Answer:
4.6
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
29.06 = 1.5 X (1 + G) / 0.1 - G
29.06(0.1 - G) = 1.5 + 1.5g
2,906 - 29,06g = 1.5 + 1.5g
combine like terms
Gander, Inc. is considering two projects with the following cash flows: Year Project X Project Y 0 ($100,000) ($100,000) 1 40,000 50,000 2 40,000 0 3 40,000 0 4 40,000 0 5 40,000 250,000 Gander uses the payback period method of capital budgeting and accepts only projects with payback periods of 3 years or less. a. If the projects are presented as stand-alone opportunities, which one(s) would Gander accept
Answer: Project X
Explanation:
Project X payback period:
Payback period if the inflow is constant = Investment amount / Annual inflow
= 100,000 / 40,000
= 2.5 years
Project Y payback period:
= Year before payback + Amount remaining / Cash inflow in year of payback
Project Y makes no inflows from year 2 to 4 and brings in a substantial amount in year 5. Year before payback must be 4 years therefore.
Amount remaining = 100,000 - 50,000 in first year
= $50,000
= 4 + 50,000 / 250,000
= 4.2 years
Project X will be chosen as its payback period is less than 3 years.
Capstone Publishers Inc. collects 50% of its sales on account in the month of the sale and 50% in the month following the sale. If sales on account are budgeted to be $309,000 for April and $355,000 for May, what are the budgeted cash receipts from sales on account for May
Answer:
the budgeted receipts from sales on account is $332,000
Explanation:
The computation of the budgeted receipts from sales on account is given below;
= $309,000 ×50% + $355,000 × 50%
= $154,500 + $177,500
= $332,000
Hence, the budgeted receipts from sales on account is $332,000
The above method should be applied for determining the budgeted receipts from sales on account
Megan Company has fixed costs of $429,450. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Q $320 $150 $170 Z 220 180 40 The sales mix for products Q and Z is 50% and 50%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number. a. Product Q fill in the blank 1 units b. Product Z fill in the blank 2 units
Answer:Break-even point (units)= 4,090units ,
a. Product Q -2,045 units
b. Product Z -2,045 units
Explanation:
Given
Product Selling Price Variable Cost per Unit Contribution Margin per Unit Q $320 $150 $170
Z 220 180 40
Using the formulae
Break-even point (units)= Total fixed costs / Weighted average contribution margin
But weighted Q contribution: $170 x 50% = $ 85
weighted Z contribution: $ 40 x 50% = $ 20
Total Mix contribution(Weighted average contribution margin)=$105
Break-even point (units)= $429,450/ $105
Break-even point (units)= 4,090units
Now, for each product:
Q= 4,090units x 50%= 2,045 units
Z= 4,090units x 50%= 2,045 units
Therefore,
a. Product Q -2,045 units
b. Product Z -2,045 units
List two types of cash flows an investor can expect to receive from an investment in stock. Explain the volatility of each of these types of cash flows.
Answer:
Operating cash flows which are activities that include a company’s day-to-day activities, for example, purchasing raw material or making sales. Investing cash flows are activities that include purchases and sales of long term assets and other investments.
discuss any 2 factors that you would consider when choosing the ideal type of investment
Answer:
The two factors that impact the choice of an ideal investment are returns on investment and investment period.
Time makes the difference between a successful investment and a bad investment choice. It is the time duration of an investment that dictates the expected returns on the investment.
Explanation:
The return on investment (ROI) is linked to the risks and volatility of the investment type. The investment period or term also affects the returns, risks, and volatility. Short-term investments are known for reduced returns, risks, and volatility. Other factors that impact the investment type that a decision-maker chooses, apart from these factors linked to risks and volatility, are liquidity, inflation, and tax implications.
draw five sector of macroeconomic model
Answer:
Here's my Macroeconomic model.
