Given that A stock just paid a dividend of $5, and dividends will increase by 3% every year.
Its required rate of return is 12%.
To find the value of the stock, we can use the constant growth model.
The formula for the constant growth model is:
PV = D1 / (r - g)
Where,
PV = Present value of the stock
D1 = Expected dividend in the next period = D0 × (1 + g) = $5 × (1 + 0.03) = $5.15
r = Required rate of return = 12% = 0.12
g = Growth rate of dividend
s = 3% = 0.03
Substituting the given values, we get:
PV = $5.15 / (0.12 - 0.03)
PV = $5.15 / 0.09
PV = $57.22
the value of the stock is $57.22 to the nearest cent (one-hundredth).
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True or False. Wholesalers purchase large quanitites of product and sell off smaller quantities at a higher per-unit price
True, wholesalers purchase large quantities of products from manufacturers and sell them in smaller quantities to retailers and other businesses at a higher per-unit price, making a profit.
The primary goal of a wholesaler is to act as a middleman between manufacturers and retailers or other businesses that need a large quantity of a product. Wholesalers buy in bulk to take advantage of discounts and economies of scale that they then pass on to retailers and businesses when they resell the products at a higher per-unit price.
Wholesalers play a vital role in the supply chain and enable manufacturers to reach a wider audience. They also help retailers and other businesses save money by purchasing products in bulk from a single source rather than from multiple suppliers.
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In an Edgeworth box, suppose that the preferences of the two consumers are represented by lines (and not curves) with different marginal rates of substitution (the slopes of the lines are different). In this case, the competitive market equilibrium is necessarily:
A. On the price line that goes through the initial endowment
B. an allocation with all units of one good for one consumer, and all units of the other good for the other consumer
C. impossible to find
D. the initial endowment
E. an allowance on the edges of the Edgeworth box
Edgeworth Box is an economic model, named after Francis Ysidro Edgeworth, that can help in demonstrating how two-party, two-good exchange relationships can be in equilibrium. In an Edgeworth box, the preferences of the two consumers are represented by lines (and not curves) with different marginal rates of substitution (the slopes of the lines are different). In this case, the competitive market equilibrium is necessarily on the price line that goes through the initial endowment.
Therefore, option (A) is the correct answer. This is because; the competitive market equilibrium in an Edgeworth box, where the preferences of the two consumers are represented by lines (and not curves) with different marginal rates of substitution, is necessarily on the price line that goes through the initial endowment.
It can be observed that with unequal slopes of the indifference curve, the point of maximum satisfaction for both the consumers can't be located on the contract curve. However, an optimal point of equilibrium is located on the price line. The allocation of goods to each consumer varies with the preference of the consumers.
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Company SBS9 is evaluating the following list of Investments. Required Investment RM ROIC Project A 40 16% Project B 40 13.50% Project C 20 13% Total Investment 100 The target capital structure is to use 50% Debt and 50% Equity. Net Income last year was RM40 and the company intends to pay dividends to the amount of RM10. The interest rate that banks will charge for any amount of loans is 8%. The Corporate Tax Rate is 30%. Fixed deposits rates in the market is currently 3%. This rate is considered risk free (RF). The stock market is forecasted to provide a return of 15% which will be used as the required return from the market. The unlevered beta for the company is 0.8. Any new shares issue will be charge a 3% flotation cost. Required:
a. What is the amount of the first stage financing using the intended capital structure and that the company needs to pay the dividends payment.
b. Calculate the leverage beta at the first stage of financing?
c. Calculate the cost of equity at the first stage of financing?
d. Calculate the cost of equity after the first stage of financing?
e. Calculate the Weighted Average Cost of Capital at the first financing stage and the second financing stage?
f. Explain whether each of the project can be chosen. Explanation must include the cost of capital of the project.
g. Based on the answer in part f, what is the total amount of investment.
a) Amount of first stage financing:
Amount of debt = 50% of total investment = 50% of RM100 = RM50
Amount of equity = 50% of total investment = 50% of RM100 = RM50
Dividend payment = RM10
Hence, the amount of first stage financing = RM50 + RM10 = RM60.
b) Leverage beta:
Unlevered beta (βU) = 0.8
Debt-equity ratio = 1
Interest rate on debt = 8%
Tax rate = 30%
Leverage beta (βL) = βU[1+(1-tax rate) (Debt/Equity)]
Debt/Equity = 1βL = 0.8[1+(1-0.30) (1)]βL = 0.8(1.3)βL = 1.04.
c) Cost of equity (Ke) = RF + [βL × (Rm - RF)]Rm = 15%
Ke = 3% + [1.04 × (15%-3%)]
Ke = 14.56%.
d) The cost of equity after the first stage of financing will not change. Hence, it will remain 14.56%.
e) WACC at first financing stage = [E/(D+E)] × Ke + [D/(D+E)] × Kd×(1-t)
Where, E = Equity, D = Debt,
Ke = Cost of equity,
Kd = Cost of debt,
t = Tax rate.
Ke = 14.56%
Kd = 8%
t = 30%
E = 50%,
D = 50%
WACC = (0.50) (14.56%) + (0.50) (8%) (1-0.30)
WACC = 11.39%.
