JackITs has 5.0 million shares of common stock outstanding, 1.0 million shares of preferred stock outstanding, and 20.00 thousand bonds. If the common shares are selling for $28.00 per share, the preferred share are selling for $13.50 per share, and the bonds are selling for 98.00 percent of par, what would be the weight used for equity in the computation of JackIT's WACC?

Answers

Answer 1

Answer:

80.88; 7.80; 11.32

Explanation:

Common Stock:

Value = Number × Price

          = 5,000,000 × $28

          = $140,000,000

Preferred Stock:

Value = Number × Price

          = 1,000,000 × $13.50

          = $13,500,000

Bonds:

Value = Number × Price

          = 20,000 × $980

          = $19,600,000

Total value = $140,000,000+ $13,500,000 + $19,600,000

                   = 173,100,000

Weight of common stock = Respective Value ÷ Total Value

                                          = $140,000,000 ÷ 173,100,000

                                          = 80.88

Weight of preferred stock = Respective Value ÷ Total Value

                                          = $13,500,000 ÷ 173,100,000

                                          = 7.80

Weight of Bonds = Respective Value ÷ Total Value

                            = $19,600,000 ÷ 173,100,000

                            = 11.32


Related Questions

Barry was assigned recently to a large team working on a major software release that was taking longer than expected. Barry and the other latecomers into the project spent a month partnered with a senior programmer who went over the project in detail with them and got them up to speed. Unfortunately, this training put the project even farther behind schedule. After a few months of working on the project with so many other programmers, Barry's work output becomes noticeably lower than it was before when he was working independently. Barry's reduced work output is most likely due to __.

Answers

Answer:

Social loafing

Explanation:

Social loafing

Social loafing- it is refer to that condition when any member of a team show lack of interest when he/she is working in team than working alone. It is refer to mindset that people are more often work carelessly when task are assigned for group, it happened because sometimes people think some other member from group will take care of the assigned task.

Final answer:

Barry's reduced work output is most likely due to social loafing, where individuals exert less effort when working in a group.

Explanation:

Barry's reduced work output is most likely due to social loafing. Social loafing refers to the phenomenon where individuals exert less effort when working in a group because their individual performance cannot be evaluated separately from the group. This can lead to a decline in performance, especially on easy tasks.

An analyst is forecasting net income for Excellence Corporation for the next fiscal year. Her low-end estimate of net income is $250,000, and her high-end estimate is $350,000. Prior research allows her to assume that net income follows a continuous uniform distribution. The probability that net income will be greater than or equal to $337,500 is ________. 0.125

Answers

Answer:

12.5%

Explanation:

We are estimating the probability to be greater than or equal to $337,500

This probability will be

P(X > $337,500) = (high-end estimate - 337500) / (337500 - low-end estimate)

P(X > $337,500) = (350000-337500) / (350000-250000) = 0.125

                           = 0.125*100

                           = 12.5%

Which of the following is true about classified ad Web sites?

a. They do not allow the search to be narrowed down to a particular city.
b. They do not list local advertisers.
c. They are typically supported by ad banners of other advertisers.
d. They do not allow the search to be extended nationwide.
e. They do not offer free classified advertising opportunities.

Answers

Answer:

The correct answer is letter "C": They are typically supported by ad banners of other advertisers.

Explanation:

A classified ad website is the type of web page that allows a free advertisement in different fields without charge. By doing this, the websites promote the purchase, selling, and bargain of products from different kinds. Usually, the classified website is supported by other advertisers who pay for publishing on the same webpage. Examples of free posting sites are eBay, Craiglist, and OLX.

A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2011. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,109.

Using straight-line amortization, what is the carrying value of the bonds on December 31, 2013?

a. $14,752,673

b. $14,955,466

c. $14,725,375

d. $14,747,642

Answers

Answer:

d. $14,747,642

Explanation:

For computing the carrying value of the bonds , first we have to determine the  discount amortization for 3 years which are shown below:

= (Issued amount - proceeds from the bonds) ÷ time period × number of years

= ($15,000,000 - $14,703,109) ÷ 20 years × 3 years

= $44,533.80

Now the carrying value would be

= Proceeds from the bonds + discount amortization for 3 years

= $14,703,109 + $44,533.80

= $14,747,642

Glen filed his 2017 return on March 15, 2019. He is due a $400 refund on his 2017 return. What is the failure-to-file penalty for his 2017 return?a. $0b. $24c. $210d. $400

Answers

Answer:

a. $0

Explanation:

If a person has refund due, then there is no penalty on filing late return. Glen filed his return of year 2017 in year 2109. There will be $0 penalty, since he has his refund due.

