Answer:
11.06%
Explanation:
According to the given situation, the computation of the required return on the stock is shown below:-
Required rate of return = Current Dividend × (1 + growth) ÷ Current Price + Growth
= $4.01 × (1 + 4.7%) ÷ 66 + 4.7%
= 11.06%
Therefore for computing the required rate of return we simply applied the above formula.
Category of cost not associated from the extension of credit and accounts receivable is
A: Capital costs
B: Delinquency costs
C: Direct costs
D: Default costs
Answer:
A.Capital costs
Explanation:
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You business sells widgets to customers. On May 1, you purchase 50 widgets at $4 each from your widget supplier. During May You sell 37 widgets to your customers for $10 each. What is the Cost of Goods Sold for May
Answer:
COGS= $148
Explanation:
Giving the following information:
Purchase= 50 widgets at $4 each
Sales= 37 widgets
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 0 + 50*4 - 13*4
COGS= $148
$50 an hour is a
A salary
B commission
C wage
D pension
Answer: C.) Wage
Explanation: A salary is a set cost that is due to you over an agreed amount of time. A commission is a percentage that you get from the original cost. A wage is the income one makes daily, or per hour. A pension is the gradual amount of money being added up during the years one works. Therefore, $50 an hour is a wage.
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The accountant for Murphy Company prepared the following analysis of its inventory at year end: Item Units Cost per Unit Net Realizable Value RSK-89013 550 $38 $44 LKW-91247 329 49 45 QEC-57429 462 25 33 Required: 1. Compute the carrying value of the ending inventory using the lower of cost or market method applied on an item-by-item basis. $ 2. Prepare the journal entry required to value the inventory at lower of cost or market. (Inventory adjustment to market value)
Answer:
1. $47,255
2. Dr Cost of goods sold account $1,316
Cr Inventory account $1,316
Explanation:
Please find attached detailed solution to the above questions and answers.
The ASQ Quality Glossary defines customer _____ as "the result of delivering a product or service that meets customer requirements.
a. engagement
b. satisfaction
c. enrichment
d. loyalty
Answer: satisfaction
Explanation:
The ASQ Quality Glossary defines customer satisfaction as "the result of delivering a product or service that meets customer requirements.
It should be noted that when the requirements of customers are net with regards to a certain product, the customers are satisfied. Customer satisfaction is necessary to achieve organizational goals. Customer satisfaction leads to happy customers which brings about the growth will of the business.
The government sets a minimum wage above the current equilibrium wage. What effect does the minimum wage have on equilibrium in the labor market? What are its effects on consumer surplus, producer surplus, and total surplus in the labor market? (Hint: in the labor market, workers are 'producers' and firms are 'consumers'.)
Question Completion:
A binding minimum wage
▼
does not change
raises
lowers
the market wage and
▼
increases
decreases
does not change
the market employment level.
Answer:
A binding minimum wage
▼
raises
the market wage and
▼
decreases
the market employment level.
Explanation:
This action of the government of setting the minimum wage above the current equilibrium wage will disrupt the equilibrium of labor demand and supply. Certainly, more labor will be available (the supply side will increase) while the demand for labor by firms or labor consumers will decrease. This reflects the market dynamics caused by the increased price (in the form of increased minimum wage) and the quantities of labor supplied and demanded.
Special Order Northern Company regularly sells its only product for $34 per unit and has a 25% profit on each sale. The company has accepted a special order for a number of units, the production of which would use part of its unused capacity. The special order sales price is 50% of the normal price, and the profit margin is only 60% of the regular dollar profit. What, apparently, is Note: Round answers to two decimal places, when applicable.
Answer:
the question is incomplete, so I looked for similar questions and found the following requirements:
Round answers to two decimal places, when applicable.
a. Northern’s profit per unit on the special order?
$5.10
b. Northern’s variable cost per unit?
$11.90
c. Northern’s average fixed cost per unit on regular sales?
