Answer:
$100,000
Explanation:
Data provided
Perpetual cash flow = $10,000
Discount rate = 10%
According to the given situation, the computation of Present value of this inginite sequence of cash flow is shown below:-
Present value = Perpetual cash flow ÷ discount rate
= $10,000 ÷ 10%
= $10,000 ÷ 0.1
= $100,000
Therefore for computing the present value we simply applied the above formula.
Brik Products, located in Atlanta, Georgia, produces two lines of electric toothbrushes, Deluxe and Standard. Because Brik can sell all the toothbrushes it produces, the owners are expanding the plant. They are deciding which product line to emphasize. To make the decision, they assemble the following data.
Per Unit
Deluxe Toothbrush Standard Toothbrush
Sales price $94 $54
Variable expenses 22 16
Contribtion margin $72 $36
Contribution margin ratio 75.5% 70.4%
Requirements:
1) Identify the constraining factor for Brik products.
2) Prepare an analysis to show which product line to em
Complete Question:
Brik Products, located in Atlanta, Georgia, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brik can sell all the toothbrushes it produces, the owners are expanding the plant. They are deciding which product line to emphasize. To make this decision, they assemble the following data:
Per Unit
Deluxe Toothbrush Standard Toothbrush
Sales price $94 $54
Variable expenses 22 16
Contribution margin $72 $36
Contribution margin ratio 75.5% 70.4%
After expansion, the factory will have a production capacity of 4.200 machine hours per month. The plant can manufacture either 68 Standard electric toothbrushes or 26 Deluxe electric toothbrushes per machine hour.
Requirements:
1. Identify the constraining factor for Brik Products.
2. Prepare an analysis to show which product line to emphasize.
Answer:
Brik Products
1. The constraining factor for Brik Products is the 4,200 machine hours.
2. Analysis to show which product line to emphasize:
Product Mix Analysis
Deluxe Standard
Sale price $94 $54
Variable expense 22 16
Contribution margin per unit $72 $38
Number of toothbrushes per hour 26 68
Total contribution margin per hour $1,872 $2,584
Decision: Brik Products should emphasize the production and sale of the Standard electric toothbrushes as this rakes in more contribution per the constraining factor, i.e. machine hours.
Explanation:
a) Data and Calculations:
Deluxe Standard
Sale price $94 $54
Variable expense 22 16
Contribution margin per unit 72 38 (not $36)
Contribution margin ratio 76.6% (not 75.5%) 70.4%
Number of toothbrushes per hour 26 68
Machine hours available = 4,200 hours
b) Analysis:
For Brik Products, the contribution margin per machine hour = contribution per unit x units per hour. Brik will generate a total contribution margin per product line without producing the other that is equal to the contribution margin per machine hour multiplied by total machine hours.
Assuming that Brik Products concentrates on the production of the standard electric toothbrushes alone, it will generate a total contribution margin of $10,852,800 ($2,584 x 4,200) as against the total contribution margin of $7,862,400 ($1,872 x 4,200) to be generated if only Deluxe electric toothbrushes are produced.
Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it. She accepts and hands the book to Vince. Sun-Hi's delivery of the book is
Answer:
Vince and Sun-Hi's Book
With Sun-Hi's delivery of the book, the offer by Vince is accepted by Sun-Hi.
Acceptance of an offer is necessary to make a contract.
Explanation:
An offer by Vince is not a contract, but its acceptance by Sun-Hi without a counter-offer makes it a valid contract that can be enforced in law if other ingredients for a valid contract are present. Acceptance establishes the agreement between Vince and Sun-Hi. Once Sun-Hi accepts Vince's offer with valid considerations (the book and double the price), the agreement for a business transaction between them is consummated. It is acceptance that completes the exchange of promises in this simple contract.
If sales are $803,000, variable costs are 66% of sales, and operating income is $262,000, what is the contribution margin ratio
Answer:
34%
Explanation:
The formula to calculate the contribution margin ratio is:
Contribution margin ratio= (Sales – variable expenses)/sales
Sales=$803,000
Variable expenses=$803,000*66%=$529,980
Now, you can replace the values:
Contribution margin ratio=($803,000-$529,980)/$803,000
Contribution margin ratio=0.34
According to this, the answer is that the contribution margin ratio is 34%.
