the board of directors of dean foods declares that owners of its stock will now have three times as many shares. this is called a

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Answer 1

The action taken by the board of directors of Dean Foods is called a stock split. A stock split is a corporate action that increases the number of shares outstanding while reducing their value proportionally.

In this case, the owners of Dean Foods stock will receive three times as many shares as they previously had, but the value of each individual share will be reduced by a factor of three.

Stock splits are often used by companies to make their shares more affordable and accessible to investors. By reducing the price of individual shares, more investors may be attracted to purchase shares and increase demand for the stock. In addition, a stock split can also increase liquidity in the market, making it easier for investors to buy and sell shares.

Overall, a stock split does not change the underlying value of a company, but it can have implications for individual investors who hold shares. It is important for investors to understand the reasons behind a stock split and how it may affect their investment strategy.

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Related Questions

Organizations periodically turn to _______ to meet demands for talent brought about by business growth, a desire for fresh ideas, or to replace employees who leave.

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Organizations periodically turn to external recruitment to meet demands for talent brought about by business growth, a desire for fresh ideas, or to replace employees who leave.

External recruitment involves seeking qualified candidates outside the organization to fill vacant positions. This process begins with identifying the job requirements and skills needed for the position. Next, the organization advertises the job opening through various channels such as job boards, social media, or recruitment agencies. Following this, they screen applications and select candidates for interviews, which helps to assess their fit for the role.

External recruitment has several benefits. Firstly, it brings fresh perspectives and ideas into the organization, fostering innovation and creativity. Additionally, it helps to acquire specialized skills or expertise that may not be available within the current workforce. This approach also enables organizations to diversify their employee base, promoting a more inclusive work environment.

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For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Present Value Years Interest Rate Future Value
$ 2,750 10 14 % $
9,752 8 8 86,355 15 13 193,796 6 5

Answers

The future value for the given present value, years, and interest rate are $9,098.78, $17,822.97, $479,104.17, and $260,223.10 respectively.

To compute the future value, we can use the formula:

Future Value = Present Value x (1 + Interest Rate)[tex]^Years[/tex]

Using this formula, we can find the future value for each given present value, years, and interest rate:

Future Value = 2,750 x (1 + 0.14)¹⁰ = $9,098.78

Future Value = 9,752 x (1 + 0.08)⁸ = $17,822.97

Future Value = 86,355 x (1 + 0.13)¹⁵ = $479,104.17

Future Value = 193,796 x (1 + 0.05)⁶ = $260,223.10

Therefore, the future value for the given present value, years, and interest rate are $9,098.78, $17,822.97, $479,104.17, and $260,223.10 respectively.

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Which of the following would be a field in a database? Select all that applya.) 63.2%b.) Genderc.) Salesd.) 19943-5568

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The fields in a database are typically used to store and organize data. Based on the options provided, the following would be considered fields:

The option "63.2%" is not a field on its own, but could potentially be a value within a field such as "Percentage Increase".

A database is an organized collection of data stored and accessed electronically. It typically includes one or more tables, each consisting of rows and columns that hold related data. A field in a database is a column that represents a specific piece of information, such as a name, date, or number.

A database is an organized collection of structured data or information, typically stored electronically in a computer system. It is designed to manage, store, and retrieve large amounts of data easily and efficiently. A database is made up of one or more tables, which contain records of information about specific entities or objects, such as customers, employees, or products.

Each table in a database consists of columns and rows. Columns represent the specific data elements or attributes of the entity, such as name, address, and phone number. Rows represent individual records or instances of the entity, containing data specific to that instance. A database management system (DBMS) is used to create, modify, and manage the data in the database.

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using the liquidity-preference model, the federal reserve can react to the threat of exceedingly high inflation via monetary policy by shifting the supply of money to the: multiple choice left with contractionary monetary policy, increasing the interest rate and raising the equilibrium quantity of money. left with contractionary monetary policy, increasing the interest rate and lowering the equilibrium quantity of money. right with expansionary monetary policy, increasing the interest rate and lowering the equilibrium quantity of money. right with contractionary monetary policy, decreasing the interest rate and lowering the equilibrium quantity of money.

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The answer is left with contractionary monetary policy, increasing the interest rate and lowering the equilibrium quantity of money.

The liquidity-preference model suggests that individuals hold money because it provides liquidity and is a store of value. As inflation rises, people may begin to lose confidence in their currency and seek to convert it into other assets

. To combat this, the Federal Reserve can use monetary policy to shift the supply of money. In the case of exceedingly high inflation, the Federal Reserve would likely implement contractionary monetary policy, which involves decreasing the supply of money through actions such as selling government securities and increasing the reserve requirements for banks.

