Answer:
A. Total amount of stockholders' equity in the balance sheet.
= Preferred stock + Common Stock + Additional Paid-In Capital + Unappropriated retained earnings + Retained earnings appropriated for contingencies - Treasury stock
= (100 * 10,000) + (10 * 140,000) + 500,000 + 280,000 + 300,000 - 250,000
= $3,230,000
B. Earnings per share of common stock.
= (Net Income - Preferred Dividends ) / (Common stock - treasury stock)
= (580,000 - (10,000 * 6% * 100) ) / (140,000 - 10,000)
= $4
C. Book value per share of common stock.
= (Stockholder's equity - Preferred stock) / ( Common stock - Treasury)
= (3,230,000 - (100 * 10,000) ) / (140,000 - 10,000)
= $17.15
D. Payout ratio of common stock
= Dividend per share/ Earnings per share
= 1.8/4
= 45%
E. Return on common stock equity
= (Net Income - Preferred Dividends ) / (Stockholder's equity - Preferred stock)
= (580,000 - (10,000 * 6% * 100) / (3,230,000 - (100 * 10,000) )
= 0.233
= 23.3%
A problem of interest to health officials (and others) is to determine the effects of smoking during pregnancy on infant health. One measure of infant health is birth weight; a birth weight that is too low can put an infant at risk for contracting various illnesses. Since factors other than cigarette smoking that affect birth weight are likely to be correlated with smoking, we should take those factors into account. For example, higher income generally results in access to better prenatal care, as well as better nutrition for the mother. An equation that recognizes this is bwght 5 b0 1 b1cigs 1 b2 faminc 1 u. (i) What is the most likely sign for b2
Answer:
β2 should have a positive sign
Explanation:
The regression equation is:
βwght = β0+β1cigs+β2faminc+μ
The equation tells us that the birth weight of a child is dependent on factors like cigarette consumption and family income.
β1 should have a negative sign because smoking during pregnancy has an adverse effect on birth weight. So there would be a negative correlation between birth weight and cigarette consumption.
β2 should have a positive sign. This is because while pregnant, a family with more income has the ability to provide better prenatal care and also better nutrition to the expectant mother. Therefore we have a positive correlation.
What are the inventory methods used in accounting?
Answer:
- specific identification;
- first-in, first-out (FIFO);
- last-in, first-out (LIFO); and.
- weighted-average.
What is a "Halo effect?" Review Later This bias occurs when decision makers seek out evidence that confirms their previously held beliefs, while discounting or diminishing the impact of evidence in support of differing conclusions. This is the overreliance on an initial single piece of information or experience to make subsequent judgments. Once an anchor is set, other judgments are made by adjusting away from that anchor, which can limit one’s ability to accurately interpret new, potentially relevant information. This is an observer’s overall impression of a person, company, brand, or product, and it influences the observer’s feelings and thoughts about that entity’s overall character or properties. It is the perception, for example, that if someone does well in a certain area, then they will automatically perform well at something else regardless of whether those tasks are related. This bias occurs when a person overestimates the reliability of their judgments. This can include the certainty one feels in her own ability, performance, level of control, or chance of success.
Answer:
Option C (This is an observer's......related) is the right option.
Explanation:
This would be the individual's evaluation of such an individual, business, brand as well as commodity by an observer, and then it affects the thoughts and emotions including its observer about either the personal appearance including its object. It is a belief that just because someone performs well enough in a certain area, independently of those same activities required, they will naturally do well in another one.All those other decisions also aren't linked to the circumstance issued. So, the solution is indeed the right one.
HELP ASAP!!! ! Suppose the government raises taxes on the profits of oil companies. we should expect which of the following? A less innovation in the production of oil and therefore higher oil prices. B The price of oil to be unchanged. C Oil companies will increase production in an attempt to increase revenue. D None of the above will happen.
