Answer: C. $7,938
Explanation:
This is a straightforward question. From the question, we are informed that a company must repay the bank $10,000 cash in three years for a loan and that the loan agreement specifies 8% interest compounded annually and we are given the present value factor for three years at 8% is 0.7938.
Therefore, the amount of cash that the company receive from the bank on the day they borrowed this money will be:
= $10000 × Present value factor at 8%
= $10000 × 0.7938
= $7938
A stock has an expected return of 11.85 percent, its beta is 1.08, and the risk-free rate is 3.9 percent. What must the expected return on the market be
Answer:
11.26%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
rm = expected return on the market
11.85 = 3.9 + 1.08(rm - 3.9)
11.85 - 3.9 = 1.08(rm - 3.9)
7.95 = 1.08(rm - 3.9)
7.95 / 1.08 = rm - 3.9
7.361 = rm - 3.9
rm = 11.26
Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers issued $65,000,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $73,100,469. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
For all journal entries with a compound transaction, if an amount box does not require an entry, leave it blank.
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.
2. Journalize the entries to record the following:
a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)
b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)
3. Determine the total interest expense for Year 1. Round to the nearest dollar.
4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest?
5. Compute the price of $73,100,469 received for the bonds by using the present value tables
Answer:
Rodgers Corporation
Journal Entries:
1. July 1, Year 1:
Debit Cash $73,100,469
Credit Bonds Payable $65,000,000
Credit Bonds Premium $8,100,469
To record the issuance of bonds at a premium.
2. a) December 31, Year 1:
Debit Interest Expense $3,494,976.55
Debit Amortization $405,023.45
Credit Cash $3,900,000.00
To record the first semi-annual interest payment, including amortization.
b) June 30, Year 2:
Debit Interest Expense $3,494,976.55
Credit Amortization $405,023.45
Credit Cash $3,900,000.00
To record the second semi-annual interest payment, including amortization.
3. The total interest expense for Year 1 is $3,494,976.55
4. Yes. The bonds are issued at a premium. So the bond proceeds will always be greater than the face amount, and the contract rate (coupon rate) will always be greater than the market (effective) rate.
5. The price of $73,100,469 received for the bonds by using the present value tables is $1,124.62 ($73,100,469/65,000) per $1,000.
Explanation:
a) Data and Calculations:
Face value of bonds issued = $65,000,000
Price received from the issue $73,100,469
Premium received = $8,100,469
Period of maturity = 10 years
Coupon interest rate = 12%
Market (effective) interest rate = 10%
Payment of interest = semiannually on December 31 and June 30
Analysis of Journal Entries:
1. July 1, Year 1:
Cash $73,100,469 Bonds Payable $65,000,000 Bonds Premium $8,100,469
2. a) December 31, Year 1:
Interest Expense $3,494,976.55 Amortization $405,023.45 Cash $3,900,000.00
b) June 30, Year 2:
Interest Expense $3,494,976.55 Amortization $405,023.45 Cash $3,900,000.00
N (# of periods) 20
I/Y (Interest per year) 10
PMT (Periodic Payment) 3900000
FV (Future Value) 65000000
Results
PV = $73,100,439
Sum of all periodic payments = $78,000,000.00
Total Interest $69,899,569
PandemicsPlus just paid a dividend of $1.00 per share and they consistently grown dividends at 4% annually. Investors require a return of 12% on the firm's equity. What is the current value of the stock?
Answer:
$13
Explanation:
The current value of the stock can be determined using the constant growth dividend model
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
(1 x 1.04) / (0.12 - 0.04) = 13
The cost of capital is:___________
a. the return that a previous project for the firm had earned.
b. the minimum return that a capital budgeting project must earn for it to be accepted.
c. the maximum return a project can earn.
d. none of these.
Answer:
I think that the correct answer is b.
Answer:
B
Explanation:
i think the correct answer is B
If the importer... the bill
Answer:
sorry
Explanation:
Coronado Industries can produce 100 units of a component part with the following costs: Direct Materials $24000 Direct Labor 8500 Variable Overhead 22000 Fixed Overhead 11000 If Coronado Industries can purchase the units externally for $60000, by what amount will its total costs change
Answer:
Increase of $5,500
Explanation:
The computation of the change in the total cost is given below:
Total cost at the time of producing is
= Direct material + direct labor + variable overhead
= $24,000 + $8,500 + $22,000
= $54,500
And, the cost of purchasing the unit is $60,000
So, there is an increase of
= $60,000 - $54,500
= $5,500
The same should be relevant
who determines the price in perfect markets?
