Answer: 33.2%
Explanation:
Floatation costs percentage = Total costs / Net amount received
Net amount received = Total received - Direct legal - Indirect cost
= (21.39 * 20 million) - 950,000 - 320,000
= $426,530,000
Total Cost = 950,000 + ((Initial offering price - Amount received) * 20 million) + 320,000 + ((Stock appreciation - initial offering price) * 20 million)
= $141,670,000
Floatation cost = 141,670,000/ 426,530,000
= 33.2%
This year Ed celebrated his 25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a gold watch worth $355 and a $2,970 cash bonus. What amount must Ed include in his gross income
Answer:
Follows are the solution to this question:
Explanation:
The gross profits would include the award won by the employee as a $2,970 cash bonus. $355 gold watch won't be provided Registered in the employee's gross salary.
Lion Corp. has a $4,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 20 years to maturity. The yield to maturity on this bond is 2.1 percent. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$5.626.25
Explanation:
The price of the Bond is its Present Value (PV) and this is calculated by using a Financial calculator as follows :
FV = $4,000
PMT = ($4,000 × 4.6%) ÷ 2 = $92.00
N = 20 × 2 = 40
P/YR = 2
I = 2.10 %
PV = ?
Thus, the dollar price of the bond is $5.626.25.
When Irene wants to buy new laptops for her marketing executives and she has to pick them up from a single brand that is preinstalled with the marketing software that her company needs, she's making a decision under a condition of
Answer:
i do not know
Explanation:
Orange Company developed a patent internally for its own benefit. It incurred research and development costs totaling $12 million, and legal and filing fees costs paid to a law firm to secure the patent, totaling $2 million. What amount can Orange capitalize as the cost of the patent
Answer:
Orange Company
The amount which Orange Company can capitalize as the cost of the patent is $2 million.
Explanation:
a) Data and Calculations:
Research and development costs of patent = $12 million
Legal fees for securing the patent = $2 million
Total cost of patent = $14 million ($12 million + $2 million)
Allowable capitalization cost = $2 million
b) Capitalization cost of patent:
Only the legal fees that are incurred to register or defend an internally developed patent are allowed for capitalization. The research and development costs of an internally developed patent cannot be capitalized, but they are expensed as incurred. However, Orange Company can capitalize the cost of acquired patent and its legal fees.
Your estimate of the market risk premium is 5%. The risk-free rate of return is 4%, and General Motors has a beta of 1.5. According to the Capital Asset Pricing Model (CAPM), what is its expected return
Answer:
The expected rate of return is 12.5%
Explanation:
The computation of the expected rate of return using CAPM Model is shown below:
Expected rate of return = Risk free rate of return + Beta × Market risk premiun
= 4% + 1.5 × 5%
= 4% =+ 7.5%
= 12.5%
Hence, the expected rate of return is 12.5%
We simply applied the above formula
And, the same is to be considered
A substantial percentage of the companies listed on the NYSE and the NASDAQ don’t pay dividends, but investors are nonetheless willing to buy shares in them. How is this possible given your answer to the previous question?
Answer:
There are several ways in which corporations are valued, one of them is the dividend discount model, and the most common is the discounted cash flow model. When a corporation doesn't pay dividends, it can invest that money in future or existing projects, which will eventually increase the corporation's net income. Remember that $1 distributed to shareholders is $1 less that can be invested.
Of course stockholders love dividends, but a firm that pays a really high dividend payout ratio will not grow. Sooner or later that will ultimately hurt the corporation and jeopardize its future. The higher the dividend payout ratio, the lower a corporations sustainable growth rate.
1. In the 1990’s, Enterprise Rent-A-Car was a highly-profitable and fast-growing market leader concerned about protecting their place in the market. Based on your knowledge of the rental car market, would you conclude that Enterprise was operating in a Red Ocean or Blue Ocean competitive environment? Frame your answer in the context of at least three of the descriptors used in the Red Ocean / Blue Ocean model (and discussed in class).
Answer:
Enterprise Rent-A-Car was definitely operating in a Red Ocean enviroment.
