On January 2, 2021, Worth Co. issued at par $2,000,000 of 5% convertible bonds. Each $1,000 bond is convertible into 10 shares of common stock. No bonds were converted during 2021. Worth had 200,000 shares of common stock outstanding during 2021. Worth's 2021 net income was $900,000 and the income tax rate was 30%. Worth's diluted earnings per share for 2021 would be (rounded to the nearest penny) a. $4.85 b. $4.55 c. $4.41 d. $4.50

Answers

Answer 1

The basic earning per share for Worth Co. in 2021 as per given net income is equal to option d. $4.50

Net Income = $900,000

Preferred Dividends = $0

Weighted Average Common Shares Outstanding = 200,000

To calculate diluted earnings per share,

Determine the impact of potentially dilutive securities,

such as convertible bonds, on the company's earnings per share.

Since no bonds were converted during 2021, the diluted earnings per share will be the same as the basic earnings per share.

The basic earnings per share for Worth Co. can be calculated as follows,

Basic Earnings per Share

= (Net Income - Preferred Dividends) / Weighted Average Common Shares Outstanding

⇒ Basic Earnings per Share = ($900,000 - $0) / 200,000

⇒ Basic Earnings per Share = $4.50

Therefore, worth's diluted earnings per share for 2021 is equal to option (d) $4.50.

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Related Questions

as the amount of an activity increases, its marginal benefit:multiple choice question.O increases.O stays the same.O is infinite.O decreases.

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As the amount of an activity increases, its marginal benefit decreases. Therefore option D is correct i.e., Decrease.

The additional advantage a person gets from consuming an extra unit of a food or performing an extra activity is known as a marginal benefit. The marginal utility of an activity diminishes as the volume of that activity rises. This is due to the fact that each subsequent unit of the activity offers less benefit than the one before it.

The marginal utility of an activity declines as its volume rises for a number of reasons. People's limited time, finances, and attention are one factor.

People have less time, energy, and focus to devote to other activities when they participate in more of one activity. As a result, the activity's marginal utility diminishes as more individuals forego alternative opportunities to participate in it.

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Distribution occurs
a. Near a Market Bottom
b. Near a Market Top
c. When Short Interest Declines
d. At the end of the month

Answers

Distribution occurs when institutional investors and large traders sell a large number of securities, typically near a market top, resulting in the price of the security falling. Option B

The statement "distribution occurs" refers to the selling of a large number of securities by institutional investors or large traders, which results in the price of the security falling. This selling can occur for various reasons, including a change in market sentiment, a change in the company's fundamentals, or simply to take profits.

Distribution typically occurs near a market top rather than a market bottom. This is because at market tops, prices have risen significantly, and many investors are looking to take profits. Institutional investors and large traders may also want to liquidate their positions at these levels to lock in gains and reduce their exposure to potential downside risks.

Short interest declining is not necessarily an indication of distribution, as short interest can decline for various reasons. Short interest is the number of shares sold short by investors, and a decline in short interest can occur due to short sellers covering their positions, or due to a decrease in demand to borrow shares for shorting.

The end of the month is also not necessarily a time when distribution occurs. While some traders may have positions that they want to close out before the end of the month for various reasons, this does not necessarily result in distribution. Option B

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The net present value method clearly demonstrates that the NPV of a project increases as the discount rate decreases. O A True O B. False Reset Selection

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The statement "The net present value method clearly demonstrates that the NPV of a project increases as the discount rate decreases." is true because the NPV calculation involves discounting future cash flows of the project using the discount rate.

The net present value (NPV) method is a capital budgeting technique used to determine the value of an investment by calculating the present value of its expected future cash flows, discounted at a given rate. The discount rate used in the calculation represents the cost of capital or the minimum rate of return that investors require to invest in the project.

When the discount rate decreases, the present value of future cash flows increases, resulting in a higher NPV for the project. This is because a lower discount rate implies that the project's future cash flows are worth more today, making the investment more attractive.Conversely, if the discount rate increases, the present value of future cash flows decreases, resulting in a lower NPV for the project. This is because a higher discount rate implies that the project's future cash flows are worth less today, making the investment less attractive.

Therefore, the NPV method clearly demonstrates that the NPV of a project increases as the discount rate decreases, and vice versa. Therefore the given statement is true.

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the process that describes the method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage is called what?

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The process of creating, implementing, and devising strategies to fulfil the objectives and goals of a business is known as strategic management.

