Answer:
the internal rate of return is 4%
Explanation:
The computation of the internal rate of return is shown below
Internal rate of return factor
= Investment required ÷ Net annual cash inflow
= $459,153 ÷ $76,500
= 6.002
The factor of 6.002 for 7 years shows an internal rate of return of 4% in a present value of annuity factor table of $1 in arrears
hence, the internal rate of return is 4%
We simply applied the above formula so that the correct factor could come
And, the same is to be considered
Wayfarer Company has no debt, and a value of $70.000 million. Adventures Incorporated is otherwise identical but has $28.000 million of debt in its capital structure. Under the different models, what is the value of Adventures Incorporated if its corporate tax rate is 25%, the personal tax rate on equity is 10%, and the personal tax rate on debt is 26%?
Answer:
Following are the solution to this question:
Explanation:
Please find the complete question in the attachment.
In point 1:
The answer is =70.000
In point 2:
[tex]=70.000+28.000 \times 25\%\\\\=70.000+28.000 \times \frac{25}{100}\\\\=70.000+28.000 \times \frac{1}{4}\\\\=70.000+ 7 \\\\=77.000\\\\=77[/tex]
In point 3:
[tex]=70.000+(1-(1-25 \%) \times \frac{(1-10\%)}{(1-26\%)) \times 28.000}\\\\=70.000+(1-(1- \frac{25}{100}) \times \frac{(1- \frac{10}{100})}{(1-\frac{26}{100})) \times 28.000}\\\\=70.000+(1-1+ \frac{1}{4}) \times \frac{(\frac{ 10-1}{10})}{( \frac{100-26}{100})) \times 28.000}\\\\=70.000+(\frac{1}{4}) \times \frac{(\frac{9}{10})}{(\frac{74}{100})) \times 28.000}\\\\=70.000+(\frac{1}{4}) \times \frac{0.9}{20.72}\\\\=70.000+ \frac{0.9}{82.88}\\\\=70.000+0.01058\\\\=70.01058\\\\[/tex]
econ 100a final practice In a perfectly competitive market, firms take the market price as a given, which implies that the market demand is:
Answer:
Perfectly elastic
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
the market demand is perfectly elastic because goods in a perfect competition are identical, if a producer increase its price, consumers would stop demanding for the producer goods and shift to another producer.
The manager of Stock Division projects the following for next year: Sales $185,000 Operating income $58,500 Operating assets $375,000 The manager can invest in an additional project that would require $40,000 investment in additional assets and would generate $6,000 of additional income. The company's minimum rate of return is 14%. What is the residual income for Stock Division without the additional investment
Answer: $6000
Explanation:
The residual income for Stock Division without the additional investment will e calculated as:
= Operating Income - (Operating assets × Required rate of return)
= $58500 - ($375000 × 14%)
= $58500 - $52500
= $6000
plz answer dedo yaar
Which of the following should not be a major consideration when it comes to selecting your career path?
What your parents think you should do
What you are passionate about
What you are naturally good at
What your interests are
Answer: I believe its : what your interest's are
Explanation:
Kim thinks that she is going to love working for her new company, as it is very informal with a lot of cross-functional teams with members from different departments. This is an example of what kind of structure?
Answer:
Organic
Explanation:
An organic structure in a company has an extremely flat reporting structure. Employees tend to interact among themselves and not along different management levels or direct reports.
This structure affects decision making which is more by consensus. Decision does not lie with a single manager.
In the given scenario the organisation where Kim wants to work is very informal with a lot of cross-functional teams with members from different departments.
This is an organic organisation structure
If a trader buys an option at an implied volatility of 10%, and plans to delta hedge it, over the life of the option she hopes realized volatility will be:
Answer:
b. lower than 10%
Explanation:
Missing word "a. higher than 10%, b. lower than 10%, c. if its three month option then she hopes its 10/3, d. irrelevant where realized will be"
If a trader buys an option at an implied volatility of 10%, and plans to delta hedge it, over the life of the option she hopes realized volatility will be lower than 10%. When hedging implied volatility through delta hedging is done, it means that the trader is expecting that volatility will decline and it has taken the position on the the downside of the implied volatility as it is reflected by the delta hedging. Delta hedging is not about betting on the upside of implied volatility.
Documents created with Calc are saved as which file extension?
A.
.com
B.
.odp
C.
.org
D.
