Answer:
a. 9 pairs of jeans per pane of stained glass.
d. 8 pairs of jeans per pane of stained glass.
Explanation:
Greece and Austria both produce jeans and stained glass. Greece opportunity cost is 5 pairs of jeans per stained glass and Austria opportunity cost 10 pairs jeans per stained glass. Greece has comparative advantage in producing stained glass whereas Austria has comparative advantage in producing Jeans.
If these both countries agree to trade with each other, the trade would be beneficial if Greece receives more than 5 pairs of jeans per pane of stained glass. If the trade took place at more than 5 pairs of jeans for per pane of stained glass it will be beneficial for both countries. Option a and option d has more than 5 pairs of jeans. Option b has 3 pairs of jeans so the trade is not beneficial for either countries and option c has 1 pair of jeans per pane of stained glass which also a trade not suitable to both countries.
Greece has a comparative advantage in stained glass production and Austria has a comparative advantage in jeans production. Both countries can gain from trade if the price of stained glass is 3 pairs of jeans per pane.
Explanation:Greece has a comparative advantage in the production of stained glass and Austria has a comparative advantage in the production of jeans. In order for both countries to gain from trade, the price of stained glass in terms of jeans should be between 5 and 10 pairs of jeans per pane of stained glass. Options a, c, and d do not fall within this range. Therefore, the correct answer is option b: 3 pairs of jeans per pane of stained glass.
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The Blue Bonnet's 2010 balance sheet showed net fixed assets of $2.2 million, and the 2011 balance sheet showed net fixed assets of $2.6 million. The company's income statement showed a depreciation expense of $900,000. What was the amount of the net capital spending for 2011?
Answer:
$1,300,000
Explanation:
The movement in a fixed asset account is usually based on; depreciation, additions to asset, disposal, write offs and transfers from Capital work in progress.
Given
Opening fixed asset balance = $2.2 million
Net fixed asset -ending = 2.6 million
Depreciation = $900,000
The net capital spending consisting of disposals and acquisition of assets be x
Then
2,200,000 + x - 900,000 = 2,600,000
x = 900,000 + 2,600,000 - 2,200,000
x = $1,300,000
The amount of the net capital spending for 2011 is $1,300,000.
The long-run aggregate supply curve: Question 15 options: a) is horizontal. b) shows the economy reaching an equilibrium at the natural rate of unemployment. c) shows prices, wages, and interest rates to be inflexible. d) can never shift.
The long-run aggregate supply curve "shows prices, wages, and interest rates to be inflexible".
Answer: Option C
Explanation:
The long-run aggregate supply graph is vertical, reflecting the views of economists that show variations in aggregate demand only affect the overall performance of the economy briefly. Only capital, labor, and technology influence cumulative output in the long run, because it is believed that everything in the economy is efficiently utilized.
If the output things influence in quantity, the long-run aggregate supply curve can change. While the short-run aggregate supply curve is influenced by the cost of production including subsidies, labor wages, taxation and production prices.
9) An automobile company decides to improve the quality of all its products and bring more variety into its product line. The company has decided to adopt ________. A) focused cost-leadership B) industry-wide differentiation C) industry-wide cost leadership D) focused differentiation
Answer:
The correct answer is letter "B": industry-wide differentiation.
Explanation:
Industry-wide differentiation is a technique used by companies when they diversify their line of goods to reach unexplored sectors of the market and increase their chances of collecting higher revenue. Normally, this practice is carried out by large entities with enough funds for investment and covering risks.
Consider two bonds, a 3-year bond paying an annual coupon of 12%, and a 20-year bond, also with an annual coupon of 12%. Both bonds currently sell at par value. Now suppose that interest rates rise and the yield to maturity of the two bonds increases to 16%. a. What is the new price of the 3-year bond? (Round your answer to 2 decimal places.) b. What is the new price of the 20-year bond? (Round your answer to 2 decimal places.) c. Do longer or shorter maturity bonds appear to be more sensitive to changes in interest rates? Longer Shorter
Answer:
longer bonds will be more sensitive to change in interest rate as their cash flow are mor exposed to interest related to short.term bonds. Notice the PV of the maturiry values for each one to notice the greater difference.
