Answer:
a. $129.50
b. $123.34
Explanation:
We are Calculating the Annual Payment Using the TVM Calculation,
a. PV = 1,000, FV = 0, T= 10, I = 0.05. If the first payment is made at end of year 1, the TVM calculator is adjusted to End mode
Annual payment = PMT(PV, FV, T, I]
Annual payment = PMT( 1,000, 0, 10, 0.05)
Annual payment (PMT) = $129.50
b. PV = 1,000, FV = 0, T= 10, I = 0.05. If the first payment is made at end of year 0, the TVM calculator is adjusted to Beginning mode
Annual payment = BEG PMT(PV, FV, T, I]
Annual payment = BEG PMT( 1,000, 0, 10, 0.05)
Annual payment (PMT) = $123.34
10,000 can be invested under two options: Option 1. Deposit the 10,000 into a fund earning an effective annual rate of i; or Option 2. Purchase an annuity-immediate with 24 level annual payments at an effective annual rate of 10%. The payments are deposited into a fund earning an effective annual rate of 5%. Both options produce the same accumulated value at the end of 24 years. Calculate i.
Answer:
I = 0.06894
Explanation:
The investment amount into 2 options is given as 10000
10000x(1+I)²⁴ is the accumulated value of option a
10000x0.10/(1-i)/1.1²⁴/0.05x1.05^24-1
= 49530.62522
To get I
(49530.62522/10000)^1/24-1
= 1.068995077 - 1
= 0.06894
If you have to reject a job offer because it isn't what you wanted, what is the best step to take?
a.
Say no at the interview to save the employer time
b.
Do not call the interviewer back
c.
Call the interviewer back, thank them, and give a reason for your answer
d.
Call the interviewer and let them know you would never work for them
Answer:
Call the interviewer back, thank them, and give a reason for your answer
Explanation:
Watters Umbrella Corp. issued 15-year binds two years ago at a coupon rate of 6.2 percent. The bonds make semiannual payments. If these bonds currently sell for 98 percent of par value, what is the YTM?
Answer:
YTM = 6.42%
Explanation:
current market value = $1,000 x 98% = $980
n = (15 - 2) x 2 = 26
coupon = $1,000 x 6.2% x 1/2 = $31
face value = $1,000
YTM = [coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = [31 + [(1,000 - 980)/26]} / [(1,000 + 980)/2]
YTM = (31 + 0.77) / 990 = 31.77 / 990 = 0.03209 x 2 (annual yield) = 0.641818 = 6.42%
Discarded materials
On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the: a.variable cost of goods sold b.fixed manufacturing costs c.variable selling and administrative expenses d.fixed selling and administrative expenses
Answer:
c. variable selling and administrative expenses
Explanation:
On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the variable selling and administrative expenses. Variable cost is comprised of cost of goods sold and selling and administrative expense when we deduct cost of goods sold from sales we get manufacturing margin and when we deduct further selling and administrative expense we get contribution margin.
Firm A issued a $1,000,000 bond with a 20-year term at a discount. If the remaining amount of the discount on bonds payable is $100,000 after 10 years and firm A retires the bond at this point at 110 (or for cash of $1,100,000), then what is the loss/gain on this bond retirement?
Answer:
Loss of $200,000
Explanation:
Carrying value of bond = $1,000,000 - $100,000
Carrying value of bond = $900,000
Cash paid on bonds = $1,100,000
Loss on bond = Cash paid on bonds - Carrying value of bond
Loss on bond = $1,100,000 - $900,000
Loss on bond = $200,000
Northwest Lumber had a profit margin of 5.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8.
What was the firm's ROE?
a. 12.79%
b. 13.47%
c. 14.18%
d. 14.88%
e. 15.63%
Answer:
ROE = 0.14175 or 14.175%
Explanation:
The DuPont equation to calculate ROE or return on equity breaks the ROE into three components namely Net Income or Net Profit margin, Total assets turnover and equity multiplier. This is used to see what factor are affecting the Return on Equity generated by the business. ROE under DuPont can be calculated as follows,
ROE = NI Margin * Total Assets Turnover * Equity Multiplier
ROE = 0.0525 * 1.5 * 1.8
ROE = 0.14175 or 14.175%
Research and development costs:____________
a. Generally pertain to activities that occur prior to the start of production.
b. May be expensed or capitalized, at the option of the reporting entity.
c. Must be capitalized and amortized.
d. None of these responses are correct.
Answer:
b. May be expensed or capitalized, at the option of the reporting entity.
