Answer: 13.72%
Explanation:
Here is the complete question:
You have 69,000. You put 25% of your money in a stock with an expected return of 10%, 39,000 in a stock with an expected return of 14%, and the rest in a stock with an expected return of 18%. What is the expected return of your portfolio?
The weight of the investment in stock with the expected return of 10% = 25% = 25/100 = 0.25
The weight of investment in the stock with an expected return of 14% = 39000/69000 = 0.57
Therefore, the weight of the investment in stock with an expected return of 18% = 1-(0.25+0.57) = 1 - 0.82 = 0.18
Expected return of the portfolio:
= (10 × 0.25) + (14 × 0.57) + (18 × 0.18)
= 2.5 + 7.98 + 3.24
= 13.72%
Use the following 10% interest factors. Present Value of Ordinary Annuity Future Value of Ordinary Annuity 7 periods 4.86842 9.48717 8 periods 5.33493 11.43589 9 periods 5.75902 13.57948 What amount should be recorded as the cost of a machine purchased December 31, 2020, which is to be financed by making 8 annual payments of $16000 each beginning December 31, 2021? The applicable interest rate is 10%. $182974 $92144 $85359 $112000
Answer:
The cost of the machine will be $85,358.88
Explanation:
To calculate the present value of the machine is given by:
Present value=$16000*Present value of annuity factor(10%,8)
=$16000*5.33493
= $85,358.88
Identify the information that the current Generally Accepted Accounting Principles and Auditing Standards require the financial statements of an entity to show for the reporting period:_________.1. Budgeting vs actual comparisons of key balance sheet and income statement accounts2. Market value of the entity's net assets3. Number of people employed by the entity4. Investments by and distribution to owners (ex: stockholders) during the period5. Financial Position at the end of the period6. Cash flows during the period7. Earnings for the period
Answer:
4. Investments by and distribution to owners (ex: stockholders) during the period.
5. Financial Position at the end of the period.
6. Cash flows during the period.
7. Earnings for the period.
Explanation:
The information that the current Generally Accepted Accounting Principles (GAAP) and Auditing Standards require the financial statements of an entity to show for the reporting period are;
1. Investments by and distribution to owners (ex: stockholders) during the period.
2. Financial Position at the end of the period.
3. Cash flows during the period.
4. Earnings for the period.
The Financial Accounting Standards Board (FASB) issued some standards, accounting principles, and procedures to be followed by public companies in the United States of America for reporting and recording statements of income, this is known as the Generally Accepted Accounting Principles (GAAP).
The GAAP is also adopted by the Securities and Exchange Commission (SEC) to measure, analyze and regulate the stock market.
Kelly received a $60,000 salary during 2017. Her federal income tax withholding rate was 20%, and the Social Security base amount for 2017 was $118,500.What is the total amount that her employer should have withheld in 2017?
A. $15,390
B. $16,590
C. $15,979
D. $6,849
Answer: B. $16,590
Explanation:
The FICA tax rate which is the combined Social Security and Medicare rate for 2017 was 7.65%.
Assuming a base of $118,500 this means that you are taxed on your first $118,500 in earnings.
Kelly only made $60,000 so the tax rate will apply to her $60,000.
Adding that to the 20% that she is due to pay on Federal Income tax the total amount her employer withheld was,
= (60,000 * 20%) + (60,000 * 7.65%)
= 12,000 + 4,590
= $16,590
Option B is correct.
James Company began the month of October with inventory of $19,000. The following inventory transactions occurred during the month:
A. The company purchased merchandise on account for $28,000 on October 12. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $540 were paid in cash.
2. On October 31, James paid for the merchandise purchased on October 12.
3. During October merchandise costing $18,600 was sold on account for $28,800.
4. It was determined that inventory on hand at the end of October cost $28,100.
Required:
1. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold.
2. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions.
