Answer:
The values of the three components of the DuPont identity are Profit Margin = 7.91 %, Total Assets Turnover = 0.98 and Rate of return on asset = 7.75 %
Explanation:
The DuPont identity was developed by managers for evaluating performance. The DuPont identity shows how the return on equity is affected asset turnover, the profit margin and leverage.
The Profit margin times the total assets turnover is called the Du Pont equation and it gives the Rate of return on asset (ROA).
ROA = Profit Margin x Total assets turnover
where,
Profit Margin = Net Income ÷ Sales
= $50,800 ÷ $642,100
= 7.91 %
Total Assets Turnover = Sales ÷ Total Assets
= $642,100 ÷ $658,000
= 0.98
therefore,
ROA = 7.91 % x 0.98 = 7.75 %
Conclusion
The values of the three components of the DuPont identity are Profit Margin = 7.91 %, Total Assets Turnover = 0.98 and Rate of return on asset = 7.75 %
give the examples of positive body language in teamwork
1. good posture
2. eye contact
3. be interested in what they are saying
4. be polite
or a market to exist: Multiple Choice government must guarantee equal treatment for all. individuals must be concerned with the social good. everyone must have identical wants and desires. private property rights must be allocated and defended by government.
Answer:
D. private property rights must be allocated and defended by government.
Explanation:
A property right is the exclusive or sole authority which determines the legal ownership of resources and how these resources are to be used, whether by individuals or government.
Also, a competitive market is a type of market that comprises of numerous producers who compete with each other so as to satisfy or meet the material needs and wants of consumers at a specific period of time.
Hence, for a market to exist, private property rights must be allocated and defended by government.
This ultimately implies that, when the ownership of resources are well defined and markets are competitive, all benefits from trade between the consumers and producers of goods and services has been maximized, and each units creating more benefit to the consumers than cost have been produced in the economy.
Suppose you observe the following exchange rates: €1 = $.85; £1 = $1.60; and €2.00 = £1.00. Starting with $1,000,000, how can you make money? Group of answer choices Start with euros; exchange for pounds; exchange for dollars; exchange for euros. Start with dollars, exchange for euros at €1 = $.85; exchange for pounds at €2.00 = £1.00; exchange for dollars at £1 = $1.60. Exchange $1m for £625,000 at £1 = $1.60. Buy €1,250,000 at €2 = £1.00; trade for $1,062,500 at €1 = $.85. No arbitrage profit is possible.
Answer:
i'll answer it after 15 years see you then
Explanation:
State law requires all electricians to be licensed. Ted is not licensed, but has been doing electrical work with his family business for five years. Despite Robin knowing Ted is unlicensed, she hires Ted to fix the electrical at her home for $5,000. When Ted completes the electrical project, Robin refuses payment. Will she have to pay?
Answer:
Yes
Explanation:
Yes, Robin would need to pay because she knew that Ted was not licensed and still decided to hire him. Therefore, agreeing to contract Ted and pay him for the work that he has done. Regardless of whether or not Ted's job was legal or not Robin still agreed and must pay Ted. Ted will later have to deal with his own legal issues but that does not affect the contract that was agreed upon by both parties.
What are the advantages and disadvantages for companies maintaining an internal marketing research department? What advantages and disadvantages can be attributed to the hiring of an external marketing research supplier?
Answer:
Explanation:
There is a need for market research for companies, so that the company can be uttered in the right direction
On January 1, 2018, Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful life of 4 years or 100,000 hours and residual value of $30,000. The machine will be used 30,000 hours in year one, 40,000 hours in year two, 20,000 hours in year 3, and 10,000 hours in year 4. Requirements: Prepare a depreciation schedule using each of the three methods: Straight line, Units of Production, and Double Declining Balance.
