Final answer:
Brad's gift tax calculation involves determining the total value of gifts given and applying the annual exclusion. However, subtracting the annual exclusions from the total gifts given by Brad ($40,000) shows that there are no taxable gifts, resulting in no gift tax being due.
Explanation:
The question involves calculating Brad's gift tax considering that he and Angelina have chosen to split gifts. First, we'll calculate the total amount of gifts given by Brad. He gave each of his three children a cash gift of $6,500 totaling $19,500. Since gift splitting is elected, Angelina's additional gift of $41,000 to Lisa is also considered as half given by Brad, adding $20,500 to his gifts. The stock gift worth $54,000 to the Actor's Guild charity falls under charitable contribution and is not typically subject to gift tax.
After combining the amounts, we get Brad’s total gifts for the year as $40,000. We subtract the annual exclusion amount ($15,000 in 2021) for each gift to Fred, Bridget, and Lisa which amounts to $45,000 ($15,000 x 3). Therefore, $40,000 - $45,000 results in no taxable gift exceeding the annual exclusion. Since there are no taxable gifts exceeding the annual exclusion, there would be no gift tax incurred, and Brad's unified credit and previous taxable gifts are not affected.
Please note, this calculation is a basic example and actual gift tax calculations can vary depending on the tax code and any applicable exclusions or deductions that may apply at the time of the gifts.
Rob, Bill, and Steve form Big Company. Rob performs $45,000 of services for his 45 shares of the company. Bill transferred property with a basis of $5,000 for $75,000 of stock (75 shares). Steve contributes cash of $100,000 for his 100 shares. Which of the three must recognize income in the year of the formation?
Answer:
Rob and Bill.
Explanation:
How to calculate the free cash flow of the firm (also referred to as the firm’s free cash flow) directly?
Answer:
Explanation:
The formula to compute the free cash flow of the firm is shown below:
= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure
In this we deduct the changes in net capital and net capital expenditure and added the depreciation and amortization expenses to the Earning after tax so that the correct amount can be computed
At the beginning of Year 1, your auto-insurance premium for the next year is $300. If you have 0 accidents in a year your premium for the next year drops 10 percent, if you have 1 accident in a year your premium for the next year increases10 percent, and if you have 2 accidents in a year your premium for the next year increases 30 percent. Set up a spreadsheet that will determine the premium cost for Years 1–30. (Hint: # of accidents are up to you. Idea is to create an IF formula that will return the correct auto insurance premium in each year for any number of accidents.)
Answer:
Consider the following explanation.
Explanation:
step 1. Excel formula that will determine the premium cost for years 1-30 is as follow :
A=Accident
formula as follows,
step 2. if(a=0,(300-300*10%),if(a=1,(300+300*10%),if(a=2(300+300*20%))))
Final answer:
To calculate an auto-insurance premium over a 30-year period, input $300 for Year 1 and use an IF formula to adjust the premium based on the number of accidents each year, applying a 10% decrease, 10% increase, or 30% increase to the previous year's premium accordingly.
Explanation:
Creating a Spreadsheet for Auto-Insurance Premiums
To set up a spreadsheet that calculates auto-insurance premiums for 30 years based on the number of accidents, you can use the IF function in Excel or any other spreadsheet software. Here is a step-by-step guide:
Start with $300 as the premium for Year 1 in cell A1.In cell B1, enter the number of accidents for Year 1.In cell A2, write the IF formula: =IF(B1=0, A1*0.9, IF(B1=1, A1*1.1, IF(B1=2, A1*1.3, "Invalid"))). This formula checks the number of accidents in Year 1 and calculates the premium for Year 2 accordingly.Drag the formula in cell A2 down to cell A31 to apply it for all 30 years.In cells B2 to B31, enter the number of accidents for each subsequent year.Adjust the percentages in the formula if the premium adjustment rates change. By changing the number of accidents in column B, you can see how the premiums are adjusted each year based on your given conditions.
As of January 1, 2018, Farley Co. had a credit balance of $526,000 in its allowance for uncollectible accounts. Based on experience, 3% of Farley's credit sales have been uncollectible. During 2018, Farley wrote off $637,000 of accounts receivable. Credit sales for 2018 were $19,800,000. In its December 31, 2018, balance sheet, what amount will Farley report as allowance for uncollectible accounts? A. $705,000. B. $483,000. C. $1,120,000. D. $594,000.
