Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $700 million. The depreciation expense for 2020 is expected to be $150 million. The capital expenditures for 2020 are expected to be $375 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 7% per year. The required return on equity is 13%. The WACC is 11%. The firm has $199 million of non-operating assets. The market value of the company's debt is $3.534 billion. 120 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today

Answers

Answer 1

Answer:

The company's stock price today should be $71.17 per share.

Explanation:

The corporate valuation model approach can be used to estimate this by using the following steps:

Step 1: Calculation of the free cash flow

Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:

Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure

For this question, we therefore have:

Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million

Step 2: Calculation of Value of operations (Vo)

Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million

Step 3: Calculation of the Firm value

Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million

Step 4: Calculation of value of equity

Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million

Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.

Step 5: Calculation of stock price per share today

Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share

Therefore, the company's stock price today should be $71.17 per share.


Related Questions

You often find that employees choose a health care plan without carefully considering their options. In fact, sometimes employees realize they are spending too much for health care or that they lack health care options, and they end up blaming you for not informing them sufficiently of their options ahead of time. You want employees to attend the fair and take the time to carefully weigh their options. Which of the following statements is most likely to attract employees to the fair to do so?
A. This presentation helps you choose which of the five health insurance options works best for your family.
B. This presentation discusses the relative benefits and costs of each health care option.
C. In this presentation, we provide you with the answers you need about the five health insurance options.

Answers

Answer: This presentation helps you choose which of the five health insurance options works best for your family.

Explanation:

From the question, we are informed that employees usually choose a health care plan without carefully considering their options and they end up blaming someone else for not informing them sufficiently of their options ahead of time.

Due to this reason, the person want the employees to attend a fair and take the time to carefully weigh their options. Of the options given, the correct answer is that "this presentation helps you choose which of the five health insurance options works best for your family".

Emphasis is been placed on choice as the employees can choose what works best for them. A simple language is also used to pass the message across.

The combination of the degree of complexity and the degree of change existing in an organization's external environment is/are called:________
a. strategic fit.
b. strategic issues.
c. scenarios.
d. environmental uncertainty.
e. strategic factors.

Answers

Answer:

D. environmental uncertainty.

Explanation:

This could be explained to be a condition or situation when an organisation in form of a firm is said to have little or no information about its external environment and in this condition, making it unpredictable; especially when not expected. In other words, the term environmental uncertainty can be easily explained to be unpredicted, unexpected uncertainties that are said to happen in an external environment.

Global warming can be capitalized to be one of the physical and major environmental uncertainties that occurs in such a place.

What are the 3 levels of access that can be granted to Team users of QuickBooks Online Accountant

Answers

Answer:

In QuickBooks Online Accountant, users with admin access and Firm Owners and have the authority to access of other users in the firm. The 3 levels of access that can be granted to Team users of QuickBooks Online Accountant are:

Full : these users have access to accounting features, and books such as edit, remove and add users.Basic : These users have access to create and read accounting.Custom: These users can access administrative functions for the firm , access to manage clients  and  access to client QuickBooks .

The three levels of access that can be granted to the team users of QuickBooks Online includes the Basic access, Full access and Custom access.

QuickBooks Online Accountant is an accounting based software which allows companies to controls all the financial side of their business

Only the users with administrator access and Firm Owners have the authority to access information on the accounting software.

The 3 levels of access granted to team users on the QuickBooks Online Accountant includes:

Basic access users: These are users who have access have access to create and read accounting information.Full access users: These are users who have access to accounting features such as edit, remove and add users as well as privilege enjoyed by basic access users. Custom access users: These are users who can access administrative functions for the firm.

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Assume that taxes are constant. If the government borrows $17 billion in new funds and has a budget deficit of $35 billion, then the central bank has to:

Answers

Answer:

increase the money supply by $18 billion.

Explanation:

Data provided in the question

The Borrowed amount by the Government = $17 billion

Budget deficit = $35 million

Based on the above information

The central bank has to raise the money supply by $18 million i.e come form

= Budget deficit - the borrowed amount

= $35 million - $17 million

= $18 million

Hence, the supply is increased by $18 million

DSO and accounts receivable Ingraham Inc. currently has $205,000 in accounts receivable, and its days sales outstanding is 71 days. It wants to reduce its DSO to 20 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365- day year.