Answer:
sdedcfgrtgf
Explanation:
gtgtgtgtgtgtgtgtgtgtgt
You are faced with the probability distribution of the HPR on the stock market index fund given in Spreadsheet 5.1 of the text. Suppose the price of a put option on a share of the index fund with exercise price of $110 and time to expiration of 1 year is $12, and suppose the risk-free interest rate is 6% per year. You are contemplating investing $107.55 in a 1-year CD and simultaneously buying a call option on the stock market index fund with an exercise price of $110 and expiration of 1 year. What is the probability distribution of your dollar return at the end of the year
Answer:
Follows are the solution to this question:
Explanation:
The price of one share plus one choice for the index fund is $112. Its distribution of HPR probabilities on the portfolio is:
[tex]\boxed{\left \begin{array}{cccc} \text{economy states} & \text{Probability}& \text{Endig price+Put+Dividend}&HPR\\ Excellent &0.25& \$ 131.00& \frac{(131-112)}{112} = 17\% \\Good &0.45&\$ 114.00& \frac{(114-112)}{112} = 1.8 \% \\poor &0.25& \$ 113.00& \frac{(113.50 -112)}{112} = 1.3 \% \\ Crash&0.5& \$ 112.00& \frac{(112-112)}{112} = 0.0 \% \end{array}\right}[/tex] The chances of dollar return distributions on the CD plus call option can be defined in the attached file please find it:
You manage a risky portfolio with an expected rate of return of 22% and a standard deviation of 34%. The T-bill rate is 6%. Your risky portfolio includes the following investments in the given proportions: Stock A 31 % Stock B 36 % Stock C 33 % Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 18%. a. What is the proportion y? (Round your answer to the nearest whole number.) b. What are your client’s investment proportions in your three stocks and the T-bill fund? (Do not round intermediate calculations. Round your answers to 2 decimal places.) c. What is the standard deviation of the rate of return on your client’s portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer and Explanation:
A.
E(r) = y x R(rp) + (1-y)*rf
0.18 = y * 0.22+(1-y)*0.06
0.18 = 0.22y +0.06 -0.06y
Collect like terms
0.18-0.06 = 0.22y - 0.06y
0.12 = 0.16y
y = 0.12/0.16
= 0.75
= 75%
B.
Stock a = 31% x 0.75
= 0.2325
= 23.25%
Stock b = 36% * 0.75
= 0.27%
Stock c = 33% * 0.75
= 0.2475
= 24.75%
A total of all these stocks gives 100 percent
C.
We have standard deviation = 34%
Y * standard deviation
= 0.75 * 0.34
= 0.255
= 25.5%
A business has fixed costs of $45,000 per month and a variable costs of $32,000 per month . What is the average total cost of 7,700 units
Answer:
$10 per unit
Explanation:
The average total cost (AC) is the estimated per-unit cost in a given output. The formula for calculating the average cost
=(Total fixed costs + total variable costs) / number of units produced = average total cost.
Adding Total fixed cost to total variable cost equal to Total cost (TC)
For this business, the average total costs
=$45,000 + $32,000 /7,700
=$77,000/7700
=$10
AC= $10 per unit
A city engaged in the following transactions during a year: It acquired computer equipment at a cost of $40,000. It completed construction of a new jail, incurring $245,000 in new costs. In the previous year the city had incurred $2.5 million in construction costs. The project was accounted for in a capital projects fund. It sold for $16,000 land that it had acquired three years earlier for $28,000. It traded in a four‐year‐old sanitation department vehicle for a new model. The old vehicle had initially cost $27,000, its carrying value at the time of trade was $17,000, and its market value was $13,000. The city paid an additional $39,000 cash for the new model. The fair value of the new model was $52,000. Prepare journal entries to reflect the transactions in an appropriate governmental fund (e.g., a general fund or a capital projects fund). Prepare journal entries to reflect the transactions in the city's government‐wide statements.