As of January 1, 2018, Farley Co. had a credit balance of $526,000 in its allowance for uncollectible accounts. Based on experience, 3% of Farley's credit sales have been uncollectible. During 2018, Farley wrote off $637,000 of accounts receivable. Credit sales for 2018 were $19,800,000. In its December 31, 2018, balance sheet, what amount will Farley report as allowance for uncollectible accounts? A. $705,000. B. $483,000. C. $1,120,000. D. $594,000.

Answers

Answer:

The correct answer is B

Explanation:

The amount which will Farley report as an allowance for uncollectible accounts in the balance sheet is computed as:

Uncollectible amount from sales = Sales × Percentage of credit sales which is uncollectible

where

Sales is $19,800,000

Percentage of credit sales which is uncollectible is 3%

Putting the values above:

= $19,800,000 × 3%

= $5,94,000

Total uncollectible amount = Uncollectible amount from sales + Credit balance of uncollectible - Amount wrote off

= $5,94,000 + $526,000 - $637,000

= $11,20,000 - $637,000

= $483,000

Yocum Company purchased equipment on January 1 at a list price of $120,000, with credit terms 2/10, n/30. Payment was made within the discount period and Yocum was given a $2,400 cash discount. Yocum paid $6,000 sales tax on the equipment, and paid installation charges of $1,760. Prior to installation, Yocum paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?

a. $125,360
b. $129,360
c. $131,760
d. $123,600

Answers

Answer:

b. $129,360

Explanation:

The total cost of the new equipment is given by the sum of the actual cost of the equipment (minus the cash discount) to the various incurred costs to the purchase and installation of the equipment (taxes, installation cost and concrete expense).

The total cost is:

[tex]C = (\$120,000-\$2,400) +\$6,000+\$1,760+\$4,000\\C=\$129,360[/tex]

The correct answer is b. $129,360

Rob, Bill, and Steve form Big Company. Rob performs $45,000 of services for his 45 shares of the company. Bill transferred property with a basis of $5,000 for $75,000 of stock (75 shares). Steve contributes cash of $100,000 for his 100 shares. Which of the three must recognize income in the year of the formation?

Answers

Answer:

Rob and Bill.

Explanation:

1. ""Organizations are more likely to succeed when they have an adaptive culture."" What can an organization do to foster an adaptive culture? 2. Is it possible to have a knowledge of what an organizational culture is before you become a part of the organization? How important is it for you to align yourself with your organizational culture? g

Answers

Answer:

Answer to the 1st Question.

To allow a diverse employees from different backgrounds to be a part of the organizationFacilitating friendship, trust, employee loyalty and skills through employee development programsMaintaining a culture of transparency and openness where important information regarding the company are not hidden from the employeesReducing the separations and segregation between different levels of employees to a reasonable level

Answer to the 2nd Question.

Yes it is possible. But the knowledge is Limited. This is because the only possible ways for you to understand the culture before going in is by asking someone or through reading! However, culture is not a "text book" thing and to understand it clearly you have to go in and be exposed to it!

Answer to the 3rd Question.

It is really important if you need to stay with the organization for a long time. If you are unable to adapt to the culture of that particular organization, then you might not be able to cope with your colleagues and superiors and eventually you may be forced to leave the organization,

Explanation:

I think I did that in the upper part!!!!

The board of commissioners of the City of Hartmoore adopted a General Fund budget for the year ending June 30, 2017, that included revenues of $1,432,500, bond proceeds of $427,500, appropriations of $980,000, and operating transfers out of $480,000. If this budget is formally integrated into the accounting records, what journal entry is required at the beginning of the year? If this budget is formally integrated into the accounting records, what later entry is required?

Answers

Answer:

See explanation section

Explanation:

Req. A

As the general fund budget is formally integrated, the journal entry at the beginning requires to make the revenue debit and appropriations to be credit. And there must be a balancing figure to integrate the operational transfers.

