Answer:
..Essay below, hope it helps!
Explanation:
The business concept in Islam, unlike the rest of the world, is mainly for profit purposes. As it is not only one of the branches of living, but it is/was a belief that a business trader can be closer to God. Islamic people believe there is nothing wrong with fair commerce and trade. According to resources from ethical practice research, Islamic people think that a businessperson who does their jobs and tasks with honesty and accordance with the commands of Allah, deserve to be rewarded by Allah in the afterlife. Islams are open to giving guiding principles for all human activities. They also prescribe and explain the ethics of business. Their society believe these ethics take an important role in a man's mental structure. Business is fundamental around the world, exchanging business, profits, sharing wealth, but with Islamic practices you can learn to perform business practice better. The religion or beliefs of Islams are great and are very compatible with business, which makes a great impact on their business society. Religion and business make a good combination for the business world in Islam.
Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,500 monthly. The contract currently sells for $115,000.
a. What is the monthly return on this investment vehicle?
b. What is the APR?
c. What is the effective annual return?
Answer:
1.30%
15.60%
16.77%
Explanation:
The monthly return is the amount payable monthly divided by the current price of the investment vehicle.
monthly return=$1500/$115,000=1.30%
Annual percentage return=monthly return*12=1.30% *12=15.60%
Effective annual return=(1+1.30%)^12-1
EAR=1.167651776 -1
EAR=16.77%
Developing a List of Activities for Baggage Handling at an Airport
As part of a continuous improvement program, you have been asked to determine the activities involved in the baggage-handling process of a major airline at one of the airline’s hubs. Prior to conducting observations and interviews, you decide that a list of possible activities would help you to better observe key activities and ask meaningful questions.
Required
For incoming aircraft only, develop a sequential list of baggage-handling activities. Your list should contain between 8 and 10 activities.
Listed below are 8 baggage-handling activities in random order. Put the activities in sequential order by selecting the appropriate number using the drop-down answer options under the "Step" column.
(Step 6 is completed as an example)
Load aircraft
Move baggage to baggage sorting area
Unload aircraft
6 Accumulate baggage for each outgoing flight
Move baggage to outgoing aircraft
Move baggage for which hub is final destination to baggage claim area
Open cargo hatch
Sort baggage by outgoing flight numbers and/or destination
Answer:
1. Open cargo hatch
When the plane arrives, it will need to be unloaded so the first thing to do is open the cargo hatch to have access to cargo area.2. Unload aircraft
After gaining access to the cargo area, unload the aircraft.3. Move baggage to baggage sorting area
The baggage should then be moved to a place where it can be sorted.4. Move baggage for which hub is final destination to baggage claim area
If this is the final destination for the baggage then it should be moved to the baggage claim area5. Sort baggage by outgoing flight numbers and/or destination
When it is time for the outgoing flights, sort them according to which flights they will be going on.6. Accumulate baggage for each outgoing flight
After sorting them, accumulate them and prepare them to be transported to the plane they are to go to.7. Move baggage to outgoing aircraft
After accumulating them, transport them to the plane that they are to go with.8. Load aircraft
After transporting them then load the aircraft.Taylor Swift purchased airline tickets for her dancers to Las Vegas online. Prior to completing the purchase she was required to initial a statement that said that she had read the applicable rules and restrictions and she agreed with them. The rules were readily available for her review by clicking on an icon. If Taylor initials the statement without reading the rules, is she bound by them? Explain why or why not using the elements of contracts.
Answer:
Yes, she is bound by the terms and conditions agreed.
Explanation:
It doesn't matter if Taylor Swift had read or not the terms and conditions of the contract because it was her negligence which doesn't have any impact on the contract. She after clicking the agreeing the terms and condition button and processng her payment has actually formed a contract. The court is not concerned with whether or not Taylor Swift has read the clauses or not.
Political systems, the systems of government in nations, differ from country to country. It is important to understand the nature of different political systems and develop an awareness of and appreciation for the significance of national differences. Political systems are assessed according to two dimensions. The first is the degree to which they emphasize collectivism as opposed to individualism. The second is the degree to which they are democratic or totalitarian. These dimensions are interrelated and may share certain characteristics.
