Debt Book Equity Market Equity Operating Income Interest Expense Firm A 500 300 400 100 50 Firm B 80 35 40 8 7 1. What is the market debt-to-equity ratio of each firm? 2. What is the book debt-to-equity ratio of each firm? 3. What is the interest coverage ratio of each firm? 4. Which firm will have more difficulty meeting its debt obligations?

Answers

Answer 1

Answer:

Data for Question

Debt  Book Equity  Market Equity  Operating Income  Interest Expense

Firm A

500       300                  400                       100                          50

Firm B

80          35                    40                           8                             7

1.

Market debt-to-equity ratio = Debt of Firm / Market Equity

Firm A = 500 /400 = 1.25

Firm B = 80 / 40 = 2

2.

Book debt-to-equity ratio = Debt of Firm / Book Equity

Firm A = 500 /300 = 1.67

Firm B = 80 / 35 = 2.29

3.

Interest coverage ratio = Operating Income / Interest Expense

Firm A = 100 /50 = 2

Firm B = 8 / 7 = 1.14

4.

Firm B will have more difficulty meeting its debt obligations because it has higher debt equity ratio and lower interest coverage ratio than Firm A.


Related Questions

A manager who allows employees to make the decisions necessary to face a rapidly changing environment promotes a culture, which emphasizes an internal focus on the participation of employees to adapt rapidly to change.
True or False?

Answers

Explanation:

Yes, the answer is in fact true

George Kyparisis makes bowling balls in his Miami plant. With recent increases in his​ costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a​ 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this​ year: Last Year Now Cost Per Input UnitUnits Produced 1,000 1,000 Labor (hours) 280 255 $12Resin (pounds) 48 43 $5Capital Invested ($)9,000 10,000 1%Energy (BTU) 2,900 2,750 $0.50The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator = ___%?

Answers

Answer:

7.313%

Explanation:

In the problem above, the total cost for last year production is equivalent to the addition of labor cost, energy cost, capital cost, and material cost. Thus,

Total cost (last year) = (300*12) + (3000*0.6) + (9000*0.02) + (48*6) = 3600 + 1800 + 180 + 288 = 5868.

Last year productivity = unit produced/total cost = 1000/5868 = 0.17042

Total cost (this year) = (275*12) + (2850*0.60) + (10000*0.02) + (43*6) = 3300 + 1710 + 200 + 258 = 5468

This year productivity = 1000/5468 = 0.18288

%change in productivity = [(0.18288 - 0.17042)/0.17042]*100% = 7.313%

The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator is 7.313%

The calculation is as follows;

 

Total cost (last year) is

= (300 × 12) + (3000 × 0.6) + (9000 × 0.02) + (48 × 6)

= 3600 + 1800 + 180 + 288

= 5868.

Now

Last year productivity = unit produced ÷ total cost

= 1000 ÷ 5868

= 0.17042

Now

Total cost (this year) = (275 ×12) + (2850 ×0.60) + (10000 × 0.02) + (43 × 6)

= 3300 + 1710 + 200 + 258

= 5468

Now  

This year productivity = 1000  ÷ 5468

= 0.18288

Now  

%change in productivity = [(0.18288 - 0.17042) ÷ 0.17042]

= 7.313%

Learn more: https://brainly.com/question/537797?referrer=searchResults

A 5-year corporate bond yields 9.70%. A 5-year municipal bond of equal risk yields 6.5%. Assume that the state tax rate is zero. At what federal tax rate are you indifferent between the two bonds?a. 25.40%
b. 29.03%
c. 32.99%
d. 33.98%
e. 27.38%

Answers

Answer:

c. 32.99%

Explanation:

Risk yield = bond yield*(1 - Federal tax rate)

    6.50% = 9.70%*(1 - Federal tax rate)

1 - Federal tax rate = 6.50%/9.70%

Federal tax rate = 1 - 6.50%/9.70%

                           = 32.99%

Therefore, The federal tax rate that you are indifferent between the two bonds is 32.99%

Final answer:

At a federal tax rate of 32.99%, you would be indifferent between a 5-year corporate bond yielding 9.70% and a 5-year municipal bond yielding 6.5%, since this is the tax rate that makes the after-tax yield of the corporate bond equal to the tax-free yield of the municipal bond.

