Answer: 80 computers per day
Explanation:
In calculating the break-even point, it important to consider two types of costs. There are fixed costs, costs that don´t change no matter what happens with demand (in this case computers to be fixed), and variable costs, that varies depending on the demand.
Fixed costs:
Equipment Rent: 250
Space Rent: 150
Variable Costs:
Material per computer: 18
Labor per computer: 3
We have to pay $400 no matter what, and more depending on how many pcs are fixed. Now it’s a matter of calculating how many pcs are necessary to pay for that fixed costs and the variable costs that will come with it.
If there were no variable costs, the break-even point would be 16 pcs [16*26=416] (a little more than 15 but u can’t fix half of a pc lol).
However, knowing that the cost per pc is $21, we realize that we earn only $5 per pc. And how many $5 there are in $400? 80 pcs!
Phew! Let’s recap:
80 pcs fixed: $2080 revenue
Variable Cost: 21*80 = $1680
Fixed Cost: $400
2080 – 1680 – 400 = 0. Break-even!
As a side note: in this case, the center capacity is irrelevant because we can break-even well beneath the limit. However, in order to maximize profits, it would be a important data to work with.
Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for different customer loads are: 1 customer: $30 2 customers: $32 3 customers: $35 4 customers: $38 5 customers: $42 6 customers: $48 7 customers: $57 8 customers: $68. If you are compensated $10 per ride, what customer load would you choose?
Answer:
Explanation:
I will choose 1 customer because I will end up carry 1 load and get $10 dollars... Since the compensation is per ride not per customers...
The cost for manufacturing a component used in intelligent interface converters was $23,000 the first year. The company expects the cost to increase by 2% each year. Calculate the present worth of this cost over a fiveyear period at an interest rate of 10% per year.
Answer:
present worth = $7380
Explanation:
given data
initial cash flow = $23,000
geometric gradient = 2%
interest rate i = 10% per year
time period = 5 year
solution
we get here present worth cost that is
present worth = initial cash flow × [tex]\frac{1-(\frac{1+g}{1+i})^t}{1-g}[/tex] ......................1
put here value and we get
present worth = $23,000 × [tex]\frac{1-(\frac{1+0.02}{1+0.10})^5}{1-0.02}[/tex]
present worth = $23,000 × 0.32087
present worth = $7380
Frederick W. Taylor is speaking to a friend about scientific management. Which of the following statements might Frederick say?
(A) "Make sure your managers are spending time in five different areas: planning, organizing, commanding, coordinating, and controlling. If they’re overlooking an area, the company won’t be as effective."
(B) "Are you dividing work and responsibility equally between managers and employees? Managers need to provide friendly help to the workers they employ."
(C) "What kinds of rules and procedures do you have in place? Create a set of rules and apply them consistently throughout the organization."
Frederick W. Taylor would likely discuss the equal division of work and responsibility between managers and employees, reflecting his emphasis on scientific management, time and motion studies, and improving workplace efficiency.
Explanation:If Frederick W. Taylor were speaking to a friend about scientific management, he might say: "Are you dividing work and responsibility equally between managers and employees? Managers need to provide friendly help to the workers they employ." This statement aligns with Taylor's philosophy on improving efficiency and productivity in the workplace through careful study and redesign of work processes and fostering a supportive relationship between management and workers. Taylor's approach emphasized the importance of time and motion studies for creating efficient work processes and believed that the goal of management should be to maximize productivity, benefiting both the employer and the employees.
Bank D pays 7.289% effective annual yield on an investment account in which interest is compounded weekly. What is the annual interest rate before compounding? Enter your answer as a percent, rounded to the nearest four decimals, without the % sign, (9.34562% should be input as 9.3456.)
Answer:
annual percentage rate: 7.0404%
Explanation:
We need to solve for the annual convertible rate when we are given with the annual effective rate:
[tex](1+APR/52)^{52}=1+0.07289\\APR =( \sqrt[52]{1.07289} -1) \times 52\\[/tex]
apr = 0.0704035593 = 7.0404%
Answer:
7.0403
Explanation:
Suppose the initial investment is $1, we start the formula rEFF=A−P0P0. Next, substituting, we now have 0.07289=A−11 or 0.07289=A−1, so A=$1.07289. We now use this value for A in the formula A=P0⋅(1+rk)N⋅k with P0=$1, k=52 compounding periods for weekly compounded interest, N=1 year, and r is the unknown monthly compounded interest rate for which we are solving. Plug the values into the formula. Take the fifty-second root of both sides. Next, subtract 1 from both sides, and multiply both sides by 52.
