A firm has a debt-to-equity of 0.69 and a market-to-book ratio of 3.0. What is the ratio of the book value of debt to the market value of equity?

Answer:

portfolio's standard deviation = 0.3256

Explanation:

Stock       Expected Return       Standard Deviation            Wi

A                 10%                                30%                               0.2

B                 20%                               40%                               0.8

covariance = [(10% - 10%) x (20% - 20%)] / (2 - 1) = 0

portfolio's standard deviation = (stock A's Wi² x variance) + (stock B's Wi² x variance) + (2 x covariance x weight A x weight B)

portfolio's standard deviation = √{(0.2² x 0.09) + (0.8² x 0.16) + 0} = √(0.0036 + 0.1024) = √0.106 = 0.3256

Answer: At least 1% of the purchase price

Explanation:

The 1% rule is a popular practice that estimates that 1% of a house´s purchase price should be expected to be required for maintenance every year. This is the case for a house that is less than five years old. Houses between 5 and 25 years old could range between a 1 and 4% annual maintenance budget, depending also on its location, the market, its size, and the impact of the weather.

Answer: b. increasing the driving forces.

Explanation:

Driving forces analysis (DFA) this are ways used in understanding and accounting for changes in industrial level. The drivers used for this are clusters of trends which directly or collectively have influence on changes occurring in an industrial structure and a rival's competitive conduct. The word force used here is used to show that the said drivers can materially impact the firm's future.

Answer:

15.19%

Explanation:

According to the given situation, the computation of the annual percentage rate is shown below:-

Annual percentage rate = (1 + APR ÷ n^n) -1)

Now we will put the values into the above formula to reach the annual percentage rate

= ((1.1608) × 0.25 - 1) × 4

= 0.1519

or

= 15.19%

Therefore for computing the annual percentage rate we simply applied the above formula.

Answer:

A. recognition of a loss and creation of a liability for the value of the land.

Explanation:

This is because, in the financial statement of the Railroad company, it goes to show the financial dealings which the company had within the fiscal year under review. Since, the Northern Railroad Company and Mark Ward has reached an agreement, the best would be the recognition of the loss and create a liability for the value of the land in their financial statement. It will afford the investors to be aware of the assets and liability of the company at the present time.

Answer:

First National bank

ASSETS

Decrease in RESERVE $2 million

Increase in SECURITIES $2 million

Federal Reserve

ASSETS:Decrease in RESERVE $2 million

LIABILITIES:Decrease in SECURITIES $2 million

Decrease in Reserve by $2 million while the Monetary Base Decrease by $2 million

Explanation:

Based on the information given if federal reserve sell the amount of $2 million of bonds to the First National bank, what will happen is that:

1. In First National bank:

Assets

RESERVE will decrease by the amount of $2 million while the SECURITIES will increase by the same amount of $2 million.

2. In Federal reserve :

Assets and Liabilities

Both the RESERVE AND SECURITIES will decrease by the amount of $2 million.

3. The Reserve will decrease by the amount of $2 million while Monetary Base will as well decrease by the same amount of $2 million.

In Summary

First National bank

ASSETS

Decrease in RESERVE $2 million

Increase in SECURITIES $2 million

Federal Reserve

ASSETS:Decrease in RESERVE $2 million

LIABILITIES:Decrease in SECURITIES $2 million

Decrease in Reserve by $2 million while the Monetary Base Decrease by $2 million

Answer:

FV= $159,840.60

Explanation:

Giving the following information:

Initial investment= $1,000

Number of years= 2016 - 1912= 104

Interest rate= 5%

To calculate the value of the investment today, we need to use the following formula:

FV= PV*(1+i)^n

FV= 1,000*(1.05^104)

FV= $159,840.60

Answer: Project X

Explanation:

Payback period is a method of capital budgeting that judges a project's viability based on when it will be able to pay back the initial investment.

Payback period Project X

Cost of machines is $77,000

= Year 1 + Year 2 + Year 3

= 28,000 + 28,000 + 28,000

= $84,000

Means it paid back within 3 years.