This leads to an increase in the interest rate and a decrease in the equilibrium quantity of money. By increasing the interest rate, the Federal Reserve can encourage people to hold onto their money rather than spending it or investing it elsewhere. This helps to slow down the rate of inflation and stabilize the economy.

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bioware company reports cost of goods sold of $42,000. its comparative balance sheet shows that inventory decreased $7,000 and accounts payable increased $5,000. compute cash payments to suppliers using the direct method.

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The cash payments to suppliers made by the Bioware company would be $30,000.

To compute cash payments to suppliers using the direct method, we need to consider the changes in inventory and accounts payable. The decrease in inventory implies that the company sold goods worth $7,000 less than the cost of goods sold. On the other hand, the increase in accounts payable indicates that the company purchased goods worth $5,000 more than what it paid in cash. Therefore, to calculate cash payments to suppliers, we need to adjust the cost of goods sold by adding the decrease in inventory and subtracting the increase in accounts payable.

Adjusted Cost of Goods Sold = Cost of Goods Sold + Decrease in Inventory - Increase in Accounts Payable
Adjusted Cost of Goods Sold = $42,000 + (-$7,000) - $5,000
Adjusted Cost of Goods Sold = $30,000

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Which of the following represents the change in total cost that results from a one-unit increase in
production?
A. Marginal profit.
B. Total revenue.
C. Marginal cost.
D. Marginal revenue

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Option c:  The following represents the change in total cost that results from a one-unit increase in production is marginal cost.

The difference in total cost of production caused by creating or producing additional units is known in economics as marginal cost. Divide the change in production cost by the change in quantity to get the marginal cost. The goal of marginal cost analysis is to find the points at which an organization can achieve economies of scale to improve production and overall operations.

A producer can make a profit if the marginal cost of producing additional units is lower than the price per unit. The total cost of producing an additional good is called marginal cost. Therefore, it can be evaluated by the change in cost associated with each additional unit.

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tells managers how much of the total variance is due to using a greater or lesser amount of time being worked than anticipated

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The measure that tells managers how much of the total variance is due to using a greater or lesser amount of time being worked than anticipated is called the "labor efficiency variance."

Labor efficiency variance is a measure of the difference between the actual hours worked by employees and the standard hours that were planned for a particular production process. It is calculated by multiplying the difference between the actual hours worked and the standard hours by the standard labor rate.

For example, if the standard labor rate is $20 per hour, and the standard hours for a particular production process are 100, then the total labor cost for that process would be $2,000 (100 x $20). If the actual hours worked by the employees were 90, then the labor efficiency variance would be calculated as follows:

Labor efficiency variance = (standard hours - actual hours) x standard labor rate

Labor efficiency variance = (100 - 90) x $20

Labor efficiency variance = 10 x $20

Labor efficiency variance = $200 (favorable)

In this example, the labor efficiency variance is $200 favorable, which means that the employees were able to complete the production process using fewer hours than expected. Conversely, if the actual hours worked were more than the standard hours, the labor efficiency variance would be unfavorable.

Managers can use labor efficiency variance to identify areas where they can improve labor productivity, such as providing additional training or improving the production process to reduce the time needed to complete a task.

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EXPLAIN

tells managers how much of the total variance is due to using a greater or lesser amount of time being worked than anticipated

if companies didn't have the foreign exchange market, trade and investment between countries would not have a basis to work from and companies would have to rely on

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Without the foreign currency market, businesses would be forced to engage in bartering in order to conduct international commerce and investment.

The foreign currency market plays a significant role in both the global economy and society. They enable currency conversions, allowing international trade (across borders), which might involve financial transactions, investments, and the exchange of commodities and services.

Changes in the demand for exports and imports are the primary way that the exchange rate has an impact on the actual economy. A genuine devaluation of the home currency increases demand for items made domestically by making exports more competitive overseas and imports less competitive domestically.

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the weighted average of the payoffs for a chance node is known as thegroup of answer choicesrisk measure.expected value.median value.variance of the node. flag question: question 22

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The weighted average of the payoffs for a chance node is known as the expected value. So, correct option is B.

In decision analysis and probability theory, a chance node represents a point in a decision tree where the outcome is uncertain, and multiple possible outcomes are associated with different probabilities. The expected value is a measure of the central tendency of the possible outcomes of a chance node.

To calculate the expected value of a chance node, one multiplies each possible outcome by its probability of occurrence and then adds up all these products. The result is the weighted average of the payoffs for the chance node.

This expected value can be used as a basis for decision-making, as it represents the average outcome that can be expected from the uncertain event represented by the chance node.

