Answer:
$850,000
Explanation:
Call contracts*Call option*Share of stock*Stock price
= 200*0.85*100*50
= $850,000
Thus, we need to borrow $850,000
Find the equivalent taxable yield of the municipal bond for tax brackets of zero, 10%, 20%, and 30%, if it offers a yield of 4.50%
Answer and Explanation:
The computation of the equivalent taxable yield is shown below:
For zero = 4.50%
For 10% = 4.50 ÷ 0.90 = 5%
For 20% = 4.50 ÷ 0.80 = 5.625%
For 30% = 4.50 ÷ 0.70 = 6.43%
For 10%, for 20% and for 30% it would reduced the tax brackets by the same
like
for 10%
= 1 - 0.10
= 0.90
The Same applied for other ones
Therefore the above should be the answer
Joan has the following assets and liabilities: Credit card balance $1,000 Cash $200 Government bonds $3,000 Checking $300 Car loan balance $10,000 Car $15,000 What is Joan's money demand?A) $200 B) $300 C) $500 D) $1,000 E) $11,000
Answer:
C. $500
Explanation:
Money demand can be defined as the part of an assets in which a person is ready to hold as cash . The money can however be used to purchase goods or services.
Money demand can be denoted as
= Cash balance + Checking account balance.
Given that;
Cash balance = $200
Checking account balance = $300
Money demand = $200 + $300
Money demand = $500
Therefore, Joan's money demand is $500.
Fitch Ratings a credit rating agency, recently downgraded Vermont's debt rating from AAA to AA, citing the state's economy and changing demographics This change could supood:________.a. Increase the direct costs of the state's debt. b. Increase private investment c. Cause the vote to invest in more securities d. None of these likely to occur
Answer:
a. Increase the direct costs of the state's debt.
Explanation:
When a bond's rating is downgraded is a signal to the investors that investing in the bond now is riskier than it was prior to the rating downgrade, hence, a perceived higher risk using the risk/return relationship means that the bond issue would have to offer a higher return to entice the investors to invest in the bonds.
As a result, the higher required rate of return translates into a higher direct cost of the state's debt since their interest rate offered has increased
If a competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $24 per bushel and the marginal cost is $26 per bushel, the firm should:_______
Answer: reduce output.
Explanation:
In a competitive market, firms do not have control over the price that they sell their goods in the market but they do have control over their costs. It is recommended to produce/ sell goods at a quantity where Marginal Revenue will equal Marginal cost (MR = MC).
In a Competitive Market, Price is the same as Marginal revenue which means that Marginal revenue here is $25 and the Marginal Cost is $26. At this quantity of output, the Marginal Cost is larger than the Marginal revenue.
Company should therefore reduce output to a quantity where Marginal Cost will equal Marginal revenue.
PLEASE ANSWER
what is the tort in the situation above?
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A few years ago the British government was considering retiring, or buying back from investors, some outstanding consols that had annual coupons of . A consol is:______
a. a coupon bond that pays a variable coupon rate and does not mature.
b. a coupon bond that pays a fixed coupon rate and has a fixed maturity date.
c. a coupon bond that pays a variable coupon and has a fixed maturity date.
d. a coupon bond that pays a fixed coupon rate and does not mature.
If the yield to maturity on other long-term British government bonds was 2.0%, the price the British government is likely to offer investors is £ _________
Answer: d. coupon bond that pays a fixed coupon rate and does not mature.
$3250
Explanation:
A consol is a coupon bond that pays a fixed coupon rate and does not mature. Consols are consolidated annuities that are perpetual. A steady amount of interest is paid for a consol even though they're not redeemable
Price of a consol will be gotten as fixed coupon amount divided by the rate of return. Let's assume that the fixed coupon amount is $65, then the price will be:
= 65/2%
= $3250
Bravo's complete assets and liabilities are Accounts Receivable $800, Equipment $10,000, Accounts Payable $4,200, Prepaid Rent $2,000, Supplies $400, Bank Loan $1,600, and Tools $300. Bravo's total assets are:_____.a. $11,100.b. $13,500.c. $11,500.d. $13,100.e. none of these.
Answer:
b $13,500
Explanation:
Assets are items that are used by a business organization for positive economic value .
