Answer:
2.27% ; 61.54%
Explanation:
Given that,
Sales/Total assets = 2.2x
Return on assets (ROA) = 5%
Return on equity (ROE) = 13%
Therefore,
Return on assets = Profit margin × Assets turnover
0.05 = Profit margin × 2.2
Profit margin = 0.05 ÷ 2.2
Profit margin = 0.0227 or 2.27%
Percent of total assets is from equity:
= Return on assets ÷ Return on equity
= 0.05 ÷ 0.13
= 0.3846 or 38.46%
Hence, the debt is as follows:
Debt = Assets - equity
= 1 - 0.3846
= 0.6154 or 61.54%
What is a great example of using cluster analysis in business to create target-marketing strategies?
Answer:
The correct answer is letter "C": zip code segmentation.
Explanation:
Target-marketing strategies are achieved by segmenting the company's overall market. Segmentation allows firms to classify their clients typically by age, gender, and income but some other features such as location can be also implemented. Once the target population is spotted, organizations can choose a plan prompt advertising most likely to impact their behavior.
Thus, entities can use zip segmentation to identify customers in a specific region and study their consumption patterns to try to identify profitable opportunities.
Great Example of Using Cluster Analysis in Target-Marketing Strategies
A great example of using cluster analysis in business is to segment customers based on purchasing behavior to create targeted marketing strategies. This approach helps businesses to identify different customer groups with unique preferences and tailor marketing efforts accordingly. For instance, a retail company might use cluster analysis to group customers who frequently buy sports equipment and develop specific promotions for this segment. Cluster analysis enables more efficient and effective marketing campaigns by addressing the specific needs and interests of diverse customer segments.
Detailed Explanation of Cluster Analysis in Business
In business, cluster analysis is a powerful tool for creating target-marketing strategies. By segmenting the customer base into distinct groups based on their purchasing behavior, demographics, or preferences, companies can develop more personalized and effective marketing campaigns. Here are detailed steps and benefits of using cluster analysis in business:
Data Collection: Gather comprehensive customer data, including purchase history, demographics, and online behavior.Data Analysis: Use statistical software to analyze the data and identify patterns or similarities among customers.Segment Creation: Group customers into clusters that share common characteristics.Targeted Strategies: Develop customized marketing strategies for each cluster to address their specific needs and preferences.Performance Monitoring: Continuously monitor the effectiveness of these strategies and adjust them as needed to improve results.
For example, a company might find that one cluster consists of young adults interested in eco-friendly products. The company can then tailor its marketing for this group by emphasizing the sustainability of their products, offering eco-friendly promotions, and engaging with these customers through relevant social media channels.
On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 22,000, $13 par, common shares. The market price of the common stock is $42 on this date Required: 1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split.
Final answer:
To record a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split, specific journal entries are made. For a small stock dividend, Retained Earnings and Common Stock Dividend Distributable are credited and debited respectively. For a large stock dividend, the same accounts are used. For a 2-for-1 stock split, no journal entry is required.
Explanation:
To record the necessary journal entries for a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split, the following journal entries would be made:
Small (10%) Stock Dividend:
Large (100%) Stock Dividend:
Debit: Retained Earnings for the market value of the dividend shares2-for-1 Stock Split:
No journal entry is required for a stock split. The number of shares outstanding would simply be doubled, and the par value per share would be halved.A Restaurant is open only for 25 days in a month. Expenses for the restaurant include raw material for each sandwich at $4.00 per slice, $1,234.00 as monthly rental and $225.00 monthly as insurance. They consider the cost of lost sales as $5.00 per item. They are able to sell any leftover sandwiches for $3. They prepares 200.00 sandwiches and sells them at a rate of $15.00/sandwich. Today there was a party at nearby office so the demand for sandwiches rose to 228.00. How much profit did the restaurant earn today?
Final answer:
The restaurant earned a profit of $2,421.64 today after accounting for increased sandwich sales, loss of sales for the extra sandwiches needed, rent, and insurance costs.
Explanation:
To calculate the profit earned by the restaurant today, we first need to consider the revenue from sandwiches sold on the day of the party at the nearby office. Since the restaurant prepared 200 sandwiches but the increased demand led them to sell 228 sandwiches, they had to cover 28 sandwiches for the lost sales but also earned extra revenue from these additional sales.
The revenue for the sold sandwiches is calculated as the selling price ($15) times the number of sandwiches sold (228), which equals $3,420. Now, we also need to consider the cost of goods sold (COGS), which is the raw material cost per sandwich ($4) times the number of sandwiches prepared (200), amounting to $800. However, because not all 228 sandwiches were available, the restaurant incurred a cost for lost sales for the additional 28 sandwiches which is $5 per sandwich, in total $140.
Because these are the costs and revenues of the restaurant for one day only, we will also divide the monthly rental ($1,234) and monthly insurance ($225) by the days open in a month (25) to find the daily costs that amount to $49.36 for rent and $9 for insurance. Adding these to the daily COGS gives a total daily cost of $998.36.