.ods
Please select the best answer from the choices provided
A
B
C
D
Answer:
D. .ods
Explanation:
edge
No arbitrage is equivalent to the idea that all risk-free investments should offer investors:
Answer:
JOIN MY ZOOM 528-468-7585
Explanation:
What is the maximum hourly output from a process with four steps having outputs of 20 units/hour, 25 units/hour, 30 units/hour and 15 units/hour?
Answer:
The maximum hourly output from the process with four steps is:
22.5 units/hour.
Explanation:
a) Data and Calculations:
Outputs:
20 units/hour,
25 units/hour,
30 units/hour and
15 units/hour
Total units 90
Total hours = 4
Maximum hourly output = Total output units divided by the total hours
= 90/4
= 22.5 units per hour.
b) This implies that the process can produce 22.5 units per hour at its maximum performance. This is also the average output from the four processing steps.
Norwood, Inc. purchased a crane at a cost of $80,000. The crane has an estimated residual value of $5,000 and an estimated life of eight years, or 12,500 hours of operation. The crane was purchased on January 1, 2017, and was used 2,700 hours in 2017 and 2,600 hours in 2018. Refer to the information for Norwood, Inc. If Norwood uses the straight-line depreciation method, what is the book value at December 31, 2019
Answer:
Book value= $51,875
Explanation:
Giving the following information:
Purchase price= $80,000
Salvage value= $5,000
Useful life= 8 years
First, we need to calculate the annual depreciation under the straight-line method:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (80,000 - 5,000) / 8
Annual depreciation= $9,375
Now, we can determine the book value at the end of 2019:
Book value= purchase price - accumulated depreciation
Book value= 80,000 - (9,375*3)
Book value= $51,875
The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio:
Long Horn Market Portfolio
Average return 19 % 12 %
Standard deviations of returns 35 % 15 %
Beta 1.5 1.0
Residual standard deviation 3.0 % 0.0 %
The risk-free return during the sample period was 6%.
What is the Treynor measure of performance evaluation for Long Horn Stock Fund?
a. 0.0133
b. 0.04
c. 0.0867
d. 0.3143
e. 0.3714
Answer: c. 0.0867
Explanation:
Treynor measure for Long Horn Stock Fund;
= (Average return - Risk-free return) / Beta
= (19% - 6%) / 1.5
= 0.08666667
= 0.0867
A managed portfolio has a standard deviation equal to 26% and a beta of .9 when the market portfolio's standard deviation is 22%. The adjusted portfolio P* needed to calculate the M2 measure will have ________ invested in the managed portfolio and the rest in T-bills.
A. 84.6%
B. 118%
C. 18%
D. 15.4%
Answer:
118%
Explanation:
Calculation for the M2 measure invested in the managed portfolio
Using this formula
M2 measure invested in the managed portfolio=Managed portfolio standard deviation standard deviation/Market portfolio's standard deviation
Let plug in the formula
M2 measure invested in the managed portfolio=26%/22%
M2 measure invested in the managed portfolio=118%
Therefore the adjusted portfolio P* needed to calculate the M2 measure will have 118% invested in the managed portfolio and the rest in T-bills
Weyerhaeuser Co decides to buy multi-line phone system for its business operations from Norway. The cost of multi-line phone system is 49,300 Norwegian krones. Approximately, how much in U.S. dollars will Weyerhaeuser Co pay if $1 is equal to 7.1429 Norwegian krones (Norwegian krone/$)?
a) $8,282
b) $16,135
c) $6,902
d) $7.977
e) none of the answers is correct
Answer:
c) $6,902
Explanation:
Cost of system = 49300 Krones
Exchange rate : $1 = 7.1429 Krones
So, Amount in $ = Cost of system / Exchange rate
Amount in $ = 49300 / 7.1429
Amount in $ = 6901.958588248471
Amount in $ = $6,902
In general, value-creating diversification of General Electric under Jack Welch was:________
a) Economies of scope
b) Economies of scale
c) Market power
d) Financial economies
e) Brand loyalty
Answer:
b) Economies of scale
Explanation:
In general, value-creating diversification of General Electric under Jack Welch was Economies of scale.
He shut down factories, set workers loose, and offered a promise of "growing rapidly in a slow growth economy," titled a speech he made in 1981 shortly after he became President.
This period of mass restructuring gave him the surname of Neutron Jack when he took people out, much like a neutron bomb as he left the houses.
Select the correct answer.
Which promotional technique can help an organization achieve its short-term sales objectives?
