet certain financial reporting standards.
While the GFOA Certificate is related to financial management and reporting, it is not directly part of the financial statements or financial information presented in the CAFR's Financial section. Instead, the GFOA Certificate is typically included as a separate recognition or acknowledgement within the CAFR, outside of the Financial section.
Therefore, among the options provided, the GFOA Certificate is the item that does not belong in the Financial section of the CAFR.
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What do large, above-ground, non-pressurized, horizontal storage tanks typically hold?
A: Silica or aluminum grains
B: Liquid foodstuffs, such as milk or juice
C: Corn or wheat
D: Flammable or combustible liquids
Large, above-ground, non-pressurized, horizontal storage tanks are typically used for the storage of liquids or granular materials. These tanks are often made of steel and are designed to hold large volumes of materials. The type of material that is stored in these tanks depends on the specific industry or application. The correct option is A.
They are more commonly used for the storage of flammable or combustible liquids, such as gasoline, diesel fuel, or chemicals. These materials are often stored in these tanks in order to provide a safe and secure storage solution that meets the regulations and requirements set forth by the industry and government agencies.
In addition to the storage of liquids, these tanks may also be used for the storage of granular materials, such as silica or aluminum grains. This type of material may be used in a variety of applications, including construction, manufacturing, and agriculture. Corn or wheat may also be stored in these tanks, particularly in the agricultural industry.
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Hammerson Ltd is an all-equity financed company with 10 000 outstanding ordinary shares, each valued at the market price of R25. The company has decided to modify its capital structure to capture the tax benefits of debt. The plan is to have a target debt ratio of 30%. The company pays 60%of its earnings as dividends and is subject to a 28% tax rate. The expected sales are R530 000, fixed costs are estimated at R250 000 and variable cost are estimated at 30% of sales.
Details of the pursued capital structures are as follow:
Capital structure A at 30% debt ratio
Hammerson Ltd will acquire debt at a before-tax cost of debt of 11.75%.
Which capital structure would you advise the company to choose if its objective is to maximise earnings per share (EPS)?
"EPS for both capital structures is the same: R16.768. "
To determine which capital structure would maximize earnings per share (EPS) for Hammerson Ltd, we need to calculate the EPS for each capital structure option and compare them.
Let's calculate the EPS for each capital structure option:
1. Capital Structure A (30% debt ratio):
Number of outstanding shares: 10,000Market price per share: R25Total equity value: 10,000 shares * R25 = R250,000Target debt ratio: 30%Target debt amount: 30% * (R530,000 - R250,000) = R84,000Equity amount: R250,000 - R84,000 = R166,000Dividends paid: 60% * (R530,000 - R250,000) = R156,000 (before tax)Tax rate: 28%After-tax dividends: R156,000 * (1 - 0.28) = R112,320Earnings available to common shareholders: R530,000 - R250,000 - R112,320 = R167,680EPS: R167,680 / 10,000 = R16.7682. All-Equity Capital Structure:
Number of outstanding shares: 10,000Market price per share: R25Total equity value: 10,000 shares * R25 = R250,000Dividends paid: 60% * (R530,000 - R250,000) = R156,000 (before tax)Tax rate: 28%After-tax dividends: R156,000 * (1 - 0.28) = R112,320Earnings available to common shareholders: R530,000 - R250,000 - R112,320 = R167,680EPS: R167,680 / 10,000 = R16.768As we can see, the EPS for both capital structures is the same: R16.768. Therefore, from the perspective of maximizing EPS, there is no difference between the two capital structures.
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The purchase of treasury stock is reported on the statement of cash flows as a a. negative cash flow in the financing activities section. b. negative cash flow in the investing activities section. c. positive cash flow in the financing activities section. d. positive cash flow in the investing activities section.
a.) The purchase of treasury stock is reported on the statement of cash flows as negative cash flow in the financing activities section.
Treasury stock represents shares of a company's own stock that have been repurchased and are held by the company. The purchase of treasury stock is considered a financing activity because it involves the use of cash to buy back shares from the market. In the statement of cash flows, cash flows from financing activities include activities that affect the company's capital structure, such as issuing or repurchasing stock, paying dividends, and obtaining or repaying debt. Since the purchase of treasury stock involves the repurchase of shares, it is recorded as a negative cash flow (outflow) in the financing activities section of the statement of cash flows.
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the business intelligence environment includes all of the following except: group of answer choices data from the business environment. delivery platform. bi infrastructure. business analytics. cloud-based storage.
