Answer:
Price of stock today = $53.29
Explanation
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
This model would be applied as follows:
PV from year 1 to 3
Year Present Value ( PV)
1 1.25 × 1.275 × 1.1^(-1) = 1.4358
2 1.25 × 1.275^2 × 1.1^(-2) = 1.6492
3 1.25 × 1.275^3 × 1.1^(-3) = 1.894
Total 4.979
Year 4 and beyond
This will be done in two steps
Step 1
D× (1+g)/k-g
1.25 ×1.275^4/(0.11-0.06)
=66.066
Step 2
Present Value in year 0
=66.066 × 1.11^(-3) = 48.3068
Total present value = 4.979 + 48.306= 53.286
Price of stock today = $53.29
The Purple Martin has annual sales of $687,400, total debt of $210,000, total equity of $365,000, and a profit margin of 5.9 percent. What is the return on assets
Answer:
7.1%
Explanation:
Purple martin has an annual sales of $687,400
The total debt is $210,000
Total equity is $365,000
Profit margin is 5.9%
= 5.9/100
= 0.059
The first step is to calculate the net income
Net income= sales×profit margin
= $687,400×0.059
= $40,556.6
The next step is to calculate the total assets
Total assets= Total debt+Total equity
= $210,000+$365,000
= $575,000
Therefore, the return on assets can be calculated as follows
ROA= Net income/Total assets
= 40,556.6/575,000
= 0.0705×100
= 7.1%
Hence the return on assets is 7.1%
1. The roles of money Brian is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Brian decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Brian accumulates money in his savings account for future purchases. Brian buys his lunch with a $10 bill.
Answer:
Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much.
unit of accountBrian accumulates money in his savings account for future purchases.
Store of valueBrian buys his lunch with a $10 bill.
Medium of exchangeExplanation:
Money's four functions are:
Medium of exchange = you can use money to purchase or sells goods and services. Unit of account = money helps us to understand the relative value of goods and services, since the higher the price, the higher the value of a good or service is. Store of value = you can save money for future useStandard of deferred payment = money allows people to take or hand out loans that will be repaid in the futureA recent survey of 280 small firms (with annual revenue less than $12 million) asked whether an increase in the minimum wage would cause the firm to decrease capital spending. Possible responses to the survey question were: "Yes," "No," or "Don’t Know." This data is best classified as
Answer:
nominal scale
Explanation:
nominal scale are scales that are used to assign events into discrete classifications.
Nominal scales have no order and there is no means to measure the distance between the possible responses. they are just classifications.
Larkspur Appliance Co. manufactures low-price, no frills appliances that are in great demand for rental units. Pricing and cost information on Larkspur main products are as follows. Item Standalone Selling Price (Cost) Refrigerator $500 ($260 ) Range 570(270 ) Stackable washer/dryer unit 690(400 ) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,800.The bundle price includes delivery and installation. Larkspur also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Larkspur Appliance Co. On June 1, 2017, Larkspur sold 100 washer/dryer units without installation to Laplante Rentals for $69,000. Laplante is a newer customer and is unsure how this product will work in its older rental units. Larkspur offers a 60-day return privilege and estimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
The journal entries to record the sale on June 1 are:
June 1, 2017, 100 units of washer/dryer to Laplante Rentals
Dr Cash 69,000
Cr Sales revenue 69,000
Dr Cost of goods sold 40,000
Cr Inventory 40,000
If the next question asks to record the return privilege and estimates, it should be recorded as both an asset (estimated returns inventory) and a liability (customer refunds payable).
An associate professor of physics gets a $200 a month raise. She figures that with her new monthly salary she can buy more goods and services than she could buy last year.
a. Her real and nominal salary have risen.
b. Her real and nominal salary have fallen.
c. Her real salary has risen and her nominal salary has fallen.
d. Her real salary has fallen and her nominal salary has risen.
