You are researching a public traded company. The current traded price of the company is at $95.43. You expect next four quarters' dividend payment is $0.52,$0.53,$0.53, and $0.53. The company's raw beta is 0.90. Assume 20-year government bond yield is at 3%, and equity risk premium of 6.5%. In your written response, please start with question numbers such as a), b), c), or d) before showing your work and answer to the question. a) How much is the required return in the investment in the company? (2 points) b) You believe that the one-year target price is at $104. What is your one-year expected return? (2 points) c) Based on the required return and the expected return information, how much is the return from convergence of price to value? (2 points) d) What is the target price that is most consistent with the company being fairly valued? ( 2 points)

Answers

Answer 1

a) Required Return = 8.85%.  b) Expected Return = 9.03%. c) The target price that is most consistent with the company being fairly valued is $141.90.

a) The equation for finding the required return on the investment is:

Required Return = Risk-free rate + Beta × Equity Risk Premium

Rf = 3%

ERP = 6.5%

B = 0.90

So,

Required Return = 3% + 0.90(6.5%)

= 8.85%

b) You believe that the one-year target price is at $104.

One-year expected return can be calculated as follows:

Expected Return = (Target Price + Dividends) ÷ Current Price - 1

Dividend for four quarters are: $0.52 + $0.53 + $0.53 + $0.53

= $2.11

Expected Return = ($104 + $2.11) ÷ $95.43 - 1

= 9.03%

c) The convergence of price to value can be calculated by the difference between expected return and required return:

Convergence of price to value = Expected Return - Required Return

= 9.03% - 8.85%

= 0.18%

d) The price that is most consistent with the company being fairly valued can be found using the Gordon Growth Model.

Gordon Growth Model: P0 = D1/(r-g)

P0 = price

D1 = next year's dividend

= $0.53

r = Required Return

= 8.85%

g = Growth Rate

= Retention Ratio × Return on Equity

Retention Ratio = 1 - Payout Ratio

Payout Ratio = Total Dividends / Net Income

= $2.11 / $10.00

= 21.1%

Return on Equity = Net Income / Shareholders Equity

= $10.00 / $40.00

= 25%

So, Retention Ratio = 1 - 21.1%

= 78.9%

g = 78.9% × 25%

= 19.725%

Putting the values in Gordon Growth Model:

$95.43 = $0.53/(0.0885 - 0.19725)

Target Price = $141.90

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Answer 2

The required return is 8.85%, the one-year expected return is 11.16%, the return from convergence of price to value is 2.31%, and the target price that is most consistent with the company being fairly valued is $106.26.

a) To calculate the required return on investment, we can use the Capital Asset Pricing Model (CAPM). The formula for CAPM is: Required Return = Risk-Free Rate + (Beta * Equity Risk Premium).

Given that the 20-year government bond yield is 3% and the equity risk premium is 6.5%, we can plug in these values along with the company's raw beta of 0.90 into the formula. The required return is 3% + (0.90 * 6.5%) = 3% + 5.85% = 8.85%.

b) The one-year expected return can be calculated by adding the dividend yield and the expected capital gains. The dividend yield is the sum of the expected dividend payments divided by the current price. In this case, it is (0.52 + 0.53 + 0.53 + 0.53) / 95.43 = 2.18%.

The expected capital gains can be calculated as the difference between the one-year target price and the current price divided by the current price. In this case, it is (104 - 95.43) / 95.43 = 8.98%. Adding these two percentages together, the one-year expected return is 2.18% + 8.98% = 11.16%.

c) The return from convergence of price to value can be calculated as the difference between the one-year expected return and the required return. In this case, it is 11.16% - 8.85% = 2.31%.

d) The target price that is most consistent with the company being fairly valued can be calculated using the formula: Target Price = Current Price * (1 + Expected Return). Plugging in the values, the target price is 95.43 * (1 + 0.1116) = $106.26.

In summary, the required return is 8.85%, the one-year expected return is 11.16%, the return from convergence of price to value is 2.31%, and the target price that is most consistent with the company being fairly valued is $106.26.

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Related Questions

The demand for company x's product is given by qx=15-3px 4py. suppose good x sells for $3.00 per unit and good y sells for $1.50 per unit.

Answers

a. The cross-price elasticity of demand between goods X and Y is indeterminate. b. The classification of goods X and Y are complements. c. The own price elasticity of demand for good X is -1, indicating unitary elasticity. The whole calculation is shown in the attached image below.

Elasticity of demand is a measure of how sensitive the quantity demanded of a good or service is to changes in its price or other factors. It quantifies the responsiveness of demand to changes in various variables. The elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price (or another relevant factor).

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The complete question might be:

The demand for company X's product is given by Qx = 12 - 3Px + 4Py. Suppose good X sells for $3.00 per unit and good Y sells for $1.50 per unit. a. Calculate the cross-price elasticity of demand between goods X and Y at the given prices. b. Are goods X and Y substitutes or complements? c. What is the own price elasticity of demand at these prices?

in which of the following cases was the inflation rate 12 percent over the last year? a. one year ago the price index had a value of 145 and now it has a value of 163. b. one year ago the price index had a value of 134 and now it has a value of 150. c. one year ago the price index had a value of 110 and now it has a value of 120. d. one year ago the price index had a value of 120 and now it has a value of 132

Answers

One year ago, when the price index had a value of 145, and now it has a value of 163, the inflation rate is approximately 12 percent. The answer is option a.

The inflation rate can be calculated using the following formula:

Inflation rate = ((Current Price Index - Previous Price Index) / Previous Price Index) * 100

a. Inflation rate = ((163 - 145) / 145) * 100 = (18 / 145) * 100 ≈ 12.41%

b. Inflation rate = ((150 - 134) / 134) * 100 = (16 / 134) * 100 ≈ 11.94%

c. Inflation rate = ((120 - 110) / 110) * 100 = (10 / 110) * 100 ≈ 9.09%

d. Inflation rate = ((132 - 120) / 120) * 100 = (12 / 120) * 100 = 10%

Among the given cases, the only one where the inflation rate is approximately 12 percent is case a. Therefore, the answer is option a. One year ago, when the price index had a value of 145, and now it has a value of 163, the inflation rate is approximately 12 percent.