Debit      Revenues                            $1,432,500

Debit      Bond proceeds                        427,500

Credit               Appropriations                                       $980,000

Credit               Operating transfers out                           480,000

Credit               Fund balance (Balance debit - credit)    400,000

Fund balance is the budgetary amount.

Req. B

At the end of the accounting period, the fund balance needs to be removed by making it debit. Most importantly, as the year wears out, all the budgetary plans will be transferred. Therefore, the journal entry is-

Debit      Appropriations                  $980,000

Debit      Operating transfers out      480,000                  

Credit     Fund balance (Req. A)      $400,000

Credit               Revenues                                     $1,432,500

Credit               Bond proceeds                                 427,500

An individual borrowed money at the bank to send his daughter to college. Instead of purchasing Credit life insurance, he used an existing life insurance policy to secure the debt. This would be called a ___________

Answers

Answer:

The correct answer is: Collateral Assignment.

Explanation:

Collateral assignment of a life insurance sets a lender as the beneficiary in front of the decease of the insured, so the benefits will be used to cover the debt of that loan. The lender could be the insured of the life insurance or anybody else the insured decides to appoint.

Final answer:

A loan secured with an existing life insurance policy is known as a collateralized loan. It offers the lender security in the form of the policy benefits if the borrower fails to repay the loan.

Explanation:

When an individual borrows money from a bank and secures the debt with an existing life insurance policy, this arrangement is called a loan backed by collateral. Collateral in financial terms often includes property or equipment, but it can also be other assets such as a life insurance policy. Such collateral provides assurance to the lender that if the loan is not repaid, the bank has the right to seize the policy benefit to recover the debt.

In addition to the size of the GDP, some other factors that affect the value of the American dollar are its relative _____________ compared to other currencies and the relative stability of the governments that issue those currencies..

Answers

Answer:

The correct word for the blank space is:  scarcity.

Explanation:

Besides scarcity, some other factors influence the U.S. dollar value such as government stability, supply and demand, market psychology, and technical factors. When the U.S. exports goods it creates a demand for American dollars because customers must pay in that currency. The value of the U.S. dollar can be gauged by monitoring events like the Gross Domestic Product (GDP) since it reveals what is happening in the economy.

Economy of Economy Stock A Stock B Recession .20 .010 –.35 Normal .55 .090 .25 Boom .25 .240 .48


a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)


b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

a.  STOCK A

State of nature  R(%)           P        ER            R-ER        R - ER2.P          

Recession           0.010      0.20    0.002      -0.1015     0.00206045

Normal                0.090     0.55     0.0495    -0.0215    0.0002542375

Boom                  0.240      0.25     0.06         0.1285     0.0041280625                                                    

                                                  ER   0.1115       Variance 0.00644275    

STOCK B                                                                                                                                                                                                                                                                                                                                          

State of nature   R(%)           P          ER        R - ER        R - ER2.P                  

Recession         -0.35         0.20    -0.07       -0.5375    0.05778125                                                                                                                                                                                                                                                                        

Normal               0.25         0.55     0.1375     0.0625    0. 0021484375

Boom                 0.48          0.25     0.12         0.2925    0.021389062                                                                                                                                                                                                                                                                                                                                                                                

                                              ER      0.1875    Variance  0.08131875  

Expected return of stock A = 0.1115  = 11.15%

Expected return of stock  B = 0.1875 = 18.75%

b.  Standard deviation of stock A = √0.00644275 = 0.0802                                                              

Standard deviation of stock B = √0.08131875= 0.2852                                        

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

Explanation:

In the first case, there is need to calculate the expected return                                                                                                                                                                                                                                                                                                                                                  of each stock by multiplying the return by probability.

In the second case, we need to obtain the variance. The square root of variance gives the standard deviation. Variance is calculated by deducting the expected return from the actual return, then, raised the         difference by power 2 multiplied by probability.                                                                                                                                                                                                                                                                    

Final answer:

To find the expected return for each stock, multiply the probability of each economic condition by the return of the stock in that condition and then sum them up. To calculate the standard deviation of each stock, calculate the variance by computing the sum of squared differences between each return and the expected return, weighted by the probability of each economic condition, then take the square root of the variance.

