Answer:
$47,800
Explanation:
net cash outflow for the new machine = Cost of new machine - salvage value of old machine + tax ( salvage value of old machine - book value of old machine)
$70,000 - $18,000 + 0.3($18,000 - $32,000)
$70,000 - $18,000 + (0.3 × $-14,000) = $47,800
I hope my answer helps you
Hi Abigail,
As you may know, Macy’s is in a battle with Abercrombie & Fitch for sales among 15- to 20-year-old female customers. We are relocating our Junior department to the basement of our store to give young people a separate entrance and place to call their own. We want to beat Abercrombie & Fitch, and we’ll all need to work together to make that happen.
Thanks for your hard work. Together we can do this!
Best regards,
William
1. Do you think some kind of reward would be appropriate to motivate Abigail? If so, what should it be?
a. A choice of work assignments
b. Two days off with pay
c. A $200 bonus
2. What sentences should I use to increase Abigail’s expectancy P&O expectancy?
a. You asked for new promotional posters last week—I’ve gotten those for you.
b. Any employee who increases sales by 10% this month will receive a reward.
c. Your attitude is critical in this effort—I know you can do it.
3. Which of the following sentences should I use to increase Abigail’s E&P expectancy?
a. Any employee who increases sales by 10% this month will receive a reward.
b. You can choose your own reward if you hit your goals.
c. You asked for new promotional posters last week—I’ve gotten those for you.
Answer:
c b a
Explanation:
1. c
You need to make the person feel good about their hard work.
2. b
They make the right point.
3. a
It pretty much makes the most sense as you don't want the employ to have too much power.
For employee encouragement Macy’s shall do the following:
1. Reward to Abigail:
a) A choice of work assignments
2. Performance & outcome expectancy:
c) Your attitude is critical in this effort, I know you can do it.
3. Effort & Performance Expectancy:
a) Any employee who increases sales by 10% this month will receive a reward.
What do you mean by Performance and Outcome (P&O) Expectancy?
Performance Expectancy:
The degree to which a person expects that employing a system will enable him or her to improve their performance at work is known as performance expectancy (PE).
Outcome Expectancy:
Expected results of a conduct, whether favorable or bad, are referred to as outcome expectations.
Expectancy theory consists of three parts:
Effort Performance ⇒ Result ⇒ RewardoutcomeTherefore Macy should focus on employee motivation by combining effort, performance & outcome element under agency theory.
To know more about Performance & Outcome (P&O) Expectancy refer:
https://brainly.com/question/14914100
#SPJ5
Nathan’s Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $22,000 in 2018.
Required: 1. & 2. Assuming the preferred stock is cumulative and noncumulative, how much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018?
Cumlative Non Cumlative
preferred Dividends for 2018
preferred Dividends in arrears for 2017
Remaining Dividends to common stockholders
Total Dividens:
Answer and Explanation:
The computation is shown below:-
Particulars Cumulative Non Cumulative
Preferred dividends for 2018 $10,000 $10,000
Preferred dividend in
arrears for 2017 $10,000 $0
Remaining Dividends to
Common stockholders $2,000 $12,000
Total Dividends $22,000 $22,000
Dividend payable to Preferred stockholders per year = (Number of shares × Par value) × Given percentage
= (2,000 × $100) × 5%
= $10,000
On January 1, 2018, Brussels Enterprises issues bonds at par dated January 1, 2018, that have a $3,400,000 par value, mature in 4 years, and pay 9% interest semiannually on June 30 and December 31.
Required:
a. Record the entry for the issuance of bonds for cash on January 1, 2018.
b. Record the entry for the first semiannual interest payment on June 30, 2018.
c. Record the entry for the second semiannual interest payment on December 31, 2018.
d. Record the entry for the maturity of the bonds on December 31, 2021 (assume semiannual interest is already recorded).
Answer:
a. Record the entry for the issuance of bonds for cash on January 1, 2018.