Answers

Answer:

$49,084.51

Explanation:

days of sales outstanding (DSO) = accounts receivable / average daily sales

71 days = $205,000 / (total sales / 365 days)

total sales / 365 days = $205,000 / 71 days

total sales = ($205,000 / 71 days) x 365 days = $1,053,873.24

after the change, annual sales will decrease by 15%:

$1,053,873.24 x (1 - 15%) = $895,792.25

average sales per day = $895,792.25 / 365 = $2,454.23 per day

new DSO = accounts receivable / average sales per day

20 days = accounts receivable / $2,454.23 per day

accounts receivable = $2,454.23 per day x 20 days = $49,084.51

Suppose that a baseball player eligible for free agent status signs a contract with a new team that promises to pay him $100,000 more than his current team for each of the next three years. Assuming the discount rate is 6 percent, what is the maximum the current costs of moving could be and still have this investment be worthwhile?

Answers

Answer:

Maximum current cost =  $267,301.19

Explanation:

The maximum current costs of his moving would be worth of the $100,000 annuity in today's dollars, that is the present value.

The present value of the annuity would be determined as follows:

PV = A × (1- (1+r)^(-n) )/ r

Annual cash flow, n- number of years, r-rate of interest

A- 100,000, r- 6%, n- 3

PV - 100,000 × (1- 1.06^(-3))/0.06

PV = $ 267,301.19  

Maximum current cost =  $267,301.19  

Expenditures on a nation's domestic production Group of answer choices are less than its domestic production. are equal to its domestic production. are greater than its domestic production. could be less than, equal to, or greater than its domestic production.

Answers

Answer:

are equal to it's domestic production

Explanation:

A country's Gross Domestic Product (GDP) is defined as value of all goods and services produced in a country during a given time. Domestic production refers to those goods and services produced at home for local consumption.

Expenditure refers to the monies expended by all entities namely; household, firms and government on goods and services with a country.

When all the entities involved in generating a country's GDP spend their money towards purchasing goods and services produced in a country, then local producers would have more money to buy materials that will be used for further production. The higher the money spent, the higher the production and vice versa.

The above is a cycle that is repeated each time household, firms and government buys locally produced goods hence expenditure on a nation's domestic production equal to it's domestic production.

Which of the following is a substantive culture-changing action that a company's managers can undertake to alter a problem culture?
A. Identify aspects of the present culture that pose problems.
B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.
C. Shift from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change.
D. Make a concerted effort to turn the company's core competencies into distinctive competencies.
E. Empower employees to adopt whatever new work practices they believe will be an improvement.

Answers

Answer:

B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.

Explanation:

Culture of a company are the accepted ways of doing things on a daily basis with a view of achieving organisational goals. It includes the way employees interact with one another and their customers, procedures carrying out tasks, and so on.

The management of the company are the drivers of company culture, so a substantiative culture-changing action that can be taken to solve a problem culture will include replacing senior executives who are resisting and obstructing needed organizational and cultural changes, and revising policies and procedures in a way that will drive culture change

The journal entry to record the $500 of work in process ending inventory that consists of $300 of direct materials, $50 of manufacturing overhead, and $150 of direct labor is which of the following?
A. Work in Process Inventory 500
Accounts Payable 500
B. Accounts Payable 500
Work in Process Inventory 500
C. Work in Process Inventory 500
Materials Inventory 300
Wages Payable 150
Manufacturing Overhead 50
D. Cost of Goods Sold 500
Work in Process Inventory 500

Answers

Answer:

C. Work in Process Inventory 500; Materials Inventory 300; Wages Payable 150; Manufacturing Overhead 50

Explanation:

The journal entry will definitely be as follows

Account Title                            Debit     Credit

Work in Process Inventory       $500  

Raw materials inventory                          $300

Wages payable                                        $150

Manufacturing overhead                         $50

Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Queno Company had FUTA taxable wages of $510,900 during the year. Determine its: (Round your answers to two decimal places.) a. gross FUTA tax $ . b. FUTA tax credits (assuming no penalties) $ . c. net FUTA tax

Answers

Answer:

a. $30,654

b. $27,588.60

c.  $3,065.40

Explanation:

The Gross/ Standard Federal Unemployment Tax (FUTA) is 6.0% but employers tend to receive a 5.4% reduction/ credit upon filing form 940 leaving them with a net of 0.6%.

a. The Gross tax is;

= 510,900 * 6%

= $30,654

b. FUTA Tax Credits

= 510,900 * 5.4%

= $27,588.60

c. Net FUTA Tax

= 510,900 * 0.6%

= $3,065.40

Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $8.00. The smallest amount for which you would be willing to wash someone else's car is $5.50. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it

Answers

Answer:

1. The most you would be willing to pay for having a freshly washed car before going out on a

date is $6. The smallest amount for which you would be willing to wash someone else's car is

$3.50. You are going out this evening, and your car is dirty. How much economic surplus

would you receive from washing it?