Explanation:

To determine at what federal tax rate you would be indifferent between a 5-year corporate bond yielding 9.70% and a 5-year municipal bond yielding 6.5%, we need to calculate the tax equivalent yield of the municipal bond. This can be found using the formula:

Tax Equivalent Yield = Municipal Bond Yield / (1 - Federal Tax Rate)

Since municipal bond interest is federally tax-free, we want to find the federal tax rate at which the after-tax yield of the corporate bond is equal to the tax-free yield of the municipal bond. Setting the corporate bond's after-tax yield to be equal to the municipal bond's yield and solving for the tax rate yields:

6.5% = 9.70% * (1 - Federal Tax Rate)

Solving for the federal tax rate gives:

Federal Tax Rate = (9.70% - 6.5%) / 9.70%

Calculating the above expression, we get:
Federal Tax Rate = 32.99%

So at a federal tax rate of 32.99%, you would be indifferent between the 5-year corporate bond and the 5-year municipal bond.

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.)

Answers

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.

The last stage of Monsanto’s commercialization path involved Select one: a. sustainability as a corporate goal b. promises of further innovations c. competition from DuPont d. government restrictions

Answers

Answer:

The correct answer is  c. competition from DuPont

Explanation:

"Cary’s Carpet Cleaning, Inc. purchased $10,000 of carpet cleaning equipment, paying $2,000 cash and giving an informal promise to pay $8,000 at the end of the month. On April 30, Cary’s Carpeting Cleaning pays $8,000 to the equipment supplier."Prepare the appropriate journal entry for the payment on April 30.

Answers

Answer:

Carpet Cleaning, Inc. purchased $10,000 of carpet cleaning equipment.

Cash paid = $2,000

Giving an informal promise to pay at the end of the month = $8,000

The journal entry is as follows:

On April 30,

Accounts payable A/c Dr. $8,000

       To cash A/c                             $8,000

(To record the payment for the equipment on April 30.)

Fixed Costs,or overhead,are expenses that are the same no matter how much product you sell. Identify the fixed costs for your cafe, estimate the monthly amount for each, and calculate the monthly total.

Answers

Answer:

Total cost = $14,720 per month.

Explanation:

There is a kiosk café near my house that runs for 40 hours a week and its fixed cost comprises of basically of rent and labour, it employs a Barista, a baker and a manager. Below is what the total fixed cost looks like

Rent = $8000 Per month

Labour (barista$8, baker$8 and manager$14 all per hour) = $6720(assuming a 160 working hours per month.

Therefore, the overhead cost is $14,720 per month.

Fixed costs for the cafe include rent, insurance, salaries, equipment leases, and utilities. Estimating these monthly expenses helps determine the business's stable operational costs, vital for financial planning.

In your cafe, fixed costs typically remain constant regardless of sales volume. Common fixed costs include rent or lease payments, insurance premiums, salaries of salaried employees, equipment leases, and utilities like internet and phone services.

To estimate the monthly amounts, tally up these expenses from your records or contracts. For instance, if your rent is $2,000, insurance is $300, and utilities cost $500 per month, the total fixed costs would be $2,800 monthly. This calculation helps you understand your baseline operational expenses, allowing you to plan your budget and pricing strategies effectively.

For more questions on Fixed costs

https://brainly.com/question/32973182

#SPJ3

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?

Answers

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

An increase in the foreign demand for U.S. wheat, combined with improved technology in U.S. wheat production, would cause the domestic equilibrium price of wheat to _________ and the equilibrium quantity to _________.

Answers

Answer:

An increase in the foreign demand for U.S. wheat, combined with improved technology in U.S. wheat production, would cause the domestic equilibrium price of wheat to remain unchanged (intermediate) and the equilibrium quantity to increase.

Explanation:

It is worthy of note that as the foreign demand for U.S wheat increases, there was a combined improvement in the technology used in the U.S wheat production. Hence it can be stated that as demand from foreign sources increased, the supply also increased to mop up the effect of this increase in demand, as a result, the domestic equilibrium price remains relatively unchanged. If the production rate had not increased along with demand, there would have been more demand than supply thus, the price of wheat would have increased. On the other hand, the equilibrium quantity of wheat increased due to the improvement in production technology.

Final answer:

An increase in foreign demand for U.S. wheat combined with improved technology in wheat production will likely lead to higher equilibrium quantity. The effect on the domestic equilibrium price of wheat can be ambiguous, as it depends on the relative magnitudes of demand increase and supply increase.