Answer:
The correct answer is B
Explanation:
The amount which will Farley report as an allowance for uncollectible accounts in the balance sheet is computed as:
Uncollectible amount from sales = Sales × Percentage of credit sales which is uncollectible
where
Sales is $19,800,000
Percentage of credit sales which is uncollectible is 3%
Putting the values above:
= $19,800,000 × 3%
= $5,94,000
Total uncollectible amount = Uncollectible amount from sales + Credit balance of uncollectible - Amount wrote off
= $5,94,000 + $526,000 - $637,000
= $11,20,000 - $637,000
= $483,000
This is the process of reviewing all change proposals, estimating their impact on project goals wherever appropriate, approving or declining changes, and managing changes to deliverables, schedules, budgets and the project management plan:
a. Perform project monitoring.
b. Perform configuration management
c. Perform variance analysis and control.
d. Perform integrated change control.
Answer:
The correct answer is letter "D": Perform integrated change control.
Explanation:
Perform Integrated Change Control is the mechanism to review all demands for change; authorize changes and handle changes to deliverables, organizational process materials, project records, and project management plan; and communicate their management.
Perform Integrated Change Control is the process which involves reviewing all change proposals, estimating their impact, and managing changes to deliverables, schedules, budgets and the project management plan. It is a pathway of maintaining balance in the project when changes occur. Thus, ensuring the project remains beneficial even with changes.
Option D is correct
Explanation:The process of reviewing all change proposals, estimating their impact on project goals wherever appropriate, approving or declining changes, and managing changes to deliverables, schedules, budgets and the project management plan is known as Perform Integrated Change Control.
This process involves looking at how potential changes to the project could affect different elements, such as time, cost, and quality. One could think of it as a balancing act, where the project manager tries to keep all aspects of the project in equilibrium. For example, if a new requirement would demand more resources or time, the project manager would have to determine whether it's practical to adjust the schedule or budget to accommodate that change.
In conclusion, the process described is a critical part of project management aimed at ensuring that any changes to a project are manageable and beneficial to the project's overall goals.
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Yocum Company purchased equipment on January 1 at a list price of $120,000, with credit terms 2/10, n/30. Payment was made within the discount period and Yocum was given a $2,400 cash discount. Yocum paid $6,000 sales tax on the equipment, and paid installation charges of $1,760. Prior to installation, Yocum paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?
a. $125,360
b. $129,360
c. $131,760
d. $123,600
Answer:
b. $129,360
Explanation:
The total cost of the new equipment is given by the sum of the actual cost of the equipment (minus the cash discount) to the various incurred costs to the purchase and installation of the equipment (taxes, installation cost and concrete expense).
The total cost is:
[tex]C = (\$120,000-\$2,400) +\$6,000+\$1,760+\$4,000\\C=\$129,360[/tex]
The correct answer is b. $129,360
According to the Investment Advisers Act of 1940, which of the following statements is true regarding the information that an SEC-registered adviser is required to deliver or offer to deliver to their advisory clients?a. Written disclosure documents must be delivered or offered to clients annually. b. The adviser must send a copy of all records of account activity over the course of the previous year to each client.
Option A, Written disclosure documents must be delivered or offered to clients annually.
Explanation:
Investment advisers must submit, or offer to submit, at least annually the written communication document (Brochure) under the Brochure Rule of the Investment Advisers Act of 1940.
For all federally licensed investment advisers the guidelines, known formally as law 204-3, refer and set out the dates during the advising period during which they must supply content.
Choosing the Perfect financial advisory that suits their needs has wouldn't have to be difficult. The free device of Smart Asset matches in five minutes with financial trustees in their area. Every contractor has been named to act in the interests of Smart Asset and is legal.
A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2011. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,109.
Using straight-line amortization, what is the carrying value of the bonds on December 31, 2013?
a. $14,752,673
b. $14,955,466
c. $14,725,375
d. $14,747,642
Answer:
d. $14,747,642
Explanation:
For computing the carrying value of the bonds , first we have to determine the discount amortization for 3 years which are shown below:
= (Issued amount - proceeds from the bonds) ÷ time period × number of years
= ($15,000,000 - $14,703,109) ÷ 20 years × 3 years
= $44,533.80
Now the carrying value would be
= Proceeds from the bonds + discount amortization for 3 years
= $14,703,109 + $44,533.80
= $14,747,642
An analyst is forecasting net income for Excellence Corporation for the next fiscal year. Her low-end estimate of net income is $250,000, and her high-end estimate is $350,000. Prior research allows her to assume that net income follows a continuous uniform distribution. The probability that net income will be greater than or equal to $337,500 is ________. 0.125
Answer:
12.5%
Explanation:
We are estimating the probability to be greater than or equal to $337,500
This probability will be
P(X > $337,500) = (high-end estimate - 337500) / (337500 - low-end estimate)
P(X > $337,500) = (350000-337500) / (350000-250000) = 0.125
= 0.125*100
= 12.5%
An individual borrowed money at the bank to send his daughter to college. Instead of purchasing Credit life insurance, he used an existing life insurance policy to secure the debt. This would be called a ___________
Answer:
The correct answer is: Collateral Assignment.
