Answer: their affordable monthly payment
Explanation:
A potential buyer should avoid starting negotiations with automobile sales staff by establishing their affordable monthly payment.
When someone is talking with a car salesman, the person should avoid discussing the payment that he or she can afford. When one discloses their affordable monthly payment at first, this could end up having a negative effect on them as the salesperson could take advantage of the monthly payment offered if it's higher than what the sales person wanted to offer.
The use of acquisition cost as a valuation method is justified on the basis that acquisition cost is: Select one: a. relevant b. timely c. subjective d. objective
Answer: d. objective
Explanation:
The Acquisition cost of an asset is the total cost that the company incurred for the asset. It is objective because it does not change and is not influenced by the Accounting method used by the company.
It can therefore be used as a valuation method for the asset regardless of which company it is sold to and that makes it very advantageous for comparison and other calculations.
Consider the following stock price and shares outstanding data: Stock Name Price per Share Shares Outstanding (Billions) Lowes $28.80 1.53 Wal-Mart $47.90 4.17 Intel $19.60 5.77 Boeing $75.00 0.79 The total market capitalization for all four stocks is closest to:
Answer: B. $415 Billion
Explanation:
Total Market Cap is the total market value of all the stock of the 4 companies.
= ∑(Price per share * Shares outstanding)
= (28.8 * 1.53) + (47.90 * 4.17) + (19.60 * 5.77) + (75 * 0.79)
= 44.064 + 199.743 + 113.092 + 59.25
= $416 billion
Closest to option B.
Find the value of $15,000 at the end of one year if it is invested in an account that has an interest rate of 4.95% and is compounded in accordance with the rules below. a. compounded monthly b. compounded daily (assuming a 365-d
Answer:
Results are below.
Explanation:
Giving the following information:
Initial investment= $15,000
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
a) i= 0.0495/12= 0.004125
FV= 15,000*(1.004125^12)= $15,759.58
b) i= 0.0495/365= 0.0001356
FV= 15,000*(1.0001356^365)= $15,761.04
an article in the Wall Street Journal on the recreational vehi- cle (RV) industry listed several factors that led to a larger quantity of RVs sold: a. Increasing confidence among households that their future incomes would rise
Answer and Explanation:
When there is a movement in a demadn curve so it could be bought when the price vary so in the given case all four factors need to be required for shifting the demand curve
1. As if the confidence is increased so the demand increased that shift the demand curve to the right
2. Now if the credit is cheaper so the RV could be purchased in an easiest way due to which demand increased that shift the demand curve to the right
3. Gasoline i.e. fuel is a complementary good for RV if the gasoline is fallen so it would be more affordable due to which the demand increased hat shift the demand curve to the right
4, Due to the Consumer preference the demand increased that shift the demand curve to the right
Preston John, the office manager of Greenleaf Inc. strongly believes that providing positive consequences for a job well done will increase the likelihood of good work performance in the future. He personally sends e-mails to his employees to commend their efforts when they perform well. From this it can be inferred that Preston believes in ________
Answer:
positive reinforcement
Explanation:
Positive reinforcement is a psychological behavior. It may be defined as the giving or providing someone with a rewards or a praising somebody when the person performed the desired action or work.
In the context, Preston John believes in the positive reinforcing his employees and personally mailing them and congratulating them for their hard work and achievements. He believes that by doing so, it will increase the likelihood of the good work performance of the employees in the future.
Suppose that Luther's beta is 0.9. If the market risk premium is 8% and the risk-free interest rate is 4%, then then expected return for Luther stock is?