For the second financing stage, there will be no change in the cost of debt or equity. Hence, the WACC will also remain the same, i.e., 11.39%.
f) Project A:Cost of capital = 16%If the cost of capital is more than the WACC, the project cannot be chosen. Since the cost of capital is more than the WACC, the project cannot be chosen.
Project B:Cost of capital = 13.5%
Since the cost of capital is less than the WACC, the project can be chosen.
Project C:Cost of capital = 13%
Since the cost of capital is less than the WACC, the project can be chosen.
g) The total amount of investment = RM40 + RM40 + RM20 = RM100.
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It is April 2, 2018, and you are considering purchasing an investment-grade corporate bond that has a $1,000 face value and matures on June 4, 2022. The bond's stated coupon rate is 4.20 percent, and it pays on a semiannual basis (that is, on June 4 and December 4). The bond dealer's current ask yield to maturity is 3.60 percent. (Note: Between the last coupon date and today, there are 118 "30/360" days. Between last coupon date and the next coupon date, there are 180 "30/360" days.)
Calculate the total amount (invoice price) you would have to pay for this bond if you purchased the issue to settle today. Do not round intermediate calculations. Round your answer to two decimal places. Enter your answer as a positive value. Express your answer as a percentage of the bond’s par value.
Separate this total invoice amount into (i) the bond's current "flat" (without accrued interest) price and (ii) the accrued interest. Do not round intermediate calculations. Round your answers to two decimal places. Express your answers as a percentage of the bond’s par value.
(i).
(ii).
Finally, we express the total invoice amount and accrued interest as a percentage of the bond's par value by multiplying them by 100.
To calculate the total amount (invoice price) you would have to pay for the bond if you purchased it to settle today, we need to consider the current "flat" price and the accrued interest.
(i) Bond's current "flat" price:
The "flat" price is the price of the bond without accrued interest. It can be calculated using the following formula:
Flat price = Face value / (1 + (YTM / 2))^n
Where:
Face value = $1,000
YTM = Yield to Maturity (3.60%)
n = Number of semiannual periods until maturity (4)
Using the given values:
Flat price = $1,000 / (1 + (0.036 / 2))^4
ii) Accrued interest:
Accrued interest is the interest that has accumulated since the last coupon payment date. In this case, the last coupon payment date was December 4, 2017, and today is April 2, 2018. The accrued interest can be calculated using the following formula:
Accrued interest = (Coupon rate / 2) * (Number of days since last coupon date / Number of days in coupon period)
Where:
Coupon rate = 4.20% (stated coupon rate)
Number of days since last coupon date = 118 days
Number of days in coupon period = 180 days (between last and next coupon date)
Using the given values:
Accrued interest = (0.042 / 2) * (118 / 180)
To calculate the total invoice amount, we sum the flat price and accrued interest:
Total invoice amount = Flat price + Accrued interest
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Amber Company produces iron table and chair sets. During October, Amber’s costs were as follows: Actual purchase price $ 2.40 per pound Actual direct labor rate $ 7.60 per hour Standard purchase price $ 2.20 per pound Standard quantity for sets produced 980,000 pounds Standard direct labor hours allowed 12,000 Actual quantity purchased in October 1,125,000 pounds Actual direct labor hours 11,000 Actual quantity used in October 1,010,000 pounds Direct labor rate variance $5,610 F Required: Calculate the total cost of purchases for October. Compute the direct materials price variance based on the actual quantity purchased. Calculate the direct materials quantity variance based on the actual quantity used. Compute the standard direct labor rate for October. Compute the direct labor efficiency variance for October.
Calculate the direct materials quantity variance based on the actual quantity used.
Compute the standard direct labor rate for October.
Total cost of purchases for October:
Actual purchase price = $2.40/lb
Actual quantity purchased = 1,125,000 lbs
Cost of actual purchases = 2.40 × 1,125,000 = $2,700,000
Direct materials price variance based on actual quantity purchased:
Standard purchase price = $2.20/lb
Actual purchase price = $2.40/lb
Actual quantity purchased = 1,125,000 lbs
Direct materials price variance = (standard price − actual price) × actual quantity= ($2.20/lb − $2.40/lb) × 1,125,000 lbs= ($0.20/lb) × 1,125,000 lbs= $225,000
Direct materials quantity variance based on actual quantity used:
Standard quantity = 980,000 lbs
Actual quantity used = 1,010,000 lbs
Direct materials quantity variance = (standard quantity − actual quantity) × standard price= (980,000 lbs − 1,010,000 lbs) × $2.20/lb= (−30,000 lbs) × $2.20/lb= −$66,000
Standard direct labor rate for October:
Actual direct labor rate = $7.60/hr
Direct labor rate variance = $5,610 F
Difference between standard rate and actual rate = $5,610 F
Total actual direct labor hours = 11,000 hours
Standard direct labor rate = Actual direct labor rate + Direct labor rate variance / Total actual direct labor hours= $7.60/hr − $5,610 F / 11,000 hrs= $7.60/hr − $0.51/hr= $7.09/hr
Direct labor efficiency variance for October:
Standard direct labor hours allowed = 12,000 hrs
Actual direct labor hours = 11,000 hrs
Direct labor efficiency variance = (standard hours allowed − actual hours) × standard rate= (12,000 hrs − 11,000 hrs) × $7.09/hr= 1,000 hrs × $7.09/hr= $7,090 (F)
Thus, the total cost of purchases for October is $2,700,000,
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The pottery class buys clay for $8 and sells the clay for $17 during the day. At the end of the day, any leftover clay is sold to the pottery students for $5. What is the difference between the underage cost and overage cost? Answer to the nearest whole number.
