Answer:
Global competition
Explanation:
Global competition is the competition in which the products and the services are provided by the companies that are competed and serve their products and services to international customers. In this the companies should faced a lot of challenges like taste and preferences, a lifestyle that occurs due to the difference in cultures also it generated the benefit from lowering the cost
Therefore according to the given scenario, global competition is the answer
Today’s business headlines frequently cite pensions being underfunded, thus costing companies more in contributions to their pension fund as well as pensioners risking not receiving what they had planned for retirement. This has been caused by underperformance of the pension fund itself and the over promising of benefits to retirees. Take the following example:_______.
Assume $20m was invested today to provide for pension payments for a group of employees. Assume also that the average return on these funds was 8.5%
1. How big will the fund be in 25 years?
2. Suppose at year 12 the fund decreased in value by 30%. What returns would be required for the next 13 years to achieve the 25 year amount?
3. Advisor's counseled the company that a conservative investment return of 6% annually for the next 13 years would be advisable and that the company would have to contribute annually to make up the shortfall. How much would have to be contributed annually beginning year 13 if the fund earned 6% in order to achieve the 25 year goal?
Please show the method used to solve this problem.
Answer:
1) in 25 years, the pension fund should equal:
future value = present value x (1 + interest rate)ⁿ
FV = $20,000,000 x (1 + 8.5%)²⁵ = $153,735,247
2) the value in 12 years = $20,000,000 x (1 - 30%) = $14,000,000
future value = present value x (1 + interest rate)ⁿ
$153,735,247 = $14,000,000 x (1 + interest rate)¹³
(1 + interest rate)¹³ = $153,735,247 / $14,000,000 = 10.981
¹³√(1 + interest rate)¹³ = ¹³√10.981
1 + interest rate = 1.2024
interest rate = 1.2024 - 1 = 20.24%
3) if the fund only earns 6%, in 13 years it will be worth:
FV = $14,000,000 (1 + 6%)¹³ = $29,860,996
so you need $153,735,247 - $29,860,996 = $123,874,251 more
we need to use the future value of an annuity formula:
FV of an annuity = annuity payment x annuity factor
FV of an annuity = $123,874,251annuity payment = ?annuity factor (6%, 13 periods) = 18.882annuity payment = $123,874,251 / 18.882 = $6,560,441
An increase in input prices causes:___________
a) the market supply to shift inward, driving the equilibrium price downward.
b) the market supply to shift outward, leading to a higher equilibrium price.
c) the market supply to shift inward, driving the equilibrium price higher.
d) the supply curve to decrease and the demand curve to decrease.
Answer: the market supply to shift inward, driving the equilibrium price higher.
Explanation:
An increase in input prices will result into a rise in the production costs. This will result in a leftward shift of the supply curve.
Therefore, the market supply will shift inward, driving the equilibrium price higher. This simply means that there will be lesser supply of the product and hence, increase in price.
Which of the following is an advantage of a CD?
usually a higher interest rate
saving for a short-term purpose
flexible withdrawals
can be cashed out every year
Answer:
An Advantage of a Certificate of Deposit (CD) is:
It usually offers a higher interest rate.
Explanation:
For instance, Jones Company can purchase a certificate of deposit (CD) from Bank A. The CD is a financial product that pays a locked and premium interest rate. In exchange for this locked and higher interest rate, Jones Ltd agrees to leave a lump-sum deposit which it cannot withdraw from until a predetermined period of time. A CD is not a saving for a short-term purpose, and does not allow for flexible withdrawals unless after the maturity date has been reached. This implies that Jones Ltd cannot cash it out unless after the maturity date.
According to the FTC's historical guidelines for mergers, would the FTC approve a merger between two firms that would result in an HHI of 1,025 after the merger?A: Maybe. The FTC would scrutinize the merger and make a case-by-case decision.B: Yes, the FTC would ignore the merger and allow it to go through.C: No, the FTC would probably challenge the merger.2. Instead of defining a market and counting up total sales, what are antitrust regulators looking at today when determining whether to allow a merger or not?A: HHIB: industry competitionC: four-firm concentration ratioD: innovation3. Price cap regulations are a market regulatory device governments utilize, where the top price a firm can charge is locked in for a defined period of time. All of the following statements are true, except:_________.A: The government sets a price by looking at the firm's average costs and then adding a normal rate of profit.B: The firm can make high profits by producing a higher quantity than expected.C: The firm can make high profits by producing at lower costs.D: The government sets a price level for a few years.
