Answer:
Cost of equity = 9.6%
Explanation:
The cost of equity is the return a firm theoretically pays to its equity investors, In order to calculate the cost of equity here we need to add up the yield to maturity for the company's long term debt and the risk premium per year over the yield on its long term debt.
Solution
Cost of equity = Yield to maturity + Risk premium
Cost of equity = 6.4% + 3.2%
Cost of equity = 9.6%
What is the expected yield on the market portfolio at a time when Treasury bills are yielding 6%, and a stock with a beta of 1.5 is expected to yield 18%
Answer:
8%
Explanation:
According to CAPM :
expected stock yield =risk free rate + (beta x market yield)
6% + 1.5 x market yield = 18%
18% - 6% = 1.5market yield
solving for market yield gives
market yield = 8%
Many of today’s ____________________ systems concentrate on hiring and managing existing employees to get the total potential of the human talent in the organization.
Answer:
The correct answer is: Human Resource Management
Explanation:
To begin with, the Human Resource Management Systems are the ones that focus on the managing of the human factor inside the organization with the purpose of making easier the processes of hiring, collecting data and more. So therefore that this systems concentrate on hiring and managing existing employees to get the total potential of the human talent in the organization by having a better and more organized place in where the managers can deal with those issues and other stuff related to that.
The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called a.absorption cost analysis b.cost-volume-profit analysis c.variable cost analysis d.capital investment analysis
Answer:
d.capital investment analysis
Explanation:
Capital Investment Analysis uses methods such as Payback period, Accounting Rate of Return, Net Present Value to evaluate the the most suitable investment decisions involving fixed asset and this is known as capital investment analysis.
The following table lists all costs of quality incurred by Sam's Surf Shop last year. Annual inspection costs Annual cost of scrap materials Annual rework cost Annual cost of quality training Annual warranty cost Annual testing cost $ 172,000 356,000 104,679 526,000 1,686,000 535,000 What was Sam's appraisal cost for quality last year?
Answer:
$707,000
Explanation:
Calculation for Sam's appraisal cost for quality last year
Using this formula
Appraisal cost = Annual inspection costs + Annual testing cost
Where,
Annual inspection costs =$172,000
Annual testing cost=$535,000
Let plug in the formula
Appraisal cost = $172,000 + $535,000
Appraisal cost = $707,000
Therefore Sam's appraisal cost for quality last year will be $707,000.
Problems which deal with the direct distribution of products from supply locations to demand locations are called:____________.
a. Transportation problems
b. Assiignment problems
c. Network problems
d. Transshipment problems
Answer:
a. Transportation problems
Explanation:
In Business management, problems which deal with the direct distribution of products from supply locations to demand locations are called transportation problems.
Transportation is a supply chain technique which primarily includes all of the process involved in the distribution of finished goods and services from the production line to the consumers or end users, so as to meet their needs or wants.
Knowledge Check 01 On December 31, 2019, Wintergreen, Inc., issued $150,000 of 7 percent, 10-year bonds at a discount of $10,125. The bonds pay interest semiannually. Wintergreen uses the straight-line bond amortization method. The entry to record each interest payment includes a debit to Bond Interest Expense for $5,756, a credit to Discount on Bonds Payable for $506, and a credit to Cash for $5,250. At December 31, 2020, the carrying value of the bonds will equal _____.
Answer:
Carrying value of bond = $140,887 .50
Explanation:
Balance in discount on bonds account as on Dec 31, 2019 = Total discount on bonds - amortized discount on 30 June, 2019 - discount amortized on Dec 31, 2019
= $10,125 - $506.25 -$506.25
= $9,112.50
Carrying value of the bond = Face value of bond - Balance in discount on bonds account.
= $150,000 - $9,112.50
= $140,887 .50
Note:
Amortization of discount on bonds = Total discount on bond / total number of interest payments
= $10125/(10×2)
= $10125/20
= $506.25
Rather than crediting the Unearned rent account for $400 of prepaid rent received from a customer, which explains an alternate recording procedure to journalize this receipt?
