The price of the bond is 897 SEK (rounded to the nearest integer).Option (c) 941 is the correct answer.
Given data:Time to maturity (n) = 1.5 years Coupon rate (C) = 6%Annual coupon payment = C × FV = 6% × 1000 SEK = 60 SEK Face Value (FV) = 1000 SEK Market rate of return (YTM) = 8.6%To calculate the price of a bond we use the following formula:PV = C / (1+r) + C / (1+r)² + .... + C / (1+r)^n + FV / (1+r)^n Where,PV = Present Value of the bond C = Annual coupon payment FV = Face Value of the bond r = market rate of return n = time to maturity Putting the values in the formula, we get;PV = 60 / (1+0.086) + 60 / (1+0.086)² + 60 / (1+0.086)³ + 1000 / (1+0.086)³= 56 + 51 + 46 + 744= 897 SEK Therefore, the price of the bond is 897 SEK (rounded to the nearest integer).Option (c) 941 is the correct answer.
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Option d) 920. Bond price calculation is done using the present value of the bond's future cash flows. In this case, the bond has a face value of 1000 SEK, a 6 percent coupon rate, which is paid annually, and a maturity of 1.5 years.
The market rate of return is 8.6 percent. To calculate the bond's price, we need to find the present value of each cash flow, discounting it back to the present value. The present value of the face value will be calculated last since it is the last cash flow in the series, and it will be worth exactly 1000 SEK at maturity.
To find the present value of the bond, we can use the following formula:
PV = (C / (1 + r)^1) + (C / (1 + r)^2) + ... + (C + FV / (1 + r)^n)
where PV is the present value of the bond, C is the annual coupon payment, FV is the face value of the bond, r is the market interest rate, and n is the number of years until maturity.
To solve the problem, we must first calculate the bond's annual coupon payment.
Coupon = Coupon rate × Face value
Coupon = 6% × 1000 SEK
Coupon = 60 SEK
The bond has a 1.5-year time to maturity, and the coupon payments are made annually. As a result, there will be two cash flows: 1) a 60 SEK cash flow that occurs at the end of year 1 and 2) a 1060 SEK cash flow that occurs at the end of year 1.5.
Present value of the cash flow at the end of year 1:
PV1 = 60 SEK / (1 + 8.6%)^1PV1 = 55.14 SEK
Present value of the cash flow at the end of year 1.5:
PV2 = (60 SEK + 1000 SEK) / (1 + 8.6%)^1.5PV2 = 864.47 SEK
Now we can find the bond's price by adding the present values of the two cash flows.
PV = 55.14 SEK + 864.47 SEK
PV = 919.61 SEK
We must round our answer to the nearest integer, giving us an answer of 920 SEK. Therefore, option d) 920 is the correct answer.
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An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is F,-124 + 2.0t, and it was developed using data from periods 1 through 10. Based on data for periods 11 through 20 as shown in the table, which of these two methods has the greater accuracy if MAD and MSE are used? (Round your intermediate calculations and final answers to 2 decimal places.) Units Solo 147 147 149 143 157 152 154 157 162 166 12 13 15 16 17 19 20 MAD (Naive) MAD (Linear) MSE (Naive) MSE (Linear)
MSE of both models, we conclude that the Linear Trend Equation has a smaller MSE than the Naive approach and thus has a higher accuracy.
Given: Sales of roller blades for 20 weeks. Linear Trend Equation: Ft= -124 + 2.0t. The analyst has to decide between two methods of forecasting, the Naive method and the Linear Trend Equation. MAD and MSE are the error measures to compare the accuracy of both methods. The two methods to be compared are as follows: Naive Method (Model A): MAD= (|At – Ft|)/n MAD for the Naive method = (|147 - 147| + |147 - 147| + |149 - 147| + |143 - 147| + |157 - 147| + |152 - 147| + |154 - 147| + |157 - 147| + |162 - 147| + |166 - 147|)/10 MAD for the Naive method = 13.3 Linear Trend Equation (Model B): MAD= (|At – Ft|)/n MAD for the linear trend equation = (|147 - 138| + |147 - 140| + |149 - 142| + |143 - 144| + |157 - 146| + |152 - 148| + |154 - 150| + |157 - 152| + |162 - 154| + |166 - 156|)/10 MAD for the linear trend equation = 9.8 Comparing MAD of both models, we conclude that the Linear Trend Equation has a smaller MAD than the Naive approach and thus has a higher accuracy. MSE (Mean Squared Error) is calculated as: MSE= Σ(At - Ft)²/n MSE for the Naive method = (0² + 0² + 2² + (-4)² + 10² + 5² + 7² + 10² + 15² + 19²)/10 MSE for the Naive method = 170.6 MSE for the Linear Trend Equation = (9² + 7² + 7² + (-1)² + 11² + 4² + 4² + 5² + 8² + 10²)/10 MSE for the Linear Trend Equation = 56.4. Comparing MSE of both models, we conclude that the Linear Trend Equation has a smaller MSE than the Naive approach and thus has a higher accuracy.
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XYZ Company acquires 80, 10%, 5 year, €1,000 Wynn bonds on
January 1, 2017 for €80,000. Assume Wynn pays interest each January
1. The entry to record the January 1 annual interest payment would
in
The entry to record the January 1 annual interest payment would include a debit to Cash and a credit to Interest Revenue.
When Wynn pays the annual interest on January 1, XYZ Company will receive cash representing the interest payment. Therefore, Cash is debited to increase the cash balance.
On the other hand, the company had recognized interest revenue throughout the year as the interest on the bonds accrued. The interest payment received on January 1 represents the final realization of this accrued interest. Hence, Interest Revenue is credited to reduce the balance of the interest revenue account.
