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:

The answer is $18.29

Explanation:

We have many formulas to arriving at the stock price but here we use Gordon growth model.

Formula for getting stock price is:

D1/r - g

Where:

D1 - is the next year dividend or expected dividend to be paid next.

r is the rate of return

g is the growth rate

$0.75/0.105 - 0.064

$0.75/0.041

$18.29.

Therefore, the stock's current price is $18.29

Answer:

True

Explanation:

The cost was bigger than they had budgeted for, so it was an unfavorable variance.

Answer:

None of the options are correct.

Explanation:

We start by calculating the net change of the treasury bond position.

= $95,125 - $95,000

= $125

The long treasury bond position gains $125 after a month.

We will also calculate the net change of the treasury bond futures contract.

= $94,125 - $95,187.50

= -$1,062.50

Therefore, Net profits is;

= $125 - $1,062.50

= -$937.50

Answer: The person fills "silence" during conversations

Explanation:

Culture is simply regarded as people's way of life. The way if life include their food, the kind of music they listen to, their religion, language, their beliefs, values etc.

Someone who is not culturally competent in working with others from different cultures would usually be silent during conversations. This is because the person doesn't know much about the culture and can't really be involved in the conversation.

Answer and Explanation:

1. At 0fficial exchange rate:

100 * 0.5 = $50

what I want to buy would be purchased at $50

at market exchange rate:

0.25 x 100 = $25

products bought from this place are not a good deal as I am paying more than the market exchange rate.

2. at equilibrium exchange rate:

100 x 0.25% = $25

the price is $25

3. from answers 1 and 2, I will not want demand Stan's rupees. the products are costly to get.

4. Stan's currency is obviously overvalued. the people from this country now has increased purchasing power so they can purchase goods in dollars, therefore they would be supplying their currency.

5. They will have to buy up the surplus of rupees so that they can easily keep up with maintaining the rupee at half a dollar.

Answer:

Under CAPM:

Re = Rf + Beta(Rm - Rf)

Rf = 5%

Rm - Rf = 6%

Beta = 1.25

Re = 5% + (1.25 x 6%) = 12.5%

Under dividend discount model:

Re = (Div₁ / P₀) + g

Div₁ = $1.20

P₀ = $35

g = 8%

Re = ($1.20 / $35) + 8% = 11.43%

Under bond yield plus risk premium approach:

Re = Pre-tax cost of debt + risk premium over its own debt

Pre-tax cost of debt = 7%

risk premium over its own debt = 4%

Re = 7% + 4% = 11%

The highest cost of equity results from the CAPM model and it is 12.5% while the lowest results from using the bond yield plus risk approach (11%), the difference is 1.5% between them.

Answer:

Government spending required  = $2 billion

Explanation:

The required amount of GDP to achieve the full employment GDP =

Potential GDP - Actual

that is 20 - 12 = $8 billion.

But note that a government spending of less than $8 billion would be required to achieve an increase of 8 billion in real GDP. This is so because of   expenditure multiplier effect.

The expenditure multiplier is the amount by which the aggregate output would increase with an increase in any of the expenditure components.

It is calculated as follows;

Multiplier = 1/(1-MPC)

For this question ,

Expenditure multiplier = 1/(1-0.75) = 4

This implies that $1 change in any of the aggregate expenditure would lead a $4 worth of change in GDP.

Government spending required  is determined as

Desired change in real GDP/expenditure multiplier

= $8 billion/4 = $2 billion

Government spending required  = $2 billion

Answer: $2,420,000‬

Explanation:

Goodwill is the amount over the fair value of a company that it is purchased for.

Goodwill = Acquisition price - Net Assets

Net Assets = Assets - Liabilities

= (6,900,000 + 410,000) - 2,700,000

= $4,610,000‬

Goodwill = 7,030,000 - 4,610,000

= $2,420,000‬

Answer:

b. 15 units of output.

