Answer:
7.5%
Explanation:
according to CAPM -
Required rate of return = risk free rate + (beta x expected rate of return on the average stock)
Stock R = 3% + (10% X 1.7) = 20%
Stock S = 3% + (10% X 0.95) = 12.5%
20% - 12.5% = 7.5%
The _______________________, also known as the Currency and Foreign Transactions Reporting Act, was created to fight drug trafficking, money laundering, and other crimes.
Answer:
Bank Secrecy Act.
Explanation:
The Currency and Foreign Transactions Reporting Act, also known as the Bank Secrecy Act is a legislation created by the United States in 1970 to prevent the misuse of banks and financial institutions by criminals. This Act authorizes banks to disclose any large transactions or transfers.
Accordingly, this Act makes it secure from banks and financial institutions from being involved in criminal activities. This in turn helps in the fight against drug trafficking, money laundering cases, and other criminal activities.
"Farley Inc. has perpetual preferred stock outstanding that sells for $36 a share and pays a dividend of $2.50 at the end of each year. What is the required rate of return? Round your answer to two decimal places."
Answer:
Required rate of return = 6.944% (Approx)
Explanation:
Given:
Sale price = $36
Dividend = $2.50
Find:
Required rate of return
Computation:
Required rate of return = [Dividend/Sale price]100
Required rate of return = [2.50/36]100
Required rate of return = 6.944% (Approx)
You are offered a chance to buy an asset for $4,000 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of Year 2, $850 at the end of Year 3, and $6,250 at the end of Year 4. What rate of return would you earn if you bought this asset
Answer:
The answer would be 136.64 because you would Divied then you would Add the bigger number with the smallest number.
Explanation:
Suppose a fast-food restaurant wishes to estimate average sales volume for a new menu item. The restaurant has analyzed the sales of the item at a similar outlet and observed the following results: __ X 500 (mean daily sales) S 100 (standard deviation of sample) n 25 (sample size) The restaurant manager wants to know into what range the mean daily sales should fall 95 percent of the time. Perform this calculation.
A bond that compounds annually has a Face Value of $1,000 and maturity of 15 years. Assume that its coupon rate is 8% and yield to maturity (YTM) is 6.12%. What is this bond’s market price?
Answer: $1181.164
Explanation:
Based on the information given in the question, the interest will be:
= $1,000 × 8%
= $1000 × 0.08
= $80
The current bond price will be calculated as:
=[$80(PVIFA 6.12%,15)] + [$1,000(PVIF 6.12%,15)]
= ($80 × 9.63655) + ($1,000 ×0.41024)
= $770.924 + $410.24
= $1181.164
The bond's bond’s market price is $1181.164
What Freedoms are NOT in the First Amendment?
Right to Bear Arms
Right to Free Enterprise
Right to a speedy and public trial
All of the above
None of the Above
The balances of certain accounts of Brittany Corporation on April 30, 2019, were as follows: Sales $ 220,000 Sales Returns and Allowances $ 2,000 The firm’s net sales are subject to a 6 percent sales tax. Prepare the general journal entry to record payment of the sales tax payable on April 30, 2019.
Answer:
Sales tax = (Sales - Returns and Allowances ) * Sales tax rate
= (220,000 - 2,000) * 6%
= $13,080
April 30 DR Sales Tax Payable $13,080
CR Cash $13,080
(To record payment of Sales tax payable)
QUESTION 6 ___________ create and maintain consistent data processing methods and an integrated database across multiple business functions. Logistics information systems (LIS) Enterprise systems Decision support systems Transaction processing systems
Answer:
Enterprise Systems
Explanation:
This question has the characteristics of an enterprise system. It helps in planning the resources of an organization. It also provides solution to an integrated business. They are large software systems which are able to track and control every of the complex operations of a business. It makes jobs easier for both managers and also employees.
Price Quantity Demanded Quantity Supplied
$10 10 60
$8 20 45
$6 30 30
$4 40 15
$2 50 0
If the price were $8, a
a. surplus of 25 units would exist and price would tend to fall.
b. surplus of 10 units would exist and price would tend to fall.
c. shortage of 25 units would exist and price would tend to rise.
d. surplus of 50 units would exist and price would tend to fall.