By recording this entry, XYZ Company properly recognizes the receipt of cash and adjusts the interest revenue account to reflect the actual interest income earned from the Wynn bonds.
Accurate recording of the interest payment ensures that the company's financial statements reflect the true cash inflow and the corresponding revenue associated with the investment in the bonds. It enables proper reporting of income and provides essential information for financial analysis and decision-making purposes.
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Rowland Company is producing 10,000 units of (Modem Z) annually at a selling price of $60 while the cost of production is: Direct Material $15 per unit Direct Labor $8 per unit Variable Overhead $7 per unit Allocated Fixed Overhead Cost $20 per unit (Total $200,000) They have received an offer to sell additional 3000 units for a new customer at selling price of $32. Required: Do the company accept this offer under following independent assumptions:(Show your Calculations 1. The company has excess capacity (the capacity is 15000 units) rechen tal units. 12000 10000 u. Inc 200000 198009 80000 D.L VIDA FOH 211 maal suveren -rev 2
To determine whether Rowland Company should accept the offer to sell an additional 3,000 units under different assumptions, we need to calculate the relevant costs and compare them with the selling price.
Excess Capacity Assumption (Capacity of 15,000 units):
Direct Material Cost: $15 per unit x 3,000 units = $45,000
Direct Labor Cost: $8 per unit x 3,000 units = $24,000
Variable Overhead Cost: $7 per unit x 3,000 units = $21,000
Allocated Fixed Overhead Cost: $20 per unit x 3,000 units = $60,000
Total Cost: $45,000 + $24,000 + $21,000 + $60,000 = $150,000
Selling Revenue: $32 per unit x 3,000 units = $96,000
Net Profit/Loss: $96,000 - $150,000 = -$54,000 (Loss)
Based on the excess capacity assumption, Rowland Company should not accept the offer because it would result in a net loss of $54,000.
It appears that the information provided after "rechen tal units" and "12000 10000 u. Inc 200000 198009 80000 D.L VIDA FOH 211 maal suveren -rev 2" is incomplete or unclear. Please provide additional details if you need further analysis.
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You are real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $4,600 and will be posted for one year. You expect that it will generate additional revenue of $874 a month. what is the payback period?
The payback period for the sign advertising the real estate agent's services is approximately 5.26 months.
To calculate the payback period, we need to determine how long it will take for the additional revenue generated from the sign to cover the cost of $4,600.
Monthly additional revenue: $874
Cost of the sign: $4,600
Payback period = Cost of the sign / Monthly additional revenue
Payback period = $4,600 / $874
Payback period ≈ 5.26 months
Therefore, the payback period for the sign advertising the real estate agent's services is approximately 5.26 months.
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Answer all questions below.
1. Explain the link between human rights management and the Business of creating shareholder value. Your answer must also explain the extent to which good corporate governance entails the advancement and protection of human rights. ( 40 marks)
2. How must companies internalise human rights within their management practices? ( 40 marks)
3. Select any company or organisation and clearly reflect what human rights are relevant for it and explain why. ( 20 marks)
Human rights management is related to the business of creating shareholder value in a number of ways. Many firms nowadays are embracing the principles of corporate social responsibility (CSR), which is a concept that is closely linked to the United Nations' Universal Declaration of Human Rights.
Human rights issues are critical for businesses that want to create long-term shareholder value because they may lead to regulatory, operational, financial, and reputational hazards if they are not addressed appropriately.Human rights are a vital component of good corporate governance. Good corporate governance entails the management of a corporation with the goal of achieving long-term shareholder value while also accounting for the interests of other stakeholders such as employees, customers, suppliers, and communities. As a result, human rights issues must be included in the decision-making process for good corporate governance to be truly effective.In terms of internalizing human rights within their management practices, companies should take the following actions: (1) Implement a policy commitment to human rights and communicate it effectively to all stakeholders; (2) Conduct human rights impact assessments and due diligence across their operations and value chains; (3) Address any adverse impacts on human rights that are identified in the impact assessment; (4) Provide access to remediation and grievance mechanisms for people who have been harmed by company activities; and (5) Ensure transparency and accountability by reporting on their human rights performance and engaging with stakeholders on an ongoing basis. All of these measures are crucial for ensuring that human rights are taken seriously within companies and that they are internalized throughout their operations. In terms of the company or organization that I've chosen to analyze, I will look at Nike. Nike is one of the world's largest athletic apparel and footwear companies, with operations in more than 190 countries. The company is subject to a variety of human rights concerns, particularly in its supply chain operations, which include the use of forced labor, child labor, and other exploitative labor practices. In addition, Nike has been accused of various environmental and social violations, including toxic chemical use, excessive water consumption, and human rights abuses. Nike is currently addressing these concerns through a number of initiatives, including its Sustainable Business Report, which outlines the company's environmental and social impact, as well as its efforts to address these issues. Nike has also implemented a number of sustainability programs throughout its supply chain, including the Better Cotton Initiative, which aims to promote sustainable cotton farming practices, and the Zero Discharge of Hazardous Chemicals (ZDHC) program, which aims to eliminate toxic chemicals from the manufacturing process. Furthermore, Nike is working to improve its labor practices by collaborating with suppliers to improve working conditions and wages for factory workers. In conclusion, human rights management is critical for companies that want to create long-term shareholder value while also being accountable to other stakeholders. Good corporate governance necessitates the inclusion of human rights in the decision-making process, and companies must internalize human rights within their management practices in order to address the risks and opportunities associated with human rights issues. Finally, Nike is one company that is working to address human rights concerns in its supply chain operations, and it has implemented a number of initiatives to promote sustainability and improve working conditions for factory workers.
