Answer:
c. risk
Explanation:
The discount rate usually stands for the opportunity cost of investing elsewhere or the cost of sourcing finance. therefore, it includes a risk component.
The letters in acronymic abbreviations must be
Answer:
In a correct order.
Explanation:
Given the following data:
Net sales $430,000
Cost of goods sold $80,000
Gross profit $350,000
Operating expenses $50,000
Net income $300,000
In vertical analysis, net income would be expressed as: (Round your final answer to the nearest whole percent)
A. 12%.
B. 81%.
C. 70%.
D. 19%
Answer:
C. 70%.
Explanation:
Calculation for the net income
Using this formula
Net income=Net income/Net Sales
Let plug in the formula
Net income= $300,000/ $430,000
Net income=70%
Therefore the net income would be expressed as 70%
Suppose, that after a successful career, a worker retired precisely as planned with precisely the amount saved that they intended. Upon retirement, they reduced their consumption and spent much less, living a much more simple life. Is this behavior consistent with the permanent income hypothesis?
Answer: Yes it is
Explanation:
The Permanent Income Hypothesis posits that human expenditure in the short term is based on the amount of income they expect to get as income over the long term.
If a person for instance, knows that they will receive a pay cut at the end of the year, they will probably spend less today to survive the pay cut.
Same goes for the worker in this scenario. They know that the amount they saved is all they have now and into the future so they are adjusting their expenses to ensure they survive on that saving.
If the abnormal return for a stock during the first week is +5 percent and +3 percent during the second week, what is the abnormal return for the two-week period?
A) 5 percent
B) 3 percent
C) 8.15 percent
D) 8 percent
Answer:
C) 8.15 percent
Explanation:
The computation of the abnormal return for the two week period is as follows:
Abnormal return is
= (1 + first week abnormal return) × (1 + second week abnormal return) - 1
= (1 + 5%) × (1 + 3%) - 1
= 1.0815% - 1
= 8.15%
Hence, the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
You have been offered a 10-year bond issued by Tiger Inc., at a price of $950.00. The bond has a coupon rate of 8% and pays the coupon semiannually. Similar bonds in the market offers a yield of 9% today. Should you buy the bonds at the offered price
Answer:
since the market price is lower than the offered price, you should reject this offer
Explanation:
bond's market value
PV of face value = $1,000 / (1 + 4.5%)²⁰ = $414.64
PV of coupon payments = $40 x 13.00794 (PV annuity factor, 20 periods, 4.5%) = $520.32
market price = $934.96
since the market price is lower than the offered price, you should reject this offer
Swift Co. produces footballs. It incurred the following costs this year:
Direct materials $35,000
Direct labor 31,000
Fixed manufacturing overhead 22,000
Variable manufacturing overhead 38,000
Fixed selling and administrative expenses 23,000
Variable selling and administrative expenses 14,000
What are the total product costs for the company under variable costing?
Total product costs under variable costing $ _
Answer:
Total variable cost= $104,000
Explanation:
Giving the following information:
Direct materials $35,000
Direct labor 31,000
Variable manufacturing overhead 38,000
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Total variable cost= 35,000 + 31,000 + 38,000
Total variable cost= $104,000
When reflecting upon the newer generation, each older generation says the same thing:
Answer:
live long boomers
Explanation:
You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was __________ if the value of the securities is now 2,440 pounds and the pound is worth $1.61.
a. 16.7%.
b. 20.0%.
c. 12.5%.
d. n/a.
Answer:
d. n/a
Explanation:
Calculation for Your total return based on U.S. dollars
Total return=(2,440 pounds*$1.61)- (2,340 pounds*$1.52)/ (2,340 pounds*$1.52)
Total return=$3,928.4-$3,556.8/$3,556.8
Total return=$371.60/$3,556.8
Total return=0.1045*100
Total return=10.45%
Therefore Your total return based on U.S. dollars was 10.45%
Calculate the average stock in a department with annual sales of $1,840,000 and an annual stock turnover of 5.4.