3-year bonds $ 910.16
20-year bonds: $ 762.85
Explanation:
3-years bonds if rate increase to 16% then:
PV of the coupon payment
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 120.00
time 3
rate 0.16
[tex]120 \times \frac{1-(1+0.16)^{-3} }{0.16} = PV\\[/tex]
PV $269.5067
PV of maturity
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity $1,000.0000
time 3
rate 0.16000
[tex]\frac{1000}{(1 + 0.16)^{3} } = PV[/tex]
PV 640.6577
PV c $269.5067
PV m $640.6577
Total $910.1644
20-years bonds:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 120.00
time 20
rate 0.16
[tex]120 \times \frac{1-(1+0.16)^{-20} }{0.16} = PV\\[/tex]
PV $711.4609
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity $1,000.0000
time 20.00
rate 0.16000
[tex]\frac{1000}{(1 + 0.16)^{20} } = PV[/tex]
PV 51.3855
PV c $711.4609
PV m $51.3855
Total $762.8464
In order to effectively revise and proofread a document, you should: a. attempt to see things from the audience's perspective. b. avoid taking suggestions from others on rewriting the document. c. revise the document until you find new ways to improve it.
Answer:
A. Attempt to see things from the audience's perspective.
Explanation: Proofreading is the process of ensuring that a document is void of major errors,in proofreading,the person involved is trying to read from the perspective of audience to ensure that the document meets certain criteria as stated if it is an academic project or research to be submitting or if it's a Novel or an article, effective proofreading will help to guarantee that the audience will find it Acceptable.
Final answer:
To revise and proofread a document effectively, one must adopt the audience's perspective, be open to feedback, and vet the writing through multiple revisions for both major structural changes and detailed proofreading.
Explanation:
To effectively revise and proofread a document, it is crucial to adopt the audience's perspective to better understand how your writing will be received. This approach involves several stages, starting with a substantial revision to see the big picture, which includes reorganizing and refining ideas and arguments to better suit the document’s purpose and reader's expectations. After taking a break to gain fresh eyes, engage a series of revisions, where each pass focuses progressively on fine-tuning the language, style, and accuracy of the text.
One key method for gaining perspective is to employ a checklist that centers on the audience's view of your work, allowing you to diagnose issues that may not be immediately apparent. Moreover, being open to feedback from others can offer invaluable insights that may not emerge in isolation. Importantly, revisions should go beyond mere editing to encompass substantive changes that improve the overall coherence and effectiveness of the document.
The revision process is not simply about finding new ways to rephrase words but about enhancing the entire document to ensure clarity, coherence, logical flow, and the fulfillment of the assignment’s objectives. In addition to self-review, seeking unbiased feedback and being open to constructive criticism can lead to significant improvements before finalizing the document.
Remember that effectively revising and proofreading are about refining both the global aspects of the document and the minutiae, ultimately resulting in a polished and comprehensible piece of writing that resonates with the intended audience.
what is the purpose of a debt service fund? Does a debt service fund require budgeting? why or why not?
Answer:
The purpose of a debt service fund is to pay back long term debt issued to finance a specific government project alongside with the principal and interest accrued to it.
Part B: Yes
Explanation:
A debt service fund require budgeting because with budgeting, payments of debts are easily managed and it also ensures fund availability as at the moment it is needed.
A market is described by the following supply-and-demand curves:QS = 2PQD = 300−PSuppose the government imposes a price ceiling of $90. This price ceiling is (Binding/non-binding) and the market price will be $ ______. The quantity supplied will be ______, and the quantity demanded will be ______. Therefore, a price ceiling of $90 will result in (Shortage/ a surplus/ neither a shortage nor surplus).
Answer:
Binding
$100
200
200
Shortage
Explanation:
A price ceiling is when the government or an agency of the government sets the maximum price for a good.
A price ceiling is binding when the price ceiling is below the equilibrium price.
To find the equilibrium price, equate qs to qd because at equilibrium, quantity supplied is equal to quantity demanded.
2P = 300 - P
3P = 300
P = 100
Equilibrium price is $100.
$100 > $90. Therefore, price ceiling is binding.
To find quantity supplied, plug in the value of P into the equation for quantity supplied
QS = 2(100) = 200
To find quantity demanded, plug in the value of P into the equation for quantity demanded
QD = 300 - 100 = 200
when price is below equilibrium price, quantity demanded increases while the quantity supplied decreases. This leads to a shortage.
I hope my answer helps you
Given the supply and demand curves, when the government imposes a price ceiling of $90, it is binding. At this price, the quantity supplied is 180, the quantity demanded is 210, therefore resulting in a shortage.
Explanation:The market condition is described by the supply curve QS = 2P, and the demand curve QD = 300−P. A price ceiling is a maximum price set by a government above which the market price cannot rise. Given a price ceiling of $90, first, let's see if it is binding or non-binding. The equilibrium price is found where the quantity demanded equals the quantity supplied, if you equate these two: 2P = 300-P, solving this you find P = 100. This is the price without government intervention. Since the price ceiling is below this price (90 < 100), we can say that the price ceiling is binding.