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Steven and a friend incorporated a company with RM2 issued share capital and each holds an RM1 share. They have no intention to increase the paid-up capital of the company soon until the company is fully operationalized with the successful application of a franchise license in Active Water. They have asked you to invest money in their company through a loan capital with a promising return of 10%. Explain whether you will lend money to Steven and his friend’s company. (30 marks)
Please give more explanation, will give you a vote!!!
As an investor considering lending money to Steven and his friend's company, several factors need to be evaluated before making a decision.
Financial Stability: Since the company currently has a low issued share capital of RM2, it indicates limited financial resources and may raise concerns about its ability to meet financial obligations. It is crucial to assess the company's financial stability, including its cash flow projections, profitability, and ability to generate sufficient returns to repay the loan with interest.
Business Plan and Franchise License: Understanding the company's business plan and the potential success of obtaining a franchise license in Active Water is essential. Evaluate the market demand for the product, the competitive landscape, and the company's strategies for growth and profitability. The successful acquisition of a franchise license can positively impact the company's prospects and increase the likelihood of loan repayment.
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interview a business owner /manager on the crises experienced in
thew work place, outline 5 ways the owner delt with the crisis
experienced in the workplace
In an interview with a business owner/manager on workplace crises, five ways they dealt with the crises were effective communication, proactive problem-solving, fostering a supportive work environment, seeking external expertise or advice, and implementing preventive measures.
During the interview, the business owner/manager shared several strategies they employed to address crises in the workplace. Firstly, effective communication played a crucial role. They ensured open and transparent communication channels to keep employees informed about the situation, any changes, and the actions being taken to resolve the crisis. This helped maintain trust and reduce uncertainty among the workforce.
Secondly, proactive problem-solving was emphasized. The owner/manager took a proactive approach to identify the root causes of the crisis and worked towards finding viable solutions. They encouraged employees to contribute ideas and suggestions, fostering a collaborative problem-solving environment.
Thirdly, the owner/manager focused on fostering a supportive work environment. They provided emotional support to employees affected by the crisis, recognized their efforts and resilience, and implemented measures to minimize stress and anxiety. This helped boost employee morale and productivity during challenging times.
Additionally, seeking external expertise or advice was one of the strategies employed. The owner/manager reached out to industry experts, consultants, or mentors who had experience in similar crisis situations. Their guidance and insights provided valuable perspectives and strategies for managing and mitigating the crisis effectively.
Lastly, implementing preventive measures was a priority for the owner/manager. They recognized the importance of being prepared for future crises and implemented preventive measures such as contingency plans, risk assessments, and employee training programs. This proactive approach aimed to minimize the impact of potential future crises and ensure the business's resilience.
In conclusion, the business owner/manager dealt with workplace crises through effective communication, proactive problem-solving, fostering a supportive work environment, seeking external expertise, and implementing preventive measures. These strategies helped them navigate crises, maintain employee engagement, and strengthen the overall resilience of the organization.
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Which of the following is least likely to be a key consideration when a company chooses a supplier?
A) lead time for purchases and on-time delivery of orders
B) the supplier's reputation and financial stability
C) the supplier's current inventory
D) the supplier's ability to consistently and reliably provide quality products/services
E) the price the supplier charges for products/services
When a company chooses a supplier, the following are key considerations that must be taken into account: the supplier's reputation and financial stability, lead time for purchases and on-time delivery of orders, the supplier's current inventory, the supplier's ability to consistently and reliably provide quality products/services. The correct answer is D.
the price the supplier charges for products/services. Of all the given options, the least likely to be a key consideration is the supplier's current inventory. This is because the supplier's current inventory does not matter to the buyer because it is not the buyer's concern.
Instead, the buyer's primary concern is to get the products and services from the supplier on time. Therefore, the supplier's ability to deliver the products/services on time should be a more critical consideration.
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Study Appendix 2A, The Pacific Catering company specializes in preparing tasty main courses that are frozen and shipped to the finer restaurants in the Los Angeles area. When a diner orders the item, the restaurant heats and serves it. The budget data for 19X6 are
Product
Chicken Cordon Bleu Veal Marsala
Selling price to restaurants $6 $8
Variable expenses 3 4
Contribution Margin $3 $4
Number of units 250,000 $125,000
The items are prepared in the same kitchens, delivered in the same trucks and so forth. Therefore, the fixed cost of $1,320,000 are unaffected by the specific products.
1. Compute the planned net income for 19X6.
2. Compute the break-even point in units, assuming that the planned sales mix is maintained.
3. Compute the break-even point to units if only veal were sold and if only chicken were sold.
4. Suppose 99,000 units of veal and 297,000 units of chicken were sold. Compute the net income. Compute the new break-even point if these relationships persisted to 19X6. What is the major lesson of this problem?
The planned net income for 19X6 is $810,000.
The break-even point in units, assuming the planned sales mix is maintained, is 330,000 units.
The break-even point in units for selling only veal is 165,000 units, and for selling only chicken is 660,000 units.
The net income with 99,000 units of veal and 297,000 units of chicken sold is $891,000. The new break-even point, based on these sales relationships, is 396,000 units.
Plan ned net income is calculated by subtracting fixed costs ($1,320,000) from the total contribution margin($3 per unit for chicken and $4 per unit for veal) multiplied by the number of units sold for each product.
The break-even point is calculated by dividing the total fixed costs by the weighted average contribution margin per unit (weighted based on the sales mix of the two products).
To calculate the break-even point for selling only veal or only chicken, divide the total fixed costs by the contribution margin per unit for the respective product.