The expected value is a commonly used risk assessment tool and is a useful measure for decision-making under uncertainty. However, it is important to note that the expected value may not always accurately represent the potential outcomes, as it does not take into account the range of possible outcomes or their variability.

So, correct option is B.

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Complete question is:

the weighted average of the payoffs for a chance node is known as the

group of answer choices

a) risk measure.

b) expected value.

c) median value.

d) variance of the node.

The law of one price posits that ability to arbitrage would force prices of identical goods to trade at equal prices. however, empirical evidence suggests that _____________ are often mispriced.

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The law of one price posits that ability to arbitrage would force prices of identical goods to trade at equal prices. However, empirical evidence suggests that certain factors such as transaction costs, transportation costs, and trade barriers are often mispriced.

These factors can hinder the ability to arbitrage and prevent prices from converging to the same level. Additionally, market inefficiencies and information asymmetry can also contribute to mispricing of identical goods.

Transaction costs. The costs related to the economic exchange behind trade. It can include the gathering of information, negotiating, and enforcing contracts, letters of credit, and transactions, including monetary exchange rates, if a transaction takes place in another currency. Transactions taking place within a corporation are commonly lower than for transactions taking place between corporations. Still, with e-commerce and e-documentation, they have declined substantially.

Transport costs. The full costs of shipping goods from the point of production to the point of consumption. Containerization, intermodal transportation, and economies of scale have reduced transport costs significantly.

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each of the following factors may cause a corporation to lower its dividend payout ratio except a. the corporation's retained earnings balance is high. b. current common shareholders are unable to participate in new equity offerings. c. the corporation's earnings predictability is high. d. the corporation's current and quick ratios are higher than industry average.

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Factors a, b, and c may cause a corporation to lower its dividend payout ratio, while factor d would not.

a) If a corporation's retained earnings balance is high, they may choose to reinvest those earnings back into the company rather than distribute them as dividends. This can help the company grow and potentially increase future dividends.

b) If current common shareholders are unable to participate in new equity offerings, the company may choose to lower its dividend payout ratio to conserve cash and avoid diluting the value of existing shares.

c) If a corporation's earnings predictability is high, they may feel more confident in their ability to maintain consistent earnings in the future and therefore may choose to lower their dividend payout ratio to invest in growth opportunities.

d) If a corporation's current and quick ratios are higher than industry average, this indicates that the company has strong liquidity and can easily meet its short-term obligations. This factor would not necessarily cause a corporation to lower its dividend payout ratio.

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Companies should not just strive to make content, but also get engagement to such content. Which among the following was NOT discussed as a means to generate engagement?
a.Creating entertaining content b.Creating relevant content c.Creating content that is suitable to the medium used
d.Content that is long and exhaustive â

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The question states that companies should not just strive to create content but also to get engagement to such content. The question then asks which among the options was not discussed as a means to generate engagement. Option d is the answer to the question as it was not discussed as a means to generate engagement.

Option a, creating entertaining content, is a common strategy used by companies to generate engagement. Entertaining content can capture the audience's attention, keep them engaged, and encourage them to share the content.

Option b, creating relevant content, is another strategy used by companies to generate engagement. Relevant content can address the audience's needs, answer their questions, or provide solutions to their problems. This can increase engagement as the audience is more likely to interact with and share content that they find relevant.

Option c, creating content that is suitable to the medium used, is also an important strategy for generating engagement. Different platforms and mediums have different requirements and expectations. Creating content that is tailored to the platform or medium can help companies reach their target audience more effectively, leading to higher engagement.

Option d, content that is long and exhaustive, was not discussed as a means to generate engagement. While creating in-depth and informative content can be valuable, it is not always necessary or desirable to make content long and exhaustive to generate engagement. In fact, some audiences may prefer shorter, more concise content that is easier to consume and share.

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Complete Question

Companies should not just strive to make content, but also get engagement to such content. Which among the following was NOT discussed as a means to generate engagement?

a. Creating entertaining content

b. Creating relevant content

c. Creating content that is suitable to the medium used

d. Content that is long and exhaustive

a company issued 7%, 5-year bonds with a par value of $100,000. the market rate when the bonds were issued was 7.5%. the company received $97,948 cash for the bonds. using the effective interest method, compute the amount of interest expense for the second semiannual interest period (round to 2 decimals). multiple choice $3,500.00. $3,679.54. $3,673.01. $7,000.00. $7,346.03.

Answers

The semiannual-interest payment is $7,000 ÷ 2 = $3,500 . the second semiannual interest-period $3,673.01

The bond's-carrying value is the present value of the remaining cash flows discounted at the marke- rate at the time of issuance. Since the market rate was 7.5% and the coupon rate was 7%, the bond was issued at a discount.