Answer:
A
Explanation:
Equilibrium price is $6. At this price quantity demanded equals quantity supplied. Above equilibrium price, there would be excess supply. Below equilibrium price, there would be excess demand.
$8 is above equilibrium price, so there would be a surplus.
the surplus : 45 - 20 = 25
As a result of the surplus, prices would fall until equilibrium is restored
On November 1, Alan Company signed a 120-day, 9% note payable, with a face value of $24,000. Alan made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made
Answer: P;ease see answers in explanation column
Explanation:
Interest payable = Principal x rate x time(period)
= $24,000 x 9% x 60/360 ( Number of days from Nov to Dec 31 )
=$360
Interest expense= Principal x rate x time(period)
$24,000 x 9% x 60/360 ( Number of days from Jan to Feb 31 )
$360
Date accounts & explanation Debit credit
Mar 1 Notes payable $24,000
Interest payable $360
Interest expense $360
Cash $24,720
The journal entry as of March 1 to record the payment of the note assuming no reversing entry was made is:
Alan Company Journal entry
March 1
Debit Notes Payable $24,000
Debit Interest Payable $360
($27,000×9%×60/360)
Debit Interest Expense $360
($27,000×9%×60/360)
Credit Cash $24,720
($24,000+$360+$360)
(To record payment of note)
Learn more here:https://brainly.com/question/15870177
A person has a $350 monthly car payment, which is based on 12% annual interest, compounded monthly. Determine the amount of car bought if it was financed for 60 months and no down payment was paid.
Answer: $15,734
Explanation:
The monthly interest is;
= 12%/12
= 1% per month
The Present value of the monthly payments is the cost of the car and since this is a specified periodic payment, the present value of an annuity can calculate it;
= 350 * [tex]\frac{1 - (1 + 0.01)^{-60} }{0.01}[/tex]
= 350 * 44.9550384
= $15,734
evine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $4,500 (that had cost $3,326) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $4,600 (that had cost $2,981) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)
Answer:
Levine Company
Journal Entries:
April 8:
Debit Cash Account (Suntrust Credit Card) $4,320
Debit Credit Card Expense $180
Credit Sales Revenue $4,500
To record the sale of goods via Suntrust Credit Card and the 4% fee.
Debit Cost of Goods Sold $3,326
Credit Inventory $3,326
To record the cost of goods sold.
April 12:
Debit Continental Credit Card $4,485
Debit Credit Card Expense $115
Credit Sales Revenue $4,600
To record the sale of goods via credit card and the 2.5% fee.
Debit Cost of Goods Sold $2,981
Credit Inventory $2,981
To record the cost of goods sold.
Explanation:
The journal entries record the sales transactions as they occur. Cash is debited with the net amount received after deducting the credit card expenses, while the sales revenue account is credited with the full value of the sales transaction. Since Levine Company uses the perpetual inventory system, the transactions are debited to the cost of goods sold and credited to the inventory account for the costs.
In England the price of gasoline averages $1.03 around per liter. Using unit analysis, calculate the cost of gasoline in England in dollars per gallon.
Answer:
$3.90 dollars
Explanation:
Ok, let's assume that the $1.03 are dollars since it is using the cash symbol for dollar and not pounds which is £. Since we also know that there are 3.78541 liters in a gallon, we can use all three of these values using the three-way rule to find the amount a gallon of gasoline would cost which would be represented by x
$1.03 <==========> 1 liter
x <==========> 3.78541 liters
(3.78541 * 1.03) / 1 liter = x
3.898 / 1 liter = x
$3.90 = x
Therefore, we can see now that a gallon of gasoline would cost roughly $3.90 dollars.
The Victor Company sells two products. The following information is provided: Product A Product BUnit selling price$100 $150 Unit variable cost$30 $70 Number of units produced and sold 20,000 60,000 What is the weighted average contribution margin per unit?
