Answer:
The answer is "The coal and steel industries".
Explanation:
In compliance with the terms of the 1975 Constitutional Act, on 5 June 1975, the UK promised a Vote on Inclusion in the European Union, often alluded to as the Vote on the European Union, the Single Market Vote as the EEC Participation referendum to measure support.
This Group established its Council of Europe Coal and Steel Community, that consolidated free flow of coal and steel as well as the freedom of access to sources of production in 6 countries.
The goal is a fast delivery process, ideally requiring little manual effort. What is one capability used to achieve this?
a. Soft launches
b. Nonfunctional requirements
c. Quiet releases
d. Feature toggles
Answer: D. Feature toggles
Explanation:
Feature toggles allows one to be able to either turn a code on or off without needing a deploy.
Feature toggles being about a fast delivery process, ideally requiring little manual effort.
Feature toggles are usually used by engineering teams for continuous deployment and canary releases.
Term that express the capability which involves a goal of having a fast delivery process, with a little manual effort required is D: Feature toggles.
When one is trying to acheive a goal of having a fast delivery process, Feature toggles would be the best option to go for Feature toggle can be regarded as a mechanism that helps the code to be turned “on” or “off”.Thus can be done remotely, and there is no need for deploy, it is been utilized by product engineering and software development.Therefore, option D is correct
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which value of a makes this investor indifferent between the risky portfolio and the risk-free asset
Answer: 8
Explanation:
Expressing the value of A that would equate the risk-free rate to the risky portfolio is;
0.06 = 0.15 − A/2(0.15)²
0.06 - 0.15 = -0.01125 * A
A = (0.06 - 0.15) / -0.01125
A = 8
With A being 8, the investor would be indifferent between the risk free asset and the risky portfolio according to their utility function.
McDonalds reported current year pretax book income of $365,000. Included in the computation were favorable temporary differences of $13,750, unfavorable temporary differences of $97,000, and unfavorable permanent differences of $45,000. McDonalds' current income tax expense or benefit would be
Answer:
the current income tax expense or benefit is $103,583
Explanation:
The computation of the current income tax expense or benefit is shown below:
Current income tax expense is
= (pre - tax book income - favourable temporary difference + unfavorable temporary difference + unfavourable permanent difference) × tax rate
= ($365,000 - $13,750 + $97,000 + $45,000) × 21%
= $493,250 × 21%
= $103,583
We assumed the tax rate be 21%
hence, the current income tax expense or benefit is $103,583
Pension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely, the pension obligation will resemble a perpetuity. Suppose, therefore, that you are managing a pension fund with obligations to make perpetual payments of $3.5 million per year to beneficiaries. The yield to maturity on all bonds is 17.5%.
Required:
a. If the duration of 5-year maturity bonds with coupon rates of 16% (paid annually) is 4 years and the duration of 25-year maturity bonds with coupon rates of 9% (paid annually) is 16 years, how much of each of these coupon bonds (in market value) will you want to hold to both fully fund and immunize your obligation?
b. What will be the par value of your holdings in the 25-year coupon bond?
Answer:
Duration of liability (perpetual) = (1 + y) / y
= (1 + 17.5%) / 17.5%
= 6.71
Value of liability = Cash Flow / yield
= $3.5 million / 17.5%
= $20 million
a. Assume you invest w in 5-year bond and 1-w in 25-year bond such that the duration of the portfolio is 6.71
6.71 = w x 4 + (1 - w) x 16
w = (16 - 6.71) / (16 - 4)
w = 77% in 5-year bond
1 - w = 28% in 25 year bond
Market Value of 5 year bond = 77% * $20 million = $15.4 million
Market Value of 20 year bond = 23% * $20 million = $4.6 million
b. Market Price of 20 year bond can be calculated using PV function on a calculator
N = 25, I/Y = 17.5%, PMT = 9, FV = 100
Price = Present Value (25,17.5%, 9 ,100)
Price = 52.29042644
Price = $52.30
Par Value of 25 year bond = Market Value /% Price
Par Value of 25 year bond = $4.6 million / 50.83%
Par Value of 25 year bond = $9,049,774
E-Eyes just issued some new preferred stock. The issue will pay an annual dividend of $27 in perpetuity, beginning 16 years from now. If the market requires a return of 4.1 percent on this investment, how much does a share of preferred stock cost today?
