Answer:
The price of miller's bond today $1,162.89
The price of Modgliani's bond today $854.66
Explanation:
The approach taken to arrive at the prices was that of discounting the future cash flows in terms of semi-annual coupon interest payment and repayment of principal of the two bonds to today's terms.
In discounting the cash flows I used the pv formula in excel, pv(rate,nper,pmt,-fv)
rate is the semi-annual yield to maturity of 4.5% for Miller and 5.5% for Modgliani
The nper is 15*2( 15 for years, 2 for semi-annual interest payment)
pmt is the semi-annual coupon payable by the bonds,$55 for Miller and $45 for Modliani
The future value is $1000 and it is same for both bonds
Find the calculation in the attached
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 $107,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 3 percent per year forever. the project requires an initial investment of $1,600,000. a-1 what is the npv for the project if yurdone's required return is 12 perce
Answer:
Net Present Value for this project is -411,111.11
Explanation:
Net Present Value is the difference between present values of future cash flows and present value of future cash outflows. Since, the outflows are paid today, we don't need to discount them.
Since we have indefinite period of time and expected net cash inflow of 107,000$ after first year, where it is expected to grow annually at 3%, we can use following formula:
P V = F V / i-g, where g is annual growth rate of future cash inflow. Therefore, we will have P V = 1,188,888. In order to calculate N P V we need to calculate the difference between P V and initial investments. Finally, we get -411,111.11
Calculating the NPV of the Yurdone Corporation's proposed cemetery business using the growing perpetuity formula shows a negative NPV of -$411,111.11, indicating that it may not be a profitable investment at a 12% required return.
The Yurdone Corporation is considering setting up a private cemetery business, expecting a net cash inflow of $107,000 in the first year, with cash flows projected to grow at a rate of 3% annually. The initial investment required is $1,600,000. To calculate the project's Net Present Value (NPV) given a required return of 12%, we use the formula for a growing perpetuity: NPV = (Cash Flow Year 1 / (Required Return - Growth Rate)) - Initial Investment. Thus, NPV = ($107,000 / (0.12 - 0.03)) - $1,600,000 = $107,000 / 0.09 - $1,600,000 = $1,188,888.89 - $1,600,000 = -$411,111.11. Therefore, given a required return of 12%, the NPV for the Yurdone Corporation's cemetery project would be negative, suggesting that this may not be a viable investment under these conditions.
Martha claims that she has been assigned marginal job roles or light workloads that don't lead to promotion. Which of the following terms accurately explains the type of discrimination she has been subjected to?
A) intimidation
B) sexual harassment
C) exclusion
D) inclusion
E) insult
We first knew them as the cute, loving characters on Full House, but today Mary-Kate and Ashley Olsen are not only the characters in their sitcoms and videos, but also a fashion phenomenon. Their Mary-Kate and Ashley clothing line is manufactured and sold exclusively by Wal-Mart. Mary-Kate and Ashley receive royalties from Wal-Mart in exchange for the use of their names. This is an example of which branding concept?
Answer:
Licensing
Explanation
Licensing is a contractual agreement whereby one company (the licensor) allows another company to use its trademark for products and services offered by this company (licensee) for a royalty or fee and here royalty was received for the use of name.
Mary-Kate and Ashley Olsen's clothing line with Wal-Mart is an example of celebrity branding. This is where the well-known name of a celebrity is used to market and sell a product or service, in this case, fashion.
Explanation:The scenario involving Mary-Kate and Ashley Olsen and their clothing line with Wal-Mart is an example of celebrity branding. Celebrity branding is a type of branding where a celebrity uses their well-known name to market, promote, and sell a product or service. In this case, the Olsen twins create fashion and grant Wal-Mart exclusive rights to manufacture and sell the clothing under their well-known name. Celebrity branding can significantly influence the consumer's perception of the product and can increase product credibility, thus making it a powerful tool in the marketing sector.
