Answer: By securing funding from investors and hiring people with complementary skills
Explanation:
Entrepreneurs can acquire capital from other people who will then become investors and and give them funding. With this funding they will initiate the business they had in mind and provide returns for the investors.
Entrepreneurs do not always have to have all the skills required to run their business because they can simply employ people who do. These people with complimentary skills will ensure that the company has the knowledge required to do well.
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
When activities are arranged in a line according to the sequence of operations for assembling a particular product the layout is said to be a:
Answer: Product layout
Explanation:
Product layout is when activities are arranged in a line according to the sequence of operations for assembling a particular product.
In product layout, both the tools and th supplies which are needed for the manufacturing process are at the assembly line. This brings about identical products to be made.
Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $390 cash per truck for the cost of their annual tune-ups. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $438,750 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.
Answer: a. Capital expenditure
b. Revenue expenditure
c. Revenue expenditure
d. Capital expenditure
Explanation:
Capital expenditures are usually huge expenditure on fixed assets such as land or building and they re usually incurred to generate revenue for the business.
Revenue expenditures are usually for short term basis and are operating expenses, that us required to run the business daily.
Based on the above explanation, the answers to the following will be:
a. Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. - Capital expenditure
b. Paid $390 cash per truck for the cost of their annual tune-ups. - Revenue expenditure
c. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. - Revenue expenditure.
d. Completed an addition to a building for $438,750 cash. - Capital expenditure
Check the attachment for the journal entry
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%
An online buying club requires an annual fee of $130 in order to qualify for a 16 percent discount on purchases. What amount would a person have to buy in order to save enough to cover the cost of the membership
Answer:
$812.50
Explanation:
Calculation for the amount a person have to buy in order to save enough to cover the cost of the membership
Using this formula
Amount to buy =Annual fee/Discount on purchases
Let plug in the formula
Amount to buy=$130/0.16
Amount to buy=$812.50
Therefore the amount a person have to buy in order to save enough to cover the cost of the membership is $812.50
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
3.Assuming the quotes of exchange rates against dollar for the Swiss franc and the Australian dollar are as follows: Bank QuotationsBidAsk $ / SFr .7265 .7272 $ / A$ .6135 .6140 Suppose a Swiss company has investment proceeds equal to 1 million Australian dollars, and wants to convert it to Swiss franc. What are his proceeds from conversion
Answer:
proceeds from conversion is SFr 843,646.86
Explanation:
The computation of the proceeds from the conversion is shown below:
By Converting A$ into $ so we get
= 1,000,000 × 0.6135
= $613,500
And, if
Convert $ into Sfr
So,
= $613,500 ÷ 0.7272
= Sfr 843,646.8646
Therefore, proceeds from the conversion is SFr 843,646.86
The same is to be considered so that the correct value could come
A car may be purchased with $3,500 down payment now and 72 monthly payments of $489. If the interest rate is 9% per year compounded monthly, what is the price of the car
Answer: $30628.155
Explanation:
After the calculations in the attachment has been made, the present value was gotten as $27128.55
The price of the car was calculated as the addition of the down payment and the present value which was:
= $3500 + $27128.55
= $30628.155
Note that in the calculation in the attachment,
r = 9%/12 = 0.75%
n = 72.
Check attachment for more details
Apricot Corporation distributes property ($125,000 basis and $150,000 fair market value) to its sole shareholder, Ellie. The property is subject to a liability of $200,000, which Ellie assumes. Apricot has E
Answer: $75,000; $400,000.
Explanation:
Here is the complete question:
Apricot Corporation distributes property ($125,000 basis and $150,000 fair market value) to its sole shareholder, Ellie. The property is subject to a liability of $200,000, which Ellie assumes. Apricot has E & P of $325,000 prior to the distribution. a)What gain, if any, does Apricot recognize on the distribution? What is Apricot’s accumulated E & P at the start of the following year?
The gain recognized by Apricot on the distribution will be:
= $200,000 - $125,000
= $75,000
Apricot’s accumulated E & P at the start of the following year will be:
= $325,000 + $75,000
= $400,000
to determine the regular payment amount, rounded to the nearest dollar. In terms of paying less in interest, which is more economical for a $ mortgage: a 30-year fixed-rate at % or a 20-year fixed-rate at %? How much is saved in interest?