In a Perfectly Competitive Market or industry, the equilibrium price is determined by the forces of demand and supply. Equilibrium signifies a state of balance where the two opposing forces operate subsequently. An equilibrium is typically a state of rest from which there is no possibility to change the system.
Hope this answer helps you..
.
.
Select it as the BRAINLIEST
Sự gia tăng về giá cả một loại hàng hóa nào đó không chắc chắn là sự gia tăng của lạm phát.đúng hay sai?
A large bakery buys flour in 25-pound bags. The bakery uses an average of 4200 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10.70 per order. Annual carrying costs are $76 per bag. Determine the EOQ. (Keep two decimal places in your answer)
Answer:
34
Explanation:
Annual demand D = 4,200 bags
Ordering cost S = $10.70
Holding cost H = $76
Economic order quantity = [tex]\sqrt{2*D*S / H[/tex]
Economic order quantity = [tex]\sqrt{2*4200*$10.70 / $76}[/tex]
Economic order quantity = [tex]\sqrt{89880/76}[/tex]
Economic order quantity = [tex]\sqrt{1182.63}[/tex]
Economic order quantity = 34.389388
Economic order quantity = 34
In many organizations, information flows much more freely within functional departments than it does across functions (i.e., throughout the entire organization). ________ represents an information system designed to overcome this tendency.
Answer:
ERP
Explanation:
Enterprise resource planning (ERP) means the software that can be used by an organization in order to manage the day to day business activities like accounting, management of risk, supply chain management, project management, etc
Also here the information could be transfer within the functional departments via the overall organization
Therefore the above should be the answer
Yams Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $240,000, and fixed costs $90,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 10% with no change in total variable costs or units sold.
2. Reduce variable costs to 55% of sales.
Required:
Compute the net income to be earned under each alternative. Which course of action will produce the higher net income?
Answer:
Yams Company
Alternative 1: Increasing the selling price by 10% with no change in total variable costs or units sold will produce the higher net income.
Explanation:
a) Data and Calculations:
Total Unit Quantity
Sales for the month of August = $400,000 $80 5,000
Variable costs = $240,000 48 5,000
Fixed costs = $90,000
Alternatives to increase net income:
Alternative 1 Alternative 2
Sales revenue $440,000 $400,000
Variable costs 240,000 220,000
Contribution margin $200,000 $180,000
Fixed Costs 90,000 90,000
Net income $110,000 $90,000
George has been selling 8,000 T-shirts per month for $8.00. When he increased the price to $9.00, he sold only 7,000 T-shirts.
Which of the following best approximates the price elasticity of demand?
A. -1.2467
B. -1.02
C. -0.5667
D. -1.1333
Suppose George's marginal cost is $3 per shirt.
Before the price change, George's initial price markup over marginal cost was approximately
A. 0.5625
B. 0.375
C. 0.625
D. 0.6875
George's desired markup is?
A. 1.3235
B. 0.7941
C. 0.9706
D. 0.8824
Since George's initial markup, or actual margin, was (LESS OR GREATER) than his desired margin, raising the price was (PROFITABLE OR NOT PROFITABLE).
Answer:
a. The best approximates the price elasticity of demand is -1.1333. Therefore, the correct option is D. -1.1333.
b. George's Initial price markup over marginal cost = 0.625. Therefore, the correct option is C. 0.625.
c. George's desired markup = 0.8824. Therefore, the correct option is D. 0.8824.
d. Since George's initial markup, or actual margin, was LESS than his desired margin, raising the price was PROFITABLE.
Explanation:
a. Which of the following best approximates the price elasticity of demand?
Price elasticity of demand = Percentage change in quantity demanded / Percentage change in price ................ (1)
Where, based on the midpoint formula, we have:
Percentage change in quantity demanded = {(New quantity demanded – Old quantity demanded) / [(New quantity demanded + Old quantity demanded) / 2]} * 100 = {(7000 - 8000) / [(7000 + 8000) / 2]} * 100 = -13.3333333333333%
Percentage change in price = {(New price - Old price) / [(New price + Old price) / 2]} * 100 = {(9 - 8) / [(9 + 8) / 2]} * 100 = 11.7647058823529%
Substituting the values into equation (1), we have:
Price elasticity of demand = -13.3333333333333% / 11.7647058823529% = -1.13333333333333
Approximated to 4 decimal places, we have:
Price elasticity of demand = -1.1333
This implies that the best approximates the price elasticity of demand is -1.1333.
Therefore, the correct option is D. -1.1333.
b. Suppose George's marginal cost is $3 per shirt. Before the price change, George's initial price markup over marginal cost was approximately.
