Answer:
14,000
Explanation:
im smart
Henry Crouch's law office has traditionally ordered ink refills 50 units at a time. The firm estimates that carrying cost is 35% of the $12 unit cost and that annual demand is about 235 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal?
Answer:
ordering costs = $22.34
Explanation:
economic order quantity (EOQ) = √(2SD / H)
D = annual demand = 235H = holding cost = 35% x $12 = $4.20S = cost per order = ?EOQ = 5050 = √[(2 x S x 235) / $4.20]
2,500 = (2 x S x 235) / $4.20
$10,500 = 2 x S x 235
S = $10,500 / (2 x 235) = $10,500 / 470 = $22.34
DPMO stands for:______
a) Defects Per Million Opportunity
b) Defectives Per Million Opportunity
c) Data Per Million Opportunity
d) all of the above
e) none of the above
Answer:
a) Defects Per Million Opportunity
Explanation:
DPMO is an acronym which stands for Defects Per Million Opportunity. Defects per Million Opportunities refers to a standard metric which represents the number of defects in a process per one million opportunities.
In order to calculate the DPMO, we divide the number of defects by the number of opportunities and then multiply by a million.
Additionally, when a quality characteristics or properties do not tally with a standard or specifications it is generally referred to as a defect.
Hence, in a six sigma approach to quality or level of performance, the defects per million opportunities (DPMO) is 3.4.
A bond par value is $1,000 and the coupon rate is 5.1 percent. The bond price was $946.02 at the beginning of the year and $979.58 at the end of the year. The inflation rate for the year was 2.6 percent. What was the bond's real return for the year
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 %
The most widely used presentation software program is Microsoft PowerPoint. You can produce a professional and memorable presentation using this program if you plan ahead and follow important design guidelines.
1. What text and background should you use in a darkened room?
A. Dark text on a light background
B. Dark text on a dark background
C. Light text on a dark background
2. How can you customize existing templates?
A. Eliminate boldface and italics
B. Adjust the color scheme
C. Add "visual cliches"
D. Add a company logo
E. Select different fonts
Answer:
1. C. Light text on a dark background
2. B. Adjust the color scheme
D. Add a company logo
E. Select different fonts
Explanation:
In order to produce a professional and memorable presentation using Microsoft Powerpoint program, the design guidelines should be applied in certain situations.
The text and background one should use in a darkened room is "Light text on a dark background"
Also, the correct way one can customize existing templates is to do the following:
1. Adjust the color scheme
2. Add a company logo
3. Select different fonts
When a deliverable arrived, Craig met with the team member responsible
for ordering the deliverable to confirm it was the correct model and size.
Which of the following project elements was Craig monitoring in this scenario?
a. Budget
b. Schedule
c. Scope
d. Risk
Answer:
Project Element Craig Monitored in this scenario:
d. Risk
Explanation:
The element of the project that Craig monitored ensures that the deliverable conforms with the correct model and size because there is the risk that this could not conform if a deliverable was not not checked with the team member who ordered the deliverable. Since higher risks of deliverables not conforming to model and size would render the whole project unsuccessful, Craig has to meet with the team member responsible. In order words, the meeting between Craig and the team member for confirmation of correct model and size eliminates the risks of non-conformance.
In the example above when deliverable came and Craig met with the team member for ordering confirming whether the model and size was correct, Craig was monitoring Risk. So the correct option is D.
Risk refers to the possibility chances that the desired or the expected result will be obtained from the activities that are undertaken. Risk is directly related to the reward of such activity.
In the example above where Craig confirms whether the model and size of goods arrived were correct with the help of the team member who ordered such deliverable, risk was being monitored.In this case the risk can be denoted by value of 1 as the chances of getting the correct model and size are equal with chances of getting the incorrect model and size. Risk can be denoted by beta .[tex]\rm Risk = \beta[/tex]
Monitoring of risk is an important aspect so as to ensure whether the activities undertaken for the benefit of the business are standing true to their efforts or not.
