Answer:
Given the option of a delta call is 0.85 and the stock price at $50,
To calculate the amount of money one will make a short position in 200 calls
Amount in dollars= Number of calls * delta call option* Number of shares per contract*stock price
Given the number of shares per contract is X
=200*0.85*X*50
=8500X
Explanation:
Given the option of a delta call is 0.85 and the stock price at $50,
To calculate the amount of money one will make a short position in 200 calls
Amount in dollars= Number of calls * delta call option* Number of shares per contract*stock price
Given the number of shares per contract is X
=200*0.85*X*50
=8500X
The common stock of Flavorful Teas has an expected return of 17.96 percent. The return on the market is 14 percent and the risk-free rate of return is 4.1 percent. What is the beta of this stock
Answer:
Beta= 1.4
Explanation:
The Capital Asset pricing Model (CAPM) can be used to determined the beta. According to the Capital Asset pricing Model the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate (treasury bill rate), β= Beta, Rm= Return on market.
Using this model,
17.96%= 4.1% + β× (14% - 4.1%)
β× (9.9 %)= 17.96% - 4.1%= 13.86%
β× (9.9 %)= 13.86%
β= 1.4
Beta= 1.4
railway cabooses just paid its annual dividend of 1.70 per share. The company has been reducing the dividends by 11.3 percent each year. How much are you willing to pay today to purchase stock in this company if your required rate of return is 12 percent?
Answer:
8.24
Explanation:
According to the given situation, the computation of purchase stock is shown below:-
Purchase price = Dividend in paid in next year ÷ (required rate of return - Growth rate)
= (1.70 ÷ (1 - 0.113)) ÷ (0.12 - (-0.113))
= 1.92 ÷ 0.233
= 8.24
Therefore for computing the purchase price we simply applied the above formula.
Contract talks between an apparel manufacturer and its union have stalled, and in an effort to increase its leverage against the manufacturer, union members are picketing outside retail stores that carry the manufacturer's apparel. This is called a
Answer:
Secondary boycott.
Explanation:
This has proven or is explained plainly to be a third party boycott. In as much as their are different forms of boycott, this scenario above depicts examples of a secondary boycott.
A secondary boycott could be explained to be a situation where a company is said to have unresolved differences with its workers and in other words its workers are reverting and moving prospective customers to other trading companies to patronise them.
Secondary boycotts are illegal under the National Labor Relations Act and also they are been carried out as a form of dispute resolution between the working force union and also the company been worked for generally.
. Business Source Premier (EBSCO) and Lexis Nexis Academic are examples of research ________. a. periodicals b. indexes c. databases d. reports
Answer:
C.
Explanation:
These are all research databases
Raven Corporation owns three machines that it uses in its business. It no longer needs two of these machines and is considering distributing them to its two shareholders as a property dividend. All three machines have a fair market value of $20,000 each. Their basis is as follows: Machine A, $27,000; Machine B, $20,000; and Machine C, $12,000. The corporation has asked you for advice.
A. If Raven distributes Machine A, the result will be a_______loss of $_______.
B. If Raven distributes Machine B, the result will be_______of $______.
C. If Raven distributes Machine C, the result will be a______of $______.
D. Therefore, to________on Machine A, Raven should consider______Machine A. Raven should consider distributing Machine B because there will be______on the distribution. To______on Machine C, Raven should consider_______Machine C.
Answer:
A.If Raven distributes Machine A, the result will be a NONDEDUCTIBLE LOSS of $7,000
B. If Raven distributes Machine B, the result will be NO GAIN OR LOSS OF $0
C. If Raven distributes Machine C, the result will be a TAXABLE GAIN of $8,000
D.Therefore to PRESERVE THE LOSS on Machine A, Raven should consider SELLING Machine A. Raven should consider distributing Machine B because there will be NO RECOGNIZED GAIN OR LOSS on the distribution. To AVOID RECOGNIZING THE GAIN on Machine C, Raven should consider NEITHER SELLING NOR DISTRIBUTING Machine C
Explanation:
A. If Raven distributes Machine A, the result will be a NONDEDUCTIBLE LOSS of $7,000
Calculation as
(20,000 – 27,000) =-$7,000
B. If Raven distributes Machine B, the result will be NO GAIN OR LOSS OF $0
Calculated as :
(20,000-20,000)=$0
C. If Raven distributes Machine C, the result will be a TAXABLE GAIN of $8,000
Calculated as:
(20,000-12,000)=$8,000
D.Therefore to PRESERVE THE LOSS on Machine A, Raven should consider SELLING Machine A. Raven should consider distributing Machine B because there will be NO RECOGNIZED GAIN OR LOSS on the distribution. To AVOID RECOGNIZING THE GAIN on Machine C, Raven should consider NEITHER SELLING NOR DISTRIBUTING Machine C
In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to
Answer: c. machine hours.