1.072891.00135390.00135390.0704028=(1+r52)52=1+r52=r52=r
The final step gives us 0.0704028, converted into a percentage and rounded to four decimal places is 7.0403.
The following information is available for Kinsner Corporation: Total fixed costs $313,500 Variable costs per unit $99 Selling price per unit $154 If management has a targeted net income of $46,200, then the number of units that must be sold is ________. Select one: A. 6,540 units B. 2,036 units C. 2,336 units D. 5,700 units
Answer:
The number of units that must be sold is A. 6,540 units
Explanation:
The number of units must be sold to meet the target profit figure are calculated by using following formula:
The number of units must be sold = (Total fixed cost + Targeted profit) / Contribution margin per unit.
Contribution margin per unit = Sales price per unit – Variable cost per unit = $154 - $99 = $55
The number of units must be sold = ($313,500 + $46,200)/$55 = 6,540 units
Multinational organizations can shop from country to country and cut costs through: lower wage scales. lower indirect costs. less stringent regulations. lower taxes and tariffs. All of these.
Answer:
All of these
Explanation:
This is because a multinational company can cut costs of operation from one country to another.For example, for the same company setup, one in China and the other in America, the former will have a lower wage scale than the latter due to their varied economic policies.
Furthermore, there will also be less stringent regulation and lower taxes and tariffs in the former than the latter
On May 1, Mary's Morsels Company provided catering services at a wedding. The bride is billed $4,000 and will pay during the following month. Record this transaction on May 1 in the accounting equation of Mary's Morsels by:
Answer:
accounts receivables 4,000 debit
services revenue 4,000 credit
Explanation:
The accounting works with accrual basis so we will reocrd the transaction when it was performed regarding of the time of collection of the catering services.
The accounting wil represent the fact the services weren't pay at the moment of performance thus, the business has the claim on the billed amount.
Also, it will represent the amount earned for the business which is the 4,000 dollar billed.
The accounting transaction for Mary's Morsels Company will be recorded as a $4000 increase in Assets (Accounts Receivable) and a $4000 increase in Equity (Service Revenue), per the principles of accrual accounting.
Explanation:In the given scenario, Mary's Morsels Company has provided a catering service but the payment of $4000 will be received in the following month. This is known as accrual accounting. For May 1, the entry in the accounting equation would show an increase in Accounts Receivable and an increase in Service Revenue, both by $4000.
This means the accounting equation is as follows: Assets = Liabilities + Equity
Here, Assets (Accounts Receivable) increase by $4000 and Equity (Service Revenue) also increases by $4000, while there is no change in liabilities. So, you would add $4000 to both sides of the equation.
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Hunter Company reported a net loss of $12,000 for the year ended December 31, 2017. During the year, accounts receivable decreased $28,000, inventory increased $20,000, accounts payable increased by $30,000, and depreciation expense of $24,000 was recorded. During 2017, operating activities:
1. used net cash of $10,000. used net cash of $25,000.
b. provided net cash of $25,000. provided net cash of $10,000.
Answer:
$50,000
Explanation:
The preparation of the operating activities under the indirect method is shown below:
Cash flows from operating activities
Net loss -$12,000
Add: Depreciation expense $24,000
Add: Decrease in account receivable $28,000
Less: Increase in inventory -$20,000
Add: Increase in account payable $30,000
Cash provided from operating activities $50,000
The options are incorrect. The right answer is shown above
Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality analysis. The following cost and revenue data are available for the most recent year ended December 31: Sales revenue$250,000 Cost of goods sold 140,000 Warranty expense 21,000 Inspection costs 15,000 Scrap and rework 8,600 Product returns due to defects 6,000 Depreciation expense 10,000 Machine maintenance expense 3,000 Wage expense 35,000 Machine breakdown costs 4,000 Estimated lost sales due to poor quality 5,000
Explanation:
a. The classification is shown below:
Prevention cost: This cost incurred so that the faults, or defects could be minimized as compare to before. It includes the machine maintenance expense i.e $3,000
Appraisal cost: This cost incurred specially to meet the quality of the customer expectations. It is a quality control cost. It includes the inspection cost of $15,000
Internal failure: This cost is occurred before delivery the product from the factory. It includes Scrap and rework of $8,600 and Machine breakdown cost of $4,000
External failure: This cost is occurred after delivery the product. It includes the warranty expense of $21,000, product return due to defects of $6,000 and Estimated lost sales due to poor quality of $5,000
b. Now the percentage is
= (Prevention and appraisal cost) ÷ (Sales revenue) × 100
= ($3,000 + $15,000) ÷ ($250,000) × 100
= 7.2%
c. The percentage is
= (Internal and external failures) ÷ (Sales revenue) × 100
= ($8,600 + $4,000 + $21,000 + $6,000 + $5,000) ÷ ($250,000) × 100
= 17.84%
Below is the attachment for cost of quality report
A production possibilities frontier can shift outward if a. resources are shifted from the production of one good to the production of the other good. b. the economy abandons inefficient production methods in favor of efficient production methods. c. government increases the amount of money in the economy. d. there is a technological improvement.
