Which of these criticisms does the congresswoman in the video have about credit card interest rate hikes?
a. Rate hikes often exceed legal limits.
b. Consumers are never told what their rates really are.
c. All credit card issuers raise rates in lock step.
d. Rate hikes are often arbitrary.

Answers

Answer 1

The congresswoman in the video criticizes credit card interest rate hikes for being arbitrary. Option D is answer.

This means that the rate increases are not based on specific reasons or factors that justify the need for the hike. Instead, they are implemented without clear justification or explanation to the consumers. This lack of transparency and justification is a significant concern raised by the congresswoman. It suggests that credit card companies may be increasing rates arbitrarily, without a valid reason, which can negatively impact consumers and their financial well-being.

Options A, B, and C are not the main criticisms mentioned in the video. Option A refers to rate hikes exceeding legal limits, option B mentions consumers not being informed about their rates, and option C suggests that all credit card issuers raise rates in lockstep. While these may be valid concerns in the context of credit card interest rates, they are not specifically addressed by the congresswoman in the given video.

Option D is answer.

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when making an ethical analysis, you should get all the pertinent facts and thena. determine the affected. b. list options. c. search for precedents. d. make a decision

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When making an ethical analysis, it is important to take a systematic approach that involves a comprehensive assessment of all the relevant information. This typically involves gathering all the pertinent facts, including any relevant laws, regulations, and policies that may be applicable.

Once all the information has been collected, the next step is to determine who will be affected by the decision that is being made. This may include stakeholders such as employees, customers, shareholders, and the wider community. It is important to consider the potential impact that each option may have on these groups, as well as any potential consequences or risks that may arise.

After the affected parties have been identified, it is important to list out all possible options and alternatives that are available. This may include considering the various trade-offs and weighing the potential benefits and drawbacks of each option. It is also helpful to search for precedents that may provide guidance or insight into similar situations that have arisen in the past. This can help to identify best practices or potential pitfalls to avoid.

Finally, based on all the information and analysis that has been conducted, a decision should be made. This decision should be grounded in ethical principles and values, and should be communicated clearly and transparently to all parties who will be affected. Overall, an ethical analysis should be a thoughtful and deliberate process that prioritizes the well-being of all stakeholders involved.

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Changes in a company’s capital expenditures or fixed asset sales over time must: _______

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Changes in a company's capital expenditures or fixed asset sales over time must be analyzed to understand the company's investment strategy, growth plans, and financial health. Capital expenditures typically involve large investments in long-term assets such as property, equipment, or infrastructure. A decline in capital expenditures may indicate a company's reluctance to invest in growth opportunities, while an increase may signal a commitment to expanding operations or enhancing efficiency.

Fixed asset sales, on the other hand, reflect a company's ability to manage its assets and generate cash flow. A decline in fixed asset sales may suggest a lack of liquidity or weak demand, while an increase may indicate a focus on divesting underutilized assets.


Changes in a company's capital expenditures or fixed asset sales over time must be carefully monitored and analyzed to ensure proper financial management and maintain long-term business growth. By tracking capital expenditures, a company can assess its investments in new equipment, facilities, or other assets, while monitoring fixed asset sales helps determine if these assets are generating the desired return on investment. These financial indicators can also help identify trends or changes in business strategy, allowing management to make informed decisions about future investments and asset allocation. Overall, understanding and managing changes in capital expenditures and fixed asset sales is crucial for a company's financial stability and success.

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Holding all else constant, what effect would the following have on a company's P/E ratio? (highlight answer, delete others) (COME BACK) a. An increase in expected growth rate of earnings. Up Down No change b. A decrease in expected dividend payout ratio. Up Down No change c. An increase in the risk-free rate of return. Up Down No change d. An increase in the risk premium. Up Down No change e. A decrease in the required rate of return. Up Down No change

Answers

Holding all else constant, the effect of various factors on a company's P/E ratio can be analyzed as follows:
a. An increase in the expected growth rate of earnings would likely cause the P/E ratio to go up. This is because higher earnings growth generally leads to a higher stock price, and P/E ratio is the stock price divided by earnings per share.


b. A decrease in the expected dividend payout ratio would likely cause the P/E ratio to go down. This is because a lower dividend payout ratio indicates that less of the company's earnings are being distributed to shareholders, which may reduce the stock price and subsequently lower the P/E ratio.
c. An increase in the risk-free rate of return would likely cause the P/E ratio to go down. This is because a higher risk-free rate makes other investments more attractive compared to stocks, potentially leading to a decrease in stock price and a lower P/E ratio.


d. An increase in the risk premium would likely cause the P/E ratio to go down. This is because a higher risk premium implies greater uncertainty in the company's future performance, which may negatively impact the stock price and result in a lower P/E ratio.
e. A decrease in the required rate of return would likely cause the P/E ratio to go up. This is because a lower required rate of return makes the company's stock more attractive, potentially leading to an increase in the stock price and a higher P/E ratio.

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The current president of Country Y wants to set realistic goals for the future of his country for upcoming years. Help Country Y's president determine the future GDP of country Y 2 years from now if the present GDP is $506, 750 and the growth rate is 2% Note: Round the Future GDP to the nearest whole number.