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Subject: Organizational Behavior
You oversee a team tasked to expand business operations to one of your selected countries. As the manager, compare and contrast the cultures for two selected countries. Explain how history has likely influenced the countries' values. Also, explain how you, as the manager, would consider the impact of these values on your business and management decisions. Describe how you will change the way you manage a workforce in this country.
Please select two countries to address for this discussion. Be certain the selected countries have different histories (e.g., U.S.A. and Switzerland).

Answers

When expanding business operations to two selected countries with different histories, it is important to compare and contrast their cultures. History has likely influenced the values of these countries, shaping their societal norms and behaviors. As a manager, it is crucial to consider the impact of these values on your business and management decisions.

For example, let's compare and contrast the cultures of the United States and Japan. The United States values individualism, competition, and diversity. This is influenced by its history of immigration and the American Dream. On the other hand, Japan values collectivism, harmony, and respect for authority. This is influenced by its history of feudalism and Confucianism.

To manage a workforce in these countries, you will need to adapt your management style accordingly. In the United States, you may focus on promoting individual achievements and encouraging competition. In Japan, you may prioritize teamwork, consensus-building, and respecting hierarchies.

Understanding and respecting the cultural values of each country will enable you to make informed decisions that align with the local norms and preferences. This will foster a positive work environment and enhance the success of your business operations.

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Consider the Scientific Management and Bureaucratic theories. Based
on the critique of each from the Critical perspective, which do you
believe is ultimately the weakest of the 2 theories.

Answers

The weakest of the two theories, Scientific Management and Bureaucratic theories, can be determined by using the Critical perspective.

Scientific Management TheoryThis theory is weak because it focuses on efficiency over worker welfare. It assumes that employees are lazy and need to be supervised. However, this is not the case in all situations. People's morale, satisfaction, and welfare are all critical in motivating them to work hard, which the theory does not address.Bureaucratic TheoryThis theory is weak because it overemphasizes on rules and regulations rather than efficiency. It lacks communication and interaction between departments, resulting in conflicts and delays.

The rules are adhered to without flexibility, resulting in employees becoming rigid and unmotivated. As a result, the bureaucratic system is sluggish and challenging to navigate. Hence, it's weaker than the scientific management theory.In conclusion, the bureaucratic theory is weaker than the scientific management theory from the critical perspective because it is too rule-oriented and lacks flexibility, resulting in employee rigidity and demotivation.

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he balance sheet contains the following major sections:

a. Current assets f. Current liabilities b. Long-term investments g. Long-term liabilities c. Property, plant, and equipment h. Contributed capital d. Intangible assets i. Retained earnings e. Other assets j. Accumulated other comprehensive income

____ 1. Unexpired insurance

____ 2. Idle machinery

____ 3. Unrealized increase in available-for-sale securities

____ 4. Land

____ 5. Fund to retire preferred stock

____ 6. Additional paid-in capital on common stock

____ 7. Deferred income taxes-noncurrent

____ 8. Obligation for future pension payments

____ 9. Trademark

____ 10. Unearned ticket sales

Answers

The major sections of the balance sheet include: Current assets, Long-term investments, Property, plant, and equipment, Intangible assets, Other assets, Current liabilities, Long-term liabilities, Contributed capital, Retained earnings, and Accumulated other comprehensive income.

Now, let's categorize the given items according to the appropriate balance sheet sections: Current Assets: Unexpired insurance Unearned ticket sales Other Assets: Idle machinery Land Long-term Investments: Unrealized increase in available-for-sale securities Property, plant, and equipment: None Intangible assets: Trademark Current liabilities: None Long-term liabilities: Obligation for future pension payments Fund to retire preferred stock Contributed capital: Additional paid-in capital on common stock Retained earnings: None Accumulated other comprehensive income: Deferred income taxes-non current. In conclusion, the correct categorization of the given items according to the appropriate balance sheet sections are: Current assets (1, 10), Other assets (2, 4, 5), Long-term investments (3), Intangible assets (9), Long-term liabilities (7, 8), Contributed capital (6), and Accumulated other comprehensive income (7).

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the $36.0 million lottery payment that you have just won actually pays $1.8 million per year for 20 years. the interest rate is 8%. if the first payment comes in 1 year, what is the present value of the winnings?

Answers

The present value of a $36.0 million lottery payment, paid out as $1.8 million per year for 20 years with an 8% interest rate, is approximately $17,689,085.69. This represents the current worth of the future cash flows adjusted for the time value of money.

To calculate the present value of the lottery winnings, we can use the formula for the present value of an annuity. Given that the annual payment is $1.8 million for 20 years and the interest rate is 8%, we can calculate the present value as follows

PV = Payment x [1 - (1 + r)⁻ⁿ] / r

Where PV is the present value, Payment is the annual payment, r is the interest rate, and n is the number of years.

Plugging in the values:

Payment = $1.8 million

r = 8% = 0.08

n = 20

PV = $1.8 million x [1 - (1 + 0.08)⁻²⁰] / 0.08

Calculating this expression yields:

PV = $1.8 million x [1 - (1.08)⁻²⁰] / 0.08

PV ≈ $17,689,085.69

Therefore, the present value of the winnings is approximately $17,689,085.69.

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The opportunity cost of an item is

(1pts)

Question 6 - The opportunity cost of an item is

what you give up to get that item.

the number of hours needed to earn money to buy it.

always equal to the dollar value of the item.

always less than the dollar value of the item.

7)

The term which means whatever must be given up to obtain an item is

(1pts)

Question 7 - The term which means whatever must be given up to obtain an item is

efficiency.

externality.

losses

opportunity cost.

8)

Absolute advantage is found by

(1pts)

Question 8 - Absolute advantage is found by

comparing opportunity costs.

calculating the dollar cost of production.

comparing the productivity of one nation to that of another.

first determining which country has a comparative advantage.

9)

Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we know that the opportunity cost of 1 chair for

(2pts)

Question 9 - Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we know that the opportunity cost of 1 chair for

Mike is 18/6 tables and 20/4 tables for Sandy.