Answer:
d. there is a technological improvement.
Explanation:
a) replacing production of one good in favor of another will be a move across the PPF
b) abandon inefficient production will bring the production to the PPF from a place below it.
c) has no relationship it will simply put inflationary pressure.
d) the technological improvement will make a better use of the factor thus, increasing productivity and making possible more production with the same amount of materials.
The Production Possibility Frontier (PPF) can shift outward in the event of improvements in efficiency of production methods or technological advancements. An increase in money in the economy or shifting resources between products do not directly shift the PPF.
Explanation:The Production Possibility Frontier (PPF) is a graphical representation showing the combination of two goods that can be produced using available resources and technology efficiently. The PPF can shift outwards due to certain factors. Among the options given:
a: Shifting resources from one product to another doesn't cause an outward shift in the PPF, rather it moves along the curve.b: An abandonment of inefficient production methods for more efficient ones could result in an outward shift, as it may increase the total possible production.c: Increasing the amount of money in the economy does not directly result in an outward shift of the PPF. The PPF relates to the physical output of goods, not the monetary value of those goods.d: Technological improvement effectively allows a more efficient use of resources, thus shifting the PPF outward, because it increases the total output that can be produced with the same amount of resources.Learn more about Production Possibility Frontier here:https://brainly.com/question/31725148
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Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3.1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. Depreciation Expense1 Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method2 Year 13 Year 24 Year 35 Total2. What method yields the highest depreciation expense for Year 1?a. Straight-line methodb. Units-of-output methodc. Double-declining-balance methodd. All three depreciation methods3. What method yields the most depreciation over the three-year life of the equipment?a. Straight-line methodb. Units-of-output methodc. Double-declining-balance methodd. All three depreciation methods
Explanation:
The computation is shown below:
a) Straight-line method:
= (Purchased cost of packaging equipment - residual value) ÷ (expected useful life)
= ($72,000 - $4,500) ÷ (3 years)
= ($67,500) ÷ (3 years)
= $22,500
In this method, the depreciation is same for all the remaining useful life
So for all years, the total depreciation is
= $22,500 × 3 years
= $67,500
(b) Double-declining balance method:
First we have to find the depreciation rate which is shown below:
= One ÷ expected useful life
= 1 ÷ 3
= 33.33%
Now the rate is double So, 66.67%
In year 1, the original cost is $72,000, so the depreciation is $48,000 after applying the 66.67% depreciation rate
And, in year 2, it would be
= ($72,000 - $48,000) × 66.67%
= $16,000
And, in year 3, it would be
= $67,500 - $48,000 - $16,000
= $3,500
So the total depreciation is
= $48,000 + $16,000 + $3,500
= $67,500
(c) Units-of-production method:
= (Purchased cost of packaging equipment - residual value) ÷ (estimated operating hours)
= ($72,000 - $4,500) ÷ (18,000 hours)
= ($67,500) ÷ (18,000 hours)
= $3.75 per hour
For first year
= 7,600 × $3.75 per hour
= $28,500
For second year
= 6,000 × $3.75 per hour
= $22,500
For third year
= 4,400 × $3.75 per hour
= $16,500
So, the total depreciation is
= $28,500 + $22,500 + $16,500
= $67,500
2. By above calculations, we concluded that the double declining method yields higher depreciation expense in year 1 i.e $48,000
3. By above calculations, we concluded that the all depreciation methods yields most depreciation over the three-year life of the equipment
Why is audience analysis so important in the selection of the direct or indirect organization strategy for a business message?
