Answer:Return on Equity= 37.1%
Explanation:
According to the DuPont Analysis System,
Return on Equity = Leverage Ratio x Net profit margin x Total asset turnover
Return on Equity = 2.8 x 5.3% x 2.5
Return on Equity=0.371
Return on Equity= 37.1%
If the market index subsequently rises by 8% and Ford’s stock price rises by 7%, what is the abnormal change in Ford’s stock price? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 1 decimal place.)
Answer:
-1.9%.
Explanation:
The computation of the abnormal change in the stock price of ford should be given below:
Given that
The return on the market is 8%.
So, the forecast monthly return for Ford is
= 0.10% + (1.1 × 8%)
= 8.9%.
And, the Ford’s actual return was 7%,
So,
the abnormal return be
= 7% - 8.9%
= -1.9%.
The differences between actual and standard costs are called __________ variances. cost profit quantity volume 2. A favorable cost variance results when actual cost is greater than standard cost at actual volumes. actual cost is less than standard cost at actual volumes. actual cost is equal to standard cost at actual volumes. actual cost is greater than standard cost at budgeted volumes.
Answer:
1. The differences between actual and standard costs are called
__________
variances.
2. A favorable cost variance results when
actual cost is less than standard cost
Explanation:
The cost variance is the difference calculated when either the actual cost is less than the standard cost or the standard cost is less than the actual cost. If they are equal, there is no variance. Variance reporting helps management to initiate corrective measures. It helps to improve performance, output, or workers' productivity.
planning practices are different from organization to organization. discuss
Answer:
planning can be referred to as the things you think for the future to happen and organization is a group of people who works together.
Hopes this answer helps you.
A project has an expected risky cash flow of $500 in year 3. The risk-free rate is 4%, the expected market rate of return is 14%, and the project's beta is 1.20. Calculate the certainty equivalent cash flow for year 3, CEQ3. (Assume CAPM holds.)
The certainty equivalent cash flow for year 3, CEQ3 is $360.33
The computation of the certainty equivalent cash flow for year 3 is as follows:
But before that, the cost of equity should be determined via using the Capital Asset Pricing Model (CAPM).
Cost of equity = Risk-free rate + beta × (expected market rate of return - risk-free rate)
= 4% + 1.20 × (14% - 4%)
= 16%
Now the certainty equivalent cash flow for year 3 is
= $500 ÷ (1+ 0.16)^3
= $360.33
Therefore we can conclude that the certainty equivalent cash flow for year 3, CEQ3 is $360.33
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A firm with earnings before interest and taxes of $500,000 needs $1 million of additional funds. If it issues debt, the bonds will mature after 20 years and pay interest of 8 percent. The firm could issue preferred stock with a dividend rate of 8 percent. The firm has 100,000 shares of common stock outstanding and is in the 30 percent income tax bracket. What are the (1) earnings per common share under the two alternatives, (2) the times-interest-earned if the firm uses debt financing, and (3) the times-dividend-earned if the firm uses preferred stock financing
Answer:
Calculation of Earning Per Share
Particulars Debt Alternative($) Preferred Stock($)
Amount Required 1,000,000 1,000,000
Earning before Interest and Tax 500,000 500,000
Less: Interest Cost(8%) 80,000 ----
Earning After Interest 420,000 500,000
Tax(30%) 126,000 150,000
Earning After Tax 294,000 350,000
Less: Dividend to Pref. Shares 80,000
Earning Avai. for C. Stockholders 294,000 270,000
Outstanding shares 100,000 100,000
Earning Per Common Share 2.94 2.70
2. Times Interest Earned Ratio = EBIT / Interest
Times Interest Earned Ratio = 500,000 / 80,000
Times Interest Earned Ratio = 6.25 Times
3. Times Dividend Earned Ratio = Net Income / Preferred Dividend
Times Dividend Earned Ratio = 350,000 / 80,000
Times Dividend Earned Ratio = 4.375 Times
Commercial banks, savings and loan associations, and credit unions: Group of answer choices deposit their excess funds with the U.S. Treasury. accept deposits and make loans. specialize solely in loaning money for home mortgages.
Answer:
accept deposits and make loans.
Explanation:
Credit union is a form of financial institution owned by members of the union. The union provides financial services similar to the services provided by commercial banks
A commercial bank is a financial institution that accepts deposits from customers, provide loans to customers and provide financial products t costumers. Only commercial banks. deposit their excess funds with the U.S. Treasury.
A savings and loan associations is a financial institution that specializes in helping customers get residential mortgages.
