Answer:
$315,717.03
Explanation:
Let us start by first of determining the future value of $50,000 quarterly payments for 16 years using the future value of an ordinary annuity provided below:
FV=quarterly payment*(1+r)^n-1/r
quarterly payment=$50,000
r=quarterly interest rate=8%/4=2%
n=number of quarterly payments in 16 years=16*4=64
FV=$50,000*(1+2%)^64-1/2%
FV=$50,000*(1.02)^64-1/0.02
FV=$50,000*(3.551493243 -1)/0.02
FV=$50,000*2.551493243 /0.02
FV=$6,378,733.11
The future value above fell short of the target $7,500,000, it means a fixed amount would have to be invested at 8% compounded quarterly for 16 years as well
shortfall=$7,500,000-$6,378,733.11=$1,121,266.89
The present value of the shortfall that would be invested today is computed
PV=FV/(1+r)^n
FV=$1,121,266.89
r=quarterly interest rate=2%
n=number of quarters in 16 years=64
PV=$1,121,266.89/(1+2%)^64
PV=$315,717.03
Abraham told Linda that if she did not sign over her stock options to him he would inflict bodily harm on her and her family. Linda quickly signs over all of her stock options. This is known as _______.
a. negligence
b. coercion
c. manipulation
d. duress
e. breach of duty
Answer:
d) Duress
Explanation:
From the question we are informed about Abraham who told Linda that if she did not sign over her stock options to him he would inflict bodily harm on her and her family. Linda quickly signs over all of her stock options. This is known as Duress.
Duress can be regarded as an act which involves the use of force, psychological pressure as well as
coercion and threats or other means to make sure that someone act against his or her wishes. Whenever an individual act under duress, then their act is not from their own free will and this is treatable just accordingly when it comes to court proceedings.
Devil's advocacy:_____.a. involves generating a plan and a counterplan that reflects plausible conflicting courses of action. b. includes downplaying the problems that could result from implementing a particular plan. c. hides the possible perils of a recommended course of action. d. involves generating a plan and a critical analysis of that plan. e. is an example of ivory tower planning.
Answer:
d. involves generating a plan and a critical analysis of that plan.
Explanation:
The devil's advocacy is a decision-making technique in which an individual in a group is permitted to become the critic in the decision that should be taken in near future. It prevents the group thinking and increased the high quality decision chances. Also it prevents in making expensive along with the risky decisions
So as per the given options, the option d is correct
UNT Inc. is expected to pay a dividend of $1.50 per share at the end of year 1(Div1), and the dividends are expected to grow at a constant rate of 2 percent forever. If the current price of the stock is $30 per share, calculate the expected return or the cost of equity capital for the firm.
Answer:
The expected return or the cost of equity capital for the firm is 7%.
Explanation:
This is calculated by using the Gordon growth model (GGM) formula as follows:
P = Div1/(r - g) ……………………………………… (1)
Where;
P = current price share = $30
Div1 = Expected dividend at the end of year 1 = $1.50
r = expected return = ?
g = dividend constant growth forever = 2%, or 0.02
Substituting the values into equation and solve for r, we have:
30 = 1.50 / (r - 0.02)
30(r – 0.02) = 1.50
30r – 0.60 = 1.50
30r = 1.50 + 0.60
r = (1.50 + 0.60) / 30 = 0.07, or 7%
Therefore, the expected return or the cost of equity capital for the firm is 7%.
If one U.S. dollar was worth 1.22 Canadian dollars when Sal went to a debate tournament in Toronto, and he had $300 in U.S. currency as spending money, how much was his money worth in Canadian dollars?
Answer:
366
Explanation:
300 x 1.22
Meteor Tie Company produces ties from fabric according to Q = 10 + 4 F – (1/3) F 3. If fabric is free and ties sell for $20, what is Meteor’s optimal usage of fabric?
Answer:
The optimal usage of fabric = 2
Explanation:
Given the quantity, Q = 10 + 4F - (1/3) F^3
Selling price = $20
Profit = TR - TC
There is no variable cost and let the fixed cost is constant G.
Profit = PQ - G
Profit = 20(10 + 4F − (1/3)F^3)) - G = 0
Now take the first order derivative:
d(profit) / dF = 0
20(4 - F^2) = 0
F = 2
Therefore the optimal usage of fabric = 2
Take It All Away has a cost of equity of 10.60 percent, a pretax cost of debt of 5.31 percent, and a tax rate of 40 percent. The company's capital structure consists of 70 percent debt on a book value basis, but debt is 30 percent of the company's value on a market value basis. What is the company's WACC
Answer: 8.38%
Explanation:
When calculating Weighted Average Cost of Capital (WACC), use the market values.