Answer:
Record receipt with a credit to the rent revenue account
Any unused portion of the prepayment still existing at the end of the period will be transferred to the Unearned rent account
Explanation:
Prepaid rent is an income that is to be earned at a future date. Since income is normally recorded as a revenue when it is earned, we usually credit Unearned Rent account.
However financial statements are made at end of a defined period (for example monthly, quarterly, biannually, or yearly).
The journal entry can be credited to the Rent Revenue account directly. At the end of the period the amount earned is retained in the account, and the unearned portion of the prepaid rent is transferred to the Unearned Rent account.
So financial statements will only recognise earned income when prepared.
Consider a firm Theta that spends $60 to produce goods in year 1. In year 2 it sells these goods for $100, but its customers pay their bills with a delay, therefore the payment is not received until year 3. What's the amount of net income recorded on the income statement for each year?
Answer:
Theta
Amount of net income for each year:
Year 1 = $0
Year 2 = $40 ($100 - $60)
Year 3 = $0
Explanation:
The net income to be recorded in Theta's income statement depends on the period in which revenue is recorded. In year 1, Theta would accumulated Ending Inventory of $60 being the cost of its finished goods inventory. Since it has not made any sales, there is no net income to record, which is always the difference between revenue and cost of goods or services sold. In year 2, the actual sales revenue was made and recorded in the accounts. This is the period for Theta to calculate its profit against the cost of goods sold. In year 3 when cash payment was received from customers, the accounts of Theta would record the receipt only in settlement of the customer debt. This transaction does not affect the revenue or the cost of goods sold, two important elements for determining the profit made.
A food manufacturer reports the following for two of its divisions for a recent year.
($ millions) Beverage Division Cheese Division
Invested assets, beginning $2,680 $4,473
Invested assets, ending 2,602 4,409
Sales 2,690 3,934
Operating income 358 643
Required:
1. Compute return on investment.
2. Compute profit margin.
3. Compute investment turnover for the year.
Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division.
Answer:
a. Return on Investment
ROI= Operating income/Average invested assets
Beverage Division ROI = 358 / (2,680+2,602) /2
= 358 / 2,641
= 0.13555
= 13.56%
Cheese Division ROI = 643 / (4,473 + 4,409)/2
= 643 / 4,441
= 0.14478
= 14.48%
b. Profit margin
Profit Margin= Operating income / Sales
Beverage Division = 358 / 2690
= 0.13309
=13.31%
Cheese Division = 643 / 3934
= 0.16345
= 16.35%
c. Investment turnover for the year
Investment turnover = Sales / Average invested assets
Beverage Division = 2690 / 2641 = 1.02
Cheese Division = 3934 / 4441 = 0.89
d. Beverage$'m Cheese'million
Average Assets 2641 4441
Targeted return 8% 8%
Target income 211 355
Residual Income Beverage'm Cheese'm
Operating income 358 643
Less: Target income 211 355
Residual Income 147 288
How is one product determined to specialize in between the two
Answer:
Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency. Many countries, for example, specialize in producing the goods and services that are native to their part of the world, and they trade them for other goods and services.
Mark it as Brainliest if it helps!!!
If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles
Answer:
a decrease in equilibrium quantity
an indeterminate effect on equilibrium price.
Explanation:
An increase in the price of steel would raise the production cost of cars. as a result the supply curve would shift inwards or to the left. price would rise and quantity would fall.
A rise in the price of gasoline would increase the cost of fuelling one's car. As a result the demand for cars would fall. the demand curve would shift inward. Quantity and price would fall.
Taking these two effects together, there would be a decrease in equilibrium quantity but an indeterminate effect on equilibrium price.