At the price ceiling of $90, the quantity supplied can be computed by substituting the value into the supply equation: QS = 2P => QS = 2 * 90 = 180, and the quantity demanded by substituting into the demand equation: QD = 300−P => QD = 300 - 90 = 210. Therefore, a price ceiling of $90 will result in a shortage as the quantity demanded (210) is more than the quantity supplied (180).
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To issue new guidelines and opinions regarding employment practices that result from newly passed laws, t the Equal Employment Opportunity Commission (EEOC) frequently uses the _____.
Answer:
The correct answer is "Federal Register"
Explanation:
In the Federal Register we can find the rules of government agencies and public notices.
This is an approach that the government uses so that people have knowledge about new laws and regulations, requirements and guidance of the government. All proposed and approved government regulations are published in the Federal Register. For this reason, the Equal Employment Opportunity Commission is based on the Federal Register.
Hometown Grocery, Inc. has 41,000 shares of common stock outstanding and 5,000 shares of preferred stock outstanding. The common stock is $6.00 par value; the preferred stock is 4% noncumulative with a $100.00 par value. On October 15, 2018, the company declares a total dividend payment of $55,000. What is the amount of dividend that will be paid for each share of common stock? (Round your answer to the nearest cent.)
Answer:
Dividend Per Each Share = $0.85 per share
Explanation:
given data
common stock outstanding = 41,000 shares
preferred stock outstanding = 5,000 shares
common stock = $6.00 par value
preferred stock 4% noncumulative = $100.00 par value
total dividend payment = $55,000
solution
we get here Total Preferential Divided that is
Total Preferential Divided = Shares × Face Value × 4% ........1
Total Preferential Divided = 100 × 5000 × 4%
Total Preferential Divided = 20000
so as that Total Equity Dividend is
Total Equity Dividend = Total Dividend - Total Equity Dividend .............2
Total Equity Dividend = $55,000 - 20000
Total Equity Dividend = 35000
so Dividend Per Each Share will be
Dividend Per Each Share = [tex]\frac{Equity\ Dividend}{Total\ Equity\ Shares}[/tex] ..............3
Dividend Per Each Share = [tex]\frac{35000}{41000}[/tex]
Dividend Per Each Share = $0.85 per share
Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair each item from List A with the item from List B that is most appropriately associated with it.
List A =
1. Expense recognition
2. Periodictiy
3. Historical cost principle
4. Materiality
5. Revenue recognition
6. Going concern assumption
7. Monetary unit assumption
8. Economic entity assumption
9. Full-disclosure principle
List B =
1. A common denominator is the dollar
2. All information that could affect decisions should be reported
3. Concerns the relative size of an item and its effect on decisions
4. Criteria usually satisfied for products at point of sale
5. Record expenses in the preiod the related revenue is recognized
6. The enterprise is separate from its owners and other entities.
7. The entity will continue indefinitely
8. The life of an enterprise can be divided into artificial time periods.
9. Thje original transaction value upon acquistion.
Answer:
Find it below
Explanation:
1. Expense Recognition - Record expenses in the preiod the related revenue is recognized
2. Periodicity - The life of an enterprise can be divided into artificial time periods.
3. Historical cost principle - The original transaction value or cost upon acquistion.
4. Materiality - Concerns the relative size of an item and its effect on decisions
5. Revenue recognition - Criteria usually satisfied for products at point of sale.
6. Going concern assumption - The entity will continue indefinitely
7. Monetary unit assumption - A common denominator is the dollar
8. Economic entity assumption - The enterprise is separate from its owners and other entities.
9. Full-disclosure principle - All information that could affect decisions should be reported
.
Final answer:
The provided list matches accounting concepts, such as the Expense Recognition and the Revenue Recognition, to their definitions, like recording expenses in the period revenue is recognized and criteria usually satisfied at the point of sale, respectively.
Explanation:
The question involves pairing accounting terms with their appropriate descriptions. Here is the correct association between List A and List B:
Expense recognition (List A) is associated with Record expenses in the period the related revenue is recognized (List B).Periodicity (List A) is associated with The life of an enterprise can be divided into artificial time periods (List B).Historical cost principle (List A) is associated with The original transaction value upon acquisition (List B).Materiality (List A) is associated with Concerns the relative size of an item and its effect on decisions (List B).Revenue recognition (List A) is associated with Criteria usually satisfied for products at point of sale (List B).Going concern assumption (List A) is associated with The entity will continue indefinitely (List B).Monetary unit assumption (List A) is associated with A common denominator is the dollar (List B).Economic entity assumption (List A) is associated with The enterprise is separate from its owners and other entities (List B).Full-disclosure principle (List A) is associated with All information that could affect decisions should be reported (List B).The principles and assumptions discussed are integral to accounting and provide a framework for financial reporting that ensures consistency and comparability across different entities.
