Answer:
$22.60
Explanation:
Zero growth: Nynet, Inc., paid a dividend of $4.18 last year. The company does not expect to increase its dividend for the next several years. If the required rate of return is 18.5 percent, what is the current price of the stock:
D÷R = 4.18/0.185
= $22.6
Trade adjustment assistance:_________.a. provides financial assistance to all unemployed workers in the United Statesb. guarantees jobs for all workers displaced by imports or plant relocations abroadc. provides assisntace to about 20 percent of unemployed U.S. workers each yeard. provides cash assistance for workers displaced by imports or plant relocations abroad
Answer:
The correct answer is the option B: guarantees jobs for all workers displaced by imports or plant relocations.
Explanation:
To begin with, the name of "Trade Adjustment Assistance" or TAA refers to a federal program from the United States that establish that its government must act in the situations necessary in order to reduce the damage cause by imports that are felt by certain sectors of the U. S. economy. Moreover, this program's structure features four components and one of them is the program for workers in which is established that the TAA provides a variety of reemployment services to those workers who were displaced or lost their jobs due to the increase of the imports or the relocation of their work plants.
Assume that both firm A and firm B formally agree to each put up $10 million to form firm C. The operations of firm C are restricted to conducting research and development activities for the benefit of firms A and B. Firm C is a _____ of firms A and B.
Answer: a. joint venture.
Explanation:
A Joint Venture refers to when 2 or more entities come together and put up resources necessary to accomplish a certain task or venture that will be beneficial to all of them.
For example, BMW and Toyota jointly started research into utilizing hydrogen fuels and Google cooperated with NASA to create Google Earth.
Firm C is a Joint venture between Firms A and B.
You want to have $13,000 in 9 years for a dream vacation. If you can earn an interest rate of .4 percent per month, how much will you have to deposit today?
Answer:
PV= $8,447
Explanation:
Giving the following information:
Future value= $13,000
Number of months= 9*12= 108
Interest rate= 0.4/100= 0.004 compounded montlhy
To calculate the initial investment required, we need to use the following formula:
PV= FV/(1+i)^n
PV= 13,000/(1.004^108)
PV= $8,447
The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 40 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.
Year 0 Year 1 Year 2 Year 3 Year 4
Investment $37,000
Sales revenue $19,000 $19,500 $20,000 $17,000
Operating costs 4,000 4,100 4,200 3,400
Depreciation 9,250 9,250 9,250 9,250
Net working capital spending 430 480 530 430 ?
Required:
a. Compute the incremental net income of the investment for each year.
b. Compute the incremental cash flows of the investment for each year.
Answer:
a.
Year 0 = $0
Year 1 = $5,750
Year 2 = $6,150
Year 3 = $6,550
Year 4 = $4,350
b.
Year 0 = ($37,000)
Year 1 = $14,570
Year 2 = $14,920
Year 3 = $15,270
Year 4 = $15,040
Explanation:
a. Computation of the incremental net income of the investment for each year.
Year 0 Year 1 Year 2 Year 3 Year 4
Sales revenue $19,000 $19,500 $20,000 $17,000
Less Operating costs $4,000 $4,100 $4,200 $3,400
Less Depreciation $9,250 $9,250 $9,250 $9,250
Net Income $0 $5,750 $6,150 $6,550 $4,350
b. Computation of the incremental cash flows of the investment for each year.
Year 0 Year 1 Year 2 Year 3 Year 4
Investment ($37,000)
Sales revenue $19,000 $19,500 $20,000 $17,000
Operating costs ($4,000) ($4,100) ($4,200) ($3,400)
Net working capital ($430) ($480) ($530) ($430)
Recovery $1,870
Cash flow ($37,000) $14,570 $14,920 $15,270 $15,040
Item 3Item 3 On January 1, 2018, Hoosier Company purchased $922,000 of 10% bonds at face value. The bond market value was $976,000 on December 31, 2018. Required: Prepare the appropriate journal entry on December 31, 2018, to properly value the bonds assuming the bonds are classified as
Answer:
Note: The missing last part of the question is as follows
"(1.) Trading securities.
(2.) Securities available for sale.
