Answer:
Journal Entries :
1.
Common Stocks $29,400 (debit)
Cash $29,400 (credit)
2.
Dividends Declared $174,300 (debit)
Shareholders for Dividends $174,300 (credit)
3.
Shareholders for Dividends $174,300 (debit)
Cash $174,300 (credit)
4.
Cash $30,600 (debit)
Common Stocks $30,600 (credit)
5.
Common Stocks $48,300 (debit)
Cash $48,300 (credit)
6.
Cash $29,100 (debit)
Common Stocks $29,100 (credit)
Explanation:
1.
Common Stocks $29,400 (debit)
Cash $29,400 (credit)
Purchase Cost = 300 shares × $98 = $29,400
2.
Dividends Declared $174,300 (debit)
Shareholders for Dividends $174,300 (credit)
Dividend Calculation = (8600 - 300) × $21 = $174,300
Note : Recognize the Liability : Shareholders for Dividends and recognise the Equity Element : Dividends Declared
3.
Shareholders for Dividends $174,300 (debit)
Cash $174,300 (credit)
Note : De-recognize the Liability : Shareholders for Dividends and De -recognize the Assets of Cash.
4.
Cash $30,600 (debit)
Common Stocks $30,600 (credit)
Proceeds = 300 shares × $102 = $30,600
5.
Common Stocks $48,300 (debit)
Cash $48,300 (credit)
Purchase Cost = 460 shares × $105 = $48,300
6.
Cash $29,100 (debit)
Common Stocks $29,100 (credit)
Proceeds = 300 shares × $97 = $29,100
g People will want to hold more money if the price level a. or if the interest rate increases. b. or if the interest rate decreases. c. increases or if the interest rate decreases. d. decreases or if the interest rate increases.
Answer:
a. or if the interest rate increases.
Explanation:
An increase in the price utlimately decreases the level of spending by an individual. People want to save their money when the prices increase.
On the other hand when the interest rate increases some people who normally invest their money to receive the return will ultimately increase their amount of investment to increase their returns.
During the current year, South Corporation had 16.0 million shares of common stock outstanding. Four thousand 15% convertible bonds, each with $1000 face value, were issued at face amount at the beginning of the year. South reported net income of $4.0 million for the year. Each bond is convertible into 10 shares of common stock. The tax rate is 25%. What is diluted EPS (rounded)
Answer:
Diluted EPS=$0.187 per share
Explanation:
Diluted EPS = Income available to ordinary shareholders / Total number of shares available after conversion
Total number of converted shares = 4,000× 10= 40,000 units
Total number o shares after conversion = 40,000+ 16,000,000= 16,040,000 units
$
Net income = 4,000,000
Tax rate (25% × 4,000,000) (1,000000 )
Net income 3,000,000
Diluted EPS = Net income /Number of shares
= 3,000,000/16,040,000=
=$0.187 per share
Diluted EPS=$0.187 per share
. A company wants to raise $2 million through a rights offering. The subscription price is $4, and the current stock price is $5. The firm currently has 1,000,000 shares outstanding. How many shares must be issued
Answer:
A.$500,000
B. $2 Right
C.$0.33
Explanation:
A.The amount that the company wants to raise ÷The subscription price = Shares Issued
Amount raise
$2,000,000
Subscription price $4
Hence:
$2,000,000÷$4
=$500,000
Therefore $500,000 is the shares to be issued out by the company
B.
Rights that it will take to purchase one share.