Explanation:

An increase in the foreign demand for U.S. wheat coupled with improved technology in wheat production affects the domestic equilibrium for wheat. Higher foreign demand would increase U.S. wheat exports, leading to a potential increase in the domestic equilibrium price of wheat because there's less supply available for domestic consumers. However, improved production technology increases supply which could mitigate this price increase and lead to a lower equilibrium price than without the technology improvement. As a result, the equilibrium quantity of wheat would increase due to the combined effect of increased foreign demand and a larger supply thanks to the improved technology.

If the U.S exported more to Mexico due to increased demand there, at the same time as U.S farmers are producing more efficiently, we would see conflicting pressures on the U.S. domestic price. Increased exports could raise prices, but higher efficiency could reduce them. Ultimately, the net effect on price could go either way depending on the relative magnitudes of demand increase and supply increase. The equilibrium quantity, on the other hand, is likely to increase, as the higher foreign demand coupled with greater production capacity results in more wheat being sold overall.

Diaz Company owns a milling machine that cost $125,100 and has accumulated depreciation of $93,400. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent situations.

The machine needed extensive repairs, and it was not worth repairing. Diaz disposed of the machine, receiving nothing in return.
Diaz sold the machine for $17,000 cash.
Diaz sold the machine for $31,700 cash.
Diaz sold the machine for $40,500 cash.

Answers

Answer:

Diaz sold the machine for $17,000 cash.

                                                 Dr.                Cr.

Cash                                         $17,000

Accumulated Depreciation     $93,400

Loss on Sale                             $14,700

Machinery (Asset)                                      $125,100

Diaz sold the machine for $31,700 cash.

                                                 Dr.                Cr.

Cash                                         $31,700

Accumulated Depreciation     $93,400

Machinery (Asset)                                      $125,100

Diaz sold the machine for $40,500 cash.

                                                 Dr.                Cr.

Cash                                         $40,500

Accumulated Depreciation     $93,400

Gain on sale                                               $8,800

Machinery (Asset)                                      $125,100

Explanation:

Diaz sold the machine for $17,000 cash.

Loss on Sale = 125,100 - 93,400 - 17,000 = -14,700

Diaz sold the machine for $31,700 cash.

Loss on Sale = 125,100 - 93,400 - 31,700 = 0

Diaz sold the machine for $40,500 cash.

Loss on Sale = 125,100 - 93,400 - 40,500 = 88,00

How many months will it take to pay off a $470 debt, with monthly payments of $20 at the end of each month, if the annual interest rate is 15%, compounded monthly?

Answers

Answer:

28 month (approx)

Explanation:

Given

Present value = $470

Monthly Payment = $20

Interest Rate = 15% annual = 15% / 12 = 1.25% monthly

                                                             =0.0125

[tex]Present Value = PMT [\frac{1-(1+i)^{-n}}{i}] \\470 = 20 [\frac{1-(1+0.0125)^{-n}}{0.0125}]\\470/20 = [\frac{1-(1+0.0125)^{-n}}{0.0125}]\\23.5 \times 0.0125 =1-(1+0.0125)^{-n}\\1-0.29375= (1+0.0125)^{-n}\\0.70625 = (1+0.0125)^{-n}\\0.70625 =(1.0125)^{-n}\\0.70625= \frac{1}{(1.0125)^{n}}\\(1.0125)^{n}=1.4159292\\n=28(approx)[/tex]

When Target Corporation attempted to expand into the Canadian market in 2013 to establish itself as an international firm, it was adopting a stance toward the global retail environment.

Answers

Answer:

proactive

Explanation:

The Target Corporation tried to be proactive in nature instead of just relying on the response to an unsuitable market conditions. The company created a series of proactive measures for the global retail environment. This helped the company to be able to respond to the change in the conditions of the Canadian market due to change in demand and supply.

Relevance is a critical criterion in formulating a value claim for a positioning statement. The makers of Cialis, an erectile dysfunction (ED) drug, are considering a value claim that it "enhances intimacy and relationship." To assess the relevance of this claim, Cialis must determine if the claim: a. Is unique among value claims of competitor brands. b. Aligns with the specific needs of the target market. c. Can be endorsed by an authority figure or a celebrity. d. Is supportable by scientific evidence.

Answers

Answer:

Option D

Explanation:

Claim becomes valid and relevant if it has support of a scientific evidence.