Match the political systems with the countries listed below.
a. China
b. United States
c. Zimbabwe
d. Italy in the 1930s
e. Saudi Arabia
f. France
Political System:
1. Totalitarianism
2. Totalitarianism
3. Representative
4. Totalitarianism
5. Right-Wing
6. Totalitarianism
7. Democracy
Answer:
a. China ⇒ Communist Totalitarianism
China is a former communist country turned in to socialist, but still not democratic. The communist party still rules the country at will without opposition.
b. United States ⇒ Representative Democracy
The US is the oldest modern democracy that still remains in the world. Other countries have older democratic institutions, but the country was not completely democratic, e.g. Parliament existed for centuries in England, but England became a democracy in 1918. The US is considered a representative democracy.
c. Zimbabwe ⇒ Tribal Totalitarianism
Zimbabwe is ruled by a military dictator.
d. Italy in the 1930s ⇒ Right-wing Totalitarianism
Benito Mussolini ruled Italy in the 1930s. He was a fascist dictator that allied with Adolf Hitler during WWII.
e. Saudi Arabia ⇒ Theocratic Totalitarianism
Saudi Arabia is a monarchy where the royal family rules at will without any opposition.
f. France ⇒ Social Democracy
France is considered a social democracy since its last governments have followed socialist ideals through democracy.
The annual premium for a $15 comma 000 insurance policy against the theft of a painting is $300. If the (empirical) probability that the painting will be stolen during the year is 0. 01, what is your expected return from the insurance company if you take out this insurance?
Answer:
-$150
Explanation:
The computation of the expected return from the insurance company is shown below:
= Annual premium × probability of the stolen painting - 1 × theft of painting
= $15,000 × 0.01 - 1 × $300
= $150 - $300
= -$150
By multiplying annual premium with the probability of the stolen painting and then substracted theft of painting so that we can get to know the expected return and the same is to be considered
Prior to liquidating their partnership, Pepper and Reynell had capital accounts of $13,000 and $49,000, respectively. The partnership assets were sold for $24,000. The partnership had no liabilities. Pepper and Reynell share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. $ b. Determine the amount distributed to Reynell, assuming Pepper is unable to satisfy the deficiency. $
Answer:
Explanation:
Based on the information that has been given in the question, the following answer can be provided
a. Determine the amount of Pepper's deficiency.
First, we need to calculate the loss that was recognized. This will be:
= ($13,000 + $49,000) - $24,000
= $62,000 - $24,000
= $38,000
Pepper's share of the loss will then be:
= $38,000/2
= $19,000
Pepper's deficiency will now be his contribution minus the loss incurred. This will be:
= $19,000 - $13,000
= $6,000
Deficiency of $6000
b. Determine the amount distributed to Reynell, assuming Pepper is unable to satisfy the deficiency.
This will be:
= $49,000 - $19000 - $6,000
= $49,000 - $25,000
= $24,000
Assessing Financial Statement Effects of Transactions
Services, a firm providing art services for advertisers, began business on June 1. The following accounts are needed to record the transactions for June: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Service Fees Earned; Rent Expense; Utilities Expense; and Wages Expense.
Record the following transactions for June using the financial statement effects template.
June I M. DeFond invested $12.000 cash to begin the business in exchange for common stock.
2 Paid $950 cash for June rent.
3 Purchased $6,400 of office equipment on credit.
6 Purchased $3,800 of art materials and other supplies; the company paid $1,800 cash with the remainder due within 30 days.