Audience analysis is pivotal in selecting the appropriate organisational strategy for a business message, be it direct or indirect. Understanding the audience's preferences, needs, and expectations guides this choice.
A direct strategy suits audiences with limited time, already familiar with the subject, where the main point is stated upfront. Conversely, an indirect strategy, building up to the main point, suits unfamiliar or skeptical audiences.
The wrong strategy can lead to disengagement or confusion. Audience analysis ensures alignment between strategy and audience, optimizing comprehension, engagement, and persuasion, fostering effective communication and desired outcomes in the business message.
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Trina'sTrikes, Inc. reported a debt-to-equity ratio of 2 times at the end of 2018. If the firm's total debt at year-end was $10 million, how much equity does Trina's Trikes have? Multiple Choice $2 million $5 million $10 million $20 million
Answer:
$5 million
Explanation:
Trina'sTrikes, Inc. reported following figures:
Debt Equity Ratio = 2
Total Debt = 10 million
Formula for Debt Equity ratio is as follows:
Debt Equity Ratio = Total Debt / Total Equity
2 = $10 million / Total Equity
Total Equity = $10 million / 2
Total Equity = $5 million
So the correct option is $5 million
A 10-year German government bond (bund) has a face value of €100 and a coupon rate of 5% paid annually. Assume that the interest rate (in euros) is equal to 6% per year. What is the bond’s PV?
Answer:
€92.64
Explanation:
The present value i.e PV formula is used that is shown in the attached spreadsheet
The NPER reflects the time period.
Given that,
Future value = €100
Rate of interest = 6%
NPER = 10 years
PMT = €100 × 5% = €5
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be €92.64
To find the present value of a bond, calculate the present value of its future coupon payments and its face value, then sum these values. The present value of the bond is the amount it would be worth in today's euros.
Explanation:The bond's present value (PV) is computed using a discount rate equal to the market interest rate and cash flows based on the bond's face value and coupon rate. The bond pays an annual coupon of €5 (€100 * 5%) for 10 years and pays back the face value of €100 at maturity. Each cash flow is discounted back at the 6% interest rate:
PV of Coupons = €5 / (1+0.06)¹ + €5 / (1+0.06)² + ... + €5 / (1+0.06)¹⁰PV of Face Value = €100 / (1+0.06)¹⁰Adding these two components together gives the total present value of the bond. This tells us how much the bond would be worth in today's euros, given the future cash flows and the market interest rate.
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For questions 9-12, use the following scenario. You are a consultant and have been employed by Urban General, a large inner-city hospital, to estimate the demand for its services. Your research indicates that the income elasticity of demand for the target market is +0.50; the price elasticity of demand is -0.15; and the cross-price elasticity of demand with respect to the price of services at St. Elsewhere, a near-by hospital, is +0.35. Answer the following questions.
The price of services at St. Elsewhere falls by 10 percent. What happens to the quantity of services demanded at Urban General?
Quantity demanded rises by 35.0 percent.
Quantity demanded falls by 3.5 percent.
Quantity demanded falls by 1.5 percent.
Quantity demanded rises by 5.0 percent.
Quantity demanded stays the same.
Answer:
Quantity demanded falls by 3.5 percent.
Explanation:
Given that,
Income elasticity of demand = +0.50
Price elasticity of demand = -0.15
Cross-price elasticity of demand = +0.35
price of services at St. Elsewhere falls by 10 percent
Therefore,
Cross price elasticity of demand = Percentage change in quantity demanded ÷ Percentage change in price
+0.35 = Percentage change in quantity demanded ÷ (-10%)
0.35 × (-10%) = Percentage change in quantity demanded
(-3.5%) = Percentage change in quantity demanded
Hence, the quantity demanded falls by 3.5%.
Final answer:
Using the cross-price elasticity of demand, a 10 percent decrease in the price of services at St. Elsewhere leads to a 3.5 percent drop in the quantity demanded at Urban General.