January 1, 2018, bonds are issued
Dr Cash 3,400,000
Cr Bonds payable 3,400,000
b. Record the entry for the first semiannual interest payment on June 30, 2018.
June 30, 2018, first coupon payment
Dr Interest expense 153,000
Cr Cash 153,000
c. Record the entry for the second semiannual interest payment on December 31, 2018.
December 31, 2018, second coupon payment
Dr Interest expense 153,000
Cr Cash 153,000
d. Record the entry for the maturity of the bonds on December 31, 2021 (assume semiannual interest is already recorded).
December 31, 2021, payment of bonds payable
Dr Bonds payable 3,400,000
Cr Cash 3,400,000
Mars Inc. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should
Answer:
It should continue the production in the short-run.
Explanation:
Given the unit produced by Mars Inc. = 100000 boxes.
The selling price of boxes = $4 per box.
The variable costs = $3 per box.
The fixed costs = $150000
The total sales revenue = number of boxes × selling price
= 100000 × 4
= $ 400000
In the short run, the firm should continue its production because it still covers the variable costs.
2016
Mar. 1 Borrowed $ 240,000 from Naples Bank. The twelve-year, 9% note requires payments due annually, on March 1. Each payment consists of $ 20,000 principal plus one year's interest.
Dec. 1 Mortgaged the warehouse for $ 400 comma 000 cash with Sage Bank. The mortgage requires monthly payments of $ 5,000. The interest rate on the note is 11% and accrues monthly. The first payment is due on January 1, 2017.
31 Recorded interest accrued on the Sage Bank note.
31 Recorded interest accrued on the Naples Bank note. 2017
Jan. 1 Paid Sage Bank monthly mortgage payment.
Feb. 1 Paid Sage Bank monthly mortgage payment.
Mar. 1 Paid Sage Bank monthly mortgage payment.
1 Paid first installment on note due to Naples Bank.
Required:
Journalize be transactions in me Green Pharmacies general journal.
Answer:
Green Pharmacies
General journal
Mar. 1:
Debit Cash Account $240,000
Credit Bank 9% Notes Payable (Naples Bank) $240,000
To record the issue of notes payable.
Dec. 1
Debit Warehouse Mortgage $400,000
Credit Warehouse $400,000
To record the transfer of the house to a mortgage bank.
Debit Cash Account $400,000
Credit Mortgage Payable (Sage Bank) $400,000
To record the receipt of cash from the mortgage.
Dec. 31:
Debit Interest on Mortgage Note Expense $3,667
Credit Interest on Mortgage Note Payable $3,667
To record the interest due for the month.
Dec. 31:
Debit Interest on Bank Note Expense $18,000
Credit Interest on Bank Notes Payable $18,000
To accrue interest for 10 months.
Jan. 1:
Debit Mortgage Payable (Sage Bank) $5,000
Debit Interest on Mortgage Note Payable $3,667
Credit Cash Account $8,667
To record monthly repayment plus interest.
Jan. 31:
Debit Interest on Mortgage Note Expense $3,667
Credit Interest on Mortgage Note Payable $3,667
To record the interest due for the month.
Feb. 1:
Debit Mortgage Payable (Sage Bank) $5,000
Debit Interest on Mortgage Note Payable $3,667
Credit Cash Account $8,667
To record monthly repayment plus interest.
Feb 28:
Debit Interest on Bank Note Expense $3,600
Credit Interest on Bank Notes Payable $3,600
To accrue interest for 2 months.
Mar. 1
Debit Mortgage Payable (Sage Bank) $5,000
Debit Interest on Mortgage Note Payable $3,667
Credit Cash Account $8,667
To record monthly repayment plus interest.
Mar. 1:
Debit Notes Payable (Naples Bank) $20,000
Debit Interest on Bank Notes Payable $21,600
Credit Cash Account $41,600
To record the first repayment of principal and interest.
Explanation:
Journals are initial records made in an accounting book. It shows the debit and credit aspects of each business transaction.