Answer and Explanation:
1. A: Maybe. The FTC would scrutinize the merger and make a case-by-case decision
the ftc would historically make a case-by-case decision for HHI( Herfindahl-Hirschman Index ) between 1000 and 1800 but nowadays antitrust enforcement agencies dontvdeoend much on ratios such as HHI in measuring competition but would rather perform in depth analysis of each industry under study
2.industry competition
Antitrust regulators look out for the level of competition in an industry in allowing mergers and rely more on case-by-case analysis in making it's evaluations
3.True
price cap regulations are used by government to control prices based on inflation levels or price cap index .price cap regulations set a cap on the price that can be charged by businesses for a product. They are set for a defined period of time.
4.A: The government sets a price by looking at the firm's average costs and then adding a normal rate of profit.
Government doesn't consider costs and normal rate of profit to the firm in setting price ceiling or floor for products
An assembly line with 17 tasks is to be balanced. The longest task is 2.4 minutes, and the total time for all tasks is 18 minutes. The line will operate for 450 minutes per day.Required:a. What are the minimum and maximum cycle times? b. What range of daily output is theoretically possible for the line? c. What is the minimum number of workstations needed if the maximum output rate is to be sought?d. What cycle time will provide an output rate of 125 units per day?
Answer
a)Minumum cycle time = 2.4 Minutes And Maximum cycle time = 18 Minutes
b)=187.5 units per day and 25 units per day
c) 8 workstation
d)2.6min/cycle
Explanation:
Given:
output rate = 125 units per day
Operating time= 450 minutes per day
What are the minimum and maximum cycle times?
Minimum Cycle time = duration of the longest task
Therefore,Minimum cycle time = 2.4 minutes
Maximum cycle time = addition of the task
Maximum Cycle Time = 18 minutes
Therefore, Minumum cycle time = 2.4 Minutes And Maximum cycle time = 18 Minutes
B)B)What range of daily output is theoretically possible for the line?
Range of daily output = Operating time / minimum Cycle time
At 2.4 minutes Cycletime
= 450/2.4
=187.5 units per day
At Cycle time 18 Minutes
= 450/18
Cycle time 18 minutes = 25 units per day
C)What is the minimum number of workstations needed if the maximum output rate is to be sought?
number of workstation=(D× summation of all task)/Operating time
number of workstation=(187.5*18)/450
= 7.5= 8 workstation
D)What cycle time will provide an output rate of 125 units per day?
cycle time= Operating time/output rate
=450/125
= 2.6min/cycle
valdes corporation had a credit balance in the allowance for doubtful accounts of $62,000 at 1/1/19 during 2019, it wrote off $21,400 of accounts and collected $7,800 on accounts previously written off, the amount of bad debt expense recoginzed in 2019 is $11,000. if valdes estimates at the year end that 6% accounts receivable will prove to be uncollectible what is the account receivable balance at 12/21/2019
Answer:
The account receivable balance at 12/31/2019 is $990,000
Explanation:
Ending balance of allowance account = Beginning allowance + Bad debt expense - Doubtful accounts written off + Amount collected on written off doubtful account
Ending balance of allowance account = $62,000 + $11,000 - $21,400 + $7,800
Ending balance of allowance account = $59,400
Accounts receivable balance at 12/31/2019 = $59,400 / 6%
=$990,000
Budgeted variable overhead for the year is $150,000. Expected activity is 30,000 standard direct labor hours. The actual hours worked were 15,000 and the standard hours allowed for actual production were 18,000. The variable overhead efficiency variance is:
Answer:
-$15,000 favorable variance
Explanation:
variable overhead efficiency variance = standard overhead rate x (actual hours - standard hours)
standard variable overhead rate = $150,000 / 30,000 = $5actual hours 15,000standard hours 18,000variable overhead efficiency variance = $5 x (15,000 - 18,000) = $5 x (-3,000) = -$15,000 favorable variance
If an economist wishes to determine whether there is evidence that average family incomes in a community exceeds $25,000:_______
a. either a one-tailed or two-tailed test could be used with equivalent results.
b. a one-tailed test should be utilized.
c. a two-tailed test should be utilized.
d. None of the above.
Answer: one tailed test should be utilized
Explanation:
From the question, we are informed that an economist wishes to determine whether there is evidence that average family incomes in a community exceeds $25,000.
A one tailed test should be utilized because the region of rejection will just have to be based on one side.
Identify five HRM criteria or components that can be used to measure organizational effectiveness or ineffectiveness. "Grievance rate" is an example.