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The future GDP of Country Y 2 years from now is expected to be $535,576. This calculation assumes that the growth rate remains constant and there are no other factors affecting the GDP

The future GDP of Country Y 2 years from now can be calculated using the present GDP and the growth rate. If the present GDP is $506,750 and the growth rate is 2%, the future GDP can be calculated as follows:
Future GDP = Present GDP x (1 + Growth Rate)^Number of years
Future GDP = $506,750 x (1 + 0.02)^2
Future GDP = $535,576 (rounded to the nearest whole number)
Therefore, the future GDP of Country Y 2 years from now is expected to be $535,576. This calculation assumes that the growth rate remains constant and there are no other factors affecting the GDP. It is important to note that setting realistic goals for the future of a country requires a comprehensive analysis of various economic factors and trends, and not just relying on the growth rate alone.

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The following information is provided for Cullumber Company and Pharoah Corporation. in $ millions) Cullumber Company Pharoah Corporation Net income 2022 $135 $415 1715 4540 Net sales 2022 Total assets 12/31/20 1050 2200 1215 3160 Total assets 12/31/21 1080 4050 Total assets 12/31/22 What is Cullumber's return on assets for 2022? (Round answer to 1 decimal place, e.g. 15.2.) O 11.1% O 11.8% O 118.0% 12.5%

Answers

Cullumber's return on assets for 2022 is approximately 12.5%.

To calculate Cullumber Company's return on assets (ROA) for 2022, we'll follow these steps:

1. Calculate the average total assets for the year by taking the average of total assets at the beginning and end of the year (12/31/20 and 12/31/21).
2. Divide the net income for 2022 by the average total assets.
3. Multiply the result by 100 to get the percentage.

Step 1: Calculate average total assets
Average total assets = (Total assets on 12/31/20 + Total assets on 12/31/21) / 2
Average total assets = (1,050 + 1,080) / 2
Average total assets = 2,130 / 2
Average total assets = 1,065

Step 2: Calculate ROA
ROA = (Net income 2022) / (Average total assets)
ROA = 135 / 1,065

Step 3: Convert to percentage
ROA = (135 / 1,065) * 100
ROA ≈ 12.5%

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A fall in the price of turkey meat is likely to result in Group of answer choices a rightward shift in the supply curve for turkey sandwiches. a leftward shift in the supply curve for turkey sandwiches. a movement along the demand curve for turkey sandwiches such that quantity demanded decreases. a movement along the supply curve for turkey such that quantity supplied increases.

Answers

A fall in the price of turkey meat is likely to result in a movement along the supply curve for turkey such that quantity supplied increases (option C).

This is because a lower price for turkey meat means that suppliers can produce more turkey at a lower cost, and thus are incentivized to supply more turkey to the market.

However, this movement along the supply curve for turkey will not necessarily result in a leftward or rightward shift in the supply curve for turkey sandwiches, as the price of turkey meat is just one factor that affects the supply of turkey sandwiches. Other factors, such as the price of bread and condiments, may also be important in determining the supply of turkey sandwiches.

The reasons for this are:
1. The price of turkey meat decreases.
2. The lower price makes it less expensive for sandwich makers to produce turkey sandwiches.
3. As a result, the supply of turkey sandwiches increases, as sandwich makers are willing to produce more sandwiches at the lower cost.
4. This increase in supply causes a rightward shift in the supply curve for turkey sandwiches.

Therefore, the correct answer is Option C. a movement along the supply curve for turkey such that quantity supplied increases.

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Shepherd Company’s Stockholder’s equity is as follows:Common Stock, $ 2 par $11,278Additional PIC 27,099Treasury Stock, $ 4 $ 3,545What is the average issue price of the common stock? Round your answer to 2 decimal places!

Answers

The average issue price of the common stock is $8.70. We rounded the answer to two decimal places as instructed. Par value is the nominal or face value of a share of stock, which is typically a small amount, like $1 or $2. In this case, the par value of the common stock is $2. ($11,278 + $27,099) / 5,639 = $8.70

To calculate the average issue price, we need to divide the total amount of common stock by the number of shares issued. We can calculate the number of shares issued by dividing the total common stock by the par value. In this case, the calculation would be:
$11,278 / $2 = 5,639
So, there are 5,639 shares of common stock issued.
To calculate the average issue price, we need to divide the total amount of common stock and additional PIC (which represents the amount paid above the par value for the common stock) by the number of shares issued. The calculation would be:
($11,278 + $27,099) / 5,639 = $8.70
Therefore, the average issue price of the common stock is $8.70. We rounded the answer to two decimal places as instructed.

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A firm uses public relations to achieve different objectives. What are some of those objectives? Select all that apply.
Check All That Apply
to handle unfavorable stories about the firmto handle unfavorable stories about the firm
to convey a positive image about a firm’s brandto convey a positive image about a firm’s brand
to maintain positive relationships with the mediato maintain positive relationships with the media
to separate the firm from its stakeholdersto separate the firm from its stakeholders
to build up firm equity to ensure sustainable competitive advantageto build up firm equity to ensure sustainable competitive advantage

Answers

Public relations (PR) is a strategic communication tool used by firms to achieve various objectives. Some of these objectives include A: to handle unfavorable stories about the firm, C: to convey a positive image about a firm’s brand, D: to convey a positive image about a firm’s brand, and F: to build up firm equity to ensure sustainable competitive advantage.

A) Handling unfavorable stories about the firm: PR helps manage and address negative publicity or unfavorable stories that may arise, allowing the firm to protect its reputation and maintain public trust.