11 Billed clients $4,700 for services rendered.
17 Collected $3,250 cash from clients on their accounts billed on June
19 Paid $5,000 cash toward the account for office equipment (sec June 3)
25 Paid $900 cash for dividends.
30 Paid $350 cash for June utilities.
30 Paid $2,500 cash for June wages.
Answer:
June 1
Cash $12.000 (debit)
Common Stock $12.000 (credit)
June 2
Rent Expense $950 (debit)
Cash $950 (credit)
June 3
Office Equipment $6,400 (debit)
Account Payable $6,400 (credit)
June 6
Supplies $3,800 (debit)
Cash $1,800 (debit)
Account Payable $2,000 (credit)
June 11
Accounts Receivable $4,700 (debit)
Service Fees Earned $4,700 (credit)
June 17
Cash $3,250 (debit)
Accounts Receivable $3,250 (credit)
June 19
Account Payable $5,000 (debit))
Cash $5,000 (credit)
June 25
Dividends $900 (debit)
Cash $900 (credit)
June 30. Utilities
Utilities Expense $350 (debit)
Cash $350 (credit)
June 30. Wages
Wages $2,500 (debit)
Cash $2,500 (credit)
Explanation:
Use the Account titles provided for guidance in respect to an account to be debited or credited.
Grand River Corporation reported taxable income of $550,000 in 20X3 and paid federal income taxes of $192,500. Not included in the computation was a disallowed meals and entertainment expense of $3,000, tax-exempt income of $2,000, and deferred gain on a current-year transaction treated as an installment sale of $30,000. The corporation's current earnings and profits for 20X3 would be:_________
Answer:
$336,500
Explanation:
Grand River corporation has a taxable income of $500,000 in 20X3
They paid a federal income tax of $192,500
The amount of expense that was not added to the report is $3,000
The tax exempt income is $2,000
The deferred gain is $30,000
Therefore, the current earinings and profits of the corporation for the year 20X3 can be calculated as follows
= Taxable income-federal income taxes-expenses-tax exempt income+deferred gain
=$500,000-$192,500-$3,000+$2,000+$30,000
= $336,500
Hence the current earnings and profits for the corporation is $336,500
Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. If the terms of trade are established as 1 apple for 4 oranges, then:
Answer: a. there are no incentives for Beta to engage in international specialization and trade with Alpha.
Explanation:
Beta can produce 16 oranges or 4 apples in an hour. This means that for every Apple they produce, they can produce 4 oranges;
4 apples : 16 oranges
1 apples : 4 oranges
This is the same terms of trade being offered to them by Alpha because if they sell 1 apple to Alpha they will get 4 oranges. This is the same thing they will get when they are producing for themselves alone.
An incentive would have been them getting more oranges per apple than they can produce on their own if they sacrifice one apple which is not the case. There are simply no incentives for Beta to engage in international specialization and trade with Alpha.
Record the following process costing transactions in the general journal:
a. Purchase of raw materials on account, $9, 300
b. Requisition of direct materials to Assembly Department, $4, 300 Finishing Department, $2, 400
c. Incurrence and payment of direct labor, $10, 500 (these costs should be debited to WIP Inventory-Assembly)
d. Incurrence of manufacturing overhead costs (unpaid): Property taxes-plant, $1, 800 Utilities-plant, $4, 800 Insurance-plant, $1, 700 Depreciation-plant, $3, 800
e. Assignment of conversion costs to the Assembly Department: Direct labor, $5, 000 Manufacturing overhead, $2, 600
f. Assignment of conversion costs to the Finishing Department: Direct labor, $4, 700 Manufacturing overhead, $6, 600
g. Cost of goods completed and transferred out of the Assembly Department to the Finishing Department, $10, 500
h. Cost of goods completed and transferred out of the Finishing Department into Finished Goods Inventory, $15, 600
Answer:
a.
Raw Materials $9,300 (debit)
Account Payable $9,300 (credit)
b.
Assembly Department $4,300 (debit)
Finishing Department $2,400 (debit)
Raw Materials $6,700 (credit)
c.
WIP Inventory-Assembly $10,500 (debit)
Cash $10,500 (credit)
d.
Overheads $12,100 (debit)
Property taxes-plant: Payable $1, 800 (credit)
Utilities-plant : Payable $4, 800 (credit)
Insurance-plant : Payable, $1, 700 (credit)
Provision for Depreciation-plant, $3, 800 (credit)
e.
