Final answer:
In business law, a party concerned about another's contract performance can request assurance in writing. Under the UCC Section 2-609, the party must provide assurance within 30 days, or the concerned party may treat the failure as an anticipatory breach of contract.
Explanation:
The scenario described involves contractual obligations and the need for assurance of performance. Legally, when one party to a contract expresses concern about the other party's ability to perform, they can request a written assurance of performance. Although the specifics can vary based on jurisdiction and the terms of the contract itself, the Uniform Commercial Code (UCC), which is often adopted in the United States, generally provides a guideline for such situations. Under UCC Section 2-609, when reasonable grounds for insecurity arise with respect to the performance of either party, the other may in writing demand adequate assurance of due performance and until he receives such assurance may if commercially reasonable suspend any performance for which he has not already received the agreed return. The party receiving the demand must provide assurance within a reasonable time, which is considered to be not to exceed 30 days. If assurance is not provided within this timeframe, the party demanding assurance may treat the failure as an anticipatory breach of contract.
Oriole Corp. is a fast-growing company whose management expects it to grow at a rate of 24 percent over the next two years and then to slow to a growth rate of 18 percent for the following three years. If the last dividend paid by the company was $2.15.
1.What is the dividend for the 1st year?
2.What is the dividend for the 2nd year?
3.What is the dividend for the 3rd year?
4.What is the dividend for the 4th year?
5.What is the dividend for the 5th year?
6.Compute the present value of these dividends if the required rate of return is 14 percent.
Answer:
1.What is the dividend for the 1st year?
$2.67
2.What is the dividend for the 2nd year?
$3.31
3.What is the dividend for the 3rd year?
$3.90
4.What is the dividend for the 4th year?
$4.60
5.What is the dividend for the 5th year?
$5.43
6.Compute the present value of these dividends if the required rate of return is 14 percent.
1. $2.34
2. $2.54
3. $2.63
4. $2.73
5. $2.82
Explanation:
Last Dividend paid = $2.15
Growth rate:
First two years = 24%
Following three years = 18%
FV of Dividend = PV ( 1 + g )^n
1.
Dividend for the 1st year = $2.15 x ( 1 + 24% )^1 = $2.15 x ( 1 + 0.24 )^1 = $2.15 x ( 1.24 )^1 = $2.67
2.
Dividend for the 2nd year = $2.15 x ( 1 + 24% )^2 = $2.15 x ( 1 + 0.24 )^2 = $2.15 x ( 1.24 )^2 = $3.31
3.
Dividend for the 3rd year = $3.31 x ( 1 + 18% )^1 = $3.31 x ( 1 + 0.18 )^1 = $3.31 x ( 1.18 )^1 = $3.90
4.
Dividend for the 4th year = $3.31 x ( 1 + 18% )^2 = $3.31 x ( 1 + 0.18 )^2 = $3.31 x ( 1.18 )^2 = $4.60
5.
Dividend for the 5th year = $3.31 x ( 1 + 18% )^3 = $3.31 x ( 1 + 0.18 )^3 = $3.31 x ( 1.18 )^3 = $5.43
6.The present value of these dividends
Present value of dividends can be calculated by following formula:
PV = FV / ( 1 + r )^n
FV = Dividend for the year
r = rate of return = 14%
n = number of years
1. PV = $2.98 / ( 1 + 0.14 )^1 = $2.98 / ( 1.14 )^1 = $2.98 / 1.14 = $2.34
2. PV = $3.31 / ( 1 + 0.14 )^2 = $3.31 / ( 1.14 )^2 = $3.31 / 1.2996 = $2.54
3. PV = $3.90 / ( 1 + 0.14 )^3 = $3.90 / ( 1.14 )^3 = $3.90 / 1.481544 = $2.63
4. PV = $4.60 / ( 1 + 0.14 )^4 = $4.60 / ( 1.14 )^4 = $4.60 / 1.68896 = $2.73
5. PV = $5.43 / ( 1 + 0.14 )^5 = $5.43 / ( 1.14 )^5 = $5.43 / 1.925416 = $2.82
Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earnings of $961,000. Without new projects, both firms will continue to generate earnings of $961,000 in perpetuity. Assume that all earnings are paid as dividends and that both firms require a return of 14 percent. (Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16))
a. What is the current PE ratio for each company?
