Answer:
Yield to Call = 8.66%
Explanation:
The computation of the yield to call is shown below:
First determine Current Price of Bond,
PV = [FV = 1,000, PMT = 30, N = 40, I = 0.075 ÷2]
PV = $845.87
Callable Price = $1,050
Now
Calculating Yield to Call,
I = [PV = -845.87, FV = 1,050, N = 20, PMT = 30]
I = 8.66%
Yield to Call = 8.66%
You are an economist studying the small country of Mardodus. As you look at the data, you see Mardodus has experienced an influx of updated technology to its manufacturing plants, service industry and the medical field in the last three years. This change boosted the growth of the country’s productivity by 75%, yet you see that wages have been very slow to respond to this growth. As you begin to analyze the natural unemployment rate for this time frame, what do you most likely discover?
Answer: Natural rate of unemployment will decrease because the productivity growth in the short term has passed up wage growth.
Explanation:
The natural unemployment rate simply means the lowest unemployment rate where the inflation in the economy is stable.
Based on the information given in the question, if the natural unemployment rate for this time frame.is analyzed, the natural rate of unemployment will reduce due to the fact that the productivity growth in the short term has passed up wage growth.
Kyoko is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: In order to swim for an hour, Kyoko must take time away from work, where she earns $11 per hour. This is in addition to paying a $4 entrance fee for the pool. Which basic principle of individual choice do these statements best illustrate?
1) The cost of something is what you give up to get it
2) Markets are usually a good way to organize economic activity
3) People usually exploit opportunities to make themselves better off.
4) Trade can make everyone better off
Answer:
4
Explanation:
A person trades off one activity for the other when in order to carry out an activity one has to give up something
In order for Kyoko to swim, she has to take time away from work where she earns $11. This is what she trades off
A rational consumer would only trade off an activity for another only if the satisfaction derived would be greater than that of the activity traded off
will lie above the marginal product curve for the firm with less capital. must equal the marginal product curve for the firm with less capital. will lie below the total marginal curve for the firm with less capital. will show no diminishing marginal returns.
Answer:
busineess would have to chnage that
Samson Company reported total manufacturing costs of $320000, manufacturing overhead totaling $52000, and direct materials totaling $64000. How much is direct labor cost
Answer:
Direct labor cost is like $184000
Explanation is not my nation
Suppose that Portugal and Germany both produce beer and stained glass. Portugal's opportunity cost of producing a pane of stained glass is 4 barrels of beer while Germany's opportunity cost of producing a pane of stained glass is 10 barrels of beer.
By comparing the opportunity cost of producing stained glass in the two countries, you can tell that ___ has a comparative advantage in the production of stained glass and ___ has a comparative advantage in the production of beer.
Suppose that Portugal and Germany consider trading stained glass and beer with each other. Portugal can gain from specialization and trade as long as it receives more than ___ of beer for each pane of stained glass it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than ___ of stained glass for each barrel of beer it exports to Portugal.
Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of beer) would allow both Germany and Portugal to gain from trade?
a. 8 barrels of beer per pane of stained glass.
b. 6 barrels of beer per pane of stained glass.
c. 2 barrels of beer per pane of stained glass.
d. 18 barrels of beer per pane of stained glass.
Answer:
umm I don't really understand the question
Explanation:
a
Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $33.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40. On the basis of this information, the fixed cost was:
Answer:
$550,000
Explanation:
The computation of the fixed cost is shown below:
But before that the variable cost per hour is
= (25,000 ×$30.40 - 22,000 × $33.40) ÷ (25,000 - 22,000)
= ($760,000 - $734,800) ÷ (3,000)
= $8.4
Now the fixed cost is
= $760,000 - (25,000 × $8.4)
= $550,000
XYZ Company manufactures a unique device that is used by internet users to boost Wi-fi signals. The following data relates to the first month of operation:
Beginning inventory 0 units
Units produced 40,000 units
Units sold 35,000 units
Selling price $120 per unit
Marketing and administrative expenses
Variable marketing and administrative expenses per unit $4
Fixed marketing and administrative expenses per month $1,120,000
Manufacturing costs
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost per month $1,280,000
Using the information given, above:
a. Calculate unit product cost under the variable costing method and the absorption costing method.
b. Prepare an Income Statement under the variable costing method, as well as the absorption costing method.