Answer:
1. Entries using periodic inventory system
October 12
J1
Purchases $28,000 (debit)
Trade Payable$28,000 (credit)
j2
Freight Charges $540 (debit)
Cash $540 (credit)
October 31
Trade Payable $28,000 (debit)
Cash $28,000 (credit)
October 31
Trade Receivable $28,800 (debit)
Revenue $28,800 (credit)
October 31
Inventory $28,100 (debit)
Cost of Goods Sold $28,100 (credit)
2. Entries using periodic inventory system
October 12
J1
Merchandise $28,000 (debit)
Trade Payable$28,000 (credit)
j2
Freight Charges $540 (debit)
Cash $540 (credit)
October 31
Trade Payable $28,000 (debit)
Cash $28,000 (credit)
October 31
J1
Trade Receivable $28,800 (debit)
Revenue $28,800 (credit)
J2
Cost of Sales $18,600 (debit)
Merchandise $18,600 (credit)
October 31
Merchandise $28,100 (debit)
Cost of Goods Sold $28,100 (credit)
Explanation:
1. Entries using periodic inventory system
With periodic system, inventory valuation is done at end of a specific period.
2. Entries using periodic inventory system
Perpetual system is the method of recalculating the value of goods held after each transaction
Marx and Springsteen provides hair-cutting services in the local community. In February, the business cut the hair of 200 clients, earned $ 5,100 in revenues, and incurred the following operating costs:
Hair saloon expense: $500
Building rent expense: 1458
Utilities expense: 200
Depreciation expense--- Equipment: 50
Required:
What was the cost of service to provide one haircut?
Answer:
Cost of service to provide one haircut is $ 11.04
Explanation:
Hair saloon expense: $500
Building rent expense: $1,458
Utilities expense: $200
Depreciation expense --- Equipment: $50
Total operating cost = Hair saloon expense + Building rent expense + Utilities expense + Depreciation expense
= $500 + $1,458 + $200 + $50
= $ 2,208
Total hair cuts = 200
Therefore, cost per hair cut = Total operating cost ÷ Total hair cuts
= $2,208 ÷ $200
= $ 11.04
On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $480 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30.
Required:
Determine the price of the bonds on September 30, 2018.
Answer:
The price of the bonds today is $397.64 million (rounded off to two decimal places)
Explanation:
The price of a bond is calculated as the present value of the face value of the bond discounted at the market interest rate plus the present value of the annuity of interest payments related to the bond discounted at the market interest rate or the Yield to Maturity (YTM).
The formula for the price of the bond is attached hereby.
Semi annual coupon rate = 8%/2 = 4%
Semi annual market interest rate = 10% / 2 = 5%
Number of semi annual interest periods = 20 * 2 = 40 periods
The interest paid by the bond semi annually is = 480 * 0.04 = $19.2 million
Price of the bond = 19.2 * [(1 - (1+0.05)^-40) / 0.05] + 480 / (1+0.05)^40
Price of the bond = $397.6363855 million rounded off to $397.64 million
You have just turned 30 years old, have just received your MBA, and have accepted your first job. Now you must decide how much money to put into your retirement plan. You are required to specify a fixed percentage of your salary that you want to contribute. Assume that your starting salary is $ 70 comma 000 per year and it will grow 1.8 % per year until you retire. Every dollar in the plan earns 6.5 % per year. You cannot make withdrawals until you retire on your sixty-fifth birthday. After that point, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you turn 65. You estimate that to live comfortably in retirement, you will need $ 97 comma 000 per year starting at the end of the first year of retirement and ending on your 100th birthday. What percentage of your income do you need to contribute to the plan every year to fund your retirement income?
Answer:
Find attached
Explanation:
The present value of $97,000 per year after retirement for 35 years is computed thus:
=-pv(rate,nper,pmt,fv)
rate is the plan rate of return of 6.5%
nper is 35 years(years after retirement)
pmt is the amount required per year
fv is not applicable is taken as zero
=-pv(6.5%,35,97000,0)=$1,327,634.80
The amount needed in the account at retirement is the future value of the plan.