$13.60
Explanation:
regular price $34
regular profit 25% x $34 = $8.50
special order price = $17
special order profit = $8.50 x 60% = $5.10
net profit = sales price - variable costs - fixed costs
$8.50 = $34 - variable costs - fixed costs
$5.10 = $17 - variable costs
variable costs = $25.50 - fixed costs
variable costs = $11.90
fixed costs = $13.60
Which of the following statements would be most likely to minimize expected fixing costs? a. A machine should always be calibrated at the midpoint between the upper and lower spec limits. b. A machine should be calibrated closer to the upper spec limit than the lower spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low. c. A machine should be calibrated closer to the lower spec limit than the upper spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low.
Answer: c. A machine should be calibrated closer to the lower spec limit than the upper spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low.
Explanation:
If the cost of fixing output that is too high is greater than the cost of fixing output that is too low then it make sense to calibrate the machine closer to the lower spec limit.
This way if the machine produces less output than is required, it can be fixed at a lower cost than if the machine had been set to the upper spec and produces output that is too high.
The two-year interest rate is 13.8% and the expected annual inflation rate is 6.9%. a.What is the expected real interest rate
Answer:
Real interest rate= -0.0048= -0.48%
Explanation:
Giving the following information:
The two-year interest rate is 13.8% and the expected annual inflation rate is 6.9%
First, we need to calculate the biannual inflation rate:
Biannual inflation rate= (1+r)^2 - 1
Biannual inflation rate= (1.069^2) - 1
Biannual inflation rate= 0.1428
Now, to calculate the real interest rate, we need to deduct from the nominal interest rate the effect of inflation:
Real interest rate= 0.138 - 0.1428
Real interest rate= -0.0048
The real interest rate is negative. It means that the purchasing power of an investment decrease due to the negative effect of inflation.
Prescott Bank offers you a five-year loan for $53,000 at an annual interest rate of 7.75 percent. What will your annual loan payment be
Answer:
$13,186.84
Explanation:
Use the Time Value of Money Techniques to Solve the Problem
Pv = $53,000
N = 5
i = 7.75 %
Fv = $ 0
P/yr = 1
Pmt = ?
Using a Financial Calculator, the annual loan payment (Pmt) is $13,186.84.
Metzler Communications designs and programs a website for a local business. Metzler charges $33,000 for the project, and the local business signs an 4% note January 1, 2019. Required: 1. Prepare the journal entry to record the sale on January 1, 2019. Record sale 2. Determine how much interest Metzler will receive if the note is repaid on July 1, 2019. $ 3. Prepare Metzler's journal entry to record the cash received to pay off the note and interest on July 1, 2019. If an amount box does not require an entry, leave it blank. Record collection of note receivable
Answer and Explanation:
1. The Journal entry is shown below:-
Notes receivable Dr, $33,000
To Sales revenue $33,000
(Being sales is recorded)
2. The computation of interest is shown below:-
Interest = $33,000 × 4% × 6 ÷ 12
= $660
3. The Journal entry is shown below:-
Cash Dr, $33,660
To Interest income $660
To Notes receivable $33,000
(Being collection of notes receivable is recorded)
Braden Corp. uses a process costing system. Beginning inventory for January consisted of 1,600 units that were 69% completed. 10,000 units were started into the process during January. During January, 11,300 units were completed. How many units were in ending inventory on January 31?
Answer:
Ending inventory = 300 units
Explanation:
The formula for calculating ending inventory is given as follows:
Ending inventory = (Beginning inventory + units started into process) - (completed units)
Ending inventory = (1,600 + 10,000) - (11,300)
Ending inventory = 11,600 - 11,300
Ending inventory = 300 units
Note, the percentages completed are distractor information
How much must you deposit in a bank account today to have $1,000 at the end of 5 years if the bank quotes a rate of 5%, compounded daily? Assume a 365-day year and round your answer to the nearest dollar.
