Answer:
$46.67
Explanation:
Given the data from the question
We have
Earnings per share = $4
Growth rate = RoE * Plowback ratio
=> 20% * 0.30
=> Growth rate = 6%
Expected dividend per share(D1) = (1 - 30%) x $4 = $2.80
Current market price(Po) = D1/Ke - g
Current market price(Po) = $2.80 ÷ (0.12 - 0.06)
Po = $2.80 ÷ 0.06
Po = $46.67
Hence, in this case, the correct answer is $46.67 for the price of stock.
Suppose you are interested in obtaining a mortgage loan for $250,000 in order to purchase your principal residence. Your lender has suggested that you might be interested in taking an FHA loan. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully amortizing mortgage loan is 5% and the term is 30 years, what is your monthly mortgage payment assuming the UFMIP is financed
Answer:
$1,355.47
Explanation:
if you are going to finance the up-front mortgage insurance premium, then the total principal of the loan will increase by 1%, so it will be = $250,000 x 1.01 = $252,500. It is normal to finance UFMIP payments since they are additional closing costs and the whole purpose of FHA loans is to allow more people to be able to buy a house.
we can use the present value of an annuity formula to determine the monthly payment.
monthly payment = principal / PV annuity factor
principal = $252,500PV annuity factor = 186.2816monthly payment = $252,500 / 186.2816 = $1,355.474722 ≈ $1,355.47
I prepared an amortization schedule in order to check the answer. At the end the final balance is $3.83, but that is because you have to round to the nearest cent. If the payment is rounded to $1,355.48, the the balance is -$4.50.
You join the accounting department of a major tech firm after graduation and are asked to assist in preparing end of year adjusting entries to prepare the firm’s financial statements for the end of the fiscal year. One major item you discover is a large part of the firm’s compensation expense is for stock grants and restricted stock units (RSUs). You are unsure how to account for these and so turn to the codification for guidance. What is the accounting for these forms of compensation and how are they presented on the financial statements?
Answer and Explanation:
Stock based compensation: stock based compensation which is non cash expense is charged as operating expenses to operating income as stipulated in Accounting Standards Codification (ASC) 718. After a year, the equity account is credited and cash is debited
Restricted stock units: contra equity is debited and common stock is credited. Part of the shares after vesting and recognition as income is charged and withheld for taxes
ere are simplified financial statements for Watervan Corporation:
INCOME STATEMENT
(Figures in $ millions)
Net sales $
888.00
Cost of goods sold
748.00
Depreciation
38.00
Earnings before interest and taxes (EBIT) $
102.00
Interest expense
19.00
Income before tax $
83.00
Taxes
17.43
Net income $
65.57
BALANCE SHEET
(Figures in $ millions)
End of Year Start of Year
Assets
Current assets $
376
$
326
Long-term assets
272
229
Total assets $
648
$
555
Liabilities and shareholders’ equity
Current liabilities $
201
$
164
Long-term debt
115
128
Shareholders’ equity
332
263
Total liabilities and shareholders’ equity $
648
$
555
The company’s cost of capital is 8.5%.
a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.)
d. Is the company creating value for its shareholders?
Answer:
its wap aka W A P
Explanation:
Rust Pipe Co. was established in 1994. Four years later the company went public. At that time, Robert Rust, the original owner, decided to establish two classes of stock. The first represents Class A founders' stock and is entitled to twelve votes per share. The normally traded common stock, designated as Class B, is entitled to one vote per share. In late 2010, Mr. Stone, an investor, was considering purchasing shares in Rust Pipe Co. While he knew the existence of founders’ shares were not often present in other companies, he decided to buy the shares anyway because of a new technology Rust Pipe had developed to improve the flow of liquids through pipes. Of the 1,900,000 total shares currently outstanding, the original founder's family owns 52,725 shares. What is the percentage of the founder's family votes to Class B votes? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Answer:
34.25%
Explanation:
Votes per share = 12
Shares owned = 52725
Now we are to calculate the total value of the total number of of votes
Total votes = votes per share * shares owned
= 12*52725
Total = 632700
Value of votes of class B
Total shares outstanding - founders family shares
= 1900000 - 52725
= 1847275
The question requires us to calculate percentage of the founder's family votes to Class B votes
632700/1847275
= 0.3425
= 34.25%
Southern Imports is an all-equity firm with a beta of 1.32. The firm is considering a new project that entails less risk than its current operations and thus management feels that the firm's beta should be lowered by .18 when assigning a discount rate to this project. The market rate of return is 9.4 percent and the risk-free rate is 2.8 percent. What discount rate should be assigned to this project
Answer:
The answer is "10.32%".
