Answer:
Explanation:
Expected Return stock fund ([tex]E_{rs[/tex]) = 14% = 0.14, Expected Return bond fund ([tex]E_{rb[/tex]) = 5% = 0.05, Standard Deviation stock fund ([tex]\sigma_s[/tex]) = 34% = 0.34, Standard Deviation bond fund ([tex]\sigma_b[/tex]) = 28% = 0.28, correlation (ρ) between the fund returns is 0.0214
Describe other options teachers and their union have in resolving the impasse before opting for a strike? For each point illustrate your discussion with examples from Pacific island countries (PICs)
Answer: The other options include; dialogue; notification; peaceful protest and ultimatum.
Explanation: 1) Dialogue: Dialogue refers to a discussion between the two opposing parties. The teachers or their union may opt for a round table discussion to negotiate on the issue and its possible resolution.
2) Peaceful protest: A protest is an expression of strong opposition or disapproval of something. This is an option that can be exercised in a peaceful way by demonstration the grievance.
3) Notification or Ultimatum: Notification involves an information on when an option either expires or is to be exercised while an ultimatum is a demand that can be followed up with penalty or threat. This is also an option used by Pacific Island Countries in resolving the impasse before resulting to strike.
Henrie’s Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $102,990, including freight and installation. Henrie’s estimated the new machine would increase the company’s cash inflows, net of expenses, by $30,000 per year. The machine would have a five-year useful life and no salvage value.
Required:
a. Compute the machine's internal rate of return to the nearest whole percent.
b. Compute the machine's net present value. Use a discount rate of 16%. (Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)
c. Suppose that the new machine would increase the company's annual cash inflows, net of expenses, by only $41,000 per year. Under these conditions, compute the internal rate of return to the nearest whole percent.
Answer:
A. 14%
B. NPV = $-4,761.19
C. 28%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-102,990
Cash flow each year from year one to five = $30,000
IRR = 14%
The net present value is the present value of after tax cash flows from an investment less the amount invested.
Npv can be calculated using a financial calculator:
Cash flow in year 0 = $-102,990
Cash flow each year from year one to five = $30,000
I = 16%
NPV = $-4,761.19
IRR if cash flow is $41,000
Cash flow in year 0 = $-102,990
Cash flow each year from year one to five = $41,000
IRR = 28%
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Complete the following table by selecting the term that matches each definition on the left.
Definition
1. Market Labor Demand Curve
2. Market Labor Supply Curve
3. Marginal Product of Labor
4. Value of the Marginal Product of Labor
a. The additional revenue the firm receives from selling the output produced from an additional unit of labor.
b. The graphical representation of the relationship between the wage rate and the quantity of labor workers are willing to provide in a market.
c. The graphical representation of the relationship between the wage rate and the quantity of labor firms are willing to hire in a market.
d. The increase in the amount of output from an additional unit of labor.
Answer:
The correct answers are the following:
1 - C
2 - B
3 - D
4 - A
Explanation:
1 - C: The market labor demand curve is represented graphically by the relationship between the wage rate and the quantity of labor firms are willing to hire in a market due to the fact that the firms are the ones who are looking for workers and therefore they demand it.
2 - B: The market labor supply curve is represented graphically by the relationship between the wage rate and the quantity of labor that the workers are willing to provide due to the fact that they are the one who put their work in the market in order to be used.
3 - D: The marginal product of labor represents the increase in the amount of output from an additional unit of labor that an additional worker puts in the firm.
4 - A: The value of the marginal product of labor comprehends the additional revenue the firm receives from selling the output produced from and additional unit of labor that an additional worker put in the firm.
During step 3 of activity-based costing, activity overhead cost pool rates are used to assign overhead costs to final cost objects. Proper determination of activity rates depends on all of the following: proper calculation of total overhead costs proper assignment of costs to cost objects proper determination of factors which drive costs proper measurement of activities Rate your confidence to submit your answer.
Answer:
HEY
Explanation:
A person has a poor credit score due mainly to the amount of debt on credit card and instalment loans. How could the person improve his score.
Answer: The answer is provided below
Explanation:
The credit score is a number used by lenders to help them decide the likelihood of an individual to repay on time if the person is granted a credit card or a loan. The higher the scores, the likelihood that the person qualifies for credit cards and loans.
A person that has a poor credit score due to the amount of debt on credit card and instalment loans can improve his or her score by paying off the debt. When an individual pays of his or her debt, the person will have an improved credit score which can be used to apply for further loans.