Strategic management refers to the process by which managers develop and carry out a plan that can result in a long-term competitive advantage. It entails examining both internal and external components that have an impact on the organisation and creating plans to deal with them.

The identification of an organisation's core competencies, or the distinctive skills and assets that offer the organisation a competitive edge over its competitors, is a crucial component of strategic management.

Having an unambiguous purpose and vision for the organisation is another crucial step since it directs decision-making and ensures that all actions are consistent with the business's overall plan.

The ultimate objective of strategic management is to give the company a long-lasting competitive edge that will allow it to beat its rivals and succeed long-term in the market.

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The process of creating, implementing, and devising strategies to fulfil the objectives and goals of a business is known as strategic management.

Strategic management is the process through which managers create and implement a strategy that can result in a long-term competitive advantage. It comprises investigating both internal and external factors that have an influence on the organization and developing plans to address them.

Identifying an organization's core competences, or the specific talents and assets that provide the organization with a competitive advantage over its competitors, is a critical component of strategic management.

Another critical step is to have an unmistakable mission and vision for the organization since it leads decision-making and guarantees that all activities are aligned with the overall strategy of the firm.

The ultimate goal of strategic management is to provide the organization with a long-term competitive advantage that will allow it to outperform its competitors and flourish in the long run.

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4) Developing economies with exchange rates controlled by government intervention is called a a floating exchange rate system b International monetary system с sterling-based gold standard system d d gold standard system e fixed exchange rate system 5) Why would the central bank of a developed country intervene in that country's foreign exchange market? a To decrease the country's reliance on foreign loans b To maintain the value of its currency within acceptable limits To encourage importing d To decrease the country's reliance on foreign aid e To encourage exporting

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4) Developing economies with exchange rates The correct answer is e) fixed exchange rate system. 5)  b) maintain the value of its currency within acceptable limits.

4) The correct answer is e) fixed exchange rate system.

Developing economies with exchange rates controlled by government intervention is called fixed exchange rate systems. In this system, the government or central bank maintains the exchange rate within a certain range by buying or selling foreign currencies as needed.

5) The central bank of a developed country would intervene in that country's foreign exchange market to b) maintain the value of its currency within acceptable limits.

By doing so, the central bank aims to promote economic stability and control inflation. Intervention can involve buying or selling foreign currencies to influence the exchange rate, thus affecting the country's trade balance and overall economic performance.

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Typical capital budgeting decisions include ______ decisions.
employee hiring and firing
cost reduction
lease or buy
equipment selection
product and service pricing

Answers

Typical capital budgeting decisions include "lease or buy" and "equipment selection" decisions.

These decisions involve evaluating long-term investments and their potential to generate cash flows and profitability for a company. In contrast, employee hiring and firing, cost reduction, and product and service pricing are operational decisions that do not fall under capital budgeting.

Lease or buy is a decision-making process that involves choosing between leasing or buying an asset, such as a car or equipment.

Leasing involves paying regular payments to use an asset for a fixed period of time, but the lessee does not own the asset at the end of the lease term. Leasing can provide lower upfront costs, fixed payments, and flexibility to upgrade to newer models, but can result in higher overall costs and restrictions on usage.

Equipment selection takes into account various factors, such as the size and complexity of the task, the capabilities and limitations of the available equipment, the cost and availability of the equipment, the required maintenance and repair needs, and the safety and environmental impact of the equipment.

The goal of equipment selection is to choose the most suitable equipment that can perform the task effectively and efficiently, with minimal downtime and cost, and with the least possible risk of injury or damage to the equipment or the environment. Proper equipment selection can help optimize productivity, reduce costs, and enhance safety in the workplace.

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Whispering Winds Company's standard labour cost of producing one unit of product DD is 5 hours at the rate of $13.40 per hour. During August, 52,015 hours of labour are incurred at a cost of $13.80 per hour to produce 10,300 units of product DD. (a) Calculate the total labour variance. Total labour variance ta $

Answers

The total labour variance for Whispering Winds Company during August is $27,707. This variance indicates that the actual labour cost was higher than the standard labour cost for the actual production of product DD.

To calculate the total labour variance, follow these steps:

1. Determine the standard labour cost per unit:

The standard labour cost of producing one unit of product DD is 5 hours at the rate of $13.40 per hour. Therefore, the standard labour cost per unit is 5 hours * $13.40 per hour = $67.

