Answer:
1.17%
Explanation:
Expected return is 15.1 %
Risk free rate is 5.95 %
Market risk premium is 7.8%
Therefore the beta can be calculated as follows
Expected return= risk free rate + (beta×market risk premium)
15.1%= 5.95% + (beta × 7.8%)
15.1%-5.95%= 7.8% beta
9.15%= 7.8% beta
beta= 9.15%/7.8%
beta= 1.17%
4. Problems and Applications Q4 As the chapter states, GDP does not include the value of used goods that are resold. True or False: Including the value of used goods that are resold would make GDP a less informative measure of economic well-being.
Answer: True
Explanation:
GDP encompasses the products and services that are manufactured in the current year. The value of the products that are resold does not include it. The explanation is that in previous years they have already been counted. It would overestimate the GDP and would not reflect true economic well-being by including such transactions.
happy new year’s eve and Merry christmas everyone I hope y’all got excellent presents
As illustrated in the opening case for Dess textbook Chapter 10, Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner, because it ________________________ design and manufacturing. Group of answer choices on-shored internalized outsourced internationalized
Answer:
c.
Explanation:
It is a very prestigious project for the company which involved suppliers and manufactures from many countries to work for the project. Though the project started with the aim of low budget, it went high by the end because of this outsourcing and large number of people working on the project.
A context analysis helps to separate a system from its surroundings/environment; it helps to highlight relevant subsystems, elements, and parts that affect a system whole and its requirements. Two of the processes need to establish the system context are the system border process and the _____. diagramming process fight or flight process socialization process context border process.
Answer: context border process
Explanation: the context border process and the system border process are the two processes needed to establish the system context which helps to separate the system from its environment and to highlight particularly, those parts which are relevant and affect the requirements of the system.
Where the system border helps determine which aspects will be covered by the new system (the systems scope) and which aspects are part of the environment, the context border determines the border of the context to the irrelevant reality by analysing which parts of the environment have a relationship with the new system such as external systems, existing processes, events and actions or legal definitions, stakeholders etc.
The adjusted tabular summary of Warbocks Corporation at December 31, 2022 includes the following accounts: Retained Earnings $12,600; Dividends $5,000; Service Revenue $30,000; Salaries and Wages Expense $15,000; Insurance Expense $2,000; Rent Expense $4,500; Supplies Expense $500; and Depreciation Expense $1,000. Prepare a retained earnings statement for the year.
Answer:
First calculate Net Income;
= Service revenue - Salaries and Wages Expense - Insurance Expense - Rent Expense - Supplies Expense - Depreciation Expense
= 30,000 - 15,000 - 2,000 - 4,500 - 500 - 1,000
= $7,000
Statement of Retained Earnings
Beginning Balance $12,600
Add: Net Income $ 7,000
$19,600
Less: Dividends $5,000
Closing Balance $14,600
Phillips Equipment has 75,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 7.5%. The company also has 750,000 shares of 6% preferred stock and 2.5 million shares of common stock outstanding. The preferred stock sells for $64 a share. The common stock has a beta of 1.21 and sells for $44 a share. The U.S. Treasury bill is yielding 2.3% and the return on the market is 11.2%. The corporate tax rate is 34%. What is the firm's weighted average cost of capital?
Answer: 9.69%
Explanation:
Cost of debt = Yield * ( 1 - Tax)
= 7.5% * (1 - 34%)
= 4.95%
Cost of Preferred stock = Dividend/ Price
= 6/64
= 9.38%
Cost of Equity = risk free rate + beta * (market return - risk free rate)
= 2.3% + 1.21 * (11.2% - 2.3%)
= 13.07%
Total values of capital;
Debt = 75,000 * 1,000 par value = $75,000,000
Preferred stock = 750,000 * 64 = $48,000,000
Common stock = 2,500,000 * 44 = $110,000,000
Total = 75,000,000 + 48,000,000 + 110,000,000
= $233,000,000
WACC = (75,000,000/ 233,000,000 * 4.95%) + (48,000,000/233,000,000 * 9.38%) + (110,000,000/233,000,000 * 13.07%)
= 1.59% + 1.93% + 6.17%
= 9.69%
which of the following is true of the cash method of accounting?