Hence, the correct option is D that Craig was monitoring risk by checking the deliverable was correct in terms of model and size with the help of a team member.
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Entries for Stock Investments, Dividends, and Sale of Stock Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year:
Feb. 24 Acquired 1,000 shares of Tett Co. stock for $85 per share plus a $150 brokerage commission.
May 16 Acquired 2,500 shares of Issacson Co. stock for $36 per share plus a $100 commission.
July 14 Sold 400 shares of Tett Co. stock for $100 per share less a $75 brokerage commission.
Aug. 12 Sold 750 shares of Issacson Co. stock for $32.50 per share less an $80 brokerage commission.
Oct. 31 Received dividends of $0.40 per share on Tett Co. stock.
Required:
Journalize the entries for these transactions.
Answer:
Date Account Titles and Explanation Debit$ Credit$
Feb 24. Investment - Company T 85,150
Cash {(1,000 * $85) + $150} 85.150
(To record the purchase of stock)
May 16 Investment - Company I 90,100
Cash{(2,500 * $36) + $100) 90,100
(To record the purchase of stock)
June 14 Cash{(400 * $100) - $75} 39,925
Investment {($85,150 * (400/1,000)} 34,060
Gain on sales of investment 5,865
(To record the sale of stock)
Aug 12. Cash {(750 * $32.50) - $80} 24,295
Loss on sale of investment 2,735
Investment {$90,100 * (750/1,500)} 27,030
(To record the sale of stock)
Oct 31 Cash ($0.4 * 600) 240
Dividend income 240
(To record dividend income)
Irene’s Dairy is deciding whether or not to enter the market for ice cream, currently monopolized by Mattie’s Ice-cream. If it enters the market, Mattie’s can either accommodate him and share his 10million in profits equally with Irene or fight him and cause a 5million loss for each in a price war. Given that Mattie could convincingly threatens to always fight, what would be Irene’s best response Group of answer choices
Group of answer choices:
Given that Mattie could convincingly threaten to always fight, what would be Irene’s best response
a. Not Enter
b. Run
c. Hide
d. Enter
Answer:
Given that Mattie could convincingly threaten to always fight, Irene's best response would be:
d. Enter
Explanation:
Irene Dairy should enter the market despite Mattie's threat to always fight. If Irene Dairy does not enter the market out of fear of Mattie's threat to fight, other firms are likely to enter and share the market with Mattie. Mattie should never be given the privileges of a monopolist. Irene Dairy should ensure that its ice creams are of higher quality and sustain the fight with Mattie, which cannot forever shed its profits in the name of fighting a competitor.
4. Suppose you hold a PUT option on Israeli shekels with a strike price of 3.4207s/$. If the spot rate on the final day of the option is 3.4329s/$, how much profit would you make trading $1,000,000? Should you do it?
Answer:
Profit $3,567
I would exercise my option by buying the shares before the expiration .
Explanation:
Calculation of how much profit would you make trading $1,000,000
First step is to multiply the spot rate on the final day by the trading amount
3.4329s*$1,000,000
=$3,432,900
Second step is to divide the spot rate option by the strike price
3,432,900/3.4207
=$1,003,567
Last Step is to find the profit
Profit =$1,003,567-$1,000,000
Profit=$3,567
Therefore the amount of PROFIT you would make trading $1,000,000 will be $3,567
Based on the above calculation I would exercise my option by buying the shares before the expiration .
Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year’s plans call for a $350 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $315,000, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $245 per 100 yards of XT rope.
Required:
1. Estimate Product XT's break-even point in terms of (a) sales units and (b) sales dollars.
2. Prepare a CVP chart for Product XT. Use 7,000 units (700,000 yards/100 maximum number of sales units on the horizontal axis of the graph, and $1,400,000 as the maximum dollar amount on the vertical axis.
3. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point.
