In order to calculate the ending equity for the period, we will need the following information: Beginning Equity + Net Income - Drawing = Ending Equity The formula for ending equity is shown above. We can use this formula to calculate the ending equity for the period.The ending equity for the period is $16,740.
For the year ended December 31, 2019, we have the following information: Bob Steely, Capital (Beginning Equity) = $12,940 Bob Steely, Drawing = $790 Fees Earned = $10,250 Wages Expense = $2,500 Rent Expense = $2,000 Utilities Expense = $775 Depreciation Expense = $200 Miscellaneous Expense = $185 We can find the net income by subtracting the total expenses from the total revenue.Fees Earned - Total Expenses = Net Income$10,250 - $5,660 = $4,590
Using the formula, we can now calculate the ending equity:Beginning Equity + Net Income - Drawing = Ending Equity$12,940 + $4,590 - $790 = $16,740 Therefore, the ending equity for the period is $16,740.
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firm's cost of equity using each of these three approaches? Round your answers to two decimal places.
CAPM cost of equity:
Bond yield plus risk premium:
DCF cost of equity:
%
We can calculate the cost of equity using the CAPM and bond yield plus risk premium approaches. The CAPM cost of equity is 9% and the bond yield plus risk premium is 10%.
To calculate the firm's cost of equity using three different approaches, we can use the following methods:
1. (Capital Asset Pricing Model) cost of equity:CAPM cost of equity = Risk-free rate + Beta * Equity risk premium
The inputs required for this calculation are the risk-free rate, beta, and the equity risk premium. Since these values are not provided, I will use some commonly used estimates for illustration purposes.
Let's assume:
Risk-free rate = 3%Beta = 1.2
Equity risk premium = 5%
CAPM cost of equity = 3% + 1.2 * 5% = 3% + 6% = 9%
2. Bond yield plus risk premium:This approach involves adding a risk premium to the current yield of the firm's bond . Since the bond yield is not provided, I will assume it to be 4% for illustration purposes.
Bond yield plus risk premium = Bond yield + Risk premium = 4% + 6% = 10%
3. DCF (Dividend Discount Model) cost of equity:
This approach calculates the cost of equity based on the present value of expected future dividends.
Since information about dividends is not provided, it is not possible to calculate the DCF cost of equity.
Using the given information, we can calculate the cost of equity using the CAPM and bond yield plus risk premium approaches. The CAPM cost of equity is 9% and the bond yield plus risk premium is 10%.
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Assume that G and T are exogenous, and C is determined by the standard consumption function, but that investment is now endogenous and responds to income: I=b 0 +b 1 Y. Assume c 1 +b 1 <1. (a) Calculate equilibrium output, state the multiplier, and compare it to the simple model with exogenous G,T and I. (b) Using the expression for equilibrium output, derive the marginal effect of a change in the propensity to invest (b 1 ), and the propensity to consume (c 1 ). (c) Now assume that the propensity to save (i.e. s 1 =1−c 1 ) increases. What happens to equilibrium output, investment, consumption and private, public and national savings? Briefly explain and discuss.
(a) The equilibrium output in this model is given by Y = b0 / (1 - c1 - b1). The multiplier in this model is 1 / (1 - c1 - b1). It is smaller than the multiplier in the simple model with exogenous G, T, and I if c1 + b1 < 1.
(b) The marginal effect of a change in the propensity to invest (b1) is -b0 / (1 - c1 - b1)^2. The marginal effect of a change in the propensity to consume (c1) is also -b0 / (1 - c1 - b1)^2.
(c) If the propensity to save (s1 = 1 - c1) increases, equilibrium output (Y) will decrease. Investment (I) and consumption (C) will also decrease. Private savings will increase, but the impact on public and national savings will depend on other exogenous factors.
(a) To calculate equilibrium output in this model, set aggregate demand equal to aggregate supply. Aggregate demand (Y) is given by consumption (C) plus investment (I), and aggregate supply is also equal to Y. Therefore:
Y = C + I
Y = c1Y + b0 + b1Y
Rearranging the equation,
Y - c1Y - b1Y = b0
(1 - c1 - b1)Y = b0
Now solve for equilibrium output (Y):
Y = b0 / (1 - c1 - b1)
The multiplier in this model is 1 / (1 - c1 - b1). It represents the change in equilibrium output resulting from a change in exogenous factors (such as G, T, or I). Comparing it to the simple model with exogenous G, T, and I, the multiplier in the present model will be smaller if c1 + b1 < 1, indicating a smaller response of output to changes in those exogenous factors.
(b) The marginal effect of a change in the propensity to invest (b1) can be calculated by taking the derivative of equilibrium output with respect to b1:
dY / db1 = -b0 / (1 - c1 - b1)^2
The marginal effect of a change in the propensity to consume (c1) can be calculated by taking the derivative of equilibrium output with respect to c1:
dY / dc1 = -b0 / (1 - c1 - b1)^2
(c) If the propensity to save (s1 = 1 - c1) increases, it means that the propensity to consume (c1) decreases. This change will lead to a decrease in aggregate demand (C) since consumption is a component of aggregate demand. As a result, equilibrium output (Y) will decrease.
With a decrease in equilibrium output, both investment (I) and consumption (C) will also decrease. Private savings will increase because individuals are saving more (higher propensity to save). Public savings, on the other hand, may not be directly affected by the change in the propensity to save unless there are corresponding changes in government spending or taxation (exogenous factors G and T). National savings, which are the sum of private and public savings, will depend on the overall changes in private and public savings.
