Drake Manufacturing makes a variety of​ products, including lawn mowers. ​'s Lawn Mower Division can use a​ component, K32, manufactured by ​'s Electrical Division. The market price for K32 is per unit. The variable cost per unit for K32 in the Electrical Division is ​$11, while the absorption cost per unit is $12. The divisions at use a negotiated price strategy to set transfer prices between divisions. The Electrical Division has excess capacity. What is the lowest acceptable transfer price to the Electrical Division? What is the highest acceptable transfer price that the Lawn Mower Division would pay?
1. ______the lowest acceptable transfer price to the Electrical Division.
a. $14, the difference between the variable cost and market price.
b. $11, the variable cost.
c. $12, the absorption cost.
d. $25, the market price.
2. ______is the highest acceptable transfer price that the Lawn Mower Division would pay.
a. $14, the difference between the variable cost and market price.b. $11, the variable cost. c. $12, the absorption cost.d. $25, the market price.

Answers

Answer 1

Answer:

b. $11, the variable cost.d. $25, the market price.

Explanation:

1. The Electrical Division has excess capacity so supplying the Lawn Mower Division can be done and they will still be able to sell to outside customers. They should therefore only charge the variable cost to make component K32 which is $11 as they are in the same company.

2. The highest acceptable transfer price that the Lawn Mower division would pay is the market price of $25. At a price higher than this, it would make no sense to source the component from the Electrical division because the Lawn Mower division could simply source it from the market and save on costs.


Related Questions

Nature's Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef's salad selling for $7. Daily fixed costs are $1,710, and variable costs are $4 per meal. With a capacity of 950 meals per day, the restaurant serves an average of 900 meals each day.Requried:a. Determine the current average cost per meal.b. A busload of 30 Girl Scouts stops on its way home from the San Bernardino National Forest. The leader offers to bring them in if the scouts can all be served a meal for a total of $150. The owner refuses, saying he would lose $0.60 per meal if he accepted this offer. How do you think the owner arrived at the $0.60 figure? Comment on the owner's reasoning.c. A local businessman on a break overhears the conversation with the leader and offers the owner a one-year contract to feed 300 of the businessman's employees one meal each day at a special price of $4.50 per meal. Should the restaurant owner accept this offer? Why or why not?

Answers

Answer:

Nature's Garden

a. Determination of the current average cost per meal:

Variable cost per meal = $3,800 ($4 x 950) based on full capacity

Fixed costs per day =        $1,710

Total costs =                     $5,510

Average cost per meal = $5,510/950 = $5.80

b. Girl Scouts' offer of $150 for 30 girls:

Offered price per person = $5 ($150/30)

Projecting a loss of $0.60 per meal, this gives a total loss of $18 ($0.60 x 30)

Projected revenue from the offer = $150 + $18 = $168

Projected revenue per meal = $168/30 = $5.60

Actual revenue to be received per meal = $5.00

Loss of $0.60

The owner arrived at the $0.60 loss because his total costs per meal was $5.60.

c. Since the variable cost per meal is $4, the restaurant owner could accept the offer if the additional 300 meals will not increase his daily fixed costs due to lack of capacity.  If the fixed costs increase with this addition, then it may not be reasonable to accept the offer.  Based on this offer, the contribution to defraying fixed costs, given present capacity, is only $0.50 ($4.50 - $4) per meal.

Explanation:

Selling price of chef's salad = $7

Daily fixed costs = $1,710

Variable costs per meal = $4

Meals capacity per day = 950

Average meals = 900

Nature's Garden has a fixed cost of $1,710 based on current capacity of 950 meals per day.  The fixed cost may increase with increasing capacity.  This fact must be borne in mind when making decisions.

Compute the new national income given MPC = 0.9, and an autonomous injection of $100B from federal government stimulus spending.

Answers

Answer:1200

Explanation:

The new national income is given MPC = 0.9, and an autonomous injection of $100B from federal government stimulus spending will be 1000.