Answer:
$360.43
Explanation:
Calculation for how much does a share of preferred stock cost today
First step is for us to calculate the price of the stock in Year 15 which is a year before the first dividend payment.
P15= $27 / .041
P15= $658.54
Last step is to calculate for the price of the stock today
P0= $658.54/ (1+.041)^15
P0= $658.54/ (1.041)^15
P0=$360.43
Therefore the amount that a share of preferred stock cost today will be $360.43
Economics..Match the following..
Answer:
1
4
2
5
3
Explanation:
Many U.S. firms prefer to sell in Canada, England, and Australia-rather than in larger markets such as Germany and France-because they feel more comfortable with the languages, laws, and culture, which reflect the ________ between these countries and the United States.
a. self-serving bias
b. coincident development
c. psychic proximity
d. cognitive dissonance
e. backward invention
Answer: psychic proximity
Explanation:
The above scenario in the question reflects the psychic proximity between the countries and the United States.
In international business, psychic proximity simply has to do with the national differences between countries which influences a country's perception towards another country.
Therefore, the correct option is C.
The town of Smallsville is considering building a museum. The interest on the money Smallsville will have to borrow to build the museum will be $1,000 per year. Each citizen's marginal benefit from the museum is shown in the following table, and this marginal benefit schedule is public information.
Citizen Marginal benefit from museum ($/year)
Anita…………………………. 340
Brandon…………………………. 290
Carlena…………………………. 240
Dallas…………………………. 190
Eloise…………………………. 140
a. Assuming each citizen voted his or her private interests, would a referendum to build the museum and raise each citizen's annual taxes by $200 pass?
b. A citizen proposes that the city let a private company build the museum and charge the citizens a lump-sum fee each year to view it as much as they like. Only citizens who paid the fee would be allowed to view the museum. If the private company were allowed to set a single fee, would any company offer to build the museum?
c. A second citizen proposes allowing the private company to charge different prices to different citizens and auctioning the right to build the museum to the highest bidding company. Again, only the citizens who pay the fee may view the museum. What is the highest bid a private company would make to supply the museum to Smallsville?
Answer: See explanation
Explanation:
a. This has been solved and attached.
Note that the net benefits was calculated as:
= Marginal benefit - $200
b. Looking at the table and information provided in the attachment, we would see that no company offer to build the museum because since their cost of $1000 can't be covered by the revenue generated. The highest revenue gotten for the single price monopolist is $760 and this can't even cover their cost.
c. Based on the scenario given in (c), the highest revenue the price discriminating monopolist would make is $1200 and coupled with the fact that the cost is $1000, the maximum bid that a private company would make to supply the museum to Smallsville is $200 ($1200 - $1000)
a. Assuming that each citizen voted their private interests, a referendum to build the museum and raise each citizen's annual taxes by $200 would pass because 3/5 (60%) of the citizens would vote in favor. They derive more marginal benefit than the head tax increase from the museum project.
b. No company would likely offer to build the museum based on a single lump-sum fee because the marginal benefits derived by the five citizens are not equal nor more than $200 each. If the private company charges above $140, not all the citizens would be willing to pay.
c. The highest bid a private company would make to supply the museum to Smallsville is $100,000. This cost is based on a 10% annual interest ($1,000/10% x 10 years) for ten years.
Thus, given the facts of the case, it would be more beneficial for the town of Smallsville to borrow $100,000 to build the museum and raise the annual tax by $200 to enable the citizens to enjoy the services of the museum while the town recovers the investment costs plus interests on the borrowed funds over time.
