Answer:
It will affect the profit after taxes of the company.
Explanation:
A higher ROI means that for the same level of investment, higher levels of return are achieved. In this case, the company's return is the profits after taxes, those that shareholders have the right to claim. Without considering variances in the level of investment, higher levels of profit can be obtained by a more significant difference between revenue and total expenses (including costs, operative expenses and depreciation and interests)
Final answer:
An increase in the company's required return on investment (ROI) impacts investment decisions, financing costs, and potentially the prices of goods or services. It may signal ambitious targets or higher perceived risks, affecting investor perception and possibly the stock price.
Explanation:
Holding all other things constant, an increase in the company's required return on investment (ROI) implies that the company needs to generate a higher percentage of profit from its investments.
When a company raises its required ROI, it directly influences investment decisions, since projects or investments now need to generate a higher return to be considered viable. This could lead to a reduced number of projects that meet the new, higher hurdle rate, potentially limiting growth opportunities or prompting a search for more efficient or profitable ventures.
If the required ROI is linked to the cost of capital, an increase could mean the company will have to pay more for financing, whether through equity or debt. Consequently, the company might either look for cheaper forms of financing or aim to increase operational efficiencies to maintain profit margins.
In some cases, it could also lead to an increase in the prices of the company's goods or services to maintain the higher required ROI. On the other hand, it could put pressure on the company to decrease costs, which could involve renegotiating supplier contracts, downsizing operations, or investing in technology that may improve productivity.
Moreover, the increase in required ROI might influence the perception of investors. A higher ROI could be seen as a sign of a company setting ambitious targets, but it might also raise concerns about the risk profile of the company's investments.
If perceived as too aggressive, it could potentially lead to a drop in the company's stock price if shareholders believe the risk is not being adequately managed or if they feel dividends could be affected.
The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more _______ there is within an organization.
A) centralization
B) disempowerment
C) work specialization
D) departmentalization
E) decentralization
Answer:
E) decentralization
Explanation:
Decentralization is when lower level employees are given more autonomy in carrying out their duties and in decision making.
I hope my answer helps you
identify the order in which a manufacturer would prepare the following budgets. Also note whether each budget is an operating budget or a financial budget.Select the number from 1 to 7 to indicate first to last in preparation and then select the type of budget. Order of preparation Type of budget a.Budgeted income statementb.Production budgetc.Combined cash budgetd.Budgeted balance sheet e.Direct materials budget f.Cash payments budgetg.Sales budget
Answer:
1.(g), 2. (b), 3. (e) ,4.(a), 5. (f) ,6.( c), 7. (d)
Explanation:
1. .Sales budget (g)
2.Production budget (b)
3.Direct materials budget (e)
4.Budgeted income statement (a)
5.Cash payments budget (f)
6.Combined cash budget ( c)
7.Budgeted balance sheet (d)
Income allocation in a partnershipKramer and Knox began a partnership by investing $60,000 and $80,000, respectively. During its first year, the partnershipearned $160,000. Prepare calculations showing how the $160,000 income should be allocated to the partners under eachof the following three separate plans for sharing income and loss:(1) the partners failed to agree on a method to share income; (2) the partners agreed to share income and loss inproportion to their initial investments (round amounts to the nearest dollar); and (3) the partners agreed to share incomeby granting a $50,000 per year salary allowance to Kramer, a $40,000 per year salary allowance to Knox, 10% interest ontheir initial capital investments, and the remaining balance shared equally.
Answer:
1. $68,571 on Kramer and $91,429 on Knox
2. $68,571 on Kramer and $91,429 on Knox
3. $84,000 on Kramer and $76,000 on Knox
Explanation:
1. In absence of the agreement on how the profit or loss will be allocated, we will use the ration based on the capital balances of the partners.
Kramer $60,000
Knox $80,000
Total $140,000
The allocation would be:
Kramer $160,000 x (60,000/140,000) = $68,571
Knox $160,000 x (80,000/140,000) = $91,429
2. The partners agreed to divide profit based on the initial investment of the partners.
Kramer $60,000
Knox $80,000
Total $140,000
The allocation would be:
Kramer $160,000 x (60,000/140,000) = $68,571
Knox $160,000 x (80,000/140,000) = $91,429
3. The partners agrred to allocate the profit based on the salaries given to the partners, 10% interest and divide the excess equally.
