Answer:
a. Value before dividends are paid out;
= Current Profits * ( 1 + opportunity cost of funds) / ( Opportunity cost - growth rate)
= 650,000 * ( 1 + 0.07) / 0.07 - 0.05)
= $34,775,000
= $34.775 million
b. Value after dividends
= Current Profits * ( 1 + growth rate) / ( Opportunity cost - growth rate)
= 650,000 * ( 1 + 0.05) / 0.07 - 0.05)
= $34,125,000
= $34.125 million
Why would an e-mail rule memo like this work better as an innovation-driven company such as Tesla rather than at a manufacturing-driven company such as General Motors
Answer:
An e-mail rule memo like this work better as an innovation-driven company such as Tesla rather than at a manufacturing-driven company such as General Motors is discussed below in details.
Explanation:
The general motor is a very large business in each department with numerous tiers of hierarchy. then departments of the hierarchy are likely to report each other. the company's overall structure is very bureaucratized. one of the disadvantages is that when it comes to decision making and policymaking. General Motors are a slow-moving business. However, this bureaucracy is required by the big organizational structure to keep it together.
Tesla is a business that is younger and relatively lower than General motors because of this general motor funds are likely to be lacking but they are agile and that is their benefit.
An e-mail rule is a rule that determines the better way to mail the messages formally or informally. Tesla is a business that is younger and relatively lower than General motors because of this general motor funds are likely to be lacking but they are agile and that is their benefit.
The reason e-mail rule memo works better as compared to innovation-driven is:
The general motor holds a very large economic activity in each department with numerous tiers of hierarchy and then these departments of the hierarchy are likely to report each other, the company's overall structure is very bureaucratized. One of the disadvantages of this is that when it comes to decision making and policymaking. General Motors are a slow-moving business. However, this bureaucracy is required by the big organizational structure to keep it together.
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In a monopolistically competitive industry, price:______
a. is most likely a bit higher than the competitive market price because of the cost of variety.
b. will exceed the monopoly price due to the destructiveness of competitive forces.
c. will be lower than the competitive price due to cost savings.
d. is contingent on the behavior of other firms because they are mutually interdependent.
Answer:
a
Explanation:
In a monopolistically competitive industry, price is most likely a bit higher than the competitive market price because of the cost of variety.
In a monopolistically competitive market, firms tend to set their prices to be higher than those of the marginal cost. This invariably translates to the fact that market is never really able to be productively efficient.
Firms in monopolistically competitive markets tend to wield the same power, since they're all price makers, they have a low degree of market power.
Which of the following describes the purpose of the Federal Deposit
Insurance Corporation (FDIC)?
O A. To manage the economy by controlling the money supply.
B. To set the required reserve ratio for banks in the United States.
C. To prevent the demand for withdrawals from rising above 10
percent
D. To make sure customers don't lose money if their bank fails.
Answer:
D. To make sure customers don't lose money if their bank fails.
Explanation:
The Federal Deposit Insurance Corporation, or simply the FDIC, is an independent agency whose mandate ensures customers do not lose their deposits should a bank or any other financial institution fails. The FDIC insures customer deposits up to a stated limit per person, per bank, per each account category. The insurance coverage is automatic to all account holders in an FDIC insured bank.
The Federal Deposit Insurance Corporation is financed by the insurance premiums paid by banks and other institutions. The FDIC’s scope covers checking accounts and savings such as money market accounts and certificates of deposit (CDs).
D is the answer!
source : ay p ex
Carter's preferred stock pays a dividend of $1.40 per quarter. If the price of the stock is $69.00, what is its nominal (not effective) annual expected rate of return?
Answer:
Carter's preferred stock nominal annual expected rate of return is 8.12%.
Explanation:
Nominal annual expected rate of return of a preferred stock can be described as the current or unadjusted rate of return of the stock.
The nominal annual expected rate of return can be calculated as follows:
Nominal annual expected rate of return = Annual preferred stock dividend per share / Preferred stock price ............. (1)
Where;
Annual preferred stock dividend per share = Dividend per quarter * 4 = $1.40 * 4 = $5.60
Preferred stock price = $69.00
Substituting the values into equation (1), we have:
Nominal annual expected rate of return = $5.60 / $69.00 = 0.0812, or 8.12%
Therefore, Carter's preferred stock nominal annual expected rate of return is 8.12%.
