ank states that its decision to offer home loans at an extremely low initial, but variable, rate is rooted in the idea that all have a right to owning an affordable home. The bank does not state that the loans are packaged in a product sold to another, larger bank that may or may not work with customers in difficult situations. The smaller bank is no longer exposed to the risk of longer-term loans, and makes a large profit. Which moral theory is the bank operating under?
Answer: Ethical Egoism
Explanation:
The theory of Ethical Egoism posits that people or entities are well within their rights to act in a manner that benefits their best interest and in so doing are being good in their own right.
The small bank acted in such a manner that it left itself unexposed to risk whilst still making quite a huge profit. The small bank pursued its own interests and so followed the moral theory of Ethical Egoism.
A customer wishes to invest in real estate, believing that current market prices are depressed and that they are ready for a major rebound. The customer wishes to make an investment that offers diversification and liquidity. Which type of real estate investment would be a suitable recommendation
Answer: Real Estate Investment Trust
Explanation:
The options are:
A Real Estate Limited Partnership
B. Real Estate General Partnership
C. Real Estate Investment Trust
D. Real Estate Time Share
From the options given, the real estate investment trust is the only liquid investment. It is identical to a closed-end fund because its shares are being listed and traded just like every other stock.
It should be noted that for both Real Estate Limited Partnerships and the Real Estate General Partnerships, there is no trading market for them as they're highly liquid while the Real Estate Time Shares are vacation product and not investment.
news analysts are allowed to give a option
A.True
B.False
Answer:
False
Explanation:
They can only stick to facts.
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.04 annually. If you use a discount rate of 0.09 for investment products, what is the present value of this growing perpetuity? Round to two decimal places.
Answer:
The present value of this growing perpetuity is $499,200.
Explanation:
If cashflow is growing at a constant rate, then we call this a growing perpetuity.
Present Value of Growing Perpetuity = [Payment × ( 1 + growth rate)] ÷ [(discount rate - growth rate)]
= $24,000 (1.04) ÷ (0.09 - 0.04)
= $499,200
Lawler Manufacturing Company expects annual manufacturing overhead to be $810,000. The company also expects 45,000 direct labor hours costing $1,350,000 and machine run time of 20,250 hours. Calculate predetermined overhead allocation rates based on direct labor hours, direct labor cost, and machine time. (Round direct labor cost to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)
Answer:
A. Overhead allocation rates based on direct labour hours = $18 per direct labour hour
B. Overhead allocation based on direct labour cost = 0.6
C. Overhead allocation rates based on machine time = $40 per machine time hour
Explanation:
Here, we are interested in having some calculations done; We proceed as follows;
From the question, the total overhead = 810,000
Mathematically;
a. The overhead allocation rates based on direct labour hours = Amount of total overhead/Total direct labour hours
= 810,000/45,000 = $18 per direct labour hour
b. The overhead allocation based on direct labour cost = Amount of total overhead / Total direct labour costs
= 810,000/1,350,000 = 0.6
C. Overhead allocation based on Machine time = Amount of total overhead/total machine time hours = 810,000/20,250 = $40 per machine time hour
Jessica owns a small trading company. The company buys small vending machines from a manufacturer and sells them to the a retailer, thus making a profit. Why are these vending machines a part of the trading firm’s current assets?
A.
the vending machines market value is lower than their original cost
B.
the vending machines are a part of the company’s income
C.
the vending machines are a part of the company’s expenses
D.
the vending machines are to be sold and converted into cash within the normal period of operation
E.
the vending machines could be sold at a loss
Answer:
is the letters B
Explanation:
In order to make a decision utilizing a decision tree, you must:___________.a. start at the most distant point in time and work backwards to Time 0.b. begin at Time 0 and work towards the most distant point in time.c. start at the top of the tree and work vertically downward to the very bottom.d. start at the middle of the tree and work both upwards and downwards simultaneously.e. concentrate only on the limbs with the highest probability of occurrence levels.
Answer:
In order to make a decision utilizing a decision tree, you must:___________
b. begin at Time 0 and work towards the most distant point in time.