Explanation:
The research and development cost is the cost that are incurred for researching and developing a new product, new process, new project
It may be expense or it may be capitalized. Its totally depend on the management of the firm decisions
Therefore the option b is correct and the same is to be considered
During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $204,505 instead of the correct amount of $166,687. The effect on the balance sheet and income statement would be:___________.
a. assets overstated by $37,818 retained earnings understated by $37.818, and not income statement understated by $37.818
b. assets overstated by $204,505; retained earnings understated by $166,687, and no effect on the income statement
c. assets, retained earnings, and net income all overstated by $37.818
d. assets and retained earnings overstated by $166,687; and net income understated by $204,505
Answer:
c. assets, retained earnings, and net income all overstated by $37.818
Explanation:
Given that
Inventory correct amount is $166,687
And, the Inventory wrongly recorded is $204,505
So
inventory was overstated by
= $204,505 - $166,687
= $37,818
As the ending inventory is overstated so the net income is also overstated and if the net income is overstated then the retained earnings would be overstated
hence, the correct option is c.
what are the essential skills of management
Answer:
deal with stress and be a leader
Explanation:
hope this answer helped
You are purchasing a 30-year, zero coupon bond. The yield to maturity is 9.1 percent and the face value is $1,000. What is the current market price (assume annual coupons)?
Answer:
Zero-cupon bond= $73.33
Explanation:
Giving the following information:
Number of years (n)= 30
Face value= $1,000
YTM= 9.1%
To calculate the bond price, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000 / (1.091^30)
Zero-cupon bond= $73.33
Hayward Co. has a 22 percent tax rate. Its total interest payment for the year just ended was $14.3 million. What is the interest tax shield
Answer:
$3,146,000
Explanation:
Calculation for Interest tax shield
Using this formula
Interest tax shield = Total Interest paid *Tax rate
Let plug in the formula
Interest tax shield = $14,300,000*22%
Interest tax shield = $3,146,000
Therefore the Interest tax shield will be $3,146,000
Helen is selling lemonade outside her house. She had calculated her fixed and variable costs for the venture. She found that by selling 25 cups of
lemonade, she was able to earn back the costs that she has put in. Which point has Helen reached?
Helen has reached the
point.
Answer:
Break-even point
Explanation:
The Break-even point is the level of sales where the revenue realized matches the costs incurred. At the break-even point, the business does not make any profits or losses.
Helen has reached the break-even point. By selling 25 cups of lemonade, her revenue equals the total of her fixed and variable costs. A sale of 25 cups does not generate any profits or losses.
What is the effect of an accrued expense (such as salaries expense) adjustment on the income statement and the balance sheet?
A. Expenses are increased.
B. Net income is reduced.
C. Total liabilities are reduced.
D. Net income is increased.
E. A liability (such as salaries payable) will be increased.
Answer: A. Expenses are increased
B. Net income is reduced
E. A liability (such as salaries payable) will be increased.
Explanation:
An accrued expense is an expense that is witten when it was incurred even before it's eventually paid. e.g wages payable.
The effect of an accrued expense such as salaries expense adjustment on the income statement and the balance sheet is that there'll ba na increase in expense. Also, there'll be an increase in liability such as the salaries payable. Since there is an increase in liability, thus will bring about a reduction in the net income.
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 10 percent, and the company just paid a dividend of $2.95, what is the current share price
Answer:
P0 = $86.52419 rounded off to $86.52
Explanation:
Using the two stage 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 to calculate the price of the stock today is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]
Where,
g1 is the initial growth rateg2 is the constant growth rate r is the required rate of returnP0 = 2.95* (1+0.25) / (1+0.1) + 2.95 * (1+0.25)^2 / (1+0.1)^2 +
2.95 * (1+0.25)^3 / (1+0.1)^3 +
[(2.95 * (1+0.25)^3 * (1+0.04) / (0.1 - 0.04)) / (1+0.1)^3]
P0 = $86.52419 rounded off to $86.52
Allison Corp. has just issued nonconvertible preferred stock (cumulative) with a par value of $20 and an annual dividend rate of 4.25%. The preferred stock is currently selling for $18.75 per share. What is the annual yield or return (r) on this preferred stock
Answer:
4.5%
Explanation:
Calculation for the annual yield or return (r) on this preferred stock
Using this formula
PVper = PMT / r
Where,
PVper =$18.75
PMT =(4.25%*$20)=0.85
Let plug in the formula
$18.75 = 0.85 / r
r = 0.045*100
r= 4.5%
Therefore the annual yield or return (r) on this preferred stock will be 4.5%
Monetary policy is BEST described as
A)
benefits received by employees in addition to wages and salaries.
B)
actions by the Federal Reserve System to expand or contract the money
supply.
a system that relies on supply and demand to determine the value of one
currency to another.
