The correct answer is D. All of these. Credit scoring is a method used by lenders to assess the creditworthiness of individuals or businesses seeking credit. While credit scoring has its benefits, it also has certain limitations and costs associated with its implementation.
First, credit scoring can be quite expensive for the lender. Developing and maintaining an effective credit scoring system requires significant resources, including data collection, analysis, and technology infrastructure.
Second, credit scoring is not a flawless method of determining creditworthiness. While it provides a standardized and objective assessment based on various factors such as credit history, income, and debt levels, it may not capture the complete financial situation or future behavior of an individual or business accurately.
Lastly, credit scoring is seen as an inefficient but necessary process. Despite its limitations, credit scoring is widely used by lenders because it provides a relatively quick and consistent assessment of creditworthiness. While there may be alternative methods or additional factors to consider, credit scoring remains a prevalent tool in the lending industry.
Therefore, all of the given options accurately describe credit scoring as being quite expensive for the lender, not a flawless method of determining creditworthiness, and an inefficient but necessary process.
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Create a Business Plan for a small restaurant using the below format:
1.) Business Description
- Industry Overview
- Company Description
- Company Vision / Mission /Tagline
- Goals and Objectives
- Company Ownership
2.) Products / Services
- Products / Services
- Product Unique Features
3.) The Market
- Industry Analysis
- SWOT Analysis
- Market Analysis
- Competitor Analysis
4.) Marketing Strategies and Sales
- Introduction
- Market Segmentation Strategy
- Targeting Strategy
- Positioning Strategy
- Distribution Channels
- Product/Service Strategy
- Marketing Strategy
- Marketing Tactics
5.) Management
- Search Engine Optimization (SEO)
6.) Operations
- Operations Strategy
7.) Financials
- Financial Analysis
- Kinds of Financial Analysis
- Statement of Financial Position
- Statement of Comprehensive Income
- Horizontal Analysis - Statement of Financial Position
- Horizontal Analysis - Comprehensive Income
- Vertical Analysis - Statement of Financial Position
- Vertical Analysis - Comprehensive Income
- Financial Ratios
Here is an example of a business plan for a small restaurant:1.) Business Description Industry Overview: The restaurant business is a highly competitive industry in the United States. Americans spend more than half of their food budget on eating out. The National Restaurant Association predicts that by 2022, the restaurant industry in the United States will be worth $1.2 trillion.
Company Description: Our restaurant is a small, family-owned business located in the heart of the city. The restaurant serves traditional American cuisine with a modern twist. The restaurant has been in operation for the past three years. Company Vision / Mission / Tagline: Our vision is to become the go-to restaurant in the city for excellent food, drinks, and service.
Our mission is to provide customers with delicious food and a memorable dining experience. Our tagline is "Experience the best food in town." Goals and Objectives: Our goals and objectives are to increase our customer base, expand our menu, improve our online presence, and increase profitability.
Company Ownership: Our restaurant is a family-owned business with five shareholders.2.) Products / Services Products / Services: The restaurant offers a variety of food and drinks, including appetizers, entrees, salads, sandwiches, desserts, and alcoholic and non-alcoholic drinks.
Product Unique Features: Our restaurant offers a unique dining experience with a modern twist on traditional American cuisine. Our chefs use fresh, locally-sourced ingredients to create unique, flavorful dishes.3.) The Market Industry Analysis:
The restaurant industry is highly competitive in the United States, with more than 1 million restaurants in operation. The industry is expected to continue growing as more Americans dine out. SWOT Analysis: Strengths: Unique menu, excellent customer service, and a convenient location.
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given an asset with a net book value (nbv) of $42,000. a. what are the after-tax proceeds for a firm in the 38% tax bracket if this asset is sold for $53,000 cash? b. what are the after-tax proceeds for a firm in the 38% tax bracket if this asset is sold for $25,000 cash?
a. After-tax proceeds for a firm in the 38% tax bracket when selling the asset for $53,000 cash would be $48,820. b. After-tax proceeds for a firm in the 38% tax bracket when selling the asset for $25,000 cash would be $25,000.
a. To calculate the after-tax proceeds for a firm in the 38% tax bracket when the asset is sold for $53,000 cash, we need to determine the taxable gain and apply the tax rate.
The taxable gain is the difference between the selling price and the net book value: $53,000 - $42,000 = $11,000.
The tax on the gain can be calculated by multiplying the taxable gain by the tax rate: $11,000 × 0.38 = $4,180.
The after-tax proceeds are the selling price minus the tax: $53,000 - $4,180 = $48,820.
b. Similarly, to calculate the after-tax proceeds for a firm in the 38% tax bracket when the asset is sold for $25,000 cash, we follow the same steps.
The taxable gain is the difference between the selling price and the net book value: $25,000 - $42,000 = -$17,000 (negative gain).
Since there is a loss, no tax will be applied. Therefore, the after-tax proceeds will be equal to the selling price: $25,000.
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How can measuring market share be helpful to a brand looking into entering said market? Are there any ways to break into a market that is dominated by a monopoly?
Measuring market share is helpful to a brand looking to enter a market as it helps in determining the proportion of total sales of a specific product or service that a particular brand controls.
Market share analysis is a vital tool to determine how well a business is doing against its competitors. If the brand looking to enter the market can analyze its competitors' market share, it can find a way to compete with them. The following are the advantages of measuring market share to a brand looking to enter the market.
Market share analysis helps identify competitors: By analyzing competitors' market share, a brand can determine which market leaders it must contend with in the industry and how to compete against them.Marketing Strategy Development.