Explanation:
The actual beta firm =1.32
if new beta reduced by 1.8
beta firm= 1.14(1.32-1.8)
market return= 9.4%
risk-free return=2.8%
formula:
[tex]\to \text{Discount rate= risk} +beta \times (return-risk)}[/tex]
[tex]=2.8+1.14(9.4-2.8)\\\\=10.32%[/tex]
At what percentage of credit card usage, does it start affecting your score in a negative way?
Answer:
3%
Explanation:
ratio of 80 or 90 percent or more highly negative impact on your credit score.
Which of these is an acceptable less hazardous method of cleaning than solvents?
[You Chose] Using disposable wipesUsing a dishwasherUsing a water hoseMechanical cleaning
Answer:
I guess that this depends on what you want to clean, but my choice is
using a dishwasherE.g. if you are a mechanic and you need to clean auto parts (which are dirty and greasy), then a hot soap washer is very useful. A hot soap washer is basically a dishwasher that works with hot pressurized water. Generally, detergent is much less hazardous than solvents. This method applies to all the objects that can be moved into the sink in order to be washed.
If you want to clean things at home, the same applies. The least hazardous cleaning method is using hot water and detergent.
A pressurized water hose may be a solution to certain issues, e.g. clean bird poop on top of a car or a sidewalk. If you can mechanically clean something (use a broom or vacuum cleaner), then there is no reason why you would need a solvent. Using disposable wipes only increases the amount of waste that you generate.
Answer:
The correct alternative to cleaning parts beside just using solvents, would be Mechanical Cleaning.
A share of Lash Inc.'s common stock just paid a dividend of $2.10. If the expected long-run growth rate for this stock is 5%, and if investors' required rate of return is 18.5%, what is the stock price
Answer:
P0 = $16.333333333 rounded off to $16.33
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is dividend expected for the next period g is the growth rate r is the required rate of return
P0 = 2.1 * (1+0.05) / (0.185 - 0.05)
P0 = $16.333333333 rounded off to $16.33
At a sales volume of 44,000 units, Thoma Corporation's sales commissions (a cost that is variable with respect to sales volume) total $585,200. To the nearest whole cent, what should be the total sales commission per unit at a sales volume of 46,300 units
Answer: $13.30 per unit
Explanation:
Thoma Corporation Sales Commission per unit;
= Total Sales commission/ Sales volume
= 585,200/44,000
= $13.30
For a sales volume of 46,300 units, the commission per unit will be the same $13.30 per unit as this cost is variable with respect to sales volume.
What are the 3 activities that took place during the forming stages
Explanation:
The three activities that took place in the forming stages are:
Team members introduce to each other, they share their backgrounds and information about their interests and experience and develop impressions towards each other. Team members come to know about each other strengths, interests, and challenges. Team members learn about the project they are doing work and they discuss the project's goals and they conceive about what contribution and role they are going to perform on the particular project.a. Why do some price controls help create black markets?
b. What is a black market you have personally seen?
Answer:
Price ceiling creates black markets
Price ceiling is when the government or an agency of the government sets the maximum price of a good or service. Price ceiling is binding if it is set below equilibrium price.
When a binding price floor is established, producers would earn less profits and as a result they would stop selling their products in the free markets. This would lead to scarcity and a result a black market can emerge. Goods would be sold at a higher price in the black markets than it would in the free markets.
So, black markets can arise as a result of price ceiling and the need of producers to earn higher profits
b. During the war, when there was a rationing of meat. Farmers declared less animal births to authorities and sold the undeclared livestock in the black market.
Also, in less developed countries e.g. Nigeria, when there is scarcity of fuel. Black markets arise where fuel are sold for higher prices
Explanation:
Suppose that real GDP grew more in Country A than in Country B last year.
a. Country A must have a higher standard of living than country B.
b. Country A's worker productivity must have grown faster than country B's.
c. Both of the above are correct.
d. None of the above are correct.
Answer:
D
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
The standard of living is calculated as real GDP / population. Even though the real GDP of country A grew faster than country B, country A's population might be higher than country B's making its standard of living lower.