Price / Earnings ________________________ times
b. Pacific Energy Company has a new project that will generate additional earnings of $111,000 each year in perpetuity. Calculate the new PE ratio of the company.
Price / Earnings ________________________ times
c. U.S. Bluechips has a new project that will increase earnings by $211,000 in perpetuity. Calculate the new PE ratio of the firm.
Price / Earnings ________________________ times
Answer:
a.
Price / Earnings 7.04 times
b.
Price / Earnings 7.14 times
c.
Price / Earnings 7.14 times
Explanation:
a.
Earning = $961,000
Rate of return = 14%
PV of Perpetuity = Cash flow / rate of return
PV of Perpetuity = $961,000 / 0.14 = $6,864,286
As we know that Price is the Present value of future cash flows which is perpetuity of $6,764,286.
Price Earning Ratio = $6,764,286/ $961,000 = 7.04 times
b.
Earning = $961,000 + $111,000 = $1,072,000
Rate of return = 14%
PV of Perpetuity = Cash flow / rate of return
PV of Perpetuity = $1,072,000 / 0.14 = $7,657,143
As we know that Price is the Present value of future cash flows which is perpetuity of $7,657,143.
Price Earning Ratio = $7,657,143/ $1,072,000 = 7.14 times
c.
Earning = $961,000 + $211,000 = $1,172,000
Rate of return = 14%
PV of Perpetuity = Cash flow / rate of return
PV of Perpetuity = $1,172,000 / 0.14 = $8,371,429
As we know that Price is the Present value of future cash flows which is perpetuity of $6,764,286.
Price Earning Ratio = $8,371,429 / $1,172,000 = 7.14 times
When the price of Nike tennis shoes goes from $100 to $80, the quantity demanded increases from 20 to 30 million. Over this price range, the absolute value of the price elasticity of demand is a. 1. b. 1.80. c. 2.50. d. 0.55. e. 1.25
Answer:
c. 2.50.
Explanation:
Elasticity of demand is defined as the degree of responsiveness of quantity demanded to changes in the price of a commodity. It is calculated as percentage change in quantity demanded divided by percentage change in price.
Elasticity is considered elastic if the value is above one, and is means an increase in price results in significant decrease in demand.
When elasticity is less than 1 it is said to be inelastic and increase in price does not result in significant change in demand.
Percentage change in quantity= (30millon- 20 million)/20 million= 0.5
Percentage change in price= (100-80)/100
Percentage change in price= 20/100= 0.2
Elasticity= 0.5/0.2= 2.5
To calculate the price elasticity of demand for Nike tennis shoes when the price goes from $100 to $80 and quantity demanded increases from 20 to 30 million, the elasticity is calculated as 1.80.
Explanation:Price elasticity of demand measures how the quantity demanded of a good changes with a change in its price. To calculate it, you can use the formula: percentage change in quantity demanded divided by the percentage change in price. In the given scenario of Nike tennis shoes, the price elasticity of demand is 1.25, which represents a relatively elastic demand.
To calculate the price elasticity of demand, we need to determine the percentage changes in both price and quantity demanded. The original price decreases from $100 to $80, which is a $20 decrease on a base of $90 (the average of $100 and $80), leading to a -22.22% change in price. The quantity demanded increases from 20 million to 30 million, which is an increase of 10 million on a base of 25 million (the average of 20 million and 30 million), resulting in a 40% change in quantity demanded. The formula for price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price, which gives us -40% / -22.22% = 1.80.
If Olaf earns $100,000 and pays $20,000 in taxes and George earns $200,000 and pays $48,000 in taxes, what type of tax system does this situation represent?
This situation represents progressive type of tax system.
Explanation:
A progressive tax is laid on the people based on their ability to pay. A lower tax rate is charged for the individual with low income compared to the person with higher income. The tax rate is fixed based on the income of the person. The high income earners are charged tax with higher percentage.
In the above scenario, the income of Olaf is $100,000. So he pays $20,000 as tax. George earns $200,000, so he pays $48,000 as tax. George pays tax higher than Olaf, as he earns higher than Olaf.
Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2012. The bonds had been issued with $80,000 of original issue discount (OID), because Peach was in financial difficulty in 2012. On December 3, 2013, Benny sold the bonds for $283,000 after amortizing $1,000 of the original issue discount.
What are the nature and amount of Benny's gain or loss?