Which of the following is part of an economic​ model? A. norms B. opinions C. preferences of economic agents D. data

Answers

Answer:

The correct answer is letter "D": data.

Explanation:

Economic models are abstractions that aim to simplify real-world economic events. Economists base their hypothesis in data collected that allows thinking certain patterns are being repeated and are likely to let verify trends by which those events can be studied and dealt with if occurred again.

In the context of strategic approaches to international staffing, which of the following is TRUE of the ethnocentric policy? a. This policy primarily aims at easing transfer of policies from subsidiary to headquarters. b. This policy encourages host-country nationals to staff key positions. c. This policy primarily encourages third-country nationals to fill key positions. d. This policy supports the view that managers from headquarters should staff key positions.

Answers

Answer:

d. This policy supports the view that managers from headquarters should staff key positions.

Explanation:

ethnocentric policy  refers to employing managers  based at headquarters

of the multinational company for heading the subsidiary units at different countries  instead of employing local managers at local level units.

Brief Exercise 4-08 In 2020, Kingbird Corporation reported net income of $1,171,600. It declared and paid preferred stock dividends of $265,400. During 2020, Kingbird had a weighted average of 209,100 common shares outstanding. Compute Kingbird 2020 earnings per share. (Round earnings per share to 2 decimal places, e.g. 1.48.) Kingbird 2020 earnings per share $enter Kingbird's 2017 earnings per share in dollars rounded to 2 decimal places

Answers

Answer:

$4.33 per share

Explanation:

Given that,

Net income = $1,171,600

Preferred stock dividends paid = $265,400

weighted average of common shares outstanding = 209,100

Therefore,

Earnings per share:

= (Net income - Preferred stock dividends paid) ÷ weighted average of common shares o/s

= ($1,171,600 - $265,400) ÷ 209,100

= $906,200 ÷ 209,100

= $4.33 per share

Hence, the Kingbird 2020 earnings per share is $4.33.

1. ABC Corporation acquires all of the assets and liabilities of XYZ Company, at a price that is significantly higher than the fair value of the identifiable net assets acquired. Four months after the acquisition, a fire destroys some of XYZ's property. How does ABC report this? A. ABC will report a loss on property in income. B. ABC will report more goodwill from the acquisition. C. ABC will not report this event. D. ABC will report less goodwill from the acquisition.

Answers

Answer:

A. ABC will report a loss on property in income

Explanation:

The fire made a physical impact on the assets of XYZ

The entry to report the fire in accounting will acknowledge the physical losses in XYZ assets.

Later, at year-end will check the goodwill for impartment and check if the outgoing busines s of XYZ still has that intangible value attached to it or not and, amortize the required amount.

Final answer:

ABC Corporation must report the loss from the fire as a loss on property in income. The loss does not directly impact previously recorded goodwill unless an impairment of the goodwill is specifically attributable to the event.

Explanation:

When ABC Corporation acquires all of the assets and liabilities of XYZ Company for a price higher than the fair value of the identifiable net assets acquired, this creates goodwill on ABC's balance sheet. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets. If, following the acquisition, a fire destroys some of XYZ's property, ABC Corporation must report the event as a loss. Therefore, the correct answer is A. ABC will report a loss on property in income.

This loss acknowledgement would appear as a decrease in the value of the property on ABC's balance sheet, and the company would recognize a loss on the income statement. The loss from the fire does not affect the amount of goodwill recorded earlier unless it is determined that the goodwill itself has been impaired as a direct result of the fire. If goodwill is found to be impaired, it may lead to an impairment charge, which would also be reported on the income statement, and the value of goodwill on the balance sheet would decrease accordingly.

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

Answers

Answer:

The answer is true

Explanation:

The cost of acquiring  information about the wealth implications of government activities is high

The following information is available for the preparation of the government-wide financial statements for the City of Southern Springs as of April 30, 2017:

Cash and cash equivalents, governmental activities $3,640,000
Cash and cash equivalents, business-type activities 832,000
Receivables, governmental activities 615,000
Receivables, business-type activities 1,259,000
Inventories, business-type activities 492,000
Capital assets, net, governmental activities 10,030,000
Capital assets, net, business-type activities 10,740,000
Accounts payable, governmental activities 615,000
Accounts payable, business-type activities 624,000
Noncurrent liabilities, governmental activities 5,160,000
Noncurrent liabilities, business-type activities 3,039,000
Net position, net investment in capital assets, governmental activities 4,870,000
Net position, net investment in capital assets, business-type activities 7,701,000
Net position, restricted for debt service, governmental activities 714,000
Net position, restricted for debt service, business-type activities 211,000

From the above information, prepare a Statement of Net Position for the City of Southern Springs as of April 30, 2017.