To make a conclusion that the growth of country A's worker productivity grew faster, it must be assumed that population grew at the same rate in both countries
Receivables are valued based on their ________.
a. fair value
b. estimated amount collectible
c. lower-of-cost-or-market value
d. historical cost
Answer:
b. estimated amount collectible
Explanation:
In Financial accounting, Receivables are also known as Account Receivable. Receivables are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.
Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.
Hence, receivables are valued based on their estimated amount collectible from customers for the goods and services taken.
The sticky-price theory of the short-run aggregate supply curve says that if the price level rises by 5% while firms were expecting it to rise by 2%, then some firms with high menu costs will have:________.
Answer:
to keep their prices the same
Explanation:
Remember, having a higher Menu cost implies that such a firm would suffer more if it adjusted its prices.
So the sticky-price theory makes the assumption that a firm that notices an increase in the prices of their products would keep their prices low out of fear that doing so would result in losses for the firm if demand changes negatively.
Crane Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $140,000, $240,000, and $54,000, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,000, machine hours 24,000, and number of inspections 1,200. Compute the overhead rate for each activity. Machine setups $ per setup Machining $ per machine hour Inspections $ per inspection
Answer:
1. $70 per set up
2. $10 per machine hour
3. $45 per inspection
Explanation:
With regards to the above,
Compute the overhead rate for
1. Machine set ups
= Estimated annual overhead cost / Estimated annual Number of setups
Estimated annual overhead costs = $140,000
Estimated annual Number of setups = 2,000
= $140,000 / 2,000
= $70 per set up
2. Machining
= Estimated annual overhead costs / Estimated annual Machine hours
Estimated annual overhead costs = $240,000
Estimated annual Machine hours = 24,000
= $240,000 / 24,000
= $10 per machine hours
3. Inspection
= Estimated annual overhead costs / Estimated annual number of inspections
Estimated annual overhead costs = $54,000
Estimated annual number of inspections = 1,200
= $54,000 / 1,200
= $45 per inspection
If the average propensity to consume is 0.75, and the marginal propensity to consume is 0.70, if income rises by $4,000, consumption will increase by _____. (Remember when we use APC versus MPC. Use only one for this question).
Answer:
$2,800
Explanation:
The computation of the increase in consumption is shown below:
= Marginal propensity to consume × rise in income
= 0.70 × $4,000
= $2,800
Hence, the consumption would be increased by $2,800
We simply applied the above formula i.e. marginal propensity to consume is multiplied with the rise in income so that the correct answer could come
is the price of a movie ticket likely to go up or down why?
Answer:
Down
Explanation:
Because they want more people to watch
Follows a summary of Gold Corp.'s cash flows ($ in millions) for the year ended Dec. 31, 2020: Cash received from: Customers $ 3,150 Interest on investments 290 Sale of land 190 Sale of Rowdy's common stock 780 Issuance of debt securities 2,900 Cash paid for: Interest on debt $ 390 Income tax 170 Debt principal reduction 2,400 Purchase of equipment 5,800 Purchase of inventory 1,900 Dividends on common stock 470 Operating expenses 680 Gold Corp would report net cash inflows (outflows) from investing activities for the period of:
Answer:
Only two of the listed activities classify as investing activities. The cash flow form investing activities = cash received form the sale of land + cash paid for the purchase of equipment = $190 - $5,800 = -$5,610
Explanation:
Customers $ 3,150 ⇒ operating activity
Interest on investments 290 ⇒ operating activity
Sale of land 190 ⇒ investing activity
Sale of Rowdy's common stock 780 ⇒ financing activity
Issuance of debt securities 2,900 ⇒ financing activity
Interest on debt $ 390 ⇒ operating activity
Income tax 170 ⇒ operating activity
Debt principal reduction 2,400 ⇒ financing activity
Purchase of equipment 5,800 ⇒ investing activity
Purchase of inventory 1,900 ⇒ operating activity
Dividends on common stock 470 ⇒ financing activity
Operating expenses 680 ⇒ operating activity
Situation 2
A customer walks into your department and asks if anyone can help her. She complains that she's
been waiting for the salesperson in the shoe department for the last 10 minutes. She says, "Just
when I think he's finally going to help me, he takes another phone call. I'm so upset. I just want to
tell his manager how rude he's been."
Policy: Employees should try to handle all customer complaints. If the customer demands to see a
manager, call the departmental manager immediately.