Answer:
They include;
1. Customer Satisfaction
2. Absenteeism
3. Legal Compliance
4. Performance
5. Training
Explanation:
The Human Resource Management criteria that are used to measure the effectiveness or ineffectiveness of an organization, are a list that gives an idea of how an organization is performing, and this list can serve as a basis of comparison with other organizations. These options include;
1. Satisfaction: If the employees are treated fairly and so, feel satisfied with the organization, then they can be said to be effective.
2. Absenteeism: When workers are always absent from work it does not present the organization as an effective one.
3. Legal Compliance: The organization must be able to comply to government rules and regulations guiding the business to be rated as effective.
4. Performance: High or low-performance which is reflected in the turnover rates would be an indication of how effective or ineffective an organization is.
5. Training: The organization should be able to provide regular standard training for its workers to be rated as effective.
Sonny's BBQ Company recently issued $85 par value preferred stock that pays an annual dividend of $9. Analysts estimate that the stock has a beta of 1.01. The current T-bill rate is 2.4%. The S&P 500's expected return is 12.1%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?
Answer:
Intrinsic value=$73.77
Explanation:
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.
According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
Price = D/Kp
D- Dividend payable
Kp- cost of preferred stock
So will need to work out the cost of equity using CAPM
The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c
This model is considered superior to DVM. Hence, we will use the CAPM
Using the CAPM , the expected return on a asset is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01
E(r) = 2.4% + 1.23×(12.1- 2.4)% = 12.20 %
Cost of preferred stock= 12.20 %
Using the dividend valuation model
Intrinsic value = 9/0.1220=73.77
Intrinsic value=$73.77
the gross sales for store B were 876500. the custmer returns and allowances were 10%. what was the dollar amount of returns and allowances
Answer:
$87,650
Explanation:
The computation of the dollar amount of returns and allowances is shown below:
= Gross sales for store B × customer returns and allowances percentage
= $876,500 × 10%
= $87,650
By multiplying the gross sales with the customer returns and allowances percentage we can get the dollar amount with respect to the returns and allowances and the same is to be considered
Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $149,630 and annual net cash flows of $45,000 for each of the six years of its useful life. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the internal rate of return for the proposal.
Answer:
Testerman Construction Co.
Internal rate of return method in analyzing capital expenditure:
Present value of expenditure = $149,630
Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)
NPV = $0 (PV of cash outflow - PV of cash inflow)
Therefore, the IRR = 20%
Explanation:
a) Data and Calculations:
Investment cost = $149,630
Annual net cash flows = $45,000
Investment period = 6 years
Annuity of future cash flows = 3.3251
b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.
15. Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discounted at 10% was $81,100. Ten annual lease payments of $12,000 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $66,000, and its retail fair value was $81,100. What amount of interest revenue from the lease should Smith Co. report in its December 31, 2021, income statement
Answer: $3,455
Explanation:
The interest received by Smith can be calculated as;
Interest Value = Present value of lease payment * interest rate
Present Value of interest rate
Ten annual lease payments of $12,000 are due each year beginning July 1, 2021.
That means first payment has been made already. Present value is;
= 81,100 - 12,000
= $69,100
Only half a year has gone by so this will need to be reflected;
Interest Value = Present value of lease payment * interest rate
= 69,100 * 10% * 6/12
= $3,455
If a corporation has a dividend payout ratio of 75%, the undistributed earnings (25%) will:_________.
A. increase earnings per share.
B. decrease book value.
C. increase capital in excess of par
D. increase retained earnings
Answer:
D
Explanation:
Retained earnings is what is left of net income after a company has paid out dividends to its shareholders.
The currency drain ratio is 0.5 of deposits and the banks' reserve ratio is 0.4. What is the money multiplier?
Answer: 1.67
Explanation:
From the question, we are informed that the currency drain ratio is 0.5 of deposits and the banks' reserve ratio is 0.4.
The money multiplier is calculated as:
(1 + the currency drain ratio)/( the reserve ratio + the currency drain ratio)
= (1 + 0.5)/(0.5 + 0.4)
= 1.5/0.9
= 1.67
Therefore, the money multiplier will be 1.67.
Beginning in 6 years, (beginning of years 6, 7,8 and 9) Sally Mander will receive four annual benefit checks of $12,000 each. If Sally assumes an interest rate of 7%, what is the present value of these checks?
Answer:
$28,980
Explanation:
The present value can be calculated by multiplying annual cashflows with the discount factor. The table to calculate the Present Value has been made below.
DATA
Annual benefit = $12,000
Discount rate = 7%
Present value =?
