A company has a cost of debt (before tax) of 5.5% and a cost of equity of 12.8%. In addition, the company has a target capital structure of 30% debt and 70% equity, and a marginal income tax rate of 30%. Given this information, what is the WACC for this company

Answers

Answer 1

Answer:

10.12%

Explanation:

Wacc = (D / V)rd (1 - t) + (E / V) re

(D/V) = 0.3

Rd = before tax cost of debt = 5.5%

T = tax rate = 30%

(E / V) = 0.7

Re = marginal cost of equity = 12.8%

= (0.3 x 5.5% × 0.7) + (0.7 x 12.8%) = 1.155% + 8.96% = 10.12%

I hope my answer helps you


Related Questions

n the current year, the POD Partnership received revenues of $200,000 and paid the following amounts: $50,000 in rent and utilities, and $20,000 as a distribution to partner Olivia. In addition, the partnership earned $6,000 of long-term capital gains during the year. Partner Donald owns a 50% interest in the partnership. How much and what type(s) of income must Donald report for the tax year?

Answers

Answer: $75,000 ordinary income; $3,000 of long-term capital gains.

Explanation:

From the question, we are told that the POD Partnership received revenues of $200,000 and paid $50,000 in rent and utilities, and $20,000 as a distribution to partner Olivia. Also, the partnership earned $6,000 of long-term capital gains during the year and that Partner Donald owns a 50% interest in the partnership.

From the question, the ordinary income of the firm will be the difference between the revenue gotten and the $50,000 paid in rent and utilities which is an expense. This will be:

= $200000 - $50000

= $150000

The income from capital gain = $6000

Since, Donald will get 50% of what the partnership makes, thus will be:

50% of $150,000 ordinary income which is (50/100 × $150,000) = $75,000 and 50% of $6000 capital gain which will be $3,000.

= 50

Therefore, Donald will get $75000 of the ordinary income and $ 3000 of the capital gain.

A chart of accounts is a list of all ledger accounts and an identification number for each. Identify the following accounts as either an asset (A), liability (L), equity (EQ), revenue (R), or expense (E) account.a. Advertising Expense b. Rent Revenue c. Rent Receivable d. Machinery e. Accounts Payable f. Furniture g. Common Stock h. Utilities Expense

Answers

Answer is given below

Explanation:

Asset is The property means and controls the business owner and its use will generate future financial benefits. Liability is the current liability of an organization arising from past events, which is the flow of financial benefit from settlement. Equity is the remaining interest in a company because its liabilities are deducted from the assets.Revenue means income derived from the normal activities of the business.Expense arises at time in the morning activities

S.no Particulars                         Answer

a         Advertisement expense expense

b         rent expense                         expense

c         rent receivable                  Asset

d         Machinery                          Asset

e         Account payable                  Liability

f         Furniture                          Asset

g         common stock                  Equity

h          Utility Expense                  expense

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. What amount wou

Answers

Question

The question is incomplete, hence the tutor added a piece of information

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. What amount would be

Assuming the actual machine hours worked is 3,500

Note the actual machine was added by the tutor

Answer:

Applied overhead =$49,000

Explanation:

Overheads are charged to units produced by the means of an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level.  

Pre-determined overhead absorption rate (POAR) = Budgeted overhead/Budgeted machine hours

The POAR is given as $14 per machine hour

Applied (absorbed) overhead = POAR × Actual machine hours

Applied overhead = $14 ×  3,500 =$49000

Applied overhead =$49,000

Selected transactions from the journal of Giambi Inc. during its first month of operations, August 2022, are presented here.


Date Account Titles and Explanation Debit Credit
Aug. 1 Cash 10,000
Common Stock 10,000

10 Cash 1,700
Service Revenue 1,700
12 Equipment 12,200
Cash 1,200
Notes Payable 11,000
25 Accounts Receivable 2,500
Service Revenue 2,500
31 Cash 600
Accounts Receivable 600

Required:
Post the transactions to T-accounts.

Answers

Answer:

Giambi Inc.

