Answer:
10.35%
Explanation:
The next dividend payment for skippy incorporation is $2.95
The growth rate is 4.8%
The stock currently sells for $53.10
Therefore the required return can be calculated as follows
R= 2.95 /53.10 + 4.8/100
= 0.0555 + 0.048
= 0.1035 × 100
= 10.35%
Answer:
Explanation:
Dividend Yield =$0.50$2.95×100=16.9%.
XYZ Corporation, whose common stock is currently selling for $40 per share, is having a rights offering. The terms of the offering require 10 rights plus $35 to subscribe to one share of stock. Compute the theoretical value of a right before the ex-rights date.
Answer:
$0.45
Explanation:
Computation for the theoretical value of a right before the ex-rights date
Using this formula
Theoretical value=(Common stock-Required offering subscription shares)÷(Offering require right+1)
Let plug in the formula
Theoretical value= ($40 ‒ $35) ÷ (10+1)
Theoretical value= $5.00 ÷ 11
Theoretical value=$0.45
Therefore the theoretical value of a right before the ex-rights date will be $0.45
Calculate the yield to maturity of a zero coupon bond with a face value (par value) of $1,000, maturing in 15 years and selling for a price of $525.75.a. 5.62%.b. 4.38%.c. 8.74%.d. 15.26%.e. 16.27%.
Answer:
YTM = 0.043793 or 4.3793% rounded off to 4.38%
Explanation:
The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a zero coupon bond is as follows,
YTM = [ (( F / PV)^1/n) - 1 ]
Where,
F is the Face value of the bond
PV is the current value of the bond
n is the number of years to maturity
YTM = [ (( 1000 / 525.75)^1/15) - 1 ]
YTM = 0.043793 or 4.3793% rounded off to 4.38%
Sarah's dog had purebred puppies that she decided to sell on www.puppyfind.com. She ships them using an airline. If a puppy dies and the buyer decides to sue, who can he sue?
Sarah
the sole proprietorship
the airline carrier
all of the above
Answer:
The buyer should sue the airline carrier
Explanation:
Because it is the airlines job to make sure that the puppy are safe and health
the BE in units for CompuTech in 2021?
Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during
the year?
Question Completion:
Assuming the following: (i) the sales price for each CompuTech product sold is $50; (ii) each product sold costs $25 in Raw Material components; and the business Fixed Cost is $45,000.
Q1: What is the BE in units for CompuTech in 2021?
Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during the year?
Answer:
CompuTech
Answer 1: The BE (Break-even Point) in units for CompuTech in 2021 is:
1,800 units.
Answer 2: If the variable cost of materials rose by 10%, the BE will increase to:
2,000 units.
Explanation:
a) Data and Calculations:
Selling price per unit = $50
Direct material cost per unit = $25
Contribution per unit = $25
Fixed Cost = $45,000
Break-even point = Fixed Cost/Contribution per unit
= $45,000/$25
= 1,800 units
b) BE if the variable cost of materials rose by 10% during the year:
Selling price per unit = $50
Direct material cost per unit =$27.50 ($25 * 1.1)
Contribution per unit = $22.50
Fixed Cost = $45,000
Break-even point = Fixed Cost/Contribution per unit
= $45,000/$22.50
= 2,000 units
c) The break-even point in units represents the quantity at which the costs of production equal the revenues for the goods. It is the point where no profit is made, but all the costs, including fixed costs, are covered by the revenues.
Suppose currently, there is free trade with no government intervention. Suppose now the government in Econland wants to intervene in this market and bring widget prices back to the pre-trade free market price of F. What could they do achieve this?A. The government cannot do anything to bring widget prices back to FB. Set a quota on imports of LNC. Set a quota on imports of 0D. Tax imports by KRE. Tax imports by $0
Answer:
Tax imports by KRE
Explanation:
When there is complete, unregulated free trade in the economy, the price of widgets in any local economy is the same as the world price.