Answer:
The difference between the underage cost and the overage cost is $12
Explanation:
The underage cost is the cost incurred per unit of unmet demand
So the underage cost = 5-8 = -$3
The overage cost is the cost incurred due to unused inventory = 17-8 = $9
So the difference between the underage and overage cost is = 9 -(-3) = $12
Q10) The price of a 90-day Treasury bill is quoted as 10.00. What continuously compounded return (on an actual/365 basis) does an investor earn on the Treasury bill for the 90 -day period?
Treasury bills are short-term debt securities issued by the United States Department of the Treasury. Treasury bills are available in different denominations ranging from $100 to $100,000.
In this case, we have a 90-day Treasury bill with a current price quoted as 10.00. To calculate the continuously compounded return on the Treasury bill for the 90-day period, we can use the formula:
Rcc = ln(Price/Face Value) / (T/365),
where Rcc represents the continuously compounded return, Price is the purchase price of the Treasury bill, Face Value is the bill's face value, and T is the number of days the Treasury bill will be held.
Given that the price of the 90-day Treasury bill is 10.00, and assuming the face value is $100, the calculation is as follows:
Rcc = ln(10.00/100) / (90/365) = -0.0914 or -9.14% (rounded to two decimal places).
Therefore, the continuously compounded return on the 90-day Treasury bill is approximately -9.14% per annum or -0.0914 on an actual/365 basis.
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what is needed in order to allocate the cost of a natural resource? a)a depletion base b)an amortization c)schedule a depreciation base d)a tax schedule
To allocate the cost of a natural resource, a depletion base is needed. The correct answer is:
a) A depletion base
In order to allocate the cost of a natural resource, a depletion base is needed. Depletion refers to the process of allocating the cost of natural resources over their estimated usage or extraction period. The depletion base represents the total cost of the natural resource and serves as the basis for calculating the depletion expense.
Amortization, on the other hand, is the process of allocating the cost of intangible assets over their estimated useful life. Schedule a depreciation base and a tax schedule are not directly related to the allocation of costs for natural resources.
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The following data are pulled from a recent Walsh Manufacturing annual report.
Assets
Raw material inventory $120,000
Work-in-process inventory $90,000
Finished goods inventory $300,000
Property, plant & equipment $900,000
Other assets $280,000
Total assets $1,690,000
Condensed Income Statement
Revenue $2,700,000
Cost of goods sold $900,000
Other expenses $1,000,000
Net income $800,000
Calculate: (a) Percent invested in inventory, (b) Inventory turnover, and (c) Weeks of supply.
(a) Percent invested in inventory Inventory is composed of raw material, work in process, and finished goods. Total inventory is given as the sum of raw material, work in process and finished goods as:$120,000 + $90,000 + $300,000 = $510,000 Therefore, percent invested in inventory is given by:
$\frac{510,000}{1,690,000} × 100\% = 30.18\%$The percent invested in inventory is approximately 30.18%.(b) Inventory turnover Inventory turnover is the number of times that the inventory is sold and replaced in a given period. This indicates the liquidity of inventory.
The inventory turnover is given by: $\ frac {\text{Cost of goods sold}}{\text{Inventory}}$ The cost of goods sold is given as $900,000$ and the inventory is given as $510,000$. Substituting these values into the above equation.
Therefore, the inventory is turned over approximately 1.76 times during the year.(c) Weeks of supply Weeks of supply indicates how long the inventory will last before it is exhausted. It is given by:$\ frac {\text{Inventory}}{\text{Cost of goods sold}/52}.
$where 52 represents the number of weeks in a year. The inventory is given as $510,000$ and the cost of goods sold is given as $900,000$. Substituting these values into the above equation, we get:
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Macroeconomics
Is there any evidence of unemployment associated with the
business cycle in Switzerland, Germany, Argentina and Ukraine?
Macroeconomics is the analysis of a nation's economy as a whole. Macroeconomic problems include inflation, unemployment, and economic growth.
One of the most important macroeconomic problems is unemployment. The business cycle, which is the recurring pattern of economic expansion and contraction, is often associated with unemployment. In Switzerland, there has been a gradual reduction in the unemployment rate since 2010. The country has a low level of unemployment.
Unemployment can be linked to the business cycle, as it rises during recessions and falls during expansions. In Germany, unemployment is also affected by the business cycle. In 2005, the country had a high unemployment rate, but it has since declined. The unemployment rate in Germany is currently lower than the European Union's average. Germany's low unemployment rate is the result of its strong economy, which is driven by exports.
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1. What significant changes have occurred over the past two years that have altered the global marketplace? How is this different than in the past? 2. What role does faith play in the global marketplace?
1. Significant changes that have occurred over the past two years that have altered the global marketplace are Globalization, Technology, E-commerce, and Legal and Regulatory Changes.
2. Faith can play a significant role in the global marketplace in several ways. First, many businesses operate based on religious principles and values.
1. Significant changes that have occurred over the past two years that have altered the global marketplace:
Globalization: The number of multinationals continues to grow every year, and businesses of all sizes can now go global at a faster pace than ever before.