Answers

Final answer:

The Statement of Net Position for the City of Southern Springs includes cash and cash equivalents, receivables, capital assets, accounts payable, noncurrent liabilities, and net position for both governmental and business-type activities.

Explanation:

Statement of Net Position for the City of Southern Springs as of April 30, 2017

Governmental Activities:

Cash and cash equivalents: $3,640,000Receivables: $615,000Capital assets, net: $10,030,000Accounts payable: $615,000Noncurrent liabilities: $5,160,000Net position, net investment in capital assets: $4,870,000Net position, restricted for debt service: $714,000

Business-Type Activities:

Cash and cash equivalents: $832,000Receivables: $1,259,000Inventories: $492,000Capital assets, net: $10,740,000Accounts payable: $624,000Noncurrent liabilities: $3,039,000Net position, net investment in capital assets: $7,701,000Net position, restricted for debt service: $211,000

Learn more about Statement of Net Position here:

https://brainly.com/question/32370618

#SPJ12

Final answer:

The T-account balance sheet for the bank lists reserves, government bonds, and loans as assets, totaling $620. The only liability listed is deposits at $400. The bank's net worth, calculated as total assets minus total liabilities, is $220.

Explanation:Bank's T-Account Balance Sheet

To create a T-account balance sheet for the bank, we list assets on the left side and liabilities plus equity on the right side:

Assets

Reserves: $50Government Bonds: $70Loans: $500

Liabilities and Equity

Deposits: $400

The net worth or equity of the bank is the difference between the total assets and total liabilities. In this case:

Total Assets = $50 (reserves) + $70 (bonds) + $500 (loans) = $620

Total Liabilities = $400 (deposits)

Net Worth (Equity) = Total Assets - Total Liabilities = $620 - $400 = $220

Therefore, the bank's net worth is $220.

Learn more about T-Account Balance Sheet here:

https://brainly.com/question/34197312

#SPJ3

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

Answers

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

The following quote best describes ________. "The marvels of modern technology include the development of a soda can which, when discarded, will last forever, and a car, which when properly cared for, will rust out in two or three years."
A) planned obsolescence
B) product failure
C) deceptive promotions
D) deceptive packaging
E) excessive markups

Answers

Answer:

E)excessive markups

Explanation:

the car must was the must to the book

Final answer:

The quote describes planned obsolescence, a business strategy where products are designed to become obsolete quickly, forcing consumers to buy new ones. This practice is common in electronics and fashion, highlighting issues of environmental waste and economic consumption.

Explanation:

The quote “The marvels of modern technology include the development of a soda can which, when discarded, will last forever, and a car, which when properly cared for, will rust out in two or three years” best describes planned obsolescence. Planned obsolescence is a strategy used by companies to create products that are designed to become obsolete or unusable after a certain period, forcing consumers to purchase new ones. This concept is evident in various sectors, from electronics where smartphones and laptops are made with non-upgradeable components or batteries, to the fashion industry with goods like the nylon stockings that wear out quickly. On a wider scale, this practice has significant environmental and economic implications, encouraging a cycle of continuous consumption and waste.

Consider the market for plane tickets to Hawaii. A bad winter in the mainland United States increases demand for tropical vacations, shifting the demand curve to the right. The supply curve stays constant. Total surplus will:

Answers

Answer:

Increase

Explanation:

Consumer surplus means the difference between the highest price a consumer is willing to pay and the actual market price of a product

Producer surplus means the difference between the market price and the lowest price a producer is willing to take for his product.

The addition of the two gives total surplus which is also known as economic surplus.

In economics, market price and quantity of a good are obtained when supply and demand curves intersect. The space before the intersection of the two curves is where the consumer is ready to pay higher than the price which suppliers is ready to a given quantity the good. There is therefore surplus for both of them at the market price.

If the demand curve shifts to the right while the supply curve remains constant, the market price will rise and this will lead to increase both consumer and producer surplus increase. By implication, total surplus will rise since it is the addition of both consumer and producer surplus.

Therefore, total surplus will increase if a bad winter in the mainland United States increases demand for tropical vacations, which shifts the demand curve to the right while the supply curve stays constant.