Kramer Knor Total
Salary 50,000 40,000 90,000
Interest 6,000 8,000 14,000
Excess 28,000 28,000 56,000
TOTAL 84,000 76,000 160,000
Interest
Kramer $60,000 x 10% = $6,000
Knox $80,000 x 10% = $8,000
Raul Fletes borrowed $10000 on a 270-day note that required ordinary interest at 14.42%. Raul paid $5000 on the note on the 90th day. How much interest did he save by making the partial payment?
Answer:
The interest expenses Raul saves by making the partial repayment on the 90th day of the note is: $360.5.
Explanation:
Assume the interest calculation is based on a 360-day-per-year basis.
By making partially repayment of $5,000 at the 90th day of the note, Raul has saved the interest expenses incurred for the $5,000 principal for the remaining 180 days of the note ( calculated as 270 days - 90 days).
So, the interest expenses saving is calculated as:
5,000 x 14.42% * 180/360 = $360.5.
So, the answer is $360.5.
Financial intermediaries' ability to reduce the average cost of collecting information because of their efficient operations allows them to take advantage of:
a. asset transformation
b. economies of scale.
c. economies of scope
d. transformational trading.
e. standardization.
Answer:
economies of scale
Explanation:
Financial intermediaries' ability to reduce the average cost of collecting information because of their efficient operations allows them to take advantage of economies of scale. Let's look what the economies of scale is .
Economics of scale is the decrease in cost as production increases. The increase in production decreases the cost. Thanks to the economics of scale, a trade can be done in a mutually beneficial manner. In addition, economies of scale carry the logic that large economies can be superior. The biggest reason for this is that the more production the enterprise produces in such economies, the lower the cost will be.
Scale economy can be defined as taking advantage of the large scale's cost reduction. By establishing a large capacity for production, this capacity is used effectively and the cost per unit is minimized. Usually, the scale economy occurs when a company meets a significant part of the demand in the market.
Scale Economy Types:
1) In the external-external scale economy, the average cost of a firm decreases when the space it occupies in the industry it is in increases. In other words, in external economies, the cost per output depends on the size of the industry, and in the economies of internal scale, the cost per output depends on the size of the firm.
2) In the internal-internal scale economy, when a firm's own production scale increases, the average cost decreases.
Both external economies of economies and internal economies of scale are largely important for international trade.
Negative scale economy is the opposite of the system operating in scale economy. In short, for the negative scale economy, we can say that the factors included in the scale economy work in the opposite direction. For this reason, costs increase in these economies. The reason for this can be explained by the negative impact of excessive specialization, or the loss of management.
Assume Vandell, a individual taxpayer, is in a 25 percent tax bracket. He invests in Otay Mesa Water District Bonds that pay 4.5 percent interest. What interest on a taxable bond would provide the same after-tax return to Vandell?
Answer:
Explanation:
Otay Mesa Water District Bonds are tax free bonds.
They are giving 4.5% interest and Vandell's after tax return is 4.5%.
So we have to calculate a pre-tax return that would be providing the same after tax-return as of Otay Mesa Water District Bonds. Let's assume this return to be x%
Vandell is in the 25% tax bracket, so Vandell's interest will be taxed at 25%.
So,
x ( 100 % - 25 % ) = 4.5
x = 4.5/0.75
x = 6
Final answer:
To find the interest on a taxable bond that provides the same after-tax return to Vandell as a tax-free municipal bond, apply the formula Taxable interest = Tax-free interest / (1 - Tax rate) with Vandell being in a 25% tax bracket and the tax-free bond paying 4.5% interest to calculate the taxable interest as 6%.
Explanation:
To find the interest on a taxable bond that provides the same after-tax return to Vandell as the tax-free municipal bond, you can use this formula: Taxable interest = Tax-free interest / (1 - Tax rate)
Given that Vandell is in a 25% tax bracket and the tax-free municipal bond pays 4.5% interest, the taxable interest that would provide the same after-tax return would be 6%.
Therefore, the interest on a taxable bond that would provide the same after-tax return to Vandell is 6%.
The income statement presents an explanation of the changes in the beginning and ending balances of stockholders’ equity.
a. a comparison of the benefits and the sacrifices a company experiences from its operations.
b. information in three categories including operating, investing, and financial activities.
c. a list of a company’s assets and the sources of those assets.
