Answer:
E. 4.42%
Explanation:
Calculation for the yield to maturity
First step is to calculate the Current price using this formula
The Current price=Par value/(1+yield to maturity/2)^(2*Time period)
$4,550.90=$10,000/(1+yield to maturity/2)^(2*18)
(1+yield to maturity/2)^36=($10,000/$4,550.90)
1+yield to maturity/2=($10,000/$4,550.90)^(1/36)
Now let calculate the yield to maturity
Yield to maturity/2=1.0221092-1
Yield to maturity=0.0221092*2
Yield to maturity=0.0442*100
Yield to maturity=4.42%
Therefore the Yield to maturity will be 4.42%
Assume you just deposited $1,000 into a bank account. The current real interest rate is 7.00% and inflation is expected to be 8.00% over the next year. What nominal interest rate would you require from the bank over the next year? How much money will you have at the end of one year? If you are saving to buy fancy bicycle that currently sells for $1,050, will you have enough money to buy it?
Answer:
a) The nominal interest rate that I would require from the bank over the next year is 15%.
b) At the end of one year, I will have $1,150.
c) If I am saving to buy a fancy bicycle that currently sells for $1,050, I will have enough money ($1,150) to buy it. It will be costing $1,134 ($1,050 * 1.08) with inflation rate of 8% in one year's time.
Explanation:
The nominal interest rate (15%) is higher than the real interest rate (7%) when inflation is positive because the real interest rate is adjusted for inflation (at 8%). The real interest rate is the rate without inflation while the nominal interest rate factors in the inflation rate.
Prices for airline tickets change on average about once per month. This would suggest that airline ticket prices are
Answer:
relatively flexible
Explanation:
Flexible pricing is when there is room for negotiation of prices of a product between the buyers and sellers.
So the price is prone to change in short amount of time.
Sticky price on the other hand tends to be non negotiable and the does not change over time.in the given scenario prices for airline tickets change on average about once per month.
So there is constant change of the price every month. Meaning the buyer can convince the seller to change his offering price.
The price is relatively flexible
On March 2, Blue Ribbon sold $887,400 of merchandise to Lumberyard Inc. with terms 2/10, n/30. The cost of the merchandise sold was $571,700. Lumberyard Inc. pays the balance owed on March 11.
Required:
How much does Lumberyard pay on March 11?
Answer:
Payment will be = $869652
Explanation:
The terms of the credit sale to Lumberyard were 2/10, n/30 which means that Lumberyard was entitled to receive a 2% discount if the payment is made within 10 days of purchase of merchandise while the total credit period was of 30 days. As Lumberyard has paid the balance owed on 11 March and within the discount period, the amount paid by Lumberyard and the discount received will be,
Discount received = 887400 * 0.02 = $17748
Payment will be = 887400 - 17748 = $869652
The results of unethical behavior in a business can be catastrophic, both financially and in reputation. Clearwater Electronics currently has a solid reputation as an ethical organization and wants to maintain that reputation. Top management has tasked the HR department to reinforce ethical behavior consistently throughout the company. Given that responsibility, why is it especially important for the HR professionals themselves to behave ethically?
Answer:
Throughout the description segment below the overview according to the particular instance is defined.
Explanation:
Even though HR professionals become capable just of establishing as well as maintaining a healthy work atmosphere throughout positions of responsibility, it's indeed crucial that they somehow behave responsibly. This same HR department must therefore implement professional HR activities ensuring that they're being a model citizen again for the majority including its corporation's representatives.A friend asks to borrow $635.52 today and promises to repay you $1,000 with interest compounded annually at 12%. How many years (compounding periods) will pass before you receive the payment
Answer:
4 years
Explanation:
We can calculate the years (compounding periods that) will pass before you receive the payment by calculating the PV factor at 12% as follows.
DATA
Amount borrowed = $635.52
future amount = $1,000
Interest rate = 12%
Time period (n) = ?
Solution
Amount borrowed = future amount x Present value factor (12%, n)
$635.52 = $1,000 x PV factor(12%, n)
0.63552 = PV factor(12%, n)
If you see in a discount table yu wi see 0.63552 in the fourth row of 12% rate that means it will take 4 years to receive the payment.
Karl purchased a second, larger home in which to live. He has
decided to rent his first home out for $1,500 a month. His
mortgage on the first home is $1,250. Is this an example of
passive income?