Answer:
$366,667
Explanation:
Average stock can be regarded as stock at the beginning of the period as well as stock towards ending of it
Given:
annual sales =$1,840,000
annual stock turnover =5.4.
average stock can be calculated as
average stock =annual sales/
annual stock turnover
= 1,840,000/ 4.5
= $366,667
Hence the average stock in a department is $366,667
Green Mountain Producers Inc. is an oil drilling company. the company paid a dividend of $3.10 last year, and, in the past, its dividend has increased steadily by about 4% a year. Green Mountain just announced that its dividend will increase to $4.20 this year, and its share price rose from $38 per share to $40 per share immediately after the announcement.
Which of the following best explains why Green Mountain's stock price increased as it did?
The clientele effect
Dividend irrelevance theory
The signaling hypothesis
Which of the following statements is true?
Taxes on dividend income are paid in the year that they are received.
Taxes on dividend income s are paid when the stock is sold.
As a result, the U.S. tax code encourages many individual investors to prefer to receive _____
Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. the theory of_______ explains this phenomenon.
In some cases, analysts notice that groups of similar investors tend to flock to stocks that have dividend policies consistent with their needs. This circumstance is an illustration of:________.
the information content effect
the clientele effect
Answer:
answer to the first question:
The signaling hypothesisThis theory basically states that when a company announces higher dividends, it means that it is performing better than expected and the company's management believes that it will grow more in the future.
answer to the second question:
Taxes on dividend income are paid in the year that they are received.Dividends are taxed as ordinary income, so they will be taxed on the year that they are received.
fill in the blanks:
As a result, the U.S. tax code encourages many individual investors to prefer to receive long term capital gains.
Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. the theory of signaling explains this phenomenon.
In some cases, analysts notice that groups of similar investors tend to flock to stocks that have dividend policies consistent with their needs. This circumstance is an illustration of: the clientele effect.
Amy Farmer is getting a loan to buy a used car.The bank wants to know the trade-in value of the car she is purchasing.Which of the 5 Cs of credit is the bank examining?
A) Character
B) Capacity
C) Capital
D) Collateral
E) Conditions
Answer:
D) Collateral
Explanation:
In the given situation it is mentioned that the Amy farmer wants a loan so that Amy could purchased the car also the bank wants to know the car trade in value So here the examination done by the bank would be collateral as the loan is to be taken for buying a car
So the same is to be considered
hence, the correct option is D
And all the other options are incorrect
Knight Corp. obtained land by issuing 3,000 shares of its $10 par value common stock. The land was recently appraised at $72,000. The common stock is actively traded at $25 per share. When recording the acquisition of the land, what amounts will be recorded in the Land and Common Stock accounts?
Answer: See explanation
Explanation:
From the question, we are informed that Knight Corp. obtained land by issuing 3,000 shares of its $10 par value common stock and that the land was recently appraised at $72,000 while the common stock is actively traded at $25 per share.
When recording the acquisition of the land, what amounts will be recorded in the Land and Common Stock accounts goes thus:
Debit: Land 3000 × $25 = $75000
Credit: Common stock = 3000 × $10 = $30,000
Therefore, the amount that will be recorded in the Land is $75000 and Common Stock accounts is $30000
Which activity does the IRS allow nonprofit organizations to engage in?
advertising tax deductions for donations
compensating business owners based on profits
selling pharmaceuticals if it is a healthcare organization
increasing the value of shareholder’s investments
Will give brainliest to correct answer!
Answer: advertising tax deductions for donations
Explanation:
The activity does the IRS allow nonprofit organizations to engage in is
advertising tax deductions for donations.
What is IRS?It stands for Internal revenue service that administered the federal tax laws. In this, it contains the processing of tax return, tax payer service, and the enforcement.
So based on this, we can say that The activity does the IRS allow nonprofit organizations to engage in is advertising tax deductions for donations.