Footsteps Co. has a bond outstanding with a coupon rate of 5.4 percent and annual payments. The bond currently sells for $1,007.49, matures in 18 years, and has a par value of $1,000. What is the YTM of the bond
Answer: 5.33%
Explanation:
Use a financial calculator to get this faster.
On the calculator input the following.
FV = 1,000 because when it matures in 18 years it will be worth this
PV = -1007.49 as that is the current value. Should be in negative.
PMT = 54 because the coupon payments are 5.4% from the par of $1,000 which is $54.
N = 18
Click compute / CPT and then click I/Y.
You should get a YTM of 5.33%.
When there are lower prices, but waiting lines customers will often be drawn to the competing location of a Monopolistic Competitor with greater customer service and better atmosphere.
A. True
B. False
"Columbia Corp.'s required ROI is 10%. Its East Division has operating assets of $7,500,000, profit margin of 15%, and asset turnover of 0.80. Calculate the East Division's operating income."
Answer:
East Division operating income = $900,000
Explanation:
Profit margin = Net operating income/Sales
Asset turnover = sales/average operating assets
0.80= x/7,500,000
x = 7500000*0.80
= 6000000
Thus, sales = 6,000,000
Profit margin = net operating income/Sales
15% = x /6,000,000
x= 6,000,000*15%
=900,000
Net operating income = 900,000
Evaluate Alternative Financing Plans
Domanico Co., which produces and sells biking equipment, is financed as follows:
Bonds payable, 6% (issued at face amount) $5,000,000
Preferred $2.00 stock, $100 par 5,000,000
Common stock, $25 par 5,000,000
Income tax is estimated at 40% of income.
What factors other than earnings per share should be considered in evaluating alternative financing plans?
a.Bonds represent a fixed annual interest requirement, while dividends on stock do not.
b.Dividends reduce retained earnings.
c.Bond holders exercise control over board of directors decisions.
d.Stock must be paid annual dividends.
e.Net income is reduced by dividend expense.
Answer:
What factors other than earnings per share should be considered in evaluating alternative financing plans?
b.Dividends reduce retained earnings.Explanation:
Only option B is true, since retained earnings = previous balance + net income - dividends.
Option A is wrong because preferred stocks collect annual interests or preferred dividends. Option C is wrong because common stockholders exercise control over the board of directors. Option D is wrong because it is not necessary to pay dividends to common stockholders. Option E is wrong because dividend expense reduces retained earnings, not net income.1. Based on the following information calculate the expected return and standard deviation for two stocks: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession .15 .04 −.17 Normal .55 .09 .12
The question is incomplete! Complete question along with answer and step by step explanation is provided below.
Question:
Based on the following information calculate the expected return and standard deviation for two stocks:
State of Economy Recession Normal Boom
Probability of State of Economy .15 .55 0.30
Rate of Return if State Occurs
Stock A .04 .09 .17
Stock B -.17 .12 .27
Answer:
The expected return of stock A is 10.65%
The expected return of stock B is 12.15%
The standard deviation of stock A is 4.5%
The standard deviation of stock B is 13.92%
Explanation:
The expected return of stock A is given by
[tex]E(A) = \sum ROR_{A} \cdot P \\\\E(A) = 0.04\cdot 0.15 + 0.09 \cdot 0.55 + 0.17 \cdot 0.30 \\\\E(A) = 0.006 + 0.0495 + 0.051 \\\\E(A) = 0.1065 \\\\[/tex]
Therefore, the expected return of stock A is 10.65%
The expected return of stock B is given by
[tex]E(B) = \sum ROR_{B} \cdot P \\\\E(B) = -0.17\cdot 0.15 + 0.12 \cdot 0.55 + 0.27 \cdot 0.30 \\\\E(B) = -0.0255 + 0.066 + 0.081 \\\\E(B) = 0.1215 \\\\[/tex]
Therefore, the expected return of stock B is 12.15%
The standard deviation of stock A is given by[tex]\sigma_A = \sqrt{\sum (ROR_{A} -E(A))^2 \cdot P} \\\\\sigma_A = \sqrt{(0.04 -0.1065)^2 \cdot 0.15 + (0.09 -0.1065)^2 \cdot 0.55 + (0.17 -0.1065)^2 \cdot 0.30} \\\\\sigma_A = \sqrt{0.000663337 + 0.000149737 + 0.00120967} \\\\\sigma_A = 0.045[/tex]Therefore, the standard deviation of stock A is 4.5%