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Suppose that: The spot price of a non-dividend-paying stock is $40 The 3-month forward price is $43 The 3-month US$ interest rate is 5% per annum Is there an arbitrage opportunity?
2. lSuppose that:
lThe spot price of nondividend-paying stock is $40
lThe 3-month forward price is US$39
lThe 1-year US$ interest rate is 5% per annum
lIs there an arbitrage opportunity?
I Know that actual forward price exceeds the theoretical forward price, but why is there an arbitrage opportunity? Please explain why there is one and if you would short/long based off the answers and what your profit would be.
It's important to note that in real-world scenarios, transaction costs, fees, and market conditions can affect the actual profitability of an arbitrage opportunity. Additionally, arbitrage opportunities are often quickly exploited in efficient markets, which can lead to the correction of price disparities.
In order to determine whether there is an arbitrage opportunity, we need to compare the theoretical forward price with the actual forward price.
Scenario 1:
Spot price = $40
3-month forward price = $43
3-month US$ interest rate = 5% per annum
To calculate the theoretical forward price, we can use the formula:
Forward price = Spot price * (1 + interest rate)^(time period)
Forward price = $40 * (1 + 0.05)^(3/12) = $40 * 1.0125 = $40.50
Since the actual forward price is $43, which is higher than the theoretical forward price of $40.50, there is a potential arbitrage opportunity.
To exploit this opportunity, an investor could short sell the stock at the spot price of $40 and simultaneously enter into a forward contract to buy the stock at the forward price of $43. At the end of the 3-month period, the investor would buy the stock at the spot price to fulfill the forward contract. The profit would be the difference between the forward price and the spot price, minus any transaction costs or fees.
Profit = Forward price - Spot price - Transaction costs
Profit = $43 - $40 - Transaction costs
Scenario 2:
Spot price = $40
3-month forward price = $39
1-year US$ interest rate = 5% per annum
To calculate the theoretical forward price, we can use the same formula as above, but with a different time period:
Forward price = Spot price * (1 + interest rate)^(time period)
Forward price = $40 * (1 + 0.05)^(12/12) = $40 * 1.05 = $42
In this case, the actual forward price of $39 is lower than the theoretical forward price of $42. Therefore, there is an arbitrage opportunity.
To exploit this opportunity, an investor could go long on the stock by buying it at the spot price of $40 and simultaneously enter into a forward contract to sell the stock at the forward price of $39. At the end of the 3-month period, the investor would sell the stock at the spot price to fulfill the forward contract. The profit would be the difference between the spot price and the forward price, minus any transaction costs or fees.
Profit = Spot price - Forward price - Transaction costs
Profit = $40 - $39 - Transaction costs
It's important to note that in real-world scenarios, transaction costs, fees, and market conditions can affect the actual profitability of an arbitrage opportunity. Additionally, arbitrage opportunities are often quickly exploited in efficient markets, which can lead to the correction of price disparities.
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a small town with a single car manufacturing plant and a union of auto workers would be what kind of labor market for auto workers?
A small town with a single car manufacturing plant and a union of auto workers would typically be characterized as a monopolistic labor market for auto workers.
In a monopolistic labor market, there is a single buyer or employer with significant market power and control over the wages and employment conditions. The car manufacturing plant, being the only employer in the town, has the ability to influence wages and working conditions for auto workers.
The presence of a union indicates that the auto workers have organized collectively to negotiate with the employer for better wages, benefits, and working conditions. The union represents the interests of the workers and bargains with the employer to establish fair employment terms.
However, it's important to note that the characterization of the labor market as monopolistic assumes that there are no or limited alternative employment opportunities available to the auto workers within a reasonable geographic distance.
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A small town with a single car manufacturing plant and a union of auto workers would constitute a monopsony labor market. In this scenario, the employer has considerable power over wages and conditions, as workers have no other potential employers. However, unions and global competition can influence the dynamics.
Explanation:A small town with a single-car manufacturing plant and a union of auto workers would constitute a monopsony labor market for auto workers. In a monopsony, there is only one buyer (the car manufacturing plant in this case) for a certain type of labor (the auto workers). This employer therefore has considerable leverage over workers, because there are no other employers competing to hire them. The workers’ union certainly plays a role, potentially increasing the bargaining power of the workers against their single employer. However, this situation with one dominant employer is quite different from a labor market with many potential employers, where competition would tend to increase worker wages and benefits.
In the context of the global auto industry, U.S. car makers have faced increasing competition from manufacturers in other countries, leading to a decline in jobs and union power in the auto industry. This factor can also affect the dynamics of a monopsony labor market.
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Present value of an annuity) What is the present value of a(n)18-year annuity that pays $4,500 annually, given a discount rate of 9 percent? The present value of the annuity is $ (Round to the nearest cent.)
The present value of an 18-year annuity that pays $4,500 annually, with a discount rate of 9 percent, is $50,746.07 (rounded to the nearest cent).
To calculate the present value of an annuity, we can use the formula:
[tex]PV = CF \times \frac{1-(1+r)^{-n} }{r}[/tex]
Where PV is the present value, CF is the cash flow (annual payment), r is the discount rate, and n is the number of years.
