Answer:
A paper and pencil personality test
Explanation:
Paper and pencil test is one such self-report/objective test that has following quality:
1. The individual knows that his/her personality is being assessed and they themselves answer questions concerning themselves. Example is true/false question like : i prefer going alone for movies, and so on
2. It is more organized as it follows well a standard procedure for evaluation and testing. Eg: if more than 5 questions have options a or b marked, then type a personality. Therefore, not likely to subjective judgement.
3. It includes both the quantitative and qualitative measurement.
So paper test is the best suited for effectiveness evaluation.
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin patties, flopsicles, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods.
Run-of-the-Mills provides your marketing firm with the following data:
When the price of penguin patties increases by 5%, the quantity of flopsicles sold decreases by 4% and the quantity of kipples sold increases by 5%. Your job is to use the cross-price elasticity between penguin patties and the other goods to determine which goods your marketing firm should advertise together.
Complete the first column of the following table by computing the cross-price elasticity between penguin patties and flopsicles, and then between penguin patties and kipples. In the second column, determine if penguin patties are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with penguin patties.
Relative to Penguin Patties Relative to Penguin Patties Recommend Marketing-
with Penguin Patties
Cross-Price Elasticity- Complement or Substitute
of Demand
Flopsicles
Kipples
Solution:
↑P_penguin patties 5 %
↓Q_flopsicles 4%
↑Q_kipples 5%
[tex]\frac{Change Quantity}{Change Price}[/tex] = Cross price elasticity
-0.04/0.05 = -0.8 penguin patties to flopsicle
A drop in demand for the second commodity shall be responded by a smaller amount.
This means that when penguin patties reduce prices, people make decisions to purchase them when they are flopsicle.
0.05/0.05 = 1
The price reduction produces more kipple length.
This is an additional link even though consumers buy kipples with the difference or use part of the saving for the purchase of kipples because while the price decline.
Final answer:
The cross-price elasticity of demand for penguin patties and flopsicles is -0.8, indicating they are complements, while penguin patties and kipples have a cross-price elasticity of 1.0, indicating they are substitutes. Run-of-the-Mills should market flopsicles and penguin patties together as they are complementary products.
Explanation:
To compute the cross-price elasticity of demand, we look at the percentage change in the quantity demanded of one product in response to a percentage change in the price of another product. When considering Run-of-the-Mills' products, we find that with a 5% increase in the price of penguin patties, the quantity of flopsicles sold decreases by 4%. This gives us a cross-price elasticity of demand formula (% change in quantity demanded of Product B)/(% change in price of Product A), which in this case is (-4%)/(5%) or -0.8 for flopsicles.
Similarly, a 5% price increase in penguin patties results in a 5% increase in the quantity of kipples sold, resulting in a cross-price elasticity of demand of (5%)/(5%) or 1.0 for kipples.
Since the cross-price elasticity of demand for penguin patties and flopsicles is negative, they are complements in consumption. For penguin patties and kipples, the positive cross-price elasticity indicates that they are substitutes. Based on this analysis, Run-of-the-Mills should market flopsicles and penguin patties together to capitalize on the complementary relationship, as consumers are likely to purchase them together.
Self-employment taxes: a. Are calculated based on unearned income such as interest and dividends as well as net earnings from self-employment. b. Are not affected by wages the taxpayer earns as an employee. c. Consist of Medicare tax and Social Security tax. d. Apply to taxpayers with less than $400 in self-employment earnings.
Answer:
C. Consist of Medicare tax and Social Security tax.
Explanation:
Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners.
You figure self-employment tax (SE tax) yourself using Schedule SE (Form 1040 or 1040-SR). Social Security and Medicare taxes of most wage earners are figured by their employers. Also you can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. Wage earners cannot deduct Social Security and Medicare taxes.
Answer: i think its c
Explanation: thx for the points :D
the zero sum fallacy refers to a. You gaining only if someone else loses b. The allocation of the pieces of the total economic pie- if you eat the piece, I cannot consume it c. Ignores the possibility of the total pie growing itself d. All of the above
Answer:
The correct answer is letter "D": All of the above.
Explanation:
The zero-sum fallacy is an idea that states there is a fixed resource -usually, a compared to as a pie- implying the more on individual gets of that resource, the less other people will be able to get of the same resource. As a fallacy -false belief- the zero-sum discards the possibility of an individual sharing the resource by splitting it into different parts instead of exclusively using it. Thus, negotiation is left behind assuming the zero-sum fallacy.
If interest rates are at the zero lower bound:A. the effectiveness of monetary policy increases. B. monetary policy is not very effective. C. automatic stabilizers don't work. D. monetary policy is more effective than fiscal policy
Answer:
B. monetary policy is not very effective
Explanation:
The zero lower bound is similar; lower bounds and is macroeconomic problems and this occurs when the short terms nominal interest rate is an at the near top the liquidity trap and is issues of the paper currency by the government and effective guarantee zero of normal interest rates acting as an interest rate floor. The Zero interest rate is also referred to as the lower limit of the 0% for a short term rate beyond which monetary policy is not very effective.Bernie just started a business and is trying to raise capital. He has both accredited and non-accredited investors investing in the company. What constraints on investments for new businesses apply here?
