Answer:
a.
July 1
Accounts Receivable 23000 Dr
Sales Revenue 23000 Cr
b.
July 8
Sales Return 2400 Dr
Accounts Receivable 2400 Cr
c.
July 11
Cash 20600 Dr
Accounts Receivable 20600 Cr
Explanation:
a.
The sales made on credit are recorded as a debit to the accounts receivable and a credit to sales revenue by the amount of sales assuming we use the gross method to record sale.
b.
The return of sales is recorded as a debit to the sales return account and a credit to the accounts receivable to reduce the amount due from accounts receivable.
c.
The remaining accounts receivable amount after sales return amounted to 23000 - 2400 = 20600
The sales terms were 2/10 which means a 2% discount was allowed if the accounts receivable pay within 10 days of sale. The payment is received after the discount period. Thus, we will not deduct the discount allowed and accounts receivable will pay fill $20600.
Data concerning Farm Corporation's single product appear below: Selling price per unit $ 320.00 Variable expense per unit $ 76.80 Fixed expense per month $ 170,240 The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
$224,000
Explanation:
Contribution margin = Selling price - Variable cost
= $320 - $76.8
= $243.2
Contribution margin ratio = Contribution margin / Sales
= $243.2 / $320
= $0.76 × 100
= 76%
Break even point = Fixed cost / Contribution margin ratio
= $170,240 / 76%
= $224,000
Which of the following determine(s) the level of real interest rates? I) The supply of savings by households and business firms II) The demand for investment funds III) The government's net supply and/or demand for funds
Answer:
I II & III - All of the above.
Explanation:
Real interest rate is an interest rate that shows actual cost of funds to a borrower having taken into consideration the effects of inflation while also reflecting actual gain to the lender. It shows how purchasing power has value on interest paid on a loan.
With regards to the above, determinants of real interest rates are; the supply of savings by household and business firms, the demand for investment funds and the government's net supply/and or demand for funds.
Power and influence (Connect, Perform)
Complete the following sentences with the correct term.
1. When a manager uses relationships and formal authority to cause other people in the organization to change their behavior, the manager _______.
2. The homeroom teacher has ______ because she can choose to give the best-behaving students passes to the school library, which students find a more pleasant place to study than the classroom.
3. Management at Work As the training and development manager at the Anderson Windows and Doors Company, part of your job involves helping managers learn to become better leaders. You are thinking about starting a class titled "Power and Influence for Managers," and you’ve been gathering some examples to use during the training session. Select which type of power the manager is using in the following example.
Example--- Type of Power Used Jeffrey has 20 years of management experience, and he can answer any question. Because Jeffrey is one of the most knowledgeable managers in the company, people naturally follow his advice when making complicated decisions. In reviewing research on power, you discover that there are three other common sources of power in organizations.
Which of the following are included in that list? Check all that apply.
A. Network of relationships
B. Personal effort
C. Locus of control
D. Information
4. Select the type of influence principle that best describes each of the following examples.
Example- Type of Influence Principle. A real estate agent gets new clients by being known as a "good guy" whose clients trust and respect him. A parent smiles at a child whenever the child is being quiet. In turn, the child is quiet more often. When discussing influence tactics with your managers, you should tell them that:
A. The best managers use a variety of influence tactics
B. The best managers avoid the use of influence tactics
C. The best managers use hard tactics, such as asking for what they want and using rational persuasion
D. The best managers use soft tactics, such as making people like them and developing allies
Answer:
1. Is exercising influence.
2. Reward power.
3a. Referent power.
3b. A, B and D.
4a. Make people like you.
4b. Reward the behaviors you want.
5. A. The best managers use a variety of influence tactics.
Explanation:
1. When a manager uses relationships and formal authority to cause other people in the organization to change their behavior, the manager is exercising influence.
2. The homeroom teacher has reward power because she can choose to give the best-behaving students passes to the school library, which students find a more pleasant place to study than the classroom.
3a. Jeffrey has 20 years of management experience, and he can answer any question. Because Jeffrey is one of the most knowledgeable managers in the company, people naturally follow his advice when making complicated decisions. The type of power used by Jeffrey is referent power.