Answer:
PV= $774.54
Explanation:
Giving the following information:
Future value= $1,000
Number of periods= 5*365= 1,825 days
Interest rate= 0.05/365= 0.00014
To calculate the initial investment, we need to use the following formula:
PV= FV / (1+i)^n
PV= 1,000 / (1.00014^1,825)
PV= $774.54
Southern Imports is an all-equity firm with a beta of 1.32. The firm is considering a new project that entails less risk than its current operations and thus management feels that the firm's beta should be lowered by .18 when assigning a discount rate to this project. The market rate of return is 9.4 percent and the risk-free rate is 2.8 percent. What discount rate should be assigned to this project
Answer:
The answer is "10.32%".
Explanation:
The actual beta firm =1.32
if new beta reduced by 1.8
beta firm= 1.14(1.32-1.8)
market return= 9.4%
risk-free return=2.8%
formula:
[tex]\to \text{Discount rate= risk} +beta \times (return-risk)}[/tex]
[tex]=2.8+1.14(9.4-2.8)\\\\=10.32%[/tex]
On January 1, 2020, Echo Company issued $550,000, 16 year, 9%, annual, callable bonds for $475,000. On December 31, 2025, Echo Company redeemed (called) the bonds at 102. REQUIRED: 1. Prepare the Journal Entry to record the Issuance of the Bond 2. Determine the amount of the Discount/Premium that is still not amortized (using the Straight-Line Method) 3. Prepare the Journal Entry to record the Retirement (Redemption) of the Bond.
Answer:
1. Prepare the Journal Entry to record the Issuance of the Bond
January 1, 2020, bonds issued at a discount
Dr Cash 475,000
Dr Discount on bonds payable 75,000
Cr Bonds payable 550,000
2. Determine the amount of the Discount/Premium that is still not amortized (using the Straight-Line Method)
total bond life = 16 years, 5 years have passed
amortization of bond discount per coupon payment = $75,000 / 16 = $4,687.50
so $51,562.50 have not been amortized yet
3. Prepare the Journal Entry to record the Retirement (Redemption) of the Bond.
Before being able to redeem the bonds, the remaining discount must be amortized:
December 31, 2025, amortization of bond discount
Dr Interest expense 51,562.50
Cr Discount on bonds payable 51,562.50
the journal entry to record the redemption of the bonds
December 31, 2025, bonds redeemed at a loss
Dr Bonds payable 550,000
Dr Loss on retirement of debt 11,000
Cr Cash 561,000
Which phrase best describes a country's monetary base?
Answer: all money in circulation throughout the economy
Explanation: apex
Answer:
all money in circulation throughout the economy
Explanation:
Which of the following is correct? Group of answer choices Risk-averse people will not hold stock. Diversification cannot reduce firm-specific risk. The larger the percentage of stock in a portfolio, the greater the risk, but the greater the average return. Stock prices are determined by fundamental analysis rather than by supply and demand.
Answer: The larger the percentage of stock in a portfolio, the greater the risk, but the greater the average return.
Explanation:
Stock in general is more risky than most financial instruments but this risk is accompanied with greater returns. This is why it is generally advisable to diversify stock in a portfolio.
As already mentioned, stock is risky but rewarding. It therefore follows that the more stock is in a portfolio, the risker the portfolio but the greater the average return.
If charlie's utility function where x^2a xb, the price of apples were pA, the price of bananas were pB, and his income were m, then Charlie's demand for apples would be:______.
a. 0.67m/pA.
b. 0.50pAm.
c. ml(pA + pB).
d. m/(2pA).
e. 1.50pBm/pA.