Answer:
a. a comparison of the benefits and the sacrifices a company experiences from its operations.
Explanation:
As we know that the income statement records only revenues earned and the expenses incurred.
If the total revenue exceeds total expenditure then the company earns net income And if the total income is below the total expenditure then the company has a net loss This net income or net loss would be expressed in the retained earnings account statement.
So, the benefits represents the revenues and sacrifice represents the expenditure
The rest options are related to the statement of stockholder equity, cash flow statement and the balance sheet
3. Andria, an attorney, has a personal injury case which is set for trial next week. She needs a good doctor to testify on behalf of her client, so she contacts Dr. Wood who agrees to testify on behalf of Andria’s client at the trial. In return for Dr. Wood's testimony, Andria agrees to pay Dr. Wood $10,000 if they win the case, and $5,000 if they lose. Dr. Wood agrees. The agreement between Andria and Dr. Wood is unenforceable.
Answer
The agreement is contingent agreement and not the unenforceable.
Explanation:
Under a contingent agreement, certain actions are taken resulting from occurring or non-occurring of certain conditions. Here outcomes are dependent upon happening of events.
Controlling costs across the whole value chain often requires a trademinusoff between the individual elements of the value chain. "A. True
B. False"
Answer:
A. True
Explanation:
Value chain analysis is an analysis method used to systematically reveal, define and analyze the strengths and weaknesses in this chain in the business philosophy, which accepts that the operations applied in a certain order to the services or products offered by an organization, that is, thanks to a value chain. How to increase the value, which critical activities and factors to consider for this, how to achieve low cost and differentiation are systematically explained by this analysis by comparing with the competitors' abilities and activities. The analysis of all the indicators is important here. If the focus is cost analyzing or controlling there must be consideration about trademinusoff which happens among individual elements of value chain like inbound, outbound logistics, operations, marketing and services, Human Resources, procurement, technological development and firm infrastructure.
Ten Toes produces sports socks. The company has fixed expenses of $ 90 comma 000 and variable expenses of $ 0.90 per package. Each package sells for $ 1.80. Requirement 1. Compute the contribution margin per package and the contribution margin ratio. 2. Find the breakeven point in units and dollars3. Find the number of packages Trendy Toes needs to sell to earn a $26,000 operating income.
Answer:
1. $0.9; 50%
2. 100,000; 180,000
3. 128,889
Explanation:
(1)
Contribution Margin per Unit :
= Selling Price per Unit - Variable Cost per Unit
= 1.80 - $0.90
= $0.90
Contribution Margin Ratio :
= Contribution Margin per Unit ÷ Selling Price per Unit
= $0.90 ÷ $1.80
= 0.5 or 50%
(2) Break Even Point in Units :
Break even Sales in Units :
= Fixed Expenses ÷ contribution margin per unit
= $90,000 ÷ 0.90
= 100,000
Break-even Sales in dollars :
= Fixed Expenses ÷ Contribution Margin Ratio
= $90,000 ÷ 0.5
= $180,000
(3) Number of packages required to be sold to earn $26,000 Operating Income:
Contribution required = Income + Fixed Expenses
= $26,000 + $90,000
= $116,000
Contribution per unit = 0.9
No. of units required to be sold = $116,000 ÷ 0.9
= 128,889
The number of packages to achieve an operating income of $26000 is 128,889.
Final answer:
The margin is 50%, the breakeven point is at $180,000 and the number of packages are 128,889.
Explanation:
The question involves the computation of the contribution margin, the contribution margin ratio, and the determination of the breakeven point in both units and dollars for Ten Toes company which produces sports socks. Furthermore, it requires calculating the number of packages that need to be sold to achieve a specific operating income.
Ten Toes Sports Socks Analysis:
Contribution Margin per package: $1.80 - $0.90 = $0.90
What is the term for the "process of hiring external HR professionals to do the HR work that was previously done internally"?
Answer:
HR Outsourcing
Explanation:
Human Resources (HR) outsourcing is a popular business practice where firms in order to allow its HR employees concentrate on the core HR functions of the organization, engages consultants who are experts in HR matters to manage some of the HR tasks of the organization.
The need to sub-contract human resources functions always become necessary when HR tasks arise that may be considered complex, time consuming and capable of shifting management focus from the core HR functions
Which of the following situation would make transaction costs too high to negotiate and therefore the Coase Theorem would not apply? Print Multiple Choice
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: The correct answer is "c. Many people are bothered by pollution in the area".