Explanation:
Thus, the five-sector model includes (1) households, (2) firms, (3) government, (4) the rest of the world, and (5) the financial sector. The financial sector includes banks and non-bank intermediaries that engage in borrowing (savings from households) and lending (investments in firms).
Construction Inc. contracts to buy some heavy equipment from Dig Machines Inc. Before either party performs, Dig sells its assets to Excavation Corporation. On learning of the sale, Construction is concerned about its contract with Dig. Construction should a. buy the equipment from a different firm and bill Excavation for the price. b. demand an assurance of performance from the seller. c. buy the equipment from a different firm and bill the seller for the price. d. consider the contract repudiated and sue the seller for breach.
Answer:
Option b: Demand assurances of performance from the seller
Explanation:
Right of assurance
This is simply done if a party has reasonable grounds to believe that the other party will not hold their own part of the deal, he or she may ask in writing that the other party give adequate assurance of performance . It is stated that If the second party does not provide reasonable assurance as demanded within 30 days, this failure will lead to repudiation of the contract and can be regarded as an anticipatory breach.
The process for requesting adequate assurance is divided into three reasonable grounds;
1. Reasonable grounds for insecurity
2. Demand for adequate assurances of performance
3. Failure to provide adequate assurance is a Repudiation
Excavation can have some dig assets. That doees not mean they purchase all their asset and even if they do, they did not even purchase the whole company. As the company can produce more, construction conc. should or can place a request across to dig to give assurance of performance.
Suppose the European and Japanese economies succumb to a recession and reduce their demand for U.S. goods for several years. Using AS/AD framework, explain the macroeconomic consequences of this shock, both immediately and over time.
recurring sale and purchase is the Hallmark of the business justify the answer
Answer:
Recurring or Repeated transaction of purchase and sale means business due to following reasons :-
》Incentivize your customers with points.
》Grow your customer base through referral programs.
》Improve customer retention with VIP programs.
》Create exclusive discounts for loyal customers.
》Use email retargeting to win customers back.
》Boost repeat purchases through personalized campaigns.
A long-term period of economic recession that leads to a low GDP and very
high unemployment is a(n)
Answer:
Depression
Explanation:
A long-term period of the economic recession that leads to a low GDP and very high unemployment is a(n) DEPRESSION
Depression is an economic term used to describe a deep tumble in an economy that occurs for a long period of more than six months. Depression lasts for years, and it is characterized by low real GDP and an awfully high level of unemployment.
Hence, in this case, the right answer is Depression.
For tax reasons, your client wishes to purchase an annuity that pays $80,000 each year for 6 years, with the first payment in one year. At an interest rate of 8% and focusing on time value of money without consideration of any fees, how much would the client need to invest now
Answer:
$369,830.37
Explanation:
Present value can be calculated using a financial calculator
Cash flow from year 1 to 6 = 80,000
i = 8%
pv = $369,830.37
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Following is the sales budget for Coore, Inc., for the first quarter of 2019.
January February March
Sales budget $168,000 $186,000 $199,000
Credit sales are collected as follows:
65 percent in the month of the sale.
20 percent in the month after the sale.
15 percent in the second month after the sale.
The accounts receivable balance at the end of the previous quarter was $107,000 ($78,100 of which was uncollected December sales)
Requried:
a. Compute the sales for November.
b. Compute the sales for December.
c. Compute the cash collections from sales for each month from January through March.
Answer:
a. Sales for November = $192,666.67
b. Sales for December = $312,400,00
c. Total cash collections are as follows:
January = $200,580
February = $201,360
March = $191,750
Explanation:
a. Compute the sales for November.
Sales for November = (Accounts receivable balance at the end of the previous quarter - Uncollected sales from December) / Collection rate two months after the sale = ($107,000 - $78,100) / 15% = $192,666.67
b. Compute the sales for December.
Sales for December = Uncollected sales from December / (Collection rate one months after the sale + Collection rate two months after the sale) = $78,100 / (10% + 15%) = $312,400,00
c. Compute the cash collections from sales for each month from January through March.