Data and Calculations:
Cost of Annual Interest Expense = $1,000
Citizens Marginal Net Accumulated
Benefit Benefit Net Benefit
Anita $340 $140 ($340 - $200) $140 ($0 + $140)
Brandon $290 $90 ($290 - $200) $230 ($140 + $90)
Carlena $240 $40 ($240 - $200) $270 ($230 + $40)
Dallas $190 ($10) ($190 - $200) $260 ($270 - $10)
Eloise $140 ($60) ($140 - $200) $200 ($260 - $60)
Total $1,200
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Marigold Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $157,500, $404,800, and $93,600, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,100, machine hours 25,300, and number of inspections 1,800.
Required:
Compute the overhead rate for each activity.
Answer and Explanation:
The computation of the overhead rate for each type of activity is as follows:
Overhead rate is
= Activity activity ÷ Level of activity driver
For machine setup, the Overhead rate is
= $157,500 ÷ 2,100 setup
= $75 per set-up
For machining, the overhead rate is
= $404,800 ÷ 25,300
= $16 per machine hour
For inspection, the overhead rate is
= $93,600 ÷ 1,800
= $52 per inspection
Suppose capital is readily substitutable for labor and that the price of capital falls. We can conclude that the :_______________a) output effect will tend to reduce the demand for labor.b) demand for labor will necessarily decline.c) substitution effect will tend to reduce the demand for labor.d) demand for labor will necessarily increase.
Answer:
Option C: substitution effect will tend to reduce the demand for labor
Explanation:
Capital is simply anything man made that is used in the production of goods and service. It is that which is used by man to start any business venture or produce goods and services e.g. money(currency),machinery, buildings, stock etc. Labor is mans effort put into work.
Since capital is readily substitutable for labor and when the price of capital falls. We can say that the substitution effect will tend to reduce the demand for labor. If also capital and labor are used in rigidly fixed proportions and the price of capital falls, it can be concluded the substitution and output effects will work.
Brown Industries has a debt-equity ratio of 1.5. Its WACC is 9.6 percent, and its cost of
debt is 5.7 percent. There is no corporate tax.
What is the company's cost of equity capital? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
b-1. What would the cost of equity be if the debt-equity ratio were 2.0? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
b-2. What would the cost of equity be if the debt-equity ratio were 0.5? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
b-3. What would the cost of equity be if the debt-equity ratio were zero? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
Answer:
A .Unlevered cost of equity = 9.6
b-1 Levered cost of equity = 28.69
b-2 Levered cost of equity = 14.37
b-3 Levered cost of equity = 9.6
Explanation:
A. First step is to calculate the E/A
D/A = D/(E+D)
D/A = 1.5/(1+1.5)
D/A=0.6
E/A = 1-D/A
E/A=1-0.6
E/A=0.4
Second Step is to calculate WACC using this formula
WACC = Levered cost of equity*E/A+Cost of debt*(1-tax rate)*D/A
Let plug in the formula
0.096= Levered cost of equity*=0.4+0.057*(1-0)*=0.6
Levered cost of equity =15.45%
Third step is to calculate UnLevered cost of equity using this formula
Levered cost of equity = Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)
Let plug in the formula
0.1545 = Unlevered cost of equity+1.5*(Unlevered cost of equity-0.057)*(1-0)
Unlevered cost of equity = 9.6
b-1. Calculation for What would the cost of equity be if the debt-equity ratio were 2.0
Using this formula
Levered cost of equity = Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)
Let plug in the formula
Levered cost of equity = 9.6+2*(9.6-0.057)*(1-0)
Levered cost of equity = 28.69
b-2. Calculation for What would the cost of equity be if the debt-equity ratio were 0.5
Using this formula
Levered cost of equity = Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)
Let plug in the formula
Levered cost of equity = 9.6+0.5*(9.6-0.057)*(1-0)
Levered cost of equity = 14.37
b-3. Calculation for What would the cost of equity be if the debt-equity ratio were zero
Using this formula
Levered cost of equity = Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)
Let plug in the formula
Levered cost of equity = 9.6+0*(9.6-0.057)*(1-0)
Levered cost of equity = 9.6
Auerbach Inc. issued 4% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $300 million. The bonds pay interest each March 31 and September 20, beginning March 31, 2019. The effective interest rate established by the market was 6%.