1,000,000/500,000 = 2 rights
C. The Investors have 2 shares
The MV of the portfolio before the rights was issued= 2x$5 = $10
The MV of portfolio after the rights was issued =
$10+$4= $14
The price per share :
$14/3
=$4.67
The value of rights :
$5-$4.67
= $0.33
Answer: 0.33
Explanation:
Funds Required. = 2,000,000
Subscription Price = 4.00
Total New Shares =2000000/4 = 500,000
Current no of shares outstanding = 1,000,000
Right ratio =500000/1000000 = 0.5
Therefore, per share 0.5 right would be issued and 2 rights will be required to buy 1 share
Share price after right issue will be:
=(Share price before rights + the subscription price per share)/Total number of shares
= ((1000000 × 5)+(500000 ×4) ÷ (1000000+500000)
= 4.67
Value of right = 5 - 4.67
= 0.33
Two U.S. companies are competing to take over a large factory in the Czech Republic. One dele-gation tours the facility and asks questions about how the plant might be run more efficiently. The other delegation focuses on ways to improve working conditions and produce a better prod-uct. Which delegation do you think is more likely to succeed with the plant? Why? What information would you want to collect to decide whether to acquire the plant for your company? .
Answer:
The delegation that focuses on ways to improve working conditions and produce a better product.
Explanation:
This is the case because just like any large company, the factory in Czech Republic would want to be under a management that prioritises on improving working conditions because it benefits them (the employees).
For example, with improved working conditions workers will be motivated leading to increase in their productivity and revenue of the firm.
Information about company revenue, taxes, profit, and fixed cost would be essential in order to decide whether to acquire the factory.
Wilson Trucking, Inc. reports these account balances at January 1, 2015 (shown in alphabetical order):Accounts Payable $220,000Accounts Receivable $200,000Buildings $480,000Capital Stock $680,000Cash $160,000Equipment $320,000Land $400,000Notes Payable $520,000Retained Earnings $140,000On January 5, Wilson Trucking collected $175,000 of its accounts receivable, paid $150,000 on its accounts payable, and paid $11,000 on its note payable.Refer to the information above. In a trial balance prepared on January 6, 2015, the total of the credit column is:__________.(a) $1,721,000(b) $1,350,000(c) $1,399,000(d) $1,560,000.
Answer:
The correct option is C,$ 1,399,000
Explanation:
The items on the credit column would be the sum of accounts payable, capital stock, notes payable and retained earnings minus the payment of accounts payable and notes payable
Accounts payable is $220,000
capital stock is $680,000
notes payable is $520,000
retained earnings is $140,000
payment in respect of accounts payable is $150,000
payment in respect of notes payable is $11,000
total of credit column=$220,000+$680,000+$520,000+$140,000-$150,000-$11,000=$ 1,399,000.00
Based on the information given the total of the credit column is:(c) $1,399,000.
Credit column
Accounts payable $220,000
Capital stock $680,000
Notes payable $520,000
Retained earnings $140,000
Less payment in respect of accounts payable ($150,000)
Less payment in respect of notes payable ($11,000)
Total credit column $1,399,000
Inconclusion the total of the credit column is:(c) $1,399,000.
Learn more about trial balance here:https://brainly.com/question/4925044
Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 14 direct labor-hours at $16 per direct labor-hour. During a recent period 1,000 cranes were made. The labor efficiency variance was $4,400 Unfavorable. How many actual direct labor-hours were worked
Answer:
14,275= actual hours
Explanation:
Giving the following information:
The standard for a particular crane calls for 14 direct labor-hours at $16 per direct labor-hour.
During a recent period, 1,000 cranes were made.
The labor efficiency variance was $4,400 Unfavorable.
To determine the actual hours worked, we need to use the direct labor efficiency variance formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
-4,400= (14*1,000 - actual hours)*16
-4,400= 224,000 - 16actual hours
228,400/16= actual hours
14,275= actual hours
Upon graduating from college this year, you expect to earn $25,000 per year. If you get your MBA, in one year you can expect to start at $35,000 per year. Over the year, inflation is expected to be 5 percent. In today's dollars, how much additional (less) money will you make from getting your MBA (to the nearest dollar) in your first year?
Answer:
Income difference= $8,250
Explanation:
Giving the following information:
Actual salary= $25,000 per year
MBA salary= $35,000 per year.
Inflation rate= 5 percent.
We will separate the analysis. First, we will calculate the nominal increase. Then, the real increase based on purchasing power.
In nominal terms, the increase in income is equal to the difference between salaries.
Income increase= 35,000 - 25,000= $10,000 increase.