Mike is 6/18 tables and 4/20 tables for Sandy.

Mike is 20/4 tables and 18/6 tables for Sandy.

Mike is 4/20 tables and 6/18 tables for Sandy.

10)

Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we know that the opportunity cost of 1 table for

(2pts)

Question 10 - Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we know that the opportunity cost of 1 table for

Mike is 18/6 tables and 20/4 tables for Sandy.

Mike is 6/18 tables and 4/20 tables for Sandy.

Mike is 20/4 tables and 18/6 tables for Sandy.

Mike is 4/20 tables and 6/18 tables for Sandy.

Answers

The opportunity cost of an item is what you give up to get that item. Thus, option B is correct.

7. The term which means whatever must be given up to obtain an item is opportunity cost. Thus, option D is correct.

8. Absolute advantage is found by comparing the productivity of one nation to that of another. Thus, option C is correct.

9. Mike is 6/18 tables and 4/20 tables for Sandy. Thus, option B is correct.

Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them.

Making smarter decisions requires an understanding of the possible possibilities lost when a company or person chooses one investment over another. Opportunity cost is a wholly internal expense that is only utilized for strategic consideration; it is not included in accounting profit and is not reported externally.

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On July 1,20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $7,500,000 of 7 -year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $7,151,429. Interest on the bonds is payable semiannually on December 31 and June 30 . The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1,20Y1. Feedback Check My Work 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. 3. Determine the total interest expense for 20Y1. Round to the nearest dollar. \& 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? 5. Compute the price of $7,151,429 received for the bonds by using the Present value at compound interest, and Present value of an values

Answers

1. The journal entry to file the cash proceeds from the issuance of the bonds on July 1, 20Y1 is Debit: Cash (7,151,429) and Credit: Bonds Payable (7,151,429).

2. The journal entries to record the primary semiannual interest expense and bond cut price amortization on December 31, 20Y1, are Interest Expense is debited for $412,500, Discount on Bonds Payable is debited for $19,286, and Cash is credited for $393,214, while Interest Payable is credited for $412,500.

3. The interest cost is $825,000. 4. When the agreement rate is much less than the marketplace charge of hobby, the bond proceeds could be less than the face quantity of the bonds.

1. Journal access to file coins proceeds from bond issuance on July 1, 20Y1:

Date: July 1, 20Y1

Account                 Debit       Credit

Cash                    $7,151,429

Bonds Payable                           $7,500,000

Discount on Bonds Payable              $348,571

    (To record issuance of bonds at a discount)

2. Journal entries to report the first semiannual hobby fee and bond cut price amortization on December 31, 20Y1:

Date: December 31, 20Y1

Account                 Debit       Credit

Interest Expense                    $412,500

Discount on Bonds Payable           $19,286

    (To record interest price and bond bargain amortization)

Cash                                $393,214

Interest Payable                               $412,500

    (To file the charge of interest)

3. Total interest fee for 20Y1:

The interest cost for the first interest charge becomes $412,500. Since the hobby is payable semiannually, the whole interest expense for the 12 months might be two times that quantity:

$412,500 x 2 = $825,000

4. When the agreement rate is much less than the marketplace charge of hobby, the bond proceeds could be less than the face quantity of the bonds. This is due to the fact buyers demand a higher return (interest rate) for bonds when the marketplace charge is higher than the agreed fee.

The discount serves as compensation for the lower hobby charge at the bonds.

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The correct question is:

"On July 1,20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $7,500,000 of 7-year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $7,151,429. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the number of cash proceeds from the issuance of the bonds on July 1,20Y1. Feedback Check My Work 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. 3. Determine the total interest expense for 20Y1. Round to the nearest dollar.4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?"

Value Of CD. Travis Has Invested $1,600 In A Three-Month CD At 3.57% Interest. How Much Will Travis Have When The CD Matures? When The CD Matures, Travis Will Have S (Round To The Nearest Cent.)

Answers

Travis has invested 1,600 in a three-month CD at 3.57% interest. The question is asking how much Travis will have when the CD matures.

The formula for calculating the value of a CD

V = P[tex](1 + r/n)^{(nt)[/tex]

Where V is the value of the CD, P is the principal (initial investment), r is the interest rate, n is the number of times interest is compounded per year, and t is the time in years. In this case

The principal is 1,600, the interest rate is 3.57%, and the CD is for three months, which is 1/4 of a year (since there are 12 months in a year). So we have

since interest is compounded once per quarter

r = 3.57% (or 0.0357 as a decimal)

t = 1/4 (since the CD is for three months, or 1/4 of a year)

P = 1,600

Plugging these values into the formula,

we get V = 1,600[tex](1 + 0.0357/1)^{(1/4 * 1)[/tex]

Simplifying this, we get [tex]V = $1,600(1.008925)^{0.25[/tex]

V = 1,600(1.002226)

S = 1,603.56

Therefore, Travis will have 1,603.56 when the CD matures.

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Calculate the present value of $5,000 received six years from today if your investments pay for the following interest rates (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g. 32.16)) Present Value a. 5 percent compounded annually b. 7 percent compounded annually c. 9 percent compounded annually d. 9 percent compounded semiannually e. 9 percent compounded quarterly

Answers

To calculate the present value of $5,000 received six years from today at different interest rates, we can use the formula for present value:

PV = FV / (1 + r)^n

Where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.

a. 5 percent compounded annually:

PV = 5000 / (1 + 0.05)^6 = $3,841.75

b. 7 percent compounded annually:

PV = 5000 / (1 + 0.07)^6 = $3,348.35

c. 9 percent compounded annually:

PV = 5000 / (1 + 0.09)^6 = $2,761.32

d. 9 percent compounded semiannually:

Since the interest is compounded semiannually, we need to adjust the interest rate and the number of periods:

PV = 5000 / (1 + 0.09/2)^(6*2) = $2,734.56

e. 9 percent compounded quarterly:

Since the interest is compounded quarterly, we need to adjust the interest rate and the number of periods:

PV = 5000 / (1 + 0.09/4)^(6*4) = $2,716.25

Therefore, the present value of $5,000 received six years from today varies based on the interest rate and compounding frequency. The values are as follows:

a. $3,841.75

b. $3,348.35

c. $2,761.32

d. $2,734.56

e. $2,716.25.