Answer:
11.2%
Explanation:
Luther's beta is 0.9
Market risk premium is 8%
Risk free Interest rate is 4%
Therefore the expected return for Luther's stock can be calculated as follows
= risk free interest rate + beta × risk premium
= 4/100 + 0.9 × 8/100
= 0.04 + 0.9 × 0.08
= 0.04 + 0.072
= 0.112 × 100
= 11.2%
Hence the expected return for Luther's stock is 11.2%
What is the future value of $100 after 3 years if the appropriate interest rate is 8%, compounded annually? ($125.97) Compounded monthly? ($127.02
Answer: If compounded annually, future value =$ 125.97
If compounded monthly, future value =$ 127.18
Explanation:
Accumulated amount : [tex]A=P(1+\dfrac{r}{n})^{nt}[/tex], where P=principal value, t= time, n= number of periods and r =rate of interest.
Given: Principal value = $100
Time = 3 years
rate of interest : r= 0.08
If compounded annually, n=1
[tex]A=100(1+0.08)^3=100(1.08)^3=100\times1.259712=\$125.97[/tex]
Hence, future value =$ 125.97
If compounded monthly, n=12
[tex]A=100(1+\dfrac{0.08}{12})^{12\times3}=100(1.0067)^{36}=100\times1.271752=\$127.18[/tex]
Hence, future value =$ 127.18
A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $94. The entry to replenish the fund would
Answer:
Debit to Cash Over and Short for $3"
Explanation:
When A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $94 . It means $94 is already paid by receiving receipts of the expenses and $3 in petty cash fund , since the petty cash is of $100 there is short of $3 ($100 - $94 -$3)
The current dividend paid by Astromarketis $1. It is expected to grow by 40% a year for two years, and then at 3% forever. The company cost of capital is 10%. What is the value of Astromarket stock
Answer:
P₀ = $26.73
Explanation:
Div₀ = $1 (current dividend)
Div₁ = $1.40 (40% growth)
Div₂ = $1.96 (40% growth)
Div₃ = $2.0188 (3% growth rate forever)
the terminal value at year 2 = Div₃ / (Re - g) = $2.0188 / (10% - 3%) = $28.84
P₀ = $1.40/1.1 + $1.96/1.1² + $28.84/1.1² = $26.73
Joe’s Beer, Bait, & Tackle Co. is a small chain of fishing tackle stores in northern Minnesota. In 2019, the company’s revenue was $4,300,000 and its cost of sales was $3,200,000. Assume 52 weeks and 365 days per year. Joe keeps only 7.59 days-of-supply of inventory on average because much of his inventory is live bait and micro-brew beer, both of which have a short shelf life. What is his annual inventory turns?
Answer:
the annual inventory turn is 48.09
Explanation:
The computation of the annual inventory turns is shown below:
Annual inventory turn
= Number of days in a year ÷ Number of days of inventory
= 365 days ÷ 7.59 days
= 48.09
We simply applied the above formula and the same is to be considered
hence, the annual inventory turn is 48.09
By dividing the total days from the inventory days we can get the annual inventory turn
HCC, Inc., expects its dividends to grow at 25 percent per year for the next seven years before levelling off to a constant 3 percent growth rate. The required return is 11 percent. What is the current stock price if the annual dividend per share that was just paid was $1.05
Answer:
the current stock price is $43.21
Explanation:
The computation is shown below:
Last Dividend = D0= $1.05
Required Return = rs = 11.00%
The growth rate for the next 7 years = 25%
Growth rate = 3%
Now
D1 = $1.0500 × 1.25 = $1.3125
D2 = $1.3125 × 1.25 = $1.6406
D3 = $1.6406 × 1.25 = $2.0508
D4 = $2.0508 × 1.25 = $2.5635
D5 = $2.5635 × 1.25 = $3.2044
D6 = $3.2044 × 1.25 = $4.0055
D7 = $4.0055 × 1.25 = $5.0069
D8 = $5.0069 × 1.03 = $5.1571
Now
P7 = D8 ÷ (rs - g)
P7 = $5.1571 ÷ (0.11 - 0.03)
P7 = $64.4638
Now
P0 = $1.3125 ÷ 1.11 + $1.6406 ÷ 1.11^2 + $2.0508 ÷ 1.11^3 + $2.5635 ÷ 1.11^4 + $3.2044 ÷ 1.11^5 + $4.0055 ÷ 1.11^6 + $5.0069 ÷ 1.11^7 + $64.4638 ÷ 1.11^7
P0 = $43.21
Hence, the current stock price is $43.21
Assume that the risk-free rate is 2.5% and the expected return on the market is 12%. What is the required rate of return on a stock with a beta of 1.1? Round your answer to two decimal places.
