Answer and Explanation:
No journal entry is required as the art museum has been elected so it is not capitalized also the value is increased i.e. from $10,000 to $50,000 so we should not capitalized it
So for this there is no requirement of passing the journal enry
Hence, the same is to be considered
One of the advantages of work group cohesiveness is: the absence of conflict with other work groups formalized group norms reduced employee turnover the absence of resistance to change groupthink
Answer:
reduced employee turnover
Explanation:
Group cohesiveness occurs at the time when the bonds between the social group members to one another or the overall group are linked with each other. It can be in social relations, emotions, task relations, etc forms
Its advantage is that it decreased the turnover of the employees .Here the objective to accomplish the goal as a group rather than an individual
Therefore the above represent the answer
On June 1, 2021, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $420,000 and a discount rate of 10%. Assuming straight-line amortization of the discount, what is the carrying value of the note as of September 30, 2021
Answer:
$413,000
Explanation:
Calculation to determine the carrying value of the note as of September 30, 2021
Carrying value=[$420,000 - ($420,000 .010*6/12)]+ [($420,000 .010*6/12)*4/6]
Carrying value=[$420,000-$21,000]+ ($21,000*4/6)
Carrying value=[$420,000-$21,000]+ $14,000
Carrying value=$399,000+ 14,000
Carrying value=$413,000
Therefore the carrying value of the note as of September 30, 2021 is $413,000
A middleman is Multiple Choice a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. a person or firm whose sole responsibility is to find distributors for a manufacturer's products. any intermediary between a manufacturer and end-user markets. a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. an intermediary that sells to ultimate consumers.
Answer:
would you still like me to help you with this question
Mesa County contracts with New Construct Inc. to build a courthouse. New Construct hires Odell to excavate the site. Odell’s work damages adjacent properties. Mesa files a suit against the excavator, who argues that the county is not named in his contract with New Construct. Most likely, the court will hold that Odell is:_________
a. not liable because Mesa is not named in Odell’s contract.
b. liable on the ground that Mesa is an incidental third-party beneficiary.
c. liable on the ground that Mesa is an intended third-party beneficiary.
d. not liable because Odell’s contract was with New Construct, not Mesa.
Answer:
c. liable on the ground that Mesa is an intended third-party beneficiary
Explanation:
In a contract, the third-party beneficiary is a business or a person that benefits from the agreement and the terms of the contract that is made between the two other parties. According to law, third-party beneficiary have certain rights which they can enforced if the contract is not fulfilled.
In the context, Mesa is a third party beneficiary. The Mesa County enters into a contract with New Construct Inc. to construct a court house. Now New Construct Inc. again hires the firm Odell to excavate the land site.
While excavating Odell damages few nearby properties, so Mesa County files a law suit against Odell. But Odell argues that Odell is not in agreement with Mesa County or have not entered into with any contract with the County, so Mesa cannot sue the excavator.
But the court hold that as Mesa County is the third party beneficiary of the contract and have certain rights, Odell is held liable for the loss and should compensate for the loss to the County.
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $676 million in sales of this type. Scheduled collections for these sales are as follows:
2021 $83 million
2022 137 million
2023 129 million
2024 162 million
2025 165 million
$676 million
Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes.
Required:
What deferred tax liability would Isaac report in its year-end 2021 balance sheet?
Answer:
$148.3 million
Explanation:
Calculation to determine the deferred tax liability that Isaac would report in its year-end 2021 balance sheet
Using this formula
Deferred tax liability=Total future taxable income × Tax rate
Let plug in the formula
Deferred tax liability=(2022 137 million+2023 129 million+2024 162 million+2025 165 million)*25%
Deferred tax liability=$593 million*25%
Deferred tax liability=$148.3 million
Therefore the deferred tax liability that Isaac would report in its year-end 2021 balance sheet is $148.3 million
Banana Electric is a public company with the following details: Risk free rate 2.0% MRP 5.0% Observed Beta 1.0 Price per share $10.00 Shares outstanding 1,000.0 Debt (market value) 200.0 Cash 1,500.0 Cost of debt 2.0% Tax rate 0.0% Question: Calculate the weighted average cost of capital.