(3.) Held-to-maturity securities"
Solution
1. Journal Entries - Hoosier Company
Date Particulars Debit Credit
31-Dec-18 Fair value adjustment $54,000
To Unrealized holding $54,000
gain or loss - NI
(To adjust bond investment held for trading to fair value)
2. Journal Entries - Hoosier Company
Date Particulars Debit Credit
31-Dec-18 Fair value adjustment $54,000
To Unrealized holding $50,000
gain or loss - OCI
(To adjust bond investment available for sale to fair value)
3. Journal Entries - Hoosier Company
Date Particulars Debit Credit
31-Dec-18 No Journal Entry Required
You deposit $2,400 into an account that pays 5% per year. Your plan is to withdraw this amount at the end of 5 years to use for a down payment on a new car. How much will you be able to withdraw at the end of 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.
Answer:
3,063.08
Explanation:
To determine how much will you be able to withdraw at the end of 5 years, we have to calculate the present value of the amount paid.
The formula for calculating future value :
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$2,400 (1 + 0.05)^5 = 3,063.08
I hope my answer helps you
Trail Runner guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be approximately 5% of sales. Assume that the Trail RunnerTrail Runner dealer in Colorado Springs made sales totaling $600,000 during 2018.The company received cash for 20% of the sales and notes receivable for the remainder. Warranty payments totaled $10,000 during 2018.Read the requirements.Requirement 1. Record the sales, warrantyexpense, and warranty payments for the company. Ignore cost of goods sold.a) Begin with the entry to record the salesAccounts and Explanation Debit Creditb) Record the warranty expense.Accounts and Explanation Debit Creditc) Record the warranty payments for the company.Accounts and Explanation Debit Creditd) Requirement 2. Assume the Estimated Warranty Payable is $0 on January 1, 2018. Post the 2018 transactions to the Estimated Warranty Payable T-account. At the end of 2018 how much in Estimated Warranty Payable does the company owe?Use the T-account to determine the ending balance for the Estimated Warranty Payable account. Use a "Beg. Bal." posting reference to show the beginning balance of the account and an"End. Bal." posting reference to show the ending balance of the account. (Enter a "0" for any zero amounts.)Estimated Warranty Payable
Answer:
1. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold.
To record sales during 2018:
Dr Cash 120,000
Dr Accounts receivable 480,000
Cr Sales revenue 600,000
To record warranty liability:
Dr Warranty expense 30,000
Cr Warranty payable 30,000
To record warranty related expenses:
Dr Warranty payable 10,000
Cr Cash 10,000
Instead of cash it could have been wages payable, or repair parts inventory, but since we are not given any details, the safest thing is to assume cash payments.
2. Assume the Estimated Warranty Payable is $0 on January 1, 2018. Post the 2018 transactions to the Estimated Warranty Payable T-account. At the end of 2018 how much in Estimated Warranty Payable does the company owe?Use the T-account to determine the ending balance for the Estimated Warranty Payable account.
Ending balance of warranty payable account = $20,000
Warranty Payable
debit credit
beg. bal. 0 0
warranty liability 30,000
warranty costs 10,000
end. bal. 20,000
A manager with many direct subordinates has a wider___________ than does a manager with only a few subordinates. Employees make greater use of their skills and enjoy more opportunities for professional development in a organization
Answer:
Span of management
Explanation:
The span of management refers to managing the number of subordinates by the superior in an efficient and effective manner
In this, the superiors directly report to the superior with respect to the work, suggestions, grievances
This above explanation we are known as span of management
Therefore in the given scenario, the best option is the span of management that perfectly fits
George operates a business that generated revenues from services of $50 million in 2019 and reported deductible expenses other than interest of $49 million in 2019, which included depreciation expense of $500,000. The business paid interest expenses of $800,000 in 2019, none of which was for loans used to purchase tax-exempt investments. What is the maximum business interest deduction that George will be eligible to claim this year
Answer:
$750,000
Explanation:
The Adjustable Taxable Income will be calculated first to compute the maximum business interest deduction that is allowable to George.
Step 1. Calculate Net Adjustable Taxable Income
Net Adjustable Taxable Income = Total revenue - Deductible expenses + Disallowed Expenses - Tax Exempt Revenue
Here
Total revenue is $50 million
Deductible expenses are $49 million
Disallowed Expenses includes a depreciation of $0.5 million
Tax Exempt Revenue is zero
So by putting values, we have:
Net Adjustable Taxable Income = $50 million - $49 million + $0.5 million
= $1.5 million
Net ATI = $1.5 million
Step 2. Calculate the maximum business interest deduction which is 50% of Net ATI
Maximum Business Interest Deduction = Net ATI * 50%
= $1.5 * 50% = $0.75 million
So Maximum Business Interest Deduction is $750,000.
Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year:
Common Stock, $10 par $440,000
Paid-In Capital from Sale of Treasury Stock-Common 33,200
Paid-In Capital in Excess of Par-Common Stock 132,000
Paid-In Capital in Excess of Par-Preferred Stock 61,200
Preferred 4% Stock, $50 par 1,020,000
Retained Earnings 2,057,400
Treasury Stock-Common 38,500
Fifty thousand shares of preferred and 200,000 shares of common stock are authorized. There are 3,500 shares of common stock held as treasury stock.
Required:
Prepare the Stockholders' Equity section of the balance sheet as of July 31, the end of the current year.
Answer:
Specialty Auto Racing Inc.Stockholders' Equity section of the balance sheet as at July 31:
Authorized Share Capital:
Common Stock, 200,000 $10 par
Preferred 4% Stock, 50,000 $50 par
Common Stock, Issued share capital, $10 par $440,000
Paid-In Capital in Excess of Par-Common
Stock (132,000 + 33,200) 165,200
Treasury Stock-Common, 3,500 shares (38,500)
Preferred 4% Stock, $50 par 1,020,000
Paid-In Capital in Excess of Par-Preferred Stock 61,200
Retained Earnings 2,057,400
Total Equity $3,705,300
Explanation:
The Stockholders equity section of the balance reports the Preferred stock, common stock, additional paid‐in‐capital, retained earnings, and treasury stock. It also discloses information regarding the par value, authorized shares, issued shares, and outstanding shares for each type of stock.
The Paid-in Capital from sale of Treasury stock- common of $33,200 is added to the Paid-in Capital in Excess of Par- Common Stock as there is no separate account for it.
Milar Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.7 pounds $ 4 per pound
Direct labor 0.1 hours $ 20 per hour
Variable overhead 0.1 hours $ 4 per hour
In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for January is:
a. $1,690 U
b. $1,540 F
c. $1,540 U
d. $1,690 F
Answer:
Direct material price variance= $1,690 favorable
Explanation:
Giving the following information:
Direct materials 7.7 pounds $ 4 per pound
During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910.
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
actual price= 65,910/16,900= $3.9
Direct material price variance= (4 - 3.9)*16,900
Direct material price variance= $1,690 favorable
When Gustavo and Serrana bought their home, they had a 5.9% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.8% compounded monthly for 25 years with refinancing costs of $625 included with the amount refinanced.
(a) Find the amount refinanced. (Round your answer to the nearest cent.)
(b) Find their new monthly payment. (Round your answer to the nearest cent.) $
(c) How long will it take to pay off this new loan if they pay $1200 each month? (Round your answer up to the next whole number.)
Answer:
b
Explanation:
The formula used to calculate the fixed monthly payment (P) required to fully amortize a loan of L dollars over a term of n months at a monthly interest rate of r is P = L [r(1 +r)n]/[(1 + r)n- 1]
If a firm with a positive net worth is operating its fixed assets at full capacity, if its dividend payout ratio is 100%, and if it wants to hold all financial ratios constant, then for any positive growth rate in sales, it will require external financing.
A. True
B. False
Answer:
TRUE
Explanation:
I got this question right on a test! Please make as brainiest!
During May, Keenan Company accumulated 570 hours of direct labor costs on Job 200 and 610 hours on Job 305. The total direct labor was incurred at a rate of $20 per direct labor hour for Job 200 and $23 per direct labor hour for Job 305. Journalize the entry to record the flow of labor costs into production during May.
Answer:
Dr work-in process $ 25,430.00
Cr wages payable $ 25,430.00
Explanation:
The total labor cost on jobs is the total hours spent on each job multiplied by direct labor cost per hour as shown thus:
Job 200=570*$20=$11,400.00
Job 305=610*$23=$14,030.00
Total direct labor cost on both jobs=$11,400.00 +$14,030.00 =$ 25,430.00
The journal entries in respect of labor cost of $25,430.00 is to debit work-in process and again a credit goes to wages payable
Oscar’s Red Carpet Store maintains a checking account with Academy Bank. Oscar’s sells carpet each day but makes bank deposits only once per week. The following provides information from the company’s cash ledger for the month ending February 28, 2021.