Explanation:

a. To calculate the expected return for each stock, we multiply the probability of each economic condition by the return of the stock in that condition and then sum them up. For Stock A:
(0.20)(0.010) + (0.55)(0.090) + (0.25)(0.240) = 0.0513 or 5.13%.
For Stock B:
(0.20)(-0.35) + (0.55)(0.25) + (0.25)(0.48) = 0.112 or 11.2%.

b. To calculate the standard deviation for each stock, we need to calculate the variance first. The variance is the sum of the squared differences between each return and the expected return, weighted by the probability of each economic condition. The standard deviation is the square root of the variance.
For Stock A:
Var(A) = (0.20)(0.010 - 0.0513)^2 + (0.55)(0.090 - 0.0513)^2 + (0.25)(0.240 - 0.0513)^2 = 0.000442
Stdev(A) = √Var(A) = 0.021 or 2.1%.
For Stock B:
Var(B) = (0.20)(-0.35 - 0.112)^2 + (0.55)(0.25 - 0.112)^2 + (0.25)(0.48 - 0.112)^2 = 0.084
Stdev(B) = √Var(B) = 0.29 or 29%.

Learn more about Calculating expected return and standard deviation for stocks here:

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Which of the following is NOT a benefit of designing for producibility? [Identify the methods and objectives of manufacturing that influence system design.]

a. Little or no testing required
b. Lower overall cost
c. Quicker product introduction
d. Stable product design

Answers

Answer:

The correct answer is letter "A": Little or no testing required.

Explanation:

Producibility design allows a company to have a reliable product design aligned with manufacturing processes that reduce overall costs. By doing so, the efficiency of the product becomes higher because of the trial processes the firms go through, leading to a quicker introduction of the good to customers.

Final answer:

The option 'a. Little or no testing required' is the incorrect choice because testing is critical for ensuring the safety and quality of the product, regardless of its producibility. Producing a design that is optimized for manufacturing still necessitates adequate testing at various stages.

Explanation:

The question poses a scenario regarding the benefits of designing a product with producibility in mind. In the context of manufacturing and system design, producibility refers to the extent to which a product is designed for easy production, which typically results in lower costs, quicker market introduction, and a more stable design. The incorrect option among the provided benefits of designing for producibility is a. Little or no testing required.

Testing is a critical component of the design process and is necessary to ensure product quality and safety, and it cannot be substantially reduced or eliminated simply because producibility has been considered. Contrarily, the concepts of incremental design, detailed design processes, and an understanding of stakeholder needs all underscore the importance of rigorous testing, iterating, and refinement in order to reach high product standards and market success.

Jennifer, Martin, and Edsel form a limited liability company called Big Apple, LLC, to operate a bar in New York City. Jennifer, Martin, and Edsel are member-managers of the LLC. One of Jennifer’s jobs as a member-manager is to drive the LLC’s truck and pick up certain items of supply for the bar each Wednesday. On the way back to the bar on Wednesday after picking up the supplies for that week, Jennifer negligently runs over a pedestrian, Tilly Tourismo, on a street in Times Square. Tilly is severely injured and sues Big Apple, LLC to recover monetary damages for her injuries. Who is liable? Why?

Answers

Answer and explanation:

Big Apple, LLC is liable because in a member-managed LLC each of the members has the same rights and responsibilities with the firm. The accident happened while Jennifer was on duty. Regardless she acted negligently, as part of the LLC, she should not be charged individually but jointly.

Big Apple, LLC could be held liable for Jennifer's actions under vicarious liability as Jennifer was performing her duties at the time of the incident. The corporate shield of an LLC protects individual members from personal liability, but the LLC itself can be held responsible for actions taken by its members within the scope of their business duties.

Liability in Limited Liability Companies:

In the scenario provided, Big Apple, LLC may be held liable for the injuries sustained by Tilly Tourismo due to the negligence of Jennifer, one of its member-managers, while performing her duties for the LLC. This situation is grounded in the legal principle of vicarious liability, where an entity can be held responsible for the actions of its agents or employees conducted within the scope of their employment.

Unlike sole proprietorships or partnerships, where owners could face personal liability for business debts or damages, limited liability companies (LLCs) and corporations offer protection to owners\' personal assets, mitigating personal liability. This is known as the corporate shield. However, corporations and LLCs can still be held accountable for the actions of their agents under the doctrine of respondeat superior.

In conclusion, while Jennifer was acting in the capacity of her duties for the LLC, Big Apple, LLC will likely bear the liability for the accident. However, Jennifer could also face personal liability if it is determined that she acted outside the scope of her employment or if her actions were criminally negligent.

