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%
Premium priced products like those offered by Louis Vuitton are not likely to be distributed _______.
Answer:
b. intensively
Explanation:
Louis Vuitton products mostly deal with the suitcases, shoes, watches, jewelleries, sunglasses, etc. Their products would be sold via departments i.e. rental, online websites, stores, etc
So as per the given situation, their premium and pricing products could not be allocated intensively as for many people it cant be afforded due to the high prices.
So the correct option is b.
Suppose in the year 2019, people spent $500 on durable goods, $600 on non-durable goods, and $900 on services. During the same year, the government paid a total of $600 to soldiers and police officers, spent $400 building missiles and highways, spent $200 total on welfare and unemployment benefits and $800 on social security payments. During this year the United States had imports totaling up to $600 while exporting $200 worth of goods and services. Finally, firms spent $600 on machines that will increase their productive capacity and they raised the amount of goods in their inventories from $200 at the beginning of the year to $500 at the end of the year. Please use this information to calculate total GDP for 2017.a. $2,300.b. $2,800.c. $3,200.d. $2,700.
Answer:
nba
Explanation:
nba
Suppose that market demand is Q = 660 – 12P and marginal cost is MC = 5. The consumer surplus in a perfectly competitive market is $___________, while the consumer surplus in a monopoly market is $ __________.
a. 5,000; 3,750
b. 15,000; 7,500
c. 15,000; 3,750
d. 0; 7,500
Answer: 15000; 3750
Explanation:
From the question,
Q = 660 – 12P
MC = 5
The consumer surplus in a perfectly competitive market will be:
P = MC
Therefore, P = 5
Q = 660 - 12P = 660 - 12(5) = 660 - 60 = 600
Consumer surplus = 1/2 × (55 - 5) (600)
= 1/2 × 50 × 600
= 15,000
For monopoly, MR = MC
Total Revenue = P × Q
Since Q= 660 - 12P
P = (660 - Q)/12
TR = P × Q
= (660 - Q)/12 × Q
= (660Q- Q²)/12 × Q
MR = (660 - 2Q)/12
MR = MC
(660 - 2Q)/12 = 5
(660 - 2Q) = 5 × 12
660 - 2Q = 60
2Q = 660 - 60
2Q = 600
Q = 600/2
Q= 300
Since P =(660 - Q)/12
= (660 - 300)/12
= 360/12
= 30
Consumer surplus = 1/2 × (55 - 30) (30)
= 1/2 × 25 × 300
= 3750
Therefore, the answer is 15000; 3750
The only thing a firm can and should do to balance the conflicting demands of being agile in a dynamic environment is to design systems and processes that can identify, assess, and develop technology based opportunities.
a. True
b. False
Answer:
b. False
Explanation:
By saying that's the "only thing a firm can and should do" makes the statement untrue because, in a scenario where there is conflicting demand, the firm may employ other methods.
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year:
Beginning Inventory Ending Inventory
Finished goods (units) 27,000 77,000
Raw material (grams) 57,000 47,000
Each unit of finished goods requires 3 grams of raw material. If the company plans to sell 140,000 units during the year, how much of the raw material should the company purchase during the year?
Answer:
560,000
Explanation:
The computation of the raw material purchased during the year is as follows:
Before that following calculations need to be done
Change in inventory = Ending Inventory - Begining Inventory
= 77,000 - 27,000
= 50,000
Now total units produced is
= Units sold + Increase in Inventory
= 140,000 + 50,000
= 190,000
To produce 190,000 units of finished goods the raw material needed is
= 3 grams × 190,000
= 570,000 grams
Now
Change in raw material = Ending raw material - Begining raw material
= 47,000 - 57,000
= -10,000
So,
Purchase of raw material = Raw material requirement - Decrease in raw material
= 570,000 - 10,000
= 560,000
A corporation has 25,000 shares of $10 par stock outstanding. How many shares would be outstanding after a 5-for-1 stock split
Answer:
125,000
Explanation:
When a 5-for-1 stock split takes place, for every outstanding stock, 4 more are created. In this case, there are 25,000 outstanding stocks, which means that 25,000 x 4 = 100,000 more will be issued. In total, 25,000 + 100,000 = 125,000 stocks will be outstanding after the stock split.