Explanation: The Coase Theorem points out that if property rights are well defined and transaction costs are zero, the negotiation between the parties will lead us to an optimal point of allocation in the market.
Whoever keeps the right will depend on the value of what each party produces and the costs of losing the right to property.
However, Coase's theorem ceases to be valid when there are high negotiation costs, for example between a company and thousands of inhabitants of an area (like in this case) or when property rights are not well defined (all parties believe they have the right to do what they want).
Final answer:
The Coase Theorem does not apply when many people are bothered by pollution, as transaction costs become too high due to the complex nature of negotiations, enforcement, and monitoring. Option C
Explanation:
The situation that would make transaction costs too high to negotiate, making the Coase Theorem inapplicable, is when many people are bothered by pollution in the area. The Coase theorem posits that if property rights are well-defined and transaction costs are low, two parties will be able to bargain to reach an efficient outcome in the presence of an externality.
However, when a large number of people are affected by an externality such as pollution, the cost of negotiating and reaching an agreement becomes too high. This is because enforcement becomes difficult, monitoring is challenging, and the sheer number of deals that need to be struck becomes unmanageable.
In cases like Mexico City's air pollution, with millions of people involved, it is impractical to expect all the individuals to come to an agreement to limit their collective driving behavior. Coase himself noted that the conditions necessary for an efficient market solution via private parties rarely exist in environmental situations. Therefore, alternative approaches are required beyond individual bargaining to effectively manage environmental problems like air pollution.
Metlock, Inc. is considering these two alternatives to finance its construction of a new $1.28 million plant: (1) Issuance of 128,000 shares of common stock at the market price of $10 per share. (2) Issuance of $1.28 million, 8% bonds at face value.If the income before interest and tax is$1,515,000 for issue stock and issue bond. Calculate expenses from bonds.
Answer:
Interest expenses from issuing bond = $102,400
Explanation:
Generally, Bond creates interest expenses for a company. Issuing stock will not create any interest. The tax is low due to paying interest when issuing bond. Since the bond does not have any specific maturity period, the interest expense will be for 1 year only.
Interest expense = The value of bond × Annual interest rate × number of periods
Given,
The value of bond = $1.28 million = $1,280,000
Annual interest rate = 8% = 0.08
Number of periods = 1
Therefore, interest expense = $1,280,000 × 0.08 × 1 = $102,400
Final answer:
To calculate the expenses from bonds, multiply the total bond amount of $1.28 million by the 8% interest rate, resulting in an annual interest expense of $102,400.
Explanation:
The student is asking how to calculate the expenses from bonds for a company considering issuing bonds to finance a new plant. In this scenario, Metlock, Inc. is looking at the option of issuing bonds with an 8% interest rate to raise $1.28 million. To calculate the expenses from the bonds, we multiply the total amount of the bonds by the interest rate, which represents the annual interest payments that the company will need to make to the bondholders.
The calculation would be as follows:
Identify the total amount of bonds to be issued: $1.28 million.Multiply by the interest rate (8% or 0.08): $1.28 million × 0.08.Calculate the annual interest expense: $102,400.Therefore, the annual interest expense from the bonds would be $102,400. This is the amount Metlock, Inc. would pay annually to the bondholders for the use of their funds.
Your tuition for the coming year is due today. You borrow $8,000 from your uncle and agree to repay in the three years an amount of $9,250. What is the interest rate on this loan
Answer:
Interest rate on the loan is approximately 5%
Explanation:
The interest rate on the loan can be found by using the compound interest formula.
FV = P(1 + r)^t
Where: FV = Future value
P = Principal amount
r = Interest rate
t = Time period in years.
FV = $9,250
P = $8,000
t = 3 years
r = unknown
Substitute the values above into the formula
9,250 = 8,000 (1+r)^3
Divide both sides by 8000
9,250/8000 = (8,000 (1+r)^3)/8000
1.15625 = (1+r)^3
Find the cube root of both sides
[tex]\sqrt[3]{ 1.15625}[/tex] = [tex]\sqrt[3]{(1+r)^3}[/tex]
1.049584113 = 1+r
Subtract 1 from both sides
1.049584113 - 1 = 1+r - 1
0.049584113 = r
r = 0.049584113
r ≈ 0.05 = 5%
That is, the interest rate on the loan is approximately 5%
Final answer:
The interest rate on the $8,000 loan that is repaid with $9,250 after three years is calculated to be 5.208%.