What is stimulus spending?

To stimulate a market and pull it out of an economic downturn or depression, the government will boost expenditure while lowering taxes as asset prices. This is known as a stimulus package.

The term "economic stimulus" refers to focused monetary and financial actions designed to spur business activity in the private sector. To compensate for the decline in aggregate demand, fiscal recovery focuses on promoting private sector expenditure.

The MPC is given as 0.9

The MPS will be

1 = MPC + MPS

1 - 0.9

MPS = 0.1

The stimulus spending will be

= 1000 / 0.1

= $10000

The federal government has spent of $10000.

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The standard deviation of a portfolio: Multiple Choice is a measure of that portfolio's systematic risk. is a weighted average of the standard deviations of the individual securities held in that portfolio. measures the amount of diversifiable risk inherent in the portfolio. serves as the basis for computing the appropriate risk premium for that portfolio. can be less than the weighted average of the standard deviations of the individual securities held in that portfolio.

Answers

Answer:

sorry i forgot

Explanation:

Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Des Moines Cedar Rapids Total present value of net cash flow $712,500 $848,000 Amount to be invested (750,000) (800,000) Net present value $(37,500) $ 48,000 a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places.

Answers

Answer:

0.95 and 1.06

Explanation:

The computation of the present value index is shown below:

Present value index = Present Value of net cash Flow ÷ Amount invested

So for each projects, it would be

Particulars                                         Des Moines             Cedar Rapids

Total present value of

net cash flow (A)                                  $712,500                $848,000

Amount invested (B)                            $750,000              $800,000

Present value index (A ÷ B)                   0.95                          1.06

An agent who accepts a bribe to purchase goods for a principal from a seller who is a personal friend breaches his ________ duty by taking the money, since it is the agent's duty to work only for the best interests of the principal. Group of answer choices

Answers

Answer: fiduciary

Explanation:

An agent who accepts a bribe to purchase goods for a principal from a seller who is a personal friend breaches his fiduciary duty by taking the money, since it is the agent's duty to work only for the best interests of the principal.

Fiduciary has to do with trust which exists between a beneficiary and a trustee or an agent and the principal.

To determine cash payments for operating expenses for the statement of cash flows using the direct method, a decrease in accrued expenses is added to operating expenses other than depreciation.

a. True
b. False

Answers

Answer:

True

Explanation:

To determine cash payments under direct method the decrease in accrued expenses is added to the operating expenses payable . Accrued expense mean expenses incurred but not yet paid. A decrease in accrued expenses would suggest that accrued expenses have been paid therefore there has been an outflow of cash which will be added to cash paid for operating expenses.

If the budget deficit increases then a. saving and the interest rate rise. b. saving rises and the interest rate falls. c. saving falls and the interest rate rises. d. saving and the interest rate fall.

Answers

Answer:

c. saving falls and the interest rate rises.

Explanation:

If Country A runs a budget deficit, it forces the government to issue bonds at reduced prices in order to raise funds to shore up the decreased government revenue.  When bonds are issued, the government is mopping up the savings, thus reducing the available savings.  With this increased budget deficit, interest rates will rise as the cost of funding increases to match the inflationary effect of the deficit.  And the vicious circle starts.

It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true? Select all that apply.a. Working capital will remain the same at $18,964,118b.Total Assets will rise to $235,535,291c. Chesters' long-term debt will rise by $9,000,000d.The total investment for Chester will be $217,192,866e.Total liabilities will be $139,957,573

Answers

Answer:

Statements (b) and (e) are true.

Explanation:

According to the above, computation of the data given are shown below;

According to the statement (b), Total assets will rise to = $235,535,291

According to the statement (e) , Total liabilities will be $139,957,573

Also, according to the question, new liability amounts to = $10,000,000

Therefore,

Total Stockholder's Equity = Total assets - Total Liabilities

= $235,535,291 - $139,957,573 - $10,000,000

= $85,577,718

Leverage = Total Assets ÷ Total Stockholder's Equity

= $235,535,291 ÷ $85,577,718

= 2.7

According to the above analysis, statements (b) and (e) are true.