A company has 46,000 shares of common stock outstanding. The stockholders' equity applicable to common shares is $554,300, and the par value per common share is $10. The book value per share is:
Multiple Choice
$0.08.
$2.05.
$55.43.
$12.05.
$10.00.
Answer:
$10.00
Explanation:
Under the modern traditional theory, the sovereign may nationalize foreign-owned property only where: a. it is for a public purpose. b. the foreign firm that owned the property was operating it unprofitably. c. a communist government takes over the country. d. the foreign firm has continuously violated the laws of the host country.
Answer: a. it is for a public purpose.
Explanation:
According to the Modern Traditional theory on compensation which deals with the seizure of foreign-owned property by the government of the nation in which the property is located, the sovereign authorities may nationalize foreign-owned property if it is deemed to be for public use.
If the government has shown that nationalization is for the good of the nation, the theory espouses that it is allowed. They would however have to provide adequate compensation to those whom the property was seized from.
the sales associate sherri receives an offer to purchase a listed property which is accompanied by a post-dated check, what should she do?
Answer: Immediately give the check to her employee broker
Explanation:
A broker is a person or firm that works between an investor and a stock exchange as an intermediary,
On behalf of a customer, discount brokers conduct transactions, but usually don't offer trading advice. Execution services as well as personalized investment advice and strategies are offered by full-service brokers.
Suppose a popular band decides to hold a free concert in its hometown. Admission is available on a first-come, first-served basis. This concert is an example of:
Answer: Private good
Explanation:
The main feature of a private good is rivalry and excludabilty. For a private good, when a consumer or when someone consumers or purchases the product, this will privemt others from enjoying such good.
Since the admission of the concert is available on a first-come, first-served basis, Thai means only those that quickly come will benefit while others will be excluded.
This is a private good.
Doug's Boat Shop, Inc. reports operating income of $260,000 and interest expense of $31,200. The average common stockholders' equity during the year was $50,000. The beginning assets balance is $115,000 and ending assets balance is $180,000. What is the leverage ratio
Answer:
2.95
Explanation:
Given that;
Beginning assets = $115,000
Ending assets = $180,000
Operating income = $260,000
Interest expense = $31,200
Average common stockholder equity = $50,000
Average total assets ;
= (Beginning assets + Ending assets) ÷ 2
= ($115,000 + $180,000) ÷ 2
= $147,500
Therefore,
Leverage ratio = Average total assets ÷ Average common stockholder equity
Leverage ratio = $147,500 ÷ $50,000
Leverage ratio = 2.95
You own a stock portfolio invested 25 percent in Stock Q, 20 percent in Stock R, 10 percent in Stock S, and 45 percent in Stock T. The betas for these four stocks are 1.32, 1.26, 1.52, and 1.06, respectively. What is the portfolio beta?
Answer: 1.211
Explanation:
From the question, we are informed that an individual own a stock portfolio invested 25 percent in Stock Q, 20 percent in Stock R, 10 percent in Stock S, and 45 percent in Stock T and that the betas for these four stocks are 1.32, 1.26, 1.52, and 1.06, respectively.
The portfolio beta will be calculated as:
= (shares of Q × Beta of Q) + (shares of R × Beta R) + (shares of S × Beta S) + (shares of R * Beta T))/ Total Shares
=(25 × 1.32) + (20 × 1.26) + (10 × 1.52) + (45 × 1.06)/100
= (33 + 25.2 + 15.2 + 47.7) / 100
= 121.1/100
= 1.211
If the Federal Reserve lowers the target federal funds rate,
a. liquidity in the banking system is increased
b. the discount rate rises
c. securities prices fall
d. required reserves are decreased
Answer:
a. liquidity in the banking system is increased
Explanation:
Federal fund rate is the rate of interest where a depository institution lends the money that is maintained at the federal reserve for other depository institution. It would be applied to the creditworthy institution who is very creditworthy for the loans i.e. overnight
Now in the case when the federal reserve reduce the fund rate of target federal so the possibility of borrowing would be cheaper that rise the liquidity
Hence, the option a is correct
A production possibilities frontier can shift outward if
Answer:
A production possibility frontier (PPF) illustrates the combinations of output of two products that a country can supply using all of their available factor inputs in an efficient way. One way the PPF can shift outwards is if there is an increase in the active labour supply
What is an advantage that a sales force consisting of local nationals is likely to have over a sales force of expatriates
Answer:
Knowledge of customers
Explanation:
In simple words, the main advantage of having local individuals in sales force is their knowledge of the culture that the foreigners do not possess. This gives them an upper hand of knowing the needs and wants of the customers. A local individuals knows what new product or modifications to an existing products can lead to better sales in a country.