According to the Investment Advisers Act of 1940, which of the following statements is true regarding the information that an SEC-registered adviser is required to deliver or offer to deliver to their advisory clients?a. Written disclosure documents must be delivered or offered to clients annually. b. The adviser must send a copy of all records of account activity over the course of the previous year to each client.

Answers

Option A, Written disclosure documents must be delivered or offered to clients annually.

Explanation:

Investment advisers must submit, or offer to submit, at least annually the written communication document (Brochure) under the Brochure Rule of the Investment Advisers Act of 1940.

For all federally licensed investment advisers the guidelines, known formally as law 204-3, refer and set out the dates during the advising period during which they must supply content.

Choosing the Perfect financial advisory that suits their needs has wouldn't have to be difficult. The free device of Smart Asset matches in five minutes with financial trustees in their area. Every contractor has been named to act in the interests of Smart Asset and is legal.

Links Golf Course is planning for the coming golfing season. Investors would like to earn a​ 10% return on the​ company's $60,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be​ $32,000,000 for the season. About​ 600,000 rounds of golf are expected to be played each year. Variable costs are about​ $15 per round of golf. Links Golf Course is a​ price-taker and will not be able to charge more than its​ competitors, who charge​ $75 per round of golf. Compute the operating profit that will be earned.Select one:A. $6,000,000B. $46,800,000C. $87,800,000D. $5,800,000E. none of the above

Answers

Answer:

Option (E) is correct.

Explanation:

Revenue at the competitor price:

= Rounds of golf are expected to be played each year × Charge per round

= 600,000 × $75 per round

= $45,000,000

variable Cost:

= Rounds of golf are expected to be played each year × Variable cost per round

= (600,000 × $15)

= $9,000,000

Contribution Margin:

= Revenue at the competitor price - variable Cost

= $45,000,000  - $9,000,000

= $36,000,000

Less: Fixed Costs = 32,000,000

Operating profit:

= Contribution Margin - Fixed Costs

= $36,000,000 - $32,000,000

= $4,000,000

So, the operating profit is $4,000,000.

Links Golf Course has a total revenue of $45,000,000 from playing rounds, with total variable costs of $9,000,000, and fixed costs of $32,000,000. The operating profit calculates to $4,000,000, which does not meet the investors' expected 10% return on $60,000,000 of assets. The correct option is E. none of the above.

To calculate the operating profit for Links Golf Course, we need to consider the fixed costs, variable costs, total assets, and the expected return rate. The formula to calculate operating profit is: Operating Profit = Total Revenue - (Fixed Costs + Variable Costs).

First, let's calculate the total revenue. If the golf course charges $75 per round and expects to see 600,000 rounds played, the total revenue would be:

Total Revenue = Price per Round × Number of Rounds = $75 × 600,000 = $45,000,000

Next, we calculate the total variable costs:

Total Variable Costs = Variable Cost per Round × Number of Rounds = $15 × 600,000 = $9,000,000

Now we can calculate the operating profit:

Operating Profit = $45,000,000 - ($32,000,000 + $9,000,000) = $45,000,000 - $41,000,000 = $4,000,000

However, since the investors expect a 10% return on $60,000,000 of assets, which is $6,000,000, the operating profit does not meet their expected return. Therefore, the answer closest to our calculation is E. none of the above.

Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders.

Both types of distributors purchase the same product.

The customer activities and costs for the previous quarter are as follows:Activity JIT distributors Non-JIT distributorsSales Orders 500 30Sales Calls 30 30Service Calls 200 90Average Order Size 90 1,400Manufacturing Cost/Unit $50 $50Customer Costs:Processing Sales Orders $160,000Selling Goods $155,000Servicing Goods $195,000Total $500,000Calculate the activity rate for servicing goods. (Note: Round answer to two decimal places.)
a. $1,000.54 per service callb. $680.50 per service callc. $750.10 per service calld. $672.41 per service calle. $1,089.25 per service call

Answers

Answer:

d. $672.41 per service call

Explanation:

The computation of the activity rate for servicing goods is shown below:

= (Total servicing good cost) ÷ (Total service calls)

= $195,000 ÷ 290

= $672.41 per service call

The total service call would be

= JIT distributors + Non-JIT distributors

= 200 + 90

= 290

All other information which is given is not relevant. Hence, ignored it

Select which option best completes the following statement: In pure Scrum, the team reports to the____________.Select one:

a. Scrum Master
b. No One
c. Project Manager
d. Product Owner

Answers

Answer:

The correct answer is B

Explanation:

Scrum is the process or procedure framework, in which the complex knowledge work is managed with the primary focus on the development of the software, though it is used in other fields and slowly started to explore for complex or difficult work, advanced technologies and research.