Furthermore, such individual can also keep his or her balances low on the credit cards. A credit card with high debts doesn't represent the individual well when applying for a loan which will lead to a negative credit score.
Mountain High Ice Cream Company transferred $63,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,300). Mountain High anticipates a $3,300 recourse obligation. The bank charges a 3% fee (3% of $63,000), and requires that amount to be paid at the start of the factoring arrangement. Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Journal entries for Mountain high Ice cream is given below
Explanation:
Journal entries:
Debit Credit
Cash 54810(w1)
Loss on receivables 6190
Factoring amount 5300(fair value)
Recourse liability 3300
Receivables 63000
Workings 1
63000 x 90%-3% = 54810
Metro Services, Inc. reported the following information for the year 2019. Based on the following information, calculate the rate of return on total assets for Metro Services, Inc. (Round the percentage to two decimal places.)Total Assets, December 31, 2019$599,000Total Assets, December 31, 2018$505,000For Year Ended December 31, 2019: Interest Expense$27,900 Net Income$67,100A. 7.78%B. 7.10%C. 11.20%D. 17.21%
Answer:
Option D,17.21% is correct
Explanation:
The total assets deployed in generating profit for the year is the average of the beginning assets of $599,000 and the closing assets of $505,000 which translated into $552,000 i.e ($599,000+$502,000)/2
The total return on assets is the profit before interest, hence the interest of $27,900 is added to net income of $67,100 to give total return on assets in dollar terms i.e $95,000($27,900+$67,100)
The return on total assets=total return/average assets=$95,000/$552,000=17.21%
The Callie Company has provided the following information: Operating expenses were $244,000; Cost of goods sold was $378,000; Net sales were $940,000; Interest expense was $47,000; Gain on sale of a building was $84,000; Income tax expense was $142,000. What was Callie's gross profit
Answer:
Callie's Gross Profit is $562000
Explanation:
Gross profit is the profit earned by a business after deducting the costs associated with producing or selling its goods (for manufacturing and trading businesses) or the costs associated with providing the services (for service businesses) from the net revenue.
It is the profit from the trading section of the business before deducting the operating and financing expenses of the business and before adding any other income.
The gross profit is simply calculated as follows,
Gross Profit = Net Revenue - Cost of Goods Sold
Callie's gross profit = 940000 - 378000
Callie's Gross Profit = 562000
Consider the following scenario:
Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. The local office of a nonprofit environmental organization successfully lobbies state regulators to stop the farm's pollution.
1. Which of the following types of private solutions to the externality of pollution has occurred in this case?
Integration of different types of businesses
Contracts
Moral codes and social sanctions
Charities
2. It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when communications barriers or social customs are important enough relative to the potential gains involved that -------.
Answer: 1. Charities
2. Government action the only viable solution
Explanation:
Externalities are the resultant additional effects that are experienced by others as a result of actions by an economic agent who does not bear the extra aformentioned cost or benefit that their actions bring about.
1. Private Solutions to Externalities include any solution independent of the government.
The above Private Solution is Charities because it was a Non-profit Environmental Organization that dealt with the lobbying for the reduction to be acted upon by state agents. These types of organisations are usually Charities.
2. If it is shown that the potential gains are viewed to be quite high as in this case then negotiating with the polluters might not work. In this case Government Intervention is needed to force the polluters to adhere to rules and regulations.
Karen Bartlett was given a generic version of Sulindac, an anti-inflammatory drug. The result was that she developed toxic epidermal necrolysis, a disease that disfigured and blinded her. She brought suit alleging that there were warnings that should have been put on the generic version of the drug because issues with the skin infections were being reported. However, the manufacturer to Sulindac did not have FDA approval to place the warning on the product. The jury awarded Ms. Bartlett $21 million, and the generic manufacturer appealed the decision. Which of the following theories would be the best approach for the generic manufacturer to take in order to have the verdict reversed?
a. the commerce clause
b. substantive due process
c. preemption
d. due process because of the excessive size of the verdict
Answer:
option c: Preemption
Explanation:
preemption can simply be defined as the rule of law that proclaims the federal law and the constitution as the supreme law in all the land so therefore if there is a case whereby there is a conflict between a federal and a state law, the federal law will be in absolute control and this will render the state law to be void.
there are two primary occasion that will warrant preemption they are where clearly, federal law preempts state or local law, and also where preemption is implied. different kind of preemption can also be said to be express preemption, implied preemption, field preemption, conflict preemption and frustration of purpose preemption.