Regular yearly payment into the plan is =pmt
=pmt(rate,nper,-pv,fv)
=-pmt(6.5%,35,0,1327634.80)=$ 10,703.74
The percentage of income that must be contributed is found in the attached
Fox Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,150 2 1,030 3 1,520 4 1,880 a. If the discount rate is 11 percent, what is the present value of these cash flows
Answer:
The answer is $4,221.77
Explanation:
Present value = Cash flow/(1+r)^n
where n is the number of years
Cash flow 1:
$1,150/1.11^1
=$1,036
Cash flow 2:
$1,030/1.11^2
=$835.97
Cash flow 3:
$1,520/1.11^3
=$1,111.41
Cash flow 4::
$1,880/1.11^4
=$1,238.39
Present Value of all the cash flows is
$1,036 + $835.97 + $1,111.41 + $1,238.39
=$4,221.77
Ravelo Corporation has provided the following data from its activity-based costing system:
Activity Cost Pools Total Cost Total Activity
Assembly $498,520 44,000 machine-hours
Processing orders $54,263 1,100 orders
Inspection $77,589 1,100 inspection-hours
Data concerning the company's product L19B appear below:
Annual unit production and sales 430
Annual machine-hours 990
Annual number of orders 70
Annual Inspection hours 20
Direct materials cost $37.74 per unit
Direct labor cost $10.45 per unit
According to the activity-based costing system, the average cost of product L19B is closest to:
a. $4819 per unit
b. $82.31 per unit
c. $85.56 per unit
d. $7753 per unit
Answer:
Activity Cost Pools Total Cost Total Activity
Assembly $498,520 44,000 machine-hours
Processing orders $54,263 1,100 orders
Inspection $77,589 1,100 inspection-hours
Explanation:
Activity Cost Pools Total Cost Total Activity
Assembly $498,520 44,000 machine-hours
Processing orders $54,263 1,100 orders
Inspection $77,589 1,100 inspection-hours
The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of $49,700, net fixed assets of $248,300, current liabilities of $28,400, and long-term debt of $101,600.
A. Calculate Caraway's stockholders' equity.B. What is the firm's net working capital?
Answer:
A.
$168,000
B.
$21,300
Explanation:
A.
As per accounting equation
Assets = Liabilities + Equity
Equity = Assets - Liabilities
Placing values in the equation
Equity = ( Current assets + Net Fixed Assets ) - ( Current Liabilities + Long term debt )
Equity = ( $49,700 + 248,300 ) - ( 28,400 + 101,600)
Equity = $168,000
B.
Net Working capital is the net of current assets and current liabilities of the company.
Use following formula of net working capital
Net working capital = Current assets - current liabilities
Net working capital = $49,700 - 28,400
Net working capital = $21,300
Jamal just inherited some money from a distant cousin overseas. He would like to put some of it in a bond and is looking at two choices. Bond A has five years to maturity, a semiannual coupon of 6% and a face value of $1,000. Bond B has ten years to maturity, an annual coupon of 4% and a face value of $1,000. Jamal knows that the rate expected in the marketplace for investments similar to these is 5%.