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B. Explain TWO (2) points that differentiate between cross-border merger and cross-border acquisition. C. Describe FOUR (4) methods of Cross Border International Businesses, citing advantages and disadvantages of these methods.
Cross-border merger and cross-border acquisition are two different methods of cross-border international businesses. The following are the differences between them:Cross-border merger involves the combination of two or more companies from different countries to form a new entity. On the other hand, cross-border acquisition occurs when one company acquires another company in a different country.
Cross-border mergers are mostly between companies that have similar sizes, and the owners of both companies share in the ownership of the new entity. In contrast, cross-border acquisition is usually when a large company acquires a smaller company or takes over a competitor.The benefits of cross-border mergers are that the combined entity can benefit from economies of scale, expertise, and technology. Also, the new entity can take advantage of different markets and reduce competition. Cross-border acquisitions have the advantage of access to new markets, cost-cutting measures, and the opportunity to expand the company's operations.
Franchising is when a company grants permission to another company to use its name and business model to run a business in exchange for a fee. Direct investment involves investing in and managing operations in another country. The advantages of exporting include access to new markets, and the disadvantages include limited control over products. Licensing has the advantage of low risk, but there is a lack of control over the license. Franchising has the advantage of easy expansion, but there is limited control over the franchise. Direct investment has the advantage of full control, but it has high risk and cost.
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On March 17, Advanced Technologies purchased a patent related to laser surgery techniques. The purchase price of the patent is $1,360,000. The patent is expected to benefit the company for the next five years. The company had the following additional costs: $36,000 in legal fees associated with the purchase and filing of the patent, $51,000 to advertise its new laser surgery techniques, and $61,000 to train employees. None of these additional costs were included in the purchase price or paid to the seller. Now assume that instead of purchasing the patent, Advanced Technologles spent $1,360,000 to develop the patent internally, consisting of personnel. ($880,000), equipment ($348,000), and materials ($132,000). All additional costs were incurred for the same amount. What is the recorded cost of the patent?
The recorded cost of the patent is $1,508,000.
This is an example of purchasing intangible assets. Intangible assets are items that don't have a physical substance but instead have value based on the rights they provide the owner. A patent is one of the most common types of intangible assets. For an intangible asset to be recorded on the balance sheet, the following criteria should be met:
It must have identifiable, separable rights or economic benefits
It must arise from legal rights or contractual agreements
It must be able to be separated from the company and sold without affecting normal operations
In this question, Advanced Technologies purchased a patent related to laser surgery techniques. The purchase price of the patent is $1,360,000. The patent is expected to benefit the company for the next five years. The company had the following additional costs: $36,000 in legal fees associated with the purchase and filing of the patent, $51,000 to advertise its new laser surgery techniques, and $61,000 to train employees. None of these additional costs were included in the purchase price or paid to the seller.
The recorded cost of the patent is $1,408,000
The breakdown is as follows: Patent purchase cost: $1,360,000
Legal fees associated with the purchase and filing of the patent: $36,000
Cost to advertise the new laser surgery techniques: $51,000
Cost to train employees: $61,000
Total recorded cost of patent: $1,408,000
Now assume that instead of purchasing the patent, Advanced Technologies spent $1,360,000 to develop the patent internally, consisting of personnel ($880,000), equipment ($348,000), and materials ($132,000). All additional costs were incurred for the same amount. The total cost of the patent if developed internally is $1,508,000The breakdown is as follows: Personnel: $880,000
Equipment: $348,000
Materials: $132,000
Legal fees associated with the development and filing of the patent: $36,000
Cost to advertise the new laser surgery techniques: $51,000
Cost to train employees: $61,000
Total recorded cost of patent: $1,508,000
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the major purpose of cash flow statement is to provide information about cash receipts and cash payment during an accounting period.
The primary purpose of a cash flow statement is to provide financial information regarding the inflow and outflow of cash during a particular period, such as a month or a year.
The cash flow statement distinguishes between cash inflows and outflows, and it is beneficial in assessing the company's liquidity, solvency, and overall financial performance. A cash flow statement is also used by investors and other stakeholders to determine the company's financial position and ability to repay its debts.The cash flow statement categorizes cash transactions as operating, investing, or financing activities.
Operating activities include any cash inflows or outflows generated by the company's primary business, such as sales or purchases of inventory. Investing activities refer to the purchase or sale of long-term assets such as property or equipment, while financing activities refer to cash flows resulting from borrowing or repaying debt or equity.Operating cash flow is critical in determining a company's financial performance and health.
Cash flow from operations should cover all of a company's operating expenses, such as rent, salaries, and utilities. If a company's operating cash flow is insufficient to cover its expenses, it may struggle to meet its financial obligations and eventually become insolvent. Therefore, the cash flow statement plays a significant role in assessing the company's liquidity, solvency, and overall financial performance.
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On March 21, 2021, Christine worked 4.0 hours on Job A-1, and 3 hours on general "overhead activities." Christine is paid $18 per hour. Overhead is applied based on $20 per direct labor hour. Additionally, on March 21 Job A-1 requisitioned and entered into production $260 of direct material. On March 21, Christine, while working on Job A-1 used $27 of indirect material. Indirect material is included in the overhead application rate.
Use this information to determine the total cost that should have been recorded in the Work in Process for Job A-1 on March 21? Round your answer to the closest whole number (no cents).
The given information can be used to determine the total cost that should have been recorded in the Work in Process for Job A-1 on March 21. We have been provided the following information:
The correct option is (d) [tex]$439.[/tex]
On March 21, Christine, while working on Job A-1 used $27 of indirect material. Indirect material is included in the overhead application rate.
Using the above information, we can calculate the cost that should have been recorded in the Work in Process for Job A-1 on March 21.Calculation:
Direct Labor Cost: Direct labor cost = Hours worked × Hourly rateDirect labor cost for Job A-1 = 4 × 18= $72 Overhead Cost:
Overhead rate = Overhead / Direct Labor Overhead rate = 20 / 1 = 20
Therefore, the overhead cost = Overhead rate × Direct Labor Overhead cost = 20 × 4 =[tex]$80[/tex]
Cost of Direct Material: Cost of Direct Material = [tex]$260[/tex] Indirect Material Cost: Indirect Material cost = $27
Total cost that should have been recorded in the Work in Process for Job A-1 on March 21= Direct Labor Cost + Overhead Cost + Cost of Direct Material + Indirect Material cost= 439.
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Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine \#5027. 'SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $11,200 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 17 years instead of 15 years and that the residual value should be increased to $9,000. Required: 1. Prepare the entry to record the purchase of the replacement blade.
The following would be the entry to reflect the replacement blade's purchase on January 7, 2020: Explanation: The $11,200 cost of the replacement blade is reflected in the debit to the Property, Plant, and Equipment account.
This sum is added to Machine #5027's value. The cash payment made for the new blade is reflected in the credit to the Cash account. It was paid for in cash, so $11,200 is deducted from the Cash account. Note: Depending on the company's chart of accounts and accounting procedures, the precise account names may change. For precise and comprehensive information, it's crucial to refer to the company's accounting procedures and financial records.
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A very simple economy produces two goods: cameras and legal services. The quantities produced and their corresponding prices for 2015 and 2019 are shown in the table. Product Digital Camera Legal services 2015 Quantity 100 50 Price $10 15 2019 Quantity 120 45 Price $12 20 Calculate the real GDP in 2019 using 2015 as a base year.
Real GDP in 2019 using 2015 as a base yearReal GDP:Real GDP (2019) = Price (2015) x Quantity (2019).The quantities produced and their corresponding prices for 2015 and 2019 are shown in the table:Product Digital Camera Legal services2015Quantity 100 50Price $10 152019Quantity 120 45Price $12 20
To calculate the real GDP of 2019, using the base year 2015. Calculate the nominal GDP for both years:Nominal GDP = Price x Quantity2015Nominal GDP = (100 × 10) + (50 × 15) = $1,5002019Nominal GDP = (120 × 12) + (45 × 20) = $2,010
To calculate Real GDP (2019), we use the following formula:Real GDP = Nominal GDP/Deflator2015Deflator = Nominal GDP / Real GDPNominal GDP (2015) = $1,500Real GDP (2015) = $1,500Deflator (2015) = 1Nominal GDP (2019) = $2,010Deflator (2019) = Nominal GDP (2019) / Real GDP (2019)Deflator (2019) = $2,010 / Real GDP (2019
)Therefore, Real GDP (2019) = Nominal GDP (2019) / Deflator (2015)Real GDP (2019) = $2,010 / 1Real GDP (2019) = $2,010.As the prices of goods and services increased in 2019, the nominal GDP increased, but the real GDP is calculated by adjusting the nominal GDP using a price index (deflator) to account for inflation and provides the most accurate measure of an economy's output. Therefore, the Real GDP of 2019 using 2015 as a base year is $2,010.
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Roth Corp. reports the following on its balance sheets:
December 31, 2022
December 31, 2021
Property and equipment, at
cost
$223,000
$140,000
Common stock
819,000
537,000
During 2022, Roth exchanged common stock for equipment worth $47,000. The remainder of the increase in property and equipment resulted from Roth buying equipment for cash. The remainder of the increase in common stock resulted from Roth issuing common stock for cash.
On its 2022 statement of cash flows, Roth will report net cash flows from investing activities of:
[Enter a net cash inflow as a positive number or a net cash outflow as a negative number.]
We must take into account the changes in property and equipment during the year in order to calculate the net cash flows from investment activities on Roth Corp.'s 2022 statement of cash flows.
Between December 31, 2021, and December 31, 2022, the increase in property and equipment is $83,000 ($223,000 - $140,000). The exchange of common stock for equipment and the cash purchase of equipment make up this rise. 1. Common stock for equipment exchange: Roth traded common shares for $47,000 worth of equipment. This transaction is a non-cash transaction, hence there is neither an inflow nor an outflow of cash. The net cash flows from investing activities are therefore unaffected. 2. Cash-only acquisition of equipment: The remaining rise in real estate and equipment, which is $47,000 ($83,000 - $36,000), which came from Roth paying cash for the equipment. The net cash flows from investing activities will be negative (-$36,000) because this requires a cash outflow. As a result, Roth will report $36,000 in net cash outflows from investing activities on its 2022 statement of cash flows.
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Masters machine shop is considering a four-year project to improve its production efficiency. buying a new machine press for $385,000 is estimated to result in $145,000 in annual pretax cost savings. the press falls in the macrs five-year class, and it will have a salvage value at the end of the project of $45,000. the press also requires ana initial investment in spare parts inventory of $20,000, along with an additional $3,100 in inventory for each succeeding year of the project. if the shop’s tax rate is 22 percent and its discount rate is 9 percent, should the company buy and install the machine press?
Based on the analysis, Masters machine shop should buy and install the machine press. The project is expected to generate positive net present value, indicating that it will provide a return greater than the initial investment.
To determine whether Masters machine shop should buy and install the machine press, we need to evaluate the project's financial feasibility.
Step 1: Calculate the annual cash flows
The annual pretax cost savings from the new machine press is $145,000. To calculate the after-tax cash flows, we need to consider the tax rate of 22%. So, the annual after-tax cash flow is: $145,000 * (1 - 0.22) = $113,100.
The initial investment in spare parts inventory is $20,000. Additionally, there is an annual investment in inventory of $3,100 for each succeeding year. Since the project is four years long, the total investment in inventory over the project's duration is: $20,000 + ($3,100 * 3) = $29,300.
Step 2: Calculate the annual net cash flows
To calculate the annual net cash flows, we subtract the annual investment in inventory from the annual after-tax cost savings: $113,100 - $29,300 = $83,800.
Step 3: Determine the salvage value
The machine press has a salvage value at the end of the project of $45,000.
Step 4: Apply the discounted cash flow analysis
Using the discount rate of 9%, we can calculate the present value of the annual net cash flows and the salvage value. The present value of each year's cash flow is calculated by dividing the cash flow by (1 + discount rate)^year.
Year 1: $83,800 / (1 + 0.09)^1 = $76,972.48
Year 2: $83,800 / (1 + 0.09)^2 = $70,770.92
Year 3: $83,800 / (1 + 0.09)^3 = $64,994.61
Year 4: $83,800 / (1 + 0.09)^4 = $59,623.44
Salvage value: $45,000 / (1 + 0.09)^4 = $35,460.99
Step 5: Calculate the present value of the project
To calculate the present value of the project, we sum up the present values of the cash flows.
Present value of the project = $76,972.48 + $70,770.92 + $64,994.61 + $59,623.44 + $35,460.99 = $307,822.44
Step 6: Compare the present value of the project with the initial investment
The present value of the project ($307,822.44) is higher than the initial investment of $385,000. Therefore, it indicates that the project is financially viable.
In conclusion, based on the analysis, Masters machine shop should buy and install the machine press. The project is expected to generate positive net present value, indicating that it will provide a return greater than the initial investment.
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what will happen to workers' wages in sector b, which has experienced decreased demand due to trade?
If the demand for the product of Sector B has decreased due to trade, then the wages of the workers working in Sector B will decrease.
As Sector B is experiencing a decrease in demand due to trade, the company may find it difficult to generate the required revenue. In such a situation, they may have to reduce their production level. When the production level reduces, the demand for labor decreases, and the workers will be left with a job scarcity.
This would enable the employers to take advantage of the situation and reduce the wages of the workers. Thus, if the demand for Sector B decreases due to trade, the wages of workers working in that sector would decrease. Moreover, if the workers refuse to work at lower wages, the employers may look for workers who are willing.
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Examine the cost of breakdown of a couple of Apple products and a pair of jeans sold in an Asda store (Walmart's British subsidiary) in the UK here Outsourcing.pdf . Based on this information, answer the following questions:
Which value chain activities does Apple outsource? Which value chain activities does it perform internally? Do you think Apple's outsourcing decisions are justified? Explain.
Which value chain activities does Asda outsource? Which value chain activities does it perform internally? Do you think Asda's (and other global apparel retailers') decision to outsource manufacturing to developing countries justified? Explain.
Apple has been outsourcing some of its value chain activities to cut costs and improve efficiency, and some of these activities include component manufacturing, assembly, testing, and packaging.
In comparison, the company's design, research, marketing, and customer support are carried out internally. Apple’s outsourcing decisions are justified as it has enabled them to concentrate on their core competencies and streamline their value chain activities to achieve a competitive edge.
Apple’s decision to outsource component manufacturing and assembly to China, for example, has helped the company save on production costs and improved its profit margins. Furthermore, outsourcing has enabled Apple to meet demand fluctuations and market trends more effectively while reducing lead times and risk.
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the actions that a company takes to compete within a single industry are
The actions that a company takes to compete within a single industry include product differentiation, cost leadership, market segmentation, innovation, strategic alliances, effective marketing, and efficient supply chain management.
These strategies aim to create a competitive advantage, attract customers, increase market share, and achieve long-term profitability. Product differentiation involves offering unique features or attributes that distinguish a company's products or services from competitors. Cost leadership focuses on providing products or services at lower costs compared to rivals. Market segmentation involves targeting specific customer segments with tailored offerings to meet their needs. Innovation helps companies stay ahead by developing new products, processes, or business models. Strategic alliances can be formed to access new markets, technologies, or resources. Effective marketing activities aim to create brand awareness, build customer loyalty, and communicate the value proposition. Efficient supply chain management ensures timely delivery, cost control, and quality assurance. These actions collectively contribute to a company's competitive position within its industry.
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radiation safety standards assume what relationship between dose and response?
Radiation safety standards assume a linear, no-threshold (LNT) relationship between dose and response. According to this assumption, there is no dose of radiation that can be considered completely safe, and any exposure to radiation, no matter how small, carries a potential risk of harmful effects.
The linear part of the assumption means that the biological response to radiation is directly proportional to the dose received. In other words, if the dose doubles, the response or risk of harm is also expected to double. This assumption is based on the idea that even low doses of radiation can cause damage to cells and DNA, and that the risk increases linearly with increasing dose. The no-threshold part of the assumption implies that there is no dose threshold below which radiation exposure is considered without risk. Even the smallest exposure carries a corresponding small risk, according to this model. This assumption is based on extrapolating data from high-dose radiation studies and applying it to low-dose exposures, as it is challenging to directly observe the effects of low-dose radiation in human populations. It is important to note that the LNT model is a conservative approach to radiation protection. It allows for the establishment of safety standards and guidelines to minimize radiation exposure and associated risks. However, there is ongoing scientific debate and research to better understand the actual risks at low doses and potential threshold effects.
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Which statement is TRUE? (only one answer)
O a. Delta of a long call is always negative.
O b. Delta of a long put is always positive.
O c. Large changes in stock price are not fully hedged in a delta-neutral portfolio
O d. Delta is always constant for any changes in stock price.
OE.All of the above.
Large changes in stock price are not fully hedged in a delta-neutral portfolio is true among the statement . Option C is correct .
An exchanging approach for choices called delta supporting attempts to decrease or fence the directional gamble welcomed on by changes in the cost of the hidden resource. Options are used to offset the risk of a single other option holding or a portfolio of holdings in this strategy.
A portfolio system known as "delta unbiased" utilizes various possessions with an equilibrium of positive and negative deltas so the complete delta of the resources viable is zero. A delta-nonpartisan portfolio adjust the reaction to showcase variances for a particular reach, carrying the position's net change to nothing.
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Lannister Manufacturing has a target debt-equity ratio of 0.51. Its cost of equity is 18 percent, and its cost of debt is 10 percent. If the tax rate is 34 percent, what is the company's WACC?
13.44%
12.19%
10.45%
14.15% 14.86%
Holdup Bank has an issue of preferred stock with a $9 stated dividend that just sold for $94 per share. What is the bank's cost of preferred stock?
10.05%
9.00% 9.57%
9.19%
9.96%
Lannister Manufacturing has a target debt-equity ratio of 0.51, cost of equity is 18 percent, and its cost of debt is 10 percent. If the tax rate is 34 percent, then the company's WACC is 13.44 percent.
The formula for the weighted average cost of capital (WACC) is: WACC = (E/V x Re) + [(D/V x Rd) x (1 - T)] where: Re is the cost of equity Rd is the cost of debt E is the market value of the company's equity D is the market value of the company's debt V is the total value of the company (market value of equity + market value of debt)T is the corporate tax rate.
For Lannister Manufacturing, WACC = [(0.49 x 18%) + (0.51 x 10% x (1 - 34%))] x 100WACC = 13.44%Therefore, the answer is option A, 13.44%.
The cost of preferred stock is calculated as follows: Cost of preferred stock = Dividend / Price.
Since the bank has an issue of preferred stock with a $9 stated dividend that just sold for $94 per share, the bank's cost of preferred stock would be:
Cost of preferred stock = 9/94 Cost of preferred stock = 0.0957 or 9.57%.
Therefore, the answer is option C, 9.57%.
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Explain this in the context of Tim hortons. Differentiate between demand and supply shifts. Note a government lock-down is a supply shift while staying away from a restaurant because you lost your job or your fear of getting Covid-19 are demand shifts. A fall in supply increases the price but a fall in demand lower price.
In the context of Tim Hortons, a supply shift can be due to a government lockdown that prohibits the operation of restaurants, including Tim Hortons.
This implies that the company is unable to offer its products to the customers, reducing the available supply of the products. As a result, the prices of Tim Hortons' products increase.
A demand shift, on the other hand, occurs when customers decide to stay away from a restaurant because of fear of getting infected with Covid-19 or losing their jobs. This results in a reduction in the number of people who buy Tim Hortons' products. As a result, the company lowers its prices to increase demand. A fall in demand results in lower prices.
The difference between demand and supply shifts is that demand shift affects the willingness and ability of customers to purchase goods or services, while a supply shift affects the ability of companies to produce and sell their products.
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a(n) _____ use case describes only the basic key aspects of the required functionality
Use cases are valuable tools in software development that describe system behavior from a user's perspective. They contribute to effective requirement specification, testing, system understanding, and documentation.
A use case is a method for specifying the actions and functions of a software system, focusing on the interactions between the system and its users or external systems. It helps capture the structure and behavior of the system or component and serves as a specification during software development. Use cases can be represented through various diagrams, such as sequence diagrams, activity diagrams, and state diagrams, and they facilitate the breakdown of the system into manageable components.
Use cases come in different forms, with brief use cases being concise representations that highlight the essential key aspects of the required functionality. They typically consist of a single scenario and a minimal number of system components. On the other hand, more complex use cases can involve multiple scenarios, alternative and exceptional paths, and a greater number of system components. These comprehensive use cases are useful for documenting interactions between subsystems or specifying the behavior of intricate systems.
The purpose of use cases in software development is multi-fold. They help describe user requirements clearly and unambiguously, serving as a foundation for test case development. Use cases also identify system actors, including external systems and users, and provide documentation for future system maintenance and updates. Additionally, they establish a framework for the development of user manuals, training materials, and help systems.
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Define Kyoroku kai (Supplier Associations) and then discuss the
benefits and disadvantages of such alliances.
Kyoroku kai or supplier associations are organizations made up of suppliers who are responsible for supplying raw materials, products, and services to specific industries.
They work together to establish quality and delivery standards, as well as to address common concerns and problems. The main aim of these alliances is to improve the relationship between suppliers and their customers and increase the competitiveness of both parties.
The benefits of Kyoroku kai include the following:
1. Better Communication: The association helps in promoting better communication between suppliers and their customers. This is achieved by sharing information about products, services, and new technologies.
2. Pooling Resources: Members of the alliance can pool their resources, knowledge, and experience to achieve better results. For instance, they can purchase materials in bulk, which would lower the cost of production.
3. Improved Productivity: Through sharing best practices, members can improve their productivity and reduce waste.
4. Reduced Costs: Working together can also result in cost savings through shared marketing, research and development, and other activities.
5. Better Quality Control: The association can establish quality control standards that all members must adhere to, which will improve the quality of products and services.
The disadvantages of Kyoroku kai include the following:
1. Limited Competition: Collaboration between suppliers could limit competition, resulting in higher prices for consumers.
2. Overdependence: Members may become too reliant on the alliance for their success, and this could be a disadvantage if the association fails.
3. Unequal Contributions: Members may not contribute equally to the alliance, which could lead to resentment and a lack of cooperation.
4. Power Imbalances: Larger suppliers may dominate the alliance, leaving smaller ones with less influence.
5. Conflicts of Interest: Members may have conflicting interests, which could lead to disputes and a breakdown of the alliance.
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in the diagram to the right, point a provides the _____, point b the _____, and point c the _____.
A. equilibrium price, surplus or shortage; equilibrium quantity B. market clearing price, equilibrium point, shortage C. equilibrium pice, market equilibrium; surplus D. equilibrium price, market equilibrium, equlibium quantity
The correct option is D. equilibrium price, market equilibrium, equilibrium quantity. In the diagram to the right, point a provides the equilibrium price, point b the market equilibrium, and point c the equilibrium quantity.
In the given diagram, point a represents the equilibrium price, which is the price at which the quantity demanded equals the quantity supplied in the market. Point b represents the market equilibrium, which is the point where the demand and supply curves intersect. At this point, there is no surplus or shortage in the market. Finally, point c represents the equilibrium quantity, which is the quantity that is bought and sold in the market at the equilibrium price. In summary, point a represents the price, point b represents the market equilibrium, and point c represents the quantity at the equilibrium price.
The complete question is
In the diagram to the right, point a provides the _____, point b the _____, and point c the _____.
A. equilibrium price, surplus or shortage; equilibrium quantity B. market clearing price, equilibrium point, shortage C. equilibrium price, market equilibrium; surplus D. equilibrium price, market equilibrium, equilibrium quantity . The diagram is as under
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1. How do airlines practice price discrimination?
2. Does price discrimination increase revenue for airlines?
Airlines often practice price discrimination by offering different prices for the same seat based on factors such as time of purchase, length of stay, and class of service.
This enables airlines to charge a higher price to customers who are willing to pay more while filling seats that would otherwise go unsold. Price discrimination can also be used to increase revenue for airlines. By charging different prices to different customers, airlines can increase their revenue by capturing more of the consumer surplus.
There are risks associated with price discrimination, including the possibility of alienating customers who feel they are being unfairly charged and the potential for reduced consumer welfare. In conclusion, airlines use price discrimination by offering different prices for the same seat based on different factors.
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If you are the finance minister of a small non-EU member European country with strong trade links to the EU, you would recommend a floating exchange rate system to the prime minister. Group of answer choices True False
True. If you are the finance minister of a small non-EU member European country with strong trade links to the EU, you would recommend a floating exchange rate system to the prime minister.
A floating exchange rate is a flexible exchange rate that is determined by the foreign exchange market. This means that the exchange rate changes according to the supply and demand of the currency in the market. Small non-EU member European countries with strong trade links to the EU should implement a floating exchange rate system to prevent a crisis in the future.
A floating exchange rate allows the market to determine the exchange rate, ensuring the economy remains stable. Therefore, the finance minister of such countries would recommend a floating exchange rate system to the prime minister.
The above statement can be justified through the example of Switzerland. Switzerland is a small country with strong trade links to the EU. It has a floating exchange rate that allows the market to determine the exchange rate.
This has helped Switzerland to maintain a stable economy, despite having strong trade links with the EU. The floating exchange rate system provides flexibility and is beneficial for countries with strong trade links to the EU.
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Smoothies Unlimited is considering opening a smoothie bar in Mandeville. The first
expenditure is the $25,000,000 investment required to retrofit the location. Based on the
analysis, the probabilities are 0.25 that it will be extremely popular, 0.60 that it will be
moderately successful and 0.15 that it will not perform well.
If the smoothie bar is extremely popular, operating cash flows of $10 million at the end
of years 1, 2 and 3 will be expected. In that case, the company will expand the
business at the end of year 3 at a cost of $8,000,000. After the expansion, the
probabilities are 0.75 that the subsequent operating cash flows at the end of year 3 will
be $16,000,000 , 0.25 that they will be $10,000,000. Each of these cash flow streams
would continue in years 4 to 8.
If the smoothie bar is moderately successful, operating cash flows of $6 million per year
at the end of years 1 through 8 are expected.
If the smoothie bar is does not perform well, cash flows are expected to be $2,000,000
per year over the 8-year life of the project. If this is the case, Raw Foods will close the
smoothie bar at the end of the second year. $8 million of the original investment would
be recovered.
a) Draw a decision tree showing the decisions, outcomes and probabilities associated
with the new project. [5 marks]
b) Calculate the joint probability and NPV of each path of decision tree. Assume the
required rate of return is 17%. [20 marks]
c) Calculate the expected NPV of the entire project. [4 marks]
d) What is the value of the abandonment option? [3 marks]
`
e) Should the firm undertake the project? [2 marks]
Question 2
‘DCF methods are most appropriate for use in capital investment appraisal’. Do you
agree?
Decision tree evaluates outcomes and probabilities of the smoothie bar project, aiding financial analysis and decision-making.
Yes, DCF methods are suitable for capital investment appraisal by considering cash flows, time value of money, and project profitability.
The decision tree visually represents the decisions, outcomes, and probabilities associated with the smoothie bar project. It allows for a comprehensive evaluation of the project's potential financial outcomes based on different scenarios. By considering the probabilities assigned to each outcome, decision-makers can calculate the joint probabilities and net present value (NPV) for each path in the decision tree.
I agree that DCF methods (Discounted Cash Flow) are highly appropriate for capital investment appraisal. These methods take into account key factors such as cash flows, which provide a realistic assessment of the project's financial performance. DCF methods also consider the time value of money, acknowledging that cash received in the future is worth less than cash received today.
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The following transactions occurred during the month of October 2021.
Date
Transactions
1
Balance brought forward from last month: Cash RM 295; Bank RM 4,240.
2
Cash sales RM310.
3
Took RM 200 out of the cash register and paid it into the bank
4
Farid paid us by cheque RM194.
5
We paid for postage stamps in cash RM80.
6
Bought office equipment by cheque RM310.
7
We paid Roslan by cheque RM94.
9
Received business refund by cheque RM115.
11
Withdrew RM 150 from the bank for business use.
12
Paid wages in cash RM400.
13
Cash sales RM430.
14
Paid motor expenses by cheque RM81.
16
Jamal lent us RM1,500 in cash.
20
Kamarul paid us by cheque RM174.
28
We paid general expenses in cash RM35.
30
Paid insurance by cheque RM320.
Required:
Prepare a two-columns cash book for the month of October 2021.
We must split all cash and bank transactions into different columns in order to construct a two-column cash book for the month of October 2021.
The two-column cash book for October 2021 is shown below: Specifics of the Date Money in the Bank (RM)1 Balance b/f 295 4,240 2 Cash sales 310 - 3 Cash deposited: 200 - 4 Cheques received: 194 - 5 Stamps purchased: 80 - 6 Office supplies (Cheque): 310 Payment by cheque made to Roslan for seven dollars: ninety-four 9 Check refund received: 115; 11 Cash withdrawal: 150; 12 Wages paid: 400; 13 Sales in cash 430 - 14 Vehicle expenditures (Cheque): 81 16 I received $1,500 and $20 in cash from Jamal. Cheque received from Kamarul, in the amount of 174 - 28 Expenses paid in cash for miscellaneous items: 35 to 30. Insurance (Cheque): 320 To ensure the cash book's accuracy, Cash receipts are entered in the Cash column on the left, and bank transactions are entered in the Bank column on the right. The previous month's opening balance is carried forward, and subsequent transactions are reported in accordance. We determine the closing balances for the cash and bank columns at the end of the month. Note: Some transactions in the information given do not identify whether they involve cash or a bank. Consequently, based on the information provided, I have presumed that these transactions are either cash or bank transactions.
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You invest $16,425 today and you plan to keep this investment for 15 years. If you can earn 1.25% per quarter, how much will you have after 14 years?
Given that the principal amount is $16,425 and the rate of interest per quarter is 1.25%.
We need to find the amount after 14 years.
Step 1: Calculate the number of quarters in 14 years.There are 4 quarters in a year.Therefore, the number of quarters in 14 years = 14 × 4=56 quarters
Step 2: Calculate the amount of interest earned every quarter by the principal.Amount of interest earned every quarter = (1.25/100) × 16,425= $205.3125
Step 3: Calculate the amount after 14 years.Now we use the formula to calculate the amount after 14 years, which is,
A = P (1 + r/n)^(n*t)Where, P = $16,425r = 1.25% = 0.0125
(as we need to use it in the formula) for one quarter.
n = 4 (number of quarters in a year)t = 14 years = 56 quartersA = 16,425(1 + 0.0125/4)^(4×56)
After simplifying the above expression, we get,A = $21,474.39
Therefore, the amount after 14 years is $21,474.39.
Hence, the answer is $21,474.39.
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aron, brown and claire formed a partnership business. their capital balances are: aron $100,000, brown $60,000 and claire $40,000, and the p/l ratios are: aron 20%, brown 50% and claire 30%. daniel wants to join the business with 20% interest for a total payment of $60,000. daniel paid the money directly to the partners. record the admission of daniel following the book value approach.
The adjusted capital balances after Daniel's admission following the book value approach are:
Aron: $130,480
Brown: $116,200
Claire: $67,720
Daniel: $52,400
How to calculate the valueAron's new capital balance: $100,000 + $20,000 (20% of $100,000) = $120,000
Brown's new capital balance: $60,000 + $30,000 (50% of $60,000) = $90,000
Claire's new capital balance: $40,000 + $12,000 (30% of $40,000) = $52,000
Total adjusted capital = $120,000 + $90,000 + $52,000 = $262,000
Daniel's capital contribution = Total adjusted capital * Daniel's interest
Daniel's capital contribution = $262,000 * 20% = $52,400
Aron's allocated capital = $120,000 + ($52,400 * 20%) = $120,000 + $10,480 = $130,480
Brown's allocated capital = $90,000 + ($52,400 * 50%) = $90,000 + $26,200 = $116,200
Claire's allocated capital = $52,000 + ($52,400 * 30%) = $52,000 + $15,720 = $67,720
Daniel's capital balance = Daniel's capital contribution
Daniel's capital balance = $52,400
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Q2. For You Inc. (12 Points)
a. Calculate depreciation expense
Value of ROU asset (Gross)
Lease period (months)
Depreciation per period (month)
Depreciation per year
CHECK: Does this number reconcile with change in Accumulated Depreciation?
Interest rate (per annum)
Number of payments per year
Lease period (years)
Total number of payments
Interest rate per period
Monthly payment
Lease value (PV) [Report as positive number]
Present value of lease payments
Add: Payment at inception credited to asset value
Value of ROU asset
The calculation of the depreciation expense, Value of ROU asset (Gross), Lease period (months), Depreciation per period (month), Depreciation per year, Interest rate (per annum), Number of payments per year, Lease period (years),
Total number of payments, Interest rate per period, Monthly payment, and Lease value (PV) can be done as follows:
Value of ROU asset (Gross): The Gross Value of the ROU asset is calculated by adding the initial direct cost, if any, to the present value of the lease payments. The Present value of the lease payments is the summation of the total annual lease payments discounted at the interest rate. So, PV of lease payments = $20,000 × 4.16986 = $83,397.2Value of ROU asset (Gross) = $83,397.2 + $0 (No initial direct costs) = $83,397.2Lease period (months) = Lease period in years × 12 = 5 × 12 = 60.
Depreciation per period (month) = Depreciation per year ÷ Number of payments per year= $13,899.53 ÷ 60 = $231.66Depreciation per year = (Value of ROU asset (Gross) − Residual value) ÷ Lease term= ($83,397.2 − $0) ÷ 5 = $16,679.44CHECK: The Depreciation per year and the change in Accumulated Depreciation reconcile with each other. For the first year, the Depreciation expense would be $13,899.53 and the Accumulated Depreciation would be $13,899.53Interest rate (per annum) = 7%.
Number of payments per year
= 12Lease period (years)
= 5Total number of payments
= Number of payments per year × Lease period (years)
= 12 × 5 = 60Interest rate per period
= Interest rate (per annum) ÷ Number of payments per year
= 7% ÷ 12 = 0.5833Monthly payment
= Lease value (PV) ÷ Present value of an annuity of $1 per period at i % for n periods= $83,397.2 ÷ 4.62315 = $18,019.37Lease value (PV) [Report as positive number]
= $83,397.2.
Present value of lease payments = $83,397.2Add: Payment at inception credited to asset value = $20,000Value of ROU asset = Present value of lease payments + Payment at inception credited to asset value= $83,397.2 + $20,000 = $103,397.2.
Therefore, the answer to the given question is: For You Inc. (12 Points)a.
The depreciation expense = $13,899.53 Value of ROU asset (Gross) = $83,397.2 Lease period (months) = 60 Depreciation per period (month) = $231.66 Depreciation per year = $16,679.44 CHECK:
Yes, the Depreciation per year reconciles with change in Accumulated Depreciation.
Interest rate (per annum)
= 7% Number of payments per year
= 12 Lease period (years)
= 5 Total number of payments
= 60Interest rate per period
= 0.5833 Monthly payment
= $18,019.37 Lease value (PV)
= $83,397.2Value of ROU asset
= $103,397.2.
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On June 1, 2019 Adelphi Corporation issued $370,000 of 6%, 5-year bonds. The bonds which were issued at 97, pay interest on January 1 and June 1. Use this information to calculate the amount of bond discount or premium that is amortized with each interest payment. If this is discount amortization enter as a positive number. If this is premium amortization enter as a negative number.
Discount Amortization = bond discount / number of interest payments in the bond term= $10,100 / 10= $1,010Therefore, the bond discount or premium that is amortized with each interest payment is $1,010.
Given:Adelphi Corporation issued $370,000 of 6%, 5-year bonds.Bonds issued at 97.Pay interest on January 1 and June 1. Calculation:The amount of bonds issued by Adelphi Corporation = $370,000Bonds are issued at 97% of par value, therefore bonds issued at 0.97 * $370,000= $359,900The bonds have a term of 5 years and will pay interest semiannually on January 1 and June 1.Therefore the bond interest payment is = bond par value * interest rate = $370,000 * 6% = $22,200The bond discount can be calculated by subtracting the bond price ($359,900) from the bond par value ($370,000) = $370,000 - $359,900 = $10,100Since bond issued at discount so Discount amortization is a positive number.
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professional associations do all of the following except a) pass legislation to regulate brokers and sales agents. b) keep members informed of developments in their field. c) provide a clearinghouse of information. d) improve standards and practices.
Professional associations do all of the following except: pass legislation to regulate brokers and sales agents. Thus, option A is the correct option.
Professional associations typically engage in various activities to support and represent their members, promote professional standards, and advance the interests of the profession. However, one activity that professional associations generally do not engage in is passing legislation to directly regulate brokers and sales agents. Legislative authority lies with government bodies and regulatory agencies responsible for creating and enforcing laws and regulations.
While professional associations may advocate for their members' interests and provide input to the legislative process, they do not have the power to unilaterally pass legislation. Their role is more focused on providing education, professional development, networking opportunities, setting ethical standards, offering certifications, and promoting best practices within the profession. Legislative regulation is typically the purview of government entities concerned with consumer protection and industry oversight.
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