Answer:
to communicate at hyper speed so the one being emailed to can know or execute the order for a cause
or so that companies can send free ads into your cumputer:(
Explanation:
what is least likely to get managers to act in best interest of the owner threat of a prozy fight stock option plans
Answer:
The least likely to get managers to act in the best interest of the owner is:
stock option plans.
Explanation:
But with the threat of a proxy fight, managers get up to speed, acting in the best interest of the owners of the firm because their jobs are at stake. The main purpose of a proxy fight is the removal of the current management of the firm. During a proxy fight, contest, or battle, some shareholders in a company attempt to oppose and vote out the current management or board of directors. On the other hand, stock option plans reward managers with employee ownership rights at discounted prices.
In the equation below assume U and A are know.
Rearrange the equation so that you would solve for R in terms of the Greek letter sigma)
U = R − 1 2 A σ 2
A. R = U − 1 2 A σ 2
B. R = 1 2 A σ 2 U
C. R = U 1 2 A σ 2
Answer:
[tex]R = U + {1}{2}A\sigma^2[/tex]
Explanation:
Given
[tex]U = R - \frac{1}{2}A\sigma^2[/tex]
Required
Solve for R
We have:
[tex]U = R - {1}{2}A\sigma^2[/tex]
Add [tex]{1}{2}A\sigma^2[/tex] to both sides
[tex]U + {1}{2}A\sigma^2 = R - {1}{2}A\sigma^2 + {1}{2}A\sigma^2[/tex]
Evaluate like terms
[tex]U + {1}{2}A\sigma^2 = R[/tex]
Hence:
[tex]R = U + {1}{2}A\sigma^2[/tex]
Zhang Industries sells a product for $700 per unit. Unit sales for May were 400, and each month's unit sales are expected to grow by 3%. Zhang pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales. Compute the budgeted selling expense for the manager for the month ended June 30.
Answer:
Zhang Industries
The Budgeted selling expense for the manger for the month ended June 30 is:
= $8,768.
Explanation:
a) Data and Calculations:
Selling price per unit = $700
Unit sales for May = 400
Expected growth of unit sales each month = 3%
Unit sales for June = 412 (400 * 1.03)
Sales revenue for June = $288,400 ($700 * 412)
Monthly sales salary to the sales manager = $3,000
Monthly sales commission = 2% of sales
Budgeted selling expense for the manger for the month ended June 30:
Monthly sales salary to the sales manager = $3,000
Monthly sales commission = 2% of sales 5,768 ($288,400 * 2%)
Total selling expense for the month = $8,768
A closed economy has full employment level of output (Y) of 7000 (we got this from chapter 3 - the interaction of labor supply and demand). Government purchases, G, are 1600, taxes (T) are 1600 (G and T are our exogenous variables). Desired consumption (Cd) and investment (Id) are:
C^d= 3200+ 0.2(Y-T)- 200r
I^d= 1200- 3000r
Required:
Solve for the desired savings function in intercept -slope form
Answer:
sd = 2720-200r
Explanation:
we have savings function to be this eqiuaton
Sd = Y - C^d
from the question we have here:
Y = 7000
T = 1600
C^d = 3200+ 0.2(Y-T)- 200r
we put these values in the savings function
Sd = 7000 - [3200 + 0.2(7000-1600)-200r
Sd = 7000 - [3200 + 1400 - 320] -200r
Sd = 7000 - 3200 - 1400 + 320 - 200r
Sd = 2720 - 200r
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies, frizzles, and cannies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods.
Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies decreases by 20%, the quantity of frizzles sold decreases by 22% and the quantity of cannies sold increases by 7%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together.
Complete the first column of the following table by computing the cross-price elasticity between guppy gummies and raskels, and then between guppy gummies and mookies. In the second column, determine if guppy gummies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with guppy gummies.
Relative to Guppy Gummies
Cross-Price Elasticity Complement or Substitute Recommend Marketing
of Demand with Guppy Gummies
Raskels
Mookies
Answer:
Cost price elasticity of frizzles is 1.1.