Explanation:
The question involves understanding the impact of a change in the price of services at a nearby hospital (St. Elsewhere) on the demand for services at Urban General, utilizing the concept of cross-price elasticity of demand. Given that the cross-price elasticity of demand with respect to the price of services at St. Elsewhere is +0.35, and there's a 10 percent fall in the price of services at St. Elsewhere, we can calculate the effect on the quantity demanded at Urban General. Since cross-price elasticity of demand measures the percentage change in the quantity demanded of one good resulting from a 1 percentage change in the price of another good, a 10 percent decrease in the price at St. Elsewhere leads to a 3.5 percent (0.35 * -10) fall in the quantity demanded at Urban General. Therefore, the correct answer is: Quantity demanded falls by 3.5 percent.
A company is in its first month of operations. Supplies worth $4,000 were purchased on January 5. At the end of the month supplies worth $3,000 were in hand. What adjusting entry would be made at the end of January?
Answer:
Adjustying Entry at the end of January
Dr. Cr.
Supplies Expense Account $1,000
Supplies Inventory Account $1,000
Explanation:
Opening supplies = 0 (First month of operation)
Purchases on January 5 = $4,000
Supplies on January 31 = $3,000
Closing Inventory = Opening Inventory + Purchase during the month - Expense for the month
$3,000 = $0 + $4,000 - Expense for January
Expense for January = $4,000 - $3,000 = $1,000
Monthly rates of return are as follows: January = 2.800%, February = 4.950% and March = 3.540%. The monthly time-weighted rate of return for the three month period is ________.
Answer:
3.76% will be the rate of return per month
while 11.71% the rate of return for the quarter
Explanation:
We have to look for a rate which is equivalent to this three rates.
[tex](1+r_1)(1+r_2)(1+r_3) = (1+r_e)^3\\(1+.028)(1+.0495)(1+.0354)=(1+r_e)^3\\\\\sqrt[3]{1,1170785644} -1 = r_e\\r_e = 0.037595086[/tex]
Following are the January transactions:
Received a $665 deposit from a customer who wanted her piano rebuilt in February.
Rented a part of the building to a bicycle repair shop; $685 rent received for January.
Delivered five rebuilt pianos to customers who paid $18,675 in cash.
Delivered two rebuilt pianos to customers for $9,600 charged on account.
Received $8,000 from customers as payment on their accounts.
Received an electric and gas utility bill for $395 for January services to be paid in February.
Ordered $1,255 in supplies.
Paid $2,600 on account in January.
Paid $12,200 in wages to employees in January for work done this month. Received and paid cash for the supplies in (g).
Prepare journal entries for the above January transactions.
The question asks for the preparation of journal entries for various January transactions in a business context.
Explanation:The subject of this question is Business. The question is asking to prepare journal entries for various January transactions. To prepare journal entries, we need to record the transactions in the appropriate accounts, following the rules of double-entry bookkeeping.
Three important steps are involved in preparing journal entries:
Analyze the transaction and determine the accounts affected.Identify the account type (asset, liability, equity, revenue, or expense) and the impact of the transaction on the account.Record the transaction in the journal, using debits and credits to maintain the accounting equation (Assets = Liabilities + Equity). Debits are recorded on the left side of the account, while credits are recorded on the right side of the account.Based on the given transactions, you will need to analyze and record the corresponding journal entries, considering the impact on different accounts such as cash, accounts receivable, rent revenue, supplies, accounts payable, wages expense, and utility expense.
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Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why? Please show your work.
Answer:
1
Unitary elastic
Elasticity of demand is unitary elastic because the absolute value of elasticity is equal to 1.
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded / percentage change in price
Percentage change in quantity demanded = (25 - 15) / 25 = 0.4 × 100 = 40%
Percentage change in price = ($5 - $7) / $5 = 0.4 × 100 = 40%
Elasticity of demand = 40% / 40% = 1
If coefficient of elasticity is equal to 1, demand is unit elastic. It means that a change in price has an equal efect on the quantity demanded. Quantity demanded has an equal and proportional change to changes in price.
I hope my answer helps you
The price elasticity of demand is calculated to be 1, indicating unitary elasticity. This means a percentage change in price leads to an equal percentage change in quantity demanded, which implies widgets have a proportional responsiveness to price changes.
Explanation:The price elasticity of demand for widgets can be calculated using the formula: PED = (% Change in Quantity Demanded) / (% Change in Price)
To determine the percentage change in quantity demanded, subtract the new quantity (15 widgets) from the original quantity (25 widgets), divide by the original quantity, and multiply by 100. The calculation is: [(15 - 25) / 25] * 100 = -40%
The percentage change in price is calculated as: [(7 - 5) / 5] * 100 = 40%
Substituting these values into the formula gives: PED = (-40%) / (40%) = -1. Because we usually report price elasticity of demand as absolute values, we interpret it as 1 in absolute value terms.