George's Initial price markup over marginal cost = (Initial selling price - marginal cost) / Initial selling price = ($8 - $3) / $8 = 0.625
Therefore, the correct option is C. 0.625.
c. George's desired markup is?
George's desired markup = 1 / Absolute value of price elasticity of demand BEFORE approximation to 4 decimal places = 1 / 1.13333333333333 = 0.88235294117647
Approximated to 4 decimal places, we have:
George's desired markup = 0.8824
Therefore, the correct option is D. 0.8824
d. Since George's initial markup, or actual margin, was (LESS OR GREATER) than his desired margin, raising the price was (PROFITABLE OR NOT PROFITABLE).
George's Initial price markup over marginal cost = 0.625
George's desired markup = 0.8824
Therefore, we have:
Since George's initial markup, or actual margin, was LESS than his desired margin, raising the price was PROFITABLE.
Jeffrey Dean, a Master's Degree candidate at North State Central University, was awarded a $15,000 scholarship from North State Central in the current year. During the current year, he paid the following expenses: Tuition $12,000 Books 1,000 Fees 500 Room and Board 1,500 In addition, he received $6,000 for teaching two undergraduate accounting courses. What amount must be included in Dean's gross income
Answer: $7500
Explanation:
It should be noted that the gross income exclusion towards a scholarship will consist of the education related expense and the tuition only.
In this case, the income that was earned which is $6000 and the room and board expense of $1500 will be added which makes $7500. Therefore, the amount that must be included in Dean's gross income is $7500.
Common property resources like fish stocks in open waters tend to be overutilized because :________.
A. the marginal social cost is always equal to the private marginal cost.
B. the marginal social cost is less than the private marginal cost.
C. the marginal social cost is greater than the private marginal cost.
D. none of the above.
Answer:
C. the marginal social cost is greater than the private marginal cost.
Explanation:
In the case when there is common property resources such as the fish stock that lies in the open waters should be overutilized as the marginal social cost should be more than the private marginal cost because if there is high utlization so it will make the problem in the environment also the cost should be borne by the present and upcoming generations
Therefore the option c is correct
Landon Stevens is evaluating the expected performance of two common stocks, Furhman Labs, Inc., and Garten Testing, Inc. The risk-free rate is 4.4 percent, the expected return on the market is 10.6 percent, and the betas of the two stocks are 1.4 and 0.7, respectively. Stevens’s own forecasts of the returns on the two stocks are 10.60 percent for Furhman Labs and 10.50 percent for Garten.
Required:
a. Calculate the required return for each stock.
b. Is each stock undervalued, fairly valued, or overvalued?
Answer:
a. Furhman Labs, Inc. : 13.08%
Garten Testing, Inc. : 8.74%
b. Furhman Labs
the stock is undervalued
Garten Testing
the stock is overvalued
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
Furhman Labs, Inc. : 4.4 + 1.4(10.6 - 4.4) = 13.08%
Garten Testing, Inc. : 4.4 + 0.7(10.6 - 4.4) = 8.74%
A stock is overvalued if its intrinsic value is less than the forecast, and, it is undervalued if its intrinsic value is greater than the forecast
Furhman Labs, intrinsic value = 13.08
forecasted value = 10.60
the stock is undervalued
Garten Testing, Inc , intrinsic value = 8.74%
forecasted value = 10.50
the stock is overvalued
ABC Manufacturing allocates overhead based on direct labor hours. You are given the following information for 2020:
Budget: Budgeted overhead $2,000, budgeted direct labor hours: 1,000
Actual: Actual overhead was $3,000, actual direct labor hours worked: 1,200
Overhead for 2020 was:_______.
a. Underapplied by $1,000
b. Underapplied by $600
c. Overapplied by $1,000
d. Overapplied by $600
Answer:
c. Overapplied by $1,000
Explanation:
Given that budgeted overhead is $2000 and actual overhead is $3000, overhead is overapplied or in excess(deficit) of overhead budget by $1000. If actual overhead were to be lower than budgeted overhead, overhead would be under applied or we would have a surplus of $1000(if budgeted overhead is $3000 and actual overhead is $1000 for example).
Where do you see Dow Jones in the coming two years ?
Many people have strong negative reactions to pop-up, pop-behind, interstitial, and rich media ads. Assume you are the director of an advertising agency that specializes in creating and placing these ads. You see an opinion article in your local online newspaper that harshly criticizes these ads as intrusive and unnecessary. Write a details rejoinder to post in the comments section of this article in which you explain, from the advertiser’s viewpoint, why these ads can be more effective advertising media than text ads.
Answer:
Im on a private jet eating popeyes chicken, i be flexing like im eating popeyes spinach
Explanation:
plato users
Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 2% of sales. Assume that sales were $1,500,000 for January. On February 7, a customer received warranty repairs requiring $325 of parts and $120 of labor.