Answer:
1. Journal entries to reflect the transactions in an appropriate governmental fund
S/N Particulars Debit ($) Credit ($)
1. Expenditure - acquisition of 40,000
computers
Cash 40,000
2. Expenditure - Construction cost 245,000
Cash 245,000
3 Cash 16,000
Other financing sources - sale of land 16,000
4 Expenditure - acquisition of vehicle 39,000
Cash 39,000
Note: Cash being asset account, decreases hence debited. Expenditure being expense account increases hence debited.
2. Journal entries to reflect the transactions in the city's government-wide statements
S/N Particulars Debit ($) Credit ($)
1. Computers 40,000
Cash 40,000
2 Construction in process 245,000
Cash 245,000
3 Buildings 2,745,000
Construction in process 2,745,000
4 Cash 16,000
Loss on sale of land 12,000
Land 28,000
5 Vehicle – new 52,000
Accumulated depreciation - 10,000
old vehicle
Loss on trade-in 4,000
Cash 39,000
Vehicle - old 27,000
Note: All assets are asset accounts increases hence debited, If decrease then credited. All expenses are expense accounts increases hence debited, if decrease then credited.
g Phoenix industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it was announced a $1 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year dividends growth is expected to settle down to a more moderate longterm growth rate of 8%. If the firm's investors expect to earn a return of 16% on this stock, what must the price be
Answer:
Market Share price $ 31,12
Explanation:
The price of the stock will be the same as the present value of their dividends:
Year Dividend Presnet Value
First year $1,00 $ 0,8621
Second $2,00 $ 1,7241
Third $3,00 $ 2,5862
Total Value $ 5,1724
Now, we solve for the horizon value
3 x (1.08) / (0.16 - 0.08) = 40,50
And, as this is three year ahead we also discounted like the other dividends:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 40,50
time 3,00
rate 0,16
[tex]\frac{40,5}{(1 + 0,16)^{3} } = PV[/tex]
PV 25,95
And last, we add up the horizon with the other dividends:
5.17 + 25,95 = 31,12
Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.March 1 - Bills are sent to clients for services provided in February in the amount of $800.March 9 - Corner Office, Inc. delivers office furniture ($1,060) and office supplies ($160) to Nexium leaving an invoice for $1,220.March 15 - Payment is made to Corner Office, Inc. for the furniture and office supplies delivered on March 9.March 23 - A bill for $430 for electricity for the month of March is received and will be paid on its due date in April.March 31 – Salaries of $850 are paid to employees.For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Answer: Please find answers in explanation column
Explanation:
Journal entry for Nexium & Associates
1.Journal to record Services provided in February.
Date Account Debit Credit
March 1 Accounts receivable $800
Service revenue $800
2.Journal to record purchase of furniture and supplies on account.
March 9 Office furniture $1,060
Office supplies $160
Accounts payable $1,220
3.Journal To record payment made to suppliers, Corner Office Inc.
March 15 Accounts payable $1,220
Cash $1,220
4.Journal To record the bill of electricity for march which is not yet due to be paid till April.
March 23 Electricity expense $430
Outstanding Liabilities $430
5.Journal To record the salary payment to employees.
March 31 Salaries expense $850
Cash $850
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May 11 Sydney accepts delivery of $29,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $19,430. Sydney pays $655 cash to Express Shipping for delivery charges on the merchandise.
12 Sydney returns $1,300 of the $29,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871.
20 Sydney pays Troy for the amount owed. Troy receives the cash immediately.
(Both Sydney and Troy use a perpetual inventory system and the gross method.)
1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Sydney accepts delivery of $29,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $19,430.Sydney pays $655 cash to Express Shipping for delivery charges on the merchandise.Sydney returns $1,300 of the $29,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871.Sydney pays Troy for the amount owed. Troy receives the cash immediately.