Answer:
the numbers are missing, so I looked fro similar questions:
Which is more economical for a $210.000 mortgage: a 30-year fixed-rate at 9% or a 20-year fixed-rate at 8.5%? How much is saved in interest?
if you take the 30 year mortgage, your monthly payment will be:
monthly payment = present value / PV annuity factor
present value = $210,000PV annuity factor, 0.75%, 360 periods = 124.2817monthly payment = $210,000 / = $1,689.71
total payments = $1,689.71 x 360 = $608,295.60
total interests paid = $608,295.60 - $210,000 = $398,295.60
if you take the 20 year mortgage, your monthly payment will be:
monthly payment = present value / PV annuity factor
present value = $210,000PV annuity factor, 0.7083%, 240 periods = 115.2308monthly payment = $210,000 / = $1,822.43
total payments = $1,822.43 x 240 = $437,383.20
total interests paid = $437,383.20 - $210,000 = $227,383.20
if you take the 20 year mortgage, you will save $398,295.60 - $227,383.20 = $161,912.40 in interests
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:
Y3K, Inc., has sales of $12,840, total assets of $4,730, and a debt-equity ratio of .25. If its return on equity is 14 percent, what is its net income
Answer:
Equity multiplier = 1 + Debt−equity ratio
Equity multiplier = 1 + 0.25
Equity multiplier = 1.25
Total asset turnover = Sales / Total assets
Total asset turnover = $12,840 / $4,730
Total asset turnover = 2.71 times
ROE = (Profit margin)(Total asset turnover)(Equity multiplier)
0.14 = (Profit margin)(2.71)(1.25)
Profit margin = 0.0413 or 4.13%
Profit margin = Net income / Sales
0.0413 = Net income / $12,840
Net income = $529.76
The Sour Pickle Company has a debt-equity ratio of 1.37. Return on assets is 7.62 percent,...
The Sour Pickle Company has a debt-equity ratio of 1.37. Return on assets is 7.62 percent, and total equity is $685,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and...
Shelton Company has a debt-equity ratio of 1.41. Return on assets is 7.66 percent, and total...
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,576 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,461 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,437. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%
Answer:
The answer is "1832".
Explanation:
The PVAF(r,n) start value[tex]= \frac{(1+r)^{n-1} -1 \ \ +1}{r \times (1+r)^n-1}[/tex]
The PVAF(r,n) end value[tex]= \frac{(1+r)^{n} -1}{r \times (1+r)^n}[/tex]
The PVF(r,n) value [tex]= \frac{1}{(1+r)^n}[/tex]
[tex]r = \text{Rate of dirscount} \\\\n = terms[/tex]
[tex]\text{Present Value= Monthly rent} \times PVAF[/tex]
PVAF(20%, 3) starting = 2.5278
PVAF(20%, 3) ending = 2.1065
PVAF(20%, 3) starting = 5787
calculating the lease payment of present value:
[tex]present \ value = Lease\ payment \times PVAF(10 \%,3) starting[/tex]
[tex]=3609 \times 2.5278\\\\=9122.75[/tex]
existing importance by busing excluding annual servicing
[tex]\text{present value = cost - sale value} \times PVF(20 \%,3)[/tex]
[tex]=6113-1469\times 0.5787 \\\\=5262.88[/tex]
Calculating the annual maintanance=[tex]\frac{\text{present value of leasing -buying}}{ PVAF(20 \%,3) ending}[/tex]
[tex]=\frac{3859.87}{2.1065}\\\\=1832.32 \ \ \ or \ \ \ 1832[/tex]
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.
If you co-sign for a friend's credit card, what is the danger to you if your friend fails to pay?
A.
You might get secured credit.
B.
You might have to pay extra money in taxes.
C.
Your credit score might go down.
D.
Your credit score might go up.
Please select the best answer from the choices provided
A
B
C
D
Answer:
C
Explanation:
A large electric utility company spews million tons of greenhouse gases (mostly carbon dioxide) into the environment each year. This company has committed to spending $ billion in capital over the next five years to reduce its annual emissions by %. More will be spent after five years to reduce greenhouse gases further. a. What is the implicit cost of a ton of greenhouse gas? b. If the United States produces billion tons of greenhouse gases each year, how much capital must be spent to reduce total emissions by % over the next five years based on your answer in Part (a)?
Answer:
a. $537.31 per ton
b. $64,477,200,000
Explanation:
a. 5% of 67 million tons will cost $1.8 billion to be reduced.
The implicit cost of a ton therefore is;
= 1,800,000,000 / (5% * 67,000,000)
= 1,800,000,000/ 3,350,000
= $537.31 per ton
b. The amount to be spent to reduce 4 billion tons by 3% is;
= 537.31 * (4,000,000,000 * 3%)
= $64,477,200,000
What are 3 primary ways to get information into QuickBooks Online?
Answer:
• Use the import data tool.
• Manually place data in QuickBooks online formats and check registers.
• Convert data from existing QuickBooks table file
Explanation:
QuickBooks is simply an accounting software package. It should be noted that QuickBooks products offer accounting applications that are used to make payments , bills and also perform payroll functions.