Benny has $ of Selectlong-term capital lossordinary lossshort-term capital lossItem 2 from the sale of the bonds.
Answer:
Amount $38000 of long-term capital loss
Explanation:
given data
purchased = $400,000
face value bonds = $320,000
sold the bonds = $283,000
original issue discount = $1,000
solution
we get here amount of Benny's that is express as
amount of Benny's = face value bonds - sold the bonds + original issue discount .................1
put here value
amount of Benny's =$320,000-$283,000 + $1000
amount of Benny's = $38000
so here amount $38000 of long-term capital loss
A BBB-rated corporate bond has a yield to maturity of 7.7 %. A U.S. treasury security has a yield to maturity of 6.3 %. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 7.3 % and have five years to maturity. a. What is the price (expressed as a percentage of the face value) of the treasury bond? b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? c. What is the credit spread on the BBB bonds?
Answer:
The price as a percentage of the treasury stock is 104.23%
The price as a percentage of the BBB-rated corporate bond is 98.37%
The credit spread on the bond is 1.40%
Find detailed computations in the attached.
Explanation:
The credit spread on BBB-rated corporate bond is the difference between its effective interest rate and the interest rate on the U.S government treasury security,that is:
7.7%-6.3%=1.40%
Note that the par value of a bond is usually $1000.
LaCrosse Products has a budget of $900,000 in 2015 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $80,000 in variable costs. The new method will require $40,000 in training costs and $100,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 150,000 units.Appraisal costs for the year are budgeted at $600,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 3% of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company's average external failures average 3% of units sold. The new proposal will reduce this rate by 50%. Assume all units produced are sold and there are no ending inventories.4) What is the net change in the budget for prevention costs if the procedures are automated in 2015? Will management agree with the changes?A) $60,000 decrease, yesB) $60,000 increase, yesC) $140,000 increase, noD) $80,000 decrease, yes
Answer:
Option (B) is correct.
Explanation:
Total costs:
= Training costs + Annual Equipment costs
= $40,000 + $100,000
= $140,000
Net increase in prevention costs:
= Total costs - Amount save in Variable costs
= $140,000 - $80,000
= $60,000
Therefore, the net increase in the budget for prevention costs if the procedures are automated in 2015 is $60,000.
Yes, the management agree with the changes.
When preparing to work on a project, teams should name a meeting leader to plan and conduct meetings, a recorder to keep a record of group decisions, and an evaluator to determine whether the group is on target and meeting its goals.
True or False?
Answer:
The statement is: True.
Explanation:
Teams tend to have more effective results when they select a leader, recorder, and evaluator. Those characters will play an important role to control and measure the team's performance that will lead them to achieve their objectives. The leader should guide the team whenever the members gather, the recorder registers the most relevant information of every meeting, and the evaluator measures the advance of the project with the help of the leader.
The Boston House increases its dividend each year. The next annual dividend is expected to be $2.25 a share. Future dividends will increase by 5.0 percent annually. What is the current value of this stock if the discount rate is 13 percent?
Answer:
Current value of stock = $28.125
Explanation:
Given:
Annual dividend = $2.25
Growth rate = 5% = 5 / 100 = 0.05
Discount rate = 13% = 13 / 100 = 0.13
Current value of stock = ?
Computation of current value of stock:
Current value of stock = Annual dividend / (Discount rate - Growth rate)
Current value of stock = $2.25 / (0.13 - 0.05)
Current value of stock = $2.25 / (0.08)
Current value of stock = $28.125
4.37.-On January 1st, Frank bought a used car for $72,000 and agreed to pay it as follows: ¼ down payment; the balance to be paid in 36 equal monthly payments; the first payment due February 1; an annual interest rate of 9%, compounded monthly.
Answer:
$1,664.099
Explanation:
The amount that should be recognised by the Frank in respect of monthly payments to be made in respect of used car shall be determined using present value of annuity formula as follows:
Total amount to be paid= $72,000*3/4=$54,000
Total amount to be paid=Present value of annuity=R+R[(1-(1+i)^-n)/i]
Where
R=Equal monthly payment to be made=?
i=Interest rate compounded monthly=9/12=0.75%
n=number of payments involved=36
Present value of annuity= $54,000
$54,000=R+R[(1-(1+0.75%)^-36)/0.75%]
$54,000=R+R(31.45)
$54,000=R*32.45
R=$1,664.099=equal monthly payment
The average cell phone bill is $78 with a standard deviation of $10. What is the minimum percentage of cell phone bills that will be between $54 and $102.