3b. The three (3) common sources of power are;
I. Network of relationships.
II. Personal effort.
III. Information.
4a. A real estate agent gets new clients by being known as a "good guy" whose clients trust and respect him. The type of influence principle here is, make people like you because he is termed a "good guy" meaning he his trustworthy, respectful and nice. Hence, people would like his personality and by extension be his clients.
4b. A parent smiles at a child whenever the child is being quiet. In turn, the child is quiet more often. The type of influence principle used here is, reward the behaviors you want because the parent is happy that the child isn't crying or disturbing. Therefore, to reinforce the child's quietness; the parent smiles at the child.
5. When discussing influence tactics with your managers, you should tell them that: the best managers use a variety of influence tactics. In order to be able to lead your subordinates effectively, efficiently and successfully as a manager, you will have to know how and when to use a variety of influence tactics such as rational persuasion, consultation, ingratiation, legitimating, pressure, personal appeals, coalitions, exchange and inspirational appeals depending on the context or situation.
Hence, the more tactics you have as a manager, the higher your chances of achieving your influence goals.
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions):
Sales $28,600
Food and packaging $9,710
Payroll 7,200
Occupancy (rent, depreciation, etc.) 6,630
General, selling, and administrative expenses 4,200
$27,740
Income from operations $860
Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.
a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place)
b. What is McDonald's contribution margin ratio? Round to one decimal place.
c. How much would income from operation increase if the same-store sales increased by $900 million for the coming year, with NO change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place)
Answer:
a. What is McDonald's contribution margin?
contribution margin = total sales - total variable costs = $28,600 - [$9,710 + $7,200 + (0.4 x $4,200)] = $10,010
b. What is McDonald's contribution margin ratio?
contribution margin ratio = contribution margin / total sales = $10,010 / $28,600 = 0.35 ≈ 0.4
c. How much would income from operation increase if the same-store sales increased by $900 million for the coming year, with NO change in the contribution margin ratio or fixed costs?
increase in total contribution margin = $900 x 0.35 = $315
Income from operations will increase by $315 million
In order to achieve the target for the nominal interest rate established by the monetary policy rule, the central bank adjusts:
Answer: C. the money supply.
Explanation:
The Money Supply in an economy can be adjusted to influence interest rates due to the indirect relationship that exists between them. This means that when there is a high money supply, interest rates are lower and vice versa.
The Central Bank controls how much money is in the economy by using Open Market operations that buy or sell government securities as well as reserve requirements on banks.
To create a budget: Multiple Choice From the Banking Menu, select Planning & Budgets > Budgets From the Company Menu, select Planning & Budgeting > Set Up Budgets From the Company Center, select Company & Financials > Budgets From the Edit Menu, select Preferences > Set Up Budgets
Answer: From the Company Menu, select Planning & Budgeting > Set Up Budgets
Explanation:
Quickbooks is a very popular and effective accounting software that is mainly used by Small to Medium Scale Businesses to manage their Accounting affairs with its myriad of functions including on-premises and online cloud functions for ease of operations.
When setting up a new budget with Quickbooks, from the Company menu, click on Planning and Budgeting and then click on Set Up Budgets. After that you should click on Create New Budget and then continue from there.
You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 30%. You will get a margin call if the stock drops below what price? (Assume the stock pays no dividends, and ignore interest on the margin loan.)
Answer:
Margin call will be obtained if the stock price drops below $35.71
Explanation:
Here in this question, we start by calculating the maintenance margin
Mathematically;
Maintenance margin = Equity/market value
From the question, maintenance margin= 30%
= 30/100 = 0.3
Let the unknown price be P.
Thus, the market value of the 200 shares at price P is 200p
Hence;
0.3 = (200 * p - purchased stock value * initial margin)/200p
0.3 * 200p = 200p - 200(0.5 * 50)/200p
0.3 * 200p = 200p - 5000
60p = 200p -5000
140p = 5000
p = 5000/140
p = $35.71
holdy Inc's bonds currently sell for $1,275. They pay a $120 annual coupon and have a 20-year maturity, but they can be called in 5 years at $1,120. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between the bond's YTM and its YTC?