Check the attached image for a diagram explaining the effects of these changes
You are considering purchasing one of two assets. Asset 1 has payments of 5,000 at the end of year 1, 10,000 at the end of year 3, and 15,000 at the end of year 5. The price for Asset 1 today is 26,000. Asset 2 has payments of 12,000 at the end of year 4 and 20,000 at the end of year 5. The price of the asset 3 years from now is 29,500. If the current spot curve is below, what is the one year forward rate, deferred three years? Term 1 2 3 4 5 Spot Rate 3.00% 3.40% s3 s4 4.25%
Answer:
hello attached below are the missing option related to your question
5.45% ( D )
Explanation:
Given data:
for asset 1
cost of asset = $26000
Year 1 payments = $5000, year 3 = $10000, year 5 = $15000
For asset 2
cost of asset 2 three years from now = $29500
year 4 payments = $12000, year 5 payments = $20000
Calculate the one year forward rate deferred three years
find the value of [tex](1+s3)^3[/tex] using asset 1
2600 (cost of asset now ) = 5000/ (1.03 +10000) / ((1 +s3)^3 +15000))/ 1.0425^5
from the above equation
(1 +s3)^3 = 1.11559
Now to get the one year forward rate deferred three years we determine that value using asset 2
29500 = 12000 / (1+1 year rate deferred for 3 years) + 220000/(1.0425^5/(1+s3)^3)
hence ( 1 + 1 year rate deferred for three years )
= 12000/(29500-20000)/(1.0425^5)*1.11559)
= 12000/(9500)/(1.0425^5)*1.11559
1 year rate deferred for three years = 5.447% ≈ 5.45%
Investment in human capital is very similar to investing in physical capital. True or false? Explain your answer.
Answer:
True.
Explanation:
This statement is true because investing in human capital and physical capital has the similarity that these assets will lead the organization to carry out its processes, achieve its objectives and goals, and generate liquidity, therefore the similarity is in the importance of capital for the organization.
Human capital can be more difficult to measure, as it is intangible, and physical capital is easier to measure and analyze what the return provides for organizational activities.
However, there are ways to measure how human capital positively impacts the company, so it is necessary to have an effective management that provides the best investment of the ideal human and physical capital for your needs.
The strategic appeal of related diversification is that it Multiple Choice allows a firm to reap the competitive advantage benefits of skills transfer, lower costs (due to economies of scope), cross-business use of a powerful brand name, and/or cross-business collaboration in creating stronger competitive capabilities. is less capital intensive than unrelated diversification because related diversification emphasizes getting into cash cow businesses (as opposed to cash hog businesses). involves diversifying into industries having the same kinds of key success factors. is less risky than unrelated diversification because it avoids the acquisition of cash hog businesses. facilitates the achievement of greater economies of scale since the company only enters those businesses that serve the same types of buyer groups and/or buyer needs.
Answer: allows a firm to reap the competitive advantage benefits of skills transfer, lower costs (due to economies of scope), cross-business use of a powerful brand name, and/or cross-business collaboration in creating stronger competitive capabilities.
Explanation:
Related diversification is when an organization expands its business by producing products which are similar to what it currently produces. In related diversification, there's identical product lines. An example is a computer manufacturer producing calculators.
Organizations that go into related diversification enjoys lower costs and competitive advantage over their counterparts.
The stock pays a dividend of $2 per year and its price is $80. If the market return is 7% and the risk-free rate is 1%, what is the stock beta? A. 0.4 B. 0.5 C. 0.25 D. 0.1
Answer:
The beta of the stock is 0.25 and option C is the correct answer.
Explanation:
The current price of a stock which pays a constant dividend can be determined using the zero growth dividend model of DDM. The formula to calculate the price under this model is,
P0 = Dividend / r
Where,
r is the required rate of return on the stockAs we already know the value of P0 and Dividend, we can plug in these values in the formula and calculate the value of r.
80 = 2 / r
80 * r = 2
r = 2 / 80
r = 2.5% or 0.025
The required rate of return can also be calculated using the CAPM equation. The formula for r under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free raterM is the return on marketTo calculate beta, we will input the values for r, rRf and rM in the CAPM equation.
Let beta be x.
0.025 = 0.01 + x * (0.07 - 0.01)
0.025 - 0.01 = x * 0.06
0.015 / 0.06 = x
x = 0.25
Thus, beta is 0.25
A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. a. What is the total rate of return on the stock?