The risk-free rate of interest, kRF, is 6 percent. The overall stock market has an expected return of 12 percent. Nutshell, Inc. has a beta of 1.2. What is the required return of Nutshell, Inc. stock? *
Answer:required return of Nutshell, Inc. stock = 13.2%
Explanation:The Required return also called Hurdle rate is the minimum return in percentage which an investor should receive from doing business or investing in a business to compensate for the risks associated with the business. The more risky the investment, the more high returns and the less risky investment, the lower the returns.
Required Rate of Return = Risk Free Rate + Beta x (Whole Market Return – Risk Free Rate)
given
risk-free rate = 6%
market return= 12 %
beta = 1.2
Required Rate of Return = Risk Free Rate + Beta * (Whole Market Return – Risk Free Rate
= 6% + 1.2 x (12% - 6%) = 6% + 1.2 x 6% = 0.06 + 1.2x 0.06= 0.06 + 0.072=0.132 x 100 = 13.2%
As discussed in the case and the text, W. L. Gore and Zappos adopted new organizational structures during periods of growth. In general, most firms follow a predictable pattern of structural change. Which of the following best exemplifies this pattern?
a. Simple to functional to multidivisional structures
b. Ambidextrous to functional to matrix structures
c. Functional to simple to matrix structures
d. Global to functional to multidivisional structures
e. Simple to matrix to functional structures
Answer: a. Simple to functional to multidivisional structures
Explanation:
An Organisational structure refers to how tasks flow in a company to enable them to achieve their goals.
As a company grows, they tend to go through different types of structures which fit their size and enable them to reach their goals better.
They generally start with the Simple Structure which is very common in smaller businesses. Here most decisions are centred on the owner. The owner as the proprietor is in charge of coming up with basically everything to push the business forward.
As the company grows they switch to a Functional Structure. This is when the company will be structured by function to enable better specialization and divisions of labour. Examples of separation by function include, IT Department, Marketing Department, Production Department etc.
If the growth continues the company finds it best to specialize even more and this is when Multidivisional Structures kick in. In a Multidivisonal Structure, the company divides itself into different divisions while maintaining a parent company. The Divisions are fairly independent and pursue different goals and products but all under the direction of the parent company. An example is Google splitting into divisions with Alphabet Inc being the Parent Company and Divisions such as Google, Calico, Deepmind and Waymo being created.
Synovec Corporation is expected to pay the following dividends over the next four years: $6.20, $17.20, $22.20, and $4.00. Afterward, the company pledges to maintain a constant 5.5 percent growth rate in dividends forever. If the required return on the stock is 9 percent, what is the current share price
Answer:
Current price =$125.56
Explanation:
According to the dividend valuation model, the value of a share is the present value(PV) of its future expected dividend discounted at the required rate of return.
We will sum the PV of its future dividends as follows:
PV in year 1 = 6.20 × 1.09^(-1)= 5.69
PV in year 2 = 17.20 × 1.09^(-2)= 14.48
PV in year 3 = 22.20 × 1,09^(-3)=17.14
PV in year 4 = 4 × 1.09^(-4)= 2.83
PV in year 5 and beyond = (4 × 1.055)/(0.09-0.055) ×1.09^(-4) = 85.42
Current price = 5.69 + 14.48 + 17.14 + 2.83 + 85.42 = 125.56
Current price =$125.56
Bramble Corp. is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6300000 on March 1, $5270000 on June 1, and $8950000 on December 31. Bramble Corp. borrowed $3180000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6380000 note payable and an 11%, 4-year, $12550000 note payable. What amount of interest should be charged to expense? $7850132 $1088532 $2010500 $1470132
Answer:
$1,470,132
Explanation:
Expenditures:
March 1, $6,300,000
June 1, $5,270,000
December 31, $8,950,000
the weighted average interest rate:
$6,380,000 x 10% = $638,000
$12,550,000 x 11% = $1,380,500
total debt = $18,930,000
total interest = $2,018,500
weighted average interest rate = $2,018,500 / $18,930,000 = 10.663%
weighted average accumulated expenditures:
March 1, $6,300,000 x 10/12 = $5,250,000
June 1, $5,270,000 x 7/12 = $3,074,167
December 31, $8,950,000 x 0/12 = $0
total = $8,324,167
interests on the specific loan = $3,180,000 x 12% = $381,600
interests on remaining expenditures = ($8,324,167 - $3,180,000) x 10.663% = $548,520
total interest capitalized = $930,120
total interest expensed = total interests on other loans - interests capitalized on remaining expenditures = $2,018,500 - $548,520 = $1,469,980 ≈ $1,470,132 which we can match to the nearest option due since during the procedure we rounded a couple of times.
