This new radio network will be created as the result of: joint venture. As The company will broadcast to a potential audience of 25 million under the name Capital Disney. Hence, option A is correct.
What is joint venture?A joint venture is a business collaboration involving two or more participants who agree to cooperate in order to achieve a specific objective. Joint ventures are a general term for a variety of cooperative business agreements that involve varied degrees of integration and may or may not have a set duration.
SAB Miller and the Molson Coors Brewing Company. This joint venture example involves reaching out to new geographic markets: To distribute all of their beer brands in the US and Puerto Rico, Molson and SABMiller established a joint venture.
Joint ventures are collaborations between two or more people or entities working on a single project, as opposed to partnerships, which consist of just one person.
Thus, option A is correct.
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What are some of the advantages and disadvantages of permitting auditors to provide nonaudit services (such as tax services) to clients?
Final answer:
Permitting auditors to provide nonaudit services to clients has advantages such as convenience, better understanding of the client's business, and cost efficiency. However, there are disadvantages including conflict of interest, reduced skepticism, and perception of bias.
Explanation:
Permitting auditors to provide nonaudit services, such as tax services, to clients has both advantages and disadvantages. Some advantages include:
Convenience: Clients can have their auditing and tax needs addressed by the same firm, saving time and effort in engaging multiple service providers.Better understanding of the client's business: By providing nonaudit services, auditors gain a deeper understanding of the client's financial operations, which can enhance the quality of their auditing services.Cost efficiency: Bundling audit and nonaudit services may result in cost savings for clients.However, there are also disadvantages to permitting auditors to provide nonaudit services:
Conflict of interest: Providing nonaudit services to clients may compromise the independence and objectivity of auditors, especially if the nonaudit services are lucrative.Reduced skepticism: Auditors may become less skeptical when auditing their own tax advice or nonaudit services, which can potentially result in lower quality audits.Perception of bias: Clients and stakeholders may perceive a lack of independence if the same firm provides both audit and nonaudit services, raising doubts about the credibility of the financial statements.Daniel, the owner of a bookstore, decides to reinvest his personal profits from the current fiscal year toward renovating the store and expanding its inventory. In the context of owners' equity, the profits that Daniel reinvests in the bookstore are called:
A. bonus shares.
B. retained earnings.
C. current liabilities.
D. equity releases.
Answer:
B. retained earnings
Explanation:
Retained earnings -
It refers to the amount of monetary value left on with any business after paying the dividends to the shareholders , is referred to as the retained earnings .
The amount left with the company can be used to reinvest for any other new project , in order to expand the business .
The earnings can be positive as well as negative .
Hence , from the given scenario of the question ,
Daniel uses his retained earnings in order to expand his business .
Which of the following NOT a reason firms are expanding their supply bases to include foreign suppliers?a. Lower product costb. Lower shipping rates due to lower tariffsc. Better product qualityd. Overseas supplier holding the patent to the product
Answer:
The answer b. Lower shipping rates due to lower tariffs
Explanation:
Lower overall product cost is a reason for engaging in international trade
If a corporation has only one class of stock, the account is entitled Common Stock or a.Owners' Stock. b.Preferred Stock. c.Capital Stock. d.Member Stock.
Answer:
c. Capital Stock.
Explanation:
The Common stock is also known as Capital stock if a corporation has only one class of stock. Common stock gives voting rights to its shareholders while preferred stock does not give voting rights. Capital stock gives shareholders an ownership position in the company. It gives rights and powers to shareholders. Investors buys this stock for a regular stream of dividend income as well as earn capital gains in the end when they sell the stock.
Answer:
capital stock.
Explanation:
Internal resources, such as the legal department, training department, information technology department, tend to be under-utilized, leading to a death spiral, when: a. the internal pricing system utilizes full costs b. All of the answers are correct c. managers may decide to reduce the quantity of services used d. the internal pricing system seeks to recover sunk costs e. managers may choose whether to purchase the service internally or externally
Answer:
b. All of the answers are correct.
Explanation:
Death Spiral is a situation when a company's goods or services produced are declining and fixed cost is same. The company will be exposed to a burden of fixed cost if its output is reduced.