Answer :

b.Total Assets will rise to $235,535,291.

e.Total liabilities will be $139,957,573.

Explanation:

The following statements  are true :

Working notes :

Total Assets = $235,535,291 Total Liabilities =$139,957,573  New Liability  = $10,000,000  

Formula:

Total Stockholder's Equity = Total assets - Total Liabilities

Total Stockholder's Equity = $235,535,291 - $139,957,573 - $10,000,000

Total Stockholder's Equity = $85,577,718

Leverage = Total Assets ÷ Total Stockholder's Equity Leverage= $235,535,291 ÷ $85,577,718 Leverage= 2.7

According to the above scenario the correct answer is B and E.

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Between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs.
A. True
B. False

Answers

Answer: True

Explanation:

Labor productivity has to do with the amount of products and services which are produce at a particular time by the workers.

It should be noted that between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs. This brought about increase in the available goods and services in the country.

Suppose the firms in a perfectly competitive industry merge to form a monopoly. Which of the following would NOT occur?

a. A rise in total consumer plus producer surplus
b. A deadweight loss
c. A rise in producer surplus
d. A fall in consumer surplus

Answers

Answer: a. A rise in total consumer plus producer surplus

Explanation:

When a Monopoly is formed, the Producer surplus will increase but the Consumer surplus will decrease. This is because a Monopoly will charge a higher price than a Competitive firm to get more profit as well reduce output as well.

This will result in the transfer of some Consumer surplus to the Producer as well as a Dead-weight loss being formed thereby reducing the Consumer surplus. The total surplus will therefore fall as a result of this merger.

In October, Novak Company reports 20,100 actual direct labor hours, and it incurs $198,000 of manufacturing overhead costs. Standard hours allowed for the work done is 22,000 hours. The predetermined overhead rate is $9.10 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $7.40 variable per direct labor hour and $42,400 fixed. Compute the overhead controllable variance.

Answers

Answer:

The answer is $7,200U

Explanation:

The formula for computing the overhead controllable variance is:

Actual overhead - budgeted overhead

We need to first calculate the budgeted overhead from the question.

Budgeted overhead = (budgeted cost x standard hours) + fixed labor cost

($7.40 x 22,000 hours) + $42,400

= $205,200

Actual overhead incurred is $198,000

Therefore we have:

$198,000 - $205,200

= $7,200U

The U means unfavorable, meaning actual overhead incurred is less than budgeted overhead

assume that autonomous consumption is $1610 billion and disposable income is $11,200 billion. Using the consumption function, calculate consumption expenditure

Answers

Answer:  $9,226

Explanation;

The consumption function is;

Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)

Marginal Propensity to Consume;

=Increase in consumption expenditure/  Increase in Disposable income

= 680/1,000

= 0.68

Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)

= 1,610 + ( 0.68 * 11,200)

= $9,226

The Chinese government chooses to control the value of its currency so that it is consistently worth some fixed amount of U.S. dollars. Which of the following terms would relate to what the Chinese government would be doing?

a. floating exchange rate
b. flexible exchange rate
c. exchange rate freedom
d. pegged exchange rate

Answers

Answer: pegged exchange rate

Explanation:

A pegged exchange rate also referred to as the fixed exchange rate, sometimes is an exchange rate regime type whereby the value of a currency is fixed by the monetary authority of a particular country against the value of the currency of another country.

This is the type of exchange rate used by the Chinese government in the question above.

The profit-maximizing monopolist produces _____________ units and charges a price of _____________.

Answers

Answer: Q0; P3

Explanation:

The profit-maximizing monopolist produces Q0 units and charges a price of P3.

According to the exhibit graph, the monopolist will produce Q0 units. This is because a monopoly maximises profit at the point where Marginal Revenue equals Marginal Cost. Looking at the chart, the quantity of output where this happens is Q0.