Answer:
1a. 3,000 units
1b. $1,050,000
2. See attachment.
3. contribution margin income statement
Sales ($350 × 7,000 units) $2,450,000
Less Variable Cost ($245 × 7,000 units)) ($1,715,000)
Contribution $735,000
Less Fixed Costs ( $315,000)
Operating Profit $420,000
Explanation:
Break-even point (sales units ) = Fixed Cost ÷ Contribution per unit
= $315,000 ÷ ($350 - $245)
= 3,000
Break-even point (sales dollars) = Fixed Cost ÷ Contribution Margin Ratio
= $315,000 ÷ ($105/$350)
= $1,050,000
you have been given this probability distribution for the holding for the holding-period return for GM stock. what is the expected standard deviation for GM stock
Answer:
14.86%
Explanation:
For computing the standard deviation, first we have to determine the expected return and then variance which is shown below:
= (Expected return of the boom × probability of boom) + (expected return of the normal growth × probability of normal growth) + (expected return of the recession × probability of recession)
= (0.30 × 0.40) + (0.11 × 0.40) + (-0.10 × 0.20)
= 0.12 + 0.044 - 0.02
= 0.144
Now the variance would equal to the
= Probability × (Return - Expected Return) ^2
For boom:
= 0.40 × (0.30 - 0.144) ^2
= 0.0097344
For normal growth:
= 0.40 × (0.11 - 0.144) ^2
= 0.0004624
For recession:
= 0.20 × (-0.10 - 0.144) ^2
= 0.0119072
So, the total variance would be
= 0.0097344 + 0.0004624 + 0.0119072
= 0.022104
Now as we know that
Standard deviation is
[tex]\sqrt{variance} \\\\ = \sqrt{0.022104}[/tex]
= 14.86%
Ernest is applying for a carpentry apprenticeship program. He must take a test involving mathematical calculations including working with fractions and geometry. This is illegal because carpentry is a manual labor job and these tests are cognitive and not job-related.
A. True
B. False
Answer:
B. False
Explanation:
Since in the question, it is mentioned that Erney applied for a carpentry apprenticeship program. Also he took the test. This is not a illegal as if he wants to work in two specialized field than he could co but the work should be legal in nature and both the work are legal itself
Hence, the given statement is false
Your portfolio has a beta of 1.60. The portfolio consists of 16 percent U.S. Treasury bills, 36 percent Stock A, and 48 percent Stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of Stock B?
Answer: 2.58
Explanation:
Portfolio beta of 1.60 is weighted average of all the constituent betas.
US Treasury bills are riskless so beta is 0
Stock A has market risk so beta is 1.
1.60 = (0.16 * 0) + ( 0.36 * 1) + ( 0.48 * b)
1.60 = 0.36 + 0.48b
0.48b = 1.24
b = 2.58
if the fixed cost for the Job Shop were changed to $305,000, what would the new break-even point in numbers of units
Answer:
The question you have provided is missing important information needed for the calculation of break even point.
However step by step approach for the calculation of the break even point is given below :
Understand what break even point is :
Break even point is the level of operation where a Company neither makes a profit nor a loss.
Break even point in units calculation :
Break even point in units calculation = Fixed Costs for the Period ÷ Contribution per unit
Where, Contribution per unit = Selling Price per Unit less Variable Cost (Manufacturing and Non Manufacturing) per unit
Conclusion :
At Break Even Point level,Total Contribution will equal Total Fixed Cost (thus no profit nor loss)
The only data the question provided is :
Fixec Cost - $305,000
Which is the best example of price discrimination? Group of answer choices Higher price for a Ford truck than for a Ford car. Different price for a car wash on Tuesday versus Wednesday Average price of a 2000 square foot home in California being higher than in South Dakota.
Answer:
Different price for a car wash on Tuesday versus Wednesday
Explanation:
Price discrimination is when identical goods are sold at different prices from the same provider. A Ford truck and a Ford car are not identical items. The average price of a home in two very different states (one highly desirable due to temperature/climate, and one less desirable for the same reason) do not constitute price discrimination. But the days of the week someone is able to wash a car, at the same car wash is an identical service at a different price.