c. Prepare a schedule to reconcile the net operating income under the variable and absorption costing methods
Answer:
XYZ Company
a. Unit product cost under:
1. variable costing method
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Variable marketing and administrative expenses per unit $4
Total variable cost $52
2. absorption costing method:
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost $32 ($1,280,000/40,000)
Total product cost per unit $80
b1. Income Statement under the variable costing method
Sales revenue $4,200,000 ($120 * 35,000)
Cost of goods sold:
Variable cost of goods sold 1,680,000 ($48 * 35,000)
Variable marketing and admin 140,000 ($4 * 35,000)
Total cost of goods sold 1,820,000
Contribution margin $2,380,000
Fixed expenses:
Fixed marketing and
administrative expenses $1,120,000
Fixed manufacturing overhead 1,280,000
Total fixed expenses $2,400,000
Net operating loss $20,000
b2. Income Statement under the absorption costing method
Sales revenue $4,200,000 ($120 * 35,000)
Cost of goods sold:
Variable cost of goods sold 1,920,000 ($48 * 40,000)
Fixed manufacturing overhead 1,280,000
Less Ending inventory (400,000)
Total cost of goods sold 2,800,000
Contribution margin $1,400,000
Period expenses:
Marketing and Administrative:
Fixed $1,120,000
Variable 140,000 $1,260,000
Net operating income $140,000
c. Schedule to reconcile the net operating income under the variable and absorption costing methods:
Net operating income under absorption = $140,000
Fixed cost absorbed in ending inventory = 160,000 ($32 * 5,000)
Net operating loss under variable = ($20,000)
Explanation:
a) Data and Calculations:
Beginning inventory 0 units
Units produced 40,000 units
Units sold 35,000 units
Ending inventory 5,000 units
Selling price $120 per unit
Marketing and administrative expenses:
Variable marketing and administrative expenses per unit $4
Fixed marketing and administrative expenses per month $1,120,000
Manufacturing costs:
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost per month $1,280,000
What is the weighted average cost of capital if a business has a cost of equity of 11%, a yield on debt of 6%, a tax rate of 30%, 100 million market value of debt, and 250 million market value of equity
Answer:
9.028 %
Explanation:
weighted average cost of capital = cost of equity x weight of equity + cost of debt x weight of debt
where,
cost of equity = 11 %
cost of debt (consider after tax) = 6% x (1 - 0.30) = 4.20 %
weight of equity = 250 million ÷ 350 million = 0.71
weight of debt = 100 million ÷ 350 million = 0.29
therefore,
weighted average cost of capital = 11 % x 0.71 + 4.20 % x 0.29
= 9.028 %
Equilibrium in financial markets occurs at an interest rate where the quantity of loanable funds demanded is
Answer: c. equal to the quantity of loanable funds supplied.
Explanation:
Equilibrium in any market occurs when the quantity demanded is equal to the quantity supplied and the loanable funds market are no different except that the quantity that is demanded and supplied in this market is the loanable funds and the price is the interest rate.
When the interest rate being offered by the financial institutions lending money is the same as the one being demanded by the people and companies who want loanable funds, the market is said to be in equilibrium.
Loco Pony Adventures rents clowns and ponies for children’s birthday parties. If the annual total cost of furnishing entertainment is given by TC = 0.5 Q 2 + 25 Q + 1,000, the average variable cost of catering to 30 birthday parties is:
Answer and Explanation:
The computation is shown below:
As we know that the variable cost is the cost that changed with the production
So the variable cost arise from TC should be
VC=0.5Q^2+25Q
= 0.5 × (30)^2+25 × 30
= 1200
And,
AVC is
= VC ÷ Q
= 1200 ÷ 30
= 40
Summit Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at May 31, the end of the fiscal year, the following balances were taken from the ledger of Summit Services: Fees Earned $1,150,000 Dividends 5,000 Rent Expense 200,000 Retained Earnings 450,000 Supplies Expense 19,300 Wages Expense 915,000 Miscellaneous Expense 31,900
Journalize the four entries required to close the accounts.
Answer: See explanation
Explanation:
The journal entry will be prepared thus:
May 31:
Dr Fees earned $1,150,000
Dr Retained earnings $16,200
Cr Rent Expense $200,000
Cr Supplies expense $19,300
Cr Wages expenses $915,000
Cr Miscellaneous expense $31,900
May 31:
Dr Retained earnings $5000
Cr Dividend $5000
What is the IRR of a project that costs $74,361.78 and provides cash-inflows of $25,000 annually for four years
Answer:
13%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-74,361.78
Cash flow in year 1 - 4 = 25,000
IRR = 13%
King, CPA, is auditing the financial statements of Cycle company, a client that has receivables from customers arising from the sale of goods in the normal course of business. King is aware that the confirmation of accounts receivable is a generally accepted auditing procedure.