Technology: Advancements in technology and communications have made it possible to connect with people all around the world more easily than ever before. This is enabling companies to create and market products in ways that were previously impossible.
E-commerce: E-commerce has exploded in popularity in recent years, and it is rapidly changing the way people shop and do business. As more and more people around the world gain access to the internet, the potential for online sales and marketing continues to grow.
Legal and Regulatory Changes: Governments around the world continue to create and revise laws and regulations that impact the global marketplace. For example, Brexit is causing significant changes in trade and investment relationships within Europe.
2. Role of faith in the global marketplace:
Faith can play a significant role in the global marketplace in several ways. First, many businesses operate based on religious principles and values. For example, some companies may prioritize ethical business practices or environmental sustainability based on their religious beliefs.
Second, faith can be a source of inspiration and motivation for entrepreneurs and business leaders. Many people find that their faith helps them stay focused and committed to their work, even during difficult times.
Finally, faith can be a powerful tool for connecting people from different cultures and backgrounds. Many businesses are now focusing on diversity and inclusion, and faith can be an important part of that effort. For example, companies may hold interfaith events or encourage employees to share their religious traditions with one another. As global markets continue to evolve, it is likely that faith will play an increasingly important role in shaping the business landscape.
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the price of the Upmann shares has risen to $131 per share, and the remaining time value of the option has dropped in value to stoo initun a greparing francai saitemena for the quarter ending March 31. As regards this option how much income should Allenan, inc. feport on its March 31 intome statererit iefraresimis 40 $100 $27.600 $29,700 $30,100
We'll subtract the call premium from the strike price, and then we'll multiply the resulting number by the number of options acquired.The amount of income Allenan, Inc. should report on its March 31 income statement is $26,000.
Given the following:the price of the Upmann shares has risen to $131 per share, and the remaining time value of the option has dropped in value to $25. As regards this option how much income should Allenan, inc. report on its March 31 income statement?The time value of the option has dropped in value to $25. The call option premium has dropped by $25, therefore, we will now calculate the premium as follows:$350 - $25 = $325 premium on the date of purchase of the call option.To calculate the amount of income Allenan, Inc. should report on its March 31 income statement, we need to compare the purchase price of the call option to the proceeds received when it is exercised.To make this calculation, ($131 - $105) × 1,000 = $26,000 gain.
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The manufacturer of a product had fixed costs of $120,800 per
year. The variable costs are 60% of selling price. What is the
break-even point in sales dollars?
Round to the nearest cent
Break-even point can be defined as the sales level required to cover all the costs and expenses that a company bears. To find out the break-even point, we need to have information on total fixed costs, variable costs, and selling price.In this problem,
we have fixed costs of $120,800 per year and variable costs of 60% of selling price. We need to find out the break-even point in sales dollars. Let’s solve the problem:
Let S be the selling price per unitSelling price per unit (P) = SVariable cost per unit = 0.6STotal cost = Total fixed cost + Total variable costTotal cost = $120,800 + 0.6SWe know that break-even point is the point where Total cost = Total RevenueTotal revenue = Selling price per unit (P) × Quantity sold(Q)Total revenue = SPWe have,Total cost = Total Revenue$120,800 + 0.6S = SPut SP on one side to get the break-even sales equationSolve for S,$$\begin{aligned}&120,800+0.6S=S\\&120,800=0.4S\\&S=\frac{120,800}{0.4}\\&S=302000\end{aligned}$$Therefore, the break-even point in sales dollars is $302,000.
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. Consider our IS/LM/BOP analysis. Suppose also that we are in a fixed price, flexible exchange rate setup. Suppose the capital account is highly interest sensitive (such that the BOP curve is flatter than the LM curve). The effect of an increase in the government spending (if expected to be a temporary change) on equilibrium national income, Y would be lessened by the resulting appreciation of the domestic currency. would be 0. none of the other options. would be to decrease it. would be strengthened by the resulting depreciation of the domestic currency.
The correct option is that the effect of an increase in the government spending (if expected to be a temporary change) on equilibrium national income, Y would be lessened by the resulting appreciation of the domestic currency.
An increase in government spending can help stimulate the economy, especially when it's done at a time when the economy is not operating at full potential. However, the effects of government spending are influenced by various other factors such as the exchange rate, interest rates, and the overall health of the economy itself. Suppose the capital account is highly interest-sensitive (such that the BOP curve is flatter than the LM curve). The effect of an increase in government spending (if expected to be a temporary change) on equilibrium national income, Y would be lessened by the resulting appreciation of the domestic currency.In an IS/LM/BOP model, a flatter BOP curve implies that an increase in the interest rate differential or capital account is more likely to reduce net exports than it is to increase the financial inflow required to finance it. As a result, the BOP curve is flatter than the LM curve. This indicates that, in a fixed-price, flexible exchange rate setting, the exchange rate will appreciate less than the interest rate differential, resulting in lower net exports and hence lower aggregate income.
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A customer leaves the sale proceeds from a recent transaction in the account. This amount would be considered
a free credit balance
a margin debit balance
available to the customer at any time
a loan to the broker-dealer, who will pay interest to the customer
The correct option is "a free credit balance."