WACC:
= (Cost of equity * Proportion of equity) + (After tax cost of debt * Proportion of debt)
If debt is 30% then equity will be 70%.
WACC = (10.60% * 70%) + ( 5.31% * (1 - 40% tax rate) * 30%)
= 7.42% + 0.9558%
= 8.38%
Evaluate the usefulness of a Business Plan for your start up business idea
Explanation:
Gain a Deep Understanding of Your Market. ...
Organization. ...
Practice Makes Perfect. ...
Confirm the Math. ...
Iron Out Possible Kinks. ...
Foster Alignment
Signal mistakenly produced 1,000 defective cell phones. The phones cost $60 each to produce. A salvage company will buy the defective phones as they are for $30 each. It would cost Signal $80 per phone to rework the phones. If the phones are reworked, Signal could sell them for $120 each. Signal has excess capacity. Should Signal scrap or rework the phones
Answer:
Signal Company
Signal should rework the phones with its excess capacity. Reworking reduces its loss by $10,000 (or $10 per phone).
Explanation:
a) Data and Calculations:
Number of defective cell phones produced = 1,000
Cost of production per phone = $60
Salvage value per phone = $30
Additional rework cost per phone = $80
Selling price after reworking per phone = $120
Differential Analysis:
Scrap Rework Difference
Sales revenue $30,000 $120,000 $90,000
Cost of production 60,000 140,000 80,000
Loss $30,000 $20,000 $10,000
Per unit calculations:
Scrap Rework Difference
Sales revenue $30 $120 $90
Cost of production 60 140 80
Loss $30 $20 $10
South Africa mined 697,000 metric tons of aluminum in 2016. China mined 31,200,000
metric tons of aluminum in 2016. Which country had the absolute advantage?
A. South Africa
B. China
Answer:
China
Explanation:
Whenever a manufacturer can create an item or function in larger volume for the similar price, or even the same amount at a cheaper price, than other suppliers, he or she has an absolute advantage Large profits from commerce amongst suppliers of various commodities with differing absolute advantages might be based on absolute advantage.
Rosie is an employee of Social Media Company. At the end of a successful unionization campaign, Tech Workers Union is certified as the employees’ bargaining representative. Rosie refuses to join the union. For this refusal, under the National Labor Relations Act, the union can force the company to
Answer: d. none of the choices.
Explanation:
Joining a union is a voluntary act which means that if a person decides not to join one, not much can be done about it by the Union.
The Union cannot compel the company to discharge or fire the employee, neither can they encourage them to deny the employee a promotion or discriminate against the employee in their employment of the employee.
The main disadvantage of not being in a trade union is that they will not represent you in disputes against the company.
Jake pays the following amounts to his former spouse during the current year: Regular alimony payments $12,000 Child support 10,000 Residence as part of a property settlement 115,000 What amount can Jake deduct as alimony for the current year
Answer:
Divorce after 2020 = Alimony is $0Divorce before 2020 = Alimony is $12,000Explanation:
If the divorce occurred before 2020 then the spouse paying the alimony can deduct it from their taxes and the person receiving it has to include it in their income. If the divorce of Jake and his spouse was before 2020, he will be able to include the full $12,000 as a deduction.
In 2020, new regulation came into effect that meant that couples divorcing from thence will not be able to deduct alimony so Jake's deduction would be $0 if they divorced in 2020 and onwards.
The following relates to a proposed equipment purchase: Cost $ 157,000 Salvage value $ 5,000 Estimated useful life 4 years Annual net cash flows $ 52,600 Depreciation method Straight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is
Answer:
$14,850
Explanation:
Depreciable amount = $158,000 - $5,000 = $153,000
Annual depreciation = $38,250
Annual net income = $53,100 - $38,250 = $14,850.
Therefore, the annual net income amount used to calculate the accounting rate of return is $14,850
You are a provider of portfolio insurance and are establishing a four-year program. The portfolio you manage is currently worth $150 million, and you promise to provide a minimum return of 0%. The equity portfolio has a standard deviation of 25% per year, and T-bills pay 7.5% per year. Assume that the portfolio pays no dividends.
Required:
a. What percentage of the portfolio should be placed in bills?
b. What percentage of the portfolio should be placed in equity?