1. What is the present value of the coupon stream on each bond?
2. What is the present value of the face value on each bond?
3. What is the total value of each bond?
4. If Jamal sees the two bonds in the Wall Street Journal and they are both priced at 99, which bond should he buy?
Answer:
i. = $262.56 , = $308.87
ii. = $781.198 , = $613.91
iii. Bond A = $1,043.76 , Bond B = $922.78
Explanation:
(i) Present Value of Coupon Payment
Bond A :- Semiannual Coupon Amount = $1,000 * 6% * 6 / 12 = $30
Total Semiannual Period = 5 * 2 = 10
Semiannual Interest = 5% / 2 = 2.5%
Present Value of Coupon Payment = $30 * PVAF (2.5% , 10)
= $30 * 8.752
= $262.56
Bond B :- Annual Coupon Amount = $1,000 * 4% = $40
Annual Periods = 10
Annual Interest = 5%
Present Value of Coupon Payment = $40 * PVAF ( 5% , 10)
= $40 * 7.72
= $308.87
(ii) Present Value of Face Value of Bond
Bond A = $1,000 * PVF (2.5% , 10 periods)
= $1,000 * 0.7812
= $781.198
Bond B = $1,000 * PVF (5% , 10)
= $1,000 * 0.6139
= $613.91
(iii) Total Value of Each Bond
Bond A = $262.56 + $781.198 = $1,043.76
Bond B = $308.87 + $613.91 = $922.78
(iv)If Jamal sees the two bonds in the Wall Street Journal and they are both priced at 99, he should consider:
If the Bond Current Price is lower than Bond Fair Price then he should Buy the Bond
If the Bond Current Price is higher than Bond Fair Price then he should not buy the bond
Market Price of Bond = $99
He should buy Bond A But not Bond B
If the Apple corporation sells a bond it is a. selling shares of ownership directly to the public. b. borrowing indirectly from the public. c. borrowing directly from the public. d. selling shares of ownership indirectly to the public.
Answer:
c. borrowing directly from the public.
Explanation:
If the Apple corporation sells a bond it is borrowing directly from the public. That is because corporate bonds are exactly that, they are bonds issued by a corporation in which the individual buying them is basically loaning money to the corporation which they will receive back the full amount that they loaned out as soon as the bond matures. Therefore by buying a corporate bond you are directly loaning that corporation money to finance their operations.
If Apple Corporation sells a bond, it is borrowing indirectly from the public. Therefore, the correct option is b.
A bond is a debt instrument issued by a corporation or government entity to raise funds. When Apple sells a bond, it is essentially borrowing money from investors or the public. In return, Apple promises to repay the principal amount of the bond along with periodic interest payments. Bonds do not involve selling shares of ownership in the company, as in the case of issuing stocks. Instead, bonds represent a form of debt financing for the issuer.
Thus, the ideal selection is option b.
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A consumer has $130 in monthly income to be spent on two goods Z and B. The price of good Z (Pz) is $8.00. The Marginal Rate of Transformation (MRT) is equal to minus−2. That is 2 units of good B can be traded for 1 unit of good Z. What is the price of good B in $?
Answer:
Price of B is $4
Explanation:
Marginal rate of transformation is defined as the amount of a good x has to stop being produced inorder to produce a certain amount of a good y. Factors of production and technology used are assumed to be constant.
In this scenario the marginal rate of transformation is -2, that is 2 units of good B can be traded for 1 unit of good Z, mathematically
2 * Pb = Pz
Substitute price of Z
2* Pb = $8
Pb= 8 ÷ 2
On= $4
Laurie saved for six months to have enough money to buy a new designer outfit to wear to a special party. She had to travel to a larger city to purchase this outfit, but it was worth it to her because it made her feel beautiful and confident. The difference between the benefits Laurie perceived from this purchase and the cost to her to acquire these benefits describes her _____.
Answer: B) customer value
Explanation:
Customer Value refers to the perception of what the good in question is worth to the customer buying it as opposed to other alternatives. Essentially, how much is it worth to the buyer vs the opportunity costs of buying it. The customer values a good when they feel like they gained more benefits than they paid for or that it was an equal trade-off and so do not mind the cost.
Laurie gained confidence and felt beautiful as a result of the attire and so decided that the cost was worth it.
Worth refers to whether the consumer feels he or she received more benefits and services than he or she paid for.
What is the customer Value?Customer value is the financial compensation that a customer receives in exchange for the amount paid for a market item.
In general, a client evaluates the net benefits of one item to those of its prospective alternatives. It aids in determining whether the client believes they received adequate value for the cost of the offering.
Thus, Option B is correct about Laurie.
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There are many perfumes on the market, but Demeter, a superior brand of perfume, has memorable scents that leads to emotional ties. Which element of the marketing plan is being considered when the marketing manager decided initially to market the perfume in a limited number of very exclusive specialty stores?