In this case, i the government in Econland wants to bring back the price of widgets, from world price, to previous domestic price, all it has to do is to impose a tax on imports equal to the value of the difference between the world price and the previous price. This tax on imports is known in economics as a tariff, and it is the most commonly tool of protectionist economic policy.
For example, suppose that the world price of widgets, under free trade is $2 each, and the previous price was $4, so in order to raise the price for world price to previous price, all the government has to do is to impose a tariff of $2, like this, widgets in the domestic market will be $4 again.
If there is free trade without the intervention of the government, the way that the government can intervene would be to Tax imports by KRE.
What is free trade?
This is the type of trade in an economy where the government of the country would not intervene in the market.
In this market system, the government would not use tariffs on the exports or try to discriminate against imports in the country.
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On June 1, 2018, Marigold Company and Swifty Company merged to form Nash Inc. A total of 769,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2020, the company issued an additional 599,000 shares of stock for cash. All 1,368,000 shares were outstanding on December 31, 2020. Nash Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 36 shares of common at any interest date. None of the bonds have been converted to date. Nash Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,688,000. (The tax rate is 20%.)
Determine the following for 2020:
a. Basic earnings per share.
b. Diluted earnings per share.
c. The earnings figures to be used for calculating:
d. Basic earnings per share.
e. Diluted earnings per share.
Answer:
a. Basic earnings per share.
weighted average outstanding:
January 1 = 769,000 stocks
April 1 = 599,000 x 9/12 = 449,250 stocks
total weighted average outstanding stocks = 1,218,250 stocks
basic earnings per share = $1,688,000 / 1,218,250 = $1.3856 ≈ $1.39
b. Diluted earnings per share.
diluted shares = ($600,000 / $1,000) x 36 stocks x 1/2 = 10,800
diluted earnings per share = $1,707,200 / (1,218,250 + 10,800) = $1,707,200 / 1,229,050 = $1.389 ≈ $1.39
c. The earnings figures to be used for calculating:
Basic earnings per share
= net income = $1,688,000
Diluted earnings per share
= net income + interests saved - taxes on interests saved = $1,688,000 + $24,000 - $4,800 = $1,707,200
Sick time and vacation time are considered a benefit because even
though you are not at work you still get paid.
True
False
Answer:
TRUEE
i just know
Explanation:
Hope this helps!
if so please dont forget to mark BRAINLIST!!
thx
Why is credit an important part of the economy?
A. It allows people and businesses to pay off expensive purchases
over time.
B. It helps workers find higher-paying jobs that take advantage of
their skills.
C. It encourages businesses to sell products both domestically and
internationally
D. It prevents banks from charging companies interest on long-term
loans.
Answer:
A. It allows people and businesses to pay off expensive purchases
over time.
Explanation:
A credit facility is an arrangement where a buyer obtains goods or services and pays for them over a long time. Credit contrasts cash payment, where the buyer pays make full payment for a product when acquiring it.
Credit allows a business to acquire expensive items and assets. Should a business be in need of something that it cannot afford to pay on a cash basis, it can negotiate favorable credit terms with the seller. Payments for such an item are spread over an agreed period. The buyer pays through small and affordable installments until they clear the debt.
(TCO B) WordPerfect Corporation noticed that the more of its word processing software packages it sold, the more customers complained or suggested improvements. In such a situation, WordPerfect Corporation has the opportunity to:_________.
a. steadily improve its word processor software.
b. be acquired by a larger company that can take over the development of the product.
c. develop a completely new program.
d. discontinue production.
Answer:
a. steadily improve its word processor software.
Explanation:
Remember, although we are told WordPerfect Corporation customers complained they also suggested improvements. Meaning, the product isn't entirely bad but needs some improvements.
Instead of developing a completely new program or discontinue production, It makes logical sense for them to improve the word processor software to fit the needs of the customers.