PV of remaining cash flows = semiannual interest payment × [1 - 1 / (1 + market rate / 2²] / (market rate / 2) + principal payment / (1 + market rate / 2)²

PV of remaining cash flows[tex]= $3,500 × [1 - 1 / (1 + 7.5%[/tex][tex]/ 2)^(9 - 1)] / (7.5%[/tex][tex]/ 2) + $100,000 / (1 + 7.5%[/tex][tex]/ 2)^(9 - 1)[/tex]

PV of remaining cash flows = $88,540.62

Therefore, the bond carrying value after the first interest payment is $88,540.62.

The interest expense for the second semiannual interest period is the difference between the carrying value at the beginning of the period and the carrying value at the end of the period, plus any cash interest paid during the period. We can calculate the carrying value at the end of the period by discounting the remaining cash flows at the market rate at the time of issuance.

Carrying value at the end of the period = semiannual interest payment × [1 - 1÷ (1 + market rate ÷ 2)²+ principal payment÷ (1 + market rate÷ 2)²

Carrying value at the end of the period[tex]= $3,500 × [1 - 1 / (1 + 7.5%[/tex][tex]/ 2)^(9 - 2)] / (7.5%[/tex][tex]/ 2) + $100,000 / (1 + 7.5% / 2)^(9 - 2)[/tex][tex])[/tex]

[tex]Carrying value at the end of the period = $89,223.63[/tex]

Interest expense = carrying value at the beginning of the period - carrying value at the end of the period + cash interest paid during the period

[tex]Interest expense = $88,540.62 - $89,223.63 + $3,500[/tex]

[tex]Interest expense = $3,673.01[/tex]

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complete question:

a company issued 7%, 5-year bonds with a par value of $100,000. the market rate when the bonds were issued was 7.5%. the company received $97,948 cash for the bonds. using the effective interest method, compute the amount of interest expense for the second semiannual interest period (round to 2 decimals). multiple choice $3,500.00.

$3,679.54.

$3,673.01.

$7,000.00.

$7,346.03.

a manufacturer makes 7,900,000 memory chips per year. each chip takes 0.4 minutes of direct labor at the rate of $8 per hour. the overhead costs are estimated at $11 per direct labor hour. a new process will reduce the unit production time by 0.01 minutes. if the overhead cost will be reduced by $5.50 for each hour by which total direct hours are reduced, what is the maximum amount you will pay for the new process? assume that the new process must pay for itself by the end of the first year. (2.4)

Answers

The maximum amount to pay for the new process is $67,455.15, which is the cost savings for the first year. If the cost of the new process is less than this amount, it is worth implementing, and if it is more, it is not worth implementing.

To calculate the maximum amount you will pay for the new process, you need to determine the cost savings that will result from implementing the new process and compare it to the cost of the new process itself.

First, let's calculate the cost of producing the memory chips using the current process. The direct labor cost per chip is 0.4/60 x $8 = $0.0533. The total direct labor cost for producing 7,900,000 chips is $421,070. Overhead costs are estimated at $11 per direct labor hour, so the total overhead cost for producing the chips is 7,900,000 x 0.4/60 x $11 = $464,533. Therefore, the total cost of producing the chips using the current process is $421,070 + $464,533 = $885,603.

Next, let's calculate the cost savings that will result from the new process. The new process will reduce the unit production time by 0.01 minutes, which means the new direct labor cost per chip will be 0.39/60 x $8 = $0.052. The total direct labor cost for producing 7,900,000 chips using the new process will be $410,905. The overhead cost will also be reduced because of the reduction in direct labor hours.

The reduction in overhead cost will be $5.50 per hour for each hour by which the total direct labor hours are reduced. The total direct labor hours saved will be 7,900,000 x 0.01/60 = 1,316.67 hours. Therefore, the overhead cost savings will be $5.50 x 1,316.67 = $7,241.85. The total cost savings from the new process will be $421,070 + $464,533 - ($410,905 + $7,241.85) = $67,455.15.

Finally, since the new process must pay for itself by the end of the first year, the maximum amount you should pay for the new process is equal to the cost savings for the first year. Therefore, the maximum amount you should pay for the new process is $67,455.15. If the cost of the new process is less than $67,455.15, then it is worth implementing the new process. If the cost of the new process is more than $67,455.15, then it is not worth implementing the new process.

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In continuous reconfiguration in the transient advantage economyhow can an organization be both flexible and stable?

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In the transient advantage economy, where disruption is the new norm, organizations must be both flexible and stable to survive.

Continuous reconfiguration is the key to achieving this balance. This means that an organization must have the ability to adapt quickly to changing circumstances while maintaining a stable core that defines its identity and purpose.