I wish you the best.

Answer:

increase because both consumer and producer surplus increase

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?

Answers

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

What are some events that have significantly influenced and changed the sport industry? Please explain.

Answers

Answer: WORLD WAR 1 AND II

BICYCLE CRAZE

ENDORSING.

Explanation:World war 1 is also known as the FIRST WORLD WAR it took place between 1914-1918, it made sports Competition popular among soldiers such as Football, Athletics etc the love of sports led to the creation of leagues among soldiers and war criminals. World war II significantly affected the sports as.moat of the plays were called-off,sports men were recruited to fight etc.

The bicycle craze had a great significant in sports as the urge for bicycle rasing started immediately after the invention of bicycles in the 1800s.

ENDORSING have impacted sports greatly as many multinationals have been involved in endorsing spots men and women,this has helped to increase the urge for sporting activities.

Final answer:

The sport industry has been significantly influenced by the establishment of professional leagues, worldwide sporting events like the Olympic games, and advancements in technology such as broadcast media and digital platforms.

Explanation:

There are several key events that have significantly influenced the sport industry. The establishment of professional leagues like the NFL, NBA, and FIFA strongly altered the business structure of sports, prompting a shift from an amateur outlook to a professional one. Furthermore, the inception of worldwide sport events such as the Olympic games has a profound impact on international unity and diversity, economically and culturally. Lastly, advancements in technology have played an indispensable role in the evolution of sports, enhanced performances, created new sports, and revolutionized the experience for spectators with broadcast media and digital platforms.

Learn more about Impact on Sport Industry here:

https://brainly.com/question/33820218

#SPJ3

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?

Answers

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...

Suppose that towns collect resources from their surroundings. Then, through trade, they attempt to obtain other desirable items. Mortarville, an urban town that specializes in brick and ore, wants wood to build roads so that it can expand and connect to other major cities. Mortarville has a willingness to pay $ 50 $50 for wood, since wood is hard for them to obtain. Mayflair also needs wood to build grain silos for their wheat harvests. Mayflair is willing to pay $ 45 $45 for wood. Timber, the only foresting company, sets the price of wood at $ 60 $60 . The change in total surplus that arises due to trades between TIMBER and and the tows is:________.
-less than zero
-equal to zero
-greater than zero

Answers

Answer:

-equal to zero

Explanation:

As the price for wood is above the demand is willing to pay there is no trade.

Either some of the participants will increase their demand and accept the price of 60 dollars; look for another supplier or look into producing for themselves

Also, Timber could lower the prce of wood so trade occurs.

Final answer:

The change in total surplus from the trades between Timber, Mortarville, and Mayflair is negative because Timber's price for wood exceeds both towns' willingness to pay, discouraging trade and decreasing the total surplus.

Explanation:

The change in total surplus from the trades between Timber, Mortarville, and Mayflair is less than zero. This is due to the price Timber is charging for the wood it's higher than the willingness to pay of both towns (Mortarville is willing to pay $50 and Mayflar $45 while Timber is charging $60).

None of the towns will make a trade because the cost exceeds their willingness to pay leading to a decrease or negative change in total surplus. This is an example of how supply and demand can influence the market price and whether trades occur in an economy. The surplus is considered the benefit obtained from trading, but because the price is set too high and no trades are happening, there is no benefit, thus the total surplus is negative.

Learn more about Total Surplus here:

https://brainly.com/question/36205877

#SPJ3

All of the following are ethical sources of data for external analysis EXCEPT: a. trade shows. b. a competitor's help-wanted advertisements. c. a competitor's confidential memos. d. a competitor's annual reports.

Answers

Answer:

c. a competitor's confidential memos.

Explanation:

Using a competitor's confidential memos for external analysis is not an ethical practice. To use confidential internal memos is unethical and it might be illegal in some situations because you might use an illegal and unethical way to obtain that information. All the other options Trade shows, Advertisements and annual report are the publicized data which could be used. Competitive Intelligence is a practice in the market to to gather competitor's data by using all the public information available which is legal and ethical too.

A competitor's confidential memos are not an ethical source of data for external analysis, unlike trade shows, help-wanted ads, and annual reports, which are publicly available and ethical to use.