Required:
a. Journalize the adjusting entry required at January 31, the end of the first month of the current of current fiscal year, to record the accrued product warranty.
b. Journalize the entry to record the warranty work provided in February.
Answer: Please see answer in explanation column
Explanation:
a)Account titles and explanation Debit Credit
Warranty Expense $30,000
Warranty Payable $30,000
Calculation :
2 % x $1,500,000 =$30,000
b) Account titles and explanation Debit Credit
Warranty Provision $445
Materials $325
Salaries Payable $120
anh chị hãy phân tích phản ứng của người tiêu dùng trong lần tăng giá xăng gần đây nhất
Answer:
translate into English
Assume that Zonk is a potential leveraged buyout candidate. Assume that the buyer intends to put in place a capital structure that has 70 percent debt with a pretax borrowing cost of 14 percent and 30 percent common equity. Compute the weighted average cost of capital for Zonk based on the new capital structure.
A. 8.85%.
B. 12.56%.
C. 13.01%.
D. 9.94%.
Answer:
A.8.85%
Explanation:
Computation to determine the weighted average cost of capital for Zonk based on the new capital structure.
First step is to calculate the Cost of equity capital using this formula
Cost of equity capital = Risk free rate + (Beta*Market premium)
Let plug in the formula
Cost of equity capital = 2.3% + (1.13*5.3%)
Cost of equity capital=8.28%
Now let determine theWeighted average cost capital
Weighted average cost capital = [.70*.14*(1-.35)]+(.30*.0828)
Weighted average cost capital= [.70*.14*.65]+.02484
Weighted average cost capital=0.0637+.02484
Weighted average cost capital= .0885*100
Weighted average cost capital= 8.85%
Therefore the weighted average cost of capital for Zonk based on the new capital structure is 8.85%
How do you determined the levels of management in your company?
Answer:
The three levels of management typically found in an organization are low-level management, middle-level management, and top-level management. Low-level managers focus on controlling and directing. They serve as role models for the employees they supervise.
Answer:
This is my Opinion.
I think the answer is The three levels of management typically found in an organization are low-level management, middle-level management, and top-level management. Low-level managers focus on controlling and directing. They serve as role models for the employees they supervise.
Hope this helps you ^^
Meghan, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2020, she leases an office building to use in her business for $157,350 for an 18-month period. To obtain this favorable lease rate, she pays the $157,350 at the inception of the lease.
How much rent expense may Maud deduct on her 2020 tax return? Round any calculations to two decimal places and round the final answer to the nearest dollar.
$
Answer:
Meghan Sole Proprietorship
The rent expense that Meghan may deduct on her 2020 tax return is:
= $96,158.
Explanation:
a) Data and Calculations:
February 1, 2020: Rent Expenses $157,350 Cash $157,350
Rent Expenses for 2020 = $157,350 * 11/18 = $96,158
b) The actual cash payment for rent should be prorated to the months in 2020 for which the rent was consumed. This gives 11 months (from February 1, 2020 to December 31, 2020).
Goods in transit are included in a purchaser's inventory: Multiple Choice At any time during transit. When the goods are shipped FOB shipping point. When the supplier is responsible for freight charges. If the goods are shipped FOB destination. After the half-way point between the buyer and seller.
Answer:
When the purchase s responsible for paying freight charges
Explanation:
Goods in Transit can be regarded as merchandise as well as other types of inventory which has already shipped out of shipping dock of the seller, but it has not gotten to the receiving dock of the buyer.This concept is utilized in order to know maybe the buyer or the seller of that particular goods has taken the possession of that particular goods and to know the party that Is paying for transport. The Freight charge, can be regarded as as freight rate, and this is amount that is been paid to a carrier company so that transportation of goods to agreed location will be possible.