A. It's only available to C corporations with sales over $5 million.
B. A sale is entered into the books when the invoice is generated.
C. You pay taxes on revenue before you actually receive it.
D. Recording of income can be put off until the next tax year when the income is actually received.
Answer:
D. Recording of income can be put off until the next tax year when the income is actually received.
Explanation:
The cash accounting system is one of the two accounting in use. The other one being the accrual method.
In cash accounting, revenues and expenses are recognized or recorded only when money changes hands. It means that transactions will be recognized in the period when the money is received or paid. Revenue will be recorded when money is received, and expenses will be recognized when payments are made. Practically, transactions from a previous period can be recognized in the following year when money is received.
Answer: Recording of income can be put off until the next tax year when the income is actually received.
Explanation: took the test
Morgan Company issues 9%, 20-year bonds with a par value of $750,000 that pay interest semiannually. The amount paid to the bondholders for each semiannual interest payment is.
Answer: $33750
Explanation:
First and foremost, we have to calculate the interest paid for the year which will be:
= $750000 X 9%
= $750000 × 0.09
= $ 67500
Therefore, the semi annual payment will them be calculated as:
= $67500 / 2
= $33750
Fortune Inc. has budgeted sales for June and July at $680,000 and $720,000, respectively. Sales are 80% credit, of which 70% is collected in the month of sale and 30% is collected in the following month. What is the accounts receivable balance on July 31?
Answer: $172,800
Explanation:
Accounts receivable balance records those who still owe the company.
July accounts receivable balance = 30% of credit sales in July.
Credit sales in July = 80% * 720,000
= $576,000
Accounts receivable at end of July = 576,000 * 30%
= $172,800
A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now after the next dividend has been paid
Answer:
$86.20
Explanation:
Total return from stock = Current price * expected return
Total return from stock = 80*14%
Total return from stock = $11.20
Dividend already realized = $5
Capital gain = $11.20 - $5
Capital gain = $6.20
End of one year price = Beginning price + capital gain
End of one year price = $80 + $6.20
End of one year price = $86.20
Therefore, at the end of one year price is $86.20
Speaking effectively, writing concisely, and listening attentively are all examples of the transferable skill of
communication
human relations
organization, management, and leadership
research and planning
Answer: communication
Answer:
Its communication and i am 100% possitive ive took the test.
Explanation:
You make an initial deposit of $46.82 in a checking account. In addition, you deposit your paycheck of $78.36 at the end of the week. You write checks for $16.93, $26.25, $9.27, and $12.58. Your bank service charge is $6.95 per month. How much will you have in your account at the end of the month?
Answer:
The amount you will have in your account at the end of the month is $53.20.
Explanation:
This can be calculated using the following simple formula:
Month end account balance = Initial deposit + Additional deposit - Sum of checks written - Bank service charge per month ................ (1)
Where;
Initial deposit = $46.82
Additional deposit = $78.36
Sum of checks written = $16.93 + $26.25 + $9.27 + $12.58 = $65.03
Bank service charge per month = $6.95
Month end account balance = $46.82 + $78.36 - $65.03 - $6.95
Month end account balance = $53.20
Therefore, the amount you will have in your account at the end of the month is $53.20.
Suppose demand is given by teh equation PD= 100-2QD and supply is given by the equation PS=50+ 3Qs. Price is measured in dollars and quantity is measured in units, What is the deadweight loss of $20?
a. 40
b. 60
c. 20
d. 80
Answer:
a. $40
Explanation:
Question "What is the deadweight loss of $20 tax"
Demand is given by PD = 100 - 2QD
supply is given by PS = 50 + 3QS
For equilibrium, Demand = Supply
100 - 2QD = 50 + 3QS
3QS + 2QD = 100 - 50
5Q= 50
Q = 10 units (Equilibrium quantity)
From PD = 100 - 2QD
P = 100 - (2*10)
P= $80 (equilibrium price)
With a tax of $20, the new supply curve is (PS - 20) = 50 + 3QS
PS = 550 + 20 + 3QS
PS = 70 + 3QS
Then, the new equilibrium is Demand = New supply
100-2Q = 70+3Q
3Q + 2Q = 100 - 70
5Q = 30
Q = 6 units (New equilibrium quantity)
P = = 70+3Q
P = 70 + (3*6) = $88 (New equilibrium price)
P = $88
Now, at the new equilibrium quantity (6 units), Price on the initial supply curve, PS = 50+(3*6) = $68.