T-Accounts for August 2022:

                                       Cash Account

Aug. 1 Common Stock         10,000  Aug. 12 Equipment                1,200

Aug. 10 Service Revenue      1,700

Aug. 31 Accounts Receivable 600

                                     Common Stock

                                                     Aug. 1  Cash Account               10,000

                                    Service Revenue

                                                     Aug. 10  Cash Account              1,700

                                                     Aug. 25 Accounts Receivable 2,500

                                   Equipment

Aug. 12  Cash                      1,200

Aug. 12 Notes Payable      11,000

                                   Notes Payable

                                                          Aug. 12 Equipment             11,000

                                   Accounts Receivable

Aug. 25  Service Revenue  2,500   Aug. 31     Cash                      600

Explanation:

T-accounts are general ledger accounts in T-form.  They are mainly used for accounts adjustments at the end of the accounting period.  The debit side is on the left hand side while the credit side is on the right hand side.  At the end of the period, the accounts are balanced by making the two sides to agree in total with the difference being called the balancing figure.

Read the case below and answer the questions which follow:

Part I: IBM has long been one of IT's leaders and has acquired more than 22.000 patents in the past decade. However, by the 1990s the company had lost its draw for customers and its innovative edge. In 2003 IBM decided to redefine its business model. The company phased out its presence in creating/selling hardware and sold its Personal Computing Division to Lenovo, a computer company in China. If a company wants to stay on top of its market, it must be constantly moving forward and adapting its focus. IBM restructured its business skills, assets, and delivery capabilities to meet the needs of their clients who wanted to blend information technology with business operations. The company set up all architecture and technologies for the On Demand operating environment.

Part ll: In 2005, IBM continued to make On Demand Business more tangible and even more focused on innovation. The company's goal has been execution. As part of IBM's On Demand focus, the company vowed to become more On Demand itself by creating a true global reach and utilizing the talent available worldwide and by giving authority and resources to those working in close contact with its clients. On Demand has allowed IBM to become focused and in sync across the board.

Part IlI: Critics argue that there is nothing new to IT in On Demand, and others clalm development has not gone far enough for On Demand to be truly functional. Regardless, IT companies such as Microsoft, Hewlett-Packard, and Oracle (to nam few) are pursuing technology along the same lines. This tells developers and executives at IBM that they are certainly on the right track -setting the pace and in the lead.

1. IBM's shift to a service business, changed the inputs in their transformation process. Which input would be the most important resource in the new model?

a. Materials
b. Energy
c. Labor
d. Ideas

2. Because service to meeting this requirement? organizations require high-touch relationships with customers; which of the following characteristics of the service organization is most important ?

a. Hiring and training
b. Flexible systems
c. Customized services
d. Adjustable capecity

3. Service organizations like IBM can standardize processes they are offering by:

a. Blending the use of technology
b. Designing Gantt Charts
c. Aligning inputs
d. Empowering employees

4. Unlike a service operation, the outputs for manufacturing operations are:

a. Tangible
b. Intangible
c. High-touch
d. Customer driven

5. The services that IBM is providing business clients to help with their technology will require a great deal of transformation process in the conversion step of the:_________

a. Facilties
b. Equipment
c. Knowledge
d. Technology

Answers

Answer:

1. c. Labor

2. a. Hiring and training

3. a. . Blending the use of technology

4. a. Tangible

5. d. Technology

Explanation:

1. IBM wants to create a global reach so that it may be able to take advantage of the talent that is available worldwide signifying that is is Labor that is integral to their new business model.

2. If the organisation requires high-touch relationships with customers then good representatives/employees are needed. Proper employees should be hired and trained to ensure that they relate well with customers.

3. By blending the technology they use around the world, they can standardise the way their employees do things using that technology.

4. Manufacturing firms produce actual goods. These goods can be seen, held, felt etc. They are tangible unlike services which do not have the aforementioned characteristics.  

5. A great deal of knowledge will be required during the conversion stage of the Transformation process because the client's business will have to be blended with information technology. As every business is different, the customisation will take quite a bit of knowledge to accomplish.

Ideally, you should develop a risk management plan for a specific project because _________
A. Engaging in planning activities demonstrates professionalism
B. Your boss is committed to using project management techniques in every project
C. The scale of a particular project â the size and complexity â require it
D. The Project Management Institute recommends it

Answers

Answer: Option B

Explanation:

A risk management plan is a document which is prepared by the project manager to eliminate the risks and chances of any loss or issues related to the project.

Every project has to follow the risk management plan to ensure the safety of the people and capital invested in the project.

It is also contained in the documents of the risk assessment plan which has to be followed by project manager and people.

It is decided during the baseline, the risks and the cures related to the project. As the boss and the project manger is committed to follow the risk management techniques it should be considered on a priority basis.