Given that;
Accounts receivable = $800
Equipment = $10,000
Accounts payable = $4,200
Prepaid rent = $2,000
Supplies = $400
Bank loan = $1,600
Tools = $300
Total assets = Accounts receivable + Equipment + Prepaid rent + Supplies + Tools
Total assets = $800 + $10,000 + $2,000 + $400 + $300
Total assets = $13,500
Therefore, Bravo's total assets is $13,500.
Alma Corp. issues 2,480 shares of $8 par common stock at $16 per share. When the transaction is recorded, credit(s) are made to a.Common Stock $19,840 and Retained Earnings $19,840. b.Common Stock $19,840 and Paid-in Capital in Excess of Stated Value $19,840. c.Common Stock $39,680. d.Common Stock $19,840 and Paid-in Capital in Excess of Par Value $19,840.
Answer:
b. Common Stock $19,840 and Paid-in Capital in Excess of Stated Value $19,840.
Explanation:
Journal Entry
Particulars Debit Credit
Cash ($16*2,480) $39680
Common stock (2,480 *$8) $19,840
Paid in capital in excess of par value (2,480 *$8) $19,840
You work as a tutor for ECON 102. You sell your services at $20/hr., and you can only tutor one person at a time. Suppose you currently have 5 clients. If it cost you on average $14/hr to tutor the first student, in order to increase profits you should. a. We need more information to answer b. Find more clients c. Lower the price d. Get rid of some clients e. Continue to see the same number of clients
Answer:
a. We need more information to answer
Explanation:
In order to correctly answer his question we need more information. Economy is all about the margin, i.e. marginal revenue versus marginal cost. We are given the marginal revenue ($20/hr of tutoring services) but we are not given the marginal costs of tutoring. We only know that the cost of tutoring the first hour is $14, but what about the rest of the hours. Since you have 5 clients, you must be tutoring more than 1 hour per day. It is always easier to determine the marginal revenue since we determine it, while we cannot determine which costs we would like to incur.
Profits should be maximized when marginal revenue = marginal cost, but unless we know the marginal cost of tutoring the rest of the students we simply cannot answer this question.
Agency employees interact with Taco Bell employees across job types because they need knowledge about the products and plans, increasing their:________
a. boundary spanning.
b. hierarchical sensitivity.
c. decision informity.
d. staff validity.
e. task validity.
Answer:
c. decision informity.
Explanation:
Since in the question it is mentioned that there is a interaction of Agency employees with the employees of Taco bell for different types of job as they need the knowledge regarding the product and plans that increased the decision informity
As if you have great knowledge and information so you are able to take the right decision i.e. ultimately good for a company
Therefore the option c is correct
A stock has an expected return of 13.4 percent, the risk-free rate is 9 percent, and the market risk premium is 10 percent. What must the beta of this stock be?
Answer: 0.44
Explanation:
From the question, we are informed that a stock has an expected return of 13.4 percent, the risk-free rate is 9 percent, and the market risk premium is 10 percent.
The beta of this stock be calculated as:
= (13.4% - 9%) / 10%
= 4.4% / 10%
= 0.044 / 0.10
= 0.44
Therefore, the beta of the stock is 0.44
When you add additional forms to a project, you add additional ________, which are stored in their own files.
Monopolistic competition is defined by product differentiation .explain
Explanation:
Product differentiation is the means used by a firm in a monopolistic competitive market with many firms selling similar products to differentiate its product from that of other firms
Answer:
In Monopolistic Competition, a buyer can get a specific type of product only from one producer. In other words, there is product differentiation. The firms have to incur selling expenses since there is product differentiation. There is a large number of sellers with inter-dependent demand and supply conditions
Explanation:
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situations: (You will have 3 graphs)
The government borrows money to fund a war.
Private investors become more optimistic about the economy.
The government raises personal income taxes (do not consider the change in consumer saving).