Answer:
a. Her real and nominal salary have risen
Explanation:
Her nominal salary is the amount she earns. the $200 increase is an increase in her nominal salary.
Her real salary is calculated in the amount of goods and service she can purchase given her income. Since with the $200, she can buy more goods and services, her real salary has also increased.
Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 127 units. The following is the BOM in indented form:
ITEM DESCRIPTION USAGE
X Bracket assembly 1
A Wall board 5
B Hanger subassembly 2
D Hanger casting 3
E Ceramic knob 2
C Rivet head screw 3
F Metal tong 4
G Plastic cap 1
Below is a table indicating current inventory levels:
Item X A B C D E F G
Inventory 27 19 74 23 201 262 975 100
b. What are the net requirements for each item? (Leave no cells blank - be certain to enter "0" wherever required.)
Item Net Requirements
X
A
B
C
D
E
F
G
Answer and Explanation:
The computation of net requirements for each item is shown below:-
Net requirement = Gross requirement - Inventory
To compute the Gross requirement we will use the following formulas:
A = 5 × Net requirement of X
= 5 × 127
= 635
B = 2 × Net requirement of X
= 2 × 127
= 254
C = 3 × Net requirement of X
= 3 × 127
= 381
D = 3 × Net requirement of B
= 3 × 180
= 540
E = 2 × Net requirement of B
= 2 × 180
= 360
F = 4 × Net requirement of C
= 4 × 358
= 1,432
G = 1 × Net requirement of C
= 1 × 358
= 358
Item Gross Requirement Inventory Net Requirement
X 127 1 127
A 635 19 616
B 254 74 180
C 381 23 358
D 540 201 339
E 360 262 98
F 1,432 975 457
G 358 100 258
Therefore we have applied the net requirement formula.
Risk and Return. Suppose that the risk premium on stocks and other securities did, in fact, rise with total risk (i.e., the variability of returns) rather than just market risk. Explain how investors could exploit the situation to create portfolios with high expected rates of return but low levels of risk. (LO12-2)
Answer:
The overview of the given scenario is described in the explanation segment below.
Explanation:
Diversification could never eradicate the systematic risk. It's indeed primarily even though all securities shift somewhat in unison (a significant part of their volatility is purposeful) also that diversified stock strategies remain volatile. Additionally, if I am a thing that separates by purchasing a proportion throughout the S & P indicator, I would also have indeed very variable returns because the global economy as a whole has been fluctuating widely.The unsystematic risk seems to be the volatility in share markets arising through factors unique to something like an individual's abilities. The risk involved with this kind of volatility is essentially the form whereby diversification could increasing.The entire premise of portfolio selection would be that, to both the degree that shares don't shift in unison all of the occasions, variations throughout the performance from every other given sector appear to have been wiped clean or softened out by additional differences in contributions from several other investments.In the "Input Analysis" section of the spreadsheet model, calculate the correlations between the sales of each type of product and event attendance. Use appropriate ranges from the "Past Event" worksheet for your calculations.
Answer:
The correct formula will be :
=average(past event tab then col in that tab) use this for att, programs, food, and merch
=AVERAGE('Past Events'!C4:C103)
Explanation:
To calculate the correlation between the sales of each kind of product and event attendance, from the Input analysis part of the spreadsheet model.
According to the information provided, in the targeted cell, we will use formula
=Average(data cells)
and for other part of the question is to calculate sales. For this part we can simply use the sum formula, first, we will sum the sales for a single item in past events column than at the end of the past column.
Thus, the correct formula will be :
=average(past event tab then col in that tab) use this for att, programs, food, and merch
=AVERAGE('Past Events'!C4:C103)
Concord Company provides for bad debt expense at the rate of 2% of accounts receivable. The following data are available for 2018: Allowance for doubtful accounts, 1/1/18 (Cr.) $ 12700 Accounts written off as uncollectible during 2018 9200 Ending accounts receivable 1199000 The Allowance for Doubtful Accounts balance at December 31, 2018, should be $3500.00. $20480.00. $27480.00. $23980.00.
