Answer:
the stock is undervalued
Explanation:
the constant-growth dividend discount model = dividend / required rate of return - growth rate
3.5 / 0.14 - 0.06 = $43.75
If the price of the stock is less than the one calculated, it means that the price is less than its intrinsic value. This means that the stock is undervalued. If otherwise, the stock is overvalued
Charger Company's most recent balance sheet reports total assets of $29,133,000, total liabilities of $16,683,000 and total equity of $12,450,000. The debt to equity ratio for the period is (rounded to two decimals):
Answer:
1.34
Explanation:
Debt to equity ratio is the same as liability to equity ratio. In order to arrive at the debt to equity ratio, the amount of liability has to be divided by the amount of equity.
Given that;
Total liabilities = $16,683,000
Equity = $12,450,000
Therefore,
The debt to equity ratio for the period
= Total liabilities ÷ Total equity
= $16,683,000 ÷ $12,450,000
= 1.34
We use debt to equity ratio to determine a company's leverage; meaning that where it is greater than 1, it means that the company has more of its debt than assets, which is not good enough.
HELP 10 POINTS help help help
By showing a thorough understanding of your survey results, organizing your content in a clear manner, and generally showing you are prepared for this presentation, you are most demonstrating what aspect of credibility?
Multiple Choice
character
caring
competence
Answer:
competence
Explanation:
Credibility is defined as the ability of an endeavour or individual to inspire confidence by those interested in it.
Credibility has 3 aspects - caring, character, and competence.
Competence is the ability of an individual to demonstrate adequate knowledge, skill, strenght, or judgement with regards to a particular area of interest.
In the given instance where one is showing a thorough understanding of your survey results, organizing your content in a clear manner, and generally showing you are prepared for this presentation. He is demonstrating competence
A stock will provide a rate of return of either −18% or 26%.
a. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a whole percent.)
b. If Treasury bills yield 4% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock be?
Answer:
a. Expected return = 4%
Standard deviation = 22%
b. 0%
Explanation:
a. As the return is equally likely, the expected return which is a weighted average will be:
= (0.5 * -18%) + ( 0.5 * 26%)
= 4%
Standard deviation = √Variance
Variance = (0.5 * (-18% - 4%)²) + (0.5 * (26% - 4%)²)
= 242 + 242
= 484%
Standard deviation = √484
= 22%
b. Treasury bills have no market risk attached and the stock has an expected return that is the same as the Treasury bill yield which means that the stock therefore has no market risk.
Look at the attached image.
During the current year, Margaret and John received $24,000 in Social Security benefits. The amount of their adjusted gross income for the year before any Social Security income was $140,000 and they received $19,000 in tax-exempt income. Explain the treatment of their Social Security income for tax purposes and the likely percentage of the Social Security income that will be taxable to Margaret and John.
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
We need to look at different cases for taxes.
Case 1: If Margaret and John chooses to file a federal tax as an individual.
Then, their accumulative income is between the range = $25000 - $34000
Then, they have to pay up to 50% of their benefits.
If income is more than this range, then obviously, 85% will be taxable.
Case 2: If Margaret and John file a joint return.
Then, your combined income must be between the range = $32000 - $44000
Then, they 50% of their benefits will be taxable.
If more than this range, then percentage will be go to 85%.
Case 3: If Margaret and John despite being married, file separate tax return:
Then, they would have to pay taxes on their individual benefits.
Let's suppose they choose the case 2 in which they file a joint return. Then, of course their combined income is greater than the upper limit of the range defined which is $44000. So, their 85% of their benefits will be taxable.
Benefit = $24000
Taxable amount = 85% x $24000 = $20,400
Frank lives in an area that experiences frequent thunderstorms. What precautionary measures should he adopt?
(Please don’t answer unless you know 100% that you are correct)
Answer:
There are different precautionary measures Frank can adopt. They are:
Explanation:
1. Frank should have outdoor furniture made of concrete instead of metal.
A strike of thunder on a metal surface will propel an electric shock.
2. Frank should pay good or regular attention to the weather forecasts.
He should have a handy device such as a small radio, which will keep him abreast of important happenings in the area.
3. Frank should take cover once a stroke of lightning appears in the sky.
The field of Physics lets us to know that light travels faster than sound and that the moment lightning appears in the sky, expect thunder roaring about 8 seconds after.