Answer:
Place
Explanation:
The four P's of marketing is a number of tactics employed in a marketing plan to achieve better sales of a product. These four P's include; Price, Place, Promotion, and Product. The place factor takes note of the location where the target customers are most likely to be reached. To achieve better sales of a product, it is very important that the right location is chosen so that consumers who are interested in it can access it easily. For example, it would make no sense to sell grocery products in a boutique. That is not where the target customers are.
So, when the marketing manager of Demeter Perfumes decided to market the perfume in a limited number of very exclusive specialty stores, it is because that place is where the target market (most likely, high income earners), can be found easily.
Light-emitting diode (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.45 and lasts for 1,000 hours. A 7-watt LED, which provides the same light, costs $2.25 and lasts for 40,000 hours. A kilowatt-hour of electricity costs $.121, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type (you can get information on your rates from your local power company). An industrial user in West Virginia might pay $.04 per kilowatt-hour whereas a residential user in Hawaii might pay $.25. You require a 10 percent return and use a light fixture 500 hours per year. What is the break-even cost per kilowatt-hour?
Answer:
(A) For incandescent bulb, your break even cost is $32.67
(B) With LED bulb, your break even cost is $3.8115
Conclusion: It makes financial sense to use LED bulbs.
Explanation:
We start by checking the cost of your electricity bill when you use incandescent bulb and when you use LED bulb.
Since your answers are to be in kilowatt hour, we transform the watt measurement of the bulbs into kilowatt thus:
60watt incandescent bulb = 0.06kw
7watt led bulb = 0.007kw
National average cost of electricity per kilowatt hour is $1.21
Cost per kWh using incandescent bulb is 1.21 × 0.06 = $0.0726
Cost per kWh using led bulb is 1.21 × 0.007 = $0.00847
(A) WITH INCANDESCENT
0.06kw × 500hrs/year = 30kwhrs/year
Cost of electricity bill = 1.21 × 30 =$36.3
Your 10% return = $3.63
Break even cost per year, in kWh is = 36.3 - 3.63 = $32.67
(B) WITH LED
0.007kw × 500hrs/year = 3.5kwhrs/year
Cost of electricity bill = 1.21 × 3.5 = $4.235
Your 10% return = $0.4235
Break even cost per year in kWh is = 4.235 - 0.4235
(C) The incandescent bulb costs $0.45 but draws you a bill of $32.67 a year WHILE the led bulb costs $2.25 but draws you a bill of $3.8115
We conclude hence, that light-emitting diode bulbs make financial sense. Overlook the cost of purchasing the bulb because it uses less kilowatts per hour and draws you a very low bill, compared to the incandescent bulb!
Post the entries in the general journal below to the Accounts Receivable account in the general ledger and to the appropriate accounts in the accounts receivable ledger for Calderone Company.
Assume the following account balances at January 1, 2019
Accounts Receivable (control account) $7,880
Accounts Receivable-John Gibrone 4, 780
Accounts Receivable-Jim Garcia 2,090
Accounts Receivable-June Lin. 1,01
General Journal
Date 2019 Description Post Debit Credit
Ref
Jan 8 Cash 470
Accounts Receivable/John Gibrone 470
Received partial payment or account from John Gibrone
20 Sales Returns and Allowances 300
Sales Tax Payabl 24
Accounts Receivable/3im Garcia 324
Accept return of defective merchandis, Credit
Memorandum 121; original sale
made on Sales S1ip 11102 of
December 27, 2018 1.
Prepare a schedule of accounts recelvable for Calderone Company at January 31, 2019. 2. Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?
Answer:
1. Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.
Since there is not enough room here, I prepared an excel spreadsheet. Since we are not told the credit terms of the sales, I assumed all the sales were more not past due.
2. Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?