Answer:
6.90 %
Explanation:
The weighted average cost of capital (WACC) is the cost of the sources of finance pooled together.
WACC = Cost of equity x Weight of Equity + Cost of Debt x Weight of Debt
where,
Cost of equity = Return from risk free security + Beta x Market Premium
= 2.0% + 1.0 x 5.0%
= 7.0 %
After tax cost of debt = Interest x ( 1 - tax rate)
= 2.0%
Weight of Equity = $10,000 / ($200.0 + $10,000) = 98 %
Weight of Debt = $200.0 / ($200.0 + $10,000) = 1.96 %
therefore,
WACC = 7.0 % x 0.98 + 2.0% x 0.02
= 6.90 %
thus,
The weighted average cost of capital is 6.90 %.
It takes Suzi 6 hours to sew a shirt and 4 hours to bake a cake. Anna can sew a shirt in 3 hours and bake a cake in 1 hour. If Anna and Suzi decide to specialize and trade, who should make shirts?
Answer:
Suzi
Explanation:
Comparative advantage is the relative edge that a person has over another in the production of a product. They use less resources to produce the product than others.
When two parties corporate in production the good to produce can be shared base on who has comparative advantage or the person that loses less in a production process.
In the give instance
Suzi can produce a shirt in 6 hours while Anna produces it in 3 hours. Anna is twice as fast as Suzi.
Suzi can bake a cake in 4 hours while Anna can do so in 1 hour. So Anna is 4 times faster than Suzi in baking cakes.
It will be best for Suzi to make shirts since she is only twice as slow as Anna.
Anna will be better off baking cakes as she is four times as fast here.
Sharon would make an adjustment entry to __________ to record the $500 her company received from a customer to perform future services. Suppose that before the adjusting entry, the balance in this account was $2,725. After the adjusting entry, the ending balance will be __________.
Answer:
the ending balance of the unearned revenue is $3,225
Explanation:
The computation of the ending balance is shown below:
= Amount received from the customer for performing the future service + balance in the account
= $500 + $2,725
= $3,225
Therefore the ending balance of the unearned revenue is $3,225
The above formula should be applied
Bonita Industries produces flash drives for computers, which it sells for $30 each. Each flash drive costs $6 of variable costs to make. During April, 1000 drives were sold. Fixed costs for April were $6000. How much does Bonita’s operating income increase for each $2400 increase in revenue per month?
Answer:
See below
Explanation:
Sales ($30 × 1,000 drives sold)
$30,000
Less:
Variable cost ($6 × 1,000 drives sold)
($6,000)
Contribution margin
$24,000
Less:
Fixed costs
($6,000)
Operating profit
$18,000
Therefore, Bonita's operating income increases by $18,000 per month
Straight-Line: Amortization of bond discount LO P2 Skip to question [The following information applies to the questions displayed below.] Legacy issues $640,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $570,443 when the market rate is 12%. Problem 14-4A
Required:
1. Prepare the January 1 journal entry to record the bonds' issuance
2. determine the total bond interest expense to be recognized over the bonds' life.
Answer:
Legacy
1. Journal Entry:
January 1:
Debit Cash $570,443
Debit Bonds Discount $69,557
Credit Bonds Payable $640,000
To record the issuance of the bonds at a discount.
2. Total bond interest expense to be recognized over the bonds' life:
= $287,160
Explanation:
a) Data and Calculations:
January 1, 2019
Face value of bonds issued = $640,000
Price of bonds = $570,443
Bonds discount = $69,557 ($640,000 - $570,443)
Coupon interest rate = 8.5%
Market interest rate = 12%
Maturity period = 4 years
Interest payment = semiannual on June 30 and December 31
With straight-line amortization of bonds discount, the semiannual amortization will be = $8,695
Semi-annual interest payment = $27,200 ($640,000 * 4.25%)
Semi-annual interest expense = $35,895 ($27,200 + $8,695)
Annual interest expense = $71,790
1. Transaction Analysis
January 1:
Cash $570,443 Bonds Discount $69,557 Bonds Payable $640,000
2. Total bond interest expense to be recognized over the bonds' life:
= $287,160 ($71,790 * 4) or ($35,895 * 8)
Combining Supply and Demand
Scenario: The following shows a demand and supply schedule listing CDs demanded and supplied in the
millions) per week at each price. Graph each the following demand/supply schedules on one demand graph
and then answer the questions below:.