Required:
How much cash interest does Auerbach pay on March 31, 2019?
Answer:
$6.0 million
Explanation:
Calculation for How much cash interest does Auerbach pay on March 31 2019
Cash interest=$300 million × 4% × 6/12.
Cash interest=$6.0 million
(Note that 0ctober 1 2018 to March 31 2019 will give us 6 months)
Therefore the amount of cash interest that Auerbach pay on March 31 2019 will be $6.0 million
Ashland Corporation sells 150 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $30 a share. Ashland sold the shares for $38 a share. The entry to record the sale is:___________
Answer:
Dr Cash $5,700
Cr Gain on Sale of Stock Investments $1,200
Cr Stock Investments $4,500
Explanation:
Based on the information given we were told that the Corporation sold 150 shares of common stock that was being held as an investment which means that in a situation where the shares were acquired at a cost of $30 a share in which the Corporation sold the shares for cost of $38 a share. The Journal entry to record the sale will be:
Dr Cash $5,700
(150 shares *$38)
Cr Gain on Sale of Stock Investments $1,200
($5,700-$4,500)
Cr Stock Investments $4,500
(150shares *$30)
A market that has a single supplier of a product with no close substitutes and barriers to entry is:________
a. an oligopoly.
b. monopolistically competitive.
c. a pure monopoly.
Answer:
c. a pure monopoly.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.
Additionally, a public power company refers to a company that provides power (electricity) utility to the general public of a society.
Hence, a market that has a single supplier of a product with no close substitutes and barriers to entry is a pure monopoly.
Classify each of the following based on the macroeconomic definitions of saving and investment.
a. Megan purchases stock in Pherk, a pharmaceutical company.
b. Larry purchases a new condominium in Denver.
c. Janet purchases new ovens for her cupcake-baking business.
d. Felix purchases a corporate bond issued by a car company.
Answer:
A)savings
B) investment
C) investment
D)savings
Explanation:
In macroeconomics, Savings could be regarded as the amount that remains when the spending by consumer has been deducted from amount of disposable income that was earned by the consumer at that particular period.
Investment can be regarded as the amount of goods that are been accumulated which has not been consumed at that particular time.
From the question, The stock purchased by Megan in the question means that she has extral money which is savings to her. Government bonds purchase by Felix means he secured a savings.
Kyle actively participates in the rental of a home he owns. Kyle's AGI for the year is $75,000. He has a loss from his rental property of $20,000. How much of the loss can Kyle deduct on his income tax return this year
Answer:
Kyle can deduct $20,000 loss from his income tax return this year.
Explanation:
a) Data:
Kyle's AGI = $75,000
Rental property loss = $20,000
Maximum AGI for maximum loss deduction of $25,000 = $100,000
This is because Kyle's adjusted gross income (AGI) is less than $100,000. The maximum loss deductible for rental income is $25,000.
b) The federal tax law allows for a rental income loss deduction to taxpayers who own and rent property in the U.S. The law stipulates that up to $25,000 may be deducted as a real estate loss per year as long as the individual's adjusted gross income is $100,000 or less.
PLEASE HELP!!! Compare U.S. government savings bonds to mutual funds and collectibles in terms of risk and potential return. Explain why these investments are categorized as they are.
Answer:
.......
Explanation:
...................