Explanation:
To calculate the interest rate on the loan from your uncle, we use the formula for simple interest: I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years. Since we know the total interest paid (which is the difference between the amount repaid and the original loan) and the time, we need to rearrange the formula to solve for R.
First, let's find the total interest paid: $9,250 (final amount) - $8,000 (principal loan) = $1,250 (total interest).
Now we rearrange the simple interest formula to solve for R: R = I / (PT).
Plugging the values in, we get: R = $1,250 / ($8,000 * 3 years) = R
= $1,250 / $24,000 = R = 0.05208.
To express R as a percentage, we multiply by 100: interest rate = 0.05208 * 100 = 5.208%.
Which of the following is a situational characteristics that influences the choice of leadership style for a supervisor?
a) tolerance for ambiguity
b) time available
c) need for independence
d) Interest in solving a problem
b) Time available is a situational characteristics that influences the choice of leadership style for a supervisor.
It impacts how a supervisor can manage their leadership style. For example:
If a supervisor has limited time, they may adopt a more authoritative style to make quick decisions.Conversely, if they have ample time, they may involve team members in decision-making and adopt a collaborative approach.Understanding the context of the timeline can lead to more effective leadership choices, as it directly relates to how decisions are made and how teams interact with each other in a workplace environment.
During the initial homeowner meeting, the designer ascertains the homeowner’s preferences, financial constraints, and any special needs.
A. TRUE
B. FALSE
If sixty $1,000 convertible bonds with a carrying value of $70,000 are converted into 9,000 shares of $5 par value common stock, the journal entry to record the conversion is
Account Titles and Explanation Debit Credit
Bonds Payable (60 x $1000) 60,000
Premium on Bonds Payable (70,000 - 60,000) 10,000
Common Stock (9000 shares x 5) 45,000
Paid-in Capital in Excess of Par (70000 - 45000) 25,000
Please explain where does that bonds payable (60x 1000) comes from?
Answer:
Explanation:
The journal entry is shown below:
Bonds payable A/c Dr $60,000
Premium on bonds payable A/c Dr $10,000
To Common stock A/c $45,000
To Paid in capital in excess of par A/c $25,000
(Being the conversion of bonds is recorded)
The computation is shown below:
For bonds payable
= sixty $1,000 convertible bonds
That means
= 60 × $1,000
= $60,000
For Premium on bonds payable:
= $70,000 - $60,000
= $10,000
For Common stock:
= 9,000 shares × $5
= $45,000
And, the remaining balance is credited to paid in capital in excess of par
When you construct the replicating portfolio for the option in the previous question how many dollars do you need to invest in the cash account
Answer: The same amount of dollars
When it comes to the financial level, a replicating portfolio as the name implies, is a repetition of specific flows of a given asset, so it must be constituted with the same resources. In this case, the same amount of cash would be needed to create the replica.
On January 2, 2018, Miller Properties paid $19 million for 1 million shares of Marlon Company’s 6 million outstanding common shares. Miller’s CEO became a member of Marlon’s board of directors during the first quarter of 2018.
The carrying amount of Marlon’s net assets was $66 million. Miller estimated the fair value of those net assets to be the same except for a patent valued at $24 million above cost. The remaining amortization period for the patent is 10 years.
Marlon reported earnings of $12 million and paid dividends of $6 million during 2018. On December 31, 2018, Marlon’s common stock was trading on the NYSE at $18.50 per share.
Required:
When considering whether to account for its investment in Marlon under the equity method, what criteria should Miller’s management apply?
Assume Miller accounts for its investment in Marlon using the equity method. Ignoring income taxes, determine the amounts related to the investment to be reported in its 2018:
Income statement
Balance sheet
Statement of cash flows
Answer:
Cost Method
Explanation:
1. When considering whether to account for its investment in Marlon under the equity method, Miller’s management should apply 'Cost Method' because 'equity accounting method' is should only be used when the company has a significant interest in Marlon which is assumed to be 20% of its shareholding.