The economic surplus from washing your dirty car is the benefit you receive from doing so ($6)

minus your cost of doing the job ($3.50), or $2.50.

2. To earn extra money in the summer, you grow tomatoes and sell them at the farmers' market

for 30 cents per pound. By adding compost to your garden, you can increase your yield as

shown in the table below. If compost costs 50 cents per pound and your goal is to make as much

money as possible, how many pounds of compost should you add?

Pounds

of

compost

Pounds

of

tomatoes

Marginal

Cost

($)

Marginal

Benefit

(pounds)

Marginal

Benefit

($)

Net

Benefits

Marginal

Net

Benefits

0 100 ---- 0 --- 0 ---

1 120 0.50 20 6.00 5.50 5.50

2 125 0.50 5 1.50 6.50 1.00

3 128 0.50 3 0.90 6.90 0.40

4 130 0.50 2 0.60 7.00 0.10

5 131 0.50 1 0.30 6.80 - 0.20

6 131.5 0.50 0.5 0.15 6.45 - 0.35

The benefit of adding a pound of compost is the extra revenue you’ll get from the extra tomatoes

that result. The cost of adding a pound of compost is 50 cents. By adding the fourth pound of

compost you’ll get 2 extra pounds of tomatoes, or 60 cents in extra revenue, which more than

covers the 50-cent cost of the extra pound of compost. But adding the fifth pound of compost

gives only 1 extra pound of tomatoes, so the corresponding revenue increase (30 cents) is less than

the cost of the compost. You should add 4 pounds of compost and no more.

3. Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are

allowed to put out as many cans as they wish. The average household disposes of three cans of

garbage per week under this plan. Now suppose that your city changes to a "tag" system. Each

can of refuse to be collected must have a tag affixed to it. The tags cost $2 each and are not

reusable. What effect do you think the introduction of the tag system will have on the total

quantity of garbage collected in your city? Explain briefly.

In the first case, the cost is $6/week no matter how many cans you put out, so the cost of

disposing of an extra can of garbage is $0. Under the tag system, the cost of putting out an extra

can is $2, regardless of the number of the cans. Since the relevant costs are higher under the tag

system, we would expect this system to reduce the number of cans collected.

Explanation:

What are some of the issues to consider in determining whether the Internet would provide your business with a competitive advantage

Answers

Answer:

relevancy, cost, and information

Explanation:

When determining whether the Internet would provide your business with a competitive advantage you need to consider relevancy, cost, and information. First would be how much extra cost will you incur in order to place your business on the internet. Secondly, you need to consider the importance of the internet to you business, such as what percentage of your customer population will be on the internet. And lastly, you need to consider how much information you actually need to acquire in order to successfully implement this course of action.

3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?

Answers

Complete Question:

The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

a.  Checks outstanding totaled $19,427.

b.  A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement.

c.  The bank collected $26,500 on a $25,000 note, including interest of $1,500.

d.  A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.

e.  A check drawn for $195 had been erroneously charged by the bank as $915.

f.  Bank service charges for June amounted to $55.

Answer:

Pala Medical Co.

Cash amount in the balance sheet = $189,281

Explanation:

a) Calculations:

Adjusted Cash balance at June 30, 20Y1

Cash balance                      $166,436

c) Note received by bank      25,000

c) Interest on the note             1,500

d) Returned check                 (3,600)

e) Bank charges                         (55)

Adjusted cash balance     $189,281

b) Balance as per bank statement = $195,688

a.  Checks outstanding totaled           ($19,427)

b.  A deposit of                                     $12,300

e. Overstated cheque                               720

Adjusted bank statement balance   $189,281

c) Preparing a bank reconciliation helps to identify discrepancies between the cash book balance of Pala Medical Co and the company's bank statement balance.  After the necessary adjustments, the two balances always agree and the adjusted figure is taken to the balance sheet.

Based on the information provided, what rental rates would you include in your forecast/proforma model from the tenants?