In real terms, we need to calculate the effect of inflation on your purchasing power.
Actual income= $25,000
MBA income= 35,000*0.95= $33,250
Income difference= $8,250
In other terms, the real purchasing power of the MBA income decreases. Therefore, the difference today between real salaries is lower than the nominal difference.
The additional (less) money you will make from getting your MBA is $8,333.
Additional money:Using this formula
Additional money=Cost of expected MBA /(1+Expected Inflation rate)-Expected earning
Let plug in the formula
Additional money=$35,000/(1+0.05)-$25,000
Additional money=$35,000/(1.05)-$25,000
Additional money=$33,333-$25,000
Additional money=$8,333
Inconclusion the additional (less) money you will make from getting your MBA is $8,333.
Learn more additional money here:https://brainly.com/question/24556197
Joanie recognizes that the board and CEO are particularly worried that individuals will post negative information about the company on company-sponsored social media sites. Joanie create what specific set of policies in response for how to contend the employees?
Answer:
Should create a non disclosure agreement policy
Explanation:
This is a legally binding agreement that mandates parties to a contract in this case between an employer with an employee, in which the employee agrees not to disclose publicly or to any one negative information about the company that is deemed confidential (secret or private), and that may affect the company negatively.
Thus, to reduce the worries of the board and CEO, Joanie should create a non disclosure agreement signed by employees.
Why did the Federal Reserve allow the Bank of United States to fail in 1930? A. The Fed was prohibited from aiding the bank because its assets were concentrated in real estate. B. The Fed did not want to be viewed as rewarding the poor business decisions of the bank's managers. C. The Fed was unable to obtain the approval of the U.S. Treasury for its purchase of the bank's toxic assets. D. The bank's managers refused to abide by Fed rules governing the use of Fed loans. Why did the Federal Reserve allow Lehman Brothers to fail in 2008? A. The Fed did not have the legal authority to assist an investment bank. B. By the time the Fed understood the extent of the trouble at Lehman Brothers, it was much too late to act. C. The Fed believed that Lehman Brothers had found a suitable buyer and would recover. D. The Fed feared that assisting Lehman Brothers would increase the extent of moral hazard in the financial system. Contrast the Fed's actions following the failure of the Bank of United States with its actions following the failure of Lehman Brothers. A. The Fed aggressively intervened following the 1930 failure but remained largely inactive for several years following the 2008 failure. B. The Fed intervened aggressively following the 2008 failure but remained largely inactive for several years following the 1930 failure. C. The Fed's actions following both failures were the same; it aggressively intervened with assistance
Answer: 1. B. The Fed did not want to be viewed as rewarding the poor business decisions of the bank's managers.
2. D. The Fed feared that assisting Lehman Brothers would increase the extent of moral hazard in the financial system.
3. B. The Fed intervened aggressively following the 2008 failure but remained largely inactive for several years following the 1930 failure.
Explanation:
1. In 1930 when the Great Depression was at it's early stages, the Central Bank could have done some things that would have reduced it's impact on the world but they remained passive and did little. One of the reasons was that there was a lack of cohesion between the Fed Districts and some of the directors subscribed to the "liquidationist" which meant that companies that engaged in adverse financial decisions be allowed to fail to as to prune the financial system and make it better. This contributed to the failure to help the Bank of the United States.
2. The Fed did not want to be seen as aiding Moral Hazard when they refused to bail out the Lehman Brothers in 2008. The Lehman Brothers had engaged in very risky transactions that brought it to ruin in 2008 and the Central Bank did not want to encourage the precedent of saving Banks that did so. Moral Hazard is when a risky action is engaged in by a company or person because they will not pay for the risk if things go awry. For example, a person with car insurance might drive more recklessly because they know that if the car crashes, the insurance will cover it. This is what the Fed did not want to encourage. A situation where Banks would engage in risky actions knowing that the Fed would back them up.
3. In the 1930s during the Great Depression, the Fed did not do enough to stem the depression because there was not coordination amongst the districts. They could not agree on a way forward and so did little. They even admitted their failure when in 2002, a member of the Board of Governors called Ben Bernanke said they could have done more.
