Type the correct answer in the box. Spell all words correctly.
Identify the buying or selling process described in the given scenario.
Donna runs a men's apparel manufacturing company. She is reviewing the different suppliers who can supply her company with the required
raw materials.
Donna is going to engage in
buying ______?
Explanation:
Donna is going to engage in
buying raw materials?
A medical doctor is involved in a $1 million malpractice suit. He can either settle out of court for $250,000 or go to court. If he goes to court and loses, he must pay $825,000 plus $175,000 in court costs. If he wins in court the plaintiffs pay the court costs. Identify the actions of this decision-making problem. Remember, what an action is, something that the decision maker decides to do...
Answer:
there are two different actions in this decision making problem:
action 1: go to court and defend himselfaction 2: settle out of court and pay money to the plaintiffExplanation:
When you are solving a problem and need to make to a decision, the actions are the result of what decision you finally decided to make. In this case, the doctor can decide to go to court or not. If he decides to go to court, he will have to defend himself in court. If he decides not to go to court, he will need to settle with the plaintiff without engaging in a court trial.
The Chester Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,090,000. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use? (Use FASB GAAP
a) $32,720,000
b) $29,448,000
c) $35,446,667
d) $33,538,000
Answer: d) $33,538,000
Explanation:
Use straight line depreciation and find the annual depreciation.
= (40,900,000 - 4,090,000) / 15
= $2,454,000
In 3 years, the depreciation is;
= 2,454,000 * 3
= $7,362,000
Net book value = 40,900,000 - 7,362,000
= $33,538,000
Paris operates a talent agency as a sole proprietorship,and this year she incurred the following expenses in operating her talent agency.What is the total deductible amount of these expenditures?
$1,000 dinner with a film producer where no business was discussed
$500 lunch with sister Nicky where no business was discussed
$700 business dinner with a client but Paris forgot to keep any records (oops!)
$900 tickets to the opera with a client following a business meeting
A) $450.
B) $900.
C) $1,100.
D) $1,200.
E) $0
Answer:
A) $450.
Explanation:
The computation of the total deductible amount of the expenses is as follows:
In the case of the deduction with respect to the meal cost and entertainment. Only the half of the expense would be deducted i.e. for the business meeting
As in the question the opera tickets is $900 so the half of $900 i.e. $450 would be allowed as a deduction
Therefore the correct option is A.
The discount rate includes ________ in the basic valuation model.
a. cash flows.
b. timing.
c. risk.
d. total value.
Answer:
c. risk
Explanation:
The discount rate usually stands for the opportunity cost of investing elsewhere or the cost of sourcing finance. therefore, it includes a risk component.
Please help me Im stuck on this
Xtron has few rules and procedures and prides itself on empowering lower-level employees to be nimble and responsive to its customers' rapidly changing needs. Xtron would be best described as a(n) ______ organization.
Answer:
Organic
Explanation:
From the question, we are informed about Xtron who has few rules and procedures and prides itself on empowering lower-level employees to be nimble and responsive to its customers' rapidly changing needs. In this case Xtron would be best described as a organic organization.
Organic organizations, which was set up by Tom Burns and G.M. Stalker arround 1950, organic organization can be regarded as organization that is can be embrace flexibility and have the potential to adapt well to changes, they also have
value external knowledge.
if we say local materials
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $17,900 for March and $50,600 for April. What are the budgeted cash receipts from sales on account for April
Answer:
$26,075
Explanation:
Follow the Receipt Cycle that has been stated but this time focusing on the month of April
Receipts :
Collection for April Sales ( $50,600 × 25%) = $12,650
Collection for March Sales ( $17,900 × 75%) = $13,425
Total Collection in April = $26,075
Therefore, Total cash receipts from sales on account for April are $26,075.
Which management function is also a financial responsibility
A.planning
B.organizing
C.staffing
D.coordinating
E.controlling
Answer:
The CORRECT answer is...... Staffing
Explanation:
Look at the picture
When reflecting upon the newer generation, each older generation says the same thing:
Answer:
live long boomers
Explanation:
You have taken out a $350,000, 3/1 ARM. The initial rate of 6.0% (annual) is locked in for three years. Calculate the outstanding balance on the loan after three years. The interest rate after the initial lock period is 6.5%. (Note: the term on this 3/1 ARM is 30 years.)