Answer:
I can see that there are no choices.
Liquidity Constraint and Time Horizon Constraint
Explanation:
"Investment constraints" refer to the factors which restricts the investor into accessing some investment options. This could be classified into two: internal and external.
Liquidity Constraint is common for businesses and this is related to the "cash outflows." Since he is just starting a business, it would be better if he considers this so he'd value assets which can be converted into cash, without affecting the value of the portfolio.
Time Horizon Constraint is necessary because Bernie needs to know the time for the returns of investment. This classifies the investments into short-term or long-term.
New businesses face constraints when raising capital, especially from non-accredited investors, due to SEC regulations. Common sources of start-up capital include personal savings, angel investors, and venture capital. Established firms secure loans more easily due to their financial history.
Bernie just started a business and is trying to raise capital. He has both accredited and non-accredited investors investing in the company. New businesses face several constraints when raising capital, particularly from non-accredited investors.
According to SEC regulations, companies can only raise a limited amount of money from non-accredited investors, and there are specific disclosure requirements to protect these investors.
Accredited investors, on the other hand, have fewer restrictions because they meet certain income or net worth thresholds.
Start-up firms commonly raise financial capital through various means:
Personal Savings: The business owner may use personal savings or other personal financial resources.Angel Investors: Wealthy individuals may invest in early-stage companies in exchange for equity.Venture Capital: These firms invest large sums in exchange for partial ownership and influence over company decisions.Relying solely on profits is not feasible initially because new firms often lack sufficient income to cover significant upfront costs. Well-established firms find it easier to secure loans because they have a proven track record and financial stability.
In a criminal tax case, Darth Vader was charged with several counts of tax evasion and filing a false income tax return, stemming from his diversion of funds from Jedi, Inc., a closely held corporation of which he was president, founder, and controlling shareholder. At trial, the U.S. sought to establish that Vader had received taxable income by systematically diverting funds from Jedi to support a lavish lifestyle. Vader gave millions of dollars of Jedi money to his mistress and millions of dollars to his wife, without reporting any of this money on his personal income tax returns. Vader siphoned off money primarily by writing checks to his employees and friends and having them return the cash to him, by diverting payments by Jedi customers, by submitting fraudulent invoices to Jedi and by laundering Jedi money through shell companies in Panama and St. Kitts-Nevis. In his defense, Vader sought to introduce evidence that Jedi had no retained earnings or current earnings or profits in the relevant taxable years. What result under §7201?
Answer:
Safeguard of Darth isn't suitable in light of the fact that he methodically redirected all the assets of Jedi misguidedly for reason for sidestepping charges. In this way the every one of those assets being referred to will be considered while ascertaining the tax pay of Jedi.
From that point forward, it very well may be presumed that the Jedi has any current winning/Retained acquiring or not.
in the event that Darth discovered guilty,under sec.7201 he will be at risk to punishment, intrigue and arraignment charges
You are buying a home for $360,000. If you make a down payment of $60,000 and take out a mortgage on the rest at 8.5% compounded monthly, what will be your monthly payment if the mortgage is to be paid off in 15 years
Answer:
$2954.22
Explanation:
We are given a present value of $360000 which needs to be paid in the future for the mortgage of a house therefore we are further told that $60000 of down payment has been made so now we are required to pay $300000 as monthly installments for the next 15 years so this is a present value annuity problem as we will have future regular periodic payments that for a house mortgage so firstly to interpret this information properly we will use the present value annuity to find the monthly payments which the formula is as follows:
Pv = Cx[(1 -(1+i)^-n)/i]
where C is the periodic payment we are looking for.
Pv is the present value for the home which is $300000 as a down payment of $60000 was made.
i is the interest rate which is 8.5%/12 as we are told it is compounded monthly.
n is the number of periods the in which the mortgage payments are made which is 15 years X 12 months =180 payments.
now we will substitute in the above mentioned formula :
$300000 = Cx[(1-(1+8.5%/12)^-180)/(8.5%/12)] now we will divide both sides with what multiplies C in brackets to solve for C
$300000/[(1-(1+8.5%/12)^-180)/(8.5%/12)] = C
$2954.218674 = C now we round off to two decimal places
C= $2954.22 which will be the monthly payment for this mortgage for 15 years every month.
"In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits"
Answer:
b. constant returns to scale because average total cost is constant as output rises.
Explanation:
The question has options. Below is the complete question.
Complete Question
In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits
a. diseconomies of scale because total cost is rising as output rises.
b. constant returns to scale because average total cost is constant as output rises.
c. diseconomies of scale because average total cost is rising as output rises.
d. economies of scale because average total cost is falling as output rises.
The correct answer is explained below.
In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits constant returns to scale because average total cost is constant as output rises.