= Year + Year 2

= 28,000 + 28,000

= $56,000

At year 2 how much was left;

= 77,000 - 56,000

= 21,000

= Amount left/ amount paid in year

= 21,000/28,000

= 0.75

= 2 years + 0.75 years

It took 2.75 years to pay off the Project X

Payback period Project Y

Cost of machines is $55,000

= Year 1 + Year 2 + Year 3

= 2,000 + 25,000 + 25,000

= $52,000

Means it did not payback within 3 years.

In 4th year

= 55,000 - 52,000

= $3,000

= 3,000/20,000

= 0.15

It took 3 years + 0.15 year = 3.15 years to pay off.

Project X should be selected as it pays back within 3 years.

Answer:

Lake Co.

Current Liability for Advances from Customers in Dec. 31, 2021 balance sheet:

Amount to report as current liability for advances from customers:

= $127

Explanation:

Advances from Customers:

Dec. 31, 2020 balance       $120

Cash received                      189

Total liability                      $309

Earned Revenue                 182

Current liability                  $127

Advances, which Lake Co., received from customers for orders not yet fulfilled are recorded as deferred revenue or liabilities because Lake Co. is still owing the respective customers until the services or goods are provided.  Earned Revenue is the value of revenue that would be reported in the income summary for which exchange of value or promises had been completed.

Answer:

the guy above me is correct!!

Explanation:

Answer:

the company's cost of equity is 11.47 %.

Explanation:

The Company`s cost of equity is the return that is required by holders of Common Stocks.

The Cost can be determined using the Capital Asset Pricing Model (CAPM) as follows :

Cost of Equity = Return on Risk Free Rate + Beta × Return on Market Portfolio

                       = 2.86 % + 1.23 × 7.00 %

                       = 11.47 %.

Answer:

D) influencing decisions affecting one's life.

Explanation:

Pluralism is an American theory of governance that states that political power is controlled by several groups of people and not the citizens as a whole. These several groups of people constitute organizations, activists, environmentalists, and other impactful groups who seek recognition and acceptance from the populace and who make decisions that affect the citizens. One attribute of Pluralism is the fact that no single elite or groups of elites control decision making in governance.

The groups of people have powers that are limited in scope and regulated by competition with other groups. Moreso, these groups seek approval from the populace and that is why opinion polls, surveys, elections, etc., are carried out in order to ascertain which entities are more popular with the people.

Answer:

8.88%

Explanation:

Price of the perpetual bond = Interest / Cost of debt

$935 = 82.50 / Cost of debt

Cost of debt = 82.50 / 935

Cost of debt = 0.08824

Cost of debt = 8.88%

Answer:

a. cross-functional team

Explanation:

In this case, the most appropriate is the use of a cross-functional team.

This team is formed by several professionals with knowledge, techniques, skills and resources to help the company achieve its goals and objectives.

The benefits of forming a cross-functional team is to aggregate the potential of each member in a common objective, which ensures greater flexibility of ideas, greater innovation, greater exchange of experiences, which guarantees greater team engagement, greater possibility of designing solutions and greater efficiency in organizational processes.

Answer: c. Arrange for the alliance to be managed at the corporate level.

Explanation:

To mitigate the risk of the various units of American Snacks partnering with Très Bien competitors, the alliance should be managed at Corporate level. All the different units are subservient at Corporate level therefore managing the alliance from there would mean that the different units cannot partner with rivals because Corporate level decisions are strategic and affect the entire company.

Partnering with rivals would therefore be unfeasible across the entire company.

Answer:

a. $10,890 Favorable

b. The labor price variance and quantity variance are $6,300 Favorable and $4,500 Favorable respectively.

c. The labor price and quantity variance is $8,520 Unfavorable and $46,260 Unfavorable respectively.