The profit for the day is then calculated as the revenue minus the total cost: $3,420 (revenue) - $998.36 (total cost) = $2,421.64. So, the restaurant earned a profit of $2,421.64 on the day of the party.
Johnson Inc. has $500,000 in an investment paying 8% annual taxable interest. Each year, the corporation incurs a $3,000 nondeductible cash expense relating to the investment. If Johnson's marginal tax rate is 35%, compute the annual after-tax cash flow.
Answer:
the annual after-cash flow is $23000
Explanation:
see the attached document
Buy machine. The machine could be purchased for $169,000 in cash. All maintenance and insurance costs, which approximate $14,000 per year, would be paid by Kiddy. 2.Lease machine. The machine could be leased for a 10-year period for an annual lease payment of $34,000 with the first payment due immediately. All maintenance and insurance costs will be paid for by the Lollie Corp. and the machine will revert back to Lollie at the end of the 10-year period. Required Assuming that a 8% interest rate properly reflects the time value of money in this situation and that all maintenance and insurance costs are paid at the end of each year, find the present value for the following options. Ignore income tax considerations. Determine which option Kiddy should choose.
Answer:
It is better to use the lease opton as the present worth is lower.
Explanation:
Present value of the lease liability/equipment cost:
[tex]C \times \frac{1-(1+r)^{-time} }{rate}(1+r) = PV\\[/tex]
C -34,000.00
time 10 years
rate 0.08
[tex]-34000 \times \frac{1-(1+0.08)^{-10} }{0.08}(1+0.08) = PV\\[/tex]
PV -$246,394.1890
Purchase option 169,000 cash + PV of maintenance and insurance
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C -14,000.00
time 10
rate 0.08
[tex]14000 \times \frac{1-(1+0.08)^{-10} }{0.08} = PV\\[/tex]
PV -$93,941.1396
-169,000 -93,941.14 = -262.941,14
As the cost for the lease is lower than the purchase option it is better for the firm to use the lease option.
Final answer:
Since the present value of option 1 [tex](\$77,491.45)[/tex] is higher than the present value of option 2[tex](\$15,605.35),[/tex] Kiddy should choose to buy the machine. This decision is based on the present value of the cash flows associated with each option, taking into account the time value of money.
Explanation:
To determine which option Kiddy should choose, we need to calculate the present value (PV) of each option and compare them. We'll use the present value formula for both options:
[tex]\[ PV = \dfrac{PMT}{(1 + r)^n} \][/tex]
Where:
[tex]- \( PV \)[/tex] is the present value
[tex]- \( PMT \)[/tex] is the annual payment
[tex]- \( r \)[/tex] is the interest rate per period (in decimal)
[tex]- \( n \)[/tex] is the number of periods
For option 1 (buy machine):
[tex]- \( PMT = -\$169,000 \)[/tex] (initial investment)
[tex]- \( r = 8\% = 0.08 \)[/tex]
[tex]- \( n = 10 \)[/tex]
For option 2 (lease machine):
[tex]- \( PMT = -\$34,000 \[/tex] (annual lease payment)
[tex]- \( r = 8\% = 0.08 \)[/tex]
[tex]- \( n = 10 \)[/tex]
Now, we can calculate the present value for each option:
For option 1:
[tex]\[ PV_1 = \dfrac{-\$169,000}{(1 + 0.08)^{10}} \][/tex]
[tex]\[ PV_1\approx\$77,491.45 \][/tex]
For option 2:
[tex]\[ PV_2 = \dfrac{-\$34,000}{(1 + 0.08)^{10}} \][/tex]
[tex]\[ PV_2 \approx \$15,605.35 \][/tex]
Since the present value of option 1 [tex](\$77,491.45)[/tex] is higher than the present value of option 2[tex](\$15,605.35),[/tex] Kiddy should choose to buy the machine. This decision is based on the present value of the cash flows associated with each option, taking into account the time value of money.
When TOMS first introduced their shoes, they created a shoe that was extremely simple and cheap to produce. But the firm made a promise that for each pair of shoes a consumer buys, they would give a pair of shoes to someone who needed shoes.
This is what kind of philosophy?
a. internal -personal
b. market
c. social econimic
d. societal
Answer:C. social economic
Explanation:Social economic phylosophy is the kind of phylosophy,that deals or considers the society in making Economic decisions.
Some companies apply this kind of phylosophy as a management Objective to help to better the life of its consumers as it aims to make profits.
The action of TOMS are social economic Business phylosophy,it made cheap shoes and gave free shoe for every purchase,this will reduce the cost of purchasing shoes and make it affordable evn as the company makes profit.
Answer:
The correct answer is letter "C": social economic.
Explanation:
Social economics studies the relationships between society and its economy. It focuses on individuals' and organizations' behavior and how they interact with each other according to their needs and expectations. Part of that interaction implies the contribution of each party towards the other parties' satisfaction (company-consumer relationship).
What is the present value of $12,800 to be received 3 years from today if the discount rate is 5 percent?