The standard deviation of stock B is given by[tex]\sigma_B = \sqrt{\sum (ROR_{B} -E(B))^2 \cdot P} \\\\\sigma_B = \sqrt{(-0.17 -0.1215)^2 \cdot 0.15 + (0.12 -0.1215)^2 \cdot 0.55 + (0.27 -0.1215)^2 \cdot 0.30} \\\\\sigma_B = \sqrt{0.012745 + 0.0000012375 + 0.00661567} \\\\\sigma_B = 0.1392[/tex]Therefore, the standard deviation of stock B is 13.92%
If the Fed lowers the required reserve ratio, __________ in the banking system will remain unchanged but __________ will rise. This will (likely) lead to an increase in new loans and checkable deposits and a(n) __________ in the money supply.
Answer:
Reserves; excess reserves; increase.
Explanation:
If the Fed lowers the required reserve ratio, reserves in the banking system will remain unchanged but excess reserves will rise. This will (likely) lead to an increase in new loans and checkable deposits and an increase in the money supply because the banks would be willing to give out money as loans or mortgages to interested individuals.
The Federal Reserve System popularly known as the Fed was established by the U.S Congress on the 23rd of December, 1913 under the Federal Reserve Act. The Fed is the central bank of the United States of America. Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
banks in order to put a definitive end to the bank panics of the 1800s.
The Federal Reserve Bank is a government agency that is saddled with the following responsibilities;
1. To control the issuance of currency in United States of America (it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets).
2. To provide banking services to all the commercial banks in the country (the Federal Reserve is the "lender of last resort).
3. To regulate banking activities (it has the power to supervise and regulate banks).
"Columbia Corp.'s required ROI is 10%. Its West Division has revenues of $6,000,000, asset turnover of 1, and ROI of 10%. Calculate the West Division's operating income."
Answer: $600,000
Explanation:
From the question, we are informed that Columbia Corp.'s required return on investment is 10%. Its West Division has revenues of $6,000,000, asset turnover of 1, and ROI of 10%. The the West Division's operating income goes thus:
Revenue= $6,000,000
Asset turnover = 1
It should be noted that assets turnover is calculated as revenue divided by total assets. This will be:
1 = 6,000,000/total asset
Total asset = 6,000,000/1
= 6,000,000
Since return on investment is 10%,
ROI = Operating income/total assets
10% = operating income/6,000,000
0.1 = operating income/6,000,000
Operating income= 6,000,000 × 0.1
Operating Income= $600,000
One way to encourage the desired CSR behavior throughout the firm is to record expectations and the boundaries of acceptable behavior in an _____ Code and reinforce those rules and norms via regular ethics training.
Answer:
Ethics
Explanation:
Ethics code defines that is accepted by a company for better understanding that what is right or wrong so that they can follow the understand of their resolution.
Corporate social responsibility states that the business can be done in the favor of society so that the society can be in trouble to select their products. On the other hand the organization take care that the child labor should not be done.
According to the given situation the correct answer is ethics as they give the ethics training with taking care of rules and regulation.
The following errors in recording the transactions for December were discovered in the general journal the next month after the data had been posted to the ledger
Dec. 5 Discovered that a purchase of office equipment for $1,100 cash was recorded as a debit to Shop Equipment and a credit to Cash
10 Discovered that a check for $2,700 to the owner, Hank Rudolph, to pay one month's utilities on his personal apartment was recorded as a debit to Utilities Expense and a credit to Cash. performed was recorded as a debit to Cash and a credit to Accounts Receivable. and a credit to Prepaid Rent.