Select the answer and briefly explain your rationale
Contract rental rates
Market rental rates
A blend of contract and market rental rates
Insufficient information to determine

Answers

Answer:

Insufficient information to determine

Explanation:

The question makes reference to information provided as a basis for making a decision.  But, there is no information provided.  This makes it impossible to select any rental rates, whether Contract rental rates, Market rental rates, or a blend of contract and market rental rates, to include in the forecast or proforma model from the tenants.  So, the conclusion is that there is insufficient information to determine.

Big Byte Inc. sold 15,000 computers to the government of India. Instead of receiving cash, the company received refined petroleum as payment. This is an example of

Answers

Answer:

This is an example of barter

Explanation:

Barter in trade, is a term used to describe a system of exchange where goods  and services are exchanged for other goods or services directly. It is used most often in international trading, when there is a financial crisis, or when currency is unstable.

Barter is advantageous when money is in short supply, and when traders cannot afford to store a short supply of money, especially during hyperinflation.

However, there are some challenges with barter, which includes:

that both parties might not have what each other need in goods (double coincidence of wants), there is no common measure of value and indivisibility of certain goods when only half the worth is to be exchanged.

The Supplies account had a balance at the beginning of year 3 of $8,000 (before the reversing entry). Payments for purchases of supplies during year 3 amounted to $50,000 and were recorded as expense. A physical count at the end of year 3 revealed supplies costing $14,500 were on hand. Reversing entries are used by this company. The required adjusting entry at the end of year 3 will include a debit to:

Answers

Answer:

The required adjusting entry at the end of year 3 will include a debit to:

Supplies Expenses Account of $43,500 ($8,000 + 50,000 - 14,500), and a credit to Supplies Account in the sum of $43,500.

Explanation:

Adjusting entries are made at the end of an accounting period to bring the accounts in line with the accrual concept, which requires that expenses and revenue should be recognized in the period they are incurred or earned.

This implies that transactions should not be based solely on when cash is received or payment made.  Expenses incurred but not yet paid should be recognized in the accounts of the period.  Revenue earned but not yet received in cash should be accounted for in the period when the revenue is earned.  Expenses paid in advance should not be recognized in determining net income.  Revenue collected but not yet earned should not be included in the period's accounts for determining net income.  Finally, non-cash expenses (depreciation) should be recognized in the period they are incurred.

If a small electric automobile manufacturer is able to gain the social return generated by its electric motor, its demand for financial capital would

Answers

Answer: shift to the left

Explanation:

The social return helps in comparing the value of benefits and the costs to achieving the benefits. The social return is the ratio of net present value of the benefits in comparison to the net present value of the investment or the costs to getting the benefits.

In this case, if a small electric automobile manufacturer is able to gain the social return generated by its electric motor, it would decrease the demand for financial capital which simply means that the demand for financial capital will shift to the left. This shift to the left is as a result of the gain in its social return gotten by the electric motor.

Given these observed times (in minutes) for four elements of a job, determine the observed time (OT) for each element. Note: the second element only occurs every other cycle.
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1 4.1 4.0 4.6 4.1 4.1 4.1
2 - 1.5 - 2.4 - 1.4
3 3.2 3.2 3.8 3.2 3.3 3.3
4 2.7 3.0 2.7 2.8 2.8 2.8

Answers

Answer:

Element 1 = 4.17 Observed time

Element 2 = 1.77 Observed time

Element 3 = 3.33 Observed time

Element 4 = 2.8 Observed time

Explanation:

Calculation to determine the observed time (OT) for each element

Based on the information given we have 4 Element and 6 Cycle for Element 1,3 and 4 while Element 2 has 3 cycle

First step is sum up each element cycle i.e addition of cycle 1 to cycle 6

Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6

1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25

2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3

3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20

4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8

Now let find the Observed time by dividing the figure that was sum up for each of the element by the numbers of cycle that each element has.

OBSERVED TIME

Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6

1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25/6= 4.17 Observed time

2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3/3=1.77 Observed time

3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20/6= 3.33 Observed time

4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8/6=2.8 Observed time

The question is about the observed time cycles of 4 given elements.

OT of each cycles will be added together for each element. and divided by total number of cycles for each element.