Answer:
$27,480
Explanation:
Calculation for Allowance for Doubtful Accounts balance at December 31, 2018
Using this formula
Allowance for Doubtful Accounts=( Ending accounts receivable ×Bad debt expense rate ) + (Allowance for doubtful accounts -Accounts written off as uncollectible)
Let plug in the formula
Allowance for Doubtful Accounts=(1,199,000 ×2%) +(12,700-9,200)
Allowance for Doubtful Accounts =23,980+3,500
Allowance for Doubtful Accounts= $27,480
Therefore the Allowance for Doubtful Accounts balance at December 31, 2018 should be $27,480
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.22 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $36.21 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $83.33 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Ericson Wedding Haupt Wedding Number of reception guests 72 191 Number of tiers on the cake 6 4 Cost of purchased decorations for cake $ 21.45 $ 77.65 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Ericson wedding cake to just break even
Answer:
$409.88
Explanation:
The computation of the amount that the company have to charge for break even is shown below:
Particulars Ericson Wedding Rate Amount
Guest 72 $1.22 $87.84
Tiers 6 $36.21 $217.26
Orders 1 $83.33 $83.33
Decoration 1 $21.45 $21.45
Total $409.88
We simply applied the number of units with the rate so that the final amount could come
A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include:
Answer:
A debit to Land for $12,000
Explanation:
The entry to record in this transaction include a debit to Land for $12,000
Particulars Debit Credit
Land $84,000
Common stock $12,000
(6,000 * $2)
Paid in capital in excess $72,000
of par, common stock
George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost $235,000 Actual manufacturing overhead cost $244,200 Estimated machine hours 20,300 Actual machine hours 22,700 The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to
Answer:
$11.58 per machine hour
Explanation:
Given that: Estimated Manufacturing overhead cost =$235,000, Actual manufacturing overhead cost = $244,200 Estimated machine hours = 20,300, Actual machine hours= 22,700
The predetermined manufacturing overhead rate per machine hour = Estimated manufacturing overhead cost / Estimated machine hours
= $235,000 / 20,300
= $11.5763
= $11.58 per machine hour
The purpose of a buffer statement in a negative message is to ________. a. ensure that the company avoids legal liability. b. reduce the reader's shock or pain related to the bad news. c. inform the reader of the reasons for the bad news. d. explain company policy regarding the bad-news message.
Answer:
The correct answer is: b. reduce the reader's shock or pain related to the bad news.
Explanation:
Communication is a fundamental tool that promotes synergy for a company to achieve its objectives and goals. Through this process, it is possible to pass on essential information, integrate employees, strengthen the organization's reputation, promote a good relationship with the internal and external environment, etc.
However, many times companies also need to transmit some bad news, so it is important that there are resources and tools so that communication is carried out in a clear and effective manner without causing any type of situation that alarms the recipients of the message, therefore the buffer statement is used at the beginning of a letter or commercial communication to reduce the impact of bad news, helping to prepare the reader for what will be communicated, explaining the context of the message in a more neutral and not so alarming way.
Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and exponential service times.
a. What percentage of time is Judy idle?
b. How much time, on average, does a student spend waiting in line?
c. How long is the (waiting) line on average?
d. What is the probability that an arriving student (just before entering the Administrative Services Office) will find at least one other student waiting in line?