Explanation:
Decision trees are built up by starting from the present with the overarching objective (goal) in mind. Then, one classifies the information along various branches and leaf nodes, with each branch representing the outcome of an alternative route or a question answered based on the likelihood of the event happening. Each leaf node represents a class label (decision taken after computing all attributes). This structure can be used to predict likely values of data attributes.
Suppose you are an operations manager for a plant that manufactures batteries. Give an example of how you could use descriptive statistics to make better managerial decisions. Give an example of how you could use inferential statistics to make better managerial decisions.
Please find full question attached
Answer:
Inferential statistics
Descriptive statistics
inferential statistics
descriptive statistics
Descriptive statistics
Inferential statistics
Explanation:
Descriptive statistics describes data and gives us a picture of what the data summary looks like using such things as mean and central tendency measures. Inferential statistics on the other hand aims to make predictions using the data based on data analysis such as collecting sample from population and constructing hypotheses to estimate outcomes for the general population. Example in the question, the first is inferential statistics as we make generalized predictions on batteries using data samples from the population of batteries of a particular type.
Bumblebee is a toy manufacturing company. Though the company has been effective in managing its resources without any wastage, its productivity efficiency report shows a decrease in the year 2013 when compared to the previous year. This outcome indicates that its productivity is _____.
Answer:
Efficient but not effective
Explanation:
Effective production is a term often used in business operations to describe a situation in which a company produces commodities with the utmost output from a given input or resources.
On the other hand, Efficient Production is a term that describes a situation in which a company produces commodities at the minimum likely cost.
Hence, in this case, it can be determined that Bumblebee's productivity is EFFICIENT by managing its resources without any wastage, but not EFFECTIVE because there is a decrease in production in the year 2013 when compared to the previous year.
An increasing amount cash flow has been projected for an investment in renewable energy. Based on an increases in the amount charged per unit of energy and growth in energy use, the payment of 3800 per period with the first payment one period from now is expected to increase by 300 each period thereafter for a total of 18 periods. Using a discount rate of 11.0 percent, what is the present worth of this payment stream?
Answer:
The present worth of this payment stream is 48,942.42.
Explanation:
To calculate the present worth of the payment stream, the formula for calculating the present value of a growing annuity is used as
follows:
PW = (P / (r - g)) * (1 - ((1 + g) / (1 + r))^n) .................... (1)
Where;
PW = Present worth of the payment stream = ?
P = Payment per period = 3800
r = interest per year = 11.0%, or 0.11
g = growth rate of payment per period = 300 / 3800 = 0.0789473684210526
n = Number of period = 18
Substituting the values into equation (1), we have:
PW = (3800 / (0.11 - 0.0789473684210526)) * (1 - ((1 + 0.0789473684210526) / (1 + 0.11))^18)
PW = (3800 / 0.0310526315789474) * (1 - (1.0789473684210526 / 1.11)^18)
PW = 122372.881355932 * (1 - 0.97202465623518^18)
PW = 122372.881355932 * (1 - 0.60005500664059)
PW = 122372.881355932 * 0.39994499335941
PW = 48,942.42
Therefore, the present worth of this payment stream is 48,942.42.
Micro, Inc., started the year with net fixed assets of $75,300. At the end of the year, there was $96,700 in the same account, and the company's income statement showed depreciation expense of $13,270 for the year. What was the company's net capital spending for the year?
Answer:
$158,730
Explanation:
Mario incoporation started the year with a net fixed assets of $75,300
At the end of the year the net fixed assets was $96,700
The depreciation expense is $13,270
Therefore the company's net capital spending for the year can be calculated as follows
= $96,700+$75,300-$13,270
= $172,000 - $13,270
= $158,730
Hence the company's net capital spending for the year is $158,730
Which two of the three financial statements would you find Net Income on?
A) Income Statement and Balance Sheet
B) Balance Sheet and Cash Flow Statement
C) Income Statement and Cash Flow Statement
D) Net Income is on all three statements.