Explanation:

a. The computation of Total labor variance

= (Actual hours × Actual rate) - (Standard hours × Standard rate)

= (42,600 × $12.65) - ( 13,200 units × 3.2 × $12.5)

= $538,890 - $528,000

= $10,890F

b. The computation of the Labor price variance

= Actual hours × ( Actual rate - Standard rate)

= 42,600 × ( $12.65 - $12.5)

= 42,000 × $0.15

= $6,300 F

The computation of Labor quantity variance

= Standard rate × ( Actual hours - Standard hours)

= $12.5 per hour × ( 42,600 hours - 42,240 hours )

= $12.5 per hour × 360 hours

= $4,500 F

c. The computation of Labor price variance

= Actual hours × ( Actual rate - Standard rate)

= 42,600 × ( $12.65 - $12.85 )

= 42,600 × - $0.2

= $8,520 Unfavorable

The computation of Labor quantity variance

= Standard rate × ( Actual hours - Standard hours)

= $12.85 per unit × ( 42,600 hours - 46,200 hours)

= $12.85 per unit × - $3,600

= $46,260 Unfavorable.

Question options:

A) Not be included.

B) Be included as an element of support.

C) Be included as an element of changes in fund balances.

D) Be included as an element of expense.

Answer:

D) Be included as an element of expense

Explanation:

Care foundation is a voluntary health and welfare organization funded by contributions from the public and therefore is a non-profit organization. Non profit organizations use statement of activities and not income statements used by for profit organizations in reporting revenue and expenses for the year. In the case of non profit organizations, statement of activities are reported as statement of expenses for the year.

Under GASB, direct expenses are expenses that can be linked to a program, department or activity and therefore can be directly linked to that function. Depreciation is a direct expense for non profit accounts and should be charged as expense for the relevant year based on the function of the capital asset it can be traced to. For example a capital asset that can be linked to a particular function should charge it's depreciation expenses as direct expenses based on its functions

Answer:

a. Harry will recognize $0.

b. Sally will also recognize $0.

c. By selling the equipment to an unrelated party and by contributing $150,000 to the partnership instead.

d. Harry's tax basis in his partnership interest is $130,000.

e. Sally's tax basis in her partnership interest is $200,000

f. Evergreen's tax basis in its assets is $330,000

g. Total assets = Total Capital = $330,000

Explanation:

Note: The data in the question are merged together and they are first sorted before answering the questions as follows:

Harry:                                                      Basis             Fair Market Value

Cash                                                     $30,000                   $30,000

Land                                                      100,000                  120,000  

Totals                                                  $130,000                $150,000

Sally:

Equipment used in a business           200,000                    150,000

Totals                                                $200,000                  $150,000

The explanations to the answers are now provided as follows:

a. How much gain or loss will Harry recognize on the contribution?

Harry will recognize $0 because he did not have any debt relief.

The reason is that gain on property contributed by a partner to a partnership will be recognized only when the debt relief they seemed to have received is greater than their basis in the partnership before the distribution.

Since Harry did not have any debt relief, he will therefore recognize $0.

b. How much gain or loss will Sally recognize on the contribution?

Sally will also recognize $0.

It is possible that when partners contributes property to a partnership, loss may not be recognized even if they have debt relief. Therefore, it not in all cases that loss are recognized.

c. How could the transaction be structured a different way to get a better result for Sally?

This transaction could be structured differently if Sally decides to sell the equipment to an unrelated party and then make a cash contribution of $150,000 to the partnership instead of contributing the equipment. As a result of this, it will be possible for Sally to recognize the built-in loss on the equipment by selling it.

d. What is Harry's tax basis in his partnership interest?

The basis of Harry in his partnership interest can be obtained by adding his contribution of cash and land to the partnership as follows:

Harry's tax basis = $30,000 + $100,000 = $130,000.

Therefore, Harry's tax basis in his partnership interest is $130,000.

e. What is Sally's tax basis in her partnership interest?

This is simply the amount of her contribution of $200,000 basis in the equipment.

Therefore, Sally's tax basis in her partnership interest is $200,000.

f. What is Evergreen's tax basis in its assets?

This can be calculated by adding the Harry's basis in cash and land of $30,000 and $100,000 respectively together with Sally's basis in equipment of $200,000 as follows:

Evergreen's tax basis in its assets = $30,000 + $100,000 + $200,000 = $330,000

Therefore, Evergreen's tax basis in its assets is $330,000.

e. Prepare a tax basis balance sheet for the Evergreen partnership showing the tax basis capital accounts for the partners.