Explanation:
In reference to Automated Operations, the Activity base that is usually used to in determining a pre-determined overhead rate are Machine hours.
It is standard practice to relate overhead to the Direct Labor involved in the production of a commodity and since in this case the direct Labor mostly consists of Machines (Automated) then it is best to relate activities to the Machine hours involved instead.
Weatherwear estimates that every unit sold and returned due to defect costs the company $200 in profits. Approximately what would Weatherwear’s total profits have been in Year 5 if all units sold and returned due to defect had been eliminated?
Answer: С. $9.5 million
Explanation:
The units that were sold and later returned due to defect in Year 5 total;
= 688 + 124 + 536 + 28 + 101 + 8 + 206 + 28 + 120 + 1,050 + 30
= 2,919 units were sold and later returned
Each unit costs the company $200 in profits so;
= 2,919 * 200
= $583,800
Weatherwear made a total profit of $8.9 million in Year 5.
If the defective units had been eliminated then the loss as a result of the units would have been added to the profits as;
= 8,900,000 + 583,800
= $9,483,800
= $9.5 million
Super Carpeting Inc. (SCI) just paid a dividend (D₀) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.50% per year. If the required return (r s ) on SCI’s stock is 16.25%, then the intrinsic value of SCI’s shares is
Answer:
Intrinsic Value = $33.23
Explanation:
The intrinsic value of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.
This model is represented as follows
D(1+g)/(r-g) = P
Price, D- dividend payable in now, ke- required rate of return, g- growth rate
D- 3.12 , g-6.50% r-6.25%
Intrinsic value = (3.12× 1.065)/(0.1625-0.065)= $33.228
Intrinsic Value = $33.23
Sources of monopoly power A monopolist, unlike a competitive firm, has some market power. It can raise its price, within limits, without the quantity demanded falling to zero The main way it retains its market power is through barriers to entry-that is, other companies cannot enter the market to create competition in that particular industry Complete the following table by indicating which barrier to entry appropriately explains why a monopoly exists in each scenario.
Exclusive
Ownership Government-
of a Key Created Economies
Resource Monopolies of Sale
Patents are granted to inventors of a product
or process for a certain number of years. The
reason for this is to encourage innovation in the
economy. Without the existence of patents, it is
argued, research and development for improved
electronics is unlikely to take place, since there’s
nothing preventing another firm from stealing the
idea, copying the product, and producing it without
incurring the development costs.
Throughout much of the 20th century, many people
viewed South Africa’s De Beers Group as a monopoly
because it controlled a large percentage of diamond
production and sales.
In the electricity industry, low average total costs are
obtained only through large-scale production. In other
words, the initial cost of setting up all the necessary
wiring makes it risky and, most likely, unprofitable for
competitors to enter the market.
Answer:
1. Patents are granted to inventors of a product or process for a certain number of years. The reason for this is to encourage innovation in the economy. Without the existence of patents, it is argued, research and development for improved electronics is unlikely to take place, since there’s nothing preventing another firm from stealing the idea, copying the product, and producing it without incurring the development costs.
Government Created Monopoly.
Patents protect the intellectual property of a person or entity and prevent others from taking it and using it without rewarding the people who came up with it. The owners of the parents are able to dictate the selling of the resource and as such have a monopoly over it. Patents are granted by the government which makes this a Government created Monopoly.
2. Throughout much of the 20th century, many people viewed South Africa’s De Beers Group as a monopoly because it controlled a large percentage of diamond production and sales.
Ownership of Key Economic Resource.
As early as 1902, De Beers controlled 90% of the world's diamond production and under the leadership of J P Morgan, consolidated control over the diamond industry. They controlled many mines and also bought diamonds from other producers allowing them to control the diamond trade. Even though their control has waned of late, they still control around 35% of the world's diamond production which is a very significant percentage.
3. In the electricity industry, low average total costs are obtained only through large-scale production. In other words, the initial cost of setting up all the necessary wiring makes it risky and, most likely, unprofitable for competitors to enter the market.