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For a pure competition firm if price is less than the minimum of the __________, output at 0 will result in less loss than producing at any other level.
Answer:
need more information
Explanation:
For a pure competition firm is charging a price less than the minimum average variable cost at zero output , will result in a loss than producing at any other level.
What is a pure competition firm?A theoretical market structure is referred to as pure competition. There are numerous buyers and sellers, and prices are determined by supply and demand. Companies make only enough money to stay in business. If they made too much money, other companies would enter the market and drive down profits.
If a profit-maximizing firm produces a positive output in the short run, then the market price must be greater than or equal to the Average variable cost (AVC) at that output level. Hence when price is less than minimum AVC, the firm produces zero output.
Therefore the market price is less than average variable cost for zero output for pure competition firm.
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Xtron has few rules and procedures and prides itself on empowering lower-level employees to be nimble and responsive to its customers' rapidly changing needs. Xtron would be best described as a(n) ______ organization.
Answer:
Organic
Explanation:
From the question, we are informed about Xtron who has few rules and procedures and prides itself on empowering lower-level employees to be nimble and responsive to its customers' rapidly changing needs. In this case Xtron would be best described as a organic organization.
Organic organizations, which was set up by Tom Burns and G.M. Stalker arround 1950, organic organization can be regarded as organization that is can be embrace flexibility and have the potential to adapt well to changes, they also have
value external knowledge.
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $17,900 for March and $50,600 for April. What are the budgeted cash receipts from sales on account for April
Answer:
$26,075
Explanation:
Follow the Receipt Cycle that has been stated but this time focusing on the month of April
Receipts :
Collection for April Sales ( $50,600 × 25%) = $12,650
Collection for March Sales ( $17,900 × 75%) = $13,425
Total Collection in April = $26,075
Therefore, Total cash receipts from sales on account for April are $26,075.
On June 1 of the current year, Cross Corp. issued $300,000 of 8% bonds payable at par with interest payment dates of April 1 and October 1. In its income statement for the current year ended December 31, what amount of interest expense should Cross report?
a. $14,000.
b. $6,000.
c. $12,000.
d. $8,000.
Answer: amount of interest expense Cross should report =a. $14,000.
Explanation:
interest expense = Principal( Face value) x Rate x period( Time)
Carrying value of the bond ( face value ) =$300,000
Rate= 8%
year ended on December, therefore The interest expense recorded would be for four months ( From June 1 to December 31 )
Therefore the Interest Expense = $300,000 x 8% x 7/12
= $300,000 x 0.08 x 7/12
= $168,000/12
$14,000
The amount of interest expense Cross should report at the current year end is $14,000
In an effort to create a healthcare safety net, the government requires employers to provide healthcare coverage to all employees. What impact will this increased coverage have on the supply of hospital beds in the short run?
a. It will decrease the supply
b. It will not affect the supply.
c. It will increase the supply.
Answer: It will decrease the supply
Explanation:
From the question, we are informed that in order to create a healthcare safety net, the government requires employers to provide healthcare coverage to all employees. Due to this, there will a rise in the number of hospital beds that will be required to cover for more people.
Since there is an increase in demand, there will be a reduction in supply in the short run as the increase in demand will be more than the supply of bed.
g Stock A has a beta of 1.5. Stock B has a beta of 1.2 and an expected return of 12 percent. If the risk-free rate is 2 percent and both stocks have equal reward-to-risk ratios, what is the expected return on stock A
Answer:
14.5%
Explanation:
The computation of the expected return on stock A is shown below:
Given that
The expected return of stock b = 12%
beta = 1.2
Now
risk free rate = 2% market risk premium
So as per CAPM, the expected return = risk free rate + beta × market risk premium
0.12 = 0.02 + 1.2 × market risk premium
1.2 × market risk premium = 0.10
So,
market risk premium is
= 0.10 ÷ 1.2
= 0.0833 or 8.33%
Since they have equal risk reward so the market risk premium would be same for stock A
Now
The expected return of stock A is
= 2% + (1.5 × 8.33)
= 14.5%
The Chester Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,090,000. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use? (Use FASB GAAP
a) $32,720,000
b) $29,448,000
c) $35,446,667
d) $33,538,000
Answer: d) $33,538,000
Explanation:
Use straight line depreciation and find the annual depreciation.
