Answer:
11.13%
Explanation:
Calculation to determine the required rate of return on the stock
Using this formula
Required rate of return=Last EPS*Payout*(1+RoE*(1-payout rate))/Current Price+RoE*(1-payout rate)
Let plug in the formula
Required rate of return=29/2.6*30%*(1+11%*(1-30%))/105+11%*(1-30%)
Required rate of return=11.13%
Therefore the required rate of return on the stock will be 11.13%
Break-Even Sales Currently, the unit selling price of a product is $1,500, the unit variable cost is $1,200, and the total fixed costs are $4,500,000. A proposal is being evaluated to increase the unit selling price to $1,600. a. Compute the current break-even sales (units). fill in the blank 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. fill in the blank 2 units
Answer and Explanation:
a. The computation of the current break-even sales (units) is shown below:
= Fixed cost ÷ (Selling price - variable cost)
= $4,500,000 ÷ ($1,500 - $1,200)
= $4,500,000 ÷ $300 units
= 15,000 units
b. The anticipated break-even sales (units) is
= Fixed cost ÷ (Selling price - variable cost)
= $4,500,000 ÷ ($1,600 - $1,200)
= $4,500,000 ÷ $400 units
= 11,250 units
A holiday sales flyer advertised a video game system for a significantly reduced price and
video game with purchase. Later that day, the sales associate told you that the store is out of
both items. Instead, you were offered a different system and games at full retail prices. What is this type of fraud called?
Answer: Bait and switch
Explanation:
The type of fraud here is referred to as the bait and switch fraud. This fraud occurs when customers are told about the low prices and quality of a product but aren't available when customers want to purchase such products and they're then given products that are costlier or products that are of lesser quality.
This can be seen in the question when the sales associate advertised the video game system for a reduced price which wasn't available when customers wanted to buy but were offered a game that was costlier.
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. Required: For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost.The cost of a hard drive installed in a computer. a. Direct labor cost b. Direct materials cost c. Manufacturing overhead cost d. Selling cost e. Administrative cost
Answer: b. Direct materials cost
Explanation:
Direct materials are integral to the production of a good because they form part of the good being produced.
This is a computer company which assembles computers. Computers need a hard drive in order to function. The hard drive being installed in a computer will therefore count as a direct material because it will form part of the computer assembled.
Trell Corporation transferred $56,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 80% of the factored amount to Trell and retains the remaining 20%. When the bank collects the receivables, it will remit to Trell the retained amount less a fee equal to 3% of the total amount factored. Trell estimates a fair value of its 20% interest in the receivables of $11,000 (not including the 3% fee). Trell will show an amount receivable from factor of:
Answer:
$9,320
Explanation:
Calculation to determine what Trell will show as the amount receivable from factor of:
Using this formula
Amount receivable =Interest in the receivables-( Local bank transferred accounts receivable*Fees percentage)
Let plug in the formula
Amount receivable=$11,000 - ($56,000 × 3%)
Amount receivable=$11,000-$1,680
Amount receivable= $9,320
Therefore Trell will show an amount receivable from factor of:$9,320
Learning involves changes in an individual's behavior resulting from previous experiences and information.
t or f
It is a true statement that Learning involves changes in an individual's behavior resulting from previous experiences and information.
What is a Learning?It refers to when we acquire knowledge or skills through personal study, experience, lesson, lecture etc
Hence, this process creates changes in an individual's behavior resulting from previous experiences and information as they tends to manifest in the learners action.
Therefore, it is a true statement
Read more about Learning
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On January 1, 2018, Advanced Airline purchased a used airplane at a cost of $60,500,000. Advanced Airline expects the plane to remain useful for eight years (5,000,000 miles) and to have a residual value of $5,500,000. Advanced Airline expects the plane to be flown 1,100,000 miles the first year and 1,200,000 miles the second year.
Requirements
1.Compute first-year (2019) depreciation expense on the plane using the following methods:
a.Straight-line
b.Units-of-production
2.Show the airplane’s book value at the end of the first year for the two methods.
Answer:
Results are below.
Explanation:
First, we need to calculate the annual depreciation using the straight-line method:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (60,500,000 - 5,500,000) / 8
Annual depreciation= $6,875,000
Now, using the units of production method:
Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles operated
Annual depreciation= [(55,000,000 / 5,000,000)]*1,100,000
Annual depreciation= $12,100,000
Finally, the book value:
Book value= purchase price - accumulated depreciation
Straight-line:
Book value= 60,500,000 - 6,875,000= $53,625,000
Units-of-production:
Book value= 60,500,000 - 12,100,000= $48,400,000
The aggregate demand curve is downward sloping because production costs decline as real GDP increases. is upward sloping because a higher price level is necessary to make production profitable as production costs rise. shows the amount of expenditures required to induce the production of each possible level of real GDP. shows the amount of real GDP that will be demanded at each possible price level. g
Answer: shows the amount of real GDP that will be demanded at each possible price level.