In this question the various departments of a company are underutilized. The fixed price allocated to each department will be same hence creating a burden on a company's funds. Managers may decide to reduce the services they use to reduce the cost of their department. The internal pricing system will start recovering the sunk cost of company. Managers will also consider purchasing services internally or externally whichever is cost effective. All of the statements are correct there b is correct option.
A job cost sheet is a form prepared for each separate job that records the materials, labour, and overhead costs charged to the job. True or False
Answer:
True
Explanation:Job cost sheet - it is formed that consists of all details related to the job profile like material, overhead cost, etc.
It is considered an important part of the job which keeps an updated accounting record. it includes the manufacturing cost record and it used in the end process to compute and finalized the cost of product and service.
In 2002, the National Opinion Research Center asked U.S. adult survey respondents to rate the importance of various life transitions and events as indicators or adulthood. _________ was NOT mentioned. Select one: a. Reaching sexual maturity b. Being finished with school c. Being employed full-time d. Being financially independent
Answer:
Option A was not mentioned in the research report. Which most people think is a good measure for setting adultry benchmarks. Almost most boys get sexually mature in the age between 15-17 whereas girls reach sexual maturity in the age range 14-16. In the nutshell saying being finished with high school is same to saying reaching sexual maturity so that's the reason the research report didn't asked this question.
the correct answer us option A.In a 2002 survey by the National Opinion Research Center, significant indicators of adulthood included completing school, being financially independent, and being employed full-time. Reaching sexual maturity was not considered a major milestone of adulthood.
In 2002, the National Opinion Research Center asked U.S. adult survey respondents to rate the importance of various life transitions and events as indicators of adulthood.
The five milestones that define adulthood are completing school, leaving home, becoming financially independent, marrying, and having a child. Among the options given, reaching sexual maturity was NOT mentioned as a significant indicator of adulthood.Which of the following is not an advantage of mutual funds?
a. They offer a variety of investment styles. They treat income as "passed through" to the investor for tax purposes.
b. They offer small investors the benefits of diversification.
c. All of the options are advantages of mutual funds.
d. None of the options is an advantage of mutual funds.
Final answer:
All the options provided (investment styles and tax treatment, diversification benefits) are advantages of mutual funds; however, not mentioned is the drawback of costs like management fees which can reduce net returns. The correct answer is that all provided options are advantages of mutual funds.
Explanation:
Mutual funds are popular investment vehicles that offer specific advantages to their shareholders. One of the central benefits is diversification, which refers to the spreading of investment risk by holding various types of assets. This helps to mitigate the impact of any single asset's poor performance on the overall portfolio. Mutual funds are also known for providing convenient access to professional management, which is beneficial to investors who may lack the time or expertise to manage their investments on their own.
Another advantage is liquidity, as mutual funds allow investors to quickly and easily convert their shares into cash. However, the answer to the student's question regarding the non-advantage of mutual funds is not listed among the options provided. All the provided options (a. variety of investment styles and tax treatment, b. diversification benefits, and c. all options are advantages) are indeed advantages of investing in mutual funds.
The only potential drawback not mentioned is the costs associated with mutual funds, such as management fees and other expenses, which can reduce the net return to investors. Therefore, in this context, the correct answer would be option c: All of the options are advantages of mutual funds.
a. Prepare journal entries to record the following transactions of Recycled Fashion retail store. Recycled Fashion uses a perpetual inventory system and the gross method
Mar. 3 Purchased $1,150 of merchandise made from recycled material from GreenWorld Company with credit terms of 2/15, n/60, invoice dated March 3, and FOB shipping point.
4 Paid $75 cash for shipping charges on the March 3 purchase.
5 Returned to GreenWorld unacceptable merchandise that had an invoice price of $150.
18 Paid GreenWorld for the March 3 purchase, net of the discount and the returned merchandise.
19 Purchased $425 of fair trade merchandise from PeopleFirst Corp. with credit terms of 1/10, n/30, invoice dated March 19, and FOB destination.
21 After negotiations, received from PeopleFirst a $25 allowance (for scuffed merchandise) toward the $425 owed on the March 19 purchase.
29 Sent check to PeopleFirst paying for the March 19 purchase, net of the allowance and the discount.
Answer:
Following is given a solution for your question as required.