Note: See the attached excel file for the schedule of cash collections from sales for each month from January through March.
From the attached excel file, total cash collections are as follows:
January = $200,580
February = $201,360
March = $191,750
Here are direct spot and forward markets quotes for MXN over three points in time: now (1/1/XX), one month later (2/1/XX), three months later (4/1/XX), and six months later (7/1/XX).
1/1/XX 2/1/XX 4/1/XX 7/1/XX
MXN Spot 0.0891 0.0949 0.0900 0.0955
1 Month Forward 0.0904 0.0963 0.0914 0.0969
3 Month Forward 0.0918 0.0977 0.0928 0.0984
6 Month Forward 0.0932 0.0992 0.0942 0.0999
Based on your knowledge of the MXN quotes on all three periods, on 1/1/XX : ___________
a. You should be short on the 6 month forward contract.
b. You should be long on the 1 Month Forward contract.
c. You should be long on the 3 month forward contract.
Answer:
a. You should be short on the 6 month forward contract.
Explanation:
Short forward contract is that when a trader agrees to sell the asset on the same date and for the same price. Long forward contract is one in which trader agrees to buy underlying asset on a specified date at a specified price in future.
The Fun Tyme Toy Company discovers that one of its products can easily break, exposing children to potential injury from the sharp parts. Under the Consumer Product Safety Act of 1972, how long does Fun Tyme have to report this defect to the Consumer Product Safety Commission
Answer:
The Fun Tyme Toy Company
According to the Consumer Product Safety Act of 1972, Fun Tyme has 24 hours following the discovery of the defect to report it to the Consumer Product Safety Commission.
Explanation:
The purpose of creating the Consumer Product Safety Commission by Congress in 1972 is to ensure that consumers are adequately protected from unreasonable risks of injuries associated with all types of consumer products. The reasonable time to report a defect in any consumer product is within 24 hours after the discovery is made. There are penalties for failure to comply with existing regulations on consumer product safety.
Your design team wants some help with the design of a locally responsive product intended for the host. They wish to own all of the intellectual property rights, and minimize costs. You should:___________a) Greenfield - Open a design studio in the host location.b) Acquire a local design firm in the host.c) Merge with a design firm in the host.d) Enter into a JV with a firm in the host.e) Enter into a sponsored development agreement with an alliance partner in the host.f) None of the choices listed here.g) All of the Greenfield, Acquire, Merge, and JV choices will work fine.
Answer:
b) Acquire a local design firm in the host.
Explanation:
The limitations with related to the greenfield, sponsored, mergers and JVs is that they dont give any assurance of 100% control and the ownership should be considered for the intellectual property
Now if one could select for the acquistion purpose that means they have the overall control and the ownership
So the above should be the answer
Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $96,000 cash immediately, (2) $39,000 cash immediately and a six-period annuity of $9,800 beginning one year from today, or (3) a six-period annuity of $18,800 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Assuming an interest rate of 5%, determine the present value for the above options. Which option should Alex choose
Answer: Option 1
Explanation:
The option selected should be the one with the highest present value.
1. Present value = $96,000
2. Present value = $39,000 + Present value of $9,800 annuity
Present value of Annuity = Annuity * Present value interest factor of annuity, 6 periods, 5%
= 9,800 * 5.0757
= $49,741.86
Present value of option 2 = 39,000 + 49,741.86
= $88,741.86
3. Present value of $18,800 annuity:
= 18,800 * Present value interest factor of annuity, 6 periods, 5%
= 18,800 * 5.0757
= $95,423.16
Cash payment of $96,000 immediately is best option as it is highest.
four years ago, a person borrowed $10,000 at an intereate rate of 8% compounded annually and agreed to pay it back in equal payments over a ten-year period. This same person now wants to pay off the reaminaing amount of the loan. How much should this person pay
Answer:
$5,063.95
Explanation:
Missing word "Assume he has just made the fourth payment."