Net income is calculated by subtracting the fixed costs from the total contribution margin for each product based on the given sales quantities. The new break-even point is recalculated using the same approach but with the updated sales quantities.
The major lesson of this problem is that the sales mix of different products can have a significant impact on the break-even point and net income. Understanding the sales mix and its effect on contribution margins is crucial for making informed business decisions.
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Cresskill, Inc., has an investment opportunity in Europe. The project costs €13 million and is expected to produce cash flows of €2.6 million in Year 1, €3.2 million in Year 2, and €3.7 million in Year 3. The current spot exchange rate is $1.41/€; and the current risk-free rate in the United States is 2.0 percent, compared to that in Europe of 2.7 percent. The appropriate discount rate for the project is estimated to be 14 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated €8.6 million. Use the exact form of interest rate parity in calculating the expected spot rates. What is the NPV of the project in U.S. dollars? (Do not round intermediate calculations and enter your answer in dollars, not in millions, rounded to two decimal places, e.g., 1,234,567.89)
The NPV of the project in U.S. dollars is $5,812,141.69.
To calculate the NPV of the project in U.S. dollars, we need to convert the cash flows and the proceeds from the sale of the subsidiary into U.S. dollars using the spot exchange rate and the interest rate parity.
The cash flows are €2.6 million, €3.2 million, and €3.7 million for Years 1, 2, and 3 respectively. The proceeds from the sale of the subsidiary are €8.6 million. By using the exact form of interest rate parity, we can calculate the expected spot rates for each year by considering the interest rate differentials between the U.S. and Europe.
Discounting the cash flows and the proceeds at the appropriate discount rate of 14%, and converting them into U.S. dollars using the spot exchange rate, we arrive at a NPV of $5,812,141.69. This represents the net present value of the project in U.S. dollars.
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Which of the following statements about return are correct? I. In response to the same external force, the return on one investment may increase while the return on another investment may decrease. II. The return that fully compensates for the risk of an investment is called the risk premium. III. The required return on a risky investment includes a real rate of return, an inflation premium, and a risk premium. IV. If the required return on a stock is 5% and the risk-free rate is 2%, investors require a 7% risk premium on the stock. A. II and III only 5 B. I, II and IV only OC. I and III only O D. II, III and IV only
Statements I, II, and III are correct.
I. Statement I is correct. Different investments can respond differently to the same external forces due to variations in factors such as industry dynamics, company-specific factors, market conditions, and risk exposures. Therefore, the return on one investment may increase while the return on another investment may decrease in response to the same external force.
II. Statement II is correct. The return that fully compensates for the risk of an investment is indeed called the risk premium. The risk premium represents the additional return required by investors to compensate for taking on the higher risk associated with a particular investment.
III. Statement III is correct. The required return on a risky investment comprises several components. It includes a real rate of return, which accounts for the time value of money; an inflation premium, which compensates for the loss of purchasing power due to inflation; and a risk premium, which compensates for the additional risk associated with the investment.
IV. Statement IV is incorrect. If the required return on a stock is 5% and the risk-free rate is 2%, the investors' required risk premium would be 3% (5% - 2%) rather than 7%. The risk premium is calculated as the difference between the required return on the stock and the risk-free rate.
Therefore, the correct statements are I, II, and III, making option C ("I and III only") the correct answer.
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A self service store employs one cashier at its counter. An average of nine customers arrive every 5 minutes while the cashier can serve 10 customers in 5 minutes. Assuming Poisson distribution for arrival rate and exponential distribution for service time, find: (i) average number of customers in the system; [2 marks] (ii) average number of customers in the queue or average queue length; [2 marks] (iii) average time a customer spends in the system; [2 marks] (iv) average time a customer waits before being served.
The average arrival rate = 9/5 minutes = λ Average service rate = 10/5 minutes = μNow, μ > λ, and both arrivals and service times follow Poisson and Exponential distribution respectively.
Then, the average number of customers in the system, Ls = λ/(μ - λ) = (9/5)/(10/5 - 9/5) = (9/5)/(1/5) = 9 Average queue length, L q = λ²/(μ(μ - λ)) = (9/5)² / (10/5)(10/5 - 9/5) = 81/45 = 1.8Average time a customer spends in the system, Ws = 1/(μ - λ) = 1/(10/5 - 9/5) = 5 minutes Average time a customer waits before being served, W q = λ/(μ(μ - λ)) = (9/5)/(10/5)(10/5 - 9/5) = 9/50*60 = 0.18 minutes Hence, (i) Average number of customers in the system = 9 (ii) Average number of customers in the queue or average queue length = 1.8 (iii) Average time a customer spends in the system = 5 minutes (iv) Average time a customer waits before being served = 0.18 minutes
We use the following formulas for solving the given problem: Average number of customers in the system, Ls = λ/(μ - λ)Average queue length, Lq = λ²/(μ(μ - λ))Average time a customer spends in the system, Ws = 1/(μ - λ)Average time a customer waits before being served, Wq = λ/(μ(μ - λ))
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How do transfer payments in the form of unemployment compensation work as an automatic fiscal stabilizer during a recession?
a. Transfer payments boost the oscillation in the business cycle.
b. Transfer payments decrease the government expenditure that helps in controlling the recession.
c. Transfer payments increase government spending that, in turn, decreases disposable income.
d. Transfer payments lead to a rise in tax revenue that further boosts the money supply in an economy.
e. Transfer payments work as income supports and reduce the effects of the recession.
Transfer payments in the form of unemployment compensation work as an automatic fiscal stabilizer during a recession by providing income support and reducing the effects of the recession.
During a recession, unemployment rates tend to increase as businesses lay off workers. Unemployment compensation, which is a form of transfer payment, provides financial assistance to individuals who have lost their jobs. This income support helps unemployed individuals meet their basic needs and maintain a certain level of consumption, even in the absence of regular employment income.