15 Discovered that a receipt of $30,500 cash from a customer for services
20 Discovered that $3,150 for this month's rent was recorded as a debit to Cash
Record the necessary correcting entries.
Answer with its Explanation:
On 5, Dec, the missing entry to record the purchase of office equipment must be recorded as under:
Dr Office Equipment $1,100
Cr Payables or Cash Account $1,100
Now we will reverse the recording of purchase of office equipment as shop equipment as under:
Dr Payables or Cash Account $1,100
Cr Shop Equipment $1,100
Alternative method: Post the net effect in books as under:
Dr Office Equipment $1,100
Cr Shop Equipment $1,100
On 10, Dec, the payment to the owner is drawing and the correct entry to record the drawing is as under:
Dr Drawings $2,700
Cr Cash Account $2,700
Now the entry that we previously posted incorrectly would be reversed as under:
Dr Cash Account $2,700
Cr Utilities expenses $2,700
Alternative method: Post the net effect in books as under:
Dr Drawings $2,700
Cr Utilities expenses $2,700
On 15, Dec, the correct entry to record the missing entry of receipt from accounts receivables would be as under:
Dr Accounts receivable $30,500
Cr Cash Account $30,500
On 20, Dec, the first thing we will do is eliminate the effect of the incorrect entry which was incorrectly posting to the cash account with rental amount hence the correct entry to eliminate this would be as under:
Dr Prepaid rentals $3,150
Cr Cash Account $3,150
Now the correct entry would be to record the rent expense as under:
Dr Rent expense $3150
Cr Cash account $3,150
Alternative method: Post the net effect in books as under:
Dr Prepaid rentals $3,150
Dr Rent expense $3150
Cr Cash account $6,300
Sheldon just joined a new gym and signed up for a one-year membership. Membership fees can be paid in 12 monthly payments of $60, due at the beginning of each month or in one payment today. If the appropriate interest rate is 10%, how much should he pay today for the annual membership
Answer: $688.17
Explanation:
He has to pay $60 every month on the first day or a lump sum.
The lump sum will be the present value of monthly payments.
This is a stable Cashflow and so is an Annuity and because it is done on the first day of the month it is an Annuity due.
Calculating present value of annuity due is;
= Annuity + Annuity (( 1 - ( 1 + r) ^ -(n - 1)) / r)
= 60 + 60 (( 1 - ( 1 + 0.833%)-¹¹) / 0.833%) )
=60 + 60* 10.4695
= $688.17
Note: interest rate must be divided into 12 to make it monthly rate.
=10%/12
= 0.833%
Yo-Down Inc. produces yogurt. Information related to the company’s yogurt production follows:
Production Department 1 Production Department 2 Production Department 3
Support Department 1 cost driver 1,600 100 300
Support Department 1’s costs total $120,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department.
Production Department 1 Production Department 2 Production Department 3
Support Department 1 cost allocation $ $ $
Answer:
Yo.Down Inc.
Determination of Support Department 1 costs to be allocated to each production department:
Production Production Production
Department 1 Department 2 Department 3
Support Department 1 $96,000 $6,000 $18,000
Explanation:
a) Cost allocation of Support Department 1:
1) Rate of allocation = Total Support Department 1's costs divided by the total of the cost drivers
= $120,000/2000 = $60 per cost driver
2) Production Department 1 = $60 x 1,600 = $96,000
Production Department 2 = $60 x 100 = $6,000
Production Department 3 = $60 x 300 = $18,000
3) The direct method is one of the three methods for allocating support or service department costs to the production departments in order to ensure the full inclusion of overhead costs in the production costs. As the name goes, the costs of service departments are allocated to only production departments individually. This method is not like the step method of cost allocation where the costs of service departments are allocated to other service departments, starting with the department with the highest costs, followed by the next, until all the costs of service departments are allocated to production. However, no service department whose total costs have been allocated will be allocated any costs. The last method of cost allocation is the reciprocal method, which is a more complicated method that produces more accurate results, by using equations to establish relationships between the departments.