Discuss the lengths to which you would go to manage political risk relative to the kinds of returns you would expect to gain?
Answer: In managing a political risk, the first thing to do is to go on a research, to determine the type of political risk that is likely to occurs in the country or state, and the level of influence this risk has on your business. If the risk is manageable, then investment can start, but before start, you should get a political risk insurance certificate, from a national insurance body or an international insurance body. If at a time the risk becomes higher, that it is likely to affect the production of my profit. The business will be incorporated with a government owned business. So as to sustain the business profit, because no Government will want to establish any law that will have big negative effect upon its own business. If the high risk is as a result of the host community, then the business should be incorporated with the community, so that their will see a sense of belonging to the business.
Explanation:
The political risk found in managing any business are the influences government policies have on that business, this includes taxes,spending,regulation,currency valuation,trade tariffs, minimum wage and environmental regulation.
Is it possible for a country with a regressive tax system to have a tax-spending system that transfers resources from the rich to the poor? a. Yes, if the poor get more in spending than they pay in taxes. b. No, because regressive taxes cannot be combined with transfers from the rich to the poor. c. Yes, if the poor get as much in spending as they pay in taxes. d. No, because the regressive tax would outweigh any spending program.
Answer:A
Explanation:
A regressive tax is a tax impose in such a manner that the tax rate decreases as the amount subject to taxation increases.
In a competitive market, all of the choices along the production possibility frontier display (-----) efficiency, while the specific choice on the frontier that society picks in the one with (-----) efficiency.
a. Productive; Allocative
b. Allocative; Productive
c. Allocative; Allocative
d. Productive; Productive
Answer:
a. Productive; Allocative
Explanation:
At full production capacity, all of the choices (no matter the trade-off) are productive by all means. However, the choice of a particular economy regarding the pinpoint on the production possibility frontier is representing allocative efficiency. One of the crucial tasks of economics is to efficiently allocate the resources in order to achieve full production capacity.
Morgan Jennings, a geography professor, invests $95,000 in a parcel of land that is expected to increase in value by 14 percent per year for the next eight years. He will take the proceeds and provide himself with a 20-year annuity. Assuming a 14 percent interest rate, how much will this annuity be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Answer:
The annuity will be $40916.60
Explanation:
Future value of land = Present value of land*(1 + rate)^n
Annuity = Future value of land*rate/(1 - 1/(1 + rate)^t)
= $95,000*1.14^8*14%/(1 - 1/1.14^20)
= $40916.55871562
Therefore, The annuity will be $40916.60
After investing $95,000 in land that increases in value by 14% annually for 8 years, the value of the land would be about $248,003.58. This is then turned into a 20-year annuity, generating an annual payment of approximately $3,546.67.
Explanation:Morgan Jennings, a geography professor, first invests $95,000 in a parcel of land that is expected to increase in value by 14 percent per year for the next eight years. We use compound interest formula to calculate the future value of this investment: A = P*(1 + r/n)^(nt), where P is principal amount ($95,000), r is annual interest rate (14%, or 0.14), t is time the money is invested for (8 years), and n is number of times interest applied per time period (assumed to be 1 here).
After eight years, the value of the land would be $95,000 * (1 + 0.14)^8 = $248,003.58 approximately.
Next, Jennings will turn this into a 20-year annuity. The annuity payment can be found using the annuity formula: PVA = PMT * [(1 - (1 + r)^-t) / r], where PVA is present value of annuity ($248,003.58), PMT is annuity payment, r is annual interest rate (14%, or 0.14), and t is number of periods (20 years).
After rearranging, PMT = PVA * r / [(1 - (1 + r)^-t)], we get PMT = $248,003.58 * 0.14 / [(1 - (1 + 0.14)^-20)] = $3,546.67 approximately.
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In accounting for credit losses: Select one: A. The allowance method matches losses with related sales better than the direct write-off method B. The direct write-off method involves estimating credit losses C. The direct write-off method consistently understates assets on the balance sheet D. Both B and C
Answer:
A. The allowance method matches losses with related sales better than the direct write-off method.
Explanation:
Credit losses refers to those losses which arise as a consequence of an enterprise extending credit to it's customers. This is in the form of default by customers upon payment, termed as bad debts losses.
Under the allowance method, a percentage of sales which is estimated as non recoverable is provided for as Bad debts for the current period and recorded via an adjusting entry at the end of accounting period.
It represents a provision created against debtors as doubtful debts. This is an estimation. Later when such bad debts are confirmed, following journal entry is passed:
Allowance for Bad and doubtful debts Dr.
To Accounts Receivables
(Being loss on account of bad debts recorded)
Under direct write off method, bad debts losses are directly written off as and when they occur and no allowance or provision is made in advance against them.