2. If we assume the use of equity method then.
investment to be reported in its 2018:
A. Income statement : This will be a single line to show the 'share of associate's profit' which is derived by multiplying the percentage ownweship by the investee's profit amount: 16.67%* 12 = $2million
B. Balance sheet : This will show the carrying value of the investment under long term assets, after fixed assets before current assets. The value will be:
1. The purchase consideration of $19m
(+)
2. The share of associate's profit of $2m
(-)
3. The amount of dividends received of $6m
Therefore the carrying value of the investment in the balance sheet will be $15 million
C. Statement of cash flows: The statement of cashflows will only show the receipt of cash for the dividend of $6million from Marlon, in the 'investing activities' section, as an inflow.
Ken Company purchased $7,000 of merchandise from Marilyn Company with terms of 4/10, n/45. What percent discount will Ken Company get if it pays within the allowed discount period? Answer % If Ken Company fails to pay within the discount period, how many days does Ken Company have from the date of purchase before the payment is considered to be late?
Answer:
4% and 45 days
Explanation:
Given that
Purchase value of merchandise = $7,000
Discount made within 10 days = 4%
Number of given days for payment = 45 days
So
In the first case, for eligible to discount, the discount rate is 4%
And, the prescribed time limit for paying the amount is 45 days which is already mentioned in the question
After 45 days, the payment is late.
NPV Valuation. The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of S109,OOO for the firm during the first year, and the cash flows are projected to grow at a rate of 5.1% per year forever. The project requires an initial investment of $1,425,000. a. If Yurdone requires a return of 12 percent on such undertakings, should the cemetery business be started? b. The company is somewhat unsure about the assumption of a 5.1 percent growth rate in its cash flows. At what constant growth rate would the company just break even if it still required a return of 12 percent on its investment?
Answer:
a. The cemetery business be started
b. The company will just break even at a constant growth rate of 4.4%
Explanation:
A. To know whether to start the cemetery business or not, we need to subtract the present value of the initial outlay to generate the NPV and if the result is positive, it will be advisable to start the business and if otherwise, it won't be advisable to start the cemetery business.
This is a question on perpetuity growth. let us extract the information in the question
Initial investment = $1,425,000
Cash inflow in year 1 (C) = $109,000
Cost of capital (r) = 12%
Growth Rate (g) = 5.1%
Net Present Value (NPV) = PV of Growing Perpetuity - Initial
investment
NPV = {C/(r-g)} - Initial Investment
NPV = {109,000 /(12% - 5.1%)} - 1,425,000
NPV = {109,000 /(0.12 - 0.5.1)} - 1,425,000
NPV = {109,000 /(0.69)} - 1,425,000
NPV = 1,579,710.15 - 1,425,000
NPV = $154,710.15
Since the net present value (NPV) of the project is positive, the cemetery business should be started.
b. At break even, PV of Growing Perpetuity = Initial investment
C/(r-g) = Initial investment
Initial investment = 1,425,000
C = $109,000
r = 12%
g = Unknown
109,000 /(12% - g) = 1,425,000
109,000 /(0.12 - g) = 1,425,000
1,425,000 (0.12 - g) = 109,000
171,000 - 1,425,000g = 109,000
- 1,425,000g = 109,000 - 171,000
- 1,425,000g = -62,000
- 1,425,000g/ - 1,425,000 = -62,000/- 1,425,000
g = 0.04351
Convert the answer to percentage 0.04351 * 100% = 4.4%
That is, the company will just break even at a constant growth rate of 4.4%
By applying the NPV valuation and Gordon Growth Model, it was found that the cemetery business should not be started as the NPV is -$325,000. Additionally, the assumed growth rate must be approximately 7.64%, rather than 5.1%, for the company to break even on its investment.
Explanation:This problem is a classic case of evaluating an investment decision using the net present value (NPV) method. The NPV model is a financial model that computes the present value of cash inflow and outflow of a project or business venture.
a. We first need to calculate the present value of the cash inflows with a growth rate and then subtract the initial investment. Using the Gordon Growth Model (a variant of the Dividend Discount Model) to find the present value of perpetual cash flows with a growth rate, we get: NPV = CF / (r - g) where CF= Cash flows of the first year, r = Required rate of return, g = Growth rate. So, NPV = 109,000 / (0.12 - 0.051) - 1,425,000 = -$325,000
Since the NPV is negative, the cemetery business should not be started as the present value of the cash inflows is less than the initial investment.
b. To break even, the NPV must be 0. So, 0 = 109,000 / (0.12 - g) - 1,425,000. Solving for g, we find the growth rate that would make the company break even is approximately 7.64%.