2. Calculate the actual labour cost:

During August, 52,015 hours of labour are incurred at a cost of $13.80 per hour. The actual labour cost is 52,015 hours * $13.80 per hour = $717,807.

3. Calculate the standard labour cost for actual production:

The company produced 10,300 units of product DD in August. The standard labour cost for actual production is 10,300 units * $67 per unit = $690,100.

4. Calculate the total labour variance:

Subtract the standard labour cost for actual production from the actual labour cost. The total labour variance is $717,807 - $690,100 = $27,707.

In conclusion, the total labour variance for Whispering Winds Company during August is $27,707. This variance indicates that the actual labour cost was higher than the standard labour cost for the actual production of product DD.

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The issuance of stock to fund a project tends to:
a. have no effect on the previous shareholders.
b. create costless benefits for the firm.
c. cause any potential gains to the firm from the project to be lost.
d. affect future dividends but not the appreciation realized by previous shareholders.
e. dilute the capital gains that would have been earned by the previous shareholders.

Answers

Issuing stock to fund a project dilutes capital gains that previous shareholders would have earned, as their ownership percentage decreases. Thus option E is correct.

When stock is issued to finance a project, the ownership stake and consequent financial gains of prior investors may be diluted. This occurs as a result of the new shares increasing the total number of outstanding shares, which reduces the current shareholders' percentage ownership.

The future dividends paid to each shareholder may also be impacted, and the earnings per share may decrease as a result. However, the issuing of stock can also give the company extra funding to explore new endeavours, expand business operations, or settle debts, which might ultimately be advantageous for both the company and its shareholders.

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Which of these dates occurs last in time (when arranged in the chronological order)?
A. Payment date
B. Ex-dividend date
C. Record date
D. Dividend declaration date

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A: Payment date occurs last in time when arranged in the chronological order.

Payment date is the date on which a company actually pays out the declared dividend to the shareholders. The ex-dividend date is set by the stock exchange and is usually two business days before the record date. On the ex-dividend date, the stock price is adjusted downward by the amount of the dividend so that buyers of the stock do not receive the dividend payment. The record date is set by the company and is the date on which the company checks its records to determine the shareholders of record who are eligible to receive the dividend.

Finally, the dividend declaration date is the date on which the company’s board of directors announces the amount and timing of the dividend payment.

The answer is option A.

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regarding the use of a spreadsheet for the preparation of the statement of cash flows, in panel b, the depreciation expense is entered on the ______

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The depreciation expense is typically entered on the "Income Statement" or "Profit and Loss Statement" in a spreadsheet used for the preparation of the statement of cash flows.

Depreciation is a non-cash expense that is recorded on the income statement to reflect the decrease in value of a company's assets over time. Although it is not a cash outflow, it is subtracted from net income to arrive at operating cash flow in the statement of cash flows, as it represents a use of resources in generating revenue.

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Briefly describe the 3 parts of the Product Solutions Selling Model, and explain which part is the most critical for success in today's business world.

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Three steps make up the Product Solutions Selling Model: determining the needs of the client, offering a solution, and closing the sale.

The Product Solutions Selling Model consists of three parts: identifying customer needs, proposing a solution, and closing the deal. While all three parts are important, the most critical for success in today's business world is identifying customer needs. With the rise of competition and customer demands, it's important to understand what the customer wants and needs before proposing a solution. By identifying customer needs, businesses can tailor their solution to meet those specific requirements, increasing the likelihood of a successful sale. This customer-centric approach is essential for businesses to remain competitive in today's fast-paced business world.

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pete invests $1 million in new robots to improve the efficiency of mattel’s toy manufacturing process.

Answers

Pete's investment of $1 million in new robots is aimed at improving the efficiency of Mattel's toy manufacturing process.

By automating some of the manufacturing tasks, the robots can reduce the amount of time and labor required to produce the toys, while also improving the precision and consistency of the manufacturing process.

This can lead to significant cost savings for Mattel, as well as a faster turnaround time for producing new toys.

In addition, the investment in new technology can help Mattel stay competitive in the toy industry by allowing them to produce higher quality toys at a faster pace than their competitors.

This can lead to increased sales and market share for Mattel, as well as improved customer satisfaction due to the higher quality and faster delivery of their products.

Overall, Pete's investment in new robots is a smart move for Mattel, with the potential to provide significant benefits in terms of cost savings, efficiency, and market competitiveness.