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Assume that an economy described by the Solow model is in a steady state with output and capital growing at 3 percent, and labor growing at 1 percent. The capital share is 0.3. The growth-accounting equation indicates that the contributions to growth of capital, labor, and total factor productivity are:____________-
A) 0.3 percent, 0.7 percent, and 2 percent, respectively.
B) 0.9 percent, 0.7 percent, and 1.4 percent, respectively.
C) 0 percent, 1 percent, and 2 percent, respectively.
D) 1.8 percent, 0.3 percent, and 0.9 percent, respectively.
Answer:
The growth-accounting equation indicates that the contributions to growth of capital, labor, and total factor productivity are 0.9%, 0.7%, and 1.4%, respectively.
Explanation:
Given
Capital growing = 3%
Labor growing = 1%.
Capital share = 0.3
Assuming the economy is in a steady state;
The growth accounting equation is as follows:
GDP Growth = Capital Growth*(Weight of Capital Contribution) + Labor Growth*(Weight of Labor Contribution) + Technological Progress.
Contribution to Growth of Capital = 3% * 0.3 = 0.9%
Contribution to Growth of Labour = (1 - 0.3)% = 0.7%
Total Factor Productivity = 1 + 0.3 + 0.1 = 1.4%
Answer: B. 0.9 percent, 0.7 percent, and 1.4 percent, respectively
Explanation:
The growth accounting equation measures how changes in the Gross Domestic Product (GDP) are influenced by productivity levels due to changes in available capital, labor, and technology.
Output and capital growth = 3%
Labor growth = 1%
Capital share = 0.3
Contribution to capital = capital growth × capital share = 3% × 0.3 = 0.9
Contribution to labor = 1% - 0.3= 0.7
Contribution to total factor of productivity = 1 + 0.3 + 0.1 = 1.4
The VP of Manufacturing at Roshanak Incorporated wants to buy a new die cast machine for production. The die cast machine is expected to cost around $1,000,000. Which document will most likely be used to solicit bids from suppliers
Answer:
RFP ( Request for proposal)
Explanation:
Request for proposal is considered as a business document and it not only announces but also it provides the details about the project. it also plead bids from the various contractors that will also help in the completion of the project. Many organization and firms always choose to use RFP (Request for proposal). Basically, RFP is used by the law enforcement agencies in order to get the lowest bid.
Total fixed costs for Taylor Incorporated are $ 240 comma 000 . Total costs, including both fixed and variable, are $ 400 comma 000 if 171 comma 000 units are produced. The variable cost per unit is A. $ 3.74 /unit. B. $ 1.40 /unit. C. $ 0.94 /unit. D. $ 2.34/unit.
Answer:
Option (c) is correct.
Explanation:
Given that,
Total fixed costs = $240,000
At the production volume of 171,000 units,
Total cost = $400,000
Total variable cost = Total cost - Total fixed costs
= $400,000 - $240,000
= $160,000
Variable cost per unit:
= Total variable cost ÷ Number of units produced
= $160,000 ÷ 171,000 units
= $0.935 per unit or $0.94 per unit
Ophelia works for Banderos Mexican Grill and is responsible for writing clear communications with employees, as well as for owned, paid, shared, and earned media that reach other publics. This is an example of the ability to write for:________.
This is an example of the ability to write for: Internal and External Publics.
Explanation:
Public relations (PR) presents an important guide for a company and its commodities to assist make assured the organization has the most powerful quality of interactions and concrete public perception. Internal public relations is the conversation that demands the situation within an organization.
Internal PR plays a vital role in the company's achievement. External publics are bodies and organizations that are customers doing business with a firm or company or organization. External Publics focuses on matters concerning the values, strategies, ideas, and perspectives of the company towards different groups of personalities in society.
Suppose the economy is initially in long-run equilibrium then aggregate demand rises. What will happen in the long run?