On October 10, the stockholder's equity of Sherman Systems appears as follows:
Common stock–$10 par value, 72,000 shares authorized,
issued, and outstanding $720,000
Paid-in capital in excess of par value, common stock 216,000
Retained earnings 864,000
Total stockholders’ equity $1,800,000
1. Prepare journal entries to record the following transactions for Sherman Systems.
1A. Purchased 5,000 shares of its own common stock at $25 per share on October 11.
1B. Sold 1,000 treasury shares on November 1 for $31 cash per share.
1C. Sold all remaining treasury shares on November 25 for $20 cash per share.
2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.
Answer and Explanation:
The journal entries are shown below:
1A. Treasury Stock (5,000 × $25) $75,000
To Cash $75,000
(Being the purchased of its own common stock is recorded)
1B. Cash (1,000 × $31 shares) $31,000
To Treasury Stock (1,000 × $25) $25,000
To Paid-in Capital from Sale of Treasury Stock $6,000
(Being the sale of treasury stock is recorded)
1C. Cash (4,000 × $20) $80,000
Paid-in Capital from Sale of Treasury Stock $6,000
Retained Earnings $14,000
To Treasury Stock 99,000 (4,000 × 25) $100,000
(Being the sale of treasury stock is recorded)
2. The preparation of the revised equity section of its balance sheet is presented below:
Common stock 36,000 shares authorized, issued $720,000
Paid in capital in excess of par value
, common stock. $216,000
Retained Earnings. $864,000
Less: Treasury Stock - 5,000 shares -$75,000 $789,000
Total stockholders' equity $1,725,000
If we had a situation of Diminishing Marginal Productivity, then this would be great news for the firm. Senior management loves this kind of cost reduction outcome.
True or False
Answer:
The correct answer is the second option: False.
Explanation:
To begin with, the well known term of "Diminishing Marginal Productivity" is understood to be an economic law whose main purpose is to explain that given a certain level of an input, the production of the company will start to go down eventually after adding more and more of that variable. Therefore that this theory states that when a company adds more of a factor of production, everything else constant, when it reaches a certain level that input will start to affect the output of the good and with it the profits of the business. That is why that if the company is in a situation of diminishing marginal productivity the senior management would not be pleased.
Zycon has produced 10,000 units of partially finished Product A. These units cost $20,000 to produce, and they can be sold to another manufacturer for $12,000. Instead, Zycon can process the units further and produce finished Products X, Y, and Z. Processing further will cost an additional $16,000 and will yield total revenues of $30,000.Required:Identify weather the tem is relevant or irrelevant to the sew or process further decision.
Answer:
1. $20,000 cost already incurred to a produce. - Irrelevant
This cost has already been incurred in the initial production and as such are classified as sunk costs. Sunk costs are not relevant to the decision on whether to sell or process the product further.
b. $12,000 selling price - Relevant
As this amount relates to the selling price were the product not to be processed further, it is relevant to the sell or process the products further decision.
c. $16,000 additional processing costs - Relevant
This is the incremental cost should the product be processed further and so is relevant to the decision.
d. $30,000 revenues from processing further. - Relevant.
As the total revenue that could be realized if the product is processed further, this is very relevant to the decision on whether to process further or sell.
A project that provides annual cash flows of $2,700 for nine years costs $8,800 today.
Requirement 1:A. At a required return of 9 percent, what is the NPV of the project?
B. At a required return of 28 percent, what is the NPV of the project?
C. At what discount rate would you be indifferent between accepting the project and rejecting it?
Answer:
A. $8,187.17
B. $597.38
C. 30%
Explanation:
Calculate the Net Present Value of the Project at the Required Return of 9%
The following is the calculation of NPV using a financial calculator :
($8,000) CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
9.00 % i/yr
Shift NPV $8.187.1666 or $8,187.17
Calculate the Net Present Value of the Project at the Required Return of 9%
The following is the calculation of NPV using a financial calculator :
($8,000) CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
28.00 % i/yr
Shift NPV $597.3765 or $597.38
You will be indifferent between accepting the project and rejecting it at the internal rate of return. The Internal Rate of Return is the interest rate that makes the Present Vale of Cash Flows to equal the Initial Cost of the Investment.
Use the Data given to find the Internal Rate of Return :
($8,000) CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
Shift IRR 30%
g The company plans a 4-for-1 stock split. How many shares will you own and what will the share price be after the stock split?