10. Do you think engaging in organic farming is an example of corporate citizenship? Why?
Answer:
The global population is growing rapidly causing a rise in demand for sustainable food production.
Explanation:
Jarvis is a coffee farmer who wants to hedge his entire coffee crop that will be harvested by September. The December coffee contract (which consists of 37,500 pounds of coffee) is trading at $2.00 per pound, which the farmer views as a profitable price. To hedge the entire crop, which is expected to weigh 150,000 pounds, at the best price, Jarvis should:
Answer: Sell four December coffee future contracts at $2.00 per pound
Explanation:
Based on the scenario in the question, the number of contracts that is required for hedging the entire crop will be gotten by dividing the total number of crops by the pounds that are available in one contract. This will be:
= 150,000/37,500
= 4 contracts
Therefore, the answer will be for Jarvis to sell four December coffee future contracts at $2.00 per pound
Nazim also recently bought bonds with a clause stating that interest will be paid only when the company has enough earnings to pay for it. Nazim has invested i
Answer:
Income Bond
Explanation:
Bond is simply any Corporations written pledge to repay a written and specific amount with interest.
Income bond also known as adjustment bond and an a type of debt security.
It is that which the face value of the bond only is pledged to be paid to the investor, with any other payment usually coupon payments paid only if the issuing party involved has enough earnings to pay for it. It is often used when a company is reorganizing and coming out of a bankruptcy.
Tinsel Co.'s balances in allowance for uncollectible accounts were $70,000 at the beginning of the current year and $55,000 at year end. During the year, receivables of $35,000 were written off as uncollectible. What amount should Tinsel report as uncollectible accounts expense at year end
Answer:
$20,000
Explanation:
to determine the amount that Tinsel should report as bad debt expense (or uncollectible accounts expense), we must start with the beginning balance of allowance for doubtful accounts, and then we must subtract the account's ending balance and any bad debts write offs recorded during the year:
beginning account balance $70,000
- ending account balance ($50,000)
- write offs ($35,000)
total ($20,000)
If income increases by $100 and consumption increases by $75, the slope of the consumption function equals _____.
Answer:
3/4
Explanation:
The marginal propensity to consume mpc, is the slope of the consumption function and it is what this question requires us to find
We have income increase to be = 100 dollars
Then consumption increase = 75 dollars
MPC = increase in consumption ,75/increase in income 100
= 75/100
= 3/4
Therefore the marginal propensity to consume also called the slope is 3/4
On January 1, 2022 Crystal Company granted restricted stock units (RSUs) representing 32.5 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within five years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $7.0 per share on the grant date.
Required:
a. Determine the total compensation cost pertaining to the RSUs.
b. Prepare the appropriate journal entry to record the award of RSL's on January 1, 2021.
c. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.
d. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.
e. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.
f. Prepare the appropriate journal entry to record the lifting of restrictions on the RSL's and issuing shares at December 31, 2023.
Answer:
a. Total compensation = $32,500,000 * $7.0 = $227,500,000
b. No Journal entry to award of award of RSL's on January 1, 2021.
c. Date Account titles Debit Credit
21-12-2021 Compensation Expenses $45,500,000
($227,500,000/5)
Paid in capital - Restricted stock $45,500,000
d. Date Account titles Debit Credit
21-12-2022 Compensation Expenses $45,500,000
($227,500,000/5)
Paid in capital - Restricted stock $45,500,000
e. Date Account titles Debit Credit
21-12-2023 Compensation Expenses $45,500,000
($227,500,000/5)
Paid in capital - Restricted stock $45,500,000
f. Date Account titles Debit Credit
21-12-2023 Paid in capital - Restricted stock $227,500,000
Common stock ($32,500,000 * 1) $32,500,000
Paid in capital - Excess of par balance $195,000,000
Bigelow has a levered cost of equity of 14.29% and a pretax cost of debt of 7.23%. The required return on the assets is 11%. What is the firm's debt-equity ratio based on MM Proposition II with no taxes?