In 2008 though, the Fed stepped in to help the economy get back on track. They reduced Interest rates and poured money into the economy through various ventures that helped the American public amongst others. Their actions ensured that the 2008 financial crises did not last as long as the Great Depression.
On April 1, Sharon Lee established Lee's Travel Agency. The following transactions were completed during the month.
1. Invested $14,000 cash to start the agency.
2. Paid $500 cash for April office rent.
3. Purchased equipment for $2,000 cash.
4.Incurred $900 of advertising costs in the Chicago Tribune, on account.
5. Paid $900 cash for office supplies.
6. Performed services worth $11,000: $3,500 cash is received from customers, and the balance of $7,500 is billed to customers on account.
7. Withdrew $400 cash for personal use.
8. Paid Chicago Tribune $700 of the amount due in transaction (4).
9. Paid employees' salaries $2,900.
10. Received $4,500 in cash from customers who have previously been billed in transaction (6).
Requried:
Complete the tabular analysis of the transactions.
Answer:
Explanation:
Had to use excel for this solution in order to make everything so clear and explanatory. check the picture attached below.
Due to recent political and economic events, general prices of goods and services are expected to increase significantly over the next five years. You were about to purchase a five-year bond. You now require a higher return on the bond than you did before you found out about these expected price increases.
Determine which of these fundamental factors is affecting the cost of money in the scenario described:
a. Inflation
b. Time preferences for consumption
c. Risk
Answer:
a. Inflation
Explanation:
In the context of economics, inflation refers to the increase in the price of goods and services
Moreover, we also know that
(1 + Nominal rate of return) = (1 + real rate of return) × (1 + inflation rate of return)
According to the given situation, it is mentioned that The general goods and services prices are expected to rise substantially over the next five years which represents the concept of inflation
Hence, the option a is correct
The city of Springvale imposes a net income tax on businesses operating within its jurisdiction. The tax equals 1% of income up to $100,000 and 1.5% of income in excess of $100,000. The Springvale Bar and Grill generated $782,000 net income this year. Its city income tax is_______.
Answer:
$11,230
Explanation:
The city of Springvale imposed a net income tax on all businesses
Each business will make a payment of 1% for any amount up to $100,000 and 1.5% for any amount above $100,000
The net income generated by Springvale Bar and Grill is
= $782,000- $100,000
= $682,000
Therefore, it's city income tax is calculated as follows
(1/100+100,000) + ( 1.5/100+682,000)
( 0.01+100,000) + ( 0.015+682,000)
= 1000 + 10,230
= $11,230
Hence, Springvale Bar and Grill will pay a net income tax of $11,230
Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $18,000 (original cost of $40,000 less accumulated depreciation of $22,000) and a fair value of $10,200. Kapono paid $32,000 cash to complete the exchange. The exchange has commercial substance.
Required:
a. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
b. Assume the fair value of the old tractor is $26,000 instead of $10,200. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
Answer:
Loss on exchange is -$7,800
initial value of tractor is $42,200
Gain on exchange is $8000
Initial value of tractor is $58,000
Explanation:
The amount of gain or loss recognizable on the exchange is the difference between the fair value of the old asset and its book value
Loss on the asset=$10,200-$18,000=-$7,800
Initial value of the new tractor=fair value of the old tractor+cash payment
Initial value of the new tractor=$32,000+$10,200=$42,200
If fair value were $26,000
gain on the exchage=$26,000-$18,000=$8,000
Initial value of the new tractor=$32,000+$26,000=$58,000
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $12,750,000 Cost of goods sold 8,500,000 Gross profit $ 4,250,000 Operating expenses 6,000,000 Loss from operations $ (1,750,000) It is estimated that 25% of the cost of goods sold represents fixed factory overhead costs and that 15% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. a. Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Continue Fruit Cola (Alt. 1) or Discontinue Fruit Cola (Alt. 2) January 5 Continue Fruit Cola (Alternative 1) Discontinue Fruit Cola (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $ $ $ Costs: Variable cost of goods sold Variable operating expenses Fixed costs Income (Loss) $ $ $ b. Should Fruit Cola be retained
Answer:
Healthy Beverage Inc.