= (40,900,000 - 4,090,000) / 15
= $2,454,000
In 3 years, the depreciation is;
= 2,454,000 * 3
= $7,362,000
Net book value = 40,900,000 - 7,362,000
= $33,538,000
When a single broker represents both parties in a real estate transaction, a _______ agency may exist.
Answer:
Dual
Explanation:
real estate transaction,which is used to convey ownership of a particular property to the buyer whereby there is a mutual agreement on some terms. The contract may be long it in shirt time.the end process is usually reffered to as “closing,” and this is a term that explains that both parties need to fulfill all terms and conditions that is associated with the exchange.
It should be noted that When a single broker represents both parties in a real estate transaction, a dual agency may exist.
In general, the consumers who seek out Louis Vuitton branded products are more likely to be _______.
a. price-conscious.b. prestige-sensitive.c. bargain shoppers.d. cost-sensitive.e. value-conscious.
Answer:
c).prestige-sensitive
Explanation:
Prestige sensitivity can be regarded as
favourable perceptions of price which is as a result of prominence as well status of the company that produce the product. Prestige-sensitive buyers prefer to go for product with prominence and status. It should be noted that In general, the consumers who seek out Louis Vuitton branded products are more likely to be prestige-sensitive.
Question 3 of 10
When a nation's standards of financial reporting are transparent and effective:
OA. citizens tend to have greater confidence in the economy.
B. businesses are unable to foster good relationships with
customers
DC. businesses in the country tend to lose profits and resources.
OD. the country's laws can be more easily violated.
Answer:
A. citizens tend to have greater confidence in the economy.
Explanation:
When a nation's standards of financial reporting are transparent and effective, by extension, the citizens tend to have greater confidence in the economy.
This is because when the government are transparent about the financial affairs of the nation, the citizens are confident in the economy
Solo Corp. is evaluating a project with the following cash flows:
Year Cash Flow 0 $28100 1 10,300 2 13,000 3 14,900 4 12,000 5 — 8,500
The company uses an Interest rate of 8 percent on all of Its projects.
a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e.g., 32.16.)
b. Calculate the MIRR of the project using the reinvestment approach. (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a. Discounting approach MIRR %
b. Reinvestment approach MIRR %
c. Combination approach MIRR €Y.
Answer and Explanation:
The computation of MIRR under the following methods are shown below:
a. Using the Discounting Approach:
Interest Rate = 8%
The Present Value of Cash Outflows os
= -$28,100 - $8,500 ÷ 1.08^5
= -$33,884.96
Now
Let us assume the MIRR be i%
So,
0 = -$33,884.96 + $10,300 ÷ (1 + i) + $13,000 ÷ (1 + i)^2 + $14,900 ÷ (1 + i)^3 + $12,000 ÷ (1 + i)^4
Now use the financial calculator, after using it i is 17.18%
Thus, MIRR is 17.18%
b. Using the Reinvestment Approach:
Interest Rate = 8%
The Future Value of Cash Flows is
= $10,300 × 1.08^4 + $13,000 × 1.08^3 + $14,900 × 1.08^2 + $12,000 × 1.08 - $8,500
= $52,228.65
Let us assume MIRR be i%
So,
0 = -$28,100 + $52,228.65 ÷ (1 + i)^5
(1 + i)^5 = 1.85867
1 + i = 1.1320
i = 0.1320
= 13.20%
Thus, MIRR is 13.20%
c. Using the Combination Approach:
Interest Rate = 8%
Present Value of Cash Outflows is
= -$28,100 - $8,500 ÷ 1.08^5
= -$33,884.96
And,
Future Value of Cash Inflows is
= $10,300 × 1.08^4 + $13,000 × 1.08^3 + $14,900 × 1.08^2 + $12,000 × 1.08
= $60,728.65
Let us assume MIRR be i%
So,
0 = -$33,884.96 + $60,728.65 ÷ (1 + i)^5
(1 + i)^5 = 1.7922
1 + i = 1.1238
i = 0.1238
= 12.38%
Thus, MIRR is 12.38%
At contract maturity the value of a call option is ___________, where X equals the option's strike price and ST is the stock price at contract expiration.