The amount of loss (lower profit or higher cost) from not making the best decision for each state of nature is known as:______.a. best payoff.
b. opportunity loss.
c. risk profile.
d. utility.
Answer:
b. opportunity loss.
Explanation:
The opportunity loss means the loss that arises by taking the difference between the profit i.e. optimal and the actual payoff received for a specific decision. It could occurred at the time when the best alternative is not picked up.
Therefore according to the given options, the option b is correct as it meets the criteria given in the question
Hence, all the other options are incorrect
Bonanza Gold’s common stock currently sells for $32 per share. Bonanza’s investment banker charges 6.5 percent flotation costs when new common stock is issued. The company expects to pay a $3.36 per share dividend at the end of the year. If Bonanza’s cost of retained earnings is 15.5 percent, what is its cost of new common equity?
Answer:
16.23%
Explanation:
The formula share price below can be used to determine the cost of new common equity by making the cost of equity Ke the subject of the formula as below:
cost of retained earnings=dividend/share price+dividend growth rate
15.5%=$3.36/$32+dividend growth rate
dividend growth rate=15.5%-($3.36/$32)=5.00%
Cost of new equity=dividend/share price(net of flotation cost)+dividend growth rate
share price(net of flotation cost)=$32*(1-6.5%)=$29.92
Cost of new equity=($3.36/$29.92 )+5.00%
cost of new common equity=16.23%
11. Paying off a consumer loan prior to its maturity Paying Off Installment Loans Some installment loans include terms that charge a penalty if the borrower pays off the loan earlier than its maturity date. The specific terms can vary so it’s important to know if a loan you’re considering provides for a prepayment penalty and if it does, what its exact terms are. A common way to compute a penalty is the sum-of-the-digits method. You and your friend recently took out installment loans. You expect to pay off your loan before its maturity date, so you made sure that the contract: Provides for the use of the Rule of 78s Does not contain a prepayment penalty clause Provides for the use of the sum-of-the-digits method Your friend didn’t anticipate being able to pay off the loan before its maturity date—until he won a lot of money in the lottery, enough to pay it off. He decided to pay off the loan today rather than invest his winnings. What’s the most likely reason why? The loan contract would use the sum-of-the-digits method to compute interest if your friend paid off the loan before its maturity date. The interest rate on the loan is lower than the rate of return your friend would earn on his investment. The contract does not contain a prepayment penalty clause. True or False: Computing interest using the sum-of-the-digits method allocates more interest at the beginning of a loan than at the end of the loan. True or False
Howard Company has 10,000 shares of $200 par value, 6% cumulative preferred stock and 150,000 shares of $50 par value common stock. Howard declares and pays cash dividends amounting to $800,000. If no arrearage on the preferred stock exists, how much in total dividends is paid to each class of stock
Answer:
Dividend - Preferred stock = $120000
Dividend - Common stock = $680000
Explanation:
The amount of dividend that is paid to each class of stock can be calculated by first calculating the dividend payable to preferred stock. The amount of dividend on preferred stock is fixed and is paid before the common stockholders are paid. Thus, dividend on preferred stock per year is,
Dividend - Preferred stock = 10000 * 200 * 0.06 = $120000
Thus, out of $800000 cash dividends, $120000 will be paid on the cumulative preferred stock.
Remaining dividend = 800000 - 120000 = $680000
The remaining $680000 will be paid to the common stockholders.
An import restriction (tariff or quota) creates a net loss in welfare for the importing nation because:___________
a. Domestic production rises in the importing country
b. Income is transferred from consumers in the importing nation to domestic producers
c. Income is transferred from consumers in the importing nation to their government
d. All of the above
e. None of the above
Answer:
Explanation:
An import restriction as the term implies is done to limit the amount of a certain good that is imported into the country. Usually this is done to protect the domestic producers of the good in question who are not be as efficient as the country being imported from and so charge higher prices.
The people in the economy will experience a net loss in welfare because they will now be paying higher prices and as well will be transferring some of their income to their government because import restrictions like tariffs will see their costs passed on to the consumer.
During project initiation, priorities and procedures are often most important, but as the project proceeds ____________ issues become the predominant source of conflict.
Answer:
Especially during the middle and latter stages of the project, schedule
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
Generally, the fundamentals or basics of project management are essentially considered universal across most professions, careers and businesses.