Jane has discovered that she is bored and frustrated working for others. She wants to open a business where she alone will have control as the single owner and she would experience the least interference from government regulation. Which form of business would best meet her needs?
Answer:
sole proprietorship
Explanation:
By far the most common type of business in the US is the sole proprietorship. Basically, Jane will be her own boss. She will be responsible and liable for all the business's obligations since a sole proprietorship is considered a pass through entity. That means that it doesn't exist by itself, and it is not taxed directly. Jane must report all the income and expenses from her business in her annual tax report.
Sally is a channel manager for the Carolina Bee Company, which offers bee
pollination services to orchard growers and farmers. The company acquired a
smaller bee business and is integrating it into the company's current
distribution channel process. Which areas of the distribution flow are critical
for Sally to address with this new business integration?
O product, negotiation, ownership, information, and promotion
o service, negotiation, information, promotion, and profit
O product, ownership, information, cash and redundancy
Previous
Next
Answer:
it might be B but I'm not sure
Mcgahen Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,080 patient-visits and the actual level of activity was 990 patient-visits. The clinic's director budgets for variable overhead costs of $3.30 per patient-visit and fixed overhead costs of $10,600 per month. The actual variable overhead cost last month was $3,380 and the actual fixed overhead cost was $8,780. In the clinic's flexible budget performance report for last month, what would have been the variance for the total overhead cost?
Answer:
$1,707 Favorable
Explanation:
The variance will be the difference between the planned budget and the actual costs.
Variable costs are budgeted at $3.30 per customer visit, and fixed costs are $10,600 per month. There were 990 customer visits.
The variable cost budget will be
=$3.30 x 990
=$3,267
Fixed budget is $10,600
Total budget
= $10,600 + $3,267
=$13,867
the actual expenditure was
variable cost= $3,380
fixed costs=$8,780
total actual costs = $3,380 +$8,780
= $12,160
variance = $13,867 - $12,160
=$1,707
Based on the given information on Mcgahen medical clinic, the variance for the total overhead cost is -$1,707
How to calculate variance of the overhead costTo calculate the variance for the total overhead cost
First, get the flexible budget amount for variable overhead costs is:
Flexible budget amount for variable overhead costs = Budgeted variable overhead rate per patient-visit x Actual level of activity
= $3.30 x 990
= $3,267
The total flexible budget amount for overhead costs is:
Total flexible budget amount for overhead costs = Flexible budget amount for variable overhead costs + Fixed overhead costs
= $3,267 + $10,600
= $13,867
Now, calculate the variance for the total overhead cost:
Total overhead cost variance = Actual overhead costs - Total flexible budget amount for overhead costs
= ($3,380 + $8,780) - $13,867
= $12,160 - $13,867
= -$1,707
The negative value for the variance indicates that the actual overhead costs were lower than the expected flexible budget amount for overhead costs.
Specifically, the clinic spent $1,707 less on overhead costs than it had planned for based on its budgeted level of activity.
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A firm has $848 in inventory, $1,740 in fixed assets, $668 in accounts receivable, $416 in net working capital, and $231 in cash. What is the amount of current liabilities
Answer:
$1,331
Explanation:
With regards to the above information, we need to calculate first current assets.
Current assets = $848 in inventory + $668 in accounts receivable + $231 in cash
Current assets = $1,747
Therefore,
Current liabilities = Current assets - Net working capital
Current liabilities = $1,747 - $416
Current liabilities = $1,331
Cullumber Company bought equipment for $150000 on January 1, 2021. Cullumber estimated the useful life to be 5 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2022, Cullumber decides that the business will use the equipment for a total of 6 years. What is the revised depreciation expense for 2022?
a. $30000
b. $12000
c. $24000
d. $20000
Answer:
Annual depreciation 2022= $24,000
Explanation:
Giving the following information:
Purchase price= $150,000
Useful life= 5 years
Salvage value= $0
First, we need to calculate the annual depreciation for 2021:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (150,000 - 0) / 5
Annual depreciation= $30,000
Now, the revised depreciation:
Annual depreciation= (150,000 - 30,000) / 5
Annual depreciation= $24,000
We divide by 5 years because one year has passed.