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Joker stock has a sustainable growth rate of 7 percent, ROE of 10 percent, and dividends per share of $1.20. If the P/E ratio is 15.0, what is the value of a share of stock?
Answer:
P/E ratio = Market price per share
Earnings per share
15 = Market price per share
$4
Market price per share = 15 x $4 = $60
Growth rate = Retention rate x ROE
0.07 = Retention rate x 0.10
0.07 = Retention rate
0.10
Retention rate = 0.7 = 70%
Dividend pay-out ratio = 100% - 70%
Dividend pay-out ratio = 30%
Earnings per share = 100/30 x $1.20 = $4
Explanation:
In this case, we will apply the formula of price-earnings ratio, which is market price per share divided by earnings per share. The P/E ratio was given while the earnings per share is derived. The market price per share becomes the subject of the formula.
In order to determine the earnings per share, we need to obtain the retention ratio by applying the formula of growth rate. In this case, growth rate and ROE were provided in the question with the exception of retention rate. Thus, the retention rate is made the subject of the formula. Having obtained the retention rate, we will now obtain the dividend payout ratio which is 100% minus retention rate.
Then, we will obtain the earnings per share by dividing 100 by the pay-out ratio multiplied by the dividend per share.
Order: 20,000 units heparin IV in 250 mL to infuse at 25 units/kg/hr. Client weighs 184 lb. How many units per hour will the client receive?
Answer:
The client will receive 2086.5 units per hour.
Explanation:
This question can be solved by rules of three:
Order
20,000 units heparin IV in 250 mL to infuse at 25 units/kg/hr.
So the number of units per hour that the client will receive is 25 multiplied by his weight, in kilograms.
Client weighs 184 lb.
We have to make the conversion of lb to kg.
Each lb is 0.4536 kg.
So the client weight 184*0.4536 = 83.46kg.
How many units per hour will the client receive?
83.46*25 = 2086.5.
The client will receive 2086.5 units per hour.
What key stage involves defining your project? a. Representing your data in a trustworthy manner b. Working with data c. Developing your design solution d. Formulating your brief
Answer:
The correct answer is letter "C": Developing your design solution.
Explanation:
Every project borns with the idea of finding a solution to a problematic situation. While designing a project coming up with what the solution is for the problem that you would like to attempt solving is vital because from there part all the steps on what and how it is going to be done.
For the past year, LaPrade Company had fixed costs of $70,000, a unit variable costs of $32, and a unit selling price of $40. For the coming year, no changes are expected in revenues and costs except that property taxes are expected to increase by $10,000.
a. Determine the break-even sales (in units) for the past year.
b. Determine the break-even sales (in units) for the coming year.
Answer:
a. Break Even points in past year 8,750 units
b. Break Even point in coming year 10,000 units
Explanation:
The breakeven sales in units is calculated by dividing the fixed costs by the contribution margin of each unit of sales.
The selling price is $ 40 and the variable costs per unit are $ 32 so the contribution margin per unit is $ 8.
For past year
To cover the fixed costs of $ 70,000 the breakeven point is calculated as:
$ 70000/ $ 8 = 8.750 units.
For coming year
The fixed costs are increasing by the property taxes increase of $ 10,000 so the fixed costs are $ 80,000
Break even point is calculated as $ 80,000/$8 = 10,000 units.
Generally, the taxpayer may deduct the cost of medical expenses on Schedule A for which of the following? a. Doctor prescribed birth control pillsb. Controlled substances like marijuana that are in violation of federal lawc. Trips for general health improvementd. Marriage counseling
Answer:
a. Doctor prescribed birth control pills
Explanation:
Generally, the taxpayer may deduct the cost of medical expenses on Schedule A for doctor prescribed birth control pills
"A respondent of a survey is asked whether their most recent dining experience was excellent, good, fair, or poor. The person indicates that the experience was "good". This is an example of ________ data."
Answer:
The correct word for the blank space is: Ordinal.
Explanation:
Ordinal data is one of the four (4) types of measurement scales that values in order of importance the rating that can be provided over a subject. However, the difference between each of the rates is not clear. Usually, this approach aims to measure comfort, experience or satisfaction.