To achieve flexibility, organizations must foster a culture of innovation and experimentation. They must be willing to take risks, test new ideas, and learn from failures. They must also be agile, able to pivot quickly in response to changing market conditions or customer needs.

At the same time, organizations must maintain stability by investing in their core competencies and preserving their values and culture. This means having clear strategic goals and a strong sense of purpose that guides decision-making. It also means cultivating a sense of continuity and trust among employees and stakeholders.

Ultimately, an organization that is both flexible and stable is one that can navigate uncertainty and volatility with confidence, leveraging change as an opportunity for growth and innovation.

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a machine with a cost of $166,000 and accumulated depreciation of $103,000 is sold for $54,400 cash. the amount of the loss related to the sale of this machine should be reported in the operating section under the indirect method is:

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The amount of the loss related to the sale of the machine should be reported as $8,600 in the operating section under the indirect method.

The loss on the sale of the machine is calculated as the difference between the net book value (cost minus accumulated depreciation) and the selling price. In this case, the net book value of the machine is.

cost - accumulated depreciation

= $166,000 - $103,000

= $63,000,

and the selling price is $54,400. Therefore, the loss on the sale of the machine is,

= $63,000 - $54,400

= $8,600, and this amount should be added back to net income in the operating section under the indirect method to arrive at cash flows from operating activities.

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mohan promotions has three divisions. the cfo requested that each division submit its capital budgeting proposals for next year. these proposals represent positive net present value projects that fall within the long-range plans of the firm. the requests from the divisions are $3.3 million, $4.7 million, and $5.1 million. for the firm as a whole, management has limited spending to $10 million for new projects next year even though the firm could afford additional investments. this is an example of what

Answers

This scenario involving Mohan Promotions and its three divisions submitting capital budgeting proposals for next year is an example of capital rationing. Capital rationing occurs when a firm place limits on the amount of funds available for investment in new projects, despite having additional profitable opportunities.

In this case, the divisions have requested a total of $13.1 million ($3.3 million, $4.7 million, and $5.1 million) for their respective projects, which are all positive net present value projects that align with the firm's long-term plans.

However, the firm's management has decided to limit the spending for new projects to only $10 million next year, even though they could afford additional investments. This restriction is due to various factors, such as preserving financial stability, managing risk, or maintaining an appropriate debt-to-equity ratio.

As a result, Mohan Promotions must prioritize and allocate the limited funds among the projects in the most efficient way possible. The company needs to carefully evaluate and compare the potential returns and risks associated with each project to ensure that the selected investments maximize shareholder value within the constraints of the budget.

In summary, this situation is an example of capital rationing, a financial management approach where a firm restricts the total investment in new projects even if there are additional profitable opportunities.

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a company reported interest expense of $530,000 for the year. interest payable was $34,000 and $74,000 at the beginning and the end of the year, respectively. what was the amount of interest paid?

Answers

The amount of interest paid by the company during the year was $490,000.

To calculate the amount of interest paid by the company during the year, we need to use the following formula:
Interest Paid = Interest Expense + Beginning Interest Payable - Ending Interest Payable

Plugging in the given values, we get:
Interest Paid = $530,000 + $34,000 - $74,000
Interest Paid = $490,000

Therefore, the amount of interest paid by the company during the year was $490,000.

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When a customer redeems a gift card that was previously purchased from a company, the transaction used to record the redemption by the company would include.

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When a customer redeems a gift card that was previously purchased from a company, the transaction used to record the redemption by the company would include a debit to the gift card liability account and a credit to the revenue account.

This is because the company no longer owes the customer the value of the gift card and has earned revenue from the sale of the gift card. When a customer redeems a gift card that was previously purchased from a company, the transaction used to record the redemption by the company would include: 1. Debiting the gift card liability account: This reduces the liability on the company's balance sheet as the customer is using the gift card and the company no longer owes them the value of the gift card. 2. Crediting the revenue account: This recognizes the revenue generated from the redemption of the gift card. The company can now record the revenue from the sale, as the customer has redeemed the gift card and received the goods or services in exchange.

To summarize, the transaction used to record the redemption of a gift card by a company would include debiting the gift card liability account and crediting the revenue account.

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suppose that mick and cher are the only two members of society and are willing to pay $10 and $8, respectively, for the 3rd unit of a public good. also, assume that the marginal cost of the 3rd unit is $17. we can conclude that

Answers

In this scenario, the total willingness to pay for the 3rd unit of the public good is $18 ($10 from Mick and $8 from Cher).

However, the marginal cost of producing the 3rd unit is $17, which is higher than the total willingness to pay. This suggests that the 3rd unit of the public good should not be produced as it would result in a net loss.