19
sty
Answer:
The lady would need to remain patience and make note of the fact that there may be a crowd and not enough employees so it may take a while. Yes the lady has a right to assistance but she should only be given it if she is being respectful of the people around her and nice to the employees.
Not sure what you wanted me to answer but I hope this helps.
Explanation:
Novak Corp. developed the following information about its inventories in applying the lower of cost or market (LCM) basis in valuing inventories: Product Cost Market
A $139000 $146000
B 98000 93000
C 195000 198000
If Novak applies the LCM basis, the value of the inventory reported on the balance sheet would be:________
a. $442000
b. $432000
c. $437000
d. $427000
Answer: $427,000
Explanation:
Based on the Generally Accepted Accounting principles, to solve this question, the inventory have to be recorded based on the lower cost or net realizable value. This will therefore be:
A = $139,000
B = $93,000
C = $195,000
The value of the inventory reported on the balance sheet would be:
= $139,000 + $93,000 + $195,000
= $427,000
Joe is a regular customer. He's been in 4 times over the past two weeks. Each
time, he's received a wire transfer of $2000. He immediately sends a wire for
$500 and comes back into the store the next day to send 3 more money
transfers of $500 each to 3 different people.
The situation raises the following Red Flags (Select all that apply)
Joe has multiple friends.
Joe's transaction activity is frequent and for larger dollar amounts.
Joe is breaking up the transaction into smaller amounts.
Joe sometimes purchases other items in the store such as toothpaste and medicine.
Joe is breaking up received money into smaller amounts of money and sending to
several people.
Answer:
Joe's situation raises the following Red Flags:
Joe is breaking up the transaction into smaller amounts.
Explanation:
Joe is following money laundry footsteps. I suspect that he may be involved in some fraudulent practices, no wonder he is making some frantic efforts to launder the wire transfer of $2,000. He had completed sending some of the proceeds to some other persons. Perhaps, he will remit more cash in similar ways.
Answer:
Joe is breaking up the transaction into smaller accounts
Joe's transaction activity is frequent and for larger dollar amounts.
Joe is breaking up received money into smaller amounts of money and sending to several people
Explanation:
Paula has sales that qualify to be reported on the installment basis. In year 2, installment sales were $40,000 with a cost of $30,000. In year 3, installment sales were $50,000 with a cost of $25,000. Collections in year 2 were in the amount of $30,000. Collections in year 3 were $10,000 on the year 2 sales and $30,000 on the year 3 sales. How much deferred gross profit exists as of the end of year 2
Answer: $2500
Explanation:
Gross profit is gotten when costs are subtracted from sales. Deferred gross profit is the cash that hasn't been gotten by a business.
The percentage on gross profit percentage will be calculated as:
= ($40000-$30000)/$40000 × 100
= $10,000/$40,000 × 100
= 0.25 × 100
= 25%
Deffered gross profit will now be calculated by multiplying the gross profit percentage by the cash to be cash to be collected. This will be:
=$10000 × 25%
= $2500
The deferred gross profit that exists as of the end of year 2 is $2500
A U.S. business sells milk to consumers in France. Which situation would
most likely cause demand for milk to decline in France?
A. A popular French nutrition author claims that milk is bad for
people's health.
B. French consumers expect the price for milk to increase in the
future.
C. Cheese and other products made from milk become more popular
in France
D. The French population grows steadily due to years of economic
prosperity
The situation that cause the demand for falling in france should be option A. A popular French nutrition author claims that milk is bad for people's health.
The reason why it cause demand for milk:
The various consumers believes on expert's suggestion to select between products. Marketers know this, and that is why they incorporate doctors and other professionals in advertisements. Should the popular nutrition author provides a negative opinion on milk products, the demand for milk in France will decline.
learn more about demand here: https://brainly.com/question/18282855
Answer:
A
Explanation:
Just took the quiz
During a recessionary gap due to insufficient aggregate demand, the government should ________ spending by an amount determined by the spending multiplier in an attempt to return the economy to potential GDP/full employment. g
Answer:
Increase
Explanation:
Recessionary gap is simply defined as that which happens or occurs when the current/actual is less than the needed that is below potential. It is simply when the equilibrium level of real GDP falls short of potential GDP.
Recessionary gap (expansionary FP) can be handled or fixed by increasing government spending, decrease in tax rates and Increasein transfers
examples when demand may have got out of a hand?