What refers to analysis of environmental impacts of products from the design stage through end-of-life?
Answer: Life cycle assessment
Explanation: Life cycle assessment is the systematic analysis of environmental impacts of products from design stage through end-of-life, raw materials and energy inputs to its disposal with the ultimate goal to reduce environmental impact. It is concerned with every stage of the life-cycle (from raw material extraction, processing of raw materials, production, distribution, usage and disposal) of a product, process, or service.
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$419,000 –$37,000 1 47,000 19,800 2 59,000 13,900 3 76,000 15,600 4 534,000 12,400 The required return on these investments is 11 percent. Required: (a) What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Payback period Project A years Project B years (b) What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Net present value Project A $ Project B $ (c) What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Internal rate of return Project A % Project B % (d) What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).) Profitability index Project A Project B (e) Based on your answers in (a) through (d), which project will you finally choose?
Answer:
a. The payback period for project A=3.44 years, and the payback period for project B=2.21 years.
b. Net present value for project A=$78,560.951, and the Net present value for project B=$11,694.239
c. IRR for Project A= 16.57% and IRR for Project B=25.72%
d. Probability index (P.I) for Project A=1.187 and the Probability index (P.I) for Project B=1.316
e. The final decision should be based on the NPV since it doesn't have the ranking problem that is usually associated with other capital budgeting techniques. I would choose Project A since it has a higher Net Present Value (NPV) as compared to Project B.
Explanation:
PROJECT A PROJECT B
Year Cash flow Cash flow
0. $419,000 $37,000
1. $47,000 $19,800
2. $59,000 $13,900
3. $76,000 $15,600
4. $534,000 $12,400
a.
The payback period for Project A can be determined as follows;
The cash flows at Year 0 represent the initial investment to the project. The payback period is the number of years it will take until the return on the project is equal to the initial investment. This can be calculated as shown;
419,000-(47,000+59,000+76,000)
=419,000-182,000=$237,000
After 3 years, the total cash flow will be=$182,000 which is still $237,000 less from the initial investment. Determine the number of months in the fourth year that it will take to cover the remainder;
(237,000/534,000)=0.44 years
Total number of years=3+0.44=3.44 years
The payback period for project A=3.44 years
The payback period for Project B can be determined as follows;
37,000-(19,800+13,900)
=37,000-33,700=$3,300
After 2 years, the total cash flow will be=$33,700 which is still $3,300 less from the initial investment. Determine the number of months in the third year that it will take to cover the remainder;
(3,300/15,600)=0.21 years
Total number of years=2+0.21=2.21 years
The payback period for project B=2.21 years
b.
Net present value for project A is;
NPV=-419,000+{47,000/(1+0.11)}+{59,000/((1+0.11)^2)}+{76,000/((1+0.11)^3)}+534,000/((1+0.11)^4)=-419,000+(42,342.342+47,885.724+55,570.545+351,762.340=$42,378,560.61
Net present value for project A=$78,560.951
Net present value for project B is;
NPV=-37,000+{19,800/(1+0.11)}+{13,900/((1+0.11)^2)}+{15,600/((1+0.11)^3)}+12,400/((1+0.11)^4)=-37,000+(17,837.837+11,281.552+11,406.586+8,168.264=$11,694.239
Net present value for project B=$11,694.239
c.
The IRR for each project A is:
$419,000 = $47,000 / (1 + IRR) + $59,000 / (1 + IRR)^2 + $76,000 / (1 + IRR)^3 + $534,000 / (1 + IRR)^4
Using a spreadsheet, financial calculator, or trial and error to find the root of the equation, we find that:
IRR = 16.57%
The IRR for each project B is:
$37,000 = $19,800 / (1 + IRR) + $13,900 / (1 + IRR)^2 + $15,600 / (1 + IRR)^3 + $12,400 / (1 + IRR)^4
Using a spreadsheet, financial calculator, or trial and error to find the root of the equation, we find that:
IRR = 25.72%
d.
Probability index (P.I) for Project A;
P.I=[{47,000/(1+0.11)}+{59,000/((1+0.11)^2)}+{76,000/((1+0.11)^3)}+534,000/((1+0.11)^4)]/419,000=(42,342.342+47,885.724+55,570.545+351,762.340=1.187
The Probability index (P.I) for Project A=1.187
Probability index (P.I) for Project B;
[{19,800/(1+0.11)}+{13,900/((1+0.11)^2)}+{15,600/((1+0.11)^3)}+12,400/((1+0.11)^4)]/37,000=(17,837.837+11,281.552+11,406.586+8,168.264=1.316
The Probability index (P.I) for Project B=1.316
e.
The final decision should be based on the NPV since it doesn't have the ranking problem that is usually associated with other capital budgeting techniques. I would choose Project A since it has a higher Net Present Value (NPV) as compared to Project B.