Answer:
The answer is Constant returns to scale
Explanation:
Constant returns to scale is when a firm changes its inputs (labour or capital) and these changes lead to a proportionate increase or decrease in output. For example, when the total cost incurred to produce kayaks was $15,000, output was 30kayaks. The input to output ratio is 500(15,000÷30)
And when the total cost incurred to produce kayaks was increased to $20,000, output was 40kayaks. The input to output ratio is still 500(20,000÷40)
The reserve ratio is the____________.A. Percentage of excess reserves held by banks.B. Fraction of deposits that banks hold as excess reserves.C. Number of deposit dollars the banking system canD. Percentage of total deposits that are held as bank reserves.
Answer:
D. Percentage of total deposits that are held as bank reserves.
Explanation:
The reserve ratio is the percentage of total deposits that are held as bank reserves. They are very important tools for controlling the financial market by the central bank.
If the reserve ratio or cash reserve ratio is lowered by the central bank, there is more money and commercial banks can disburse out more loans. When the central bank wants to control inflation due to high amount of money in the economy, it will increase the reserve ratio.A company releases a five-year bond with a face value of $1,000 and coupons paid semiannually. If market interest rates imply a YTM of 8%, what should be the coupon rate offered if the bond is to trade at par?
Answer:
8% coupon rate would make the bond trade at par
Explanation:
To confirm the above ,I prepared a present value table with ytm at 8% and annual coupon at 8%, the resulting present value is $1000 the par value of the bond
Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July $ 90,000 August 110,000 September 120,000 Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:A) $ 78,000 B) $ 108,000 C) $ 120,000 D) $ 130,500
Answer:
B) $ 108,000
Explanation:
September cash sales
(25% * $120,000) = $ 30,000
August credit sales
(75% * $104,000) = $78,000
Cash collected in September is
$ 108,000
(Annuity payments) Prof. Finance is thinking about trading cars. She estimates she will still have to borrow $26,000 to pay for her new car. How large will Prof. Finance's monthly car loan payment be if she can get a 5-year (60 equal monthly payments) car loan from the VTech Credit Union at 8.5 percent APR? Use five decimal places for the monthly percentage rate in your calculations.
Answer:
Explanation:
using the annuity formula = P=R*(1-(1+i )^-n)/i
p= 26000
i= 8.5/12=0.70833%
Payments=5*12=60
R=?
Since we have
26000=R*(1-(1+0.70833%)^-60)/0.70833%
26000=R* 0.34524/0.70833%
26000=R*48.74122
R=26000/48.74122
R=533.42931
ABC sells 28 units for $50 each on December 15. Of the units sold, 14 are from the December 7 purchase and 14 are from the December 14 purchase. ABC uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on specific identification.
Answer:
Closing inventory based on Specific IDENTIFICATION
7 Dec purchase ( 20-16) = 4 * $16 = $64
14 Dec purchase ( 35 -14) = 21*$24 = $504
21 Dec purchase 30*$29 = $870
closing inventory 31 Dec = $1438
Explanation:
The question is incomplete but here is a complete one
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 30 units for $40 each.
Purchases on December 7 20 units @ $16.00 cost
Purchases on December 14 35 units @ $24.00 cost
Purchases on December 21 30 units @ $29.00 cost
Required:
Monson sells 30 units for $40 each on December 15. Of the units sold, 16 are from the December 7 purchase and 14 are from the December 14 purchase. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on specific identification.
Compare the yield to maturity and the current yield. How do you explain this relationship? (Select the best response.)A.If a bond sells at a discount, the yield to maturity is greater than the current yield.B.If a bond sells for its par value, the yield to maturity is greater than the current yield.C.If a bond sells at a premium, the yield to maturity is greater than the current yield.D.There is no certain relationship between the yield to maturity and the current yield.
Answer:
A - If a bond sells at a discount, the yield to maturity is greater than the current yield
Explanation:
Yield to maturity is the expected return if the bond is held till maturity. Current yiled is the return if the bond is sold today. There is an evident relationship between yield to maturity (TYM) and the current yield.
“When a bond's market price is above par, which is known as a premium bond, its current yield and YTM are lower than its coupon rate. Conversely, when a bond sells for less than par, which is known as a discount bond, its current yield and YTM are higher than the coupon rate. Only on occasions when a bond sells for its exact par value are all three rates identical” (Bloomenthal, 2020).
According to the above statements, options C, B and D are eliminated. This leaves option A (If a bond sells at a discount, the yield to maturity is greater than the current yield) as the correct answer. This is true because YTM is calculated on purchase price rather than par value, if the purchase price is less than par value, the YTM will be greater than the current yield.
Final answer:
The yield to maturity and current yield are measures used to assess returns on bonds. The yield to maturity is generally higher than the current yield when a A. bond sells at a discount and vice versa.
Explanation:
The yield to maturity and the current yield are two different measures used to assess returns on bonds. The yield to maturity represents the total return an investor can expect to receive if they hold the bond until it matures, taking into account the purchase price, coupon rate, and time to maturity. On the other hand, the current yield only considers the annual interest payments relative to the bond's current market price.
In general, the yield to maturity is higher than the current yield when a bond sells at a discount. This is because a bond selling at a discount has a higher yield relative to its purchase price, resulting in a higher yield to maturity. Conversely, if a bond sells at a premium (above its face value), the yield to maturity is lower than the current yield. Therefore, the correct answer is option A: If a bond sells at a discount, the yield to maturity is greater than the current yield.