Explanation:
The Aggregate Demand curve shows how much of real GDP is demanded at each possible price level which means that is shows the effect of the price level on real GDP.
If the price level rises, real GDP will decrease and if the price level falls, real GDP rises. This is why the aggregate demand curve is downward sloping, to reflect this inverse relationship between real GDP and price level.
The law of supply indicates that:A)the product supply curve is downsloping.B)consumers will purchase less of a good at high prices than they will at low prices.C)producers will offer more of a product at high prices than they will at low prices.D)producers will offer more of a product at low prices than they will at high prices.
Answer:
C) producers will offer more of a product at high prices than they will at low prices.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
The law of supply indicates that producers will offer more of a product at high prices than they will at low prices.
In order to understand both short-run economic fluctuations and how the economy move from short to long run, we need the aggregate supply and aggregate demand model.
When the price level rises, the wealth effect and the interest-rate effect provide incentives for consumers to spend less. The price level of goods and services in an economy influences the exchange rate, imports and exports.
An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.
During 2017, Grambling Company purchased 10,000 shares of Southern Corp. common stock for $215,000 as a passive interest investment. The fair value of these shares was $289,000 at December 31, 2017. During 2018, Grambling sold all of the Southern stock for $226,000. Grambling Company should report a realized gain on the sale of stock in 2018 of:______.A. $25,000.
B. $26,000.
C. $11,000.
D. $37,000.
Answer:
C. $11,000
Explanation:
Calculation to determine what Grambling Company should report as a realized gain on the sale of stock in 2018
Using this formula
2018 Realized gain on the sale of stock =Selling price-Cost of securities
Let plug in the formula
2018 Realized gain on the sale of stock=
$226,000 -$215,000
2018 Realized gain on the sale of stock=$11,000
Therefore Grambling Company should report a realized gain on the sale of stock in 2018 of $11,000
At which stage should Joan discuss the look and feel of her website with her website designer?
At the _____?______ stage, Joan should discuss the look and feel of her website with her website designer.
Answer:
Joan and Website Design
At the ____Visual ____Elements_____ stage, Joan should discuss the look and feel of her website with her website designer.
Explanation:
The visual elements stage details the visual style together with the visual brand that Joan has specified for her desired website. At this stage, the site architecture with some content is already in place. The website designer must have utilized such tools like style tiles, mood boards, and element collages to create the visual appeal that resonates with Joan's specifications and requirements.
Employer is desperate to hire sales people. Employer conducts initial telephone interviews and offers employment immediately over the telephone. In making the offer, the employer will always inflate the guaranteed sales commissions that the employee can expect by 200-300%. A potential employee takes the job, relocates and soon realizes that she was misled in terms of compensation. Which of the following is most true? A. A claim by the employee will probably be based on promissory estoppel B. A claim by the employee will probably be based on breach of contract C. Employers are permitted to exaggerate figures to entice people to apply D. Under the doctrine of ‘caveat canem’ an employee bears the risk of being misled in the employment screening
Answer:
A. A claim by the employee will probably be based on promissory estoppel
Explanation:
Promissory estoppel doctrine refers to trying to enforce a promise. In other words, a person that makes a promise is responsible for performing it as long as:
the promissor made a promise and the promisee acted because of it the promisee relied on the promisethe promisee suffers a loss due to the unfulfilled promisewhat effect does a rise in fuel prices have on product prices
Answer:
Rise in product prices
Explanation:
It becomes more expensive to produce and to transport the goods, so the product price will increase to make up for it.
General Mattress Company makes Memory Foam mattresses, a mass-market high-volume product, and Magnetic Levitation mattresses, a premium low-volume product. The company uses a traditional cost allocation with a single cost pool. It is planning to implement activity-based costing (ABC). After implementing ABC, the company will likely find that the traditional cost allocation: Group of answer choices
Answer:
Answer is explained in the explanation section below.
Explanation:
First of all, this question is not complete and lacks the group of answer choices. However, I have found that question with complete options on the internet.
So,
The Correct option is: D
Option D = Not enough information
Reasoning:
For overestimated or underestimated or not full information required i.e. cost under traditional method and cost under activity based cost method , both information required for compare methods cost under each method.