Work In Process - Assembly Department $7,600 (debit)
Direct labor, $5, 000 (credit)
Manufacturing overhead, $2, 600 (credit)
f.
Work In Process - Finishing Department $11,300 (debit)
Direct labor, $4,700 (credit)
Manufacturing overhead, $6,600 (credit)
g.
Finishing Department, $10,500 (debit)
Assembly Department $10,500 (credit)
h.
Finished Goods Inventory $15,600 (debit)
Finishing Department $15,600 (credit)
Explanation:
Manufacturing costs accumulate in the Work In Process Account of their respective departments.
When goods are transferred out of the Assembly Department to the Finishing Department, de-recognize the cost from Assembly Department (credit) and recognized the cost in Finishing Department (debit).
When cost of goods completed are transferred out of the Finishing Department into Finished Goods Inventory, we de-recognize the cost from Finishing Department and recognize it in the Finished Goods Inventory.
Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 10 percent, a YTM of 8 percent, and 14 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond has a coupon rate of 8 percent, a YTM of 10 percent, and also has 14 years to maturity. Both bonds have a par value of $1,000.
a. What is the price of each bond today?
b. If interest rates remain unchanged, what do you expect the prices of these bonds to be 1 year from now? In 4 years? In 9 years? In 13 years? In 14 years?
Price of bond Miller Corporation Bond Modigliani Company Bond
1 year $ _________ $ _________
4 years $ _________ $_________
9 years $ _________ $_________
13 years $ _________ $ _________
14 years $_________ $_________
Answer:
a. What is the price of each bond today?
Miller Corporation bond = $1,179.71
Modigliani Company bond = $835.42
b. Miller Modigliani Company
Corporation Bond Bond
1 year $1,170.26 $841.89
4 years $1,142.86 $866.67
9 years $1,083.33 $920
13 years $1,019.23 $980.95
14 years $1,050 $1,040
Explanation:
YTM formula:
Miller Corporation
YTM = [coupon + (face value - market value)/n] / (face value + market value)/2
0.04 = [50 + (1,000 - x)/28] / (1,000 + x)/2
0.02(1,000 + x) = 85.71 - 0.0357x
20 + 0.02x = 85.71 - 0.0357x
0.0557x = 65.71
x = 65.71 / 0.0557 = $1,179.71
if we want to calculate the bond price in one year, we replace 28 by 26
0.04 = [50 + (1,000 - x)/26] / (1,000 + x)/2
0.02(1,000 + x) = 88.46 - 0.0385x
20 + 0.02x = 88.46 - 0.0385x
0.0585x = 68.46
x = 68.46 / 0.0585 = $1,170.26
if we want to calculate the bond price in 4 years, we replace 28 by 20
0.04 = [50 + (1,000 - x)/20] / (1,000 + x)/2
20 + 0.02x = 100 - 0.05x
0.07x = 80
x = 80 / 0.07 = $1,142.86
if we want to calculate the bond price in 9 years, we replace 28 by 10
0.04 = [50 + (1,000 - x)/10] / (1,000 + x)/2
20 + 0.02x = 150 - 0.1x
0.12x = 130
x = 130 / 0.12 = $1,083.33
if we want to calculate the bond price in 13 years, we replace 28 by 2
0.04 = [50 + (1,000 - x)/2] / (1,000 + x)/2
20 + 0.02x = 550 - 0.5x
0.52x = 530
x = 530 / 0.52 = $1,019.23
Modigliani Company
YTM = [coupon + (face value - market value)/n] / (face value + market value)/2
0.05 = [40 + (1,000 - x)/28] / (1,000 + x)/2
0.025(1,000 + x) = 75.71 - 0.0357x
25 + 0.025x = 75.71 - 0.0357x
0.0607x = 50.71
x = 50.71 / 0.0607 = $835.42
if we want to calculate the bond price in one year, we replace 28 by 26
0.05 = [40 + (1,000 - x)/26] / (1,000 + x)/2
0.025(1,000 + x) = 78.46 - 0.0385x
25 + 0.025x = 78.46 - 0.0385x
0.0635x = 53.46
x = 53.46 / 0.0635 = $841.89
if we want to calculate the bond price in 4 years, we replace 28 by 20
0.05 = [40 + (1,000 - x)/20] / (1,000 + x)/2
25 + 0.025x = 90 - 0.05x
0.075x = 65
x = 65 / 0.075 = $866.67
if we want to calculate the bond price in 9 years, we replace 28 by 10
0.05 = [40 + (1,000 - x)/10] / (1,000 + x)/2
25 + 0.025x = 140 - 0.1x
0.125x = 115
x = 115 / 0.125 = $920
if we want to calculate the bond price in 13 years, we replace 28 by 2
0.05 = [40 + (1,000 - x)/2] / (1,000 + x)/2
25 + 0.025x = 540 - 0.5x
0.525x = 515
x = 515 / 0.525 = $980.95
The specific meaning of goodwill in accounting is: Multiple Choice The amount by which a company's value exceeds the value of its individual assets and liabilities. Long term assets held as investment. The support of the board of directors for the operating decisions of management. The cost of developing, maintaining, or enhancing the value of a trademark. Rights granted an entity to deliver a product or service under specified conditions.