Answer:
Friendly Farm Company
Schedule of Straight-line, Units of Production, and Double Declining Balance:
Straight-line Units of Production Double Declining
Year 1 Book value $350,000 $350,000 $350,000
Depreciation Exp. $80,000 $96,000 (30,000*$3.20) $175,000
Year 2 Book value $270,000 $254,000 $175,000
Depreciation Exp. $80,000 128,000 (40,000*$3.20) 87,500
Year 3 Book value $190,000 $126,000 $87,500
Depreciation Exp. $80,000 64,000 (20,000*$3.20) 43,750
Year 4 Book value $110,000 $62,000 $43,750
Depreciation Exp. 80,000 32,000 (10,000*$3.20) $13,750
Residual value $30,000 $30,000 $30,000
Explanation:
a) Data and Calculations:
Cost of new machine = $350,000
Estimated useful life = 4 years or 100,000 hours
Residual value = $30,000
Usage of machine:
Year 1 = 30,000 hours
Year 2 = 40,000 hours
Year 3 = 20,000 hours
Year 4 = 10,000 hours
Units of Production = $320,000/100,000 = $3.20 per unit
Depreciable amount = $320,000 ($350,000 - $30,000)
Straight-line method, Depreciation per year = $80,000 ($320,000)
= 25% (100/4).
Depreciation expense, using Double-Declining Balance rate = 25% * 2 = 50%:
Year 1 = $350,000 * 50% = $175,000
Year 2 = $175,000 * 50% = $87,500
Year 3 = $87,500 * 50% = $43,750
Year 4 = $13,750 ($43,750 - $30,000)
b) These different methods still arrive at the same end result as shown above. Note that depreciation is an accounting estimate which spreads the cost of an acquired long-term asset over its useful life.
Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 55%. Based on the DuPont equation, what was Vaughn's ROE
Answer:
18.85%
Explanation:
The computation of ROE is seen below
Total asset turnover = Sales ÷ Total assets
= 315,000 ÷ 210,000
= 1.5
Debt to total asset = Debt ÷ Total assets
= 55% × 210,000
= $115,500
Total assets = Total liabilities + Total equity
Total equity = $210,000 - $115,000 = $94,500
Equity multiplier = Total asset ÷ Equity
= 210,000 ÷ 94,500
= 2.222
Profit margin = Net income ÷ Sales
= $17,832 ÷ $315,000
= 5.66%
Therefore
Return on equity = Profit margin × Total asst turnover × Equity multiplier
= 5.66% × 2.22 × 1.5
= 18.85%
Given the following, compute the cost of goods manufactured.
Direct material cost: $40,000
Direct labor cost: $100,000
Applied overhead: $120,000
Beginning work in process inventory: $30,000
Ending work in process inventory: $12,000
Answer:
$278,000
Explanation:
Given the above, cost of goods manufactured is computed as
= Direct materials + Direct labor + Applied overhead + Beginning work in process - Ending work in process
= $40,000 + $100,000 + $120,000 + $30,000 - $12,000
= $278,000
Cost of goods manufactured is $278,000
10. Which of the following is NOT considered to be a line cook?
A. Pastry chef
B. Grill cook
C. Sous chef
D. Sauté chef
Answer:
C. Sous chef. Hope this helps!
Raymond Co. has $3.9 million of debt, $2 million of preferred stock, and $3.3 million of common equity. What would be its weight on common equity? 0.20 0.36 0.24 0.42
Answer:Weight of common Equity=0.36
Explanation:
Total Shareholders amount= Debt+ Preferred stock+common Equity
=3.9+2.0 +3.3 = 9.2 million
Weight of common Equity is therefore = Common Equity / Total Shareholders Fund
Weight of common Equity = 3.3millon/ 9.2million
=0.358
=0.36
Suppose you deposit $1,071.00 into an account today that earns 11.00%. It will take ___ years for the account to be worth $2,911.00.
Answer:
n= 9.58 years
Explanation:
Giving the following information:
Present value= $1,071
Future value= $2,911
Interest rate= 11%
To calculate the number of years required to reach $2,091, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(2,911/1,071) / ln(1.11)
n= 9.58 years
G2 - Magellan lost the favor of the king of Portugal when he became involved in a political
__________.
(a) entanglement
(b) discussion
(c) negotiation
(d) problems
(e) None of the above
Answer:
(b) discussion
Explanation:
For example, historians believe that Magellan
Consider the attached clustered bar chart of the dashboard developed to monitor the performance of a call center. This chart allows the IT manager to _____.