Suppose that in an economy, net taxes and government spending are independent of income. It is determined that when government spending decreases by exist100 billion, income falls by exist1000 billion. In this economy the value of the MPS = ______. Enter your response rounded to two decimal places.) In this economy the value of the MPC = _____. (Enter your response rounded to two decimal places.)
Answer:
(1) In a closed economy, assuming investment demand is zero,
Y = C + G
Y - C = G
S = G, where
Y: Income, C: Consumption, S: Savings and G: Government spending
So,
S / Y = G / Y [dividing each side by Y]
[tex]\Delta \mathrm{S} / \Delta \mathrm{Y}=\Delta \mathrm{G} / \Delta \mathrm{Y}[/tex]
MPS = $100 billion / $1000 billion = 0.10
(2) MPC = 1 - MPS = 1 - 0.10 = 0.90
For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Peacock is charging $200 per room per night. If average household income increases by 10%, from $50,000 to $55,000 per year, the quantity of rooms demanded at the Peacockrises from 300 rooms per night to 400 rooms per night. Therefore, the income elasticity of demand ispositive , meaning that hotel rooms at the Peacock area normal good . If the price of a room at the Grandiose were to decrease by 10%, from $250 to $225, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Peacockfalls from 300 rooms per night to 250 rooms per night. Because the cross-price elasticity of demand isnegative , hotel rooms at the Peacock and hotel rooms at the Grandiose are substitutes . Peacock is debating decreasing the price of its rooms to $175 per night. Under the initial demand conditions, you can see that this would cause its total revenue to decrease . Decreasing the price will always have this effect on revenue when Peacock is operating on theelastic portion of its demand curve.
The scenarios demonstrate the interplay of demand factors, price changes, and their impact on the number of rooms demanded and total revenue at the Peacock Hotel.
In the given scenarios:
An increase in average household income from $50,000 to $55,000 results in an increase in the quantity of rooms demanded at the Peacock from 300 to 400 rooms per night. This indicates a positive income elasticity of demand, classifying hotel rooms at the Peacock as normal goods.
If the price of a room at the Grandiose decreases by 10% from $250 to $225, and the quantity of rooms demanded at the Peacock falls from 300 to 250 rooms per night, it suggests a negative cross-price elasticity of demand. This implies that hotel rooms at the Peacock and the Grandiose are substitutes.
Peacock is contemplating reducing the price of its rooms to $175 per night. Given the initial demand conditions, this would lead to a decrease in its total revenue. This outcome occurs when Peacock is operating on the elastic portion of its demand curve.
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Peacock's rooms are normal goods with positive income elasticity. They are substitutes for Grandiose, with elastic demand, so price cuts reduce revenue.
In the given scenarios, we are analyzing the demand elasticity and market conditions for rooms at the Peacock hotel. Let's break down each scenario:
1. Income Elasticity of Demand: When average household income increases by 10% and the quantity of rooms demanded at the Peacock rises from 300 to 400 rooms per night, this indicates a positive income elasticity of demand. In other words, as consumers' incomes increase, they are willing to spend more on hotel rooms, considering them a normal good.
2. Price Elasticity of Demand for Peacock Rooms: When the price of a room at the Grandiose hotel decreases by 10% and the quantity of rooms demanded at the Peacock falls from 300 to 250 rooms per night, this suggests a negative cross-price elasticity of demand. Hotel rooms at the Peacock and Grandiose are substitutes, meaning that when the price of a substitute (Grandiose) decreases, demand for Peacock rooms decreases.
3. Price Reduction and Total Revenue: Peacock is contemplating decreasing the price of its rooms to $175 per night. Under the initial demand conditions, decreasing the price will lead to a decrease in total revenue. This is because Peacock is operating on the elastic portion of its demand curve.
In summary, Peacock's rooms are considered normal goods, and they are in competition with Grandiose, with consumers viewing them as substitutes. To maximize revenue, Peacock should be cautious when reducing prices, especially when operating on the elastic portion of the demand curve, as it may lead to a decrease in total revenue.
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Your financial adviser recommends buying a 10-year bond with a face value of $1,000 and an annual coupon of $80. The current interest rate is 7 percent. What might you expect to pay for the bond (aside from brokerage fees)?
Answer:
I will pay $1070.24 for the Bond.
Explanation:
Coupon payment = = $80
Number of years = n = 10 years
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond =$80 x [ ( 1 - ( 1 + 7% )^-10 ) / 7% ] + [ $1,000 / ( 1 + 7% )^10 ]
Price of the Bond = $80 x [ ( 1 - ( 1.07 )^-10 ) / 0.07 ] + [ $1,000 / ( 1.07 )^10 ]
Price of the Bond = $561.89 + $508.35
Price of the Bond = $1,070.24
To determine the price of the bond, you need to calculate the present value of the annuity and the present value of the face value at the end of the 10-year period using the given interest rate. Then, add these two present values together to find the price of the bond.