Answer:
Yield to maturity (YTM) is 1.91% higher than yield to call (YTC).
Explanation:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {$120 + [($1,000 - $1,275)/20]} / [($1,000 + $1,275)/2] = $106.25 / $1,137.50 = 9.34%
YTC = {coupon + [(call price - market value)/n]} / [(call price + market value)/2]
YTC = {$120 + [($1,120 - $1,275)/5]} / [($1,120 + $1,275)/2] = $89 / $1,197.50 = 7.43%
9.34% - 7.43% = 1.91%
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $22,500 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $600. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer: Please see explanation column
Explanation:
The adusting journal entry should be :
Accounts Debit Credit
Bad Debts Expense $23,100
Allowance for Doubtful Accounts $23,100
Explanation
Estimated balance in allowance account =$22,500
Allowance for Doubtful Accounts = debit of 600
adjustment to allowance= 22,500 +600 = $23,100
John is evaluating which investment would be best for his company. He wants to determine the future value of a certain investment that has the following information:
PV = $200
INT = 0.1 or 10%
N = 1 (years)
According to this information, what would be the future value of this investment?
a) $110.67
b) $200.50
c) $220
d) None of the above
Answer: $220
Explanation:
The following information can be derived from the question:
PV = $200
INT = 0.1 or 10%
N = 1 (years)
To calculate the future value of this investment, we will use the formula:
FV = PV( 1 + i)^n
FV = $200(1 + 0.1)
FV = $200(1.1)
FV = $220
The future value of this investment would be $220.
Creating own dividend policy. Carmen owns shares of Wiseguy Entertainment. Wiseguy has just declared a per share dividend on a stock selling at $. What must Carmen do if she wants no cash dividends at this time, worth of dividends, or $ worth of dividends? Show her wealth in paper and cash under each scenario. Assume a world of no taxes. First, if Carmen does not want an annual "dividend income" from his stock holdings, what must she do to get this level of income? (Select the best response.)
Answer:
Hello your question has some missing figures here is the complete question with the missing figures
Creating own dividend policy. Carmen owns shares of Wiseguy Entertainment. Wiseguy has just declared a $0.30 per share dividend on a stock selling at $24.3. What must Carmen do if she wants no cash dividends at this time, $82000 worth of dividends, or $107000 worth of dividends? Show her wealth in paper and cash under each scenario. Assume a world of no taxes. First, if Carmen does not want an annual "dividend income" from his stock holdings, what must she do to get this level of income? (Select the best response.)
Answer: Wealth in cash = $107000 , wealth in paper = $8160000
since her annual dividend received = ($102000) Carmen needs to purchase 4250 more shares of stock to get to this level of income
Explanation:
Given data
shares held = 340000
dividend = $0.3
stock price = $24.3
Stock price - dividend = $24 ( dividend price )
A) what Carmen must do if she doesn't want cash dividends
Based on shares held the annual dividend of Carmen = 340000 * 0.3 = $102000
If Carmen doesn't want the cash dividend she can use it to purchase more shares for Wiseguy entertainment which will be = dividend received / dividend price = 102000 / 24 = 4250 shares
when the Annual dividend required is $82000
she can buy shares worth = $20000 ( 102000 - 82000 )
= 20000 / 24 = 833.33
when the Annual dividend required is $107000
Carmen can sell shares worth = $5000 ( 107000 - 102000 )
= 5000 / 24 = 208.33
therefore wealth in cash would be
= $107000
wealth in paper would be
= dividend price * number of shares held
= $24 * 340000 = $8160000
Stan Slickum has a used car that can be bought for $8 comma 500 cash or for a $1 comma 000 down payment and $770 per month for 12 months. What is the effective annual interest rate on the monthly payment plan?
