Answer:
$447
Explanation:
Calculation for What is Presido's payroll tax expense for the week
Using this formula
Payroll tax expense = Employer's FICA match + Federal unemployment tax + State unemployment tax
Let plug in the formula
Payroll tax expense = ($3,000 ×0.0765)
+$187.50 + $30.00
Payroll tax expense= $447
Therefore Presido's payroll tax expense for the week will be $447
The Draper Corporation is considering dropping its Doombug toy due to continuing losses. Data on the toy for the past year follow: Question 34 - Final If the toy were discontinued, Draper could avoid $8,000 per year in fixed costs. The remainder of the fixed costs are not avoidable. Suppose that if the Doombug toy is dropped, the production and sale of other Draper toys would increase so as to generate a $16,000 increase in the contribution margin received from these other toys. If all other conditions are the same, the financial advantage (disadvantage) from discontinuing the production and sale of Doom Bugs would be:
Answer:
the financial disadvantage is -$6,000
Explanation:
The computation of the financial advantage or disadvantage is as follows
= Lost of the contribution margin + avoidable fixed cost + increase in contribution margin
= -$30,000 + $8,000 + $16,000
= -$6,000
It should not be dropped as the saving cost is lower than the contribution loss
Hence, the financial disadvantage is -$6,000
Suppose that in 2020 the expected dividends of the stocks in a broad market index equaled $240 million when the discount rate was 8% and the expected growth rate of the dividends equaled 6%. Using the constant-growth formula for valuation, if the discount rate increases to 9%, the value of the broad market index will change by ________.
Answer:
-33.33%
Explanation:
This is the The formula for this solution:
Value of Market = Expected Dividend divided by (Discount Rate-Growth rate of Dividend)
The Expected Dividend is 240
Then Value of Market = 240/(8% - 6%)
= 12,000,000,000
Then we get Value of market when discount rate = 9%
The Value of Market = 240/(9% - 6%)
= 8,000,000,000
the market value has changed.
We then get the percentage change will be = (
= (12,000,000,000 - 8,000,000,000) / 12,000,000,000
= 33.33%
The market value has fallen by -33.33%
The composite interest rate (what the market price is) includes, just the pure interest rate none of the above. the pure interest rate plus allowances for financial uncertainty, tax preferences, and anticipated effect of price level changes. the inflation premium minus the pure rate.
Answer:
the pure interest rate plus allowances for financial uncertainty, tax preferences, and anticipated effect of price level changes
Explanation:
The rate of the compound interest involved the rate of interest i.e. pure also the allowance for the financial i.e. uncertainity, the preference of taxes, and the expected impact of the change in the price level
Therefore as per the given situation, the option 2 is correct as it represents the market price or the compound rate of interest
Therefore the same is to be considered
Masterson, Inc., has 8 million shares of common stock outstanding. The current share price is $68, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $65 million, has a coupon rate of 5 percent, and sells for 93 percent of par. The second issue has a face value of $50 million, has a coupon rate of 4 percent, and sells for 105 percent of par. The first issue matures in 23 years, the second in 8 years. Suppose the most recent dividend was $4.20 and the dividend growth rate is 4.3 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 24 percent. What is the company's WACC? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.)