The Monopolist will then charge a price of P3. After the profit-maximising output is realized, the way to find out the price the monopolist will sell at is the point where the output produced intersects with the Demand curve. At this point, the price listed is what people are willing to buy that amount of quantity for and so the Monopoly will sell at that price.

Trevor Company discloses supplementary operating segment information for its three reportable segments. Data for 20X8 are available as follows:

Segment A Segment B Segment C

Sales $500,000 $300,000 $200,000
Traceable operating expenses 250,000 120,000 90,000

Allocable costs for the year was $180,000. Allocable costs are assigned based on the ratio of a segment's income before allocable costs to total income before allocable costs. The 20X8 operating profit for Segment B was:

a. $180,000
b. $120,000
c. $126,000
d. $110,000

Answers

Answer:

Operating profit of segment B = $180,000

Explanation:

The allowable cost to any of the segment would be equal to the proportion that the segment income bears to the overall total income multiplied by the allocable cost.

Mathematically, we can use the realationship below:

Allocable cost to Segment B = Sales of segment B/Total sales × Alllocable cost

Allowable cost = 180,000

Total sales = 250,000+ 120,000 + 90,000 = 460,000

Allocable cost to B = (120,000/460,000) × 180,000 =  46,956.52  

Allocable cost to segment B =$46,956.52  

However,the question required us to determine operation profit.

Operating profit is the excess of sales revenue over operating expenses

Operating profit of segment B-= 200,000 - 90,000 = 180,000

Operating profit of segment B = $180,000

Your teammates, Sara and Juan, are having difficulty cooperating with one another even though their individual assignments are highly related. Which of the following actions is least likely to improve their cooperation?
1) Ask them to make suggestions to each another about ways to possibly improve each person’s assignment.
2) Have them work on their own and only meet with the rest of the team when absolutely necessary.
3) As a team, discuss how each member’s contributions are linked and contribute to the team’s goals.
4) Re-assign their tasks so that they are working on very different aspects of the team’s project.

Answers

Answer: Have them work on their own and only meet with the rest of the team when absolutely necessary.

Explanation:

From the question, we are informed that Sara and Juan, are having difficulty cooperating with one another even though their individual assignments are highly related.

To improve their cooperation, the best thing to do is to have them work on their own and only meet with the rest of the team when absolutely necessary.

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision:__________

Answers

Complete Question:

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision:

Group of answer choices.

a. might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant.

b. will reduce the excess supply of labor.

c. is an example of the benefits of a minimum-wage law.

d. All of the above are correct.

Answer:

a. might increase profits if it attracts a better pool of workers to apply for jobs.

Explanation:

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision might increase profits if it attracts a better pool of workers to apply for jobs.

An excess supply of labor refers to the situation where there are too many number of people working in an organization at a particular period of time.

However, Emeril's decision to raise the wages of his workers might increase profits if he's able to recruit better pool of workers who will be willing and able to work more hours effectively and efficiently. As a result, this would help to boost the level of production and increase the rate at which the consumer's needs or wants are meet.

A corporation declared a stock dividend on November 1 and issued 9,000 shares of stock to its stockholders. Prior to the dividend, the balance in Retained Earnings was $850,000, the number of shares of $5 par value stock issued and outstanding was 60,000, and the market value of the stock was $12. This stock dividend will cause total stockholders' equity to:


a. decrease by $63,000.

b. remain unchanged.

c. increase by $45,000.

d. decrease by $108,000.

Answers

Answer:

b. remain unchanged.

Explanation:

The computation is shown below:

The Decrease in retained earnings would be

= 9,000 shares × $12

= $108,000

Increase in common stock is

= 9,000 shares × $5

= $45,000      

Therefore the Paid up capital in excess of par is

= $108,000 - $45,000

= $63,000

Now

Effect on stockholder’s equity is

= -$108,000 + $45,000 + $63,000

= $0

hence, the correct option is b.