A. $75.00
B. $80.00
C. $77.50
D. $72.50
Answer:
Weighted average contribution margin= $77.5
Explanation:
Giving the following information:
Product A Product B
Unit selling price $100 $150
Unit variable cost $30 $70
Number of units produced and sold 20,000 60,000
First, we need to determine the sales proportion:
Product A= 20,000/80,000= 0.25
Product B= 0.75
To calculate the weighted-average contribution margin, we need to use the following formula:
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (0.25*100 + 0.75*150) - (0.25*30 + 0.75*70)
Weighted average contribution margin= 137.5 - 60
Weighted average contribution margin= $77.5
Wayne Co. had a decrease in deferred tax liability of $20 million, a decrease in deferred tax assets of $10 million, and an increase in tax payable of $100 million. The company is subject to a tax rate of 40%. The total income tax expense for the year was: Group of answer choices
Answer: $90 million
Explanation:
From the question, we are informed that Wayne Co. had a decrease in deferred tax liability of $20 million, a decrease in deferred tax assets of $10 million, and an increase in tax payable of $100 million and that thee company is subject to a tax rate of 40%.
Based on the information above, the total income tax expense for the year will be:
= Increase in tax payable + Decrease in defered asset - Decrease in defered tax liability
= $100 + $10 - $20
= $90 million
If we have information about workers' marginal products, then total and average product can be found by
Answer:
Summing the marginal values to find the total and dividing it by the number of workers to get the average.
Explanation:
As we know that the marginal product of labor would be the extra amount of the product that is received by adding one or more labor in the process of the production. Now if we add the marginal amounts so we can get the total product
Also the average product could be determined by dividing the total product by its number of workers
Therefore the above is the answer
A 3.125 percent TIPS has an original reference CPI of 185.1. If the current CPI is 210.4, what is the par value and current interest payment of the TIPS? (Do not round intermediate calculations and round your final answers to 2 decimal places.) Interest rate Reference CPI Current CPI 3.125% 185.1 210.4 Complete the following analysis. Do not hard code values in your calculations. Par value Interest payment.
Answer:
Par value $1,136.68
Interest payment $17.76
Explanation:
Par value or Face value is the values written on the face of security. The par value of the TIPS is directly proportional to the CPI, as CPI increases the face value of the TIPS is also increasead and vice versa.
First we need to list the available data
Original reference CPI = 185.1
Current CPI = 210.4
Standard Par value = $1,000
Use following Formula to calculate the related par value
Par Value = Standard Par value x Current CPI / Original reference CPI
Placing values in the formula
Par Value = $1,000 x 210.4 / 185.1
Par Value = $1,136.68
Now calculate the semiannual interest payment
Interest payment = Par value x Interest rate x Semiannual fraction
Placing values in the formula
Interest payment = $1,136.68 x 3.125% x 6/12
Interest payment = $17.76
Calculate the total cost per hour to own the track dozer:
Purchase price: $550,000
Estimated salvage value $50,000
Useful life: 5 years
Annual usage: 2000 hours per year
Assume interest, insurance, and risk as 10%
Answer:
$68.45
Explanation:
initial outlay = $550,000
cash flow year 5 = $50,000
NPV = -$550,000 + $50,000/1.1⁵ = -$518,954
equivalent annual cost = NPV / PV annuity factor
PV annuity factor, 10%, 5 periods = 3.7908
equivalent annual cost = $518,954 / 3.7908 = $136,898.26
cost per hour = $136,898.26/2,000 hours = $68.45
What are the human behavior problems that can potentially arise in the budgeting process and how to overcome them
Answer:
Some of the human behaviors which can mar the efficacy of the budgeting process are:
GamesmanshipUse it or lose it syndromeTime taken to prepareBlame gameExplanation:
Gamesmanship
Gamesmanship refers to the unethical practice by line managers to understate how much they can make within a financial period against their expenses for the same period. What this helps them to achieve is that during appraisal periods, "additional revenues" create a favorable variance which gives the team the appearance of positive performance.
This can be prevented by great oversight by the Chief Financial Officer and other members of the leadership over the budgeting process.
Use it or lose it syndrome
Toward the end of a financial period, managers authorize expenditures that are not necessarily required on the basis that their budget for the next period will be reduced if it is found that their budget for a particular period was underutilized.
This can be resolved by ensuring that departments are actually rewarded for accomplishing all their target objectives using a lower budget. HR and can work together with the accounting and finance team to achieve this.