4. Frank should get used to or always wear covered shoes, to protect him from the electric charge that is created between a thunderstorm and a wet ground. Gloves could also do, for the hands.
5. Frank should structure his movements and road trips such that he accounts for some time that'll be used to wait for thunderstorms to pass; since it's unsafe to drive while the storms are roaring.
This will help him be on time to events and meetings.
6. Frank should avoid leaning on walls which have metal wires or bars across them, especially when lightning appears.
7. Frank should avoid anything wet, during a thunderstorm. This precaution should be taken even while indoors.
8. In the event that frank gets caught outdoors or in the open when a thunderstorm occurs, he should stoop and let only his feet have contact with the ground.
The marketing concept is a philosophy that focuses on A. Advertising products B. Selling products C. Making good products D. Providing value to customers E. None of the above
Answer:
D. Providing value to customers
Explanation:
The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case.
Hope this was helpful, have a Wonderful Day!!
Sales is $90 per unit; direct material is $30 per unit; direct labor is $12 per unit; overhead is $5 per unit and $2,100 per month; selling and administrative expenses are $4 per unit and $1,500 per month. Overhead is:
Answer:
$10
Explanation:
Vaughn Company includes 1 coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2017, Vaughn Company purchased 8,000 premiums at 80 cents each and sold 117,000 boxes of soap powder at $3.50 per box; 42,500 coupons were presented for redemption in 2017. It is estimated that 60% of the coupons will eventually be presented for redemption.Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2017.
Answer and Explanation:
The journal entries are as follows:
1. Premium inventory (8,000 × $0.80) $6,400
To cash $6,400
(being the inventory is purchased for cash)
2. Cash Dr (117,000 × $3.50) $409,500
To sales revenue $409,500
(Being the cash received is recorded)
3. Premium expense $3,400 (42,500 × 10% × $0.80)
To Premium inventory $3,400
(Being premium expense is recorded)
4. Premium expense Dr $2,216
To premium liability $2,216
(Being premium expense is recorded)
Working note
= (117,000 × 60%) - (42,500) × 0.10 × 0.80
How does supply in the demand affect me
Answer:
When demand exceeds supply, prices tend to rise. ... If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price and a lower quantity of goods and services. The same inverse relationship holds for the demand for goods and services
Question 4 According to the psychology literature, if the business recommendation you are going to make in a business presentation is likely to be controversial, you should order the stem of your presentation hourglass so that the:
The correct answer to this open question is the following.
If the business recommendation you are going to make in a business presentation is likely to be controversial, you should order the stem of your presentation hourglass so that the controversial issue comes after you have exposed the many benefits and advantages of your proposal. Doing this, people would have considered first the mane¿y advantages or positive points you previously mentioned and will be more open to considering the benefits against the disadvantages that create controversy.
Otherwise, if you do the opposite, the controversial issue is going to be at the top of their brains, hindering the acceptance of your business proposal.
Never start with the negatives because people could "close their minds" to your idea.
If $3000 is invested at 5% interest, compounded annually, then after n years the investment is worth an
Answer:
Results are below.
Explanation:
Giving the following information:
Initial investment (PV)= $3,400
Interest rate (i)= 5% = 0.05
Number of years= ?
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
For example:
n= 10 years
FV= 3,400*(1.05^10)
FV= $5,538.24
n= 8 years
FV= 3,400*(1.05^8)
FV= 5,023.35
Campbell, a single taxpayer, earns $438,000 in taxable income and $2,760 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule). Required: If Campbell earns an additional $16,900 of taxable income, what is her marginal tax rate on this income
Answer:
Currently (assuming a 2020 tax schedule), Campbells tax liability = $47,367.50 + [35% x ($438,000 - $207,350)] = $128,095
municipal bonds are not taxed by the federal government, so Campbell will not pay any taxes on the interests earned on the State of New York bonds.
if he earns an additional $16,900, then his tax liability will be:
$47,367.50 + [35% x ($454,900 - $207,350)] = $134,010
his marginal tax rate = 35%
According to the OUCH test, an employment decision is considered ______ if it ensures the result is not significantly different for different groups.
Answer:
Consistence in effect
Explanation:
Objective, Uniform in application and Consistent in effect which is known as
The OUCH Test can be regarded as
rule of thumb that can be utilized when there is contemplation about an
employment action. It helps in maintaining equity among ones employee. It should be noted that According to the OUCH test, an employment decision is considered Consistence in effect if it ensures the result is not significantly different for different groups.