Explanation:To calculate the price of the bond, we need to find the present value of the future cash flows. The annual coupon payment of $80 can be viewed as an annuity with a 10-year duration. Using the formula for the present value of an annuity, we can calculate the present value of the coupon payments. Additionally, we need to calculate the present value of the face value of the bond at the end of the 10-year period. By discounting each cash flow using the 7 percent interest rate, we can determine the price of the bond.
Using the present value of annuity formula:
PV = C * [(1 - (1+r)^(-n))] / r
where PV is the present value, C is the annuity payment ($80), r is the interest rate (0.07), and n is the number of periods (10).
Using the present value of a single cash flow formula:
PV = F / (1+r)^n
where PV is the present value, F is the future value ($1,000), r is the interest rate (0.07), and n is the number of periods (10).
Calculating both the present value of the annuity and the present value of the single cash flow, we can add them together to find the price of the bond. The expected price of the bond, aside from brokerage fees, would be the sum of these two present values.
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If you are willing to purchase a house for $500,000 and you purchase the house for $500,000, this transaction will generate: a. $0 worth of buyer surplus and unknown amount of seller surplus. b. $0 worth of seller surplus and unknown amount of buyer surplus. c. No information provided. d. There is no surplus created for either of the party.
Answer:c. No information provided
Explanation:
The fact that the house would be sold for $500.000 does not give us direct information about how much the seller was expecting, only what he or she accepted to sell it for, depending on the conditions it could mean they had no better offer and needed to sell it and therefore accepted what was offered even if it meant to lose a bit o gain much less that what they wanted, so since we are not offered information on the expectations of the seller we cannot say anything about it, then the other options are false, because it could even mean loss and no surplus.
On July 10, Boogie Footware agrees to a contract to sell 800 pair of flapper shoes for $16,000 to Twenties, Inc. On September 1, after 500 pair of have been delivered, Boogie and Twenties modify the agreement to reduce the price of the remaining 300 pair of flapper shoes to $10 a pair. During September, Boogie delivers 200 pairs of shoes. How much revenue will Boogie recognize for the month of September?
Final answer:
Boogie Footware will recognize a revenue of $7,000 for the month of September.
Explanation:
To determine the revenue that Boogie will recognize for the month of September, we need to calculate the revenue from the delivery of 200 pairs of shoes and the revenue from the modification of the agreement for the remaining 300 pairs of shoes. The revenue from the delivery of 200 pairs of shoes can be calculated by multiplying the number of pairs (200) by the agreed price per pair ($16,000 for 800 pairs of shoes, so $16,000/800 = $20 per pair). Therefore, the revenue from the delivery of 200 pairs of shoes is 200 × $20 = $4,000.
For the remaining 300 pairs of shoes, the price was reduced to $10 per pair. Therefore, the revenue from these shoes is 300 × $10 = $3,000.
So, the total revenue that Boogie will recognize for the month of September is $4,000 + $3,000 = $7,000.
For the month of September, Boogie Footware will recognize revenue of $2,000, as they delivered 200 pairs of shoes at the modified price of $10 per pair.
To determine the revenue Boogie Footware will recognize for September, let's break down the situation:
Initially, the contract price was $20 per pair (800 pairs for $16,000).
By September 1, Boogie had already delivered 500 pairs, so the revenue from these pairs was: $20 * 500 = $10,000.
The contract was then modified to reduce the price of the remaining 300 pairs to $10 per pair.
In September, Boogie delivered 200 pairs at the new price of $10 per pair: 200 pairs * $10 = $2,000.
Hence, for the month of September, Boogie Footware will recognize revenue of $2,000.
You just won the lottery and the lottery commission will either give you $6 million as a lump sum, or 20 equal, annual payments of $500,000. Assume an interest rate of 6% per year, compounded annually. What should you do
Final answer:
To decide between the lump sum and the annuity, we calculate the present value of the annuity using the formula PV = PMT * [tex][(1 - (1 + r)^{-n}) / r][/tex]. With an interest rate of 6%, the present value of 20 annual payments of $500,000 is approximately $6,085,852, which is slightly higher than the $6 million lump sum.
Explanation:
To decide whether to take the $6 million lump sum or the 20 annual payments of $500,000, we need to calculate the present value of the annuity (the series of 20 payments). Present value analysis is a mathematical concept used to determine the equivalent value today of a series of future payments, given a specific interest rate.
The formula for the present value of an annuity is: PV = PMT * [[tex](1 - (1 + r)^{-n}) / r][/tex], where PMT is the annual payment ($500,000 in this case), r is the annual interest rate (6% or 0.06), and n is the number of years (20 years).
Plugging in the values, we get: PV = $500,000 * [(1 - (1 + 0.06)⁻²⁰) / 0.06]
Calculating the above, the present value of the annuity is approximately $6,085,852. If the present value of the annuity payments is more than the lump sum of $6 million, it would be better to choose the annuity payments, assuming the interest rate is reliable and stable. However, this decision also depends on personal factors such as the winner's age, financial stability, investment plans, and tax considerations.
On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 330,000 rubles in four months (on January 31, 2018) and receive $115,500 in U.S. dollars. Exchange rates for the ruble follow:Date Spot Rate Forward Rate (to January 31, 2018)October 1, 2017 $ 0.35 $ 0.39 December 31, 2017 0.38 0.41 January 31, 2018 0.40 N/ASharp's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901. Sharp must close its books and prepare financial statements on December 31.