Question Completion:
Consider the clustered bar chart of the dashboard developed to monitor the performance of a call center: Houston Email Internet Software Dallas Austin 0 5 20 25 10 15 Number of Calls This chart allows the IT manager to
O a. identify the percent of customers who do not have one of the listed problems.
O b. identify the frequency of a particular type of problem by location.
O c. identify which city contains the most customers.
O d. identify how often a problem is related to hardware.
Answer:
Consider the attached clustered bar chart of the dashboard developed to monitor the performance of a call center. This chart allows the IT manager to _____.
O b. identify the frequency of a particular type of problem by location.
Explanation:
The clustered bar chart attached to the report shows the call volume in the call center by type of problem (Email, Internet, or Software) for each of three cities in Texas. By viewing this clustered bar chart, the IT manager will be able to graphically and quickly identify if there is a particular type of problem by location. This bar chart is much easier to read and interpret than a text report. This is the major advantage of using graphs to represent written texts.
The section of a loan agreement that describes circumstances in which the creditor obtains additional rights is called th
Question Completion:
The section of a loan agreement that describes circumstances in which the creditor obtains additional rights is called the ______section.
a. events of compliance
b. certificate of compliance
c. events of termination
d. events of default
Answer:
The section of a loan agreement that describes circumstances in which the creditor obtains additional rights is called the ______section.
d. events of default
Explanation:
In loan covenants, an event of default is the meeting of some specified conditions or thresholds that allow the lender or creditor to demand immediate and full repayment of a debt or meeting of an obligation. Events of default may relate to delinquent payment, breach or insolvency, etc. As a breach of a contract, an event of default is a serious failure on the borrower to observe a provision of the contract. This leads to the lender calling for the termination of the contract.
The financial ratio that measures the accounting profit per dollar of book equity is referred to as the:
Answer:
Return on equity.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
The financial ratio that measures the accounting profit per dollar of book equity is referred to as the return on equity. It is calculated by dividing the net income with the shareholder's equity at a specific period of time
Name the factors that influence the development of accounting
will the right to the child help in the development of the children explain with example
Answer: Yes, the rights of the child can help them in their development.
Explanation: Organizations such as UNICEF explain that children have a series of rights that are essential for them to have a healthy development and to become good adults. Children have the right to a family structure and to be cared for, since when they are young there are many things that they cannot do for themselves and they need others to achieve it. An example of this would be that children must be sent to school by their parents. Children have the right to an education.
The diagnostic process is _____. a systematic approach to understand the organization none of the answers performed exclusively by the OD practitioner completely free of conflicts if performed properly
Answer:
A. a systematic approach to understand the organization
Explanation:
Business diagnosis can be defined as a strategic technique which typically involves the process of defining, identifying and classifying the various business processes, logistics, product quality in order to have an indepth understanding and knowledge about an organization.
The diagnostic process is a systematic approach to understand the organization because it involves critically studying all its aspects and areas.
Hence, the information gathered through the diagnostic process can be used by the management to facilitate its decision-making process and its competitive advantage.
You are given the following information:Expected return on stock A12%Expected return on stock B20%Standard deviation of returns:stock A1.0stock B6.0Correlation coefficient of the returns on stocks A and B1.2 a)What are the expected returns and standard deviations of a portfolio consisting of:1.100 percent in stock A
Answer and Explanation:
The computation of the expected return and standard deviation when there is 100% in stock A is shown below:
Expected return is
= 0.12 × 100
= 12%
And, the standard deviation of the portfolio is
= √1^2 + √1^2
= 1
Hence, the same is relevant
A ________ articulates a business’s strategic objectives and the related strategies for achieving those objectives.
Answer: Business plan
Explanation:
A business plan helps in articulating a business’s strategic objectives and the related strategies for achieving those objectives.
A business plan is referred to as the written document that helps in describing how a particular business will achieve its goals.
________ risk involves variation in returns due to the ups and downs of the economy, the industry and the firm. Structural Fluctuational Business Financial
Answer:
Business
Explanation:
Business risk can be explained as when company or organization is been exposed to factors that can alter their profit negatively or factors that can lead the business to failure. Business risk are considered as things that can threatens the financial goals of a company from realisation. It should be noted that Business risk involves variation in returns due to the ups and downs of the economy, the industry and the firm.