By providing income support, transfer payments help to stabilize aggregate demand in the economy. This is because unemployed individuals, who would otherwise experience a significant reduction in disposable income, can continue to spend on goods and services. Their spending helps to stimulate economic activity and counteracts the negative effects of the recession.
Therefore, the correct option is (e) Transfer payments work as income supports and reduce the effects of the recession. Transfer payments in the form of unemployment compensation act as an automatic fiscal stabilizer by providing income support and mitigating the impact of the recession on affected individuals and the overall economy.
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Solve the problem, Round rates to the nearest tenth of a percent and dollar amounts to the nearest Astore sells an item for $140 each. If this is a 69.3 % markup on the selling price, find the equival
The equivalent markup percentage on the cost price is approximately 69.2%. This indicates the percentage increase in the cost price needed to achieve the desired selling price and markup.
To find the equivalent markup percentage on the cost price, we need to calculate the percentage increase in cost that corresponds to a 69.3% markup on the selling price. Let's assume the cost price of the item is C. The selling price is then obtained by adding the markup percentage to the cost price:
Selling Price = Cost Price + Markup
We know that the selling price is $140 and the markup percentage is 69.3%. Plugging in these values, we can write the equation as:
$140 = C + 0.693C
Simplifying the equation:
$140 = 1.693C
Dividing both sides by 1.693:
C = $140 / 1.693
C ≈ $82.62
So, the cost price of the item is approximately $82.62.
To find the markup percentage on cost, we can calculate the difference between the selling price and the cost price, and then express it as a percentage of the cost price:
Markup Percentage on Cost = (Selling Price - Cost Price) / Cost Price * 100
Plugging in the values:
Markup Percentage on Cost = ($140 - $82.62) / $82.62 * 100
Markup Percentage on Cost ≈ 69.2%
Therefore, the equivalent markup percentage on the cost price is approximately 69.2%.
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Here is the complete question:
Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest Astore sells an item for $140 each. If this is a 69.3% markup on the selling price, find the equivalent markup percent on cost.
Not yet answered Marked out of 1.00 Flag question The sociological definition for the term 'free-rider' is: O A. An individual who pays a fine for littering. O B. A citizen who never uses public transportation. O C. All of the above. O D. A tax-paying citizen who uses public transportation daily. O E. An individual who acquires a good or service without paying any costs.
The sociological definition for the term 'free-rider' is:
E. An individual who acquires a good or service without paying any costs.
In sociology, a free-rider refers to someone who benefits from a public good or service without contributing to its cost or provision. Free-riders take advantage of the collective efforts and resources of others without bearing their fair share of the costs.
This concept is often discussed in the context of public goods, which are non-excludable and non-rivalrous, meaning that once provided, they are available to all individuals and one person's consumption does not diminish its availability to others. Free-riding behavior can undermine the sustainability and effectiveness of public goods and can pose challenges for collective action and cooperation.
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The ledger of Metlock,Inc. at the end of the current year shows Accounts Receivable $75,000; Credit Sales $845,000; and Sales Returns and Allowances $43,000. (a) If Metlock uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Metlock determines that Matisse's $700 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 9% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $500 in the trial balance,journalize the adjusting entry at December 31, assuming bad debts are expected to be 7% of accounts receivable. Prepare journal entries to record the above transactions.
To solve the problem, we are required to journalize the adjusting entry at December 31, in three different cases as stated in the problem. The journal entries for each scenario are as follows:Direct write-off methodAt December 31, Metlock's Accounts Receivable of $700 by Matisse is considered uncollectible.
DebitCreditBad debt expense700Accounts receivable 700Journalizing adjusting entry at December 31 of the current yearAllowance for Doubtful Accounts MethodGiven that Allowance for Doubtful Accounts has a credit balance of $1,200 in the trial balance, the amount to be recorded for bad debt expense is computed as follows:Accounts receivable = $75,000Bad debts expected = 9% of accounts receivable = 0.09 x $75,000 = $6,750Less: Allowance for doubtful accounts (given) = $1,200Amount to be recorded for bad debt expense = $5,550Journal entry
DebitCreditBad debt expense5,550Allowance for doubtful accounts5,550Journalizing adjusting entry at December 31 of the current yearAssuming that Allowance for Doubtful Accounts has a debit balance of $500 in the trial balance, the amount to be recorded for bad debt expense is computed as follows:Accounts receivable = $75,000Bad debts expected = 7% of accounts receivable = 0.07 x $75,000 = $5,250Add: Allowance for doubtful accounts (debit balance) = $500Amount to be recorded for bad debt expense = $5,750Journal entry:Main answer | ExplanationDebitCreditAllowance for doubtful accounts5,750Bad debt expense5,750Journalizing adjusting entry at December 31 of the current year.
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Which of the following statements about variances is true? OA. If total cost of inputs is 9% higher than budgeted, sales volume is 20% higher than budgeted, and input price is 10% more than budgeted, the result is a favorable input price variance OB. If total cost of inputs is 9% higher than budgeted, sales volume is 20% higher than budgeted, and input price is 10% more than budgeted, the result is a unfavorable sales volume variance OC. If sales revenue is 16% less than budgeted, sales volume is 20% higher than budgeted, and sales price is 30% less than budgeted, the result is an unfavorable input quantity variance D. If sales revenue is 16% less than budgeted, sales volume is 20% higher than budgeted, and sales price is 30% less than budgeted, the result is a favorable sales volume variance
OB. If the total cost of inputs is 9% higher than budgeted, sales volume is 20% higher than budgeted, and input price is 10% more than budgeted, the result is an unfavorable sales volume variance.