Answer:
48.8%
Explanation:
We can use the rate formula to determine the monthly rate as follows:
=rate(nper,pmt,-pv,fv)
nper is the number of monthly payments which is 12
pmt is the amount of monthly payment which is $770
pv is the cash price of the minus downpayment i.e $8500-$1000=$7500
fv is the balance after all payments have been made i.e $0
=rate(12,770,-7500,0)=3.37%
effective monthly rate=(1+3.37% )^12-1=48.8%
An online-only bank currently offers a 7-year CD (certificate of deposit) paying simple interest rate of 4% per quarter. If you want to get $4,240 from this CD 7 years later, how much do you have to purchase today?
Answer:
The answer is $1,413.94
Explanation:
Number of periods(N) = 28 periods (7 years x 4 quarters)
Interest rate(I/Y) = 4% per quarter. Therefore, interest rate per year is 16% per year(4% x 4 quarters)
Future value(FV) = $4,240
Present Value (PV) = ?
Let's use a financial calculator:
N = 28; I/Y = 4, FV = 4,240; CPT PV= -1,413.94
Therefore, the present value is $1,413.94
Which of these would most likely be funded through a Community Facilities District?
Answer:
what ones there's only the question not the answers
Arianna's personal residence has an adjusted basis of $308,150 and a fair market value of $277,335. Arianna converts the personal residence to rental property. What is Arianna's gain basis? What is her loss basis? Arianna's basis for gain is $ and her basis for loss is $
Answer:
Arianna's basis for loss $277,335
Arianna's basis for gain $308,,150
Explanation:
Calculation for Arianna's gain basis and loss basis
Since the original basis for loss on personal use assets that is been converted to either the business or the income producing use is the lower or lesser of the property's adjusted basis or fair market value on the date of conversion which means that the gain basis for the converted property will tend to be the property's adjusted basis on the date of conversion.
Arianna's basis for loss will be $277,335 (lower of $308,150 adjusted basis and fair market value of $277,335).
The amount of $30,815 that was been decline in value is a personal loss whichncan never be recognized for tax purposes this means that Arianna's basis for gain is $308,,150 (adjusted basis).
Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.18 every year in perpetuity. If the required return is 4.19 percent, what is the current stock price?
Answer:
The current price of the stock is $99.76
Explanation:
The price of a stock which pays a constant dividend throughout for an indefinite period of time can be calculated using the present value of perpetuity formula. The stock qualifies as a perpetuity as it pays a constant cash flow after equal intervals of time and for indefinite time period.
The formula for the present value of perpetuity is,
Present Value = Cash Flow or Dividend / r
Where,
r is the discount ratePresent value = 4.18 / 0.0419
Present value = $99.76
So, the current price of the stock is $99.76
Linda and Richard are married and file a joint return for 2019. During the year, Linda, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; Richard used the same amount. Linda and Richard also used $850 worth of employee discount coupons for hotel rooms at the hotel chain that is also owned by the airline. Richard is employed at State University as an accounting clerk. Under a tuition reduction plan, Richard saved $4,000 in tuition fees during 2019. He is studying for a master's degree in business at night while still working full-time. Richard also had $30 worth of personal typing done by his administrative assistant at the University.
Required:
What is the amount of fringe benefits that should be included in Linda and Richard's gross income on their 2018 tax return?
Answer:
$4,850
Explanation:
The free passes are customer discounts and does not qualifies for taxable in kind benefits. The $850 is an in-kind benefits and thus must be included in the gross income. Furthermore, the $4,000 fee reduction is all because of the university employment and thus must be included in the gross income.
The $30 worth of personal typing done by Richard's administrative assistant is a third party favor and this favor was not from the employer so it has nothing to do with tax.
The increase in taxable gross income will be as under:
Increase in Taxable Gross Income = $850 + $4,000 = $4,850
Cooperton Mining just announced it will cut its dividend from $4.01 to $2.57 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a 3.4% rate, and its share price was $50.07. With the planned expansion, Cooperton's dividends are expected to grow at a 4.7% rate. What share price would you expect after the announcement? (Assume that the new expansion does not change Cooperton's risk.) Is the expansion a good investment?