In the text box provided, enter the time and date you sent your graphs to your instructor. Please specify if you e-mailed or faxed the graph. Make sure your name and the assignment number are on your paper and that each graph is clearly marked with an a, b, or c. (30 points)
Answer:
1. a) War increases demand for loanable funds, demand curve shifts RIGHT. (Increase in real interest rate)
b) Private investors are optimistic about the economy (i.e. investment opportunities). Demand for loanable funds increases, demand curve shifts RIGHT. (Increase in real interest rate)
c) Tax increase means a decrease in the supply about loanable funds. Supply curve shifts LEFT. (Increase in real interest rate)
2. would most likely increase the supply of loanable funds. If Americans are saving more, then they are spending less money and investing more of it. Remember--saving does not mean "not using it". It means investing it instead of consuming.
3. The interest rate will fall. There is a surplus of loanable funds and the real interest rate will reflect this surplus by falling.
4. decrease in the demand for loanable funds. When output decreases, the return on investment for new projects decreases and investors are less in need of money to fund their ventures.
5. decrease the supply for loanable funds. If they are consuming more, they are saving less.
6. Increase / Decrease. When interest rates increase, growth is reduced because funding economic ventures is now more costly. Sometimes the fed will increase interest rates when it anticipates inflation to increase in order to mitigate economic growth.
Hope this was helpful!
Explanation:
Economies of scale occur when a firm's long-run average total cost curve is ___________________. a. upward sloping.b. vertical.c. downward sloping.d. horizontal.
Answer:
The correct answer is the option C: Downward sloping.
Explanation:
To begin with, the concept known as "Economies of Scale" is a vary famously term in the microeconomics theory due to the fact that it refers to the particular situation that a company achieves when their costs are at the lowest possible point in the long run becuase of the great volumen in production that the organization is starting to handle so that means that the more they start to produce the less the amount that the company will have to spend in the costs. Therefore that the curve in the graphic will be downward sloping due to the decrease of the prices in the costs implicating the amount that the company is handling.
A stock has a beta of 1.2. Suppose the expected market risk premium (EMRP) is 6% and the risk-free rate is 1%. What is this stock's expected return according to the CAPM
Answer:
7%
CAPM = 1% + [6% - 1%](1.2) = 1% + 6% = 7%
An operator trainee is attempting to monitor a filling process that has an overall average of 705 cc. The average range is 17 cc. If you use a sample size of 6, what are the upper and lower control limits for an R-chart?
Answer and Explanation:
The computation of the upper and lower control limits for R-chart is shown below:
Upper Control limit of [tex]\bar x[/tex] chart is
[tex]\bar x[/tex] + A2 × [tex]\bar R[/tex]
=705 + 0.483 × 17
=713.21
Lower Control Limit Of [tex]\bar x[/tex] Chart is
[tex]\bar x[/tex]- A2 × [tex]\bar R[/tex]
= 705 - 0.483 × 17
= 696.789
The A2 value could be taken from the X bar and R bar chart having a sample size of 6
Now
Upper control limit of R Chart
= D4 × [tex]\bar R[/tex]
= 2.004 × 17
= 34.068
And,
Lower limit of R chart
= D3 × [tex]\bar R[/tex]
= 0.076 × 17
= 1.292
The D3 value is not available for the sample size 6 so we took the values of sample size 6
Also the D3, D4, and A2 could be taken from X bar tables and the range chart
Donnegan Company reported operating expenses of $325,000 for 2020. The following data were extracted from the company’s financial records: 12/31/19 12/31/20 Prepaid Expenses $ 60,000 $69,000 Accrued Expenses 210,000 255,000 Accounts Payable 300,000 350,000 On a statement of cash flows for 2020, using the direct method, cash payments for operating expenses should be:___________.
Answer:
cash payments for operating expenses should be $329,000
Explanation:
Cash Payments for operating expenses is included in the Cash Flow from Operating Activity Section of the Statement of Cash Flows when the Direct Method of preparing this statement is selected.