Calculation
Year Cash inflows Discount factor Present Value
6 $12,000 0.666 $7,992
7 $12,000 0.623 $7,476
8 $12,000 0.582 $6,984
9 $12,000 0.544 $6,528
Total $28,980
In response to the financial crisis, the Fed and the U.S. Treasury took all of the following policy actions except _______.
a. lowering tax rates on commercial bank profits
b. The Troubled Asset Relief Program
Answer: lowering tax rates on commercial bank profits
Explanation:
The financial crisis which is also widely called the global meltdown was caused as a result of the financial indutry deregulation.
The goal of TARP was to strengthen the banks, and improve market stability. Lowering tax rates on commercial bank profits wasn't part of the action used by the government.
The basic unit in which data are stored in an accounting system is called an __________. These storage units should be so constructed as to readily receive money measurements of the __________ or ___________ in the items for which they are established.
Answer:
it would be 3 units for the first part then second answer would be 5 then the last one would be 13
Explanation:
that's why it would be asking for how many units for each storage units
A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results:
U.S. LDC
Sales (units) 100,000 20,000
Labor (hours) 20,000 15,000
Raw materials (currency) $20,000 FC 20,000
Capital equipment (hours) 60,000 5,000
a. Calculate partial labor and capital productivity figures for the parent and subsidiary. Do the results seem confusing?
b. Compute the multifactor productivity figures for labor and capital together. Do the results make more sense?
c. Calculate raw material productivity figures (units/$ where $1=FC 10). Explain why these figures might be greater in the subsidiary.
Answer:
a. Labor Productivity:
Country Sales (Units) Labour (hours) Productivity (Sales/Labour hours)
U.S 100,000 20,000 5 units / hours
LDC 20,000 15,000 1.33 units/ hours
Capital Productivity
Country Sales (Units) Capital (hours) Productivity (Sales/Capital hours)
U.S 100,000 60,000 1.67 units / hour
LDC 20,000 5,000 4 units / hours
Conclusion: Yes, the result seems confusing. The labour productivity in U.S. is higher than LDC while the capital productivity in U.S. is lower than LDC which is contradictory.
b. Multi-factor productivity for Labor and Capital
Country Sales Input Productivity
(Units) (Labor + Capital) (units/hours)
U.S. 100,000 80,000 1.25 units/hour
(20,000 + 60,000)
LDC 20,000 20,000 1 units/hour
(15,000 + 5,000)
Conclusion: Yes it make sense as multi-factor productivity is better than partial productivity. Labor and capital are subtitles and that gives better presentation of the productivity.
c. Raw material productivity
Country Sales Raw material Productivity
(Units) (Currency) (units/hours)
U.S. 100,000 $20,000 5 units per dollar
LDC 20,000 = $2,000 10 units per dollar
Conclusion: The figures are greater in subsidiary because the price paid for raw material is much slower than the parent country.
Note: $1 = FC 10
$20,000 = FC 10
FC = $20,000 / 10 = $2,000
A firm has the following gross requirements for Item OF. Ordering costs are $60 per order and carrying costs are $0.50 per period.
Item F Period
LT: 1 1 2 3 4
Gross Requirements 60 40 80 60
Schedule Receipts
Project on Hand 100
Net Requirements
Planned Order Receipts
Planned Order Releases
If EOQ lot sizing is used the minimum order quantity would be:_______
a. 85
b. 100
c. 120
d. 150
Answer:
c. 120
Explanation:
The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The formula for Economic order quantity is represented by the formula:
EOQ = [tex]\sqrt{\frac{2*Demand*Ordering Cost}{Holding cost} }[/tex]
EOQ = [tex]\sqrt{\frac{2*240*60}{0.5} }[/tex]
EOQ = 120
When Production decreases what is a very likely possibility? a hire new workers b expand production c purchase new equipment d downsizing
The correct answer is D. Downsizing
Explanation:
In businesses, the term "downsizing" is used to describe a reduction in the number of workers or the total labor force. This often means non-essential workers are fired or even complete departments are eliminated. Moreover, this is likely to occur if the business expenses are higher than its profits or if the production decreases because in both situations fewer workers are needed to eliminate unnecessary expenses. In this context, if production decreases it is likely downsizing occurs.
Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be ______, and the gross profit must be ______. Review Later
Answer:
Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be 40%, and the gross profit must be $17,250.
Explanation:
The income statement is missing, so I looked it up and the information given was:
Revenue 100,000 COGS 40,000 Gross Profit 60,000 Salaries Marketing Rent Earnings Before Tax 23,000Income Tax 25% Net Income ?Since COGS are$40,000 and total sales are $100,000, the COGS margin percentage = 40,000 / 100,000 = 40%
Since earnings before taxes are $23,000 and taxes are 25%, then net income = $23,000 x (1 - 25%) = $23,000 x 75% = $17,250
The production sector would NOT include Group of answer choices a Florida orange grove a California wine grower a meat packing plant
Answer: Meat packing plant
Explanation:
The options to the question are:
A. California wine grower
B. meat packing plant
C. horticultural nursery
D. Florida orange grove
E. none of the above
Of all the options given in the question, the correct answer is meat packing plant. It should be noted that the meat packaging plant will not be part of the production sector due to the fact that no productive activities are taking place, it only involves in services.