$6
Shortage/
Surplus
(Qs - Qd)
$5
$4
Price Per Quantity Quantity
Compact Demanded Supplied
Disc (Qd) (Qs)
$6
o
9
$5
2
6
$4
3
5
$3
4
4
$2
6
3
$1
9
0
$3
$2
$1
1
2 3 4 5 6 7 8
9 10 11 12 13 14
Answer:
the answer is $3
Explanation:
Sheffield Corp. reported the following information for 2016: October November December Budgeted sales $1200000 $1120000 $1400000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much cash will Sheffield receive in November?
Answer: $1,160,000
Explanation:
The amount of cash that Sheffield will receive in November will be calculated as:
= (October budget sales × 50%) + (Novemeber budgeted sales × 50%)
= ($1200000 × 50%) + ($1120000 × 50%)
= $600,000 + $560,000
= $1,160,000
Sheffield will receive $1,160,000 in November.
Vaughn Manufacturing incurred the following costs for 84000 units: Variable costs $504000 Fixed costs 392000 Vaughn has received a special order from a foreign company for 2500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4500 for shipping. If Vaughn wants to earn $5000 on the order, what should the unit price be?
Answer: $9.80
Explanation:
The unit price to earn $5000 on the order will be calculated thus:
The variable costs for 2500 units will be:
= 504000/84000 × 2500
= 15000
The unit price will now be:
= (15000+4500+5000) / 2500
= 24500 / 2500
= $9.80
The unit price is $9.80
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Answer:
If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Mary would specialize in making cakes while Tim would specialize in making pies.
Explanation:
a) Data and Calculations:
Mary's opportunity cost of making a cake = 2 pies
She can make additional 5 (10/2) cakes instead of making pies
This will increase her cakes to 25 a day (20 + 5)
Tim's opportunity cost of making a cake = 4 pies
She can make additional 40 pies (10 * 4) instead of making cakes
This will increase her pies to 60 pies a day (20 + 40)
When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.
Informal peacemaking and mediation are characterized on the continuum as having __________ personal control by disputants, whereas arbitration and litigation have ________ personal control by the disputants.
Answer:
high; low.
Explanation:
A conflict can be defined as any form of disagreement that arises between two or more parties due to opposing views, opinions, or incompatibility.
CALM is a 4-step process for addressing and defusing conflict.
These four step process for conflict resolution or defusing conflicts includes;
I. Clarify (C): this involves finding out more information about what caused the conflict.
II. Ask (A): you should ask the opposing party about the issues while being polite.
III. Listen (L): listen attentively to get more information.
IV. Move forward (M): do not dwell on the past issue after they have been resolved.
Mediation can be defined as an alternative dispute resolution (ADR) approach which involves an impartial and neutral third party who is saddled with the responsibility of proposing a solution to conflict between two or more parties.
Basically, a mediator is a professional trained in conflict or dispute resolution through the use of effective negotiation techniques and communication strategies. Thus, a neutral third party such as a mediator or negotiator from outside an organization or group, who will hear a conflict case via a nonbinding process should be availed the opportunity to make peace between two or more disagreeing parties.
Generally, the disputants (disagreeing parties) generally have a low personal control over an arbitration and litigation while during an informal peacemaking and mediation process, there is a high level of personal control by disputants on the continuum.
Finerly Corporation sells cosmetics through a network of independent distributors. Finerly shipped cosmetics to its distributors and is considering whether it should record $300,000 of revenue upon shipment of a new line of cosmetics. Finerly expects the distributors to be able to sell the cosmetics, but is uncertain because it has little experience with selling cosmetics of this type. Finerly is committed to accepting the cosmetics back from the distributors if the cosmetics are not sold. How much revenue should Finerly recognize upon delivery to its distributors?