The charitable organization Heifer International uses donations to provide people in developing nations with farm animals to help feed hungry families. Heifer International is therefore contributing to
Answer:
Subsistence farming
Explanation:
With the provision of such donations, Heifer international is contributing to subsistence farming.
Subsistence farming is a kind of farming where proceeds from the farm are for immediate consumption. Peop who engage in such farming do it to meet the immediate needs of themselves and their families. Heifers donation is targeted towards breeding of farm animals for the people to feed, which is basically for their survival. This is what makes it a contribution to subsistence farming.
Flounder Corporation had pretax financial income of $185,000 and taxable income of $117,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 20%.Compute the amount to be reported as income taxes payable at December 31, 2017.
Answer:
hi my name is lucy if I help u u help me ok mate the answer is 7/80
On Tuesday, Smokey had taken off his watch, which he had found laying on top of a trash can at the curbside, and placed it on the counter. Several days later, Smokey decided to invite some friends over to play cards. Bandit, Jim, Rob, and Carl came over for the event. Bandit noticed the watch sitting on the counter, and when no one was around he took it. The next day, Bandit sold the watch to Enos for $350. Enos later sold the watch to Rick for $430. When Rick met Smokey later that night for the football game, Smokey realized that Rick had his watch and demanded its return. Rick refused, claiming it was his because he had paid Rick for it. Who owns the watch?
Answer:
Rick owned the watch.
Explanation:
In the scenario given above between Smokey and his group of friends, it is a complicated situation. Initially, Smokey owes the watch but it was stolen by his friend in his house. His friend ended selling it to other person which finally ended up being paid for by Rick after it has exchanged so many hands.
Since Rick had a valid transaction where he paid for a goods for a certain amount of money, it would be validly recognized as the owner of the watch.
An investment had a nominal return of 9.7 percent last year. The inflation rate was 2.7 percent. What was the real return on the investment
Answer:
6.816%
Explanation:
The real rate of return is nominal rate of return less inflation rate
(1 + nominal rate ) = (1 + real rate ) x (1 + inflation rate)
= 1.097 = real rate x 1.027 = 1.06816 - 1 = 0.06816 = 6.816%
I hope my answer helps you
Darwin is a 60-year-old software engineer for Compuswerve, Inc. Recently, the company went through a reorganization process meant to revamp the business and the work it does. The directors want to rework the company as a fresh, hip business with cutting-edge knowledge from young, creative-minded employees. Obviously, Darwin doesn’t fit into the directors’ vision, so the managers wish to replace him. Sure enough, a few weeks later Compuswerve hires some new employees, and Darwin is offered a severance plan and dismissed.
1. Which of the following, if true, would legally support the company’s decision to fire and replace Darwin? Check all that apply.
a. if the company had fewer than 20 employees
b. if Darwin needed a reasonable accommodation to perform his job due to a disability
c. if Darwin planned to retire in less than five years
d. if Darwin was unable to perform the essential functions of his job
e. if Darwin had another job offer elsewhere
f. if the company was a private (non-governmental) organization
g. if there were more highly skilled workers in the organization who could take his place
2. Which law prevents employees like Darwin from discrimination in employment?
a. ADEA
b. Title VII
c. Affirmative action
d. ADA
3. Are the company’s actions permissible, considering its mission and vision?
a. No, because Darwin was treated less favorably than younger employees based solely on his age.
b. Yes, because age is not a protected class in employment law.
c. No, because Darwin was not given compensation or allowed adequate time to find another job.
d. Yes, because the company is private and therefore has the right to hire or fire whomever they want to.
Answer:
Darwin and Compuserve, Inc.
