Answer:
the nominal rate is 19.65%
Explanation:
The computation of the nominal rate earned is shown below;
The Price of 17 shirts today is $425
Now the price for 20 shirts today is
= $425 × 20 ÷ 17
= $500
Now the real rate needed next year is
= $500 ÷ $425 - 1
= 17.65%
Now the nominal rate needed is
= real rate + inflation rate
= 17.65% + 2%
= 19.65%
Hence, the nominal rate is 19.65%
A corporation sold 16,500 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include: Multiple Choice A debit to Paid-in Capital in Excess of Par Value, Common Stock for $214,500. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $379,500. A debit to Cash for $165,000. A credit to Common Stock for $165,000. A credit to Common Stock for $214,500.
Answer:
A credit to Common Stock for $165,000
Explanation:
The journal entry is shown below
Cash (16,500 shares × $13) $214,500
To Common stock (16,500 shares × $10) $165,000
To Additional paid in capital in excess of par value (16,500 shares × $3)
$49,500
(being the issuance of the common stock is recorded)
Here the cash is debited as it increased the assets and credited the common stock and additional paid in capital as it increased the equity
Therefore the A credit to Common Stock for $165,000 is the correct option
Suppose that bicycles and skateboards are substitute goods. All else equal, if the price of bicycles decreases, there will be:_____.a. an upward movement upward along the bicycle demand curve.b. a downward movement along the skateboard demand curve.c. a decrease in the demand curve for skateboards.d. an increase in the demand curve for bicycles.
Answer:
C
Explanation:
Substitute goods are goods that can be used in place of each other by consumers.
If the price of bicycles declines, there would be a movement down along the demand curve for bicycles.
The decrease in the price of bicycles leads to a shift in the demand curve for skateboards and not a movement along the demand curve for bicycles.
If the price of bicycles decreases, consumers would increase their demand for bicycles and demand less of skateboards. This would lead to a leftward shift of the demand curve for skateboards or a decrease in the demand curve for skateboards
Here I Sit Sofas has 7,500 shares of common stock outstanding at a price of $98 per share. There are 760 bonds that mature in 34 years with a coupon rate of 7.2 percent paid semiannually. The bonds have a par value of $2,000 each and sell at 110.5 percent of par. The company also has 6,400 shares of preferred stock outstanding at a price of $51 per share. What is the capital structure weight of the debt
Answer:
61.28%
Explanation:
Equity market value = Number of shares*price/share
Equity market value = 7,500 * $98
Equity market value = $735,000
Current debt value = Number of bonds*price/bond
Current debt value = 760*(1.105*2000)
Current debt value = $1,679,600
Preferred stock value = Number of shares*price/share
Preferred stock value = 6,400 * $51
Preferred stock value = $326,400
Total capital = Common equity value + Debt value + Preferred stock value
Total capital = $735,000 + $1,679,600 + $326,400
Total capital = $2,741,000
Weight of debt = Debt value / Total capital
Weight of debt = $1,679,600 / $2,741,000
Weight of debt = 0.6127690623859905
Weight of debt = 61.28%
You have taken out a $225,000, 3/1 ARM. The initial rate of 5.8% (annual) is locked in for three years and is expected to increase to 6.5% at the end of the lock period. Calculate the initial payment on the loan. (Note: the term on this 3/1 ARM is 30 years.)
Answer:
$1,320.19
Explanation:
Loan amount = $225,000
Rate = 5.80%
Years = 30
PMT = ?
Initial payment = PMT(Rate/12, Years*12, -225,000)
Initial payment = PMT(5.80%/12, 360, -225,000)
Initial payment = 1320.185230439806
Initial payment = $1,320.19
Therefore, the initial payment on the loan is $1,320.19
Select the correct answer.
Which type of temporary group is formed to address a specific situation in an organization?
A. interest group
B. secondary group
C. self-managed group
D. task group
E. command group
Answer:
D. Task group
Explanation:
Task groups form to accomplish a specific task.