Prepare journal entries, assuming that Sharp entered into the forward contract as a fair value hedge of a 100,000 ruble receivable arising from a sale made on October 1, 2017. Include entries for both the sale and the forward contract.
Prepare journal entries, assuming that Sharp entered into the forward contract as a fair value hedge of a firm commitment related to a 100,000 ruble sale that will be made on January 31, 2018. Include entries for both the firm commitment and the forward contract. The fair value of the firm commitment is measured by referring to changes in the forward rate.
Solution:
Date Account tides Debit (S in ruble) Credit (S in ruble)
and Explanation
Oct 1 Accounts receivable 96,600
Sales
( 210,000 ruble x $0.46) 96,600
Dec 31 Accounts receivable
( 50.49-50.46) x (210,000 ruble) 6,300
Foreign Exchange gain 6,300
Loss on forward contract 2079,21
Forward Contract
(50.52-50.51) x 210,000 ruble =2,100
2,100 x 0.9901= $2079.21 2079.21
Jan31 Accounts receivable (LC U) 4,200
Foreign exchange gain
(50.51-50.49) x 210,000 ruble 4200
Foreign currency 107,100
Accounts receivable
(596.600-56,300-54,200) 107,100
Cash 107,100
Foreign cuuency (LCU)
($0.51 x210.000 ruble) 107,100
You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF 15 million. The cash flows from the project would be SF 4.4 million per year for the next five years. The dollar required return is 15 percent per year, and the current exchange rate is SF 1.09. The going rate on Eurodollars is 5 percent per year. It is 4 percent per year on Euroswiss. Use the approximate form of interest rate parity in calculating the expected spot rates.
Answer:
SF7.37
Explanation:
PV of cash flow is calculated using the formula
1-(1+r)^-n/r=1-(1-0.15)^5/0.15=1-(0.75)^5/0.15=1-0.237/0.15=5.085
So pv=5.085×4.4=SF
20.3385million
Using interest parity
1+ic/1+ib =Fo/So
Counter country is US while home country is in
swiss
1+0.05/1.04=fo/1.09
Fo=1.09×1.05/1.04=1.1
So expected PV=20.3385×1.1=SF22.37235million
Profit=23.37235-15=SF7.37
Answer:
1.1434
Explanation:
To calculate the future spot rates we will use the Interest rate parity
E(S)= S0*(Fr/Dr)^t
year 1=109*(1.05/1.04)^1=1.1005
=1.09(1.05/1.04)^2=1.1111
=1.09(1.05/1.04)^3=1.1217
=1.09(1.05/1.04)^4=1.1325
=1.09(1.05/1.04)^5=1.1434
Jack owns a local trucking company. With fuel costs being expensive, Jack wants to evaluate how much fuel, on average, he should store in his 9,000 gallon fuel tank. Each year Jack uses 90,000 gallons of diesel (usage is spread evenly throughout the year). Jack knows with certainly that he can have a load of fuel delivered in 5 days. The price of fuel is $3.09 per gallon and there is a separate $120 ordering fee per order. Jack thinks his holding cost per unit is 30%. If Jack orders at EOQ, what will be the average inventory of fuel in his 9,000 gallon tank?
A. ≈1,206 gallons
B. ≈2,578 gallons
C. ≈2,413 gallons
D. ≈2,290 gallons
Answer:
C. ≈2,413 gallons
Explanation:
For computing the average inventory, first we have to determine the economic order quantity which is shown below:
=[tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
= [tex]\sqrt{\frac{2\times \text{90,000}\times \text{\$120}}{\text{\$0.927}}}[/tex]
= 4,827.1079 gallons
The carrying cost is
= Price of fuel × holding cost per unit
= $3.09 × 30%
= $0.927
Now the average inventory of fuel is
= Economic order quantity ÷ 2
= 4,827.1079 gallons ÷ 2
= 2,413 gallons
Final answer:
To determine Jack's average inventory of fuel in his 9,000 gallon tank, we can use the EOQ formula. The average inventory is approximately 2,413 gallons.
Explanation:
To determine the average inventory of fuel in Jack's 9,000 gallon tank, we need to use the Economic Order Quantity (EOQ) formula. The EOQ formula is given by:
EOQ = sqrt((2 * D * S) / H)
Where:
D = annual demand (90,000 gallons in this case)S = ordering cost per order ($120 in this case)H = holding cost per unit (30% of the fuel cost per gallon in this case)Given that the fuel tank has a capacity of 9,000 gallons, we can subtract the EOQ from the tank capacity to find the average inventory:
Average Inventory = 9,000 - EOQ
By plugging in the values and calculating, the average inventory of fuel in Jack's 9,000 gallon tank is approximately 2,413 gallons. Therefore, the correct answer is C. ≈2,413 gallons.