1 4.1+4.0+4.6+4.1+4.1+4.1 = 25 / 6 = 4.17

2 -1.5 -2.4 -1.4 = 5.3 / 3 = 1.77

3 3.2+3.2+3.8+3.2+3.3+3.3 = 20 / 6 = 3.33

4 2.7+3.0+2.7+2.8+2.8+2.8 = 16.8 / 6 = 2.8

Each elements total cycle OT is added and then it is divided with each elements relevant number of cycles and this as a result provides the answer to the question

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For each of the following, compute the future value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)): Present Value Years Interest Rate Future Value $ 2,250 11 13 % $ 8,752 7 9 76,355 14 12 183,796 8 6

Answers

Answer:

1. $8,630.69

2. $15,999

3. $373,155.46

4. $292.942.90

Explanation:

The formula for calculating future value = P(1 + r)^n

P = Present value

R = interest rate

N = number of years

1. $ 2,250 (1 + 0.13)^11 = $8,630.69

2. 8,752 (1 + 0.09)^7 = $15,999

3. 76,355 (1 + 0.12)^14 = $373,155.46

4. 183,796(1 + 0.06)^8 = $292.942.90

I hope my answer helps you

For each of the following, the future value can be computed as:

1. $8,630.69

2. $15,999

3. $373,155.46

4. $292.942.90

The worth of a present asset at some point in the future based on an estimated rate of growth is known as future value (FV). For investors as well as financial planners, the future value is crucial because they use it to predict the amount an investment made now is going to be worth throughout the future. Investors may make wise investment choices based on their projected demands by knowing the future worth.

future value = P(1 + r)^n

P = Present value

R = interest rate

N = number of years

1. $ 2,250 (1 + 0.13)^11 = $8,630.69

2. 8,752 (1 + 0.09)^7 = $15,999

3. 76,355 (1 + 0.12)^14 = $373,155.46

4. 183,796(1 + 0.06)^8 = $292.942.90

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For the past year, Momsen, Ltd., had sales of $46,967, interest expense of $4,088, cost of goods sold of $17,184, selling and administrative expense of $12,051, and depreciation of $6,850. If the tax rate was 35 percent, what was the company's net income

Answers

Answer:

The Net Income is $4416.1

Explanation:

The net income is calculated as follows,

Sales                            $46967

Less:Cost of sales       (17184)

Gross Profit                   29783

Less:Expenses

Selling & Admin exp     (12051)

Depreciation exp           (6850)

Interest exp                   (4088)  

Net income before ta     6794

tax expense                 (2377.9)

Net Income                   4416.1

Jay Seago is suing the manufacturer of his car for $3.5 million because of a defect that he believes caused him to have an accident. The accident kept him out of work for a year. The company has offered him a settlement of $700,000, of which Jay would receive $600,000 after attorneys’ fees. His attorney has advised him that he has a 50% chance of winning his case. If he loses, he will incur attorneys’ fees and court costs of $75,000. If he wins, he is not guaranteed his full requested settlement. His attorney believes that there is a 50% chance he could receive the full settlement, in which case Jay would realize $2 million after his attorney takes her cut, and a 50% chance that the jury will award him a lesser amount of $1 million, of which Jay would get $500,000. Using decision tree analysis, decide whether Jay should proceed with his lawsuit against the manufacturer.

Answers

Answer:

Since the expected value is higher for not suing ($600,000), then Jay should not sue. The expected value of the best case scenario in case of suing is only $500,000 and in the expected value of the worst case scenario is -$37,500.

Explanation:

he decides to not sue = expected value $600,000

he decides to sue:

50% chance of winning

expected value

$2,000,000 x 50% x 50% = $500,000$500,000 x 50% x 50%  = $125,000

50% chance of losing

expected value = -$75,000 x 50% = -$37,500

There are several bridges along highway 280 which are free to ride on. This bridge was built and is being maintained by the government... not the "free" market. Let's think about why that is the case... The economic logic of government ownership and having a marginal price of 0 (that is, it is free to cross the bridge) is:

Answers

Answer:

The bridge 's owner has a natural monopoly, and the marginal production cost (letting another car drive through it) is close to nil.

Explanation:

Since building several bridges to compete is inefficient, but building one bridge at a lower average cost to customers would be effective. If the private monopolist builds the bridge it can charge customers exceptionally high prices.

There is a high fixed cost involved with constructing a bridge. Hence constructing a bridge is a mere privilege. Furthermore, there is no extra cost to allow another car to cross the bridge. It means that the marginal cost is zero or closer.