The respondent indicating their dining experience was "good" is providing ordinal scale data, which allows ranking without measurable differences. This differs from quantitative discrete data, which involves countable numbers, and qualitative data, which includes subjective insights gathered through more open questions.
Explanation:The survey data collected about a person's dining experience, where the responses range from "excellent" to "poor," exemplifies ordinal scale data. Ordinal scale data allows for ranking of responses, but the differences between the ranks are not measurable. In our example, the response of "good" indicates a preference that is higher than "fair" or "poor" and lower than "excellent," but we cannot quantify the difference between these rankings.
Survey questions using the Likert-response scale also generate ordinal scale data. For instance, when a question asks for the level of agreement to a statement with options ranging from "strongly disagree" to "strongly agree," respondents rank their level of agreement without specifying the magnitude of difference between the choices.
In contrast, quantitative discrete data would involve numerical responses that can be counted, such as the number of tickets sold to a concert. Qualitative data, on the other hand, includes subjective responses that contain more in-depth opinions, beliefs, or feelings, often gathered through open questions or content analysis.
An employee scans his badge to open a door, but the door does not open. The employee does not have access to the room as part of the job. This is an example of a:
This is an example of a Negative
Explanation:
A negative situation may arise into your personal and professional life such as not being able to get a job or in a relationship. Will may also not be able to receive discounts or increasing your product sales during your professional life. These negative situations arise from our negative feelings and are our life's greatest enemy.
Give yourself a moment to relax before doing anything. You can be stressed very easily and do the wrong thing if you are in a negative situation. Take a moment, take a few deep breaths, relax, and think clearly. If you're still emotional, you're likely to make matters worse.
Drussden Inc., a multinational corporation, has decided to hire military veterans. This, the company feels, would not only set a good example of a diverse workplace among its peers and customers, but also let it derive great benefits from this unique talent pool. In implementing this recruiting strategy, Drussden Inc. should expect:
a. an increase in expenses as the company will need to pay a much higher compensation to these employees.
b. a significant decrease in its hiring-related costs.
c. to require sufficient time for training their HR personnel on how to appropriately interview these potential employees.
d. to have a more rigid and harsh workplace environment than before.
Answer:
The correct answer is letter "B": a significant decrease in its hiring-related costs.
Explanation:
Education received in the military -besides being disciplinary- allows individuals to acquire knowledge in diverse fields because soldiers are prepared to face different difficult situations inf front of major events: war. Hiring veterans in a company could represent a big advantage for the organization since some of them could have received even more specialized education compared to the duties they will perform in the firm. By this, that company should expect to reduce the costs of hiring high-skill personnel.
Drussden Inc. should expect a significant decrease in its hiring-related costs and may need to train their HR personnel on how to appropriately interview military veterans.
Explanation:In implementing the recruiting strategy to hire military veterans, Drussden Inc. can expect a significant decrease in its hiring-related costs as military veterans often come with valuable skills, training, and experience that can directly translate to the workplace. Additionally, military veterans often have strong work ethic, discipline, and leadership skills, which can contribute to a more productive and efficient workplace environment.
While the company may need to invest some time and resources to train their HR personnel on how to appropriately interview these potential employees, it is a worthwhile investment considering the benefits they can bring to the company.
Learn more about Recruiting military veterans here:https://brainly.com/question/33828958
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According to the author of the textbook, offshore oil production presents _____ challenges. Select one or more:
a. atmospheric
b. logistics
c. human resources
d. geological
Answer:
(b). and (c).
Explanation:
Offshore oil production involves drilling below the sea bed level and involves exploration and extraction of petroleum.
The production also applies to drilling beneath lakes or inshore waters.
The major challenges which it presents are in the form of difficulty of assembling human resources at such a site and movement of supplies and transportation i.e logistics.
Off shore oil production thereby involves huge cost and immense efforts.
Thus, off shore oil production presents both human resources and logistics challenges.
Answer:
a. atmospheric
Explanation:
According to the author of the textbook, offshore oil production presents atmospheric challenges.
The harsh offshore atmospheres which pose technical challenges for offshore drilling machinery are the reason for the risk. Extreme weather, snow and winds carry risks to the usability of the rigs, and their gap from the ground makes it more difficult for increased rescue workers to attain the areas quickly in emergencies.