The practice of changing prices for products in real time in response to supply and demand conditions is referred to as
Answer:
Dynamic pricing
Explanation:
In simple words, Dynamic pricing, often alluded to as rising rates, vibrant pricing as well as period-based pricing, relates to the pricing technique under which companies set variable prices for goods or commodities on the basis of existing consumer demands. A main benefit of competitive pricing seems to be the opportunity to increase the income with each consumer.
Company X's current assets increased by $40 million from 2007 to 2008, while the company's current liabilities increased by $25 million over the same period. The cash impact of the change in working capital was:
a. A decrease of $15 million
b. An increase of $15 million
c. An increase of $40 million
d. An increase of $25 million
Answer:
b. An increase of $15 million
Explanation:
The computation of the cash impact of the change in working capital is shown below:
As we know that
Working capital = Current assets - current liabilities
So, the change in working capital is
= Increase in current assets - increased in current liabilities
= $40 million - $25 million
= $15 million
Hence, the b option is correct
Uber's guidance that if a driver's "rating over the most recent 100 trips is below a 4.6, your profile may be at risk of deactivation" represents which step in the control process?
a. take corrective action, if necessary
b. compare performance to standards
c. recognize success
d. measure performance
e. establish standards
Answer:
e. establish standards
Explanation:
-Take corrective action, if necessary is when managers decide strategies to implement when the results are not meeting the standards that were established.
-Compare performance to standards is the step that determines if there is a difference between the company's performance and the standards.
-Recognize success is not a step in the control process.
-Measure performance refers to gather and analyze data to determine if the company is meeting the goals set.
-Establish standards refers to establishing goals that are specific, attainable and clear to be able to evaluate the company's performance.
According to this, the answer is that Uber's guidance that if a driver's "rating over the most recent 100 trips is below a 4.6, your profile may be at risk of deactivation" represents establish standards because Uber established a rating that driver's need to achieve which represents the standard that would be use to evaluate them.
A company believes that its product will exhibit network effects if enough consumers begin to use it. How might this company decide to price its product? Offer the product for free early on, and increase the price later.
Answer: a. Offer the product for free early on, and increase the price later
Explanation:
When a product is said to have a network effect, what it means is that the product gets more value as more people use it. For example Whtsapp which is only such an effective means of communication because more and more people are getting it. If people did not get it, it would not be such a good medium and would be valued less.
If a company wants to price such a product, they should charge at lower rates first which would entice more people to use the product thereby giving the product more value. As the product value increases, the price can then increase to reflect this increased value.
In capital rationing, alternative proposals that survive initial screening by cash payback and average rate of return methods are further analyzed using:________
Answer:
Net present value and internal rate of return
Explanation:
when making a decision between alternative projects, initial analysis is done with the cash payback and average rate of return.
Cash payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows
Average rate of return = Average net income / average book value.
this is followed by the Net present value analysis and Internal rate of return determination.
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
project with the highest positive project NPV should be chosen.
Also, a project with an IRR greater than the discount rate should be chosen. when choosing between alternative projects, the project with the highest IRR should be chosen if the IRR is greater than the discount rate.
If the range of feasibility indicates that the original amount of a resource, which was 20, can increase by 5, then the amount of the resource can increase to 25.
a. True
b. False
Answer: True
Explanation:
The range of feasibility is used to measure values that are on the right-hand-side(objective function) that won't alter dual prices.
When the range of feasibility indicates that the original amount of a resource, which was 20, can increase by 5, then the amount of the resource can increase to (20 + 5) = 25
Therefore, the option is true
On February 3, 1969, New York lawyer and businessman _______________ was appointed the Beatles' business manager, as John was impressed by what the man had done financially for the Rolling Stones.
Answer:
Allen B. Klein
Explanation:
Allen B. Klein was an American businessman that became a powerful person in the music industry because he managed several artists and became well known for helping them increase their income and he worked with Sam Cooked, the Rolling Stones and The Beatles who hired in him in 1969 as their manager. According to this, the answer is that on February 3, 1969, New York lawyer and businessman Allen B. Klein was appointed the Beatles' business manager, as John was impressed by what the man had done financially for the Rolling Stones.