Aloha Inc. has 8 percent coupon bonds on the market that have 11 years left to maturity. If the YTM on these bonds is 10.22 percent, what is the current bond price

Answers

Answer:

The answer is $85.73

Explanation:

N(Number of periods) = 11years

I/Y(Yield to maturity) = 10.22 percent

PV(present value or market price) = ?

PMT( coupon payment) = $8

FV( Future value or par value) = $10

We are using a Financial calculator for this.

N= 11; I/Y = 10.22 ; PMT = 8; FV= $100; CPT PV= -85.73

Therefore, the market price of the bond is $85.73

Which of these countries has a command economy?
A. Cuba
B. France
C. United States
D. India

Answers

Answer:

A. Cuba

Explanation: Command economy , simply means planned economy

Some other countries with command economies are;

North KoreaThe former Soviet Union

Prescott Football Manufacturing had the following operating results for 2019: sales = $30,174; cost of goods sold = $21,740; depreciation expense = $3,512; interest expense = $544; dividends paid = $849. At the beginning of the year, net fixed assets were $20,046, current assets were $3,029, and current liabilities were $3,776. At the end of the year, net fixed assets were $23,077, current assets were $4,447, and current liabilities were $3,077. The tax rate for 2019 was 21 percent.
a. What is net income for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Net income $b. What is the operating cash flow for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Operating cash flow $c. What is the cash flow from assets for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow from assets $Assume no new debt was issued during the year.d. What is the cash flow to creditors for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow to creditors $e. What is the cash flow to stockholders for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow to stockholders $

Answers

Answer:

Prescott Football Manufacturing

a. Net Income for 2019:

2019: sales =                  $30,174

cost of goods sold =      $21,740

depreciation expense =  $3,512

interest expense =            $544

Pre-tax Income   =          $4,378

21% Tax              =                919-38

Net Income        =        $3,459

b) Operating cash flow

Net Income    =                     $3,459

Non-cash:

Depreciation Expense             3512

Increase in current assets      -1,418

Decrease in current liabilities -699

Net operating cash flow     $4,854

c) Cash flow from assets:

Increase in Assets   -$3,031`

d) Cash flow to creditors:

Decrease in liabilities -$699

e) Cash flows to stockholders:

Dividends paid =               -$849

Explanation:

a) 2019: sales =                  $30,174

cost of goods sold =      $21,740

depreciation expense =  $3,512

interest expense =            $544

Pre-tax Income   =          $4,378

21% Tax              =                919

Net Income        =          $3,459

dividends paid =               $849.

b) Balance Sheet:

At the beginning of the year,

net fixed assets were $20,046,

current assets were $3,029, and

current liabilities were $3,776.

c) Balance at the end of the year,

At the end of the year,

net fixed assets were $23,077,

current assets were      $4,447, and

current liabilities were $3,077.

                          Prescott Football Manufacturing

Part A:

Net Income for 2016:

Sales =                            $30,174 Cost of goods sold =      $21,740 Depreciation expense = $3,512 Interest expense =         $544 Pre-tax Income   =          $4,378 21% Tax               =           919-38

         Net Income        =        $3,459

Working Notes:  

sales =                  $30,174 cost of goods sold =      $21,740 depreciation expense =  $3,512 interest expense =            $544 Pre-tax Income   =          $4,378 21% Tax              =                919 Net Income        =          $3,459 dividends paid =               $849.

Part B:

Operating cash flow

Net Income    =                     $3,459

         Non-cash:

Depreciation Expense             3512 Increase in current assets      -1,418 Decrease in current liabilities -699 Net operating cash flow     $4,854

Working Notes :

At the beginning of the year, Net fixed assets were $20,046, Current assets were $3,029, Current liabilities were $3,776.

Part C:

Cash flow from assets:

Increase in Assets   -$3,031`

Working Notes :

Balance at the end of the year, At the end of the year, net fixed assets were $23,077, current assets were      $4,447,   current liabilities were $3,077.

Part D :

Cash flow to creditors:

Decrease in liabilities = -$699

Part E :

Cash flows to stockholders:

Dividends paid =-$849

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In response to the economic crisis in 2008, President Merkel "highlighted in her speech what the German government has already done: a financial sector rescue package worth up to €500 billion, and a proposed stimulus package of tax breaks [on income] and spending measures aimed at triggering investments of up to €50 billion over the next two years." Which parts of the stimulus plan will increase labor supply?