Answer:
$34.35
The price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.
Explanation:
Computation for the share price to expect after the announcement
Using this formula
Ke = [ D1 / P0 ] +g
Where,
D1 =$4.01
P0 = $50.07
g =3.4%
Let plug in the formula
Ke = [ D1 / P0 ] +g
Ke= [ $4.01 / $50.07] + 0.034
Ke= 0.0800+ 0.034
Ke= 0.1140
Second step is to find the Price after Expansion using this formula
P0 = D1 / [ Ke - g ]
Where,
D1=$2.57
Ke=0.1140
g=4.7%
Let plug in the formula
P0= $ 2.57 / [ 0.1140 - 0.047 ]
P0=$2.57/0.067
P0=$ 34.35
Based on this calculation, we can see that the price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.
Therefore the share price that you would expect after the announcement will be $34.35
You would like to have extra spending money, so you decide to work part time at the local gym. The job pays you $15 per hour and you work 20 hours per week. Your employer withholds 10% of your gross pay for federal taxes, 7.65% for FICA taxes and 3% for state taxes.
a. What is your weekly gross pay?
b. How much is withheld per week for federal tax?
c. How much is withheld per week for FICA taxes?
d. How much is withheld per week for state taxes?
e. What is your weekly net pay?
f. What percentage of your gross net pay is withheld for taxes?
Answer:
Gross Pay 300 dollar
Federal Income Tax $ 30
FICA $ 22.95
SUTA $ 9
Net Pay: 238.05
As a percentage of gross pay: 79.35%
Explanation:
Gross pay:
20 hours x $15 each = $ 300
Taxes:
income tax: 300 x 10% = 30
FICA 300 x 7.65% = 22.95
SUTA taxes 300 x 3% = 9
Net pay 300 - 30 - 22.95 - 9 = 238.05
Net pay as a percentage of gross pay:
238.05 / 300 = 0.7935 = 79.35%
Scenario: Home Monopolist) A monopolist faces a demand curve given by P = 60 2Q and has total costs given by TC = Q2. Its marginal revenue is MR = 60 4Q and its marginal cost is MC = 2Q. Compared with the no-trade equilibrium, consumer surplus ___________ when the monopolist engages in free trade.
Answer:
2Q
Explanation:
Economy equilibrium is where MC = MR.
Marginal cost equals marginal return when the supply and demand is linear. Consumer surplus is the additional amount that a consumer is willing to pay for the goods and services. Here MC = 2Q and MR = 60 + 4Q. Here consumer is paying 2Q additional in the equation of marginal return.
Suppose a farmer is expecting that her crop of oranges will be ready for harvest and sale as 150,000150,000 pounds of orange juice in 33 months time. Suppose each orange juice futures contract is for 15,00015,000 pounds of orange juice, and the current futures price is F_0 = 118.65F 0 =118.65 cents-per-pound. Assuming that the farmer has enough cash liquidity to fund any margin calls, what is the risk-free price that she can guarantee herself.
Answer:
Explanation:
The risk-free rate is the interest that an investor will typically expect from an investment over a period of time.
From the question, the risk free price will be the current futures price which has been given as 118.65 cents per pound.
Therefore, since the farmer is ready for harvest and sale as 150,000 pounds of orange juice in 33 months time, he will have a price of:
= 150,000 × $118.65
= $17,797.5
Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a ________ that gives the management group control over his shares.
Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock currently is valued at $47.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $37.60 per share. Larry worries about the value of his investment.
Larry's current investment in the company is_______. If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth_______.
This scenario is an example of_______. Larry could be protected if the firm's corporate charter includes a ________ provision.
If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become________.
Answer:
Larry must have signed a PROXY AGREEMENT that gives the management group control over his shares.
A proxy agreement is generally used for stockholders voting procedures, they basically grant another person the right to vote on behalf of another stockholder.
Larry's current investment in the company is $94,000.