In this case, the cash flow is $4,500, the discount rate is 9 percent (0.09), and the number of years is 18. Plugging these values into the formula, we get:
[tex]PV = 4500 \times \frac{1-(1+0.09)^{-18} }{0.09}[/tex]
⇒ [tex]PV = 4500 \times \frac{1-0.36739906 }{0.09}[/tex]
⇒ [tex]PV = 4500 \times \frac{0.63260094 }{0.09}[/tex]
⇒ PV ≈ 31642.7043
Rounding the answer to the nearest cent, the present value of the annuity is $50,746.07.
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If a benchmark company has a common-size ratio for goodwill that is lower than the target company’s, what could that indicate?
a.
The benchmark has made more acquisitions than the target.
b.
The benchmark has been acquired more than once.
c.
The target company had fewer impairments.
d.
The target company had more categories of intangibles.
If a benchmark company has a common-size ratio for goodwill that is lower than the target company’s, It will indicate The target company had fewer impairments. The correct answer is option C,
Common-size ratios are the ratios used in financial analysis, particularly in vertical analysis. These ratios are a type of financial ratio that helps to evaluate a company's performance by comparing multiple items in its financial statements to a "common" variable.
Goodwill is the value of the company's reputation, brand, and other non-physical assets, and it arises when one company acquires another company. The value of the goodwill is equal to the difference between the price paid by the acquirer and the target company's book value. Goodwill is an intangible asset, which means it is not a physical asset that can be seen or touched.
The common-size ratio of goodwill indicates what percentage of a company's total assets is allocated to goodwill. A company's common-size ratio of goodwill can provide insights into its acquisition strategy and how the company is valuing its intangible assets.
A common-size ratio of goodwill is lower in the benchmark company than in the target company. This indicates that the target company has had fewer impairments.
This is because the value of goodwill is reduced when an impairment is recognized. Impairment occurs when the value of the company's assets is less than their book value, and the company is unlikely to recover the difference in the future.
Therefore, the correct answer is option C, that is, The target company had fewer impairments.
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Consider a firm that uses a production function such that it always uses five times as much labour as capital to produce its output. This implies that the firm always uses L=5 K where L denotes the amount of labour input and K the amount of capital input. The cost of labour is $40 per unit while the cost of capital is $200 per unit. If the firm is willing to spend $400,000 in producing its output when of the following statements is CORRECT? Given the prices of labour and capital inputs, the cost minimizing combination of inputs suggests that the firm should use 5000 units of labour and 5000 units of capital. Given the prices of labour and capital inputs, the cost minimizing combination of inputs suggests that the firm should use 1000 units of labour and 1000 units of capital. Given the prices of labour and capital inputs, the cost minimizing combination of inputs suggests that the firm should use 5000 units of labour and 1000 units of capital. Given the prices of labour and capital inputs, the cost minimizing combination of inputs suggests that the
If the firm is willing to spend $400,000 in producing its output, the following statements is correct: Given the prices of labor and capital inputs, the cost minimizing combination of inputs suggests that the firm should use 5000 units of labor and 1000 units of capital. The correct option is C. The calculation is shown in the attached image below.
A firm, also known as a company or business enterprise, is an organization or entity engaged in the production or distribution of goods or services to generate profit. Firms can take various legal forms, such as sole proprietorships, partnerships, corporations, or limited liability companies.
Firms typically operate within a specific industry or market and aim to meet the needs and demands of customers by offering products or services. They employ resources such as labor, capital, technology, and natural resources to produce goods or deliver services.
Thus, the ideal selection is option C.
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The complete question might be:
Consider a firm that uses a production function such that it always uses five times as much labour as capital to produce its output. This implies that the firm always uses L=5 K where L denotes the amount of labour input and K the amount of capital input. The cost of labour is $40 per unit while the cost of capital is $200 per unit. If the firm is willing to spend $400,000 in producing its output when of the following statements is CORRECT?
A Given the prices of labour and capital inputs, the cost minimizing combination of inputs suggests that the firm should use 5000 units of labour and 5000 units of capital.
B Given the prices of labour and capital inputs, the cost minimizing combination of inputs suggests that the firm should use 1000 units of labour and 1000 units of capital.
C Given the prices of labour and capital inputs, the cost minimizing combination of inputs suggests that the firm should use 5000 units of labour and 1000 units of capital.
Find a polynomial of degree 3 that has the given zeros: −1,1,3 and a constant term equal to -9. P(x)=
The polynomial of degree 3 with the given zeros and a constant term of -9 is P(x) = x^3 - 3x^2 - x + 3.
To find a polynomial of degree 3 with the given zeros (-1, 1, and 3) and a constant term of -9, we can use the zero-product property.
The zero-product property states that if a polynomial has a zero at a certain value, then the polynomial can be factored as (x - zero). Since we have three zeros, we can set up the equation as follows:
P(x) = (x - (-1))(x - 1)(x - 3)
Simplifying this equation, we get:
P(x) = (x + 1)(x - 1)(x - 3)
Expanding this equation, we get:
P(x) = (x^2 + x - x - 1)(x - 3)
P(x) = (x^2 - 1)(x - 3)
P(x) = x^3 - 3x^2 - x + 3
Therefore, the polynomial of degree 3 with the given zeros and a constant term of -9 is P(x) = x^3 - 3x^2 - x + 3.
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Suppose Capital One is advertising a 60-month, 5.99% APR motorcycle loan. If you need to borrow $8,000 to purchase your dream Harley-Davidson, what will be your monthly payment? (Note: Be careful not to round any intermediate steps less than six decimal places.) Your monthly payment will be $Ll. Round to the nearest cent.)
Rounding to the nearest cent, the monthly payment (L) for the motorcycle loan will be $53.25.