The characteristic that these three financial institutions share is that they accept deposits and make loans
The required volume of output to produce the motors will not require any incremental fixed overhead. Incremental variable overhead cost is $21 per motor. What is the effect on income if Derby decides to make the motors
Answer: Income will increase by $16 per unit
Explanation:
Your question isn't complete but the completed question was gotten online and would be used in answering the question accordingly.
The effect on income if Derby decides to make the motors will be calculated thus:
In-house:
Direct material = 38
Direct labor = 50
Overhead (Incremental) = 21
Total variable cost = 109
Outside:
Cost of supply = 125
Therefore, the income per unit will increase by (125 - 109) = 16.
How does Spotify implement Salesforce?
Any answer is very appreciated^^!!
Explanation:
With Salesforce, Spotify has continued to offer amazing customer service since its days as a small startup. The company started by using Desk.com for fast customer support and later migrated to an integrated Sales Cloud and Service Cloud system for a customised solution with 360-degree customer views and collaboration.
When there are batch-level or product-level costs, in comparison to a traditional cost system, an activity-based costing system ordinarily will shift costs from: a. high-volume to low-volume products. b. low-volume to high-volume products. c. specialized to standardized products. d. standardized to specialized products.
Answer: A. high-volume to low-volume products
Explanation:
Batch-level costs refers to the expenses that are related to the group of products which cannot be traced back to an individual item. The cost of production are incurred for the production of a batch.
Activity-based costing refers to the method whereby overhead and indirect costs are assigned to the products and services.
When there are batch-level or product-level costs, in comparison to a traditional cost system, an activity-based costing system ordinarily will shift costs from a high-volume to low-volume products.
what is the definition of abuse
Answer:
The improper usage or treatment of a thing, often to unfairly or improperly gain benefit. Abuse can come in many forms, such as physical or verbal maltreatment, injury, assault, violation, unjust practices, crimes, or other types of aggression.
Explanation:
Which of the following approaches for calculating the market value of a property involves estimating the dollar value associated with replacing the property new, as well as determining the loss in value due to physical, functional, and external obsolescence?
a. income approach
b. sales comparison approach
c. cost approach
d. Investment approach
Answer:
c. cost approach
Explanation:
The cost approach is a real estate valuation method in which the price estimated regarding the buyer that have to pay for the property and the same is equivalnet to the cost for creating a buidling.
Here the property value should be equivalent to the land cost also add the construction cost and minus the depreciation expense
So as per the given situation, it is the cost approach that determined the market value of the property
John House has taken a 20-year, $250,000 mortgage on his house at an interest rate of 6 percent per year. What is the remaining balance (or value) of the mortgage after the payment of the fifth annual installment?
Answer:
$211,689. 53
Explanation:
Calculation to determine the remaining balance (or value) of the mortgage after the payment of the fifth annual installment
Step 1 is to compute PMT using Financial calculator
I = 6%
N = 20
PV = 250,000
FV = 0
PMT=?
Hence,
PMT = 21,796.14.
Now let determine the PV using Financial calculator
I = 6%
N = 15
PMT = 21,796.14
PV=?
Hence,
PV = $211,689. 53
Therefore the remaining balance (or value) of the mortgage after the payment of the fifth annual installment is $211,689. 53
Abigail has an inheritance tax lien placed on all of her property. What kind of a lien is it?
Answer:
A general lien is one placed against any and all real and personal property owned by a particular debtor. An example is an inheritance tax lien placed against all property owned by the heir. A specific lien attaches to a single item of real or personal property, and does not affect other property owned by the debtor.
Explanation:
Inheritance tax lien is a kind of general lien.
What is Inheritance tax lien?A percentage of a decedent's estate's value that is distributed to beneficiaries by will, heirs by intestacy, and transferees by operation of law is subject to inheritance tax. Depending on the heir's status relative to the decedent, there are different tax rates. Payments for inheritance taxes are due at the time of the decedent's death and become past due nine months afterwards. A 5% rebate is permitted if inheritance tax is paid within three months of the decedent's passing. The Tax Law encumbers the decedent's real estate upon death to guarantee the payment of any estate taxes owed. The decedent's death date serves as the effective date of the inheritance tax lien. For all dates of death, a release of lien is used unless the decedent and the surviving spouse were the only joint tenants of real estate.
The value of the property has no bearing on whether a release of lien is necessary.
What is general lien?A general lien is the right of one person to keep any things or property that belong to another person that are in his possession until the promise or duty is satisfied.
It is the ability to keep someone else's property as payment for an overall account balance.
Brokers of insurance, bankers, factors, and High Court lawyers can all get a general lien. Without an express agreement to the contrary, the general lien of bankers, factors, wharfinger, attorneys, and policy brokers retains as a security for the overall balance of the account and any items that are to be bailed to them.