Answer:
$11,057.12
Explanation:
We use the present value function that is shown in the spreadsheet which is attached below:
Data Provided in the question are:
Future value = $12,800
Rate of interest = 5%
NPER = 3 years
PMT = $0
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $11,057.12
On the first day of January, Builders Company borrowed $1,000 on a onedashyear note payable bearing interest at 3% per year. The note specifies that principal and interest must be paid in full at the end of the onedashyear period. On June 30, the adjusted trial balance will show Interest Payable of ________.
Answer:
$15
Explanation:
Given that,
Amount borrowed = $1,000
Interest rate = 3 percent
Time period ⇒ January 1 to June 30 = 6 months
On June 30,
Adjusted trial balance will show Interest Payable:
= Amount of money borrowed × Rate of interest × Time period
= $1,000 × 3 percent × (6 months ÷ 12 months)
= $1,000 × 0.03 × 0.5
= $15
This amount of accrued interest upto 30th June will be credited by $40 and has a credit balance of interest payable.
A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account surplus. The imposition of the capital controls will cause _______.
Answer:
A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account surplus. The imposition of the capital controls will cause "desired national saving to fall".
Explanation:
Capital controls are resident status-based initiatives like transaction taxes, other constraints, or outright restrictions that can be used by a nation's government to regulate streams from capital markets to and from the capital account of the country.
It safeguards greatly reducing capital flows although efficiency differs across economies and investment kinds. Capital controls however tend to lower the risk of severe episodes. Capital inflow restrictions minimize the proportion of national loans priced in foreign currency.
Suppose a three period weighted average is being used to forecast demand. Weights for the periods are as follows: 0.1, 0.4 and 0.5. Demand observed in the previous three periods was as follows: 120, 140 and150. What will be the demand forecast for period the next periodt
Answer:
$143
Explanation:
The computation of the demand forecast is shown below:
= Weightage × demand observed + Weightage × demand observed + Weightage × demand observed
= 0.1 × 120 + 0.4 × 140 + 0.5 × 150
= $12 + $56 + $75
= $143
Basically we multiplied the weighatge with its demand observed so that the demand forecast could come
Culture goes deeper than observable behavior. It is a society's shared and socially transmitted ideas, values, and perceptions that are used to make sense of experience and generate behavior and are reflected in that behavior.
True/False
1. "The biggest thing when we talk about personal branding is that it’s a _________" a. Hard thing b. Waiting game c. Process d. Journey 2. What is a key factor of personal branding?a. Spending money on sponsored ads b. Being visible on all social platforms c. Grit d.Consistency
Answer:
1- c. Process.
2- d. Consistency.
Explanation:
A personal brand can be defined as a continuous process of using marketing efforts and developing different factors to increase the perception and reputation of a company, individual, group, institution, etc.
Personal brand management corresponds to a continuous process of action and positioning, so that the target audience that you want to reach through your brand, can get to know you, including the values and the solution of the problems and benefits you have to offer.
This is a process that demands consistency of actions and posture, since the process of consolidating a personal brand is a continuous process that requires a lot of research, knowledge and analysis of trends and market, advertising, presence in the media most used by the public, demonstration of seriousness, quality, benefits, quick response to problems, and several other factors that gradually contribute so that through a consistent process the brand has value and is consolidated in the market.
Personal branding is both a process and a journey, requiring consistency in message presentation across platforms. It involves continuous growth and development, and it's not an instant event, effort and perseverance are essential components.
Explanation:1. When discussing personal branding, it's most accurate to say that it's a process and a journey. It's not an instant event, instead, it involves continuous growth and development.
2. A key factor in personal branding is consistency. While being visible on social platforms and spending money on sponsored ads can be part of your strategy, it's essential to remain consistent in your message and the image you present, irrespective of the platform you're using. This consistency helps to solidify your brand in the minds of your target audience and adds trustworthiness to your brand.
Lastly, personal branding is not a 'waiting game' nor is it necessarily a 'hard thing'. It requires effort, perseverance, a clear understanding of your goals and values, and an adaptable strategy to meet changing circumstances.
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Zoe Corporation has the following information for the month of March: Cost of direct materials used in production$17,811 Direct labor29,363 Factory overhead32,472 Work in process inventory, March 120,353 Work in process inventory, March 3119,710 Finished goods inventory, March 124,290 Finished goods inventory, March 3128,183
Answer:
The question is not complete as requirement is not given.
However,in supply of information like this, determination of cost of sale is generally assumed to be the requirement.
The cost of sale for Zoe corporation for March is $76,396
Explanation:
Two accounts are needed to derive the cost of sale: manufacturing account and trading account.
Manufacturing account is prepared to determine the cost of production. The preparation of cost of production involves three major steps:
1. Determination of prime cost by adding direct material cost with material labor cost and other direct manufacturing cost.
2. Adding prime cost with factory overhead cost.
3. Adding changes in work in progress( Opening WIP minus Closing WIP) to value arrived at step 2.
The figure arrived at is cost of production.
Trading account is prepared to derive the cost of sale for a particular period.
It involves adding opening finished goods with purchases (if any) and cost of production. After this, closing finished goods is subtracted from the figure derived above to arrive at cost of sales for the period.