A high-end clothing manufacturer has a policy to inspect each article of clothing before it is shipped to customers. Recently, the number of finished items that are failing this final inspection has more than doubled from 3% six months ago to 7% last month. This company would benefit from a strategy designed to:
Answer:
Examine the reliability of the process.
Explanation:
As a high end clothing company, it is a very good initiative and welcoming to have clothes that possibly posses global version and global value so it is good for such routine checks to be done. This could be tedious and cost the company more than usual.
In this case where there are a reasonable amount of such clothes failing these routine checks, it is not too good for the company as more re-evaluations are to be done in order to cub the rate at which this is in the last six months. This process of examining the reliability process is the company's best bet to tackle the issue they have at hand.
Process Costing using First-in-First Out (FIFO) Crone Corporation uses the FIFO method in its processing costing system. The following data concern the company's Assembly Department for the month of October.
Cost in beginning work in process inventory $1,920
Units started and completed this month 3,130
Materials Conversion:
Cost per equivalent unit $9.50 $20.40
Equivalent units required to complete the units in
beginning work in process inventory 360 140
Equivalent units in ending work in process inventory 330 264
Required:
a. Determine the cost of ending work in process inventory
b. Determine the cost of units transferred out of the department during October.
Answer:
Cost of ending inventory= $8,520.6
Total cost of units transferred out=$99,863
Explanation:
Cost of ending inventory
Cost of items of inventory = cost per equivalent unit × No of units
Cost of items of inventory = ($9.50×330) + ($20.40 × 264)= $8,520.6
Total cost of units transferred out
The FIFO method of valuation of working in progress separates the units transferred out into opening inventory and fully worked.
The fully worked represents the units of inventory started and completed in the sames period.
The cost of units transferred out is the sum of h opening inventory and he fully worked. This done below:
Opening inventory = ($9.50 × 360) + ($20.40×140)= 6276
Transferred of fully worked = $(9.50 +$20.40) × 3,130= 93,587
Total cost of units transferred out = (6276 +93587)= $99,863
In 2001, President George W. Bush and Federal Reserve Chairman Alan Greenspan were both concerned about a sluggish U.S. economy. They also were concerned about the large U.S. trade balance deficit. To help stimulate the economy, President Bush proposed a tax cut. What are the effects of the proposed policy using the IS-LM model
Answer:
The answer is given below.
Explanation:
The effect of this tax cut would be a resultant shift in the IS curve to the right, resulting in higher interest rates, currency appreciation, and bigger current account deficits. The tax cut would encourage consumers to spend more and, thereby increasing planned expenditure. The tax cut raises both income and the interest rate.
Causwell Company began 2018 with 11,000 units of inventory on hand. The cost of each unit was $4.00. During 2018 an additional 35,000 units were purchased at a single unit cost, and 21,000 units remained on hand at the end of 2018 (25,000 units therefore were sold during 2018). Causwell uses a periodic inventory system. Cost of goods sold for 2018, applying the average cost method, is $108,750. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used. Required: 1. Determine the cost of goods sold for 2018 using the FIFO method. [Hint: Determine the cost per unit of 2018 purchases.] 2. Determine the cost of goods sold for 2018 using the LIFO method.
Answer and Explanation:
For computing the cost of goods sold under two method first we have to determine the cost per unit which is shown below:
The average cost per unit is
= $108,750 ÷ 25,000 units
= $4.35
Now the cost per unit is
Total cost (11,000 units + 35,000 units) × $4.35 $200,100
Beginning units (11,000 units × $4) $44,000
The Remaining cost for 35000 units ($200,100 - $44,000) $156,100
Divide by Purchase cost per unit of 35000 units $4.46
Now the cost of goods sold are as follows
1. Under the FIFO method
Beginning 11,000 × $4.00 $44,000
Purchased 14,000 × $4.46 $62,440
Total 25,000 $1,06,440
2. Under the LIFO method
Purchased 25,000 × $4.46 $1,11,500
Kat Outfitting currently has $22,500 in cash. The company owes $49,500 to suppliers for merchandise and $52,500 to the bank for a long-term loan. Customers owe the company $41,000 for their purchases. The inventory has a book value of $76,800 and an estimated market value of $72,000. If the store compiled a balance sheet as of today, what would be the book value of the current assets?