Service providers typically receive the broad lien privilege. These identification service providers reserve the right to keep the items that are given to them as bail in order to collect the overall balance of money that is owed by their client. This specific Section is very eager to restrict the use of general liens by stating that no one has the right to assert a general lien unless the parties have expressly provided for it in their contract.
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An individual taxpayer reports the following items for the current year: Ordinary income from Partnership A, operating a movie theater in which the taxpayer materially participates $70,000 Net loss from Partnership B, operating an equipment rental business in which the taxpayer does not materially participate (9,000) Rental income from building rented to a third party 7,000 Short-term capital gain from sale of stock 4,000 What is the taxpayer’s adjusted gross income for the year?
Answer:
$74,000
Explanation:
Calculation to determine the taxpayer’s adjusted gross income for the year
Taxpayer’s adjusted gross income=Net loss from Partnership B+Capital gain from sale of stock
Let plug in the formula
Taxpayer’s adjusted gross income=$70,000+ $4,000
Taxpayer’s adjusted gross income=$74,000
Therefore the taxpayer’s adjusted gross income for the year is $74,000
Which of the following statements is true?
a. Overhead can be applied slowly as a job is worked on.
b. Overhead can be applied when the job is completed.
c. Overhead should be applied to any job not completed at year-end in order to properly value the work in process inventory.
Answer:
the answer should be
a. Overhead can be applied slowly as a job is worked on.
Answer:
A: overhead can be applied slowly as a job is worked on.
Explanation:
Im pretty sure i already learned that! so trust it!
hope it helps!
if its wrong report my answer!
Hollywood Construction Company recognizes revenue over time according to percentage of completion for its long-term construction contracts. During 2018, Hollywood began work on a $3,000,000 fixed-fee construction contract, which was completed in 2021. The accounting records disclosed the following data at year-end:
Cumulative contract costs incurred Estimated costs to complete at end of year
2018 $200,000 $1800,000
2019 $1100,000 1100,000
2020 2,000,000 4,00,000
For the 2020 year, Hollywood should have recognized gross profit on this contract of :___________
Answer:
Recognized gross profit on this contract for the 2020 year = $100,000
Explanation:
Note: See the attached excel file for the Calculation of Recognized Gross Profit on this contract for the 2020 year (in bold red color).
In the attached excel file, Recognized Gross Profit for Each Year is calculated using the following formula:
Recognized Gross Profit = Revenue for Current Period - Actual Cost Incurred
From the attached excel file, we have:
Recognized gross profit on this contract for the 2020 year = $100,000
You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal
Answer:
$1,000,000
Explanation:
The full question is shown below:
You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start one year from the date of your retirement. The annual interest rate is 8 percent.)
In order to receive $80,000 per year forever, one needs to save the present value of the annual cash flow using the present value formula for perpetuity as provided below:
PV of perpetuity=annual cash flow/annual interest rate
PV of perpetuity=$80,000/8%
PV of perpetuity=$1,000,000
A project is expected to generate annual revenues of $132,100, with variable costs of $80,200, and fixed costs of $20,700. The annual depreciation is $4,750 and the tax rate is 35 percent. What is the annual operating cash flow
Answer:
$21,943
Explanation:
Calculation to determine the annual operating cash flow
Using this formula
Operating Cash Flow =(Annual Revenue-Variable costs - Fixed costs)×(1-Tax rate)+( Annual depreciation×Tax rate )
Let plug in the formula
Operating Cash Flow =[ ($132,100 - $80,200 - $20,700) x (1 - 0.35)]+ ($4,750 x 0.35)
Operating Cash Flow =
Operating Cash Flow =($31,200×0.65)+$1,663
Operating Cash Flow =$20,280+$1,663
Operating Cash Flow =$21,943
Therefore the annual operating cash flow is $21,943
The Nearside Co. just paid a dividend of $1.65 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Investors require a return of 12 percent on the stock. a. What is the current price
Answer:
$24.7
Explanation:
The first step is to calculate D1
1.65(1+5/100)
1.65(1+0.05)
1.65(1.05)
=>1.73
Therefore the current price can be calculated as follows
= D1/required rate-growth rate
= 1.73/0.12-0.05
= 1.73/0.07
= 24.7
Hence the current price is $24.7
Zach attended Champion University during 2014-2018. He lived at home and was claimed by his parents as a deduction during the entire duration of his education. He incurred education expenses of $15,000 during college of which $3,750 was paid for by scholarships. To finance his education, he borrowed $9,500 through a federal student loan program and borrowed another $5,500 from a local lending institution for educational purposes. After graduation, he married and moved with his spouse to a distant city. In 2019, he incurred $950 of interest on the federal loans and $550 on the lending institution loan. He filed a joint return with his spouse showing modified AGI of $113,500. What amount of student loan interest can Zach and his spouse deduct in 2019, if any
Answer:
The amount of student loan interest can Zach and his spouse deduct in 2017 is $1,125
Explanation:
The amount of student loan interest can Zach and his spouse deduct in 2017 is $1,125
The amount of student loan interest can Zach and his spouse deduct in 2017 is
Education Expenses:
= $15,000 Incurred Expenses - $3,750 Scholarship
= $11,250
$11,250 / $15,000 = 75%
Interest Incurred:
= $950 Federal Loan Interest + $550 Lending Loan Interest
= $1, 500
$1,700 x 90% = $1,125
Rank the following asserts of a commercial Bank in order of decreasing liquidity. (a) market loans. (b) Reserves with the bank of Ghana. (c) cash. (d) personal loans. (e) sales and repurchase agreements (repos). (f) mortgages. (g) Government bonds (of from one to five years to motuity)
The rankings are as follows;
Cash.Ghana bank.Personal loan.Market loan.Sales and repurchase agreements.Mortgage.Government bonds.We want to help the user to understand the term liquidity before giving the explanation with respect to ranking the following terms:
Liquidity means an asset or security that should be converted into cash without impacting the market price.