C) Conveying a positive image about a firm's brand: PR plays a crucial role in shaping and promoting a positive perception of the firm's brand among its target audience and stakeholders.

D) Maintaining positive relationships with the media: PR professionals work to establish and maintain strong relationships with the media, ensuring favorable coverage and effective communication with journalists and reporters.

F) Building up firm equity to ensure sustainable competitive advantage: PR efforts focus on enhancing the overall reputation and value of the firm, contributing to long-term success and a competitive edge in the market.

Options A, C, D, and F are the correct answers.

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Job enrichment involves changing Finish at Select one: O a. The jobs title O b. The jobs pay structure O c. One or more of the job's characteristics O d. The scope of responsibility of the job

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Job enrichment involves changing one or more of the job's characteristics.

To elaborate, job enrichment aims to enhance employee satisfaction and motivation by providing more challenging and fulfilling tasks, increased responsibility, and opportunities for growth and development.

This is done by altering various aspects of the job, such as task variety, autonomy, and feedback, which ultimately lead to a more engaged and satisfied workforce.

Some common job enrichment strategies include job rotation, where employees rotate through different roles, and task significance, where employees are given tasks with a direct impact on the organization's success.

By enriching a job's characteristics, employers can improve employee performance and job satisfaction, leading to increased productivity and reduced turnover.

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What would be the income tax expense reported on the face of the income statement?

Sales revenue

Cost of goods sold

Salaries and wages expense Depreciation expense

Dividend revenue

Utilities expense

Loss from discontinued operations Interest expense

Income Tax rate 40%

Answers

In order to determine the income tax expense, the taxable income should be calculated first.

The taxable income can be computed by taking the net income before taxes and adding back non-deductible expenses and subtracting non-taxable revenue items.Using the provided data:Sales revenue = $400,000Cost of goods sold = $200,000Salaries and wages expense = $50,000Depreciation expense = $30,000Dividend revenue = $10,000Utilities expense = $15,000.

Loss from discontinued operations = $5,000Interest expense = $20,000Tax rate = 40%The first step is to calculate the net income before taxes.Net income before taxes = Sales revenue - Cost of goods sold - Salaries and wages expense - Depreciation expense + Dividend revenue - Utilities expense - Loss from discontinued operations - Interest expenseNet income before taxes = $400,000 - $200,000 - $50,000 - $30,000 + $10,000 - $15,000 - $5,000 - $20,000Net income before taxes = $90,000.

To compute the taxable income, non-deductible expenses and non-taxable revenue items must be adjusted.Taxable income = Net income before taxes + Non-deductible expenses - Non-taxable revenue itemsNon-deductible expenses = Depreciation expense = $30,000Non-taxable revenue items = Dividend revenue = $10,000Taxable income = $90,000 + $30,000 - $10,000Taxable income = $110,000Finally, the income tax expense can be computed by multiplying the taxable income by the tax rate.Income tax expense = Taxable income x Tax rateIncome tax expense = $110,000 x 40%Income tax expense = $44,000Therefore, the income tax expense reported on the face of the income statement would be $44,000.

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Express the proposition as an English sentence and determine whether it is true or false, where p and q are the propositions p: 9.9=81" 4. "8.10< 7.11 The contrapositive of p9 O A. If 8.10 is not less than 7. 11, then 9.9 is not equal to 81, false OB. If 8.10 is less than 7. 11, then 9.9 is not equal to 81, false OC. If 8.10 is not less than 7. 11, then 9.9 is equal to 81, false OD. 18 8.10 is less than 7. 11, then 9.9 is equal to 81, false

Answers

The contrapositive of the proposition "9.9=81" 4. "8.10<7.11" is If 9.9 is not equal to 81, then 8.10 is not less than 7.11, which is true.

The contrapositive of a proposition is formed by negating both the hypothesis and the conclusion and reversing the order. In this case, the contrapositive of "9.9=81" 4. "8.10<7.11" is "If 9.9 is not equal to 81, then 8.10 is not less than 7.11." This proposition is true because if 9.9 is not equal to 81, then the first proposition is false, which means that 8.10 cannot be less than 7.11 since it is the second part of the proposition. Thus, the contrapositive proposition is true.

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the change in owners' equity due to only revenue and expense transactions is explained by the: multiple choice statement of cash flows. statement of financial position. income statement. tax return.

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The change in owners' equity due to only revenue and expense transactions is explained by the: income statement. The correct option is C.

The income statement, also known as the statement of comprehensive income or profit and loss statement, shows the revenue earned and expenses incurred during a specific period, such as a month or a year.

By subtracting the total expenses from the total revenue, the income statement calculates the net income or loss for the period. This net income or loss directly affects the owners' equity as it represents the change in the company's financial position during the period.

Revenue transactions increase owners' equity, while expense transactions decrease owners' equity. Therefore, the income statement explains the change in owners' equity due to these transactions.

The statement of cash flows, on the other hand, shows the cash inflows and outflows during the period, while the statement of financial position, also known as the balance sheet, shows the company's assets, liabilities, and equity at a specific point in time. The tax return is a document filed with the tax authorities that shows the company's taxable income and tax liability. The correct option is C.

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Complete question:

the change in owners' equity due to only revenue and expense transactions is explained by the: multiple choice

a. statement of cash flows.

b. statement of financial position.

c. income statement.

d. tax return.