Donna runs an inn and charges $300 a night for a room, which equals her cost. Sam, Harry, and Bill are three potential customers willing to pay $500, $325, and $250, respectively. When the government levies a tax on innkeepers of $50 per night of occupancy, Donna raises her price to $350. The deadweight loss of the tax is:________
a. $25
b. $50
c. $100
d. $150
Answer:
a. $25
Explanation:
According to the given situation, the computation of deadweight loss of the tax is shown below:-
Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50)
Or, Deadweight Loss = 1 ÷ 2 × ($50)
Or, Deadweight Loss = $25
Therefore the correct option is a. $25
We simply considered the above values so that the deadweight loss of the ta could come
The deadweight loss of the tax is :
According to the given situation, the computation of deadweight loss of the tax is shown below:-
Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50) Deadweight Loss = 1 ÷ 2 × ($50) Deadweight Loss = $25The deadweight loss of the tax is $25.
Thus, the correct answer is a.
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One effective way to manage credit card debt is to:
A. exaggerate your income when applying for a credit card.
B. spend your entire credit limit before making any payments.
C. replace high-interest credit cards with low-interest options.
D. always pay only the minimum payment required each month.
Answer:
C. replace high-interest credit cards with low-interest options.
Explanation:
A credit card provides a secure and convenient way to pay for goods and services even when they do not have money. The credit card gives the user access to instant credit every time they use it. The user does not incur any charges should they pay the amount due before its due date.
Credit card interest rate charges are among the highest in the industry. If the user is late in their payment, the interest fee and other charges accumulate real quick. Shifting to cards with lower interest is one way of managing credit card debts.
These items are taken from the financial statements of Cullumber Company at December 31, 2022.
Buildings $88,872
Accounts receivable 10,584
Prepaid insurance 2,688
Cash 9,946
Equipment 69,216
Land 51,408
Insurance expense 655
Depreciation expense 4,452
Interest expense 2,184
Common stock 50,400
Retained earnings (January 1, 2022) 33,600
Accumulated depreciation—buildings 38,304
Accounts payable
Answer:
lkpojiuhygtfrdrswaqzxcvbnmkgsawru
Parker is a highly skilled sales person at Byberry, which is a 30-year-old company that has grown significantly in terms of revenue and product offerings. It sponsors a pension plan that provides a benefit of 2% times the years of participation times the average of the final three years of salary. Parker has worked for Byberry for the last 30 years and earned $200,000 two years ago, $150,000 last year, and $250,000 this year. If he is retiring this year, how much should he expect to receive as a pension benefit?
Answer:
$120,000
Explanation:
The retirement benefit that Parker expects is
2% x number of years worked( 30 ) x {($200,000 +$150,000 +$250,000) /3}
=2/100 x 30 x (600,000/3)
=0.02 x 30 x $200,000
=0.6 x $200,000
=$120,000
Trent is a skilled sketch artist who wants to create images for his online portfolio. He is even
toying with including live "watch me draw" videos for audiences, but he doesn't want to use a
webcam. Which piece of technology will most quickly and efficiently allow him to translate the
physical act of him drawing into a digital image?
O a scanner
o a digital tablet
O a stock image
O photo editing software
Answer:
A digital tablet
Explanation:
The basic principle involved with expense recognition is: Multiple Choice All costs that are used to generate revenue are recorded in the period the revenue is recognized. All transactions are recorded at the exchange price. The business is separate from its owners. The business will continue to operate indefinitely unless there is evidence to the contrary.A company orders office supplies in June. Those supplies are received and paid for in July. The supplies are used in August. In which month should the company record supplies expense
Answer:
All costs that are used to generate revenue are recorded in the period the revenue is recognized
Supplies expense is recorded in August
Explanation:
Expenses are the cost that a company incurs in the process of generating revenue from an asset. As such when a business is paying cost like wages, rent, and office materials it is generating revenue from sales and services provided.
The expense recognition principle requires that a business records expenses when revenue associated with them are recognised.
An office that orders office supply and uses them in August will only recognise supply expense when there is use of the office supply.