Sam, a change manager, has many competencies. One particular strength is his ability to gather meaningful data through interviews, surveys, and observations. These characteristics of Sam are an example of the ____ skills of a change manager. Multiple Choice Diagnostic Interpersonal Initiation
Answer: Diagnostic
Explanation:
Diagnostic skills is the ability of an individual to be able to identify a certain problem, define it, analyze it and seek solutions to it.
Witg regards to the information, this is a type of skill whereby the manager collects, and then analyzed the data available to him or her.
Answer:
Diagnostic us the write answer.
5-16 PRESENT VALUE OF A PERPETUITY What is the present value of a $600 perpetuity if the interest rate is 5%
Answer:
A. 571.423
B .545.45
Explanation:
A. Calculation for the present value of a perpetuity
Present Value = $600*1 /(1+.05)
Present Value = $600*1 /1.05
Present Value =571.423
Therefore the Present value of a $600 perpetuity if the interest rate is 5 % will be 571.423
B. Calculation for the present value if thr interest rate doubled to 10%,
Present Value = $600 /(1+.01)
Present Value = $600/1.01
Present Value =545.45
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,850 in assets to launch the business. On October 31, the company's records show the following items and amounts.
Cash $7,950 Cash withdrawals by owner 3,070
Accounts recelvable 15,040 Consulting fees earned 15,040
Office suppliles 4,200 Rent expense 4,530
Land 46,010 Salaries expense 8,090
Office equlpment 19,060 Telephone expense 880
Accounts payable 9,430 Miscellaneous expenses 880
Owner Investments 85,050
Requirement:
A) Using the above information prepare an October income statement for the business.
B) Using the above information prepare an October statement of owner's equity for Ernst Consulting.
C) Using the above information prepare an October 31 balance sheet for Ernst Consulting.
Answer:
a. Income Statement
Revenues:
Consulting fees earned $15,040
Total revenues $15,040
Expenses:
Salaries expenses $8,090
Rent $4,350
Telephone $880
Miscellaneous $880
Total Expenses $14,200
Net Income $840
b. Statement of owners equity
Particulars Amount Amount
Add: Investment by owner $85,050
Net Income $840
Capital, October 1 $85,890
Less: Withdrawal by owner $3,070
Capital, October 31 $82,820
c. Balance sheet
Assets Liabilities
Cash $7,950 Accounts payable $9,430
Accounts receivable $15,040
Office supplies $4,200
Land $46,010 Owner's equity $82,820
Office equipment $19,060
Total assets $92,250 Total liabilities & Equity $92,250
Establishing a formal code of ethics is Multiple Choice mandated by the Corporate and Criminal Fraud Accountability Act. unnecessary given the level of government regulation. more common with small businesses than large businesses. growing in popularity.
Answer:
Establishing a formal code of ethics is
growing in popularity.
Explanation:
A code of ethics refers to the established principles designed to help professionals conduct business honestly and with integrity. It sets guidelines for an employee's or a professional's conduct and also determines appropriate penalties for code violations. The establishment of a code of ethics has been growing in popularity since the Sarbanes-Oxley Act of 2002, with some companies organizing training to ensure that their employees learn the rules of proper and ethical conduct early enough. Fresher courses are also organized for updating knowledge of ethical practices.
Establishing a formal code of ethics is growing in popularity. Thus, option D is the correct option.
The defined rules created to assist professionals in conducting business honestly and with integrity are referred to as a code of ethics. It establishes standards for professional or employee behavior and establishes appropriate sanctions for code infractions.
Since the Sarbanes-Oxley Act of 2002, the creation of a code of ethics has gained in popularity, and some businesses have started to hold training sessions to make sure that their staff members are properly educated on these principles from an early age. For the purpose of upgrading understanding of ethical behaviors, newer courses are also organized.
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Digital designers need what kind of skills:
A.
Network administration
B.
Artistic skills
C.
Communication skills
D.