When a customer leaves the sale proceeds from a recent transaction in the account, the resulting amount is considered a free credit balance. A free credit balance refers to the excess funds held in a customer's account after all purchases and withdrawals have been accounted for. It represents funds that are available to the customer for future transactions or withdrawals.
Unlike a margin debit balance, which indicates that the customer has borrowed funds from the broker-dealer, a free credit balance represents the customer's own funds that have not been utilized. The customer retains ownership and control over the free credit balance and can choose to withdraw or use the funds as desired.
It is important to note that the broker-dealer may or may not pay interest on the free credit balance, depending on the terms and conditions of the specific account or agreement between the customer and the broker-dealer. Interest payment on free credit balances is not a universal requirement and may vary depending on the brokerage firm's policies and prevailing market conditions.
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T/F: a situation in which a market left on its own fails to allocate resources efficiently is known as an externality.
False, A situation in which a market left on its own fails to allocate resources efficiently is not known as an externality.
What is an externality?
An externality refers to a positive or negative consequence of a commodity's production or consumption that affects a third party's wellbeing but is not reflected in the commodity's price.
It refers to a situation where an economic activity's effect on one party can affect another party's welfare outside the market system. Negative externalities are the most well-known form of externality.
Pollution is a common example of a negative externality because it affects everyone's health and quality of life but is often not factored into the price of goods produced by factories and other companies.
A market failure occurs when the market does not work effectively or does not allocate resources in the most efficient way.
When a market does not consider externalities, this is known as market failure, but it does not necessarily imply that the market is failing to allocate resources efficiently.
Therefore, an externality is not a circumstance where a market, left to its own devices, fails to allocate resources effectively.
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A copy of the signed contract is delivered to the purchaser
A salesperson obtains a written offer to purchase a home that she has listed for sale. The seller accepts the offer and the salesperson promptly telephones the purchaser to notify him of the acceptance. Because the purchaser lives in another state, the salesperson informs him that she will fax a copy of the contract tomorrow. When salesperson has an enforceable contract when
The salesperson has an enforceable contract when the signed contract is delivered to the purchaser.
In the scenario, a salesperson obtains a written offer to purchase a home that she has listed for sale. The seller accepts the offer and the salesperson notifies the purchaser of the acceptance. However, the salesperson has an enforceable contract when the signed contract is delivered to the purchaser.
In other words, the salesperson notifying the purchaser of the acceptance and faxing the copy of the contract does not create an enforceable contract. It is only when the signed contract is delivered to the purchaser that the contract becomes enforceable.
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Wilson Company prepared the following preliminary budget assuming no advertising expenditures: Selling price ........................ $10 per unit
Unit sales..............................100,000
Variable expenses.................$600,000
Fixed expenses.....................$300,000
Based on a market study, the company estimated that it could increase the unit selling price by 20% and increase the unit sales volume by 10% if $100,000 were spent on advertising. Assuming that these changes are incorporated in its budget, what should be the budgeted net operating income?
the budgeted net operating income will be $320,000 after the given changes are incorporated in the budget.
The solution is given below:
It is given that:
Selling price = $10 per unit
Unit sales = 100,000
Variable expenses = $600,000
Fixed expenses = $300,000
If the company estimates to increase the unit selling price by 20% and increase the unit sales volume by 10%, then the new selling price will be:
Selling price = $10 + 20% of $10
Selling price = $12
Variable expenses will not change.
Fixed expenses will remain the same.
Expenditure on advertising = $100,000
New unit sales = 100,000 + 10% of 100,000
New unit sales = 110,000
The budgeted net operating income can be calculated as follows:
Budgeted revenue = New unit sales × Selling price
Budgeted revenue = 110,000 × $12
Budgeted revenue = $1,320,000
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In the consumer’s model with monetary income, a Giffen good
cannot be a normal good
True
False
In the consumer's model with monetary income, a Giffen good cannot be a normal good. The statement is False.
What is a Giffen good?Giffen goods are goods whose quantity demanded increases when their prices rise. When the price of a Giffen good rises, it becomes difficult for consumers to buy that product. They will have to sacrifice other items they can afford to buy the Giffen product. As a result, the demand for the product will rise. This is unusual, as the substitution effect should cause the quantity demanded of a good to decrease when its price rises. However, with Giffen goods, the income effect outweighs the substitution effect.A normal good is a good whose quantity demanded increases when consumer income rises.Because Giffen goods have an inverse relationship between price and quantity demanded, they cannot be classified as normal goods.
Hence, its false.
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In order to accumulate enough money for a down payment on a house, a couple deposits $201 per month into an account paying 6% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 5 years? Type the amount in the account: $ (Round to the nearest dollar.)
The amount in the account after 5 years will be approximately $15,093.
To calculate the future value of the account after 5 years, we can use the formula for compound interest:
FV = P * (1 + r)^n
Where:
P = Monthly deposit = $201
r = Monthly interest rate = 6% (convert to decimal: 0.06)
n = Number of periods = 5 years * 12 months/year = 60 months
Substituting the values into the formula:
FV = $201 * (1 + 0.06)^60
Using a calculator, we find that the future value (amount in the account) is approximately $15,093. Therefore, the amount in the account after 5 years will be approximately $15,093.