A) $336,294.25
B) $2,098.43
C) $347,901.57
D) $2,183.95
Answer:
A) $336,294.25
Explanation:
Loan = 350,000
Rate 6%
Years = 30
PMT = PMT(Rate/12, 30*12, -Loan)
PMT = PMT(6%/12, 360, -350,000)
PMT = $2,098.43
Loan balance after 3 years = 27 years left
Loan Balance = PV(Rate/12, 27*12, -PMT)
Loan Balance = PV(6%/12, 324, -2,098.43)
Loan Balance = $336,294.25
You have been offered a 10-year bond issued by Tiger Inc., at a price of $950.00. The bond has a coupon rate of 8% and pays the coupon semiannually. Similar bonds in the market offers a yield of 9% today. Should you buy the bonds at the offered price
Answer:
since the market price is lower than the offered price, you should reject this offer
Explanation:
bond's market value
PV of face value = $1,000 / (1 + 4.5%)²⁰ = $414.64
PV of coupon payments = $40 x 13.00794 (PV annuity factor, 20 periods, 4.5%) = $520.32
market price = $934.96
since the market price is lower than the offered price, you should reject this offer
Given the following data:
Net sales $430,000
Cost of goods sold $80,000
Gross profit $350,000
Operating expenses $50,000
Net income $300,000
In vertical analysis, net income would be expressed as: (Round your final answer to the nearest whole percent)
A. 12%.
B. 81%.
C. 70%.
D. 19%
Answer:
C. 70%.
Explanation:
Calculation for the net income
Using this formula
Net income=Net income/Net Sales
Let plug in the formula
Net income= $300,000/ $430,000
Net income=70%
Therefore the net income would be expressed as 70%
Green Mountain Producers Inc. is an oil drilling company. the company paid a dividend of $3.10 last year, and, in the past, its dividend has increased steadily by about 4% a year. Green Mountain just announced that its dividend will increase to $4.20 this year, and its share price rose from $38 per share to $40 per share immediately after the announcement.
Which of the following best explains why Green Mountain's stock price increased as it did?
The clientele effect
Dividend irrelevance theory
The signaling hypothesis
Which of the following statements is true?
Taxes on dividend income are paid in the year that they are received.
Taxes on dividend income s are paid when the stock is sold.
As a result, the U.S. tax code encourages many individual investors to prefer to receive _____
Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. the theory of_______ explains this phenomenon.
In some cases, analysts notice that groups of similar investors tend to flock to stocks that have dividend policies consistent with their needs. This circumstance is an illustration of:________.
the information content effect
the clientele effect
Answer:
answer to the first question:
The signaling hypothesisThis theory basically states that when a company announces higher dividends, it means that it is performing better than expected and the company's management believes that it will grow more in the future.
answer to the second question:
Taxes on dividend income are paid in the year that they are received.Dividends are taxed as ordinary income, so they will be taxed on the year that they are received.
fill in the blanks:
As a result, the U.S. tax code encourages many individual investors to prefer to receive long term capital gains.
Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. the theory of signaling explains this phenomenon.
In some cases, analysts notice that groups of similar investors tend to flock to stocks that have dividend policies consistent with their needs. This circumstance is an illustration of: the clientele effect.
If you borrow $700 for 6 months at 8% annual simple interest, how much must you repay at the end of the 6 months
Answer:
[tex]\$728[/tex]
Explanation:
Let P denotes principal amount, R denotes rate of interest and T denotes time period.
Principal amount [tex](P)=\$700[/tex]
Rate of interest [tex](R)=8\%[/tex]
Time [tex](T)=6[/tex] months [tex]=\frac{6}{12}=\frac{1}{2}[/tex] years
Simple interest [tex]=\frac{PRT}{100}=\frac{700(8)(\frac{1}{2}) }{100} =\$28[/tex]
Amount paid at the end of 6 months = P + Simple interest [tex]=700+28=\$728[/tex]
What is the main advantage of having a skill set with a high market value?
A. Worker organizations have a major need for those skills.
B. Employers are willing to pay more for those skills.
C. There are fewer regulations restricting those skills.
D. Workers are more productive per hour using those skills.
Answer:
Option B
Explanation:
In simple words, the main benefit of having a high market value is that one will get a high price for the services he or she will provide. Their job will remain stable and they can lead a good life with the compensation they will receive.
Thus, from the above we can conclude that the correct option is B.
A survey reveals that, on a small island, 175 people have jobs, 25 people are not working but are looking for jobs, and 90 people are neither working nor looking for work. The unemployment rate on the island is:____.
Answer:
The answer is = 12.5%
Explanation:
The 175 people that have jobs are in unemployment (employed).
The 25 people that are not working but are looking for jobs are called unemployed.
The 90 people are neither working nor looking for work for work are not counted in the employment.