Here the most liquids are the ones that could be converted into cash in an easy manner but we have to rank in order of reducing the liquidity.
Cash = more liquid.Ghana bank along with reserves = less than liquid as cash.Personal loan = less liquid.Market loan = less liquid.Sale & repurchase agreements = less liquid.Mortgage = reduce liquidity. Government bonds.We ranked according to high to low liquidity.
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The CEO of Fly Corporation decides to change an accounting method at the end of the current year. The change results in reported profits increasing by 5%, but the company's cash flows are not changed. If capital markets are efficient, then what would happen to the company stock price? Justify your answer with logical arguments
Answer:
Fly Corporation
The stock price will not be affected by the accounting change.
Explanation:
This opinion is based on the assumption that the capital markets are efficient. Therefore, the stock's market price will reflect all available and relevant information. Since all the necessary information is already incorporated into the stock price, the CEO of Fly Corporation cannot beat the market by the change in accounting method, and the stock price will not be undervalued or overvalued. Moreover, the change in accounting method only shifts the timing for reporting income.
The rate at which revenue was generated (in millions of dollars per year) for a certain company for the years 2010 through 2016 can be approximated by f(t)=348e0.22t (10≤t≤16), where t=10 corresponds to the start of the year 2010. Find and interpret ∫1016f(t)dt.
The revenue of a company represents the income generated by the company within a time frame. The total revenue generated by the company from the start of 2010 to the start of 2016 is $39.16 billion
Given that:
[tex]f(t) = 348e^{0.22t}[/tex] [tex]10 \le t \le 16[/tex]
First, we calculate the integral
[tex]\int\limits^{16}_{10} {f(t)} \, dt[/tex]
This is calculated as:
[tex]\int\limits^{16}_{10} {f(t)} \, dt = \int\limits^{16}_{10} {348e^{0.22t}} \, dt[/tex]
Remove the constant
[tex]\int\limits^{16}_{10} {f(t)} \, dt = 348\int\limits^{16}_{10} {e^{0.22t}} \, dt[/tex]
Now, integrate
[tex]\int\limits^{16}_{10} {f(t)} \, dt = 348 \times \frac{1}{0.22} (e^{0.22t})|\limits^{16}_{10}[/tex]
[tex]\int\limits^{16}_{10} {f(t)} \, dt = \frac{ 348}{0.22} (e^{0.22t})|\limits^{16}_{10}[/tex]
Expand
[tex]\int\limits^{16}_{10} {f(t)} \, dt = \frac{ 348}{0.22} (e^{0.22\times 16} -e^{0.22\times 10} )[/tex]
[tex]\int\limits^{16}_{10} {f(t)} \, dt = \frac{ 348}{0.22} (e^{3.52} -e^{2.2} )[/tex]
[tex]\int\limits^{16}_{10} {f(t)} \, dt = \frac{ 348}{0.22} \times 24.759[/tex]
[tex]\int\limits^{16}_{10} {f(t)} \, dt = 39164.2[/tex]
From the question
[tex]t = 10[/tex] represents the start of 2010.
This means that
[tex]t = 16[/tex] represents the start of 2016.