Date Amount No. Date Amount
Deposits: 2/4 $ 2,350 Checks: 321 2/2 $ 4,350
2/11 1,950 322 2/8 650
2/18 2,850 323 2/12 2,150
2/25 3,750 324 2/19 1,850
Cash receipts: 2/26-2/28 1,250 325 2/27 450
$ 12,150 326 2/28 950
327 2/28 1,550
Balance on February 1 $ 6,450 $ 11,950
Receipts 12,150
Disbursements (11,950)
Balance on February 28 $ 6,650
Information from February's bank statement and company records reveals the following additional information:
The ending cash balance recorded in the bank statement is $10,665.
Cash receipts of $1,250 from 2/26–2/28 are outstanding.
Checks 325 and 327 are outstanding.
The deposit on 2/11 includes a customer's check for $450 that did not clear the bank (NSF check).
Check 323 was written for $2,800 for advertising in February. The bank properly recorded the check for this amount.
An automatic withdrawal for Oscar's February rent was made on February 4 for $1,200.
Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $165.
In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,300 from Oscar. On February 24, Titanic paid $5,500 ($5,300 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing.
Academy Bank charged service fees of $100 to Oscar’s for the month.
Required:
1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.)
2. Record the necessary cash adjustments. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Total entries to the same account together when entering in the journal entry worksheet.)
Answer:
Explanation:
Balance as per cash book = 6,650
Deduct uncleared check (450)
Check 323 (650)
Rent ( 1200)
Interest 165
Titanic payment not captured 5,500
Service fee (100)
Total adjustment 3,265
Adjusted balance 9,915
Balance as per bank statement 10,665
Cash receipt 1250
Check 325 ( 450)
Check 327 (1550)
Total adjustment (750)
Adjusted balance 9,915
b)
Cash adjustment
Uncleared customer check
Debit customer = 450
Credit Cash = 450
Advertising
Debit Advertising 650
Credit Cash 650
Rent
Debit rent 1200
Credit Cash 1200
Interest
Debit cash 165
Credit interest expenses 165
Payment from Titanic
Debit cash 5,500
Credit Oscar 5300
Credit Interest exp. 200
Service fee
Credit cash 100
Debit service charges 100
Mayan Company had net income of $132,000. The company had 89,000 shares of common stock issued. The company had 9,000 shares of treasury stock. The company declared a $27,000 dividend on its preferred stock. There were no other stock transactions. What is the company's Earnings Per Share
Answer:
The company's Earnings Per Share is $1.18
Explanation:
Earnings per share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Stock Holders
= ($132,000 - $27,000) / 89,000
= $1.179775 or $1.18
MV Corporation has debt with market value of $ 95 million, common equity with a book value of $ 102 million, and preferred stock worth $ 20 million outstanding. Its common equity trades at $ 48 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? g
Answer:
Total market value $383.8 million
Debt is 24.75%
Preferred stock is 5.21%
Common equity is 70.03%
Explanation:
Calculation of the weights that MV Corporation should use in its WACC
Debt value : $95 million
Preferred stock value : $20 million
Market value of common equity:
$48 per share×5.6million shares= $268.8 million
Total market value of firm: $95 +20 +268.8 =$383.8 million
Weights for WACC calculation:
Debt =95/383.8
=24.75%
Preferred Stock =20/383.8
=5.21%
Common Equity =268.8/383.8
=70.03%
Therefore the total market value of the firm will be $383.8 million Debt is 24.85% of the total value, preferred stock is 5.21%, and common equity is 70.03%
ABC purchases inventory for $2,000 and incurs shipping costs of $100 for the goods to be delivered. To record this transaction, the company debits Inventory for $2,000, debits Selling Expenses for $100, and credits Cash for $2,100. Which of the following statements is correct?
A) Revenues are understated.
B) All accounts are accurately stated.
C) Net income is overstated.
D) Assets are understated.
Specific Identification is used by:
A) Starbucks
B) Manufacturers
C) Grocery Stores
D) Car dealers
Answer: 1. D) Assets are understated
2. D) Car dealers
Explanation:
1. The shipping costs to bring Inventory into a business are known as Carriage Inwards. This amount is to be debited with the Inventory as it is considered to be part of the cost of acquiring the inventory. By not putting this cost with the inventory, ABC is undervaluing the inventory account which is an Asset account. The Assets are therefore understated.