Explanation:
Collateral assignment of a life insurance sets a lender as the beneficiary in front of the decease of the insured, so the benefits will be used to cover the debt of that loan. The lender could be the insured of the life insurance or anybody else the insured decides to appoint.
Final answer:
A loan secured with an existing life insurance policy is known as a collateralized loan. It offers the lender security in the form of the policy benefits if the borrower fails to repay the loan.
Explanation:
When an individual borrows money from a bank and secures the debt with an existing life insurance policy, this arrangement is called a loan backed by collateral. Collateral in financial terms often includes property or equipment, but it can also be other assets such as a life insurance policy. Such collateral provides assurance to the lender that if the loan is not repaid, the bank has the right to seize the policy benefit to recover the debt.
1. ""Organizations are more likely to succeed when they have an adaptive culture."" What can an organization do to foster an adaptive culture? 2. Is it possible to have a knowledge of what an organizational culture is before you become a part of the organization? How important is it for you to align yourself with your organizational culture? g
Answer:
Answer to the 1st Question.
To allow a diverse employees from different backgrounds to be a part of the organizationFacilitating friendship, trust, employee loyalty and skills through employee development programsMaintaining a culture of transparency and openness where important information regarding the company are not hidden from the employeesReducing the separations and segregation between different levels of employees to a reasonable levelAnswer to the 2nd Question.
Yes it is possible. But the knowledge is Limited. This is because the only possible ways for you to understand the culture before going in is by asking someone or through reading! However, culture is not a "text book" thing and to understand it clearly you have to go in and be exposed to it!
Answer to the 3rd Question.
It is really important if you need to stay with the organization for a long time. If you are unable to adapt to the culture of that particular organization, then you might not be able to cope with your colleagues and superiors and eventually you may be forced to leave the organization,
Explanation:
I think I did that in the upper part!!!!
A rotary engine powers a vertical takeoff and landing (VTOL) personal aircraft known as the Moller Skycar M400. It is a flying car known as a personal air vehicle (PAV), and it is expected to make its first untethered flight in 2020. The PAV has been under development for 28 years at a total cost of $120 million. Assuming the $120 million was spent in an equal amount each year, determine the future worth at the end of the 28-year period at an interest rate of 8% per year.
Answer:
$409.18million
Explanation:
Since the amount of $120 million is to be spend in equal installments over a period of 28 years, therefore it will be appropriate to calculate the Future worth using future value of annuity formula:
Future value of annuity = (R((1+i)^n-1)/i)Here R= Installment per year=$120/28=$4.29millioni=interest rate=8%n= number of year=28Future worth at the end of 28 years=4.29(((1+8%)^28-1)/8%) =4.29(7.63/8%) =4.29*95.38 =$409.18million
The future worth of the $120 million spent on the development of the Moller Skycar M400 over 28 years at an interest rate of 8% per year is approximately $1,357.91 million.
To determine the future worth of the $120 million spent on the development of the Moller Skycar M400 over 28 years at an interest rate of 8% per year, we can use the future value formula for equal annual payments:
\[FV = PMT \times \left( \dfrac{(1 + r)^n - 1}{r} \right)\]
Where:
- \(FV\) is the future worth (the amount we want to calculate).
- \(PMT\) is the equal annual payment (the annual cost of development), which is $120 million / 28 years = $4.2857 million per year.
- \(r\) is the annual interest rate, which is 8% or 0.08.
- \(n\) is the number of years, which is 28.
Now, plug these values into the formula:
\[FV = $4.2857 \, \text{million} \times \dfrac{(1 + 0.08)^{28} - 1}{0.08}\]
\[FV = $4.2857 \, \text{million} \times \dfrac{(1.08^{28} - 1)}{0.08}\]
\[FV \approx $4.2857 \, \text{million} \times \dfrac(25.339) {0.08}\]
Now, calculate the future worth:
\[FV \approx $4.2857 \, \text{million} \times $316.7375\]
\[FV \approx $1,357,913.06 \, \text{million}\]
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The market value of the equity of Hudgins, Inc., is $645,000. The balance sheet shows $53,000 in cash and $215,000 in debt, while the income statement has EBIT of $91,000 and a total of $157,000 in depreciation and amortization. What is the enterprise value-EBITDA multiple for this company?