Parilo Company acquired $170,000 of Makofske Co., 5% bonds on May 1, 2016, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 2016, Parilo Company sold $50,000 of the bonds for 96.
Journalize entries to record the following (refer to the Chart of Accounts for exact wording of account titles):
May 1 Initial acquisition of the bonds
Nov. 1 Semiannual interest received
1 Sale of the bonds
Dec. 31 Accrual of $1,000 interest

Answers

Answer:

May 1, 2016

DR Investments Bonds.................................$170,000  

CR Cash ...........................................................................$170,000

(To record acquisition of bonds)

Nov 1, 2016

DR Cash............................................................$4,250  

CR Interest Revenue......................................................$4,250

(To record interest received)

Working

Cash = $170,000*5%*6/12

= $4,250

Nov 1, 2016

DR Cash........................................................... $48,000  

DR Loss on sale of investment...................... $2,000  

CR Investment Bonds .....................................................$50,000

(To record sales of bonds)

Working

Cash = $50,000*0.96

= $48,000

Loss on investment = 50,000 - 48,000

= $2,000

Dec 31, 2016

DR Interest receivable........................................$1,000  

CR Interest revenue...........................................................$1,000

Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $1.90 at the end of each year. If investors require an 7% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ per share

Answers

Answer:

$27.14

Explanation:

Calculation for the price of the firm's perpetual preferred stock

Using this formula

Price of the firm perpetual preferred stock = Annual dividend / Required return

Where,

Annual dividend =$1.90

Required return=7% or 0.07

Let plug in the formula

Price of the firm perpetual preferred stock = $1.90 / 0.07

Price of the firm perpetual preferred stock=$27.14

Therefore the Price of the firm perpetual preferred stock will be $27.14

Which strategy is considered a timeout? captive company rebirth pause/proceed-with-caution contraction concentration

Answers

Answer: Pause/Proceed-with-caution

Explanation:

A timeout strategy refers to when a company decides to scale down a certain or certain operations for a time to effectively rest. The Pause/Proceed with caution strategy is a timeout strategy because it involves the company pausing operations to enable it assess the market before it can launch a bigger grand strategy.

This strategy is also employed when a company has gone through changes such as a serious expansion. They take a pause to enable the changes brought by the expansion to seep through the organization to give employees the chance to get acquainted with the changes so that moving forward, everyone is more or less on the same page.

Consider a situation where a firm owned by you is competing against an identical rival firm. You are able to choose how much of your good (quantity) to supply to the market. You are given the option to set your quantity first, wait and let your rival set their quantity, or have both you and your rival set their quantities at the same time. What should you do

Answers

Available Options Are:

A. Set your quantity first.

B. Set your quantity second.

C. Set your quantity at the same time.

D. It doesn't matter.

Answer:

Option A. Set your quantity first.

Explanation:

The Cournot Equilibrium says that the decisions are made simultaneously and this simultaneous decision is that each firm will choose its own quantity, given what quantity of output its rival has set. Every firm will be producing a quantity that maximizes its profits and this approach will lower the profits because of Cournot Equilibrium.

The firm that sets its quantity first is at better position because the other firms might think about the worse market condition taking Cournot effect into account.

The optimal choice would be to set our quantity first, hence the option A is the right option.

TB MC Qu. 9-336 Puvo, Inc., manufactures a single product in which ...
Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:
Standard Quantity Standard Price or Rate Standard Cost
Direct materials 6.10 pounds $0.90 per pound $5.49
Direct labor 0.50 hours $36.50 per hour $18.25
Variable manufacturing
overhead 0.50 hours $8.80 per hour $4.40
During March, the following activity was recorded by the company:
• The company produced 3,500 units during the month.
• A total of 20,500 pounds of material were purchased at a cost of $14,680.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,720 pounds of material remained in the warehouse.
• During March, 1,200 direct labor-hours were worked at a rate of $41.50 per hour.
• Variable manufacturing overhead costs during March totaled $15,161.
The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is:_______.
a. $3,641 F.
b. $4,355 U.
c. $4,355 F.
d. $3,641 U.