Ahmed just turned 22 and wants to have $10,283 in 8 years he has $6,000 now earning a 5% yield . He will put no other deposit. Will he reach his goal by the time he is 30

Answers

No, Ahmed will not reach his goal of $10,283 by the time he is 30. His projected savings after 8 years will be approximately $8,816.

To determine whether Ahmed will reach his goal of $10,283 by the time he is 30, we can calculate the future value of his current savings, taking into account the annual yield of 5% over the 8-year period.

The formula for calculating future value (FV) with compound interest is:

FV = PV * (1 + r)^n

Where:

PV = Present value (initial amount)

r = Annual interest rate

n = Number of compounding periods

In this case:

PV = $6,000

r = 5% or 0.05 (decimal form)

n = 8 years

Let's calculate the future value:

FV = $6,000 * (1 + 0.05)^8

FV = $6,000 * (1.05)^8

FV = $6,000 * 1.46933

FV ≈ $8,816

Based on the calculations, Ahmed will not reach his goal of $10,283 by the time he is 30. The projected future value of his savings after 8 years will be approximately $8,816, which is less than his target amount.

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if a firm's management leads a leveraged buyout transaction, then the transaction is called a(an)

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If a firm's management leads a leveraged buyout transaction, then the transaction is called a management buyout (MBO).

In an MBO, the management team of a company pools together resources to acquire all or a majority stake in the business they currently work for. This type of transaction is typically financed with a significant amount of debt, hence the term "leveraged buyout."

Management buyouts can be advantageous for both the management team and the business they are acquiring. For the management team, an MBO gives them the opportunity to become owners of the company they have been working for, allowing them to have greater control over its future direction. In addition, management teams often believe that they can run the business more efficiently than outside investors or owners.

For the business being acquired, an MBO can provide stability and continuity. Since the existing management team is already familiar with the company's operations and culture, there is less risk of major changes or disruptions to the business. Additionally, an MBO can sometimes be the best option for a company that is struggling financially, as it may be difficult to find outside buyers willing to invest in a business that is not performing well.

In summary, a leveraged buyout transaction led by a firm's management team is called a management buyout (MBO), which can be a beneficial option for both the management team and the business being acquired.

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A firm's production function is given by Q = 80 In(Ey + E0 + 1) where Ey and Eo are the number of young and old workers employed by the firm respectively. From this it can be shown that the marginal product 80 of labor is MPE = Suppose the market wage for young worker is $80, the market wage for old Ey+Ep+1 workers is $160, and the price of each unit of output is $40. (a) How many workers of each type would a non-discriminating firm hire?

Answers

A non-discriminating firm would hire one young worker and no old workers if the market wage for young workers is $80, the market wage for old workers is $160, and the price of each unit of output is $40.

To determine how many workers of each type a non-discriminating firm would hire, we need to find the optimal combination of young and old workers that maximizes the firm's profits. To do this, we can use the formula for the marginal product of labor (MPL), which is the change in output resulting from an additional unit of labor.

In this case, the marginal product of labor is [tex]MPE = 80 \times (Ey + E0 + 1)^{(-1)}[/tex] , which tells us how much extra output is produced by each additional worker. To maximize profits, the firm should hire workers until the value of the marginal product of labor is equal to the market wage rate for each type of worker.

Given that the market wage for young workers is $80 and the market wage for old workers is $160, we can set up the following equations to determine the optimal number of workers of each type:

[tex]MPE = \$80 \rightarrow 80 \times (Ey + E0 + 1)^{(-1)} = \$80 \rightarrow (Ey + E0 + 1) = 2[/tex]

[tex]MPE = \$160 \rightarrow 80 \times(Ey + E0 + 1)^{(-1)} = \$160 \rightarrow (Ey + E0 + 1) = 1[/tex]

Solving these equations simultaneously, we get Ey = 1 and E0 = 0. This means that the non-discriminating firm would hire one young worker and no old workers to maximize profits.

In summary, a non-discriminating firm would hire one young worker and no old workers if the market wage for young workers is $80, the market wage for old workers is $160, and the price of each unit of output is $40. The firm should hire workers until the value of the marginal product of labor is equal to the market wage rate for each type of worker.

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true or false firms in the same industry will have the same inventory turns.

Answers

False, firms in the same industry may have different inventory turns due to various factors such as differences in production efficiency, sales volume, and supply chain management.

Inventory turns, also known as inventory turnover, is a financial ratio that measures the number of times a company sells and replaces its inventory within a certain period. A high inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently.

In the same industry, two firms may have different inventory turnover ratios due to differences in their production processes. For example, a company that uses a just-in-time inventory system may have a higher inventory turnover ratio than a company that uses a traditional inventory management system.

Supply chain management can also affect inventory turns. For example, a company that has strong relationships with its suppliers and can quickly restock its inventory may have a higher inventory turnover ratio than a company that experiences frequent supply chain disruptions.

Therefore, firms in the same industry may have different inventory turns due to various factors that impact their production efficiency, sales volume, and supply chain management.