1. d. if Darwin was unable to perform the essential functions of his job
e. if Darwin had another job offer elsewhere
2. b. Title VII
3. a. No, because Darwin was treated less favorably than younger employees based solely on his age.
Explanation:
Title VII of the Civil Rights Act of 1964 is a federal law that protects employees against discrimination based on certain specified characteristics: race, color, national origin, sex, and religion. Under Title VII, an employer may not discriminate with regard to any term, condition, or privilege of employment.
Federal employment laws prohibit discrimination of persons who are over 40 years.
Answer:
2. ADEA
Explanation:
Age
Discrimination
Employment
Act
of 1967, forbids discrimination to people/employees who are age 40 or older.
g If the U.S. real exchange rate appreciates, U.S. exports a. increase and U.S. imports decrease. b. decrease and U.S. imports increase. c. and U.S. imports both increase. d. and U.S. imports both decrease.
Answer:
The answer is B.
Explanation:
If dollar appreciates, imports become cheaper(decrease), meaning dollar will buy more of another foreign currency
because Americans will find foreign goods less expensive because they have to spend less for those goods and services in dollar.
In the same vein, exports rise(increase) or less profitable, causing the domestic demand to fall because foreigners will find American goods more expensive because they have to spend more for those goods and services in dollar
The next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4.5 percent forever. The stock currently sells for $37 per share. a. What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the expected capital gains yield? (Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)
Answer:
Dividend yield= 6.37%
Expected capital gains yield= 4.5%
Explanation:
The next dividend payment that will be made by Savitz incorporation is $2.34 per share
The dividends are expected to have a growth rate of 4.5 percent forever
The stock is currently being sold for $37 per share
(A) The dividend yield can be calculated as follows
Dividend yield= Dividend per share/Price per share
= $2.34/$37
= 0.0632×100
= 6.32%
Dividend yield= 6.32%
(B) The expected capital gains yield can be defined as the increase in the price of the stock that is being sold. Since the growth rate of the stock is expected to remain at 4.5% forever then, the expected capital gains yield is 4.5%
Hence the dividend yield is 6.32% and the expected capital gains yield is 4.5%
During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for 10$ each and his sales averaged 20 per day. When he increased the price by , he found that the average decreased by two sales per day.(a) Find the demand function, assuming that it is linear.(b) If the material for each necklace costs Terry 6$ , what should the selling price be to maximize his profit?
Answer:
$13.00
Explanation:
Thom owes $5,000 on his credit card. The credit card carries an APR of 17.3 percent compounded monthly. If Thom makes monthly payments of $170 per month, how long will it take for him to pay off the credit card assuming that he makes no additional charges
Answer:
39 months
Explanation:
loan balance $5,000
APR = 17.3% compounded monthly / 12 = 1.44167% monthly interest rate
monthly payment = $170
if we use the present value of annuity formula:
PV = payment x ({1 - [1/(1 + r)ⁿ]} / r)
5,000 = 170 x ({1 - [1/(1 + 0.0144167)ⁿ]} / 0.0144167)
29.4118 = {1 - [1/(1.0144167)ⁿ]} / 0.0144167
0.42402 = 1 - [1/(1.0144167)ⁿ
1/(1.0144167)ⁿ = 0.57598
1.0144167ⁿ = 1 / 0.57598 = 1.73617
n log1.0144167 = log1.73617
n 0.00621639 = 0.2395926
n = 0.2395926 / 0.00621639 = 38.54 ≈ since the payments must be made in full months, we have to round up to 39 months
to check our answer:
PV = payment x ({1 - [1/(1 + r)ⁿ]} / r)
PV = 170 x ({1 - [1/(1 + 0.0144167)³⁹]} / 0.0144167)
PV = $5,044.36
The job performed by brand managers: focuses more on the pricing and promotion of established goods than on the development of new products. is likely to become less important in firms that utilize the Internet. involves broad responsibilities for the marketing of a specific brand or product line. is mainly concerned with the promotion of the entire product mix of their firm.