Answer:
The answer is 100%
Explanation:
we are given the mean which is $78 which is the average value of the data therefore this tells us most values are collectively around this bill and we also know the standard deviation of the cellphone bill which is $10 now we check the possibilities of x which is the cellphone bill being around these values so if x>$78+$10 , where x>$88 as we know the standard deviation is the measure of dispersion of data from the mean then we will see if x<$68 also then we'll find the probability where $68>x>$88 therefore if we sum these whole probabilities they will give us 1 which means it is certain but not impossible to find values that are $102>x>$54 which we see by the above numbers that approximately 1 is the probability which is 100%.
At least 95% of cell phone bills will be between $54 and $102, as this range is more than two standard deviations but less than three standard deviations from the mean, in accordance with the empirical rule.
To determine the minimum percentage of cell phone bills that will be between $54 and $102, we can apply the empirical rule (also known as the 68-95-99.7 rule). This is a statistical rule which states that for a normal distribution, nearly all of the data will fall within three standard deviations of the mean.
The average cell phone bill is $78 with a standard deviation of $10. So, one standard deviation from the mean is $68 to $88, two standard deviations is $58 to $98, and three standard deviations is $48 to $108.
Since $54 to $102 encompasses more than two but less than three standard deviations from the mean, we can say that at least 95% but less than 99.7% of cell phone bills will fall in this range. Therefore, the minimum percentage of cell phone bills between $54 and $102 would be 95%.
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the _______ using _______ by the _______ using _______ and multiplying by 100. However, the CPI reflects only the prices of all goods and services _______.
Answer:
Explanation:
The GDP deflator for this year is calculated by dividing the value of all goods and services produced in the economy this year using this year's price by the value of all goods and services in the economy this year using base price year's and multiplying by 100. However, the CPI reflects only the prices of all goods and services bought by the consumers.
The price of a bond is equivalent to: I. Face value II. Projected interest payments discounted to the present III. The amortization amount of a bond IV. The present value of the principal payment Select one: A. I + III B. I – III C. II + IV D. I + II
Answer:
The price of a bond is equivalent to II + IV (option C).
Explanation:
The promise made between two or more persons legally is referred to as a bond. Bonds are provided by companies in order to increase their capital balance. Interest is received during regular intervals by the purchaser.
The price of a bond is equal to the present value of all future interest payments added to the present value of the principal.
The price of the bond is not equal to face value; neither is
the amortisation amount of bond equivalent to the price of the bond.
Therefore, price of the bonds and amortisation amount of bond is not equivalent to the price of the bond.
So, The price of a bond is equivalent to II + IV (option C).
The price of a bond is equivalent to Projected interest payments discounted to the present and The present value of the principal payment.
A bond is simply known as a type of loan contract that exist between an issuer, the seller of the bond and a holder which is the purchaser of a bond.The present value (PV) of a bond shows the sum of all the future cash flow from that contract until it matures with full repayment of the par value. .
Conclusively, To determine the present value of bond, is by the value of a bond today for a fixed principal (par value) to be repaid in the future at any predetermined time.
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On the island of Mabera, the local money is called "favoli." The price of every good in Mabera is expressed as the number of favolis needed to buy the good. The use of favolis to express the price of goods describes which function of money?
Answer:
The correct option is Unit of account
Explanation:
One of the functions of money is Unit of accounts in economics. The worth of an object is measured in a distinct currency. One of the downfalls of unit of account is that it is regarded as the steady unit of account but inflation factor devastate the said assumption that money is steady. It is regarded as the basic property of the money.
Thus, the correct option will be Unit Of Account.
Medium of exchange
Explanation:
Favoli works as “medium of exchange” on the island of Mabera.
Explanation- “Medium of Exchange” refers to the property of money by which it increases the interaction between the buyer and a seller. On the island of Mabera, every commodities price is expressed in the count of Favoli. There-by it means Favoli forms a medium of common exchange where any commodity can be converted into equivalent units of Favoli and vice-versa.
This is the most common use of money and it can be seen as the evolution over the traditional barter system which suffers from the “lack of wants”.