Answer:
WACC=9.26%
Explanation:
Calculation for the company's WACC
First step is to calculate the Total Market Value
Total Market Value = 8,000,000*68+ 65,000,000*93% + 50,000,000*105%
Total Market Value = 544,000,000+60,450,000+52,500,000
Total Market Value = $656,950,000
Second step is to calculate the % Value of Equity,% Value of First Bond and % Value of Second Bond
% Value of Equity =544,000,000/$656,950,000*100
% Value of Equity = 82.81%
% Value of First Bond = 60,450,000/$656,950,000*100
% Value of First Bond= 9.20%
% Value of Second Bond = 52,500,000/$656,950,000*100
% Value of Second Bond =7.99%
Third step is to calculate Ke Using this formula
Ke = Cost of Equity = Dividend/Market Value per share + Growth Rate
Let plug in the formula
Ke = 4.2/68 + 4.3%
Ke= 6.18% + 4.3%
Ke= 10.48%
Last step is to calculate WACC using this formula
WACC = % Value of Equity * Cost of Equity + % Value of Debt * Cost Of Debt (1- Tax Rate)
Let plug in the formula for
WACC= 82.81% * 10.48% + 9.20% * 5% (1-0.24) + 7.99%* 4%(1-0.25)
WACC= 8.67%+ 9.20% * 5%(0.76)+7.99%* 4%(0.76)
WACC= 8.67%+ 9.20% * 3.8%+7.99%* 3.04%
WACC=8.67%+0.35%+0.24%
WACC=9.26%
Therefore the company's WACC will be 9.26%
The 2019 Form 10-K of Oracle Corporation, for the May 31, 2019 year-end, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $370 million, accounts written off during the year of $188 million, balance in allowance at the end of the year $371 million. What did Oracle Corporation report as bad debt expense for the year
Answer: $189
Explanation:
The amount that Oracle Corporation report as bad debt expense for the year will be calculated as:
Balance in allowance at the end of the year = $371
Add: Accounts written off during the year = $188
Less: Balance in allowance at the beginning of the year = ($370)
Bad debt = $189
Assume that the risk-free rate of interest is 2% and the expected rate of return on the market is 8%. A share of stock sells for $50 today. It will pay a dividend of $3 per share at the end of the year. Its beta is 1.2. What do investors expect the stock to sell for at the end of the year?
Answer: $51.60
Explanation:
The Gordon growth model can be used to calculate this however both the required return and the growth rate will need to be solved for.
Required return using CAPM;
= Risk free rate + beta * ( market return - risk free rate)
= 2% + 1.2 * ( 8% - 2%)
= 9.2%
Current price is $50. Using Gordon growth model, growth is;
Price = Next dividend / ( Required return - growth rate)
50 = 3 / ( 9.2% - g)
( 9.2% - g) * 50 = 3
( 9.2% - g) = 3/50
g = 9.2% - 3/50
g = 3.2%
Stock price at end of year using Gordon growth model;
= (3 * ( 1 + 3.2%)) / ( 9.2% - 3.2%)
= $51.60
With its current levels of input use, a firm's MRTS is 3 (when capital is on the vertical axis and labor is on the horizontal axis). This implies: Group of answer choices if it used one more unit of both capital and labor, the firm could produce 3 more units of output. the firm could produce 3 more units of output if it increased its use of labor by one unit (holding capital constant). if the firm reduced its capital stock by one unit, it would have to hire 3 more workers to maintain its current level of output. the firm could produce 3 more units of output if it increased its use of capital by one unit (holding labor constant). the marginal product of labor is 3 times the marginal product of capital.
Answer:
if the firm reduced its capital stock by one unit, it would have to hire 3 more workers to maintain its current level of output
Explanation:
In the case when the MRTS is 3 so this implies that the value mentioned is one by 3 so this represents the capital amount that are required to subsitute for one unit of labor to remian on the similar isoquant
Therefore as per the given situation, the above represent the answer
Hence, the same is to be considered
The following amounts were taken from the financial statements of Crane Company: 2017 2016 Total assets $790000 $900000 Net sales 680000 600000 Gross profit 300000 260000 Net income 54400 110000 Weighted average number of common shares outstanding 50000 50000 Market price of common stock $40 $36 The profit margin ratio for 2017 is
Answer: 8%
Explanation:
Profit Margin = Net income / Net sales
2017 Net income ⇒ $54,400
2017 Net Sales ⇒ $680,000
Profit Margin₂₀₁₇ = 54,400/680,000
= 0.08
= 8%
Liddy Corp. began constructing a new warehouse for its operations during the current year. In the year Liddy incurred interest of $30,000 on a working capital loan, and interest on a construction loan for the warehouse of $70,000. Interest computed on the average accumulated expenditures for the warehouse construction was $40,000. What amount of interest should Liddy expense for the year?
Answer: $60,000
Explanation:
Liddy should expense the $30,000 interest on a working capital loan.