Answer:
15.7%
Explanation:
According to CAPM,
required return = risk free rate + (beta x market expected rate of return)
= 2.5% + 1.1x 12% = 15.7%
What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C
Answer: 13.5%
Explanation:
The expected return is a weighted average of the portion invested in each individual stock and the expected return of each individual stock.
= (20% * 10%) + (50% * 20%) + (30% * 5%)
= 13.5%
The use of different national currencies creates a barrier to further growth in international business activity. What are the pros and cons, among companies and governments, of replacing national currencies with regional currencies
Answer:
The advantages of a regional currency are given as follows:
Reduction in costs of transaction: For example, the Euro removes the added accounting expenses necessary to keep track of the various and fluctuating exchange rates between trading partners in the single currency zone. Also, there is also the cost of converting from one currency to another between trade partners in different countries. In a mono currency regime, these costs are eliminated and may increase the volume and frequency of trade. Stability of Currency: A single currency across a community of nation-states will automatically stabilize or dampen the frequency of fluctuation given that the rate will not reflect the average economic condition of several countries put together rather than on country.A regional currency is likely to be stronger than a national currency because unifying currencies eliminates competitive devaluation among countries within the region. To avoid unfair competition, neighboring countries may be forced to also devalue their currencies following similar action by a country or countries in the same block.Improvement in prices due to greater price transparency: It is easier to compare prices using one currency than with different currencies. This means that companies that previously profited from abnormal profits due to various currencies are now forced to redesign their market offering to stay competitive price-wise.Disadvantage
A single policy for many countries may prove to be dissastrous for some countries. Single currencies do not automatically unify all the other macro-economic conditions of the various countries in the region. This means that what is good for countries in recovery may prove detrimental for a country in a recession.Transition Costs: Moving from one currency to another usually involves some costs which include:Discarding old currency printing equipment for new ones as well as doing away with old currencies whilst printing new ones.
Cheers
Sudoku Company issues 34,000 shares of $6 par value common stock in exchange for land and a building. The land is valued at $227,000 and the building at $374,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.
Answer and Explanation:
The journal entry is shown below:
Land $227,000
Building $374,000
To Common stock (34,000 × $6) $204,000
To Paid-in capital in excess of par value, common stock $397,000
(being the issuance of the stock in exchange for the land and building is recorded)
The above journal entry should be passed
It is asserted that 80% of the cars approaching an individual toll booth in New Jersey are equipped with an E-ZPass transponder. Find the probability that in a sample of six cars:
a. All six will have the transponder.
b. At least three will have the transponder.
c. None will have a transponder.
Answer: a. 0.262
b. 0.983
c. 0.00
Explanation:
a. The probability that all six will have the transponder is 0.262
b. The probability that at least three will have the transponder is 0.983
c. The probability that none will have a transponder is 0.00
Check attachment for further explanation.
What is a family brand?
O A. A brand used during the maturity stage of the product life cycle
O B. A brand for children's producto
O C. A brand for the products in one or more product lines
O D. Goods purchased for use by a family
SUBMIT
Answer:
The correct answer is c
If the marginal propensity to consume is 0.8, by how much will GDP increase after government spending increases by $200
Answer:
If disposable income increases by $5 billion and consumer spending ... spending by $100 billion and the marginal propensity to consume is 0.8. ... Suppose investment spending increases by $50 billion, and as a result real GDP increases by $200 billion. ... deliberate changes in taxation and/or government spending.