The fundamentals of project management includes;
1. Project initiation
2. Project planning
3. Project execution
4. Monitoring and controlling of the project
5. Adapting and closure of project.
During project initiation, priorities and procedures are often most important, but as the project proceeds, especially during the middle and latter stages of the project, schedule issues become the predominant source of conflict because project managers are saddled with the responsibility of delivering or executing the project within the time frame cited.
Hence, it is very important and essential that project managers in various organizations, businesses and professions adopt the aforementioned fundamentals in order to successfully achieve their aim, objectives and goals set for a project.
The combination of debt financing and equity financing that maximizes a firm's value is known as its:
Answer:
optimal capital structure
Explanation:
optimal capital structure can be regarded as a combination of
of debt and equity financing which brings about maximization of amarket value in a firm. It should be noted that optimal capital structure is the combination of debt financing and equity financing that maximizes a firm's value.
On January 1, 20XA, Tie Company purchased a machine that had a sticker (list) price of $22,000. The seller agreed to allow Tie Company to pay for the machine over a three-year period at 10% interest on the unpaid balance and with equal payments of $8,444 due at the end of 20XA, 20XB, and 20XC. The amount that should be debited to the asset account, Machinery, on the day the contract was initiated is (rounded to the nearest dollar)A) $27,865.B) $25,332.C) $22,000.D) $20,999.E) None of the above is correct.
Answer:
I cant understand that question
The amount that should be debited to the asset account, Machinery, on the day the contract was initiated is $22,000. Option C is correct.
What is Machinery?Land, machinery, vehicles, furniture, computer equipment, buildings, and other equipment are examples of fixed assets. Depending on how a corporation conducts business, fixed assets can vary.
Machinery is a noncurrent asset, often known as a fixed asset. A long-term investment made by your organization that is unlikely to or does not easily convert to cash within an accounting year is referred to as a noncurrent asset.
Therefore if a machinery has been acquired on credit and the payment will be made in three equal installment payable annually then the asset shall be recognized at cost of acquisition i.e. $22000 original cost requiring the asset to bring in it present and current location and condition.
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Naomi complains to Andy that he "hasn’t been here – until now, when we’re in crisis mode." Based on this statement, Andy is most likely viewed as a(n) ________ leader by Naomi.
a. passive management by exception
b. active management by exception
c. transformational
d. laissez-faire
e. contingent reward
Answer: a. passive management by exception
Explanation:
Even though this might sound like it is laissez-faire leadership, it is not.
This is a passive management by exception leadership style and a leader that does this is usually inactive and absent from their duties unless mistakes are being made or crisis are popping up that need to be fixed. They will then spring into action to mitigate the adverse effects of their absence.
This is different from laissez-faire leadership because in laissez-faire, the leader is simply absent even during crisis.
Based on the given statement, it is the passive management by exception that leader by Naomi.
The following information should be considered related to the passive management by exception :
In this, the leader is not active also it is absent from the duties until the mistakes should be made or the crisis should be popping up the requirement to be fixed. After this, there is the transformation of the spring into action for decreasing the opposite impacts.Therefore we can conclude that the correct option is a.
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What is the line manger
Answer:
it a person that is in line to be the nexted manger
Explanation:
At an output level of 17,500 units, you have calculated that the degree of operating leverage is 3.26. The operating cash flow is $78,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for 18,500 units and 16,500 units? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) DOL at 18,500 units DOL at 16,500 units
Answer:
DOL at 18,500 = 2.91 DOL at 16,500 = 3.78Explanation:
First find out the Contribution margin per unit and the fixed costs to enable you calculate the profit for the 18,500 units and the 16,500 units.
DOL = Contribution Margin/ Profit
3.26 = Contribution Margin/ 78,000
Contribution Margin = 3.26 * 78,000
= $254,280
Per unit = 254,280/17,500 = $14.53
Fixed Costs = Contribution - Profit
= 254,280 - 78,000
= $176,280
DOL at 18,500 units.
Profit = (14.53 * 18,500) - fixed costs of $176,280
= $92,525
DOL = Contribution/ Profit
= (14.53 * 18,500) / 92,525
= 2.91
DOL at 16,500 units.