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Current Attempt in Progress Wildhorse Construction Company uses the percentage-of-completion method of accounting. In 2020. Wildhorse began work under contract with a contract price of $1,550,000. Other details follow: Assuming the same facts as those above except that Wildhorse uses the completed-contract method of accounting what portion of the total contract price would be recognized as revenue in 2021 ? Revenue recognized in 2021

Answers

The percentage of the work that Wildhorse Construction Company has completed under the percentage-of-completion method of accounting is 0.375.

the percentage-of-completion method of accounting recognizes revenue as a percentage of the work completed. In this case, the company has incurred $450,000 of costs to date, which is 37.5% of the total expected cost of the project ($1,200,000). Therefore, the percentage of the work that has been completed is 0.375.

The amount of revenue recognized in 2020 is $150. This amount is calculated by multiplying the percentage of work completed (0.375) by the total contract price ($1,550,000).

The percentage of the work that Wildhorse Construction Company has completed under the percentage-of-completion method of accounting is 0.375.

Now let's find the revenue recognized under the completed-contract method in 2021.

In the completed-contract method, revenue is not recognized until the project is complete. Therefore, the entire contract price of $1,550,000 would be recognized as revenue in 2021.

The portion of the total contract price that would be recognized as revenue in 2021 under the completed-contract method is $1,550,000.

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2. [8 marks] Static hedging with options. Consider a parametrised family of European contingent claims with the payoff X(L) at time I given by the following expression X(L) = min (2|K - Sr| +K - ST, L) where a real number K > 0 is fixed and L is an arbitrary real number such that L>0. (a) Sketch the profile of the payoff X(L) as a function of the stock price St and find a decomposition of X(L) in terms of terminal payoffs of standard call and put options with expiration date T. Notice that the decomposition of X(L) may depend on the value of the variable L.

Answers

The payoff function X(L) is a parametrised family of European contingent claims. It has a profile that depends on the stock price St and a fixed number K. The payoff function X(L) can be decomposed into terminal payoffs of standard call and put options with expiration date T. The decomposition may vary depending on the value of the variable L.

The payoff function X(L) is given by X(L) = min (2|K - Sr| + K - ST, L), where K is a fixed positive number and L is an arbitrary positive number. To sketch the profile of X(L) as a function of the stock price St, we need to consider different scenarios based on the relative values of St and K.

When St < K, the first term 2|K - Sr| will dominate the expression, resulting in a linear payoff profile with respect to St. As St approaches K, the slope of the payoff function increases.

When St > K, the second term K - ST will dominate the expression. In this case, the payoff is constant and equal to L, regardless of the stock price.

The decomposition of X(L) in terms of terminal payoffs of standard call and put options with expiration date T will depend on the value of L. When L > 2K, the decomposition will involve both call and put options. However, when L < 2K, only one of the options will be involved in the decomposition, depending on the specific values of St and K.

In summary, the payoff function X(L) can be visualized as a combination of linear and constant segments, depending on the relative values of St and K. The decomposition of X(L) into terminal payoffs of call and put options will vary based on the value of L and the relationship between L and 2K.

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Explain Equilibrium of the Market and how price is determined? 200 words

Answers

The equilibrium of the market is a state of balance where the quantity demanded by consumers matches the quantity supplied by producers. In a competitive market, the price is determined by the interaction of supply and demand forces.

The equilibrium of the market is achieved when the quantity demanded by consumers equals the quantity supplied by producers. This balance occurs at a specific price level, known as the equilibrium price. The equilibrium price is determined by the interaction of supply and demand forces in a competitive market.

Demand represents the quantity of a good or service that consumers are willing and able to buy at various price levels. Generally, consumers tend to demand more of a good at lower prices and less at higher prices. Supply, on the other hand, represents the quantity of a good or service that producers are willing and able to offer at different price levels. Producers are generally willing to supply more of a good at higher prices and less at lower prices.

The equilibrium price is found at the intersection of the demand and supply curves. At prices above the equilibrium, the quantity supplied exceeds the quantity demanded, leading to a surplus. In response, producers lower their prices to encourage more consumption, which eventually reduces the surplus. Conversely, at prices below the equilibrium, the quantity demanded exceeds the quantity supplied, resulting in a shortage. Producers can then raise their prices to decrease demand and alleviate the shortage.

Through these adjustments, the market gradually reaches a point where supply and demand are in balance, resulting in the equilibrium price. At this price, there is no excess supply or demand, and the market operates efficiently. However, external factors such as changes in consumer preferences, input costs, or government regulations can shift the supply and demand curves, leading to a new equilibrium.

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Immediately following the financial statements is(are) the ____________________.

Answers

Immediately following the financial statements, companies typically include the management discussion and analysis (MD&A) section.

The MD&A provides an in-depth narrative and analysis of the financial performance, results of operations, and overall financial condition of the company. It offers insights into the significant trends, risks, uncertainties, and factors that have influenced the company's financial performance during the reporting period.

The MD&A allows management to provide context and interpretation of the financial statements, discussing key events, strategic initiatives, market conditions, and future prospects. This section serves as a valuable tool for investors, analysts, and stakeholders to gain a deeper understanding of the financial statements and the company's overall performance. It complements the quantitative information presented in the financial statements with qualitative explanations and insights.

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Given the below information, will the taxpayer (MFJ status) owe or be entitled to a refund? - Gross Income: $98,000, including QBI of 10,000 but no dividends or capital gains - For AGI deductions: 6,000- - Itemized deductions: 16,000 - Tax credits: $2,000 t - Prepayments (withholdings): $6,000++10,000 98,000 96,000

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The result is negative, the taxpayer is entitled to a refund of $680. Therefore, the taxpayer (MFJ status) will be entitled to a refund.