Why should a manager in an international business care about the political economy of free trade or about the relative merits of arguments of free trade and protectionism

Answers

Answer:

The answer is explained below

Explanation:

To begin with, the policies that the goverments decide to implement in their countries tend to influece in a huge way the companies decisions and therefore its actions as well. Therefore that as a company manager of an international business he needs to stay very updated about the government policies over the countries where his company works. Moreover, the manager will understand that if there is free trade in a country then there will be no problems for his company to start selling there and obtaining the maximum profits as possible and if there is protectionism then the company will have to deal with the policies that the government implemented there. And that is why that as an international business manager he should really care about the policies of the country's government and if there is free trade of protectionism.

Many managers have made poor ethical decisions while engaged in international business. Many of these ethical issues are rooted in the variations among nations in their political systems, law, economic development, and culture. What is considered normal practice in one nation may be considered unethical in another.

Answers

Answer:

True.

Explanation:

This statement is correct, due to the fact that the practice of international business can generate some embarrassing situations and behaviors that can be considered ethical or unethical according to a particular country.

Therefore, in order to avoid bad ethical decisions in international business, it is necessary that a manager develops the ability of cultural intelligence, which corresponds to the ability to adapt behaviors and decisions in such a way that there is multicultural correspondence and respect and adaptation to the values ​​and principles of individuals of other cultures with whom you need to relate professionally, so that there is appropriate, respectful and ethical behavior

Al’s Fine Winery has had workers attempting to band together to form a union. Al’s wants to avoid letting the workers gain too much power by eliminating new workers’ option to join a union at all. Al’s will likely utilize ____________.

Answers

Answer:

Yellow dog contracts

Explanation:

Yellow dog contracts are given by employers in which they and the new hirees agree that employees would not engage unions activity under the company's payroll. It attempt to avoid the formation of labor unions so the organizations only will have the power in employee decisions

It is considered illegal after the Norris-LaGuardia Act of 1932 was enacted

The following three identical units of Item A are purchased during April:

Item A Units Cost
Apr. 2 Purchase 1 $68
14 Purchase 1 73
28 Purchase 1 75
Total 3 $216
Average cost per unit $72 ($216 ÷ 3 units)

Assume that one unit is sold on April 30 for $118.

Determine the gross profit for April and ending inventory on April 30 using the:

a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost methods

Answers

Answer:

Determination of Gross Profit and Ending Inventory:

a. First-in, First-out (FIFO)

1. Determination of Gross Profit:

Sales               $118

Cost of Sales    68

Gross profit    $50

2. Determination of Ending Inventory:

Apr. 14  Purchase 1 $73

Apr. 28 Purchase 1  75

Total 2         $148

b. Last-in, First-out (LIFO):

1. Determination of Gross Profit:

Sales               $118

Cost of Sales    75

Gross profit    $43

2. Determination of Ending Inventory:

Apr. 2  Purchase 1 $68

Apr. 14 Purchase 1 $73

Total 2                  $141

c. Weighted average cost methods:

1. Determination of Gross Profit:

Sales              = $118

Cost of Sales =   72

Gross profit  =  $46

2. Determination of Ending Inventory:

Ending inventory = 2 x $72 = $144

Explanation:

FIFO, LIFO, and Weighted Average Cost Methods are different techniques for allocating costs of products to the cost of goods sold and the ending inventory.  They produce different results.  FIFO assumes that units sold are taken from the units purchased first.  LIFO assumes that units sold are taken from the units purchased last.  Weighted Average Method uses the average cost to determine the cost to allocate to cost of sales and ending inventory.  The average cost is obtained by summing the total inventory costs and dividing it by the units available for sale.  Then this average cost is applied to the quantity sold and the quantity remaining to obtain cost of goods sold and value of ending inventory.

Suppose there are three commercial concrete suppliers that account for 90% of sales (of nearly identical products) in northern New England. What is the most important thing they can do to earn profits in the commercial concrete industry

Answers

Answer: c. Collude

Explanation:

In order to make the maximum profit, the most important thing that these commercial concrete suppliers can do would be to Collude. While this is against fair market practices in a competitive market, it will ensure that they make enough profits in the industry.

With a 90% market share between them, they could collude to establish a price at which they will all sell at and because of their high market share, this is the price that the market will begin to sell at. That price will be a price that is high enough for them all to make sufficient profits therefore the goal of the collusion will be accomplished.