= 2,000 stocks x $47 = $94,000
If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth $90,240.
company's new market value = (20,000 x $47) + (5,000 x $37.60) = $1,128,000
new stock price = $1,128,000 / 25,000 stocks = $45.12
= $45.12 x 2,000 = $90,240
This scenario is an example of STOCK DILUTION.
The stock price will lower because the increase in the company's value is less than proportional to the increase in the number of stocks.
Larry could be protected if the firm's corporate charter includes a PREEMPTIVE provision.
Preemptive rights give current stockholders the right to purchase more stocks (in case the company issues more stocks) before any outside investors.
If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become $112,800.
= [(5,000 / 10) x $37.60] + $94,000 = $18,800 + $94,000 = $112,800
Beatrice invests $1,320 in an account that pays 4 percent simple interest. How much more could she have earned over a 5-year period if the interest had been compounded annually
Answer:
How much more earned is $21.98
Explanation:
Calculation of the amount earned when investment in paying on simple interest
Interest = Amount * Interest rate * No of years
Interest = 1320 * 4% * 5
Interest = $264
Total amount = Interest + Amount invested
Total amount = $1320 + 264
Total amount = $1,584
Therefore, the total amount earned when earning on simple interest of 4% is $1,584
Calculation of the amount earned when investment interest in paying compounded annually
Pv= 1320
n= 5
i= 4%
Fv= ?
Fv= P(1+i)^-n
Fv= 1320(1+0.04)^5
Fv= 1320(1.04)^5
Fv= 1320(1.216652)
Fv= $1605.98
Therefore, the total amount earned when earning on interest compounded annually is $1,605.98
Calculation of how much more earned
Amount earned = Amount earned as per compounded interest - Amount earned as per simple interest
Amount earned = $1,605.98 - $1,584
Amount earned = $21.98
Therefore, how much more earned is $21.98
How can there ever exist negative real interest rates in the economy?
Answer:
Negative real interest rates occur in "high inflation environments".
Explanation:
Rates of interest can sometimes be unfavorable, as can completely accurate rates. Under high-inflation environments, declining real expectations appear especially when inflation continues rising rapidly, that is, quicker than prices.If prices are 5 percent, however, unemployment is 7 percent, so the actual rate becomes 2 percent negative.Mayan Company had net income of $132,000. The weighted-average common shares outstanding were 80,000. The company has no preferred stock. The company sold 3,000 shares before the end of the year. There were no other stock transactions. The company's earnings per share is:
Answer:
EPS = $1.71 per unit
Explanation:
Earnings per share is the total earnings attributable to ordinary shareholders divided by the number of units of common stock .
It represents profit per unit of stock unit held by common stock holder investor. The higher the more profitable and the better.
Earnings per share = Earnings attributable to ordinary shareholders / units of common stock
Earnings attributable to ordinary shareholders= Net income after tax - preference dividend
Net income = 132,000
Preference dividend = Nil
Number of shares at the end of the year = Number of shares at the beginning - number of shares at the end
Number of shares at the end of the year = 80,000 - 3000 = 77,000 units
Earnings = = 132,000 - 0 = 132,000
Earnings per shares(EPS) = $132,000 / 77,000 units = $1.71 per unit
EPS = $1.71 per unit
A pound of steak costs $10 in the U.S. and 56.25 riyals (the currency of Saudi Arabia) in Saudi Arabia. If the real exchange rate is 2/3, what is the nominal exchange rate
Answer: 3.75 Riyals / USD
Explanation:
The Real Exchange rate is different from the Nominal exchange rate as it takes into account, the differences between the 2 nations being compared in terms of prices of goods and services.
As such it can be used to calculate the Nominal rate;
Real Exchange Rate = (Cost in U.S. x Nominal Exchange Rate) / Cost in Saudi Arabia
2/3 = (10 x Nominal Exchange Rate) / 56.25
2/3 x 56.25 = 10 x Nominal Exchange Rate
10 x Nominal Exchange Rate = 37.50
Nominal Exchange Rate = 37.50 / 10
Nominal Exchange Rate = 3.75 Riyals / USD
The nominal exchange rate is 3.75 Riyals for every $1.
he Heinz and Kraft merger Group of answer choices may be allowed by the FAA may be allowed by the NEA may be allowed by the NRA may be allowed by the FTC
Answer:
Heinz and Kraft Merger:
may be allowed by the FTC.