Making the pro-forma financial statements as complicated as possible is always best
Answer:
false
Explanation:
Robert Plant deposits $25 each month into a savings account that pays 4.0% annual interest. How much will be in the account after 36 months, if interest compounds monthly
Answer:
FV= $953.97
Explanation:
Giving the following information:
Monthly deposit= $25
Interest rate= 0.04/12= 0.0033
Number of periods= 36
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {25*[(1.0033^36) - 1]} / 0.0033
FV= $953.97
objective of management
Tanya Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January 4, 2017, she exchanges it with Lisa Martin (an unrelated party) for undeveloped land on the West Coast and $3,000 cash. Lisa has an adjusted basis of $72,000 for her land, and its fair market value is $89,000. As the real estate market on the East Coast is thriving, on September 1, 2018, Lisa sells the land she acquired for $120,000.If an amount is zero, enter "0".a. On January 4, 2017, Tanya's realized gain for the West Coast land is $, her recognized gain is $, and her adjusted basis is $.b. On January 4, 2017, Lisa's realized gain for the East Coast land is $, her recognized gain is $, and her adjusted basis is $.c. Lisa's realized gain from the September 1, 2018, sale is $. Her recognized gain from the September 1, 2018 sale is$.d. What effect does Lisa's 2018 sale have on Tanya?Lisa’s sale of the East Coast land has for Tanya.e. Complete the letter to Tanya advising her of the tax consequences of this exchange.
Answer:
Following are the solution to the given point:
Explanation:
In point a:
Sum of:
= ($89,000 + $3,000)
= $92,000
Modified foundation= -$80,000
A real profit= $12,000
Gain (boot received) recognised = $3,000
Tanya's West Coast Changed Base:
Fair Market = $89,000
Posted benefit:
= ($ 12,000- $ 3,000)
= $ 9,000
Adjusted Base =$80,000
In part b:
Realized benefit calculation:
Sum of = $92,000
Modified Base =$72,000 + $3,000 = $75,000
A real profit= $17,000
gain was accepted = $0
Changed base of Martin to the West Coast:
Fair Market = $92,000
Gain deferred = ($17,000-$0) = $ 17,000
Adjusted Base = $75,000
In point c:
Recognized benefit from Martin:
Value = $1,20,000
Base adjusted= $ 75,000
actual gain = $45,000
Gain Recognized= $45,000
In point d:
Tanya has little effect mostly on selling by Lisa of an eastern seaboard ground. There is no supposed selling care among Lauren and Tanya after selling property on the eastern seaboard since they are unrelated parties.
In point e:
sum of = $92,000.
Tanya 's acceptable basis is $80,000 ($89,000-($12,000-$3,000)).
actual benefit = $ 12,000
gain benefit = $3,000
Since the trade is deemed a non-taxable trade, $3,000 is recognized of the total $12,000 benefit. Its ground earned is $80,000 adjusted.
Use the following information to answer the question below:
Acquirer purchases 100% of target by issuing $100 million in new debt to purchase target shares, carrying an interest rate of 10%
Excess cash is used to help pay for the acquisition
Acquirer expects to be able to close down several of the target company’s old manufacturing facilities and save an estimated $2 million in the first year
Target PP&E is written up by $25 million to fair market value
Investment bankers, accountants, and consultants on the deal earned $30 million in fees
Which of the following adjustments would be made to the pro forma income statement?
a) Advisory fee expense of $30 million
b) Depreciation expense increase due to PP&E write-up
c) Pre-tax synergies of $2 million
d) All of the above
Answer:
d) All of the above
Explanation:
Pro forma income statements are basically estimated or expected income statements which do not necessarily comply with US GAAP norms (are not useful in legal terms), but should reflect future outcomes.
In this case, Acquirer didn't simply decide to purchase Target and carried the operation immediately. The process is long and complicated and many times companies negotiate fair values and future cash flows. If you analyze the acquisition process of Whole Foods by Amazon it is very interesting. After negotiations Amazon paid 4 times the capitalization value of Whole Foods.
Before the actual process ends, Acquirer should present a pro forma statement and it must include all the relevant issues about the merger. They already know how much the transaction will cost, what actions will be taken to increase profits and any other major event.
Why might you want to avoid the use of acronyms and emoticons in business communication
Well because if you used emoticons in a professional business communication, then they would probably see you as untrustworthy or lazy and they would most likely go to somebody else who is more professional.