In the given case, the taxpayer (MFJ status) will be entitled to a refund. To determine whether a taxpayer owes or is entitled to a refund, we must first calculate their taxable income. For MFJ status, in 2020, the standard deduction is $24,800 ($12,400 for single individuals). AGI (Adjusted Gross Income) is the total income minus any adjustments made before calculating taxes. The formula to calculate taxable income is as follows:Taxable Income = AGI - Itemized deductions or standard deduction - Personal exemptionsThe taxpayer's AGI is $98,000, which includes QBI (Qualified Business Income) of $10,000 but no dividends or capital gains. $6,000 is used for AGI deductions and $16,000 for itemized deductions.

Since the itemized deductions are greater than the standard deduction, the taxpayer can use that instead. As a result, the taxable income is calculated as follows:Taxes = ($98,000 - $6,000 - $16,000 - $24,800) x 0.12 - $1,000 = $5,320, where $1,000 is the Tax Credits - Taxes owed = $5,320 - $6,000 (Prepayments) = -$680. Since the result is negative, the taxpayer is entitled to a refund of $680. Therefore, the taxpayer (MFJ status) will be entitled to a refund.

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ABCDE CEO John Lenon used a strategy of rapid innovation and low-cost manufacturing to propel his company to become one of Singapore's top-selling electronics manufacturers.

If you were given the opportunity to operate a major electronics company, why would you pursue a similar strategy for brand growth? (rapid innovation and low cost manufacturing)

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Pursuing a strategy of rapid innovation and low-cost manufacturing can fuel brand growth by staying ahead of the competition, meeting customer demands, and achieving cost efficiencies.

If given the opportunity to operate a major electronics company, I would indeed pursue a strategy of rapid innovation and low-cost manufacturing for brand growth. This approach has proven to be highly effective for companies like ABCDE under the leadership of CEO John Lenon, and there are compelling reasons to emulate such a strategy.

Firstly, rapid innovation is crucial in today's fast-paced market. Technology evolves at an unprecedented rate, and consumers constantly seek new and improved products. By prioritizing innovation, a company can stay ahead of competitors, meet changing customer demands, and maintain a strong market position. It allows for the introduction of cutting-edge features, improved functionality, and enhanced user experiences.

Secondly, low-cost manufacturing is essential for remaining competitive and maximizing profitability. By optimizing manufacturing processes, streamlining the supply chain, and implementing cost-effective production methods, a company can reduce expenses and offer products at competitive prices. This attracts price-conscious consumers and helps capture market share from competitors.

Moreover, a focus on low-cost manufacturing enables a company to potentially expand into emerging markets or target price-sensitive demographics. By offering affordable yet high-quality products, a company can tap into new customer segments and drive sales growth.

In conclusion, pursuing a strategy of rapid innovation and low-cost manufacturing can fuel brand growth by staying ahead of the competition, meeting customer demands, and achieving cost efficiencies. It allows for continuous improvement, customer satisfaction, and broader market reach, ultimately leading to a stronger and more successful electronics company.

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Consider the following simplified scenario. Imagine that the Australian national rugby union
(for short, Rugby AU) has exclusive rights to organize the games played by the national team.
Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., the
Australian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadium
in Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginal
cost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be sold
for the game: concession and full fare. Based on any official document that attests to their age,
children and pensioners qualify to purchase concession tickets that offer a discounted price;
everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. The
demand for concession tickets is QC(P) = 80 – 2P

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In this scenario, Rugby AU has decided to host a match between the Wallabies and the All Blacks at the Marvel Stadium in Melbourne. Rugby AU incurs a marginal cost (MC) of $20 per seat from the owners of the stadium, but there are no fixed costs associated with organizing the game.



There are two types of tickets being sold for the game: full-fare and concession tickets. Full-fare tickets are available to everyone except children and pensioners, and their demand is given by the equation QF(P) = 120 - 2P, where P represents the price of the ticket. Concession tickets are available for children and pensioners who qualify based on their age. The demand for concession tickets is given by the equation QC(P) = 80 - 2P, where P represents the price of the ticket.
To maximize its revenue, Rugby AU needs to determine the optimal prices for both types of tickets. They need to find the price that maximizes the total revenue, which is calculated as the product of the price and the quantity demanded at that price. To find the optimal prices, Rugby AU needs to find the price that maximizes the sum of the revenue from full-fare tickets and the revenue from concession tickets. They can do this by setting the derivative of the total revenue equation with respect to the price equal to zero and solving for the price.

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In Part 1−2 we discussed GDP and GDI and how they differ. Which is a better measure of expenditures? GDI They are roughly the same GDP

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In Part 1-2, GDP and GDI have been discussed as to how they differ from each other. Between the two measures of expenditures, GDP is considered a better measure of expenditures.

GDP or Gross Domestic Product is the measure of the total goods and services that a country has produced in a given year within its borders. The formula for calculating GDP is: GDP = C + I + G + (X-M), where: C = consumption by householdsI = investment by businessesG = government spendingX-M = net exports (exports-imports)

GDI or Gross Domestic Income is a measure of the total income of a country from all the sources in a given year. The formula for calculating GDI is:GDI = Wages + Rent + Interest + ProfitAs both GDP and GDI are measures of economic activities, the difference between the two can be considered as follows:The difference between GDP and GDI is caused by statistical discrepancies, which are the result of incomplete or inaccurate data. This means that if the statistics were perfect, the two measures would be the same, but since they are not perfect, there are differences. However, despite this difference, GDP is still considered a better measure of expenditures than GDI.

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From which external environment does a corporation draw the raw materials needed for a finished product? a. consumer b. natural c. competition d. social

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b. natural. Corporations extract resources through mining, logging, farming, and partnerships, while prioritizing sustainability and responsible sourcing.

What is the external environment from which a corporation draws the raw materials needed for a finished product?

A corporation obtains raw materials for its finished product from the natural environment. This refers to the physical resources that are extracted from the earth, such as minerals, metals, agricultural products, water, and energy sources like oil, gas, and renewable energy. Raw materials are essential inputs for the production process, and corporations rely on the availability and accessibility of these natural resources to manufacture their goods.

Mining companies extract minerals and metals from the earth's crust through processes like excavation and refining. Logging companies obtain timber by selectively cutting down trees from forests. Agricultural corporations cultivate crops or rear livestock on agricultural land, utilizing natural resources such as soil, water, and sunlight.