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Which one of the following best describes the way in which law is made in Queensland? a. Laws are passed by a majority vote in only the Queensland Lower House, given Royal Assent by the Governor of Queensland and then put to refendum b. Laws are passed by a majority vote in the Queensland Parliament and given Royal Assent by the Governor of Queensland. c. Laws are passed by a majority vote in the Queensland Parliament. d. Laws are passed by a majority vote in the Queensland Legislative Assembly and by a majority vote in the Queensland Legislative Council and given Royal Assent by the Governor-General. e. Laws are passed by a majority vote in the Queensland Legislative Assembly and by a majority vote in the Queensland Legislative Council and given Royal Assent by the Governor of Queensland. QUESTION 2 The Queensland Parliament passes a piece of legislation that sets harsher penalties for persons who steal, or attempt to steal goods from is called the Shoplifting Amendment Act 2022 (QId). One month later, the Commonwealth Parliament passes legislation reducing penalties for persons who steal, or attempt to steal goods from shops. It is called the Petty Theft Act 2022 (Cth). The two pieces of legislation are contradictory. Which of the following is correct? a. Only the Commonwealth Parliament can pass this legislation as an Exclusive power under section 51 of the Constitution. Section 109 will then be applied to determine that the Commonwealth legislation will prevail, to the extent of the inconsistency. c. Only the Commonwealth Parliament can pass this legislation, based on section 109 of the Constitution. d. Only the Queensland Parliament can pass this legislation, based on section 109 of the Constitution. e. Only the Queensland Parliament can pass this legislation as a Residual power under the Constitution.
B. Laws are passed by a majority vote in the Queensland Parliament and given Royal Assent by the Governor of Queensland is the correct description of the way law is made in Queensland.
The Queensland Parliament is the legislative branch of the Queensland government.
It is composed of two houses:
the Legislative Assembly and the Legislative Council (which has been suspended since 1922).
Laws are passed by a majority vote in the Queensland Parliament and given Royal Assent by the Governor of Queensland.
Bills may be introduced in either house, and both must pass the bill before it can become law.
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There are two pieces to this assignment - In APA format.
1. Write 1 to 2 paragraphs on each of the 5 forces of any industry of your choice. (400 to 500 words)
2. Write about the intensity of rivalry and the power of buyers (consumers) in the wine industry, as described in the "wine wars" case. Cite specific details from the case with regard to those two of the five forces. (400 to 500 words)
Industry analysis is a crucial business strategy for any organization to comprehend the competitive environment and define a competitive strategy.
Porter's five forces analysis is a well-known analytical framework for industry analysis. This framework includes five forces that play a significant role in shaping the industry's competitive landscape: The threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitutes, and the rivalry among existing firms.The wine industry is a vast, highly fragmented, and increasingly competitive sector.
The industry is characterized by significant differentiation of products and branding. The following is a description of the intensity of rivalry and the power of buyers (consumers) in the wine industry:The intensity of rivalry: The wine industry is highly competitive due to the increasing number of players in the industry. In this industry, rivalry is high due to the low differentiation among products.
In addition, the wine industry is characterized by a high degree of price competition. For instance, in the United States, consumers have a wide range of wines to choose from, ranging from cheap, generic wine to costly, premium wine.
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which of the following are important determinants of collusion in pricing games? A) History
B) The number of firms
C) Firm size
D) All of the statements associated with this question are correct.
All of the statements A), B), and C) are important determinants of collusion in pricing games.A) History: Past interactions and experiences among firms can influence the likelihood of collusion.
If there has been a history of collusion or coordination in the industry, firms may be more inclined to collude in the future. B) The number of firms: The number of firms in the market plays a significant role in collusion. Collusion becomes more difficult to sustain as the number of firms increases since there are more participants to monitor and enforce compliance. C) Firm size: The size of the firms involved can impact collusion. Larger firms may have more resources and market power to enforce collusion agreements, while smaller firms may find it more challenging to participate in or influence collusive behavior. Considering all three statements, history, the number of firms, and firm size are important factors that affect collusion in pricing games.
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"
Steeper or flatter are the
select answers
Economy \( \mathrm{A} \) and Economy \( \mathrm{B} \) are similar in every way except that in Economy \( \mathrm{A}, 20 \) percent of aggregate expenditure is sensitive to changes in the real interest
"
In economics, the aggregate expenditure is the sum of consumption expenditure, investment expenditure, government expenditure, and net export expenditure. It is a macroeconomic measure that demonstrates the level of total spending in the economy at a particular time.
The economy can have either a steep or flat aggregate expenditure curve. Steeper and flatter are the two types of aggregate expenditure curves. A steep curve implies that a minor shift in prices results in a significant change in the aggregate expenditure.
A flatter curve, on the other hand, implies that a substantial shift in prices results in only a minor change in aggregate expenditure.In Economy A, 20 percent of aggregate expenditure is sensitive to changes in the real interest rate, while in Economy B, no such sensitivity exists.
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the auto add function adds up numbers in a column or row you specify true of false
The auto add function determines if it adds up numbers in a specified column or row, resulting in either true or false.