Answer:
Involves broad responsibilities for the marketing of a specific brand or product line
Explanation:
For companies seeking to make their brands or product line a household name, such would usually make use of the service of a brand manager, whose duty is to market the company's brand or product line through his or her wealth of experience .
As a brand manager, he would device a means or strategy to marketing a company' s brand for a targeted market. There is also the duty of displaying brand integrity in respect of the company's marketing strategies and may as well manage a number of products on behalf of the company.
What is the par value of a corporate bond that was issued with an 9% annual coupon, pays $45 in semiannual interest, and is due in 15 years
Answer:
$1,000
Explanation:
A bond's par value is the bond's face value or maturity value. This is the amount that the bondholder will collect once the bond matures. The coupon is calculated by multiplying the bond's par value times the coupon rate (interest rate). In this case, the coupon rate is 9% / 2 = 4.5% because it pays a semiannual coupon.
coupon = bond's par value x coupon rate
$45 = bond's par value x 4.5%
bond's par value = $45 / 4.5% = $1,000
Gather secondary data by reading what others have experienced and observed. You should begin nearly every research project by researching secondary sources to gather information that has already been written about your topic. What kind of data can books provide?
A. In-depth historical data
B. Up-to-date information
C. Electronic indexes
Answer:
A. In-depth historical data
Explanation:
When starting a new research project you should always gather in-depth historical data. This form of data will provide you with a wide array of information that other individuals have already gathered and documented regarding the specific topic that you are currently researching. Aside from providing you with valuable information it also provides you with a guide of what sub-topics previous researchers may have missed, which you can then research yourself.
Bruno Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $430,300. The company believes that with this new machine, it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $98,800 for the next 6 years. Management requires a 10% rate of return on all new investments
Required:
a. Calculate the internal rate of return on this new machine. Should the investment be accepted?
b. Calculate cash payback period, internal rate of return, and apply decision rules.
Answer:
10%
Yes
4.36 years
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-430,300
Cash flow each year from year one to six = $98,800
IRR =10%
The project should be accepted because the IRR is equal to the required rate of return
Cash payback calculates how long it takes for the amount invested in a project to be recovered from the cumulative cash flow.
Cash payback = amount invested / cash flow =
$430,300 / $98,800 = 4.36 years
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?
A. Cannot be determined given the information provided.
B. Have no effect on cost of goods sold.
C. Understate cost of goods sold.
D. Overstate cost of goods sold.
The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:_______
A) A debit to an asset.
B) A debit to a liability.
C) A credit to a liability.
D) A credit to an asset.
Sales revenue $350,000
Accounts receivable $280,000
Ending inventory $230,000
Cost of goods sold $180,000
Sales returns $50,000
Sales discount $20,000
Given the information in the above table, what is the company's gross profit?
A) $100,000.
B) $50,000.
C) $170,000.
D) $280,000.
If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
A) Either plan
B) Defined Benefit Plan
C) Neither Plan
D) Defined Contribution Plan
Answer:
Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?
C. Understate cost of goods sold.Cost of goods sold = beginning inventory + purchases during the period - ending inventory. If ending inventory is overstated, then COGS are understated.
The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:_______
B) A debit to a liability.Deferred revenues are liabilities with credit balances, therefore, when they are actually earned, they must decrease with a debit.
Sales revenue $350,000
Accounts receivable $280,000
Ending inventory $230,000
Cost of goods sold $180,000
Sales returns $50,000
Sales discount $20,000
Given the information in the above table, what is the company's gross profit?
A) $100,000.Gross profit = net sales revenue - COGS
net sales revenue = total sales revenue - sales returns - sales discounts
If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
C) Neither PlanAll types of pension plans are currently protected and only a small portion of very high income plans are affected in case of bankruptcy (generally plans that hold over $1 million or those plans with contributions higher than $54,000 per year).