Answer:
The total rate of return on the stock is 14%.
Explanation:
The sources of income from a stock are dividends and increase in its value. Therefore, the total rate of return on stock is calculated by dividing the addition of appreciation in the of the stock and dividends paid by the original stock price.
Therefore, the total rate of return on the stock can be calculated using the following formula:
Total rate of return = [(P1 - Po) + D] / Po .......................... (1)
Where;
P1 = Ending stock price = $44
Po = Initial stock price = $40
D = Dividend paid = $2
Substituting the values into equation (1), we have:
Total rate of return = [(44 - 40) + 2] / 44
Total rate of return = [4 + 2] / 44
Total rate of return = 6 / 44
Total rate of return = 0.14, or 14%
A company reported that its bonds with a par value of $50,000 and a carrying value of $57,500 are retired for $60,600 cash, resulting in a loss of $3,100. The amount to be reported under cash flows from financing activities is:
Answer:
The amount this company would report under cash flows from financing activities is $60,600.
Explanation:
These cash flows of $60,600 represent the actual cash outflows, an amount that bondholders would receive from the company in retirement of the bonds. The statement of cash flows records the actual cash inflows and outflows of a company transactions during a particular accounting period. Every item is adjusted to reflect the actual cash flows. It is strictly based on the Cash Basis of accounting instead of the accrual basis.
A company purchased money market funds with cash during the current year. Which of the following statements is correct?
A. This transaction will result in a decrease in cash from investing activities.B. This transaction will result in a decrease in cash from operating activities.C. This transaction will result in a decrease in cash from financing activities.D. This transaction will not cause a change in cash from operating, investing, or financing activities.
Answer: This transaction will not cause a change in cash from operating, investing, or financing activities.
Explanation:
When a company purchased money market funds with cash during the current year, it should be noted that this will transaction will not cause a change in cash from operating, investing, or financing activities. This is because the purchase was made with cash during the current year.
A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.
a. True
b. False
Answer:
A. True
Explanation:
Answer: A. True
Explanation: The process of bank loans.
The right of a defaulted taxpayer to recover his or her property before its sale for unpaid taxes is the: Group of answer choices statutory right of r
Answer:
equitable right of redemption
Explanation:
the right of redemption gives those people who can be referred to as defaulted taxpayers the right to recover their properties before it is sold off due to unpaid taxes.
This person is able to take back the property following a legal process which can be called Foreclosure. The individual will have to pay the balance of what is owed and also pay for all those costs that occured during the process of disclosure. This right has a time frame for it to be exercised(redemption period).
It is always necessary for an agent to disclose the identity of the principal to any third person with whom he is contracting; otherwise the contract becomes void.
a. True
b. False
Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $3,425 in employment-related miscellaneous itemized deductions. They also incur $5,375 of investment interest expense during the year. The Porters' income for the year consists of $178,500 in salary and $4,495 of interest income.
What is the amount of Porters' investment interest expense deduction for the year?
Answer:
$4,995
Explanation:
Calculation of the amount of the Porters' investment interest expense deduction for the year
Based on the information given we were told that Porters' income consists of the amount of
$4,495 of interest income which means that $4,995 will be the investment interest expense deduction for the year. While the amount of $380 ($5,375-$4,995) will be the amount that will be carried forward to the following year.
Therefore Porters' investment interest expense deduction for the year will be $4,995
A trader maintains a position in a small capitalization stock that has low trading volume. The trader has a high level of which of the following risks?
A) MarketB) LiquidityC) BusinessD) Inflation
Answer:
B) Liquidity
Explanation:
Liquidity is the ability of quickly buy or sell a stock without any price change.
Liquidity in a small-capitalization stock that has low trading volume is generally low that causes a problem for traders. It is so because in small capitalization, traders are unable to understand potential pitfalls and blindly invest in small-capitalization stocks which do not give profit as expected and the liquidity becomes low.
Hence, the correct answer is B) Liquidity.