Time taken to Prepare
In some organizations, due to internal bureacracies, it takes a very long time to come up with a budget. The best way to overcome this challenge is through the use of technology.
There are great apps such as Mint, Goodbudget, which not only helps with the budgeting process but also helps to track the spending process, recording them as the activities are carried out.
Blame game
This is the practice of projecting the problems arising from budgeting on other departments. The most common argument is that such units didn't give adequate support towards the attainment of its goals, hence the poor performance of the budget for that unit.
Greater training toward accountability can be used to correct this mentality. Also, the HR unit can build into the Key Performance Areas of the organization the section that measures the degree of accountability.
Cheers
A potential buyer should avoid starting negotiations with automobile sales staff by establishing ______.
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.
All things being equal except the ratio of fixed assets to long-term liabilities, a lender would prefer to lend to a company whose ratio is:
Answer: d. 3.5
Explanation:
The Fixed assets to long-term liabilities ratio is used to check how much of a company's debt can be covered by its fixed assets because fixed assets can be sold to recover the debt if need be.
It is calculated by dividing the fixed assets by the long-term labilities of the company and in general, the higher this ratio, the better. The highest from the options is 3.5 so that is the answer.
Frasier Cabinets wants to maintain a growth rate of 5 percent without incurring any additional equity financing. The firm maintains a constant debt-equity ratio of .55, a total asset turnover ratio of 1.30, and a profit margin of 9 percent. What must the dividend payout ratio be?
Answer:
73.74 %
Explanation:
Calculation for dividend payout ratio
First step is to calculate Return on equity
Return on equity = 0.09 ×1.30 ×(1 + 0.55)
Return on equity= 0.18135
Second step is to calculate Sustainable growth
Sustainable growth = [0.18135 ×b]/[1 - (0.18135 ×b)]
0.05 = (0.18135 x b)/ ( 1- (0.18135 x b))
b = 0.2626
Last step is to calculate the Dividend Payout ratio
Dividend Payout ratio = 1 - 0.2626
Dividend Payout ratio=0.7374*100
Dividend Payout ratio = 73.74 %
Therefore Dividend Payout ratio will be 73.74 %
Novak Corp. purchased a piece of equipment for $52,000. It estimated a 8-year life and $2,080 salvage value. At the end of year 4 (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $4,160. Compute the revised depreciation. Company uses straight-line depreciation method. (Round answer to 0 decimal places, e.g. 125.)
Answer:
$2,288 per year
Explanation:
We can calculate the revised depreciation to be;
• Annual depreciation charge of equipment using initial estimates
Depreciation charge = (Cost of asset - Salvage value) / Useful life
= ($52,000 - $2,080) / 8 years
= $6,240 per year
• Calculate the net book value of equipment at the end of year 4
Cost of asset
$52,000
Less: Accumulated depreciation of 4 years ($6,240 × 4)
($24,960)
Net book value
$27,040
• Calculate revised depreciation charge using the revised useful life
Revised depreciation charge = (Net book value of asset at the end of year 4 - New salvage value) / Revised useful life
= ($27,040 - $4,160) / 10 years
= $2,288 per year
what is the present value of an annuity that pays $1 at the end of each year for the next 15 years with an annual effective interest rate 6.5% g
Answer:
PV= $9.40
Explanation:
Giving the following information:
Annual payment= $1
Interest rate= 6.5%
Number of periods= 15 years
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {1*[(1.065^15) - 1]} / 0.065
FV= $24.18
Now, the present value:
PV= FV/(1+i)^n
PV= 24.18 / 1.065^15
PV= $9.40
Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes (LOW) at $30 per share, and 100 shares of Ball Corporation (BLL) at $40 per share. The weight on Abbott Labs in your portfolio is:
Answer:
Investment
The weight on Abbott Labs' investment in the portfolio is:
50%
Explanation:
Investments made by the investor are:
200 shares of Abbott Labs (ABT) at $50 per share = $10,000