Explanation:
This is because Red Ocean enviroments are characterized by stiff competition, market saturation, and innovation lagging, and the European market for Rental cars was already saturated in the 1990s.
This is why, despite being a market leader, the firm was anyway very worried about keeping its position, and spent a great deal of resources in doing so. In a Blue Ocean Strategy, the situation would be much more relaxed simply because the market would have far less competition (even none), and large tracts of the market would still be untapped.
Assuming that diminishing marginal utility applies to both goods, if a consumer buys more plastic bins and fewer door hooks, the _____ utility of plastic bins will _____, and the _____ utility of door hooks will_______
a. marginal; fall; marginal; fall
b. marginal; rise; total; rise
c. marginal; fall; marginal; rise
d. total; fall; marginal; rise
Answer:
C. marginal; fall; marginal; rise
Assuming that diminishing marginal utility applies to both goods, if a consumer buys more plastic bins and fewer door hooks, the MARGINAL utility of plastic bins will FALL (DECREASE), and the MARGINAL utility of door hooks will RISE (INCREASE).
Explanation:
According to the law of diminishing marginal utility, the more goods or services that you acquire from a certain product X, the utility of consuming that extra unit of good X will be smaller every time. I.e. the more you consume of good X, the less utility you will obtain from consuming it. E.g. you might enjoy a slice of pizza, but if you keep eating, the utility of having the fifth slice will be much lower than the utility from consuming the first one.
Which type of work would include providing advice to managers on how to reduce the organization's costs?
OA public relations manager
B. management analyst
OC. marketing researcher
OD
H.R. manager
Answer:
B. management analyst
Explanation:
A management analyst helps an organization by seeking ways to increase revenue, reduce costs, and become more profitable. They study an organization's design, systems, and procedures and advise management on improving efficiency. Management analysts or management consultants work as private consultants. However, some large organizations employ them. Management analysts regularly work in the business field.
Answer:
B. management analyst
Explanation:
On April 1, 2013, Maggie bought a new delivery truck for her business. The purchase price of the truck was $34,000. Maggie wrote a check for a 20% down payment. The interest rate on the loan is 8% and the loan period is nine months. How much interest must Maggie record when she pays off the loan on December 31st
Answer:
interest expense = $1,632
Explanation:
the original journal entry to record the purchase is:
April 1, 2013, truck purchased
Dr Truck 34,000
Cr Cash 6,800
Cr Notes payable 27,200
the interest expense = $27,000 x 8% x 9/12 = $1,632
the journal entry to record the payment of the note payable is:
December 31, 2013, payment of note payable
Dr Notes payable 27,200
Dr Interest expense 1,632
Cr Cash 28,832
Which of the following statements is not good advice for prioritizing your spending? A. First determine your needs and wants. B. Use your "want money" on little everyday purchases rather than on big purchases. C. Focus on spending your "want money" on things that will improve your quality of life. D. Don't use your "want money" on things that are "flashy" but don't really have much value.
Answer:
B
Explanation:
If the prices of A, B, and C are $7, $5, and $3, respectively, and the consumer has $75 to spend on these three products, what combination of the three products should be purchased in order to maximize utility
Answer:
some information is missing, so I looked for similar questions and found the attached image:
A B C
cost MU per $ cost MU per $ cost MU per $
$7 11 $5 12 $3 12
$7 10 $5 10 $3 11
$7 8 $5 9 $3 9
$7 7 $5 8 $3 6
$7 5 $5 5 $3 5
$7 4 $5 4 $3 4
$7 1 $5 3 $3 3
We must calculate the cumulative MU per $ per product:
A B C
cost C. MU/$ cost C. MU/$ cost C. MU/$
$7 11 $5 12 $3 12
$7 21 $5 22 $3 23
$7 29 $5 31 $3 32
$7 36 $5 39 $3 38
$7 41 $5 43 $3 43
$7 45 $5 47 $3 47
$7 46 $5 50 $3 50
The consumer should purchase 4 units of A (and spend $28) in order to receive 253 utils, he/she should purchase 5 units of B (and spend $25) in order to receive 220 utils, and finally should purchase 7 units of C (and spend $21) in order to receive 150 utils.