To maximize social welfare, public goods should be produced up to the point where the marginal cost equals the sum of individuals' marginal willingness to pay. In this case, only the first two units of the public good should be produced since the marginal cost of producing those units is lower than the total willingness to pay for them.

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The relative form of purchasing power parity (PPP) accounts for the possibility of market imperfections such as transportation costs, tariffs, and quotas in establishing a relationship between inflation rates and exchange rate changes. T/F?

Answers

The statement "relative form of purchasing power parity (PPP) accounts for the possibility of market imperfections such as transportation costs, tariffs, and quotas in establishing a relationship between inflation rates and exchange rate changes" is true.

This form of PPP states that changes in the exchange rate between two currencies will be equal to the difference in inflation rates between the two countries, adjusted for any market imperfections. This means that if one country has higher inflation than another, its currency should depreciate relative to the other country's currency.

For example, if Country A has an inflation rate of 5% and Country B has an inflation rate of 2%, the relative form of PPP predicts that Country A's currency should depreciate by 3% relative to Country B's currency.

However, if there are market imperfections such as transportation costs or trade barriers, the actual exchange rate changes may differ from what PPP predicts.

In summary, the relative form of purchasing power parity accounts for market imperfections by adjusting the traditional PPP concept to predict exchange rate changes based on the difference in inflation rates between two countries.

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morrell company produces several products from processing krypton, a rare mineral. material and processing costs total $30,000 per ton, one-third of which are allocated to the product merifulon. the merifulon produced from a ton of krypton can either be sold at the split-off point, or processed further at a cost of $13,000 and then sold for $60,000. the sales value of merifulon at the split-off point is $40,000. required: should merifulon be processed further or sold at the split-off point?

Answers

The additional processing results in an increase in profit by $7,000 per ton.

Morrell Company faces a decision whether to sell its product, Merifulon, at the split-off point or process it further before selling. To make this decision, we need to compare the additional costs of further processing to the increase in sales value.

First, let's determine the cost of Merifulon at the split-off point:
Total processing costs per ton of Krypton = $30,000
Allocation to Merifulon = 1/3 * $30,000 = $10,000

At the split-off point, Merifulon can be sold for $40,000, giving a profit of:
$40,000 (sales value) - $10,000 (allocated cost) = $30,000

If Merifulon is processed further, the additional cost is $13,000. The sales value after further processing is $60,000. The profit in this case would be:
$60,000 (sales value) - $10,000 (allocated cost) - $13,000 (additional processing cost) = $37,000

Since the profit from selling Merifulon after further processing ($37,000) is higher than the profit from selling it at the split-off point ($30,000), Morrell Company should process Merifulon further before selling it.

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bond sam and bond dave both have 9 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. bond sam bond has three years to maturity, whereas the bond dave bond has 16 years to maturity. if interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) if interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then? (do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

The percentage change in the price of the bonds when interest rates rise or fall can be calculated using the bond price formula, which takes into account the coupon rate, time to maturity, and current market interest rate.

To calculate the percentage change in the price of the bonds when interest rates rise or fall, we need to use the bond price formula:

Bond Price = (Coupon Payment / (1 + r/2)^n) + (Coupon Payment / (1 + r/2)^(n-1)) + ... + (Coupon Payment + Face Value / (1 + r/2)^(n-1))

where r is the market interest rate, n is the number of semiannual periods until maturity, and the coupon payment is calculated as the coupon rate multiplied by the face value of the bond.

For Bond Sam with a coupon rate of 9%, semiannual payments, and three years to maturity, the formula becomes:

Bond Price = (45 / (1 + r/2)^6) + (45 / (1 + r/2)^5) + (1045 / (1 + r/2)^6)

where 45 is half of the annual coupon payment (9% of the face value), and 1045 is the face value of the bond.

Similarly, for Bond Dave with a coupon rate of 9%, semiannual payments, and sixteen years to maturity, the formula becomes:

Bond Price = (45 / (1 + r/2)^32) + (45 / (1 + r/2)^31) + ... + (45 / (1 + r/2)^1) + (1045 / (1 + r/2)^32)

where there are 32 semiannual periods until maturity.

Now, to calculate the percentage change in the price of the bonds when interest rates rise by 2%, we need to plug in r + 0.02 into the bond price formula and subtract the original price, then divide by the original price and multiply by 100. Similarly, to calculate the percentage change when interest rates fall by 2%, we need to plug in r - 0.02 and repeat the calculation. Here are the results:

- When interest rates rise by 2%, the percentage change in the price of Bond Sam is -14.88% and the percentage change in the price of Bond Dave is -42.73%.
- When interest rates fall by 2%, the percentage change in the price of Bond Sam is 17.07% and the percentage change in the price of Bond Dave is 46.99%.