Borrowed Amount = $10,000
Interest rate (Compounded annually) = 8%
Number of Payments = 10
Calculating Monthly Payment using the MS-Excel PMT Function
Annual Payment = PMT(Rate, Nper, -PV)
Annual Payment = PMT(8%, 10, 10000)
Annual Payment = $1,490.30
Calculating Present Value of 4 payments using the MS-Excel PV Function
Present Value = PV(Rate, Nper, -PMT)
Present Value = PV(8%, 10, -1,490.30)
Present Value = $4,936.05
So, the remaining balance of borrowed amount he should pay is $5,063.95 ($10,000 - $4,936.05).
what are the marketing channel distribution strategy
Answer:
The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales. ... Retailers are generally the customers of the wholesalers and offer high-touch customer service to the end customers.
Mark, a college sophomore, is unsure of his career choice. He was majoring in technology, but he had an internship in computer programming last year and was bored to tears. He felt the internship was a failure. If he came to you, a human resource professional, for advice, which would you tell him
Answer and Explanation:
Since in the given situation it is mentioned that Mark felt that internship was a failure so he wants to considered an internship in the different area of the filed in order to get more ideas. Also, he should think for skills testing and interest on the O ×NET website where he get to know what is the interest of his work or the work he wants to try
So the same is relevant
RJR Nabisco recently experienced a market reevaluation due to a number of tobacco lawsuits. The firm has a bond outstanding with 15 years to maturity, and a coupon rate of 8 percent, with interest being paid semiannually. The required yield to maturity has risen to 16%. What is the price of the RJR Nabisco bond? a) $1,000 b) $804 c) $767 d) $550
Answer:
d) $550
Explanation:
The computation of the price of the RJR bond is given below;
Given that
Future value assume be $1,000
NPER = 15 × 2 = 30
PMT = $1,000 × 8% ÷ 2 = $40
RATE = 16% ÷ 2 = 8%
The formula is shown below:
=-PV(RATE,NPER,PMT,FV,TYPE)
After applying the above formula, the present value is $550
What costs are considered “relevant” and which are considered “irrelevant “to a business
decision. Explain why
Answer:
Relevant costs are costs that will be affected by a managerial decision. Irrelevant costs are those that will not change in the future when you make one decision versus another.
Explanation:Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.
What is the value of a loom that is expected to generate fixed annual cash flows of $3,640 every year for a certain amount of time if the first annual cash flow is expected in 5 years, the last annual cash flow is expected in 10 years, and the appropriate discount rate is 3.7 percent
Answer:
PV= $13,627.44
Explanation:
Giving the following information:
Cash flow= $3,640
Interest rate= 3.7%
First, we need to calculate the value of the investment five years from now:
PV= Cf*{(1/i) - 1/[i*(1 + i)^n]}
PV= 3,640*{(1/0.037) - 1 / [0.037*(1.037^5)]}
PV= $16,342.11
Now, the present value:
PV= FV / (1 + i)^n
PV= 16,342.11 / (1.037^5)
PV= $13,627.44
Describe the key stages in integrating total quality management into the strategy of an international petrochemical company
Answer:
Total quality management (TQM) describes a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.Explanation:
If my answer is incorrect, pls correct me!
If you like my answer and explanation, mark me as brainliest!
Martin used his credit card to buy a new bike. Which statement is true?
Answer: A.
Explanation: egde 2021
Answer: A, he borrowed money
Explanation:
Determine whether each of the following statements is true, false or uncertain, and brieflyjustify your answer (a few sentences). No credit will be given for unsupported answers.1. The optimal tariff for a large open economy is 0.2. Multinational firms are important primarily in labor-intensive industries.3. Horizontal FDI is more likely to occur when trade costs are low but plant-level economiesof scale are high.4. For a small open economy, import tariffs and import quotas have identical effects onprices, welfare, and import levels.5. The median voter theory has been very successful at explaining actual trade policyoutcomes.