Total expenditure = $74 and total utils received = 623. Average utils per dollar = 8.42.
What is NOT a financing activity? Question options: Purchase of common stock. Purchase of treasury stock. Sale of an investment. Issuance of bonds.
Answer:
What is NOT a financing activity?
Sale of an investment.
Explanation:
The sale of an investment by Company A is an investing activity. When the company purchases its own common stock or treasury stock, it is a financing activity. The issuance of bonds is also a financing activity. This leaves the sale of investment as the only investing activity. The Statement of Cash Flows is usually classified into three main categories. They are the operating activities, the investing activities, and the financing activities. There are also the non-cash flow activities.
George purchased a life annuity for $2,000 that will provide him $50 monthly payments for as long as he lives. Based on IRS tables, George's life expectancy is 100 months. How much of the first $50 payment will George include in his gross income
Answer:
The amount included in his gross income is $30
Explanation:
The computation of the amount included in his gross income is shown below:
The Amount to be involved in gross income is
= First amount - (purchase value of a life annuity ÷ expectancy life)
= $50 - ($2,000 ÷ 100)
= $50 - $20
= $30
Hence, the amount included in his gross income is $30
We simply applied the above formula so that the correct amount could come
Jacob purchased business equipment for $56,000 in 2017 and has taken $35,000 of regular MACRS depreciation. Jacob sells the equipment in 2020 for $26,000. What is the amount and character of Jacob's gain or loss
Answer:
Ordinary gain = $5,000
Explanation:
Given:
Purchase price of equipment = $56,000
Regular MACRS depreciation = $35,000
Sales price = $26,000
Find:
Gain/Loss
Computation:
Current price of equipment = $56,000 - $35,000
Current price of equipment = $21,000
Ordinary gain = $26,000 - $21,000
Ordinary gain = $5,000
I need help with the operation management assignment plz
Jepson uses the periodic inventory system and the gross method of accounting for purchases. The journal entry that Jepson will make on September 12 is:
Answer and Explanation:
The journal entry is shown below:
Purchases $6,000
To Account payable $6,000
(Being purchases on the account is recorded)
Here we debited the purchase as it increase the inventory while on the other hand the account payable is credited as it also increased the liability
So the above entry should be recorded
Discuss the customer’s role as a productive resource for the firm. Describe a time when you played this role. What did you do and how did you feel? Did the firm help you to perform your role effectively? How?
Answer:
A. Customers play important productive roles especially in the creation and delivery of some repeatable services. The roles a customer plays "as a productive resource for the firm" include:
1. The customers act as some partial employees in enhancing the productivity of the firm.
2. The customers contribute to the organization by supplying their valuable time, effort, ideas, and other resources.
3. Without customers playing productive roles, some services cannot be provided to them. Sometimes, the customers actively serve themselves. A typical example is at restaurants and other self-service firms.
4. Customers suggest valuable solutions to resolve some product and service problems.
B. At shopping malls, and even calling for the services of a plumber or electrician,the customer serves in many ways. She pushes the trolley around to pick the goods she requires and afterward, pushes them to the cashier for payment. She helps the plumber or electrician with repair materials or make suggestions on how to solve repair problems.
C. The customer sometimes feel that the plumber or electrician would mess up the repairs without their thoughtful input.
D. Some firms help the customer to perform this role as "a productive resource" when they provide serviceable trolleys for shopping or when they send in some respectful and competent repair people, who dress decently without oozing some offending odor.
Explanation:
It is only some discourteous firms that do not recognize that their customers play an important role as a productive resource. For some service organizations, their services cannot be consummated without the active participation of the customer. It is, therefore, imperative that firms help their customers to perform this role effectively and efficiently.
Why do buyers and sellers voluntarily work together?