Answer:
C) Income Statement and Cash Flow Statement
Explanation:
The Income Statement shows a clear separate entry for the Net income which is calculated after all the deductions and additions.
Net Income is the first balance shown on the cash flow statement after which the calculations are carried out to find the flow of cash in and out of the company.
Net income is also shown in the Balance Sheet but not separately but together with retained earnings. It is added to the retained earnings and the amount is shown as a whole amount of retained earnings or shown as a change in equity.
So best answer is C because the question asked is where would you find Net Income on?
Meaning separately. So it is separately present on Income Statement and Cash Flow Statement.
Otherwise it is present on all three statements ( on balance sheet as part of retained earnings or equity).
Leone and Sons Pickle Co. will pay its first annual dividend of $2 later today. Subsequent dividends will grow by 10% per year for the next three years, and then by 4% per year for each year after that. Find the present value of this stock, given an effective annual rate of 8%
Answer:
P₀ = $61.17
Explanation:
Div₀ = $2
Div₁ = $2.20
Div₂ = $2.42
Div₃ = $2.662
Div₄ = $2.76848
terminal value at year 3 = $2.76848 / (8% - 4%) = $69.212
P₀ = $2.20/1.08 + $2.42/1.08² + $2.662/1.08³ + $69.212/1.08³ = $2.037 + $2.075 + $2.113 + $54.943 = $61.168 ≈ $61.17
Kresley Co. has provided the following 20X5 current account balances for the preparation of the annual Statement of Cash Flows: January 1 December 31 Accounts receivable $11,500 $14,500 Allowance for uncollectible accounts 400 500 Prepaid rent expense 6,200 4,100 Accounts payable 9,700 11,200 Kresley's 20X5 net income is $75,000. Net cash provided by operating activities in the Statement of Cash Flows should be
Answer:
Net cash provided by operating activities in the Statement of Cash Flows should be $75,700.
Explanation:
Prepare the Cash Flow from Operating Activities Section of the Cash Flow Statement using the Indirect method as follows :
Cash Flow from Operating Activities
Net Income for the year $75,000
Adjustment for non-cash items :
Increase in Allowance for uncollectible accounts $100
Adjustment for changes in working capital :
Increase in Accounts receivable ($3,000)
Decrease in Prepaid rent expense $2,100
Increase in Accounts payable $1,500
Net Cash from Operating Activities $75,700
Today is June. Suppose you buy a futures contract for 42,000 gallons of RBOB gasoline delivered in December. The contract settles at $1.50 per gallon today. You decide to exit in August, when the contract settles at $1.45 per gallon. Calculate your payoff from holding the position between June and August
Answer:
The payoff from holding the position between June and August is $2,100 "loss"
Explanation:
Since I had gone long on the contract and it has gone down in value, I would be having a loss. The value of the loss will be:
= ($1.5 - $1.45) x 42,000 gallon of RBOB gasoline
= $0.05 * 42,000 gallon of RBOB gasoline
= $2,100 (Loss)
On December 31, 2016, the accounts of Leuz Architect Services showed credit balances in its Common Stock and Retained Earnings accounts of $60,000 and $30,000, respectively. The company's stock issuances for 2017 totaled $12,000, and it paid $10,000 cash dividends in 2017. During 2017, the company had net income of $33,000. What is the total stockholders' equity for Leuz Architect Services at December 31, 2017
Answer:
The total stockholder's Equity at December 31, 2017 is $125,000
Explanation:
December 31, 2016
Common Stock $60,000
Retained Earnings $30,000
Stockholder's Equity $90,000
Now, we add the $12,000 stock issuance to common stock, and substract the $10,000 dividend payment from retained earnings.
2017
Common Stock $72,000
Retained Earnings $20,000
Stockholder's Equity $92,000
Finally, we add the net income of $33,000 to retained earnings
December 31, 2017
Common Stock $72,000
Retained Earnings $53,000
Stockholder's Equity $125,000
A registered representative suggests and then implements a strategy in a client's portfolio. This strategy involves the RR coming up with certain determinations in relation to an appropriate distribution of investments in the client's account and the maintenance of this mix of investments over time. Which of the following most accurately describes the strategy that has been implemented? (A) The RR is using only a technical analysis approach to allocation. (B) The RR is using capital asset pricing model to determine allocation. (C) The RR is using a form of asset allocation for the client. (D) The RR is using a strategy purely focused on diversification for the client.