A summary of the time tickets for the current month follows:

Job No. Amount
100 $1,640
101 1,360
104 2,490
108 2,870
Indirect 8,740
111 1,750
115 1,150
117 7,780

Journalize the entry to record the factory labor costs.

Answers

Answer:

Journal Entries:

a)

General Journal

Description       Debit        Credit

Direct labor:

Job 100            $1,640

Job 101               1,360

Job 104             2,490

Job 108             2,870  

Job 111               1,750

Job 115              1,150

Job 117             7,780

Factory overhead:

Indirect labor  8,740

Factory labor costs              $27,780

To record the labor costs to jobs and indirect labor

   

Explanation:

Factory labor costs consist of direct labor costs which are attributed to the specific jobs and the indirect labor costs which cannot be traced to any particular job.  These are treated as factory overhead costs.

The journal entries recording the labor costs for each job, debit the indicated job title while crediting the factory labor costs.

A summary of the time tickets for the current month follows:
Job No. Amount
100 $ 3,860
101 4,300
104 24,500
108 18,600
Indirect 6,340
111 7,120
115 7,400
117 32,000
Journalize the entry on Dec. 31 to record the factory labor costs.

Answers

Answer:

Entry is given below

Explanation:

Entry for factory labor cost

DATE          ACCOUNT                         DEBIT        CREDIT

DEC 31     Work in Progress(w)          $97,780

                Factory overhead              $6,340

                 Wages payable                                     $104,120

Working

Work in progress =  3,860+4,300+24,500+18,600+7120+7400+32,000

Work in progress = 97,780

NOTE: Work in progress is sum of all direct labor cost

Factory Overhead = all indirect labor cost which is only $6,130

Continuing with the company selected in Unit 2, think about the types of financial data that would be included and excluded in differential analysis. Propose which specific revenues and costs should be considered in an evaluation to drop or keep a: Customer Product line In addition, explain sunk and opportunity costs as they relate to your selected company. Should these costs be considered in differential analysis? Why or why not?

Answers

Answer:

Sorts of monetary information that would be incorporated and avoided in differential analysis

Differential cost investigation is the expansion or decline in complete expense pf the adjustment in explicit components of cost that outcome from any variety in tasks. It speaks to an expansion or abatement in all out expense coming about out of -  

1. Creating or disseminating a couple of more or barely any less of the items

2. Change in the strategy for creation or of conveyance  

3. An Addition or cancellation of item  

4. Choice of extra deals channel  

In Differential examination increment in incomes, variable expenses and opportunity costs are thought of. Fixed expenses and fixed segment of semi-variable expenses are disregarded.  

differential analysis is utilized:  

1. Dropping or including a product offering  

2. Settle on or purchase choices  

3. Proceed or shutdown item or client and so on.  

Explicit incomes and expenses ought to be considered in an assessment to drop or keep a:  

1. Commitment structure unbeneficial item ought to be thought of  

2. Explicit fixed expenses of the unfruitful item will be thought of  

3. Commitment from other non beneficial items which is proposed to be delivered with the extra limit will be thought of.  

Avoidable fixed expenses are thought of, as these can be stayed away from when item or client is closed down. Avoidable fixed costs partitioned by the pv proportion will give level of deals beneath which it is smarter to close down.  

Unavoidable fixed expenses are overlooked in considering in an assessment to drop or keep. Since these costs will be acquired despite the fact that the item or client is ceased.  

shut down point = avoidable fixed expenses/PV proportion  

Sunk Costs: A sunk expense is a cost that an element has brought about, and which it can not recoup anymore. Sunk expenses ought not be viewed as when settling on the choice to keep putting resources into a progressing venture, since these expenses can't be recouped. As sunk expenses are authentic expenses these are brought about before and notrelavent for dynamic reason. for instance, R&D costs, Feasibility report costs and so on.  

Opportunity Costs: Opportunity costs emerge from inability to unused assets effectively. These are considered in dynamic investigation. in straightforward terms opportunity cost implies the loss of different options when one option is picked.  

Misfortune emerging from picking one option rather than other option will be considered in assessing the task.

Just Right Incorporated is considering the option of an extra dividend versus a share repurchase and the impact of both decisions on the firm. Just Right plans to spend $85,000 in respect of both scenarios. Just Right’s current earnings are $2.10 per share, and the stock currently sells for $45 per share. Just Right currently has 5,000 shares outstanding. You own one share of stock in this company. If the company issues the dividend, what will your total investment be worth?