In the process of pure scrum, the tea, would not report to any person or team as the testers, designers and the developers likely to share the roles with each other.

Final answer:

The team in pure Scrum reports to no one since teams are self-organising, with the Scrum Master facilitating the process and the Product Owner managing the product backlog.

Explanation:

The correct answer to the question is: In pure Scrum, the team reports to no one. This is because in Scrum, traditionally there is no role of a project manager and the teams are considered to be self-organising. The Scrum process emphasizes cross-functionality and collaboration within the team, where decision-making is a shared responsibility. The Scrum Master facilitates the process and addresses impediments but does not act as a manager to whom the team reports. Conversely, the Product Owner is responsible for managing the product backlog and ensuring that the product delivers value, but again, the team does not report to them in the traditional sense.

The market value of the equity of Hudgins, Inc., is $645,000. The balance sheet shows $53,000 in cash and $215,000 in debt, while the income statement has EBIT of $91,000 and a total of $157,000 in depreciation and amortization. What is the enterprise value-EBITDA multiple for this company?

Answers

Answer:

The enterprise value- EBITDA multiple for this company is 3.25

Explanation:

IN order to find the Enterprise value-EBITDA multiple we will have to find the enterprise value of the company and the EBITDA of the company and then divide the enterprise value by the EBITDA.

In order to find the enterprise value we will have to use the following formula

Enterprise Value = Market Capitalization + Total Debt - Cash and equivalents

The Market Cap of the company is $645,000, the cash is $53,000 and the debt is $215,000, we will put these values in the formula.

EV= 645,000+215,000-53.000=807,000

Now we have to find the EBITDA of the company. EBITDA stands for earnings before interest, tax, depreciation and amortization. We already know the EBIT which is $91,000, in order to find the EBITDA we will add the depreciation and amortization to the EBIT.

91,000+157,000=248,000

Now in order to find the multiple we will divide EV by EBITDA

807,000/248,000=3.25

Final answer:

The enterprise value-EBITDA multiple for Hudgins, Inc. is 3.26.

Explanation:

To calculate the enterprise value-EBITDA multiple, we need to find the enterprise value and the EBITDA. Enterprise value is the market value of equity plus debt minus cash. In this case, the enterprise value is $645,000 + $215,000 - $53,000 = $807,000. EBITDA is equal to EBIT plus depreciation and amortization, which is $91,000 + $157,000 = $248,000. Finally, to find the enterprise value-EBITDA multiple, we divide the enterprise value by EBITDA:

Enterprise value-EBITDA multiple = Enterprise Value / EBITDA = $807,000 / $248,000 = 3.26

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On December 31, 2008, Pico acquired $250,000 par value of the outstanding $1,000,000 bonds of its subsidiary, Sico, in the market for $200,000. On that date, Sico had a $100,000 premium on its total bond liability.Which one of the following is the net amount of gain or loss that will be recognized by Pico in its December 31, 2008, consolidated financial statements as a result of its intercompany bonds?A. $25,000B. $50,000C. $75,000D. $150,000

Answers

Answer:

C. $75000

Explanation:

Upon consolidation of financial statements all inter-related/company sales/provision for unrealized profits (PUPs) need to be eliminated in full. In this case, there are two important things to focus on,

FIRST, the bonds have been issued at a discount  and

SECOND, there is a total $100,000 premium on the bond liability, but because only 25% ($250,000/$1,000,000× 100 = 25%) of the bonds are inter-company, only 25% of the premium is eliminated. Thus, $25,000 of premium and the $50000 of discount totaling $75000 achieved is the total net amount of gain that PICO will recognize in its December 31, 2018 consolidated financial statements.