A. advertising
B. sales promotion
C. public relations
D. direct marketing
Answer:
A. Advertising
Explanation:
Answer:
B. sales promotion
Explanation:
"Sales promotion involves the use of short-term techniques to encourage customers to respond or to influence their buying decisions. For instance, you can quickly drive up sales for a short span of time by sending out attractive offer coupons with expiration dates. Customers will need to act before the coupons expire, ensuring that they will buy (if they buy at all) within a set time period."
A lockbox plan is a. used to identify inventory safety stocks. b. used to protect cash, i.e., to keep it from being stolen. c. used primarily by firms where currency is used frequently in transactions, such as fast food restaurants, and less frequently by firms that receive payments as checks. d. used to slow down the collection of checks our firm writes. e. used to speed up the collection of checks received.
Answer:
Option e. Used to speed up the collection of checks received.
Explanation:
A lockbox plan is most beneficial to firms involved in collections over a wide geographic area. It is also a method or technique to limit/reduce float by having payments sent to local post offices close to the customers. Its system of handling cash receipts is by mail where the customers remit payments directly to the bank.
In cash management, a lockbox plan is used to quickens the rate of collection of checks received.
A firm sells 420 units of a good when it charges a price of $24. When it charges a price of $28 it sells 480 units. What is the price elasticity of demand (in absolute value)?
Answer:
0.87
Explanation:
Price elasticity is defined as a measure of how responsive the quantity of a product demanded is to changes in its price.
It is important in determining how price changes affects the demand of a product.
The supplier uses this to gauge how an increase in price will affect demand and by extension their profits.
It is calculated by finding ratio of percentage change in quantity to percentage change in price.
Price elasticity = (% change in quantity demanded) ÷ (%change in price)
Change in quantity demanded = (480-420) ÷420 = 0.143
Change in price = (28-24) ÷ 24 = 0.167
Price elasticity = 0.143 ÷ 0.167 = 0.87
The ability to deter entry requires A. a credible threat that if entry occurs the firm is willing to produce more than they would otherwise. B. a clever accounting department. C. a credible threat that if entry occurs the firm will not produce more than they would otherwise. D. a good lawyer.
Answer: A. a credible threat that if entry occurs the firm is willing to produce more than they would otherwise.
Explanation:
Deterring entry simply means the action that are used by firms in order to.pteevwnt other firms of competitors from entering the market or not being able to compete.
Therefore, the ability to deter entry requires a credible threat that if entry occurs the firm is willing to produce more than they would otherwise.
In the economy represented by the graph, which set of economic measures is
most likely present at point B in the business cycle?
The Business Cycle
А
с
Production output
D
B
Time
O A. The steady growth line has started to decline.
O B. The unemployment rate is at its lowest point.
O c. Gross domestic product is at its lowest point.
O D. The economy has started a period of recession.
The economy represents by the graph is a set of measures that is most likely to occur in the business cycle are Gross domestic product is at its lowest point. Thus option C is correct.
What are economic measures?The economic measures are those that economist use for measuring the economy of a country and include the GDP, unemployment, and inflation. The GDP is the most important measure and refers to the business cycle. As per the graph, the GDP is at the lowest point.
Find out more information about the economic indicator.
brainly.com/question/903754
Answer: the unemployment rate is at its lowest point
Explanation:
just took the test
If a firm pursues a strategic alliance in order to reduce industry overcapacity, that firm most likely operates in what type of market
Answer:
Standard cycle
Explanation:
If a firm pursues a strategic alliance in order to reduce industry overcapacity, that firm most likely operates in what type of market
Accounts Receivable account has a beginning balance of $52,000 and an ending balance of $69,000. If $47,000 was sold on account during the year, what were the total collections on account
Answer:
$30,000
Explanation:
Total collections on account is computed as;
= Accounts receivable at the beginning + Sales during the year - Accounts receivable at the end
Given that;
Accounts receivable at the beginning = $52,000
Sales during the year = $47,000
Accounts receivable at the end = $69,000
Therefore,
Total collections on account
= [($52,000 + $47,000) - $69,000]
= $30,000
An expense that is readily traced to a department because it is incurred for that department's sole benefit is a(n):________.
a. Common expense.
b. Direct expense.
c. Administrative expense.
d. Indirect expense.
e. Recurring expense.
Answer:
b . Direct expense
Explanation:
Direct expense is an expense whose cost can be easily identified with a department due to the fact that the expense is incurred for the benefit of the department solely. This means that this expense can be traced directly to a department.