a) Differential Analysis
1) Continue Fruit Cola (Alt. 1)
Sales $12,750,000
Cost of goods sold 8,500,000
Gross profit $4,250,000
Operating expenses 6,000,000
Loss from operations ($1,750,000)
2) Discontinue Fruit Cola (Alt. 2)
Differential Effect on Income (Alternative 2):
Fixed costs:
Cost of goods sold $2,125,000
Operating expenses 900,000
Income (Loss) ($3,025,000)
b. Should Fruit Cola be retained ?
The production and sale of the Fruit Cola should be continued. Discontinuing it would not save the company the incurrence of the fixed cost.
Explanation:
Differential analysis is a managerial accounting technique for analyzing the different costs and benefits that would arise from alternative solutions to a particular problem.
In the above scenario, discontinuing the production and sale of Fruit Cola would not save the company the fixed costs, so the product should be continued. It is not the product that is causing the net loss but allocated fixed costs. Fixed cost is a sunk cost that is not relevant in differential analysis type of decision making.
The adjusted trial balance columns of the worksheet for Bridgeport Company are as follows.
Bridgeport Company
Worksheet (Partial)
For the Month Ended April 30, 2019
Adjusted Trial Balance
Account Titles Dr. Cr.
Cash 10,000
Accounts Receivable 8,080
Prepaid Rent 2,500
Equipment 22,700
Accumulated Depreciation—Equip. 5,500
Notes Payable 5,700
Accounts Payable 5,500
Common Stock 19,460
Retained Earnings 8,100
Dividends 3,400
Service Revenue 15,000
Salaries and Wages Expense 10,980
Rent Expense 900
Depreciation Expense 700
Interest Expense 60
Interest Payable 60
Totals 59,320 59,320
Journalize the closing entries at April 30.
Post the closing entries to Income Summary and Retained Earnings.
Prepare a post-closing trial balance at April 30.
Answer:
The purpose of the post closing trial balance is to verify thtat the debit totals equal credit totals of the permananet accounts and temperoray accounts have zero balances.
Explanation:
Bridgeport Company
Closing Entries
Date Particulars Debit Credit
Apr 30 Income Summary 12,640
Common Stock 19,460
Salaries & Wages Expense 10,980
Rent Expense 900
Depreciation Expense 700
Interest Expense 60
Closing Expense Accounts to Income Summary
Service Revenue 15,000
Income Summary 15,000
Closing Revenue Accounts to Income Summary
Retained Earnings 8,100
Income Summary 8100
To close retained earnings to income summary
Retained Earnings 3400
Dividends 3400
To close dividends
Bridgeport Company
Post Closing Trial Balance
Debit Credit
Cash 10,000
Accounts Receivable 8,080
Prepaid Rent 2,500
Equipment 22,700
Accumulated Depreciation—Equip. 5,500
Common Stock 19,460
Notes Payable 5,700
Accounts Payable 5,500
Interest Payable 60
Capital / RE 7060
Total 43280 43280
The incremental cash flows of a project are best defined as:_________.a. the increase or decrease in a firm's cash flows resulting from adding the project, excluding all sunk and opportunity costs. b. any change in a firm's cash flows resulting from the addition of the project including opportunity costs. c. the total cash flows of a firm once the new project is completely integrated into the firm's operations. d. the cash received from the additional sales generated by the project.
Answer:
The correct answer is option (B) any change in a firm's cash flows resulting from the addition of the project including opportunity costs
Explanation:
Solution
The amount of additional cash flow operating to the firm by taken anew project is referred to as incremental cash flow, just as it is incremental, the flow would be a positive increment.
A firm or organization always look towards having an incremental that is positive for cash flow to in maximizing share holder's profit or wealth.
Hence, in order to find the incremental cash flow the firm should examine the opportunity cost that could have been used in other places to generate revenue.
During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.