Explanation:
Every employee at a fitness center is required to wear a crisp white uniform. Towels are neatly rolled and stacked, the floors glisten with cleanliness, and there is always a beautiful display of fruit in the hallway. Based on this information, the fitness center prioritizes which variable of service quality
Answer:
Tangibles.
Explanation:
Tangibles in this question is directly the variable of service quality exuded. This is because it refers to physical facilities, equipment, and appearance of a service firm’s employees. the task of the tangible and physical evidence of a service is multifunctional. When a patient within the lounge of a clinic sees the doctor’s certificate, he becomes attentive to the standard of service he's getting ready to receive. Example is seen when a dental clinic provides patients with clean rubber footwear and freshly laundered bibs or coats before the particular service, the patients and their accompanying relatives or friends are going to be impressed. A dentist wearing a spotless white coat is likely-to impress, them even further. Tangibles provide the customer proof of the standard of service.
A check register shows a balance of $845.50 before adding a deposit of $152.73 and writing three checks for $682.67, $146.05, and $99.33. The owner of the checking account needs to write two additional checks for $75.81 and $83.62. Compute the amount the account owner must deposit before writing the additional checks.
Answer:
$89.25
Explanation:
This would be a fairly simple addition and subtraction problem. The initial balance of the register is $845.50, the owner then added a deposit of $152.73 which is added to the initial balance.
$845.50 + $152.73 = $998.23
Next, he wrote three checks which means those values are subtracted from the current balance like so...
$998.23 - $682.67 - $146.05 - $99.33 = $70.18
This leaves the balance at $70.18, the owner wants to add an additional two checks which would leave the balance at...
$70.18 - $75.81 - $83.62 = -$89.25
Meaning he would have to deposit $89.25 before writing the two checks or he would not have enough in the register to support those checks.
Companies that achieve Value Innovation a. pursue differentiation and low cost simultaneously b. pursue differentiation or low cost c. pursue differentiation or low price d. None of the above
Answer: a. pursue differentiation and low cost simultaneously
Explanation:
Value Innovation as a strategy is highly sought after in many industries as it represents an opportunity to acquire more market share whist keeping costs low. This is because with Value innovation, a company invests in technology that will achieve both low costs and differentiation simultaneously.
This is great news for both consumers and the company because consumers get to buy more differentiated products at lower prices and for the company, they will get more customers buying from their brand.
You 100 shares of stock today for $30 per share that he purchased for $20 six years ago. Determine the average annual rate of return on Shawn's investment, assuming the stock paid no dividends.
a. 25%
b. 8.33%
c. 150%
d. 7%
Answer:
d. 7%
Explanation:
Calculation to Determine the average annual rate of return on Shawn's investment
Using this formula
A=P(1+r/100)^n
where,
A=future value
P=present value
r=rate of interest
n=time period.
Let plug in the formula
30=20(1+r/100)^6
(30/20)^(1/6)=1+r/100
Hence,
1+r/100=1.0699(Approximate ly)
r=(1.0699-1)*100
r=0.0699*100
r=7% Approximately
Therefore the average annual rate of return on Shawn's investment is 7%
Suppose that a 25-year government bond has a maturity value of $1000 and a coupon rate of 7%, with coupons paid semiannually. Find the market price of the bond if the yield rate is 6% compounded semiannually. (Round your answer to the nearest cent.)
Answer: $1,128.65
Explanation:
Formula for Bond price;
[tex]= Coupon payment * \frac{1 - ( 1 + yield)^{-period} }{yield} + \frac{Face value}{(1 + r)^{period} }[/tex]
Period = 25 * 2 = 50 semi annual periods
Yield = 6%/2= 3%
Coupon = 7%/ 2 = 3.5%
Coupon payment = 3.5% * 1,000 = $35
[tex]= 35 * \frac{1 - ( 1 + 0.03)^{-50} }{0.03} + \frac{1,000}{(1 + 0.03)^{50} }\\\\= 35 * 25.729764 + 228.10707978975\\\\= 1,128.6488[/tex]
= $1,128.65
On November 15, 2018, Shields Company purchased inventory costing $6,200 on credit. The credit terms were 2/10, n/30. a. Assume that Shields Company paid the invoice on November 23, 2018. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier using the net-of-discount method.