Answer:
D task group
Explanation:
A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day?
a. yes, with exactly 100 minutes to spare
b. no, but four workstations would be sufficient
c. no, it will fall short even with a perfectly balanced line
d. yes, but the line's efficiency is very low
e. cannot be determined from the information given
Answer:
C. no, it will fall short even with a perfectly balanced line
Explanation:
In this question, if a factory has a work time that is 400 minutes per day. The required units per day is a 209 units. With 5 available workstations.
Then we would calculate the time cycle as
400 x 5/100
= 400x0.05
= 20minutes/unit
So In conclusion, if the time required is more than 20 minutes, that is 21 minutes, it is going to fall short with a perfectly balanced line. Hence option c.
The correct option is c.
c. no, it will fall short even with a perfectly balanced line
The following information should be considered:
An assembly line having with five workstations that can't make 100 units per day.Because it will fall short even with a perfectly balanced line
Therefore, we can conclude that the correct option is c.
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A company engaging in social listening notices a sharp increase in volume of social media mentions of the company accompanied by a sharp decrease in sentiment about the company. It is likely that:____.
a. the company's social media activities are having the desired effect.
b. there is an impending brand crisis.
c. the two changes are unrelated.d. the software that encodes sentiment is glitching.
Answer:
c. the two changes are unrelated.
Explanation:
In the case when the company is engaged in the social listening so it would be noticed that there is a rise in the social media volume that reduced the sentiment of the company
So the above situation represents that there are two changes i.e. the one is rise and the other are reduce but the both are non-related
hence, the correct option is c.
And, the rest of the options are wrong
Phyllis makes a deal with her niece Stephanie that if Stephanie gave up gambling for two years, Phyllis would pay Stephanie $5,000. Stephanie gave up gambling for the required two years. Does this deal have valid consideration
Answer:
Yes .
Explanation:
I think so because Stphanie did what Phyllis asked , now she should get her well deserved $5,000 .
The seller agrees to pay the listing real estate agent a commission of 5%. The property is listed at $400,000, the buyer offers and seller agrees on price of $380,000 and it closes at that price. The buyer obtains a loan of $300,000. The property is tax assessed at $350,000. The commission most likely paid to the real estate agent is:__________
A. No commission is owed because it did not sell at the list price
B. $17,500
C. $20,000
D. $19,000
Answer:
C. $20,000
Explanation:
Note that we are talking about the listing commission. Listing commission will be calculated on the listed price.
So, the listed price will be = 400,000 * 5%
= $20,000
Thus, the commission most likely paid to the real estate agent is $20,000
In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows.
Budget Actual
Indirect materials $16,000 $14,300
Indirect labor 20,000 20,600
Utilities 10,000 10,850
Supervision 5,000 5,000
All costs are controllable by the department manager.
Prepare a responsibility report for April for the cost center.
Answer:
Hannon Company
Assembly Department
Responsibility Report
For the month of April 2020:
Budget Actual Variance
Indirect materials $16,000 $14,300 $1,700 F
Indirect labor 20,000 20,600 600 U
Utilities 10,000 10,850 850 U
Supervision 5,000 5,000 0 No effect
Total $51,000 $50,750 $250 F
Explanation:
a) Data and Calculations:
Budget Actual Variance
Indirect materials $16,000 $14,300 $1,700 F
Indirect labor 20,000 20,600 600 U
Utilities 10,000 10,850 850 U
Supervision 5,000 5,000 0 No effect
Total $51,000 $50,750 $250 F
b) The Assembly Department's responsibility report is a the budget analysis that compares its actual and budgeted amounts of controllable costs for the month of April, 2020. The purpose of this report is to assign responsibility, improve performance, and hold a department or center responsible for its activities.
A one year call option has a strike price of 50, expires in 6 months, and has a price of $4.74. If the risk free rate is 3%, and the current stock price is $45, what should the corresponding put be worth?
A) $12.74.
B) $10.48.
C) $5.00.
D) $9.00.
E) $8.30.