Required:
a. Under what circumstances could King justify omitting the confirmation of Cycle’s accounts receivable? In designing confirmation request, what factors are likely to affect King’s assessment of the reliability of confirmations that King sends?
b. What alternative procedures could King consider performing when replies to positive confirmation requests are not received?
Answer:
King, CPA
Auditing the financial statements of Cycle Company
a-1 Circumstances under which the omission of the confirmation of accounts receivable may be justified by King:
1. Accounts receivable are immaterial because of their values.
2. Low risk concerning accounts receivable.
3. Reliance can be placed on analytics and substantive tests to detect misstatements.
4. Using confirmations may be ineffective.
a-2) Factors that are likely to affect King's assessment of the reliability of confirmations:
1. The assessed skills of the recipients to confirm their balances.
2. The existence of verifiable customer records.
3. Proper documentations of transactions.
b. The alternative procedures that King could consider performing when replies to positive confirmation requests are not received are:
1. The auditor can conduct substantive tests, with tests of detailed transactions and analytical procedures.
2. Examination of cash receipts, sales orders, invoices, shipping documents, and correspondence files.
Explanation:
Where accounts receivable balances are material, the auditor is required to send out requests to customers to confirm their balances. The confirmation may be in the form of a negative, positive, or blank confirmation, depending on the prevailing circumstances and the assessed risks.
Suppose that the inflation rate is 2% and the real terminal value of an investment is expected to be $82,500 in 4 years. Calculate the nominal terminal value of the investment at the end of year 4.
Answer: $89300.65
Explanation:
Based on the information given in the question, the nominal terminal value of the investment at the end of year 4 will be calculated thus:
Inflation rate = 2%
Real terminal value of investment = $82,500
Normal terminal value of investment will be:
= $82500 × (1+2%)⁴
= $82500 × (1 +0.02)⁴
= $82500 × 1.02⁴
= $89300.65
In order to successfully carry out an acquisition, the managers at Pink Inc. prepared a list of potential target companies that it could purchase. In the next step, the managers evaluated each prospective company in depth to understand their methods of operations, processes, procedures, strengths, and limitations in order to choose the best target company. This process of evaluating the companies is best known as:___________.
A- Due diligence
B- Market intelligence
C- Consultation
D- Market evaluation
Answer:
A- Due diligence
Explanation:
Due diligence is an investigation, audit or the review that to be performed in order to confrim the facts within the consideration. It needs the examination of the financial records prior entered into the upcoming transaction with the other party
So as per the given situation, the first option is correct
Cost accumulation is the determination of the dollar amounts of direct materials, direct labor and overhead costs, and cost measurement is the recognition and recording of costs. True False
Answer:
true......................
Moonbeam Company manufactures toasters. For the first 8-months of 2017, the company reported the following operating results while operating at 75% of plant capacity:
Sales (350,000 units) $4,375,000
Cost of goods sold 2,600,000
Gross profit 1,775,000
Operating expenses 840,000
Net income $935,000
Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 21,600 toasters at $8.12 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.
Required:
a. Prepare an incremental analysis for the special order.
b. Should Moonbeam accept the special order? Why or why not?
Answer:
Moonbeam Company
a. Incremental Analysis:
Sales revenue:
Units of toasters (21,600 at $8.12) $175,392
Variable costs (21,600 * $7.12) 153,792
Shipping costs 3,100
Total incremental costs $156,892
Incremental net income $18,500
b. Moonbeam should accept the special order. It has the required capacity to deliver the additional toasters. It will generate an incremental income of $18,500, which is better than nothing.
Explanation:
a) Data and Calculations:
Sales (350,000 units) $4,375,000
Cost of goods sold 2,600,000
Gross profit 1,775,000
Operating expenses 840,000
Net income $935,000
Operating capacity = 75%
Current sales = 350,000
Plant capacity = 466,667 units (350,000/75%)
Total Per Unit
Sales (350,000 units) $4,375,000 $12.50
Variable cost of goods sold = 1,820,000 ($2,600,000 * 70%)
Variable operating expense = 672,000 ($840,000 * 80%)
Total variable costs = $2,492,000 $7.12
Net income = $1,883,000
Special Order:
Incremental Sales revenue
Units of toasters (21,600 at $8.12) $175,392
Variable costs (21,600 * $7.12) 153,792
Shipping costs 3,100
Total incremental costs $156,892
Incremental net income $18,500
When equipment is sold for cash, the amount received is reflected as a cash :_________ a) inflow in the operating section. b) inflow in the financing section. c) inflow in the investing section. d) outflow in the operating section.