So, the interpretation is:
The total revenue from the start of 2010 to the start of 2016 is $39.16 billion
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The Zeller Corporation's stockholders' equity accounts have the following balances as of December 31, 2016:
Common stock, $10 par (30,000 shares issued and outstanding) $300,000
Additional paid-in capital 2,000,000
Retained earnings 5,700,000
Total stockholders' equity $8,000,000
Refer to above table. On January 2, 2017, the board of directors of Zeller declared a 5% stock dividend to be distributed on January 31, 2017. The market price per share of Zeller's common stock was $30 on January 2 and $32 on January 31. As a result of this stock dividend, the retained earnings account should be decreased by :___________
Answer:
The Zeller Corporation
As a result of this stock dividend, the retained earnings account should be decreased by :___________
$15,000.
Explanation:
a) Data and Calculations:
The Zeller Corporation's stockholders' equity accounts have the following balances as of December 31, 2016:
Common stock, $10 par (30,000 shares issued and outstanding) $300,000
Additional paid-in capital 2,000,000
Retained earnings 5,700,000
Total stockholders' equity $8,000,000
Analysis:
January 2, 2017: Stock dividend $15,000 (30,000 * 5% = 1,500 shares * $10) Stock dividend distributable $15,000
January 31, 2017: Retained Earnings $15,000 Stock Dividend $15,000
Stock dividend distributable $15,000 Common stock $15,000
The common stock of Eddie's Engines, Inc. sells for $45.68 a share. The stock is expected to pay $4.10 per share next year. Eddie's has established a pattern of increasing their dividends by 6.2 percent annually and expects to continue doing so. What is the market rate of return on this stock?
a. 15.18 percent
b. 7.26 percent
c. 8.98 percent
d. 17.67 percent
e. 11.14 percent
Answer:
no entiendo la verdad es que yo hablo español y no entiendo ajaj espero te ayude
Explanation:
15.18
The seven main functions of marketing summarize what it takes to _____.
Explanation:
The seven functions of marketing are distribution, market research, setting prices, finance, product management, promotional channels and matching products to consumers
I guess this may help
Answer:
All of the above
Explanation:
just took it
Research on the increasing rate of teenage pregnancy with research methods
Answer:
Ghana constitute to record high rate of Ap.Recent national report shows that 11percent of adolescent age 15 to 19 had had a live birth of which 3 percent with first child and 14 percent has began childbearing
QS 8-7 Computing revised depreciation LO C2 On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years.
Answer:
$23,925 for both the second and third years
Explanation:
Depreciation is the systemic recognition of the cost of an asset in the profit or loss statement. It is an expense.
Depreciation may be computed on a straight line basis as
Depreciation = (cost - salvage value)/estimated useful life
Given that Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $2,000
Depreciation in the first year of use
= ($65,800 - $2,000)/4
= $15,950
The carrying amount at the start of the second year
= $65,800 - $15,950
= $49,850
Depreciation for the second year and 3rd year after the company realizes that this equipment will last only a total of three years
= ($49,850 - $2,000)/2
= $47,850/2
= $23,925
The financial reporting for private not-for-profit entities primarily focuses on: Multiple Choice basic information for the organization as a whole. standardization of the fund information that is reported. inherent differences of various not-for-profit entities that impact reporting presentations. distinctions between current fund and noncurrent fund presentations.
Answer: basic information for the organization as a whole.
Explanation:
Private Not-for-profit organization as the term implies, are not operating to make a profit therefore their financial statements will generally not include measures that are aimed at showing profit like profit making organizations.
They will instead focus on talking about the entire organization as whole and what it has done so far in the current period. This is what is required of them by U.S. GAAP.
The direct method of reporting operating cash flows: ________
a. Separately lists cash receipts and payments.
b. Must be used by all companies.
c. Is used by most companies.
d. Is considered supplementary disclosure.
e. Is not recommended by the FASB, but is commonly used.
Answer:
e. Is not recommended by the FASB, but is commonly used.
Explanation:
A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.
The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;
1. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments etc.
2. Cash-flow from financing activities: it represents the cash flow from debt or equity. Typically, it's the costs used in a financing a business.
3. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods etc.
Generally, the statement of cash flows provides financial information about an organization's operating profitability and how it use its operating cash flow.
Financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining financial accounting and reporting standards for general guidance of individuals or capital providers such as investors, issuers and auditors.
In Financial accounting, the direct method of reporting operating cash flows uses actual cash inflows and outflows from the operating activities of a company by generating data from the income statement (cash receipts and cash disbursements/payments).
However, the direct method of reporting operating cash flows is not recommended by the FASB, but it's commonly used.
This ultimately implies that, it's a recommended accounting method, but it's not an accounting standard required by the financial accounting standards board (FASB).