Answer:
$9.90
Explanation:
Using Put Call Parity Equation:
C + X/(1 + r)^t + S + P
Call price + PV of exercise price = Spot price + Put price
4.74 + 50/(1.03)^0.30 = 45 + P
4.74 + 50/1.00891 = 45 + P
4.74 + 49.5584 = 45 + P
P = 4.74 + 49.5584 - 45
P = 9.2984
P = $9.90
Thus, the Price of Put Option with $50 exercise price = $9.90
Rory Company has a machine with a book value of $101,000 and a remaining five-year useful life. A new machine is available at a cost of $116,000, and Rory can also receive $83,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $17,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.)
Answer:
Incremental Income $52,000
Explanation:
The computation of the incremental income is shown below:
Reduction in variable manufacturing costs ($17,000 × 5) $85,000
Cost of the new machine -$116.000
Cash received from trade in old machine $83,000
Incremental Income $52,000
The machine should replacement as there is an increase in income by $52,000
Susan won $2,000 at the blackjack tables on her birthday. Her winnings are an example of:________.
a. an in-kind transfer.
b. transitory income.
c. life-cycle income.
d. permanent income.
Answer:
B. Transitory income.
Explanation:
As the name sounds, it is seen to be a form of income that is said to be anticipated. This form of income does not play key roles in the standard of living of the said person. This income is clearly a short-lived kind as it cannot hold a person or family towards a certified period of time. Also in many cases, economists are seen to believe that people base their consumption on their permanent income, therefore, inequality in consumption is one gauge of inequality of permanent income; making consumption less effectective, as transitory changes in income, they are more equally is current income.
In addition to candidates who have the technical skills required of the position, what else do employers look for
Answer:
a personality that fits with their work environment
Explanation:
The second most important trait that employers look for is a personality that fits with their work environment. In almost all jobs the candidate will be working with a varied number of other employees in the company. The employers want to make sure that the candidate's personality matches the personality of the other employees so that they make sure that the candidate will be a good fit in the company and get along with the rest of the employees. This will almost guarantee that the candidate will work as efficiently as possible.
A coupon on a 2-liter bottle of Pepsi, offering $1.00 off on a bag of potato chips, is which type of coupon:_____
a. cross-ruffing
b. scanner-delivered
c. response-offer
d. instant-redemption
Answer: a. cross-ruffing
Explanation:
Cross-ruffing coupons are coupons that are offered to a person buying a good on another good to encourage them to buy that other good as well. These are usually offered on goods produced by the same company or companies that have a relationship with each other.
They are a brilliant marketing ploy to result in one relating goods to another to boost sales. Offering a coupon on a bag of potato chips upon buying a bottle of Pepsi is there a cross-ruff coupon.
On January 1, 2018, Brazos Company purchased equipment and signed a six-year mortgage note for $97,000 at 15%. The note will be paid in equal annual installments of $25,631, beginning January 1, 2019. On January 1, 2019, the journal entry to record the first installment payment will include a ________. (Round your answer to the nearest whole number.) A. credit to Mortgage Payable for $97,000
Answer:
the original journal entry should be:
January 1, 2018, equipment purchased
Dr Equipment 97,000
Cr Notes payable 97,000
accrued interest on December 31 2018 should be:
Dr Interest expense 14,550
Cr Interest payable 14,550
the first installment should be recorded as:
January 1, 2019, first installment paid on notes payable
Dr Interest payable 14,550
Dr Notes payable 11,081
Cr Cash 25,631
Bryant Company has a factory machine with a book value of $93,500 and a remaining useful life of 6 years. It can be sold for $30,600. A new machine is available at a cost of $534,000. This machine will have a 6-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $556,800 to $460,200. Prepare an analysis showing whether the old machine should be retained or replaced.