Answer:
Option A. The amount by which a company's value exceeds the value of its individual assets and liabilities
Explanation:
The reason is that goodwill not only measures the business valuable tangible and intangible assets but also the intangible assets that can not be valued which the company has earned due to its business operations, this includes customer loyalty, key employees, brand's value, etc.
This is the reason why the value of the company's aggregate assets are always above the aggregate market value of assets not sold altogether. Hence the option A is correct here.
When conducting a five Cs analysis and developing the context, which factor should NOT be included in the analysis? Group of answer choices Firm capabilities Culture Technology Legal context
Answer: Firm Capabilities
Explanation:
The 5Cs of Marketing are used by Companies to come up with effective Marketing strategies by using them to clarify exactly what needs to be accomplished.
The 5Cs are; Company, Customer, Collaborators, Competition and Context.
Firm Capabilities does not fall under Context because Context deals with Political, Social, Economical and Technological aspects of the place in question.
Firm Capabilities fall under Company analysis where the company aims to find out if it is capable of of meeting Consumer demands.
Jeff Heun, president of Vaughn Always, agrees to construct a concrete cart path at Dakota Golf Club. Vaughn Always enters into a contract with Dakota to construct the path for $174,000. In addition, as part of the contract, a performance bonus of $43,200 will be paid based on the timing of completion. The performance bonus will be paid fully if completed by the agreed-upon date. The performance bonus decreases by $10,800 per week for every week beyond the agreed-upon completion date. Jeff has been involved in a number of contracts that had performance bonuses as part of the agreement in the past. As a result, he is fairly confident that he will receive a good portion of the performance bonus. Jeff estimates, given the constraints of his schedule related to other jobs, that there is 50% probability that he will complete the project on time, a 25% probability that he will be 1 week late, and a 25% probability that he will be 2 weeks late.A) Determine the transaction price that Concrete Always should compute for this agreement.
B) Assume that Jeff Heun has reviewed his work schedule and decided that it makes sense to complete this project on time. Assuming that he now believes that the probability for completing the project on time is 90% and otherwise it will be finished 1 week late, determine the transaction price.
Answer:
A) Determine the transaction price that Concrete Always should compute for this agreement.
total transaction price = contract price ($174,000) + expected value of the bonus
expected value of the bonus:
$43,200 x 50% = $21,600($43,200 - $10,800) x 25% = $8,100($43,200 - $10,800 - $10,800) x 25% = $5,400total = $35,100total transaction price = $174,000 + $35,100 = $209,100
B) Assume that Jeff Heun has reviewed his work schedule and decided that it makes sense to complete this project on time. Assuming that he now believes that the probability for completing the project on time is 90% and otherwise it will be finished 1 week late, determine the transaction price.
total transaction price = contract price ($174,000) + expected value of the bonus
expected value of the bonus:
$43,200 x 90% = $38,880($43,200 - $10,800) x 10% = $3,240total = $42,120total transaction price = $174,000 + $42,120 = $216,120
If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, in preparing the September 30 bank reconciliation, the company should:
Answer:
The answer is 'add the deposit to the end cash balance per bank statement'
Explanation:
The company made a deposit on the last day of September and this was not recorded by the bank i.e it will not be shown on the bank statement at September 30. The company had already recorded this deposit in the cash book at office. This means the bank statement is less this deposit amount.