Under Activity base costing all indirect cost is applied as per activities use by each product but under traditional method only one key factor use for applied overheads i.e. direct labor hours or machine hours etc.
Shiffon Electronics manufactures music players. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weightedaverage costing. The following information is available for the month of March 2020 for the Assembly department. Work in process, beginning inventory units Conversion costs (% complete) Units started during March units Work in process, ending inventory: units Conversion costs (% complete) The cost details for the month of March are as follows: Work in process, beginning inventory Direct materials Conversion costs Direct materials costs added during March Conversion costs added during March What are the equivalent units for direct materials and conversion costs, respectively, for March?
Answer:
1,100 units; 1,050 units
Explanation:
Calculation to determine the equivalent units for direct materials and conversion costs, respectively, for March
DIRECT MATERIALS CONVERSION COSTS L
Completed and transferred out
1,000 units 1,000 units
(300 units+800 units - 100 units)
Add Work in process, ending
100 units 50 units
(50% Complete*100 units=50 units)
Total equivalent units
1,100 units 1,050 units
Therefore the equivalent units for direct materials and conversion costs, respectively, for March will be 1,100 units; 1,050 units
When the price of a good is $5, the quantity demanded of a good is 30 units, and the quantity supplied of the good is 50 units. For every $1 decrease in the price of this good, quantity demanded rises by 5 units and quantity supplied falls by 5 units. The equilibrium price of this good is ___________and the equilibrium quantity of this good is _________ units.
Answer:
the equilibrium price is $3 and equilibrium quantity is 40
Explanation:
The computation of the equilibrium price and quantity is shown below:
Price Quantity demanded Quantity supplied
$5 30 50
$4 35 45
$3 40 40
$2 45 35
$1 50 30
The equilibrium price is the price where the quantity demanded is equivalent to the quantity supplied
So the equilibrium price is $3 and equilibrium quantity is 40
why employment laws might increase easyjet plc costs
Answer: rapid amount of turn around flights
Explanation: because it’s a low cost air line, it emphasises the rapid turn around flights and a lot of the customers now use mobile boarding passes. This gives them more customers
1. Descriptive research is conducted for all of the following reasons except ________. a. to describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas b. to determine the degree to which marketing variables are associated
Answer: c. To understand which variables are the cause and which variables are the effect of a phenomenon
Explanation:
The options include:
a. To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas
b. to determine the degree to which marketing variables are associated
c. to understand which variables are the cause and which variables are the effect of a phenomenon
d. to determine the perceptions of product.
Descriptive research simply refers to a research type that is used in the description of a population that the researcher is studying.
It simply answers questions such as when, what or how in the research. The subject of the research is being described here.
From the options given, we should note that the descriptive research isn't conducted to understand which variables are the cause and which variables are the effect of a phenomenon.
Jefferson is interested in starting his own business. He plans to borrow money from the local bank in order to finance the business. They will require him to submit a business plan and a(n) _____.a.buy-out planb.income statementc.partnership agreementd.financial plan
Answer:
d.financial plan
Explanation:
A financial plan is a document that gives a picture of the monetary position of a person or entity, their future monetary goals, along with strategies that are aimed meeting such goals.
A business plan is the general goals of a business and ways in which they can be achieved.
In the given scenario Jefferson has given his business plan. But he also needs to give a financial plan that will show the bank how feasible his business is.
Government corrects____externalities by subsidizing the activity, as they do with____corrects____externalities by regulating or taxing activity in order to____pollution provides_____goods like national defense because of the free-rider problem promotes_____because markets with few firms tend to be inefficient provides assistance to those in need in order to improve____attempts to pursue macroeconomic goals, including____, _____, and____.
Answer:
Government corrects positive externalities by subsidizing the activity, as they do with education.Positive externalities are encouraged by subsidizing them so that they increase the more.
corrects negative externalities by regulating or taxing activity in order to discourage pollution.Negative externalities are punished by regulation and taxation to discourage their spread.
provides public goods like national defense because of the free-rider problemPublic goods need to be provided because everyone needs access to them and not just a select few.
promotes competition because markets with few firms tend to be inefficient.Monopolies have been shown to be inefficient as they do not have any competition that inspires innovation.
provides assistance to those in need in order to improve equity. attempts to pursue macroeconomic goals, including low unemployment, strong growth, and stability.It is a government's duty to ensure that the country is experiencing certain macro economic goals such as low unemployment, strong growth and economic stability.
Note: Options were too much to attach to answer as they required multiple pictures so I hope you have access to those options.