Answer:
a) %idle time = 0.33
b)40.2minutes
c)40.02customers
d)0.5219
Step-by-step explanation:
It was said in the question Students arrive at the Administrative Services Office at an average of one every 15 minutes which means that
λ = 60/15= 4customers/hr
It was stated that their requests take on average 10 minutes to be processed which means that
μ = average of 10minutes = 60/10 = 6customers/hr
Then let us use these information to solve the given questions
a) percentage when judy was idle = (1- λ/μ)= 1- 0.67= 0.33
%service time = 0.67
%idle time = 0.33
b)To calculate How much time, on average that a student spend waiting in line then we make use of the formula below
= λ/ μ( μ- λ)
= 0.67hrs = 0.67 x60 = 40.2minutes
c) To calculate How long the waiting line on average;
= average waiting time x arrival rate = 0.67hrs x 6customers/hr
= 40.02customers
d) the probability that an arriving student will find at least one other student waiting in line is calculated below;
P( idle time i.e no customer to attend to) = 0.33
P1( Probability of having a customer to attend to) = 0.33 x 0.67= 0.2211
P( Probability of having 2 customer to attend to) = 0.33 x 0.67x0.67 = 0.1481
Therefore, the probability of finding at least one customer = 1 -[ po + p1]
= 1 - 0.33- 0.1481 = 0.5219
S10-5 (book/static) On February 28, 2017, Rural Tech Support purchased a copy machine for $ 53 comma 400. Rural Tech Support expects the machine to last for six years and to have a residual value of $ 3 comma 000. Compute depreciation expense on the machine for the year ended December 31, 2017, using the straight-line method.
Answer:
$7,000
Explanation:
depreciation expense using straight line method = (purchase cost - salvage value) / useful life = ($53,400 - $3,000) / 6 years ) = $8,400 per year
since the machine was used for 10 months, the depreciation expense for 2017 = $8,400 x 10/12 = $7,000
the adjusting journal entry should be:
December 31, 2017, depreciation expense
Dr Depreciation expense 7,000
Cr Accumulated depreciation - copy machine 7,000
You plan to borrow $35,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2
Answer:
$2,250
Explanation:
Since terms require you to amortize the loan with 7 equal end-of-year payments, it implies that interest will be paid on the amount outstanding balance for a whole year.
The would be paid in Year 2 can therefore be calculated as follows:
Equal amount of the loan principal = Loan amount / Number of equal end-of-year payments = $35,000 / 7 = $5,000
Loan balance outstanding throughout Year 2 = Loan amount - Year 1 end-of-year payment = $35,000 - $5,000 = $30,000
Year 2 interest payable = Loan balance outstanding throughout Year 2 * Annual interest rate = $30,000 = 7.5% = $2,250.
Therefore, you would be paying $2,250 interest in Year 2.
Nathan's Athletic Apparel has 1,200 shares of 7%, $100 par value preferred stock the company issued at the beginning of 2020. All remaining shares are common stock. The company was not able to pay dividends in 2020, but plans to pay dividends of $18,000 in 2021. Required: 1. & 2. How much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021, assuming the preferred stock is cumulative? What if the preferred stock were noncumulative?
Answer:
Nathan's Athletic Apparel
1. Preferred Stock Dividend = $120,000 x 7% = $8,400 for one year
For two years = $16,800 ($8,400 x 2)
Common Stock Dividend = $1,200 ($18,000 - $16,800)
2.If the preferred stock were noncumulative, the dividends would be:
Preferred Stock Dividend = $120,000 x 7% = $8,400
Common Stock Dividend = $9,600 ($18,000 - $8,400)
Explanation:
Preferred Stockholders' Equity = $120,000 (1,200 x $100)
Cumulative preferred stock is the type of preferred stock that accumulates unpaid dividends. If in any year the preferred dividend was not paid, the amount that was supposed to be paid would be carried forward to the next year when dividend is paid unlike an ordinary preferred stock that does not attract the arrears of dividend that was not paid in any given year.
Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 4,000 shares of $5 par value common stock for $35,000 cash. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has a $1 per share stated value. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has no stated value. A corporation issued 1,000 shares of $50 par value preferred stock for $60,000 cash.