Then, the deadweight loss = 1/2* (Equilibrium quantity - New equilibrium quantity) * (New equilibrium price - Price on initial supply curve at new equilibrium quantity)
Deadweight loss = 1/2*(10-6)*(88-68)
Deadweight loss = 1/2*4*20
Deadweight loss = $40
Koovuq131 is a division of a large corporation. Data concerning the most recent period appears below:
Sales $18,120,000
Net operating income $1,177,800
Average operating assets $4,450,000
What is Koovuq131's margin (closest to)?
Answer:
0.065
Explanation:
Koovuq131 has sales of $18,120,000
The net operating income is $1,177,800
The average operating assets is $4,450,000
Therefore the margin can be calculated as follows
= Net operating income/sales
= 1,177,800/18,120,000
= 0.065
Hence the margin is closest to 0.065
Vaughn Manufacturing has the following items at year-end:
Cash in bank $36200
Petty cash 300
Short-term paper with maturity of 2 months 6000
Postdated checks 1250
Vaughn should report cash and cash equivalents of:______
Answer:
$42,500
Explanation:
Calculation for what Vaughn should report cash and cash equivalents
CASH AND CASH EQUIVALENTS
Cash in bank $36,200
Petty cash $300
Short-term paper with maturity of 2 months $6,000
Cash and cash equivalents $42,500
Therefore Vaughn should report cash and cash equivalents of:$42,500
An investment project has annual cash inflows of $4,600, $3,700, $4,900, and $4,100, for the next four years, respectively. The discount rate is 13 percent. What is the discounted payback period for these cash flows if the initial cost is $5,500
Answer:
the discount payback period is 1.49 year
Explanation:
The computation of the discount payback period is as follows;
= 1 year + ($5,500 - $4,078.80) ÷ ($2,897.64)
= 1 year + ($1,421.20) ÷ ($2,897.64)
= 1 year + 0.49 years
= 1.49 year
Hence, the discount payback period is 1.49 year
The working note regarding the cash flows are to be shown in the attachment
A young college student was making a purchase at her local department store. The clerk suggested that she would get an additional 15% off the purchase price if she would sign up for a store credit card. Which of the following statements discusses how a personal finance expert might view this incentive?
a. Reports indicate that students are particularly vulnerable to these tactics. If you fail to pay off the balance, you end up paying much more than the original purchase price for your items.
b. An expert would advise you that the more credit cards you hold, the better your credit rating will be with the three major credit rating companies. Actuaries average the opinions of each credit card company to determine your score.
c. A personal finance expert would encourage her to take the incentive, particularly if interest rates on the card remain below 20%.
d. A personal finance expert would advise a college student to always take this incentive seriously because it is like trade credit for businesses
Answer: a. Reports indicate that students are particularly vulnerable to these tactics. If you fail to pay off the balance, you end up paying much more than the original purchase price for your items.
Explanation:
Even though financial advice is usually tailormade for the individual, a financial expert would most likely give this advice to a student because students are indeed vulnerable to such tactics.
They would be more prone to spend more in the store as a result of the credit card and this will lead to them being unable to pay off balances which will then lead to them paying much more than the original price they would have paid.
Communication that takes place among members of work groups at the same level is known as ________ communication.A) grapevineB) downwardC) upwardD) diagonalE) lateral
Answer:
E) Lateral
Explanation:
Lateral communication ican be regarded as one of the type of communication that involves the imparting as well as exchange of information/ideas among individual in a particular community. This community could be unit of organization that are at
same hierarchical level. It should be noted that the Communication that takes place among members of work groups at the same level is known as Lateral communication
A cartel is an example of: a price leadership. b price extortion. c tacit collusion. d overt collusion. e price discrimination.
Answer:
d overt collusion.
Explanation:
Overt collusion occurs when a group of companies collude to increase price of a commodity in a given market.
Competing firms secretly come together to gain control in a market in a similar way to a monopoly.
Overt collusion is a formal agreement between the companies involved.