Explanation:

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

units              sales revenue            total costs            profits

9                       $216                            $36                     $180

15                      $270                           $54                     $216

21                      $252                           $72                     $180

30                     $90                             $99                     ($9)

Answer:

a. Issued for Cash = ($312,000 * 12/12) + ($29,700 * 8/12)

= $312,000 + $19,800

= $331,800

b. Issued in a stock dividend: Shares issued in the stock dividend are assumed outstanding from the beginning of  the year

= ($312,000 * 12/12) + ($29,700 * 12/12)

= $312,000 + $29,700

= $341,700

Answer:

Total cash collection= $158,500

Explanation:

Giving the following information:

Cash collection:

40% in the month of sale

55% in the month following sale

5% in the second month following sale

Sales:

April $210,000

May $160,000

June $150,000

Cash collection June:

Sales in cash from June= 150,000*0.4= 60,000

Sales on account from May= 160,000*0.55= 88,000

Sales on account from April= 210,000*0.05= 10,500

Total cash collection= $158,500

Answer:

C. Recording an item that should be recorded as an operating activity as an investing activity.

Explanation:

Hope it helped

Answer: b. select appropriate corporate-level strategies

Explanation:

Prior to setting pricing options for its products to maximize profit, a company must select appropriate corporate-level strategies.

This is necessary in order to ensure that the strategies aligns with what the organization is willing to do in order to achieve its profit maximization goal.

Answer:

the "substantial user" of the facility built with the proceeds of the issue.

Explanation:

An Industrial revenue bond (IRB) can be defined as any municipal debt security issued by a local or state government agency with respect to a private firm which intend to undergo a particular project such as building facilities,  purchasing heavy machinery or equipments.

The interest income received from older Industrial revenue bonds (IRB) may be taxable to the holder at regular income tax rates if the holder is the "substantial user" of the facility built with the proceeds of the issue because in the true sense it is only beneficial to the holder and not the larger community.

Answer: client's age

Explanation:

From the question, we are informed that a 70-year old client wants to invest in U.S. Treasury securities and that when performing the suitability determination, the client informs the registered representative that he is looking for after-tax income, liquidity, and to avoid market risk.

The client's age should be the least the registered representative should be concerned about. Rather, the representative should be concerned with the coupon of the recommended treasury securities and the tax bracket of the client for tax purposes.

Answer: Data analytics

Explanation:

Data analytics simply has to do withcanalyzing raw data to make conclusions about a particular information. Data analytics is used by organizations in order to optimize their business performance.

Kroger can use data analytics gathered from ClickList orders to determine which products they should keep more or less of in stock.

Answer:

$1,000

Explanation:

Calculation for the Dollar amount of rent expense allocated to department B

Using this formula

Expense allocated to Department B= Rent expense allocated to Department A and B* Department B square feet/Department A and Department B Square foot

Let plug in the formula

Expense allocated to department B =$3,000*2,500/5,000+2,500

Expense allocated to department B= $3,000 * 2,500 / 7,500

Expense allocated to department B =$7,500,000/7,500

Expense allocated to department B= $1,000

Therefore the Dollar amount of rent expense allocated to department B will be $1,000

Answer:

I will borrow yen at 6% a year.

Explanation:

a) Data and Calculations:

Payment for 10,000 = ¥400,000

Spot rate = $1 = ¥107

Forward rate = $1 to ¥120

Borrow ¥400,000, the interest cost = ¥24,000 = $224.30/2 (¥24,000/107) = $112.15 for six months

Value of ¥400,000 borrowed in dollars = $3,738.32 (¥400,000/107)

Loan Repayment of ¥400,000 in dollars = $3,333,33 (¥400,000/120)

Gain from forward contract = $404.99

Interest cost for borrowing =      112.15

Overall debt hedging gain =  $292.84

By borrowing yen at 6% per annum, you will make an overall gain of $292.84.  This is not comparable to the foreign exchange loss of $404.99 that you will incur without borrowing yen.  Taking advantage of the the debt hedging, the supplier is able to save foreign exchange loss.