To correct this anomaly, the deposit that was not recorded by the bank will be added to the end cash balance as per bank statement.
What will be your rate of return if the price of Telecom stock goes up by 10% during the next year? (Ignore the expected dividend.)
Answer:
The answer is 12%
Explanation:
Initial investment:
$5,000 in equity + $5,000 in debt
=$10,000
Number of shares bought with the initial investment is:
Initial investment/Stock price
= $10,000/$50 = 200 shares.
The shares increase in value by 10%: $10,000 x 0.10 = $1,000.
Interest on debt = $5,000 x 0.08 = $400.
The rate of return will be:
($1,000 - $400) ÷ $5,000
0.12
Expressed as a percentage:
12%
Rodriguez Company pays $310,000 for real estate plus $16,430 in closing costs. The real estate consists of land appraised at $215,000; land improvements appraised at $86,000; and a building appraised at $129,000.Required:1. Allocate the total cost among the three purchased assets.2. Prepare the journal entry to record the purchase.
Answer:
Required 1.
Land = $163,215
Land improvements = $65,286
Buildings = $97,929
Required 2.
Land $163,215 (debit)
Land improvements $65,286 (credit)
Buildings $97,929 (credit)
Cash $310,000 (credit)
Explanation:
Allocation of the purchase cost must be made on the bases appraisal value.
Total Appraisal Value = $215,000 + $86,000 + $129,000
= $430,000
Land = $215,000 / $430,000 × $326,430
= $163,215
Land improvements = $86,000 / $430,000 × $326,430
= $65,286
Buildings = $129,000 / $430,000 × $326,430
= $97,929
Marla Staples is concerned with identity theft. One of the ways that she can protect her information from leaking out to the wrong hands is to: limit her purchases with vendors that she knows do not store her information in a database. limit her travels to only the U.S. because identity theft is an international problem. avoid all e-commerce transactions because this is the only type of buying transaction where websites and others handle sensitive, personal information. install antivirus software, firewalls, and anti-spyware software on her computer.
Answer: Install antivirus software, firewalls, and anti-spyware software on her computer.
Explanation:
Marla's computer is the most likely place where people can gain access to her personal information for use to propagate identity theft. Personal computers have all sorts of personal information such as scanned copies of birth certificates, academic achievements, photographs, bank statements and the like. If the security on a personal computer is breached, it could be quite harmful.
For this reason Marla should install antivirus software, firewalls, and anti-spyware software on her computer to protect it from unwanted access from everyone including people who would use her information for the wrong reasons.
The risk-free return during the sample period was 3%. What is the Sharpe measure of performance evaluation for Sooner Stock Fund
Answer: 0.3864
Explanation:
The Sharpe measure of Performance Evaluation aims to compare the performance of a stock or investment in general to that of a risk free security after the stock has been adjusted for it's risk.
The formula is;
= (Average Return of stock - Risk Free return) / Standard Deviation of stock
= (20% - 3% ) / 44%
= 17% / 44%
= 0.3864
I have attached the full question.
Your company is producing a new ointment for sore muscles. You want to convince a national chain of boxing gyms to use this product. Why is it important to send a business letter in this situation
Answer:
It is important to send a business letter as a way to introduce itself as a company and in order to communicate that the company is interested in starting a relationship with the other one so therefore they can improve their situation in the market.
Explanation:
To begin with, a "Business Letter" is the type of letter that is sent from one company to another one in order to make the first step to establish a future relationship between those companies. It also can be sent from one company to its clients, suppliers, etc. Moreover, this type of communication implicates a formal and permanent record that it can be saved by any party in order to use it later as a prove of the facts established in the letter. Furthermore, every letter has its unique type of content that it will be determined by the type of relationship that the parties have with each other.