It should be noted that Goods in transit are included in a purchaser's inventory
When the purchase s responsible for paying freight charges
o What’s the Difference Between Non-Formal and Informal Learning
Answer:
I hope this will help you
A project is expected to generate annual revenues of $132,100, with variable costs of $80,200, and fixed costs of $20,700. The annual depreciation is $4,750 and the tax rate is 35 percent. What is the annual operating cash flow
Answer:
$21,943
Explanation:
Calculation to determine the annual operating cash flow
Using this formula
Operating Cash Flow =(Annual Revenue-Variable costs - Fixed costs)×(1-Tax rate)+( Annual depreciation×Tax rate )
Let plug in the formula
Operating Cash Flow =[ ($132,100 - $80,200 - $20,700) x (1 - 0.35)]+ ($4,750 x 0.35)
Operating Cash Flow =
Operating Cash Flow =($31,200×0.65)+$1,663
Operating Cash Flow =$20,280+$1,663
Operating Cash Flow =$21,943
Therefore the annual operating cash flow is $21,943
Determine the missing amounts. Unit Selling Price Unit Variable Costs Unit Contribution Margin Contribution Margin Ratio 1. $650 $390 $enter a dollar amount (a) enter percentages % (b) 2. $200 $enter a dollar amount (c) $92 enter percentages % (d) 3. $enter a dollar amount (e) $enter a dollar amount (f) $805
Answer:
(a) $620
(b) 40%
(c) $208
(d) 31%
(e) $2,683
(f) $1,878
Explanation:
Use the following formula to calculate the unit contribution margin
Unit Contribution Margin = Unit Selling Price - Uni variable cost
Use the following formula to calculate the contribution margin ratio
Contribution Margin ratio = ( Unit Contribution margin / Unit Selling Price ) x 100
The working for the question is attached with this answer please find it.
Sarah Wiggum would like to make a singlelump-sum investment and have $1.6 million at the time of her retirement in 32 years. She has found a mutual fund that expects to earn 4 percent annually.
How much must Sarah invest today?
If Sarah earned an annual return of 16 percent, how much must she invest today?
If Sarah can earn 4 percent annually for the next 32 years, how much will she have to invest today?
Answer and Explanation:
The computation is shown below:
When the rate of interest is 16% so the amount she invested now is
= $1,600,000 ÷ (1.16)^32
= $13,850
And, when the rate of interest is 4%, so the amount she invested now is
= $1,600,000 ÷ (1.04)^32
= $524,590
In this way it should be determined
Cheetah Copy purchased a new copy machine. The new machine cost $100,000 including installation. The company estimates the equipment will have a residual value of $25,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows:
Year Hours Used
1 3,000
2 2,000
3 1,200
4 2,800
Required:
Prepare a depreciation schedule for four years using the straight-line method.
Answer:
Results are below.
Explanation:
Giving the following information:
Purchase price= $100,000
Salvage value= $25,000
Useful life= 4 years
To calculate the annual depreciation, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (100,000 - 25,000) / 4
Annual depreciation= $18,750
Year 1:
Annual depreciation= 18,750
Accumulated depreciation= 18,750
Book value= 100,000 - 18,750= 81,250
Year 2:
Annual depreciation= 18,750
Accumulated depreciation= 18,750*2= 37,500
Book value= 100,000 - 37,500= 62,500
Year 3:
Annual depreciation= 18,750
Accumulated depreciation= 18,750*3= 56,250
Book value= 100,000 - 56,250= 43,750
Year 4:
Annual depreciation= 18,750
Accumulated depreciation= 18,750*4= 75,000
Book value= 100,000 - 75,000= 25,000
Brad operates a hardware store. He maintains the books using the cash method. At the end of the year, his accountant computes his accrual basis income that is used on his tax return. For 2018, Brad had cash receipts of $2,200,000, which included $750,000 collected on accounts receivable from 2017 sales. At the end of 2018, he had $910,000 in accounts receivable from customers, all from 2018 sales. Brad paid cash for all of the purchases. The total amount he paid for merchandise in 2018 was $1,100,000. At the end of 2017, he had merchandise on hand with a cost of $165,000. At the end of 2018, the cost of merchandise on hand was $140,000.
a. Brad's accrual basis gross receipts for 2018 are: __________
b. The cost of goods sold for 2018 under the accrual method is: ____________
c. The gross profit from merchandise sales for 2018 under the accrual basis is:__________
Answer:
Brad Hardware Stores
a. Brad's accrual basis gross receipts for 2018 are: __________
= $1,450,000.
b. The cost of goods sold for 2018 under the accrual method is: ____________
= $1,125,000.
c. The gross profit from merchandise sales for 2018 under the accrual basis is:__________
= $1,235,000.
Explanation:
a) Data and Calculations:
Sales revenue for 2018:
Cash receipts = $2,200,000
Less 2017 accounts receivable $750,000
Add 2018 accounts receivable $910,000
Sales revenue for 2018 = $2,360,000
Gross receipts for 2018:
Cash receipts = $2,200,000
Less 2017 accounts receivable $750,000
Gross cash receipts = $1,450,000
Purchases for 2018 = $1,100,000
Beginning inventory = $165,000
Ending inventory = $140,000
Cost of goods sold = $1,125,000
Accrual Basis:
Sales revenue for 2018 = $2,360,000
Cost of goods sold = 1,125,000
Gross profit $1,235,000