Which of the following statements concerning the cost-benefit relationship is not true? Business reporting should exclude information outside of management's expertise. Management should not be required to report infor
Answer:
D. If needed by financial statement users, management should gather information not included in the financial statements that would not otherwise be gathered for internal use.
Explanation:
HERE IS COMPLETE QUESTION
Which of the following statements concerning the cost-benefit relationship is not true?
A. Business reporting should exclude information outside of management's expertise.
B. Management should not be required to report information that would significantly harm the company's competitive position.
C. Management should not be required to provide forecasted financial information.
D. If needed by financial statement users, management should gather information not included in the financial statements that would not otherwise be gathered for internal use.
The cost benefit principle is a principle that give acost benefit relationship , and it state that cost incurred during the provision of financial information when issue financial statements should not be more than the benefits that the user will derived from it. This principle allows us to know that financial information can never come freely. Hence only "Option D" is not valid about cost-benefit relationship
Assume the price elasticity of demand (Ed) is 0.4 for gasoline in the long run. Some argue that we need a 50% reduction in gasoline consumption to be sustainable. What percentage price increase would reach that goal of 50% reduction in consumption
Answer:
125%
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Let x = percentage change in price
o.4 = 50 / x
x = 125
Planes frequently push back from the gate on time but then wait 2 feet from the gate until it is time to queue up for takeoff. This increases fuel consumption and increases the time that passengers must sit in a cramped plane awaiting takeoff.
Which of the following performance metrics would, if emphasized in evaluations, incentivize airlines to engage in such practices?
a. A performance metric that measures customer satisfaction, based on customer comfort while on the plane
b. A performance metric that measures timeliness of the flight, where a flight is considered "on time" as long as the flight is boarded and away from the gate by the scheduled departure time
c. A performance metric that measures timeliness of the flight, where a flight is considered "on time" as long as the plane takes off by the scheduled departure time.
Answer:
b. A performance metric that measures timeliness of the flight, where a flight is considered "on time" as long as the flight is boarded and away from the gate by the scheduled departure time
Explanation:
We are told that airplanes make a mock depart by exiting the boarding gates, but they stay on the runway for long periods of time. This is due to the fact that airlines measure which planes are on time based on the moment that they left the boarding gate, not when they actually lift into the air. it happened to me once and it was extremely unpleasant to just sit without moving for more than one hour. I doubt any passenger likes these type of situations.
On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company's common shares on the open market in exchange for $16,600. On December 31, 2017, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $97,500.During the next two years, the following information is available for Zip Company: IncomeDividends DeclaredCommon StockFair Value (12/31)2016 $315,0002017$70,000$6,700390,000201890,00014,500472,000 At December 31, 2017, Zip reports a net book value of $287,000. Akron attributed any excess of its 30 percent share of Zip's fair over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2017. Assume Akron applies the equity method to its Investment in Zip account:What amount of equity income should Akron report for 2018
,Answer:
$23,910
Explanation:
The computation of the amount of equity income should Akron report for 2018 is given below:
But before that the amortization is
Purchase price $97,500
carrying value ($390,000 ×5%) $19,500
Total fair value $117,000
Less: net book value ($287,000 × 0.30) $86,100
Franchise agreement $30,900
Divided by Remaining life 10
annual amortization $3,090
Now the amount of equity income is
= $90,000 ×30% - $3,090
= $23,910
the condition of Nepalese worker in foreign employment is poor what are the reasons behind it write any five reasons
Answer:
Hello lil boy!
Queen Messy here!
Lack of dependable data, extreme nepotism, and manipulation, in-transparent forms of work and continued abuse of authority is another reason why Nepal is a poor country. Related: Salary of Government officials of Nepal including President and Prime Minister. Lack of Industry.