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A 22-year-old man came to his physician as a part of investigation of the cause of infertility of his marriage of two years. Physical examination revealed a healthy young man with normal secondary sex characteristics by without testes in the scrotal sac. Examination of a specimen of semen failed to demonstrate the presence of spermatozoa. The laboratory values were as follows: Urinary gonadotrophins 12 RU/24 hours (normal) Plasma testosterone 7 micrograms for 700 ng/dl - normal range 300 - 1050 ng/dL) At surpery the testes were found in the inguinal canals. Histologic examination of biopsy material showed fibrosis and degeneration of the opithelium of the serniniferous tubules QUESTIONS 1. What hormone are necessary to sustain spermatogenesis? Are the amounts of hormone adequate in this man? How is this man's situation similar to the lack of beard growth in the American Indian? Why has spermatogenesis failed in this patient? 1(a) 1(b) 1 (c)1 (d)2. What factors control FSH secretion in this male? 2 3. What factors control LH secretion in this male? 3 4 What hormone is directly responsible for the male secondary sex characteristics?

Answers

1. (a) The hormones necessary to sustain spermatogenesis are follicle-stimulating hormone (FSH) and testosterone. (b) The amount of testosterone in this man is within the normal range, but since he has no testes in the scrotal sac, it is likely that his FSH levels are low.

(c) This man's situation is similar to the lack of beard growth in American Indians because both are examples of genetic conditions that affect the development of male secondary sex characteristics. (d) Spermatogenesis has failed in this patient because his testes are located in the inguinal canals instead of descending into the scrotum during fetal development. This can lead to impaired sperm production and infertility.

2. FSH secretion in this male is controlled by the negative feedback loop between the hypothalamus, pituitary gland, and testes. Low levels of testosterone and inhibin (produced by the testes) stimulate the hypothalamus to produce gonadotropin-releasing hormone (GnRH), which then stimulates the pituitary gland to release FSH.

3. LH secretion in this male is also controlled by the negative feedback loop between the hypothalamus, pituitary gland, and testes. Low levels of testosterone and inhibin stimulate the hypothalamus to produce GnRH, which then stimulates the pituitary gland to release LH.

4. Testosterone is directly responsible for male secondary sex characteristics, including the growth of facial and body hair, deepening of the voice, and muscle development.

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E9-19 (Algo) Calculating a Retirement Fund LO 9-7 You are a financial adviser working with a client who wants to retire in eight years. The client has a savings account with a local bank that pays 8% annual interest. The client wants to deposit an amount that will provide her with $1,008,000 when she retires. Currently, she has $303,200 in the account. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) How much additional money should she deposit now to provide her with $1,008,000 when she retires? (Round your answer to nearest whole dollar.) Additional deposit amount

Answers

To provide the client with $1,008,000 when she retires, additional deposit amount is $381,697.

To determine the additional deposit amount your client needs to reach her retirement goal, we will use the future value of a lump sum formula:

FV = PV * (1 + r)^n

Where:

FV = Future Value ($1,008,000)

PV = Present Value (the total amount currently in the account, plus the additional deposit)

r = Annual interest rate (0.08)

n = Number of years (8)

1. First, we need to calculate the future value of the current savings:

FV_current = $303,200 * (1 + 0.08)^8

FV_current ≈ $626,303

2. Next, we'll find the additional deposit needed by subtracting the future value of the current savings from the target retirement amount:

$1,008,000 - $626,303 ≈ $381,697

Therefore, your client needs to deposit an additional $381,697 now to provide her with $1,008,000 when she retires.

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A company using US GAAP changes its inventory cost assumption from weighted average cost to last in first out (LIFO) is required to apply this change in accounting principle: retrospectively, and disclose the new cost flow method being used prospectively, and explain the reasons for the change in the financial statement disclosures retrospectively, and explain the reasons for the change in the financial statement disclosures

Answers

When a company changes its inventory cost assumption from weighted average cost to LIFO, it must comply with the requirements of US GAAP regarding changes in accounting principle.

By applying the change retrospectively, disclosing the new cost flow method, and explaining the reasons for the change in the financial statement disclosures, the company can ensure that its financial statements are accurate, transparent, and in compliance with US GAAP.

When a company using US GAAP changes its inventory cost assumption from weighted average cost to last in first out (LIFO), it is required to apply this change in accounting principle retrospectively. This means that the company must adjust its financial statements for all prior periods to reflect the new cost flow method.

The company must also disclose the new cost flow method being used prospectively, which means that it must disclose how it will be using LIFO going forward.

In addition to these requirements, the company must explain the reasons for the change in the financial statement disclosures. This includes disclosing the circumstances that led to the change and the impact that the change had on the financial statements.

This information must be included in the notes to the financial statements, and it must be presented in a clear and concise manner so that users of the financial statements can understand the reasons for the change.

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At May 31, 2019, H. J. Klehr Incorporated reported the following amounts (in millions) in its financial statements: Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 2019 $ 71,000 48,280 750 160 800 2018 $ 69,000 44,160 770 265 6,452 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for H. J. Klehr's assets? 2-b. In 2019, was H. J. Klehr more (or less) successful at covering its interest costs, as compared to 2018? 

Answers


Therefore, to answer the specific questions, in 2019, creditors provided a greater proportion of financing for H. J. Klehr's assets as the debt-to-assets ratio increased. However, H. J. Klehr was more successful at covering its interest costs in 2019, as compared to 2018, due to an increase in the times interest earned ratio.

The debt-to-assets ratio measures the percentage of total assets financed by debt. To compute the ratio, we divide total liabilities by total assets. In 2019, the debt-to-assets ratio for H. J. Klehr was 68.2% (48,280/71,000), and in 2018, it was 64% (44,160/69,000). The increase in the ratio suggests that H. J. Klehr relied more on debt financing in 2019.