This practice is considered illegal in the United Kingdom and European Union
g in the long run why will investors keep their money invested in the firm even when profit is zero
Answer: Economic profit covers implicit costs as well.
Explanation:
Economic profit and Accounting profits are two different things. Economic profit accounts for both explicit costs (operating costs) and implicit costs (opportunity costs) while Accounting profit accounts for only explicit costs.
When economic profit is zero therefore, it means that the firm is still covering the implicit costs so they will not be enticed to divest because their opportunity costs are being taken care.
It would therefore be wise to stay invested as this shows that this alternative is the best out of the other alternatives.
Saying that Risk and Return go hand in hand, tells us that you ________ as the length of the investment horizon ________." A. can afford to take on additional risk; increases B. can afford to take on additional risk; decreases C. should never take on additional risk; increases D. should always take on additional risk; decreases
Answer:
A. can afford to take on additional risk; increases
Explanation:
Saying that Risk and Return go hand in hand, tells us that you can afford to take additional risk as the length of the investment horizon increases. Increasing the length of the investment horizon increases the ability to take on additional risk because in the long run the investment pays off while it may be choppy in the short time horizon.
Vaughn Manufacturing has the following items at year-end:
Cash in bank $36200
Petty cash 300
Short-term paper with maturity of 2 months 6000
Postdated checks 1250
Vaughn should report cash and cash equivalents of:______
Answer:
$37,100
Explanation:
Calculation for what Vaughn should report as cash and cash equivalents
Cash in bank $36,200
Petty cash 300
Short-term paper with maturity of 2 months 600
Cash and cash equivalents $37,100
Therefore Vaughn should report cash and cash equivalents of:$37,100
An investor pays $63.00 per share for stock in a given REIT. The REIT declares a dividend of $4.00 per share and has an EPS of $2.37. Considering the recovery of capital (ROC), what is the new cost basis of the stock acquired by the investor
Answer:
$61.37
Explanation:
Calculation for the new cost basis of the stock acquired by the investor
Using this formula
New cost basis=Stock-Dividend+EPS
Let plug in the formula
New cost basis=$63.00-$4.00+$2.37
New cost basis=$61.37
Therefore the new cost basis of the stock acquired by the investor will be $61.37
Barbara's employer offers health coverage to its employees. However, Barbara feels it is unaffordable and wants to apply for a health insurance premium tax credit. In order for the coverage to be deemed unaffordable in 2020, Barbara's self-only premium must exceed ___% of her household income.
Answer:
9.83%
Explanation:
If the health insurance premium represents 9.83% of Barbara's income or less, it is considered affordable coverage. Only if it exceeds the 9.83% threshold, will Barbara be able to request a health insurance premium tax credit. Theoretically, if Barbara's health insurance was purchased in the Health Insurance Marketplace, the tax credit should be automatic and her premium should be lowered so that it can become affordable.
A bank is considering making a loan to Ron Weasley. Ron has a gross salary per month of $4,000 but has take-home pay of $2,800 per month. What aspect of evaluating a consumer loan application is this fact most concerned with
Answer: b. Income level
Explanation:
One aspect of loan applications considered by a bank is the income level of the applicant. Here the bank looks at the possibility of the customer paying back the loan based on their income level.
The basic factor looked at here is the income of the consumer as well as their take-home pay as the latter is where the loan repayment will come from.
Suppose that inflation is 2%. According to the data given in the article, what is the new real rate of interest on a 30-year mortgage
Answer:
1.56%
Explanation:
Note: The full question is attached as picture below
Real rate is the excess of nominal rate over inflation rate. (i.e Nominal rate - Inflation rate). So, the new real rate of interest on the 30-year mortgage = Nominal rate - Inflation rate = 3.56% - 2% = 1.56%
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 7,800 hours.
Variable costs:
Indirect factory wages $30,240
Power and light 20,160
Indirect materials 16,800
Total variable cost $67,200
Fixed costs:
Supervisory salaries $20,000
Depreciation of plant and equipment 36,200
Insurance and property taxes 15,200
Total fixed cost 71,400
Total factory overhead cost $138,600
During May, the department operated at 8,860 standard hours, and the factory overhead costs incurred were indirect factory wages, $32,400; power and light, $21,000; indirect materials, $18,250; supervisory salaries, $20,000; depreciation of plant and equipment, $36,200; and insurance and property taxes, $15,200.