Using information supplied by Zoe Corporation, the cost of sale is:
Zoe Corporation
Manufacturing Account For March
$ $
Cost of direct materials used in production 17,811
Direct Labor 29,363
Prime Cost 47,174
Add: Factory Overheard 32,472
79,646
Changes in Work in Progress
Begininng WIP 20,353
Closing WIP (19,710) 643
Cost of Production 80,289
Trading Account For March
$
Opening Finished inventory 24,290
Add:Cost of production 80,289
104,579
Closing Finished Inventory (28,183)
Cost of Sale 76,396
When Coca-Cola purchased first a part and then all of Honest Tea, what would have been appropriate ways to help this change be successful? Check all that apply.
Answer:
Explanation: Choices
Conduct team-building exercises to help groups of employees from Coca-Cola and Honest Tea communicate effectively and address conflict.
Use a change agent to freeze Honest Tea’s very successful culture before Coca-Cola could have any impact.
Survey Honest Tea employees to identify sources of anxiety and conflict related to the acquisition.
Train employees on Coca-Cola’s payroll and expense reimbursement systems since Honest tea uses them.
The appropriate ways to help this change be successful are to the extent that Honest Tea began using Coca-Cola's payroll and expense reimbursement systems; train employees on these systems; conduct team-building exercises to help groups of employees from Coca-Cola and Honest Tea communicate effectively and address conflict; and survey Honest Tea employees to identify sources of anxiety and conflict related to the acquisition. Hence, Options A, B, and C are correct.
What is "honest tea"?A tea company based in Bethesda, Maryland was founded in 1998 by Seth Goldman and Barry Nalebuff. It is a bottled organic tea company. The whole subsidiary is owned by The Coca-Cola Company.
The ingredients of the tea are: Brewed Tea (Filtered Water, Fair Trade Organic Green Tea Leaves), Fair Trade Organic Cane Sugar, Organic Honey, and many more. All the ingredients range from unsweetened to 'Just a Tad Sweet' tasting varieties.
An image is attached in the end for better understanding.
Therefore, Options A, B and C are correct.
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1. The market-pull view of new product innovation is to A. "pull" the products into the market as fast as possible. B. develop products that the company can sell, based on customer needs. C. market whatever the company makes best. D. make new products appealing through innovative packaging.
Answer:
(B). Develop products that the company can sell, based on customer needs.
Explanation:
When customer needs arise in the market, organizations become aware of these needs through market research and customer feedback, and then try to meet these needs by developing new products.
The need for new products is what is known as Market-pull.
The market-pull view of new product innovation is to develop products that the company can sell, based on customer needs. Hence option B is correct.
The market-pull view of new product innovation emphasizes identifying and understanding customer needs and preferences as the primary driving force behind developing new products.
This approach focuses on conducting market research, gathering customer insights, and creating products that satisfy those needs. In the market-pull approach, companies conduct thorough market research and analysis to understand the needs, desires, and problems of their target customers.
They gather insights through techniques like surveys, focus groups, interviews, and observation to gain a deep understanding of customer preferences, buying behaviors, and market trends.
Using this customer-centric information, companies then develop new product ideas and concepts that align with the identified market needs. The focus is on creating products that will be valued and desired by customers, meeting their specific requirements and offering unique benefits.
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The market price of pizzas in a college town decreased recently, and the students in an economics class are debating the cause of the price decrease. Some students suggest that the price decreased because the price of dough, an important ingredient for making pizzas, has decreased. Other students attribute the decrease in the price of pizzas to a recent increase in the price of beer. Everyone agrees that the increase in the price of beer was caused by a recent increase in the price of grain, which is not generally used in making pizzas. The first group of students thinks the decrease in the price of pizzas is due to the fact that the price of dough, an important ingredient for making pizzas, has decreased.
Answer:
The supply curve will shift rightward
Explanation:
Increase in the supply leads to a rightward shift in the supply curve and ultimately a decrease in the price. Likewise, a decrease in supply leads to a leftward shift in the price curve. According to the first group, the price of pizza decreased due to the price of dough which means that the supply of pizza will increase and the supply curve will shift rightward.
Before the year began, Venus Manufacturing estimated that manufacturing overhead for the year would be $ 175 comma 900 and that 25 comma 900 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost $ 182 comma 000 Actual direct labor hours 20 comma 100 If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been _____ (Round intermediary calculations to the nearest cent.)
Answer:
Allocated MOH= $136,479
Explanation:
Giving the following information:
Estimated that manufacturing overhead for the year= $175,900
Estimated Direct labor hours= 25,900
Actual direct labor hours= 20,100
First, we need to calculate the predetermined overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 175,900/25,900= $6.79 per direct labor hour
Now, we can allocate the overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 6.79*20,100= $136,479
Suppose Ava had deposited another $1,300 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest rate of 8.2% but with quarterly compounding. Keeping everything else constant, how much money will Ava have in her account at this bank in 5 years?A. $1,950.76 B. $1,409.92 C. $206.60 D. $173.08
Final answer:
Ava will have $1,409.92 in her savings account at the second bank in 5 years.