The question asks which of the following is not an ethical source of data for external analysis: a. trade shows, b. a competitor's help-wanted advertisements, c. a competitor's confidential memos, d. a competitor's annual reports. The ethical sourcing of data is critical for maintaining professional integrity and adhering to legal standards in business practices. Ethical sources include publicly available information such as data from trade shows, help-wanted advertisements, and annual reports. These sources are openly accessible to the public and do not infringe upon privacy or proprietary rights.

Conversely, a competitor's confidential memos are not an ethical source of data for external analysis. These documents are considered proprietary and confidential, accessing them without permission constitutes a breach of privacy and can result in legal consequences as well as damage to professional relationships and reputation.

Therefore, the correct answer to the question is c. a competitor's confidential memos.

Which of the following is not an example of a cost and its related cost driver? Cost Cost Driver A. Rent Square feet B. Transportation Miles driven C. Direct labor hours Indirect labor D. Utilities Machine hours

Answers

Option C

Direct labor hours ; Indirect labor is not an example of a cost and its related cost driver

Explanation:

A cost driver triggers a variation in the price of the activity. The idea is everywhere ordinarily employed to allocate aloft prices to the abundance of built assemblies. It can further be related to activity-based costing inquiry to ascertain the circumstances of expenses, which can be done to depreciate overhead prices.

In unusual accounting systems, cost drivers are practically inapplicable in determining the enrichment, Quantity of set-ups, Amount of machine-hours, Amount of labor hours, Abundance of orders bound and uttered.

Find the amount to which $600 will grow under each of these conditions: 12% compounded annually for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 12% compounded semiannually for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 12% compounded quarterly for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 12% compounded monthly for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 12% compounded daily for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ Why does the observed pattern of FVs occur

Answers

Answer:

1. = $1,485.58  

2. = $1,524.21  

3. = $1,545.05

4. = $1,559.56

Explanation:

The amount the $600 will grow can be calculated using the following compounding formula:

A = P × [1 + (r ÷ n)]^nt ............................................. (1)

where:  

P = Initial or original amount = $600

A = new amount

r = interest rate = 12% = 0.12  

n = compounding frequency  

t = overall length of period the interest is applied

Equation can then be applied as follows:

1. For 12% compounded annually for 8 years

P = Initial or original amount = $600

r = interest rate = 12% = 0.12  

n = compounding frequency = annually = 1

t = overall length of period the interest is applied  = 8

Therefore,

A = $600 × [1 + (0.12 ÷ 1)]^(1 × 8)

   = $600 × [1 + (0.12)]^8

   = $600 × (1.12)^8

    = $600 ×  2.47596317629481  

    = $1,485.58  

2. For $12% compounded semiannually for 8 years.

P = Initial or original amount = $600

r = interest rate = 12% = 0.12  

n = compounding frequency = semiannually = 2

t = overall length of period the interest is applied  = 8

Therefore,

A = $600 × [1 + (0.12 ÷ 2)]^(2 × 8)

   = $600 × [1 + (0.06)]^16

   = $600 × (1.06)^16

    = $600 × 2.54035168468567  

   = $1,524.21  

3. For $12% compounded semiannually for 8 years.

P = Initial or original amount = $600

r = interest rate = 12% = 0.12  

n = compounding frequency = quarterly = 4

t = overall length of period the interest is applied  = 8

Therefore,

A = $600 × [1 + (0.12 ÷ 4)]^(4 × 8)

   = $600 × [1 + (0.03)]^32

   = $600 × (1.03)^32

    = $600 × 2.57508275568511  

   = $1,545.05  

4. For $12% compounded monthly for 8 years.

P = Initial or original amount = $600

r = interest rate = 12% = 0.12  

n = compounding frequency = quarterly = 12

t = overall length of period the interest is applied  = 8

Therefore,

A = $600 × [1 + (0.12 ÷ 12)]^(12 × 8)

   = $600 × [1 + (0.01)]^96

   = $600 × (1.01)^96

    = $600 × 2.59927292555939

   = $1,559.56  

The observed pattern of FVs occur because of the different compounding frequency.

All the best.

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at

Answers

Answer:

a market segment profile.

Explanation:

A market segment profile -

It refers to the detailed information and analysis of the market on the wider range of aspects , is referred to as a market segment profile .

It helps of understand the factors in a better manner , which can be advantageous for the company or organisation .

The information is about the brand preference , geographical aspects , benefits of the products etc,.

Hence , from the given scenario of the question,

The correct term is a market segment profile .