I hope it will help you a lot!
Explanation:
Based the appropriate journal entries to record the transactions are:
Recycled Fashion journal entries
March 3
Debit Merchandise inventory $1,150
Credit Account payable- GreenWorld Company $1,150
March 4
Debit Merchandise inventory $75
Credit Cash $75
March 5
Debit Account payable- GreenWorld Company $150
Credit Merchandise inventory $150
March 18
Debit Account payable- GreenWorld Company $1,000
($1,150-$150)
Credit Merchandise inventory $20
(2%×$1,000)
Credit Cash $980
[$1,000×(100%-2%)]
March 19
Debit Merchandise inventory $425
Credit Account payable-PeopleFirst Corp $425
March 21
Debit Account payable-PeopleFirst Corp $25
Credit Merchandise inventory $25
March 29
Debit Account payable- PeopleFirst Corp $400
($425-$25)
Credit Merchandise inventory $4
[($425-$25)×1%]
Credit Cash $396
[$400×(100%-1%)]
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0/1 Question 5 In the country of Mainia, only cranberries and maple syrup are produced. In 2006, 50 units of cranberries are sold at $20 per unit, and 100 units of maple syrup are sold at $10 per unit. The price of cranberries was $10 per unit and the price of maple syrup was $15 per unit in 2005, which is the base year. For 2006, a. nominal GDP is $2,000, real GDP is $2,000, and the GDP deflator is 100. b. nominal GDP is $2,000, real GDP is $2,500, and the GDP deflator is 125. c. nominal GDP is $2,500, real GDP is $2,000, and the GDP deflator is 83.3. Selected:d. None of the above is correct.
Answer:
A. Nominal GDP is $2,000, real GDP is $2,000 and GDP deflator is 100.
Explanation:
Nominal GDP is the the total value of goods produced in a country in a given time period and valued at the current market price i.e not adjusted for inflation.
Here to calculate nominal GDP for Mainia in 2006, the total quantity of goods produced in the current year(2006) will be multiply by the current market price.
Cranberries Maple Syrups Total
50 units 100 units
$20 $10
$1,000 $1,000 $2,000
In contrast, Real GDP is measured using the base year price. The reason is to adjust for inflation which might have occurred between the two years.
Here to calculate real GDP for Mainia in 2006, the total quantity of goods produced in the current year (2006) will be multiply by the base year price (2005):
Cranberries Maple Syrups Total
50 units 100 units
$10 $15
$500 $1,500 $2,000
GDP deflator measures the movement in value of goods and services produced in the current year in relation to the base year value.
Here is the formula:
GDP deflator = Nominal GDP x 100
Real GDP
GDP deflator = $2,000 x 100
$2,000
GDP deflator = 100
On March 12, Medical Waste Services provides services on account to Grace Hospital for $9,200, terms 3/10, n/30. Grace pays for those services on March 20. Required: For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 20. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
The journal entries are as follows:
(i) On March 12,
Accounts receivable A/c Dr. $9,200
To service revenue A/c $9,200
(To record the rendered service to Grace hospital)
(ii) On March 20,
Cash A/c Dr. $8,924
Discount allowed A/c Dr. $276
To Accounts Receivable A/c $9,200
(To record the cash received within discount period)
Workings:
Discount allowed = 3% of $9,200
= $276
Preparation of the journal entries
Mar-12
Dr Accounts receivable $9,200
Cr Service revenue $9,200
(To record service revenue)
Mar-20
Dr Cash $8,924
(97%×$9,200)
Dr Discount and allowances $276
(3%×$9,200)
Cr Accounts receivable $9,200
(To record collection from receivables)
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If a person works on a ship for a cruise line headquartered in the country where he was born and resides, then he is a Answers: A. PCN B. HCN C. TCN D. not enough information
Answer:
The correct answer is letter "A": PCN.
Explanation:
In international staffing, a Parent Country National (PCN) is an employee that is hired to work in the same country from where the employee is resident and where the company has its headquarters. Usually, firms hire PCNs when foreign cultures are distant.
You have just reviewed the financial statements of Penelope's Candy Store (PCS). You have determined that PCS has a Profit Margin of 19%. How do you explain this to owner Penelope Hassey?