Cost price elasticity of cannies is -0.35.
Hence cannies are complementing good for guppy gummies, the firm should sell the cannies with the guppy gummies.
Explanation:
Cross price elasticity of frizzles:-
Cost price elasticity = Percentage change in the quantity of frizzles /
Percentage change in the price of guppy gummies.
[tex]= \frac{-22}{-20} \\\\=1.1[/tex]
Cost price elasticity of frizzles is 1.1. Since the cost price elasticity of demand for frizzles is positive, it is a substitute good for guppy gummies.
Cross price elasticity of cannies:-
Cost price elasticity = Percentage change in the quantity of cannies /
Percentage change in the price of guppy gummies.
[tex]= \frac{7}{-20} \\\\=-0.35[/tex]
Cost price elasticity of cannies is -0.35. Since the cost price elasticity of demand for frizzles is negative, it is a complement good for guppy gummies.
Hence cannies are complementing good for guppy gummies, the firm should sell the cannies with the guppy gummies.
The diameter of a brand of tennis balls is approximately normally distributed, with a mean of 2.56
inches and a standard deviation of 0.04
inch. A random sample of 11
tennis balls is selected. Complete parts (a) through (d) below.
Answer:
sample mean = 2.63 inches
sample standard deviation = \frac{standard \hspace{0.15cm} deviation}{\sqrt{n} } = \frac{0.03}{\sqrt{9} } = \frac{0.03}{3} = 0.01
n
standarddeviation
=
9
0.03
=
3
0.03
=0.01
b) P(X < 2.61) = 0.0228
c.) P(2.62 < X < 2.64) = 0.6827
d.) Therefore 0.06 = P(2.6292 < X < 2.6307)
Step-by-step explanation:
i) the diameter of a brand of tennis balls is approximately normally distributed.
ii) mean = 2.63 inches
iii) standard deviation = 0.03 inches
iv) random sample of 9 tennis balls
v) sample mean = 2.63 inches
vi) sample standard deviation = \frac{standard \hspace{0.15cm} deviation}{\sqrt{n} } = \frac{0.03}{\sqrt{9} } = \frac{0.03}{3} = 0.01
n
standarddeviation
=
9
0.03
=
3
0.03
=0.01
vii) the sample mean is less than 2.61 inches = P(X < 2.61) = 0.0228
viii)the probability that the sample mean is between 2.62 and 2.64 inches
P(2.62 < X < 2.64) = 0.6827
ix) The probability is 6-% that the sample mean will be between what two values symmetrically distributed around the population measure
Therefore 0.06 = P(2.6292 < X < 2.6307)
how did you find the fv factor values
Answer:
v5th factor in solve......
Select the behavior related to dress or posture that will be most effective in helping Shawna accomplish her goals.
a. Shawna clasps her hands behind her back so that the audience cannot see them shaking, and to project confidence.
b. Shawna has her formal gown dry-cleaned so that it will be ready for her to wear at the event.
c. Shawna crosses her arms to appear powerful and in charge.
d. Shawna wears a hard hat and kitchen apron to emphasize the hard work done by volunteers.
Answer: b. Shawna has her formal gown dry-cleaned so that it will be ready for her to wear at the event
Explanation:
The behavior that's related to dress or posture that will be most effective in helping Shawna accomplish her goals is that Shawna has her formal gown dry-cleaned so that it will be ready for her to wear at the event.
Unlike other options such as her clasping her hands behind her back so that the audience cannot see them shaking, and to project confidence and her crossing her arms to appear powerful and in charge, having her dress ready for the event is appropriate as it will help achieve her goal
Therefore, the correct option is B.
When it comes to Risk Mitigation, which risk counter measure involves not even taking the chance with the risk?
Answer:
The risk countermeasure that involves not even taking the chance with the risk is:
risk avoidance.