Answer: $0
Explanation:
When there is an expectation of reversal of the goods back to the company due to factors arising from a delay in the delivery of the goods or other factors that could not be controlled, the revenue recognized should be $0.
In this scenario, Finerly is uncertain about the ability of the goods to be sold by the distributors and is committed to accepting the cosmetics should they not sell.
As they have little experience which means that they will be unable to control much unforeseen factors, there is an expectation of reversal so revenue should be recognized at $0 on delivery. Revenue will only be recognized after sales.
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 8% per year. Callahan's common stock currently sells for $25.25 per share; its last dividend was $1.50; and it will pay a $1.62 dividend at the end of the current year.
1. Using the DCF approach, what is its cost of common equity?
2. If the firm's beta is 0.80, the risk-free rate is 3%, and the average return on the market is 14%, what will be the firm's cost of common equity using the CAPM approach?
3. If the firm's bonds earn a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be rs?
4. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity?
Answer:
Find my detailed explanations and answers below
Explanation:
1.
Based on the dividend discount model, the share price is the present value of the expected dividend as shown by the formula below:
share price=expected dividend/(cost of equity-growth rate)
share price=$25.25
expected dividend=$1.62
cost of equity=unknown(let us assume it is K)
growth rate=8%
$25.25=$1.62/K-8%
$25.25*(K-8%)=$1.62
K-8%=($1.62/$25.25)
K=($1.62/$25.25)+8%
K=14.42%
2.
Using the Capital Asset Pricing Model, the formula for cost of equity is as shown thus:
cost of equity=risk-free rate+beta*(market return-risk-free rate)
risk-free rate=3%
beta=0.80
,market return=14%
cost of equity=3%+0.80*(14%-3%)
cost of equity=11.80%
3.
cost of equity=cost of debt+risk premium
cost of debt=12%
risk premium=market return-risk-free rate=14%-3%=11%
cost of equity=12%+11%=23%
If all of the figures are of equal confidence, our cost of equity should be the average of the three
cost of equity=(14.42%+11.80%+23%)/3=16.41%
Suppose that you are conducting market research at a regional mall in your city. The survey you are administering contains some relatively personal questions that some consumers might be reluctant to answer. As a result, you decide to select passers-by whom you believe are most likely to agree to answer your questions. Such an approach helps to ensure that all surveys will be completed and that questions will be answered in an unbiased manner. Nonetheless, it may come with a cost. Of the following statements, which is not a potential problem associated with this approach?
a. It might unexpectedly impact the "representativeness" of the sample.
b. All the answer options are potential problems.
c. It is likely to decrease the response rate.
d. It violates the underlying principles inherent in "probability sampling" techniques.
e. It could negatively influence the validity of the research study.
Answer: b. All the answer options are potential problems.
Explanation:
In other to get a truly unbiased result from surveys, the sample chosen should be completely random. This method is not random as the people being chosen are selected which means that the basic underlying principle of probability sampling of randomness is violated.
The representativeness of the sample might also be affected if only a certain type of people look like they will answer which means that only they will be represented in the sample. These problems have a strong chance of influencing the research in a negative way as the research may be biased.
And of course the response rate will likely be lower as only a certain type of people are being looked for and they might not number much.
During the year, cost of goods sold was $320,000; income from operations was $304,000; income tax expense was $64,000; interest expense was $48,000; and selling, general, and administrative expenses were $176,000. Required: Calculate net sales, gross profit, income before taxes, and net income.
Answer:
total=1920,000
I Love The question
An economic transaction in which one party trades a good or service for another good or services is called barter. comparative advantage. absolute advantage. a production possibility.
