A firm has a total market value of assets of $600 million that includes $120 million of cash and 10 million shares outstanding. If the firm uses $60 million of its cash to repurchase shares, what is the new price per share

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Answer 1

The new price per share after a share repurchase of $60 million by a firm with a total market value of assets of $600 million and 10 million shares outstanding is $66.67 per share, with a reduction in the number of outstanding shares to 9 million.

How to find the new price per share?

Before the share repurchase, the market value per share is:

Market value per share = Total market value of assets / Number of shares outstanding

Market value per share = $600 million / 10 million shares

Market value per share = $60

After the share repurchase, the cash balance is reduced to $120 million - $60 million = $60 million. The total market value of assets remains the same at $600 million. Since the number of shares outstanding has been reduced due to the share repurchase, we need to calculate the new number of shares outstanding.

New number of shares outstanding = Old number of shares outstanding - Number of shares repurchased

New number of shares outstanding = 10 million - (60 million / $60 per share)

New number of shares outstanding = 9 million

The new market value per share is:

New market value per share = Total market value of assets / New number of shares outstanding

New market value per share = $600 million / 9 million shares

New market value per share = $66.67

Therefore, the new price per share after the share repurchase is $66.67.

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Related Questions

Duration is a concept that is useful in assessing a bond's _________. a liquidity risk b price volatility c credit risk d convexity risk

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Duration is a concept that is useful in assessing a bond's B. price volatility

Duration measures the sensitivity of a bond's price to changes in interest rates, providing an estimate of how much the bond's price will fluctuate for a given change in interest rates. In general, the longer the duration, the greater the bond's price volatility, and vice versa. This information helps investors evaluate the potential risk and return of a bond investment.

Liquidity risk (option a) refers to the ease with which an investor can sell a bond in the market without significantly affecting its price. Credit risk (option c) is the risk of the bond issuer defaulting on its interest or principal payments. Convexity risk (option d) relates to the curvature of the bond's price-yield relationship, which can impact the bond's sensitivity to interest rate changes.

In summary, duration is a key metric for understanding price volatility in bonds, helping investors make informed decisions about their exposure to interest rate fluctuations. It is not directly related to liquidity risk, credit risk, or convexity risk, although these factors can also influence a bond's overall risk profile. Therefore the correct option is B

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In project schedule management, which process primarily involves checking and managing changes to the project schedule

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In project schedule management, the process that primarily involves checking and managing changes to the project schedule is known as the "Control Schedule" process.

This process is a part of the Project Time Management knowledge area and it involves monitoring the status of the project schedule and managing changes to it in order to ensure that the project is on track and within budget. The Control Schedule process involves a number of activities, such as comparing the actual project performance to the planned schedule, identifying any variances, determining the root causes of any delays or deviations from the schedule, and taking corrective action as needed. This process is crucial for ensuring that the project is completed within the designated timeframe and that any changes to the schedule are properly documented and communicated to all stakeholders. The Control Schedule process is also closely linked to other project management processes, such as risk management and quality management, as changes to the schedule can impact these areas as well. Effective communication and collaboration among team members, stakeholders, and project managers is essential in this process, as it enables timely identification and management of any changes or issues that may arise during the project lifecycle.

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Gia, Incorporated, has sales of $667,000, costs of $329,000, depreciation expense of $73,000, interest expense of $46,500, and a tax rate of 25 percent. What is the net income for the firm

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To calculate the net income for Gia, Incorporated, we can start with the formula for calculating net income:

Net Income = Sales - Cost of Goods Sold - Depreciation Expense - Interest Expense - Taxes

We are given the following information: Sales = $667,000

Cost of Goods Sold = $329,000 Depreciation Expense = $73,000

Interest Expense = $46,500 Tax Rate = 25%

Net Income = (Sales - Costs - Depreciation - Interest) x (1 - Tax Rate)

Substituting the given values, we get:

Net Income = ($667,000 - $329,000 - $73,000 - $46,500) x (1 - 0.25)

Net Income = $218,625

Therefore, the net income for Gia, Incorporated is $218,625.Using the formula above, we can plug in the numbers:

Net Income = $667,000 - $329,000 - $73,000 - $46,500 - (0.25 x ($667,000 - $329,000 - $73,000 - $46,500))

Net Income = $667,000 - $329,000 - $73,000 - $46,500 - (0.25 x $218,500) Net Income = $218,000

Therefore, the net income for Gia, Incorporated, is $218,000.