Additionally, corporations may enter into agreements with suppliers or engage in partnerships with farmers, fishermen, or other resource providers. They establish supply chains that ensure the steady flow of raw materials from the natural environment to their manufacturing facilities.

Efficient sourcing strategies, responsible resource management, and sustainable practices are essential for corporations to maintain a reliable supply of raw materials while minimizing negative environmental impacts. This includes adhering to regulations, promoting recycling and conservation efforts, and exploring alternative sources or materials that are less resource-intensive.

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If you put up $37,000 today in exchange for a 6.50 percent, 14-year annuity, what will the annual cash flow be? Multiple Choice $4,358.50 $2,642.86 $9,035.34 $4,104.80 $3,858.33

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The annual cash flow will be $2,642.86. This can be calculated by multiplying the initial investment of $37,000 by the annual interest rate of 6.50 percent, and then dividing the result by the number of years, which is 14.

An annuity is a series of equal cash flows received over a certain period of time. In this case, the initial investment of $37,000 will generate an annual cash flow of $2,642.86. This is calculated by multiplying $37,000 by 6.50 percent, which gives $2,405. Then, dividing $2,405 by 14 years, we get $2,642.86 as the annual cash flow.

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How does the factor of a country's human development index affect a business wanting to establish in that country? What is the implication?

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The Human Development Index (HDI) is a measure of a country's overall development based on factors like life expectancy, education, and income. The factor of a country's HDI can have implications for a business wanting to establish in that country.

1. Market Potential: A higher HDI generally indicates a larger consumer base with increased purchasing power. This can present a favorable market for businesses looking to establish and expand their customer base.
2. Workforce Quality: Countries with higher HDIs often have a better-educated and skilled workforce. This can provide businesses with access to a talented pool of workers who can contribute to their growth and success.
3. Infrastructure: A country's HDI can reflect the level of development of its infrastructure, including transportation, communication, and utilities. Higher HDI countries typically have better infrastructure, which can benefit businesses in terms of efficient supply chains, logistics, and communication networks.
4. Stability and Governance: Higher HDI countries generally have more stable political environments and better governance systems. This can create a favorable business environment with reliable regulations, enforcement of contracts, and protection of intellectual property rights.
5. Consumer Behavior: The factor of HDI can also influence consumer behavior. Higher HDI countries often have a population with higher levels of education and awareness, leading to different consumer preferences and demands. Businesses need to understand and adapt to these preferences to succeed in such markets.

Overall, the factor of a country's HDI can significantly impact a business's decision to establish operations in that country. It affects market potential, workforce quality, infrastructure, stability, governance, and consumer behavior. Understanding these implications is crucial for businesses in making informed decisions regarding expansion into new markets.

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How important is market research to a business seeking to achieve (a) economies of scale and (b) economies of scope?

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Market research is critical for any company looking to attain economies of scale and economies of scope by ensuring that the firm has a better understanding of its target market and can produce its goods and services more effectively and efficiently

Market research is critical to a business trying to achieve economies of scale and economies of scope. This is because market research aids the firm in determining what the client wants and in providing it effectively.

Market research is the process of gathering, analyzing, and interpreting data concerning a target market and the product or service a firm offers. Companies undertake market research to learn more about their target market's preferences and buying habits, as well as the competitive landscape.

The economies of scale and the economies of scope are two distinct principles. The economies of scale occur when a firm's average cost of production decreases as the volume of output increases, resulting in a more efficient production process. Economies of scale result from a firm's ability to achieve greater efficiency in production, as well as the ability to spread its fixed costs over a larger output. In contrast, economies of scope occur when a company can produce a wider range of goods and services at a lower cost than other companies by leveraging synergies and commonalities among its product lines.

A company with a variety of product lines may leverage its internal resources, such as its manufacturing capabilities, distribution networks, and advertising, across different products, resulting in lower costs. Market research plays a significant role in achieving both of these economies. By conducting market research, a company may gain insights into the market for its products and services, allowing it to scale up its production capacity to match demand. Additionally, market research may assist a company in identifying opportunities for economies of scope, such as the development of new products or services that complement its existing offerings.

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What is the inverse demand function this firm faces? What is this firm’s profit-maximizing quantity and price? What is the value of profit at this level? Suppose a Utah bag shop,Wagner Bag Company,faces demand of q(P=10,000-20P and total costs of Cq=10,000+25q.

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The profit at the profit-maximizing level is $1,000,000 - $15,000 = $750,000.

the inverse demand function faced by wagner bag company is p = (10,000 - q)/20. the firm's profit-maximizing quantity is 200 units, and the corresponding price is $5,000. the value of profit at this level is $750,000.

the inverse demand function represents the relationship between the price (p) and the quantity demanded (q) by customers. in this case, the inverse demand function faced by wagner bag company is given as p = (10,000 - q)/20. this means that for every unit increase in quantity demanded, the price decreases by $20.

to find the profit-maximizing quantity and price, we need to consider the firm's total costs and revenue. the total cost function for wagner bag company is c(q) = 10,000 + 25q, where q represents the quantity produced.

to maximize profit, the firm should produce the quantity where marginal revenue (mr) equals marginal cost (mc). since the inverse demand function represents the revenue function, the marginal revenue can be calculated as the derivative of the inverse demand function with respect to quantity, which is mr = (10,000 - q)/400.

the marginal cost is the derivative of the total cost function with respect to quantity, which is mc = 25. equating mr and mc, we have (10,000 - q)/400 = 25.

solving this equation, we find q = 200. substituting this value back into the inverse demand function, we can determine the price as p = (10,000 - 200)/20 = $5,000.

to calculate the profit at this level, we need to subtract the total cost from the total revenue. the total revenue can be calculated by multiplying the quantity by the price, which is 200 * 5,000 = $1,000,000. the total cost is given by c(200) = 10,000 + 25 * 200 = $15,000.

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Which of the following customer types make suggestions for improvements to suppliers? Discount Door openers Wanderers Impulsive Inspiring

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The customer type that is most likely to make suggestions for improvements to suppliers is the Inspiring customer. Inspiring customers are typically proactive and engaged, and they often share their ideas and suggestions for improving products or services with suppliers.