Explanation:
The FTC is the Federal Trade Commission. It is the federal government agency charged with the responsibility of ensuring fair market practices, creating, and enforcing rules to guide businesses with respect to advertising, marketing, consumer credit, antitrust, and other fair practises.
The FTC was created by the FTC Act of 1914 and prevents antitrust agreements and develops rules for achieving a vibrant and fair marketplace, where consumers and businesses understand their rights and obligations in the marketplace.
The Heinz and Kraft merger was concluded successfully in 2015 enabling the two companies to become known as the Kraft Heinz Company and one of the largest food and beverage companies in the world.
Identify the sentences with correct parallel structure.
1. Al is tasked with researching, analyzing, and to write the Simpson Inc. recommendation report.
2. Sarah would like to meet her sales goals, run a marathon, and get her promotion before the end of July. Last month, I traveled for business, pleasure, and community service
3. On the second floor, past the green door, next to the green vase, you'll see your umbrella
4. Next month, we anticipate that Hassam Creamery will consolidate, Nicolette Dairy Systems will be acquired, and General Lactose will go out of business.
Answer:
2. Sarah would like to meet her sales goals, run a marathon, and get her promotion before the end of July. Last month, I traveled for business, pleasure, and community service
3. On the second floor, past the green door, next to the green vase, you'll see your umbrella
Explanation:
The parallel structure refers to the structure in which there is the same words example that reflects a minimum two words or thoughts that contains the same importance
In the given options the second and third statement represents the parallel structure as it involves various thoughts that have one objective to accomplish that
Hence, all the other options are incorrect
You are an stock analyst hired to follow Jones Kenesyian Consulting (whose ticker is JK), the firm recently paid a dividend of $2 per share, and you expect JK to grow at 10% for the next 3 years afterwhich you make an assumption that it will grow at a constant rate of 5%. You required rate of return is 12%. What do you believe the intrisic value of the stock is today
Answer:
Price of stock today = $45.58
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
Step 1 : PV of dividend from year 1 to 3
PV = D × (1+r)^-n
D- dividend payable in a particular year
r- required rate of return
n- year
Year PV of Dividend
1 2 × 1.1^1 × 1.12^(-1) = 1.96
2 2 × 1.1^2× 1.12^(-2) = 1.93
3 2 × 1.1^3 × 1.12^9-3)= 1.89
Step 2 : PV of dividend from year 4 to infinity
PV (in year 3 terms) of dividend= 2 × 1.1^3× 1.05/(0.12-0.05) = 55.90
PV in year 0 terms = 55.90 × 1.12^(-3) = 39.789
Total present Value = 1.96 +1.93 +1.89 + 39.789= 45.58
Price of stock today = $45.58
You have $256,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.1 percent, and Stock L, with an expected return of 10.7 percent. If your goal is to create a portfolio with an expected return of 12.3 percent, how much money will you invest in Stock H and in Stock L
Answer: Investment in H = .4706($256,000)
Investment in H = $120,470.59
Investment in L = .5294($256,000)
Investment in L = $135,529.41
Explanation:
Investment in Stock H
Investment in Stock L
Here, the expected return of the portfolio and the expected return of the assets in the portfolio have been given and we're to calculate the dollar amount of each asset in the portfolio. So, we need to find the weight of each asset in the portfolio. Since the total weight of the assets in the portfolio must equal 1 (or 100%), we can find the weight of each asset as:
E[Rp] = .1230 = .141xH + .107(1 - xH)
xH = .4706
xL = 1 - xH
xL = 1 - .4706
xL = .5294
So, the dollar investment in each asset is the weight of the asset times the value of the portfolio, so the dollar investment in each asset must be:
Investment in H = .4706($256,000)
Investment in H = $120,470.59
Investment in L = .5294($256,000)
Investment in L = $135,529.41