This question involves the calculation of financial terms including payback period, NPV, IRR, and profitability index to evaluate and compare two projects. The project which offers the shortest payback period, the highest NPV, IRR, and profitability index should be chosen.
Explanation:To answer this question, we first need to make some calculations. Each of the terms used (payback period, NPV, IRR, profitability index) represents a different method of assessing the profitability or feasibility of a project.
Payback period is simply the amount of time it takes for an investment to generate enough cash flows to recover the initial investment. To calculate this, you need to add up the cash flows until the initial investment is recovered.
To calculate the NPV (Net Present Value), you need the cash inflows from each period, the initial investment (cash outflow), and the required rate of return. The NPV is calculated by subtracting the present value of cash outflows (initial investment) from the present value of cash inflows.
Calculating the IRR (Internal Rate of Return) requires a rather complex equation (an iterative process or financial calculator/Excel's IRR function is used). The IRR is the discount rate when the NPV of the project is zero. The Profitability Index (PI) refers to the ratio of the present value of future cash flows and the initial investment cost. A PI greater than 1 indicates a good project, and a PI of less than 1 indicates a bad project.
Depending on the results of these calculations, you would choose the project that displays a shorter payback period, higher NPV, higher IRR, and higher PI.
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Sara Beth made annual deposits of $5,000 in an account that paid 4 percent compounded annually. How much money should be in the account immediately after her tenth deposit?
Answer:
$60,030.54
Explanation:
In this question, we use the FV formula that is presented in the spreadsheet.
The NPER shows the time period.
Given that,
Present value = $0
PMT = Monthly payments = $5,000
NPER = 10
Rate of interest = 4%
The formula is presented below:
= -FV(Rate;NPER;PMT;PV;type)
So, after solving this, the future value is $60,030.54
The key component underlying bureaucracies is ________. Select one: a. standardization b. wide span of control c. the organizational pyramid d. dual lines of authority e. flexibility
Answer:
The correct answer is letter "A": standardization.
Explanation:
Bureaucracy refers to a system in which hierarchy is well-defined within an organization. They follow a centralized, top-down approach in making decisions being the lower layers the most affected since the transmission of information tends to be slow. Bureaucracies aim to provide a standard method of working for every organizational activity.
Answer: A. Standardization
Explanation: Bureaucracy in different terms can be understood as government by bureaus (administrative units) or their administrators or officers. In business and the organizational theory, it is a system of administration based upon organisation into bureaus, division of labour, a hierarchy of authority, etc., designed to dispose of a large body of work in a routine manner. As such it is quite centered around structured around hierarchy, standardization, and specialization. Standardization as key component of bureaucracies indicates they're characterised by excessive red tape and routine all in a bid to comply (or evaluate by comparing) with a standard. In this, theoretically bureaucracies improve efficiency while ensuring equal opportunities (which is always not the case).
A general partner in a partnership is a partner who __________. Is personally liable for partnership debts only up to the amount of money or other property that the partner contributed to the partnership. Is personally liable for the partnership's nonrecourse loans. Is personally liable for partnership debts. Adheres to generally accepted accounting principals.
Answer:
The correct answer is letter "C": Is personally liable for partnership debts.
Explanation:
A Partnership is an entity that operates a company with two or more owners. They share the profits in proportion to their relationship benefit in percentage terms. There are two types of partnerships: general partnerships (unlimited liability) and limited partnership (liability according to the percentage contributed to the partnership).
Imprudential, Inc., has an unfunded pension liability of $568 million that must be paid in 15 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.1 percent, what is the present value of this liability?
Answer:
$233,677,865.61
Explanation:
The computation of the present value of this liability is given below:
As we know that
Future value = Present value × (1 + rate)^number of years
So,
Present value = Future value ÷ (1 + rate)^number of years
= $568,000,000 ÷ (1 + 6.1%)^15
= $568,000,000 ÷ 2.430696628
= $233,677,865.61
Problem 6-13 Pricing Consol Bonds (LO2) Perpetual Life Corp. has issued consol bonds with coupon payments of $60. (Consols pay interest forever and never mature. They are perpetuities.). If the required rate of return on these bonds at the time they were issued was 6%, at what price were they sold to the public?
Answer:
The bonds were sold at $1,000 to yield as the market rate at the time.
Explanation:
To determinate the value of the bonds we divide the annual cash received on the coupon payment against the market rate at the time:
The formula for the value of a perpetuity is as follows:
[tex]\frac{C}{r} =Value[/tex]
60 / 0.06 = 1,000
Fred is starting a software writing company. He is the owner and has only three employees. He wants a simple, inexpensive form of ownership that leaves him in control and that he can quickly dissolve if he decides to change to another business. His best choice of ownership would be ________.