1)For every $19 in sales, $100 ended up in Net Income.
2)For every $100 in sales, $19 ended up in Net Income.
3) 19% of Net Income was generated by Profit Margin.
4) 19% of sales were generated by Net Income.
Answer:
2)For every $100 in sales, $19 ended up in Net Income.
Explanation:
The Profit Margin is determined as the ratio between net income and revenue.
In Penelope's Candy Store, revenue is given by the gross amount received from sales. The net income is the amount that remains from sales after taxes and expenses are deducted.
Therefore, a 19% profit margin means that for every $100 in sales, $19 ended up in Net Income.
Wen's Noodles wants to increase the quantity of noodles that it sells by 20 percent. The price elasticity of demand for noodles sold by Wen's Noodles is 3.8. What is the percentage price cut that will achieve the firm's objective?
Answer:
5.26%
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded/ percentage change in price
3.8 = 20% / percentage change in price
20/3.8 = 5.26%
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Which of the following accounts is an asset?A.Service RevenueB.Accounts PayableC.Prepaid ExpenseD.Salaries Expense
Answer:
6
Explanation:
the assest of the book is to the book but must not be added to
The account classified as an asset among the options is Prepaid Expense. This is because it represents payments made for goods and services to be received in the future, hence signaling economic benefits for the company.
Explanation:Among the listed accounts, C. Prepaid Expense is considered an asset. In accounting, an asset is anything that a person or business owns, that has future economic value. Prepaid Expenses are payments made in advance for goods and services that will be received in the future. These prepayments are considered assets because they provide future economic benefits to the company. For example, if a company pays for insurance coverage in advance, this is recorded as a Prepaid Expense and is an asset.
On the other hand, Accounts Payable is a liability account, and Service Revenue and Salaries Expense are part of the income statement but not asset accounts.
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In a single sentence, contrast microeconomics and macroeconomics. Next, categorize each of the following issues as a microeconomic issue, a macroeconomic issue, or not an economic issue. (See page 3.) a. The national unemployment rate b. The decision of a worker to work overtime or not c. A family's choice to have a baby d. The rate of growth of the money supply e. The national government's budget deficit f. A student's allocation of study time across two subjects
Answer:
a. Macroeconomics
b. Microeconomics
c. Not an economic issue
d. Microeconomic
e. Macroeconomic
f. Not an economic issue
Explanation:
Microeconomics is the kind of economics, which deals with the study of the decision making, that is undertaken by the firms or the individuals. Whereas the Macroeconomics is also kind or type of economics, which deals with the study of behavior of the whole economy.
a. Rate of national unemployment- It dealt with the economy as a whole. So, it is concerned with the Macroeconomics.
b. Decision of worker to work overtime - It deal with the decision making of the worker. So, it is concerned with the Microeconomics.
c. Choice of family having a baby - It is related to the family, it will not be considered as an economic issue.
d. Growth rate of the money supply - It deal with the decision making of the money supply. So, it is concerned with the Microeconomics.
e. Budget deficit - It dealt with the economy as a whole. So, it is concerned with the Macroeconomics.
f. Student allocation of study - It is related to the student life, it will not be considered as an economic issue.
Microeconomics deals with economic activity at an individual level, while macroeconomics is concerned with larger, national or global economic factors. The national unemployment rate, growth rate of the money supply, and national budget deficit are macroeconomic issues. While decisions concerning overtime, having a baby, and how a student allocates study time are examples of microeconomic issues.
Explanation:Microeconomics focuses on the behaviour of individual households and firms, while macroeconomics deals with economic factors on a wider, national or global scope.
Now, let's categorize the issues:
The national unemployment rate and the rate of growth of the money supply are macroeconomic issues because they deal with economic factors at the national level. The decision of a worker to work overtime or not, a family's choice to have a baby, and a student's allocation of study time across two subjects are considered microeconomic issues as they relate to individual decision making.The national government's budget deficit is also a macroeconomic issue as it involves fiscal policies and its national implications.Learn more about Microeconomics and Macroeconomics here:https://brainly.com/question/33034197
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Nielsen gathers consumer insights through a variety of ways, including consumer tracking and panels. Which type of research is Nielsen engaged in during these examples? a Online marketing research b Telephone surveys c Focus groups d Mail questionnaires Causal research
Answer:
D
Explanation:
Mail questionnaires is one of the tools used for gathering consumer information through tracking.