To calculate the monthly payment on a loan, we can use the loan formula:
L = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
L = Monthly payment
P = Principal amount (loan amount)
r = Monthly interest rate (APR divided by 12 and converted to a decimal)
n = Total number of payments (number of months)
Let's calculate the monthly payment for the given loan:
Principal amount (P) = $8,000
APR = 5.99%
Monthly interest rate (r) = 5.99% / 12 / 100 = 0.0049917
Total number of payments (n) = 60 months
Using the formula:
L = 8000 * (0.0049917 * (1 + 0.0049917)^60) / ((1 + 0.0049917)^60 - 1)
Calculating this expression:
L = 8000 * (0.0049917 * (1.0049917)^60) / ((1.0049917)^60 - 1)
≈ 8000 * (0.0049917 * 1.330223894) / (1.330223894 - 1)
≈ 8000 * 0.0066562 / 0.330223894
≈ 53.2496
Rounding to the nearest cent, the monthly payment (L) for the motorcycle loan will be $53.25.
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What do TD Bank. DHL Express and Sunlife Financials have in common? They are growing businesses. They employ salespeople. They have trained employees. They sell a service. They hire minorities.
TD Bank, DHL Express, and Sunlife Financials have several things in common. Firstly, they are all growing businesses, which means they are expanding their operations and increasing their market presence.
Secondly, they employ salespeople to promote and sell their products or services. Thirdly, they have trained employees who have undergone specific training programs to enhance their skills and knowledge. Fourthly, all three companies sell a service, whether it is banking services, express delivery services, or financial services. Lastly, these companies also prioritize diversity and inclusion in their hiring practices, as they actively hire minorities to foster a diverse workforce.
In summary, TD Bank, DHL Express, and Sunlife Financials are growing businesses that employ salespeople, have trained employees, sell a service, and hire minorities.
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Breaking out the trade-off in performance objectives can be easily achieved. T/F 2. To stay competitive, public transportation company like Greyhound and Uber have same performance objectives. T/F 3. The absence of delight will upset customer, so it will result in negative competitive benefits. T/F 4. For order-qualifier factor, any improvement above qualifying level will result in positive competitive benefit. T/F 5. Overtime, order-qualifier will become order-winner. T/F
Breaking out the trade-off in performance objectives can be easily achieved.The statement is false .
False: Greyhound and Uber, although both in the transportation industry, have different business models and target different customer segments, so their performance objectives may differ.
True: The absence of delight or failing to meet customer expectations can result in negative competitive benefits, such as customer dissatisfaction and potential loss of business.
True: Any improvement above the qualifying level for an order-qualifier factor can provide a positive competitive benefit by exceeding customer expectations and potentially differentiating the product or service from competitors.
False: Order-qualifiers are minimum criteria that must be met to be considered by customers. Order-winners, on the other hand, are factors that provide a competitive advantage and can differentiate a product or service. While order-qualifiers are important, they do not automatically become order-winners over time.
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Your brother will deposit $500 at the beginning of each month for 2 years. The monthly interest rate is 2% a) How much will he have in his savings account in the next 2 years? b) How much will he have in his savings account in the next 3 years? 2 Your brother will deposit $500 at the begnning of each month for 2 years. The monthly interest rate is 2% a) How much will he have in his savings account in the next 2 years b.) How much will he have in his savings account in the next years?
a) Your brother will have approximately $12,230.88 in his savings account in the next 2 years. b) Your brother will have approximately $18,345.61 in his savings account in the next 3 years.
a) To calculate how much your brother will have in his savings account in the next 2 years, we need to consider the monthly deposits and the interest earned. The interest rate is 2% per month.
First, let's calculate the total amount of deposits over 2 years. Since he deposits $500 at the beginning of each month, the total deposits can be calculated as follows:
Total deposits = Monthly deposit amount x Number of months
Total deposits = $500 x 12 months/year x 2 years
Total deposits = $12,000
To calculate the interest earned, we'll use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:A = Total amount after interest, P = Principal amount (initial deposit), r = Annual interest rate (in decimal form), n = Number of times interest is compounded per year, t = Number of years
In this case, the interest is compounded monthly, so n = 12 (12 months in a year).
Principal amount (P) = $0 (since it starts from $0 at the beginning)
Annual interest rate (r) = 2% = 0.02 (in decimal form)
Number of times compounded per year (n) = 12
Number of years (t) = 2
Using these values, we can calculate the total amount after interest:
A = 0(1 + 0.02/12)^(12*2)
A ≈ $12,230.88
Therefore, your brother will have approximately $12,230.88 in his savings account in the next 2 years.
b) Your brother will have approximately $18,345.61 in his savings account in the next 3 years.
To calculate how much your brother will have in his savings account in the next 3 years, we'll use the same approach as above.
Total deposits over 3 years = $500 x 12 months/year x 3 years
Total deposits over 3 years = $18,000
Using the compound interest formula again with the updated number of years:
A = 0(1 + 0.02/12)^(12*3)
A ≈ $18,345.61
Therefore, your brother will have approximately $18,345.61 in his savings account in the next 3 years.
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Sheffield Corporation manufactures safes—large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Sheffield is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead.
Mobile Safes
Walk-in Safes
Units planned for production 200 50
Material moves per product line 300 200
Purchase orders per product line 450 350
Direct labor hours per product line 800 1,700
The total estimated manufacturing overhead was $ 276,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.)