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How many years does it take for a deposit to grow to $50,000, if we deposit $15,000 today in an account paying 8% annual interest?A. 11.20 Years B. 15.64 Years C. 10.88 Years D. 17.51 Years

Answers

The correct answer is C. 10.88 years. It takes 10.88 years for a deposit to grow to $50,000, if we deposit $15,000 today in an account paying 8% annual interest

To find out how long it takes for a deposit to grow to $50,000 with an initial deposit of $15,000 at an annual interest rate of 8%, we can use the formula for compound interest.

A = P(1 + r/n)^(nt)

where:

A = the ending amount ($50,000)
P = the principal (initial deposit of $15,000)
r = the annual interest rate (8% or 0.08)
n = the number of times the interest is compounded per year (usually 12 for monthly compounding)
t = the time in years

Plugging in the values, we get:
$50,000 = $15,000(1 + 0.08/12)^(12t)

Dividing both sides by $15,000, we get:

3.33333 = (1 + 0.08/12)^(12t)

Taking the natural logarithm of both sides, we get:

ln(3.33333) = 12t ln(1 + 0.08/12)

Solving for t, we get:

t = ln(3.33333)/(12 ln(1 + 0.08/12)) = 10.88 years

Therefore, The deposit would increase to $50,000 over the course of 10.88 years.

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Security Returns
If State Occurs
State of Probability of Economy State of Economy Roll Ross
Bust .60 9 % 13 %
Boom .40 20 5 Calculate the expected return on a portfolio of 40 percent Roll and 60 percent Ross by filling in the following table: (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
State of
Economy Probability of
State of Economy Portfolio Return
If State Occurs Product Bust .60 % %
Boom .40 % %
E(RP) = %

Answers

The expected portfolio return (E(RP)) is 3.22%.

To calculate the expected return on a portfolio of 40% Roll and 60% Ross, we need to first calculate the portfolio return for each state of the economy.

For the Bust state, the portfolio return would be -1.2% (0.4 x 5% for Ross and 0.6 x 13% for Roll). The product of the probability of the Bust state and the portfolio return is -0.78% (-1.2% x 60%).

For the Boom state, the portfolio return would be 10% (0.4 x 20% for Ross and 0.6 x 5% for Roll). The product of the probability of the Boom state and the portfolio return is 4% (10% x 40%).

Adding the two products together gives us an expected portfolio return (E(RP)) of 3.22%.

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common types of analysis that help assess a specific company's performance include comparisons: multiple select question. to the same industry between companies over time to another industry

Answers

When assessing a specific company's performance, there are several common types of analysis that can be used to gain insights and make informed decisions. Some of the most useful and commonly used types of analysis include:

1. Industry Comparison Analysis - This involves comparing a company's performance against that of other companies in the same industry. This type of analysis helps to highlight strengths and weaknesses relative to competitors and identify areas where improvements can be made.
2. Company Trend Analysis - This involves analyzing a company's performance over time to identify trends and patterns in key performance indicators. This can help to identify areas where a company is improving or struggling and guide decision-making accordingly.
3. Benchmarking Analysis - This involves comparing a company's performance against industry benchmarks or best practices. This can help to identify areas where a company is performing well or falling short and inform strategies for improvement.
4. Cross-Industry Analysis - This involves comparing a company's performance to that of companies in other industries. This type of analysis can provide insights into emerging trends or opportunities that may be relevant to the company's industry.Overall, these types of analysis can be valuable tools for assessing a company's performance and making informed decisions about future strategies and investments.

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These are the cost curves for a perfectly competitive firm, facing fixed costs- $3,000. 21. If market price is $50, how much output will the firm produce?a units b. 100 units c. 300 units d. 400 units

Answers

The output firm will produce at the fixed cost of $3000 and market price of $50 is given by option . 100 units.

Fixed costs is equal to $3,000

Market price = $50

Attached graph

Quantity at which marginal cost (MC) equals the market price (P),

Looking at the graph,

When the market price is $50, the intersection of the marginal cost and average variable cost curves occurs at approximately 100 units of output.

The firm's marginal cost (MC) curve intersects the average variable cost (AVC) curve at a quantity of 100 units.

The firm will produce 100 units of output in the short run.

Total revenue (TR) and total cost (TC) at this quantity.