Answer with Explanation:
Once the aggregate demand rises, this means that the consumers have the capacity or are willing to purchase more of the goods and services. Once this happens for a prolonged period of time, inflation will result. This means that the prices of goods will increase at the same quantity being offered.
The increase in the prices of goods happens because once the demand of the consumer increases, the producers would try their best to meet that demand. This is effective in the short-run. However, it is hard to accommodate such huge demand in the long-run. So, this mean that the producers will have to increase the price level of the goods. This will then lower the aggregate expenditures of the consumers.
So, this explains the answer.
The perceThe percentage change in the price level from one time period to the next, whether the price level is measured in terms of money or as a price index, will be the _____________.ntage change in the price level from one time period to the next, whether the price level is measured in terms of money or as a price index, will be the _____________.inflation rateprice index rateconsumer price indexproducer price Index
Answer:
Consumer Price Index
Explanation:
The percentage change in the price level from one time period to the next, whether the price level is measured in terms of money or as a price index, will be the Consumer Price Index
The Consumer Price Index tracks changes in the cost of living over time
It also measures the change in the retail prices of a broad range of specific goods and services.
The percentage change in price level from one time period to the next is the inflation rate, calculated using a basket of goods and price index numbers, though it is subject to substitution and quality/new goods biases.
Explanation:The percentage change in the price level from one time period to the next, whether the price level is measured in terms of money or as a price index, will be the inflation rate. Economists measure the price level by using a basket of goods and services and calculating how the total cost of buying that basket of goods will increase over time. This cost is often expressed in terms of price index numbers, which transform the cost into a series of numbers in the same proportion to each other, typically basing it on a standard year set to 100. To measure economic inflation, the inflation rate is gauged as the percentage change between these price levels or index numbers from one period to another.
However, two significant problems can affect the accuracy of this measurement: substitution bias, where consumers may change their buying patterns in response to price changes, and quality/new goods bias, where improvements in product quality or new products introduced to the market can affect the price level.
The Jackson Company incorrectly omitted $100,000 of merchandise from its 20X1 ending inventory. In addition, a merchandise purchase of $40,000 was incorrectly recorded as a $4,000 debit to the purchases account. As a result of these errors, 20X1 before-tax income is:___________.1. Overstated by $136,0002. Understated by $136,0003. Overstated by $640004. Undersated by $64000
Answer:
Option "4" is the correct answer to the following statement.
Explanation:
Step 1: Company omitted $100,000 from Stock account, it will Increase Cost of goods sold by $100,000
and also Profit by $100,000
Step 2: Purchase account debited by $4000 Would decrease the Cost of goods sold by ($40,000 - $4,000) $36,000 and decrease Profit by the same amount.
Total understate income = $100,000 - $36,000
= $64,000
Simon Peters, a senior manager at Celise Export Logistics, goes to France to negotiate a deal with the company's French partners. He dresses casually in a t-shirt and jeans. His French counterparts call off the meeting and accuse him of taking a casual attitude toward negotiations. In this scenario, dressing formally during business meetings is probably a cultural _____ for the French
In this scenario, dressing formally during business meetings is probably a cultural imperative for the French
Explanation:
Cultural imperatives are traditions that you have to comply with when you want to succeed.
Relationship building is an example of a cultural imperatives .
Business understands the importance of building a relationship in many Asian countries such as China and Japan and Latin America.
Businessmen are not doing company business, they are doing business with people. It is a cultural necessity to spend time developing this relationship in these countries before you start up your business. Always underestimate your business partners ' value in building trust. It makes or breaks an agreement. Among Asian countries, another moral necessity is to make no one lose face. Never raise your voice or publicly threaten anyone. You will struggle in your company if you are ignorant of these cultural imperatives.
A special-interest issue is one that a. allocates the cost of the activity in accordance with the benefits received. b. benefits a small, well-organized interest group at the expense of taxpayers or consumers. c. benefits everyone and imposes a cost on everyone. d. benefits a small, well-organized interest group but makes that group pay for the cost of the program.