In ________, the producer marks the reduced prices directly on the label or package. These offer consumers savings off the regular price of a product and are very effective in stimulating short-term sales.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Promotional products
b) Coupons
c) Cents-off deals
And the correct answer is the option C: Cents-off deals
Explanation:
To begin with, the term of "Cents-off Deals", in the business and marketing field, refers to the strategy used as a type of sales promotion that focus on the fact of offering a brand at a lower price and that reduction of the price might be on the label of pachage on purpose so the consumers will see it right away when the have the product in hands. Moreover, this type of strategy is very effective in stimulating short-term sales due to the fact that it generates an inmediate reaction in the consumer when they see the offer.
Data concerning Lemelin Corporation's single product appear below:
Per Unit Percent of Sales
Selling price $ 230 100 %
Variable expenses 115 50 %
Contribution margin $ 115 50 %
The company is currently selling 7,000 units per month. Fixed expenses are $581,000 per month.
The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $37,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,600 units. What should be the overall effect on the company's monthly net operating income of this change?
a. increase of $302,200
b. decrease of $118,200
c. decrease of $7,800
d. increase of $118,200
Answer:
lol
Explanation:
Now don't get us wrong – not all of these answers raise this excellent question
n the cash flow information for the Ping Kings project, Ping spent $300,000 for research and development of the golf clubs. Ping's tax rate is 40%. How much of this cost should be included in the initial (t = 0) cash flow for this project
Answer: C. $0
Explanation:
When including initial costs in a project's cash-flow, the relevant costs are those that henceforth will be spent on the project. Sunk costs are not to be included because they have already been incurred and cannot be recovered.
Research and Development costs have already been incurred and so are sunk costs. Hence they are not to be included in the initial cash-flow for the project.
The amount of the cost that should be included in the initial (t = 0) cash flow for Ping Kings' Project is D. $300,000.
This is a cash outlay (outflow). It bears a negative value. The initial cash flow cannot be $120,000, $180,000, or $0 because of Ping's tax rate of 40%. Under the FASB, Research and Development costs are capitalized.
Secondly, tax is not applied on capital investment but its net income.
Options for this question include:
A. $120,000
B. $180,000
C. $0
D. $300,000
Learn more: https://brainly.com/question/18958117
U.S. net capital outflow Group of answer choices is a source of the supply of loanable funds, and the source of the supply of dollars in the foreign exchange market. is a source of the supply of loanable funds, and a source of the demand for dollars in the foreign exchange market. is a part of the demand for loanable funds, and the source of the supply of dollars in the foreign exchange market. is a part of the demand for loanable funds, and a source of the demand for dollars in the foreign exchange market.
Answer:
Option D would be the correct choice.
Explanation:
The net capital outflow has been the discrepancy among purchasing foreign assets from a region, as well as selling domestic currency worldwide. Find a basket of products similar across both the United States or even just Taiwan. Such net capital outflows allude to something like the disparity between households and businesses acquiring overseas investments versus non-residents acquiring domestic currency.The other options in question aren't relevant to the particular context. So choice D is perhaps the right one.
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 Required: 1. What is the contribution margin per unit
Answer:
Unitary contribution margin= $8
Explanation:
Giving the following information:
Sales $ 20,000
Variable expenses 12,000
Contribution margin 8,000
To calculate the unitary contribution margin, we need to use the following formula:
Unitary contribution margin= total contribution margin / total units
Unitary contribution margin= 8,000 / 1,000
Unitary contribution margin= $8
When you view a selection at Amazon and see "Customers who bought this (item) also bought ...," you are seeing the application of
Answer: collaborative filtering
Explanation:
Collaborative filtering is a technique thta helps to filter out the things that a user can like base on how other identical users react. Here, a small sample of the people with similar taste will be chosen from a larger group.
When you view a selection at Amazon and see "Customers who bought this (item) also bought ...," you are seeing the application of collaborative filtering.
2. An entrepreneur must make sure to budget carefully since they oversee their own company's finances.
True
False
Answer:
True .....this is because the entrepreneur is the risk bearer of the business...he is liable for any profit/loss.