Required:
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,860 hours.
Answer:
Tiger Equipment Inc.
Welding Department
Factory Overhead Cost Variance Report for May:
Budget
Normal Flexible Actual Variance
Capacity (hours) = 7,800 8,860 8,860 0
Variable costs:
Indirect factory wages $30,240 $34,350 $32,400 $1,950 F
Power and light 20,160 22,900 21,000 1,900 F
Indirect materials 16,800 19,083 18,250 833 F
Total variable cost $67,200 $76,333 $71,650 $4,683 F
Fixed costs:
Supervisory salaries $20,000 $20,000 $20,000 $0
Depreciation of plant & equipment 36,200 36,200 36,200 0
Insurance and property taxes 15,200 15,200 15,200 0
Total fixed cost 71,400 71,400 $71,400 $0
Total factory overhead cost $138,600 $147,733 $143,050 $4,683 F
Explanation:
a) Data and Calculations:
Normal
Capacity = 7,800 hours
Variable costs:
Indirect factory wages $30,240
Power and light 20,160
Indirect materials 16,800
Total variable cost $67,200
Fixed costs:
Supervisory salaries $20,000
Depreciation of plant & equipment 36,200
Insurance and property taxes 15,200
Total fixed cost 71,400
Total factory overhead cost $138,600
Flexible costs:
Indirect factory wages $30,240 /7,800 * 8,860 = $34,350
Power and light 20,160 /7,800 * 8,860 = $ 22,900
Indirect materials 16,800 /7,800 * 8,860 = $19,083
Budget
Normal Flexible Actual Variance
Capacity (hours) = 7,800 8,860 8,860 0
Variable costs:
Indirect factory wages $30,240 $34,350 $32,400 $1,950 F
Power and light 20,160 22,900 21,000 1,900 F
Indirect materials 16,800 19,083 18,250 833 F
Total variable cost $67,200 $76,333 $71,650 $4,683 F
Fixed costs:
Supervisory salaries $20,000 $20,000 $20,000 $0
Depreciation of plant & equipment 36,200 36,200 36,200 0
Insurance and property taxes 15,200 15,200 15,200 0
Total fixed cost 71,400 71,400 $71,400 $0
Total factory overhead cost $138,600 $147,733 $143,050 $4,683 F
Geoffrey is an employee of Adreez Inc. What percentage of his gross pay will the company deduct for the Medicare tax?
A.
1.45 percent
B.
2 percent
C.
2.45 percent
D.
3 percent
E.
3.5 percent
Answer:
A. 1.45 percent
Explanation:
Medicare is a federal health insurance program for the most vulnerable in society. It mostly caters to the elderly ( 65 years and above) and people living with disabilities. The federal government set the medicare tax rate. The current rate is 1.45 percent to the employee and 1.45 percent to the employer.
Which consequences can victims of identity theft face?
Check all that apply.
1. difficulty getting a loan or credit card
2. an increase in debt
3. the loss of a job
4. difficulty keeping assets
5. a loss of money
6. difficulty landing a new job
Answer:
The correct answers would be
1. Difficulty getting a loan or credit card
2. An increase in debt
4. Difficulty keeping assets
5. Loss of money
Explanation:
Hope this helps! Have a Happy New Year!
Divine Apparel has 2,000 shares of common stock outstanding. On October 1, the company declares a $0.25 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. Record all transactions on the appropriate dates for cash dividends.
a. Record the declaration of cash dividends.
b. Record the entry on date of record.
c. Record the payment of cash dividends
Answer and Explanation:
The journal entries are as follows;
On October 1
Dividend Declared Dr $500 (2,000 shares × $0.25)
To Dividend payable $500
(To record the cash dividend declaration)
Here the dividend declared is debited as it reduced the shareholder equity and credited the dividend payable as it increased the liability
On October 15
No journal entry is required
On October 31
Dividend payable Dr $500
To Cash $500
(to record the cash dividend payment)
The dividend payable is debited as it decreased the liabilities and credited the cash as it also decreased the assets