At 100 units, the firm's total revenue is,

TR = P x Q

     = $50 x 100

     = $5,000

Total cost = fixed cost (FC) + variable cost (VC)

variable cost can be found by looking at curve at 100 units, which is approximately $35.

The total cost at 100 units is,

TC = FC + VC

    = $3,000 + ($35 x 100)

    = $6,500

The firm's loss (π) at 100 units as,

π = TR - TC

  = $5,000 - $6,500

  = - $1,500

Since the firm's loss is negative at 100 units, this confirms that this is indeed the loss-minimizing level of output.

Therefore, for market price $50 the firm will produce output of option (b) 100 units.

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Consider the following simplified APT model:
Factor Expected Risk
Premium (%)
Market 6.9
Interest rate −.4
Yield spread 4.3
Factor Risk Exposures
Market Interest Rate Yield Spread
Stock (b1) (b2) (b3)
P .9 −1.3 −.3
P2 1.0 0 .3
P3 .3 1.4 1.3
Calculate the expected return for each of the stocks shown in the table above. Assume rf = 3.7%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Expected return P %
Expected return P %
Expected return P3 %

Answers

The expected return for stock P is 13.71%, for stock P2 is 9.79%, and for stock, P3 is 22.39%.

To calculate the expected return for each stock, we use the following formula:

Expected Return = rf + b1 (E(Rm) - rf) + b2 (E(Ri) - rf) + b3 (E(Rs) - rf)

Where rf is the risk-free rate, b1, b2, and b3 are the factor risk exposures, E(Rm), E(Ri), and E(Rs) are the expected risk premiums for the market, interest rate, and yield spread factors, respectively.

Plugging in the given values, we get:

For stock P: Expected Return = 3.7% + 0.9(6.9% - 3.7%) - 1.3(-0.4% - 3.7%) - 0.3(4.3% - 3.7%) = 13.71%
For stock P2: Expected Return = 3.7% + 1.0(6.9% - 3.7%) + 0(−0.4% - 3.7%) + 0.3(4.3% - 3.7%) = 9.79%
For stock P3: Expected Return = 3.7% + 0.3(6.9% - 3.7%) + 1.4(−0.4% - 3.7%) + 1.3(4.3% - 3.7%) = 22.39%

The expected return for each stock is driven by its exposure to the different factors and the expected risk premiums for those factors. Stock P3 has the highest expected return due to its positive exposure to the market and yield spread factors, which are expected to generate high-risk premiums. On the other hand, stock P2 has the lowest expected return because it has no exposure to the interest rate and yields spread factors, which are expected to generate positive risk premiums.

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Question 5 10 pts Paragon Properties built a shopping center at a cost of $50M in year 2010. The company started leasing space in July of 2014. The land was purchased for $5M. Determine the depreciation charges through 2017 if the property was sold in November 2017, $3,563.100 $3,848,400 $3.991.050 O $4.615.20

Answers

In the firm Paragon Properties, if straight-line method of charging depreciation is used, the depreciable amount would be $45M ($50M - $5M) over a useful life of 40 years (assuming a commercial property). The right answer is option C.

Therefore, the annual depreciation charge would be $1.125M ($45M/40 years), and the depreciation charges through 2017 (7.5 years) would be $8.438M ($1.125M x 7.5 years).

If the property was sold in November 2017, the accumulated depreciation would be $10.5631M ($1.125M x 9.4 years, assuming the property was sold 9.4 years after the start of leasing in July 2014). The book value of the property at the time of sale would be $39.4369M ($50M - $10.5631M).

Therefore, the answer is $3.991.050 i.e option C.

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the martins are buying their first house and are a little nervous about whether they'll be able to afford payments long term. page four of their closing disclosure is of particular interest to them because it lists specific disclosures, such as escrow account information, with the purpose of .

Answers

The purpose of these disclosures is to give the Martins a clear understanding of their financial responsibilities and ensure they are aware of all costs involved in homeownership.

Understanding closing disclosure

The Martins' concern about affording their first house is understandable. The closing disclosure is a document provided by the lender that details all the terms and costs associated with the mortgage loan.

Page four of the closing disclosure is significant because it includes specific disclosures related to the escrow account.

An escrow account is a separate account managed by the lender to hold the funds for the property taxes, insurance, and other related expenses. The lender uses the funds from the escrow account to pay these expenses on behalf of the borrower.