Answer:
barter
Explanation:
Barter can be regarded as act of trading goods/services involving two or more parties whereby a party provide a goods/services in return for goo/service provided to him/her by another party. It involves system of exchange without using money which means no monetary medium involve. It should be noted that An economic transaction in which one party trades a good or service for another good or services is called barter
The accountant at EZ Toys, Inc. is analyzing the production and cost data for its Trucks Division. For October, the actual results and the master budget data are presented below. Actual Results:Budget Data: 10,000 Trucks Produced and Sold12,000 Trucks Planned Unit selling price$15Unit selling price$14 Variable costs:Unit variable cost: Direct materials$ 52,800 Direct materials$ 5 Direct labor51,000 Direct labor4 Variable overhead 23,000 Variable overhead 2 Total variable costs$126,800Total unit variable costs$11 Fixed overhead$9,000Fixed overhead$9,600 Required: Prepare a variance analysis to compare actual results and the master budget.
Suppose you bought a bond with a coupon rate of 5.2 percent paid annually one year ago for $920. The bond sells for $970 today. a.Assuming a $1,000 face value, what was your total dollar return on this investment over the past year
Answer:
$102
Explanation:
Calculation to determine what was your total dollar return on this investment over the past year
Using this formula
Total dollar return =Change in price + Coupon payment
Let plug in the formula
Total dollar return = $970 - $920 + (5.2÷100*$1000)
Total dollar return = $970 - $920+$52
Total dollar return=$102
Therefore what was your total dollar return on this investment over the past year is $102
Deazia is the sole proprietor of Baldwin Hair Salon that reported net income of $44,000 for the year. During the year she withdrew $20,000 from the business for personal use. How much income from the above must Deazia include in her gross income for the year
Answer:
$44,000
Explanation:
Based on the given information we were told that the sole proprietor reported NET INCOME of the amount of $44,000 for the year which means that the amount of income from the above that Deazia must include in her GROSS INCOME for the year will be the reported NET INCOME amount of $44,000.
The government uses taxes and subsidies to guide consumption and production decisions.
a. True
b. False
Answer: True
Explanation:
Tax is the amount of money that's paid by an individual or firm to the government. Subsidies are the funds or other forms of assistance that's given by the government to firms in order to help them increase their production and lower the prices of goods.
Fir example, if the government wants to decrease consumption in the economy, the government can increase tax. On the other hand, the government can increase consumption by reducing tax as people will have money to spend and also more money for production purpose.
Lewis and Associates has been in the termite inspection and treatment business for five years. The following is a list of accounts for Lewis on June 30, 2017. It reflects the recurring transactions for the month of June but does not reflect any month-end adjustments:
Cash ………………………………………………. $6,200
Accounts Receivable ………………………………10,400
Prepaid Rent ……………………………………….. 4,400
Chemical Inventory ………………………………....9,400
Equipment …………………………………………..18,200
Accumulated Depreciation ………………………….1,050
Accounts Payable ………………………………….. 1,180
Capital Stock ………………………………………....5,000
Retained Earnings ……………………………….. ...25,370
Treatment Revenue ………………………………....40,600
Wages and Salary Expense ………………………. 22,500
Utilities Expense ………………………………….....1,240
Advertising Expense ……………………………….. 860
The following additional information is available:
a. Lewis rents a warehouse with office space and prepays the annual rent of $4,800 on May 1 of each year.
b. The asset account Equipment represents the cost of treatment equipment, which has an estimated useful life of ten years and an estimated salvage value of $200.
c. Chemical inventory on hand equals $1,300.
d. Wages and salaries owed but unpaid to employees at the end of the month amount to $1,080.
e. Lewis accrues income taxes using an estimated tax rate equal to 30% of the income for the month.
Required:
1. For each of the items of additional information, (a) through (e), identify and analyze the necessary adjustment on June 30, 2017.
2. On the basis of the information you have, does Lewis appear to be a profitable business?
Answer:
Lewis and Associates
1. Identification and Analysis of the items of additional information:
a. Rent Expense $400 Prepaid Rent $400
b. Depreciation Expense $150 Accumulated Depreciation $150
c.Cost of Chemical Used $8,100 Chemical Inventory $8,100
d. Wages and Salary Expense $1,080 Wages and Salary Payable $1,080.
e. Income Tax Expense $1,905 Income Tax Payable $1,905
2. On the basis of the information, Lewis and Associates appears to be a profitable business, making a margin of 11% in after-tax income.