Teamwork
Answer:
C. Communication skills
Answer:
Its (C)
Explanation:
A methods and measurement analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of 2 seconds. What is the standard time for this task if the employee worked at a 20 percent faster pace than average, and an allowance of 25 percent of the workday is used
Answer:
32 seconds
Explanation:
According to the scenario, computation of the given data are as follows,
Average observed time = 20 seconds
so, if the employee worked at 20% faster pace, then
Performance rating = 1.20
So, Normal time = 20 seconds × 1.20 = 24 seconds
Here, Allowance = 25%
Now, we can calculate the standard time by using following formula,
Standard time = Normal time ÷ ( 1 - Allowance)
By putting the value, we get
Standard time = 24 seconds ÷ ( 1 - 0.25)
= 24 ÷ 0.75
= 32 seconds
Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (5,200 units)$176,800 Variable expenses 78,000 Contribution margin 98,800 Fixed expenses 46,400 Net operating income$52,400 If the company sells 5,300 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Multiple Choice $53,408 $98,800 $100,700 $102,200
Answer:
See below
Explanation:
The total contribution margin would be
Contributions margin is calculated as;
The Nicor family is planning to purchase a new home 7 years from now. If they have $240,000 now, how much will be available at the time of purchase
Answer:
$530,400
Explanation:
The interest rate on the funds is 12%.
To find the answer, we use the future value of an investment formula:
FV = PV(1 +i)^n
Where FV = Future Value (the value we are looking for)
PV = Present value, in this case $240,000
i = the interest rate, in this case 12%
n = the number of compounding periods, in this case, 7 years.
Now, we plug the amounts into the formula:
FV = 240,000 (1 + 0.12)^7
FV = 240,000 (2.21)
FV = 530,400
So the value available for buying the new home after 7 years is $530,400
A rich uncle wants to make you a millionaire. How much money must he deposit in a trust fund paying 8% compounded quarterly at the time of your birth to yield $1,000,000 when you retire at age 58
Answer:
Initial investment= $10,110.21
Explanation:
Giving the following information:
Future value (FV)= $1,000,000
Interest rate (i)= 0.08/4 = 0.02
Number of periods (n)= 58*4= 232 quarters
To calculate the initial investment (PV), we need to use the following formula:
PV= FV/(1+i)^n
PV= 1,000,000 / (1.02^232)
PV= $10,110.21
Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is a.$33,000 b.$53,000 c.$37,000 d.$47,000
Answer:
b. $53,000
Explanation:
The net cash provided by operating activities is computed by.
Given the above information,
The net cash provided by operating activities is ;
= $35,000 + $7,000 + $3,000 + $8,000
= $53,000.
One advantage of free trade is: Group of answer choices advanced production operations are built in low-wage countries. innovation for new products occurs which keeps firms competitively challenged. jobs are shifted to low-wage global markets. service jobs are moved overseas.
Answer:
Innovation for new products occurs which keeps firms competitively challenged
Explanation:
Free trade can be regarded as a
theoretical policy , that governments use when there is no imposition of
tariffs/taxes, as well as duties on imports as well as exports.
free trade can be regarded as the opposite of protectionism. It should be noted that One advantage of free trade is Innovation for new products occurs which keeps firms competitively
Mr. Brown wants to buy a Tesla Model S car, whose price is $100, 848. The dealer offers a loan plan: $30, 000 downpayment, $X at the end of year 1, year 2, year 3, and year 4. Assume the constant annual interest rate is 25%. (a) What is X
Answer:
X is $30,000
Explanation:
First, we need to calculate the Amount ofLoan
Amount of Loan = Car price - Down payment = $100,848 - $30,000 = $70,848
This is the situation of annuity payment for 4 years at a 25% interest rate with equal annuity payment each year.
Now we will use the following formula to calculate the value of X
PV of Annuity = Annuity payment x ( 1 - ( 1 + interest rate )^-numbers of years ) / Interest rate
Where
PV of Annuity = Amount of Loan = $70,848
Interest rate = 25%
Numbers of years = 4 years
Annuity Payment = X = ?
Placing values in the formula
$70,848 = X x ( 1 - ( 1 + 25% )^-4 ) / 25%
$70,848 = X x 2.3616
X = $70,848 / 2.3616
X = $30,000
Tara Company owns 80 percent of the common stock of Stodd Inc. In the current year, Tara reports sales of $5,000,000 and cost of goods sold of $3,500,000. For the same period, Stodd has sales of $500,000 and cost of goods sold of $400,000. During the year, Stodd sold merchandise to Tara for $40,000 at a price based on the normal markup. At the end of the year, Tara still possesses 20 percent of this inventory. Prepare the consolidation entry to defer intra-entity gross profit.