Explanation:
You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-pound exchange rate is quoted at $2.00 = £1.00. If a bank quotes you a cross rate of £1.00 = €1.20 how much money can an astute trader make? Group of answer choices No arbitrage is possible $41,667 $40,000 $1,160,000
Answer:
$41,667
Explanation:
First and foremost, in order to profit from the arbitrage opportunity, we need to first of all convert dollars to euro using the exchange rate below
$1.60 = €1.00
$1,000,000 in euros= $1,000,000*€1.00/$1.60=€625,000
Next we convert the euros to pounds using the rate quoted by the bank below:
£1.00 = €1.20
€625,000 in pounds=€625,000*£1.00/€1.20=£ 520,833.33
Lastly, we convert the pounds sterling back to dollars using the below exchange rate
$2.00 = £1.00
£ 520,833.33 in dollars=£ 520,833.33*$2/£1.00=$ 1,041,666.67
Profit from the arbitrage=$ 1,041,666.67 -$1,000,000.00
Profit from the arbitrage=$41,667(rounded to a whole dollar amount)
ZEN Inc. is financed by 3 million shares of common stock and by $5 million face value of 8% convertible debt maturing in 2026. Each bond has a face value of $1,000 and a conversion ratio of 200. What is the value of each convertible bond at maturity if ZEN's net assets are: $30 million
Answer:
The value of each convertible bond at maturity if ZEN's net assets are: $30 million is $1,500 per convertible bond.
Explanation:
First, We need to calculate the Numer so Convertible bonds using following formula
Numbers of Bonds = Total face value of convertible bonds / Face value of on bond
Where
Total face value of convertible bonds = $5,000,000
Face value of on bond = $1,000
Placing values in the formula
Numbers of Bonds = $5,000,000 / $1,000
Numbers of Bonds = 5,000 bonds
Now calculate the total Numbers of convertible shares
Numbers of Convertible shares = Numbers of convertible bonds x Convertible shares against each bond
Numbers of Convertible shares = 5,000 bonds x 200 shares per bond
Numbers of Convertible shares = 1,000,000 shares
Now calculate the total numbers of shares after conversion
Total Numbers of shares after conversion = Existing shares + Convertible shares
Total Numbers of shares after conversion = 3,000,000 shares + 1,000,000 shares
Total Numbers of shares after conversion = 4,000,000 shares
Now calculate the value of each bond if the net asset value is $30 million
Value of Bond = ( Net Asset / Total Numbers of shares after conversion ) x Numbers of convertible shares against each bond
Value of Bond = ( $30,000,000 / 4,000,0000 shares ) x 200 shares per bond
Value of Bond = $1,500 per bond
For which capital component must you make a tax adjustment when calculating a firm’s weighted average cost of capital (WACC)? Preferred stock Debt Equity Water and Power Company (WPC) can borrow funds at an interest rate of 9.70% for a period of five years. Its marginal federal-plus-state tax rate is 25%. WPC’s after-tax cost of debt is (rounded to two decimal places). At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,555.38 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. If WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 4.11% 4.73% 4.93% 3.70%
Answer and Explanation:
In order to make the adjustment for tax for determining the weighted average cost of capital , the debt component should be used as the interest expense is to be considered as deductible due to which the tax impact would be decreased
The after tax cost of debt is
= Cost of debt × (1 - tax rate)
= 9.70% × (1 - 0.25)
= 7.28%
Now the ytm would be
Given that
Future value = $1,000
Present value = $1,555.38
NPER = 15%
PMT = $1,000 ×11% = $110
The formula is given below:
= RATE(NPER;PMT;-PV;FV)
The present value comes in negative
After applying the above formula, the yield to maturity is 5.4759%
Now the after tax cost of debt is
= 5.4759% × (1 - 0.25)
= 4.11%
What is the yield to maturity of a one-year zero-coupon bond with a $10,000 face value and a price of $9400
Answer:
6.383%
Explanation:
Calculation for the What is the yield to maturity
Using this formula
YTM=n√Face value/Bond price -1
Where,
n=one-year
Face value=10,000
Bond price=9,400
Let plug in the formula
YTM=1√10,000/9,400−1
YTM=1.06383-1
YTM=0.06383*100
YTM=6.383%
Therefore the yield to maturity will be 6.383%