The notes to a recent annual report from Weebok Corporation indicated that the company acquired another company, Sport Shoes, Inc. Assume that Weebok acquired Sport Shoes on January 5 of the current year. Weebok acquired the name of the company and all of its assets for $511,000 cash. Weebok did not assume the liabilities. The transaction was closed on January 5 of the current year, at which time the balance sheet of Sport Shoes reflected the following book values and an independent appraiser estimated the following market values for the assets:
Sport Shoes, Inc.
January 5 of the Current Year Book Value Market Value
Accounts receivable (net) $35,000 $35,000
Inventory 210,000 183,000
Fixed assets (net) 23,000 46,500
Other assets 10,000 16,000
Total Assets $278,000
Liabilities $72,000
Stockholders' equity 206,000
Market values for the purchased assets were provided to Weebok by an independent appraiser.
Required:
Compute the amount of goodwill resulting from the purchase.
Answer: $230,500
Explanation:
Goodwill is the amount over the value of a company that is purchased for.
Fair market value is the relevant value used in goodwill calculation because it represents the current value of the assets acquired.
Goodwill = Acquisition price - Fair market values of the assets
= 511,000 - 35,000 - 183,000 - 46,500 - 16,000
= $230,500
What steps will allow you to use the Keep Together property to ensure that none of the records are broken between two pages when they are printed?
Answer: 1. design
2. property sheet
3. yes
Explanation: just did it
In the extended Labor CAPM, the CAPM measure of systematic risk, beta, is replaced by an adjusted beta that also accounts for covariance with the portfolio of aggregate human capital. Despite the complications inherent in any extension of the CAPM with a labor component, labor is an important consideration in explaining the systematic risk of financial securities.
a. True
b. False
Answer:
Despite the complications inherent in any extension of the CAPM with a labor component, labor is an important consideration in explaining the systematic risk of financial securities.
b. False
Explanation:
Instead of being an important component of the systematic risk, labor is a component of the unsystematic risk of a financial security or investment. Therefore, the risk arising from the labor component is a type of unsystematic risk. Unsystematic risks are peculiar to a firm or an industry. They are internal to the business environment of a firm or an industry. Systematic risks are market-driven risks. These latter risks include market, interest rate, and purchasing power (inflation) risks.
In 2020, Ensley drove her automobile 28,500 miles. She incurred the following expenses during the year related to the automobile: Gas and oil, lubrication: $1,800 Insurance: $980 Repairs: $360 Licenses and registration fees: $50 Business parking and tolls: $170 She uses the automobile 80% for business. Based on the data, Ensley's automobile deduction under the actual cost method is $fill in the blank 1.
Answer: $2722
Explanation:
Ensley's automobile deduction under the actual cost method is calculated below:
Gas and oil = $1800
Add: Insurance = $980
Add: Repairs = $360
Add: Licenses and registration fees = $50
Total Expenses = $3190
We then calculate the business usage which will be:
= 80% of $3190
= 0.8 × $3190
= $2552
We then add the cost of business parking and tolls, then the total deduction will be:
= $2552 + $170
= $2722
Members of 67 countries attended a conference on economic development hosted by an international organization based in Gent, Belgium. Attendees of the workshop learned about techniques designed to assist countries in expanding their degree of economic development. Emerging markets act as manufacturing bases for global Miltinationals Enterprises because of ________.
Answer:
High availability.of cheaper labour
Explanation:
An emerging market is defined as one that does not meet the standards of a fully developed market. For example in the area.of labour cost there is no standard set for it.
So companies can get cheap labour from these economies.
Companies like Apple and Nike have used cheap labour from emerging countries to reduce their cost of production.
Manufacturing bases are established in relatively poorer economies where the workers are willing to work for cheap wage
The following materials standards have been established for a particular product at Zoom Industries: Standard quantity per unit of output 6.3 pounds Standard price $15.10 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 7,650 pounds Actual cost of materials purchased $64,780 Actual materials used in production 7,150 pounds Actual output 890 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month
Answer:
the material quantity variance is $23,299.30 unfavorable
Explanation:
The computation of the material quantity variance is shown below:
= (standard quantity - actual quantity) × standard rate
= (6.3 × 890 - 7,150) × $15.10
= (5,607 - 7,150) × $15.10
= $23,299.30 unfavorable
Hence, the material quantity variance is $23,299.30 unfavorable
A liquid asset is one that is easy to cash in.
What is the most liquid asset?
Which is more liquid, a savings account or a loan to a business?