The information provided on page four of the closing disclosure is essential for the Martins as it outlines the amount they will need to contribute to the escrow account each month, in addition to their mortgage payment, to cover the related expenses.

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Year Cash Flow
0 -$26,000
1 $11,000
2 $14,000
3 $10,000
Suppose the firm uses the NPV decision rule. At the required
return of 11 percent, should the firm accept this project? What if
the required return is 24 percent?

Answers

In this case, the firm should accept the project at a required return of 11% since the NPV is positive. However, the firm should reject the project at a required return of 24%, as the NPV is negative.

Should the firm accept the project

To answer your question, let's first calculate the Net Present Value (NPV) of the project at the given required returns.

The cash flows are as follows:

Year 0: -$26,000

Year 1: $11,000

Year 2: $14,000

Year 3: $10,000

At a required return of 11%, the NPV can be calculated as follows:

NPV = -26,000 + (11,000 / 1.11^ 1) + (14,000 / 1.11^2) + (10,000 / 1.11^3)

NPV ≈ $1,690.09

At a required return of 24%, the NPV can be calculated as follows:

NPV = -26,000 + (11,000 / 1.24^1) + (14,000 / 1.24^2) + (10,000 / 1.24^3)

NPV ≈ -$2,123.62

Using the NPV decision rule, the firm should accept a project if its NPV is greater than zero.

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Expected To Produce Cash Flows Of $750 At The End Of Year 1, $1,000 At The End Of Year 2, $850 At The End Of Year 3, And $6,250 At The End Of Year 4. What Rate Of Return Would You Earn If You Bought This Asset? A. 16.24% B. 18.78% C. 16.91%
You are offered a chance to buy an asset for $5,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of Year 2, $850 at the end of Year 3, and $6,250 at the end of Year 4. What rate of return would you earn if you bought this asset?
a. 16.24%
b. 18.78%
c. 16.91%
d. 21.14%
e. 18.94%

Answers

The rate of return is 16.91%. So, the correct answer is C.

How to calculate the rate of return

To calculate the rate of return, we can use the formula for the present value of an annuity:

PV = CF / (1+r)^n

where PV is the present value, CF is the cash flow, r is the rate of return, and n is the number of periods.

We can use this formula for each of the cash flows and then add up the present values to get the total present value of the asset:

PV1 = 750 / (1+r)^1

PV2 = 1000 / (1+r)^2

PV3 = 850 / (1+r)^3

PV4 = 6250 / (1+r)^4

PV = PV1 + PV2 + PV3 + PV4

Since we know the price of the asset is $5,250, we can set the total present value equal to the price and solve for r:

5250 = PV = PV1 + PV2 + PV3 + PV4

5250 = 750 / (1+r)^1 + 1000 / (1+r)^2 + 850 / (1+r)^3 + 6250 / (1+r)^4

Using a financial calculator or Excel, we can find that the rate of return that solves this equation is approximately 16.91%.

Therefore, the answer is (c) 16.91%.

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1. OLI is to FDI, as Securities (i.e., stocks and bonds) are to this. 1. A partially owned subsidiary is associated with this. 2. Floating, fixed, and managed, are types of these. 3. The advantages Sony, Honda, and Epson enjoyed when they entered the U.S. market ahead of their rivals. 4. A requirement for businesses to keep a portion of their operations within the Home. 5. Large installations such as power plants for generating electricity often start out as one of these projects.

Answers

The answers are as follows: 1. Portfolio Investment, 2. Joint Venture, 3. First Mover Advantages, 4. Local Content Requirements, and 5. Greenfield projects.

1. OLI is to FDI as Securities are to Portfolio Investment. OLI stands for Ownership, Location, and Internalization advantages which are factors that determine a firm's decision to engage in Foreign Direct Investment (FDI). Similarly, when investors purchase stocks and bonds of foreign companies, they are engaging in Portfolio Investment.2. A partially owned subsidiary is associated with Joint Venture. A joint venture is a type of business partnership where two or more parties come together to form a new entity that is partially owned by each party.
3. The advantages Sony, Honda, and Epson enjoyed when they entered the U.S. market ahead of their rivals are First Mover Advantages. First mover advantages refer to the benefits that a company enjoys by being the first to enter a new market, such as brand recognition, customer loyalty, and the ability to set prices.4. A requirement for businesses to keep a portion of their operations within the Home is called Local Content Requirements. Local content requirements are regulations that require firms to produce a certain percentage of their products or services domestically, in order to promote local economic development.5. Large installations such as power plants for generating electricity often start out as Greenfield projects. A Greenfield project is a type of investment where a company builds a new facility or operation from scratch in a new location. Large infrastructure projects such as power plants are often built as Greenfield projects.