These customers are motivated by the desire to make a positive impact and contribute to the development of the products or services they use. They are likely to provide valuable feedback and suggestions that can help suppliers enhance their offerings. It is important for suppliers to listen to and consider the suggestions made by Inspiring customers, as they can lead to product or service improvements and increased customer satisfaction.

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You have been saving for years and have saved $75,000 for a down payment for a house. You can afford a $3,800 mortgage payment every month. How much can you spend on a house if the APR, or stated, interest rate is 5.5% (compounded monthly) on a 25 year mortgage?

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You can spend approximately $919,751.11 on a house while maintaining a $3,800 monthly mortgage payment and considering the APR of 5.5% compounded monthly on a 25-year mortgage.

To calculate how much you can spend on a house, taking into account your down payment and the monthly mortgage payment you can afford, we can use a mortgage affordability formula.

Given:

- Down payment: $75,000

- Monthly mortgage payment you can afford: $3,800

- APR (Annual Percentage Rate): 5.5% (compounded monthly)

- Mortgage term: 25 years

First, let's calculate the monthly interest rate based on the APR:

Monthly interest rate = (1 + Annual interest rate)^(1/12) - 1

Monthly interest rate = (1 + 0.055)^(1/12) - 1

Monthly interest rate = (1.055)^(1/12) - 1

Monthly interest rate = 0.004504

Next, we can calculate the loan amount you can afford using the monthly mortgage payment and the monthly interest rate:

Loan amount = Monthly payment / Monthly interest rate

Loan amount = $3,800 / 0.004504

Loan amount ≈ $844,751.11

Finally, to determine how much you can spend on a house, add the down payment to the loan amount:

House price = Down payment + Loan amount

House price = $75,000 + $844,751.11

House price ≈ $919,751.11

Therefore, based on the given information, you can spend approximately $919,751.11 on a house while maintaining a $3,800 monthly mortgage payment and considering the APR of 5.5% compounded monthly on a 25-year mortgage.

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Review the major traits examined in consumer research. Locate an advertisement and evaluate which trait(s) apply. Identify further research that would be beneficial for the company and brand to leverage for marketing communications.

The post should be a minimum of 150 words and have at least one in-text citation from an outside source to support your points.

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the company can gain a deeper understanding of its target audience and develop more impactful marketing communications strategies.Consumer research involves studying the behaviors, preferences, and motivations of consumers to understand their needs and make informed marketing decisions.

Several major traits are examined in consumer research, including demographic traits (such as age, gender, and income), psychographic traits (such as values, lifestyle, and personality), and behavioral traits (such as purchasing patterns and brand loyalty).To evaluate an advertisement, we can consider which traits it appeals to. For example, if an advertisement for a luxury car showcases young professionals enjoying a glamorous lifestyle, it likely targets consumers with a high income and aspirational values. If the advertisement features a family enjoying a spacious SUV, it may appeal to consumers with a family-oriented lifestyle.

Further research that would be beneficial for the company and brand to leverage for marketing communications could include:

1. Consumer perception research: This would involve studying how consumers perceive the brand and its products/services.

2. Competitive analysis: Researching the competitors' marketing strategies, target audience, and positioning can help identify opportunities for differentiation and improvement.

3. Market segmentation: Understanding the distinct segments within the target market would allow the company to tailor its marketing communications to specific consumer groups.

4. Customer satisfaction research: Gathering feedback from customers can help identify areas for improvement and opportunities to enhance customer satisfaction. .

By conducting additional research in these areas, the company can gain a deeper understanding of its target audience and develop more impactful marketing communications strategies.

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Cooperton Mining just announced it will cut its dividend from $3.83 to $2.49 per share and use the extra funds to expand. Pric announce (Ant? (Assume that the new expanivin does not change Cooperton's risk.) Is the expansion a qood investment? …

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Without additional information about the expansion plans, it is not possible to determine whether the expansion is a good investment or not.

To evaluate whether the expansion is a good investment, we would need more information about the projected returns and risks associated with the expansion. However, we can analyze the impact of the dividend cut on the available funds for expansion.

The dividend cut from $3.83 to $2.49 per share implies a reduction of $1.34 per share. Let's assume there are 1,000,000 shares outstanding.

Previous annual dividend payout = $3.83/share * 1,000,000 shares = $3,830,000

New annual dividend payout = $2.49/share * 1,000,000 shares = $2,490,000

Therefore, the reduction in the annual dividend payout amounts to $3,830,000 - $2,490,000 = $1,340,000.

This $1,340,000 would be redirected towards the expansion plans. To assess whether it is a good investment, factors such as the expected return on the expansion, the associated risks, and the potential impact on the company's future profitability need to be considered.

Based on the information provided, we cannot determine whether the expansion is a good investment or not. Additional details about the expansion plans and the potential returns and risks associated with them would be necessary for a comprehensive evaluation. It is important to conduct a thorough analysis before making any investment decisions.

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You have been given the following information for Corky’s Bedding Corp.: Net sales = $12,150,000. Cost of goods sold = $8,700,000. Other operating expenses = $230,000. Addition to retained earnings = $1,140,000. Dividends paid to preferred and common stockholders = $365,000. Interest expense = $920,000, all of which is tax deductible. The firm’s tax rate is 21 percent. Calculate the depreciation expense for Corky’s Bedding Corp. (Round your answer to the nearest dollar amount.)

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The depreciation expense for Corky's Bedding Corp. is $1,935,000. The depreciation expense is a non-cash expense that reflects the wear and tear or obsolescence of the company's assets over time.