Answer:
0.873
Explanation:
Given that
Cost of equity, RS = 14.29% = 0.1429
Required return on assets = 11% = 0.11
Cost of debt = 7.23% = 0.0723
Then we can calculate the firm's debt equity ratio by using the relation
0.1429 = 0.11 + B/S(0.11 - 0.0723)
0.1429 = 0.11 + B/S(0.0377)
B/S(0.0377) = 0.1429 - 0.11
B/S(0.0377) = 0.0329
B/S = 0.0329 / 0.0377
B/S = 0.873
Therefore, the debt equity ratio is 0.873
Nanometrics, Inc. has a beta of 3.15. If the market return is expected to be 10 percent and the risk-free rate is 3.5 percent, what is Nanometrics required return
Answer:
23.975%
Explanation:
Calculation for Nanometrics required return
Using this formula
Required return = Risk free rate + (Beta*(Market rate - Risk free rate))
Where,
Risk free rate =3.5%
Beta=3.15%
Market rate =10%
Let plug in the formula
Required return = 3.5% +(3.15*(10%-3.5%)
Required return = 3.5% +(3.15*6.5%)
Required return = 3.5% + 20.475%
Required return = 23.975%
Therefore Nanometrics required return will be 23.975%
On January 1, 2020, Ivanhoe Company purchased 12% bonds, having a maturity value $325,000 for $349,639.81. The bonds provide the bondholders or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $347,400 2023 $334,900 2021 $333,800 2024 $325,000 2022 $332,800 (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the joumal entries to record the interest revenue and recognition of fair value for 2020. (c) Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, e.g. 2,525.25.
Answer:
a. Ivanhoe Company
Journal Entries
Date Particulars and Explanation Debit Credit
1-Jan-20 Investment in Bond $325,000
Premium on bond investment $24,639.81
To Cash $349,639.81
(Being investment in bond recorded)
b. Ivanhoe Company
Journal Entries
Date Particulars and Explanation Debit Credit
31-Dec-20 Interest receivables $39,000
To Interest revenue $34,963.98
($349,639.81*10%)
To Premium on bond investment $4,036.02
(Being revenue recognition for bond interest
and premium amortized)
31-Dec-20 Fair value adjustment $1,796.21
To Unrealized holding gain or loss (OCI) $1,796.21
[$347,400 - ($349,639.81 - $4,036.02)]
(To record adjustment fair value)
c. Ivanhoe Company
Journal Entries
Date Particulars and Explanation Debit Credit
31-Dec-21 Unrealized holding gain or loss $9,160.38
To Fair value adjustments $9,160.38
([$349,639.81 - $4,036.02 - $4,439.62
+ $1,796.21) - $333,800]
(To record adjustment fair value)
When a company collects sales tax from a customer, the event results in a(n) ________ in Cash and a(n) ________ in Sales Tax Payable.
a. increase; decrease
b. increase; increase
c. decrease; decrease
d. decrease; increase
Answer:
The correct option is option (b) increase; increase
Explanation:
Since the company collect the sales tax from a customer so here the cash is received that means cash is increased while on the other hand the sales tax payable is a liability so it is also increased. Moreover, the cash has the debit balance while on the other hand the liabilities has the credit balance
hence, the option (b) is correct
upstate bank is offering long-term certificates of deposit with a face value of $1000. bank customers can buy thece cds today for $67,000 and will receive the
Answer: 2.70%
Explanation:
Proper question is;
Upstate bank is offering long-term certificates of deposit with a face value of $100,000. Bank customers can buy these CDs today for $67,000 and will receive the $100,000 in 15 years. What interest rate is the bank paying on these CDs.
The formula to calculate rate is;
= (Future Value / Present Value) ^ 1/15 - 1
= (100,000 / 67,000) ^ 1/15 - 1
= 0.0270581026212
= 2.70%