My brother-in-law worked as a full-time school teacher in San Diego for 35 years. When he completed his 35 years of service, he retired and now receives -- based on his salary and years of service -- $6,000 per month for the rest of his life. This type of employer-sponsored retirement plan is best described with which of the following phrases:

(A) Fixed compensation
(B) Defined benefit
(C) Perpetual benefit
(D) Contingent benefit
(E) Defined contribution

Answers

Answer: (B) Defined benefit

Explanation:

Defined benefit is referred to as the type of the pension plan under which the employer tends to agrees to pay the particular pension amount after the retirement. The amount of the pension is thus driven by the annual earnings of the individuals i.e. the employee during their period of working. This is also referred to as the no. of years they have served the office.

The retirement plan described is a defined benefit plan, where the retiree receives a fixed amount per month based on salary and years of service.The correct answer is option-E.

The employer-sponsored retirement plan described in the question is best described as a defined benefit plan. In a defined benefit plan, the retirement benefits are based on a formula that takes into account the employee's salary and years of service. The retiree receives a fixed amount per month for the rest of their life, regardless of the investment performance of the plan.

Therefore, the correct answer is option-E.

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Last year, Wesson Company sold 10,000 units of its only product. If sales increase by 12% in the current year, how will unit variable cost and unit fixed cost be affected? Unit Variable Cost Unit Fixed Cost

A) Remains constant Remains constant
B) Increases Decreases
C) Decreases Remains constant
D) Remains constant Decreases
E) Remains constant Increases

Select one:
a. Choice A
b. Choice B
c. Choice C
d. Choice D
e. Choice E

Answers

Answer:

Correct answer is D, Unit variable cost remains and unit fixed cost decrease

Explanation:

The relationship between sales volume and unit fixed cost is inverse. Which means, the larger the volume increase of sales, the smaller the unit cost fixed cost in the period. No matter how much is the increase in sales, the total fixed cost REMAINS, that is why it affects only on per unit cost. VARIABLE UNIT COST on the other hand, is constant and will never be affected on the increase in sales volume. The relationship between total variable cost and sales is directly proportional.

The ________ identifies the income at which half of the population earns more and half of the population earns less.Choose one answer.a. mean household incomeb. poverty levelc. median household incomed. Gini coefficient

Answers

Answer:

c. median household income

Explanation:

Median household income is the amount that divides the distribution of income into two equal groups: half has income above this amount, and the other half has income below this amount.

Mean household(average) income (average) is the amount obtained by dividing the total aggregate income of the group by the number of units in this group.

The poverty level is the minimum amount of income required to live at an adequate standard of living. Almost all countries have poor citizens. The poverty line constitutes an economic tool used to make decisions about the situations of these individuals or to work on issues related to poverty prevention.

The Gini coefficient measures the inequality amount values of a frequency distribution (for example, income levels). The Gini coefficient is a factor for measuring whether the distribution of national income is equal in a country. The coefficient takes values between 0 and 1, and higher values correspond to greater inequality. For example, in a society where everyone has the same income, the Gini coefficient is 0, whereas a society where all income is collected in one person (more than one member) is 1. The Gini coefficient is found by dividing the area above the Lorenz curve by the entire area below the 45-degree equality line. While the Gini coefficient can be used to investigate inequality in disciplinary institutions, it is also used in various fields such as sociology, economics, ecology, engineering, agriculture.

Under sec rules establashed by nsmia, an individual that files a registration application will be denied if the applicant has:

Answers

Answer:

The correct answer is:  served one (1) year or more in jail.

Explanation:

The National Securities Markets Improvement Act (NSMIA) is a U.S. securities regulation law. It aims to give more regulatory power to the federal government. Under this law, people who would like to apply to become securities brokers must not have a prison history as inmates for more than one (1) year. Otherwise, their application will be denied.

You’ve dreaded it for a while, but now you feel prepared. In 30 minutes you’ll have to terminate Tim, a 12-year employee who is beloved by everyone in the firm. Unfortunately, he just hasn’t performed very well since his wife died three years ago and while he was given every chance to regain his performance, he has just continued to slide. Which of the following elements of communication is MOST likely to influence Tim’s perception of your communication effectiveness?

A)Tone

B)Pace

C)Indirect Non-verbals

D)Formailty

Answers

Answer:  Tone of communication        

Explanation: Voice tone is really about the feeling behind what you mean. There's no shift in your voice, but the way you speak to someone. If you're angry, you might be brusque; if you're pleased, you might be delighted with your expression.

In simple words, tone depicts the attitude of the employees while making a statement to their audience. It shows the maturity level of the dictator and shows how he or she handles the situation.