Explanation:
To calculate the future value of Ava's savings account with quarterly compounding, we can use the formula for compound interest:
FV = P(1 + r/n)^(nt)
Where FV is the future value, P is the principal amount (initial deposit), r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Using the information given, we have: P = $1,300, r = 8.2% = 0.082, n = 4 (quarterly compounding), and t = 5.
Plugging these values into the formula, we get:
FV = $1,300(1 + 0.082/4)^(4*5)
FV = $1,409.92
Therefore, Ava will have $1,409.92 in her savings account at the second bank in 5 years.
Tripod Inc. began the month with accounts receivable of $25,000. During the month, it collected $12,000 from customers and sold $5,000 of merchandise on credit. What is its accounts receivable balance at the end of the month?
Answer:
Accounts receivable balance at the end of the month is $18,000
Explanation:
Accounts receivable balance at the end of the month = Accounts receivable balance at the beginning of the month + Accounts receivable increased during the month - Accounts receivable decreased during the month.
During the month, Tripod Inc. collected $12,000 from customers. Accounts receivable decreased during the month of $12,000
It sold $5,000 of merchandise on credit. Accounts receivable increased during the month of $5,000
Accounts receivable balance at the end of the month = $25,000 + $5,000 - $12,000 = $18,000
If the interest rate is 8%, what is the 4-year discount factor? What is the 4-year annuity factor? What is the relationship between these two numbers? Explain.
Answer:
Discount factor will be 0.735
And annuity factor will be 3.312
Explanation:
We have given rate of interest r = 8 %
Time period n = 4 year
We have to calculate discount factor
Discount factor is equal to [tex]=\frac{1}{(1+r)^n}=\frac{1}{(1+0.08)^4}=\frac{1}{1.08^4}=0.735[/tex]
So discount factor will be equal to 0.735
Annuity factor is equal to [tex](1-\frac{\frac{1}{(1+r)^n}}{r})[/tex]
So annuity factor will be equal to [tex](1-\frac{\frac{1}{(1+r)^n}}{r})=(1-\frac{\frac{1}{(1+0.08)^4}}{0.08})=3.312[/tex]
So annuity factor will be 3.312
Annuity factor is determined for a progression of equivalent installment/receipt for indicated time frame.
In any case, discounting factor is determined distinctly for discover the present estimation of sum which will be put resources into year 4.
The 4-year discount factor is approximately 0.7350, while the 4-year annuity factor is approximately 3.3122. Annuity factor applies discount factor to annuities.
Certainly, let's calculate the 4-year discount factor and the 4-year annuity factor without using LaTeX:
1. 4-Year Discount Factor:
- The formula for the discount factor is:
Discount Factor = 1 / (1 + Interest Rate)^Number of Periods
- Given an interest rate of 8% and 4 years, plug in the values:
Discount Factor = 1 / (1 + 0.08)^4
Discount Factor ≈ 0.7350
2. 4-Year Annuity Factor:
- The formula for the annuity factor is:
Annuity Factor = (1 - (1 + Interest Rate)^(-Number of Periods)) / Interest Rate
- Given an interest rate of 8% and 4 years, plug in the values:
Annuity Factor = (1 - (1 + 0.08)^(-4)) / 0.08
Annuity Factor ≈ 3.3122
Relationship:
- The discount factor is used to find the present value of a single future cash flow.
- The annuity factor is used to find the present value of a series of equal cash flows over time.
- The annuity factor incorporates the interest rate and the number of periods to calculate the present value of the annuity.
In summary, the discount factor and annuity factor are related in that they both calculate present values but for different scenarios. The annuity factor is essentially the discount factor applied to an annuity.
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Last year Rain Repel Corporation had an ROE of 10 percent and a dividend payout ratio of 80 percent. What is the sustainable growth rate? Multiple Choice 1.11 percent 2.04 percent 44.44 percent 50.00 percent
Answer:
2.04 percent
Explanation:
Given that,
ROE = 10 percent
Dividend payout ratio = 80 percent
ROE = Net income ÷ Equity
= 10 percent
Retention Ratio = 1 - Dividend payout ratio
= 1 - 80 percent
= 0.2 or 20%
Therefore,
Sustainable growth rate:
= (ROE × Retention Ratio) ÷ [1 - (ROE × Retention Ratio)]
= (10% × 20%) ÷ [1 - (10% × 20%)]
= 0.02 ÷ (1 - 0.02)
= 0.02 ÷ 0.98
= 0.0204 or 2.04%
The correct answer is option B). At ROE of 10 percent and a dividend payout ratio of 80 percent the sustainable growth rate is 2.04 percent.