Liddy should also expense the difference between the interest on the construction loan and the interest on the average accumulated expenditures for the warehouse construction as the $40,000 is directly related to the construction. The difference should therefore be expensed.
= 70,000 - 40,000
= $30,000
Interest to be expensed = 30,000 + 30,000
= $60,000
Lucy's Music Emporium opened its doors on January 1, 2015, and it was granted permission to use the same depreciation calculations for shareholder reporting and income tax purposes. The company planned to depreciate its fixed assets over 20 years, but in December 2015 management realized that the assets would last for only 15 years. The firm's accountants plan to report the 2015 financial statements based on this new information. How would the new depreciation assumption affect the company's financial statements? a. The firm's reported 2015 earnings per share would increase. b. The firm's EBIT would increase. c. The firm's net liabilities would increase. d. The firm's reported net fixed assets would increase.
Answer:
The firm's cash position in 2015 and 2016 would increase.
Explanation:
In the case when the life of an asset would decrease that represents the depreciation would rise and if the depreciation rise so the EBIT and EPS would reduced and in the case when the EBIT reduced, so automatically the tax expense is also reduce
So, the cash position of the firm woud increase
Hence, the above represents the answer
n the theory of perfect competition, the assumptions of many buyers and sellers, the production of a homogeneous product, and the possession of all relevant information by buyers and sellers imply that the perfectly competitive firm a. has a demand curve that is perfectly inelastic. b. has a demand curve that is perfectly elastic. c. sets the price it wishes. d. has a demand curve that is downward sloping
Answer:
b. has a demand curve that is perfectly elastic. c. sets the price it wishes
Explanation:
Elasticity of demand is a measure of the degree of change in quantity demanded to changes in price.
For a perfectly elastic demand it means that an infinite quantity of a product will be required by consumers at a particular price. The perfectly elastic demand curve is usually horizontal.
In perfectly competitive markets elasticity of demand is perfectly elastic because there are many buyers and sellers, production of a homogeneous product, and the possession of all relevant information by buyers and sellers.
So prices between products tend to be the same
is global economic resistance good or bad? why?
Answer:
The global economy can be a little frustrating because globalization and the global economy are terms that mean different things to different people. I have found that some people talk about the global economy and what they mean is the opening of markets and trade among nations—so that today you can buy products in a store that have been made everywhere around the world, and people everywhere around the world are buying products that we make.
That didn’t used to be the case, partly because transportation and communication technologies were inadequate and partly because there were a lot more political barriers and even wars going on that prevented people from trading with each other. But in the twentieth century—especially in the late twentieth century—there’s been a large-scale dismantling of political barriers to trade combined with a dramatic increase in communication and transportation technology that has opened up a new global market.
Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants.Listed below in random order are line items to be included in the statement of cash flows.Purchase of equipment $ 229,000Increase in inventory 35,000Increase in prepaid rent 7,500Payment of dividends 31,000Depreciation expense 13,000Increase in accounts receivable 47,000Increase in accounts payable 15,000Loss on sale of land 12,000Net income 69,000Repayment of notes payable 49,000Cash received from the sale of land 7,500Issuance of common stock 241,000Prepare the statement of cash flows for CEO Consultants using the indirect method.
Answer:
Ending cash balance is -$41,000.
Explanation:
This can be prepared as follows:
Nathan Herrmann
Cash Flow Statement
for the year ended ...
Details $ $
Net income 69,000
Adjustment to reconcile net income
Depreciation expense 13,000
Loss on sale of land 12,000
(Increase) decrease in current assets
Increase in inventory (35,000)
Increase in prepaid rent (7,500)
Increase in accounts receivable (47,000)
Increase (decrease) in current liabilities:
Increase in accounts payable 15,000
Net cash from operating activities 19,500
Cash flows from investing activities:
Cash received from the sale of land 7,500
Purchase of equipment (229,000)
Net cash flows from Investing activities (221,500)
Cash flows from financing activities:
Payment of dividends (31,000)
Repayment of notes payable (49,000)
Issuance of common stock 241,000
Net cash from financing activities 161,000
Increase / (Decrease) in cash (41,000)
Beginning cash balance -
Ending cash balance (41,000)
Stockholders' Equity of Riverwild Corporation consists of 50,000 shares of $8 par value, 5% cumulative preferred stock and 400,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Riverwild's Board of Directors did not declare any dividends last year, but now it declares and pays a $200,000 dividend at year-end. Required: A. Determine the total dividend amount distributed to the preferred shareholders this year (not the per share amount). B. Determine the total dividend amount distributed to the common shareholders this year (not the per share amount).