Economies of Scale
To survive in the Electricity industry the company would need to have an extensive network to permit them to benefit from Economies of Scale. This can be very difficult to set up so companies stay away from the industry thereby creating a monopoly for those already in it.
Question 3
When a court hears a breach of contract dispute, its job is to:
Classical economists contend that official measures of unemployment: Multiple Choice understate the problem due to the existence of discouraged workers. overstate the problem because most unemployment is voluntary. understate the problem due to involuntary part-time employment. overstate the problem because most unemployment is cyclical.
Answer: overstate the problem because most unemployment is voluntary.
Explanation:
Unemployment is a term that is used to refer to individuals who are looking for job but can not find a job.
Classical economists contend that official measures of unemployment
overstate the problem because most unemployment is voluntary.
According to the Classical economists, there is increase in employment because those seeking employment do not want to work for lower wages but will rather wait for high paying jobs and this therefore leads to overstating of the unemployment rate.
Tom and Suri decide to take a worldwide cruise. To do so, they need to save $15,000. They plan to invest $2,500 at the end of each year for the next six years to earn 9% compounded annually. Calculate the future value of the investment. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)
Answer: $18,808.25
Explanation:
There is a constant cashflow of $2,500 making this an annuity.
The future value of the $2,500 paid every year for 6 years at 9% will be;
Future value of Annuity = 2,500 * Future Value of Annuity factor, 6 periods, 9%) (refer to attached table)
= 2,500 * 7.5233
= $18,808.25
The future value of the amount is more than the amount they would require.
Trak Corporation incurred the following costs while manufacturing its bicycles.
Bicycle components $100,000
Advertising expense $45,000
Depreciation on plant 60,000
Property taxes on plant 14,000
Property taxes on store 7,500
Delivery expense 21,000
Labor costs of assembly-line workers 110,000
Sales commissions 35,000
Factory supplies used 13,000
Salaries paid to sales clerks 50,000
Required:
Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.
Please find the answer below.
Explanation:
Bicycle components $100,000 - Direct materials
Advertising Expense $45,000 - Period costs
Depreciation on plant $14,000 - manufacturing overhead
Property taxes on plant $14,000 - manufacturing overhead
Property taxes on store $7,500 - manufacturing overhead
Delivery expense $21,000 - period costs
Labor costs of assembly-line workers $110,000 - Direct labor
Sales commissions $35,000 - Period costs
Factory supplies used $13,000 - Period costs
Salaries paid to sales clerks $50,000 - period costs
Cheers.
Which is an example of an electronic storefront?
O A. A hair salon
B. An online bidding service
C. A taco stand
D. A pet store
Answer:
B......................
An online bidding service is an example of an electronic storefront. Hence, option B is correct.
What is meant by electronic storefront?For business owners who want to host a website that promotes their products and services and enables for online sales from clients, an electronic storefront is an eCommerce alternative.
Three of the greatest examples of contemporary companies are Amazon, J. Crew, and Etsy. They all employ a headless CMS, a pricing and promotions engine, and a custom search engine.
With a headless CMS like fabric XM, retailers can instantly update and modify their shop. A platform-based online shopping centre that houses a variety of online shops. With the use of the internet, all transactions—from choosing products to purchasing and selling goods and services—can be completed.
Thus, option B is correct.
For more details about electronic storefront, click here:
https://brainly.com/question/28249360
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McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:
20Y5
Retail $249,570
Wholesale $366,685
Total Revenue $616,255
20Y4
Retail $265,500
Wholesale $324,500
Total Revenue $590,000
Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers
Answer:
McHale Company
Horizontal Analysis of the segments
For the years 20Y4 and 20Y5
20Y5 20Y4 Difference amount Difference Percent
Retail $249,570 $265,500 $15,930 6.0%
Wholesale $366,685 $324,500 $42,185 13.0%
Total revenue $616,255 $590,000 $58,115 3.85%
Difference Percent Working
Retail= $15,930 / $265,500 * 100 = 6%
Wholesales = $42,185 / $324,500 * 100 = 13%
Total revenue = $58,115 / $590,000 * 100 = 3.85%
Keidis Industries will pay a dividend of $5.15, $6.25, and $7.45 per share for each of the next three years, respectively. In four years, you believe that the company will be acquired for $69.00 per share. The return on similar stocks is 11.4 percent. What is the current stock price
Answer:
The answer is $59.85
Explanation:
This question will be solved using the Dividend Discount Model. It is one of the valuation methods used in valuing price of Equity/stock.