Of course, the balance of the accounts receivable control account should equal the total balance of the accounts receivable schedule. Even if some accounts are written off (bad debt), both the accounts receivable schedule and the general ledger accounts receivable should show that write off.
Explanation:
Once you have collected data for a message, you’ll need to find a way to organize it. Well-organized messages group similar ideas together, allowing readers to see relationships and follow arguments. You can use two primary techniques for organizing your information: a scratch list and an outline. Answer the question based on the following scratch list.
1. The Boston Hotel
2. High-end linens
3. 600-thread-count sheets
4. Coffeemaker and selected teas
5. Imported beer
6. Fresh-squeezed juices
7. Affordability
8. Food and drink
9. Double-thick bath towels
10. Silk pillowcases
11. Raw silk curtains with gold embellishments
12. $100/night four-star rooms
13. Free snacks, shampoo, and conditioner
14. Free wireless Internet
Which group includes specific supporting detail that could be added to the previous scratch list?
a. High-end linens; free wireless Internet; free snacks, shampoo, and conditioner
b. Safety, comfort, half-price Tuesday
c. Sparkling water, evening wine tasting, four-star hotel restaurant
d. Business messages typically follow either a direct strategy or an indirect strategy. The direct strategy, or frontloading, places the main idea at the beginning of a message.
e. Using a direct opening strategy .
f. An indirect strategy places the main idea after an explanation or reason.
Answer:
c. Sparkling water, evening wine tasting, four-star hotel restaurant
Explanation:
The scratch list in general includes a series of services that are provided by a Hotel (the Boston Hotel). Because of the items included in the list, it seems that the Hotel is quite fancy.
Numeral c would be a good addition to the scratch list, because it lists items that would fall in place for the type of Hotel being described: sparking water, evening wine tasting, and a the mention of a four-star hotel restaurant.
A shoe manufacturer is producing at a point where its marginal costs are $5 and its fixed costs are $5000. At the current price of $10 it is producing 500 pairs. If the demand goes down, such that they can now only charge $8 per pair, should they continue production in the short run?
Answer:
In a short time, as long as the product line can be sold with a positive contribution margin, the company should continue selling it.
Explanation:
Giving the following information:
UNitary variable cost= $5
Fixed costs are $5000.
Sales= 500 units
Selling price= $8
First, we need to calculate the current income:
Income= 500*(8-5) - 5000= -$3,500
In a short time, as long as the product line can be sold with a positive contribution margin, the company should continue selling it. Demand can increase and income could become positive.
A part of a business's message that distinguishes it from all its competitors
is referred to as what?
Answer: Brand.
Explanation:
A brand usually a logo, name, word or sentence or the comnbination is a company's valuable assets that distinguishes its their product from its competitors. Overtime, A Brand which proves credibility will promote the company's worth and value and endear potential buyers to the benefit its owners and shareholders. A brand becomes a trademark when legal protection is conferred on it.
Answer:
unique selling proposition
Explanation:
A project manager is preparing two documents for risk management. One contains sources of overall project risk and also summary information on individual risks. The second describes individual risks identified. What name should the project manager give to the first document
Answer: Risk Report
Explanation:
A Risk Report for a project contains all the risk that the project is exposed to. This includes both project risk as well as individual risks related to the components projects in the overall project.
A Risk Report details the risks such as Supplier failure, Inflation, Pending Government Regulations and the like. It then takes these and summarizes them for presentation to those who require this information in the company so that appropriate safeguards may be set up and precautions taken.
This describes the first document and so should be what the Project Manager names it.
A company began its fiscal year with inventory of $191,000. Purchases and cost of goods sold for the year were $950,000 and $984,000, respectively. What was the amount of ending inventory
Answer:
Ending inventory= $157,000
Explanation:
Giving the following information:
Beginning inventory= $191,000.
Purchases and cost of goods sold for the year were $950,000 and $984,000.