Explanation:
Risk avoidance is a risk mitigation strategy. To avoid risk, risk exposures and hazards are completely eliminated. This means that risk avoidance seeks to completely avoid compromising events while other risk mitigation or management efforts try to control the damages and financial consequences of threatening events.
Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 25 $ 10 Direct labor 22 21 Variable manufacturing overhead 17 7 Traceable fixed manufacturing overhead 18 20 Variable selling expenses 14 10 Common fixed expenses 17 12 Total cost per unit $ 113 $ 80 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 9. Assume that Cane expects to produce and sell 82,000 Alphas during the current year. A supplier has offered to manufacture and deliver 82,000 Alphas to Cane for a price of $88 per unit. What is the financial advantage (disadvantage) of buying 82,000 units from the supplier instead of making those units
Answer:
Cane Company
The financial advantage of buying 82,000 units from the supplier instead of making those units is:
= $656,000.
Explanation:
a) Data and Calculations:
Alpha Beta
Selling price $130 $90
Annual production capacity 102,000 102,000 units
Direct materials per unit $25 $10
Direct labor 22 21
Variable manufacturing overhead 17 7
Traceable fixed manufacturing overhead 18 20
Variable selling expenses 14 10
Common fixed expenses 17 12
Total cost per unit $ 113 $ 80
Cost of Alphas Make Buy Difference
Direct materials per unit $25
Direct labor 22
Variable manufacturing overhead 17
Traceable fixed manufacturing overhead 18
Variable selling expenses 14
Total cost per unit $ 96 $ 88 $ 8
Expected production/sales and purchase 82,000 82,000 82,000
Total cost or producing or buying $7,872,00 $7,216,000 $656,000
A bank reconciliation reconciles the bank statement with the company's Multiple choice question. net cash flow in the statement of cash flows. net income in the income statement. cash account in the balance sheet. cash from operating activities.
Answer: cash account in the balance sheet.
Explanation:
A bank reconciliation reconciles the bank statement with the company's cash account in the balance sheet. Option C is the correct answer.
A bank reconciliation is a process that compares the company's cash records, specifically the cash account in the balance sheet, with the bank statement. It is performed to ensure that the company's recorded cash transactions match the bank's recorded transactions. Option C is the correct answer.
During a bank reconciliation, various items are compared, such as deposits in transit, outstanding checks, bank fees, and interest earned. The purpose is to identify any discrepancies or differences between the company's records and the bank's records. By reconciling the cash account in the balance sheet, the company can identify any errors or missing transactions, and make adjustments accordingly.
Learn more about Balance Sheet here:
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The complete question is, " A bank reconciliation reconciles the bank statement with the company's
a. net cash flow in the statement of cash flows.
b. net income in the income statement.
c. cash account in the balance sheet.
d. cash from operating activities."
A point outside (to the right of) the production possibilities curve of a nation implies that this nation is using its resources fully. implies that there are unemployed resources in this nation. is easily attainable for this nation. is not attainable for this nation. Submit
Answer:
is not attainable for this nation
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
Point outside the curve or to the right of the curve means that the production level is not attainable given the level of resources
Points inside the production possibilities curve means that the nations resources are not being fully utilised
Factors that cause the PPF to shift
1. changes in technology.
2. changes in available resources.
3. changes in the labour force.
In the last few decades the car manufacturing sector has found it difficult to compete with foreign car imports. High labor costs is one of the main reasons economist site as the lack of competitiveness for the car manufacturing industry. If there was modest inflation, how could it possibly help the car manufacturing industry in the United States compete with foreign car manufacturers?
a. The consumers of the cars have increased purchasing power.
b. Business loans would cost less for the U.S. car manufacturers.
c. It could allow real wages to downwardly adjust more easily.
Answer: c. It could allow real wages to downwardly adjust more easily.
Explanation:
When there is modest inflation, companies in the car manufacturing industry can simply decide not to increase nominal wages. This would lead to a fall in real wages as inflation would ensure that the nominal wages are less than they were worth before.