Answer:
The enterprise value- EBITDA multiple for this company is 3.25
Explanation:
IN order to find the Enterprise value-EBITDA multiple we will have to find the enterprise value of the company and the EBITDA of the company and then divide the enterprise value by the EBITDA.
In order to find the enterprise value we will have to use the following formula
Enterprise Value = Market Capitalization + Total Debt - Cash and equivalents
The Market Cap of the company is $645,000, the cash is $53,000 and the debt is $215,000, we will put these values in the formula.
EV= 645,000+215,000-53.000=807,000
Now we have to find the EBITDA of the company. EBITDA stands for earnings before interest, tax, depreciation and amortization. We already know the EBIT which is $91,000, in order to find the EBITDA we will add the depreciation and amortization to the EBIT.
91,000+157,000=248,000
Now in order to find the multiple we will divide EV by EBITDA
807,000/248,000=3.25
The enterprise value-EBITDA multiple for Hudgins, Inc. is 3.26.
Explanation:To calculate the enterprise value-EBITDA multiple, we need to find the enterprise value and the EBITDA. Enterprise value is the market value of equity plus debt minus cash. In this case, the enterprise value is $645,000 + $215,000 - $53,000 = $807,000. EBITDA is equal to EBIT plus depreciation and amortization, which is $91,000 + $157,000 = $248,000. Finally, to find the enterprise value-EBITDA multiple, we divide the enterprise value by EBITDA:
Enterprise value-EBITDA multiple = Enterprise Value / EBITDA = $807,000 / $248,000 = 3.26
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How much life insurance would a person buy if he wants to leave enough money to ensure that their family will receive $40,000 dollars in interest, of constant year 0 value dollars? The interest rate expected from banks is 7.5 percent and the inflation rate is expected to be 3 percent per year.
Answer:
amount of insurance required = $888888.889
Explanation:
given data
cash flow = $40000
expected return = 7.5%
inflation rate = 3%
to find out
amount of insurance required
solution
we get here amount of insurance required that is equal to present value of perpetuity ..................1
so it will be
amount of insurance required = Cash flow ÷ (expected return - inflation rate) ....................2
put here value we get
amount of insurance required = [tex]\frac{40000}{0.075-0.03}[/tex]
amount of insurance required = $888888.889
During the period 2006 through 2010, housing production in the United States fell from a rate of over 2.27 million housing starts per year to a rate of under 500,000, a decrease of over 80 percent. At the same time, the number of new households slowed to a trickle. Students without a job moved in with their parents, fewer immigrants came to the United States, and more of those already here went home. If there are fewer households, it is a decline in demand. If fewer new units are built, it is a decline in supply. Assume that the quantity supplied and quantity demanded are equal at 50,000 units and at a price of $200,000. 300,000 250,000 200,000 150,000 100,000 1.) Using the line drawing tool, draw and label a standard supply and demand diagram which shows the demand for new housing units that are purchased in the market each month, and the supply of new units built and put on the market each month. 2.) Using the line drawing tool, draw and label a line to show a decline in demand on the same diagram
A standard supply and demand diagram can be used to show the decline in the housing market from 2006 to 2010. The decline in demand is represented by a leftward shift of the demand curve, leading to a new, lower equilibrium point for price and quantity of units.
Explanation:The given question is related to Economics, specifically the concepts of supply and demand in the housing market. You start by sketching a standard supply and demand graph with price on the y-axis and quantity on the x-axis. Initially, the demand and supply curves intersect at 50,000 units and a price of $200,000 – label this as point 'A'.
To show a decline in demand, you would draw and label a new demand curve that shifts to the left of the original demand curve. This represents a decrease in the number of households that require housing each month. The point at which this new demand curve intersects with the original supply curve is the new equilibrium point – label this as 'B'.
This diagram visually illustrates the impact of a reduction in demand on housing units over the period of 2006 to 2010, showing how it leads to a decrease in both the quantity of units supplied and their market price.