Answer:
(C) The RR is using a form of asset allocation for the client.
Explanation:
Given that Asset allocation is a term that describes the undertaking of an investment technique. This technique tries to offset risk with reward by diversifying the proportion of each asset in an investment portfolio based on the investor's preference, which is influenced by risk tolerance, and investment period.
Hence, in this situation, the right answer is option C: The RR is using a form of asset allocation for the client.
One year ago, the Jenkins Family Fun Center deposited $3,500 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,300 to this account. They plan on making a final deposit of $7,500 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a 7 percent rate of return
Answer:
Total FV= $21,043.97
Explanation:
Giving the following information:
Interest rate= 7% compounded annually
To calculate the total accumulated future value, we need to use the following formula on each deposit:
FV= PV*(1+i)^n
Deposit 1= 3,500*1.07^5= 4,908.93
Deposit 2= 5,300*1.07^4= 6,947.22
Deposit 3= 7,500*1.07^3= 9,187.82
Total FV= $21,043.97
Which one of the following statements is true?1) If the market price falls below the Average Fixed Costs (AFC) of production then the firm will minimize losses by "shutting down" production.2) A firm will earn an economic profit if it sells output at a market price that exceeds the Average Variable Costs (AVC) of production.3) At the current level of production (q) the Marginal Revenue is (MR=) $25 and Marginal Cost is (MC=) $20 the perfectly competitive firm should decrease its' level of production.A. Only Statement (1) is true.B. Only Statements (2) and (3) are true.C. Only Statement (3) is true.D. Only Statements (1) and (3) are true.E. None of the Statements is true.
Answer: E. None of the Statements is true.
Explanation:
Statement 1 is false because the firm should shutdown only after market prices have dropped below Average Variable Costs not Average Fixed costs because the fixed costs have already or will be incurred regardless. The best way to limit losses would be to stop the activity that adds more costs per unit which would be variable costs.
Statement 2 is also false because profit will be made when the firm sells at a price that exceeds Average Total Cost not just Average Variable Cost.
The firm maximises profit at a point where Marginal Revenue equals Marginal Cost. If Marginal Revenue exceed marginal cost as it the case here, it means resources are being underutilised and the perfectly competitive firm needs to produce more to maximise profit not less. Statement 3 is therefore wrong as well.
Which of the following functions does not require financial markets?
a. Retention of cash by corporations
b. Provision of liquidity
c. Risk reduction by investment in diversified portfolios
d. Provision of pricing information
Answer:
The answer is A.
Explanation:
Financial markets do all of the options except retention of cash by corporations. Financial market does not have thr ability to determine the amount of cash that corporation keeps.
Financial markets provides liquidity by making sure corporations are able to access loans/bonds at every time .
It reduces risk by engaging in diversified portfolio.
Answer:
A. Retention of cash by Corporations.
Explanation:
The financial market, as the name depicts, is a marketplace that gives a platform for the sale and purchase of financial assets and commodities, such as stocks, bonds, derivatives, and foreign exchange. Liquidity, risk reduction, and pricing information are all functions of financial markets. But the option Retention of cash by corporation does not require the financial markets.
During 2024, Passage Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: 2021 $60,000 understated 2022 $75,000 overstated Prior to any adjustments for these errors, working capital at December 31, 2023, would be:
Answer: $75,000 overstated
Explanation:
Inventory errors will correct themselves automatically over a 2 year period because they will balance each other out. For instance an inventory overstatement in one year will increase revenue but because it will be higher than it should be as the opening balance of the next year, it will reduce revenue by an equal amount in that year.
The only relevant error therefore is the 2022 error.
Inventory is overstated by $75,000 which means it will inflate the Net Working Capital by the same amount.