This decrease in real wages will allow the companies in the industry to reduce labor costs in real terms and become more competitive with the foreign manufacturers.
Which of the following is considered the process in the systems thinking example of a decision support system?
a. transaction
b. processing system.
c. optimization
d. forecasts
Answer: C. Optimization
Explanation:
In the decision making system, TPS is considered to be the input in the systems thinking example.
In the decision making system, optimization is considered to be the process in the systems thinking example.
In the decision making system, TPS is considered to be the input in the systems thinking example.
In the decision making system, a forecast is considered to be the output in the systems thinking example.
Consider the role of management accounting in relation to the company for which you work or have worked
Answer:
The management of accounting, or accounting management is one of the main areas inside any business, because accounting is an essential part of any business since it is in charge of the recording of all the economic transactions that the business engages in.
Accouting information is also vital because it serves as a source for other areas of a business, for example, the financial department because it uses aggregate accounting information, or even the marketing department, because it looks at accounting information in order to determine commercial needs, or to understand what resources are available for carrying out marketing activities.
The beta of a stock is 1.2. The risk free rate is 3%. The expected market return is 9%. The dividends of the company are expected to grow by 5.6% a year. The current dividend is $6.80. Using the Gordon growth model, what is the intrinsic value of the firm
Answer: $156.09
Explanation:
First find the required return of the stock using CAPM:
= Risk free rate + Beta *( Market return - Risk free rate)
= 3% + 1.2 * (9% - 3%)
= 10.2%
Find out the Next dividend to be paid:
= Current dividend * (1 + growth)
= 6.8 * (1 + 5.6%)
= $7.18
Gordon Growth Model:
= Next dividend / (Return on stock - growth rate)
= 7.18 / (10.2% - 5.6%)
= $156.09
If a coupon bond has two years to maturity, a coupon rate of 10 %, a par value of $1000 , and a yield to maturity of 12 %, then the coupon bond will sell for $nothing . (Round your response to the nearest two decimal place) The price of a bond and its yield to maturity are ▼ positively related negatively related unrelated .
Answer:
The right solution is "$966.27".
Explanation:
Given values are:
Coupon rate,
= 10%
Par value,
= $1000
Yield of maturity,
= 12%
then,
Coupon will be:
= [tex]1000\times 10 \ percent[/tex]
= [tex]1000\times 0.1[/tex]
= [tex]100[/tex] ($)
Now,
The present value of coupon will be:
= [tex]A\times \frac{(1-(1+r)^n)}{r}[/tex]
By putting the value, we get
= [tex]100\times \frac{1-(1.12)^{-2}}{0.12}[/tex]
= [tex]100\times \frac{1-0.7971}{0.12}[/tex]
= [tex]100\times \frac{0.2029}{0.12}[/tex]
= [tex]169.08[/tex] ($)
The present value of par value will be:
= [tex]\frac{1000}{(1+12 \ percent)^2}[/tex]
= [tex]\frac{1000}{(1.12)^2}[/tex]
= [tex]797.19[/tex] ($)
hence,
The price of bond will be:
= [tex]Present \ value \ of \ coupon+Present \ value \ of \ par \ value[/tex]
= [tex]169.08+797.19[/tex]
= [tex]966.27[/tex] ($)
Type your answer in the box.
For a population with u = 25 and = 5, we would expect 90% of all x's calculated from n = 35 to
fall between
and
(Round to two decimals.)
Do you know the answer?
D Read about this
I know it
Think so
Unsure
No idea
Answer:
Your answer is given below:
Explanation:
Suppose the ABC bank has excess reserves of $3,000 and checkable deposits of $50,000. If the reserve requirement is 20 percent, what is the size of the bank's actual reserves?
a. $53,000
b. $13,000
c. $10,000
d. $7,000
Answer:
b. $13,000
Explanation:
Calculation to determine the size of the bank's actual reserves
Using this formula
Actual reserves size=Excess reserves+(Checkable deposits*Reserve requirement)
Let plug in the formula
Actual reserves size=$3,000+(.20*$50,000)
Actual reserves size=$3,000+$10,000
Actual reserves size=$13,000
Therefore the size of the bank's actual reserves is $13,000
On May 1, 2020, Ayayai Company issued 2,400 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 99, but the fair value of the warrants cannot be determined.