Jenna has been working at Firenzi Entertainment Group for the past 3 years as a location scout. One of Jenna's chief responsibilities is to travel with a team of 5 people to international locations to try to find potential sets for films. Jenna also has a legal background and previous experience working as an entertainment agent. She is the only one on her team with this experience. Therefore, Jenna's secondary role is writing the license deal and various contracts once the location has been found. Eighty percent of her job can be sitting at a desk writing the agreements and negotiating deals over the phone. In the past year Jenna has been suffering from migraines which trigger vertigo and dizziness. She has been told by two doctors not to travel because the plane compression will make the migraines worse. Jenna brings the proper medical paperwork and lets her boss know she won't be able to travel. Her boss says that is a requirement of the job and if she can't travel then she can no longer perform her role and would be terminated. Jenna would like some advice from you whether the American With Disabilities Act will protect her. 1) What are the relevant rules under the ADA that pertain here
Answer:
One Of Jenna's Chief Responsibilities Is To Travel With A Team Of 5 People To International Locations To Try To Find Potential Sets For Films. Jenna Also Has A Legal Background And Previous Experience Working As An ... Jenna has been working at Firenzi Entertainment Group for the past 3 years as a location scout.
Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500.
1) The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share.
2) The common stock has a market value of $20 per share, and the value of preferred stock is unknown.
Prepare the journal entry to record the issuance. (Round answers to 0 decimal places, e.g., 1520. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation Debit Credit
Answer:
A. Dr Cash $13,500
Cr Preferred Stock $5,000
Cr Common Stock $3,000
Cr PICEP-preferred 3,100
Cr PICEP-Common 2,400
B. Dr Cash 13,500
Cr Common Stock 3,000
Cr PICEP-(c/s) 3,000
Cr Preferred stock 5,000
Cr PICEP (p/s) 2,500
Explanation:
Preparation of the journal entry to record the issuance
Dr Cash $13,500
Cr Preferred Stock $5,000
(100 shares * $50)
Cr Common Stock $3,000
(300 shares * $10)
Cr PICEP-preferred 3,100
($8,100-$5,000)
Cr PICEP-Common 2,400
($5,400-$3,000)
Preferred share$90*100) $9000
Common stock($20*300) $6000
Total $15,000
$9000/$15000*$13500
=$8,100
$6000/$15000*$13,500
=$5,400
B.
Cash 13,500
Common Stock 3,000
(300 shares * $10)
PICEP-(c/s) 3,000
(300 shares * $10)
Preferred stock 5,000
(100 shares * $50)
PICEP (p/s) 2,500
[13,500-($20*300)]-$5,000
= $7,500-$5,000
=$2,500
Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 30%. The T-bill rate is 10%. Suppose that you have a client that prefers to invest in your risky portfolio a proportion (y) of his total investment budget so that his overall portfolio will have an expected rate of return of 15%. What is the investment proportion
Answer:
The proportion of the investment is 100%.
Explanation:
This can be calculated using the following formula:
Rportfolio = (y * Rrisky) + ((1 - y) * Ttbill) ..................... (1)
Where;
Rportfolio = Overall portfolio expected rate of return = 15%. or 0.15
Rrisky = risky portfolio expected rate of return = 15%, or 0.15
Ttbill = T-bill rate = 10%, or 0.10
Substituting the values into equation (1) and solve for y, we have:
0.15 = (y * 0.15) + ((1 - y) * 0.10)
0.15 = 0.15y + 0.10(1 - y)
0.15 = 0.15y + 0.10 - 0.10y
0.15 - 0.10 = 0.15y - 0.10y
0.05 = 0.05y
y = 0.05 / 0.05
y = 1.00, or 100%
Therefore, the proportion of the investment is 100%.
has 8.3 million shares of common stock outstanding. The current share price is $53, and the book value per share is $4. also has two bond issues outstanding. The first bond issue has a face value of $70 million and a coupon rate of 7 percent and sells for 108.3 percent of par. The second issue has a face value of $60 million and a coupon rate of 7.5 percent and sells for 108.9 percent of par. The first issue matures in 8 years, the second in 27 years. (a) What are capital structure weights on a book value basis
Answer:
Equity = 20.34%Debt = 79.66%Explanation:
Book value of stock:
= 8,300,000 * 4
= $33,200,000
Total book value = BV of stock + BV of bonds
= 33,200,000 + 70,000,000 + 60,000,000
= $163,200,000.
Weight of Equity:
= 33,200,000 / 163,200,000
= 20.34%
Weight of debt:
= (70,000,000 + 60,000,000) / 163,200,000
= 79.66%