Answer:
1. Dr Cash $35,000
Cr Common Stock $20,000
Cr Paid-in Capital in excess of par value Common Stock $15,000
2.Dr Organization expenses $40,000
Cr Common stock $2,000
Cr Paid-in cap in excess of stated value Common Stock $38,000
3.Dr Organization expenses $40,000
Cr Common stock, no-par value $40,000
4. Dr Cash 60,000
Cr Preferred stock 50,000
Cr Paid-in cap in excess of par value, preferred stock 10,000
Explanation:
1. Based on the information given we told that they issued 4,000 shares of $5 par value of common stock for the amount of $35,000, which means that the transaction will be recorded as:
Dr Cash $35,000
Cr Common Stock $20,000
(4,000 Shares *$ 5 Par Value)
Cr Paid-in Capital in excess of par value Common Stock $15,000
($35,000-$20,000)
2.Since they issued 2,000 shares of no-par common stock estimated to be worth the amount of $40,000. This means that the transaction will be recorded as:
Dr Organization expenses $40,000
Cr Common stock $2,000
(2,000 Shares*$1 stated value)
Cr Paid-in cap in excess of stated value Common Stock $38,000
(40,000-2,000)
3. Based on the information given we were told that they issued 2,000 shares of no-par common estimated to be worth the amount of $40,000 in which the stock has no stated value, this means that the transaction will be recorded as.
Dr Organization expenses $40,000
Cr Common stock, no-par value $40,000
4. Based on the information given we were told that they issued 1,000 shares of $50 par value preferred stock for the amount of $60,000 which means that the transaction will be recorded as:
Dr Cash 60,000
Cr Preferred stock 50,000
(1,000 Shares *$50 par value)
Cr Paid-in cap in excess of par value, preferred stock 10,000
(60,000-50,000)
A U.S.-based company, Global Products Inc., has wholly owned subsidiaries across the world. Global Products Inc. sells products linked to major holidays in each country.
The president and board members of Global Products Inc. believe that the managers of their wholly owned country-level subsidiaries are best motivated and rewarded with both annual salaries and annual bonuses. The bonuses are calculated as a predetermined percentage of pretax annual income.
Señora Larza, the president of Global Products of Mexico, has worked hard this year to make her Mexican subsidiary profitable. She is looking forward to receiving her annual bonus, which is calculated as a predetermined percentage (15 percent) of this year's pretax annual income earned by Global Products of Mexico. A condensed income statement for Global Products of Mexico for the most recent year is as follows (amounts in thousands of pesos).
Sales MXN 25,000
Expenses 23,000
Pretax Income MXN 2,000
The U.S. headquarters financial group translates each of its wholly owned subsidiary's results into U.S. dollars for evaluation. After translating the Mexican pesos income statement into U.S. dollars, the condensed income statement for Global Products of Mexico is as follows (amounts in thousands of dollars).
Sales US $7,000
Expenses 8,100
Pretax Income US $(1,100)
Required:
A1. Calculate the bonus amount based on (1) the Mexican peso-based Pretax Income and (2) the U.S. dollar-based Pretax Income.
A2. Translate the peso-based bonus to U.S. dollars using a current exchange rate.
B. Calculate the average exchange rate used to translate the Mexican pesos income statement into the U.S. dollar statement for the categories: (1) Sales and (2) Expenses.
A1. Bonus on mexican peso-based Pretax Income
Bonus U.S. dollar-based Pretax Income
A2. U.S. dollars
B. Average exchange rate for sales pesos
Average exchange rate for expenses pesos
Answer:
Global Products Inc.
Global Products of Mexico
Señora Larza
A1. Bonus on mexican peso-based Pretax Income
= MXN 2,000 x 15% = MXN 300
Bonus U.S. dollar-based Pretax Income
= -$1,100 x 15% = -$165, there is no U.S. dollar-based bonus
A2. U.S. dollars
Current Exchange rate = US$1 = MXN 20.0369 (July 18, 2020)
MXN 2,000 = MXN 2,000/MXN 20.0369 = $98.19
B. Average exchange rate for sales pesos
Sales MXN 25,000 = US $7,000,
The exchange rate = US $1 = MXN 3.5714 (MXN 25,000/ US $7,000)
Average exchange rate for expenses pesos
Expenses MXN 23,000 = US $ 8,100
The exchange rate = US $1 = MXN 2.8395 (MXN 23,000/US $ 8,100)
Explanation:
Señora Larza, the president of Global Products of Mexico seems to have a bonus in Mexican peso, but when the bonus pre-tax income is translated into US dollars, the bonus turns negative just like the pre-tax income was negative. This implies that since the U.S. headquarters translates each subsidiary's results into U.S. dollars for evaluation, Señora Larza did not qualify for bonus payment for the current year.