What is the meaning
economics
Answer:
the branch of knowledge concerned with the production, consumption, and transfer of wealth.
2.
the condition of a region or group as regards material prosperity.
Suppose you run a software company and you want to determine if there is a difference between the 'debugging unit' (population 1) and 'after sales services unit' (population 2) by considering the return on investment for each unit. you have acsess to information from a random survey which is done for 24 companies for population 1 which reveals that the average return on investment (ROI) for each dollar you invest is.12, while for population, the survey is performed on 30 companies and the average ROI is found to be .30. You also know from the previously published results that the standard deviation for any ROI in the software industry is .25 What is the value of the test statistic for your research hypothesis?
a. -1.3145.
b. -1.2728.
c. -2.3738.
d. -2.2411.
e. -2.6291.
Answer:
e. -2.6291.
Explanation:
from the information available in this question,
mean x₁ = 0.12
mean x₂ = 0.30
n₁ = 24
n₂ = 30
n1 = 24 < 30
n₂ = 30 <= 30
therefore we would be solving this using the t test.
we have
[tex]t =\frac{x_{1-x_{2} } }{s} *\sqrt{\frac{n1n2}{n1+n2} }[/tex]
inserting values whe have:
[tex]t=\frac{0.12-0.30}{0.25} *\sqrt{\frac{24*30}{24+30} }[/tex]
[tex]t = -0.72 *\sqrt{13.33333}[/tex]
[tex]t=-0.72*3.6514836[/tex]
[tex]t=-2.629067947[/tex]
this is approximately
[tex]-2.6291[/tex]
therefore option e answers this question.
A municipality is considering an investment in a small renewable energy power plant with the following parameters. The cost is $360,000, and the output averages 50 kW year-round. The price paid for electricity at the plant gate is $0.039/kWh. The investment is to be evaluated over a 25-year time horizon, and the expected salvage value at the end of the project is $20,000. The MARR is 6%.Calculate the NPV of this investment. Is it financially attractive? Calculate the operating credit per kWh which the government would need to give to the investment in order to make it break even financially. Express your answer to the nearest 1/1000th of dollars
Answer:
this project is not financially attractive because the NPV is negative (-$136,974.74)operating credit per kWh = $0.0245Explanation:
initial investment = $360,000
yearly cash flows 1 - 24 = 50 x $0.039 x 24 hours x 365 days = $17,082
yearly cash flow year 25 = $17,082 + $20,000 = $37,082
using a financial calculator, the present value of the yearly cash flows = $223,025.26
this project's NPV = -$360,000 + $223,025.26 = -$136,974.74
in order for this project to be profitable, NCFs should be:
$360,000 - ($20,000 / 1.06²⁵) = $355,340.03
annual earnings = $355,340.03 / 12.783 (PV annuity factor, 6%, 25 periods) = $27,797.86
total kWh = 50 x 24 x 365 = 438,000
$27,797.86 / 438,000 = $0.063465 per kWh
operating credit = $0.063465 - $0.039 = $0.0245
Candlewood LLC started business on September 1, and it adopted a calendar tax year. During the year, Candlewood incurred $6,500 in legal fees for drafting the LLC's operating agreement and $3,000 in accounting fees for tax advice of an organizational nature, for a total of $9,500 of organizational costs. Candlewood also incurred $30,000 of preopening advertising expenses and $24,500 of salaries and training costs for new employees before opening for business, for a total of $54,500 of startup costs. The LLC wants to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar. How much can Candlewood deduct as organizational expenses
Answer:
deduction for organizational expenses = $5,000
Explanation:
Since the total startup costs are over $50,000 then the company's deduction will be lower. Generally speaking, a company can deduct up to $5,000 in organizational an startup costs ($5,000 each). But if the costs are over $50,000, then your deduction will be reduced by $1 for each dollar over that threshold.