The times interest earned ratio measures the ability of a company to cover its interest expenses with its earnings. To compute the ratio, we divide earnings before interest and taxes (EBIT) by interest expense. In 2019, the times interest earned ratio for H. J. Klehr was 15.3 times (800/750), and in 2018, it was 8.4 times (6,452/770). The increase in the ratio indicates that H. J. Klehr was more successful at covering its interest costs in 2019.

Therefore, to answer the specific questions, in 2019, creditors provided a greater proportion of financing for H. J. Klehr's assets as the debt-to-assets ratio increased. However, H. J. Klehr was more successful at covering its interest costs in 2019, as compared to 2018, due to an increase in the times interest earned ratio. It is essential to note that interest expenses are tax-deductible, which reduces the company's income tax expense.

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True/False: a firm with market power will find that the quantity of output that maximizes revenue is lower than the quantity at which profits are maximized.

Answers

True.

A firm with market power has the ability to influence the price of its product or service. This means that it can charge a higher price than it would in a perfectly competitive market. However, as the firm increases its price, the quantity demanded decreases. Therefore, the firm must balance the higher price with the lower quantity demanded in order to maximize its revenue.

At some point, the firm will find that further increases in price result in a decrease in total revenue. This is because the decrease in quantity demanded outweighs the increase in price. The quantity of output that maximizes revenue occurs where the marginal revenue equals marginal cost.

On the other hand, the quantity of output that maximizes profits occurs where marginal revenue equals marginal cost and marginal cost is rising. This means that the firm is producing at a point where the cost of producing an additional unit is increasing. Therefore, the firm will produce a lower quantity of output at a higher price to maximize profits.

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Compare Reread lines 16-20 "Fatal Car Crashes Drop for 16-year-Olds,Rise For Older Teens. " According to Allison Aubrey, what is one interpretation for the fact that there's been an increase in fatal car crashes among 18- year-olds? How does this interpretation conflict with the quotation in lines 133-135 of "is 16 too young to drive a car

Answers

Allison Aubrey provides an interpretation for the increase in fatal car crashes among 18-year-olds.

According to her, the decrease in the number of fatal car crashes among 16-year-olds is due to the improved restrictions and stricter laws put in place by states, while the increase in the number of fatal car crashes among 18-year-olds is because they aren't covered by the same laws.According to the text, "Fatal Car Crashes Drop for 16-year-Olds, Rise for Older Teens," by Allison Aubrey, there has been a significant decrease in fatal car crashes among 16-year-olds, but there has also been a significant increase in fatal car crashes among 18-year-olds.

Aubrey implies that the decrease in the number of fatal car crashes among 16-year-olds is due to the improved restrictions and stricter laws put in place by states to help reduce accidents and improve safety.However, the interpretation of this fact contradicts the quotation in lines 133-135 of "Is 16 too young to drive a car?" The author of "Is 16 too young to drive a car?" states that 16-year-olds are too young to drive cars and that raising the driving age to 18 or 21 will help reduce the number of fatal car crashes among teens.

Meanwhile, Aubrey implies that 18-year-olds are involved in more fatal car crashes because they aren't covered by the same laws as 16-year-olds. Hence, this interpretation of the increase in fatal car crashes among 18-year-olds conflicts with the quotation in lines 133-135 of "Is 16 too young to drive a car?"

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For each of the goods and services listed below, please determine whether or not advertising is an effective way to cover the cost of their provision Advertising Will Help Advertising Will Not Help The house you live inThe sandwich you Public Television ate for lunch The fireworks displays in your town on July 4th Lighthouses on the coast of Maine

Answers

Advertising will help cover the cost of providing the sandwich you ate for lunch and the fireworks displays in your town on July 4th.

1. The house you live in: Advertising is not an effective way to cover the cost of providing a house. This is because houses are typically not sold through advertising. Real estate agents may advertise properties, but the cost of the house is ultimately borne by the buyer, not the advertiser.

2. The sandwich you ate for lunch: Advertising is an effective way to cover the cost of providing a sandwich. Many food establishments advertise their products to attract customers and generate revenue. The cost of advertising can be factored into the price of the sandwich.

3. Public television: Advertising will not help cover the cost of providing public television. Public television is funded by donations and government funding, and is not supported by commercial advertising.

4. The fireworks displays in your town on July 4th: Advertising is an effective way to cover the cost of providing fireworks displays. Many companies sponsor firework displays and advertise their products or services during the event. This revenue can help offset the cost of providing the fireworks.

5. Lighthouses on the coast of Maine: Advertising will not help cover the cost of providing lighthouses. Lighthouses are typically owned and maintained by the government and are not supported by commercial advertising.

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Question 1 Marbles Company has the following information available regarding its materials: Managers expected to pay $5 per kilogram, but ended up paying $6 per kilogram. Each unit produced should take 2 kilograms; actual total usage was 2,100 kilograms. Finally, the company planned to produce 1,000 units, but only produced 950. Calculate the materials spending variance. 1 point $2,100 (favorable) $2,000 (favorable) $2,000 (unfavorable) $2,100 (unfavorable)

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The materials spending variance is $2,100 (unfavorable).

To calculate the materials spending variance, we need to compare the actual cost of materials used with the expected cost based on the planned quantity and price.

The expected cost of materials can be calculated by multiplying the planned quantity of units by the planned cost per kilogram. In this case, it would be 1,000 units * $5 per kilogram = $5,000.