Note that the negative sign indicates a decrease in bond prices, while the positive sign indicates an increase in bond prices. The larger percentage change for Bond Dave reflects its longer time to maturity and higher sensitivity to interest rate changes.

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In the context of the performance-appraisal process in an organization, which of the following is a role of the organization?
a. Collecting information about employee behaviors and translating that information into ratings
b. Considering the context in which employee performance occurs so that any extenuating conditions can be taken into consideration
c. Ensuring that clear and specific performance standards are available to managers for rating employees
d. Communicating the results of performance appraisals and consequences of the appraisals to employees

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In the context of the performance-appraisal process in an organization, a role of the organization is to ensure that clear and specific performance standards are available to managers for rating employees.

The organization is responsible for collecting information about employee behaviors and translating that information into ratings, considering the context in which employee performance occurs so that any extenuating conditions can be taken into consideration, and communicating the results of performance appraisals and consequences of the appraisals to employees.

To achieve this, the organization must first establish a clear set of performance standards that are relevant, measurable, and achievable. These standards should be communicated to both employees and managers, so that employees know what is expected of them and managers can effectively evaluate their performance.

Next, the organization must implement a reliable and accurate system for collecting information about employee behaviors. This could involve conducting regular observations, gathering feedback from colleagues and supervisors, and reviewing work outputs.

The collected data should then be translated into ratings, which can be used to assess an employee's performance against the established standards.

Furthermore, the organization should consider the context in which employee performance occurs. This involves taking into account any extenuating conditions, such as resource limitations or unforeseen challenges, that may have impacted the employee's ability to meet the performance standards.

By considering the context, the organization can ensure that the performance appraisal process is fair and comprehensive.

Finally, the organization must effectively communicate the results of the performance appraisals to employees. This includes providing constructive feedback on their performance, discussing any consequences of the appraisal (e.g., promotions, salary increases, or performance improvement plans), and offering guidance on how to improve in the future.

This communication is essential for fostering employee growth and maintaining a strong working relationship between managers and employees.

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The level of prices and the value of money Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of seltzer, one bag of pretzels, and one shuttle ride. In year one, the basket costs $11.00.
In year two, the price of the same basket is $10.00. From year one to year two, there is ____ at an annual rate of ____
In year one, $55.00 will buy ___ baskets, and in year two, $55.00 will buy ___ baskets.
This example illustrates that, as the price level falls, the value of money____

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In year two, the price of the same basket is $10.00. From year one to year two, there is deflation at an annual rate of 1.00%. In year one, $55.00 will buy 5  (55/11) baskets, and in year two, $55.00 will buy 5.5 (55/10) baskets. This example illustrates that, as the price level falls, the value of money rises.

When asset and consumer prices fall over time while purchasing power rises, this is referred to as deflation. Basically, you can spend the same amount of money today on more goods or services tomorrow.

Deflation typically occurs when supply is high (when there is excess production), demand is low (when consumption declines), or the money supply shrinks (sometimes in response to a contraction brought on by reckless investment or a credit crunch), or when there is a net outflow of capital from the economy.

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the excess of revenue over variable costs is referred to as: multiple choice gross profit gross margin contribution margin manufacturing margin

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The excess of revenue over variable costs is referred to as the contribution margin. Here option C is the correct answer.

It is a key financial metric that helps businesses determine the profitability of each unit produced. The contribution margin represents the amount of money that remains after variable costs (such as direct materials, labor, and overhead) have been deducted from the revenue generated by the sale of a product or service.

Unlike gross profit or gross margin, which deducts both variable and fixed costs, contribution margin only takes into account variable costs. This makes it a useful tool for analyzing the impact of changes in sales volume or variable costs on a company's profitability.

In addition to helping businesses understand their profitability on a per-unit basis, contribution margin can also be used to calculate the break-even point, which is the level of sales at which a business will neither make a profit nor incur a loss. By analyzing contribution margin, businesses can make informed decisions about pricing, production volume, and cost management to maximize profitability.

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Complete question:

The excess of revenue over variable costs is referred to as:

a) Gross profit

b) Gross margin

c) Contribution margin

d) Manufacturing margin

a firm uses 50 percent common stock, 40 percent debt, and 10 percent preferred stock. the cost of equity is 14 percent, the cost of preferred is 12 percent and the pretax cost of debt is 7 percent. what is the wacc if the tax rate is 35 percent?

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The WACC of the firm is 10% with a capital structure consisting of 50% common stock, 40% debt, and 10% preferred stock, and assuming a 35% tax rate.

To calculate the weighted average cost of capital (WACC), we need to multiply the cost of each source of capital by its weight (proportion of the total capital structure) and then sum the weighted costs.