Answers

Answer:

The total investment will be "28".

Explanation:

The given values are:

Total dividend amount

= $85,000

Current earnings per share

= $2.10

Total purchased amount

= $85,000

Currently sell stock

= $45 per share

Now,

⇒  [tex]Dividend \ per \ share=\frac{85000}{5000}[/tex]

                                     [tex]=17[/tex]

⇒  [tex]Total \ investment=currently \ sell \ stock+dividend \ per \ share[/tex]

                                 [tex]=45+17[/tex]

                                 [tex]=62[/tex]

The number of repurchased shares will be:

=  [tex]\frac{total \ repurchase}{currently \ sells}[/tex]

=  [tex]\frac{85000}{45}[/tex]

=  [tex]1889[/tex]

So, Percentage of repurchased will be:

=  [tex]\frac{1889}{5000}[/tex]

=  [tex]37.78 \ percent[/tex]

When the share becomes bought, the overall investment value will be as follows:

=  [tex]45\times ( 1 -0.3778)[/tex]

= [tex]45\times 0.6222[/tex]

= [tex]27.999 \ or \ 28[/tex]

An important element of just-in-time processing is Group of answer choices dependable suppliers who are willing to deliver on short notice. all of the above. a specialized workforce. less emphasis on a quality control system.

Answers

Answer:

dependable suppliers who are willing to deliver on short notice

Explanation:

I will first try to explain what the concept means. just in time processing is an inventory strategy that has to do with the ordering of materials at short notice and receiving these items just in time for the production process. It decreases inventory costs and waste and also raises efficiency since goods are only going to be received as they are needed for production.

Therefore the correct answer is: dependable suppliers who are willing to deliver on short notice.

Trahan Lumber Company hired you to help estimate its cost of common equity. You obtained the following data: D1 = $1.25; P0 = $27.50; g = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock?

Answers

Answer:

The cost of equity raised by selling new common stock = 9.84%

Explanation:

Given values, the Trahan Company has D1 = $1.25 , P0 = $27.50, g = 5%, F = 6%

Now, the company wants to calculate the cost of equity that will be arising due to the selling of new common stocks.

Below is the calculation.

Cost of equity = [tex]D1/(Po-F*P0) + g[/tex]

Cost of equity = [tex]1.25/(27.50-6%*27.50) + 5%[/tex]

Cost of equity =[tex]9.84%[/tex]

The law of demand states that:________ a. a higher price will lead to increased sales. b. consumers have unlimited demands for a good. c. the price can never be too high for some consumers. d. quantity demanded will vary inversely with the price of the good.

Answers

Answer:

d. quantity demanded will vary inversely with the price of the good.

Explanation:

The law of demand states that when the price of a product increases, the quantity demanded decreases when everything else remains constant as people are less willing to purchase a product when the price is higher. This means that the price and the quantity demanded are inversely related as when one variable increases the other one decreases. According to this, the answer is that the law of demand states that quantity demanded will vary inversely with the price of the good.

The other answers are not right because the law of demand states that the price and the quantity demanded of a good are inversely related, it doesn't refer to the price and sales, consumers don't have unlimited demands for a good as it is affected by the price and the price can be too high for some consumers as when the price increases, the quantity demanded decreases.

On September 12, Vander Company sold merchandise in the amount of $8,600 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5,400. Jepson uses the periodic inventory system and the gross method of accounting for purchases. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Jepson makes on September 18 is:

Answers

Answer:

The journal entry that Jepson makes on September 18 is:

Account Payable ; Vander Company $8,600 (debit)

Discount Received $172(credit)

Cash $8,428 (credit)

Explanation:

When Vander Company sales to Jepson Company, the following entries will be recorded :

Cost of Sales $5,400 (debit)

Account Receivable : Jepson Company $8,600 (debit)

Merchandise $5,400 (credit)

Sales Revenue $8,600 (credit)

When Jepson pays the invoice on September 18, they settle their account within the discount period and is granted a Cash discount of 2%.