In June 1985, Joseph Marcantuone and Robert Gieson purchased property located in East Orange, New Jersey. At the time of purchase, the property was partly occupied and leased to Carriage Trade Cleaners, a dry cleaning establishment. A number of dry cleaners continuously operated on this site since 1930. Marcantuone and Gieson owned and operated a grocery store on another section of the property. They have never personally owned or operated a dry cleaning establishment on the property. JRM, LLC, and Sang Hak Shin were tenants on the property and the last operators of the dry cleaning establishment that utilized the hazardous substance tetrachloroethylene, or perchloroethylene (PCE), during the time Marcantuone and Gieson owned the property. The city of East Orange acquired the property through condemnation for the purpose of building a school on the property. But, the PCE was discovered on the property and out of the $629,407 given to Marcantuone and Gieson as compensation for the taking, the city held back $182,035.20 for the cost of the PCE clean-up. It cost the city a total of $212,000 to complete the clean-up of the property. Classify JRM, LLC, and Sang Hak Shin. a. Lessees b. Lenders c. Owners d. Users
Answer:
a. Lessees
Explanation:
JRM, LLC, and Sang Hak Shin are Lessees.
There are two kinds of leases a) Operating and b) Capital.
Operating leases are short term leases in which the lessor (asset owner) retains the risks and rewards of ownership.
Capital leases are long term leases by which the lessor transfers substantially all risks and rewards of ownership to lessee.
The above given example is of an operating lease in which the owners Marcantuone and Gieson were given payment less compensation for the cleanup . In this the risks and rewards were retained by the owner.
An increase in government spending of $200 million financed by a new tax of $200 million in an economy with a marginal propensity to consume of .90 could result in an increase in nominal GDP (assuming a closed economy with no leakages) of up to how much? (a) $0; (b) $2,000 million; (c) $180 million; (d) $200 million.
Answer:
(d) $200 million.
Explanation:
For computing the increase in nominal GDP first we have to determine the net tax which is equal to
= 0.90 ×$200 million
= $180 million
So, the net increase in government spending is
= $200 million - $180 million
= $20 million
And, we know that
Multiplier = 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.9)
= 1 ÷ 0.1
= 10
So, the increase in nominal GDP is
= $20 million × 10
= $200 million
How much will you have at the end of 5 years in a European vacation account if you deposit $200 a month in an account that is paying a nominal 12 percent per year, compounded monthly
Answer:
The final value is $16,333.93
Explanation:
Giving the following information:
You deposit $200 a month for 5 years on an account with an annual interest rate of 12% compounded monthly.
First, we need to calculate the monthly interest rate:
Interest rate= 0.12/12= 0.01
Now, we can calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit= 200
i= 0.01
n= 5*12= 60
FV= {200*[(1.01^60)-1]}/ 0.01= $16,333.93
In the short run, A. at least one of the firm's inputs is fixed, while in the long run, the firm is able to vary all its inputs, adopt new technology, and change the size of its physical plant. B. all of the firm's inputs are fixed, while in the long run, the firm is able to vary all its inputs, adopt new technology, and change the size of its physical plant. C. all of the firm's inputs are variable, while in the long run, the firm is able to vary all its inputs as well as adopt new technology and change the size of its physical plant. D. at least one of the firm's inputs is fixed, while in the long run, the firm is either able to vary all its inputs, adopt new technology, or change the size of its physical plant. E. at least one of the firm's inputs is fixed, while in the long run, at least one of the firm's inputs is variable.
Answer: A
Explanation:
The short run is a notion that within a certain period of time, one or more input is fixed while the remaining inputs are variable. It shows that the way an economy behaves depends on the duration of time it has to acknowledge the changes. There is a key principle regarding the short and long run that states that firms face both variable and fixed costs in the short run while in the long run, all inputs are variable.
In the short run, contracts, leases, and wage agreements hinders the ability of a firm to adjust its production or wages in order to maintain its profit rate. There are no fixed costs in the long run.
You own a bond portfolio worth $28,000. You estimate that your portfolio has an average YTM of 6.9% and a Modified Duration of 7 years. If your portfolio's average YTM were to decrease by two basis points, what would be the approximate new value of your portfolio?
Answer:
[tex]Modified Duration = \frac{Duration}{ / (1 + Yield to Maturity)}[/tex]
[tex]Modified Duration = \frac{7}{(1+0.069)}[/tex]
[tex]Modified Duration = \frac{7}{(1.069)}[/tex]
Modified Duration = 6.55%
It identified that 1% change in Yield to maturity leads to 6.55% change in Price in opposite direction.