Answer:
The principle of voluntary exchange is based on consumers and producers acting in their self-interest. A voluntary exchange between a consumer and a producer makes both parties better off than they were before the exchange. For example: Both parties, you and the consumers, are better off because of the exchange.
Answer:
Sellers need buyers to make a profit. If sellers create goods and services that the buyer will need or want, they will buy it resulting in profit for the seller.
Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 6 % 0 % Market 10.8 24 A 8.8 13 a. Calculate the Sharpe ratios for the market portfolio and portfolio
Answer:
Sharpe ratio of market portfolio = 0.2
Sharpe ratio of market portfolio = 0.2154
Explanation:
Calculation for the Sharpe ratios for the market portfolio and portfolio A
Market portfolio
Using this formula
Sharpe ratio of market portfolio = (Expected return of portfolio - Risk free return on portfolio)/ Standard deviation
Let plug in the formula
Sharpe ratio of market portfolio= (10.8 - 6)/24
Sharpe ratio of market portfolio=4.8/24
Sharpe ratio of market portfolio = 0.2
Portfolio A
Using this formula
Sharpe ratio of portfolio A = (Expected return of portfolio - Risk free return on portfolio)/ Standard deviation
Let plug in the formula
Sharpe ratio of portfolio A= (8.8 - 6)/13
Sharpe ratio of portfolio A=2.8/14
Sharpe ratio of portfolio A= 0.2154
Therefore the Sharpe ratios for the market portfolio is 0.2 and portfolio A is 0.2154
O'Donnell Company makes computer chips. Sam is manager of the company's maintenance department. Because his maintenance technicians are so well trained in maintaining expensive and sensitive circuit board stamping equipment, Sam has been authorized to contract to perform maintenance for outside customers. In this company, the maintenance department is likely organized as
Answer:
Profit center
Explanation:
Proft center is simply a type or form of programs or services that is given (offered) within organization or a club operations that gives an additional revenue and profits to their bottom line product/services. It is also referred to as a type of strategic business unit.
Profit Centers are set up to Increase Revenue and Profitability by/usually offered for additional fee and less dependence on monthly dues
In the spirit of a SWOT analysis, a company’s strengths are defined somewhat relative to:_______
a. behavior of non-buyers.
b. competitors’ misfortunes.
c. other providers in the marketplace.
d. customer satisfaction levels.
Answer:
c. other providers in the marketplace.
Explanation:
SWOT analysis can be defined as a strategic technique which is used by organizations to plan through the identification of its strength, weakness, opportunities and threats in relation to its business.
The internal environment of an organization such as employees, policies, management and culture offers an organization strength.
In the spirit of a SWOT analysis, a company’s strengths are defined somewhat relative to other providers in the marketplace. This ultimately implies that, when its close rivals in the same industry or market are not coordinated, organized, effective and efficient in their provisions of goods and services, it gives the organization a competitive advantage (strength) over them. Thus, an organization should always ensure that it uses the weakness of other providers in the marketplace as its own strength to achieve excellence.
A customer comes into the store to return a gallon of milk. She says she bought it earlier today, but the due date on the gallon expired yesterday. She asks to exchange it for another gallon of milk, but your manager is not in the store right now. What do you do? A Ask the customer to bring the milk back tomorrow when your manager will be in the store. B Apologize for the expired milk and offer to replace it. C Apologize, let her know that you can't accept the milk once it has expired, but the milk should still be good for a few more days. D Provide her with a new gallon of milk, but let her know that she needs to check the dates on the milk the next time she makes a purchase.
Answer:
B Apologize for the expired milk and offer to replace it.
Explanation:
Option B is the only reasonable action in this case in order to preserve customer loyalty. However, the store should be able to identify expired products before customers are allowed to buy them. Keeping products that are nearing their expiration date in store shows some lack of reasonable care. It also questions the stocking system of the store. For goods that have expiration dates, it is better to ensure that they are sold on the first-in, first-out basis.