The following formula can be used to determine the sustainable growth rate (SGR):
[tex]\[ \text{SGR} = ROE \times (1 - \text{Dividend Payout Ratio}) \][/tex]
Given:
Return on Equity (ROE) = 10%
Dividend Payout Ratio = 80%
The first thing we must do is figure out the retention ratio, or the percentage of net income held by the business and not distributed as dividends. The retention ratio is calculated as:
[tex]\[ \text{Retention Ratio} = 1 - \text{Dividend Payout Ratio} \][/tex]
Substitute the given values:
[tex]\[ \text{Retention Ratio} = 1 - 0.80 = 0.20 \][/tex]
Calculation of the Sustainable Growth Rate (SGR):
[tex]\[ \text{SGR} = ROE \times \text{Retention Ratio} \][/tex]
[tex]\[ \text{SGR} = 0.10 \times 0.20 = 0.02 = 2\% \][/tex]
So, the sustainable growth rate is:
[tex]\[ \text{B) 2.04 percent} \][/tex]
The complete question is:
Last year Rain Repel Corporation had an ROE of 10 percent and a dividend payout ratio of 80 percent. What is the sustainable growth rate?
A) 1.11 percent
B) 2.04 percent
C) 44.44 percent
D) 50.00 percent
Assume you purchased 700 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin is 65%, the amount you borrowed from the broker is _________.
a. $18,200
b.$28,000
c.$37,800
d.$9,800
Answer:
Option D is correct ($9,800)
Explanation:
Option D is correct ($9,800)
Given:
Shares Purchased of XYZ common stock= 700 shares
Margin at which shares are purchased= $40
Initial Margin= 65%
Required:
Amount you borrowed from the broker=?
Solution:
Amount you borrowed from the broker= Shares*Margin at which shares are purchased* (1-Initial Margin)
Amount you borrowed from the broker= 700*$40*(1-0.65)
Amount you borrowed from the broker= $9,800
Final answer:
To find the amount borrowed from the broker, first determine the total cost of the shares, then apply the initial margin to figure out how much the student paid, and finally subtract the student's payment from the total cost. The amount borrowed equals $9,800.
Explanation:
To calculate the amount borrowed from the broker when purchasing shares on margin, we need to first determine the total cost of the shares and then apply the initial margin requirement. The total cost of the shares is found by multiplying the number of shares by the price per share. Here, the student purchased 700 shares of XYZ common stock at $40 per share, which equals $28,000 (700 shares × $40/share).
With an initial margin requirement of 65%, the student must pay 65% of the total cost upfront, and the rest is borrowed from the broker. The amount the student pays is $28,000 × 0.65 = $18,200. Therefore, the amount borrowed from the broker is the total cost minus the amount paid by the student: $28,000 - $18,200 = $9,800.
So, the correct answer is d. $9,800.
The price-earnings ratio P/E is the ratio (market value of one share)/(earnings per share). If P/E increases by 17% and the earnings per share decrease by 8%, determine the percentage change in the market value. Round your answer to the nearest percentage point.
The percentage change in the market value can be calculated using the formula (Percentage change in P/E - Percentage change in earnings per share) / (1 + Percentage change in P/E) * 100. Plugging in the given values, the percentage change in the market value is 21.37%.
Explanation:The price-earnings ratio (P/E) is the ratio of the market value of one share to the earnings per share. To determine the percentage change in the market value when the P/E increases by 17% and the earnings per share decrease by 8%, we can use the formula:
Percentage change in market value = (Percentage change in P/E - Percentage change in earnings per share) / (1 + Percentage change in P/E) × 100
Plugging in the given values:
Percentage change in market value = (17% - -8%) / (1 + 17%) × 100
Percentage change in market value = (25%) / (1.17) × 100
Percentage change in market value = 21.37%
Tray's job is to survey personnel, customers, and corporate partners regarding what other firms in the market are doing. He also reads industry magazines and conducts online searches, gathering and synthesizing information about everyone in the business. Tray is engaged inA. Demographic data.
B. Intuitive diagnostics.
C. Regional regression analysis.
D. Macroeconomic variabel analysis.
E. Competitive intelligence.
Answer:
The correct answer is letter "E": competitive intelligence.
Explanation:
Competitive intelligence refers to gathering and analyzing corporate information that could affect a firm's competitive advantage. Thanks to the information gathered companies can mirror other institution's good practices to increase efficiency and effectiveness, thus, revenue.
The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit CreditPrepaid Insurance $4,020 Supplies 2,620 Equipment 28,270 Accumulated Depreciation-Equipment $8,580 Notes Payable 24,980 Unearned Rent Revenue 7,800 Rent Revenue 60,880 Interest Expense –0– Salaries and Wages Expense 22,050 An analysis of the accounts shows the following.1. The equipment depreciates $290 per month.2. One-third of the unearned rent was earned during the quarter.3. Interest of $680 is accrued on the notes payable.4. Supplies on hand total $850.5. Insurance expires at the rate of $370 per month.Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
Explanation:
The adjusting entries are shown below:
1. Depreciation Expense A/c Dr $870 ($290 × 3 months)
To Accumulated Depreciation - Equipment A/c $870
(Being depreciation expense is recorded)
2. Unearned rent A/c Dr $2,600 ($7,800 ÷ 3)
To Rent revenue A/c $2,600
(Being the unearned rent is recorded)
3. Interest expense A/c Dr $680
To Accrued Interest A/c $680
(Being the interest expense is recorded)
4. Supplies expense A/c Dr $442.50
To Supplies A/c $442.50
(Being the supplies expense is recorded)
The computation is shown below:
= (Supplies balance - supplies on hand) ÷ (total number of quarters in a year)
= ($2,620 - $850) ÷ 4
= $442.50
5. Insurance expense A/c Dr $1,110 ($370 × 3 months)
To Prepaid insurance A/c $1,110
(Being the insurance expense is recorded)
The adjusting entries for Duggan Rental Agency on March 31 include adjusting for depreciation, recognizing earned unearned rent, accruing interest, adjusting for supplies used, and recognizing expired prepaid insurance.