The three primary ways to get information into Quickbooks Online are the use the import data tool, manually placing data in QuickBooks online formats and check registers and converting data from existing QuickBooks table file.
Bob bought some land costing $15,690. Today, that same land is valued at $45,417. How long has Bob owned this land if the price of land has been increasing at 5 percent per year
Answer:
t = 21.78436854 rounded off to 21.78 years
Explanation:
We are given the future value and the present value of land. To calculate the number of years of ownership of the land whose price has been increasing at 5% per year, we can use either use the formula for Future Value or Present value.
Here we are solving it using the future value formula which is,
FV = PV * (1 + r)^t
Where,
FV is Future Value
PV is Present value
r is the annual rate of increase
t is time period in years
Plugging in the values for FV, PV and r, we can calculate the value of t,
45417 = 15690 * (1 + 0.05)^t
45417 / 15690 = (1+0.05)^t
2.894646272 = (1.05)^t
Taking log on both sides.
Ln(2.894646272) / Ln(1.05) = t
t = 21.78436854 rounded off to 21.78 years
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.
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
Ben & Jerry's mission to make the world a better place is linked to various organizational and marketing strategies, one of which is:_______a. supporting farmers who agree to use sustainable farming practices, implementing fair working standards, and investing in local communities.b. the intent of making modest profits without sacrificing high product quality standards.c. ingredients that are all completely organic and are available only in Vermont to ensure freshness and contribute to the local economy.d. a commitment to donating a percentage of profits to Teach for America.e. ingredients that come exclusively from developed countries promoting Fair Trade practices.
Answer:
a. supporting farmers who agree to use sustainable farming practices, implementing fair working standards, and investing in local communities.
Explanation:
Ben and Jerry refers to an agricultural company that is focused on delivering the best of its finished goods to the consumer.
Ben & Jerry's mission to make the world a better place is linked to various organizational and marketing strategies, one of which is supporting farmers who agree to use sustainable farming practices, implementing fair working standards, and investing in local communities.
how old does a fight have to be in order for it to be old
Answer:
2 weeks and more why?
Explanation:
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
KLM Corporation's quick assets are $6,158,000, its current assets are $13,650,000 and its current liabilities are $8,170,000. Its acid-test ratio equals:
Answer:
0.75
Explanation:
KLM corporation quick assets is $6,158,000
Current assets are $13,650,000
Current liabilities are $8,170,000
Therefore the acid test ratio can be calculated as follows
= quick assets/current liabilities
= $6,158,000/$8,170,000
= 0.75
Hence the acid test ratio is 0.75
Locher Co. reported cost of goods sold for 2020 of $1,400,000. Locher later discovered that its ending inventories at December 31, 2019 and 2020 were overstated by $110,000 ad $35,000, respectively. What is the correct amount for 2020 cost of goods sold
Answer:
$1,325,000
Explanation:
Calculation for the correct amount for 2020 cost of goods sold
Using this formula
2020 Correct amount for Cost of Goods sold = Reported cost of Goods sold + 2020 Overstated ending inventory - 2019!Overstated Ending inventory
Let plug the formula
2020 Correct amount for Cost of Goods sold = $1,400,000 + $35,000 - $110,000
2020 Correct amount for Cost of Goods sold = $1,325,000
Therefore 2020 Correct amount for Cost of Goods sold will be $1,325,000
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).
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%.
Country X has requested and received a loan from the world bank. Country X may not use the money to finance ____
Answer:
Non-developmental Projects
Explanation:
Country X requested for and received a loan from the world bank (formerly the International Bank for Reconstruction and Development).
Country X may not (Country X is not allowed to) use the money to finance projects that are unrelated to development.
This stems from the purpose of the World Bank and its funding acts. The World Bank's key function is:
- Lending to the middle-class nations (at relatively low interest rates) and giving to the poorest nations (at no interest rate) who are its members.
Country X hence is either a middle-income country or a low-income country. It may only use the loan to finance projects that aim at improving the quality of human life e.g. health projects, educational projects, environmental projects, etcetera.
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
This year, Barney and Betty sold their home (sales price $750,000; cost $200,000). All closing costs were paid by the buyer. Barney and Betty owned and lived in their home for 18 months. Assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income
Answer: $550,000
Explanation:
From the question, we are informed that Barney and Betty sold their home (sales price $750,000; cost $200,000) and that all the closing costs were paid by the buyer.
Since no unusual or hardship circumstances apply and all the closing stocks were paid by the buyer, the amount of the gain that will be included in gross income will be:
= $750,000 - $200,000
= $550,000