Answer and Explanation:
Please find attached
paid to acquire , a weekly advertising paper. At the time of the acquisition, 's balance sheet reported total assets of and liabilities of . The fair market value of 's assets was . The fair market value of 's liabilities was . Read the requirementsLOADING.... Requirement 1. How much goodwill did purchase as part of the acquisition of ? Purchase price to acquire Mesa Herald Market value of Mesa Herald's assets Less: Market value of Mesa Herald's liabilities Less: Market value of Mesa Herald's net assets
Full question attached
Answer and Explanation:
A. Given that Thrifty Nickels Assets fair value and liabilities are given by $100000 and $70000 respectively(we do not use the book value in calculating goodwill here) and Acquisition value is $230000
Goodwill = purchase price -net assets
Since we know purchase price =$230000
We calculate net assets= total assets -total liabilities
Total assets =$100000
Total liabilities =$70000
Net assets=$100000-$70000=$30000
We substitute in goodwill formula
Goodwill=$230000-$30000=$200000
Therefore goodwill =$200000
B. We journalize entries for the acquisition in Deca's books as follows :
Debit Assets $100000
Debit Goodwill $200000
Credit liabilities $70000
Credit cash $230000
We debit assets since it received and increased by $100000,we debit goodwill since it also received and increased by $200000. We credit liabilities since it also increased by $70000 from the acquisition (liabilities accounts are credited). Cash was spent and therefore is credited since it reduced by $230000
Cutter Enterprises purchased equipment for $54,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $8,400. Using the double-declining-balance method, depreciation for 2021 and the book value at December 31, 2021, would be:_______
Answer:Book value at December 31, 2021 =$32,400
Explanation:
using double declining balance method
Depreciation expense = 2×Straight-line depreciation percent ×Book value
Given value of machine = $54,000
Residual value = $8,400
Expected life = 5 years
But
straight line depreciation percent = 100% /5years = 20%
Depreciation expense = 2×Straight-line depreciation percent ×Book value
= 2*20% x$54,000 = 40% x $54,000=$21,600
or
Depreciation expense by double declining = depreciation rate x cost of equipment
but depreciation rate = 1/estimated useful life x 2= 1/5 x 2= 2/5 x100% =40%
= 40% x $54,000= $21,600
Book value at December 31, 2021, = Purchase cost - depreciation expense
=$54,000 - $21,600=$32,400
At the end of the year, a company has a $1,200 debit balance in Manufacturing Overhead. As a result, the company:a.makes an adjusting journal entry by debiting Manufacturing Overhead for $1,200 and crediting Manufacturing Overhead for $1,200. b.makes no adjusting journal entry because the difference between actual overhead and the amount applied are a normal part of job order costing and will average out over the next year. c.makes an adjusting journal entry by debiting Manufacturing Overhead Expense for $1,200 and crediting Manufacturing Overhead for $1,200. d.makes an adjusting journal entry by debiting Cost of Goods Sold for $1,200 and crediting Manufacturing Overhead for $1,200.
Answer:
d. makes an adjusting journal entry by debiting Cost of Goods Sold for $1,200 and crediting Manufacturing Overhead for $1,200.
Explanation:
The debit balance of $1,200 in the Manufacturing Overhead account represents under-applied overhead. To ensure that the Cost of Goods Sold is accurate, the debit balance is debited to the Cost of Goods Sold while the corresponding credit goes to the Manufacturing Overhead account.
Vriend Software Inc.’s book value per share is $12.37. Earnings per share is $1.68, and the firm’s stock trades in the stock market at 2.5 times book value per share. What will the P/E ratio be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Answer:
18.41
Explanation:
Vriend software incorporation has a book value of $12.37
The earnings per share is $1.68
The firm stock trade in the stock market is 2.5 times
The first step is to calculate the price
= 2.5 × book value
= 2.5 × 12.37
= 30.93
Therefore the P/E ratio can be calculated calculated as follows
= price/earnings per share
= 30.93/1.68
= 18.41
Hence the P/E ratio is 18.41
Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000, an AOC of $160,000 per year, and $125,000 salvage value after its 3-year life. Method 2 will cost $830,000 with an AOC of $120,000, and a $240,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a 3-year planning period. You estimate the salvage value of method 2 will be 35% higher after 3 years than it is after 5 years. If the MARR is 10% per year, which method should the company select?