Question Completion:

Requirement. Identity two types of short-term finance Akram could use when the farm income is low

Answer:

Akram's Farm

Akram's farm can make good use of the following short-term financing sources:

1. Akram's farm can use Accounts Payable to provide short-term trade finance when the farm buys farm inputs, equipment, and other supplies on credit.  The farm's Accounts Payable can provide interest-free trade loans by allowing the farm to take longer time to settle the suppliers.  But, the farm should not miss out on cash discounts - an important source of trade finance.

2. Akram's farm can generate finances by ensuring early collections of the  Accounts Receivable.  Akram's farm can also go ahead and borrow on the accounts receivable through short-term bank loans guaranteed on the accounts.  The farm can also factor the accounts receivable by selling them to factoring and finance houses for less.

Explanation:

Akram's farm is still a small farm that is not yet formed as a company.  The immediate concentration is growing the entity and starting the processes for changing its corporate status so that it can take advantage of the sources of finance available to companies.

Answer: $35

Explanation:

Profit will be the Total Revenue less the total costs involved with selling the goods.

Total Revenue at $16 is $640.

Total Cost at $16 is $605.

Profit = 640 - 605

= $35

Note; Your question has $15 as the maximizing price which is not available in the table. It might be a typo so I attached the question.

Answer and Explanation:

The computation of the net present value is presented in the attachment below:

For project A, the net present value is $91,771.53 and for project B, the net present value is $79,390.69

It is computed after considering the discounting factor that comes from

= 1 ÷ (1 + discount rate)^number of years

for year 1, it is

= 1 ÷ (1 + 0.06)^1

The same applied for the remaining years

Question Completion:

Safety Point Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $50,000 and decrease fixed selling and administrative expenses by $10,000.

Answer:

1. Differential Analysis, showing Safety Point Dropping the Industrial Systems Product Line:

Net Sales Revenue                     $370,000

Cost of Goods Sold:

 Variable                                         46,000

 Fixed                                           269,000

Total Cost of Goods  Sold             315,000

Gross Profit                                    55,000

Selling and Administrative Expenses:

 Variable                                       72,000

 Fixed                                           57,000

Total Selling and Administrative

 Expenses                                  129,000

Operating Income  (Loss)         ($74,000)

2. Safety Point Company's Contribution Margin Income Statements for the year ended May 31, 2018, under the two alternatives:

                                                     Without                 With

                                                        Industrial Systems

Net Sales Revenue                     $370,000          $710,000

Variable costs:

 Cost of Goods Sold                      46,000               82,000

 Selling and Administrative           72,000              137,000

Total Cost of Goods  Sold              118,000            219,000

Contribution Margin                    252,000            491,000

Fixed Expenses:

 Cost of goods sold                   269,000            319,000

 Selling and Administrative         57,000              67,000

Total  Fixed Expenses                326,000           386,000

Operating Income  (Loss)         ($74,000)         $105,000

3. The comparison in requirement 2 shows that eliminating the Industrial Systems Product Line makes Safety Point Company unprofitable with an operating loss of $74,000.  This loss cannot be compared to the total operating income of $105,000 which is made with the industrial systems.  So, it is not the Industrial System Product line that is causing Safety Point Company to record a loss of $56,000.  It is the fixed cost of $60,000 which cannot be eliminated with the elimination of the Industrial System product line that causes the loss and reduces total operating for the company.

Explanation:

a) Data:

Safety Point

Income Statement for the year ended May 31, 2018:

                                                              Product Line

                                                      Industrial      Household

                                                      Systems        Systems           Total

Net Sales Revenue                     $340,000      $370,000      $710,000

Cost of Goods Sold:

 Variable                                         36,000          46,000          82,000

 Fixed                                           250,000          69,000        319,000

Total Cost of Goods  Sold            286,000          115,000        401,000

Gross Profit                                    54,000         255,000       309,000

Selling and Administrative Expenses:

 Variable                                       65,000            72,000        137,000

 Fixed                                            45,000           22,000         67,000

Total Selling and Administrative

 Expenses                                    110,000           94,000      204,000

Operating Income  (Loss)          ($56,000)       $161,000     $105,000

Answer:

A. Trade margin

Explanation:

The profit obtained from trading operations is known as gross profit or trade margin.This is calculated as sales less costs of goods sold.