Answer:
Recall, that we represent economic laws and theory using models; in this case we can use a demand schedule or a demand curve to illustrate the Law of Demand. The demand schedule shows the combinations of price and quantity demanded of apples in a table format. The graphical representation of the demand schedule is called the demand curve
When graphing the demand curve, price goes on the vertical axis and quantity demanded goes on the horizontal axis. A helpful hint when labeling the axes is to remember that since P is a tall letter, it goes on the vertical axis. Another hint when graphing the demand curve is to remember that demand descends.
The demand curve reflects our marginal benefit and thus our willingness to pay for additional amounts of a good. It makes sense that our marginal benefit, or willingness to pay for a good, would decline as we consume additional units because we get less additional satisfaction from each successive unit consumed. For example, at lunch time you decide to buy pizza by-the-piece. You'd be willing to pay a lot for that first piece to satisfy your hunger. But what about the second piece? Perhaps a little less. If we keep considering each additional piece, we might ask what the 3rd, 4th or 5th piece is worth to you. By that point, you'd be willing to pay less, perhaps much less. The law of demand and our models illustrate this behavior.
Explanation:
What current trend in the sport or entertainment area do you think will fall into disfavor with the consumer population
Answer:
Bantering of words between entertainers in the social media forums.
Explanation:
Today, it is not unusual to find entertainers in the sport and entertainment industries, exchanging words, and settling squabbles on social media platforms. Such behaviors are unprofessional and persistently resorting to these crude ways would create tensions among fans who are the consumer population.
Most fans who are enlightened would definitely not be favorably disposed to these trends. Entertainers should do well not to foster disunity among themselves.
How are productive resources
allocated among people and
businesses in the United States?
Answer:
see below
Explanation:
America is a good example of a free-market economy. In this type of market, productive resources are allocated through the interaction of a willing buyer and a willing seller. In a market economy, Mutual beneficial exchange of resources through trade is relied upon to solve economic problems. An Individual's self-interest is viewed as a benefit to society.
In a free-market economy like in America, purchasing power determines who owns resources. Resource owners are motivated by profits and other self-interest to engage in production. The forces of supply and demand control activities in a Free Market. Consumers decide what will be produced. In market economies, operation and acquisition of resources is by the freely and self-directed interaction between consumers and producers.
A landlord needs to update a rental house due to it's age, so it can be habitable again. If he has that ability to cover a $1,500.00 payment monthly for 3 years at 5% compounded monthly, how much can he borrow and still be able to afford the payment?
Answer:
$50,048.55
Explanation:
Use the Time Value of Money Techniques to Find the Principle (PV), that is the amount to be borrowed under the conditions given.
Pmt = - $1,500.00
N = 3 × 12 = 36
i = 5%
P/yr = 12
Fv = $0
Pv = ?
Using a Financial calculator to enter the amount as done above the Principle amount would be $50,048.55
Explain the digestion process of a complex carbohydrate by arranging the statements in the order that they occur.
a. The enzyme, amylase. which is present in saliva breaks potysaccharide chains into disaccharides.
b. Other enzymes in the small intestine further break the potysaccharide into monosaccharides.
c. You take a bite and to chew the complex carbohydrate into smaller pieces.
d. Amylase is deactivated by the low pH in the stomach.
e. Monosaccharides are absorbed through the intestinal wad.
Answer:
The digestion process of a complex carbohydrate:
c. You take a bite and to chew the complex carbohydrate into smaller pieces.
a. The enzyme, amylase. which is present in saliva breaks polysaccharide chains into disaccharides.
b. Other enzymes in the small intestine further break the polysaccharide into monosaccharides.
d. Amylase is deactivated by the low pH in the stomach.
e. Monosaccharides are absorbed through the intestinal wad.
Explanation:
The monosaccharides are produced last in the digestion process described above because it is the absorption of energy (glucose) into the body. It is at this stage that carbohydrate is metabolized within cells to create fuel. Then in the presence of oxygen, this important glucose breaks down into carbon dioxide and water, and finally energy is released as a byproduct.
Brad will graduate next year. When he begins working, he plans to deposit $6000 at the end of each year into a retirement account that pays 6% interest. How much will be in his account after 40 deposits
Answer:
$92,8571.7937
Explanation:
The computation of the amount after 40 deposits is shown below:
= (((1 + interest rate)^number of years - 1) ÷ interest rate)× principal
= (((1 + 0.06)^40-1) ÷ 0.06) × $6,000
= $92,8571.7937
We simply applied the above formula and the same is to be considered
We considered all the things given in the question