Answer: c. inflow in the investing section
Explanation:
The cash flow statement is prepared in order to determine the ending cash balance which is done by considering the cash that's generated from various activities of the business.
Equipment is regarded as a long term asset, and therefore when it's sold for cash, it's being regarded as an indicator for investing activities section.
The question, "What are the distinguishing characteristics of effective leaders?" sparked which approach to the study of leadership?
Answer:
behavioral approach to the study of leadership
Explanation:
In simple words, The behavioral approach is only concerned with what managers do and what they behave. The behavioral approach broadened the science of leadership to encompass the activities of leaders toward followers in diverse settings by moving the study of leadership to leader behaviors. Monitoring and analyzing a leader's movements and behaviors in response to a given circumstance is central to behavioral leadership theory.
The question, "What are the distinguishing characteristics of effective leaders?" sparked the:
Behavioral approach to the study of leadership
According to the given question, we can see that a question was asked which wants to mirror on the unique features of an effective leader and asked us to show the type of approach which was sparked as a result of this question.
As a result of this, we can see that the type of approach which was sparked as a result of the question about the distinguishing characteristics of effective leaders is behavioral approach.
This is because, this type of approach focuses on leaders and how their activities impacts the followers.
Read more here:
https://brainly.com/question/18229926
what is another name for advertising?
Answer:
commercial, message, pitch
Explanation:
yes
Kaskin, Inc., stock has a beta of 1.2 and Quinn, Inc., stock has a beta of .6. Which of the following statements is most accurate?
a. The expected rate of return will be higher for the stock of Kaskin, Inc., than that of Quinn, Inc.
b. The stock of Kaskin, Inc., has more total risk than Quinn, Inc.
c. The stock of Quinn, Inc., has more systematic risk than that of Kaskin, Inc.
Answer: a. The expected rate of return will be higher for the stock of Kaskin, Inc., than that of Quinn, Inc.
Explanation:
The beta of a stock measures its systematic risk which is its risk in relation to the market. With a higher systematic risk, there would be a higher expected return to compensate for this risk.
The beta is used to calculate the expected return in the CAPM formula:
Expected return = Risk free rate + Beta * Market premium
Note how the higher the beta, the higher the expected return based on the above formula.
Find the intrinsic value of XYZ Inc. The DPS at the end of year 1 is $2.00; at the end of year 2 is $2.40; at the end of year 3 is $2.70. After the third year, the DPS grows at a constant rate of 5%. The required rate of return is 12%.
Answer: 34.33
Explanation:
Firstly, we'll calculate the terminal value
which willl be:
= 2.70 × (1+5%)/(12% - 5%)
= 2.70 x 1.05/(0.12 - 0.05)
= 40.5
Then, the intrinsic value will be:
= 2/1.12 + 2.4/1.12² + (2.7 + 40.5)/1.12³
= 34.33
Therefore, the the intrinsic value of XYZ Inc is 34.33
Rick Co. had 36 million shares of $1 par common stock outstanding at January 1, 2021. In October 2021, Rick Co.'s Board of Directors declared and distributed a 1% common stock dividend when the market value of its common stock was $56 per share. In recording this transaction, Rick would:
Answer:
Debit retained earnings for $20,160,000
Explanation:
Calculation to determine what Rick would record
First step
Shares to be distributed = .01 × 36 million
Shares to be distributed= 360,000 shares
Now let determine the Retained earnings
Retained earnings: Market value of shares = 360,000 × $56
Retained earnings: Market value of shares= $20,160,000
Therefore In recording this transaction, Rick would:Debit retained earnings for $20,160,000
Matching Items Reported to Cash Flow Statement Categories (Indirect Method).
Adidas AG is a global company that designs and markets sports and fitness products, including footwear, apparel, and accessories. Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the Operating Activities, Investing Activities, or Financing Activities section of the statement or use Not Applicable if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement).
1. Dividends paid.
2. Repayments of short-term borrowings.
3. Depreciation and amortization.
4. Proceeds from reissuance of treasury shares to employees.
5. [Change in] Accounts payable and other liabilities.