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Answer:

Chancellor Merkel's proposed stimulus consisted of two parts:

a financial rescue package worth €500 billion (which I personally believe only helped bankers but didn't increase labor supply)tax breaks and investment measures worth €50 billion

The only part of the stimulus package that would actually help to increase labor supply is the last part, which also is the smallest part, since it should have increased investments. When investment increases, the interest rates decrease and aggregate demand increases. As aggregator demand increases, the demand for labor also increases. An increase in the demand for labor results in higher wages, which in turn increases labor supply until an equilibrium is reached.

Governments generally rescue financial institutions arguing that they are really important to the economy, but what is really amazing and repeats itself all over the world is that the same governments favor free markets. When small businesses fail, governments do not care, and small businesses represent 99% of America's companies. Governments only start caring when rich people lose money, since free market rules only apply to them when they favor them. If free market rules do not favor the rich, they are bad and governments intervene.

Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 2017. Accounts receivable at December 31, 2017 totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 2017 to December 31, 2017. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting

Answers

Answer:

Gross profit from the month of December is $238000

Explanation:

Question is incomplete but the missing part is:

Cash received from customer during december 2017 - 387,000

Cash paid to supplier for inventory during december 2017 - 131,000

Accrual basis revenues

Particulars                                              Amount $

Cash received from customer                387000

during December 2017

Cash received in December  for            -139000

November accounts receivable

December sales made on account         141000

collected in January

Accrual basis revenues                          389000

Accrual basis expenses

Particulars                                              Amount $

Cash paid to suppliers for inventory      131000

during December 2017

Payments for inventory purchased         -19000

and used in November

Inventory purchased in November          39000

but not used in December

Accrual basis expenses                           151000

Gross profit from the month of December=  Accrual basis revenues - Accrual basis expenses

Gross profit = 389000 - 151000

Gross profit =  $238000

Holdup Bank has an issue of preferred stock with a $6 stated dividend that just sold for $93 per share. What is the bank's cost of preferred stock

Answers

Answer:

6.45%

Explanation:

Calculation for bank's cost of preferred stock

Using this formula

Cost of preferred stock = Dividend / Price of Stock * 100

Where,

Dividend $6

Price of Stock 93 per share

Let plug in the formula

Cost of preferred stock =6/93*100

Cost of preferred stock= 0.0645*100

Cost of preferred stock=6.45 %

Therefore the bank's cost of preferred stock will be 6.45%

Consider the everyday task of getting to work on time or arriving at your first class on time in the morning. Complete a​ fish-bone chart detailing reasons why you might arrive late in the morning. Identify each possible source of error.Material ________▼
Methods _______ ▼
Machinery ______▼
Complete the​ fish-bone chart by matching each number in the chart with the corresponding reason.

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Answer:

Part 1.

Material - The road

Reason: due to the road is a part of the material or resource that is used in the driving process)

Method - Driving

Reason: driving itself is the method)

Machinery - The car

Reason: the car is the primary equipment for the driving process)

Manpower - Family or me

reason: the family or the owner is the manpower involved in the driving process)

Part 2. the correct chart is with reason and the possible source is attached.

Part 1. Reason: thanks to the road could be a part of the fabric or resource that's utilized in the driving process)

Fish-bone chart

Material - The road

Method - Driving

Part-2 -Reason: driving itself is that the method)

Machinery - The car

Part-3 Reason: the car is that the primary equipment for the driving process)

Manpower - Family or me

Part-4 Reason: the family or the owner is that the manpower involved within the driving process)

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Analysis of income statements,balance sheet and,aditional information from the accounting records of Gatdgets.Inc., reveals the following items1. Purchase of a patent. 2. Depreciation expense. 3. Decrease in accounts receivable. 4. Issuance of a note payable. 5. Increase in inventory. 6. Collection of notes receivable. 7. Purchase of equipment. 8. Exchange of long-term assets. 9. Decrease in accounts payable. 10. Payment of dividends.Required:Indicate in which section of the statement of the cash flows each of these items would be reported:operating activities,or a separate non cash activities note.

Answers

Answer:

1. Purchase of a patent - Investing activities

2. Depreciation expense - Operating activities

3. Decrease in accounts receivable - Operating activities

4. Issuance of a note payable - Financing activities

5. Increase in inventory - Operating activities

6. Collection of notes receivable - Investing activities

7. Purchase of equipment - Investing activities

8. Exchange of long-term assets - Non-cash activities

9. Decrease in accounts payable - Operating activities

10. Payment of dividends - Financing activities

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