Answer: 14,400; $17
Explanation:
Stock splits are a strategy by firms to increase the liquidity of their shares especially when they are trading at a high price. The firm divides the stock by a certain number thus increasing the number of shares by the multiple of the number. This action will divide the price of the stock and thus allow for more trade as they are cheaper.
A 4-for- stock split means that each share will become 4.
Your total number of share will become;
= 4 * 3,600
= 14,400 shares
The new price will be;
= 68/4
= $17 per share
Where can a Master Admin Accountant User view the apps connected to a client’s QuickBooks Online account from within QuickBooks Online Accountant?
Answer:
The answer is below
Explanation:
A Master Administrator is normally the individual who is tasked at establishing the company file in QuickBooks Online.
In other words, Master Admin possesses access to all portions of the company file and can grant authorizations and access to other users.
Therefore, a Master Admin Accountant User can view the apps connected to a client’s QuickBooks Online account from within QuickBooks Online Accountant by doing the following:
1. Go to Settings
2. Select Manage Users.
3. Select Accounting firms.
4. Under the Company section, Select View Apps.
Answer:
Left Navigation Bar > Apps > Client Apps
Explanation:
The federal government doesn't have a capital budget; however, private enterprises do have a capital budget and when they invest in productive assets such as machinery it is recorded in their capital budget as an asset. What is one of the explanations why the federal government's investments are not discussed in relation to a capital budget and recorded as an asset like a private enterprise's investments are
Answer:
Hello the options in regards to your question is missing attached below is the complete question
Answer : Private enterprise's investments are in assets that are meant to increase production, which are going to earn revenues and pay for themselves. Thus, private enterprise's spending is unambiguously going towards investments. It is very difficult to determine when the federal government's spending is an investment. ( B )
Explanation:
The federal government's investments are not discussed in relation to a capital budget and recorded as an asset because It is very difficult to determine when the federal government's spending is an investment, because Federal Government is not actually designed to operate as a business entity
Gladiator USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose USA can expect warranty costs during the five-year period to add up to of sales. Assume that a USA dealer in Denver, Colorado, made sales of during 2018. Gladiator USA received cash for % of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled during 2018. Record the sales, warranty expense, and warranty payments for Gladiator USA.
Answer:
DR Cash............................................$96,450
DR Notes receivable........................$546,550
CR Sales revenue...................................................$643,000
(To record sales)
DR Warranty expense .............................$32,150
CR Warranty liability.................................................$32,150
(To record Warranty Expense)
DR Warranty liability.................................$20,000
CR Cash......................................................................$20,000
(To record Warranty Claim Payments)
Explanation:
Cash = 15% * $643,000
= $96,450
Notes Receivable = 643,000 - 96,450
= $546,550
Warranty Expense = 5% x $643,000
= $32,150
Find the net present value of a project that has cash flows of −$12,000 in Year 1, +$5,000 in Years 2 and 3, −$2,000 in Year 4, and +$6,000 in Years 5 and 6. Use an interest rate of 12%. Find the interest rate that gives a net present value of zero.
Answer:
NPV = $2,000
IRR = 19.19%
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only firms with a positive NPV should accept the project because a negative NPV indicates that the project would be unprofitable for the firm
the interest rate that gives a net present value of zero is the IRR
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a financial calculator
Cash flow for year 1 = −$12,000
Cash flow for year 2 = $5,000
Cash flow for year 3 = $5,000
Cash flow for year 4 = −$2,000
Cash flow for year 5 = $6,000
Cash flow for year 6 = $6,000
I = 12%
NPV = $2,000
IRR = 19.19%
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Cara Industries incurred the following costs for 50,000 units:
Variable costs $90,000
Fixed costs 120,000
Cara has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4,250 for shipping.
If Cara wants to break even on the order, what should the unit sales price be?
A. $4.2
B. $5.05
C.$1.8
D. $2.65
Answer:
Selling price= $2.65
Explanation:
Because it is a special offer, and there is unused capacity, we will take into account only the incremental fixed costs.