In this case, organizational costs were $9,500, so they can deduct $5,000 during the first year and $4,500 will be amortized over the next 15 years. Startup costs are $54,500, which means that they can only deduct $5,000 - ($54,500 - $50,000) = $500 during the first year. The remaining $54,000 must be amortized over a 15 year period. Total deduction during the first year = $5,000 + $500 = $5,500
Instructions: Round your answers to 2 decimal places. If you are entering a negative number include a minus sign. a. Using the midpoint method, what is the price elasticity of demand from a price of $4.00 to a price of $4.50 per iced coffee? , and demand is said to be price (Click to select) . b. Using the midpoint method, what is the price elasticity of demand from a price of $2.00 to a price of $3.00 per iced coffee? , and demand is said to be price (Click to select) . c. Using the midpoint method, what is the price elasticity of demand from a price of $0.50 to a price of $1.00 per iced coffee? , and demand is said to be price (Click to select) .
Answer:
The answer is below
Explanation:
The graph is attached below.
a) The price elasticity of demand is given by:
price elasticity of demand = [tex]\frac{\%\ change\ in\ quantity }{\%\ change\ in\ price}=\frac{\Delta Q}{\Delta P}[/tex]
[tex]\Delta Q=\frac{Q_2-Q_1}{(Q_2+Q_1)/2} \\\\\Delta P=\frac{P_2-P_1}{(P_2+P_1)/2}[/tex]
Price of elasticity demand = [tex]\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} }[/tex]
Price of elasticity demand = [tex]\frac{\frac{50-100}{(50+100)/2} }{\frac{4.5-4}{(4.5+4.0)/2} }=\frac{-0.6667}{0.1176} =5.7[/tex]
Since the price of elasticity demand > 1, it is elastic
b) Price of elasticity demand = [tex]\frac{\frac{200-300}{(200+300)/2} }{\frac{3-2}{(3+2)/2} }=\frac{-0.4}{0.4} =1[/tex]
Since the price of elasticity demand = 1, it is unitary
c) Price of elasticity demand = [tex]\frac{\frac{400-450}{(400+450)/2} }{\frac{1-0.5}{(1+0.5)/2} }=\frac{-0.1176}{0.6667} =0.18[/tex]
Since the price of elasticity demand < 1, it is inelastic
Why do companies frequently expand their business operations into other countries?
Asset management ratios are important - firms need to manage assets efficiently because capital obtained to acquire those assets is expensive. These ratios include the: (1) Inventory turnover ratio, (2) Days sales outstanding, (3) Fixed assets turnover, and (4) Total assets turnover. The inventory turnover ratio indicates how many times during the year inventory is -Select- and restocked. Its equation is: Excess inventory is unproductive and represents an investment with a -Select- rate of return. An alternative definition of the inventory turnover ratio replaces sales in the numerator with -Select- . The rationale for this measurement is that inventory is carried at cost, so sales in the numerator overstates the true inventory turnover ratio. The days sales outstanding (DSO) ratio is also called the average collection period (ACP). Its equation is:
Answer:
Throughout the overview section following table, the definition including its instance supplied is defined.
Explanation:
The asset turnover ratio reflects how much inventory is consumed and restocked throughout the year. Excess inventory becomes counterproductive and constitutes a low-return investment. An alternate interpretation including its inventory turnover ratio substitutes the cost of products delivered towards revenue in the numerator.Compared to the conditions around which the company prices its products, the DSO may even be measured. This will suggest a need to step up the accumulation of receivables unless the pattern has been growing and credit policy just hasn't improved. Because of age, there may be issues understanding this calculation, specifically whenever an older organization in comparison to something like a newer business.Future value. Jack and Jill are saving for a rainy day and decide to put $70 away in their local bank every year for the next 25 years. The local Up-the-Hill Bank will pay them 5% on their account. a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years? b. Unfortunately, Jack had an accident in which he sustained head injuries after only 10 years of savings. The medical bill has come to $900. Is there enough in the rainy-day fund to cover it? a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years?
Answer:
a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years?