The business intelligence environment includes all of the following except delivery platform. However, the delivery platform is not a distinct component of the business intelligence environment. While the delivery of insights and reports is an essential aspect of business intelligence, it is typically facilitated through the BI infrastructure and analytics tools, rather than being considered a separate component.
The business intelligence environment comprises various components and processes that facilitate the collection, analysis, and utilization of data for decision-making. These components typically include data from the business environment, BI infrastructure (which includes tools and technologies for data storage, processing, and retrieval), business analytics (the process of analyzing data to extract insights), and cloud-based storage (a method of storing and accessing data in remote servers over the internet).
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One year ago, you purchased 400 shares of stock at a cost of $8,650. The stock paid an annualdividend of $1.10 per share. Today, you sold those shares for $23.90 each. What is the capital gainsyield on this investment?A) 9.96 percentB) 10.52 percentC) 12.49 percentD) 13.33 percentE) 14.75 percent
The capital gains yield on the investment is 10.52 percent. To calculate the capital gains yield, we need to determine the change in value of the investment and divide it by the initial cost.
The initial cost of purchasing 400 shares at $8,650 is $8,650. The total cost of the investment is the product of the number of shares and the cost per share, which is 400 * $8,650 = $3,460,000. The final value of the investment is the product of the number of shares sold and the selling price per share, which is 400 * $23.90 = $9,560.
To calculate the capital gains, we subtract the initial cost from the final value: $9,560 - $8,650 = $910. The capital gains yield is then calculated by dividing the capital gains by the initial cost and multiplying by 100 to express it as a percentage: Capital gains yield = ($910 / $8,650) * 100 = 10.52 percent.
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The comparison of a company's financial condition and performance to a base amount is known as:
a. financial reporting.
b. horizontal ratios.
c. investment analysis.
d. risk analysis.
e. vertical analysis.
The comparison of a company's financial condition and performance to a base amount is known as vertical analysis. This is a type of financial analysis that helps investors and stakeholders understand the relative proportions of different financial statement items within a company's financial statements.
For example, vertical analysis can be used to compare a company's revenue to its cost of goods sold, or its total assets to its total liabilities. Vertical analysis can be particularly useful for identifying trends or changes in a company's financial performance over time. This type of analysis is often used in conjunction with other financial analysis tools, such as horizontal analysis, investment analysis, and risk analysis. Vertical analysis is a financial analysis tool that compares a company's financial condition and performance to a base amount. The base amount is typically a percentage of a financial statement item, such as revenue or total assets. By comparing different financial statement items to the same base amount, investors and stakeholders can better understand the relative proportions of these items within the company's financial statements.
For example, vertical analysis can be used to compare a company's revenue to its cost of goods sold. This helps investors and stakeholders understand the company's gross profit margin, which is a measure of how much money the company is making on each dollar of sales. By looking at the proportion of revenue to cost of goods sold over time, investors can identify trends in the company's profitability and assess the company's ability to manage costs and generate profits. Similarly, vertical analysis can be used to compare a company's total assets to its total liabilities. This helps investors and stakeholders understand the company's financial leverage, which is a measure of how much debt the company has relative to its equity. By looking at the proportion of assets to liabilities over time, investors can identify trends in the company's financial leverage and assess the company's ability to manage debt and maintain a strong balance sheet.
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In 1984, sales of prerecorded cassettes surpassed vinyl LPs for the first time aided in large part by the popularity of the:
a) Walkman
b) iPod
c) Discman
d) Gramophone
In 1984, sales of prerecorded cassettes surpassed vinyl LPs for the first time aided in large part by the popularity of the Walkman.
The Walkman was an innovative portable cassette player that was introduced by Sony in 1979, and it quickly became a cultural phenomenon.The Walkman made music portable and personalized for the first time, allowing people to listen to music on the go without being tethered to a bulky stereo system. It was small enough to fit in a pocket or purse and featured a headphone jack that allowed people to listen to their music without disturbing others.In addition to its portability, the Walkman's popularity was also fueled by the rise of the cassette tape. Cassettes were smaller and more durable than vinyl records, making them easier to transport and less susceptible to damage. They also allowed for longer playing times, which meant that people could enjoy entire albums without having to flip over a record or change a disc.The Walkman remained popular throughout the 1980s and 1990s, and its influence can still be felt today in the form of digital music players like the iPod. While the technology may have changed, the desire for portable and personalized music remains the same.
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