1. Compute the number of units transferred to finished goods.
2. Compute the number of equivalent units with respect to both materials used and conversion used in the production department for April using the weighted-average method.
Answer:
a) Units transferred = 218,000 units
b)
Equivalent units of material 283,600
Equivalent units of conversion cost 283,600
Explanation:
a) units transferred out
Units transferred = opening inventory + newly introduced - closing inventory
= 60,000 + 240,000 - 82,000= 218,000
Units transferred = 218,000 units
Equivalent units for material
Items units Equivalent units
Transferred out 218,000 100%×218,000 218,000
Closing inventory 82,000 80% × 82,000 65,060
Equivalent units 283,600
Equivalent units for conversion cost
Items units Equivalent units
Transferred out 218,000 100%×218,000 218,000
Closing inventory 82,000 30% × 82,000 24,600
Equivalent units 242,600
Equivalent units of material 283,600
Equivalent units of conversion cost 283,600
Hilary and Maria are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Hilary takes 5 hours to brew a gallon of root beer and 3 hours to make a pizza. Maria takes 8 hours to brew a gallon of root beer and 4 hours to make a pizza.
Megan's opportunity cost of making a pizza is:______
a. 2/3 gallon
b. 5/7 gallon
c. 1/2 gallons
d. 2/5 gallons
of root beer, and Susan's opportunity cost of making a pizza is:_______
a. 2/3 gallon
b. 5/7 gallon
c. 1/2 gallons
d. 2/5 gallons
Answer and Explanation:
Opportunity cost is the net benefit arise from the loss suffered from the selective option.
In the given situation, the Megan's opportunity cost of making a pizza is
= 3 hours to make a pizza ÷ 5 hours to brew a gallon of root beer
= 3 ÷ 5 gallons
This is the answer but the same is not provided in the given options
And, the Susan opportunity cost of making a pizza is
= 4 hours to make the pizza ÷ 8 hours to brew a gallon of root beer
= 4 ÷ 8 gallons
= 1 ÷ 2 gallons
Ask Socrates Inc. is a computer software company that employs highly intelligent, but somewhat unusual people. Every Friday, free lollipops, toys, or other treats are given out to encourage employees to remember how creative they were when they were children. All the new members of the organization are told about the founders who were three young people who "got lucky" and sold a video game that they invented. The employees are allowed to dress informally and can set their own working hours.Ask Socrates Inc. employees are allowed to dress informally. This is an example of a ________ through which organizational culture is transmitted.a. material symbolb. fundamental mechanismc. rituald. primary proceduree. symbolic act
Answer: a. Material symbol
Explanation:
When talking about the Material symbols of Organizational Culture, those unspoken norms and behaviours that explain to you the type of Organization you are in are what are being referred to.
Materials symbols explain the type of culture in an organization by conveying information on the Equality level of the employees as well as the type of performance and behaviour expected of them.
They can be expressed through dress codes, company cars and even offices given to a certain cadre of Employees.
Seeing as the above scenario deals with the dress code, it most likely falls under an Organization's material symbols.