Answer:
Bryant Company
Analysis of old and new machines:
Old Machine New Machine
Annual depreciation costs $10,833 $89,000
Savings from variable
manufacturing costs 0 $96,600
Net savings ($10,833) $7,600
Explanation:
a) Data and Calculations:
Book value of old machine = $93,500
Remaining useful life = 6 years
Salvage value = $30,600
Depreciable amount of old machine = $62,900 ($93,500 - 30,600)
Annual Depreciation cost of old machine = $10,483 ($62,900/6)
Cost of new machine = $534,000
Useful life = 6 years
Depreciable amount of new machine = $89,000 ($534,000/6)
Reduction in variable manufacturing costs = $96,600 ($556,800 - $460,200)
Savings from new machine = $7,600
b) Conclusion: The old machine should be replaced. It costs more to retain the old machine than it costs to replace it. There will be a net gain of $7,600 from the new machine, from the reduction of the variable manufacturing costs from $556,800 to $460,200.
Grey, Inc., uses a predetermined rate to apply overhead. At the beginning of the year, Grey budgeted its overhead costs at $220,000, direct labor hours at 55,000, and machine hours at 20,000. Actual overhead costs incurred were $233,250, actual direct labor hours were 62,000, and actual machine hours were 15,000. If the PDOH rate uses machine hours as the cost driver, what is the total amount credited to the overhead account control account
Answer:
$165,000
Explanation:
Calculation for what is the total amount credited to the manufacturing overhead account for the year for Grey
First step is to calculate Predetermined overhead rate using this formula
Predetermined overhead rate = Estimated overhead costs / Estimated machine hours
Let plug in the formula
Predetermined overhead rate = $220,000 / 20,000 machine hours
Predetermined overhead rate= $11
Second step is to calculate Total amount credited to the factory overhead account for the year for Grey
Using this formula
Total amount credited to the factory overhead account for the year for Grey = Predetermined overhead rate × Actual machine hours
Let plug in the formula
Total amount credited to the factory overhead account for the year for Grey= $11 × 15,000 machine hours
Total amount credited to the factory overhead account for the year for Grey = $165,000
Therefore the Total amount credited to the factory overhead account for the year for Grey will be $165,000
Use this information to answer the question. All numbers are in millions.
Population of the nation 125
Size of the labor force 75
Number of employed workers 50
Number of unemployed workers 25
What is the unemployment rate for this nation?
a. 5 percent
b. 20 percent
c. 25 percent
d. 33 percen
Answer:
25 percent
Explanation:
Jasmine's Boutique has 2,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 9 percent. The interest is paid semiannually. What is the amount of the annual interest tax shield if the tax rate is 34 percent?A. $58,500B. $60,750C. $60,100D. $62,250E. $61,200
Answer:
E. $61,200
Explanation:
total interest expense = 2,000 bonds x $1,000 per bond x 9% = $180,000
the interest shield is the amount of taxes saved by paying interest expense
interest shield = total interest expense x tax rate = $180,000 x 34% = $61,200
this means that the company will be able to reduce its income taxes by $61,200 because it paid interests on their bonds
The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $50 per share for months. The price of a 3-month put option with an exercise price of $50 is $4. If the risk-free interest rate is 10% per year, what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $50 if it is at the money
Answer:
$5.18
Explanation:
Calculation for call option
Using this formula
Call option=Put option + Exercise price-[Exercise price/(1+Risk-free interest rate)^Time
Let plug in the formula
Call option= 4 + 50 - [50/(1+.10)^1/4]
Call option= 4 + 50 - [50/(1.10)^1/4]
Call option= $5.18
Therefore what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $50 if it is at the money is $5.18
Eliminating double-taxation would likely:________.
a. raise saving and primarily benefit people with lower incomes.
b. raise saving but primarily benefit people with higher incomes.
c. reduce saving but primarily benefit people with lower incomes.
d. reduce saving and primarily benefit people with higher income.
Answer:
a. raise saving and primarily benefit people with lower incomes.
Explanation:
Double taxation may be defined as the tax system where the tax is levied twice on the income. It is the tax principle refers to tax income that is paid twice on same source of income. It pronounced a negative economic impact, mainly on the wages. Thus eliminating the system of double taxation would ensure more savings and it will people with lower wages or incomes.