Other Questions
ireally need helpMost substances _______ in temperature and _______ when heat is added to them. A. decrease; contract B. increase; expand C. increase; contract D. decrease; expand factors of 48 that add to equal 26 Consider the two different numbers 327b (327 is base b) and 327b 1 (327 in base b 1), where b is a positive integer 8 or greater. If the difference between these two numbers is 89, what is the value of b Jorge Ortega has been using a 10 percent capacity cushion, servicing 60 customers an hour. There is a good deal of customercontact, and customer service has been poor due to random fluctuations in demand. If he increases his capacity cushion to20%, what will be the new capacity requirement?A. 60B. 75C. 80D. 67 Eileen is about to start a research study, and has chosen to use an experimental method. Of the choices listed below, which step should come first? A. Assign participants randomly to an experimental or control group B. Give the experimental group some type of experience that might change their behavior C. Observe the possible effects of the experimental condition D. Publish the results. Today is 4 jan and day is monday.what day will be on 23 jan. With step by step solve the proportional equation 3/r = 5/r+3 Conjugate acid/base problems: a. What are the conjugate bases of the molecules: i. C6H5OH? ii. CH3-SH iii. CH3-CH2-CO2H b. What are the conjugate acids of the molecules: i. CH3(CH2)-CO2- ii. CH3(CH2)-NH2 iii. Ring at right Researchers tested a meteorite for organic molecules containing 13C and 15N, which are carbon and nitrogen atoms with one extra neutron. However, a skeptic questions whether these "heavy" carbon and nitrogen isotopes would readily bond to make organic molecules such as amino acids and nitrogenous bases. Would extra neutrons affect the bonding of heavy carbon and nitrogen atoms?1.Yes, extra neutrons would make carbon and nitrogen more likely to bond.2.No, because only electrons are involved in bonding.3.No, because the number of protons remains the same.4.Yes. Atoms with extra neutrons must also have extra electrons, which would affect bonding. Which is one of the biggest contributors to stress? 5 Mi familia Listen to the following description. Then read the statements in your lab manual and decide whether they are cierto or falso. Hola! Me llamo Francisco Acosta y soy puertorriqueo. Tengo veinte aos y asisto a la Universidad de Nueva York donde estudio economa. Mi familia vive en San Juan, la capital de Puerto Rico. Mi padre, Carlos, tiene cuarenta y cinco aos. Es ingeniero. Mi madre, Dolores, ensea ingls en un instituto de idiomas. Mi hermana Maricarmen asiste a la escuela secundaria. Tiene diecisis aos. (/) What is the place value of the underlined number 4,382 3. Mario is planning to conduct an experiment to determine which disinfectant is best for killing bacteria that are often found in kitchens.Which of the following would be the most logical dependent variable for his experiment?A. type of disinfectantB. source of bacteriaC. amount of disinfectantD. number of bacteria that survived using the disinfectant a) The Mayans and Aztecs made notable advances in astronomy and mathematics. b) The Aztecs and Mayans learned to read and write under Spanish rule. c) The Aztecs and Mayans had no concept of the wheel. d) The Incas built many miles of paved roads across their empire. A researcher administers a test of friendliness to a sample of ghosts on Halloween night. The researcher then administers the same test to the same ghosts on Halloween night one year later, and computes the correlation between this year's scores and last year's scores. This correlation coefficient is a measure of____________.a. internal reliability b. test-retest reliabilityc. faceless validityd. predictive validity "Kim wants to run for the U.S. Senate. Kim experimented with drugs in the 1960s, but has not used any drugs in more than 45 years. Kim decides the public does not need this information. What communication behavior is Kim engaging in? By using ________, a writer avoids words and phrases that unfairly and even unethically categorize or stigmatize people in ways related to gender, race, ethnicity, age, disability, or other personal characteristics. describe the error in using the percent equation to answer the equation.30 is 60% of what number is? Please help! Give the answer and how you got it 10 point + brainlyiest= 1 big thank uThe diagram below shows the structure of an animal cell.The image of an animal cell is shown with some organelles labeled numerically from 1 to 6. The outer double layer boundary of the cell is labeled 1. A stacked disc like structure is labeled 2. A broad rod shaped structure with an irregular shape inside it is labeled 3. The entire plain section that forms the background of the cell and is within the outer boundary is labeled 4. A small circular shape within the large circular shape is labeled 5. The large central circular shape is labeled 6.Which number label represents the mitochondria? 1 2 3 6