example, in the economics of Jean-Baptiste Say). _______4.The marginal propensity to consume is the change in consumption expenditure divided by the change in disposable income. _______5.If the MPC is 0.8, the marginal propensity to save will be 0.4. _______6.In a Keynesian macroeconomic model, private savings will equal the sum of private investment, the government budget deficit, and the international current account surplus. _______7. When the economy is in Keynesian macroeconomic equilibrium, planned investment is equal to actual investment. _______8.The larger the MPS, the smaller the Keynesian government spending multiplier. _______9.If the MPC is 0.75, the Keynesian government spending multiplier will be 4/3; that is, an increase of $ 300 billion in government spending will lead to an increase in GDP of $ 400 billion. _______10. If the MPC is 0.75, the lump-sum tax multiplier will be -4, that is, an increase in taxes of $ 100 "answers"
Answer:
4.The marginal propensity to consume is the change in consumption expenditure divided by the change in disposable income. _______
FALSE Is related to the change in income not disposable income.
5.If the MPC is 0.8, the marginal propensity to save will be 0.4. _______
FALSE As person can either consume or saved this two should add to 1
6.In a Keynesian macroeconomic model, private savings will equal the sum of private investment, the government budget deficit, and the international current account surplus.
TRUE The current account surplus
Savings = Investment + Budget deficit + net exports
The net exports cover the budget deficit
7. When the economy is in Keynesian macroeconomic equilibrium, planned investment is equal to actual investment. _______
TRUE There is no unplanned investment for unsold goods
8.The larger the MPS, the smaller the Keynesian government spending multiplier. _______
FALSE
The formula for the multiplier is:
1 / (1 - marginal propensity to consume) =
1 / Marginal propensity to save
Asthe MPS increases it gets closer to 1 thus, decreasing the multiplier
9.If the MPC is 0.75, the Keynesian government spending multiplier will be 4/3; that is, an increase of $ 300 billion in government spending will lead to an increase in GDP of $ 400 billion. _______
FALSE 1/(1-0.75) = 1/0.25 = 4
300 X 4 = 1,200 BILLONS
10. If the MPC is 0.75, the lump-sum tax multiplier will be -4, that is, an increase in taxes of $ 100billion will lead to a drop in GDP of $ 400 billion
FALSE
The tax multiplier is -MPC / (1 - MPC)
-0.75 / (1 - 0.75) = -0.75 / 0.25 = -3
Then 100 x -3 = -300 billon decrease
Explanation:
Consumption expenditures increase with national income because individuals spend a certain ratio of additional income, known as the Marginal Propensity to Consume (MPC), on consumption. The Marginal Propensity to Save (MPS) is what remains and the sum of MPC and MPS always equals 1.
Explanation:Understanding Marginal Propensity to Consume and Save
As national income rises, individuals have more disposable income, which they can either consume or save. The marginal propensity to consume (MPC) is a measure of the proportion of additional income that is spent on consumption. Similarly, the marginal propensity to save (MPS) represents the portion of additional income that is saved. The relationship between MPC and MPS can be expressed as MPC + MPS = 1.
Consumption Expenditures
To understand how consumption expenditures increase with national income, consider the MPC. If an individual receives an extra dollar of income and the MPC is 0.9, they will spend 90 cents on consumption. Conversely, if the MPS is 0.1, they will save 10 cents.
Calculating Consumption
For example, if a person’s after-tax income is $1000 and the MPC is 0.9, the calculation for consumption would be 0.9 * $1000 = $900. This means that $900 out of that additional $1000 in income would be devoted to consumption expenditures.
In a competitive industry a. the industry has high barriers to entry b. the industry has high barriers to exit c. the industry has high barriers to entry and exit d. the industry has no barriers to entry or exit
Answer:
The answer is D.
Explanation:
In a competitive industry like perfect competitive market, the industry has no barrier to entry or exit. Firms can freely enter the market as long as it can make its profit and leave the industry anytime the firm likes.
This no barrier to entry and exit lead to the large number of sellers that we have in this type of market. And this large number of sellers make competition strong that no seller can influence the price of the market.
In a competitive industry, there are no significant barriers to entry or exit, distinguishing it from markets where barriers exist that can potentially lead to monopolistic conditions.
Explanation:In a competitive industry, the correct answer to whether the industry has high barriers to entry or exit is d. the industry has no barriers to entry or exit. Perfectly competitive markets are characterized by the lack of barriers to entry or exit, allowing for numerous firms to enter and leave the market freely, which leads to the efficient allocation of resources. When there are significant barriers to entry, perfect competition is compromised, and the possibility of a monopoly increases. Barriers to entry can take various forms, including government-enforced barriers such as licensing and regulations, and non-government barriers like strong brand names or control of scarce resources.
Learn more about Barriers to Entry here:https://brainly.com/question/29656127
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Dave is a plumber who uses the cash method of accounting. This year Dave requested that his clients make their checks payable to his son, Steve. This year Steve received checks in the amount of $109,500 for Dave's plumbing services. Which of the following is a true statement?
a. Dave is taxed on $109,500 of plumbing income this year.
b. Steve is taxed on $109,500 of plumbing income this year.
c. Steve is taxed on $109,500 of income from gifts received this year.
d. Dave may deduct the $109,500 received by Steve.
e. All of these are true
Answer:
Option A is correct
Explanation:
What we need to know to solve this question is how the cash method for accounting works in this scenario.