Answer:
Sole proprietorship.
Explanation:
The best property choice for Fred's business would be a sole proprietorship.
This corresponds to a popular commercial form due to the simplicity of business operations, ease of implementation and relatively low cost.
In the sole proprietorship, a single owner will be able to register the name of his business (which can be the name of the owner or a fictitious name) and obtain the necessary licenses for the start of operations. It is an easy way to start a new business without the greatest risks found in some type of business partnership, since in exclusive ownership, the business responsibilities are solely of the owner, including gains and losses.
Your coin collection contains fifty 1949 silver dollars. Your grandparents purchased them for their face value when they were new. These coins have appreciated at a 7.6 percent annual rate. This rate is expected to continue. How much will your collection be worth when you retire in 2020
Answer:
The correct answer is: $319.8.
Explanation:
The Annual Percentage Rate or APR is the cost per year of borrowing. By law, all financial institutions must show customers the APR of a loan or credit card, which indicates the real cost of the loan. APR is not compounded. Annual Percentage Yield (APY) is.
Thus, in the example:
Initial net worth = $50 Interest per year = ($50 x 7.6%) = $3,8 Total years = 2020-1949 = 71 Total interest = $3,8 x 71 = $269.8 Total net worth in 2020 = $50 + $269.8 = $319.8
A regional car dealership began running mass marketing TV advertisements emphasizing its high-end luxury vehicles. The region this car dealership services had been hit hard with a recession. The main manufacturer had beer purchased by a foreign company and moved overseas, and now unemployment is rampant. What did this dealership miss about its target market?
a. the advertisements wasted money and time because they were not targeted properly
b. segmenting the market appropriately
c. identifying the need its business addressed
Answer:
a. the advertisements wasted money and time because they were not targeted properly
Explanation:
The advertisement is not well targeted, with the increased unemployment in this region and the fact that the major source of economic wealth ( the beer manufacturer) has been bought and relocated, means the economy is not well profiled for the luxury cars that are advertised.
The company should first of all do it's research to gauge how well profiled the residents of the economy is to their products.
Ideally the target if the advertisement should be a thriving economy where there is excess cash to purchase luxury goods.
The car dealership missed segmenting the market appropriately and identifying the need its business addressed. By running mass marketing TV advertisements without targeting the specific needs and preferences of the audience in the region hit hard by the recession, the dealership wasted money and time.
Explanation:The car dealership missed segmenting the market appropriately and identifying the need its business addressed. By running mass marketing TV advertisements without targeting the specific needs and preferences of the audience in the region hit hard by the recession, the dealership wasted money and time.
Instead of focusing on high-end luxury vehicles, the dealership could have focused on offering affordable options, addressing the need for reliable transportation in a time of rampant unemployment. By understanding the economic circumstances of the target market and adapting their marketing strategy accordingly, the dealership could have been more effective in reaching potential customers.
Segmenting the market would have involved identifying specific groups within the region, such as budget-conscious consumers or individuals looking for fuel-efficient cars. Tailoring advertisements and promotions to these segments would have increased the chances of attracting customers who were more likely to consider purchasing a car despite the recession.
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Company C expects to have sales of $12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be $1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. The company's federal plus state tax rate is 40% and it has no debt. What is Company C's expected cash flow
Answer:
Company C's expected cash flow is $2,400,000
Explanation:
Costs other than depreciation of Company C = 75% x $12,000,000 = $9,000,000
Income before tax = Sales - Costs other than depreciation - Depreciation expense = $12,000,000 - $9,000,000 - $1,500,000 = $1,500,000
The company's federal plus state tax rate is 40%,
Tax = $1,500,000 x 40% = $600,000
Company C's expected cash flow = Sales - Costs other than depreciation - Tax = $12,000,000 - $9,000,000 - $600,000 = $2,400,000
Note: Depreciation is a non-cash accounting expense, so it doesn't involve cash flow
Littlefield Industries purchased a bond on September 1 of the current year for $200,000 and classified the investment as trading debt. The market value of the trading debt investment at year-end is $196,000. The adjustment is ______.
Answer:
The adjustment is:
Debit Unrealized Loss Account with $4,000
Credit Trading Debt Fair Value Adjustment Account with $4,000.
Explanation:
Held for trading assets are form of investment that an entity holds for the purpose of selling them within a short term period. The changes in these investments are recognized in the statement of comprehensive income for the period and are taken to fair value adjustment account.
The accounting entries to pass for each event are listed below:
Increase in market value: Debit the asset fair value adjustment account
Credit the unrealized gain account.
Decrease in market value: Credit the asset fair value adjustment account
: Debit the unrealized loss account.