This is calculated as follows :
Cash Payments for operating expenses
Operating expenses $325,000
Adjustment of changes in Working Capital
Increase in Prepaid Expenses ($69,000 - $ 60,000) $9,000
Increase in Accrued Expenses ($255,000 - $210,000) $45,000
Increase in Accounts Payable ($350,000 - $300,000) ($50,000)
Cash payments for operating expenses $329,000
Suppose that you buy a 1-year maturity bond with a coupon of 7% paid annually. If you buy the bond at its face value, what real rate of return will you earn if the inflation rate is 4%
Answer:
the real rate of return is 2.88%
Explanation:
The computation of the real rate of return is shown below:
As we know that
Real rate of return is
= {(1 + nominal rate of return) ÷ (1 - inflation rate)} - 1
= {(1 + 0.07) ÷ (1 + 0.04)} - 1
= 2.88%
Hence, the real rate of return is 2.88%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
An investor can invest money with a particular bank and earn a stated interest rate of 8.80%; however, interest will be compounded quarterly. What are the nominal (or stated), periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate 8.80% Periodic rate 6.12% Effective annual rate 9.00%
Answer:
nominal interest rate = 8.8%
periodic interest rate = 2.2%
the effective interest rate = 9.09%
Explanation:
nominal interest rate is the rate given to the investor = 8.8%
periodic interest rate = nominal interest rate / total number of compounding periods per year = 8.8% / 4 = 2.2%
the effective interest rate = (1 + periodic interest rate)ⁿ - 1 = (1 + 8.8%/4)⁴ - 1 = (1 + 8.8%/4)⁴ - 1 = (1 + 2.2%)⁴ - 1 = 1.0909 - 1 = 0.0909 = 9.09%
ABC company had 8,000 in accounts receivable on Dec. 31, 2019. However, the company estimated that 2,000 of them would become bad debt. The company recorded the 2,000 as bad debt. What is the impact on the financial statement?
Answer:
Net income is reduced by 2,000 and the net value of receivables on balance sheet reduced by 2,000
Explanation:
Since it is given that there is $8,000 in account receivable out of which $2,000 would be estimated and recorded as a bad debt
So here the bad debt expense is recorded that means the expenses are increased that ultimately reduced the net income also at the same time the amount of receivable would also decreased by $2,000
Therefore the same is to be considered
An increase in a firm's tax rate will__________ if the firm has debt capital in its capital structure:
a. increase both the cost of preferred stock and debt.
b. decrease the cost of preferred stock.
c. increase the firm's WACC.
d. decrease the firm's WACC.
Answer:
d. decrease the firm's WACC.
Explanation:
As per WACC formula
WACC = ( Weight of Common Equity x Cost of Common Equity ) + ( Weight of Common Debt x Cost of Common Debt x ( 1 - Tax rate ) ) + ( Weight of Preferred Equity x Cost of Preferred Equity )
By assuming the values to prove the answer
Weights
Common equity = 55%
Preferred Equity = 15%
Debt = 30%
Costs
Common equity = 15%
Preferred Equity = 8%
Debt = 12%
Tax rate is 15%
Placing values in the formula
WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 15% ) ) + ( 15% x 8% )
WACC = 8.25% + 3.06% + 1.2% = 12.51%
Keeping others values constant, Now increase the Tax rate to 25% and placing vlaues in the formula
WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 25% ) ) + ( 15% x 8% )
WACC = 8.25% + 2.7 + 1.2% = 12.15%
Hence the WACC is decreased from 12.51% to 12.15% when the tax rate is increased from 15% to 25% keeping other values constant.
A college education fund is to be accumulated by twenty level semi-annual deposits, the first due on Jan. 1, 2011. The fund is to provide sixteen quarterly withdrawals of $1000 each, the first due on Oct 1, 2020. The nominal annual rate of interest is 10% convertible semi-annually. What is the amount of each deposit?
Answer:
$395.74
Explanation:
the college fund requires 20 equal semiannual payments starting January 1, 2011 and the last one should be made on July 1, 2020.
first we must determine the effective rate of the fund:
effective rate = (1 + 10%/2)² - 1 = 10.25%
now we must determine the quarterly rate:
quarterly rate = (1 + r)¹/⁴ - 1 = 2.47%
the present value of the annuity:
PV = distribution x annuity factor
distribution = $1,000PV annuity factor, 2.47%, 16 periods = 13.08553PV = $1,000 x 13.08553 = $13,085.53
that means that by July 1, 2020, you need to have $13,085.53 in your college fund
FV of an annuity = contribution x annuity factor
FV = $13,085.53FV annuity factor, 5%, 20 periods = 33.066contribution = FV / annuity factor = $13,085.53 / 33.066 = $395.74
State the 5 most important banking services and rank them in order that you feel most important.