Nielsen engages in consumer research through consumer tracking and panels, collecting data on consumer behavior and preferences to provide consumer insights.
Explanation:Nielsen is engaged in consumer research through methods like consumer tracking and panels. Consumer tracking refers to the collection of data on consumer behavior and preferences through various online platforms, such as website visits and purchases.
Panels involve gathering data from a group of consumers who have agreed to participate in surveys or other research activities. These methods help Nielsen to gather consumer insights and understand consumer behavior, which is crucial for companies to make informed marketing decisions.
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E-trex, Inc. wanted Prince, a professional basketball player, to endorse its products. Prince, however, was not interested. E-trex was not deterred and hired a person who looked and sounded liked Prince for its commercials.
a.E-trex has defamed Prince.
b.E-trex has interfered with a contract.
c.E-trex has interfered with a prospective advantage.
d.E-trex's conduct raises the issue of commercial exploitation.
Answer:
d.E-trex's conduct raises the issue of commercial exploitation.
Explanation:
The Commercial exploitation are the activities that provide benefit to the property of the owner. Since E-trex Inc. hired a person who looked and sounded like Prince so that they can get benefit from the commercials, they raised the issue of commercial exploitation.
E-trex, Inc.'s conduct raises the issue of commercial exploitation by hiring an impersonator who resembled Prince for its commercials.
Explanation:E-trex, Inc.'s conduct raises the issue of commercial exploitation. By hiring an impersonator who resembled Prince for its commercials, E-trex attempted to deceive consumers into thinking that Prince was endorsing their products. This is an example of using a well-known person's image and reputation to promote a brand without their consent.
Jiminez, Inc., had the following transactions during the month of March 2015. Prepare an income statement based on this information, being careful to include only those items that should appear in that financial statement. 1. Cash received from bank loans was $10,000Revenues earned and received in cash were $9,850. 3. Dividends of $4,000 were paid to stockholders. 4. Expenses incurred and paid were $5,465
Based on the information given the income statement for Jiminez Inc is: $4,535.
Income statement:Income statement=Revenues -Expenses
Jiminez, Inc. Income Statement for the month ended March 2015:
Revenue earned and received $10,000
Less Expenses incurred and paid $5,465
Net income $4,535
($10,000-$5,465)
Inconclusion the income statement for Jiminez Inc is: $4,535.
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An assumption that makes an economic model simpler without affecting its conclusions in important ways is A. an indication of a positive assumption B. an efficient assumption C. useful in disguising the valid conclusions D. a simplifying assumption E. a critical assumption
Answer:
An assumption that makes an economic model simpler without affecting its conclusions in important ways is, D. simplifying assumption.
Explanation:
Every economic model begins with assumptions about the world. There are two types of assumptions in a model: simplifying assumptions and critical assumptions. A simplifying assumption is just what it sounds like—a way of making a model simpler without affecting any of its important conclusions.
Answer:
D
Explanation:
A simplifying assumption is a way of making a model simpler without affecting any of its important conclusions. The purpose of a simplifying assumption is to rid a model of extraneous detail so its essential features can stand out more clearly. We might assume that there are only two goods that households can choose from or that there are only two nations in the world. We make
such assumptions not because they are true, but because they make a model easier
to follow and do not change any of the important insights we can get from it.
Equipment with an estimated useful life of 4 years and an estimated residual value of $1,000 is acquired at a cost of $12,000. Using the double-declining-balance method, what is the amount of depreciation for the first year of use of the equipment?
Answer:
$6,000
Explanation:
Depreciation expense using the double declining method = Depreciation factor × cost of asset
Deprecation factor = 2 × (1/useful life of asset) = 2/4 = 0.5
Depreciation expense = 0.5 × $12,000 = $6,000
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The European Union (EU) a. allows trade across country borders without tariffs b. was dissolved under the Geneva Convention c. is an abbreviation for the act of state doctrine d. Both allows trade across country borders without tariffs and was dissolved under the Geneva Convention
Answer:
a. allows trade across country borders without tariffs
Explanation:
The geneve convention was about military rules to protect human rights and i was signed on 1949
While the European Union or Eurozone is a free-trade zone where the factors are free to move cross the members and the union. This, was the EU main goal. To eestimulate trade among the members and create a better monetary policy through the adoption of a single currency (Euro)
Final answer:
The European Union (EU) enables trade across member country borders without tariffs and is not dissolved; rather, it continues to promote economic integration among European countries.