Since the price elasticity of demand is 1, it indicates a unitary elasticity. This implies that a 1% change in price induces a proportionate 1% change in quantity demanded. So, as price increased, customers decreased their purchase of widgets proportionately.
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Frank purchased his house 16 years ago by taking out a 25-year mortgage for $150,000. The mortgage has a fixed interest rate of 5 percent compounded monthly. If he wants to pay off his mortgage today, how much money does he need? He made his most recent mortgage payment earlier today. (Round your intermediate calculation and your answer to two decimal places.)
Answer:
The answer is $76,312.05
Explanation:
We have monthly interest rate which is discount rate is: 5% / 12 = 0.42%;
The mortgage will have 25 x 12 = 300 payments;
The monthly payment is calculated by applying present value for annuity as below:
(150,000 x 0.42%) / [ 1 - (1+0.42%)^(-300)] = $880.38
As at the time of fully pay-off, there are (25-16) * 12 = 108 payments left.
The amount needs to fully pay-off this loan is equal to the present value of 108 payments left which is calculated as below:
(880.38/0.42%) * ( [ 1 - (1+0.42%)^(-108)] = $76,312.05.
So, the answer is $76,312.05.
Individuals are rationally ignorant about the wealth implications of government activities because the cost of acquiring such information is high and the private benefit is low.true or false
Answer:
The answer is true
Explanation:
The cost of acquiring information about the wealth implications of government activities is high
A company reports the following information as of December 31st:
Sales revenue $ 350,000
Cost of goods sold $ 150,000
Operating expenses $ 110,000
Foreign currency translation gain $ 25,000
1. Ignoring income taxes, what amount should the company report as net income as of December 31st?
Answer:
The company will report $115,000
Explanation:
Giving the following information:
Sales revenue= 350,000
Cost of goods sold= (150,000)
Gross profit= 200,000
Operating expenses= (110,000)
Net operating income= 90,000
Foreign currency translation gain= 25,000
Net income= 115,000
The company will report $115,000
Makers Corp. had additions to retained earnings for the year just ended of $261,000. The firm paid out $194,000 in cash dividends, and it has ending total equity of $4.99 million. The company currently has 130,000 shares of common stock outstanding.a. What are earnings per share?b. What are dividends per share?c. What is the book value per share?d. If the stock currently sells for $74 per share, what is the market-to-book ratio?
Answer:
a. $3.5 per share
b. $1.49 per share
c. $38.38 per share
d. 1.93 times
Explanation:
The computation is shown below:
a. Earning per share = (Net income) ÷ (Number of shares)
where,
Net income = Additions to retained earnings + cash dividends
= $261,000 + $194,000
= $455,000
So, the earning per share equal to
= $455,000 ÷ 130,000 shares
= $3.5 per share
b. Dividend per share = (Total dividend) ÷ (number of shares)
= ($194,000) ÷ (130,000 shares)
= $1.49 per share
c. Book value per share = (Total equity) ÷ (number of shares)
= ($4,990,000) ÷ (130,000 shares)
= $38.38 per share
d. Market to book ratio = (Market price per share) ÷ (book value per share)
= $74 ÷ $38.38
= 1.93 times
Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $75,000 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42.
What is his portfolio's beta?a.1.12
b.0.86
c.0.92
d.0.99
e.0.81
Answer:
Beta of portfolio will be 0.92
So option (C) will be correct answer
Explanation:
We have given total investment of stock = $100000
Investment of stock A = $75000
Investment of stock B = $100000 - $75000 = $25000
Wight of stock A [tex]=\frac{75000}{100000}=0.75[/tex]
Weight of stock B [tex]=\frac{25000}{100000}=0.25[/tex]
Beta of stock A = 0.75
And beta of stock B = 1.42
We have to fond the beta of portfolio
So beta of portfolio = weight of stock A × beta of stock A + weight of stock B × beta of stock B = 0.75×0.75 +0.25×1.42 = 0.92
So beta of portfolio will be 0.92
So option (C) will be correct answer
Assume for Brazil that the opportunity cost of each cashew is 100 peanuts. Which of these pairs of points could be on Brazil’s production possibilities frontier?