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Loazia Inc. incurred the following costs during the year ended December 31, 2018: Laboratory research aimed at discovery of new knowledge $270,000 Costs of testing prototype and design modifications 75,000 Quality control during commercial production, including routine testing of products 270,000 Construction of research facilities having an estimated useful life of 6 years but no alternative future use 360,000 The total amount to be classified and expensed as research and development in 2018 is a. $675,000. b. $975,000. c. $705,000. d. $405,000.
Answer:
Option (C) is correct.
Explanation:
Given that,
Laboratory research = $270,000
cost of testing prototype = $75,000
construction of research facility = 360,000
The total amount to be classified and expensed as research and development in 2018:
= Laboratory research + cost of testing prototype + construction of research facility
= $270,000 + $75,000 + 360,000
= $705,000
Final answer:
The total amount to be classified and expensed as R&D by Loazia Inc. in 2018 is $705,000, which includes the costs for laboratory research, prototype testing and design modifications, and construction of research facilities with no alternative use.
Explanation:
The total amount to be classified and expensed as research and development (R&D) for Loazia Inc. in the year ended December 31, 2018, includes the costs of laboratory research for discovery of new knowledge, testing of prototype and design modifications, and the construction of research facilities with no alternative future use. The laboratory research costs amount to $270,000, the costs for prototype testing and design modifications are $75,000, and the cost for the construction of research facilities, which solely serve the purpose of R&D and have no alternative use thus making them a sunk cost, is $360,000. This sums up to a total of $705,000, which means the correct answer is c. $705,000. It's important to note that costs for quality control during commercial production are not included in R&D expenses as they are considered part of the manufacturing process.
Last year, Wesson Company sold 10,000 units of its only product. If sales increase by 12% in the current year, how will unit variable cost and unit fixed cost be affected? Unit Variable Cost Unit Fixed Cost
A) Remains constant Remains constant
B) Increases Decreases
C) Decreases Remains constant
D) Remains constant Decreases
E) Remains constant Increases
Select one:
a. Choice A
b. Choice B
c. Choice C
d. Choice D
e. Choice E
Answer:
Correct answer is D, Unit variable cost remains and unit fixed cost decrease
Explanation:
The relationship between sales volume and unit fixed cost is inverse. Which means, the larger the volume increase of sales, the smaller the unit cost fixed cost in the period. No matter how much is the increase in sales, the total fixed cost REMAINS, that is why it affects only on per unit cost. VARIABLE UNIT COST on the other hand, is constant and will never be affected on the increase in sales volume. The relationship between total variable cost and sales is directly proportional.
On December 31, 2008, Pico acquired $250,000 par value of the outstanding $1,000,000 bonds of its subsidiary, Sico, in the market for $200,000. On that date, Sico had a $100,000 premium on its total bond liability.Which one of the following is the net amount of gain or loss that will be recognized by Pico in its December 31, 2008, consolidated financial statements as a result of its intercompany bonds?A. $25,000B. $50,000C. $75,000D. $150,000
Answer:
C. $75000
Explanation:
Upon consolidation of financial statements all inter-related/company sales/provision for unrealized profits (PUPs) need to be eliminated in full. In this case, there are two important things to focus on,
FIRST, the bonds have been issued at a discount and
SECOND, there is a total $100,000 premium on the bond liability, but because only 25% ($250,000/$1,000,000× 100 = 25%) of the bonds are inter-company, only 25% of the premium is eliminated. Thus, $25,000 of premium and the $50000 of discount totaling $75000 achieved is the total net amount of gain that PICO will recognize in its December 31, 2018 consolidated financial statements.
Glen filed his 2017 return on March 15, 2019. He is due a $400 refund on his 2017 return. What is the failure-to-file penalty for his 2017 return?a. $0b. $24c. $210d. $400
Answer:
a. $0
Explanation:
If a person has refund due, then there is no penalty on filing late return. Glen filed his return of year 2017 in year 2109. There will be $0 penalty, since he has his refund due.
Which of the following situation would make transaction costs too high to negotiate and therefore the Coase Theorem would not apply?
a. Only a few people are bothered by the pollution in the area
b. Orte Tirm is the cause of the poltution
c. Many people are bothered by pollution in the area
d. Many firms are working together to eliminate pollution
Answer:
d. Many firms are working together to eliminate pollution
Explanation:
Coase theorem is a private solution for the two parties who agree to reduce externalities, i.e., pollution. They negotiate in such a manner that the costs are low as one party takes over other party's polluted assets to reduce pollution. When there are more parties or firms involved to eliminate pollution, it will pose high transaction costs. Therefore, the Coase theorem will not work in that case. So, the option "D" is the correct choice.