Explanation:
The European Union (EU) is best described as an option (a): it allows trade across country borders without tariffs. The EU was established in the years following World War II with the purpose of tying European economies together to avoid future conflicts. It began as a free trade association and evolved into a full economic union. One of its key achievements was the introduction of a common currency, the euro, which replaced many national currencies like the German mark and the French franc, though some member states retained their own currency. A crucial aspect of the EU is its efforts to eliminate barriers to the free movement of goods, labor, and capital across Europe.
It is important to clarify that the EU was not dissolved under the Geneva Convention, and it is not an abbreviation for the act of state doctrine. Moreover, while the United Kingdom voted to leave the EU, an event known as Brexit, the EU itself remains active and continues its mission to foster economic cooperation among its member states.
On June 30, Coral, Inc. finished Job 750 with total job costs of $ 4 comma 500, and transferred the costs to Finished Goods Inventory. On July 6, Coral sold goods to a customer for $ 5 comma 500 cash. Which of the following is the correct journal entry to record the cost of goods sold? Assume the perpetual inventory system is used. A. debit Finished Goods Inventory $ 4 comma 500 and credit Cost of Goods Sold $ 4 comma 500 B. debit Cost of Goods Sold $ 4 comma 500 and credit Finished Goods Inventory $ 4 comma 500 C. debit Cost of Goods Sold $ 4 comma 500 and credit WorkminusinminusProcess Inventory $ 4 comma 500 D. debit WorkminusinminusProcess Inventory $ 4 comma 500 and credit Cost of Goods Sold $ 4 comma 500
Answer:
B. debit Cost of Goods Sold $ 4,500 and credit Finished Goods Inventory $ 4,500
Explanation:
The cost of goods sold will be 4,500 cost of the job 750
We are going to debit the cost of good sold for the amount it cost to make job 750
and credit the finished goods inventory as the amount of goods available for sale decreases.
When we sale we deliver an asset of ours (finished goods) thus, we have to make it decrease.
The Company is experiencing an increase in competition, and at the same time they are building more production facilities in Southeast Asia. In this scenario, the top management team is most likely to:_______a. Give lower-level managers the authority to make decisions to benefit the firm.b. Pull decision-making responsibility from low-level management, taking it on themselves.c. Restructure to reflect a more bureaucratic, stable organization.d. Rid themselves of all buffering product.e. Increase the cost of their products.
Answer: The correct answer is "a. Give lower-level managers the authority to make decisions to benefit the firm.".
Explanation: In this scenario, the top management team is most likely to: Give lower-level managers the authority to make decisions to benefit the firm because as the company is expanding to meet the demand of a greater part of the market, it is likely that senior managers are overwhelmed with occupations and decisions so they can authorize lower level managers to make lower level decisions , always for the benefit of the company.
Organizations have three levels of management: first-line, middle, and top. Each of the managers at these levels has different levels of skills and responsibilities. First-line managers are generally responsible for the daily supervision of nonmanagerial employees and are often called supervisors. Middle managers generally oversee first-line managers and report to top managers. Middle managers ensure that organizational goals are being met by devising the best way to organize resources. Top managers are responsible for all departments and determine organizational goals and how departments achieve goals. The top management team is responsible for ensuring good working relationships among the top managers.
Management is of three levels. managerial, middle and top level management.
Explanation:
levels of management can be defined as a part of an organization that maintains responsibility for the overall productivity and the work performance of employees.
Managerial or top level management consists of board of directors. It also consists of the board of directors. Executive or middle level management consist of line or department managers and in this level mostly the managers report top the top level management. next lowest level is the operative or supervisory level management.
Thus mostly consists of supervisors, first line managers. It comes under the organisational hierarchy of a company. top management is responsible and controls the entire organisation.
One probable reason that the Constitution's framers included very strong wording protecting private property and contracts was __________.