A) No B) Yes
Answer:
yes
Explanation:
Passive income is any earning that does not require a person to get involved too much. It is income that requires little effort to earn and maintain. Examples of passive income include shareholder's dividends and rental income. Passive income contrasts with active income, where one participates, is fully engaged, or works for many hours.
Karl receives $1500 as rent and pays $1250 as a mortgage. He earns $250 without using too much effort.
Sheila and her team were able to successfully implement an IS in a hospitality organization. Match the success factors to their meanings.
increased visibility
increased efficiency
better quality
reduced cycle time
reduced process time in different areas
real-time status or availability of any process or product
faster execution of each process
high quality standards of products and processes
Answer:
Increased visibility- real-time status or availability of any process or product
increased efficiency - reduced process time in different areas
better quality- high-quality standards of products and processes
reduced cycle time-faster execution of each process
did get it right?
Now that you know about the different types of bank accounts, relate this information to your chosen career path. Write a paragraph explaining the type(s) of bank accounts that you would need in order to save enough money for college or training for your career. Your answer should address the following questions:
Do you already have a bank account? If so, which type(s), and how do you use them? If not, then how could you go about opening a bank account of your own?
After learning about the different types of bank accounts, which one do you think offers the best options for saving money for college, daily living expenses, and an emergency fund?
Define a bounced check, or a check returned for insufficient funds. Explain a circumstance in which someone might bounce a check (give an example), and create and discuss a plan so that this does not happen to you.
Answer:
I pay for my expenses using either my debit card or cash that I withdraw from the ATM. It is very rare that I write a check to pay for my purchases. If there is an emergency situation, I withdraw money from one of my certificates of deposit.
I want to be a physicist, and I plan to earn a graduate degree in physics from Harvard University. I don’t have enough money saved up to pay for my tuition, even though I have two certificates of deposit accounts and one savings account. This means that I will probably have to take a student loan from my bank. However, I do have sufficient money in my checking account to pay for my daily expenses.
A bounced check is a check that a person has written but cannot pay for due to insufficient funds. For example, a person might send a check for a credit card bill but the person’s bank account may not have sufficient balance to pay this amount. To avoid check bouncing, I’ll always try and remember a rough figure of the money in my account. Additionally, wherever possible, I will pay my bill either in cash or by debit card.
Explanation:
PLATO sample answer
A bank monetary base account is managed by a bank or other financial institution wherein the bank records financial transactions with customers.
Bank Account:We pay for all our purchases with a debit card or cash from an ATM. I rarely pay for things with a check. I can take money out of one of my certificates of deposit because I need it in an emergency.
We want to be a physicist and plan to study physics at Harvard University. Although I have two savings deposits and one savings account, I may not have enough money set aside to pay for my tuition. As a result, I'll most likely need to borrow money from my bank for a student loan. My term deposit, on the other hand, has enough cash to cover our everyday needs.The bounced check has been written but cannot be paid because of a lack of money. The person may, for example, submit an account to cover a credit card debt, yet his or her bank account may not have adequate funds to cover the payment. I'll try to remember a rough figure of the money in my account to avoid checks bouncing.I'll also pay my share in cash or through a debit card whenever feasible.Find out more about the bank account here:
brainly.com/question/16953228
Dividends are best defined as:
a. cash or stock payments to shareholders.
b. cash or stock payments to either bondholders or shareholders.
c. distributions of stock to current shareholders.
d. cash payments to shareholders.
e. cash payments to either bondholders or shareholders.
Answer: a. cash or stock payments to shareholders
Explanation:
A dividend is a cash or stick payment that is given to the shareholders of a company. This reward given to the shareholders can be in the form of cash or other form.
The dividend given to the shareholders is gotten out of the profit that the company makes.
Therefore, the correct option is A.
Globalization forces small businesses to compete worldwide. The result of globalization is that operation manager (OM) or owner must do which of the following to stay competitive:
Answer:
- Making sure the cost of their asset management is as low as possible
- Maximize their product delivery
- Making sure that their price of operation is efficient
- making sure price of their product is competitive
Explanation:
Due to globalization, businesses are forced to compete on foreign markets that they might not be familiar with. In such situations, lowering cost of production while maintaining the quality of their products is the best thing that they can do to maintain a healthy profit margin. This can be done by lowering the cost that they need to make maintenance of their assets and minimizing the cost they need to acquire materials.
On top of lowering cost of production, they also need to provide better services and reasonable price range for the costumers. They need to put a good customer service call along with on time delivery to keep customers happy.