Profit = (14.53 * 16,500) - 176,280
= $63,465
DOL = (14.53 * 16,500) / 63,465
= 3.78
If fruit vendors in India had consumed one less cup of tea per day and invested the money in their business, their income at the end of the day would have been _______ after thirty days.
Answer: Lesser
Explanation:
Despite it might not looks noticeable but shortage really affects production or business, especially when it's done consistently. The amount of reduction it would experience at the end of the month would be tremendous compared to the thought that it's just a little cup of tea.
Select the correct answer
Which factor increases the risk of is project delays?
Options on picture
Answer:
B. Shortage of technical staff
Explanation:
It's 100% not D. I took the test and got it wrong
Question 16 of 20
Frank just met with his marketing team to create his billboard sign. So far, he
knows the billboard will have a catchy slogan, a brief description about the
company and what makes them different, and information directing
customers to visit his website. What element of an effective advertisement is
Frank's billboard missing?
A. Unique selling proposition
B. Call to action
C. Appropriate information
O D. Exciting graphics and color
Answer:
b. call to action
Explanation:
An element of an effective advertisement is Frank's billboard missing is Call to action. Thus the correct option is B.
What is advertisment?An advertisement is referred tool of promotion to create awareness of any product among customers and persuade them to make a purchase which helps in the sales of the product.
In this paragraph, it is described that Billboards have a catchy slogan that gets successful gets the attention of the customer, and influences them to make a visit to their website.
The element of effective advertising which the billboard is missing is a call to action that encourages customers to take action of buying. Here Billboards is unable to tell a story to engage customers so that they will not turn their actions of buying.
Therefore, option B is appropriate.
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Amy is single. During 2020, she determined her adjusted gross income was $12,000. During the year, Amy also contributed $2,500 to a Roth IRA. What is the maximum saver's credit she may claim for the year
Answer:
$1,000
Explanation:
Calculation for the maximum saver's credit she may claim for the year
For us to know the maximum saver's credit amount that she may claim for the year we have to know the standard maximum contribution amount that is eligibe for the maximum saver's credit which is the amount of $2,000 and then we multiply the amount by the standard filing status and AGI percentage which is 50%
Hence:
Maximum saver's credit=$2,000*50%
Maximum saver's credit=$1,000
Therefore the maximum saver's credit she may claim for the year will be $1,000
What would be the marginal and average tax rates for a married couple with taxable income of $90,000
A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because:_______
a. price and marginal cost is higher than marginal revenue.
b. marginal cost is equal to zero.
c. price is lower than marginal cost.
d. average cost and marginal cost are equal.
Answer:
D
Explanation:
A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because average cost and marginal cost are equal.
Answer:
The correct choice is - Price is equal to the Marginal Cost.
Explanation:
Socially desirable price refers to the point on the graph where the demand (D) stands equal to or intersects the marginal cost (MC). That is MC = D.
The challenge with setting prices like this is that the business in arriving at the price of its product(s) and or service(s) has not taken into consideration the fixed cost to the business. To breakeven, the owner of a business must know its Average Total Cost (which takes into consideration both marginal and fixed costs) and set its prices equal to same. To make a profit however the business must set its prices above the Average Total Cost.
Recall that ATC = MC + F/Q where
ATC = Average Total Cost
MC = Marginal Cost
F = Fixed Cost
Q = Quantity of goods produced
D = Quantity of goods demanded
Cheers
International trade benefits a nation when:
a. no domestic jobs are lost because of trade.
b. all nations are specializing in producing what they do best.
c. its revenue from selling abroad exceeds its outlays from buying abroad.
d. its trading partners experience reduced economic well-being.
Answer:
C
Explanation:
I am pretty sure that this would be C, because it would not be preserving a nation if you tried to hurt it.
Answer:
all nations are specializing in producing what they do best.
What would be the approximate expected price of a stock when dividends are expected to grow at a 25% rate in each of years 2 and 3, and then grow at a constant rate of 5% if the stock's required return is 13% and next year's dividend will be $4.00?