The best example of price discrimination is different price for a car wash on Tuesday versus Wednesday. The correct option is (B).
What do you mean by the price discrimination?A selling tactic known as price discrimination involves charging clients various rates for the same good or service depending on what the vendor believes they can persuade the customer to accept.
When a merchant uses pure price discrimination, they charge each consumer the highest price they will agree to. When a seller discriminates on pricing, each consumer pays a different price for the same good or service.
Price discrimination is most beneficial when the profit gained from separating the markets exceeds the profit gained from maintaining the united markets.
Therefore, the best example of price discrimination is different price for a car wash on Tuesday versus Wednesday.
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An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000,and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciationamount in the thirdyear and the BV at the end of the fifth year of life by each of these methods:
Answer:
straight line depreciation:
depreciation expense per year, the same for every year = ($60,000 - $12,000) / 14 = $3,428.57
book value end of year 1 = $56,571.43
book value end of year 2 = $53,142.86
book value end of year 3 = $49,714.29
book value end of year 4 = $46,285.72
book value end of year 5 = $42,857.15
double declining balance:
deprecation expense year 1 = 2 x 1/14 x $60,000 = $8,571.43
book value end of year 1 = $51,428.57
deprecation expense year 2 = 2 x 1/14 x $51,428.57 = $7,346.94
book value end of year 2 = $44,081.63
deprecation expense year 3 = 2 x 1/14 x $44,081.63 = $6,297.38
book value end of year 3 = $37,784.25
deprecation expense year 4 = 2 x 1/14 x $37,784.25 = $5,397.75
book value end of year 4 = $32,386.50
deprecation expense year 5 = 2 x 1/14 x $32,386.50 = $4,626.64
book value end of year 5 = $27,759.86
sum of digits:
depreciable value = $60,000 - $12,000 = $48,000
total sum of digits = 120 years
deprecation expense year 1 = $48,000 x 15/120 = $6,000
book value end of year 1 = $54,000
deprecation expense year 2 = $48,000 x 14/120 = $5,600
book value end of year 2 = $48,400
deprecation expense year 3 = $48,000 x 13/120 = $5,200
book value end of year 3 = $43,200
deprecation expense year 4 = $48,000 x 12/120 = $4,800
book value end of year 4 = $38,400
deprecation expense year 5 = $48,000 x 11/120 = $4,400
book value end of year 5 = $34,000
Carla Vista Enterprises buys back 600,000 shares of its stock from investors at $6.50 a share. Two years later, it reissues this stock for $6.00 a share. The stock reissue would be recorded with a debit to Cash for:
Answer:
The stock reissue would be recorded with a debit to Cash for $3,600,000, a debit to additional Paid in capital $300,000 and Credit to treasury stock $3,900,000
Explanation:
Description Debit$ Credit$
Cash 3,600,000
(600,000 * $6.00)
Additional Paid in capital 300,000
(600,000 x $0.50)
Treasury stock 3,900,000
(600,000 * 6.50)
(1) You go to Seven-11 and see the price of a super Slurpee quoted as $1.39. (2) You buy the super Slurpee and pay with $1.39 in cash. In the first instance money serves as ___________, while in the second instance money serves as ___________.
Answer:
In the first instance money serves as Measure of Value, while in the second instance money serves as Medium of Exchange.
Explanation:
The measure of value and medium of exchange are two of the functions of money which are explained as follows:
a) Measure of Value
The function of money as a measure of value permits all goods and services to be attached prices. That is, every commodity is valued in terms of money. Therefore, money gives the opportunity to compare values of goods and services. Measure of value is also referred to as a unit of value.
From the question, the function of money as a measure of value is what permits Seven-11 to quote a super Slurpee as $1.39.
b) Medium of exchange
The function of money as a medium of exchange provides the opportunity use money as an intermediary instrument in order to ensure goods and services purchased, sold or traded between parties at a standard value. This is different from what obtained under the trade by barter in which commodities had to be exchanged for commodities without any standard value.