So supply expense will be recognised in August
Simon has net investment income of $38,000 and MAGI of $223,000 and files as a single taxpayer. Simon's additional Medicare tax is:______________
Answer:
$874
Explanation:
Calculation for Simon's additional Medicare tax
Based on the information given we were told Simon has a MAGI of the amount of $223,000 in which part of it is for wages income of the amount of $185,000 ($223,000 -$38,000)
while the amount of $38,000 is the net investment income which means that Samson MAGI is below the threshold limit of the amount of $200,000, therefore tax rate of 3.8% tax will be applied.
Now let calculate the additional Medicare tax
Additional Medicare tax = ($38,000-$15,000)*3.8%
Additional Medicare tax =$23,000*3.8%
Additional Medicare tax = $874
Therefore Simon's additional Medicare tax is:874
You own a bond that pays $64 in interest annually. The face value is $1,000 and the current market price is $1,062.50. The bond matures in 30 years. What is the yield to maturity? (round your answer to two decimal places)
Answer:
the yield to maturity of this bond is 5.7%
Explanation:
given data
pays interest annually C = $64
face value F = $1,000
current market price P = $1,062.50
bond matures n = 30 years
solution
we get here yield to maturity that is express as
yield to maturity =
yield to maturity = [C+ (F-P) ÷ n] ÷ [(F+P) ÷ 2 ] .................1
put here value and we get
yield to maturity = [tex]\frac{64+(1000-1062.50)}{11}[/tex] ÷ [tex]\frac{(1,000+1,062.50)}{2}[/tex]
yield to maturity = 0.057
so that the yield to maturity of this bond is 5.7%
The Extreme Reaches Corp. last paid a $1.50 per share annual dividend. The company is planning on paying $3.00, $5.00, $7.50, and $10.00 a share over the next four years, respectively. After that the dividend will be a constant $2.50 per share per year forever. A) What is the market price of this stock if the market rate of return is 15 percent? Also estimate the dividend yield over the first year.
B) Continue from the previous problem. What is the market price of this stock in one year? What is the capital gains yield over the first year?
Im looking for help on part B, I have already completed part A but it would be helpful to check my answer. ($26.57/share)
Answer:
a)
Div₁ = $3
Div₂ = $5
Div₃ = $7.50
Div₄ = $10
Div₅ = $2.50
the terminal value at year 4 = $2.50 / 15% = $16.67
P₀ = $3/1.15 + $5/1.15² + $7.50/1.15³ + $26.67/1.15⁴ = $2.61 + $3.78 + $4.93 + $15.25 = $26.57
dividend yield over the first year = $3 / $26.57 = 11.29%
b)
P₁ = $5/1.15 + $7.50/1.15² + $26.67/1.15³ = $4.35 + $5.67 + $17.47 = $27.49
capital gains yield = ($27.49 - $26.57) / $26.57 = 3.46%
Explain the importance of feedback in the communication process.(3marks)
J-Pac Co. uses the Allowance Method to account for uncollectible Accounts Receivable. If they determine that $900 of the balance owed by Matt Evans is uncollectible, the correct entry to write it off would be:
Answer and Explanation:
The correct entry to write off is shown below:
Allowance for Doubtful Accounts $900
To Accounts Receivables $900
(Being written off is recorded)
Here the allowance for doubtful accounts is debited as it increased the assets and the account receivable is credited as it decreased the assets. Also, the assets contains the normal debit balance
why is the period from late 20s to early 40s the best time for becoming an entreprnur?
Late 20s to late 40s: This is almost the perfect time for would-be entrepreneurs, for many reasons: At this point in life, they know what they like, and what they don't like. They have obtained business and life skills. They have some assets and credit.
The period from late 20s to early 40s the best time for becoming an entrepreneur is the creative and innovative ideas are the used is the startup new business.
What is entrepreneur?
The term “entrepreneur” refers to the person who launches a new business at their own risk and profit basis. The starting up of a new business with a new idea and logic is called entrepreneurship. The entrepreneur's main motive is to set up a business to generate employment.