Answers

Answer:

Variable manufacturing overhead rate variance= $4,596 unfavorable

Explanation:

Giving the following information:

Variable manufacturing overhead 0.50 hours $8.80 per hour $4.40

Actual direct labor hours= 1,200

Variable manufacturing overhead costs during March totaled $15,161.

To calculate the variable overhead rate variance, we need to use the following formula:

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Actual rate= 15,161/1,200= $12.63

Variable manufacturing overhead rate variance=  (8.8 - 12.63)*1,200

Variable manufacturing overhead rate variance= $4,596 unfavorable

Do you think that customers are impressed with the effort that Gap has made to respond to the need to have more worker friendly suppliers? Explain your answer.

Answers

Answer:

Yes, I think that customers are very impressed with their customer service

Explanation:

I'm impressed.

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Budgeted diving-hours (q) 300
Revenue ($440.00q) $ 132,000
Expenses:
Wages and salaries ($11,400 + $128.00q) 49,800
Supplies ($5.00q) 1,500
Equipment rental ($2,400 + $25.00q) 9,900
Insurance ($3,800) 3,800
Miscellaneous ($510 + $1.48q) 954
Total expense 65,954
Net operating income $ 66,046
During May, the company’s actual activity was 290 diving-hours.
prepare a flexible budget for May.

Answers

Answer:

$63,240.8

Explanation:

Preparation for a flexible budget for May

Actual diving hours 290

Revenue (290*$440) $127,600

Expenses:

Wages and salaries 48,520

(11,400+290*128)

Supplies 1,450

(290*5)

Equipment rental 9,650

(2400+290*25)

Insurance 3,800

Miscellaneous 939.2

(510+290*1.48)

Total expense $64,359.2

Net Operating income $63,240.8

($127,600-$64,359.2)

Therefore the Net Operating income for the flexible budget for May will be $63,240.8.

Which of the following is an example of an oligopolistic market with a standardized product?
A) The market for breakfast cereal.
B) The market for aluminum.
C) The market for jewelry.
D) The market for automobiles.

Answers

Answer:

B) The market for aluminum.

Explanation:

An oligopoly is a market form in which the market or industry is dominated by a small group of large sellers. Oligopolies can result from various forms of collusion that reduce market competition which then majorly leads to higher prices for consumers. They have their own market structure.

Oligopolistic market with standardised product is an homogeneous oligopoly that is an oligopoly in which firm produce a standardised product. And a good example of that is the Aluminum market.

Penne Pharmaceuticals sold 2 million shares of its $5 par common stock to provide funds for research and development. If the issue price is $16 per share, what is the journal entry to record the sale of the shares

Answers

Answer:

Please see the journal entry below.

Explanation:

Cash account Dr

(2m shares × $16 per share) $32,000,000

Common stock account Cr

(2m shares × $5 per common stock) $10,000,000

APIC - Common stock account Cr

[($16 - $5) × 2m shares]

$22,000,000

Shoe stores A and B are considering selling two new styles of designer shoes resulting in the values below. A moves first and selects which style to sell first, and then B makes its selection (the payoffs at the bottom represent (Payoff A , Payoff B).
What is the equilibrium path of this game?
A. A will choose Black and B will choose Pink
B. A will choose Pink and B will choose Pink
C. A will choose Black and B will choose Black
D. A will choose Pink and B will choose Black

Answers

Answer:

B. A will choose Pink and B will choose Pink

Explanation:

Answer: it is b because of

Explanation:

You are considering buying a perpetuity contract from your insurance company that will pay you $500 annually where the payment will grow by 3% each year. Using a discount rate of 9%, the most you should be willing to pay for this contract is closest to:

Answers

Answer:

Maximum Amount Payable = $8333.33

Explanation:

Perpetual Annuity Payment = $500

Growth Rate = 3%

Discount Rate = 9%

Maximum Amount Payable = Present Value of Perpetual Annuity

Present Value of Perpetual Annuity =  Perpetual Annuity Payment / (Discount rate - Growth rate)

Maximum Amount Payable = $500 / (0.09 - 0.03)

Maximum Amount Payable = $500 / 0.06

Maximum Amount Payable = $8333.33

Companies whose stock is traded in a public market must report EPS in the notes of their financial statements. must report EPS on their income statement. must report EPS on their balance sheet. are not required to report EPS.