The difference between total sales revenue and total cost of goods sold is the gross marketing contribution.

The following information is considered:

Therefore we can conclude that the correct option is B.

Learn more: brainly.com/question/16115373

Answer:

                            HANNON COMPANY

                           Assembly Department

           Manufacturing Overhead Cost Responsibility Report

                     For the Month Ended April 30,2017

Controllable Cost     Budget$   Actual$   Difference$   Remark  

Indirect materials       14,200       13,700         500         Favourable

Indirect Labor             19,100        19,900       -800         Unfavourable

Utilities                        11,400        12,100        -700         Unfavourable

Supervision                 4,600        4,600           0                 None

Total                            49,300       50,300    -1,000       Unfavourable

Answer:

$63

Explanation:

The computation of the expected common stock market price per share for the next year is shown below:

Price earning ratio = Share price ÷ earning per share

where

Price earning ratio is 7

Earning per share is

= (Net income - preference dividend) ÷ number of common shares outstanding

= {($45 million - $5 million) × (1 - 0.30) - $10 million)} ÷ 2 million shares

= $9

Now placing these values to the above formula

So, the expected common stock market price is

= 7 × $9

= $63

Answer:

4i8484884858585848484i

Answer:

D

Explanation:

The airline industry is an example of an oligopoly

An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.

Oligopolies are characterised by :

price setting firms

product differentiation

profit maximisation

high barriers to entry or exit of firms

downward sloping demand curve

the action taken by the other airlines is known as tacit collusion.

Tacit collusion is when other companies adopt the price of the price leader

Tacit collusion is not illegal while the explicit collision is illegal.

Answer:

Incorrect Statement about the Statement of Cash Flows:

c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section.

Explanation:

Cash dividends of $201,000 will be reported as a cash outflow in the financing activities section and not the investing activities section.

Statement of Cash Flows is broadly divided into three, the operating, investing, and financing activities sections.  The operating activities section show the cash flows from the normal business of the enterprise.  The investing activities section shows the acquisition and disposal of investments made by the company in cash.  While, the financing section shows the inflow and outflow of cash resulting from the funding of the business by stockholders and noncurrent creditors.

Complete Question:

Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 10% weight in equity, 25% in preferred stock, and 65% in debt. The cost of equity capital is 17%, the cost of preferred stock is 11%, and the pretax cost of debt is 9%. What is the weighted average cost of capital for Ford if its marginal tax rate is 40%?

Answer:

7.96%

Explanation:

We can calculate WACC using the formula:

WACC = Cost of equity * Equity %age / 100%         +          

After Tax Cost of Debt * Debt %age / 100%            +        

Cost of Preferred Stock * Preferred Stock %age / 100%

Here,

Cost of equity is 17%

Cost of preferred stock is 11%

Post tax cost of debt = Pre-Tax cost *  (1 - Tax rate)

This implies,

Post tax cost of debt = 9% * (1 - 40%) =  5.4%

Equity weight is 10% weight in equity

Preferred stock weight is 25%

Debt Weight is 65%

By putting value in the formula given in the attachment, we have:

WACC = 17% * (10% / 100%)      +     11% * (25% / 100%)    +    5.4% * (65% / 100%)

WACC = 1.7%   +   2.75%   +    3.51%

WACC = 7.96%

Answer:

the bond's real return for the year is 6.18 %.

Explanation:

First find the nominal return of the bond then the real return as follows :

PV = - $946.02

Pmt = $1,000 × 5.10% = $51

P/yr = 1

FV = $979.58

n = 1

r = ?

Using a Financial Calculator, the nominal return of the bond, r is 8.9385 %.

Real Return = ( 1 + nominal return) / (1 + inflation rate) -1

                   =  (1 + 0.089395) / (1 + 0.026) - 1

                   = 0.0618 or 6.18 %