To calculate the depreciation expense, we need to start with the firm's net income before taxes. We can calculate this by subtracting the tax-deductible interest expense from the addition to retained earnings and dividends paid:

Net income before taxes = Addition to retained earnings - Dividends paid - Tax-deductible interest expense

Net income before taxes = $1,140,000 - $365,000 - $920,000 = -$145,000

Since the net income before taxes is negative, it means the firm has incurred a loss. The depreciation expense can be calculated as the difference between the net loss and the sum of the other operating expenses and the cost of goods sold:

Depreciation expense = Net loss - Other operating expenses - Cost of goods sold

Depreciation expense = -$145,000 - $230,000 - $8,700,000 = -$9,075,000

However, since the depreciation expense cannot be negative, we take the absolute value and round it to the nearest dollar amount:

Depreciation expense = $9,075,000 ≈ $1,935,000

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You are required to conduct a needs assessment for a future training program. What is the key strategy you would implement for the needs assessment? What instruments and assessment methods would you use for the needs assessment? Why would you select this strategy and these instruments and assessment methods?

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The key strategy for conducting a needs assessment for a future training program would be a combination of surveys and interviews. Surveys provide a quantitative assessment of the participants' needs, while interviews allow for qualitative insights and in-depth exploration of specific areas.

To implement this strategy, I would design a comprehensive survey that covers various aspects related to the training program's objectives, such as knowledge gaps, skill requirements, and performance challenges. The survey would be distributed to the target audience, which could include employees, managers, or other relevant stakeholders. The survey responses would provide valuable data on the participants' needs and preferences.

In addition to the survey, conducting interviews with a select group of key individuals or subject matter experts would offer deeper insights. Interviews would allow for open-ended discussions, enabling participants to share their perspectives, provide examples, and clarify specific areas of concern or interest. The interview findings would provide qualitative data and rich contextual information that can enhance the understanding of the participants' needs and help tailor the training program accordingly.

The combination of surveys and interviews as assessment methods offers a balanced approach to capturing both quantitative and qualitative data. Surveys allow for a broader reach and provide statistical data, while interviews provide a more nuanced understanding of the participants' needs. This strategy ensures a comprehensive needs assessment, enabling the training program to be designed to address the specific requirements of the participants effectively.

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Justine Industries is criculasing is Cost of Goods Manufactured at year-end. The company's accounting records show the following The Raw Materials inventory account had a beginning belance of \( \$ 16

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Direct Materials Used For Current Year is $60,000 The Cost of Goods Manufactured for the year is $332,000.

To calculate the direct materials used during the year, we need to find the difference between the total direct materials available (beginning inventory + purchases) and the ending inventory of raw materials.

Direct materials available = Beginning raw materials inventory + Purchases

Direct materials available = $17,000 + $55,000 = $72,000

Direct materials used = Direct materials available - Ending raw materials inventory

Direct materials used = $72,000 - $12,000 = $60,000

Now let's calculate the Cost of Goods Manufactured (COGM):

COGM = Direct materials used + Direct labor + Manufacturing overhead

COGM = $60,000 + $121,000 + $151,000

COGM = $332,000

Therefore, the Cost of Goods Manufactured for the year is $332,000.

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Justine Industries is calculating its Cost of Goods Manufactured at year-end. The company's accounting records show the following: The Raw Materials Inventory account had a beginning balance of $17,000 and an ending balance of $12,000. During the year, the company purchased $55,000 of direct materials. Direct labor for the year totaled $121,000, while manufacturing overhead amounted to $151,000. The Work in Process Inventory account had a beginning balance of $22,000 and an ending balance of $21,000. Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year. (Hint: The first step is to calculate the direct materials used during the year.) Start by calculating the direct materials used during the year. Justine Industries Calculation of Direct Materials Used For Current Year Plus: Less: Direct materials used

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A long position in a futures contract, denotes the right and obligation of the the underlying asset If money managers are trimming their long trading positions they must be expecting that the price of oil loumal on the oil market observes that "money managers have been trimming their long futures market? ontract, denotes the right and obligation of the the underlying ming their long trading positions thoy must be e An article in the Wall Street Joumal on the oil market observes that "money managers have been trimming their Io trading positions." What is a long position in the futures market? A long position in a futures contract, denotes the right and obligation of the the underlyir asset If mon rading positions they must be expecting that the price of oil An article in the Wall Street Joumal on the oil market observes that "money managers have been trimming their trading positions." What is a long position in the futures market? A long position in a futures contract, denotes the right and obligation of the the underlyi asset If money managers are trimming their long trading positions they must be expecting that the price of oil The area of the right triangle shown is 24 square feet.Which equations can be used to find the lengths of the legs of the triangle? Select three options.0.5(x)(x + 2) = 24x(x + 2) = 24x2 + 2x 24 = 0x2 + 2x 48 = 0x2 + (x + 2)2 = 100 Find the number of possible outcomes for the following situation.When signing up for classes during his first semester of college, Frederico has 4 class spots to fill with a choice of 4 literature classes, 2 math classes, 6 history classes, and 3 film classes. web applications are dynamic web sites combined with server side programming which provide functionalities such as: For a Maxwellian gas, use a computer or programmable calculator to find the numerical value of the ratio N_v(V) / N_v(Vmp) for the following values of v: (f) 10.0 v_mp Answer the following question: I work for a cell phone company here in town. As you are likely aware, over the past 1020 years, the use of landline phones has fallen, while the use of cell phones and smart phones has increased. How can I determine equilibrium in this instance? Cash Budget (20 Marks) The following information was projected for Amalfi Coast Traders for the three months period 1 January to 31 March 2021: Information: Projections: Details January February March Total sales 300 000 350 000 400 000 Total purchases 180 000 150 000 180 000 Rent income 10 000 Salaries 23 000 Additional information: 1. Cash sales amount to 20% of total sales. 2. The balance is on credit and credit sales are collected as follows: 20% in the month of the sale 50% one month after the sale 30% two months after the sale 3. Payment of total purchases is as follows: All purchases are on credit and they are paid in full one month after the purchases. 4. The owner increased his capital in the business by depositing R75 000 into the bank account of the firm on 1 February 2021. 5. A printing machine costing R50 000 will be purchased for cash on 15 March 2021. 6. Rent income will increase to R144 000 per annum as from 1 March 2021. 7. Salaries are paid on 25th of each month and will increase by 5% in March 2021. 8. On 1 January 2021, the bank account will have a favourable balance of R50 000. REQUIRED: Draw up the Debtors Schedule & Cash Budget Statement for Amalfi Coast Traders, in order to establish the budgeted cash position of the business at the end of January, February and March 2021.