The period from the early 20s to the early 40s is ideal for an entrepreneur since technology is evolved enough to start a new business. The business owner works on websites, blogs, digital media, photo editing, television, and radio. The inventive and creative ideas that comprise the most effective company plans.
As a result, the 20s to early 40s are the best period to entrepreneur.
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You invest 50% of your money in security A with a beta of 1.6 and the rest of your money in security B with a beta of 0.7. The beta of the resulting portfolio is:_____
a. 1.08
b. 0.8
c. 1.40
d. 1.15
e. 0.36
Answer:
The answer is D). 1.15, hope this helps, have a great day/night, stay safe, happy thanksgiving!
You are the strategic leader of a highly competitive electronics company, Anderson Inc. Anderson Inc. is a global leader in electronics sales to corporate and international customers. The competitive nature of the market is creating the need to implement new and well researched strategies and online tools in order to compete with another company that is taking contracts from your organization daily. This other company, Henkerson Inc., is offering products at a slightly lower cost. Their customer service ratings, however, are much lower than Anderson Inc.
Anderson’s customer service could be superior as a result of :_________
Answer:
The options are missing, so I looked for similar questions. The option that I believe is correct is:
A good reputation for having few OOS (out-of-stock) problems when fulfilling large orders.Customer service is extremely important in today's world were competition is fierce and global. The less competition, the less value customer service has, but companies from around the world compete against each other. E.g. if you do not like how some salespeople treat you at a certain store, you can go online and buy the same products from a retailer 2,000 miles away. You must always remember that keeping old customers happy and loyal is always much easier and cheaper than getting new customers.
In a B2B environment, costs are important, and any difference in costs is much more important because the quantities sold are larger. But if the company that sells the lower priced products offers a terrible customer service and is not able to fulfill orders in time, then B2B clients will leave them because time is money. Th elonger the lead time, the higher the stockout probabilities and you require a larger safety stock which costs money.
Courageous, Inc. just paid a dividend of $1.80per share on its stock. The dividends are expected to grow at a constant rate of 3 percent per year, indefinitely. If investors require a 12 percent return on Courageous stock, what is the current price? What will the price be in 3 years? In 15 years?
PART A:
Current Price: $____________.
PART B:
Price in Three Years: $____________.
PART C:
Price in Fifteen Years: $____________.
Answer:
P0 = $20.6
P3 = $22.5101762 rounded off to $22.51
P15 = $32.09412 rounded off to $32.09
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is dividend expected for the next period /year g is the growth rate r is the required rate of return or cost of equity
Current Price
P0 = 1.8 * (1+0.03) / (0.12 - 0.03)
P0 = $20.6
Price in three years
To calculate the current price of P0 we use the dividend for Year 1 or D1. Similarly, to calculate the price in three years or P3, we will use D4.
P3 = 1.8 * (1+0.03)^4 / (0.12 - 0.03)
P3 = $22.5101762 rounded off to $22.51
Price in fifteen years
We will use D16.
P15 = 1.8 * (1+0.03)^16 / (0.12 - 0.03)
P15 = $32.09412 rounded off to $32.09
Do you agree or disagree with the following statements
a. The demand curve facing a monopolistic competitor in a market where all producers charge different prices becomes less elastic when it engages in international trade
b. According to the gravity equation, countries closer to each other trade more
c. The only gain from trade in monopolistic competition in trade is lower prices
d. The closer to 1 the index of intra industry trade is, the greater the difference between exports and imports of the same goods.