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Cullumber Corp. is a fast-growing company whose management expects it to grow at a rate of 22 percent over the next two years and then to slow to a growth rate of 16 percent for the following three years. If the last dividend paid by the company was $2.15. Your answer is correct What is the dividend for the 1st year? (Round answer to 3 decimal places, e.g. 15.250.) Da $ 2.623 eTextbook and Media Your answer is correct.

Answers

The dividend for the 1st year is $2.623.

A dividend is a payment made by a corporation to its shareholders, usually in the form of cash or additional shares of stock. The payment of dividends is typically determined by the company's board of directors and is usually made on a regular basis, such as quarterly or annually.

Dividends are typically paid out of a company's profits, and they represent a portion of those profits that are distributed to shareholders. Dividends can be an important source of income for investors who own stocks that pay regular dividends, and they can also be used to reinvest in the company or to provide shareholders with a return on their investment.

The dividend for the 1st year can be calculated using the formula:
Dividend = Last Dividend * (1 + Growth Rate)
For the first year, the growth rate is 22%, so the dividend would be:
Dividend = $2.15 * (1 + 0.22) = $2.623 (rounded to 3 decimal places)

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which of the following is not an example of price discrimination? a discounted car insurance for military veterans. b a coupon in the newspaper offering a 10% discount on a product c a lower price charged to the grandfather who bought his airline ticket to chicago three weeks in advance and will stay over a saturday night than to the businesswoman who bought her ticket the day of the flight and will not stay over saturday night d a higher price charged for front row seats at a concert than charged for seats at the back e a discounted movie ticket for a 6-year old customer.

Answers

The discounted movie ticket for a 6-year old customer, is is not an example of price discrimination.

The correct answer is e)

Price discrimination refers to the practice of charging different prices to different customers for the same product or service, based on certain characteristics such as their willingness to pay, age, location, or other demographic factors.

In the given options, a discounted car insurance for military veterans (a), a coupon in the newspaper offering a 10% discount on a product (b), a lower price charged to the grandfather who bought his airline ticket to Chicago three weeks in advance and will stay over a Saturday night than to the businesswoman who bought her ticket the day of the flight and will not stay over Saturday night (c), and a higher price charged for front row seats at a concert than charged for seats at the back (d), are all examples of price discrimination.

However, a discounted movie ticket for a 6-year old customer (e) does not fall under the category of price discrimination as it is based on the age of the customer and is typically a standard pricing practice for children, rather than charging different prices based on willingness to pay or other demographic factors.

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Other things remaining the same, a left shift in the supply curve will lead to:
A. a decrease in the equilibrium price and the equilibrium quantity.
B. an increase in the equilibrium price and the equilibrium quantity.
C. an increase in the equilibrium price and a decrease in the equilibrium quantity.
D. a decrease in the equilibrium price and an increase in the equilibrium quantity.

Answers

A left shift in the supply curve will lead to a decrease in the equilibrium price and equilibrium quantity, as indicated by answer choice A.

The quantity of products or services that providers are willing and able to produce at any given price level decreases as the supply curve shifts to the left. Numerous variables, like higher manufacturing costs, decreased productivity, or insufficient input supplies, may contribute to this shift.

As a result, the equilibrium quantity demanded will decline, and the equilibrium price will follow suit. This is due to the possibility that suppliers may drop their prices to increase demand at a lower amount required, creating a new equilibrium point with a lower price and quantity.

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Jeff is an investor who owns 1 share of XYZ and a put option on 1 share of XYZ. The exercise price of the put option is $100 and XYZ currently trades at $99. The option premium was $3. If the price of XYZ at expiration is $50, the payoff of Jeff's position is: 599 SO $50 $100

Answers

The payoff of Jeff's position when the price of XYZ at expiration is $50 is $97.

Jeff's position consists of owning 1 share of XYZ and having a put option on 1 share of XYZ with an exercise price of $100 and a premium of $3.

If the price of XYZ at expiration is $50, Jeff will exercise the put option, selling his share of XYZ at the exercise price of $100. Therefore, his profit from the put option will be $100 - $50 = $50.