Answer:
a. $20,000
b. $180,000
Explanation:
Par value per preferred share = $8
Dividend rate = 5%
Dividend per preferred share = $8 * 5% = $0.40
Number of preferred shares = 50,000
a. Total dividend amount distributed to the preferred shareholders this year = 50,000 shares * $0.40 = $20,000
b. The total dividend amount distributed to the common shareholders this year = $200,000 - $20,000 = $180,000
Pollution of water and soil from activities such as oil and gas drilling is primarily related to: Select one: a. sustainability issue b. consumer relations c. community relations d. relations with stockholders e. employee relations
Answer:
a. sustainability issue
Explanation:
Sustainability refer to activities that are conducted in order to provide the well being for the long term with respect to the natural environment that also involved the all types of biological entities
Since in the question it is mentioned that the water pollution and the soil from activities is mainly related to the sustainability issue and hence, the same is to be considered
Therefore the correct option is a.
Assume the following: The standard labor rate is $8.50 per hour. The standard quantity of labor allowed per unit is 4 hours. The company paid $342,000 for 38,000 hours of labor. The company actually produced 10,000 units of finished goods during the period. What is the labor efficiency variance
Answer: 17000F
Explanation:
The labor efficiency variance based on the information provided in the question would be calculated as:
= (Standard hours - Actual hours) × Standard rate
= (40000 - 38000) × 8.50
= 2000 × 8.50
= 17000 favourable
Note;
Standard hours = 10000 × 4 hours = 40,000 hours
Hill Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $60 each. During the month, the company made two purchases: 500 units at $58 each and 2,000 units at $56 each. Hill Company also sold 2,150 units during the month. Using the periodic FIFO method, what is the cost of ending inventory
Answer:
$86,800
Explanation:
With regards to the above, first we need to add up all the units
= 1,200 units + 500 units + 2,000 units
= 3,700 units
The next step is to deduct the additional units sold from the total units
= 3,700 units - 2,150 units
= 1,550 units
The next step is to multiply $56, which is the value for last 2,000 units purchased to get the ending inventory.
= 1,550 units × $56
= $86,800
Therefore, the cost of ending inventory, using the periodic FIFO method is $86,800
Consider a city of 200 people (100 rich and 100 poor) and two neighborhoods (100 people in each). Both groups generally prefer to live with rich people and are willing to pay a premium for living with a fraction of rich people that is larger than 50%. Poor people’s premium curve is given as �!""# = 2�$, where x is the percentage of rich above 50% (e.g., if there are 52% rich, x will be 2). Rich people’s premium curve is given by �%&'( = 60� − 0.4�$. a) What is the equilibrium outcome (i.e., what is the share of rich and poor people, respectively). Explain.
Answer:give me Brainliest
Explanation:
Inflation is a measure of how prices
Which statements about scholarships are true? Select all that apply.
A student could receive a scholarship based on financial need.
Some scholarships require the student to pursue a specific field of study.
Scholarship money must be paid back after graduation.
Scholarships are considered gifts and do not need to be paid back.
All scholarships are based solely on academic achievement.
Answer:
A student could receive a scholarship based on financial need.
Some scholarships require the student to pursue a specific field of study.
Scholarships are considered gifts and do not need to be paid back.
Explanation:
Statements that are true about scholarships are
student could receive a scholarship based on financial needsome scholarships require the student to pursue a specific field of studyscholarships are considered gifts and do not need to be paid back.What is scholarships?An amount of money given by a school, college, university, or other organization to pay for the studies of a person with great ability but little finance."