Final answer:
The Coase Theorem would not apply in situation d. Many firms are working together to eliminate pollution because it would result in high transaction costs.
Explanation:
The correct answer is d. Many firms are working together to eliminate pollution.
The Coase Theorem states that if transaction costs are low and property rights are well-defined, then parties will negotiate and internalize externalities in order to reach an efficient outcome. However, if transaction costs are too high, it becomes difficult for parties to negotiate and reach an agreement.
In option d, many firms working together to eliminate pollution may lead to high transaction costs. Coordinating the efforts of multiple firms can be challenging and time-consuming, resulting in higher costs associated with negotiation.
The ________ identifies the income at which half of the population earns more and half of the population earns less.Choose one answer.a. mean household incomeb. poverty levelc. median household incomed. Gini coefficient
Answer:
c. median household income
Explanation:
Median household income is the amount that divides the distribution of income into two equal groups: half has income above this amount, and the other half has income below this amount.
Mean household(average) income (average) is the amount obtained by dividing the total aggregate income of the group by the number of units in this group.
The poverty level is the minimum amount of income required to live at an adequate standard of living. Almost all countries have poor citizens. The poverty line constitutes an economic tool used to make decisions about the situations of these individuals or to work on issues related to poverty prevention.
The Gini coefficient measures the inequality amount values of a frequency distribution (for example, income levels). The Gini coefficient is a factor for measuring whether the distribution of national income is equal in a country. The coefficient takes values between 0 and 1, and higher values correspond to greater inequality. For example, in a society where everyone has the same income, the Gini coefficient is 0, whereas a society where all income is collected in one person (more than one member) is 1. The Gini coefficient is found by dividing the area above the Lorenz curve by the entire area below the 45-degree equality line. While the Gini coefficient can be used to investigate inequality in disciplinary institutions, it is also used in various fields such as sociology, economics, ecology, engineering, agriculture.
Economy of Economy Stock A Stock B Recession .20 .010 –.35 Normal .55 .090 .25 Boom .25 .240 .48
a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
a. STOCK A
State of nature R(%) P ER R-ER R - ER2.P
Recession 0.010 0.20 0.002 -0.1015 0.00206045
Normal 0.090 0.55 0.0495 -0.0215 0.0002542375
Boom 0.240 0.25 0.06 0.1285 0.0041280625
ER 0.1115 Variance 0.00644275
STOCK B
State of nature R(%) P ER R - ER R - ER2.P
Recession -0.35 0.20 -0.07 -0.5375 0.05778125
Normal 0.25 0.55 0.1375 0.0625 0. 0021484375
Boom 0.48 0.25 0.12 0.2925 0.021389062
ER 0.1875 Variance 0.08131875
Expected return of stock A = 0.1115 = 11.15%
Expected return of stock B = 0.1875 = 18.75%
b. Standard deviation of stock A = √0.00644275 = 0.0802
Standard deviation of stock B = √0.08131875= 0.2852
Explanation:
In the first case, there is need to calculate the expected return of each stock by multiplying the return by probability.
In the second case, we need to obtain the variance. The square root of variance gives the standard deviation. Variance is calculated by deducting the expected return from the actual return, then, raised the difference by power 2 multiplied by probability.
To find the expected return for each stock, multiply the probability of each economic condition by the return of the stock in that condition and then sum them up. To calculate the standard deviation of each stock, calculate the variance by computing the sum of squared differences between each return and the expected return, weighted by the probability of each economic condition, then take the square root of the variance.
Explanation:a. To calculate the expected return for each stock, we multiply the probability of each economic condition by the return of the stock in that condition and then sum them up. For Stock A:
(0.20)(0.010) + (0.55)(0.090) + (0.25)(0.240) = 0.0513 or 5.13%.
For Stock B:
(0.20)(-0.35) + (0.55)(0.25) + (0.25)(0.48) = 0.112 or 11.2%.
b. To calculate the standard deviation for each stock, we need to calculate the variance first. The variance is the sum of the squared differences between each return and the expected return, weighted by the probability of each economic condition. The standard deviation is the square root of the variance.
For Stock A:
Var(A) = (0.20)(0.010 - 0.0513)^2 + (0.55)(0.090 - 0.0513)^2 + (0.25)(0.240 - 0.0513)^2 = 0.000442
Stdev(A) = √Var(A) = 0.021 or 2.1%.