From the question, the function of money as a medium of exchange allows an amount of $1.39 which is a standard value was exchanged for the super Slurpee.
Answer:
(1) Unit of Account
(2) Medium of Exchange
Explanation:
(1) A unit of account is the measure in which prices are quoted. Thus, when the price of the super Slurpee is quoted in dollars, money functions as a unit of account.
(2) A medium of exchange is what people trade for goods and services. Thus, when you buy the super Slurpee, you are offering the $1.39 in exchange for the super Slurpee. Money here serves as a medium of exchange.
Wentworth's Five and Dime Store has a cost of equity of 11.4 percent. The company has an aftertax cost of debt of 5 percent, and the tax rate is 35 percent. If the company's debt–equity ratio is .74, what is the weighted average cost of capital?
Answer:
WACC = 6.66 %
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund
WACC = (Wd×Kd) + (We×Ke)
After-tax cost of debt = Before tax cost of debt× (1-tax rate)
Kd-After-tax cost of debt = 5%
Ke-Cost of equity = 11.4%
Wd-Weight f debt -74%
We-Weight of equity = 26%
WACC = (0.74× 5%) + (0.26 × 11.4%) = 6.66 %
WACC = 6.66 %
Margaret’s car loan statement said that she would pay $7,683.20 in interest for a 5-year loan at an interest rate of 9.8%. Assuming this is an example of simple interest, how much did Margaret borrow to buy the car?
Answer: $15680
Explanation:
Principal = Unknown
Time = 5 years
Rate = 9.8%
Simple interest = $7683.20
Simple interest= PRT/100
7683.20 = (P × 9.8 × 5)/100
7683.20 = 49P/100
Cross multiply
768320 = 49P
P = 768320/49
Principal = $15680
Margaret borrowed $15680 to buy the car.
Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of 2021 include: beginning inventory at cost and retail were $60,000 and $120,000, net purchases at cost and retail were $312,000 and $480,000, and sales during the first six months totaled $490,000. The estimated inventory at June 30, 2021, would be:
Answer: $68,200
Explanation:
Estimated inventory = Difference between Goods available for Sale at Retail Price and Actual Sales made * Cost Retail Ratio
Retail value of Goods Available for Sale
= Retail Price of Beginning Inventory + Retail price of Purchases
= 120,000 + 480,000
= $600,000
Difference between Goods available for Sale at Retail Price and Actual Sales made
= 600,000 - 490,000
= $110,000
Cost to retail price ratio
= (Cost of Beginning Inventory + Cost of Purchases) / (Retail Price of Beginning Inventory + Retail Price of Purchases)
= (60,000 + 312,000) / (120,000 + 480,000)
= 62%
Ending inventory
= 110,000 × 62%
= $68,200
"Rihanna Company is considering purchasing new equipment for $379,200. It is expected that the equipment will produce net annual cash flows of $48,000 over its 10-year useful life. Annual depreciation will be $37,920. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.)"
Answer:
Cash payback period is 7.9 years
Explanation:
Payback period = Initial investment / Cash inflow per period
=$379,200 / $48,000
=7.9 years
Thus, the cash payback period is 7.9 years.
Note: It is assumed that the net annual cash flows are after considering the annual depreciation.
every organization has a set of unwritten norms that mambers of the organization accept and understand and which guide their actions. this system of shared meaning is
Answer:
Organization's culture.
Explanation:
Every organization has a set of unwritten norms that members of the organization accept and understand and which guide their actions. This system of shared meaning is organization's culture.
An organizational culture typically comprises of values, norms, beliefs and assumptions which defines the most appropriate ways of behaving in an organization (work environment).
Generally, an organizational culture is usually designed and established by the top executives or management of an organization and communicated to the various employees working there.
According to Robert Quinn and Kim Cameron, an organizational culture can be divided into four (4) main categories;
1. Adhocracy culture.
2. Clan culture.
3. Hierarchy culture.
4. Market culture.
Additionally, the significance of an organizational culture is simply that it creates a unique social, efficient and psychological environment of an organization.