Answer:
sorry but I don't know sorry
You want to have $100,000 in 30 years to pay for your long-awaited cruise around the world. You open a savings bank account for this purpose, and you want to reach the above sum by making equal annual deposits. You will make the first deposit today and the last one in 30 years. You are assured to earn an EAR of 5% on money deposited in your account. Your annual payments should be (rounded to the nearest dollar):
Answer:
the annual payment should be $6,505
Explanation:
The computation of the annual payment should be
Annual Payment = P × r × (1+r)^n÷ (1+r)^n - 1
= 100,000 × 0.05 × (1 +0.05^)30 ÷ (1 + 0.05)^30 - 1
= 100,000× 0.05 × 4.32194237515 ÷ 4.32194237515 - 1
= $6,505
Hence, the annual payment should be $6,505
Various financial data for SunPath Manufacturing for 2019 and 2020 follow.
2019 2020
Output: Sales $300,000 $330,000
Inputs: Labor 40,000 43,000
Raw Materials 45,000 51,000
Energy 10,000 9,000
Capital Employed 250,000 262,000
Other 2,000 6,000
Required:
What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2019 and 2020?
Answer:
-0.53191
Explanation:
The computation of the percentage change is given below:
Productivity
In the year 2019 is
= $300,000 ÷ (40,000 + 45,000)
= 3.5294118
In the year 2020 is
= $330,000 ÷ (43,000 + 51,000)
= 3.5106383
Now the percentage change is
= (3.5106383 - 3.5294118) ÷ 3.5294118
= -0.53191
The percentage change in the multifactor labor and raw materials productivity measure from 2019 to 2020 was -0.53%
The multifactor labor and raw materials productivity measure is calculated by the formula:
= Sales / (Raw materials + labor)
In 2019 this was:
= 300,000 / (40,000 + 45,000)
= 3.5294
In 2020 it was:
= 330,000 / (43,000 + 51,000)
= 3.5106
The percentage difference is:
= (3.5106 - 3.5294) / 3.5294
= -0.0188 / 3.5294
= -0.53 %
The percentage change was therefore -0.53%.
Find out more at https://brainly.com/question/14936908.
The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils: Sales $278,670 Gross profit 162,460 Cost of goods manufactured 139,340 Indirect labor 60,470 Factory depreciation 9,200 Materials purchased 85,830 Total manufacturing costs for the period 160,240 Materials inventory, ending 11,430Using the above information, determine the following missing amounts a. Cost of goods sold b. Finished goods inventory at the end of the month c. Direct materials cost d. Direct labor cost e. Work in process inventory at the end of the month
Answer:
a. Cost of Goods sold:
= Sales - Gross profit
= 278,670 - 162,460
= $116,210
b. Finished goods:
= Cost of Goods manufactured - Cost of goods sold
= 139,340 - 116,210
= $23,130
c. Direct materials cost
= Materials purchased - Ending materials inventory
= 85,830 - 11,430
= $74,400
d. Direct labor cost:
= Manufacturing costs - Direct materials cost - Factory overheads
= 160,240 - 74,400 - (Indirect labor + Depreciation)
= 160,240 - 74,400 - (60,470 + 9,200)
= $16,170
e. Work in process:
= Manufacturing costs - Cost of Goods manufactured
= 160,240 - 139,340
= $20,900
Compute the Cost of Goods Sold for 2016 using the following information: Direct Materials, Jan. 1, 2016$50,000 Work-in-Process, Dec. 31, 2016 74,500 Direct Labor 58,500 Finished Goods, Dec. 31, 2016 125,000 Finished Goods, Jan. 1, 2016 158,000 Manufacturing Overhead 79,500 Direct Materials, Dec. 31, 2016 63,000 Work-in Process, Jan. 1, 2016 107,000 Purchases of Direct Material 95,000
Answer:
COGS= $154,500
Explanation:
First, we need to calculate the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 50,000 + 95,000 - 63,000= $82,000
cost of goods manufactured= 74,500 + 82,000 + 58,500 + 79,500 - 107,000
cost of goods manufactured= $187,500
Now, the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 125,000 + 187,500 - 158,000
COGS= $154,500
Corporation ABC invested in a project that will generate $60,000 annual after-tax cash flow in years 0 and 1 and $40,000 annual after-tax cash flow in years 2, 3, and 4. Compute the NPV of these cash flows assuming that:
a. ABC uses a 10 percent discount rate.
b. ABC uses a 7 percent discount rate.
c. ABC uses a 4 percent discount rate.