The disparity is caused by the different exchange rates for translating the sales revenue and the expenses. Exchange rates are the rates at which currencies exchange their values for international account settlements.
MC Qu. 137 Clayborn Company deposits... Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $24,525. Clayborn's May bank statement shows $21,800 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 7,450 Outstanding checks $ 6,100 Bank service fees, not yet recorded by company $ 100 A NSF check from a customer, not yet recorded by the company $ 1,275 The adjusted cash balance should be:
Answer:
The adjusted cash balance is $23,150.
Explanation:
The correct cash balance can only be verified through preparation of a bank reconciliation statement.
The first step is to update the Cash Book Bank balance as follows ;
Debits :
Balance as at May 31 $24,525
Totals $24,525
Credits:
Bank service fees $100
Dishonored Check $1,275
Balance as per updated cash book $23,150
Totals $24,525
The next step is to prepare a Bank Reconciliation Statement.
Bank Reconciliation Statement as at May 31.
Balance at bank as per the cash book (updated) $23,150
Add Unpresented cheques $ 6,100
Less Lodgements not yet credited ($ 7,450)
Balance as per bank statement $21,800
Conclusion :
The adjusted cash balance is $23,150.
1. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is market control by a few large firms. Which of the following are other characteristics of this market structure? Check all that apply. Either similar or identical products Difficult entry Neither mutual interdependence nor mutual dependence No entry Mutual interdependence
Answer:
----Either similar or identical products --------Difficult entry
----Mutual interdependence
Explanation: An Oligopolistic market is a market characterized by few sellers of large firms who sell either similar or differentiated products. Here, Each firm is mutually interdependent as any action from any firms influences the actions of the rest of the competing firms , therefore decisions are made using strategic planning and consideration as competing firms are ready to counter react to any change in any new market action.
Market entry is difficult Because of the already established customer base of the successful operating firms dominating the market.Also venturing into the market requires high capital, technology or additional government licences. Examples of Oligopolistic firms are oil and gas firms, airlines, mass media etc
Market entry is difficult Because of the already established customer base of the successful operating firms dominating the market.
Also venturing into the market requires high capital, technology, or additional government licenses.
The correct options are:
Either similar or identical productsDifficult entry Mutual interdependence
An Oligopolistic market is a market characterized by few sellers of large firms who sell either similar or differentiated products. Each firm is mutually interdependent as any action from any firm influences the actions of the rest of the competing firms.
Therefore decisions are made using strategic planning and consideration as competing firms are ready to counter-react to any change in any new market action.
To know more about the Characteristics of oligopoly, refer to the link below:
https://brainly.com/question/13023410
A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,050,000 and can be sold for $670,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 34 percent. What is the aftertax salvage value of the equipment?
Answer:
$718,606.4
Explanation:
The first step is to calculate the accumulated depreciation
=$3,050,000×(0.2+0.32+0.192+0.1152)
= $3,050,000×0.8272
= $2,522,960
The accumulated depreciation is then subtracted from the book value in purchase to get the book value on sale
= $3,050,000-$2,522,960
= $527,040
The next step is to subtract the book value on sale from the salvage value
= $527,040-$670,000
= -$142,960
Loss of - $142,960
The tax gain on disposal can be calculated as follows
= -$142,960×34/100
= -$142,960×0.34
= -$48,606.4
Therefore, the after-tax salvage value can be calculated as follows
= salvage value-tax disposal
= $670,000-(-48,606.4)
= $670,000+$48,606.4
= $718,606.4
Hence the aftertax salvage value of the equipment is $718,606.4
One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need?a) normal depletionb) sensory gratificationc) social approvald) value enhacement
Answer:
) normal depletion
Explanation:
Marketing communications are the different tools employed to increases the awareness of a brand.