Who is responsible for responding to workflow(s) for equipment dispatch requests through the business workplace require An approving authority must approve
Answer:
Commander
Explanation:
GCSS-Army is short for Global Combat Support System-Army. The GCSS is a section of the United States Army that is fielded under the 11th Armored Cavalry Regiment. There are the GCSS Wave 1 and GCSS Wave 2. These two groups have different roles.
The role of the Commander falls under the Wave 2 functions where he is required to perform the roles of maintenance, dispatch, unit supply, and property book functions. The Wave 1 function is mostly about allowing access to support supply activity functions. The commanders in any organization they work with can screen several transactions and give approval for equipment dispatch.
You currently have $3,000 in an account and plan on depositing $2,500 into the account each year, starting in one year. If the account earns an annual interest rate of 6.70%, how much will be in the account in 5 years, after making your final deposit?
Answer: $15,940.03
Explanation:
Principle Add Deposit Interest Total
Year 1 3000.00 201.00 3201.00
Year 2 3201.00 2500 381.97 6082.97
Year 3 6082.97 2500 575.06 9158.03
Year 4 9158.03 2500 781.09 12439.11
Year 5 12439.11 2500 1000.92 15940.03
After making deposits in a bank account as stated in the conditions given above, it can be inferred that an amount of approximately $15,940 will be available in the account after the end of 5 years.
What is the significance of deposits?Deposits can be referred to or considered as such engagement of monies with any commercial bank that also provides a predetermined rate of interest to the customers making such deposit. Interest acts like a return on investment in this case.
The above condition is a case of making recurring deposits at regular intervals. Upon satisfying the conditions given above, the amount of monies in the account can be computed as below,
At the end of year 1, the Total deposit after interest earned will be
3000 + 6.70% = $3,201.
At the end of two years,
(3201 + 2500) + 6.70% = $6,083.
At the end of three years,
(6083 + 2500) + 6.70% = $9,158.
At the end of four years,
(9158 + 2500) + 6.70% = $12439.
At the end of five years,
(12439 + 2500) + 6.70% = $15,940.
Thus, it can be concluded that at the end of five years the deposits made after earning the interest will be $15,940.
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Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $70,000 and $56,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdrew amounts equal to their salary allowances. Revenues were $668,000 and expenses were $520,000, for a net income of $148,000. a. Determine the division of $148,000 net income for the year. Schedule of Division of Net Income Farley Clark Total Salary allowance $ $ $ Remaining income Net income $ $ $ b. Provide journal entries to close the (1) revenues and expenses and (2) drawing accounts for the two members. For a compound transaction, if an amount box does not require an entry, leave it blank.
Answer:
a) Farley should get $83,200
Clark should get $64,800
b) December 31, closing entry income summary account
Dr Income summary 148,000
Cr Farley, Martin, capital 83,200
Cr Clark, Ashley, capital 64,800
Explanation:
Martin Farley:
$70,000 salary allowance
60% of remaining income
Ashley Clark:
$56,000 salary allowance
40% of remaining income
if net income = $148,000, then:
Farley should get $70,000 + (60% x $22,000) = $83,200
Clark should get $56,000 + (40% x $22,000) = $64,800
Steady Company's stock has a beta of . If the risk-free rate is and the market risk premium is , what is an estimate of Steady Company's cost of equity?
The question is incomplete as it misses the figures. The following is the complete question.
Steady Company's stock has a beta of 0.21. If the risk-free rate is 6.2% and the market risk premium is 6.9%, what is an estimate of Steady Company's cost of equity?