A tax is a government group's compulsory financial charge or other types of levy imposed on a customer to finance government spending and related public expenses.
Failure to pay taxes on time, as well as avoidance or resistance to taxation, are all illegal.
The correct answer is a. raise saving and primarily benefit people with lower incomes.
Option a. raise saving and primarily benefit people with lower incomes are correct because Double taxation is a tax structure in which the same amount of money is taxed twice. It is a tax theory that applies to earnings taxed on the same source of income.
It had a detrimental economic impact, particularly on salaries. Eliminating a double tax structure would result in more savings for persons with lesser earnings or incomes.
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A project that cost $80000 with a useful life of 5 years is being considered. Straight-line depreciation is being used and salvage value is $5000. The project will generate annual revenues of $24350. The annual rate of return is:_______
a. 17%
b. 50.3%
c. 16%
d. 15%
Answer:
22%
Explanation:
Net income = Annual cash flow - Depreciation
Net income = 24350 - (80,000-5,000 / 5)
Net income = 24350 - 15,000
Net income = $9350
Average investment = Beg. value + End. Value / 2
Average investment = 80,000 + 5,000 / 2
Average investment = $42,500
Annual rate of return = Net income / Average investment * 100
Annual rate of return = $9350 / $42,500 * 100
Annual rate of return = 0.22 * 100
Annual rate of return = 22%
Answer:Annual Rate of Return =22%
The correct option is not given
Explanation:
Annual Rate of Return = Net Income / Average Investment x 100
Net Income= Annual Cash flow - Depreciation
Straight-line depreciation =Cost - salvage value / useful years
= 80,000 - 5,000 / 5
75,000/5= $15,000
Net Income=$24,350 - $15,000
=$9,350
Average Investment= Initial investment + salvage value / 2
$80,000 + 5000 / 2
= $85,000/ 2
$42,500
Annual Rate of Return =$9, 350/ $42,500 x 100
= 0.22 x100
=22%
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open the brain and release its contents
To determine the dutiable status of goods, it is necessary to know their classification, country of origin, and details pertaining to:___________.a. Perishable/non-perishable status.b. Partially or fully manufactured goods.c. Raw materials to be used in production.d. Value.
Answer:
d. Value
Explanation:
The dutiable goods are subjected to duties. Dutiable goods may be defined as the goods and products on which tax have to be paid when they brought to a country from other countries.
In order to known the dutiable status of any goods, it is very important to know the classification of the good, the place of their origin and all the details relating to its value.
On July 1, 2017, Amos Corporation granted nontransferable, nonqualified stock options to certain key employees as additional compensation. The options permit the purchase of 20,000 shares of Amos’s $1 par common stock at a price of $32 per share. On the grant date, the stock’s market value was $32 per share. The options were exercisable beginning July 1, 2021, and expire on July 1, 2025. On February 3, 2023, when the stock was selling for $53 per share, all options were exercised. Amos's tax rate is 35%. Amos has a December 31 year end for financial reporting purposes.
Required:
1. How much compensation expense should Amos record in 2017 and 2018 if the options are worth $15 per share on the grant date?
2. Compute the tax benefit that Amos will receive in 2023 when the employees exercise the options.
Answer:
1. Total compensation expenses = 20,000 * $15 = $300,000
Vesting period (From 2017-2021) = 4 years
Annual compensation expenses = Total compensation expenses / 4
Annual compensation expenses = $300,000 / 4 years
Annual compensation expenses = $75,000
a. Compensation expenses 2017 = $75,000/2
Compensation expenses 2017 = $37,500
b. Compensation expenses 2018 = $75,000
2. The spread between the grant price and exercise price is allowed as base of tax benefit.
Tax benefit = [20,000 * (53-32)] * 35%
Tax benefit = [20,000 * 21] * 35%
Tax benefit = $420,000 * 35%
Tax benefit = $147,000
Amos incurred a compensation expense of $37,500 in 2017 and $75,000 in 2018. Amos will gain $147,000 in tax benefits in 2023.