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Par-value bond XYZ has a modified duration of 6. Which one of the following statements regarding the bond is true? Group of answer choices If the market yield increases by 1%, the bond's price will increase by $60. If the market yield increases by 1%, the bond's price will decrease by $50. If the market yield increases by 1%, the bond's price will decrease by $60. If the market yield increases by 1%, the bond's price will increase by $50.

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The correct statement regarding the par-value bond XYZ with a modified duration of 6 is "If the market yield increases by 1%, the bond's price will decrease by $60."

Modified duration is a measure of the bond's sensitivity to changes in interest rates, and it provides an estimate of the percentage change in the bond's price for a given change in the yield. A modified duration of 6 means that if the yield increases by 1%, the bond's price is expected to decrease by 6%. To calculate the dollar price change, we need to multiply the bond's price by its modified duration and the change in yield as a decimal. In this case, if the bond's price is $1000, a 1% increase in yield would result in a price decrease of 6% x $1000 = $60. Therefore, the correct statement is that if the market yield increases by 1%, the bond's price will decrease by $60. The other options are incorrect as they do not take into account the modified duration of the bond.

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A cement manufacturer has supplied the following data: Tons of cement produced and sold 266,000 Sales revenue $ 1,197,000 Variable manufacturing expense $ 435,000 Fixed manufacturing expense $ 232,000 Variable selling and administrative expense $ 97,000 Fixed selling and administrative expense $ 222,000 Net operating income $ 211,000 What is the company's unit contribution margin

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Thus, the company's unit contribution margin is $2.50 per ton of cement sold. This means that after accounting for variable costs, the company earns $2.50 for each ton of cement it sells, which contributes to covering fixed expenses and generating net operating income.

The unit contribution margin is a key financial metric that represents the revenue per unit sold after accounting for variable costs associated with producing and selling each unit.

To calculate the unit contribution margin, you need to subtract the variable manufacturing expense and variable selling and administrative expense from the sales revenue, then divide the result by the number of units sold.

In this case, the cement manufacturer has provided the following data:
- Tons of cement produced and sold: 266,000
- Sales revenue: $1,197,000
- Variable manufacturing expense: $435,000
- Variable selling and administrative expense: $97,000

First, calculate the total variable expenses by adding variable manufacturing and selling expenses:
Total variable expenses = $435,000 + $97,000 = $532,000

Next, subtract the total variable expenses from the sales revenue:
Contribution margin = Sales revenue - Total variable expenses = $1,197,000 - $532,000 = $665,000

Now, divide the contribution margin by the number of units sold to find the unit contribution margin:
Unit contribution margin = Contribution margin / Units sold = $665,000 / 266,000 = $2.50

Therefore, the company's unit contribution margin is $2.50 per ton of cement sold. This means that after accounting for variable costs, the company earns $2.50 for each ton of cement it sells, which contributes to covering fixed expenses and generating net operating income.

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Which component of a nation's balance of payments recognizes the purchase and sale of real and financial assets between nations

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The component of a nation's balance of payments that recognizes the purchase and sale of real and financial assets between nations is called the capital account.

The capital account is a subcategory of the balance of payments that records all international transactions related to long-term investments and capital movements.
The capital account consists of two major sub-accounts: the financial account and the capital transfers account. The financial account tracks transactions related to the purchase and sale of financial assets such as stocks, bonds, and currencies.