2. The Specific Identification Method of inventory valuation is based on each individual unit purchased or sold. It does not group items and tracks each item from the moment it is purchased to the moment it is sold so the cost of the specific inventory is known. This method is used more often by businesses that deal with easily identifiable items such as Jewellers and Car dealers because each car is big enough to be tracked individually.
A publisher faces the following demand schedule for the next novel from one of its popular authors:
Price Quantity Demanded
(Dollars) (Copies)
100 0
90 100,000
80 200,000
70 300,000
60 400,000
50 500,000
40 600,000
30 700,000
20 800,000
10 900,000
0 1,000,000
The author is paid $2 million to write the novel, and the marginal cost of publishing the novel is a constant $10 per copy.
Complete the second, fourth, and fifth columns of the following table by computing total revenue, total cost, and profit at each quantity.
Quantity Total Revenue Marginal Revenue Total Cost Profit
(Novels) (Dollars) (Dollars) (Dollars) (Dollars)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Answer and Explanation:
The completion of the second, fourth, and fifth columns of the given table is to be shown in the attachment below:
As we know that
Profit = Total revenue - total cost
Total revenue is the revenue earned by the company by multiplying the price with the quantity demanded
While the total cost is
= Fixed cost + variable cost
The marginal revenue comes from
= Change in total revenue ÷ change in quantity
We simply use these formulas in the spreadsheet below.
The following attachment should be used to demonstrate how the second, fourth, and fifth columns of the provided table have been completed:
As we are aware of
Total revenue - total costs = profit.
Total revenue is the amount of money the business brings in by multiplying the price by the quantity of customers.
While the overall expense is
= Variable cost + fixed cost
The source of the marginal revenue is
= Change in quantity x Change in total revenue
These formulas are merely used in the spreadsheet that follows.
The table is completed and explained in the attachments.
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The production possibilities curve represents: a) The maximum amount of labor and capital available for production. b) Combinations of goods and services among which consumers are indifferent. c) Maximum combinations of products available with fixed resources and technology. d) The maximum rate of growth of capital and labor in an economy.
Answer:
c) Maximum combinations of products available with fixed resources and technology.
Explanation:
The production possibilities curve (PPC) is also known as the production possibilities frontier (PPF) and its a curve which illustrates the maximum (best) combinations of two products that can be produce in an economy if they both depend on these factors;
1. Technology is fixed.
2. Resources are fixed.
Hence, the production possibilities curve represents maximum combinations of products available with fixed resources and technology. This ultimately implies that the manufacturing or production of one item (product) is likely to rise or increase provided the production of the other item (product) falls or decreases.
Additionally, the production possibilities curve influences the choice of production used by companies and as such it helps to make the best decision regarding the optimum product mix for a company. This simply means that, all points in a production possibilities curve is efficient and resources should be used efficiently or to the fullest.
Employee vacation benefits: Multiple Choice Are recorded as an expense when the employee retires. Increase net income. Are estimated liabilities. Are contingent liabilities. Are recorded as an expense when the employee takes a vacation.
Answer: are estimated liabilities
Explanation:
Employee vacation benefits are estimated liabilities. It should be noted that an estimated liability is an obligation or a debt of an unknown amount which an economic agent i.e an individual, firm or the government can reasonably estimated.
It is a known liability that everyone is aware of but don't really know the exact cost.
Drag each option to the correct location on the image. Match the pairs to their respective categories.
The correct answers are Pairs of Substitutes: tea- coffee, butter-margarine, petroleum-natural gas; Pairs of Complementary goods: printer-ink cartridge, pen-refill
Explanation:
In economics and related fields, substitutes are goods or products that are considered similar by customers and due to this, one product can replace the other. For example, butter and margarine are substitutes because they have similar properties and uses, which makes one product replace the other. This also occurs with tea and coffee, and petroleum and natural gas because one product can replace the other. Also, because of this, it is common customers buy only one of the products rather than both depending on preferences, price, availability, etc.