To calculate the ending inventory, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
984,000= 191,000 + 950,000 - ending inventory
984,000= 1,141,000 - ending inventory
Ending inventory= $157,000
Mary runs an ad in the paper offering a $5 reward for the return of her lost dog, Sparky. Mary has made a promise to pay the person who performs the act of returning Sparky. This is a(n) _____ contract. Select one: a. quasi b. implied c. bilateral d. unilateral
Answer:
This is a Unilateral contract
Explanation:
Mary has made a promise to pay the person who performs the act of returning Sparky therefore this is an example of a unilateral contract.
A unilateral contract is a type of contract agreement where an offeror such as Mary makes a promise to pay after the performance of a specified act, which is to return her dog Sparky
The evaluation of a firm's strengths, weaknesses, opportunities, and threats is called a SWOT analysis. A SWOT analysis can be a valuable tool in the development of a marketing plan, but too often the SWOT analysis is not well thought out and proves to be an ineffective waste of time. Perhaps the most common mistake when conducting a SWOT analysis is the failure to separate internal issues from external issues. The strengths and weaknesses aspects of the SWOT analysis focus on internal capabilities. The opportunities and threats aspects focus on the external environment. Select the most appropriate category for the descriptors below.1. Post office closings2. JPM has the superior information technology infrastructure3. Increasing demand for international packages4. JPM has an excellent workforce and human resource department5. Potential global economic recession6. JPM has increasing labor costs7. JPM has less fuel-efficient planes8. Increasing fuel costs due to turmoil in the Middle East
Answer: Please refer to Explanation
Explanation:
SWOT ANALYSIS is indeed a very useful matrix for evaluating a firm's strong points.
The Strengths and Weaknesses portion focus on the internal Environment with the Strengths looking at what the company does better than other companies and has a competitive advantage in while weaknesses look at where the company is lacking.
The Threats and Opportunities focus on the External Environment. The Threats refer to any and every potential source of negative effects on the company while Opportunities are the potential chances that a company can capitalise on to make themselves more profitable.
Classifying the above,
1. Post office closings. OPPORTUNITIES
This is because JPM as a Delivery Service can then take over the customers that can no longer use the closed Post Offices.
2. JPM has the superior information technology infrastructure. STRENGTHS.
This is an area that JPM excels in making it a strength.
3. Increasing demand for international packages. OPPORTUNITIES.
This is a chance for JPM to grow as they can capitalise on this increased demand to increase profitability.
4. JPM has an excellent workforce and human resource department. STRENGTH.
JPM has a strength in this area because this is something that they are good at.
5. Potential global economic recession. THREATS.
This is a Threat to JPM as it could potentially affect their business negatively.
6. JPM has increasing labor costs. WEAKNESSES.
This is an internal problem that is a weakness for JPM. Rising labour costs means lower profits so they should be careful.
7. JPM has less fuel-efficient planes. WEAKNESSES.
Less fuel efficient planes means that they burn more fuel to deliver goods around the world so they have more expenses. This is a weakness that needs to be curtailed.
8. Increasing fuel costs due to turmoil in the Middle East. THREATS.
This is a threat because it is from the External Environment but threatens to increase the costs of deliveries for JPM.
Dollar-value LIFO:
a. Starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs.
b. Increases the recordkeeping costs of LIFO.
c. Only is allowed for internal reporting purposes.
d. None of these answer choices are correct.
Answer:
a. Starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs.
Explanation:
Dollar-value LIFO refers a technique of accounting that employed for inventory based on the last-in-first-out model.
To obtain the dollar-value LIFO, the conversion price index that will be used to calculate the LIFO cost layer for each period must be calculated first.
Therefore, Dollar-value LIFO starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs.