Prices of zero-coupon bonds reveal the following pattern of forward rates: Year Forward Rate 1 5 % 2 6 3 7 In addition to the zero-coupon bond, investors also may purchase a 3-year bond making annual payments of $50 with par value $1,000. a. What is the price of the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
The price of the coupon bond is $ 1,232.30
Explanation:
The forward rates are:
year 1 5%
year 2 6%
year 3 7%
In determining the price of the bond,we discount the coupon and the face value of the bond as below:
price=coupon/(1+f1)+coupon/(1+f1)*(1+f2)+(coupon+face value)/(1+f1)*(1+f2)*(1+f3)
price=50/(1+5%)+50/(1+5%)*(1+6%)+1050/(1+5%)*(1+6%)*(1+7%)=$1,232.30
The price of the bond using the forward rates provided is $ 1,232.30
This implies that an increasing forward rates led to the bond been issued at a premium of $232.30 when compared to its face value of $1000 i.e $ 1,232.30-$1,000.00
Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .15 .37 .47 .27 Good .45 .22 .18 .11 Poor .35 −.04 −.07 −.05 Bust .05 −.18 −.22 −.08 a. Your portfolio is invested 20 percent each in A and C, and 60 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
2.41%
Explanation:
Note: The data in the question are merged and are first sorted before answering the question as follows:
a. Calculation of expected return of individual stock
Expected return of stock A = (0.15 * 0.45) + (0.37 * 0.22) + (0.47 * 0.18) + (0.27 * 0.11) = 0.26
Expected return of stock B = (0.15 * 0.35) + (0.37 * (−0.04)) + (0.47 * (−0.07)) + (0.27 * (−0.07)) = −0.01
Expected return of stock C = (0.15 * 0.05) + (0.37 * (−0.18)) + (0.47 * (−0.22)) + (0.27 * (−0.08)) = −0.12
b. Calculation of expected return of the portfolio
This is the sum of the product of expected return of individual stock and percentile invested in each stock as follows:
Expected return of portfolio = (0.26 * 20%) + (−0.01 * 60%) + (−0.12 * 20%) = 0.0241, or 2.41%
Nicola is the most qualified candidate for the job of marketing manager at Lean Inc. However, the recruiters do not hire her because they feel that a woman would not be able to handle the responsibilities associated with such a senior position. This is an example of the _____ effect
Answer:
Glass ceiling effect
Explanation:
Nicola is experiencing the glass ceiling effect,which is a barrier or resistance to the efforts of women and minorities to reach the top ranks of management in major corporations. This term refers to gender gap in managerial or executive positions in an organization that is faced by women and minorities even though they are well qualified for such positions. women in such organizations find themselves unable to advance beyond a certain level of management.
QuickBooks Online offers many solutions for categorizing financial transactions. The most common categories used are Chart of Accounts and Products and Services items. Which 4 additional lists are available to categorize financial activity and further optimize QuickBooks Online for your client? (Select all that apply)
Answer:
- class and/or location tracking
- projects
- sub-customers
Explanation:
Remember, QuickBooks online is an Enterprise resource tool that allows businesses manage their inventory and transactions which includes reports that would show details about projects, sub-customers and location.
Mantle Corporation is considering two equally risky investments: ∙ A $5,000 investment in preferred stock that yields 7.75%. ∙ A $5,000 investment in a corporate bond that yields 10%. What is the breakeven corporate tax rate that makes the company indifferent between the two investments? Assume a 70% dividend exclusion for tax on dividends. (Do not round your intermediate answer and round your final answer to two decimal places.)
Answer:
At a corporate tax rate of 16.29%, both investment shall have same income, so it will be the indifference point.
Explanation:
Let take X to be the corporate tax rate
Note that 70% dividend exclusion for tax on dividend mean 30% is actually applied to dividend
Preferred dividend = 5000 * 7.75% = 387.5
Taxable dividend = 387.5 * 30% = 116.25
Interest on bond = 5000*10% = 500
For the purpose of Indifference of the two investment brought about by the two break-even corporate tax
387.5 - 116.25 * X = 500 - 500*X
500 X - 116.25 X = 500 - 387.5
383.75 X = 175 -112.5
383.75 X = 62.5
X= 62.5/383.75
X= 0.1629
X=16.29%
At a corporate tax rate of 16.29%, both investment shall have same income, so it will be the indifference point.
Osborn Manufacturing uses a predetermined overhead rate of $20.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $282,800 of total manufacturing overhead for an estimated activity level of 14,000 direct labor-hours.The company incurred actual total manufacturing overhead costs of $279,000 and 13,500 total direct labor-hours during the period.Required:1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.2. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of the underapplied or overapplied overhead on the company's gross margin for the period?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Predetermined overhead rate= $20.20 per direct labor-hour.
The company incurred actual total manufacturing overhead costs of $279,000 and 13,500 total direct labor-hours during the period.
First, we need to calculate the allocated overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 20.20*13,500= $272,700
Now, we can determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 279,000 - 272,700
Under/over applied overhead= $6,300 underapplied
If overhead is underapplied, the company incurred in more overhead costs than estimated. Therefore, gross profit would decrease.