Which of the following costs would be applied to manufactured inventory under variable costing? Select one: A. Cost of raw materials B. Salary of factory manager C. Rental payments on administrative offices D. Commissions to sales persons E. Rental payments on factory
Accrual accounting is used because Group of answer choices cash flows are considered less important. it provides a better indication of ability to generate cash flows than the cash basis. it recognizes revenues when cash is received and expenses when cash is paid. none of these.
Answer:
The answer is B. it provides a better indication of ability to generate cash flows than the cash basis
Explanation:
Accrual basis of accounting is a method where revenue and expenses are recognized in the period the transaction occurs irrespective of whether cash is received or not at that period unlike cash basis accounting which recognizes revenue only when cash is received and payment only when cash is given out.
The importances are:
1. It gives an exact picture of the cash flow of the company
2.it provides a better indication of ability to generate cash flows than the cash basis
In each of the following independent situations, determine the dividends received deduction for the calendar year C corporation. Assume that Rose Corporation owns 15%, Pansy owns 10% and Daffodil owns 55% of the stock in the corporations paying the dividends.
Rose Corporation Pansy Corporation Daffodil Corporation
Income from operations $1,200,000 $1,200,000 $1,200,000
Expenses from operations (800,000) (1,300,000) (1,500,000)
Qualifying dividends 400,000 400,000 400,000
Required:
a. The dividends received deduction for Rose Corporation is $__________
b. The dividends received deduction for Pansy Corporation is $_____________
c. The dividends received deduction for Daffodil Corporation is $____________
Answer:
a. The dividends received deduction for Rose Corporation is $ 280,000
b. The dividends received deduction for Pansy Corporation is $ 280,000
c. The dividends received deduction for Daffodil Corporation is $ 320,000
Explanation:
a. The dividends received deduction for Rose Corporation would be calculated as follows:
dividends received deduction for Rose Corporation=Qualifying dividends*70%
dividends received deduction for Rose Corporation=$400,000*70%
dividends received deduction for Rose Corporation=$280,000
The dividends received deduction for Rose Corporation is $ 280,000
b. The dividends received deduction for Pansy Corporation would be calculated as follows:
dividends received deduction for Pansy Corporation=Qualifying dividends*70%
dividends received deduction for Pansy Corporation=$400,000*70%
dividends received deduction for Pansy Corporation=$280,000
The dividends received deduction for Pansy Corporation is $ 280,000
c. The dividends received deduction for Daffodil Corporation would be calculated as follows:
dividends received deduction for Daffodil Corporation=Qualifying dividends*70%
dividends received deduction for Daffodil Corporation=$400,000*80%
dividends received deduction for Daffodil Corporation=$320,000
The dividends received deduction for Daffodil Corporation is $ 320,000
On August 21, Alix Company receives a $2,000, 60-day, 6% note from a customer as payment on her account. How much interest will be due on October 20 - the due date?
a. $10
b. $20
c. $140
d. $120
Answer:
b. $20
Explanation:
Calculation of how much interest will be due on October 20 - the due date
Using this formula
Interest due = Amount received ×Numbers of days ×Note percentage
Let plug in the formula
Interest due =$2,000 x (60/360) x 0.06
Interest due=$2,000×0.17×0.06
Interest due =$20
Therefore $20 interest is the amount of interest that will be due on October 20the due date.
1. The interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the____________ .
2. The Fed can_____________ the money supply by lowering this rate.
Answer:
1. Discount rate.
2. Increase.
Explanation:
A Federal Reserve Bank is one of the twelve regional banks of the Federal Reserve System in the United States of America. The Federal Reserve Banks are saddled with the responsibility of implementing the monetary policy designed and provided by the Federal Open Market Committee (FOMC).
Federal Reserve System also known as the Fed, was created under the Federal Reserve Act which was passed by US Congress in 1913. The Fed began its operations in the year 1914. It's a financial institution which was founded by President Woodrow Wilson and was primarily aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.