Answer:
a. $204,940
b.$214,180
c. $224,480
Explanation:
a. Computation for the NPV of these cash flows assuming that ABC uses a 10 percent discount rate.
NPV= $60,000 + 0.909($60,000) + 0.826($40,000) + 0.751($40,000) + 0.683($40,000)
NPV=$60,000+$54,540+$33,040+$30,040+$27,320
NPV = $204,940
Therefore the NPV of these cash flows assuming that ABC uses a 10 percent discount rate is $204,940
b. Computation for the NPV of these cash flows assuming that ABC uses a 7 percent discount rate.
NPV=$60,000 + 0.935($60,000) + 0.873($40,000) + 0.816($40,000) + 0.763($40,000)
NPV=$60,000+$56,100+$34,920+$32,640+$30,520
NPV= $214,180
Therefore the NPV of these cash flows assuming that ABC uses a 7 percent discount rate is $214,180
c. Computation for the NPV of these cash flows
assuming that ABC uses a 4 percent discount rate.
NPV=$60,000 + 0.962($60,000) + 0.925($40,000) + 0.889($40,000) + 0.855($40,000)
NPV=$60,000+$57,720+$37,000+$35,560+$34,200
NPV= $224,480
Therefore the NPV of these cash flows
assuming that ABC uses a 4 percent discount rate is $224,480
Sales of hot dogs at the corner of 24th and Lex. follow the following patterns: 40% of the days, 80 are sold; 50% of the days, 90 are sold; and the remaining days,100 are sold. Given the vendor plans to stock 90 each day, What approx. expected CSL is the vendor targeting
Answer: 90%
Explanation:
Cycle Service Level refers to the expected probability by which a manufacturer meets the demand for a particular product and is not being stockout.
In this case,
40% of the days, 80 are sold;
50% of the days, 90 are sold
10% of the days; 100 are sold.
Since the vendor plans to stock 90 each day, then the vendor will meet demand during 40% of the days, when 80 are sold; and during 50% of the days, when 90 are sold.
Therefore, the expected CSL is the vendor targeting will be:
= 40% + 50%
= 90%
You are considering purchasing a bond with 18 years to maturity, a $1,000 face value and a 5% coupon rate with interest paid semiannually. Interest rates on bonds in this risk class have dropped to 3% and you expect that this bond will be called in 3 years. The current price of the bond is $1,075.00. Assuming you would be paid one year's worth of interest as a premium if the bond is called, what is the yield to call on this bond?
a. 5.43%.
b. 3.91%.
c. 0 2.93%.
d. 1.86%.
Answer:
b. 3.91%.
Explanation:
The computation of the yield to call is given below
Given that
NPER = 3× 2 = 6
PMT = $1,000 × 5% ×1 ÷2 = $25
PV = $1,075
FV = $1,000 + $50 = $1,050
The formula is given below:
=RATE(NPER,PMT,-PV,FV,TYPE)
After applying the above formula, the yield to call is
= 1.9565% × 2
= 3.91%
At the end of January, Mineral Labs had an inventory of 945 units, which cost $11 per unit to produce. During February the company produced 1,750 units at a cost of $15 per unit.
a. If the firm sold 2,550 units in February, what was the cost of goods sold?
b. If the firm sold 2,550 units in February, what was the cost of goods sold?
Answer: $34,470
Explanation:
a. Cost of goods sold for $2,550 units
The inventory sold will include the 945 units which cost $11 to produce.
It will get the rest from the 1,750 units which cost $15 to produce.
The remaining units are:
= 2,550 - 945
= 1,605 units
Total cost of goods sold:
= (945 * 11) + (1,605 * 15)
= 10,395 + 24,075
= $34,470
Suppose Ruston Company had the following results related to cash flows for 2020: Net Income of $9,100,000 Adjustments from Operating Activities of $1,100,000 Net Cash Flow from Investing Activities of -$4,300,000 Net Cash Flow from Financing Activities of $3,400,000 Create a statement of cash flows with amounts in thousands. What is the Net Cash Flow
Answer:
The Net Cash Flow is $9,300,000.
Explanation:
A statement of cash flows with amounts in thousands can be created to determine the Net Cash Flow as follows:
Ruston Company
Statement of Cash Flows
For the Year 2020
Details $'000
Net Income 9,100
Adjustments from Operating Activities 1,100
Net Cash Flow from Operating Activities 10,200
Net Cash Flow from Investing Activities (4,300)
Net Cash Flow from Financing Activities of 3,400
Net Cash Flow 9,300
Since the amount is in thousands, that implies that the Net Cash Flow is $9,300,000.