On the other hand, complementary goods are those that are used together, this often implies customers buy the two products and changes in one product affect the other. This occurs in the case of printer and ink cartridge because the products are used together and buying a printer often implies customers need to buy the cartridges. Similarly, pens and refills for pens are used and bought together, and one cannot replace the other.
Each of the following scenarios will result in either a shift in the supply curve for labor or a change in the quantity supplied of labor. For each scenario, please indicate whether the change will affect supply or quantity supplied, and in which direction the change will occur.
a. Hot springs are discovered outside of Golden, Colorado, resulting in the construction of several new ski resorts. The resorts offer man personalized services and require a large staff to accommodate customer needs.
What changes:
Which direction:
b. The Federal government decides to adopt a new visa policy for guest workers seeking to immigrate to the United States in order to find jobs. As a result, 30% more work visas are given out than had previously been granted. The change is expected to be permanent.
What changes:
Which direction:
c. A new diet is popularized by a health expert, Richardo Simmonetz, that requires people to eat only fried chicken for six weeks. The popularity of the diet results in more chicken plants being built nationwide to handle the increased demand for chicken.
What changes:
Which direction:
d. Due to low ticket sales, the Broadway production of the musical 'Mister Saigon' decides to have its main actors double up on roles, train them on stagecraft, and have them sell concessions during the intermission, instead of having individual workers for each of these roles.
What changes:
Which direction:
Answer and Explanation:
The changes and direction of each point is described below:-
a. As the resort needs new workers, this moves the demand curve to the right, so that salaries rise, and therefore higher wages contribute to an increase in the quantity offered to the right.
So, the correct answer is it will change the quantity and move in the right direction.
b. If more work visas are provided, supply will switch due to factors other than salaries and supply curve
So, it will change in supply and move in the right direction.
c. More labor is needed for more chicken plants, this will move the demand curve to the right so that wages will rise, and therefore higher wages will lead to an increase in the in quantity supplied to the right
So, the correct answer is it will change the quantity and move in the right direction.
d. Since the production house will now require fewer people, wages will decrease so that the quantity supplied will decrease and the quantity supplied will, therefore change to the left.
So, the correct answer is it will change the quantity supplied and move in the left direction.
The following scenarios are :
Answer a :The resorts offer man personalized services and require a large staff to accommodate customer needs so as the condition states that the need resorts need more laborers
Changes: Quantity supplied of labor.
Direction: Move in the right direction.
Answer b:As it shows that more work visas are being provided and supply will tend to switch due to factors other than salaries and supply curve.
Changes: Supply Curve for labor.
Direction: Move in the right direction.
Answer c :
The popularity of the diet results in more chicken plants being built nationwide to handle the increased demand for chicken so the demand for labor is needed to be increased.
Changes: Quantity supplied of labor.
Direction: Move in the right direction.
Answer d :
Due to low ticket sales, the Broadway production house needs to reduce people so this results in a decrease in wages.
Changes: Quantity supplied of labor.
Direction: Move in the left direction.
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Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $700 million. The depreciation expense for 2020 is expected to be $150 million. The capital expenditures for 2020 are expected to be $375 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 7% per year. The required return on equity is 13%. The WACC is 11%. The firm has $199 million of non-operating assets. The market value of the company's debt is $3.534 billion. 120 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today
Answer:
The company's stock price today should be $71.17 per share.
Explanation:
The corporate valuation model approach can be used to estimate this by using the following steps:
Step 1: Calculation of the free cash flow
Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:
Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure
For this question, we therefore have:
Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million
Step 2: Calculation of Value of operations (Vo)
Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million
Step 3: Calculation of the Firm value
Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million
Step 4: Calculation of value of equity
Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million
Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.
Step 5: Calculation of stock price per share today
Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share
Therefore, the company's stock price today should be $71.17 per share.
A support level is the price range at which a technical analyst would expect the Multiple Choice demand for a stock to decrease substantially. price of a stock to fall. supply of a stock to increase dramatically. supply of a stock to decrease substantially. demand for a stock to increase substantially.
Answer:
The answer is D. demand for a stock to increase substantially.
Explanation:
The point where technical analysts expect a substantial increase in the demand for a stock to occur is called a support level.
Most stock prices remain stable and fluctuate up and down. The lower limit to these fluctuations is called a support level - the price range where a stock appears cheap, making its demand to increase substantially.