However, Jeff also owns 1 share of XYZ, which is now worth $50. Therefore, his total payoff will be $50 (value of the stock) + $50 (profit from the put option) - $3 (option premium) = $97.

Therefore, the payoff of Jeff's position when the price of XYZ at expiration is $50 is $97.

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the most common approach to motivating executives to make decisions that are in the best interests of stockholders is group of answer choices high base salaries with few bonuses. average base salaries with significant firm performance bonuses. a long-term incentive plan using stock options. average base salary with performance-based perks.

Answers

To motivate executives to make decisions that benefit stockholders to implement a long-term incentive plan using stock options. This type of plan ties the executive's compensation directly to the performance of the company, which encourages them to make decisions that will increase the stock price and benefit stockholders in the long run.

Stock options provide executives with the opportunity to purchase company stock at a predetermined price, typically at a discount, at a future date. The value of these options is tied to the performance of the company, so executives are incentivized to make decisions that increase the value of the stock. This approach aligns the interests of executives and stockholders, as both parties benefit from the company's success.

In contrast, high base salaries with few bonuses may not provide enough motivation for executives to make decisions that benefit stockholders, as they are not directly tied to company performance. Similarly, average base salaries with significant firm performance bonuses may incentivize executives to focus on short-term gains rather than long-term success. Performance-based perks are also not as effective as stock options, as they do not tie the executive's compensation to the company's long-term success.

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A project manager is interested in crashing a project with variable activity times. Which of the following tools should he/she employ? a.PERT b.CPM c.GANTT CHART d.Either PERT or CPM e.PERT, CPM, or a Gantt chart are fine

Answers

The correct option is d.

Either PERT or CPM can be employed to crash a project with variable activity times. PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) are both project management tools used to schedule and manage complex projects.

They can help a project manager to identify the most critical activities in a project, and to develop strategies to shorten the project schedule, or "crash" the project. Both PERT and CPM can be used with projects that have variable activity times.

A Gantt chart is a visual tool that can be used to display project tasks and their schedule, but it is not specifically designed to help with project crashing.

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The several processes associated with the acquiring of goods from external vendors are collectively referred to as the ________ process.
A) make-to-stock
B) make-to-order
C) order-to-cash
D) plan-to-produce
E) procure-to-pay

Answers

The several processes associated with the acquiring of goods from external vendors are collectively referred to as the procure-to-pay process. So, the correct answer is option E .

In the mentioned context, the procure-to-pay process involves all the steps and activities necessary to acquire goods or services from an external vendor, including identifying the need for goods or services, selecting a vendor, negotiating the terms and conditions, creating a purchase order, receiving and inspecting the goods, processing the invoice, and making the payment.

Therefore, procure-to-pay is the correct answer.

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The Salamander Company has evaluated its receivables, and has identified the following possible impairments:
Note #1 has recently deteriorated in credit quality. For Note #1, Salamander estimates the present value of credit losses occurring in the next twelve months is $50,000, and the present value of credit losses occurring after twelve months is $20,000.
Note #2 has not deteriorated in credit quality. For Note #2, Salamander estimates the present value of credit losses occurring in the next twelve months is $5,000, and the present value of credit losses occurring after twelve months is $10,000.
If Salamander is reporting under IFRS and therefore uses the ECL model, it would recognize an impairment loss of:
$50,000 $55,000 $75,000 $85,000

Answers

If Salamander is reporting under IFRS and using the ECL model, it would recognize an impairment loss of $75,000. The correct option is $75000.

Under IFRS, the Expected Credit Loss (ECL) model is used to recognize impairment losses on financial instruments. The ECL model requires an entity to estimate credit losses based on 12-month ECL if the credit risk has not increased significantly since initial recognition, and to estimate lifetime ECL if the credit risk has increased significantly since initial recognition.

For Note #1, the credit quality has deteriorated, so we need to consider the lifetime ECL. The present value of credit losses for the next twelve months is $50,000, and the present value of credit losses occurring after twelve months is $20,000. Thus, the total ECL for Note #1 is $50,000 + $20,000 = $70,000.

For Note #2, the credit quality has not deteriorated, so we only need to consider the 12-month ECL. The present value of credit losses for the next twelve months is $5,000.

To find the total impairment loss, we add the ECL for both notes: $70,000 (Note #1) + $5,000 (Note #2) = $75,000. Hence, the correct option is $75000.

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