It also includes foreign direct investment (FDI), which refers to the acquisition of a controlling stake in a foreign company. FDI can involve the purchase of real assets, such as property and equipment, as well as intangible assets, such as patents and trademarks.
The capital transfers account, on the other hand, records capital transfers between countries, such as debt forgiveness, migrants' transfers, and donations.
The capital account is an important indicator of a country's economic health, as it reflects the flow of investments into and out of a country.

A positive capital account balance indicates that a country is receiving more foreign investments than it is investing abroad, which can be beneficial for economic growth.

Conversely, a negative balance suggests that a country is investing more abroad than it is attracting in foreign investments, which can lead to a decrease in economic growth.

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If one rates an average employee's performance high because one compared the employee to poor performers, one commits a

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If one rates an average employee's performance high because one compared when an employee is paid on a commission and piece rate basis, their work efficiency goes up, which also boosts productivity in the workplace.

But one of the drawbacks of this type of payment for the employee is that he won't be able to earn anything if he doesn't work up to the specified target or if he doesn't work at all. There are therefore equally as many benefits and drawbacks for each kind of payment.

A sales commission is a payment made to an employee when they successfully complete a task, typically selling a specified volume of goods or services. Employee task efficiency increases when they are paid on a commission or piece rate basis, which also raises workplace productivity. The employee will not be able to earn anything if he does not work up to the given aim or if he does not work at all, which is one of the disadvantages of this sort of payment. Therefore, each type of payment has an equal number of advantages and disadvantages.

Complete question:

If one rates an average employee's performance high because one compared the employee to poor performers, one commits a commission.

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In order to determine the materials price variance, the actual quantity x standard price is subtracted from the ___________.

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The real amount x standard price is deducted from the actual quantity bought in order to calculate the materials price variance.

The difference between the standard price and the real price multiplied by the actual amount is hence known as the material price variance. This formula is used to determine price variance: Vmp is equal to Actual Quantity Purchased * (Actual Unit Cost - Standard Unit Cost).

Purchase Price Variance (PPV) in procurement is the discrepancy between a material's standard price and its actual price. Purchase Price Variance is simply equal to (Actual Price - Standard Price) x Quantity Bought. Cost variance is the difference between a project's anticipated cost and its actual cost after taking into account any unforeseen costs or savings. Cost variance is calculated using the following formula: Actual cost less projected cost

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Legally, a general partnership has a limited life and each partner has unlimited personal liability. Group startsTrue or False

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The given statement " Legally, a general partnership has a limited life and each partner has unlimited personal liability" is true.

A general partnership is a commercial entity in which two or more people share ownership and administration of a company. A general partnership has a finite life, which means that it will end if one of the partners dies, withdraws from the partnership, or is dissolved by mutual agreement.

Furthermore, each partner bears unlimited personal culpability for the partnership's debts and liabilities. This means that each partner is personally liable for the partnership's debts, even if they surpass the partner's initial contribution.

Individuals considering forming a partnership should be aware of the legal implications and take steps to protect themselves and their assets.

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Lucas Co. is considering a project that requires $8,000 initial cost. The project genrates the following cash flows in the next 4 years. What is the discounted payback period of this project

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The discounted payback period of this project is 3.55 years.

To calculate the discounted payback period of the project, we need to first calculate the present value of each cash flow using a discount rate. Let's assume a discount rate of 10%.

Year 1: $3,000 / (1 + 0.10)^1 = $2,727.27

Year 2: $3,500 / (1 + 0.10)^2 = $2,739.67

Year 3: $2,500 / (1 + 0.10)^3 = $1,705.31

Year 4: $1,500 / (1 + 0.10)^4 = $1,013.27

We then need to calculate the cumulative present value of the cash flows until we recover the initial investment of $8,000.

Cumulative PV of cash flows:

Year 1: $2,727.27

Year 2: $5,466.94

Year 3: $7,172.25

Year 4: $8,185.52

Since the cumulative PV of cash flows at the end of year 3 is less than the initial investment, we need to add the discounted cash flow of year 4 to the cumulative PV of cash flows at the end of year 3 to find the discounted payback period.