Po = D1 + (1 + r)^n + D2 + (1 + r)^n + D2 + (1 + r)^n + CF4 /(1 + r)^n
Po is the current worth of stocks
D1, D2, D3 is the dividend paid in year 1, 2 and 3
CF4 is the price of the company in year 4
r is the discount rate
n is the number of years
$5.15 /1.114^1 + $6.25 /1.114^2 +$7.45/1.114^3 + $69/1.114^4
$4.62 + $5.04 + $5.39 + $44.80
Current price of the stock = $59.85
The market basket approach is intended to isolate changes in consumption level by holding constant the cost of goods and services purchased in two or more periods of interest.
Answer:
The market basket approach is intended to isolate changes in price level by holding constant the quantity of goods and services purchased in two or more periods of interest.
The Market Basket Approach is a method of measuring price changes in the Economy and is usually used to track changes in an individual market segment. It works by constantly buying a certain amount of goods and services overtime. The changes in price for those exact same goods will give an indication of just how much price is changing by in the Economy.
The Consumer Price Index (CPI) is a type of CPI.
Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $2,100,000 par value, mature in four years, and pay 7% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded)
Answer:
1.
1 Jan 2019
Cash 2100000 Dr
Bonds Payable 2100000 Cr
2.
30 June 2019
Interest expense 73500 Dr
Cash 73500 Cr
31 Dec 2019
Interest expense 73500 Dr
Cash 73500 Cr
3.
31 Dec 2022
Bonds Payable 2100000 Dr
Cash 2100000 Cr
Explanation:
1.
The bonds are assumed to be issued at par value as the market interest rate is not given and is assumed to be the same as the interest rate on bonds of 7%. The issuance of bonds on par is recorded as a debit to the cash received against the bonds and a credit to the bonds payable account.
2.
The semi annual interest payment on bond is,
Bond interest-semi annual = 2100000 * 0.07 * 6/12 = 73500
The interest rate given is the annual interest rate of 7%. That is why we multiply it with 6/12 to get the semi annual interest.
3.
The disposal of bonds will be a reversal of the issuance entry. The bonds payable will be debited by the par value amount and the cash will be credited.
Consider Country (Z) with a GDP level of 210,000 and a growth rate of 5% in 2019 (i.e. calculated at the end of year 2019). The experts predict that the growth of the economy of Country (Z) wills gradually slowdown in the coming years. More precisely, they foresee the following growth rates for the future: 2019 – 2022 (5%), 2022 – 2025 (3%). Hint: The list above should be read as saying that, for instance, `the growth rate from the end of 2019 until the end of 2022 will be 5%, then from the end of 2022 until the end of 2025 it will be 3%’ and so on. Requirement a) Assuming that the predictions of the experts listed above are accurate, when in the future will Country Z’s GDP double compared to the GDP level of 2019? [10 marks] b) What would Country Z’s GDP growth rate be from 2025 and so on at 1%? Explain your reasoning carefully. [5 marks] c) Consider now the more optimistic scenario in which the economy does not slow down and the current growth rate of 5% remains constant in the coming years. How long will it take for the GDP level to double in this scenario? Express your answer in two forms: i) In number of years [5 marks] ii) As a fraction of your answer in part a.
Answer:
Please help me, l can not answer it
Explanation:
You have just won the lottery and will receive a lump sum payment of $22.93 million after taxes. Instead of immediately spending your money, you plan to deposit all of the money into an account that will earn 5.11 percent. If you make equal annual withdrawals for the next 35 years, how much can you withdraw each year starting exactly one year from now
Answer:
The amount you can withdraw each year is $1,419,926
Explanation:
In order to calculate the amount you can withdraw each year starting exactly one year from now we would have to make the following calculation:
amount you can withdraw each year=r*PV/1-(1+r)∧-n
According to the given we have the following:
PV=$22,930,000
r=5.11%
n=35
Therefore, amount you can withdraw each year=5.11%*$22,930,000/1-(1+5.11%)∧-35
amount you can withdraw each year=$1,171,723/0.8252
amount you can withdraw each year=$1,419,926
The amount you can withdraw each year is $1,419,926
E6-23 (similar to) Aunt Betty Bakery reported net sales revenue of $ 59 comma 000 and cost of goods sold of $ 17 comma 000. Compute Aunt Betty's correct gross profit if the company made either of the following independent accounting errors. a. Ending merchandise inventory is overstated by $ 4 comma 000. b. Ending merchandise inventory is understated by $ 4 comma 000.