0.02% decrease move to increase by 6.55% * 2% = 0.1310%
[tex]New Portfolio Value = Old Value (1+g)[/tex]
[tex]New Portfolio Value = $ 28,000 (1+0.001310)[/tex]
New Portfolio Value = $ 28,000 × 1.001310
New Portfolio Value = $ 28,036.68
If interest rate parity holds and the annual German nominal interest rate is 3 percent and the U.S. annual nominal rate is 5 percent and real interest rates are 2 percent in both countries, then inflation in Germany is about _______________ than in the United States.
Answer: 2% lower
Explanation:
Camilo's property, with an adjusted basis of $302,200, is condemned by the state. Camilo receives property with a fair market value of $347,530 as compensation for the property taken.
a. What is Camilo’s realized and recognized gain?
b. What is the basis of the replacement property
Answer:
a. Realized gain = $45,330
Recognized gain = $0
b. $302,200
Explanation:
a. The realized gain is the increase in Camilo's economic position, that is, the difference between the fair market value of both properties. The recognized gain is the taxable gain, which is zero in this situation, since the new property is a compensation.
[tex]Realized = 347,530-302,200 =\$45,330\\Recognized = \$0[/tex]
b. Since there is no recognized gain, the new property must have the same basis as the previous condemned property, which is $302,200.
West Company estimates that overhead costs for the next year will be $3,600,000 for indirect labor and $820,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 130,000 machine hours are planned for this next year, what is the company's plantwide overhead rate?
Answer:
$ 34
Explanation:
Overhead cost $3,600,000
Factory utilities $820,000
Machine hours $130,000
Overhead cost + Factory utilities/ Machine hours
($3,600,000 + $820,000) = $4,420,000
$4,420,000 /130,000 = $34
direct labor hours per hour= $34
The company overhead rate is $34
AlphaBrona Industries manufactures 50,000 components per year. The manufacturing cost of the components was determined as follows:Direct materials$ 80,000Direct labor100,000 Variable overhead 30,000 Fixed overhead 60,000Total$270,000An outside supplier has offered to sell the component for $10. Fixed costs will remain the same if the component is purchased from an outside supplier.What is the effect on income if AlphaBrona Industries purchases the component from the outside supplier
Answer: -$290,000
Explanation:
The income would reduce by $290,000 if purchased from an outside supplier.
$270,000 is the cost of manufacturing 50,000 components per year.
Should they buy from outside it would cost $10 per component which would come to $500,000.
Fixed costs remain the same so we add that to the cost of purchasing outside.
$500,000 + $60,000 = $560,000
Total cost of purchasing from outside is $560,000.
The difference between the costs is =$560,000 - $270,000
= $290,000
This difference in cost would have to be accounted for from income so if purchased from outside, the income will reduce by $290,000.
College sophomores were given a short course in speed reading. Three groups had courses lasting for 5, 15, or 25 sessions. At the conclusion of the course, participants were asked to read a paragraph, followed by a test of comprehension. Before taking the test, participants in each group were offered a monetary incentive-no money, $1, or $10 for a certain level of performance. The researcher collected the reading time and number of correct items on the comprehension test for each participant
Answer:
Answer explained below
Explanation:
College sophomores were given a short course in speed reading. Three groups had courses lasting for 5, 15, or 25 sessions. At the conclusion of the course, participants were asked to read a paragraph, followed by a test of comprehension. Before taking the test, participants in each group were offered a monetary incentive - no money, $1, or $10 for a certain level of performance. The researcher collected the reading time and number of correct items on the comprehension test for each participant.
1. Identify the design (e.g., 2 X 2 factorial).
Design = 3X3 factorial
2. Identify the total number of conditions.
3³= 27 conditions
3. Identify the manipulated variable(s).
Sessions( 5,15 and 25) and a monetary incentive(no money, $1, or $10)
4. Is this an IV X PV design? If so, identify the participant variable(s).
Yes. Participant variable are reading time
5. Identify the dependent variable(s).
Two dependent variables: reading time and number of correct items
1. The design is a 3X3 factorial design, which has independent and participant variables, showing that the k factors are considered at three levels as low, intermediate and high levels.