Discounted cash flow of year 4: $1,013.27 / (1 + 0.10)^3 = $822.70

Cumulative PV of cash flows at end of year 3: $7,172.25

Discounted payback period: Year 3 + ($822.70 / $1,500) = Year 3.55

Therefore, the discounted payback period of this project is 3.55 years.

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In a make or buy decision, the reliability of a potential supplier is Select one: a. an irrelevant decision factor b. relevant information if it can be quantified c. a qualitative decision factor d. an opportunity cost of continued production

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The reliability of a potential supplier is a relevant decision factor if it can be quantified. Therefore, option (b) is the correct answer.

The reliability of a potential supplier can be evaluated based on various factors such as past performance, financial stability, quality standards, and delivery time. By quantifying these factors, a company can make an informed decision about whether to make or buy a particular product or service.

When a company is considering a make or buy decision, it is trying to decide whether to produce a product or service in-house (make) or outsource it from an external supplier (buy). This decision can have significant implications for the company's cost structure, quality, and competitiveness.

One of the factors that a company needs to consider when making a make or buy decision is the reliability of the potential supplier. The reliability of a supplier refers to their ability to deliver products or services that meet the company's expectations consistently.

To evaluate the reliability of a potential supplier, a company can use various quantitative metrics, such as on-time delivery rate, defect rate, and lead time. The company can also consider the supplier's financial stability, their history of meeting quality standards, and their ability to scale production up or down as needed.

If the potential supplier has a high level of reliability based on these metrics, the company may be more likely to outsource the product or service to them. On the other hand, if the supplier's reliability is low, the company may choose to produce the product or service in-house to maintain better control over quality and delivery.

Therefore, the reliability of a potential supplier is a relevant decision factor that can influence a company's make or buy decision. By quantifying the reliability of the supplier, the company can make an informed decision and mitigate the risks associated with outsourcing.

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What impact does a bargain purchase option have on the present value of the minimum lease payments computed by the lessee

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A bargain purchase option in a lease agreement allows the lessee (the person leasing the asset) to purchase the leased asset at the end of the lease term for a price significantly lower than its fair market value.

The presence of a bargain purchase option has a significant impact on the present value of the minimum lease payments computed by the lessee. The minimum lease payments computed by the lessee include both the base lease payments and any residual value guarantees. The inclusion of a bargain purchase option reduces the present value of the minimum lease payments because it increases the likelihood that the lessee will exercise the option to purchase the asset at a bargain price. As a result, the overall cost of the lease to the lessee is reduced, and the present value of the minimum lease payments is lower.

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factors in the workplace will lower satisfaction and cause employees to focus even more on hygiene factors, which will produce feelings of dissatisfaction

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There are several factors in the workplace that can lower employee satisfaction and cause them to focus more on hygiene factors. Hygiene factors refer to basic needs such as salary, job security, working conditions, and company policies. When these factors are not met, employees are likely to feel dissatisfied and may become disengaged from their work.

One factor that can lower satisfaction is a lack of recognition and feedback. Employees want to feel appreciated for their hard work and want to know that their efforts are making a difference. If managers do not provide regular feedback and recognition, employees may feel undervalued and dissatisfied. Another factor that can lower satisfaction is poor communication. When managers do not communicate effectively with their employees, it can lead to confusion, frustration, and misunderstandings.

Employees want to know what is expected of them and what is happening within the company. If this information is not provided, employees may feel disconnected from their work and colleagues. Additionally, a lack of growth opportunities can lead to dissatisfaction. Employees want to feel like they are developing their skills and advancing in their careers.

If there are no opportunities for growth or advancement, employees may feel stuck in their roles and may start to look for opportunities elsewhere. Overall, it is important for employers to pay attention to these factors and address any issues that may be causing dissatisfaction among their employees. By doing so, employers can create a positive work environment that fosters employee engagement and job satisfaction.

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The intermediate- and short-term plans created within a work group typically address the _______ goals and strategies of an organization.