Answer:
a. Ending merchandise inventory is overstated by $4,000.
net sales revenue of $59,000
cost of goods sold of $17,000 + $4,000 = $21,000
gross profit = $38,000
Since ending inventory was overstated, it means that COGS were understated.
b. Ending merchandise inventory is understated by $4,000.
net sales revenue of $59,000
cost of goods sold of $17,000 - $4,000 = $13,000
gross profit = $46,000
Since ending inventory was understated, it means that COGS were overstated.
A nation's central bank makes an open market purchase of 20-year bonds. What is the short-run effect on the nation's economy
Answer:
The answer is:
when a nation's central bank makes an open market purchase of 20-year bonds, short-run effect is that the quantity of money in circulation increases, interest rates are low because the nation's commercial banks have more money to lend. Households and businesses are motivated to borrow money because of low rates
Explanation:
This is a monetary tool - open-market operation which is a situation in which when the central bank purchases securities inorder to increase the money supply and sells securities to decrease the money supply.
So when a nation's central bank makes an open market purchase of 20-year bonds, short-run effect is that the quantity of money in circulation increases, interest rates are low because the nation's commercial banks have more money to lend. Households and businesses are motivated to borrow money because of low rates.
This is usually done to stimulate the economy i.e to stop the economy from slowing down.
How much would you need to deposit in an account now in order to have $4000 in the account in 5 years? Assume the account earns 3% interest compounded monthly.
Answer:
PV= $3,443.48
Explanation:
Giving the following information:
Future value= $4,000
Interest rate= 0.03/12= 0.0025
Number of months= 5*12= 60
To calculate the initial investment required, we need to use the following formula:
PV= FV/(1+i)^n
PV= 4,000/(1.0025^60)
PV= $3,443.48
The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.Month Total Total Machine Hours Maintenance Costs January $ 3,041 4,032February 3,456 4,608March 4,147 6,912April 5,184 9,101May 3,686 5,760June 5,322 9,216Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.)
Answer:
Variable cost per unit= $2.27 per machine hour
Explanation:
Giving the following information:
January 3,041 $4,032
February 3,456 $4,608
March 4,147 $6,912
April 5,184 $9,101
May 3,686 $5,760
June 5,322 $9,216
To calculate the unitary variable cost, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (9,216 - 4,032) / (5,322 - 3,041)
Variable cost per unit= $2.27 per machine hour
CDB stock is currently priced at $80. The company will pay a dividend of $4.57 next year and investors require a return of 10.8 percent on similar stocks. What is the dividend growth rate on this stock
Answer:
The answer is 5.09%
Explanation:
The model used in this question is the Dividend Discount Model and it is one of the methods used in determining the price of stock. Here, the price of stock had already been determined. We are looking for one of the variables (growth rate) used in determining the price.
The formula for determining price of stock is:
Po = D1/r - g
Where Po is the price of stock
D1 is the dividend for next year
r is the rate of return
g is the dividend growth rate
$80 = $4.57/0.108 - g
Cross multiply:
8.64 - 80g = 4.57
80g = 8.64 - 4.57
80g = 4.07
g = 4.07/80
g =0.05088
g = 5.09%
Several years after reengineering its production process, King Corporation hired a new controller, Christine Erickson. She developed an ABC system very similar to the one used by King's chief rival. Part of the reason Erickson developed the ABC system was because King's profits had been declining, even though the company had shifted its product mix toward the product that had appeared most profitable under the old system. Before „ adopting the new ABC system, the company had used a plantwide overhead rate, based on direct labor hours developed years ago. For the upcoming year, King's budgeted ABC manufacturing overhead allocation rates are as follows:
Activity Allocation Base Activity Cost allocation rate
Materials handling Number of parts $4.00 per part
Machine setup Number of setups $375.00 per setup
Insertion of parts Number of parts $28.00 per part
Finishing Finishing direct labor hours $54.00 per hour
The number of parts is now a feasible allocation base because King recently purchased bar-coding technology. King produces two wheel models: Standard and Deluxe Budgeted data for the upcoming year are as follows:
Standard Delux
Parts per wheel 8 10
Setups per 1,000 wheels 20 20
Finishing direct labor hours per wheel 2 3.5
Total direct labor hours per wheel 2.6 3.4
The company's managers expect to produce 1,000 units of each model during the year.
Required:
a. Compute the total budgeted manufacturing overhead cost for the upcoming year.
b. Compute the manufacturing overhead cost per wheel of each model using ABC.
c. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system.