Therefore, the labor force is employed people + unemployed people.
Labor force is 175 + 25= 200 people.
So, unemployment rate is:
(unemployed people ÷ labor force) x 100
(25÷200) x 100%
=12.5%
Proper Paints Company has a target capital structure of 35% debt and 65% common equity with no preferred stock. Its before tax cost of debt is 8% and its marginal tax rate is 25%. The current stock price is P0 = $22. The last dividend was D0 = $2.25 and it is expected to grow at a 5% constant rate. What is its cost of equity and it's WACC?
Answer:
cost of equity = 15.74 %
WACC = 12.33 %
Explanation:
The Weighted Average Cost of Equity (WACC) is the return that is required by providers of Long Term source of finance. WACC assumes the Pooling of Funds Principle when it comes to financing projects.
WACC = E/V × Ke + D/V × Kd
Where,
E/V = Market Weight of Equity
= 0.65
Ke = Cost of Equity
= D1 / P0 + g
= ($2.25 × 1.05)/ $22 + 0.05
= 15.74 %
D/V = Market Weight of Debt
= 0.35
Kd = Cost of Debt
= 8% × (1 - 0.25)
= 6 %
Therefore,
WACC = 0.65 × 15.74 % + 0.35 × 6 %
= 12.33 %
A provider of oil for home heating systems is offering $100 off its first delivery to new customers. This is an example of which sales promotion tactic?
a. Contest
b. Free gift with purchase
c. Bonuses
d. Push money
Answer:
b. Free gift with purchase
Explanation:
The promotion tactic that the provider is trying to use is a Free gift with purchase. This is because by making your first every purchase the company is basically gifting you a certain amount of money through a discount of your purchasing total. Companies tend to do this in order to attract customers through the enticement of free money or products/gifts. They are able to do this because a single purchase will make them more profit than they are wasting on the gift and can lead to recurring customers.
King Corporation owns machinery with a book value of $760,000. It is estimated that the machinery will generate future cash flows of $700,000. The machinery has a fair value of $560,000. King should recognize a loss on impairment of:_____.
A. $ 60,000.
B. $ 140,000.
C. $200,000.
D. $ -0-.
E. None of the other answers are correct.
Answer:
C. $200,000.
Explanation:
The computation of the impairment loss is shown below:
= Book value of the machinery - fair value of machinery
- $760,000 - $560,000
= $200,000
Hence, the impairment loss is $200,000
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was __________ if the value of the securities is now 2,440 pounds and the pound is worth $1.61.
a. 16.7%.
b. 20.0%.
c. 12.5%.
d. n/a.
Answer:
d. n/a
Explanation:
Calculation for Your total return based on U.S. dollars
Total return=(2,440 pounds*$1.61)- (2,340 pounds*$1.52)/ (2,340 pounds*$1.52)
Total return=$3,928.4-$3,556.8/$3,556.8
Total return=$371.60/$3,556.8
Total return=0.1045*100
Total return=10.45%
Therefore Your total return based on U.S. dollars was 10.45%
. Define corporate-level strategy. What are the different levels of diversification firms
can pursue by using different corporate-level strategies?
Answer:
Tipos de diversificación empresarial
Explanation:
°Inversión propia. Constituye la fórmula de diversificación más seguida, puesto que supone echar mano de los recursos propios a la hora de intentar conquistar nuevos espacios productivos y clientes.
°Adquisición total o parcial de una empresa.
°Diversificación relacionada.
°Diversificación no relacionada.
The average duration of unemployment is _________. Multiple Choice both a coincidental indicator and a lagging indicator a lagging economic indicator a coincidental economic indicator a leading economic indicator
Answer:
lagging economic indicator
Explanation:
The average amount of time it takes for an unemployed person to find a new job is a scenario of lagging economic indicator, the Employment rate is usually one of the last things work in in an economy that is about or entering a period of expansion. Sackings or Layoffs of staff are one of the last resorts for companies when the economy turns down.
Another way is due to fact that businesses wait until companiestokk lay off, and wait until recoveries look secure to rehire, this part is necessary as it lags the cycle on both the way down and the way up
Jamison Company had sales revenue and operating expenses of $5,000,000 and $4,200,000, respectively, for the year just ended. If invested capital amounted to $6,000,000, the firm's ROI was:_________
A. 13.33%.
B. 83.33%.
C. 120.00%.
D. 750.00%.
Answer:
A,. 13.33%.