Instuctions
a. Prepare the entry to record the issuance of the bonds and warrants
b. Assune the same facts as part (a), except that the warrants had a fair value of $30. Prepare the entry to record the issuance of the bonds and warrants.
Answer:
A. Dr Cash $2,448,000
Dr Discount on bond payable $24,000
Cr Bond payable $2,400,000
Cr Paid in capital stock warrants $72,000
B. May 1
Dr Cash $2,448,000
Dr Discount on bonds payable $24,713
Cr Bonds payable $2,400,000
Cr Paid in capital stock warrants $72,713
Explanation:
a. Preparation of the entry to record the issuance of the bonds and warrants
May 1
Dr Cash $2,448,000
Dr Discount on bond payable $24,000
Cr Bond payable $2,400,000
Cr Paid in capital stock warrants $72,000
(To record the issuance of the bonds and warrants )
Workings:
Cash = (2,400 * 1,000) * 102%
Cash = 2,400,000 * 1.02
Cash = $2,448,000
Discount on bond payable = (2,400 * 1,000) * (1 - 99%)
Discount on bond payable = 2,400,000 * 0.01
Discount on bond payable = $24,000
Bond payable = 2,400 * 1,000
Bond payable = $2,400,000
Paid in capital stock warrants = 2,448,000 + 24,000 - 2,400,000
Paid in capital stock warrants = $72,000
b.Preparation of the entry to record the issuance of the bonds and warrants Assume the same facts as part (a), except that the warrants had a fair value of $30.
May 1
Dr Cash $2,448,000
Dr Discount on bonds payable $24,713
Cr Bonds payable $2,400,000
Cr Paid in capital stock warrants $72,713
(To record the issuance of the bonds and warrants )
Workings:
Fair value of bonds = (2,400 * 1,000) * 98%
Fair value of bonds = 2,400,000 * 0.98
Fair value of bonds = $2,352,000
Fair value of warrants = 2,400 * 30
Fair value of warrants = $72,000
Fair value = $2,352,000 + 72,000
Fair value = $2,424,000
Allocated to bonds=$2,352,000/$2,424,000*$2,448,000
Allocated to bonds=$2,375,287
Allocated to warrants=$72,000/$2,424,000*$2,448,000
Allocated to warrants=$72,713
Cash = 2,400 * 1,000 * 102%
Cash = 2,400,000 * 1.02
Cash = $2,448,000
Discount on bonds payable = 2,400,000 - $2,375,287
Discount on bonds payable = $24,713
An interest-free period during which a credit card owner can pay off a balance
without having to pay finance charges is called a
____
Answer:
grace period
Explanation:
a. If a wage of $10.25 were to be imposed on this market, such that the market was not longer strictly competitive, what would be the value for labor supply?
b. At the imposed wage of $10.25 what would be the value for labor demand?
c. Provide a properly labeled and appropriately articulated Labor Market Model given the labor supply and demand equations provided and the imposed wage of $10.25.
d. Based on the labor market model you’ve now illustrated, how would you describe the current condition of this market given the imposed wage?
Solution :
Given the wage = $ 10.25 that is to be imposed to the market.
Given equation :
[tex]L_D[/tex] = 500 – 45W and [tex]L_S[/tex] = -200 + 25W
If the wage of $10.25 is to be imposed to the market, the value of the labor supply can be found by putting the value of the wage in the labor supply equation.