Answer:
The book value of the current assets is $140,300
Explanation:
Cash = $22,500
Amount owed by company = $49,500
Amount Owed by Customers = $41,000
Book Value of Inventory = $76,800
Estimated market value = $72,000
Book Value of Current Assets = Cash + Amount Owed by Customers + Book Value of Inventory
Book Value of Current Assets = $22,500 + $41,000 + $76,800
Book Value of Current Assets = $140,300
Which of the following are examples of hidden unemployment? Select the two correct answers below. Select all that apply: John is 15 years old and even though he wants to find summer job, he can't. Lisa cannot find the job she wants so she has stopped looking. Penny has a college degree in nursing, but currently has to work as a store clerk as it is the only available job in her small town. Rita is working in the job of her dreams.
Answer:
Lisa cannot find the job she wants so she has stopped looking. Penny has a college degree in nursing, but currently has to work as a store clerk as it is the only available job in her small town.Explanation:
Hidden Unemployment also known as Disguised Unemployment in simple terms refers to the following people; people who are not working and have given up on looking for work because they could not find any, people who have the skillset and determination to work full-time working only part time and people who are underemployed meaning that they are working a job that they are overqualified for.
Hidden Unemployment is considered hidden as it is not reflected in employment statistics.
Lisa could not find a job so she stopped looking. This is Hidden Unemployment and official figures will not even count her as unemployed because you need to be actively looking for work to be classified unemployed.
Penny is overqualified for the store clerk position she holds or rather she is qualified for a different profession. Employment statistics will however show her as employed.
In the short-run aggregate demand and supply model, one important difference between monetary and fiscal policy is that monetary policy:_______.
a. influences aggregate supply but fiscal policy influences aggregate demand.
b. has shorter lags than fiscal policy, so monetary policy may impact the economy more quickly than fiscal policy.
c. influences aggregate demand but fiscal policy influences aggregate supply.
d. has longer lags than fiscal policy, so fiscal policy may impact the economy more quickly than monetary policy.
Answer:
a. influences aggregate supply but fiscal policy influences aggregate demand.
Explanation:
Remember, when the term monetary policy is used it refers to policies that are focused on the interest rates as well as the inflation rate, which certainly affects the money supply specifically. However, the fiscal policy is usually channelled towards aggregate demand of the economy.
Thus, it is right to say that one important difference between monetary and fiscal policy is that monetary policy affects aggregate supply but fiscal policy influences aggregate demand.
Allyson Gomez invests $8,000 today in an investment that earns 6 percent per year (compounded annually) for 25 years. The average inflation rate is expected to be 1.8 percent per year. She will have much more than $8,000 in 25 years BUT what would this future amount be if expressed in today’s dollars? a. $34,335 b. $21,981 c. $52,306 d. $12,496 e. $21,839
Answer:
B
Explanation:
The first thing to do here is to calculate what the amount of money invested would be in 25 years given the interest rate.
Mathematically, that can be written as;
V = P(1 + r)^n
Where V is the future value
P is the present value which is $8,000
r is interest rate which is 6% (6/100 = 0.06)
n is the number of years which is 25 years
Now plugging these values into the equation, we have
V = 8,000(1 + 0.06)^25
V = 8,000(1.06)^25
V = $34,334.97 which is approximately $34,335
We can now proceed to get what this future value would be today if we take the inflation rate into consideration
Mathematically, this can work as follows
P = V(1 + i)^n
Where P is the present value of the money when the inflation is taken into consideration
V is the future value of the money which was calculated from above as $34,335
i is the inflation rate which is 1.8% per annum = (1.8/100 = 0.018)
n is the number of years which is 25
Substituting these values, we have;
P = 34,335/(1 + 0.018)^25
P = 34,335/(1.018)^25
P = 21,980.75
Which is approximately P = $21,981
Elaborate on any three internal factors of Jessops’ Group Limited that can influence its functioning
Answer:
The internal factors are factors that are under the control of the company and these can be tangible or intangible in nature.