An engineer analyzing cost data about hydrogen sulfide monitors discovered that the information for the first three years was missing. However, he knew the cost in year 4 was $1250 and that it increased by 5% each year thereafter. If the same trend applied to the first three years, the cost in year 1 was:
Answer:
Find below full question:
An engineer analyzing cost data about hydrogen sulfide monitors discovered that the information for the first three years was missing. However, he knew the cost in year 4 was $1250 and that it increased by 5% each year thereafter. If the same trend applied to the first three years, the cost in year 1 was:
a. $1312.50
b. $1190.48
c. $1028.38
d. $1079.80
Option D,$ 1,079.80 is correct
Explanation:
The present value formula can be used to determine the cost in year one as follows:
PV=FV*(1+r)^-n
FV is the future cost in year 4 which is $1,250
r is the growth rate of cost per year which is 5%
n is the duration of time involved,it is 3 because the difference between year 4 and year 1 is 3
PV=$1250*(1+5%)^-3
PV=$1250*(1.05)^-3
PV=$1250*0.863837599
PV=$ 1,079.80
The cost of the hydrogen sulfide monitor in year one is $ 1,079.80
In essence option D,$ 1,079.80 is correct
Which is not an example of an intangible asset?
1_A trademark
2_A computer
3_A patent
4_A copyright
An intangible asset excludes a computer. Thus the correct answer is (2).
What is an intangible asset?An intangible asset is referred to as a thing that an individual is unable to see or touch. An intangible asset is a lack of physical appearance. One can not transfer them from one location to another.
One can able touch or see a personal computer so it is not an intangible asset. Therefore, option (2) is appropriate.
Learn more about intangible assets, here:
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Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in China. There are now more than 3,700 restaurants in 650 Chinese cities, and KFC has a 40 percent market share of the entire fast-food industry there. Yum! Brands China owns and directly manages about 90 percent of its Chinese stores, so it appears that the company prefers __________ in this market.
Answer:
Direct Investment
Explanation:
DIRECT INVESTMENT can be defined as an investment in which a company, organisation or business owner decide to venture into business with another country which is know as foreign business enterprise in order to acquire and obtain a controlling interest in the enterprise which is why DIRECT INVESTMENT is a way of controlling the ownership of a business in one country by an another entity which is based in another country.
Most Investors use the DIRECT INVESTMENT way to put money into a business operating in another country.
Therefore based on the information given the company prefers DIRECT INVESTMENT method which is why the parent company of KFC has more than 3,700 restaurants in 650 Chinese cities in which the Brands China owns and directly manages about 90 percent of its Chinese stores.
Hence this method is called the DIRECT INVESTMENT method .
Steeler Company has issued bonds that pay semiannually with the following characteristics: Coupon Yield to Maturity Maturity Duration 10% 10% 10 years 6.76 years If the yield to maturity decreases to 8.045%, the expected percentage change in the price of the bond using modified duration would be ________.
Answer:
the expected percentage change in the price of the bond using modified duration would be 12%
Explanation:
A= Semi annually= 2
YM= Yield to Maturity= 10%
M= Maturity= 10%
MtD= Maturity duration= 6.76 years
Modified duration (MD)= MtD/1+YM/A
MD= 6.76/1+10%/2= 6.76/1.05= 6.438 approx 6.44 years
Change in Yield to maturity = 8.045%- 10%= -1.955%
Change in percentage Price= -Modified duration*Change in Yield to maturity
Change in percentage Price= -6.44*(--1.955%
)= 12.59%
A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 Project X -$1,000 $100 $320 $400 $700 Project Y -$1,000 $1,000 $110 $55 $45 The projects are equally risky, and their WACC is 13%. What is the MIRR of the project that maximizes shareholder value
Answer:
Project X maximizes shareholder value (highest NPV) and has a MIRR of 14.27%.
Explanation:
year cash flow project X cash flow project Y
0 -1,000 -1,000
1 100 1,000
2 320 110
3 400 55
4 700 45
WACC = 13%
Using an excel spreadsheet I calculated the projects' NPV, IRR and MIRR
NPV IRR MIRR
project X $45.65 15% 14.27%
project Y $36.82 16% 14.03%
The modified internal rate of return (MIRR) considers that the project's cash inflows are invested at the company's WACC and the initial investment is financed at a certain debt rate (in this case the same WACC).