During the economic downturn of 2008-2009, the Federal Reserve a. took the unusual step of using open-market operations to purchase mortgages and corporate debt. b. explicitly set its target rate of inflation well above zero. c. used open-market operations to purchase mortgages and corporate debt, just as it frequently does even when the economy is functioning normally. d. explicitly set its target rate of inflation at zero.
Answer: a. took the unusual step of using open-market operations to purchase mortgages and corporate debt.
Explanation:
During the Great Recession of 2008 - 2009, the Fed realized that it could not sit idly by as it had done during the Great Depression of 1929 and so decided to take some drastic measures to rescue the financial system.
One such measure was the use of open market operations to buy mortgages and corporate debt. The Mortgage market crashing primarily the cause of the crises so the Fed bough them up trying to prop up the market with the hope that the real estate market would begin to recover.
what are the benefits of intrapreneurship to the Country
What happens when employees interact with policies, processes, and technologies and perform their role in the organization?
What routine do the workers of the Party go through each day, which is a great example of herd-poisoning
Question is incomplete but here's what herd poisoning means so you could relate it
Answer and Explanation:
Herd poisoning occurs when an individual loses his sense of self amidst the crowd. The individual is like an ant following in the order of the whole group. There is less reasoning individually and more of what the group decides. Herd poisoning is like an intoxifying excitement and power that a person experiences by associating or giving away his sense of individuality and reasoning to the crowd. For this person, it is no longer about him but the group as a whole and whatever actions or reasoning are handled by the group together. It is a sort of negative mob mentality.
Identify the following costs as a prime cost, conversion cost, or both for an automobile manufacturer: a. Wages of employees that operate painting equipment b. Wages of the plant manager Prime cost c. Steel d. Oil used for assembly line machinery
Answer and Explanation:
The classification is shown below:
a. It is both prime and conversion cost
b. It is a conversion cost
c. It is a prime cost
d. It is a conversion cost
In this way these four transactions should be classified as the prime cost, conversion cost or both
The same should be considered and relevant
The market shares of the top five firms in the dishware industry are 18%, 32%, 11%, 14%, and 8%. What is the four-firm concentration ratio for the dishware industry
Answer:
75%
Explanation:
Calculation to determine the four-firm concentration ratio for the dishware industry
Four-firm concentration ratio =18%+32%+11%+14%
Four-firm concentration ratio=75%
Therefore the four-firm concentration ratio for the dishware industry is 75%
Brewery Company’s debt to Credit Service is past due. Credit obtains a judgment against Brewery, but the firm refuses to pay. Credit asks the court to order the seizure of Brewery’s property. This is a request for
Answer:
mechanic's lien
Explanation:
From the question we are informed about how Brewery Company’s debt to Credit Service is past due. Credit obtains a judgment against Brewery, but the firm refuses to pay. Credit asks the court to order the seizure of Brewery’s property. In this case, This is a request for mechanic's lien.
Mechanic's lien can be regarded as security interest as regards title of a particular property, this is for the gains of everyone that are involved in supplier of labor as well as materials for the improvement of the property. The lien covers the real property as well as personal property. Mechanic's lien can be regarded as guarantee of payment for contractors as well as construction firms that are involved in building or repairing of structures.
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $12,000 cash and $51,600 of photography equipment in the company in exchange for common stock. 2 The company paid $3,900 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,280 cash. 20 The company received $3,700 cash in photography fees earned. 31 The company paid $878 cash for August utilities. Prepare general journal entries for the above transactions.
Answer and Explanation:
The journal entries are shown below:
(i) On August 1,
Cash A/c Dr. $12,000
photography equipment A/c Dr. $51,600
To common stock $63,600
(Being the issuance of common stock for cash and photography equipment is recorded)
(ii) On August 2,
Prepaid insurance A/c Dr. $3,900
To cash $3,900
(Being the cash paid in advance for insurance is recorded)
(iii) On August 5,
Office supplies A/c Dr. $2,280
To cash $2,280
(Being the cash paid for office supplies is recorded)
(iv) On August 20,
Cash A/c Dr. $3,700
To photography fees earned $3,700
(Being the photography fees earned is recorded)
(v) On August 31,
Utilities A/c Dr. $878
To cash A/c $878
(Being the cash paid for utilities)