Explanation:The adjusted entries for Duggan Rental Agency on March 31 are as follows:
Depreciation Expense: Debit Accumulated Depreciation-Equipment $870, Credit Depreciation Expense $870. This adjusts for the $290 monthly depreciation of the equipment.Rent Revenue: Debit Unearned Rent Revenue $2,600, Credit Rent Revenue $2,600. This recognizes one-third of the unearned rent as earned during the quarter.Interest Expense: Debit Interest Expense $680, Credit Interest Payable $680. This accrues the interest on the notes payable.Supplies Expense: Debit Supplies Expense $1,770, Credit Supplies $1,770. This adjusts for the supplies used during the quarter, leaving $850 on hand.Insurance Expense: Debit Insurance Expense $1,110, Credit Prepaid Insurance $1,110. This recognizes the $370 monthly expiration of the prepaid insurance.Learn more about Adjusting entries here:https://brainly.com/question/33175618
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The following adjusted trial balance contains the accounts and balances of Cruz Company as of December 31 2017, the end of its fiscal year:
No. Account Title Debit Credit
101 Cash $ 18,000
126 Supplies 14,500
128 Prepaid insurance 2,000
167 Equipment 23,000
168 Accumulated depreciation—Equipment $ 6,500
307 Common stock 13,272
318 Retained earnings 33,600
319 Dividends 6,000
404 Services revenue 44,100
612 Depreciation expense—Equipment 2,000
622 Salaries expense 25,710
637 Insurance expense 1,852
640 Rent expense 2,955
652 Supplies expense 1,455
Totals $ 97,472 $ 97,472
Required:
1. Prepare the December 31, 2017, closing entries for Cruz Company.
2. Prepare the December 31, 2017, post-closing trial balance for Cruz Company.
Answer:
1. Prepare the December 31, 2017, closing entries for Cruz Company.
Dr. Cr.
404 Services revenue 44,100
Income Summary 44,100
Income Summary 33,972
612 Depreciation expense—Equipment 2,000
622 Salaries expense 25,710
637 Insurance expense 1,852
640 Rent expense 2,955
652 Supplies expense 1,455
2. Prepare the December 31, 2017, post-closing trial balance for Cruz Company.
Dr. Cr.
101 Cash 18,000
126 Supplies 14,500
128 Prepaid insurance 2,000
167 Equipment 23,000
168 Accumulated depreciation—Equipment 6,500
307 Common stock 13,272
318 Retained earnings 33,600
319 Dividends 6,000
404 Services revenue 44,100
612 Depreciation expense—Equipment 2,000
622 Salaries expense 25,710
637 Insurance expense 1,852
640 Rent expense 2,955
652 Supplies expense 1,455
Totals 97,472 97,472
Explanation:
Final answer:
The answer provides instructions on preparing closing entries and a post-closing trial balance for Cruz Company as of December 31, 2017.
Explanation:
1. Prepare the December 31, 2017, closing entries for Cruz Company:
1. Close revenue accounts:
- Debit Services Revenue $44,100
- Credit Income Summary $44,100
2. Close expense accounts:
- Debit Income Summary $34,972
- ($2,000 + $2,955 + $1,852 + $25,710 + $1,455)
- Credit Depreciation Expense—Equipment $2,000
- Credit Insurance Expense $1,852
- Credit Rent Expense $2,955
- Credit Salaries Expense $25,710
- Credit Supplies Expense $1,455
3. Close Income Summary to Retained Earnings:
- Debit Income Summary $44,100
- Credit Retained Earnings $44,100
4. Close Dividends to Retained Earnings:
- Debit Retained Earnings $6,000
- Credit Dividends $6,000
2. Prepare the December 31, 2017, post-closing trial balance for Cruz Company:
No. Account Title Debit Credit
101 Cash $18,000
126 Supplies $ 14,500
128 Prepaid insurance $ 2,000
167 Equipment $ 23,000
168 Accumulated depreciation—Equipment $6,500
307 Common stock $ 13,272
318 Retained earnings $72,600
Totals $57,500 $79,772
Choosing whether to use a rational or emotional positioning appeal requires analysis of several factors. Which factor listed below is NOT relevant for this decision?
a The target audience
b How competitors use rational versus emotional appeals
c How target customers choose a brand
d How target customers use the product
e Whether or not the product will be priced at a premium
Answer:
e. Whether or not the product will be priced at a premium
Explanation:
The rational or emotional positioning appeal in marketing are both advertising appeals such that the advertisers create their marketing strategies that either appeals to the rational or the emotional side of the consumer. Usually, the factors to consider in creating these appeals include: the organisation type and product or service type, the target customers and how they choose brands or products based on maturity and then the product satisfaction.