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The intermediate- and short-term plans created within a work group typically address the operational goals and strategies of an organization. These plans are designed to ensure that the organization's objectives are met efficiently and effectively within a specific timeframe.

The intermediate- and short-term plans created within a work group typically address the operational goals and strategies of an organization. These plans are developed to ensure that the day-to-day operations of the organization are aligned with its overall objectives and mission. The intermediate-term plans typically cover a period of one to three years and are developed to achieve specific goals or objectives within that timeframe. The short-term plans, on the other hand, typically cover a period of one year or less and are developed to address immediate issues or challenges facing the organization. Both types of plans are critical to the success of an organization, as they help to ensure that resources are allocated effectively and that progress towards achieving the organization's goals is regularly assessed and monitored.

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The intermediate- and short-term plans created within a work group typically address the tactical goals and strategies of an organization. These plans focus on the specific actions and tasks that need to be taken in order to achieve the overall goals of the organization.

Tactical goals and strategies are those that relate to the day-to-day operations of an organization. They are focused on achieving specific, measurable outcomes that contribute to the overall success of the organization. This might include things like increasing sales, reducing costs, improving customer satisfaction, or developing new products or services.

When work groups create intermediate- and short-term plans, they are typically focused on achieving these tactical goals and strategies. This involves breaking down the larger goals of the organization into smaller, more manageable tasks and identifying the specific actions that need to be taken to achieve them. By doing this, work groups can create a roadmap for achieving success in the short and medium term, while also contributing to the long-term success of the organization.

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If inflation is anticipated to be 10 percent during the next year while a nominal rate of 20 percent will be earned on U.S. Treasury bills, then what is the accurate real rate of return on these securities

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The accurate real rate of return on U.S. Treasury bills is 10 percent

To calculate the real rate of return on U.S. Treasury bills, we need to subtract the anticipated inflation rate from the nominal rate of return. In this case, the nominal rate of return on U.S. Treasury bills is 20 percent, and the anticipated inflation rate is 10 percent.

Real rate of return = Nominal rate of return - Anticipated inflation rate

Real rate of return = 20% - 10%

Real rate of return = 10%

Therefore, the accurate real rate of return on U.S. Treasury bills is 10 percent. This means that after accounting for inflation, the purchasing power of the return on these securities will have increased by 10 percent. It's important to consider inflation when evaluating the return on investments, as it erodes the value of money over time and can significantly impact the actual value of the return.

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beta of .87. The market risk premium is 8.6 percent and the risk-free rate is 3.7 percent. What is the expected return on Ernst Electric stock

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Beta of .87. The market risk premium is 8.6 percent and the risk-free rate is 3.7 percent. The expected return on Ernst Electric stock is 9.81 percent.

Ernst Electric's beta is given as 0.87, the market risk premium is 8.6 percent, and the risk-free rate is 3.7 percent. To calculate the expected return on the stock using the Capital Asset Pricing Model (CAPM), we use the following formula:

Expected Return = Risk-Free Rate + Beta x Market Risk Premium

Plugging in the given values, we get:

Expected Return = 3.7% + 0.87 x 8.6% = 9.81%

Therefore, the expected return on Ernst Electric stock is 9.81 percent, according to the CAPM.

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In the context of knowledge management, which task is performed by the chief knowledge officer (CKO) in an organization

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The chief knowledge officer (CKO) in an organization is responsible for managing and leveraging the organization's knowledge assets.

The CKO's primary task is to oversee the development and implementation of strategies for knowledge management, including the identification, capture, storage, sharing, and use of knowledge within the organization.

They work closely with other senior executives and managers to ensure that knowledge management practices align with the organization's goals and objectives.

Additionally, the CKO may lead efforts to develop and implement knowledge-sharing technologies, facilitate communities of practice, and promote a culture of knowledge-sharing and collaboration within the organization.

Overall, the CKO plays a critical role in helping organizations leverage their knowledge assets to improve performance and gain a competitive advantage.