Answer: (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts)
Explanation:
The best pair point as related to the opportunity cost is (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts).
If Brazil had an opportunity cost on each cashew for 100 peanuts, then, its best pairs of points on its production possibilities frontier will be (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts).
The Production possibility frontier is an economic curve that illustrates the amounts of two products that can be produced while both of them depend on the exhaustible resources.
In conclusion, the pair will be (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts).
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Comprehensive income is determined by adding or subtracting __________ to (from) __________.
a. other comprehensive income; operating expenses
b. other comprehensive income; gross profit
c. income from continuing operations; other comprehensive
d. income other comprehensive income; net income
Comprehensive income is determined by adding or subtracting income other comprehensive income to (from) net income.
Explanation:Comprehensive income is a financial reporting concept that goes beyond traditional net income. It includes all changes in shareholders' equity during a specific period, except those resulting from investments by owners and distributions to owners. Comprehensive income encompasses both realized and unrealized gains and losses, such as changes in the fair value of investments or foreign currency translation adjustments.
This broader perspective provides stakeholders with a more comprehensive view of a company's financial performance and helps assess its overall economic well-being. It's particularly valuable for companies with significant exposure to market fluctuations, foreign operations, or complex financial instruments, as it captures a more holistic picture of their financial health.
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Comprehensive income is calculated by adding Other Comprehensive Income to Net Income. Other Comprehensive Income includes all unrealized gains and losses not included in net income. Therefore, it provides a broader view of a company's financial performance.
Explanation:Comprehensive income is determined by adding
Other Comprehensive Income
(OCI) to
Net Income
, as per option d in your question.
Comprehensive Income helps to provide a bigger and more holistic picture of a company's financial performance. Unlike Net Income, Comprehensive Income includes all revenues, costs, gains, and losses that directly affect shareholders' equity. Other Comprehensive Income encapsulates unrealized gains and losses that are not included in net income, such as foreign currency translation gains or losses, pensions plan gains or losses, and unrealized gains or losses from hedging activities.
So, to calculate Comprehensive Income, you start with Net Income and then add or subtract Other Comprehensive Income. This can include both positive and negative amounts, depending on the company's activities during the accounting period under consideration.
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The following scenarios describe the price elasticity of supply and demand for a particular good. All else equal (equilibrium price, equilibrium quantity, and size of the tax), in which scenario will government revenues be the highest? Choose only one.
a. Elastic demand, inelastic supply.
b. Inelastic demand, inelastic supply.
c. Elastic demand, elastic supply.
d. Inelastic demand, elastic supply.
Answer:
. Inelastic demand, inelastic supply.
Explanation:
If demand is inelastic, a small change in price has little or no effect on the quantity demanded.
If supply is inelastic, a small change in price has little or no effect on the quantity supplied.
Government tax increases the cost of a good. If tax is levied on a good and both demand and supply are inelastic, government revenue would increase and be the highest when compared to the other options.
Demand is elastic when a change in price has a greater effect on the quantity demanded.
Supply is elastic if a small change in price has a greater effect on the quantity supplied.
If demand or supply is elastic and government imooses tax, revenue would fall as quantity demanded would fall.
I hope my answer helps you
For the highest government revenues, the scenario featuring inelastic demand and inelastic supply is optimal. This is due to consumers and producers being less responsive to price changes, consequently maintaining quantities of goods bought and sold, leading to more revenue.
Explanation:Given the scenarios outlined in the question, government revenues will be the highest in the situation with inelastic demand and inelastic supply (option b). The term 'elasticity' refers to how sensitive the quantity demanded or supplied is to changes in price. When demand is inelastic, consumers are less responsive to price changes, so a tax that raises the price will result in smaller decreases in quantities bought. Similarly, when supply is inelastic, producers cannot rapidly change their production quantities in response to price changes, so a tax that raises the price will not result in large decreases in quantities supplied. The combination of inelastic demand and inelastic supply means that a tax increase will cause small decreases in quantities bought and sold, thus resulting in higher government revenues.
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A company recently announced that it would be going public. The usual suspects, Morgan Stanley, JPMorgan Chase, and Goldman Sachs will be the lead underwriters. The value of the company has been estimated to range from a low of $5billion to a high of $100billion, with $45billion being the most likely value. If there is a 20% chance that the price will be at the low end, a 10% chance that the price will be at the high end, and a 70% chance that the price will be in the middle, what value should the owner expect the company to price at?