6. Cash collections from customers.
7. Purchase of investments.
8. Net income.
9. Purchase of property, plant, and equipment.
10. Increase in receivables and other assets.
Answer:
1. Dividends paid.
Classification: Financing Activity
2. Repayments of short-term borrowings.
Classification: Financing Activity
3. Depreciation and amortization.
Classification: Operating Activities
4. Proceeds from reissuance of treasury shares to employees.
Classification: Financing Activity
5. Change in Accounts payable and other liabilities.
Classification: Operating Activities
6. Cash collections from customers.
Classification: Not Applicable
7. Purchase of investments.
Classification: Financing Activity
8. Net income.
Classification: Operating Activities
9. Purchase of property, plant, and equipment.
Classification: Investing Activities
10. Increase in receivables and other assets.
Classification: Operating Activities
A seller's opportunity cost measures the a. value of everything she must give up to produce a good. b. amount she is paid for a good minus her cost of providing it. c. out-of-pocket expenses to produce a good but not the value of her time. d. consumer surplus.
Answer:
a. value of everything she must give up to produce a good.
Explanation:
The opportunity cost of the seller determines the value of each and every thing in which the seller gives up the production of the a good in order to generating an output
So as per the given situation, the option a is correct
And, the rest of the options seems incorrect
As discussed in the lecture video, Crocs’ plastic molding and sandal design capabilities have provided the firm with only a temporary competitive advantage, as incumbent firms began selling sandals that were very similar to the Crocs’ clogs. Crocs lost its competitive advantage primarily because of ___________
Answer: c. competitor imitation
Explanation:
When a company makes a good product that people like and therefore brings in profit, other companies will copy that product if it is not protected by law so that they too can make profit as well.
This is what happened to the Crocs' clogs. Other companies imitated them and so Crocs lost their competitive advantage. This led to prices falling for such footwear as the supply increased. It is for this reason that companies try to get patents when they make a product.
At December 31, 2020, Suffolk Corporation had an estimated warranty liability of $105,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Suffolk should report as a deferred tax asset at December 31, 2020.
Answer:
Deferred tax asset = $21000
Explanation:
Given the warranty liability = $105000
Effective tax rate = 20%
The deferred tax asset can be calculated by calculating the effective tax from the warranty liability. Therefore, just multiply the effective tax rate to the warranty liability.
Deferred tax asset = Effective tax rate x Warranty liability
Deferred tax asset = 20% x $105000
Deferred tax asset = $21000
Other comprehensive income includes: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply unrealized gains on available-for-sale securities.unanswered owner investments.unanswered unrealized losses from available-for-sale securities.unanswered foreign currency translation adjustments.unanswered dividends.
Answer:
unrealized gains on available-for-sale securities.
unrealized losses from available-for-sale securities.
foreign currency translation adjustments.
Explanation:
Other Comprehensive income involved the non-realized gains or losses that available for selling the securities, losses or gain related to the foreign currency translation, gain or losses related to the pension planning
Also the owners investment and dividend are to be presented on the statement of the stockholder equity
So, the above statements should be considered
Introduction to Business class is to observe the use of groups in a large manufacturing business. The students notice that most groups are arranged by reporting relationships. Bill discovers a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees. Jane finds that the executives of the company have formed a team consisting of themselves, some middle managers, and a few hourly employees to work on improving work processes and efficiency within the company. This group has been in existence for 5 years and is going strong. The group of managers that Bill discovers is an example of:
A) an informal interest group
B) a formal group
C) A fun group
D) a quality group.
The correct answer is B) a formal group.
The group of managers that Bill discovers is an example of a formal group.
During their visit to a large manufacturing business, Bill discovers a formal group. It is a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees.
When we are referring to an organization, a formal group can be understood as a workgroup that is formed by design, depending on a hierarchical composition. The members of this group have specific tasks according to the work they perform in the company.
Usually, these groups are formed based on the experience of their members because they want to accomplish goals in a more effective way and to improve the decision-making process of difficult issues.
The ________ is the difference between merchandise imports and exports and a measure of a country's international trade in goods.
Answer:
balance of trade
Explanation:
Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.
Basically, trade can be categorized into two (2) main groups and these are;
I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.
II. Export: it involves the sales of goods produced in a domestic country to a foreign country.
In Economics, a balance of trade is a measure of the difference between merchandise imports and exports, as well as a country's international trade in goods. Thus, it's a measure of the difference between the monetary value of the import and export of goods of a country over a specific period of time.