Explanation:
Return on Investment (ROI) which gives the efficiency of a particular investment
We were given invested capital amounted as $6,000,000, and operating expenses as $5,000,000
We can calculate net income by substracing equal sales revenue from operating expenses
net income can be calculated as = ($5000000-$420000)
= $800000
ROI can be calculated as
net income/Capital investment
$800000/$6000000
=. 13.33%.
For a pure competition firm if price is less than the minimum of the __________, output at 0 will result in less loss than producing at any other level.
Answer:
need more information
Explanation:
For a pure competition firm is charging a price less than the minimum average variable cost at zero output , will result in a loss than producing at any other level.
What is a pure competition firm?A theoretical market structure is referred to as pure competition. There are numerous buyers and sellers, and prices are determined by supply and demand. Companies make only enough money to stay in business. If they made too much money, other companies would enter the market and drive down profits.
If a profit-maximizing firm produces a positive output in the short run, then the market price must be greater than or equal to the Average variable cost (AVC) at that output level. Hence when price is less than minimum AVC, the firm produces zero output.
Therefore the market price is less than average variable cost for zero output for pure competition firm.
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An early 1970s government study ("Work in America") identified three chief sources of worker dissatisfaction. Which of the following is one of those sources?
Answer:
The right approach is "The rigidity of rules and regulations".
Explanation:
Laws, as well as regulations throughout the red tape, are also rigid as well as unyielding. Clear, simple to comprehend. Because once we speak about administrative management, there have been many disadvantages to something like the mere implementation of that kind of principle to administer any organization.Maybe that's why the aforementioned is indeed the easiest alternative.
At contract maturity the value of a call option is ___________, where X equals the option's strike price and ST is the stock price at contract expiration.
a. max (0, ST - X)
b. min (0, ST - X)
c. max (0, X - ST)
d. min (0, X - ST)
Answer:
A. Max (0, ST - X)
Explanation:
call option which is also known as a "call", can be regarded as a contract, that exist between both buyer as well as the seller of the call option, in so that security exchange at a set price can occur. It should be noted that At contract maturity the value of a call option is Max (0, ST - X) where X equals the option's strike price and ST is the stock price at contract expiration.
A company purchased an asset for $2,850,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33%, 44.45%, and 14.81%, respectively. What is the book value of the equipment at the end of the project?
A) $211,185.B) $0.C) $633,270.D) $1,900,095.E) $2,638,815.
Answer:
A) $211,185
Explanation:
The computation of the book value of the equipment at the end of the project is as follows;
Depreciation in Year 1 is
= Asset Price × 33.33%
= $2,850,000 × 33.33%
= $949,905
Depreciation in Year 2 is
= Asset Price × 44.45%
= $2,850,000 × 44.45%
= $1,266,825
And, Depreciation in Year 3 is
= Asset Price × 14.81%
= $2,850,000 × 14.81%
= $422,085
Now
Total Accumulated Depreciation is
= $949,905 + $1,266,825 + $422,085
= $2,638,815
And, finally
Book Value of the equipment is
= $2,850,000 - $2,638,815
= $211,185
Therefore the correct option is a.
four activities or services that make trade easy
Answer:
The activities are:
1. Transport
In the cutting edge times there is a tremendous distance between places of creation and the places of utilization. This trouble is eliminated by a significant guide to exchange known as Transport.Transport makes place utility.
2. Communication
Communication implies sending or trade of data starting with one individual then onto the next.
Communication can be oral or recorded as a hard copy. It is important to impart data starting with one then onto the next to finish and settle the terms of deals, for example, costs of products, markdown permitted, the office of credit, and so forth
3. Banking
Banking tackles the issue of money. Finance managers get cash and furthermore pays cash in huge sums. It is unsafe to convey a lot of money starting with one spot then onto the next. Here comes Banking as an answer. Banking and monetary organizations take care of the issue of installment and encourage a smooth trade among purchaser and dealer. The finance managers may likewise require present moment and long haul reserves. Banks give such account to money managers.
4. Advertising
Advertising fills the information hole and it unravels the trouble of data. Trade of merchandise and ventures conceivable just if makers can carry the items to the customers. Advertising and exposure are significant media of mass correspondence. Advertising encourages buyers to think about the different brands fabricated by a few makers. The media used to publicize items are Radio, Papers, Magazines, television, the Web, Bulletin, and so on
Explanation:
Trade of products includes a few challenges, which are eliminated by helpers or strengthening underpins known as Aids to Trade.
Here, guides to exchange alludes to every one of those elaborate exercises, which straightforwardly or in a roundabout way encourages smooth trade of merchandise and enterprises.