Answer:
King Corporation
a. Computation of total budgeted manufacturing overhead cost:
Activities Standard Deluxe Total
Materials handling (number of parts):
Standard = 8 x $4 x 1,000 $32,000
Deluxe = 10 x $4 x 1,000 $40,000 $72,000
Machine setup (number of parts):
= 20 x $375 $7,500 $7,500 $15,000
Insertion of parts (number of parts):
Standard = 8 x $28 x 1,000 $224,000
Deluxe = 10 x $28 x 1,000 $280,000 $504,000
Finishing (direct labor hours):
Standard = 2 x $54 x 1,000 $108,000
Deluxe = 3.5 x $54 x 1,000 $189,000 $297,000
Total $371,500 $516,500 $888,000
b. Computation of the manufacturing overhead cost per wheel of each model using ABC:
Standards = $371,500/1,000 = $371.50
Deluxe = $516,500/1,000 = $516.50
c. Computation of the company's traditional plantwide overhead rate to determine manufacturing overhead cost per wheel:
Overhead rate = $888,000/6,000 = $148
Manufacturing overhead cost per wheel:
Standard = $148 x 2.6 = $384.80
Deluxe = $148 x 3.4 = $503.20
Explanation:
a) Calculations:
Total overhead cost = $888,000
Allocation based on total direct labor hours per wheel
Plantwide overhead rate:
Total labor hours:
Standard 2.6 x 1,000 = 2,600 hours
Deluxe 3.4 x 1,000 = 3,400 hours
Total labor hours = 6,000 (2,600 + 3,400)
= $888,000/6,000 = $148 per direct hour
b) According to wikipedia.com, "Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. This model assigns more indirect costs into direct costs compared to conventional costing."
Obama drives up miles-per-gallon requirements Emissions from all new vehicles must be cut from 354 grams to 250 grams. To meet this new standard, the price of a new vehicle will rise by $1,300. Source: USA Today, May 20, 2009 What is the opportunity cost of reducing the emission level by 1 gram?
Answer:
$12.5 per gram
Explanation:
Opportunity cost is the cost which is:
Future related costCash flow in natureIncremental Cost or DifferentialIn simple words, opportunity cost is the benefit lost due to given up another best alternative.
To reduce the pollution level from 354 to 250 gram, the price of new vehicle will increase by $1300.
Hence
The increase in price per gram = $1,300 / (354 - 250) = $12.5 per gram
This is the opportunity cost per gram increase in Carbon dioxide emission which the companies will have to bear if they don't opt to environmental free vehicles.
2. Why is defining activities a process of project schedule management instead of project scope management
Answer:
Explanation:
Project schedule management is the allocation of timeframe to the task s to be done for a project to be successful while project scope management show the work that needs to be done.
Defining activities is a process of project schedule management, because it simply concentrates on how and when a task will be carried out while in project scope management l, the focus is on the work that will be performed on a project.
Zero growth: Nynet, Inc., paid a dividend of $4.18 last year. The company does not expect to increase its dividend for the next several years. If the required rate of return is 18.5 percent, what is the current price of the stock
Answer:
$22.60
Explanation:
Zero growth: Nynet, Inc., paid a dividend of $4.18 last year. The company does not expect to increase its dividend for the next several years. If the required rate of return is 18.5 percent, what is the current price of the stock:
D÷R = 4.18/0.185
= $22.6
Ken works in a U.S. based pharmaceutical company that sells antibiotics at a low cost to several African countries. He later learns that most of these drugs are expired antibiotics that have been repackaged by the company. Ken immediately informs one of his friends, a federal agent, regarding his company’s illegal activities. Which of the following statements is true of the given scenario?A) There are no implications because the shelf-life of pharmaceuticals is typically much longer than as dated.B) Ken’s constitutional right to freedom of speech would protect him from any form of retaliation by his employer.C) Ken would receive no protection since no comprehensive whistle-blowing law protects the right to free speech.D) Ken would be protected by law from retaliation by his employer.
Answer: D) Ken would be protected by law from retaliation by his employer.
Explanation:
Ken would be protected from any retaliation from his employer by the Sarbanes-Oxley Act under section §1514A of the act that protects Whistleblowers.
The act directly prohibits the discharging, demotion, suspension, harassment, or in any other type discriminate against a a whistleblower.
Ken in his actions acted as a Whistleblower and as such would be afforded due protection by the law.