Curtis invests $700,000 in a city of Athens bond that pays 9.00 percent interest. Alternatively, Curtis could have invested the $700,000 in a bond recently issued by Initech, Incorporated that pays 11.00 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. How much implicit tax would Curtis pay on the city of Athens bond?
Answer:
$14,000
Explanation:
Calculation for How much implicit tax would Curtis pay on the city of Athens bond
Using this formula
Implicit tax=(Amount invested*Initech Interest rate)- (Amount invested* Athens bond Interest rate)
Let plug in the formula
Implicit tax=(11%*$700,000)- (9%*$700,000)
Implicit tax=$77,000-$63,000
Implicit tax=$14,000
Therefore the implicit tax that Curtis would pay on the city of Athens bond will be $14,000
This afternoon, Northern Railways paid an annual dividend of $2.44 per share. The company has been increasing the dividends by 15 percent each year. How much are you willing to pay to purchase stock in this company if your required rate of return is 16 percent?
a. $7.87
b. $207.40
c. $36.60
d. $6.69
e. $280.60
Answer:
P0 = $280.60
Option e is the correct answer.
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend today or paid recentlyD0 * (1+g) is dividend expected for the next period /year g is the growth rate r is the required rate of returnP0 = 2.44 * (1+0.15) / (0.16 - 0.15)
P0 = $280.60
By moving to Italy to work closely with fabric creators, Geoffrey B. Small is working to achieve:________
a. Planning integration
b. Supply chain integration
c. Strong product development processes
d. Integrated logistics
Answer:
The right approach is Option b (supply chain integration).
Explanation:
The integrated supply chain seems to be a large-scale organization strategic approach that brings however many chain features as possible into some kind of relatively close professional relationship amongst one another. The purpose is to promote responsiveness, manufacturing cost, but instead focused on waste reduction. Every connection throughout the chain advantages.All three of those certain decisions are not linked to the example in the case given. So, option b is right.
A part of a business's message that distinguishes it from all its competitors
is referred to as what?
A. Cultural sensitivity
B. Unique selling proposition
C. Superiority clause
D. Isolation technique
Answer:
Unique selling proposition.
Answer:b
Explanation:
A company sells a plant asset which originally cost $354000 for $124000 on December 31, 2018. The Accumulated Depreciation account had a balance of $146000 after the current year's depreciation of $39000 had been recorded. The company should recognize a
Answer:
d. $45.000 loss on disposal.
Explanation:
a. $84000 gain on disposal. b. $84000 loss on disposal. c. $230000 loss on disposal. d. $45.000 loss on disposal.
Book Value on the Date of sale = Cost - Accumulated Depreication -Current year Depreciation
Book Value on the Date of sale = $354,000 - $146,000 - $39,000
Book Value on the Date of sale = $169,000
Gain (Loss) on disposal of the Asset= Selling Price - Book Value
Gain (Loss) on disposal of the Asset = $124,000 - $169,000
Loss on disposal of the Asset = $45,000
What were true about all the states of natures in Decision making under ignorance (hint: how likely was any one of them to happen
Answer: They would be treated equally
Explanation:
States of natures in decision making under ignorance would be treated equally, and as such they would be treated equally.
Which of the following assumptions would cause the constant growth stock valuation model to be invalid? The growth rate is zero. The growth rate is negative. The required rate of return is greater than the growth rate. The required rate of return is more than 50%. None of the above assumptions would invalidate the model. -Select-
Answer:
e. None of the above assumptions would invalidate the model
Explanation:
Incomplete question "The constant growth model is given below: P0 = [D0(1 + g)]/[(rs - g)]"
According to dividend discount model,
P0 = D1/(R-G)
D1 - Dividend at t =1
R - Required rate
G - Growth rate
This would be invalid if R < G. In other words, Dividend growth model will be invalid in only one situation, that is, when growth rate is more than require return. In this situation growth model cannot be used.
It costs Blakeley Company $20.90 of variable and $1.90 of allocated fixed costs to produce an industrial trash can that normally sells for $30.10. A buyer offers to purchase 2,500 units at $21.90 each. Blakeley has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income
Answer:
The effect that the acceptance of the offer will have on net income is a decrease of $2,250.