C)
D)
actions by the federal government to use spending and revenue collection
to influence the economy
Answer: B
Explanation:
Which factor of production brings together all the other factors of production? ______ brings together all the other factors of production.
Answer:
Entrepreneurship
Explanation:
Answer:
entrepreneurship
Explanation:
____ demonstrates that management has identified an acceptable risk level and provided resources to control unacceptable risk levels.
Answer:
Accreditation
Explanation:
Accreditation is usually known as voluntary process. It occurs when a private non-governmental organization or agency carry out an external review and gives recognition to a program of study or institution that meets certain pre-determined standards. Accreditation is usually carry out thoroughly and in an organized manner.
Fifteen years ago, your parents opened an investment account with an initial deposit of $5,000. Today, that account is worth $38,563. What average annual rate of return did they earn on their investment?
A. 14.47%
B. 14.59%
C. 14.78%
D. 15.03%
Answer:
B. 14.59%
Explanation:
Nper = 15
PMT = 0
PV = -5,000
FV = 38,563
Type = 0
Using the Ms Excel
Rate of return = Rate(Nper, PMT, PV, FV)
Rate of return = Rate(15, 0, -5000, 38,563, 0)
Rate of return = 0.145900003
Rate of return = 14.59%
Suppose that nearly all economic agents expect the inflation rate to be 3% next year. Suppose also that the 52-week Treasury bill presently pays a nominal annual return of 1%. What is the real annual return received by investors who purchase 52-week Treasury bills? Enter it (in percentage points) below. __________
Suppose you deposit $1,000 in a savings account at a bank. The bank promises to pay you interest at an annual rate of 1.75% for as long as you do not make any withdrawals from the account. Note: the interest you earn during a year is calculated by applying the interest rate to the account balance and any earned interest during a year is credited to the savings account. How many years will take for your account balance to reach $2,000, assuming you do not make any withdrawals? Enter this number of years below: _______________
Answer and Explanation:
The computation is shown below:
a. Real interest rate is
= Nominal interest rate - inflation rate
= 1% - 3%
= -2%
2. The number of years is
We have to use the rule of 70 for doubling the investment
= 70 ÷ annual interest rate
= 70 ÷ 1.75%
= 40 years
We simply applied the above formula so that the correct value could come
And, the same is to be considered
An issue of preferred stock is paying an annual dividend of $1.50. The growth rate for the firm's common stock is 5%. What is the preferred stock price if the required rate of return is 7%?
a) $21.43
b) None of these options
c) $22.50
d) $30.00
Answer:
a) $21.43
Explanation:
Preferred stock price = Annual dividend / Required rate
Preferred stock price = 1.50/7%
Preferred stock price = 1.50/0.07
Preferred stock price = 21.42857142857143
Preferred stock price = $21.43
MCQS
(i) Compensation of employees includes ________.
(a) wages, salaries, fringe benefits, Social Security contributions, and health and pension plans
(b) wages, salaries and taxes
(c) wages, salaries taxes and zakat
(d) non of the above
(ii) The difference between the income received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by nonresidents in the domestic territory of a country is known as-------
(a) Net Factor Income from Abroad
(b) Capital Consumption Allowances
(c) Depreciation
(d) None of these
(iii) Suppose that in year 1 an economy produces 75 unit of apple that sell for $5 each and 100 mobile that sell for $6 each. The next year the economy produces 110 apple that sell for $3.75 each and 80 mobile that sell for $5 each. The real GDP is
(a) 812.5
(b) 975
(c) 1030
(d) 980
(iv) What of the following does NOT enter GDP?
(a) Public Service
(b) Public education
(c) Life Expectancy
(d) National Defence
(v) The sum of all kinds of income received by the individuals from all sources is called---------
(a) Personal Income
(b) Private Income
(c) Personal Disposable Income
(d) None
Answer:
MCQS
(i) Compensation of employees includes ________.
(a) wages, salaries, fringe benefits, Social Security contributions, and health and pension plans .
(ii) The difference between the income received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by nonresidents in the domestic territory of a country is known as-------
(a) Net Factor Income from Abroad .
(iii) Suppose that in year 1 an economy produces 75 unit of apple that sell for $5 each and 100 mobile that sell for $6 each. The next year the economy produces 110 apple that sell for $3.75 each and 80 mobile that sell for $5 each. The real GDP is
(c) 1030 .
(iv) What of the following does NOT enter GDP?
(c) Life Expectancy.
(v) The sum of all kinds of income received by the individuals from all sources is called---------
(a) Personal Income.
Explanation:
1) Employee Compensation includes the salaries, wages, benefits, and other incentives paid to employees in exchange for their services to the company.