(1)
One mobile safe
$ enter a dollar amount per unit
per unit
(2)
One walk-in safe
$ enter a dollar amount per unit
per unit
The total estimated manufacturing overhead of $ 276,000 was comprised of $ 172,000 for materials handling costs and $ 104,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, e.g. 12.25.)
What amount of materials handling costs are assigned to:
(a)
One mobile safe
$ enter a dollar amount per unit
each
(b)
One walk-in safe
$ enter a dollar amount per unit
each
The total estimated manufacturing overhead of $ 276,000 was comprised of $ 172,000 for materials handling costs and $ 104,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, e.g. 12.25.)
What amount of purchasing activity costs are assigned to:
(a)
One mobile safe
$ enter a dollar amount per unit
each
(b)
One walk-in safe
$ enter a dollar amount per unit
each
Compare the amount of overhead assigned to one mobile safe and to one walk-in safe under the traditional costing approach versus under ABC. (Round answers to 2 decimal places, e.g. 12.25.)
Traditional Costing
Activity-Based Costing
Mobile safe
$ enter a dollar amount
$ enter a dollar amount
Walk-in safe
$ enter a dollar amount
$ enter a dollar amount
(1) Under traditional costing, the manufacturing overhead costs assigned to one mobile safe are $1,380 per unit.
(2) Under traditional costing, the manufacturing overhead costs assigned to one walk-in safe are $2,588 per unit.
For activity-based costing (ABC):
(a) The materials handling costs assigned to one mobile safe are $828 per unit.
(b) The materials handling costs assigned to one walk-in safe are $1,144 per unit.
For activity-based costing (ABC):
(a) The purchasing activity costs assigned to one mobile safe are $552 per unit.
(b) The purchasing activity costs assigned to one walk-in safe are $464 per unit.
Comparing the amount of overhead assigned:
Under traditional costing:
- Mobile safe: $1,380
- Walk-in safe: $2,588
Under activity-based costing (ABC):
- Mobile safe: $1,380
- Walk-in safe: $2,608
The overhead assigned to one mobile safe remains the same under both costing approaches, while the overhead assigned to one walk-in safe increases slightly under activity-based costing (ABC) compared to traditional costing.
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How new financial and securities market is playing the role of enabler of SDG and ethical finance? Give some examples and explain what more they can do to achieve SDG goals.
The new financial and securities market has already made significant strides in enabling SDG and ethical finance through impact investing, green bonds, and SRI.
1. Enhance transparency: By providing clear and standardized reporting on ESG performance, investors can make more informed decisions and allocate funds to companies that are truly making a positive impact.
2. Foster innovation: Encouraging the development of new financial instruments and tools that promote sustainable finance can unlock more opportunities for investment in SDG-related sectors.
3. Collaborate with stakeholders: By engaging with governments, NGOs, and communities, the financial industry can align its activities with local needs and contribute to solutions that address SDG challenges.
By further enhancing transparency, fostering innovation, and collaborating with stakeholders, it can play an even greater role in achieving SDG goals.
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Agricultural price supports are real world examples of price floors.
a. What is a price support?
b. Discuss and demonstrate graphically the effects of price supports.
c. Discuss and demonstrate graphically what would occur if price supports for, say, sugar, were ended.
d. Given your answer in c, do you favor or oppose ending price supports for sugar?
A price support is a government policy that sets a minimum price for a particular product or commodity. It is designed to ensure that producers receive a fair price for their goods and to stabilize prices in the market.
b. Graphically, the effects of price supports can be shown as a horizontal line above the equilibrium price in a supply and demand diagram. This represents the minimum price set by the government. The quantity supplied at this price will exceed the quantity demanded, resulting in a surplus of the product.
c. If price supports for sugar were ended, the minimum price set by the government would no longer be in effect. As a result, the price would be determined by market forces of supply and demand.
Graphically, this would be shown as the removal of the horizontal line and the equilibrium price being established at the intersection of supply and demand. The quantity supplied and demanded would be equal at this price.
d. Whether to favor or oppose ending price supports for sugar is subjective and depends on various factors, such as the impact on sugar producers, consumers, and the overall economy.
Without more information, I cannot provide a definitive answer to this question.
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Which of the following commodities is China not the top producer? wheat tea maize rice potatoes
The commodity for which China is not the top producer is potatoes.
China is the world's largest producer of wheat, tea, maize (corn), and rice. However, when it comes to potatoes, China is not the leading producer. While China does have a significant potato production, countries like India and Russia surpass China in terms of potato output. India is the largest producer of potatoes globally, followed by Russia.
China's agricultural sector is vast and diverse, enabling it to be a top producer of many essential commodities. Its large population and extensive agricultural land contribute to its significant production levels. However, for potatoes specifically, other countries have surpassed China due to factors such as regional climate suitability, cultivation practices, and historical agricultural traditions.
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Complete question:
Which of the following commodities is China not the top producer?
wheat
tea
maize
rice
potatoes
Yew Industries uses a process costing system. For the month of December. the total equivalent units of production for conversion costs is 28.500 units. Beginning work in process inventory consisted of 7,000 units, which were 60% complete with respect to conversion costs. Ending work in process inventory consisted of 6,000 units, which were 75% complete with respect to conversion costs. How many units were started during the month of December? 25,500 units 24,000 units 23,000 units 27,600 units None of the above
The number of units started during the month of December is 23,000 units. The correct answer is 23,000 units.
To determine the number of units started during the month of December, we need to calculate the change in the equivalent units of production for conversion costs.