This can be prepared as follows:

Evergreen partnership

Tax Basis Balance Sheet

Particulars                                        Amount ($)  

Assets:

Cash                                                     30,000

Equipment                                         200,000

Land                                                    100,000

Total Assets                                      330,000

Capital:

Harry's Capital (w.1)                            130,000

Sally's Capital (w.2)                           200,000  

Total Capital                                     330,000  

Workings:

w.1: Harry's  Capital = Cash contributed + Land contributed = $30,000 + $100,000 = $130,000

w.2: Sally's Capital = Equipment contributed = $200,000

Answer:

B,C

Explanation:

An excise tax is actually a tax that is levied on a good at purchase.

Cigarettes and tissue paper are good candidates for excise duty. This is because of the fact that both goods are inelastic. There would be no decrease in their consumption if an excise tax is placed on them. People would still purchase them. Tissue paper has no substitute while cigarette would still have buyers regardless of an increase in price.

Answer:

The answer is below

Explanation:

Globalization or specifically, Economic Globalization, is a term that (differs from Political and Cultural Globalization) describes the distribution of products, services, technology, information, and jobs across various countries, continents, and cultures.

The advantages or pros of economic globalization includes the following:

1. Economic Globalization is expected to result in free trade that enhances global economic growth; leads to more jobs, makes firms extra competitive, and reduces the prices of products generally.

2. It promotes technological advancement, whereby developed countries utilizes and transfer capital-intensive production and technological advancement to developing countries, through the transfer of labor-intensive production processes.

3. It enhances the quality of life: this is shown when each country involves in a form of division of labor, production, and trade based on their strength and resources. This, in turn, leads to lesser production costs, increases productivity, and results in a better quality of life.

The disadvantages or cons of economic globalization includes the following:

1. Labor markets are exploited in terms of wages and salaries: this occurs whereby workers in developing regions are paid lesser compared to normal or international standards, thus the gap between the upper class and the lower class keeps increasing.

2. Tax Evasion: this occurs when some multinational firms find ways to exploit the tax and operation system of other countries, mostly the less developed and developing countries, so as to avoid paying the necessary taxes.

3. There is also a form of labor exploitation in terms of working conditions, as convicts and child laborers are sometimes encouraged to work in undesirable situations considered to be inhumane where safety standards are overlooked for the purpose of producing cheaper goods.

Answer:

$329,600

Explanation:

The computation of break-even point is shown below:-

But before that first we need to compute the following calculations

Total contribution margin ratio = Sales - Variable cost

= $516,000 - $193,500

= $322,500

Contribution margin in percentage = Total Contribution Margin ÷ Total Sales

= $322,500 ÷ $516,000

= 62.50%

Now,

Break-even point = Total fixed cost ÷ Contribution margin in percentage

= $206,000 ÷ 62.50%

= $329,600

Answer: the insurance application has been submitted.

Explanation:

Insurance is a contract which is typically represented by a policy, whereby an individual will receive financial protection in case there are losses against the thing that was insured.

Since the insurance is a contract, an offer can be made when there has been an application for the insurance which would have been submitted.

Answer:

(A) $31,400

(B) $6,400

Explanation:

Joseph contributed $25,000 in cash and equipment

The tax basis is $6,400

The fair market value paid to Bill hill partnership is $12,600

(A) Joseph tax basis in his partnership interest can be calculated as follows

= contribution+tax basis

= $25,000+$6,400

= $31,400

(B) Since Joseph contributed a tax basis of $6,400 to Bill hill partnership in exchange for a partnership interest then, Bill hill's basis in the equipment is $6,400

Answer:

$20,000

Explanation:

Generally a graded vesting schedule lasts 6 years. After the first 2 years, the employee is entitled to 20% of accrued benefits (in this case contributions to her retirement plan). Then, the employee will be vested an additional 20% of the contribution benefits per year until the sixth year when 100% of the benefits are vested.

In this case, Jamie would be able to roll out $25,000 x 80% = $20,000

End of year                 % vested

2                                        20%

3                                        40%

4                                        60%

5                                        80%

6                                        100%

Answer: A;B

Explanation:

Consider the single factor APT. Portfolio A has a beta of 1.7 and an expected return of 19%. Portfolio B has a beta of .6 and an expected return of 15%. The risk-free rate of return is 11%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio A and a long position in portfolio B.