A brand needs to be pleasing to the eyes, socially approved and useful to customers.
Depletion is one of the negatively oriented relevant brand need.
I hope my answer helps you
Answer:
normal depletion
Explanation:
Marketing communications are the different tools employed to increases the awareness of a brand.
A brand needs to be pleasing to the eyes, socially approved and useful to customers.
Depletion is one of the negatively oriented relevant brand need.
I hope my answer helps you
Explanation:
Huprey Co. is the defendant in the following legal claims. For each of following claims, does Humphrey (a) record a liability, (b) disclose in notes, or (c) have no disclosure. 1. Humphrey can reasonably estimate that a pending lawsuit will result in damages of $1,280,000it is probable that Huprey will lose the case. Have no disclosure. Disclose in notes. Record a liability. 2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable. Record a liability. Disclose in notes. Have no disclosure. 3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case. Disclose in notes. Record a liability. Have no disclosure.
Answer:
1. Record a liability.
2. Disclose in notes.
3. Disclose in notes.
Explanation:
The issue here relates to a Contingent Liability which is a provision that is recorded in the books as a liability if there is a likelihood that the firm will incur it in future. This is usually done for law suits.
The general rule is: Record a liability if the loss is probable and estimable.
If a loss is not probable, disclose it in the notes.
If a loss is not estimable, disclose it in the notes.
1. Loss is both estimable and it is probable that Humphrey will lose the case. It should be recorded as a liability.
2. It is probable that Humphrey will lose the case however, loss is not estimable. Disclose in the notes.
3. It is not probable that Humphrey will lose the case. Disclose in the notes.
The Company uses a periodic inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.
Answer:
Ending inventory:
(a) specific identification = $2,720(b) weighted average = $2,810.05(c) FIFO = $2,687.50(d) LIFO = $3,010Cost of goods sold:
(a) specific identification = $6,495(b) weighted average = $6,404.95(c) FIFO = $6,527.50(d) LIFO = $6,205Explanation:
Date Activity Units Cost Total
Jan. 1 Beg. inventory 215 $14 $3,010
Jan. 10 Sales 165
Jan. 20 Purchase 160 $13 $2,080
Jan. 25 Sales 190
Jan. 30 Purchase 330 $12.50 $4,125
total Purchases 705 $13.07 $9,215
Ending inventory:
(a) specific identification = (190 x $12.50) + (5 x $13) + (20 x $14) = $2,720
(b) weighted average = 215 x $13.07 = $2,810.05
(c) FIFO = 215 x $12.50 = $2,687.50
(d) LIFO = 215 x $14 = $3,010
Cost of goods sold:
(a) specific identification = $9,215 - $2,720 = $6,495
(b) weighted average = $9,215 - $2,810.05 = $6,404.95
(c) FIFO = $9,215 - $2,687.50 = $6,527.50
(d) LIFO = $9,215 - $3,010 = $6,205
Give three examples of business processes or operations that would benefit significantly from having detailed real-time or near real-time data and identify the benefits.
Answer:
Business Processes/Operations that would benefit from having detailed real-time or near real-time data are:
Air Tower/Radar Monitoring OperationsHualage/Logistics OperationsForex/Stock Trading TransactionsExplanation:
Lower Risk: Real-time data in operations lowers risk, minimizes room for errors are decisions for course correction are made instantly as the data occur.Improved Efficiency: to make decisions on the spot based on real data mean to cut down on time spent before decisions are made. Hence, increased efficiency.Lower costs: Real-time collection and use of data imply automated systems. An Automated system allows for instant decisions without requiring the accumulation of paper trails. In most cases, real-time data also provide uncommon insights into the deep operations of the company.