3) The Net factor income from abroad is the difference between the factor income earned from abroad by normal US residents and the factor income earned by non-residents (foreigners) in the US domestic territory.
4) The real GDP is the gross domestic product adjusted for the effect of inflation on prices. The real GDP for year 2 should be based on the prices of year 1 and is calculated as follows (110 * 5 + 80 * 6 = 1030).
5) Personal income is the sum of all kinds of income received by the individuals from all sources. It is used in the calculation of the US GDP. It is a subset of private income. Private income, which is broader than personal income, consists of personal income, profit tax, and undistributed profit.
Thompson Stores is considering a project that has the following cash flow data. What is the project's IRR? Year Cash Flow 0 ($1,000) 1 $300 2 $295 3 $290 4 $285 5 $270a. 11.16%.b. 12.40%.c. 13.78%.d. 15.16%.e. 16.68%.
Answer: c. 13.78%
Explanation:
The Internal Rate of Return(IRR) is the discount rate that brings the Net Present Value (NPV) to zero.
It can be calculated using excel amongst other methods.
= IRR (-1000,300,295,290,285,270)
= 13.78%
What is
Variable cause
Answer:
The idea is that one variable is the effect of another variable or, to say it another way, that one variable precedes and/or causes another. The dependent variable is the variable to be explained (the 'effect”). The independent variable is the variable expected to account for (the “cause” of) the dependent variable.
I hope you helped^_^
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Explanation:
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. *Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 545,000 units during next year, the number of units it would have to manufacture during the year would be:________
a) 492,000 units
b) 545,000 units
c) 575,000 units
d) 515,000 units
Answer: d. 515,000 units
Explanation:
If they plan to sell 545,000 units then given those beginning and ending balances of finished goods, they will have to manufacture;
= Sales + Ending balance - Beginning balance
= 545,000 + 63,000 - 93,000
= 515,000 units
Jake Shirt Co. used 5,300 square yards of polyester to produce 3,000 shirts. The standard quantity of material for the 3,000 shirts produced is 6,100 square yards. The standard price for direct materials is $4.00 per square yard. The entry to record the direct materials quantity variance would include a:_____________
a. debit to Direct Materials Quantity Variance for $3,200.
b. credit to Direct Materials Quantity Variance for $3,200.
c. debit to Direct Materials Quantity Variance for $12,000.
d. credit to Direct Materials Quantity Variance for $12,000.
Answer:
b. credit to Direct Materials Quantity Variance for $3,200.
Explanation:
Direct material quantity variance = Standard quantity - Actual quantity * Standard price for direct material
Direct material quantity variance = (6,100 - 5,300) * $4
Direct material quantity variance = 800 * $4
Direct material quantity variance = $3,200 Favorable
The entry to record the direct materials quantity variance would include a credit to Direct Materials Quantity Variance for $3,200
Currently, Cathy's Shirt Shop sells 498 units a month at an average price of $98 a unit. The company thiks it can increase sales by an additional 140 units a month if it switches to a net 30 credit policy. The monthly interest rate is .45 percent and the variable cost per unit is $55. What is the incremental cash inflow of the proposed credit policy switch?
Answer:
$6,020
Explanation:
Calculation for the incremental cash inflow
Using this formula
Incremental cash flow=(Average price per units-Variable cost per unit)*Additional units
Let plug in the formula
Incremental cash flow = ($98 - $55)*140 units
Incremental cash flow=$43*140 units
Incremental cash flow= $6,020
Therefore the incremental cash inflow will be $6,020
1. If rs increases to 10%, what would be the value of the constant growth stock? (Note: D0 is $1.15 and the expected constant growth rate g = 4%.)
Answer: 19.93
Explanation:
The constant growth stock is $19.16. P = D/(r-g), where P is the current price, D is the next dividend to be paid, g is the expected dividend growth rate, and r is the required rate of return for the company.
What is a Constant growth rate?
A constant growth rate is defined as the average rate of return on investment over the time period required to achieve the total growth percentage that an investor seeks.
Given
Rate (r) = 10%
Growth (g) = 4%
Dividend (D) = $1.15
Required to calculate growth stock =?
growth stock P = D/(r-g)
growth stock = 1.15 / (10 - 4) = $19.16
Thus, the constant growth is $19.16. A constant growth rate is defined as the average rate of return on an investment during the time period required to achieve the total growth percentage desired by the investor.
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The formula for accounts receivable turnover is computed as _____ divided by average accounts receivable, net.
Answer:
revenue
Explanation:
Accounts receivable turnover is an example of activity ratios. It measures the efficiency by which accounts receivable are collected.