A family-owned used bookstore across the street from a major university campus wants to identify the various segments in its market. What approaches might the store owner use to segment this market
Answer: Market segmentation
Explanation:
Here, the owner has segmented the customers on the basis of the existing and potential ones into sub-groups. This grouping and segmentation can help the owner to identify the customers better. This can help in understanding the shared characteristics and choices of customers better. This can further help in making profit on selling of books.
. If for competitive reasons, Washburn eventually must move all its production back to Asia, (a) which specific costs might be lowered and (b) what additional fixed and variable costs might it expect to incur
Answer:
This is a really long question, and most of it is missing. But after reading all the question, Washburn Guitars can actually save a considerable amount of money if they move to China or some other Asian countries.
a) The largest savings will result from lower rent and taxes, and labor expenses (less time required per unit).
b) The costs that might increase are management and quality control costs. Working in different countries will always result in higher administrative costs, and at least at the beginning the company should pay special attention to quality.
It takes precisely 3 cooks, C, and 5 units of food, F. to produce a single Five course meal. The price of a cook is 100 and the price of food is 50 per unit of food. Determine both the production function and the cost function.
Answer:
the production function always follows this pattern: Q = K + L
Q = quantity of output
K = quantity of capital
L = quantity of labor
in this case, since you need 3 cooks and 5 units of food to prepare 5 meals, the production function is:
M = 3C + 5F
where;
M = five course meal
C = cooks
F = units of food
the cost function always follows this pattern: C = FC + VC
C = total production cost
FC = fixed costs
VC = variable costs
since the price of a cook is 100 per cook and the price of food is 50 per food unit, the production cost function is:
M = 100L + 50F
where:
C = production cost of a course meal
L = number of cooks required
F = units of food required
C = ($100 x 3) + ($50 x 5) = $550
in this case we were only given variable costs, so this cost function does not include any fixed costs.
Harvey is a self-employed accountant with earned income from the business of $120,000 (after the deduction for one-half of his self-employment tax). He uses a defined contribution Keogh plan. What is the maximum amount Harvey can contribute to his retirement plan in 202
Answer:
$24,000
Explanation:
It is mentioned in the question that, Harley who is a self employed accountant has an income from his business of 1,20,000 dollar, which is after the one half deduction of his self employment tax.
He uses a Keogh contribution plan.
Now, due to reducing of the earned income that is base by a one-half of his self-employment tax and by the contribution itself, the permissible 25% contribution is reduced to an effective of 20% contribution rate.
So, 20% of $120,000 or $53,000 whichever is LESS
20% of $120,000 = $24,000
Hence, the maximum amount Harvey contributes to his retirement plan is $24,000.
g The type of corporation that generally has the highest number of shareholders is the Group of answer choices nonprofit corporation. professional corporation. public corporation. publicly held corporation.
Answer:
publicly held corporation.
Explanation:
The publicly held corporation refer to those corporations that is listed on the stock exchange markets also the majority of the stock owned would be taken by dispersed population and for majority stakes there is no individual
Therefore the type of corporation that has the highest number of shareholders is a publicly held corporation and the same is to be considered
Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a ($18,000) loss; however, Michelle has sufficient tax basis and at-risk amounts to absorb the loss. If Michelle has $121,000 of salary, $10,600 of long-term capital gains, $3,600 of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct
Answer:
The loss that could be deducted is $7,400
Explanation:
The computation of the amount of loss deducted is shown below:
Total income of Michelle is
= $121,000 + $10,600 + $3,600
= $135,200
Exemption amount is $25,000
Modified gross income i.e. adjusted is $100,000
The phase amount would be
= ($135,200 - $100,000) × 0.5
= $17,600
So, the loss would be
= $25,000 - $17,600
= $7,400
Hence, the loss that could be deducted is $7,400
You receive an email from a firm proposing the following business deal. The firm will send you $1,000 now, and in exchange you will send it $1,100 in one year. You will just break-even if the annual interest rate is _____%.
Answer: 10%
Explanation:
If the annual interest rate is 10%, you will breakeven because you would have made just enough to send the firm the $1,100 that you are required to send in a year.
= 1,000 * ( 1 + 10%)
= $1,100