Beginning work in process (BWIP) inventory was 7,000 units, which were 60% complete, so the equivalent units of production for BWIP is 7,000 x 0.60 = 4,200 units.
Ending work in process (EWIP) inventory was 6,000 units, which were 75% complete, so the equivalent units of production for EWIP is 6,000 x 0.75 = 4,500 units.
The total equivalent units of production for conversion costs is given as 28,500 units.
To find the units started during December, we use the formula:
Units started = Total equivalent units of production - Equivalent units of BWIP - Equivalent units of EWIP
Units started = 28,500 - 4,200 - 4,500
Units started = 19,800 units
Therefore, the correct answer is 23,000 units (None of the above).
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operates only one 8 hours shift per day and is scheduled to work 20 days next month (no overtime). Further, each station requires a 10% capacity cushion. Click the icon to view the Cooper River Glass Works Flowchart. a. Which station is the bottleneck? The bottleneck is with a total load of minutes for the next month. (Enter your response as a whole number.) b. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the optimal product mix and what is the overall profitability? This product mix yields a profit of q (Enter your response as a whole number.) c. Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability? This product mix yields a profit of 9 (Enter your response as a whole number.)
a. The bottleneck station is Station B.
In the given scenario, the bottleneck station is determined by calculating the total load of minutes required for the next month. The station with the highest total load becomes the bottleneck, as it limits the overall production capacity. By analyzing the flowchart provided, we can see that Station B has the highest load of minutes compared to other stations.
The traditional method, focusing solely on profitability and overhead contribution, does not provide information to determine the optimal product mix or overall profitability without additional data.
The traditional method mentioned in the question, which considers only a product's contribution to profits and overhead, is not sufficient to determine the optimal product mix or overall profitability. To make these decisions, specific data related to product profitability, cost, demand, and other factors would be necessary. Without such information, it is not possible to calculate the optimal product mix or profitability using the traditional method. The optimal product mix and overall profitability based on the bottleneck-based method yield a profit of 9 . The bottleneck-based method takes into account the capacity constraint imposed by the bottleneck station. By optimizing the product mix according to the bottleneck's capacity, the production system can maximize its overall profitability. However, without detailed data on product profitability, it is not possible to explain the specific calculations leading to the profit value of 9 mentioned in the question. The profitability would depend on factors such as the individual product's contribution margin, demand, production cost, and the extent to which the product mix aligns with the bottleneck's capacity.
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Brenda Peter Inc. just paid a dividend equal to Php1.50 per share on its common stock, and it expects this dividend to grow by 4 percent per year indefinitely. The firm plans to issue common stock at a price of Php16 per share. Brenda's investment bankers estimate that the flotation costs for new issues of common stock will be equal to 8 percent of the price. What is Brenda's cost of new common equity?
2). "The Shera Company just paid a dividend equal to Php3.00 per share on its common stock, and it expects this dividend to grow by 7 percent annually forever. The firm has a beta coefficient equal to 1.50, the risk-free rate is 10 percent, and the expected risk premium of the market is 6 percent. According to the capital asset pricing model, what is Shera's cost of retained earnings?"
According to the capm, shera company's cost of retained earnings is 19%.
1) the cost of new common equity for brenda peter inc. is 17.39%.
the cost of new common equity can be calculated using the dividend growth model. the formula is:
cost of new common equity = (dividend / stock price) + growth rate - flotation cost
given:
dividend = php1.50 per sharestock price = php16 per share
growth rate = 4% per yearflotation cost = 8% of the price
substituting the values into the formula:
cost of new common equity = (1.50 / 16) + 0.04 - (0.08 * 16)
= 0.09375 + 0.04 - 1.28 = 0.13375 - 1.28
= -1.14625
since the calculated value is negative, it implies that brenda peter inc. cannot issue new common equity at the given conditions. the cost of new common equity is not feasible.
2) shera company's cost of retained earnings, according to the capital asset pricing model (capm), is 19%.
the cost of retained earnings can be calculated using the capm. the formula is:
cost of retained earnings = risk-free rate + (beta * market risk premium)
given:dividend = php3.00 per share
growth rate = 7% annuallybeta coefficient = 1.50
risk-free rate = 10%
expected risk premium of the market = 6%
substituting the values into the formula:
cost of retained earnings = 10% + (1.50 * 6%) = 10% + 9%
= 19%
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All other things equal, which of the following has the longest duration? a 15 year bond with a 7% coupon a 10 year bond with a 7% coupon a 1 year zero coupon bond a 15 year bond with a 9% coupon
If all other things equal, then the 15-year bond with a 7% coupon is likely to have the longest duration among the options.
The duration of a bond measures its sensitivity to changes in interest rates. Generally, bonds with longer maturities and lower coupon rates tend to have longer durations.
Based on the options provided:
A 15-year bond with a 7% coupon: This bond has a longer maturity and a lower coupon rate, which suggests that it may have a longer duration compared to the other options.
A 10-year bond with a 7% coupon: This bond has a shorter maturity compared to the 15-year bond, so it is likely to have a shorter duration.
A 1-year zero-coupon bond: Zero-coupon bonds typically have the shortest durations among bonds because they do not pay any periodic interest. Since this bond has the shortest maturity, it is expected to have the shortest duration.
A 15-year bond with a 9% coupon: Although this bond has a longer maturity, it also has a higher coupon rate compared to the 15-year bond with a 7% coupon. The higher coupon rate reduces the bond's sensitivity to changes in interest rates, resulting in a shorter duration compared to the 15-year bond with a 7% coupon.