The future value = present value x (1 + r)ⁿ = $70 x (1 + 5%)²⁵ = $237.04
b. Unfortunately, Jack had an accident in which he sustained head injuries after only 10 years of savings. The medical bill has come to $900. Is there enough in the rainy-day fund to cover it?
No, the balance in the account is only $114.02, it is not even close to $900. They should try to save a little bit more every year, $70 is not a lot of money.
future value = $70 x (1 + 5%)¹⁰ = $114.02
A cost-benefit analysis is a way
Answer:
Cost Benefit Analysis
Way of thinking that compares the cost of an action to its benefits.
Explanation:
I hope it helps.
Question 7: Which of the following is true about entrepreneurs and risk?
A. Entrepreneurs take more risks than the average person.
B. Risk is an objective assessment.
C. Entrepreneurs who take greater risks tend to be more successful than those who take fewer or smaller risks.
D. Most successful entrepreneurs are very calculated risk takers
Southwest Airlines is able to keep fares low, in part because of relatively low maintenance costs on its airplanes. One of the main reasons for the low maintenance costs is that Southwest flies only one type of aircraft: the Boeing 737. However, Southwest flies three different versions of the 737. Suppose Southwest decides to conduct a study to determine whether there is a significant difference in the average annual maintenance costs for the three types of 737s used. a. State a measurable dependent variable for such a study. b. State a factor that might affect the independent variable, and list at least three levels.
:
.
Explanation:
the reason maintenance cost are low is because the airline has just one type of aircraft which is boeing 737.
a. the measurable dependent variable for the study is the fares of the southwast airlines.
b. a factor that might affect the independent variable is the three versions that are being used by the southwest airlines. the independent variable here is the maintenance cost of the airlines. the factor has 3 different levels which are boeing -700, -800, -900ER
thank you!
Bosques Corporation has in stock 35,800 kilograms of material L that it bought fiveyears ago for $5.55 per kilogram. This raw material was purchased to use in a productline that has been discontinued. Material L can be sold as is for scrap for $1.67 perkilogram. An alternative would be to use material L in one of the company's currentproducts, Q08C, which currently requires 2 kilograms of a raw material that isavailable for $9.15 per kilogram. Material L can be modified at a cost of $0.78 perkilogram so that it can be used as a substitute for this material in the production ofproduct Q08C. However, after modification, 4 kilograms of material L is required forevery unit of product Q08C that is produced. Bosques Corporation has now received arequest from a company that could use material L in its production process. Assumingthat Bosques Corporation could use all of its stock of material L to make productQ08C or the company could sell all of its stock of the material at the current scrapprice of $1.67 per kilogram, what is the minimum acceptable selling price of materialL to the company that could use material L in its own production process
Answer:
material L should be sold for at least $3.80 per kg
Explanation:
alternative 1, sell material L at scrap value:
35,800 kg x $1.67 = $59,786
alternative 2, process material L and use it to produce Q08C:
processing costs = 35,800 x $0.78 = $27,924
modified L will replace 17,900 of another material that is worth 17,900 x $9.15 = $163,785
net additional income = $163,785 - $27,924 = $135,861
alternative 2 generates the highest additional income = $135,861 / 35,800 = $3.795 per kg.
the minimum acceptable price ≥ to the additional revenue generated by alternative 2, therefore, material L should be sold for at least $3.80 per kg
CostPercent Complete Materials costs$ 5,80050% Conversion costs$ 6,50030% A total of 7,700 units were started and 6,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs$ 85,300 Conversion costs$ 168,000 The ending inventory was 70% complete with respect to materials and 10% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:
Answer:
$11.49
Explanation:
The computation of cost per equivalent unit for materials for the month in the first processing department is shown below:-
Equivalent units for materials
= Units completed and transferred out + Units in ending inventory
(6,600 × 100%) + ((800 + 7,700 - 6,600) × 70%)
= 6,600 + $1,330
= 7,930 units
Cost per equivalent unit for materials
= (5,800 + $85,300) ÷ 7,930
= $11.49