Consider an imaginary economy that has been growing at a rate of 6% per year. Government economists have proposed a number of policies to increase the growth rate but first need to convince the president that the policies will pay off. To do so, they want to present a comparison of the number of years it will take for the economy to double, depending on the growth rate.
Using the rule of 70, determine the number of years it will take the economy to double at each growth rate.Growth rate(Percent Years Required to Double(nearest whole number of years)4 5 6
Answer:
11.67 years
Explanation:
The rule of 70 requires that in determining when the economy growth rate will double its current growth rate, the appropriate thing to do is divide 70 by the current growth rate of 6% per year.
The economy's growth rate of 6% has its percentage ignored when the calculation is carried out.
=70/6= 11.67
The current economy's growth rate would double in 11.67 years' time
The industrial engineering approach is most likely to emphasize:
A. defining work arrangements and reporting requirements.
B. exploring new and diverse ways of doing the same job.
C. designing jobs in such a way that they require minimal specialization.
D. streamlining jobs to make them simpler and more efficient.
E. creating complex and challenging jobs that require innovative employees.
Answer:
Option D is correct
D)streamlining jobs to make them simpler and more efficient
Explanation:
Industrial engineering is an aspect of engineering profession that deals with the efficient optimization of complex processes as well as systems. It involves the development of integrated system of materials,equipment.
Industrial engineering cross accross fields such as has mechanical engineering, philosophy, economics, as well as sociology.
Industrial Engineering uses different approach to achieve it's goals, some of these approach are:
- It gather and analyse fact about the operation that is about to be carried out
-It examine all available fact critically by devicing different techniques such as charts, diagram.
- Getting alternative solution by brainstorming
-selection of best the best method.
All these steps helps industrial Engineers in streamlining jobs to make them simpler and more efficient.
Zoey is the CEO of a corporation she organized herself, and the corporation has 15 shareholders. The company operates in several states, as well as outside of the U.S. Her business consists mostly of training services for in-home medical care personnel. Her company would be a __________ corporation.
Answer:
ts 5ex5d gxt yrc6rcrx6rctsxtd e5xx
Answer:
Professional corporation
Steve Drake sells a rental house on January 1, 2019, and receives $100,000 cash and a note for $50,000 at 7 percent interest. The purchaser also assumes the mortgage on the property of $25,000. Steve's original cost for the house was $170,000 on January 1, 2011 and accumulated depreciation was $27,000 on the date of sale. He collects only the $100,000 down payment in the year of sale.
If Steve elects to recognize the total gain on the property in the year of sale, calculate the taxable gain.
Answer:
$32,000
Explanation:
The computation of the taxable gain is shown below;
Taxable gain on sale = Amount Realized - Adjusted Basis
where,
Amount Realized = Cash Received + Note received + Mortgage assumed by Purchaser
= $100,000 +$50,000 + $25,000
= $175,000
And, the adjusted basis is
= Original cost - Accumulated Depreciation
= $170,000 - $27,000
= $143,000
So, the taxable gain on sale is
= $175,000 - $143,000
= $32,000
The gain which is arise from purchasing the asset to the sale of the asset i.e difference in these amounts attract the taxable gain
The meaning of saving and investment
Classify each of the following based on the macroeconomic definitions of saving and investment.
1. Antonio purchases a corporate bond issued by a car company.
2. Dmitri takes out a loan and uses it to build a new cabin in Montana.
3. Frances purchases stock in NanoSpeck, a biotech firm.
4. Caroline buys new bulldozers for her construction firm.
Answer:
1. Saving
2. Investment
3. Saving
4. Investment
Explanation:
In macroeconomics, saving is when an individual's income is greater than consumption. Investment is when an individual purchases new capital. Dor example new machinery, car or house.
The purchase of a house and bulldozer is an investment because new capital is acquired.
The purchase of bond and stocks is savings because income isn't spent on consumption.
I hope my answer helps you