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You purchased an airplane for $500,000 and will depreciate it using a 7-year an MACRS. Salvage value in year 4 is expected to be $250,000. The airplane is expected to increase revenues by $200,000 per year, however, O&M costs are expected to be $30,000 per year. Your company is in a 40% tax bracket and your MARR is 15%. Show the end of year cash flows for this project for years 0 through 4. What is the Net Present Worth of this investment?
Year 0_____
Year 1____
Year 2______
Year 3_____
Year 4______
NPW_____
Answer:
Year 0 = -$500,000
Year 1 = $130,580
Year 2 = $150,980
Year 3 = $136,980
Year 4 = $433,260
NPV = $65,495
Explanation:
depreciation expense per year under 7 year MACRS table:
year 1 = $500,000 x 14.29% = $71,450
year 2 = $500,000 x 24.49% = $122,450
year 3 = $500,000 x 17.49% = $87,450
year 4 = $500,000 x 12.49% = $62,450
cash flow year 1 = [($200,000 - $30,000 - $71,450) x (1 - 40%)] + $71,450 = $130,580
cash flow year 2 = [($200,000 - $30,000 - $122,450) x (1 - 40%)] + $122,450 = $150,980
cash flow year 3 = [($200,000 - $30,000 - $87,450) x (1 - 40%)] + $87,450 = $136,980
cash flow year 4 = [($200,000 - $30,000 - $62,450 + $93,800 gain on sale) x (1 - 40%)] + $62,450 + $250,000 = $433,260
MARR = 15%
using a financial calculator, NPV = $65,495
A stock has an expected return of 15.0 percent, its beta is 0.90, and the risk-free rate is 5.3 percent. What must the expected return on the market be
Answer:
16.07%
Explanation:
The computation of the expected return on the market is shown below
As we know that
Expected Return on stock = Risk free return + beta ( Expected Market Rate of Return - Risk free return )
15 % = 5.3% + 0.90 × (Expected Market Rate of Return - 5.3%)
15 % - 5.3% ÷ 0.90 = Expected Market Rate of Return - 5.3%
10.77% = Expected Market Rate of Return - 5.3 %
So, expected market rate of return is
= 10.77 + 5.3%
= 16.07%
We simply applied the above formula
The acid-test (quick) ratio Group of answer choices is used to quickly determine a company's solvency and long-term debt paying ability. relates cash, short-term investments, and net receivables to current liabilities. is calculated by taking one item from the income statement and one item from the balance sheet. is the same as the current ratio except it is rounded to the nearest whole percent.
Answer:
relates cash, short-term investments, and net receivables to current liabilities
Explanation:
The quick ratio is am example of a liquidity ratio. Liquidity ratios measure a company's ability to meet its short term obligations
Blue Sky Drone Company has a total asset turnover ratio of 3.50x, net annual sales of $25 million, and operating expenses of $11 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $2.50 million on which it pays a 7% interest rate. To analyze a company’s financial leverage situation, you need to measure the firm’s debt management ratios. Based on the preceding information, what are the values for Blue Sky Drone’s debt management ratios?
Answer:
The values for Blue Sky Drone’s debt management ratio is 0.35
Explanation:
In order to calculate the values for Blue Sky Drone’s debt management ratios we would have to make the following calculation:
debt management ratio=Total Debt / Total Assets
According to the given we have that it reported total debt of $2.50 million.
To calculate the total assets we would have to use the following formula:
Total Asset Turnover Ratio = Net Sales / Total Assets
3.50=$25,000,000/Total Assets
Total Assets=$25,000,000/3.50
Total Assets=$7,142,857
Therefore, debt management ratio=$2,500,000/$7,142,857
debt management ratio=0.35
The values for Blue Sky Drone’s debt management ratio is 0.35