Answer:
a. The demand curve facing a monopolistic competitor in a market where all producers charge different prices becomes less elastic when it engages in international trade - Disagree
This statement is not true. If a monopolistic competitor engages in international trade, it will meet more competition, meaning that the audience (demand) that it has is more sensitive to prices, because they have more options available.
b. According to the gravity equation, countries closer to each other trade more - Agree
The gravity equation tells us that the volume of international trade is correlated with geographical proximity and economic size. That is to say, the closer and larger two economies are, the more international trade they engage with each other.
c. The only gain from trade in monopolistic competition in trade is lower prices - Disagree
Gains are the most important in lower prices, but there are also gains in competitiveness and quality.
d. The closer to 1 the index of intra industry trade is, the greater the difference between exports and imports of the same goods. - Disagree
An index of intra industry trade of 1 indicates that the country imports and exports roughly the same amount for a particular type of goods (the goods that belong to that industry). Hence, the statement is not true.
A $10,000 bond with 18%/year, compounded semi-annually (interest is paid every six month) is available in the market. The bond matures in 10 years. The closest PW of this bond if the purchaser can earn 12%/year, compounded quarterly is:_____.
Answer:
present value = 13313.50
Explanation:
given data
bond = $10,000
interest = 18% per year = 9% per semi annual period
bond matures = 10 years = 20 semi annual period
purchaser can earn = 12% per year compounded quarterly = 3% per quater
so efftive semi annual rate is
efftive semi annual rate = (1+3%)² - 1
efftive semi annual rate = 6.09%
and
we get here coupon paymnet that is
coupon payment = 9% × $10,000
coupon payment = $900
so present value is
present value = 900 (P/A,6.09%,20) + 10000 (P/F,6.09%,20)
present value = 900 × 11.3865 + 10000 × 0.3065
present value = 13313.50
A change in which of the following will cause the aggregate demand curve to shift?
A)
energy costs
B)
productivity of workers
C)
regulations
D)
consumer spending
Answer:
D) consumer spending
Explanation:
The aggregate demand is the total of all goods and services that consumers are willing and able to buy in the economy in a given period. It is the demand for all goods and services in the entire country per period. Price variation usually causes movements along the demand curve.
Other factors that influence governments, firms, and household expenditures cause the aggregate demand curve to shift. A change in consumer spending will reduce the number of goods demanded. The aggregate demand will shift inwards.
In 2010, real GDP was $13.2 trillion and nominal GDP was $14.6 trillion. What was the GDP deflator for that year?a. 9.6% lower b. 9.6% higher c. 10.6% lower . d. 10.6% higher
Answer:
d. 10.6% higher
Explanation:
Given that;
Real GDP = $13.2 trillion
Nominal GDP = $14.6 trillion
GDP deflator = (Nominal GDP/Real GDP)× 100)
Hence,
GDP deflator = (14.6 / 13.2 ) × 100
GDP deflator = 110.6%
Thus,
= 110.6 - 100
= 10.6% higher
The relevant production range for Challenger Trailers, Inc. is between 120,000 units and 190,000 units per month. If the company produces beyond 190,000 units per month:__________. A. the fixed costs and the variable cost per unit will not change B. the fixed costs may change, but the variable cost per unit will remain the same C. the fixed costs will remain the same, but the variable cost per unit may change D. both the fixed costs and the variable cost per unit may change
Answer: D. both the fixed costs and the variable cost per unit may change
Explanation:
It is said that Fixed costs do not change regardless of production level but this is not entirely true. Fixed costs usually do not change for a production range but if the range is passed, the fixed costs might then increase and a new fixed cost for the new relevant range will be charged.
Variable costs are variable because they change with production so if the company is producing more units, they will be incurring more variable costs.
In conclusion therefore, if the company produces more units than its relevant production range, it risks both fixed and variable costs changing.
Suppose you buy a 7 percent coupon, 20-year bond today when it’s first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond?
a. the price of the bond will fall
b. the price of the bond will raise
Answer: a. the price of the bond will fall.
Explanation:
If one buys a 7% coupon, 20-year bond today when it’s first issued and the interest rates suddenly rise to 15%, the value of the bond will decrease.
This is because there's an inverse relationship between price and interest rates, that is, the increase in one variable will lead to the decrease in the other variable. When there is a rise in the inters rate, it should be noted that the payments on fixed coupon are worth less.
Therefore, the price of the bond will fall.