The actual cost of materials used can be calculated by multiplying the actual total usage of kilograms by the actual cost per kilogram. In this case, it would be 2,100 kilograms * $6 per kilogram = $12,600.

To calculate the materials spending variance, we subtract the expected cost from the actual cost: $12,600 - $5,000 = $7,600.

Since the variance is unfavorable (actual cost exceeded the expected cost), the materials spending variance is $2,100 (unfavorable).

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an investor purchases a long call at a price of $2.55. the strike price at expiration is $36. if the current stock price is $36.10, what is the break-even point for the investor?

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The break-even point for the investor who has purchased a long call at a price of $2.55 with a strike price of $36

We need to take into account the premium paid for the option and the strike price of the option.

In this scenario, the investor has paid a premium of $2.55 to buy the long call option. The strike price at expiration is $36. If the current stock price is $36.10, the option is in-the-money as the current stock price is higher than the strike price.

To calculate the break-even point, we need to add the premium paid to the strike price of the option. Therefore, the break-even point for the investor can be calculated as follows:

Break-even point = Strike price + Premium paid

Break-even point = $36 + $2.55

Break-even point = $38.55

Therefore, for the investor to break even on the long call option, the stock price needs to rise above $38.55.

Any price above this will result in a profit for the investor, while any price below this will result in a loss.

It is important to note that the break-even point does not include transaction fees or commissions. These costs should also be factored in when determining the overall profitability of the investment.

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The break-even point for the investor who purchased a long call at a price of $2.55 with a strike price of $36 is $38.55.

To calculate the break-even point, we need to consider the total cost of the investment, which is the price of the call option plus any transaction costs, such as commissions. In this case, let's assume that there are no transaction costs, so the total cost of the investment is $2.55.

Next, we need to determine the breakeven stock price, which is the stock price at expiration that would allow the investor to recoup their initial investment. Since this is a long call option, the breakeven stock price can be calculated by adding the strike price to the cost of the option.

Breakeven stock price = strike price + cost of option

Breakeven stock price = $36 + $2.55

Breakeven stock price = $38.55

Therefore, if the stock price at expiration is above $38.55, the investor will make a profit, and if the stock price at expiration is below $38.55, the investor will incur a loss.

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Consider the process transfer function given in Equation 2 GP 2(10s +1) (25+1)(2s+1.5s+2.5) Explain the stability and the dynamic response characteristic of the process. If a cascade control is used to control the process as shown in Figure 2. Figure 2: Cascade control block diagram Apply Ziegler and Nichols tuning rules for the master controller and IMC tuning rules for the slave controller. Design G2 for P controller first (note use parameter r = 3 for. the low-pass filter), and then use that value to design Gc1 for Pl controller. The higher order transfer function can be approximated first by a FOPTD model.

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The process transfer function, GP, is given as:
GP = 2(10s + 1) / [(25s + 1)(2s + 1.5s + 2.5)]

To determine the stability and dynamic response characteristics of the process, we can analyze the denominator's polynomial. Since all coefficients are positive, the process is stable according to the Routh-Hurwitz criterion. A stable process ensures that the system will return to equilibrium after a disturbance.

In a cascade control configuration, two controllers (master and slave) work together to improve control performance. The master controller, Gc1, adjusts the setpoint of the slave controller, G2. To tune the controllers, we can apply the Ziegler and Nichols tuning rules for the master controller and IMC tuning rules for the slave controller.

For G2 (P controller), we use a FOPTD (first-order plus time delay) model to approximate the higher-order transfer function. With a low-pass filter parameter r = 3, we can calculate the tuning parameters for the P controller.

Once the P controller G2 is designed, we can use the obtained value to design the PI controller Gc1. We apply the Ziegler and Nichols tuning rules, which are based on the ultimate gain and ultimate period to calculate the proportional and integral tuning parameters.

In summary, the process transfer function exhibits stable behavior, and a cascade control system can be designed using the Ziegler and Nichols tuning rules for the master controller and IMC tuning rules for the slave controller. This allows for improved control performance and dynamic response in the process.

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john moved his office from a building he was renting downtown to the carriage house he owns behind his house. how will his profit change?a. explicit and implicit costs rise b. explicit and implicit costs fall c. explicit costs rise; implicit costs fall d. explicit costs fall; implicit costs rise e. not enough information is given

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When John moves his office from a building he was renting downtown to the carriage house he owns behind his house, his explicit costs fall; implicit costs rise. Option d is correct.

The profit change for John will depend on the differences in explicit and implicit costs. Explicit costs are direct, out-of-pocket expenses, such as rent, utilities, and maintenance. Implicit costs represent the opportunity costs associated with using resources in one way rather than their next best alternative use.

When John moves his office to the carriage house, his explicit costs are likely to fall because he no longer has to pay rent for the downtown office. He may also experience reduced utility and maintenance expenses. However, the implicit costs may rise as John now has to forgo the potential income he could have earned by renting out the carriage house to someone else or using it for another purpose.

Based on this information, the answer is (d) explicit costs fall; implicit costs rise. However, it is important to note that the overall impact on John's profit will depend on the specific costs and benefits associated with each option, which is not provided in the question.