Also, some expenses are known to be directly related to buying of materials , products for use whether in a department or a company; such expenses are classified as direct expenses.
Examples of direct expense includes cost of raw materials , rent of factory, wages etc.
What is the risk premium for a company that has a yield rate of 6.30% when the risk-free rate is 4.93%?
Answer: 1.37%
Explanation:
The risk premium for a company that has a yield rate of 6.30% when the risk-free rate is 4.93% will simply be calculated by subtracting the risk free rate from the yield rate. This will then be:
= 6.30% - 4.93%
= 1.37%
When analyzing the Production Possibility Curve, what is the value of a good given up in order to produce more of another good?
Answer:
reschedule for next week and I will be there in a few minutes to
The Xerox sales force is divided into four geographic organizations: the United States/Canada, Europe, Global Accounts, and Developing Markets. Within each geographic area, the majority of Xerox products and services are typically sold through its
a) distributors.
b) competitor partnerships.
c) order takers.
d) direct sales force.
e) telemarketers.
Answer:
E)direct salesforce
Explanation:
Direct sales force are those network of distributors that business set up to sell their products for great returns, it involves selling out of business product using non- retailing setting. For instance Xerox sales force is divided into four geographic organizations: the United States/Canada, Europe, Global Accounts, and Developing Markets. Within each geographic area, the majority of Xerox products and services are typically sold through its direct salesforce
Last year Electric Autos had sales of $100 million and assets at the start of the year of $150 million. If its return on start-of-year assets was 15%, what was its operating profit margin?
Answer:
22.50%
Explanation:
Amount of return on asset = Rate of return * Asset value
Amount of return on asset = 15% * $150 million
Amount of return on asset = $22.5 million
Operating profit margin = Amount of return on asset / Sales
Operating profit margin = $22.5 million / $100 million
Operating profit margin = 0.225
Operating profit margin = 22.50%
A portfolio has 225 shares of Stock C that sells for $42 and 190 shares of Stock D that sells for $33. What is Stock C's weight?
Answer:
60.11%
Explanation:
Weight of stock C = Value of stock C / total value of portfolio
225 x $42 / (225 x $42) + (190 x $33) = $9450 /15720 = 60.11%
Which person's life is the best example of wellness? Martin: Studies with friends, does community service, takes pills to go to sleep, and makes friends in class Norman: Drinks plenty of water, skips breakfast to lose weight, keeps a regular study schedule, and reads ahead in classes. Olivia: Drinks plenty of water, skips breakfast to lose weight, has a family dinner every week, and studies with a tutor. Patricia: Goes to the gym, enjoys time with friends, takes extra courses, and reads for enjoyment Norman Olivia Martin Patricia
Answer:
Patricia has the best wellness so far
Explanation:
Martin: studies with friends, communicating with others? good. Community service? yes, you want to help others. sleeping pills? not healthy, you want genuine sleep. Not forcing yourself to sleep. You might get addicted, that's not good, isn't it?
Norman: Drinking lots of water? good. Skipping breakfast? not good, you still want to eat breakfast, studies say that breakfast is the most important meal of the 3. studying? yeah, and a regular schedule is good. Reading ahead of class? so and so. It's good because you know everything in advance. But what if you miss something? Like the teacher says, oh, we're canceling the test. You study day after day and find out you don't even need to study. That's a waste of time.
Olivia: plenty of water is good. Skipping breakfast again? Not really good. Having family dinners every week? Yeah, Family is important too. Studying with a tutor? Mhm, You should get help if your behind in class.
Patricia: going to the gym? Good exercise, and healthy for your body. Enjoying times with friends? Friends are important in times of need. So yeah, good too. Taking extra courses? yeah, it's important to know what you want to do in the future, or just for fun! No harm at all.
Martin, Norman, and Olivia have just a little problem that they need to fix. Patricia? She's the one.
Universities A and B are substitutes in the minds of many college students. Initially the student tuition at each university is the same and far below the equilibrium tuition. Then, the tuition at A is raised and B is not. As a result of a rising tuition at A, some students who would have applied and enrolled in A, apply to B instead. Based on the logic presented in one of the theories discussed in the textbook, we would expect that
Answer:
the options are missing (see attached image), the correct answer is:
the fourth option: A and B
Explanation:
Since the demand for University B increased, their teachers should be more relaxed, resulting in a decrease of their performance, e.g. less punctual. On the other, the teachers of University A which lost students, should try to increase their performance level, e.g. being more punctual.