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Motivating workers through ________ relies on the workers desiring personal growth and having the necessary skills. Motivating workers through ________ relies on the workers desiring personal growth and having the necessary skills. task identity job enlargement job design task variety

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Motivating workers through c. job design relies on the workers desiring personal growth and having the necessary skills.

Job design is the process of organizing and structuring job tasks, responsibilities, and duties to optimize employee performance and satisfaction. This approach considers individual preferences, abilities, and aspirations when crafting roles, ensuring that employees feel motivated and engaged in their work.

Two critical components of job design are task identity and task variety. Task identity refers to the degree to which a job requires completion of a whole and identifiable piece of work. When employees can see the results of their efforts and feel a sense of accomplishment, they are more likely to be motivated and take pride in their work. Task variety, on the other hand, involves providing workers with a range of activities and challenges within their job. This prevents boredom and increases engagement, as employees feel stimulated by new and diverse responsibilities.

In conclusion, motivating workers through job design, including elements such as task identity, task variety, and job enlargement, relies on employees having the necessary skills and a desire for personal growth. By thoughtfully crafting job roles to accommodate individual preferences and abilities, employers can optimize performance, satisfaction, and motivation within the workplace. Therefore, Option C is correct.

The Question was Incomplete, Find the full content below :

Motivating workers through ________ relies on the workers desiring personal growth and having the necessary skills.

a) task identity

b) job enlargement

c) job design

d) task variety

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The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31, Year 1: Cash $ 4,000 Accounts receivable $ 3,400 Dividends 2,000 Common stock 3,900 Land 3,200 Revenue 3,200 Accounts payable 1,800 Expense 2,200 What is net income that will be shown on Carolina's Year 1 income statement

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To determine the net income that will be shown on Carolina Company's Year 1 income statement, we need to calculate the total revenues and total expenses.


Net income can be calculated by subtracting total expenses from total revenue. So, net income for Carolina Company in Year 1 will be $1,000 ($3,200 - $2,200).  It's important to note that the pre-closing accounts and balances do not include all accounts that will be used in the final financial statements. For example, we do not see any information on interest expense, taxes, or other items that may impact the net income calculation. Additionally, we do not see any information on the timing of when revenue and expenses were recognized. However, based on the information provided, we can conclude that Carolina Company had a net income of $1,000 in Year 1.

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Terms of trade is the​ ____________. A. benefit received from trade. B. legal document that trading partners sign. C. exchange rate of goods for goods. D. time required to produce a good or service that is traded.

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Terms of trade refer to the exchange rate of goods and services between two trading partners. It is the ratio at which a country can trade its goods and services for those of another country.

Specifically, it measures the quantity of imports that a country can obtain for a unit of its exports. A higher terms of trade means that a country can acquire more imports for a given amount of exports, while a lower terms of trade means that a country must export more to obtain the same amount of imports. Therefore, the correct answer to the question is option C: exchange rate of goods for goods. The terms of trade are important for a country because they affect the country's economic growth, international competitiveness, and standard of living. A favorable terms of trade can lead to increased income and economic growth, while an unfavorable terms of trade can have the opposite effect. As such, policymakers and businesses need to monitor and manage the terms of trade to ensure they are benefiting their country or organization.

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Variances between plant budgets and actual expenditures for plant assets should be subject to review and approval of

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The review and approval of variances between plant budgets and actual expenditures are critical in ensuring that the plant assets are managed effectively. By subjecting these variances to review, the management can identify the root causes of the discrepancies and take appropriate action to address them, thus improving the overall financial performance of the plant.

Plant budgets are essential in managing plant assets and ensuring that the business operations run smoothly. However, it is not uncommon for variances to occur between the plant budgets and actual expenditures. These variances can be due to various factors, including unexpected maintenance costs, changes in the market, or poor budgeting. To ensure that these variances are managed properly, it is important that they are subject to review and approval by the appropriate personnel.