At W = 10.25
Putting this value in the above equation, the labor supply would be
[tex]L_S[/tex] = -200 + 25W
[tex]L_S[/tex] = -200 + 25(10.25)
= 56.25
When W = 10.25, the value for the labor demand can be found by :
[tex]L_D[/tex] = 500 – 45W
[tex]L_D[/tex] = 500 – 45(10.25)
[tex]L_D[/tex] = 500 – 461.25
[tex]L_D[/tex] = 38.75
Therefore, the labor demand and the labor supply model is
[tex]L_D[/tex] = 400 - 45 x 10.25
[tex]L_S[/tex] = -200 + 25 x 10.25
Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $8 comma 000 for his CD investment. If the bank is offering a 6 % interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a a. two -year investment period? b. six -year investment period? c. ten -year investment period? d. fifteen -year investment period?
Answer:
A = P * (1 + r/n)^nt. Where A = Maturity amount = ? P = Principal amount = $8,000, r = Rate of interest = 6%, n = Number of compounding per year = 1, t = Number of year
a. t = 2
A = $8,000 * (1 + 0.06/1)^1*2
A = $8,000 * (1.06)^2
A = $8,000 * 1.1236
A = $8,988.80
b. t = 6
A = $8,000 * (1 + 0.06/1)^1*6
A = $8,000 * (1.06)^6
A = $8,000 * 1.418519
A = 11348.152
A = $11,348.15
c. t = 10
A = $8,000 * (1 + 0.06/1)^1*10
A = $8,000 * (1.06)^10
A = $8,000 * 1.7908477
A = 14326.7816
A = $14,326.78
d. t = 15
A = $8,000 * (1 + 0.06/1)^1*15
A = $8,000 * (1.06)^15
A = $8,000 * 2.3965581931
A = 19172.4655448
A = $19,172.47
Given that the DM price of the ECU was 2.0583 and the DG price of the ECU was 2.3194. Then the DG price of the DM by cross rates is given by:______
a. DM = about 4.73 DG.
b. DM = about .26 DG.
c. DM = about 1.13 DG.odno
d. DM = about .89 DG.
Answer:
Option c (DM = about 1.13 DG) is the right approach.
Explanation:
Given:
DM price,
= 2.0583
DG price,
= 2.3194
Now,
By cross rates, the DG price of DM will be:
= [tex]\frac{2.3194}{2.0583}[/tex]
= [tex]1.13[/tex]
Thus the above is the correct option.
The dividend yield is: multiple choice annual cash dividends per share divided by market value per share. annual cash dividends per share multiplied by market value per share. market value per share divided by annual cash dividends per share. market value per share multiplied by annual cash dividends per share.
Answer:
Annual Cash divided by the Price per share
Explanation:
Dividends are paid out by a company's earnings (cash) and is distributed annually to shareholders price per share.
Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,900 shares of its own common stock at $34 per share on October 11. b. Sold 1,225 treasury shares on November 1 for $40 cash per share. c. Sold all remaining treasury shares on November 25 for $29 cash per share.
Answer: See explanation
Explanation:
The journal entry to record the transaction for Sherman systems will be:
Oct-11
Debit Treasury Stock (5,900 × $34) =
$200,600
Credit Cash = $200,600
(To record repurchase of 5900 own shares)
Nov-01
Debit Cash (1,225 × $40) = $49,000
Credit Treasury stock (1,225 × $34) = $41,650
Credit Paid in capital-Treasury Stock = $7,350
(To record sale 1225 shares from treasury stock)
Nov-25
Debit Cash (5,900-1,225) × $29) = $135,575
Debit Paid in capital-Treasury Stock = $7,350
Debit Retained earnings = $16,025
Credit Treasury stock (5,900-1,225) × $34) = $158,950
(To record sale balance from treasury stock)
A researcher wants to test the order of integration of some time series data. He decides to use the DF test. He estimates a regression of the form
delta yt = mu + si yt-1 + mut
and obtains the estimate ˆ? = -0.02 with standard error = 0.31.
(a) What are the null and alternative hypotheses for this test?
(b) Given the data, and a critical value of -2.88, perform the test.