Answer:
checking account, savings acc, debit and credit cards, insurance , wealth management
Explanation:
The most important banking services can be as follows:
Account openingCheck issuing facilityLoan facilityIssuing credit or debit cardsInsurance assistanceWhat is a bank?The bank is a financial authority that is accountable to the account holders who have opened their accounts in their bank.
Banks provide various types of services which are described as follows:
Banks allowed every individual of a country to open their respective accounts in any bank as per their income source.Banks provided the account holders the permit to issue a check in respect of any transaction in his/her name.They are given loans to the holder at a certain interest rate in accordance with the amount held in their bank accounts.They offer credit or debit cards for making cashless transactions or buying something expensive product in installments.They also provide insurance facilities in collaboration with the insurance company for a time span of some years.Therefore, the service being provided by banks are explained as above.
Learn more about the banking system in the related link:
https://brainly.com/question/15062008
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In order to maximize profit, this perfectly competitive firm should produce:________.a. 30 units of output. b. 60 units of output. c. 50 units of output. d. 40 units of output.
Answer:
Perfect Competition meaning & equilibrium condition. Explanation of various cases when Q can be either options.
Explanation:
Perfect Competition market is a market with many buyers & sellers, selling homogeneous products, at identical prices.
Perfect competition firm is at equilibrium, when : Marginal Revenue (MR), ie same as Price (P) = Marginal Cost (MC)
Suppose TC = 100 + Q^2 , P = 60Then MC = 2Q . Equalising MC & P, Q = 60 / 2 = 30
Suppose TC = 100 + Q^2 , P = 80Then MC = 2Q. Equalising MC & P , Q = 80/2 = 40
Suppose TC = 100 + Q^2 , P = 100Then MC = 2. Equalising MC & P, Q = 100/2 = 50
Suppose TC = 100 + Q^2 , P = 120Then MC = 2Q. Equalising MC & P, Q = 120 / 2 = 60
A firm has a tax burden ratio of 0.8, a leverage ratio of 1.35, an interest burden of 0.8, and a return on sales of 12%. The firm generates $2.60 in sales per dollar of assets. What is the firm's ROE?
Answer:
28.64%
Explanation:
ROE = Tax burden * Interest burden * Margin * Turnover * Leverage
ROE = 0.85*0.8*0.12*2.60*1.35
ROE = 0.286416
ROE = 28.64%
pencer Co. has a $300 petty cash fund. At the end of the first month the accumulated receipts represent 553 for delivery expenses, $167 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $58. The journal entry to record the reimbursement of the account includes a:_________.a) Debit to Petty Cash for $300. b) Debit to Cash Over and Short for $58 c) Credit to Cash for $242 d) Credit to Inventory for $167e) Credit to Cash Over and Short for $58.
Answer:
c) Credit to Cash for $242
Explanation:
Petty cash, beginning = $300
Delivery expense = $53
Merchandise inventory = $167
Miscellaneous expense = $22
Petty cash, Ending = $58
The journal to record the reimbursement of the accounts will be:
Event Account Title and Explanation Debit Credit
1 Delivery expense $53
Merchandise inventory $167
Miscellaneous expense $22
Cash $242
Critically examine the maximax criteria for decision making under uncertainty
Explanation:
A decision under uncertainty is when there are many unknowns and no possibility of knowing what could occur in the future to alter the outcome of a decision.
TIME REMAINING
29:35
What gives the US government the power to collect taxes?
the Constitution
laws passed by Congress
an executive order
common law
Answer:
The Constitution
Explanation:
In the United States, Article I, Section 8 of the Constitution gives Congress the power to "lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This is also referred to as the "Taxing and Spending Clause."
Suppose an increase in the demand for dollars has caused an appreciation of the dollar. According to the purchasing power parity theorem, the value of the dollar in the future will:
Answer:
Appreciate more
Explanation:
Suppose an increase in the demand for dollars has caused an appreciation of the dollar. According to the purchasing power parity theorem, the value of the dollar in the future will appreciate more. This is because the shift in demand and supply will cause an increase in the value of the dollar. Purchasing power parity (PPP) is a theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.