Different types of scholarships are need based scholarships, merit based scholarships, athletics based scholarships and many more
Applying for economic scholarships based on need is quite common. These types of funds are only offered to those who can show some financial hardship.
The overall dollar amount that they make or that they have access to isn’t much of a concern.
There are several academic scholarships out there for those who've obtained stellar grades at school. If you believe you stand out from the crowd, you can apply for a merit based scholarship to colleges who are open to it.
Sports scholarships are an excellent way of seeking out financial aid for higher studies as there are fewer applicants for these scholarships as compared to other scholarships.
What are the Benefits of Getting a Scholarship for students?Following benefits are
Saves you from debtimproves performanceGives you a career advantage.Hence, option A,B and D are the correct answer
To learn more about scholarship here
https://brainly.com/question/21268071
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At the beginning of the year, a firm has current assets of $320 and current liabilities of $224. At the end of the year, the current assets are $477 and the current liabilities are $264. What is the change in net working capital
Answer: $780 dollars
Explanation:
Suppose labour is available to a firm at a cost of $ 15per hour. Also, suppose that employing another hour of labour adds 3 units to output, and any amount of output can be sold for $10 per unit.
To the nearest dollar, an additional hour of labour would add $___
nothing in additional revenue to the firm. Your answer should be a whole number.
Answer:
$30
Explanation:
Additional hour gives 3 units of output. Each is sold for $10. The total revenue for the additional labour hour would be 3 units x $10 for each.
=$10 x 3
=$30
A new sports car sells for $40,000. The value of the car decreases by 12% annually. After how many years will it be worth half of its selling price
Answer:
n= 6.11 years
Explanation:
Giving the following information:
Present value= $40,000
Future value= $20,000
Decrease rate= 0.12
To calculate the number of years for the car to reach a value of $20,000; we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(20,000/40,000) / ln(1.12)
n= 6.11 years
On November 1, 2017, National Company sold inventory to a foreign customer. The account will be settled on March 1 with the receipt of 200,000 foreign currency units (FCU). On November 1, National also entered into a forward contract to hedge the exposed asset. The forward rate is $0.80 per unit of foreign currency. National has a December 31 fiscal year-end. Spot rates on relevant dates were:
Answer:
$162,000 and $4,000 loss
Explanation:
The computation of the adjusted basis in the account receivable and the gain or loss is as follows:
As on Nov 1, the foreign currency rate on date of sale is $0.83
The account receivable should be recorded at
= 200,000 × $0.83
= $166,000
Now the foreign currency rate is reduced to $0.81
So the loss is recorded
= ($0.83 - $0.81) × $2,00,000
= $4,000 loss
And, Receivable balance on Dec 31 is
= $166,000 - $4,000
= $162,000
What is the form of payment, form of acquisition, acquisition vehicle, and post-closing organization?
Answer:
Check explanation section.
Explanation:
In order to be able to understand and to solve this problem efficiently one must read the case study which is in the Question's comment section.
So, from the case study it can be shown that in order to make sure that there is increament in equity, the kind of financing that took place is through Borrowing. Hence, the form of payment is through BORROWING.
In order to buy, it has to be done via or through what is called merger or say corporate merger. The form of acquisition is through MERGING.
The post closing organization in the case study is HEINZ. The acquisition vehicle is the fact that something was bought from the Hawks.
Suppose a company spends $200,000 in the current year to research and develop a navigation device for hikers. By the end of the year, the company estimates that the new navigation device has a 70% chance of generating $500,000 in revenues from sales to customers over the next four years. For what amount would the company report research and development expense in the current year
Answer: $200,000
Explanation:
The company spent $200,000 on the research that led to the development of the navigation device and according to Accounting guidelines, Research and Development costs are to be expensed in the period that they occurred.
The entire $200,000 that was spent should therefore be expensed as Research and Development.