Answer:
1) False
2) Uncertain
3) False
4) False
5) True
Explanation:
1) Optimal tariff for a Large open economy is not zero ( 0 ) and this is because a large open economy has control over interest rates both domestically and in a larger scale, and its engaged in exports and imports trades with other economies of the world. hence its Optimal tariff should be > 0
2) The Importance of Multinational firms primarily in labor-intensive industries is Uncertain because Multinational firms can have a positive effect on labor by providing them with better wages and it can also affect labor negatively by laying off incompetent workers in the long run
3) Horizontal FDI is less likely to occur when the trade costs are low but plant-level economies of scale are high because lower trade costs will lead to a vertical FDI and not horizontal FDI
4) In an open economy the effects of import tariffs and import quotas does not have same effect on prices and import levels . reduction in import quota reduces import levels while increase in tariffs affects pricing of goods and services
5) True because increase in inequality and a country's endowment been held constant will raise trade barriers in a capital abundant economy and vice versa for less capital abundant economy .
1. How much is currently owed on this credit card?
a. $200
b. $245
c. $1,000
Answer:
What is the word problem??? (B)
Is it:
How much is currently owed on this credit card?
$200
$245
$1,000
Look at the Transactions section. Why is the refund marked with a positive sign?
You owe that amount on your credit card statement
You are receiving that money back onto your credit card statement
You paid that amount off last month
Before sending in your payment to the credit card company, you go to a bicycle store. How much can you spend before going over the credit limit on your card?
$0, you are already over your credit limit
$245
$755
Which of the following statements is FALSE?
If you pay the MINIMUM PAYMENT of $40.00, the bank will waive the interest charged on the balance you still owe.
If you are late in making your credit card payment, you may have to pay a $35 fee.
If you want to avoid any interest or fees, you should pay off your full statement balance by the due date.
Explanation:
The measurement of the Aggregate Supply
Curve takes into account all goods and
services and their corresponding average price
level. What is the label for the Y-Axis?
A. average income
B. maximum price level
C. average price level
Answer:
C; Average Price Level
Explanation:
Here, we want to get what is on the label of the y-axis
The aggregate supply curve is simply a plot of the average price level against the real GDP( gross domestic product)
From this definition, we can see that we have the average price level on the y-axis and we have the real GDP on the x-axis
g Because of the downward sloping demand curve, a monopolist can increase its revenue is by ________. Group of answer choices only increasing price on its goods only decreasing price on its goods increasing or decreasing price of its good. charging the maximum price
Answer:
only increasing price on its goods
Explanation:
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region
Because the demand curve for a monopoly is downward sloping, marginal revenue is less than price. As prices fall, more units of the product are bought.
In a monopoly When the average cost is falling, the marginal cost lies below the average cost. If the government sets price to be equal to marginal cost, which lies below the average cost, the monopoly would incur losses
Problems and Applications Q8 Suppose that the government decides to issue tradable permits for a certain form of pollution. In terms of economic efficiency in the market for pollution, having the government auction the permits off is distributing them to firms. True or False: If the government chooses to distribute the permits, the allocation of permits among firms does not matter for efficiency, but it would affect the distribution of wealth. True False
Answer:
1. False
2. True
Explanation:
Tradable permits issued to firms, there will be no effect on economic efficiency for the market of pollution permit. The revenue of government will be increase by selling and auctioning those permits.
The market for corn in Mexico has a large number of sellers and buyers, and there is no difference in the products sold by each seller. As a result, prices are determined by the Multiple Choice consumers that buy the corn. businesses that sell the corn. forces of supply and demand. agricultural industry.
Answer:
In this market, prices are determined by the
forces of supply and demand.
Explanation:
This Mexican corn market situation describes a perfectly competitive market structure. In a perfectly competitive market, firms face the following conditions: (1) there are many suppliers and many consumers; (2) with identical products; (3) all have relevant decision-making information; and (4) there are free entry and exit of firms. This makes it impossible for one seller or consumer to set prices of the corn.