How do you compute compensation expense and tax benefit?1.
[tex]\text{Total compensation expenses} = 20,000 \text{ x } $15 = $300,000\\\\\text{Vesting period (From 2017-2021)} = 4 \text{years}\\\\\text{Annual compensation expenses} = \text{Total compensation expenses} / 4\\\\\text{Annual compensation expenses} = $300,000 / 4 \text{years}\\\\\text{Annual compensation expenses} = $75,000\\\\\text{a. Compensation expenses} 2017 = $75,000/2\\\\\text{Compensation expenses} 2017 = $37,500\\\\\text{b. Compensation expenses} 2018 = $75,000\\\\[/tex]
2.
The difference between the grant price and the exercise price can be used as the basis for calculating the tax advantage.
[tex]\text{Tax benefit} = [20,000 \text{ x } (53-32)] \text{ x } 35%\text{Tax benefit} = [20,000 \text{ x } 21] \text{ x } 35%\text{Tax benefit} = $420,000 \text{ x } 0.35\text{Tax benefit} = $147,000[/tex]
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Franklin corporation issues $97,000, 8%, 5-year bonds on January 1, for $101,370. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is:________.
a. $4,317
b. $7,760
c. $3,443
d. $3,880
Answer:
c. $3,443
Explanation:
Date Account Titles Debit Credit
Jan 1 Cash 101370
Bond payable 97000
Premium on issue of bonds 4,370
(101370-97000)
Jul 1 Interest expenses (3680 - 437) 3,443
Premium on issue on bond 437
(4379/5 * 6/12)
Cash (97,000*8%*6/12) 3,800
The aggregate planning approach that lends itself to examining many solutions is:_________
A. the transportation method of linear programming.
B. graphical techniques.
C. the linear decision rule.
D. Bowman's management coefficients model.
Answer:
B. graphical techniques.
Explanation:
The graphical methods would be applied in the case when the facts are assessed in a quantitive way. Also it is a main part for the investigation that contains exploratory information
Therefore in the given situation, for examining many solutions under the aggregate planning approach the graphical techniques would be considered
hence, the correct option is B
Sandra goes into her favorite shoe store where they are holding a special sales promotion. The salesperson explains to Sandra that if she purchases one pair of shoes, she would receive a free pair of socks. Which type of sales
promotion is this?
NEED ASAPPP ITS AN EXAM..
Answer:
Premium
Explanation:
A premium type of sales promotion is this. Thus, option B is correct.
Who is a salesperson?
The salesman is in charge of welcoming clients, guiding them toward the merchandise they need, and counting up transactions. You need to be a great communicator if you want to succeed in sales. A successful salesman achieves sales goals while being courteous and helpful to consumers.
The salesman is in charge of welcoming clients, guiding them toward the merchandise they need, and counting up transactions. You need to be a great communicator if you want to succeed in sales. A successful salesman achieves sales goals while being courteous and helpful to consumers.
With the confirmation of purchase, you can receive a reward for nothing or for minimal shipping as well as a handling fee. Therefore, option B is the correct option.
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Greg contracts to build a storage shed for Haney. Haney pays Greg in advance, but Greg completes only half the work. Haney pays Ipswich $500 to finish the shed. If Haney sues Greg, what would be the measure of recovery?
Answer:
Haney is going to be compensated for expected benefits. He has to be put in the situation he would have been if the job was fully done by Greg. So since payment amount was 500, the compensatory damage should be about the same amount.
Explanation:
From this question, haney paid Greg in advance for a job that Greg did not complete. And he Haney ended up getting someone else to do the job.
Now The damages are going to be compensation to Haney as Greg did not complete the job. The amount he is going to get, is the cost of the work, which would be $500.
Greg breached the contract with Haney by not finishing the job, but yet taking Haney's payment.
Haney is going to be compensated for expected benefits. He has to be put in the situation he would have been if the job was fully done by Greg. So since payment amount was 500, the compensatory damage should be about the same amount.