The auto add function is a useful tool that calculates the sum of numbers within a designated column or row. It analyzes the provided range and returns a boolean value to indicate whether the addition process was successful or not. When the function successfully adds all the numbers, it returns "true," indicating that the addition was performed accurately. Conversely, if there are non-numeric values or errors present within the specified range, the function returns "false," indicating that the addition process encountered an issue. This feature is beneficial when you need to validate the correctness of calculations or ensure that all the values within a specific range are indeed numeric before proceeding with further computations. By utilizing the auto add function, you can conveniently check the accuracy of your numerical data and identify any potential errors or inconsistencies.
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Quiz company produces four products from a common input. Joint costs to produce one batch total $130,000. All products can either be sold.
Gallons Weight Factor Sales Price At Split-Off Processing cost Processed Sales Value
Product 1 1,400 1.0 $15 / gal $2 / gal $20 / gal
P,2 2,600 2.0 20 4 25
P,3 2,500 1.5 26 5 30
P,4 3,500 2.5 35 5 40
Note: For all questions, round allocation ratios to four decimal points, and round all dollar amounts to the nearest dollar. Give your answers using dollar signs and commas but no decimal points (cents). EXAMPLE: $12,365.
1. Determine the amount of joint costs allocated to product 1 using the physical units method
2. Determine the amount of joint costs allocated to product 1 using the weighted average method
3. Determine the amount of joint costs allocated to product 1 using the sales value at split-off method
4. Determine the amount of joint costs allocated to product 1 using the net realizable value method
5. Determine the amount of joint cost allocated to product 1, using the e constant gross margin percentage method (use sales value after processing)
1. The joint costs allocated to Product 1 using the Physical Units Method will be, Joint cost allocation to Product 1 = (1400/10,000)*$130,000= $18,200
2. The joint costs allocated to Product 1 using the Weighted Average Method will be:
Gallon Weighted Factor Total = Σ (Gallons * Weight Factor)Product 1 = (1,400 * 1) = 1,400P,2 = (2,600 * 2) = 5,200P,3 = (2,500 * 1.5) = 3,750P,4 = (3,500 * 2.5) = 8,750Total = 19,100Allocation ratio for product 1 = Product 1 / Total = 1400 / 19,100 = 0.0733Joint cost allocation to Product 1 = Allocation ratio * Joint Cost = 0.0733 * $130,000 = $9,529
3. The joint costs allocated to Product 1 using the Sales Value at Split-Off Method will be:
Total sales value = $20 + $25 + $30 + $40 = $115Allocation ratio for product 1 = $20 / $115 = 0.174Joint cost allocation to Product 1 = Allocation ratio * Joint cost = 0.174 * $130,000 = $22,620
4. The joint costs to Product 1 using the Net Realizable Value Method will be: Product 1 Joint Costs = Joint Cost * (Product 1's Sales Value - Remaining Costs of Production)Product 1's Sales Value = $20Product 1's Remaining Costs of Production = $2 + $4 = $6Product 1 Joint Costs = $130,000 * ($20 - $6) / ($20 + $25 + $30 + $40 - $6)Product 1 Joint Costs = $130,000 * (14 / 95) = $19,180
5. Joint cost allocated to Product 1 using the E-constant gross margin percentage method (use sales value after processing) will be:Gross Margin Percentage = (Processed Sales Value - Processing Costs) / Processed Sales Value = ($20 - $2) / $20 = 0.9 or 90%Allocation ratio for product 1 = $20 * 90% / ($20 * 90% + $25 * 85% + $30 * 83.3% + $40 * 87.5%) = 0.0734Joint cost allocation to Product 1 = $130,000 * 0.0734 = $9,542cost allocated to product 1 using different methods are:
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which of the graphs depicts a short-run equilibrium that will encourage the entry of other firms into a monopolistically competitive industry? a panel d only b panel a only c panel b only d panel c only e panel a and panel b
The graph that depicts a short-run equilibrium that will encourage the entry of other firms into a monopolistically competitive industry is panel B only.
In a monopolistically competitive industry, firms differentiate their products in order to create a perceived uniqueness. This leads to a downward sloping demand curve for each firm. In the short run, firms may be making economic profit or loss. Panel A depicts a short-run equilibrium where the firm is making economic profit. The demand curve (AR) is higher than the average total cost (ATC) curve, indicating that the firm is earning profit. In this situation, other firms will be encouraged to enter the industry, leading to increased competition.Panel B, on the other hand, depicts a short-run equilibrium where the firm is making economic loss. In panel D, the demand curve (AR) is below the average total cost (ATC) curve, indicating that the firm is making an economic loss.
The demand curve (AR) is lower than the average total cost (ATC) curve, indicating that the firm is incurring losses. In this situation, some firms may exit the industry. However, because of the perceived uniqueness of the products, other firms may see an opportunity to differentiate their own products and enter the market. This entry of new firms will increase competition and eventually bring the industry towards a long-run equilibrium.Panel C and panel D do not show a short-run equilibrium that will encourage the entry of other firms. In panel C, the demand curve (AR) is equal to the average total cost (ATC) curve, indicating that the firm is making normal profit but not earning any economic profit.
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a. Explain what happens to Money Demand when each of the following occurs: 1. incotnes nise: 11. the interest rate rises b. Use the money market to explain why the aggregate demand curve slopes downward.
When each of the following occurs, the Money Demand changes: When income rises, the money demand also increases: When income rises, people's demand for goods and services increases.
As a result, they would like to hold more cash so that they can buy more goods and services.