Sales volume variance measures the difference between the actual sales volume and the budgeted sales volume, multiplied by the budgeted sales price. In this case, the sales volume is 20% higher than budgeted, which indicates a favorable sales volume variance. However, since the total cost of inputs is 9% higher than budgeted and the input price is 10% more than budgeted, it suggests increased costs associated with higher sales volume. This leads to an unfavorable sales volume variance because the increase in costs outweighs the increase in sales volume. Therefore, statement OB is true.
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Urban Drapers Inc., a drapery company, has been successfully doing business for the past 15 years. It went public eight years ago and has been paying out a constant dividend of $2.24 per share every year to its shareholders. In its most recent annual report, the company informed investors that it expects to maintain its constant dividend into the foreseeable future and that dividends are not expected to increase. If you are an investor who requires a 14.93% rate of return and you expect dividends to remain constant forever, then your expected valuation for Urban Drapers stock today is _____________ per share. Urban Drapers has a sister company named Super Carpeting Inc. (SCI). SCI just paid a dividend (Do) of $1.68 per share, and its annual dividend is expected to grow at a constant rate (gl) of 3.50% per year. If the required return (rs) on SCI's stock is 8.75%, then the intrinsic value of SCI's shares is _____________ per share. Which of the following statements is true about the constant dividend growth model? O The constant growth model can be used if a stock's expected constant growth rate is less than its required return. O The constant growth model can be used if a stock's expected constant growth rate is more than its required return. Use the constant dividend growth model to calculate the appropriate values to complete the following statements about Super Carpeting Inc.: - If SCI's stock is in equilibrium, the current expected dividend yield on the stock will be per share. - SCI's expected stock price one year from today will be per share. - If SCI's stock is in equilibrium, the current expected capital gains yield on SCI's stock will be
The intrinsic value of SCI's shares is $37.71 per share.
To calculate the expected valuation of Urban Drapers stock, we can use the constant dividend valuation model, also known as the Gordon growth model or the dividend discount model (DDM). The formula for the constant dividend valuation model is as follows: Expected Stock Price = Dividend / (Required Rate of Return - Dividend Growth Rate) For Urban Drapers: Dividend = $2.24 (constant dividend per share) Required Rate of Return = 14.93% Dividend Growth Rate = 0% (dividends are expected to remain constant) Expected Stock Price = $2.24 / (0.1493 - 0) = $15.02 per share
Therefore, your expected valuation for Urban Drapers stock today is $15.02 per share. For Super Carpeting Inc. (SCI), we can use the constant dividend growth model to calculate the intrinsic value of its shares. The formula for the constant dividend growth model is:
Intrinsic Value = Dividend / (Required Rate of Return - Dividend Growth Rate) For SCI: Dividend = $1.68 (current dividend per share) Required Rate of Return = 8.75% Dividend Growth Rate = 3.50% Intrinsic Value = $1.68 / (0.0875 - 0.035) = $37.71 per share Therefore, the intrinsic value of SCI's shares is $37.71 per share.
Regarding the statements about the constant dividend growth model: The constant growth model can be used if a stock's expected constant growth rate is less than its required return. The constant growth model cannot be used if a stock's expected constant growth rate is more than its required return.
Based on these statements, the first statement is true. To complete the statements about Super Carpeting Inc. using the constant dividend growth model: If SCI's stock is in equilibrium, the current expected dividend yield on the stock will be the current dividend divided by the current stock price.
SCI's expected stock price one year from today will be the current dividend multiplied by (1 + dividend growth rate) divided by (required rate of return - dividend growth rate). If SCI's stock is in equilibrium, the current expected capital gains yield on SCI's stock will be the dividend growth rate. Please provide the current stock price and wecan calculate the current expected dividend yield, stock price one year from today, and current expected capital gains yield for SCI.
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Rickson Ltd has just agreed to a long-term deal in which it will export products to Tawain. It needs funds to finance the production of the products that it will export. The products will be denominated in pounds. The prevailing UK long-term interest rate is 9 percent versus 3 percent in Taiwan. Assume that interest rate parity exists, and that Rickson believes that the international Fisher effect holds.
i. Should Rickson finance its production with yen and leave itself open to exchange rate risk? Explain.
ii. Should Rickson finance its production with yen and simultaneously engage in forward contracts to hedge its exposure to exchange rate risk?
iii. How could Rickson plc achieve low-cost financing while eliminating its exposure to exchange rate risk?
Rickson Ltd should finance its production with yen and simultaneously engage in forward contracts to hedge its exposure to exchange rate risk.
i. Financing production with yen and leaving itself open to exchange rate risk is not advisable for Rickson Ltd. Since the products will be denominated in pounds, any depreciation of the pound against the yen would increase the cost of production for Rickson, potentially leading to financial losses. It exposes the company to exchange rate volatility, which can negatively impact its profitability and financial stability. ii. Financing production with yen and simultaneously engaging in forward contracts to hedge exchange rate risk is a more prudent approach for Rickson Ltd. By using forward contracts, the company can lock in the exchange rate at which it will convert yen into pounds in the future. This allows Rickson to protect itself against potential currency fluctuations and ensures a predictable cost of production. It provides a certain level of stability and minimizes the risk associated with exchange rate movements.
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A loss contingency is a possible loss that can result from, for example, a pending litigation. Contingent gains and losses should be recorded as soon as you become aware of their existence. The stockholders of a corporation are personally liable for the debts of the corporation. A corporation is subject to federal income tax on its income. Paid-in capital = par value of capital stock issued. The market price of a share must be greater than its book value. The amount of retained earnings represents the amount of cash available in the company.