Explanation:
Examples of three internal factors of Jessops’ Group Limited that can influence its functioning are:
1. Assets of the company: the company has over 200 stores around the UK, and also has an online shop and call center. This will make the company to serve a wide base of customers which can increase the revenue of the UK’s premier photographic retailer.
2. Photo and imaging business: This is a business line which is a key part of the company's product portfolio. The decision of the company to focus its attention on making its imaging business the market leader is because of the stability in its margins during the 2008–09 economic recession in the UK.
3. Participation and investment in social responsibility: The response of the company to the Waste Electrical and Electronic Equipment (WEEE) regulations on the disposal of electronic goods at the end of their life by contributing towards a national fund to assist local councils to develop collection facilities for electronic goods is an example of social responsibility. The creation of a convenient battery recycling points in its stores and effort to increase awareness of the WEEE regulations are part of social responsibility functions that will be seen more favorably by consumers. This can therefore increase the sales of the company.
The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company’s present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives:
Purchase alternative: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $27,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole:
Annual cost of servicing, taxes, and licensing $ 4,300
Repairs, first year $ 2,200
Repairs, second year $ 4,700
Repairs, third year $ 6,700
At the end of three years, the fleet could be sold for one-half of the original purchase price.
Lease alternative: The company can lease the cars under a three-year lease contract. The lease cost would be $70,000 per year (the first payment due at the end of Year 1). As part of this lease cost, the owner would provide all servicing and repairs, license the cars, and pay all the taxes. Riteway would be required to make a $15,000 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the owner at the end of the lease contract.
Riteway Ad Agency’s required rate of return is 20%.
Required:
1. Use the total-cost approach to determine the present value of the cash flows associated with each alternative. (Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)
Answer:
The present value of purchase is $ 209,907.41
The present value of lease is $ 153,773.15
Find attached spreadsheet.
Explanation:
The present of value of both options need to be calculated in order to determine the viable option:
Present value of purchase=($27,000*10)+($4,300+$2,200)/(1+20%)^1+($4,300+$4,700)/(1+20%)^2+($4,300+$6,700)/(1+20%)^3-($27000*10*0.5)/(1+20%)^3=$209,907.41
Present value of lease option=$15,000+$70,000/(1+20%)^1+$70,000/(1+20%)^2+$70,000/(1+20%)^3-$15,000/(1+20%)^3=$ 153,773.15
assume yourself as a marketing specialist of a company and determine the new product development process by manufacturing a new product for your company ??
anyone have answere ?
Answer:
The Productisation produce is:
1. Ideation/Conceptualisation
This has to do with the generation of a product or service idea;
2. Research / Concept Testing Stage / Analysis
This stage has to do with the research around the idea to determine the availability of market for the product, size and target segment within the market, Growth Potential, competition analysis and current and potential issues that may arise due to the creation of the product;
As a substage of the research phase, a business analysis of the viability of the product is also carried out. this will entail
Cost-Benefit Analysis Resources Required Capital Expenses Profitability/Margin Anticipated Sales
3. Design/Creation of Prototype/Development
For physical products, this stage will look at on-paper design from which a prototype will be created.
After testing to ensure that the prototype works, it is then sent for development. This stage also involves market tests.
4. Launch
This is the final stage of the product development process.
It entails all the go-to-market activities such as market plan execution, sales/production training, execution of distribution plan.
It is possible at this stage to still collect product-related feedback from the market for consideration in the upgrade version of the product to be launched at a later date.
Cheers!
compare and contrast the Reference Theory of meaning and the Idea Theory of meaning and explain how best each of them can be used to explain the term deadly virus .
Answer:
Check Explanation.
Explanation:
The concept of " Reference Theory of meaning " and the "Idea Theory of meaning " are very important in the aspect that concerns the use of language for expression and language semantics.
The SIMILARITIES BETWEEN " Reference Theory of meaning " and the "Idea Theory of meaning ";
=> They are both used in the Explanation of meaning that is to say in semantics.
=> They are both defined through "action''
The DIFFERENCE BETWEEN " Reference Theory of meaning " and the "Idea Theory of meaning " :
(1). The term "Reference Theory of meaning" simply means that every word has a particular reference or label.
For instance now;
=> Ebola Virus is deadly.
=> Stomach ache is deadly.
The Ebola Virus is the label for the micro-organism, deadly denotes how the virus kills and the " Ebola Virus is deadly" denotes the sentence.