2. The total number of conditions of a 3X3 factorial design is 27, calculated as 3³, which = 27 conditions.
3. The manipulated variable(s) are the sessions (5, 15, and 25) and the monetary incentives (no money, $1, or $10).
4. The design is an IV X PV design. It features the independent variables (IV) and the participant variables (PV) The participant variable are identified as the three participant groups.
5. The dependent variables include the reading time and the number of correct items on the comprehension test for participants.
Question Completion:
1. Identify the design (e.g., 2 X 2 factorial).
2. Identify the total number of conditions.
3. Identify the manipulated variable(s).
4. Is this an IV X PV design? If so, identify the participant variable(s).
5. Identify the dependent variable(s).
Thus, a 3X3 factorial design always has k factors, with three levels, considered as low, intermediate and high levels.
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A joint goal is one in which Question 3 options: A) all parties work together to achieve some output that will be shared. B) all parties share the result equally. C) the parties work toward a common end but benefit differently. D) individuals with different personal goals agree to combine them in a collective effort. E) All of the above are characteristics of a common goal.
Answer:
D) individuals with different personal goals agree to combine them in a collective effort.
Explanation:
A joint goal is one where different people come together and pool their resources to achieve a particular goal or objective. The collective effort is mutually beneficial to parties involved.
The advantage of working in groups toward a joint goal is that differing expertise is introduced and this makes the goal more achievable than when individuals attempt it alone.
This leads to formation of a team.
A joint goal is an objective shared by multiple parties who may work together and compromise to achieve shared outcomes. The shared outcomes might benefit participants differently, and parties may have to navigate collective dilemmas and variations in personal motivations.
Explanation:A joint goal refers to an objective that multiple parties work towards, often within a group or organization. When discussing the characteristics of a joint goal, option E) 'All of the above are characteristics of a common goal' seems to be the most comprehensive answer. However, the provided reference information does not allow for a clear-cut answer as it suggests that situations can range widely - from participants having a general agreement on goals but differing on details to participants having motivations contrary to group goals, which can create collective dilemmas.
In practical applications, such as international policy on climate change or industry-wide corporate associations, a joint goal often includes elements where parties work together towards a goal, may benefit differently, and sometimes have to compromise to reach mutual objectives. Participants in a joint goal may share in the outcomes, but not necessarily equally, as their contributions and stakes might differ.
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A company began the year with $500 in raw materials and purchased $10,250 more during the year. If the company has $725 in raw materials at the end of the year, then they would report direct materials used of
Answer:
$10,025
Explanation:
The change in raw material account balance at the start of a period and at the end of the period is as a result of 2 factor namely; use and purchases.
While use will result in a decrease in the account balance, purchases will cause an increase. This may be expressed mathematically as
Opening balance + purchases - use = closing balance
$500 + $10,250 - G = $725
where G represents the cost of the materials used during the period
G = $500 + $10,250 - $725
= $10,025
Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 42%. The T-bill rate is 6%. Your client chooses to invest 85% of a portfolio in your fund and 15% in a T-bill money market fund.
a. What is the expected return and standard deviation of your client's portfolio? (Round your answers to 2 decimal places.)
b. Suppose your risky portfolio includes the following investments in the given proportions:
Stock A 26%
Stock B 35%
Stock C 39%
What are the investment proportions of your client
Answer:
a. Expected Return = 16.20 %
Standard Deviation = 35.70%
b. Stock A = 22.10%
Stock B = 29.75%
Stock C = 33.15%
T-bills = 15%
Explanation:
a. To calculate the expected return of the portfolio, we simply multiply the Expected return of the stock with the weight of the stock in the portfolio.
Thus, the expected return of the client's portfolio is,
w1 * r1 + w2 * r285% * 18% + 15% * 6% = 16.20%The standard deviation of a portfolio with a risky and risk free asset is equal to the standard deviation of the risky asset multiply by its weightage in the portfolio as the risk free asset like T-bill has zero standard deviation.