As a result, there is an increase in Money Demand.
When the interest rate rises, Money Demand decreases:
When the interest rate rises, the cost of borrowing money increases.
As a result, people will want to hold less cash because they can earn a higher return by investing in other assets such as bonds.
As a result, there is a decrease in Money Demand.
The downward slope of the aggregate demand curve can be explained using the money market:
The money market is used to depict the interest rate and Money Demand relationship.
The Money Demand curve is downward-sloping in the money market.
When the interest rate rises, the Money Demand curve shifts to the left because individuals would want to hold less cash, resulting in a decrease in Money Demand.
When the Money Demand curve shifts to the left, the interest rate decreases,
which boosts investment and consumer spending.
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El Oceano operates more than 770 casual dining restaurants in the United States, Mexico and Canada, employing more than 59,000 people. By developing a new business strategy to focus on its values and enhance its image, El Oceano established a new vision, mission, and goals for the company. The restaurant chain streamlined its menu with the highest quality seafood it could offer at mid-range prices; he swapped the tropical themes of his restaurants for a clean, crisp style, with white shirt and black pants uniforms for his employees; and added coastal imagery to its menu and website.
Executing the new mission and differentiation strategy required hiring fun people, people with a hospitality mindset who share the values of El Oceano.
Although El Oceano had not had any problems hiring restaurant managers, the company felt that the managers it hired did not always reflect El Oceano's strategy, vision, mission, and values. The company also realized that its previous job descriptions did not reflect the passion required of its employees to deliver on its new strategy.
Present what the specific standards are and what other details you would include in the job description and specification.
Present how you would go about developing a standard job description.
Present what method you would use to collect the information and which are the members of the organization from whom you would collect useful information about the requirements for the job presented.
Job description and specification for El Oceano Job Title: Restaurant Manager
Reports To: Regional Director Department: Operations Location: United States, Mexico and Canada Summary:
The Restaurant Manager is responsible for managing all restaurant operations, driving sales, maintaining excellent service quality, and ensuring compliance with all policies and procedures.
The Restaurant Manager is responsible for hiring, training, scheduling, and supervising staff, maintaining inventory levels, managing costs, and ensuring guest satisfaction. Essential Functions: Ensures a positive guest experience by maintaining excellent service standards.
Hires, trains, schedules, and supervises staff. Ensures compliance with all policies and procedures. Ensures that the restaurant is clean, organized, and well-maintained.
Conduct a job analysis: Conduct a job analysis to gather data about the job, including job duties, skills, and qualifications.
Create a job description template: Create a job description template that includes the job title, department, location, summary, essential functions, qualifications, and other details.
Review job descriptions: Review other job descriptions within the organization to ensure consistency and compliance with policies and procedures.
Collect information from stakeholders: Collect information from stakeholders, including the hiring manager, human resources, and other members of the organization.
Conduct interviews: Conduct interviews with stakeholders to gather information about the job and its requirements.
Observation: Observe employees performing the job to gather information about job duties and tasks.
Questionnaires: Administer questionnaires to employees to gather information about job requirements.
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s
Prepare the appropriate journal entries for each of the following transactions in 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
2. Sarasota Analysts purchased $336,000 of its bonds on June 30, 2014, at 101 and immediately retired them. The carrying value of the bonds on the retirement date was $329,600. The bonds pay semiannual interest and the interest payment due on June 30, 2014 has been made and recorded. Prepare the journal entry for the retirement of the bond.
No.
Account Titles and Explanation
Debit
Credit
2.
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enter an account title
enter a debit amount
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enter an account title
enter a debit amount
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enter a debit amount
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The following journal entry will be recorded;
Answer:
The journal entry for the retirement of the bonds is as follows:
Account Titles Debit Credit
Bonds Payable $336,000
Loss on Bond Retirement $6,400
Premium on Bonds Payable $329,600
Explanation:
The journal entry for the retirement of the bonds is as follows:
Date: June 30, 2014
Account Titles Debit Credit
Bonds Payable $336,000
Loss on Bond Retirement $6,400
Premium on Bonds Payable $329,600
Explanation:
The Bonds Payable account is debited for the face value of the bonds retired, which is $336,000.
Loss on Bond Retirement is debited for the difference between the carrying value and the purchase price of the bonds, which is ($329,600 - $336,000 = $6,400). This represents the loss incurred on the retirement.
Premium on Bonds Payable is credited for the amount of premium that was amortized up to the retirement date, which is $329,600. This reduces the carrying value of the bonds.
Please note that the interest payment due on June 30, 2014, has already been made and recorded separately and is not included in this journal entry.
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The journal entry for the retirement of the bonds is as follows:
Account Titles Debit Credit
Bonds Payable $336,000
Loss on Bond Retirement $6,400
Premium on Bonds Payable $329,600
The Bonds Payable account is debited for the face value of the bonds retired, which is $336,000.
Loss on Bond Retirement is debited for the difference between the carrying value and the purchase price of the bonds, which is ($329,600 - $336,000 = $6,400). This represents the loss incurred on the retirement.
Premium on Bonds Payable is credited for the amount of premium that was amortized up to the retirement date, which is $329,600. This reduces the carrying value of the bonds.
Please note that the interest payment due on June 30, 2014, has already been made and recorded separately and is not included in this journal entry.
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