For Stock B:
Var(B) = (0.20)(-0.35 - 0.112)^2 + (0.55)(0.25 - 0.112)^2 + (0.25)(0.48 - 0.112)^2 = 0.084
Stdev(B) = √Var(B) = 0.29 or 29%.
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Under sec rules establashed by nsmia, an individual that files a registration application will be denied if the applicant has:
Answer:
The correct answer is: served one (1) year or more in jail.
Explanation:
The National Securities Markets Improvement Act (NSMIA) is a U.S. securities regulation law. It aims to give more regulatory power to the federal government. Under this law, people who would like to apply to become securities brokers must not have a prison history as inmates for more than one (1) year. Otherwise, their application will be denied.
Links Golf Course is planning for the coming golfing season. Investors would like to earn a 10% return on the company's $60,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $32,000,000 for the season. About 600,000 rounds of golf are expected to be played each year. Variable costs are about $15 per round of golf. Links Golf Course is a price-taker and will not be able to charge more than its competitors, who charge $75 per round of golf. Compute the operating profit that will be earned.Select one:A. $6,000,000B. $46,800,000C. $87,800,000D. $5,800,000E. none of the above
Answer:
Option (E) is correct.
Explanation:
Revenue at the competitor price:
= Rounds of golf are expected to be played each year × Charge per round
= 600,000 × $75 per round
= $45,000,000
variable Cost:
= Rounds of golf are expected to be played each year × Variable cost per round
= (600,000 × $15)
= $9,000,000
Contribution Margin:
= Revenue at the competitor price - variable Cost
= $45,000,000 - $9,000,000
= $36,000,000
Less: Fixed Costs = 32,000,000
Operating profit:
= Contribution Margin - Fixed Costs
= $36,000,000 - $32,000,000
= $4,000,000
So, the operating profit is $4,000,000.
Links Golf Course has a total revenue of $45,000,000 from playing rounds, with total variable costs of $9,000,000, and fixed costs of $32,000,000. The operating profit calculates to $4,000,000, which does not meet the investors' expected 10% return on $60,000,000 of assets. The correct option is E. none of the above.
To calculate the operating profit for Links Golf Course, we need to consider the fixed costs, variable costs, total assets, and the expected return rate. The formula to calculate operating profit is: Operating Profit = Total Revenue - (Fixed Costs + Variable Costs).
First, let's calculate the total revenue. If the golf course charges $75 per round and expects to see 600,000 rounds played, the total revenue would be:
Total Revenue = Price per Round × Number of Rounds = $75 × 600,000 = $45,000,000
Next, we calculate the total variable costs:
Total Variable Costs = Variable Cost per Round × Number of Rounds = $15 × 600,000 = $9,000,000
Now we can calculate the operating profit:
Operating Profit = $45,000,000 - ($32,000,000 + $9,000,000) = $45,000,000 - $41,000,000 = $4,000,000
However, since the investors expect a 10% return on $60,000,000 of assets, which is $6,000,000, the operating profit does not meet their expected return. Therefore, the answer closest to our calculation is E. none of the above.
You’ve dreaded it for a while, but now you feel prepared. In 30 minutes you’ll have to terminate Tim, a 12-year employee who is beloved by everyone in the firm. Unfortunately, he just hasn’t performed very well since his wife died three years ago and while he was given every chance to regain his performance, he has just continued to slide. Which of the following elements of communication is MOST likely to influence Tim’s perception of your communication effectiveness?
A)Tone
B)Pace
C)Indirect Non-verbals
D)Formailty
Answer: Tone of communication
Explanation: Voice tone is really about the feeling behind what you mean. There's no shift in your voice, but the way you speak to someone. If you're angry, you might be brusque; if you're pleased, you might be delighted with your expression.
In simple words, tone depicts the attitude of the employees while making a statement to their audience. It shows the maturity level of the dictator and shows how he or she handles the situation.
Hence from the above we can conclude that tone would be the most important element in the given case as the audience of that message can get emotionally affected from that information.
Which of the following is true about classified ad Web sites?
a. They do not allow the search to be narrowed down to a particular city.
b. They do not list local advertisers.
c. They are typically supported by ad banners of other advertisers.
d. They do not allow the search to be extended nationwide.
e. They do not offer free classified advertising opportunities.
Answer:
The correct answer is letter "C": They are typically supported by ad banners of other advertisers.
Explanation:
A classified ad website is the type of web page that allows a free advertisement in different fields without charge. By doing this, the websites promote the purchase, selling, and bargain of products from different kinds. Usually, the classified website is supported by other advertisers who pay for publishing on the same webpage. Examples of free posting sites are eBay, Craiglist, and OLX.
Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders.
Both types of distributors purchase the same product.
The customer activities and costs for the previous quarter are as follows:Activity JIT distributors Non-JIT distributorsSales Orders 500 30Sales Calls 30 30Service Calls 200 90Average Order Size 90 1,400Manufacturing Cost/Unit $50 $50Customer Costs:Processing Sales Orders $160,000Selling Goods $155,000Servicing Goods $195,000Total $500,000Calculate the activity rate for servicing goods. (Note: Round answer to two decimal places.)
a. $1,000.54 per service callb. $680.50 per service callc. $750.10 per service calld. $672.41 per service calle. $1,089.25 per service call
Answer:
d. $672.41 per service call
Explanation:
The computation of the activity rate for servicing goods is shown below:
= (Total servicing good cost) ÷ (Total service calls)
= $195,000 ÷ 290
= $672.41 per service call
The total service call would be
= JIT distributors + Non-JIT distributors
= 200 + 90
= 290
All other information which is given is not relevant. Hence, ignored it
Barry was assigned recently to a large team working on a major software release that was taking longer than expected. Barry and the other latecomers into the project spent a month partnered with a senior programmer who went over the project in detail with them and got them up to speed. Unfortunately, this training put the project even farther behind schedule. After a few months of working on the project with so many other programmers, Barry's work output becomes noticeably lower than it was before when he was working independently. Barry's reduced work output is most likely due to __.
Answer:
Social loafing
Explanation:
Social loafing
Social loafing- it is refer to that condition when any member of a team show lack of interest when he/she is working in team than working alone. It is refer to mindset that people are more often work carelessly when task are assigned for group, it happened because sometimes people think some other member from group will take care of the assigned task.
Barry's reduced work output is most likely due to social loafing, where individuals exert less effort when working in a group.
Explanation:Barry's reduced work output is most likely due to social loafing. Social loafing refers to the phenomenon where individuals exert less effort when working in a group because their individual performance cannot be evaluated separately from the group. This can lead to a decline in performance, especially on easy tasks.
If the reserve requirement is 5 percent, a bank desires to hold no excess reserves, and it receives a new deposit of $10, then this bank a. must increase its required reserves by $10. b. will initially see its total reserves increase by $10.50. c. will be able to make new loans up to a maximum of $9.50. d. All of the above are correct.
Answer:
c. will be able to make new loans up to a maximum of $9.50
Explanation:
If the reserve requirement is 5% it means that the bank is required to reserve(not loan out) 5% of it's reserves so in this case the bank is required to 5% of 10 (0.05*10) $0.50 as reserves and can loan out $9.50 (10-0.50). As the bank has no desire to hold on to excess reserves we can be sure that it will only hold 0.50 as reserve as it is required and loan out $9.50. So statement c is correct.
Statement A is incorrect because the bank does not need to increase required reserve by $10 but by just $0.50.
Statement B is incorrect a deposit of $10 cannot increase the total reserve by $10.50 as it is impossible mathematically.
Statement d is incorrect because 2 of the 3 statements are incorrect therefore all of the above statements cant be correct.
Which of the following is NOT a benefit of designing for producibility? [Identify the methods and objectives of manufacturing that influence system design.]
a. Little or no testing required
b. Lower overall cost
c. Quicker product introduction
d. Stable product design
Answer:
The correct answer is letter "A": Little or no testing required.
Explanation:
Producibility design allows a company to have a reliable product design aligned with manufacturing processes that reduce overall costs. By doing so, the efficiency of the product becomes higher because of the trial processes the firms go through, leading to a quicker introduction of the good to customers.
The option 'a. Little or no testing required' is the incorrect choice because testing is critical for ensuring the safety and quality of the product, regardless of its producibility. Producing a design that is optimized for manufacturing still necessitates adequate testing at various stages.
Explanation:The question poses a scenario regarding the benefits of designing a product with producibility in mind. In the context of manufacturing and system design, producibility refers to the extent to which a product is designed for easy production, which typically results in lower costs, quicker market introduction, and a more stable design. The incorrect option among the provided benefits of designing for producibility is a. Little or no testing required.
Testing is a critical component of the design process and is necessary to ensure product quality and safety, and it cannot be substantially reduced or eliminated simply because producibility has been considered. Contrarily, the concepts of incremental design, detailed design processes, and an understanding of stakeholder needs all underscore the importance of rigorous testing, iterating, and refinement in order to reach high product standards and market success.