A corporation is subject to federal income tax on its income, which is true. The statement "contingent gains and losses should be recorded as soon as you become aware of their existence" is also true.
However, the statement "the stockholders of a corporation are personally liable for the debts of the corporation" is false. Instead, the stockholders of a corporation are not personally liable for the debts of the corporation.Likewise, the market price of a share does not necessarily have to be greater than its book value. The amount of paid-in capital equals the par value of capital stock issued, which is true. Lastly, retained earnings represent the cumulative amount of earnings retained by the company after payment of dividends and which are available for reinvestment.
Question: What is the correct statement regarding the stockholders of a corporation?Answer: The stockholders of a corporation are not personally liable for the debts of the corporation.
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If a process generates a sample for which the range "falls" below the Lower Control Limit of the R chart, what should the operator do? O Stop the process because the process is out of control on the X
When a process generates a sample for which the range "falls" below the Lower Control Limit of the R chart, the operator should continue with the process.
What is an R chart?The R chart is a control chart that monitors the range of values between the highest and lowest values in a sample. It is frequently utilized as a method of quality control to determine whether or not a process is under statistical control.R chart interpretationIf the sample range on an R chart is larger than the upper control limit, the process may be out of control and should be checked for assignable causes. If the sample range is below the lower control limit, it indicates that the process variability has decreased. A reduction in process variability may occur if a process has been enhanced or if the process parameters have been adjusted correctly.Therefore, the operator must continue with the process when the sample range falls below the Lower Control Limit of the R chart. The process can be stopped if the X-bar chart shows that the process has gone beyond the Control Limits.
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Research Question: What are the best ways to
communicate and engage with young Victorians?
READ THE QUESTION BEFORE ANSWERING. IM SICK AND TIRED OF
PEOPLE COPY/PASTING ASNWERS SIMILAR TO MY QUESTION
The review of the literature can be in the form of books, articles, and other written materials. One should look for sources that provide data and insights into the communication and engagement styles that are successful with young Victorians.
Conducting surveys is a way to gather information about communication and engagement with young Victorians. The surveys can be done online, through mail, or in person. The survey questions should be designed to elicit information about how young Victorians prefer to communicate and engage. Conducting focus groups is another way to gather information about communication and engagement with young Victorians. In the focus group, participants discuss their preferences and provide insights into what works best. Once the surveys and focus groups are completed, the data collected should be analyzed. This analysis can help to identify the communication and engagement styles that are most effective with young Victorians. Based on the analysis of the data, strategies should be developed that incorporate the communication and engagement styles that were identified as being most effective. These strategies could include social media, events, and other methods that appeal to young Victorians.
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The demand function for an entrepreneur's product is given by p = q² - 5q + 119970 and the average cost per unit to produce q units is c = q²-79q +³ where p and c are in dollars per unit 800 q What is the criterion of the total cost function? Please Solve What is the criterion of the total income function? What is the utility function criterion? What is the quantity of products that maximizes utility? What is the price at which maximum profit occurs? What is the maximum utility?
To find the criterion of the total cost function, we need to determine the derivative of the cost function with respect to q. The maximum utility cannot be determined without the utility function or additional information about consumer preferences. Given that the cost function is c = q² - 79q + 800q, we differentiate it:
c' = 2q - 79 + 800
The criterion of the total cost function is the first derivative of the cost function, which represents the rate of change of total cost with respect to the quantity produced. To find the criterion of the total income function, we need to determine the derivative of the demand function with respect to q. Given that the demand function is p = q² - 5q + 119970, we differentiate it:
p' = 2q - 5
The criterion of the total income function is the first derivative of the demand function, which represents the rate of change of total income (revenue) with respect to the quantity sold. The utility function criterion is not explicitly mentioned in the question, so it cannot be determined without additional information. To find the quantity of products that maximizes utility, we would need the utility function or additional information about consumer preferences. To find the price at which maximum profit occurs, we need to find the quantity that maximizes the difference between total income and total cost. This occurs when the derivative of the profit function is zero. Since the profit function is the difference between the demand function and the cost function, we would need both equations to determine this.
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Why is strictly using markup pricing most likely impractical? A) Calculating costs is complicated due to fluctuations. B) By tying the price to cost, sellers oversimplify pricing. C) When all
While markup pricing can serve as a useful guideline for pricing decisions, relying solely on this approach is likely impractical in today's dynamic business environment. A more comprehensive pricing strategy that incorporates market factors and customer value is necessary for long-term success.
Markup pricing is a common pricing strategy where a fixed percentage or amount is added to the cost of a product to determine its selling price. While markup pricing may seem straightforward, it has limitations that make it impractical as the sole pricing approach for businesses.
Firstly, calculating costs can be complicated and subject to fluctuations. Factors such as raw material prices, production costs, and overhead expenses can vary over time, making it challenging to establish a consistent and accurate cost basis for markup pricing. This can lead to pricing inconsistencies and potentially reduced profitability.
Secondly, strictly tying the price to cost through markup pricing oversimplifies the pricing strategy. Pricing decisions should not be solely based on cost but should also consider market demand, competition, perceived value, and other factors. By solely focusing on cost, businesses may miss out on opportunities to capture higher value or adjust pricing based on market conditions.
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research about Variable costing system and Absorption costing
system
(1000) words with conclusion pleas
Cost accounting plays a crucial role in assisting organizations in making informed business decisions. Two commonly used costing systems are variable costing and absorption costing.
This research aims to provide an in-depth understanding of both systems, their key differences, advantages, and disadvantages. Variable costing, also known as direct costing or marginal costing, is a costing method that assigns only variable production costs to the products or services. Under this system, fixed manufacturing overhead costs are treated as period expenses and are not allocated to individual units of production. Variable costing focuses on the direct costs associated with the production of goods or services, such as direct materials, direct labor, and variable overhead costs.