The expected value of the company's price at public offering, considering the probabilities and values provided, is calculated to be $42.5 billion.
Explanation:The expected value of the company's price when it goes public can be calculated using the probabilities and values given. The expected value (EV) is calculated by multiplying each possible value by its corresponding probability and summing these products. Therefore, the calculation is as follows:
20% chance at $5 billion = 0.2 * 5 = $1 billion70% chance at $45 billion = 0.7 * 45 = $31.5 billion10% chance at $100 billion = 0.1 * 100 = $10 billionAdding these values together, the EV = $1 billion + $31.5 billion + $10 billion = $42.5 billion.
Thus, the owner should expect the company to price at around $42.5 billion when it goes public.
A local bank advertises the following deal: ""Pay us $100 a year for 10 years and then we will pay you (or your beneficiaries) $100 a year forever."" Is this a good deal if the interest rate is 6%?
Answer: at $194.6673, it is a good deal to invest
Explanation:
From the statement made by the bank that investors should pay $100 per year for 10 years to get a return of $100 per year forever at an interest rate of 6%, we would need to calculate the Present net value to determine if this is a good deal.
Present net value = Present value of Perpetuity - Present value of Annuity
let us solve for each;
⇒ Present value of annuity in year 0
Present value = payment made × [(1- 1/(1+interest rate)yrs) / interest rate]
= $100 × [(1- 1/(1+6%)¹⁰) / 6%]
= $100 × [(1- 1/(1.06)¹⁰) / 0.06] = $100 ˣ 7.360087
Present value of annuity₀ = $736.0087
⇒ Value of Perpetuity in year 10
Present value of Perpetuity₁₀ = Amount / Rate
= $100/6% = $100/0.06 = $1666.7
∴ Present value of Perpetuity₁₀ = $1666.7
⇒ Present value of perpetuity in year 0
Present value of Perpetuity₀ = Value of Perpetuity in the end of year 10 / (1 + Rate)ⁿ
where n = no of years
= $1666.7 /(1 + 6%)¹⁰ = $930.676
Present value of Perpetuity₀ = $930.676
Therefore the Net Present value = Present value of perpetuity(inflow) - Present value of annuity(outflow)
Therefore the Net Present value = $930.676 - $736.0087 = $194.6673
⇒This means that the net present value of the investment is a positive value i.e. $194.6673, so it is a good deal of investment.
cheers i hope this helps.
Answer: The answer is $16,666.6, it is a good deal of investment
Explanation:
Using the formula Present Value (PV) of perpetuity = R/i
n= 1
Where R= The receipt for payment and
i = The rate of interest per compounding period
Since n = 10, i = 6% (6 ÷ 100) = 0.06
i = 0.06 ÷ 10
= 0.006
Using the value in the formula we get
PV of perpetuity = 100 ÷ 0.006
= $16,666.6
It is a good deal of investment
Municipal short-term notes are used for: (A) Interim financing (B) Permanent financing (C) Long-term financing (D) Project financing
Answer: (A) Interim financing
Explanation:
Municipal short notes are also known as short term debt securities which are issued in order to raise finances for daily activities or specialised projects. They are issued by local or State government and are not taxable even at federal level. Examples includes RANS TANS, used for interim or temporary sources of finances.
Municipal short-term notes are used for interim financing to support temporary funding needs for cities and townships during project preparation or construction, not for long-term finance which is typically sourced through the issuance of various types of bonds.
Explanation:Municipal short-term notes are predominantly used for interim financing. This type of financing is a temporary solution that allows cities and townships to manage their finances while they are preparing for or constructing projects such as new infrastructure, a school, or a sewer treatment plant. Unlike capital markets that are used for the raising of long-term finance, municipal short-term notes are not intended for investments that take several years to provide a return or to repay the money back. Instead, they have maturities that are typically less than one year, such as 1-month, 3-months, 6-months, or up to 1-year durations.
Municipal bonds, another type of borrowing for local governments, are meant to finance both discretionary and non-discretionary large-scale projects. Voters may be involved in bond elections for discretionary items, clearly distinguishing it from short-term interim financing. For the development of long-term infrastructure or permanent financing needs, local governments issue these bonds, agreeing to pay back the borrowed amount with interest over an extended time period.