85% * 42% = 35.70%b. The investment proportions of the client is equal to his investment in T-bills and risky portfolio. If the risky portfolio investment is considered of the set proportion investment in Stock A, B & C then the 85% investment of the client will be divided in the following proportions,
Stock A = 85% * 26% = 22.10%Stock B = 85% * 35% = 29.75%Stock C = 85% * 39% = 33.15%T-bills = 15%These all add up to make 100%Answer:
1a)16.2% 1b)35.7% 2a. 2b. 2c
Explanation:
1a)Expected Return=Prop in risky*exp return+Prop in t-bill*return in t-bill
=(0.85*0.18)+(0.15*0.6)
=0.162/16.2%
1b) prop in Rsky *standard deviation of risky
= 0.85*0.42
=0.357/35.7%
2a. The prop invested in risky is 85% so
=0.85*0.26=0.221/21.2%
=0.85*0.35=0.2975/29.75%
=0.85*0.39=0.3315/33.15%
Assume that an adjusting entry was made on November 30, 2018 for earned, but unpaid employee salaries of $260 which represented 2 days of salaries earned for November 29-30.
On December 5, the employees are paid for five days. Record the journal entry on December 5 assuming that reversing entries ARE NOT used by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
Note: Enter debits before credits.
Date General Journal Debit Credit
12/05 Salaries expense
Salaries payable 260
Final answer:
The journal entry to record the payment of employee salaries on December 5 includes debiting Salaries Expense for the total five-day salary plus the previous unpaid $260, crediting Salaries Payable for $260, and crediting Cash for the remainder of the total five-day salary.
Explanation:
When employees are paid, the company must account for the salaries that were previously earned but not yet paid. Since reversing entries are not used, we only need to recognize the amount of salary expense since the last payroll date. On November 30, an adjusting entry was made for earned, but unpaid employee salaries of $260 for November 29-30. By December 5, the employees have earned five more days of salaries. Assuming a consistent daily pay rate, we calculate the total five-day salary and add it to the $260 of unpaid salaries from the adjusting entry to reach the total salaries expense. The journal entry on December 5 would debit Salaries Expense for the amount of five days of salaries plus the previously earned $260 and credit Salaries Payable for $260 and Cash for the remainder to record the payment.
The journal entry on December 5 would look as follows:
Salaries Expense ................ [Total five-day salary + $260]
Salaries Payable ................ $260
Cash ..................................... [Total five-day salary]
Without the exact daily rate, we cannot provide the precise dollar amounts for the five-day salary and cash credited. However, this structure demonstrates how to account for the payment of salaries accrued at the end of the previous period and the additional salaries earned in the current period.
Charge a $5 penalty if an attempt is made to withdraw more money than available in the account.Here the account string is "S" or "C". "S" is for savings account. "C" is for checking account. For the deposit or withdraw, it indicates which account is affected. For a transfer it indicates the account from which the money is taken; the money is automatically transferred to the other account.
Answer:
C++ code is explained below
Explanation:
class Account {
double balance;
double add(double sum) {
balance += sum;
return sum;
}
double withdraw(double sum) {
if (sum > balance) {
balance -= 5;
return -5; // this will come in handy in Prob. 6
} else {
balance -= sum;
return balance; // Notice: always >= 0 (never < 0)
}
}
double inquire() { return balance; }
Account() { balance = 0; }
Account(double sum) { balance = sum; }
double interest (double rate) {
return rate * balance;
}
}
_______________________________
class Bank {
Account checking;
Account savings;
void deposit(double amount, String account) {
if (account.equals("C")) checking.add(amount);
else // my default
savings.add(amount);
}
void withdraw(double amount, String account) {
if (account.equals("C")) checking.withdraw(amount);
else // my default
savings.withdraw(amount);
}
void transfer (double amount, String account) {
if (account.equals("C"))
if (checking.withdraw(amount) >= 0)
savings.add(amount);
else checking.add(5); // somewhat fault-tolerant
else // default
if (savings.withdraw(amount) >= 0)
checking.add(amount);
else savings.add(5); // no penalty for transfers
}
void printBalances() {
System.out.println(
"Checking: " + checking.inquire() +
"\nSavings: " + savings.inquire()
);
}
}
An assembly drawing: Question 22 options: A) shows an exploded view of the product. B) describes the dimensions and finish of each component. C) shows, in schematic form, how the product is assembled. D) lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material. E) provides detailed instructions on how to perform a given task.
Answer:
A) shows an exploded view of the product.
Explanation:
An assembly drawing is a technical drawing that displays all parts of a product and how they fit together. Multiple drawings from various angles are used to give the user an idea of how the parts for together.
Assembly drawings may also involve instructions, list of component parts, reference numbers, and specification information.
Assembly drawings are presented in two forms: the exploded pictorial view, and the 2-D sectioned view.