Explanation:
According to scenario, computation of the give data are as follows:
Stodd Inc. sales = $500,000
Cost of goods sold = $400,000
Stodd sold to Tara = $40,000
Tara Possess = 20%
= $40,000 × 20%
= $8,000
So, Cost of goods sold = 8,000 × 20% = $1,600
So, entry are as follows:
Sales A/c Dr. $40,000
To, COGS A/c $40,000
( Being sold merchandise to Tara is recorded)
COGS A/c Dr. $1,600
To, Inventory A/c $1,600
( Being inventory is recorded)
Rhonda Brennan found her first job after graduating from college through the classifieds of the Miami Herald. She was delighted when the offer came through at $14.30 per hour. She completed her W-4 stating that she is married with a child and claims an allowance of 3. Her company will pay her biweekly for 80 hours (assume a tax rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare).
Calculate her take-home pay for her first check. Assume 6.2% on SS and 1.45% on Medicare.
Answer:
Answer is explained in the explanation below.
Explanation:
Solution:
According to the data given: This can be solved as following. (Note: we are not given income tax tables to calculate the accurate net pay. So, according to given information here. Following is the accurate one. )
Let's assume, a 6.2% tax rate for SS ( Social Security) and 1.45% tax rate on Medicare:
So,
Social Security = 6.2%
Medicare = 1.45%
Pay Per hour = $14.30
So, let's calculate Rhonda's Gross pay:
Gross Pay = Pay per hour x total number of hours
Gross pay = $14.30 x 80 hours
Gross Pay = $1,144
Now, calculate the Rhonda's Reduction for Social Security:
Rhonda's Reduction for Social Security = $1,144 x 6.2%
Rhonda's Reduction for Social Security = $70.928
Similarly, Rhonda' Reduction for Medicare:
Rhonda' Reduction for Medicare = $1,144 x 1.45%
Rhonda' Reduction for Medicare = $16.588
So Finally,
Rhonda's Take-home Pay for her first check will be = Gross pay - Rhonda's Reduction for Social Security - Rhonda' Reduction for Medicare
Rhonda's Take-home Pay for her first check will be = $1,144 - $70.928 - $16.588
Rhonda's Take-home Pay for her first check will be = $1,056.484
Answer: $986.48 ( numbers may vary if table amounts required are different)
Explanation:step 1: Gross pay: ($14.30 x 80=$1144) step 2.) $1144 x 6.2%=$70.93, $1144 x 1.45%=$16.59 step 3.) on table 9.1, Rhonda, paid biweekly, claims 3, so 159.60 x 3= $478.80. subtract this from $1144 to get 665.20. Step 4: establish FIT, go to table 9-2 for biweekly married and 10%(1144-444)= $70 Step 5: $1144-(70.93+16.59+70)=$986.48 take home pay
Golding Bank provided the following data about its resources and activities for its checking account process: Resources ActivitiesTime per Unit Activity Driver Supervision$68,000 Processing accounts0.20 hr. No. of accounts Phone and supplies82,000 Issuing statements0.10 hr. No. of statements Salaries224,000 Processing transactions0.05 hr. No. of transactions Computer22,000 Answering customer inquiries0.15 hr. No. of inquiries Total396,000 Total check processing hours22,000 (practical capacity) Required: 1. Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent
Answer:
Please see below
Explanation:
The question above is incomplete. See concluding parts
2. Calculate the activity rates for the four activities . Round your answers to the nearest cent. Processing account per account issuing statement processing transactions per enquiry. If the total number of statement issued was 20,000 calculate the cost of the issuing statements activity.
1. Capacity cost rate
= Total resources / Total checking processing hours
= $396,000 / 22,000
= $18 per hour
2. Calculate the activity rates for the four activity. Round your answers to the nearest cent.
Processing accounts
= 0.20 × $18 = $3.6 per account
Issuing statements
= 0.10 × $18 = $1.8 per statement
Processing transactions
= 0.05 × $18 = $0.9 per transaction
Answering inquiries
= 0.15 × $18 = $2.7 per inquiry
If the total of issuing statement was 20,000 calculate the cost of issuing the issuing statement activity
Issuing statement
= 20,000 × $1.8
= $36,000