Answer:
method 1 should be selected.
Explanation:
for method 1:
p = 550000
a = 160000
s = 125000
I = 10%
n = 3 years
aw = -550000(a/p, 0.10,3)-160000+125000(a/f,0.10,3)
= -550000(0.4021)-160000+125000(0.3021)
= -221155-160000+37762.5
= -343.392.5 dollars
for method 2:
salvage value = 240000x1.35
= 324000
p= 830000
a = 120000
s = 324000
I = 0.10 or 10%
n = 3
aw = -830000(a/p,0.10,3)-120000+324000(a/f,10%,3)
= -830000(0.4021)-120000+324000(0.3021)
= -333743-120000+97880.4
= -355862.6 dollars
after comparing both values, method 1 is better
deposited pierrs's check for $1000 in the bank what is the general jeneral entry?
Answer:
When a cheque received is not deposited on the same day, it is taken in the cash account and when it is deposited in bank, then a contra entry is passed. For example cheque received from Ram on 15th March is deposited on 18th March, following entries will be passed: 15/3 Cash A/c Dr.
Explanation:
Corentine Co. had $154,000 of accounts payable on September 30 and $133,500 on October 31. Total purchases on account during October were $283,000. Determine how much cash was paid on accounts payable during October. On September 30, Valerian Co. had a $103,500 balance in Accounts Receivable. During October, the company collected $103,890 from its credit customers. The October 31 balance in Accounts Receivable was $91,000. Determine the amount of sales on account that occurred in October. During October, Alameda Company had $104,500 of cash receipts and $105,150 of cash disbursements. The October 31 Cash balance was $19,600. Determine how much cash the company had at the close of business on September 30.
Answer:
Explanation:
a. Accounts Payable
Payments on account $303,500 | Beginning balance $154,000
| Purchases on account $283,000
|
| Ending balance $133500
b. Accounts Receivable
Beginning balance $103,500 | Cash receipts on account $103,890
Sales on account $91,390 |
|
Ending balance $91,000 |
c. Cash
Cash receipts $104,500 | Cash disbursements $105,150
Beginning balance $20,250 |
|
Ending balance $19,600 |
Managers strive to increase the value of a firm. An increase in the intrinsic value of the firm’s stocks is a good measure of the increase in the value of the firm. Intrinsic value of a firm’s stock price is determined by calculating the present values of its free cash flows (FCF) discounted at a rate called the weighted average cost of capital (WACC). Tyler is a team member in Corporate Finance at a digital-content production company. He is required to forecast the free cash flows that the company will be able to generate in the next three years. Tyler takes into account only the following equation in his calculation: FCF = Sales Revenues – Operating Costs – Operating Taxes Will his calculation be an appropriate estimate of the FCF? No Yes Why or why not? Check all that apply. Because his calculation fails to include both the working capital and capital expenditures necessary to sustain the company’s operations Because his calculation fails to include the increase in the working capital required to grow sales Because his calculation fails to include the costs of the firm’s interest and dividend payments Because his calculation fails to recognize the increase in sales revenues
Answer:
No. Because his calculation fails to include both the working capital and capital expenditures necessary to sustain the company’s operations
Explanation:
Free Cash Flow (FCF) can simply be defined as the net flow for a company after taking account of cash operating expenses, taxes (some textbooks may omit this), and investments in working capital and capital expenditure required to sustain continuous business operations.
As such, an appropriate formula for FCF would be:
sales revenue - cash operating cost (this will exclude depreciation) - operating taxes - investment in working capital - capital expenditure.
Tyler's formula did not include investment in working capital and capital expenditure, thus making it incomplete.