It becomes clear from the explanation above, that the emotional and rational appeal advertising does not take the price of the product or service into consideration.
Final answer:
The factor that is NOT relevant in choosing between rational or emotional positioning appeal is whether the product will be priced at a premium. Emotional and rational appeals are chosen based on how they engage the target audience and not based on the pricing strategy. Thus, option E is correct.
Explanation:
In the context of choosing between rational or emotional positioning appeal in marketing strategies, several factors must be considered. The relevant factors include understanding the target audience, observing competitor behavior in using either appeal, and recognizing how customers choose and use the product. The question asks which of the listed factors is not relevant to this decision, and the answer is e Whether or not the product will be priced at a premium. Pricing strategy does not determine the type of appeal—rational or emotional—but rather the appeal is chosen based on the effective engagement and persuasion of the target audience.
Emotional appeals often engage the audience by relating to their needs or emotions, and can be effective in marketing if they resonate well with the audience's values, cultural beliefs, and life experiences. On the other hand, rational appeals focus on presenting logical arguments or factual information that persuade the audience through clear reasoning and evidence.
Transactions for the Swifty Company, which provides welding services, for the month of June are presented below. June 1Swifty invests $4,250 cash in exchange for shares of common stock in a small welding business. 2Purchases equipment on account for $350. 3$830 cash is paid to landlord for June rent. 12Bills P. Leonard $410 after completing welding work done on account.
Answer:
1. June 1 Swifty invests $4,250 cash in exchange for shares of common stock in a small welding business.
2. June 2 Purchases equipment on account for $350.
3. June 3 $830 cash is paid to landlord for June rent.
4. June 12 Bills P. Leonard $410 after completing welding work done on account.
Journal Entries:
1.
June 1 Dr. Cr.
Investment $4,250
Cash $4,250
2.
June 2 Dr. Cr.
Equipment $350
Account Payable $350
3.
June 3 Dr. Cr.
Rent Expense $830
Cash $830
4.
June 12 Dr. Cr.
P. Leonard (Receivable) $410
Welding Service Revenue $410
What are strategic competitiveness, strategy, competitive advantage, above-average returns, and the strategic management process?
Strategic competitiveness, strategy, competitive advantage, above-average returns, and the strategic management process are key concepts in business and strategic management. They involve a firm's ability to outperform rivals, achieve its long-term goals, maximize shareholder value, and successfully adapt to changing circumstances.
Explanation:Strategic competitiveness is the ability of a firm to formulate and implement strategies that will allow it to maintain and improve its position within the market, compared to its competitors. It's a firm's hard-won position in a competitive marketplace and the ability to create value for customers and stakeholders.
Strategy is the framework or course of action designed to achieve long-term goals. It's the blueprint of how a business will achieve its objectives, including the detailed planing and tactics involved in meeting those objectives.
Competitive advantage is a unique advantage that allows a company to outperform its competitors. This could be due to a range of factors, like superior product quality, lower cost, better customer service and others.
Above-average returns refer to the assumption that a firm's primary goal is to maximize the return to its shareholders by achieving returns on investment that exceed those expected given its level of risk.
The strategic management process is a set of activities aimed at ensuring that an organization is being managed in a manner that allows it to adapt to changes, meet the needs of customers, and fulfill its objectives. This process often includes goal setting, analysis, strategy formation, strategy implementation and strategy monitoring.
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Strategic competitiveness is achieved through successful strategy implementation. A company has a competitive advantage when it implements a unique value-creating strategy, potentially leading to above-average returns. The strategic management process consists of five steps: goal-setting, analysis, strategy formation, strategy implementation, and strategy monitoring.
Explanation:Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Strategy in the business context refers to an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. A company has a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors.
Above-average returns are returns in excess of what an investor expects to earn from other investments with a similar amount of risk. Returns are considered above-average if they exceed the industry standard or market average. These often result from a competitive advantage.
The strategic management process is a sequential set of analyses and choices that can increase the likelihood that a firm will choose a strategy that generates competitive advantages. It includes five stages: goal-setting, analysis, strategy formation, strategy implementation, and strategy monitoring.
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In marketing communication planning, ________ includes everything a planner can find out about consumer perceptions about the brand, product category, and competitors' brands.
Answer:
The correct word for the blank space is: Market information.
Explanation:
Market information implies collecting data from consumers about a certain product so companies have more opportunities to align their processes to meet customers' demands. The information is also gathered about competitors according to their category.
Market research in marketing communication planning includes information about consumer perceptions about brands, products and competitors. This research can be conducted through surveys, like giving questionnaires to randomly-selected customers.
Explanation:In marketing communication planning, the term market research encompasses everything a planner can discover about consumer perceptions concerning the brand, product category, and competitors' brands. This research helps planners in formulating effective communication strategies by understanding their target audience's preferences, dislikes, and expectations. As an illustration, if a marketing manager for an electronics chain store wants to have consumer insights, they can conduct surveys. The provided example of giving questionnaires to randomly selected customers about their age and other variables of interest is a practical approach to gather valuable data.
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