Gross Profit MethodBased on the following data, estimate the cost of the ending merchandise inventory: Sales (net) $9,250,000 Estimated gross profit rate 36% Beginning merchandise inventory $180,000 Purchases (net) 5,945,000 Merchandise available for sale $6,125,000
Answer:
$205,000
Explanation:
The computation of the cost of the ending merchandise inventory is shown below:-
Cost of the ending merchandise inventory = Merchandise available for sale - (Net Sales - Gross profit)
= $6,125,000 - ($9,250,000 - $9,250,000 × 36%)
= $6,125,000 - ($9,250,000 - $3,330,000)
= $205,000
Therefore we applied the above formula so that the cost of ending merchandise inventory could come
West Corp. issued 13-year bonds 2 years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds currently sell for 98 percent of par value, what is the YTM?
Answer:
9.68%
Explanation:
yield to maturity (YTM) = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]
face value = $1,000
market value = $1,000 x 0.98 = $980
n = (13 - 2) x 2 = 22
coupon = $1,000 x 0.094 x 1/2 = $47
YTM = {$47 + [($1,000 - $980) / 22]} / [($1,000 + $980) / 2] = $47.9090 / $990 = 0.4839 x 2 (annual rate) = 0.09678 = 9.68%
Jim's Espresso expects sales to grow by 9.6 % next year. Assume that Jim's pays out 80.7 % of its net income. Use the following statements and the percent of sales method toforecast:
a. Stockholders' equity
b. Accounts payable
The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.
Balance Sheet
Assets
Cash and Equivalents $15,050
Accounts Receivable 2070
Inventories 4090
Total Current Assets $21,210
Property, Plant and Equipment 10050
Total Assets $31,260
Liabilities and Equity
Accounts Payable $1,580
Debt 3930
Total Liabilities $5,510
Stockholders' Equity 25750
Total Liabilities and Equity $31,260
Income Statement
Sales $204,560
Costs Except Depreciation (99,880)
EBITDA $104,680
Depreciation (5,960)
EBIT $98,720
Interest Expense (net) (410)
Pretax Income $98,310
Income Tax (34,409)
Net Income $63,901
Answer:
Stockholder equity = $36,513
Accounts payable = $1,428
Explanation:
Sales next year= 204,560 * ( 1 + 9.6%)
=204,560 * 0.904
=184922.24
=$184,922
Net income next year = 184,922 * (63,901 / 204,560)
=57766.42
=$55,766
Dividend paid next year= 55,766 * 80.7%
= 45,003.16
=$45,003
a. Stockholder equity =25750 + 55,766 - 45,003
= $36,513
b. Accounts payable = 1,580 * ( 184922 / 204,560)
=1,428.31
=$1,428
There are two goods that you can spend your income on; good X and good Y. The price of good X is Px and the price of good Y is Py. The level of income is N$1800 and tour utility function is
Answer:
N$1800 = PxX ≤ PyY
Explanation:
Utility is the sanctification a consumer services from consuming a good or a service.
An utility function measures the preferences of a consumer over a set of goods or services.
given income of $1,800 and prices px and py, a consumer has to choose a bundle of good that maximises utility given income as total expenditure cannot exceed income
Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a school of industrial relations, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Caroline: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate.
Antonio: I feel that government involvement in the economy should be reduced because government programs cause more harm than good.
Caroline: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate.
1. The disagreement between these economists is most likely due to
a. differences in values
b. differences in scientific judgement
c.differences in perception verse reality.
2. Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Lawyers make up an excessive percentage of elected officials.
b. Minimum wage laws do more to harm low-skilled workers than help them.
c. Tariffs and import quotas generally reduce economic welfare.
Answer:
1) Option A. differences in values
2) Option C. Tariffs and import quotas generally reduce economic welfare
Explanation:
1) Difference in values which can also be called value conflicts are due to variations in belief systems. I.e. when the belief systems of two groups do not allign. While Antonio believes that government programmes should be reduced because they cause more harm than good, Caroline is of the opinion that despite the inefficiency of government programmes, they are still necessary for the less fortunate. This disagreement is as a result of value conflict.
2) Both economists agree on the inefficiency of government programmes. The focal point of Caroline's argument is that government's intervention in the economy is needed for the less fortunate. Based on this premise, two economies chosen at random will most likely agree to the proposition that tariffs and import quotas generally reduce economic welfare.