First, we need to calculate the unitary variable cost:
Unitary variable cost= 90,000/50,000= $1.8
Now, we can determine the total unitary cost and the selling price per unit:
Total unitary cost= (4,250/5,000) + 1.8= $2.65
Selling price= $2.65
Fetzer Company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8,000 shares in treasury stock. The journal entry to record the payment of the dividend is:
Answer:
Please see journals below
Explanation:
Retained earnings Dr $104,000
Common dividend payable Cr $104,000
Common dividend payable Dr $104,000
Cash Cr. $104,000
Retained earnings Dr $100,100
Common dividends payable Cr $100,100
Common dividends payable Dr $100,100
Cash Cr $100,100
Retained earnings Dr $110,000
Common dividends payable Cr $110,000
Working
Dividends payable
= 190,000 × $0.55
= $104,000
Common dividend payable
= $0.55 × (190,000 shares - 8,000 shares)
= $100,100
Mojo Mining has a bond outstanding that sells for $2,120 and matures in 18 years. The bond pays semiannual coupons and has a coupon rate of 6.66 percent. The par value is $2,000. If the company's tax rate is 40 percent, what is the aftertax cost of debt?
A. 3.96%
B. 6.24%
C. 5.82%
D. 3.66%
E. 3.45%
Answer:
D. 3.66%
Explanation:
For computing the after tax cost of debt we need to apply the RATE formula i.e to be shown in the attachment
Given that,
Present value = $2,120
Future value or Face value = $2,000
PMT = $2,000 × 6.6% ÷ 2 = $66.60
NPER = 18 years × 2 = 36 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 3.05% × 2 % = 6.10%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 6.10% × ( 1 - 0.40)
= 3.66%
Suppose that you have an old car that is a real gas guzzler. It is 10 years old and could be sold to a local dealer for $ cash. The annual maintenance costs will average $ per year into the foreseeable future, and the car averages only miles per gallon. Gasoline costs $ per gallon, and you drive miles per year. You now have an opportunity to replace the old car with a better one that costs $. If you buy it, you will pay cash. Because of a 2-year warranty, the maintenance costs are expected to be negligible. This car averages miles per gallon. Should you keep the old car or replace it? Utilize a 2-year comparison period and assume that the new car can be sold for $ at the end of year 2. Assume that the salvage value of the old car at the end of year 2 will be $0. Ignore the effect of income taxes and let your MARR be %.
Answer:
you should replace the old car with a newer and more efficient one
Explanation:
all the numbers are missing, so I looked them up:
current sale value of old car $400
maintenance costs per year $800
gasoline expense per year = $3.50 x 1/10 x 15,000 = $5,250
resale value in 2 years = $0
cost of replacing old car = $8,000
maintenance costs per year $0
gasoline expense per year = $3.50 x 1/30 x 15,000 = $1,750
resale value in 2 years = $5,000
MARR = 15%
if you keep the old car, your net cash flows will be:
Year 1 = -$6,050
Year 2 = -$6,050
if you change your car, your net cash flows will be:
Year 0 = -$8,000 + $400 = -$7,600
Year 1 = -$1,750
Year 2 = $3,250
keeping the old car results in a NPV = -$6,050/1.15 - $6,050/1.15² = -$5,260.87 - $4,574.67 = -$9,835.54
changing for a new car results in a NPV = -$7,600 -$1,750/1.15 + $3,250/1.15² = -$7,600 -$1,521.74 + $2,457.47 = -$6,664.27
since both options result in negative cash flows, we must select the option that results in a smaller loss
Given the following data: Average operating assets $ 504,000 Total liabilities $ 23,520 Sales $ 168,000 Contribution margin $ 85,680 Net operating income $ 45,360 Return on investment (ROI) is:
Answer:
9%
Explanation:
According to the given situation, the solution of return on investment is shown below:-
Return on investment = (Net operating income ÷ Average operating assets) × 100
now, we will put the values into the above formula
= ($45,360 ÷ $504,000) × 100
= 0.09 × 100
= 9%
Therefore for computing the return on investment we simply applied the above formula.
The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to be constant at 27.5% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price
Answer:
36.38
Explanation:
The Current stock price can be calculated by identifying Present value of dividends in all three years adding terminal value of dividends in year 3.
Year Dividend Growth Dividend PV factor Present Values
1 1.25 127.5% 1.59 0.900901 1.43
2 1.59 127.5% 2.03 0.811622 1.64
3 2.03 127.5% 2.59 0.731191 1.88
3 42.987(w) 0.731191 31.43
Total PV 36.38
Current Dividend = 2.59
Rate of return = 11.00%
Growth Rate = 6.00%
Terminal value = Current Dividend*(1+Growth rate)/(Rate of return-Growth Rate)
Terminal value = 2.59 x (1+0.06) / (0.11-0.06)
Terminal value =42.987
Current stock price = 1.43 +1.64+1.88+31.43
Current stock price = 36.38
___________is a partnership Is also called the articles of incorporation.
a) Is the same as a limited liability partnership.
b) Is not binding unless it is in writing.
c) Is binding even if it is not in writing.
d) Does not generally address the issue of the rights and duties of the partners.