During the second quarter of Year 1, Barbara's Bakery purchased furnishings (7 year property) at an original cost of $15,000. She did NOT take bonus depreciation or Section 179 expense in the year of purchase. Due to other asset purchases in Year 1, the mid-quarter convention is being used for calculating the depreciation on the furnishings. If Barbara sells the furnishings in October of Year 4 how much can she deduct for depreciation in the year of sale
Answer:
$1,571
Explanation:
MACRS mid-quarter convention for assets placed into service in the second quarter:
year depreciation %
1 17.85%
2 23.47%
3 16.76%
4 11.97%
5 17.85%
Since Barbara sold the asset before the year's end, she must calculate the depreciation expense using a percentage of total depreciation per year:
depreciation for year 4 = asset's value x 21/24 half months x 11.97% = $1,571.06 ≈ $1,571
Compute interest and find the maturity date for the following notes. (Round answers to 0 decimal places, e.g. 825) Date of Note Principal Interest Rate (%) Terms (a) June 10 $80,000 6% 60 days (b) July 14 $50,000 7% 90 days (c) April 27 $12,000 8% 75 days
Answer and Explanation:
The computation of the interest and the maturity date is shown below:
a.
= Principal × rate of interest × given days ÷ total days
= $80,000 × 6% × 60 days ÷ 360 days
= $800
The Maturity date is August 9
b.
= Principal × rate of interest × given days ÷ total days
= $50,000 × 7% × 90 days ÷ 360 days
= $875
The Maturity date is October 12
c.
= Principal × rate of interest × given days ÷ total days
= $12,000 × 8% × 75 days ÷ 360 days
= $200
The Maturity date is July 11
If the price elasticity of demand for used cars priced between $4,000 and $6,000 is -0.9 (using the mid-point method), what will be the percent change in quantity demanded when the price of a used car falls from $6,000 to $4,000
Answer: 36% increase in quantity demanded.
Explanation:
Price Elasticity shows the change in quantity demanded when there is a change in price.
Change in Quantity demanded = Price elasticity * Change in price.
Change in price using midpoint formula;
[tex]= \frac{New price - Old Price}{\frac{New Price + Old Price }{2} } \\\\= \frac{4,000 - 6,000}{\frac{4,000 + 6,000 }{2} } \\\\= \frac{-2,000}{5,000} \\\\= -0.4[/tex]
Change in Quantity demanded = -0.9 * -0.4
= 0.36
= 36% increase
When the price of THE used car falls from $6,000 to $4,000, the percent change in quantity demanded will be 36% increase.
Explanation:
Price Elasticity basically shows the change in quantity demanded when there is a change in price.
The formula for Change in Quantity demanded = Price elasticity * Change in price.
Change in price using midpoint formula = New price - Old price / (New price - Old price / 2)
Change in price using midpoint formula = 4000 - 6000 / (4000 - 6000/ 2)
Change in price using midpoint formula = -0.4
Change in Quantity demanded = -0.9 * -0.4
Change in Quantity demanded = 0.36
Change in Quantity demanded = 36% increase
In conclusion, the percent change in quantity demanded will be 36% increase.
Read more about Price Elasticity
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Business is booming for Cargill Company, so the firm has decided to expand its operations internationally. The company will sell new shares of common stock using a general cash offering in order to raise the $16.8 million it needs to fund its overseas expansion. Cargill's investment bankers agreed to a spread of 7.85 percent, the administrative costs will be $515,000, and the offer price will be $21 per share. How many shares of stock must be sold for Cargill to receive the expansion funds it needs
Answer:
894,763 stocks
Explanation:
total flotation costs = 7.85% of total stocks issued + $515,000
the corporation will receive $21 x (1 - 7.85%) = $19.3515 per stock issued
$16,800,000 = $19.3515X - $515,000
$17,315,000 = $19.3515X
X = $17,315,000 / $19.3515 = 894,762.68 ≈ 894,763 stocks