Answer:
The correct answer is b. benefits a small, well-organized interest group at the expense of taxpayers or consumers.
Explanation:
The expression "special interests" is known. It refers to people and groups of them who lobby. This means trying to influence political authority according to their belief agenda.
It is a kind of political activism. A topic that is worth a second opinion.
In short, it is the group of people who try to influence government decisions according to the ideas that this group supports. An essential characteristic of these groups is that they do not try to become a government, but to influence already elected rulers or by being elected.
These groups receive other names, such as lobbyists, lobbying groups, activist groups.
Which of the following is not typical of traditional costing systems? Use of direct labor hours or direct labor cost to assign overhead. Use of multiple cost drivers to allocate overhead. Use of a single predetermined overhead rate. Assumption of correlation between direct labor and incurrence of overhead cost.
Answer:
The correct answer is use of multiple cost drivers to allocate overhead
Explanation:
Use of direct labor hours or direct labor cost to assign overhead to products is typical of traditional costing systems as overhead is believed to have positive relationship with labor-related variables.
Besides,using a business-wide or plant-wide single predetermined overhead rate is not feature of traditional systems of costing.
Since labor-related variables such as direct labor hours or direct labor cost is assumed to be a driver of overhead cost,hence an appropriate overhead absorption basis,it is perfectly understood that there is correlation between direct labor and incurrence of overhead cost in the business.
If a company is eliminating certain models of a product and cutting back on expenditures, the product is most likely in the ________ stage of the product life cycle.
The described scenario indicates that the product is likely in the 'decline' stage of its life cycle. This is a part of a strategy to minimize losses due to a product no longer being profitable or competitive. This stage can also lead to an 'exit' scenario in business.
Explanation:When a company is eliminating certain models of a product and reducing its expenditures, it is most likely that the product is in the decline stage of the product life cycle. This is a stage when a product's sales decline and it may no longer be profitable or competitive in the market. Companies typically reduce production, eliminate certain models, and cut back on expenditures such as marketing and distribution. This is done to minimize losses and to transition resources to newer products or other areas of the business. This stage is part of a long-run process of reducing production in response to a sustained pattern of losses, which in business terms is often called exit.
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An account that will have a zero balance after closing entries have been journalized and posted is
Answer:
An account with a zero balance after closing entries have been journalized and posted is an account in good standing.
Temporary or nominal accounts such as revenue, expense, and dividend accounts are the ones that will have a zero balance after closing entries are completed.
An account that will have a zero balance after closing entries have been journalized and posted typically refers to temporary or nominal accounts in accounting. These accounts include revenue, expense, and drawing accounts for proprietorships and partnerships or dividends for corporations. After closing entries are made, these temporary accounts are reset to a zero balance, transferring their balances to permanent accounts like Retained Earnings or Capital accounts to reflect the revenue, expenses, and distributions for the next accounting period.
The process is a key part of the accounting cycle and ensures that accounts reflect the correct amounts when a new period begins. It is grounded in the double-entry bookkeeping system, where every transaction is entered in at least two accounts, maintaining the balance of the accounting equation which consists of Assets = Liabilities + Owner's Equity.
The Market for Hotel Rooms. Suppose with no tax the equilibrium price is $110 and the equilibrium quantity is 250. If the local government levies a tax of $30 per night on each hotel room rented, the new equilibrium price will equal _____ and the new equilibrium quantity will equal
Answer:
130, 150
Explanation:
Here, in the question the graph is missing. So, in the attachment the graph is attached.
Equilibrium is the state or condition, where there is balance or stable situation, which means that the opposing forces cancel each other force out and no changes or variations happen or occur.
In short, it is defined as the state where the quantity demanded is equal to the quantity supplied, where there is no loss to the business.
From the graph, we could analyze that the new equilibrium price is 130 and at this price, the new equilibrium quantity is 150.