Explanation:
a) Additional Data and Analysis:
a. Rent Expense $400 Prepaid Rent $400
b. Depreciation Expense $150 Accumulated Depreciation $150
c.Cost of Chemical Used $8,100 Chemical Inventory $8,100
d. Wages and Salary Expense $1,080 Wages and Salary Payable $1,080.
e. Income Tax Expense $1,905 Income Tax Payable $1,905
30% of the income for the month.
Income Statement for the Month Ended June 30
Treatment Revenue $40,600
Cost of Treatment Chemical 8,100
Gross profit $32,500
Expenses:
Wages and Salary $23,500
Utilities 1,240
Advertising 860
Depreciation 150
Rent 400
Total expenses $26,150
Income before taxes $6,350
Income taxes 1,905
Net income $4,445
what is human resources management?
Answer:
Human resource management is the strategic approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service.
impact of collusion in terms of output and price on consumers and producers
Answer: See explanation
Explanation:
Collusion refers to the agreements among the sellers of a particular product to either fix or increase the price and also reduce output. The main idea behind this is to increase profits and also reduce the competitiveness in such market.
Collusion can bring about high prices for the consumers and this ultimately leads to the reduction in the consumer surplus. Also, the new firms that want to enter the market may discouraged since the collusion can be an entry barrier.
Explain how mixed costs are related to both fixed and variable costs. A. Mixed costs have a fixed portion that is a cost per unit of cost driver activity. Mixed costs also have a variable portion that is usually a cost per time period. B. Mixed costs are the sum of the fixed and variable costs that are related to equipment costs. These mixed costs are a form of committed costs during the production phase. C. A mixed cost is the sum of fixed costs and the portion of variable costs that are related to salaries and wages. These mixed costs are discretionary costs that easily fluctuate and must therefore be kept separate during a production phase. D. A mixed cost has a fixed portion that is usually a cost per time period. A mixed cost also has a variable portion that is a cost per unit of cost driver activity.
Answer:
D. A mixed cost has a fixed portion that is usually a cost per time period. A mixed cost also has a variable portion that is a cost per unit of cost driver activity.
Explanation:
As we know that
The variable cost is the cost that can change when the level of production increase or decrease
The fixed cost is the cost that remains fixed whether the production level increased or not
ANd, the mixed cost includes some part of the variable cost and some part of the fixed cost
So as per the given options, the option D is correct as the mixed cost involved the fixed portion that could be cost per the time. And, it involved the variable portion i.e cost per unit with respect to the cost driver activity
Can you order with a Nike gift card online?
Answer:
ok call 911 hahaha thanks for the points
Costly Corporation plans a new issue of bonds with a par value of $1000, a maturity of 37 years, and an annual coupon rate of 11.0%. Flotation costs associated with a new debt issue would equal 3.0% of the market value of the bonds. Currently, the appropriate discount rate for bonds of firms similar to Costly is 9.0%. The firm's marginal tax rate is 50%. What will the firm's true cost of debt be for this new bond issue
Answer: hello the options related to your question is missing attached below are the missing options
answer : 4.65% ( option 3 )
Explanation:
par value of bond = $1000
Maturity period = 37 years
Annual coupon rate = 11.0%
Floating costs = 3.0% of market value of bonds
Discount rate for bonds of firms similar = 9.0 %
Marginal tax rate = 50%
Determine the firm's true cost of debt
Nper = 37
coupon rate = 11.0%
PMT = face value * coupon rate = 1000 * 11% = $110
present value ( PV ) = $1,176.67
step 2 ; calculate the value of YTM
YTM = 9.29% using excel function: rate( 37, 110, -1176.67, 1000 )
step 3 : calculate True cost of debt
YTM * ( 1 - marginal tax rate )
= 9.29% * ( 1 - 0.5 )
= 4.65%