Answers

Answer:

The answer is B. must report EPS on their income statement

Explanation:

If a company's share is being traded publicly, its Earnings Per Share (EPS) must be shown on its income statement(Statement of profit or loss and other comprehensive income).

Earnings Per Share (EPS) is calculated as follows:

Earnings (profit after tax) ÷ total number of shares outstanding.

Note: EPS does not recognize/consider discontinue operations.

Other Questions
Solve for x. 7x+38=45 Look at the picture what is meant by Manifold? "On a scale of one to ten, where one means "Disagree strongly" and ten means "agree strongly," please give a rating of the idea that there is a problem with police violence in the United States." This question, if used in a research study, is an example of a(n) ________ scale. Suppose the tax rate on nominal interest income is 20% and does not change over time. Also assume the real interest rate remains constant. In year 1, the inflation rate is 4% and the nominal interest rate is 10%. In year 2, the inflation rate is 14% The real interest rate in both years is 16 The nominal interest rate in year 2 is 20 The after-tax nominal interest rate in year 1 is 7. a. The after-tax nominal interest rate in year 2 is __________ b. The after-tax real interest rate in year 1 is ______________ c. The after-tax real interest rate in year 2 is ______________ Which of the following transitions would be used to show a sequence?O In light of thisO FinallyThereforeAs a result when an atom gains an electron,what charge does the ion have Hunt Inc. intends to invest in one of two competing types of computer-aided manufacturing equipment: CAM X and CAM Y. Both CAM X and CAM Y models have a project life of 10 years. The purchase price of the CAM X model is $3,600,000, and it has a net annual after-tax cash inflow of $900,000. The CAM Y model is more expensive, selling for $4,200,000, but it will produce a net annual after-tax cash inflow of $1,050,000. The cost of capital for the company is 10%.Required: Calculate the NPV for each project. Give two examples of neutralization In the Lewis structure of AB4 where B is more electronegative than A. Both are main group elements where A has 8 valence electrons and each B has 7 valence electrons.Required:a. What is the total number of valence electrons? b. How many lone pairs are in the molecule? Which body of water is actually a lake?A. Mediterranean SeaB. Red SeaC. Arabian SeaD. Caspian Sea Most adults should consume no more than 30 percent of their daily calories from fat. A person on a daily diet of 2,500 calories should get no more than how many calories from fat each day. pls solve this questions ,,with proper working..plsssssssss heeeeelpppp meeee......need to pass up tomorrow assignment..ASAP After entering a dark room, you turn on a light switch, but the light does not come on. Please suggest three different hypothesis that might explain your observation. Please also note how you might test these hypotheses and describe what observation(s) may lead you to conclude that one of the hypothesis is correct. Why was the Erie Canal important? Check all of the boxes that apply. It ran among all the Great Lakes. It connected New York City with the Great Lakes. It proved that the steam locomotive could work. It increased the amount of goods shipped in and out of the Northwest Territories. It turned New York City into an important trading port. Can someone please help me . verb is ser. 2. Solve | 2x - 11 | < 3. True or false? If false give counterexample The product of a rational number and an integer is not an integer why is road transport most common in nepal Mason Company paid its annual property taxes of $240,000 on February 15, 20X9. Mason also anticipates that its annual repairs expense for 20X9 will be $1,200,000. This amount is usually incurred and paid in July and August when operations are shut down so that machinery and equipment can be repaired. What amount should Mason deduct for property taxes and repairs in each quarter for 20X9?