The first sentence "Ebola Virus is deadly" is right as this sentence makes reference to Ebola virus that is being used in the determination of how true a sentence is.
SUMMARY: ALL WORDS SYMBOLIZES SOMETHING IN REAL LIFE AND THEY ARE USED IN THE DETERMINATION OF WHAT IS TRUE AND WHAT IS WRONG OR WHAT HAS VALUE.
The disadvantage is that it can not be used in the expression for that are abstract.
(2). Idea Theory of meaning simply refers to meaning BASED ON IDEAS and not what it actually means in REAL LIFE SCENARIO.
Its disadvantage is that mental images or ideas differ from one individual to the other.
Shop –N-Go Systems purchased cash registers on April 1 for $6,000. If this asset has an estimated useful life of four years, what is the netbook value of the cash registers on May 31 if the company uses the straight-line method of depreciation?
Answer:
Depreciation= $250
Explanation:
Giving the following information:
Purchasing price= $6,000
Useful life= 4 years
Depreciation= straight-line
First, we need to calculate the annual depreciation:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= 6,000/4= 1,500
Now, the depreciation for two months:
Depreciation= (1,500/12)*2
Depreciation= $250
Cute Camel Woodcraft Company just reported earnings after tax (also called net income) of $8,000,000, and a current stock price of $25.75 per share. The company is forecasting an increase of 25% for its after-tax income next year, but it also expects it will have to issue 1,500,000 new shares of stock (raising its shares outstanding from 5,500,000 to 7,000,000) If Cute Camel's forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does the company's management expect its stock price to be one year from now? (Round any P/E ratio calculation to four decimal places).
A. $25.22 per share
B. $25.75 per share
C. $18.92 per share
D. $31.53 per share
One year later, Cute Camel's shares are trading at $49.60 per share, and the company reports the value of its total common equity as $35,308,000. Given this information, Cute Camel's market-to-book (M/B) ratio is ___________
Can a company's shares exhibit a negative P/E ratio?
A. No
B. Yes
Which of the following statements is true about market value ratios?
A. Companies with high research and development (R&D) expenses tend to have low P/E ratios
B. Companies with high research and development (R&D) expenses tend to have high P/E ratios.
The stock price one year from now will be A. $25.22 per share .
The market to book value after one year is 9.833.
A company's shares can exhibit a negative P/E ratio. This is true.
The true statement is that companies with high research and development (R&D) expenses tend to have high P/E ratios.
How to calculate the valueCurrent year price earning ratio = 25.75*5500000/8000000
17.7
current price earning = 17.70
next year earning = 8000000*(1+25%)
10000000
If PE ratio remains constant next year then share price next year is
10000000*17.70/7000000 = 25.22 per share
Market to book value after one year = (7000000*49.60)/35308000 = 9.833.
It should be noted that because of negative earing of the company negative PE ratio is possible. Hence PE ratio negative is possible
Lastly, company who spend high research and development expenses to have high P/E ratios
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The December 31, 2018, balance sheet of Whelan, Inc., showed $154,000 in the common stock account and $2,790,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $164,000 and $3,090,000 in the same two accounts, respectively. The company paid out $159,000 in cash dividends during 2019 14.28 points What was the cash flow to stockholders for the year? (A negative answer should be indicated by a minus sign.
Answer:
Whelan, Inc.
The cash flow to stockholders for the year is $159,000, representing the cash dividends paid during 2019.
Explanation:
Cash flow to stockholders is the amount of cash that a company pays out to its shareholders, usually in the form of cash dividends. Mainly, cash flows to stockholders in two major ways: dividends and stock price increases when shares are sold. Dividends are cash flows to stockholders from the company. These are usually determined by the board of directors. Stock price increases are cash flows to stockholders from the stock exchange market. They are determined by the company's performance and the sentiments of the investors in an open market with reference to the company's financial performance and position.
This year Barney purchased 500 shares of Bell common stock for $20 per share. At year-end the Bell shares were only worth $2 per share. What amount can Barney deduct as a loss this year
Answer:
Barney is not entitled to a loss deduction.
Explanation:
Barney is not qualified for a loss deduction. Barney cannot have any realization because the stock has not been sold or become worthless. If Barney's stock becomes worthless then generally he may deduct its tax basis in the stock as a worthless stock loss for the year in which the stock becomes worthless.