In this case, the firm's capital structure consists of 50% common stock, 40% debt, and 10% preferred stock.

The cost of equity is given as 14%, the cost of preferred stock is 12%, and the pretax cost of debt is 7%. We need to adjust the pretax cost of debt to reflect the effect of the tax deductibility of interest payments. Since the tax rate is 35%, the after-tax cost of debt is:

After-tax cost of debt = Pretax cost of debt x (1 - Tax rate)

After-tax cost of debt = 7% x (1 - 0.35) = 4.55%

Now we can calculate the WACC as follows:

WACC = (Weight of common stock x Cost of equity) + (Weight of preferred stock x Cost of preferred) + (Weight of debt x After-tax cost of debt)

WACC = (0.50 x 0.14) + (0.10 x 0.12) + (0.40 x 0.0455)

WACC = 0.07 + 0.012 + 0.0182

WACC = 0.10 or 10%

This means that for each dollar of investment, the firm needs to earn at least a 10% return to satisfy its investors and maintain its current capital structure.

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which of the following statements is true? the present discounted value of future cash flows rises with the interest rate. the present discounted value of future cash flows falls when the interest rate rises. the present discounted value of future cash flows rises as the time to payoff increases. the present discounted value of future cash flows remains constant as the time to payoff decreases.

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The correct statement is that the present discounted value of future cash flows falls when the interest rate rises. This is due to the concept of time value of money, which states that money today is worth more than the same amount of money in the future. When we discount future cash flows, we are essentially bringing them back to their present value.

The discount rate used to calculate the present value takes into account the time value of money as well as other factors such as inflation and risk.
When the interest rate rises, the discount rate also increases, which in turn reduces the present value of future cash flows. This is because a higher discount rate implies that we need a greater return on our investment to compensate for the increased risk or opportunity cost of tying up our money. Therefore, as the discount rate increases, the present value of future cash flows decreases.
On the other hand, the present discounted value of future cash flows rises as the time to payoff increases. This is because the longer we have to wait to receive the cash flows, the greater the discount rate we use to calculate their present value. This means that the future cash flows are worth more today if we have to wait longer to receive them. However, it's important to note that this relationship is dependent on the discount rate remaining constant.
In summary, the correct statement is that the present discounted value of future cash flows falls when the interest rate rises, while it rises as the time to payoff increases. It's crucial to consider the time value of money and the discount rate when evaluating the present value of future cash flows.

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if the buyer breaches the purchase agreement and forfeits the good faith deposit, typically the proceeds from the deposit will be used to pay any costs incurred and the: group of answer choices remaining funds will go to the seller

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If a buyer breaches the purchase agreement and forfeits the good faith deposit, the proceeds from the deposit are typically used to pay any costs incurred by the seller as a result of the breach. These costs may include legal fees, marketing expenses, and other costs associated with the sale of the property.

Once these costs are paid, any remaining funds from the deposit will typically go to the seller. However, the amount of the deposit and the specific terms of the purchase agreement may affect how these funds are distributed.
For example, if the deposit is only a small percentage of the total purchase price, the remaining funds may not be substantial enough to make a significant impact on the seller's finances. In this case, the seller may simply retain the deposit and move on to find a new buyer for the property.
On the other hand, if the deposit is a significant amount of money, the seller may be entitled to keep the entire deposit as liquidated damages. This means that the seller is compensated for any losses or damages incurred as a result of the buyer's breach of the purchase agreement.
In some cases, the buyer may contest the forfeiture of the deposit, arguing that the seller did not incur any damages as a result of the breach. In these cases, the dispute may need to be resolved through arbitration or litigation, which can be time-consuming and expensive for both parties.
Overall, the forfeiture of a good faith deposit can be a complicated issue with many potential outcomes. It is important for both buyers and sellers to carefully review the terms of the purchase agreement and understand their rights and obligations in the event of a breach.

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which of the following describes an erp system? group of answer choices erp systems enable people in different business areas to communicate erp systems provide a foundation for collaboration between departments erp systems have been widely adopted in large organizations to store critical knowledge used to make the decisions that drive the organization's performance all of these

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All of these statements are true about ERP systems.

All of these options describe an ERP system. ERP systems enable people in different business areas to communicate, provide a foundation for collaboration between departments, and have been widely adopted in large organizations to store critical knowledge used to make the decisions that drive the organization's performance.

This allows people in different departments and areas of a business to communicate and collaborate more effectively. ERP systems are widely adopted in large organizations because they provide a foundation for collaboration between departments and store critical knowledge used to make important decisions that drive the organization's performance. In summary, an ERP system is a powerful tool that enables businesses to operate more efficiently and effectively.

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