Answer:
c
Explanation:
here is the correct question :
A partnership agreement:
A. Is not binding unless it is in writing.
B. Is the same as a limited liability partnership.
C. Is binding even if it is not in writing.
D. Does not generally address the issue of the rights and duties of the partners.
E. Is also called the articles of incorporation.
A partnership agreement is a contract between partners in a partnership. it contains guidelines on the relationship between the partners and responsibilities of partners. the partnership agreement creates legally binding relationships among the partners
A bond issue with a face amount of $1,200,000 bears interest at the rate of 9%. The current market rate of interest is 10%. These bonds will sell at a price that is:
Answer: The selling price of the bond will be less than $1,200,000
Explanation:
From the question, we are informed that a bond issue with a face amount of $1,200,000 bears interest at the rate of 9% and that the current market rate of interest is 10%.
Since the market rate is 10% which is higher than coupon rate of 9%, this means that the market price for the bond will be smaller than the bond's face value.
Therefore, the selling price of the bond will be less than $1,200,000.
You have gathered the following information on your investments. What is the expected return on the portfolio? Stock Number of Shares Price per Share Expected Return F 310 $ 40 13.32 % G 315 $ 26 10.05 % H 255 $ 52 10.59 %
Answer:
Expected return on the portfolio = $3,879.00
Explanation:
a) Data and Calculations:
Stock Number of Shares Price per Share Expected Return Expected
Value
F 310 $ 40 13.32 % $1,651.68
G 315 $ 26 10.05 % $823.09
H 255 $ 52 10.59 % $1,404.23
Total 880 $3,879.00
b) The expected return on the portfolio is the addition of the expected returns of each class of shares. This is obtained by multiplying the number of shares in each class with the price and the expected return in percentage. This gives a weighted value for the class of shares, which are then added to obtain the expected return on the portfolio.
Managers of an American television network have been told they need to employ a localization strategy if they want to break into the European and Australian markets. What specifically should they do to implement this strategy
Answer:
they will need to follow the television viewing habits,and cultural differences in the locality.
Explanation:
This is very important so as to determine what would work best in each region. An extensive research into television habits as well as cultural norms would need to be carried out.
For example, program schedule times may need adjustments based on a different viewing time.
Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional questions. Career Connection: Shin-fong How does Shin-fong keep track of his finances?
Answer:
By means of a budget he prepared.
Explanation:
According to the information available, Shing-fong has a carefully thought out strategy. Here's some of what he does;
he keeps tracks of his finances by means of a budget plan.he views all his transactions also checking his debit or credit cards to keep track of how much he spendsShing-Fong avoids eating out as much as he used to and preparing cheaper food at home.he also avoids unnecessarily spending with friends whenever he is invited.Harry Company sells 20,000 units at $42 per unit. Variable costs are $26.88 per unit, and fixed costs are $105,800. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Harry Company sells 20,000 units at $42 per unit. Variable costs are $26.88 per unit, and fixed costs are $105,800.