200 shares of Lowes (LOW) at $30 per share = $6,000
100 shares of Ball Corporation (BLL) at $40 per share = $4,000
Total investments (Portfolio) = $20,000
Investments Weights of investments % Weight
Abbott Labs $10,000/$20,000 * 100 = 50%
Lowes (LOW) $6,000/$20,000 * 100 = 30%
Ball Corporation (BLL) $4,000/$20,000 * 100 = 20%
Assume that Martinez completed the office and warehouse building on December 31, 2020, as planned at a total cost of $14,560,000, and the weighted-average amount of accumulated expenditures was $10,080,000. Compute the avoidable
Answer:
Note: The complete question is attached as picture
1. Avoidable interest on construction loan = $6,000,000 * 12% = $672,000
Calculation of weighted average interest rate on general loan
Loan Amount Interest rate Interest (Amount*rate)
Short term loan 3,920,000 10% 392,000
Long term loan 2,800,000 11% 308,000
Total 6,720,000 700,000
Weighted average interest rate = 700,000 / 6,720,000
Weighted average interest rate =0.10416667
Weighted average interest rate = 10.42%
Avoidable interest on remaining expenditure = ($10,080,000 - $5,600,000) * 10.42%
Avoidable interest on remaining expenditure = $4480000 * 10.42%
Avoidable interest on remaining expenditure = $466,816
Total avoidable interest = $672,000 + $466,816
Total avoidable interest = $1,138,816
2. Total cost of building capitalized = $14,560,000 + $$1,138,816
Total cost of building capitalized = $15,698,816
Depreciation expenses = Cost - Salvage value / Useful life
Depreciation expenses = $15,698,816 - $840,000 / 30 years
Depreciation expenses = $14,858,816 / 30 years
Depreciation expenses = $495293.86667
Depreciation expenses = $495,293.87
Suppose the contribute $10 per week ($520 per year) into an interest-bearing account that earns 6% a year(compounded once per year). That's probably one less pizza per week! But if you contribute faithfully each week into this account, how much money would you have saved through the compounding of interest by the end of 15 years
Answer:
The money that should be saved at the end of 15 years is $12,103.52
Explanation:
The computation of the money that should be saved at the end of 15 years is shown below:
= A(F/A, i, N)
= 520 (F?A, 6,15)
= 520(23.2760)
= $12,103.52
hence, the money that should be saved at the end of 15 years is $12,103.52
We simply applied the above formula so that the correct answer could come
The same is to be considered
March 11 Dexter determines that it cannot collect $8,100 of its accounts receivable from Leer Co. 29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions.
Answer and Explanation:
The journal entries are shown below:
On Mar 11
Bad debt expense $8,100
To Account receivable $8,100
(Being bad debt expense is recorded)
On Mar 29
Account receivable Dr $8,100
To bad debt expense $8,100
(Being written off amount is recorded)
On Mar 29
Cash Dr $8,100
To account receivable $8,100
(Being collection is recorded)
Parkway Void Co. issued 17-year bonds two years ago at a coupon rate of 8.6 percent. The bonds make semiannual payments. If these bonds currently sell for 110 percent of par value, what is the YTM
Answer:
7.48 %
Explanation:
Lets first assume that the par value on this Bond is $100.
Then, we would calculate the Yield to Maturity as
PV = $100 × 110% = - $110
N = 15 × 2 = 30
P/yr = 2
Pmt = ($100 × 8.6 %) ÷ 2 = $4.30
FV = $100
YTM = ?
Using a financial calculator to input the values as above, the Yield to Maturity of this Bond will be 7.48 %
John has $20 to spend on potato chips (X) and pretzels (Y). The price of a bag of potato chips is $4 and the price of a bag of pretzels is $2.5. How much is the market rate of substitution?
a. 0.625
b. 5
c. 8
d. 1.6
Answer:
1.6
Explanation:
The Market Rate of Substitution: The rate at which one good can be exchanged for another at current market prices. The Market Rate of Substitution for X with Y. The amount of Y which must be given up in order to get one more unit of X, given a fixed budget and market price .
DATA
Price of bag of potato chips = $4
Price of bag of pretzels = $2.5
Solution
Market rate of substitution = MUx / MUy = Px / Py
Market rate of substitution = 4 / 2.5
Market rate of substitution = 1.6