Stangol Co. uses process costing to account for the production of highlighter pens. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Cost per equivalent unit has been calculated to be $8.91 for conversion costs and $7.1212 for materials. 13,200 units were worked on during the period. Ending inventory still in process was 4,800 units (100% complete for materials, 50% for conversion). The value of ending inventory using the weighted average method would be closest to: Multiple Choice $55,565.76 $139,000.00 $41,232.20 $73,165.40
Answer:
$55,565.76
Explanation:
Calculation for the value of ending inventory using the weighted average method
First step is to find the Equivalent units
Equivalent units = (4,800 × 50%)
Equivalent units = 2,400
Second step is to find the conversion costs
Conversion costs (4,800 × 100%)
Conversion costs= 4,800
Last step is to calculate for the value of ending inventory
Ending inventory= ($8.91 × 2,400) + ($7.1212× 4,800)
Ending inventory=$21,384+$34,181.76
Ending inventory=$55,565.76
Therefore the value of ending inventory using the weighted average method would be closest to: $55,565.76
Ross would like to dispose of some land he acquired five years ago because he believes it will not continue to appreciate. Its value has increased by $50,000 over the five-year period. He also intends to sell stock that has declined in value by $50,000 during the eight-month period he has owned it. Ross has four offers to acquire the stock and land. Identify the tax issues relevant to Ross in disposing of this land and stock. Buyer 1: Exchange land. Buyer 2: Purchase land for cash. Buyer 3: Exchange stock. Buyer 4: Purchase stock for cash.
Answer:
Buyer 1: Exchange land.
Qualifies for §1031 deferral treatment. If Ross disposes of the land in exchange for another asset, he can differ the payment of capital gains taxes.
Buyer 2: Purchase land for cash.
If Ross sells the land for cash, then he will have a $50,000 long term capital gain which can be offset against a long term capital gain or a short term capital loss. In this case, Ross may want to sell the stocks in order to offset any taxes.
Buyer 3: Exchange stock.
The loss on the sale of stocks cannot be deferred (does not qualify for §1031 deferral treatment).
Buyer 4: Purchase stock for cash.
If Ross sells the stock for cash, he will be able to report the $50,000 short term capital loss, and he is able to offset the long term capital gain from selling the land.
What causes unemployment post-keynesianism?
Answer:
involuntary employment
Explanation:
The Post-Keynesianism view is that effective demand is the main determinant of economic performance.
Thus, Keynesianism states that in an economy where there is a significant reduction in demand, it will affect the labor market which further leads to lower wages.
For example, an airline that has 100 workers is experiencing a sharp decline in demand (of flight bookings) because of a government lockdown may decide to cut down their staff capacity ad a result. leading to involuntary employment.
Crane Flight Services contributes $25 a week to Helen's retirement plan starting immediately. Assuming she works for Crane for another twenty-two years and the applicable discount rate is 4 3/4%. Given these assumptions, the value of this employee benefit today is closest to: (state your answer to 2 decimal places)
Answer:
The value of this employee benefit today is closest to $17,758.66
Explanation:
Crane Flight services per week contribution C = $25
Discount rate per r=4.75%
Discount rate per week r= 4.75% / 52 =0.0913%
Total Payment N = $52 * 22 years = $1,144
Current value of employee benefit P = C*(1+r)*(1-(1+r)^-N)/r
P=25*(1+0.0913%)*(1-(1+0.0913%)^-1144)/0.0913%
P = 25 * (1.000913) * (1 - (1.000913)^-1144)/0.000913
P = 25 * (1.000913) * 1 - 0.3520453/0.000913
P = 25 * (1.000913) * 709.6985
P = 17758.661368
P = $17,758.66
A person died intestate. His property would pass according to:________.
Answer:
Descent and distribution
Explanation:
When a person dies intestate it means there is no will to use for distribution of his properties to his heirs.
In this case probate courts establish who the heirs to the estate is. Usually two heirs are chosen to inherit the estate.