(c) What is the conclusion from this test and what should be the next step?
(d) Why is it not valid to compare the estimated test statistic with the corresponding critical value from a t-distribution, even though the test statistic takes the form of the usual t-ratio?
Answer:
a) H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
b) t stat = -0.064
c) We will reject the Null hypothesis and the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
Explanation:
a) stating the null and alternative hypothesis
H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
b) performing the test
critical value = -2.88
T stat = coefficient / std error
= -0.02 / 0.31 = -0.064
c) From the test, the value of T stat > critical value we will reject the Null hypothesis hence the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
Given below are several ratios. Select the accounts or amounts that would be used in order to calculate the ratio. You will have more than one response to each ratio. Some accounts or amounts may not be used at all. (Select all that apply.) Debt-to-equity ratio a.Cash paid for acquisitions b.Interest expense c.Total dividends paid d.Cash flow from operations before interest and tax payments e.Total stockholders' equity f.Net income g.Total liabilities h.Cash flow from operations
Answer:
Total stockholders' equity.Total liabilities.Explanation:
The Debt to equity ratio shows the proportions of the financing options used to finance the operations of the company namely debt and equity.
It is calculated by the formula:
= Total liabilities / Total stockholders' equity * 100%
As shown by the formula , the relevant accounts are:
Total stockholders' equity.Total liabilities.A stationery company makes two types of notebooks: a deluxe notebook with subject di- viders, which sells for $4.00, and a regular notebook, which sells for $3.00. The production cost is $3.20 for each deluxe notebook and $2.60 for each regular notebook. The com- pany has the facilities to manufacture between 2000 and 3000 deluxe and between 3000 and 6000 regular notebooks, but not more than 7000 altogether. How many notebooks of each type should be manufactured to maximize the differ- ence between the selling prices and the production costs
Answer:
A Stationery Company
To maximize contribution (the difference between the selling prices and the production costs), the company should produce 3,000 deluxe and 4,000 regular notebooks.
Explanation:
a) Data and Calculations:
Deluxe Regular
Selling price per unit $4.00 $3.00
Production cost per unit 3.20 2.60
Contribution per unit $0.80 $0.40
Production capacity = 7,000 notebooks
Range of production 2,000 - 3,000 3,000 - 6,000
Notebooks to produce 3,000 4,000
Maximum contribution $2,400 $1,600 = $4,000
Romano Corporation has three operating divisions and requires a 12% return on all investments. Selected information is presented here:
Required:
Calculate the missing amounts for each division. (Do not round intermediate calculations. Round "Margin", "Turnover" and "ROI" to 2 decimal places.)
Division X Division Y Division Z
Revenues $1,006,000
Operating income $105,600 $104,900
Operating assets $419,800 $298,200
Margin % 14.00 % %
Turnover turn(s) 1.00 turn(s) 3.00 turn(s)
ROI % % %
Residual income $28,690
Answer:
DIVISION X
Revenues = $1006000
Operating income = $105600
Operating assets = $419800
Margin = (Income*100/Revenue) = $105600*100/$1006000 = 10.50%
Turnover = (Turnover/Assets) = $1006000/$419800 = 2.4 times
ROI = (income*100/assets) = 105600*100/419800 = 25.15%
Residual Income = (105600-419800*12%) = $55224
DIVISION Y
Revenues = $298200*1 = $298200
Operating income = $298200*14% = $41748
Operating assets = $298200
Margin = 14%
Turnover = 1 times
ROI = (income*100/assets) = $41748*100/$298200 = 14%
Residual Income = (41748-298200*12%) = $5964
DIVISION Z
Revenues = $635083.33 * 3 = $1905250
Operating income = $104900
Operating assets = (104900-28690)*100/12 = $635083.33
Margin = (Income*100/Revenue) = $104900*100/$1905250 = 5.51%
Turnover = 3 times
ROI = (income*100/assets = 5.51% * 3 = 16.53%
Residual Income = $28690