You should take a short position in the Portfolio with a lower risk premium and a long position on the Portfolio with a higher risk premium.

Using the single factor APT, the formula for risk premium can be derived from;

E(r) = Rf + beta (Risk premium on factor)

Portfolio A

19% = 11% + 1.7 * Risk premium

1.7 * risk premium = 8%

Risk Premium = 4.7%

Portfolio B

15% = 11% + 0.6 * RP

0.6 * RP = 4%

RP = 6.67%

Portfolio A Risk premium is lower so it should be shorted.

Portfolio B Risk premium is higher so it should taken a long position in.

Answer:

b. 15 units of output.

Explanation:

information regarding sales price and quantity demanded is missing, so I looked it up (see attached file):

units              sales revenue            total costs            profits

9                       $216                            $36                     $180

15                      $270                           $54                     $216

21                      $252                           $72                     $180

30                     $90                             $99                     ($9)

Answer:

all else being equal, a marketing channel that has a high cost per exposure will have a low return on investment

Answer:

Principal = $23,392.45

Explanation:

To solve this, we are required to find a certain amount invested for 35 years at an interest rate of 4.1% compounded annually, yielding $98,000.

The formula for compounded interest is used, and this is done as follows:

[tex]FV=PV(1+\frac{r}{n} )^{nt}\\Where:\\FV=Future\ value\ =\ \$98,000\\PV= Present\ value\ =\ ???\\r= interest\ rate\ = 4.1\%=0.041\\n = number\ of\ compounding\ periods\ per\ year\ = monthly\ = \ 12\\ t= time\ =\ 35\ years[/tex]

[tex]98000=PV(1+\frac{0.041}{12} )^{(12\times35)}\\98000=PV(1+0.003417)^{420}\\98000=PV(1.003416667)^{(420)}\\98000=PV(4.189386)\\PV= \frac{98000}{4.189386} \\\\=PV= \$23,392.45[/tex]

Therefore, the principal is approximately $23,392

Question Completion:

Choices: Rapid improvements in transportation and communication; the production of goods for a cash market; and the use of inventions and innovations to produce goods for a mass market.

Answer:

The condition that helped to establish the foundation for a market revolution in the United States is:

Rapid improvements in transportation and communication

Explanation:

Rapid improvements in transportation and communication spurred innovations.  With innovations, capitalism was born.  Innovations needed factories for mass production.  In turn, according to American History, "factories and mass production increasingly displaced individual artisans and farmers," who survived at subsistent levels.  Large farms grew and produced crops for distant markets, no longer only for family and local markets.  Most of the crops were further processed, packaged, preserved, and shipped through cheap transportation systems like the Erie Canal, using steamboats.  And the rest, they say, is history.

Answer: True

Explanation:

Under Agency Law in relation to employment, the salesperson is acting as an agent of the owner of the store and as such is their representative. As their representative, it is assumed that whatever they are selling is from the Owner whom they represent and as such can be binding on the owner.

This is why the Agent must act in the best interest of the owner because the owner could be held negligent for the actions of their agents. For instance, a salesperson will not be sued for a faulty equipment that caused harm but the store can.

Answer:

a. 125.43 hours

b. 767.92 hours

c. 2,129.04 hours

Explanation:

Using the mathematical approach, we have :

y = ax ^b

Where ,

y is the average time to manufacture x units

a is the time its takes to manufacture first plane

b is the log of 80% divided by log 2

Then,

Average time for 5 planes = 300 (5)^-0.322

                                            = 178.67 hours

Total time for 5 planes = 178.67 hours × 5

                                      = 893.35

Average time for 4 planes = 300 (4)^-0.322

                                            = 191.98 hours

Total time for 5 planes = 191.98 hours × 4

                                      = 767.92 hours

The fifth plane would take =  893.35 - 767.92

                                            =  125.43 hours

Average time for the 18 planes = 300(18)^-0.322

                                                    = 118,28 hours

Total time for 18 planes = 118,28 hours × 18

                                       = 2,129.04 hours