The Entry to be made is as follows in Vander Company  :

Cash $8,428 (debit)

Discount Allowed $172 (debit)

Account Receivable : Jepson Company $8,600 (credit)

The Entry to be made is as follows in Jepson Company  :

Account Payable ; Vander Company $8,600 (debit)

Discount Received $172(credit)

Cash $8,428 (credit)

Conclusion :

The journal entry that Jepson makes on September 18 is:

Account Payable ; Vander Company $8,600 (debit)

Discount Received $172(credit)

Cash $8,428 (credit)

The president is assisted by an executive branch organization in the preparation of a budget proposal which he submits to Congress and with the formulation of fiscal policy. This organization is called

Answers

Answer: Office of Management and Budget (OMB)

Explanation

The Office of Management and Budget is the biggest office that is within the Executive Office of the United States President. The Office of Management and Budget is also a member of the President's Executive Office and the main function of the Office of Management and Budget is to help the United States president in budget preparation.

It should also be noted that the office helps in overseeing and monitoring federal agencies performance.

A factor favoring the success of disruptive innovation is that:________.

A) incumbent firms are slow to change.

B) new entrants have highly formal organizational structures and processes.

C) the low end of the market is highly guarded.

D) incumbent firms focus on radical innovation rather than incremental innovation.

Answers

Answer:

A) incumbent firms are slow to change.

Explanation:

This business model type is said to be low cost and also can be seen and tested to be highly accessible to buyers and others goods in the market. Disruptive innovation is a business model that deals with the introduction of a new product or service into a market, at a lower cost and affordable that other products or its competitors, hereby luring prospective or buyers to buying the new product; displacing the leaders or top performers in the market. Disruptive innovation is highly favoured because the incumbent firms are slow to change.

C&A's potato chip filling process has a lower specification limit of 9.5 oz. and an upper specification limit of 105 oz. The standard deviation is 03 oz. and the mean is 10 oz. What is the process capability index for the chip filling process?

Answers

Answer:

Process capability index (cp) for the chip filling process is 0.56

Explanation:

Process capability index (cp) = (Upper Specification Limit - Mean) / (3 * standard deviation) = (Mean - Lower Specification) / (3 * standard deviation)

Process capability index (cp) = (10.5 - 10) / (3*0.3)

Process capability index (cp) = 5/9

Process capability index (cp) = 0.56

On December 2, Coley Corp. acquired 1,000 shares of its $2 par value common stock for $27 each On December 20, Coley Corp. resold 400 shares for $30 each. Which of the following is correct regarding the effect of the reselling of shares on the accounting equation?
A. Assets decrease
B. Liabilities decrease
C. Expenses increase
D. Stockholders' Equity increases

Answers

Answer:

D. Stockholders' Equity increases

Explanation:

Cost of the share being resale = 400 shares x $27 = $10,800

Proceeds on the resale of shares = 400 shares x $30 = $12,000

Profit / Gain on resale = $12,000 - $10,800 = $1,200

As there is a profit of $1,200 the stockholders equity will be increased on the reselling of share.

As the assets section is increased because more cash is received against the cost of those shares.

When vertical analysis is performed: a. ratios are used to detect fraud b. changes in significant balance totals are examined c. financial statement balances are

Answers

Answer: Financial statement balances are converted to percentages.

Explanation:

Vertical analysis is a method of financial statement analysis whereby each line item will have to be listed as a percentage of the base figure that is within the financial statement. In vertical analysis, the balances in a single period are being converted to percentages.

Vertical analysis helps in comparing the financial information of a small firm to that of a big firm

Air Jamaica Vacations (AJV) requested bids from printing firms to produce travel brochures. Moore Graphic Services (Moore) responded with an offer quoting prices and terms for an agreement to produce between 100,000 and 250,000 brochures. The offer stated that sales tax would be charged and requested that AJV indicate its acceptance by signing and returning the offer. Moore then contacted one of its vendors, Starr Printing Co. (Starr), about producing the brochures and sent AJV samples of the work to be performed. Meanwhile, AJV returned the offer with some modified terms, including a handwritten notation, "no tax." Moore then told Starr it was putting "the job" on hold and told AJV that it could not perform "the job" because of a dispute about the tax. Starr printed the brochures and demanded payment. AJV refused, claiming in part that the brochures were of "poor quality." Starr filed a suit in a federal district court against AJV. AJV filed a suit against Moore, claiming a breach of contract for giving the job to Starr. Moore filed a motion for summary judgment, on the ground that there was no contract. Did Moore and AJV have a contract? Why or why not? Please explain. HTML EditorKeyboard Shortcuts

Answers

Answer:

There was no contract between Moore and AJV.

Moore sent an offer to AJV, but the offer was not accepted. Instead, AJV made a counteroffer to Moore asking them to pay the taxes themselves, not AJV. But Moore did not accept AJV's counteroffer, therefore, there was no contract between them.