Suppose your boss has asked you to write a letter to a client about a problem with their order. What format of writing would you use, and what kind of style would you use to write? Justify your response. :) please answer soon <3
Explanation:
If it is a letter written are put the adrees date and are put if it my boss are say dear boss
Suppose autonomous consumption is 550; there are no taxes; planned investment is 200; government spending is 250; exports are 100; and imports are 300. If equilibrium GDP is $8,000, what is the marginal propensity to consume?
Answer:
The marginal propensity to consume is 0.6
Explanation:
The computation of the marginal propensity to consume is shown below
Given that
Autonomous consumption = 550 = C
Planned investment = 200 = I
Government spending = 250 = G
Exports = 100 = X
Imports = 300 = M
Equilibrium level of GDP = $8,000 = Y
Now as we know that
The equation for aggregate demand is
Y = C + I + G +( X- M)
$8,000 = [550 + b × $8,000] + 200 + 250 + [100 - 300]
7,200 = 8,000b
b = 0.9
Hence, The marginal propensity to consume is 0.6
In the GMP partnership (to which Elan seeks admittance), the capital balances of Mary, Gene, and Pat, who share income in the ratio of 6:3:1, are
Mary $266,400
Gene 133,200
Pat 44,400
Required:
a. If no goodwill or bonus is recorded, how much must Elan invest for a one-third interest?
b. Prepare journal entry for the admission of Elan if she invests $80,000 for a 20 percent interest and goodwill is recorded.
c. Prepare journal entry for the admission of Elan if she invests $200,000 for a 20 percent interest. Total capital will be $600,000; the partners use the bonus method.
Answer:
A. $222,000
B. Dr Cash $80,000
Dr Goodwill $31,000
Cr Elan, Capital $111,000
C. Dr Cash $200,000
Cr Mary, Capital $40,080
Cr Gene, Capital $20,040
Cr Pat, Capital $6,680
Cr Elan, Capital $133,200
Explanation:
A. Calculation to determine how much must Elan invest for a one-third interest
FIRST STEP is to calculate the 2/3 of the total resulting capital balance of Mary, Gene, and Pat
Mary $266,400
Gene $133,200
Pat $44,400
Total $444,000
Total resulting capital balance=($444,000÷2/3)
Total resulting capital balance= $444,000 ÷ .666666
Total resulting capital balance=$ 666,000
SECOND STEP is to calculate how much must Elan invest for a one-third interest
Investment for one-third interest= $666,000 x 1/3
Investment for one-third interest=$666,000 x .333333
Investment for one-third interest=$221,999.9
Investment for one-third interest=$222,000 (Approximately)
Therefore how much must Elan invest for a one-third interest is $222,000
B. Preparation of the journal entry for the admission of Elan if she invests $80,000 for a 20 percent interest and goodwill is recorded.
First step is to calculate the goodwill Estimated amount to the new partner
Estimated total capital $ 555,000
[($444,000÷(100%-20%)]
Less Total net assets ($524,000)
($444,000 + $80,000)
Estimated goodwill to the new partner $31,000
($ 555,000-$524,000)
Preparation of the journal entry
Dr Cash $80,000
Dr Goodwill $31,000
Cr Elan, Capital $111,000
[(444,,000÷(100%-20%)*20%)]
=($444,000/80%*20%=$111,000)
C. Preparation of journal entry for the admission of Elan if she invests $200,000 for a 20 percent interest while the Total capital will be $600,000.
FIRST STEP
Amount Invested in partnership $ 20,000
Less New partner's book value ($133,200)
[($444,000 + $222,000) x .20]
Difference $66,800
($200,000-$133,200)
Preparation of the journal entry using ratio 6:3:1
Dr Cash $200,000
Cr Mary, Capital $40,080
($66,800 x .60)
Cr Gene, Capital $20,040
($66,800 x .30)
Cr Pat, Capital $6,680
($66,800 x .10)
Cr Elan, Capital $133,200
($666,000 x .20)
9) Is homelessness ever a good thing? What exactly is a home?
How are producers of commodities like clothing or food affected differently by globalization than consumers?