Answer:
The cost of equity is 0.07649 or 7.649%
Explanation:
The required rate of return or cost of equity capital is the rate required by the investors to invest in a stock based on the systematic risk of the stock as measure by the beta. The required rate of return or cost of equity can be calculated using the CAPM equation. The CAPM equation is,
r = rRF + Beta * rpM
Where,
rRf is the risk free raterpM is the risk premium on marketr = 0.062 + 0.21 * 0.069
r = 0.07649 or 7.649%
Labor productivity growth can be attributed to: a. improvement in technology. b. a decline in university attendance. c. an increase in population growth. d. a decline in the physical capital per worker.
Answer:
The answer is A. improvement in technology
Explanation:
Labor productivity growth is not relevant to a decline in university attendance.
Applying the Malthusianism theory, an increase in population growth can't lead to labor productivity growth because while that population growth is potentially exponential, the growth of resources is linear.
Finally, the physical capital per worker is the quantity of equipment and input resources that are used to produce output goods and services. It has no direct influence to the labor productivity growth.
Ultimate Sportswear has $150,000 of 8% non-cumulative, non-participating, preferred stock outstanding. Ultimate Sportswear also has $550,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $35,000. This dividend should be distributed as follows:
a. $8,750 preferred: $26,250 common.
b. $0 preferred: $35,000 common.
c. $12.000 preferred: $23.000 common.
d. $19.000 preferred: $16.000 common
e. $17,500 preferred; $17,500 соmmоn.
Answer:
c. $12,000 preferred: $23,000 common
Explanation:
Calculation of how the Dividend should be distributed
First step is to calculate for preferred stock outstanding
Preferred stock outstanding=$150,000 * 8% non-cumulative
Preferred stock outstanding=$12,000
Second step is to calculate for common stock outstanding
Using this formula
Common stock outstanding = Cash Dividend-Preferred stock outstanding
Let plug in the formula
Common stock outstanding=$35,000-$12,000
Common stock outstanding=$23,000
Therefore Preferred stock outstanding will be $12,000 while Common stock outstanding will be $23,000
Harvey’s Hardware is thinking about starting a line of lawnmowers to serve its customer base in the summer. The lawnmowers would be priced at $100 and Harvey the manager believes that they would sell 3 units. They have the following estimated costs.
Units Produced Labor Cost Total cost
0 0 100
1 50 150
2 100 200
3 200 300
4 350 450
What is the marginal cost of producing the third unit?
a. $400
b. $300
c. $200
d. $100
Answer:
Harvey's Hardware
Marginal cost of producing the third lawnmowers:
d. $100
Explanation:
Harvey's marginal cost for producing the third unit of lawnmowers is the additional cost that resulted when the total cost increased from $200 to $300. However, it can be deciphered from the case that the marginal cost for Harvey, which it is supposed to be a variable cost, is traceable to the direct labor costs. This implies that the fixed cost element for Harvey in the production of the lawnmowers has been relatively fixed at $100. It does not vary with the volume of production, while the direct labor costs vary with the volume of lawnmowers produced by Harvey.
Next week, Mortimer is preparing to go to work for the Illinois department of Child Services. He was surprised when his friends told him that he was going to have to pay one percent of his salary to the union that represents the unionized workers that would include Mortimer, whether he joined the union or not - a so-called agency fee to prevent 'free riders'. This was for services provided to Mortimer, including collective bargaining and grievance representation. Mortimer was shocked - no one had told him about this! What advice would you provide to Mortimer?
Answer:
The implication is that the Illinois Department of Child Services is a unionized workplace.
Mortimer will derive better benefits that surpass the costs of membership. He is covered in all collective bargains, even when he resigns his union membership. Unions negotiate for better working conditions, higher pays, and improved benefits.
When Mortimer has any grievance against the department, the union will also represent him, thereby making his life easier since unions can negotiate better with employers than individual workers.
Mortimer is even lucky to find a job at a unionized workplace because the jobs are not usually advertised as union members easily bring in their relatives and friends to occupy such vacancies.
Explanation:
Most of the disadvantages that Mortimer should complain about unions are disadvantages to the employer and not to him as an individual worker. For the employer, the union acts as a form of monopoly that can decide whether the workers would work or not. The unionized workers are not easy to replace with other workers.