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= contribution margin / selling price
contribution margin ratio= (42 - 26.88) / 42
contribution margin ratio= 0.36
Now, the contribution margin:
Contribution margin= 42 - 26.88= $15.12
Finally, income from operations:
Contribution margin= 20,000*15.12= 302,400
Fixed costs= (105,800)
Net operating income= 196,600
Red Sun Rising just paid a dividend of $2.43 per share. The company said that it will increase the dividend by 15 percent and 10 percent over the next two years, respectively. After that, the company is expected to increase its annual dividend at 4.1 percent. If the required return is 11.5 percent, what is the stock price today
Answer:
P0 = $39.76
Explanation:
The dividend discount model or DDM can be used to calculate the price of the share today. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of this stock under this model can be calculated as follows,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1) * (1+g2) / (1+r)^2 +
[ (D0 * (1+g1) * (1+g2) * (1+g3) / (r - g3)) / (1+r)^2 ]
Where,
g1 is the growth rate in the first year which is 15% g2 is the growth rate in the second year which is 10% g3 is the constant growth rate which is 4.1% r is the required rate of return P0 is the stock price today
P0 = 2.43 * (1+0.15) / (1+0.115) + 2.43 * (1+0.15) * (1+0.1) / (1+0.115)^2 +
[ (2.43 * (1+0.15) * (1+0.1) * (1+0.041) / (0.115 - 0.041)) / (1+0.115)^2 ]
P0 = $39.76
The following data was collected from the manufacturing of an auto component. It represents the diameter (in mm) of that component. What is the LCL for a control chart using this data (z=3)?Sample Obs 1 Obs 2 Obs 3 Obs 41 10 12 12 142 12 11 13 163 11 13 14 144 11 10 7 85 13 12 14 13
Answer:
9.37
Explanation:
The computation of LCL for a control chart is shown below:-
Sample Obs 1 Obs 2 Obs 3 Obs 4 Mean observation Range
1 10 12 12 14 12 4
2 12 11 13 16 13 5
3 11 13 14 14 13 3
4 11 10 7 8 9 4
5 13 12 14 13 13 2
For computing the mean observation and range we will use the below formulas
Mean observation = ( Obs 1 + Obs 2 + Obs 3 + Obs 4) ÷ 4
Range = Highest value - Lowest value
[tex]LCL = \bar{\bar{X}} - A2 \bar{R}[/tex]
[tex]\bar X[/tex] = ( 12 + 13 + 13 + 9 + 13 ) ÷ 5
= 12
[tex]\bar R[/tex] = ( 4 + 5 + 3 + 4 + 2 ) ÷ 5
= 3.6
Since we found the value of A2 with the help of constants table for control charts for a 4 subgroup size.
A2 = 0.729
[tex]LCL = \bar{\bar{X}} - A2 \bar{R}[/tex]
12 - 0.729 × 3.6
= 9.37
Effectiveness of a solution is equal to:_______
a. Quality of a Solution 20% (x) Acceptability of the Solution 80%
b. Quality of a Solution 80% (x) Acceptability of the Solution 20%
c. Quality of a Solution 10% (x) Acceptability of the Solution 90%
d. Quality of a Solution 90% (x) Acceptability of the Solution 10%
e. None of the above
Answer:
a. Quality of a Solution 20% (x) Acceptability of the Solution 80%
Explanation:
We say that a solution is effective i.e 100%, when it has a 20% of its quality and 80% of its acceptability.
A solution is effective when it has a 100% effect. The application of a solution to a problem which yields 100% effect is said to be effective and acceptable.
The scale used is the relationship given as:
Effectiveness of a solution = Quality of a Solution 20% (x) Acceptability of the Solution 80%
Common stock is called a hybrid security because it takes on the attributes of both preferred stock and bonds.
a. True
b. False
Answer:
false
Explanation:
examples of hybrid stocks is convertible preferred shares
A common stock is a stock that entitles owners of the stock to a fixed amount of shares and holders of the stock are owners of the company where the stock is bought.
Answer:
a. True
Explanation:
In most stocks that attributes of both bonds and preferred stock, it is referred to as a hybrid security. Most organisations and the government recognized it as a medium of security in situations of seeking for loan.
"A customer has an existing margin account and wants to write five covered calls against 500 shares of stock in the account. The margin requirement to write the calls is:"
Answer: 0
Explanation: The sale of the stock call, would be covered by the ownership of the stock ( someone who owns the said stock). The required margin needed to sell the stock would be ‘0’ since there is no evidence that points to any available risks on the short calls. as short calls helps to predict of prices would drop or not.
Webster Corporation's monthly projected general and administrative expenses include $5,600 administrative salaries, $3,000 of other cash administrative expenses, $1,650 of depreciation expense on the administrative equipment, and .5% monthly interest on an outstanding bank loan of $16,000. Compute the total general and administrative expenses to be reported on the general and administrative expense budget per month.
Answer:Total general and administrative expenses budget per month =$10,250
Explanation:
Total general and administrative expenses are the compulsory costs to ensure that a company's day to day operations is maintained whether or not the company is making profit.
General and administrative expenses includes Rent, Utility bills, insurance wages and benefits, depreciation of office furnitures, Office supplies and are regarded as operating expenses and therefore interest paid on a bank loan is not an operating expenses but a financing activities and will not be considered as an administrative expense.
Administrative expenses= administrative Salaries+Other cash administrative expenses+Depreciation
=$5,600+$3,000+$1,650
=$10,250