Answer:
Entries posted
Explanation:
The dicount received will be credited as we paid the supplier earlier of 30 days according to the credit terms
Journal Entry to purchase inventory on November 15, 2018
Dr Inventory $6,200
Cr Accounts payable $6,200
Journal Entry for payment to supplier on November 23, 2018
Dr Accounts payable $6,200
Cr Discount received $124
Cr Cash $6076
Seth invested $27,000 in Series EE savings bonds on April 1. By December 31, the published redemption value of the bonds had increased to $27,910. How much interest income will Seth report from the savings bonds in the current year absent any special election
Answer:
Outside any special election, Seth will report $910 as interest income in the current year.
Explanation:
Investment in Series EE savings bond on April 1 = $27,000
Redemption value of bonds by December 31 = $27,910
Interest income = $910 ($27,910 - $27,000)
The effective rate of interest = 3.37% ($910/$27,000 * 100) for nine months, with its annualized rate = 4.5% (3.37%/9 * 12).
A manufacturer produces a container of potato salad using 1 pound of Idaho potatoes, 1 pound of Maine potatoes, or 1 pound of a mixture of the two types of potatoes. Does the marginal rate of technical substitution vary along the isoquant?
Answer:
Yes the marginal rate of technical substitution varies along isoquant.
Explanation:
The marginal rate of technical substitution is the point on isoquant which determines that one point of input can be substituted by one point of another input having no impact on the level of the output. As the labor is used with lesser capital MRTS will decline along the isoquant and will not remain constant.
If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined. Group of answer choices the working-age population the quantity of goods or services that can be produced by one hour of work nominal GDP labor force participation
Answer:
the quantity of goods or services that can be produced by one hour of work
Explanation:
In the case when the growth of the labor productivity slows down in a country so that means the growth rate is declined in terms of the good or services quantity that could be generated by performing one hour of work
Therefore in the given case, the second option is correct
And all the other options are incorrect
A game may be zero-sum in the short run but have scope for mutual benefit in the long run. True False
Answer:
True
Explanation:
A zero sum game happens when one player's gain is exactly the same as the other player's loss, e.g. I won $100 and my opponent lost $100. But as economics has taught us, sometimes both sides can win, i.e. a win win situation.
Real life business is not the same as sports where one side must win and the other must lose. E.g. a trade agreement between 2 countries might at first result in one country benefiting more from trade, but as time passes, things will start to balance out and both countries will start to benefit from trade. As trade increases between nations, all the nations involved will win, so the situation will be a non zero sum game.
Your friend just won the Pennsylvanialottery. She has the choice of $15,000,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What interest rate makes her indifferent between the two options
Answer:
3.44%
Explanation:
The interest rate that makes her indifferent is the rate that equates the present value (PV) of the annuity to $15,000,000, the amount receivable in the first choice.
[tex]PV=\frac{A(1-(1+r)^{-n} )}{r}[/tex]
Where A = equal annual payment = $1,050,000
n = 20 years
[tex]15,000,000=\frac{1,050,000(1-(1+r)^{-20} )}{r}[/tex]
Using a financial calculator or interpolation, the value of r that solves the equation is 3.443209% or approximately 3.44%.
wants to maximize profits for SPI's new tennis racquets, then he should set a price (and produce that related output) where:
Answer: E. marginal cost is just less than or equal to marginal revenue.
Explanation:
In order to maximize profits when it comes to production, it is best to do so at a quantity where Marginal cost is equal to Marginal revenue or at least slightly lower but not higher.
At this quantity, all available resources are being used efficiently and so profit is being maximised because if Marginal costs exceed marginal revenue, this will result in losses.
Randy Todd should therefore produce the racquets at a point where marginal cost is just less than or equal to marginal revenue.