In the case of Littlefield industries, there was a loss of $4,000 ( $200,000 - $196,000). So the fair value adjustment account will be credited with $4,000 to bring the investment value down to $196,000 and a corresponding debit entry will be recognized as unrealized loss and transfer to income statement for the year.
Bases of business or organizational market segmentation that center on the customer attributes are categorized as: Group of answer choices a. Soft qualitative criteria. b. Hard qualitative criteria. c. economic bases. d. bottom-up bases. e. concentration bases.
Hard qualitative criteria
Explanation:
The qualitative requirements in marketing begin with a quick-term target, in which the qualitative standards: architecture, online distribution platforms, customer satisfaction and e-loyalty are also included.
Briefly, the process of gathering large amounts of data by polls, surveys and voting techniques relates to quantitative market research. Qualitative market research, alternatively, involves trying to determine customer motivation through close analysis ––typically in a tiny group or face-to-face encounter.
Final answer:
The most appropriate categorization for business market segmentation based on customer attributes is 'hard qualitative criteria' as it involves measurable customer characteristics that can support distinct grouping and differential pricing mechanisms.
Explanation:
Bases of business or organizational market segmentation that center on customer attributes generally involve qualitative data. However, when these bases allow for the distinct grouping of customers and support differential pricing or self-selection mechanisms, they might better be described using quantitative or semi-quantitative criteria. Within the question's context, the closest answer choice is hard qualitative criteria. This categorization typically involves identifiable and measureable customer characteristics such as geography, lifestyle, family life cycle, and perceived benefits. The economic bases criterion as mentioned in economic base analysis employs quantitative methods like the location quotient for market analyses, which leans more toward precise numerical data rather than qualitative attributes. Hence, the firmest alignment with the question would be with option (b) hard qualitative criteria, which allows for segmentation based on distinguishable customer attributes.
A stock you are evaluating just paid an annual dividend of $2.70. Dividends have grown at a constant rate of 2.4 percent over the last 15 years and you expect this to continue.If the required rate of return on the stock is 15.8 percent, what should the fair value be four years from today?
Answer:
Value of the stock in four years: $22.69
Explanation:
We use the gordon model to sovle for the intrinsic value (fair value) of the share according to their future cash flow:
[tex]\frac{divends_1}{return-growth} = Intrinsic \: Value[/tex]
the formula uses next year dividends so we need to calcualte:
2.70 x 1.024 = 2,7648
Now we can solve for the value of the stock:
g = 0.024
r = 0.158
[tex]\frac{2.7648}{0.158-0.024} = Intrinsic \: Value[/tex]
Present Value = 20.63283582
That is the value of the stock today.
Now we apply the grow factor for the next four year:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 20.63283582
time 4.00
rate 0.02400
[tex]20.6328358208955 \: (1+ 0.024)^{4} = Amount[/tex]
Amount 22.69
A rhode island company produces communion wafers for churches around the country and the world. the little company produces a lot of wafers, several hundred million per year. when in production, the process produces wafers at the rate fo 87 per second. during this production process, the wafers must spend 13 minutes passing through a cooling tube. how many wafers does the cooling tube hold on average when in production? ( in other words, don't count the time they are not in production).
Answer:
67,860 WAFERS
Explanation:
The question is to determine the number of wafers the cooling tube holds on average when in production?
First, what is the rate of wafers that are produced per second during the production process = 87 wafers
Secondly, we determine the entire time it takes a batch of wafers (in seconds) to completely pass through the cooling tube as follows
=Time to pass through x 60 seconds (to convert the minutes to seconds)
= 13 Minutes x 60 seconds = 780 Seconds
Finally, we determine the number of wafers the cooling tube can hold as follows:
The number of seconds it takes to pass through the cooling tube x the number of wafers produced per second
= 780 seconds x 87 wafers
= 67,860 Wafers.
The cooling tube therefore holds on average 67,860 WAFERS when it is in production.
To find out how many wafers the cooling tube holds on average when in production, multiply the rate of production per second (87 wafers) by the total seconds the wafers spend in the tube (780 seconds), which equals 67,860 wafers.
Explanation:The first step in figuring out how many wafers are in the cooling tube on average when in production is to find out how many seconds are in the amount of time that the wafers are in the tube. There are 13 minutes in the cooling tube, which we can convert to seconds by multiplying by 60 because there are 60 seconds in a minute. Thus, 13 * 60 = 780 seconds.
The company produces wafers at the rate of 87 per second. So, to find out the number of wafers in the cooling tube on average while in production, multiply this rate by the number of seconds the wafers spend in the tube. Therefore, 87 * 780 = 67,860. So on average, the cooling tube holds 67,860 wafers when in production.
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