You are on an Integrated Product Team (IPT) working on putting together a Request for Proposal (RFP) for a small, highly precedented software system. The system is comprised entirely of Commercial-Off-the-Shelf (COTS) products that run entirely on commercial hardware. For this type of system, an appropriate choice of contract type might be a:
Answer: Firm-Fixed-Price contract
Explanation:
A Firm-Fixed-Price contract offers a price that is not subjected to any adjustments on the basis of the contractor's cost experience in performing the contract. The contractor is placed and faced with full responsibility and a high risk for all costs and resulting profit or loss. It requires the contractor to provide a specified level-of-effort over a stated period of work that can be stated only in general terms, and the Government pays the contractor a fixed-dollar amount.
Which leadership theory states that the challenge facing leaders is first to analyze the situation and identify the most appropriate style of leadership and then to develop the capacity to be flexible enough to use different leadership styles as appropriate
Answer:
path-goal approach to leadership
Explanation:
According to the information provided by the question above, the most adequate leadership theory is that of path goal leadership approach, which is a model characterized by the adequacy of the leader's behavior in relation to the behavior of employees in the work environment, or in other words, the leader has the flexibility to vary his actions according to the expectations of the employees, with this it is believed that there will be greater motivation and productivity at work.
This theory has as its central focus the adaptation of the leader to the individual needs of each employee in order to provide the best tools and the ideal way to obtain the expected objectives and goals.
The time inconsistency of policy implies that a. what policymakers say they will do is generally what they will do, but people don't believe them because of current policy. b. what policymakers say they will do is usually not what they do, but people believe them anyway. c. when people expect that inflation will be low, it is harder for the Fed to increase output by increasing the money supply. d. people expect Fed policy to be more inflationary than the Fed claims.
Answer:
The time inconsistency of policy implies that
a. what policymakers say they will do is generally what they will do, but people don't believe them because of current policy.
Explanation:
When the current policy of a decision maker does not agree with the current practice due to the passage of time because policies that were determined to be optimal before now are no longer considered to be optimal today and are not implemented, then there is said to be a problem of time inconsistency of policy. It generally happens in the formulation and implementation of monetary policies by the central bank.
Answer:
people expect Fed policy to be more inflationary than the Fed claims.
Explanation:
I'm not sure why the answer is right I just wanted to put the correct one on here since the other one is wrong so here you go.
The Tierney Group has two divisions of equal size: an office furniture manufacturing division and a data processing division. Its CFO believes that stand-alone data processor companies typically have a WACC of 9%, while stand-alone furniture manufacturers typically have a 13% WACC. She also believes that the data processing and manufacturing divisions have the same risk as their typical peers. Consequently, she estimates that the composite, or corporate, WACC is 11%. A consultant has suggested using a 9% hurdle rate for the data processing division and a 13% hurdle rate for the manufacturing division. However, the CFO disagrees, and she has assigned an 11% WACC to all projects in both divisions. Which of the following statements is CORRECT?
A. The decision not to adjust for risk means, in effect, that it is favoring the data processing division. Therefore, that division is likely to become a larger part of the consolidated company over time.
B. The decision not to adjust for risk means that the company will accept too many projects in the manufacturing division and too few in the data processing division. This will lead to a reduction in the firm's intrinsic value over time.
C. The decision not to risk-adjust means that the company will accept too many projects in the data processing business and too few projects in the manufacturing business. This will lead to a reduction in its intrinsic value over time.
D. The decision not to risk-adjust means that the company will accept too many projects in the manufacturing business and too few projects in the data processing business. This may affect the firm's capital structure but it will not affect its intrinsic value.
E. While the decision to use just one WACC will result in its accepting more projects in the manufacturing division and fewer projects in its data processing division than if it followed the consultant's recommendation, this should not affect the firm's intrinsic value.
Answer:
The Correct statement is option B. The decision of the company not to adjust for risk means that the company will have to accept too many projects in the office furniture manufacturing division and too few in the data processing division.
Explanation:
Based on the information given the decision of the company not to adjust to the risks will lead to the firm accepting project that are too many in the office furniture Manufacturing Divsion while that of data processing Division will accept too few project, which means that the firm will be at risk in a situation where they want to raise the cost of capital reason been that the company cash flow will be Discounted by the investor at a rate that is high which will inturn Lead to the company value to decline.
Therefore The Correct statement is option B.