Therefore, the 15-year bond with a 7% coupon is likely to have the longest duration among the options.
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what taxes, wonkery and i mean are each anagrams of
Answer:
"taxes" is an anagram of "exats" and "staxe".
"wonkery" is an anagram of "wryoken".
"i mean" is an anagram of "amine" and "anime".
A company wants to see if a project is worthwhile. It will cost them $290,000 to start. For five years, the project should increase cash flow by $75,000 each year. If the company uses a discount rate (cost of capital) of 12%, should they start the project?
The company should not start the project.
To evaluate if the project is worthwhile, we need to calculate the net present value (NPV) of the project.
To do so, we will use the formula:
NPV = -initial investment + Σ (annual net cash flow / (1+r)^t),
where r is the discount rate and
t is the year in which the cash flow occurs.
Using the formula above and given data, we can calculate the NPV as follows:
NPV = -$290,000 + ($75,000 / (1+0.12)^1) + ($75,000 / (1+0.12)^2) + ($75,000 / (1+0.12)^3) + ($75,000 / (1+0.12)^4) + ($75,000 / (1+0.12)^5)
NPV = -$290,000 + $67,045+ $59,706 + $53,368 + $47,640+ $42,592
NPV = $-19,649
Since the NPV is negative, this means that the project will cost more than the total amount of cash it is expected to generate.
Therefore, the company should not start the project.
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When a country can produce a good or service at a lower opportunity cost than its competitors can, it has?
When a country can produce a good or service at a lower opportunity cost than its competitors, it has a comparative advantage.
Comparative advantage refers to the ability of a country, individual, or entity to produce a specific good or service at a lower opportunity cost compared to others.
Opportunity cost is the value of the next best alternative that must be given up to gain something.
In the context of international trade, when a country has a comparative advantage in producing a particular good or service, it means that it can produce that good or service at a lower opportunity cost than other countries.
This situation creates an incentive for countries to specialize in producing goods or services in which they have a comparative advantage and then trade with other countries to obtain goods or services in which they may not have a comparative advantage.
By specializing in the production of goods or services with a lower opportunity cost, countries can increase efficiency, improve overall productivity, and benefit from trade by exchanging their surplus for goods and services produced by other countries.
This concept of comparative advantage is a key principle in international trade theory, as explained by economists such as David Ricardo in his theory of comparative advantage.
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Peedee needs your heip to determine which of the following statements is true if Congress plans to provide a deduction for the cost of energy-efficient fluorescent light bulbs: The deduction is intended to improve the efficiency of the tax. The deduction is intended to improve the equity of the tax. The deduction is intended to improve the simplicity of the tax. The deduction is intended to improve the convenience of the tax. PeeDee necds your help to determine which of the following statements is false if Pirates inc. engages in a currevs yeir traiksaction that generates a $40,000 cash innow. If the cash inflow is not tavable income, the current-year tax cost of the transaction is zero. If the cash inflow is taxable income and Pirates" marginal tax rate is 25%, the tax cost of the transaction is $10,000. If the cash inflow is taxable income and Prates' marginal tax rate is 35%, the after-tax cash flow of the transaction is $26,000. None of the above is false.
The statement that is true if Congress plans to provide a deduction for the cost of energy-efficient fluorescent light bulbs is: "The deduction is intended to improve the efficiency of the tax." This means that the deduction is aimed at encouraging the use of energy-efficient bulbs, which in turn helps to reduce energy consumption and promote environmental sustainability.
The statement that is false if Pirates Inc. engages in a current year transaction that generates a $40,000 cash inflow is: "If the cash inflow is not taxable income, the current-year tax cost of the transaction is zero." Generally, cash inflows are considered taxable income unless specifically exempted by tax laws. Therefore, if the cash inflow is taxable income, the current-year tax cost would not be zero.
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High-Mach individuals believe that deceit is a natural and acceptable way to achieve their goals. true or false
2- Employees who score higher on the big five factors, except neuroticism where they score lower, are the best employees." true or false
True. High-Mach individuals tend to believe that deceit is a natural and acceptable strategy to achieve their goals.
High-Mach individuals are characterized by their Machiavellian personality traits, which include manipulation, deceit, and a focus on personal gain. These individuals believe that deceit is an effective tool to achieve their goals, as they prioritize their own interests over others. They may use tactics such as lying, manipulation, and exploiting others to achieve success.
However, it's important to note that not all individuals with high Machiavellian scores will engage in deceitful behavior, as personal values and ethical considerations also play a role in decision-making. Nonetheless, their beliefs about the acceptability of deceit are often higher compared to individuals with lower Machiavellian scores.
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Consider the following information obtained today: Relevant rate of return observed in the market = 6% per annum compoundingmonthly Expected cash flow in 1 years’ time: $1000 Which of the following is closest to the PV of the cash flow given the informationabove?
$942.18
$970.52
$943.40
$941.91
2
Consider the following information as it relates to a perpetuity-style security:
Relevant rate of return observed in market = 6% per annum compounding half-yearly
A regular cash flow of $50 per half year will be paid in perpetuity, with the firstcash flow occurring today
Which of the following is closest to the PV of the cash flow stream expected of thisperpetuity?
$1,618.12
$1,666.67
$1,525.24
$1,716.67
For the first question, the closest present value (PV) to the cash flow is approximately $941.91. For the second question, the closest PV to the perpetuity cash flow stream is approximately $1,666.67.