Probate courts determine the heirs by descent and distribution. That is the preferred heirs are spouses and children. If these are not available then consideration is given to extended family like brothers, cousins, uncles, and so on
Jackie has a margin account with $150,000 of his own money. The initial margin deposit required is 60 percent and Turtle Industries is currently selling at $50 per share. What is the maximum number of Turtle Industries shares Jackie can purchase meeting the initial margin requirement
Answer:
The maximum number of shares is 5,000 shares
Explanation:
The computation of the maximum number of shares is shown below:
= Margin account amount ÷ initial margin deposit required ÷ current selling price per share
= $150,000 ÷ 0.60 ÷ $50 per share
= 5,000 shares
hence, the maximum number of shares is 5,000 shares
We simply applied the above formula so that accurate shares could come
You are a member of the senior management staff at XYZ Corporation. You have historically been using a functional structure set up with five departments: finance, human resources, marketing, production, and engineering. Create a drawing of your simplified functional structure, identifying the five departments. Assume you have decided to move to a project structure. What might be some of the environmental pressures that would contribute to your belief that it is necessary to alter the structure? With the project structure, you have four projects currently ongoing: stereo equipment, instrumentation and testing equipment, optical scanners, and defense communications. Draw the new structure that creates these four projects as part of the organizational chart.
Answer and Explanation:
Please find diagram attached
Organizational structure can be depicted using the organizational chart showing how the different departments are arranged in such a manner as to suit the organization and be directed firmly towards its goals
B. Different organizational structure exists for different organizations depending on the type of business the company is into. A company would define it's organizational structure based on such things as market changes and competition to enable flexibility and actionable and quick responses to changes. This is done to enable quick and effective decision making for a constantly changing business environment
XYZ Corporation
Finance Human Resources Marketing Production Engineering
XYZ Corporation
Stereo equipment ------> Instrumentation-------> Testing equipment------> Optical Scanners---------> Defense communications
An organizational structure is how an organization is arranged with respect to the hierarchy and their various functions within the organization.
This helps to make sure that the organizational goals and visions are being met as this would help to keep focus of the group to achieve their common goal.
Read more about organizational structure here:
https://brainly.com/question/7322842
Rousey, Inc., had a cash flow to creditors of $16,920 and a cash flow to stockholders of $7,496 over the past year. The company also had net fixed assets of $49,680 at the beginning of the year and $57,100 at the end of the year. Additionally, the company had a depreciation expense of $12,228 and an operating cash flow of $51,069. What was the change in net working capital during the year?
Answer:
Change in net working capital during the year is $7,005
Explanation:
Given the above data,
Cash flow from assets = Cash flow to creditors + Cash flow to shareholders
= $16,920 + $7,496
= $24,416
Opening cash flow from financial assets = Operating cash flow - *Net capital spending - Change in net working capital.
$24,416 = $51,069 - ($57,100 - $49,680 + $12,228 - Change in working capital
$24,416 = $51,069 - $19,648 - Change in net working capital
$24,416 = $31,421 - Change in net working capital
Change in net working capital = $31,421 - $24,416
Change in net working capital = $7,005
Please note that net capital spending = net fixed assets at the end - net fixed assets at the beginning + depreciation expenses.
g Christine has a current annual income of $80,000 but estimates she will need nominal income of $120,000 when she retires in 20 years. Her retirement portfolio is expected to earn 6% annually over time and she assumes inflation will average 2% a year over time. She estimates her retirement stage of life will last 25 years. If her nominal income remains constant, the amount she needs in her retirement portfolio to finance her retirement stage of life is closest to: A. $1,626,040. B. $1,964,420 C. $1,890.290. D. $2,389,670. E. 2,003,700.
Answer:
A. $1,626,040
Explanation:
Since we are dealing with nominal values, we do not need to adjust them to inflation. We are given the following information:
Christine expects to live 25 years after retiringher retirement account earns 6% annuallyshe expects to withdraw $120,000 per yearthis is an ordinary annuity and we must determine its present value (in 25 years):
present value = 120,000 x 12.783 (PV annuity factor, 6%, 25 periods) = $1,533,960
the closest option is A. $1,626,040