Answer:
$68.64
Explanation:
Div₁ = $4
Div₂ = $5
Div₃ = $6.25
Div₄ = $6.5625
the terminal value at year 3 = Div₄ / (Re - g) = $6.5625 / (13% - 5%) = $82.03
P₀ = $4/1.13 + $5/1.13² + ($6.25 + $82.03)/1.13³ = $88.28/1.13³ = $68.64
Suppose apples come in two quality levels, low and high. At a store in the apple-growing region, the price of low-quality apples is $1 per pound, and the price of high-quality apples is $4 per pound. Johnny lives in the apple-growing region and buys eight pounds of each type. His marginal utility of apples is 3 utils for low-quality apples and 12 utils for high-quality apples.
a. Is Johnny maximizing his utility?
b. Suppose Johnny moves to an area outside the apple-growing region. Shipping the apples to his new area adds $2 to the price of a pound of apples, for both low- and high-quality apples. To simplify matters, assume Johnny's income increases by an amount large enough to fully offset the higher prices of apples. In other words, he can still afford the original bundle of eight pounds of each type of apples. If he continues to buy eight pounds of apples of each type, is he maximizing his utility? If not, how should he change his mix of high- and low-quality apples?
c. What are the implications for the mix of high- and low-quality apples in apple-growing areas and other regions? Where will most of the high-quality apples be sold?
Answer:
a. Is Johnny maximizing his utility?
in order to determine if Johnny is maximizing his utility we must calculate the utils per dollar spent on apples:
low = 3 / $1 = 3 utils per $high = 12 / $4 = 3 utils per $since both types of apples yield the same utility per dollar spent, then Johnny is maximizing his utility.
b. Suppose Johnny moves to an area outside the apple-growing region. Shipping the apples to his new area adds $2 to the price of a pound of apples, for both low- and high-quality apples. To simplify matters, assume Johnny's income increases by an amount large enough to fully offset the higher prices of apples. In other words, he can still afford the original bundle of eight pounds of each type of apples. If he continues to buy eight pounds of apples of each type, is he maximizing his utility? If not, how should he change his mix of high- and low-quality apples?
low = 3 / $3 = 1 util per $high = 12 / $6 = 2 utils per $Johnny is no longer maximizing his utility since he should buy less-low quality apples and more high-quality apples
c. What are the implications for the mix of high- and low-quality apples in apple-growing areas and other regions? Where will most of the high-quality apples be sold?
Since distribution costs increase the price of apples equally regardless of their quality, low-quality apples will be consumer more in the areas surrounding apple-growing fields. On the other hand, high-quality apples will be sold in larger amounts in areas far away from apple-growing fields. Distribution costs are based on weight and volume, not quality. That is why it is more profitable to sell high-quality goods far away.
Controllable margin is defined as A.sales minus variable costs. B.sales minus contribution margin. C.contribution margin less controllable fixed costs. D.contribution margin less noncontrollable fixed costs.
Answer:
answer d is correct is correct
What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $47 per share and 130 shares of Stock B that sell for $86 per share?
Answer:
Stock A = 0.3787
Stock B= 0.6212
Explanation:
The first step is to calculate the total value
= 145(47) + 130(86)
= 6,815 + 11,180
= $17,995
Therefore the portfolio weights of each stock can be calculated as follows
Stock A = 145(47)/17,995
= 6815/17,995
= 0.3787
Stock B = 130(86)/17,995
= 11,180/17,995
= 0.6212
g how much will 5500 invested at the end of each year grow in three years, assuming a interest rate of 11%
Answer:
FV= $17,105
Explanation:
Giving the following information:
Annual investment= $5,500
Interest rate= 11%
Number of periods= 3
I will assume that the annual deposit is at the end of the year.
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,500*[(1.11^2) - 1]} / 0.11 + 5,500
FV= $17,105
Harrold is the project manager for his organization and he has seven people on his project team. Who is responsible for executing the project plan and creating the project deliverables?A. Project lead.B. Project manager and the project team.C. Project manager.
D. Project team.
Answer: D. Project team
Explanation:
The project team is responsible for executing the project plan and creating the project deliverables. They are also in charge of contributing to the success of the project by making sure that the project objectives are achieved.
Each team mate has a specific role that he or she is assigned and the team should execute the tasks assigned to them successfully.
You use ________________ to communicate a risk and the resulting impact.A. risk management plansB. CBAsC. risk statementsD. POAMs
Answer:A
Explanation:
The separation of the ownership of the firm from the control of the firm leads to: ____________
a. debt financing.
b. an agency problem.
c. depreciation.
d. equity financing.
Answer:
D. Equity financing
Explanation:
Hope this helps!