Thus, using the cash accounting method income is to be recognized when cash is received, thus the taxpayers for tax purposes will be reporting income when the income is received (in the form of services, cash, property, etc.).
To get his company through some hard economic times, Ben's working hours have just been reduced from 40 hours a week to 33. Ben is upset about the reduction in time and pay, but he shows up at work every morning and is willing to patiently wait until economic times improve, and he can go back to working full time. Which of the following types of response is being displayed by Ben?
(A) voice
(B) neglect
(C) loyalty
(D) exit
(E) acceptance
Answer:
The correct answer is C) loyalty .
Explanation:
Organizational loyalty is an attitude of deep commitment of employees to the company and is manifested in the things that our subordinates are willing to give up or do with sacrifice for the sake of the organization.
In business management committees, time is often spent discussing how to increase employee loyalty to the company. Often some indices such as staff turnover, organizational climate and employee satisfaction are considered as key factors to increase loyalty. While it is true that improving these indicators is convenient, its impact is not necessarily direct on what we would call genuine loyalty.
Compare the established EOQ/ROP procedure(described in case Exhibit 2) with the one that Jake and Josh are using. Which system do you prefer? What improvements do you recommend?
Answer:
EOQ means Economic Order Quantity
Reorder point means ROP
Explanation:
EOQ means Economic Order Quantity is total units of inventory that a company should purchase so as to minimize the total costs of inventory which are holding costs, order costs, and shortage costs.
The reorder point (ROP) is the level of inventory that calls for replenishment of that stock. That is, the lowest point a company can go on a particular stock before ordering .
I prefer and would recommend ordering optimal order quantity the point at which holding cost equals ordering cost at the reorder level= safety stock +(usage rate+ lead time)
Holding cost=Average inventory level*Holding cost
Ordering cost= Average number of order* ordering cost
Safety stock is stock held in excess of expected demand
Usage rate is an estimate rate of usage
Lead time is time between placing an order and receiving it.
The traditional EOQ/ROP system optimizes stock quantities to minimize costs, whereas alternative methods like JIT align production with demand and may be preferred in scenarios with high variability. Improvements to EOQ/ROP could involve incorporating real-time data analytics or adopting JIT principles in certain contexts.
The established EOQ/ROP (Economic Order Quantity/Reorder Point) procedure is a traditional inventory management system that determines the optimal order quantity to minimize total costs related to ordering, receiving, and holding stock. Jake and Josh appear to be implementing an alternative inventory method, potentially more flexible and adapted to their business model, although specific details of their method are not provided.
In other reading situations, such as in high variability or demand uncertainty contexts, different inventory management methods, like Just-In-Time (JIT) or demand-driven approaches, might be more appropriate. JIT, as described by Womack, Jones, and Roos (1990), emphasizes minimizing inventory and aligning production closely with demand, thus reducing holding costs and potentially increasing efficiency. This method could be particularly beneficial when quality is a critical concern. Improvements to the EOQ/ROP system could include integrating real-time data analytics to better forecast demand, enhancing the flexibility of the system, or adopting JIT principles in scenarios where they can provide substantial advantages over the traditional EOQ/ROP system.
The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company’s present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives: what is the net present value of the cash flows assocaited with the purchase alternatives
Answer:
NPV = -$149,319.44
Explanation:
Ten cars will be needed, which can be purchased at a discounted price of $18,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole:
Annual cost of servicing, taxes and licensing $5,100 Repairs, first year $3,000 Repairs, second year $5,500 Repairs, third year $7,500the required rate of return or discount rate for Riteway is 20%.
Cash flows:
CF₀ = -$180,000
CF₁ = -($5,100 +$3,000) = -$8,100
CF₂ = -($5,100 + $5,500) = -$10,600
CF₃ = ($9,000 X 10) - ($5,100 + $7,500) = $90,000 - $12,600 = $77,400
using an excel spreadsheet, we can calculate the NPV with r = 20%
NPV = -$180,000 + $30,680.56 = -$149,319.44
Gordon has already worked 40 hours this week and is asked to come in to work again. Gordon is a manager who constantly has to make decisions about the business's operation. Is Gordon eligible for overtime pay?
Answer:No , he is not eligible for overtime pay.
Explanation:Who is Most Likely an Exempt Employee?
There are people who are exempt employees when it comes to qualifying for overtime pay due to their duties within the company.
Below is the list of exempt employees:
Senior management, corporate executives, company owners, company directors and similar white-collar executives are most often often exempt employees. Managers and supervisors who are responsible for making decisions on how work is performed , who set and oversee the financial aspects of the business , define pat level for employees,who are responsible for hiring all of these duties makes a manager exempt to overtime pay and we are told Gordon makes decisions about business's operation.
Answer:
Gordon is not eligible for overtime pay.
Explanation:
Based on the Fair Labor Standards Act (FLSA or Act), Gordon is the manager and have the right to make the decision which impacts on business operation. So, he will not be the one who will be covered and to be paid for overtime work.