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Stambovsky, to his horror, discovered that the house he recently purchased was commonly known to be possessed by poltergeists. Ackley, the seller of the house, had widely publicized their presence in local media and on a walking tour of the Village of Nyak, New York, where the house was located. Ackley did not disclose this characteristic of the property in the sale.
Stambovsky believed that the potential "haunting" should have been disclosed and he sought to rescind the sale. Ackley refused and a law suit resulted.
Did the seller have a duty to disclose to the buyer the fact the house was haunted?
How should the court decide? What factors should be considered?

Answers

Stambovsky, it depends on the laws of the state where the sale occurred. In some states, sellers are required to disclose any known defects or material facts that could affect the value or desirability of the property.This could include issues such as a leaky roof, a faulty foundation, or in this case, a haunted house.

Assuming that the state where the sale occurred does require such disclosures, the court would need to determine whether the fact that the house was haunted qualified as a material fact. This would likely involve considering factors such as the severity of the haunting, whether it could be reasonably discovered by the buyer through a routine inspection, and whether it could affect the value or desirability of the property.

Additionally, the court may consider the seller's actions in relation to the haunting. In this case, Ackley had widely publicized the haunting, suggesting that she was aware of its existence and believed it could be a selling point for the property. This could be seen as an admission that the haunting was a material fact that should have been disclosed to the buyer. And would require careful consideration of the specific facts and laws involved.

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Aspen Manufacturing Company sells its products for $33 each. The current production level is 50,000 units, although only 40,000 units are anticipated to be sold.
Unit manufacturing costs are:
Direct materials $6.00
Direct manufacturing labor $9.00
Variable manufacturing costs $4.50
Total fixed manufacturing costs $180,000
Marketing expenses $3.00 per unit, plus $100,000 per year
Required:
a. Prepare an income statement using absorption costing.
b. Prepare an income statement using variable costing.

Answers

Under absorption costing, the income statement shows a net income of   $176,000 and under variable costing, the income statement shows net income as $176,000.  

a. Income statement using absorption costing:

Sales (40,000 units x $33 per unit)        $1,320,000

Cost of goods sold:

  Direct materials (40,000 units x $6)      240,000

  Direct manufacturing labor (40,000 units x $9) 360,000

  Variable manufacturing overhead (40,000 units x $4.50) 180,000

  Fixed manufacturing overhead             3.60 ($180,000 / 50,000 units) x 40,000 units  144,000

Gross profit                                 396,000

Selling and administrative expenses:

  Marketing expenses (40,000 units x $3)     120,000

  Fixed selling and administrative expenses 100,000

Total selling and administrative expenses    220,000

Net income                                    $176,000

b. Income statement using variable costing:

Sales (40,000 units x $33 per unit)        $1,320,000

Variable manufacturing costs:

  Direct materials (40,000 units x $6)      240,000

  Direct manufacturing labor (40,000 units x $9) 360,000

  Variable manufacturing overhead (40,000 units x $4.50) 180,000

Total variable costs                         780,000

Contribution margin                          540,000

Fixed manufacturing overhead                 3.60 ($180,000 / 50,000 units) x 40,000 units  144,000

Gross profit                                $396,000

Selling and administrative expenses:

  Variable selling and administrative expenses (40,000 units x $3) 120,000

  Fixed selling and administrative expenses 100,000

Total selling and administrative expenses    220,000

Net income                                    $176,000

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Determine which statements are true and which are false regarding the Phillips Curve: a) it is possible to have high inflation and high unemployment; b) the multiplier tells the relation between inflation and unemployment; c) MPC determines the slope of the Phillips Curve; d) MPS determines the slope of the Phillips Curve; e) the Phillips Curve predicts that inflation and unemployment will be at their lowest levels when we are at potential GDP; f) the same Phillips that discovered the curve invented the Phillips head screwdriver; g) the Phillips Curve is a pitch invented by Brandon Phillips; h) the Phillips Curve is constant over time; i) the Phillips Curve shows the short run relationship between inflation and unemployment.

Answers

Answer:

Here are the true and false statements regarding the Phillips Curve:

- a) True

- b) False

- c) False

- d) True

- e) False

- f) False

- g) False

- h) False

- i) True

Explanation:

a) It is true that high inflation and high unemployment can occur at the same time, contradicting the traditional relationship captured by the Phillips Curve. b) This statement is false. The multiplier shows the effect of changes in spending or investment on the economy, but not the relation between inflation and unemployment. c) This statement is false. The MPC (marginal propensity to consume) is a term used in Keynesian economics to express how an increase in income leads to an increase in consumption spending, but it does not determine the slope of the Phillips Curve. d) This statement is true. The MPS (marginal propensity to save) determines the slope of the Phillips Curve, as it captures the relationship between inflation and labor supply. A higher MPS results in a flatter Phillips Curve, while a lower MPS results in a steeper one. e) This statement is false. The Phillips Curve does not predict the lowest levels of inflation and unemployment at potential GDP, but rather shows a trade-off between them in the short run. f) This statement is false. The Phillips Curve is named after A.W. Phillips, an economist who first observed the inverse relationship between inflation and unemployment in the UK in 1958. g) This statement is false. The Phillips Curve is not a pitch, but rather a graphical representation of the relationship between inflation and unemployment. h) This statement is false. The Phillips Curve is not constant over time, as factors such as changes in expectations, technology, or monetary policy can affect the trade-off between inflation and unemployment. i) This statement is true. The Phillips Curve shows the short run relationship between inflation and unemployment, where a decrease in unemployment is associated with an increase in inflation, and vice versa.
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