In order for a legal contract to exist, both parties must accept the terms of the contract, i.e. both parties must the other party's offer. In this case, neither Moore or AJV accepted each other's offer.

Applied research is the major R&D effort of business organizations because of their desire for commercial applications.
A. True
B. False

Answers

Answer:

True.

Explanation:

In Business management, applied research is the major research and development (R&D) effort of business organizations because of their desire for commercial applications.

An applied research can be defined as a methodology used by researchers to solve a specific or particular, practical and unique issue facing an individual, group of people, or organizations in the society. Business irganizations who use an applied research are focused on proffering a solution to a specific problem facing an industry or group of people in a society.

Hence, once they're successful in their scientific research and developing the solutions, they can then be used on a large scale.

Some of the fields were business organizations that use applied research can be found are medicine, education, food, technology, crime etc.

You are offered the right to receive $1000 per year forever, starting in one year. If your discount rate is 5%, what is this offer worth to you

Answers

Answer:

Worth of the offer =$20,000

Explanation:

The worth of this offer is the present value of the annual cash inflow receivable forever discounted at the given interest rate. The cash inflow receivable forever is known as a perpetuity

The present of a cash inflow receivable forever is given below:

PV = A× 1/r

A- annual cash inflow, r- discount rate, PV - Present value of a perpetuity

A- 1,000, r- 5%

PV = 1,000 × 1/0.05

PV = $20,000

Worth of the offer =$20,000

Ryan, age 57, is single with no dependents. In 2019, Ryan's principal residence was sold for the net amount of $400,000 after all selling expenses. Ryan bought the house in 2002 and occupied it until it was sold. On the date of sale, the house had a basis of $180,000. Ryan does not intend to buy another residence. What is the maximum exclusion of gain on sale of the residence that may be claimed on Ryan's 2019 income tax return

Answers

Answer:

$220,000

Explanation:

The maximum exclusion of the gain on sale of the residence which may be claimed on Ryan's 2019 income tax return will be $220,000($400,000-$180,000) because the principal residence was been sold for the net amount of $400,000 after all selling expenses in which the house was bought in 2002 and on the date of sale, the house had a basis of $180,000 given us the amount of the $220,000 as the maximum exclusion of gain on sale of the residence which may be claimed on Ryan's 2019 income tax return.

Insurance companies are rated by several rating agencies. The Fitch 20-point scale is AAA, AA+, AA, AA–, A+, A, A–, BBB+, BBB, BBB–, BB+, BB, BB–, B+, B, B–, CCC+, CCC, CCC–, DD. (a) What level of measurement does this scale use?

Answers

Answer:

The ordinal measurement

Explanation:

In this question, we are concerned with knowing the level of measurement used by this scale

The correct answer to this is the ordinal measurement.

What the ordinal scale does is that it places events in order but it does not take into account the fact that the intervals of the scale need to be equal using some sets of rule.

It only places the intervals into groups of subdivisions without having a rule that uses an interval to place members of each subdivision into their class

Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) 210 150 200 Ending (units) 150 200 240 Variable costing net operating income $290,000 $279,000 $260,000 The company’s fixed manufacturing overhead per unit was constant at $550 for all three years. rev: 03_09_2019_QC_CS-162392 Required: 1. Calculate each year’s absorption costing net operating income.

Answers

Answer and Explanation:

The computation of each year’s absorption costing net operating income is shown below:-

Particulars                         Year 1           Year 2          Year 3

Beginning inventories       210             150                  200

Less: Ending inventories   150             200                  240

Change in inventories       60               -50                  -40

Fixed Manufacturing Overhead

Beginning Inventory       $115,500      $82,500        $110,000

                             ($550 × 210) ($550 × 150) ($550 × 200)

Less: Fixed Manufacturing

Overhead in ending

inventory                          $82,500     $110,000         $132,000

                             ($550 × 150) ($550 × 200) ($550 × 240)

Fixed Manufacturing

Overhead deferred

in (released from)

inventory                         $33,000     -$27,500         -$22,000

Variable Costing

net Operating

income                             $290,000   $279,000      $260,000

Add (deduct) Fixed MOH cost

deferred in (released from)

inventory under absorption

costing                              -$33,000     +$27,500         +$22,000

Absorption costing net

operating income             $257,000  $306,500         $282,000

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