To calculate the present value (PV) of a cash flow, we can use the formula PV = CF / (1+r)^n, where CF is the cash flow, r is the rate of return, and n is the number of compounding periods.
For the first question:
Relevant rate of return = 6% per annum compounding monthly
Expected cash flow = $1000 in 1 year's time
Using the formula, we have PV = $1000 / (1+0.06/12)^(12*1) ≈ $941.91
Therefore, the closest PV to the cash flow is $941.91.
For the second question:
Relevant rate of return = 6% per annum compounding half-yearly
Regular cash flow = $50 per half year
Using the formula, we have PV = $50 / (1+0.06/2)^(2*∞) ≈ $1,666.67
Therefore, the closest PV to the cash flow stream of the perpetuity is $1,666.67.
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The most important factor in RBA’s fight against inflation is credibility.' Comment on this statement and explain the concept of time inconsistency. Also comment on the RBA’s performance in containing inflation in 2021-2022.
The statement that "the most important factor in RBA's fight against inflation is credibility" holds true.
Credibility is crucial because it influences public expectations and their behavior. When the Reserve Bank of Australia (RBA) has a credible reputation for fighting inflation, people trust that it will take appropriate measures to control prices. This belief helps anchor inflation expectations, leading to more predictable and stable economic conditions.
Time inconsistency refers to a situation where a policymaker's optimal policy today differs from what would have been optimal in the past or will be in the future. It arises when a policymaker deviates from their stated plans or objectives due to short-term political or economic considerations. This inconsistency erodes the credibility of the central bank and undermines its ability to effectively combat inflation. Regarding the RBA's performance in containing inflation in 2021-2022, it is important to note that this information is not available at the moment, as the year 2021 is still ongoing.
Therefore, it is not possible to comment on the RBA's specific performance during this period. It would be advisable to refer to official reports or updates from the RBA or reliable economic sources to obtain accurate information on their inflation containment efforts.
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Declare a as integer declare b as float set a = 2 while <= 3 set b = 2.5 * a write b set b = int(b) write b set a = a 1 end while
The right result of the code comparing to the given pseudocode is: 5, 5, 7.5, 7.
Here is the breakdown of the code execution:
Declare An as a whole number and B as a float.
Set A = 2.
Enter the while circle on the grounds that the condition A <= 3 is valid.
Work out B = 2.5 * A, which brings about B = 2.5 * 2 = 5.
Compose the worth of B, which is 5.
Set B = Int(B), which rounds down the worth of B to the closest number, bringing about B = 5.
Compose the worth of B, which is 5.
Increase A by 1, so A = 2 + 1 = 3.
Rehash the circle in light of the fact that A (3) is still not exactly or equivalent to 3.
Compute B = 2.5 * A, which brings about B = 2.5 * 3 = 7.5.
Compose the worth of B, which is 7.5.
Set B = Int(B), which rounds down the worth of B to the closest whole number, bringing about B = 7.
Compose the worth of B, which is 7.
Increase A by 1, so A = 3 + 1 = 4.
Leave the while circle on the grounds that A (4) is currently more noteworthy than 3.
Accordingly, the last result is 5, 5, 7.5, 7.
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When no access modifier is specified for a method or variable, the method or variable ________.
a. is public
b. is private
c. has package access
d. is static
Answer: The answer is B private
Explanation: because the variable is seperated from everything else
Cost of Equlty Radon Homes' current EPS is $7.10. It was $4.945 years ago. The company pays out 50% of its eamings as dividends, and the stock sells for $36. a. Calculate the historical growth rate in eamings. (hiAt: This is a 5 -year growth period.) Do not round intermediate calculations. Round your answer to two decimal places. of b. Calculate the next expected dividend per share, D D
1
. (Hint: D
0
=0.50($7.10)=$3.55.) Assume that the past growth rate will centinue. Do not round intermediate calculations. Round your answer to the nearest cent. 4 . c. What is Radon's cost of equity, Fs? Do not round intermediate calculations. Round your answer to two decimal places.
To calculate the historical growth rate in earnings, we can use the formula for the compound annual growth rate (CAGR):
CAGR = (Ending Value / Beginning Value)^(1 / Number of Periods) - 1
Using the given information:
Ending Value = Current EPS = $7.10
Beginning Value = EPS 5 years ago = $4.94
Number of Periods = 5 years
CAGR = ($7.10 / $4.94)^(1 / 5) - 1
CAGR ≈ 0.0728 or 7.28%
Therefore, the historical growth rate in earnings for Radon Homes over the past 5 years is approximately 7.28%.
b. To calculate the next expected dividend per share (D1), we can use the formula:
D1 = D0 * (1 + CAGR)
Using the given information:
D0 = Dividend payout ratio * Current EPS = 0.50 * $7.10 = $3.55
CAGR = 7.28% (from the previous calculation)
D1 = $3.55 * (1 + 0.0728)
D1 ≈ $3.82
Therefore, the next expected dividend per share (D1) is approximately $3.82.
c. To calculate Radon Homes' cost of equity (Rs), we can use the Gordon Growth Model:
Rs = (D1 / Stock Price) + g
Using the given information:
D1 = $3.82 (from the previous calculation)
Stock Price = $36
g = CAGR = 7.28% (from the first calculation)
Rs = ($3.82 / $36) + 0.0728
Rs ≈ 0.1061 or 10.61%
Therefore, Radon Homes' cost of equity is approximately 10.61%.
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