Answer:
Producers of commodities can be benefited or affected by globalization, while consumers are always benefited.
Explanation:
When domestic producers of a commodity produce at a higher price than the world price, they are affected because demand for their commodities fall, since consumers flock to the cheaper alternative: the commodities that are sold at the lower gold price.
The opposite occurs if domestic producers' prices are lower than the world price: they are benefited because consumers flock to them.
Consumers, on the other hand, are always benefited because they can opt to buy the commodities at the lowest price possible thanks to the increased specialization and competition that globalization brings to the market.
Producers of commodities can be affected by globalization, while on the other hand, consumers are always benefited.
Reason of clothing or food affected differently by globalization than consumers:At the time when domestic producers of a commodity generated at a higher price as compared to the overall price, so this should be impacted since the demand should decline. Now in the case when the price of the domestic producer should be less than the price so it will be benefited to the consumers.
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Jason works part-time at a grocery store after school. Jason has worked at the store for two years but still hasn't received a wage increase, even though newer employees have received raises. Jason has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Jason believes he is a victim of labor-market discrimination. Which of the following statements would strengthen Jason's case against his employer?
a. Jason works harder than the other employees
b. Jason may choose to do the talks other workers find undesirable
c. Jason's amiable personality allows him to work well with his co-worker
d. None of the above is correct.
Answer:
a. Jason works harder than the other employees
Explanation:
In this scenario, the statement that would strengthen Jason's case would be that he works harder than the other employees. If Jason is able to provide proof of this then that would indicate that effort and work-efficiency is not the reason for Jason not receiving a wage increase. This would mean that the reason is either personal or superficial which are all labor-market discrimination. Therefore, if Jason can prove that he does actually work harder than the other employees it would drastically increase his chances of winning the court case against his employer.
suppose that the city of springfield decides to regulate the company. if the city requires the monopoly to charge a normal profit price, the company will charge
Answer:
The monopolist company will charge $7 and sell 90 units.
Explanation:
If the city of Springfield regulates the monopolist, it will require the company to charge a price of $7, which is the normal profit price, according to the attached diagram. Ordinarily, the monopolist, if unregulated, may decide to increase the price it charges to $10. At such a price, there is no market equilibrium. But monopolists are better regulated for the market to achieve equilibrium in the market supply and demand of the goods or services.
Retained earnings: Multiple Choice Are never adjusted for anything other than net income or dividends. Represents the amount shareholders are guaranteed to receive upon company liquidation. Represent an amount of cash available to pay shareholders. Can only be appropriated by setting aside a cash fund. Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception. PrevQuestion 12 of 20 Total12 of 20Visit question map
Answer:
Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception
Explanation:
Retained earning is the balance of a company's profit that is retained after the distribution of dividend declared to it's shareholders.
A company that makes profit at the end of a reporting period usually make dividend declaration to its shareholder. The accumulation of these declarations are then taken out of the profit earned by the company. The balance when dividends declared(since it's inception) by the company is taken out from its profit, including any net losses is known as retained earning.
Data for Corporation and its two divisions, Domestic and Foreign, appear below:
Sales revenues, Domestic $541,000
Variable expenses, Domestic $314,000
Traceable fixed expenses, Domestic $64,800
Sales revenues, Foreign $418,300
Variable expenses, Foreign $238,700
Traceable fixed expenses, Foreign $54,200
In addition, common fixed expenses totaled $146,900 and were allocated as follows: $76,300 to the Domestic division and $70,600 to the Foreign division.
Required:
What is the segment margin for the Domestic division?
Answer:
the segment margin for the Domestic division is $162,200
Explanation:
The computation of the segment margin is as follows:
Segment Margin is
= Sales Revenues, Domestic - Variable Expenses, Domestic - Traceable Fixed Expenses, Domestic
= $541,000 - $314,000 - $64,800
= $162,200
Hence, the segment margin for the Domestic division is $162,200
A young worker is starting her first job at a research lab. She spent four years
in college getting a degree in biology to prepare her for the career she
wanted. Then, she applied for a job at the lab and negotiated a good salary
for herself after she was hired.
This young worker is most likely part of which economic system?
A. Command economy
B. Market economy
C. Mixed economy
D. Traditional economy
Answer: Market economy
Explanation: A P E X