Hence from the above we can conclude that tone would be the most important element in the given case as the audience of that message can get emotionally affected from that information.

How much life insurance would a person buy if he wants to leave enough money to ensure that their family will receive $40,000 dollars in interest, of constant year 0 value dollars? The interest rate expected from banks is 7.5 percent and the inflation rate is expected to be 3 percent per year.

Answers

Answer:

amount of insurance required = $888888.889

Explanation:

given data

cash flow = $40000

expected return = 7.5%

inflation rate = 3%

to find out

amount of insurance required

solution

we get here amount of insurance required that is equal to present value of perpetuity ..................1

so it will be

amount of insurance required = Cash flow ÷ (expected return - inflation rate)   ....................2

put here value we get

amount of insurance required = [tex]\frac{40000}{0.075-0.03}[/tex]

amount of insurance required = $888888.889

Selling insurance without a license without misappropriating premium funds is a ________.

Answers

Answer:

Selling insurance without a license without misappropriating premium funds is  a class 4 felony.

Explanation:

The sale of insurance without a license without misappropriating funds is a class 4 felony that attracts a fine up $5,000 and 5 years imprisonment. This is in accordance with Illinois Laws Regulations.                                                                                                                                                                                                                                                                                                                                                                                                                                      

During the period 2006 through 2010, housing production in the United States fell from a rate of over 2.27 million housing starts per year to a rate of under 500,000, a decrease of over 80 percent. At the same time, the number of new households slowed to a trickle. Students without a job moved in with their parents, fewer immigrants came to the United States, and more of those already here went home. If there are fewer households, it is a decline in demand. If fewer new units are built, it is a decline in supply. Assume that the quantity supplied and quantity demanded are equal at 50,000 units and at a price of $200,000. 300,000 250,000 200,000 150,000 100,000 1.) Using the line drawing tool, draw and label a standard supply and demand diagram which shows the demand for new housing units that are purchased in the market each month, and the supply of new units built and put on the market each month. 2.) Using the line drawing tool, draw and label a line to show a decline in demand on the same diagram

Answers

Final answer:

A standard supply and demand diagram can be used to show the decline in the housing market from 2006 to 2010. The decline in demand is represented by a leftward shift of the demand curve, leading to a new, lower equilibrium point for price and quantity of units.

Explanation:

The given question is related to Economics, specifically the concepts of supply and demand in the housing market. You start by sketching a standard supply and demand graph with price on the y-axis and quantity on the x-axis. Initially, the demand and supply curves intersect at 50,000 units and a price of $200,000 – label this as point 'A'.

To show a decline in demand, you would draw and label a new demand curve that shifts to the left of the original demand curve. This represents a decrease in the number of households that require housing each month. The point at which this new demand curve intersects with the original supply curve is the new equilibrium point – label this as 'B'.

This diagram visually illustrates the impact of a reduction in demand on housing units over the period of 2006 to 2010, showing how it leads to a decrease in both the quantity of units supplied and their market price.

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Which one of the following is not an advantage of "early and continuous delivery of valuable software?a. Working software is a good measure of progress. b. Allows for customer to see software early and provide feedback. c. % Complete is an effective and accurate measure of project completion in large projects. d. Failing early is better than failing late.

Answers

Answer:

The correct answer is C

Explanation:

Continuous delivery as well early means that the company is very effective in performing or delivering their projects. In short, means that they ensures that the software or project to be released reliably at any time. And is in state where they could build a good reputation in the market.

Advantage or benefit of the early as well as continuous delivery of the software states the accurate as well as effective measure of the completion of the project.

Final answer:

The statement '% Complete is an effective and accurate measure of project completion in large projects' is not an advantage of early and continuous delivery of software. Agile principles value working software over percentage metrics for project completion.

Explanation:Advantages of Early and Continuous Delivery

The concept in question refers to the principles of agile software development, where the early and continuous delivery of valuable software is advocated. This approach offers several advantages:

Working software as the primary measure of progress.It allows for the customer to see the software early and provide feedback.Failing early is better than failing late, as it provides a chance to make corrections sooner.

The option that is not an advantage is 'c. % Complete is an effective and accurate measure of project completion in large projects.' This statement does not align with the principles of agile software development because percentage complete is not an effective measure compared to working functionality, especially in large projects where complexities make this metric less reliable.

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