Answer: ...they were invested and had to protect their own wealth.
Explanation:
The constitution's framers of America were founding fathers and visionaries. They designed the America's constitution to endure times and to stand the pressures of being a new country. They also aimed at addressing not only the specific challenges facing the nation during their lifetimes, but they also tried to establish the foundational principles that would lead and guide the young nation into an uncertain future of our days.
An index has a market value of $689,400 at the beginning of the period and $722,009 at the end of the period. If you want the beginning index value to be 100, what is the ending index value?
Answer:
The ending index value is 104.73
Explanation:
we will simply divide the end of the period value over the beginning of the period and then multiply by 100 to get the ending period index.
722,009 / 689,400 x 100 = 104,73
The following periods will also be converted into a price index considering the base year. We will not use the previous year base price.
You short sold 1,100 shares of stock at a price of $29 and an initial margin of 55 percent. If the maintenance margin is 40 percent, at what share price will you receive a margin call? What is your account equity at this stock price?
Answer:
No of stock = 1100
Price of Stock = 29
Short sale = 31900
Initial Margin % = 55%
Initial Margin = 17545
Total value = 49445
The earnings of the sale is 31900, which is deposited in our account for a total account value of $49,445 (31900+55%)
Maintenance Margin = 40%
Margin Call Value = 49445/ (1+0.4)
Margin Call Value = 35317.86
Price per share = 35317.86 / 1100
Price per share = 32.11
So a margin call will be triggered when the price of the shorted security rises to $32.11
Margin Call Price = 32.11
Account Equity = 32.11*1100
Account Equity = 35318
The Bureau of Labor Statistics has found that the base-year expenditures of the typical consumer break down as follows:
Food and beverages 17.8%
Housing 42.8%
Apparel and upkeep 6.3%
Transportation 17.2%
Medical care 5.7%
Entertainment 4.4%
Other goods, and services 5.8%
Total 100.0%
Suppose that since the base year, the prices of food and beverages have increased by 10 percent, the price of housing has increased by 5 percent, and the price of medical care has increased by 10 percent. Other prices are unchanged.
Instructions: Enter your responses by rounding the CPI to three decimal places.
The CPI for the current year is ____.
The Consumer Price Index (CPI) for the current year is calculated by adjusting the base-year expenditure percentages by the change in prices and then summing these adjusted percentages. The resulting CPI for the current year, rounded to three decimal places, is 104.490.
Explanation:The question involves calculating the Consumer Price Index (CPI) for the current year based on the given expenditures of the typical consumer and the percentage increases in certain categories. To calculate the CPI, we multiply the base-year expenditure percentages by the corresponding increase in prices, if any, and then sum up the adjusted expenditures.
Food and beverages: 17.8% * (1 + 10%) = 17.8% * 1.10 = 19.58%Housing: 42.8% * (1 + 5%) = 42.8% * 1.05 = 44.94%Apparel and upkeep: 6.3% * (1 + 0%) = 6.3%Transportation: 17.2% * (1 + 0%) = 17.2%Medical care: 5.7% * (1 + 10%) = 5.7% * 1.10 = 6.27%Entertainment: 4.4% * (1 + 0%) = 4.4%Other goods and services: 5.8% * (1 + 0%) = 5.8%Add the adjusted expenditures to find the CPI for the current year: 19.58% + 44.94% + 6.3% + 17.2% + 6.27% + 4.4% + 5.8% = 104.49%. The CPI for the current year is 104.490, rounded to three decimal places.
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The supply function for good X is given by Qxs = 1,000 + PX - 5PY - 2PW, where PX is the price of X, PY is the price of good Y and PW is the price of input W. If the price of input W increases by $10, then the supply of good X
Answer:
Will increase by 10 units
Explanation:
Given the formula for quantity supplied Qxs = 1,000 + PX - 5PY - 2PW
We are told to gauge the effect of increase in input (W) on quantity supplied (Qxs)
So assuming this protein of the equation is constant
1,000 + PX - 5PY= k
That is there is no change in price of X and Y
Qxs= k- P(W)
So it can be seen that an increase in P(W) is a negative change in the equation
Qxs k - ∆10
Resulting in reduction in Qxs by 10