Explanation:
This can be determined as follows:
Number of units offer to purchase by a buyer = 2,500
Price offered per unit by the buyer = $21.90
Variable cost per unit = $20.90
Allocated fixed costs per unit = $1.90
Total cost per unit = Variable cost per unit + Allocated fixed costs per unit = $20.90 + $1.90 = $22.80
Loss per unit of the offer = Price offered per unit by the buyer - Total cost per unit = $21.90 - $22.80 = -$0.90
Total loss of accepting the offer = Number of units offer to purchase by a buyer * Loss per unit of the offer = 2,500 * (-$0.90) = -$2,250
Since there is loss of $2,250 from accepting the offer, the effect that the acceptance of the offer will have on net income is a decrease of $2,250.
Your goal is to earn an annual salary of $100,000 three years from now. You expect to increase your salary by 6.5 percent annually. How much do you need to earn this year if you are going to reach your goal?
a. $72,988.08
b. $82,784.91
c. $87,878.88
d. $84,363.13
Answer:
$87,878.88
Explanation:
Calculation How much do you need to earn this year
Using this formula
PV = FV/ (1 + r )^n
Where,
FV =Future Value=$100,000
PV = Present Value
r = rate of interest=6.5%
n= no of period=3 years
Let plug in the formula
PV = $100,000 / ((1 + 6.5%)^3)
PV = $82,784.91
Therefore the amount you need to earn this year will be $82,784.91
On November 19, Hayes Company receives a $15,000, 60-day, 10% note from a customer as payment on his account. What adjusting entry should be made on the December 31 year-end
Answer: A debit to Interest receivable at $175
A credit to Interest Revenue at $175
Explanation:
Interest revenue = Principal x rate s time ( from Nov 19 - December 31st)
=$15,000 x 10% x 42/360 ( taking days in a year = 360 days )
= $175
Adjusting Journal entry for Hayes Company on December 31st year end
Date Account titles Debit Credit
December 31st Interest receivable $175
Interest Revenue $175
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:
I need help with the analysis part. Thank you!
Answer:
first part
Return on equity = net income / equity =
net income = total revenue - expenses = $66,500 - $42,700 (salaries) - $6,900 (utilities) - $8,000 (supplies) - $1,675 (depreciation) - $2,700 (taxes) = $4,525
equity = $153,200 (Dec. 31 balance) + $42,000 (new stocks issued) - $20,000 (treasury stocks) - $3,620 (dividends) + 17,600 (treasury stocks sold) + $4,525 (net income) = $193,705
ROE = $4,525 / $193,705 = 2.34%
The company is less profitable than other companies in the same industry.
second part
total stocks outstanding = 18,100
third part
EPS for January = $4,525 / 18,100 = $0.25
EPS for January is higher than last year's average
Project L costs $70,000, its expected cash inflows are $16,000 per year for 8 years, and its WACC is 13%. What is the project's discounted payback?
Answer:
6.89 years
Explanation:
The discounted payback period can be calculated by using the following table
Year Cash flows PV(13%) Cumulative Cash flows
0 (70000) (70000) (70000)
1 16000 14159.29 (55840.71)
2 16000 12530.35 (43310.36)
3 16000 11088.80 (32221.56)
4 16000 9813.10 (22408.46)
5 16000 8684.16 (13724.30)
6 16000 7685.10 (6039.20)
7 16000 6800.97 761.77
8 16000 6018.56 6780.33
Discounted Payback = 6 years + 6039/ 6801
Discounted Payback = 6.89 years
Dawson Electronic Services had revenues of $106,000 and expenses of $63,000 for the year. Its assets at the beginning of the year were $413,000. At the end of the year assets were worth $463,000. Calculate its return on assets.
Answer:Return On Assets=9.8%
Explanation:
Return On Assets =Net income/Average total assets
But
Net income=Revenues-Expenses
=$106,000 - $63,000
= $43,000
And Average total assets is given as (Beginning assets +Ending assets)/2
= ($413,000+$463000)/2=$876,000 /2
=$438,000
Therefore Return On Assets =Net income/Average total assets
= $43,000 / $438,000
=0.098 x 100
=9.8%
A__________is a customer benefit package (CBP) feature that departs from the standard CBP and is normally location specific or firm specific.
a. bottleneck
b. peripheral product
c. core product
d. variant
Answer:
d. variant
Explanation:
A variant signifies a set of attributes that is specific to the firm or location in which the firm operates.
For example, a restaurant chain operating for years that decide to entertain its guest with a live band in its new has just added a new variant to its customer benefit package.