a. max (0, ST - X)
b. min (0, ST - X)
c. max (0, X - ST)
d. min (0, X - ST)
Answer:
A. Max (0, ST - X)
Explanation:
call option which is also known as a "call", can be regarded as a contract, that exist between both buyer as well as the seller of the call option, in so that security exchange at a set price can occur. It should be noted that At contract maturity the value of a call option is Max (0, ST - X) where X equals the option's strike price and ST is the stock price at contract expiration.
An early 1970s government study ("Work in America") identified three chief sources of worker dissatisfaction. Which of the following is one of those sources?
Answer:
The right approach is "The rigidity of rules and regulations".
Explanation:
Laws, as well as regulations throughout the red tape, are also rigid as well as unyielding. Clear, simple to comprehend. Because once we speak about administrative management, there have been many disadvantages to something like the mere implementation of that kind of principle to administer any organization.Maybe that's why the aforementioned is indeed the easiest alternative.
Jamison Company had sales revenue and operating expenses of $5,000,000 and $4,200,000, respectively, for the year just ended. If invested capital amounted to $6,000,000, the firm's ROI was:_________
A. 13.33%.
B. 83.33%.
C. 120.00%.
D. 750.00%.
Answer:
A,. 13.33%.
Explanation:
Return on Investment (ROI) which gives the efficiency of a particular investment
We were given invested capital amounted as $6,000,000, and operating expenses as $5,000,000
We can calculate net income by substracing equal sales revenue from operating expenses
net income can be calculated as = ($5000000-$420000)
= $800000
ROI can be calculated as
net income/Capital investment
$800000/$6000000
=. 13.33%.
If you borrow $700 for 6 months at 8% annual simple interest, how much must you repay at the end of the 6 months
Answer:
[tex]\$728[/tex]
Explanation:
Let P denotes principal amount, R denotes rate of interest and T denotes time period.
Principal amount [tex](P)=\$700[/tex]
Rate of interest [tex](R)=8\%[/tex]
Time [tex](T)=6[/tex] months [tex]=\frac{6}{12}=\frac{1}{2}[/tex] years
Simple interest [tex]=\frac{PRT}{100}=\frac{700(8)(\frac{1}{2}) }{100} =\$28[/tex]
Amount paid at the end of 6 months = P + Simple interest [tex]=700+28=\$728[/tex]
The information that follows relates to Khan Corporation:________.
Sales margin: 7.5%
Capital turnover: 2
Invested capital: $20,000,000
On the basis of this information, the company's sales revenue is:______.
A) $40,000,000.
B) $10,000,000.
C) $1,500,000.
D) $3,000,000.
E) None of the answers is correct.
Answer:40,000,000
Explanation:
Sales margin: 7.5%
Capital turnover: 2
Invested capital: $20,000,000
The company sales revenue will be calculated thus:
Capital turnover = Sales / Invested capital
Therefore, 2 = Sales / 20,000,000
Sales = 2 × 20,000,000
Sales = 40,000,000
Therefore,the company sales revenue is 40,000,000
Kyla is a salesperson for Liberty Financial Corporation. Micky is also a Liberty salesperson. Neil is Kyla and Micky's supervisor. Owen is a Liberty customer. Liberty may be liable for sexual harassment to Kyla by
Answer:
Mickey, Neil, or Owen
Explanation: