Answer:
A. Relatively elastic
B. Relatively inelastic
C. Relatively elastic
D. Relatively elastic
E. Relatively inelastic
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes
Demand is inelastic if there's little or no change in quantity demanded when the price of the good changes.
If Consumers have a long time to adjust to a change in price, demand is usually elastic because consumers would have enough time to adjust to price changes. For example, if the price of the good has increased and the consumer has enough time to adjust to the price change, the consumer would have enough time to find cheaper suitable substitutes.
The elasticity of demand for necessities is usually inelastic because consumers have no choice but to buy the product. For example, water is considered a necessity. If the price of a bottle of water increases, consumers have no choice but to consume water so they would keep buying the bottle of water despite the increase in price.
Goods that have many substitutes usually have an elastic demand because the good can be easily replaced with the numerous substitutes available.
Goods on which consumers spend a small share of their budget usually have an inelastic demand. For example, if you earn $500,000 and you usually buy a product for 10 cents and the price increases to 15 cents, you would probably not stop purchasing the product as a result of the price increase since it constitutes a negligible part of your budget.
Goods that are narrowly defined have an elastic demand. For example, there are many substitutes for bread but there are no subsituites for food.
I hope my answer helps you
The selection process for a school teacher's job requires the applicant to keep a class of thirty students engaged in a classroom activity for an hour. The candidate is evaluated by the interviewers during this period, and the activity plays a vital role in the selection process. This is an example of which of the following types of tests?A. Physical ability test
B. Personality test
C. Ability test
D. Paper-and-pencil test
E. Performance Test
Answer:
E. Performance Test
Explanation:
Based on the scenario being described in the question it can be said that this is an example of a performance test. These are simply tests in which an individual is observed performing the tasks/actions that are required of them. Their performance is evaluated based on a predefined guideline in order to rate their efficiency. Which is what the interviewer is doing to the candidates in order to find the best individual to hire as a teacher.
Your company currently has $ 1 comma 000 par, 6 % coupon bonds with 10 years to maturity and a price of $ 1 comma 078. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months.
Answer:
The next coupon rate that is needed to set is 5.00%
Explanation:
Solution
Recall that:
Your company presently has =$1,000 par
Coupon bonds = 6%
Maturity = 10 years
The next step is to find the coupon rate that is needed or required to set.
Now,
The number of semi annuals to maturity, NPER = (10 YEARS * 2)= 20
Semiannual coupon payments, PMT = ($1000 * 6%/2) = $30
The current selling price per bond (FV) = $1078
The maturity value at the end is = $1000
The semiannual compound type, = 0 (It is 0 if compounded at the end of each semiannual and is 1 if compounded at the start of each semiannual)
Semi annual interest rate is = 2.5%
Thus,
The number of semi annuals in a year is = 2
The annual coupon rate of bonds (new) = 2/50 % * 2
= 5.00%
It is important to note that the semi annual coupon rate is computed suing the excel function rate (nper, pmt, pv, fv, type),
Whereby
PV =1078
NPR = 20
PMT =30
FV = 1000
TYPE = 0.
Assuming that Tim is 75 years old at the end of 2019 and his marginal tax rate is 32 percent, what amount of his distribution will he have remaining after taxes if he receives only a distribution of $50,000 for 2019?
Answer:
$15,300
Explanation:
Solution
Recall that:
Suppose that Tim is 75 years old at the end of 2018
The marginal tax rate here is = 32%
The distribution = $50,000
Now,
What amount of distribution he get after taxes
At 75 years of age that is the age of the participant
Distribution period = 22.9
The Applicable percentage = 4.37%; this is gotten from the table attached below
Thus,
He implies that 2,000,000 * 4.37 %
=$87,400
The less amount received = $50,000
The balance is = $87,400 = $50,000
= $37,400
Tim needs to pay tax at 32%
= 50,000 * 32%
=$16,000
The pay penalty become s =37,400 * 50% = $18,700
The total amount for tax to be paid and the penalty is = $16000 + $18700= $34,700
The amount received by Tim after tax is = $50,000 - $34700 =$15,300
The amount Tim will receive after tax is $15,300
Note: Kindly find the complete question and table as part of the solution solved below
You have learned from your training materials that the integration-responsiveness framework juxtaposes the opposing pressures for cost reductions and local responsiveness to derive four different strategies to gain and sustain competitive advantage when competing globally. Which of these four strategies has HP adopted?
Answer:
aswer is
Explanation:
because is Hp is globally science
ive years ago, NorthWest Water (NWW) issued $50,000,000 face value of 30-year bonds carrying a 14% (annual payment) coupon. NWW is now considering refunding these bonds. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would amount to $3 million. NWW's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called. Refer to the data for NorthWest Water (NWW). What is the required after-tax refunding investment outlay, i.e., the cash outlay at the time of the refunding?
Answer:
the required after-tax refunding investment Outlay is $6,200,000
Explanation:
Given that:
NorthWest Water (NWW) issued $50,000,000 face value
Time of issuance = 5 years ago
Bond = 30
Annual coupon payment = 14%
Amortizing amount of floating costs on these bonds over the 30 - year life is $3 million
Also;The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market.
Call premium = 14%
NWW's marginal tax rate is 40%
The objective from the given data set is to find the required after-tax refunding investment outlay, i.e., the cash outlay at the time of the refunding.
Initial Outlay = After tax call premium + Floatation cost - Unexpensed float cost
Initial Outlay = [tex](0.14 *50,000,000) + (1 - 0.40)+ $3,000,000 - ($3,000,000)*(\dfrac{25}{30})*0.40[/tex]
Initial Outlay [tex]=4,200,000+ 3,000,000-1,000,000[/tex]
Initial Outlay = $6,200,000
Therefore ; the required after-tax refunding investment Outlay is $6,200,000
Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines' first year depreciation under the units-of-production method.
Answer:
$25,800
Explanation:
The units-of-production deprecation method depreciates an asset based on the total units produced each year.
Unit of production depreciation expense = (units produced / total expected units of production) × (cost of asset - salvage value)
(64,500 / 300,000) x ($135,000 - $15,000)
0.215 x $120,000 = $25,800
I hope my answer helps you
Ferdinand’s employer will match 50% of his $250 monthly contributions to his 401(k). This means that Ferdinand’s employer will put 50% of $250 = $125 into Ferdinand’s 401(k) account each month in addition to Ferdinand’s $250. What a swell benefit
Answer and Explanation:
The computation of the given question is shown below:-
Total Contributions = Monthly contribution + Amount invested in Ferdinand’s 401(k)
= $250 + $125
= $375
1. Future Value = PMT [((1 + r)n - 1) ÷ r
Future value = 375 × ((1 + 0.03 ÷ 12) × 12 × 40 - 1) ÷ (0.03 ÷ 12)
= $347,272
2. Ferdinand deposit = Given Amount × Total number of months in a year × Number of years
= $250 × 12 Months × 40 Years
= $120,000
3. The Amount put in by the employer = 50% of $250 ×Total number of months in a year × Number of years
= $125 × 12 Months × 40 Years
= $60,000
4. Interest = Future value - Ferdinand deposit - The Amount put in by the employer
= $347,272 - $120,000 - $60,000
= $167,272
We simply applied the above formulas
On September 1, 2021, Daylight Donuts signed a $188,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2022. Daylight Donuts should report interest payable at December 31, 2021, in the amount of: (Do not round your intermediate calculations.)
Answer:$3,760--- Interest payable at December 31, 2021.
Explanation:
Interest payable is current liability recorded on a firm's balance sheet that shows the amount of interest which a firm owes currently but has not yet paid as of the date recorded on the of the balance sheet.
For daylight donuts
September --- December = 4 months
interest payable within the four months= $188,000 X 6% X 4/12= $3,760
Daylight Donuts should report interest payable at December 31, 2021, in the amount of $3,760
Since World War II, globalization has been driven by two major factors: the decline in barriers to the free flow of goods, services, and capital, and technological change. Business has fueled these trends and has been the beneficiary of these trends. Understanding globalization trends helps businesses identify opportunities and threats in their environment. Understanding these trends will also make the changes much more manageable. International businesses have greater flexibility, more options, and a broader scope to consider globalization of production and globalization of markets. Match the driving force to the correct description and implication for business.
a. declining trade barriers
b. technology transportation
c. declining investment barriers
d. technology computing and communication
Match each of the options above to the items below.
1. lower tariffs and increased international trade in goods and services rapid.
2. FDI growth and new production opportunities and new markets.
3. explosive growth of high-power, low-cost computing and growth in services.
4. faster and cheaper shipping and optimal production.
Answer: a to 1
b to 4
c to 2
d to 3
Explanation:
A to 1
Due to declining Trade barriers largely driven by trade agreements, countries are able to trade on a larger scale than before because goods are able to move in and out of a country with less hindrances. Tariffs are no longer as high and this has spurred companies to trade across borders to take advantage of new markets that do not increase their costs of selling.
B to 4.
With technology being applied to transportation, shipping has been made easier and faster and has also improved access to markets. Since World War II, the world has become smaller due to vessels capable for circumnavigating the world at a fraction of the time that they used to. Now vehicles like cargo planes and bullet trains can carry goods faster and at a cheaper rate thus inspiring people to keep trading.
C to 2
With Investment Barriers being lifted, entities in one country now have easier access to Investment opportunities in another. People and companies who had resources sitting ideal have now found new markets to invest in. This has improved those markets as well as giving wealth to the investors in a sort of win win situation.
D to 3
Computing since the days of the second World War and now are so Stark in difference that people then would probably view computing now as unfathomable. With this growth in computer processing, people around the world are able to trade faster and more efficiently with goods now at the tip of their fingers. Even stocks in Tokyo can easily be traded on by people in Cairo and in Alaska you can order a good from Sri Lanka. This accessibility has greatly improved trade.
Blankenship Company pays its employees every Friday for work rendered that week. The payroll is typically $10,000 per week. What journal entry would be recorded (on Wednesday) if the end of the accounting period occurred on a Wednesday
Answer:
Dr salaries expense $6,000
Cr salaries payable $6,0000
Explanation:
Since the $10,000 payroll charge on Friday is for the whole week, an appropriate adjustment for month close on a Wednesday would to recognize the amount payable to employees for that week from Monday till Wednesday as follows:
Amount of salaries owed on Wednesday=$10,000*3/5=$6,000
The appropriate entries for the above would a debit to salaries expense for $6,000 while a credit goes to salaries payable
Charleston Clothing purchased land, paying $ 110,000 cash and signing a $ 280,000 note payable. In addition, Charleston paid delinquent property tax of $ 1,400, title insurance costing $ 650, and $ 5,900 to level the land and remove an unwanted building. Record the journal entry for purchase of the land
Answer:
Dr Land 397,950
Cr Cash 117,950
Cr Notes payable 280,000
Explanation:
Certain ordinary and necessary costs can be included in the purchase cost of land:
cost of the landtitle feesapplicable taxeslegal feesbroker feessurvey costsleveling costszoning feesetc.In this case, the total purchase cost of the land = $110,000 + $280,000 + $1,400 + $650 + $5,900 = $397,950
CalculatorPrint Item On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $15,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a.$225 b.$235 c.$232 d.$222
Answer:
Option A, $225 is correct
Explanation:
The interest revenue=face value of the note*interest rate*3/12
Three months of interest revenue is due from October 1st till December 31st.
The interest revenue that Black company would recognize =$15,000*6%*3/12=$225
The correct option is A,$225 amount of interest revenue would be recorded by Black Company in the year by debiting interest receivable(pending the maturity of the note) and crediting interest revenue
Changes in reserve requirements to conduct monetary policy is generally not a good idea for the United States because:
A)it requires approval of Congress and this can take too long.
B)it takes a long time to work whereas other tools are much quicker.
C)this tool is powerful and makes it difficult for bank managers to plan for the future and manage funds as they like.
D)the United States is too large of a country to use this tool.
Answer: this tool is powerful and makes it difficult for bank managers to plan for the future and manage funds as they like.
Explanation:
Reserve requirements are the amount of money that a bank holds in its reserve to ensure that it can meet liabilities in the case of sudden withdrawals. The reserve requirement is a tool that is used by the central bank of a country to either increase or decrease the money supply in the economy and also influence interest rates.
The changes in reserve requirements to conduct monetary policy is not a good idea for the United States because it is a powerful tool which makes it hard for bank managers to make future plans and manage funds as they want. In a situation whereby small variation in the reserve ratio brings about huge changes in an economy, the changes are positive and okay but in a situation whereby they bring about negative effect, it will be hard to face such scenarios.
Computing materials variances:
D-List Calendar Company specializes in manufacturing calendars that depict obscure comedians. The company uses a standard cost system to control its costs. During one month of operations, the direct materials costs and the quantities of paper used showed the following:
Actual purchase price
$0175 per page
Standard quantity allowed for production
170,000 pages
Actual quantity purchased during month
200,000 pages
Actual quantity used during month
185,000 pages
Standard price per page
$0.17 per page
1. Total cost of purchases for the month
2. Materials price variance
3. Materials quantity variance
4. Net materials variance
Answer:
1. Total cost of purchases for the month
= actual purchases x actual price = 200,000 pages x $0.175 per page = $35,0002. Materials price variance
= (actual unit cost - standard unit cost) x actual quantity used = ($0.175 - $0.17) x 185,000 = $925 unfavorable3. Materials quantity variance
= (actual quantity used - standard quantity allowed) x standard price = (185,000 - 170,000) x $0.17 = $2,550 unfavorable
4. Net materials variance
= materials price variance + materials quantity variance = $925 + $2,550 = $3,475 unfavorableExplanation:
Actual purchase price $0.175 per page
Standard quantity allowed for production 170,000 pages
Actual quantity purchased during month 200,000 pages
Actual quantity used during month 185,000 pages
Standard price per page $0.17 per page
2. It has been mentioned that Starbucks encourages its customers to use its mobile app. What type of information might the company gather from the app to help it better plan operations
Answer:
There are several things and strategies that the company can do from gathering different types of information in the app. Some examples are explained below.
Explanation:
To begin with, the company can extract personal information about the clients like the age and area of residence and those factors can help the organization's operations plan in many ways, like for example in knowing better which is the area where the most of the clients live or which is the average age of all the clients so in that case they will know which is their target audience and how to create marketing messages to stimulate them to go to the store or to buy more products, etc.
Another example could be the likes of the customers, by knowing which is the product that they order the most then the company can implement an strategy to try to sale the other products and so on with other variables.
Here are comparative statement data for Ivanhoe Company and Pharoah Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.
2017 2016 2017 2016
(Ivanhoe (Ivanhoe (Pharoah (Pharoah
Company) Company) Company) Company)
Net sales $1,865,000 $595,000
Cost of goods sold 1,064,000 279,000
Operating expenses 252,000 84,000
Interest expense 8,000 1,800
Income tax expense 70,900 35,000
Current assets 583,495 $559,214 149,171 $142,246
Plant assets (net) 942,972 895,000 250,113 225,203
Current liabilities 118,722 135,709 63,273 54,203
Long-term liabilities 204,042 161,100 53,020 44,750
Common stock, $10 par 895,000 895,000 214,800 214,800
Retained earnings 308,703 262,405 68,192 53,696
Required:
Prepare a vertical analysis of the 2017 income statement data for Ivanhoe Company and Pharoah Company.
Answer:
Condensed Income Statement
For the Year Ended December 31, 2017
Ivanhoe Company Pharaoh Company
Net sales $1,865,000 100% $595,000 100%
Cost of goods sold ($1,064,000) 57% ($279,000) 47%
Gross profit $801,000 43% $316,000 53%
Operating expenses ($252,000) 14% ($84,000 ) 14%
EBIT $549,000 29% $232,000 39%
Interest expense ($8,000) 0.4% ($1,800 ) 0.3%
Income tax expense ($70,900) 3.8% ($35,000) 5.9%
Net income after taxes $470,100 25.2% $195,200 32.8%
A vertical analysis of an income statement uses net sales as the reference for all the other accounts. The other accounts are shown as a % of total net sales.
Gomez runs a small pottery firm. He hires one helper at $16,500 per year, pays annual rent of $6,000 for his shop, and spends $22,500 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $5,000 per year if alternatively invested. He has been offered $19,500 per year to work as a potter for a competitor. He estimates he could use his talents to earn an additional $5,500 per year in consulting fees if he were working full time as a potter. Total annual revenue from pottery sales is $89,000.Calculate the accounting profit and the economic profit for Gomez's pottery firm.
Accounting profit = ?
Economic profit = ?
Answer:
$44,000
$14,000
Explanation:
Accounting profit is total revenue less total explicit cost.
Accounting profit = Revenue - Explicit cost
Total explicit cost = $16,500 + $6,000 + $22,500 = $45,000
Total revenue = $89,000
Accounting profit = $89,000 - $45,000 = $44,000
Economic profit is accounting profit less implicit cost or opportunity cost.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Opportunity cost = $5,500 + $19,500 + $5,000 = $30,000
Economic profit = $44,000 - $30,000 = $14,000
I hope my answer helps you
The WorldLight Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical components. Management wants to determine how many units of each product to produce so as to maximize profit. For each unit of product 1, 1 unitof frame parts and 2 units of electrical components are required. For each unit of product 2, 3 units of frame parts and 2 units of electrical components are required. The company has 200 units of frame parts and 300 units of electrical components. Each unit of product 1 gives a profit of $2, and each unit of product 2, up to 70 units, gives a profit of $4. Any excess over 60 units of product 2 brings no profit, so such an excess has been ruled out. Formulate a linear programming model for this problem. Use the graphical method to solve this model. What is the resulting total profit?
Answer:
Explanation:
a) x1 = number of unit product 1 to produce , and
x2 number of unit product 2 to produce
A linear program that will maximize world light profit is the following
maximize [tex]x_1+2x_2[/tex] subject to [tex]x_1+3x_2\leq 200[/tex]
[tex]2x_1+2x_2\leq 300\\\\x_2\leq 60\\\\x_1\geq 0\\\\x_2\geq 0[/tex]
Unit 1 is used both in products in 1 : 3 ratio which can be a maximum of 200 unit 2 is used in 2 : 2 ratio which can be maximum of 300
So, this can be written as the inequations
Profit functio is p = 0ne dollar on product A and two dollar on product B
= x + 2y
Now , we find a feasible area whose extremeties will give the maximum profit for, the graph is ( see attached file )
So on the graph, we can get the other extremeties of the shaded regional so which will not give maximum profit ,
Thus , the maximum possible profit is
p = ($1 * 125) + ($2 * 25)
= $175
Total profit according to graph function is $175.
Profit function based problem:Given that;
Number of unit product 1 to produce = x1
Number of unit product 2 to produce = x2
Computation:
The following is a linear algorithm that will maximize global light profit.
x1 + 2x2 and x1 + 3x2 ≤ 200
2x1 + 2x2 ≤ 300
x2 ≤ 60
x1 ≥ 0
x2 ≥ 0
Unit 1 is used in both products in a 1: 3 ratio with a maximum of 200 units, while Unit 2 is used in a 2: 2 ratio with a maximum of 300 units.
As a result, this may be stated as inequations.
p = one dollar on product A and two dollars on product B = x + 2y is the profit function.
So,
p = ($1 × 125) + ($2 × 25)
P = 125 + 50
Profit = $175
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Elegant Limited sells restored classic cars. Most of its customers are private buyers who buy cars for themselves. However, some of them are investors who buy multiple cars and hold them for resale. All sales of Elegant Limited are for cash. Depict the association and cardinality for the sales of cars at Elegant Limited based on REA model.
Answer:
Elegant Limited
Depiction of the Association and Cardinality for the Sales of Cars based on the REA Model:
1. Association: This is about the relationships that exist among the economic elements involved in the REA model. They are Economic Resources, Economic Events, and Economic Agents. These elements interact during each business transaction in such interconnected processes that business transactions cannot be complete without any element.
For example, the economic resources during the sale of a car at Elegant Limited are 1) a car and 2) money. These are exchanged between Elegant Limited and the customer and vice versa. In the same light, an economic event takes place during the exchange of either a car or money. While a car is a physical resource (asset), money is a financial resource (asset). For each of these two events, the economic agents who must interact are the workers at Elegant Limited and the customer whether private buyers or investors.
2. Cardinality: This refers to the elements that are involved in the REA model. They are three as already described. They are Economic Resources, Economic Events, and Economic Agents. No business transaction is complete where any element is not present. So, these elements are cardinal in the relationship.
Explanation:
The REA model is an accounting system re-engineering model originally proposed by William E. McCarthy as a generalized accounting model. It contains the concepts of resources, events and agents (McCarthy 1982).
The model views accounting data collection as a system to collect data about the resources, events, and agents within business processes, thereby suggesting that the basic data collected should be about the resources, events, and agents involved in an exchange.
Which is not an example of an intangible asset?
1_A trademark
2_A computer
3_A patent
4_A copyright
An intangible asset excludes a computer. Thus the correct answer is (2).
What is an intangible asset?An intangible asset is referred to as a thing that an individual is unable to see or touch. An intangible asset is a lack of physical appearance. One can not transfer them from one location to another.
One can able touch or see a personal computer so it is not an intangible asset. Therefore, option (2) is appropriate.
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A stock sells for $50. The next dividend will be $5 per share. If the rate of return earned on reinvested funds is a constant 15% and the company reinvests a constant 20% of earnings in the firm, what must be the discount rate
Answer:
The answer is 13%
Explanation:
Solution
Recall that:
A stock sells for =$50
The next dividend is = $5 per share
The rate of return = 15%
Company reinvests a constant of =20%
What is the rate of discount = ?
Now
The first step is to calculate the rate of growth which is shown below:
g = equity return * retention rate
g = 15% * 0.2 = 3%
Thus,
The Gordon growth model is stated below:
Stock price = dividend in following year/ (discount - g)
So,
50 = 5/ (discount - g)
The discount - g = 5/50
Discount - g = 10%
The discount = 10 + 3 = 13%
Therefore the discount rate =13%
Overapplied factory overhead would result if: Group of answer choices a. Factory overhead costs incurred were greater than costs charged to production. b. The plant was operated at less than normal capacity. c. Factory overhead costs incurred were less than costs charged to production. d. Factory overhead costs incurred were unreasonably large in relation to units produced.
Answer:
c. Factory overhead costs incurred were less than costs charged to production.
Explanation:
An overapplied factory overhead represents the excess amount of overhead used during a manufacturing period compared to the actual overhead incurred during the production or manufacturing period.
Simply stated, an overapplied factory overhead is the amount by which the estimated overhead is above the actual overhead incurred by a factor in the course of production.
Hence, an overapplied factory overhead would result if factory overhead costs incurred were less than costs charged to production.
This simply means that, if the factory overhead cost actually incurred in a production period is less than the estimated factory overhead cost applied, this is an overapplied factory overhead. If reverse of the above is the case, then it is referred to as underapplied factory overhead.
Additionally, if the difference between the two overhead cost is negative, then it is an overapplied factory overhead.
Fox Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,150 2 1,030 3 1,520 4 1,880 a. If the discount rate is 11 percent, what is the present value of these cash flows
Answer:
The answer is $4,221.77
Explanation:
Present value = Cash flow/(1+r)^n
where n is the number of years
Cash flow 1:
$1,150/1.11^1
=$1,036
Cash flow 2:
$1,030/1.11^2
=$835.97
Cash flow 3:
$1,520/1.11^3
=$1,111.41
Cash flow 4::
$1,880/1.11^4
=$1,238.39
Present Value of all the cash flows is
$1,036 + $835.97 + $1,111.41 + $1,238.39
=$4,221.77
People are willing to pay more for a diamond than for a bottle of water because a. the marginal benefit of an extra diamond far exceeds the marginal benefit of an extra bottle of water. b. producers of diamonds have a much greater ability to manipulate diamond prices than producers of water have to manipulate water prices. c. the marginal cost of producing an extra diamond far exceeds the marginal cost of producing an extra bottle of water. d. water prices are held artificially low by governments, since water is necessary for life.
Answer:
the marginal benefit of an extra diamond far exceeds the marginal benefit of an extra bottle of water.
Explanation:
The paradox of value also known as the diamond–water paradox stares that although water is more useful than diamond because it is needed for survival, diamonds are more expensive than water. This is so because the marginal value of a diamond is higher than the marginal value of water.
I hope my answer helps you
By law, the financial records of publicly held companies are required to be:________.
A) Managed by an accounting department of at least five CPAs.
B) Summarized in the employee manual for new hires.
C) Reviewed quarterly by the IRS.
D) Audited by a certified professional accounting firm.
Answer:
D) Audited by a certified professional accounting firm.
Explanation:
The Securities and Exchange Commission (SEC) requires that publicly traded corporations file audited quarterly financial reports and annual audited financial reports. The Sarbanes-Oxley Act (2002) is the law that established the current external auditing rules imposed by the SEC. It also established legal responsibilities for CEOs and CFOs regarding the financial statements. If they fail to meet them or provide false information, they may face criminal charges and end in jail.
The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 110,500 fans. Assume the stadium sells out all six home games before the season begins, and the athletic department collects $86.19 million in ticket sales. Required: 1. What is the average price per season ticket and average price per individual game ticket sold
Answer:
The average price per season ticket is $780
The average price per individual game ticket is $130
Explanation:
The season involves 6 home games. Thus, a season ticket entitles you to attend six home games. The capacity of the stadium is 110500 fans per game. Thus, for a season of 6 games, the number of total fans to attend will be,
Season total attendance = 6 *110500 = 663000 fans
Average ticket price per game will be = 86,190,000 / 663,000
Average ticket price per game will be = $130
As the season involves 6 games and the average ticket price per game is $130, the average price per season ticket will be,
Average price per season ticket = 130 * 6 = $780
Entry for Factory Labor Costs A summary of the time tickets is as follows: Job No. Amount 100 $3,460 101 2,870 104 5,260 108 5,950 Indirect 18,440 111 3,630 115 2,380 117 16,120 Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
Answer:
DR Work in Progress Account $39,650
DR Factory Overhead Account $18,440
CR Wages Payable $58,090
(To record factory Labor Costs)
Workings
Work in Progress
Standard policy is to send the direct cost of Labor to the Work in Progress Account.
The Total direct cost of labor are all of the above except the Indirect cost.
= 3,460 + 2,870 + 5,260 + 5,950 + 3,630 + 2,380 + 16,120
= $39,650
Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 22% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?
a. $32.69
b. $26.57
c. $27.37
d. $28.97
e. $23.39
Answer:
Option B ,$26.57 is correct
Explanation:
The cost of equity =Rf+Beta*Mrp
Rf is the risk free rate of 3.00%
Beta of equity is 1.20
Mrp is the market risk premium which is 5.50%
Cost of equity=3.00%+(1.20*5.50%)=9.60%
Stock price =present value of dividends+present value of terminal value
D1=$1.25*(1+22%)/(1+9.6%)^1=$ 1.39
D2=$1.25*(1+22%)^2/(1+9.6%)^2=$ 1.55
D3=$1.25*(1+22%)^3/(1+9.6%)^3=$ 1.72
D4=$1.25*(1+22%)^4/(1+9.6%)^4=$ 1.92
terminal value=year 4 dividend/(r-g)
year 4 dividend=$1.25*(1+22%)^4= 2.77
r is the cost of equity of 9.6%
g is the dividend afer year 4 which is 0%
terminal value= 2.77/(9.6%-0%)=$ 28.85
present value of terminal value= 28.85/(1+9.6%)^4=$ 19.99
Total present values=$ 1.39+$ 1.72+$ 1.92 +$ 1.92 +$ 19.99 =$26.58
According to the question Option B ,$26.57 is correct
How to calculate of common stock?When The cost of equity = [tex]Rf+Beta "/times" Mrp[/tex]
After that, Rf is the risk free rate of 3.00%
then Beta of equity is[tex]1.20[/tex]
After that Mrp is the market risk premium which is 5.50%
So that, Cost of equity 3.00%+(1.20*5.50%)=9.60% = 9.60%
Then The Stock price is = present value of dividends + present value of terminal value
Now, D1 is = $[tex]1.25 "/times" (1+22[/tex]%[tex])/(1+9.6[/tex]%)^[tex]1=$ 1.39[/tex]
Then, D2 is = $[tex]1.25 "/times" (1+22[/tex]%[tex])^2/(1+9.6[/tex]%)^[tex]2=$ 1.55[/tex]
Then D3 is = $1.25 "/times" (1+22%)^3/(1+9.6%)^3=$ 1.72
After that D4 is = $[tex]1.25*(1+22[/tex]%[tex])^4/(1+9.6[/tex]%)^[tex]4=$ 1.92[/tex]
Then the terminal value is = year 4 dividend/(r-g)
Then year 4 dividend is = $[tex]1.25×(1+22[/tex]%)^4= 2.77
Then r is the cost of equity of 9.6%
Now, g is the dividend after year 4 which is 0%
After that terminal value is = 2.77/(9.6%-0%)=$ 28.85
Then present value of terminal value is = [tex]28.85/(1+9.6[/tex]%)^4=$ 19.99
Thus, The Total present values is =$ [tex]1.39+$ 1.72+$ 1.92 +$ 1.92 +$ 19.99[/tex] =$26.57
Therefore Option B is $26.57
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Ans:
5. Abena travelled 40% of the distance of her trip alone, went another 35 miles with Saralyn,
and then finished the last half of the journey alone. How many miles long was the journey?
Ans:
miles
6. The mean of the data set (9,5,7, 2, x} is twice the data set (8,x, 4,1,3}. What is (y - x)2?
Ans:
UGRC 120: Numeracy Skills
Page 5 of 8
Answer:
5) 350 miles
Explanation:
5)
40% + 35 miles = 50%
=> 50% - 40% = 35 miles = 10%
=> 100% = 35 * (100% / 10%) = 35 * 10 = 350 miles
A person has a poor credit score due mainly to the amount of debt on credit card and instalment loans. How could the person improve his score.
Answer: The answer is provided below
Explanation:
The credit score is a number used by lenders to help them decide the likelihood of an individual to repay on time if the person is granted a credit card or a loan. The higher the scores, the likelihood that the person qualifies for credit cards and loans.
A person that has a poor credit score due to the amount of debt on credit card and instalment loans can improve his or her score by paying off the debt. When an individual pays of his or her debt, the person will have an improved credit score which can be used to apply for further loans.
Furthermore, such individual can also keep his or her balances low on the credit cards. A credit card with high debts doesn't represent the individual well when applying for a loan which will lead to a negative credit score.