Furthermore, just like all central banks, the Fed is a government financial institution which is saddled with these responsibilities;
1. Controlling the issuance of currency in United States of America: the Fed promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
2. Providing banking services to all the commercial banks in the country: the Fed is the "lender of last resort.
3. Regulating banking activities: it has the power to supervise and regulate banks.
The Federal Reserve Board is the governing body which essentially manages the Federal Reserve System and performs an oversight function on domestic monetary policies.
Additionally, the interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the discount rate. Also, the Fed can increase the money supply by lowering this rate (discount rate) and thus, empowering the member banks to lend more money.
Which of the following strategies are not generally used a. Dynamic by using options, futures, swaps, and other more complex derivatives instruments to amplify fund returns b. Passive by following indexes with minimum managerial control c. Neutral, by following market and its growth d. All of the above
Answer:
E) None of the above.
Explanation:
All the strategies described here are common among Investors.
For instance, A market-neutral strategy refers to an investment strategy deployed by an investment manager or investor that is focused on profiting from both bearish and bullish trends of one or more markets, while avoiding risks.
Cheers!
According to Porter, the generic competitive strategy that reflects the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called focus. competitive scope. cost leadership. diversification. differentiation.
Answer:
The correct answer is: cost leadership
Explanation:
According to Porter, every company has a strategy, whether planned or unplanned, being directly influenced by the environment in which it operates and by the industries and competitive sector. For him, companies should use the generic strategies mentioned by him so that they can survive the five competitive forces of the industry. Porter's generic strategies are: cost leadership, differentiation and focus.
The most appropriate generic strategy for the above question is cost leadership, whose central objective is to achieve total leadership in a given sector, using appropriate policies and procedures for that purpose.
The objective is achieved when a company develops a quality structure that brings together efficient equipment, qualification of personnel and control of expenses in order to maintain a low cost that generates greater returns for the company than those of its competitors.
Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $2,400 million in the coming year. In addition, the firm is expected to have net capital expenditures of $360 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year?
Answer:
FCF = $1,995 million
Explanation:
DATA
EBIT(1-T) = $2,400 million
Net Capital Expenditure = $360 million
Net operating working capital (NOWC) = $45 million
Free cash flow (FCF) expected to generate over next year can be calculated as
FCF = EBIT(1-T) - Capital Expenditure - Net operating working capital (NOWC)
FCF = $2,400 million - $360 million - $45million
FCF = $1,995 million
There are zero coupon bonds outstanding that have a YTM of 6.27 percent and mature in 14 years. The bonds have a par value of $10,000. If we assume semiannual compounding, what is the price of the bonds?
Answer:
Price of the Bond is $4,268.26
Explanation:
The price of the bonds can be obtained using a Financial calculator by entering the data as follows :
r = 6.27%
Pmt = $0
n = 14
Fv = $10,000
Pv = ? Price of the Bond
Therefore, Pv, Price of the Bond is $4,268.2561.
Thus Price of the Bond is $4,268.26 ( 2 decimal places).
HH Industries has 50 million shares that are currently trading for $4 per share and $200 million worth of debt. The debt is risk free and has and interest rate of 5%, and the expected return of HH stock is 11%. Suppose a strike causes the price of HH stock to fall 25% to $3 per share. The value of the risk free debt is unchanged. Assuming there are no taxes and the risk of HH's assets is unchanged, what happens to HH's equity cost of capital
Answer:
12%
Explanation:
For computing the equity cost of capital first we have to determine the weight of the capital structure after that the WACC and then finally equity cost of capital which is shown below:
Weight of capital structure
For debt
= $200 million ÷ $400 million
= 0.50
For equity
= 50 million × $4 ÷ $400 million
= 0.50
Now the WACC is
= 0.50 11% + 0.50 × 5%
= 8%
Since the value fo equity is declined by
= 50 × $3
= $150
Now the equity cost of capital is
= WACC + (WACC - interest rate) × (debt ÷ equity)
= 8% + (8% - 5%) × (200 ÷ 150)
= 12%