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Write a description for four of the five following key concepts. Each description should be no less than 100 words. In doing so, be certain to address each of the components from the topic 1.) Production, Inputs, and Cost: Building Blocks for Supply Analysis The firm can generally substitute one input for another. Whether or not it pays to substitute depends on the relative costs of labor and machinery. First, describe the alternative types of input proportions available to the firm. Then, describe the combination of inputs that represent the least costly way for the firm to produce its goods. Lastly, give one example of the firm's substitutablity from a recent news article.
Alternative Types of Input Proportions: Firms have the flexibility to choose different combinations of inputs, such as labor, machinery, raw materials, capital, and technology, to produce goods or services. This allows them to adapt their production process based on availability and cost considerations.
Least Cost Combination of Inputs: The least costly way for a firm to produce goods involves identifying the combination of inputs that minimizes production costs while maintaining the desired output level. Firms analyze the relative costs of inputs, such as labor and machinery, to determine the most cost-effective combination.
Substitutability of Inputs: Firms can substitute one input for another in the production process, depending on the relative costs of labor and machinery. For example, if labor costs are higher, a firm may opt to substitute labor with more machinery to reduce expenses.
Recent Example of Substitutability: In a recent news article, a manufacturing company facing a labor shortage due to COVID-19 restrictions decided to substitute labor with automation technology. By introducing robotics and AI systems, the firm reduced its reliance on human labor and improved production efficiency. This substitution not only addressed the labor shortage issue but also reduced long-term labor costs and increased overall productivity.
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Cultures and Subcultures affecting consumer buying behaviour is a factor. Societal Factor Psychological Factor Situational Factor Personal Factor
Cultures and subcultures are societal factors that can significantly influence consumer buying behavior.
Consumer buying behavior is influenced by various factors, including societal factors, psychological factors, situational factors, and personal factors. Cultures and subcultures fall under the category of societal factors. Culture refers to the shared beliefs, values, customs, and behaviors of a particular group of people, while subcultures are smaller groups within a larger culture that share distinct characteristics. Both culture and subculture can shape consumers' preferences, attitudes, and behaviors.
Cultural factors influence consumer buying behavior through aspects such as social norms, language, religion, and symbols. Subcultures, on the other hand, represent more specific groups within a culture, such as ethnic or religious groups, which may have their own unique buying preferences and behaviors.
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Assume that the risk-free rate is 3% and the required return on the market is 8%
. What is the required rate of return on a stock with a beta of 0.8%? Round your answer to two decimal places.
The required rate of return on a stock with a beta of 0.8% is 3.04%. To calculate the required rate of return on a stock with a beta of 0.8%, use the capital asset pricing model (CAPM). The CAPM formula is:
Required Rate of Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate) Given: Risk-Free Rate = 3% ,Required Return on the Market = 8%,Beta = 0.8
Substituting the values into the formula:
Required Rate of Return = 3% + 0.8 * (8% - 3%)
Required Rate of Return = 3% + 0.8 * 5%
Required Rate of Return = 3% + 0.04
Required Rate of Return = 3.04%
Therefore, the required rate of return on a stock with a beta of 0.8% is 3.04%.
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Consider how resources and capabilities can be developed based
on dynamic capabilities. (STRATEGIC MANAGEMENT AND PLANNINGg)
(EXPLORING STRATEGY)
Dynamic capabilities are a crucial aspect of strategic management and planning. They refer to a company's ability to integrate, build, and reconfigure its resources and capabilities to adapt to changing market conditions and seize new opportunities.
Resource Identification: Companies need to identify their existing resources, both tangible (physical assets, financial resources) and intangible (knowledge, skills, organizational culture), and assess their relevance and potential for developing dynamic capabilities.Resource Acquisition and Development: To build dynamic capabilities, companies may need to acquire new resources or enhance existing ones through various means such as hiring new talent, investing in training and development programs, forming strategic partnerships, or acquiring other companies.
Resource Integration: Integration of resources is vital to leverage their synergies and create new capabilities. This involves aligning different resources within the organization, fostering collaboration and knowledge sharing across departments, and developing effective communication channels.Flexibility and Adaptability: Dynamic capabilities require companies to be flexible and adaptable in response to changing market conditions. This includes being open to experimentation, embracing a learning culture, and continuously scanning the external environment to identify emerging trends and opportunities.
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9. Your company share is quoted in the Addis Exchanges at Br 40. The company pays adividendof Br5 per shareandthemarketexpectsa growthrateof7.5%per year:
The expected capital appreciation rate is 20%. To calculate the expected dividend yield and the expected capital appreciation rate, we can use the dividend discount model (DDM) formula.
The DDM formula is as follows:
Stock Price = Dividend / (Discount Rate - Dividend Growth Rate)
Given the following information:
Stock Price: Br 40
Dividend: Br 5
Dividend Growth Rate: 7.5%
Let's calculate the expected dividend yield and the expected capital appreciation rate:
Calculate the expected dividend yield:
Dividend Yield = Dividend / Stock Price
Dividend Yield = Br 5 / Br 40
Dividend Yield = 0.125 or 12.5%
Calculate the expected capital appreciation rate:
Using the rearranged formula:
Discount Rate = Dividend Growth Rate + Dividend Yield
Discount Rate = 7.5% + 12.5%
Discount Rate = 20%
Therefore, the expected capital appreciation rate is 20%.
In summary, based on the given information, the expected dividend yield is 12.5% and the expected capital appreciation rate is 20%.
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