This could include the plant manager, the finance department, and other key stakeholders. By reviewing the variances, the management can identify the root causes of the discrepancies and take appropriate action to address them. The approval process for the variances should involve a thorough analysis of the budget and the actual expenditures. This analysis should identify the specific areas where the variances occurred and evaluate the impact on the plant's overall financial performance. Based on this analysis, the management can make informed decisions on how to manage the variances effectively.

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A firm may decide to eliminate the threat of a takeover by a major shareholder by purchasing shares from him at a premium also known as a(n) ________.

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A firm may decide to eliminate the threat of a takeover by a major shareholder by purchasing shares from him at a premium, which is also known as a "greenmail."


To provide a brief explanation, greenmail is a practice where a company buys back its shares from a potential acquirer at a higher price than the market value to prevent a hostile takeover.

This strategy benefits the major shareholder, as they receive a premium for their shares, but also protects the company from an unwanted acquisition.


In summary, a firm can prevent a takeover by a major shareholder through the use of greenmail, which involves buying back shares at a premium.

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We are planning a reception for our daughter. The hall that we are renting charges a $50 cleanup fee. In addition to the cleanup fee, they charge $18 per guest for food and drinks. If we have $2,100.00 available, what is the maximum number of guest we can invite without going over our budget

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you can invite a maximum of 30 guests without going over your budget.

To determine the maximum number of guests you can invite without going over your budget of $2,100.00, you need to first calculate the cost per guest. This will be the sum of the cleanup fee and the cost for food and drinks, which is $50 + $18 = $68.  To determine the maximum number of guests you can invite for your daughter's reception without going over your budget of $2,100, consider the renting charges, which include a $50 cleanup fee and an $18 per guest charge for food and drinks.

Next, you need to divide your total budget by the cost per guest: $2,100.00 ÷ $68 = 30.88 Since you can't invite a fraction of a person, you should round down to the nearest whole number. Therefore, you can invite a maximum of 30 guests without going over your budget.

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provide loans to small businesses and may act as factors for accounts receivable. a. Consumer finance companies b. Sales finance companies c. Business finance companies d. None of the above

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Option c is the appropriate response. Small businesses can get loans from business finance companies, which can also factor their receivables.


Business finance companies are the kind of organizations that lend money to small businesses and could be used as factors for accounts receivable. These businesses focus on providing loans and factoring services to businesses as well as other financial services to help them develop and effectively manage their finances.

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True or false: When a company has a skill that is difficult to articulate, it is easier for that company to enter a foreign market through a greenfield venture.

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False, When a company has a skill that is difficult to articulate, it can be challenging for the company to enter a foreign market through a greenfield venture.

A greenfield venture is a type of market entry strategy where a company starts a new venture from scratch in a foreign country. To be successful, the company must have a clear understanding of the local market, culture, regulations, and business environment. If the company has a skill that is difficult to articulate, it may face difficulties in communicating its value proposition to potential customers and partners in the foreign market.

This could lead to a lack of understanding and trust, which could ultimately hinder the success of the venture. Therefore, it is important for the company to articulate its unique value proposition clearly, regardless of whether the skill is difficult to articulate or not, to ensure a successful entry into a foreign market.

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Blossom Company produces one product, a putter called GO-Putter. Blossom uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 145,000 units per year. The total budgeted overhead at normal capacity is $942,500 comprised of $290,000 of variable costs and $652,500 of fixed costs. Blossom applies overhead on the basis of direct labor hours. During the current year, Blossom produced 81,600 putters, worked 87,300 direct labor hours, and incurred variable overhead costs of $259,120 and fixed overhead costs of $311,400. (a) Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places, e.g. 2.75.)

Answers

The predetermined variable overhead rate is $2.00 per direct labor hour, and the predetermined fixed overhead rate is $4.50 per direct labor hour. The total overhead applied to production during the current year is $567,450.

To compute the predetermined variable overhead rate, we need to divide the budgeted variable overhead cost by the budgeted direct labor hours at normal capacity.

Predetermined variable overhead rate = Budgeted variable overhead cost / Budgeted direct labor hours

= $290,000 / (145,000 hours)

= $2.00 per direct labor hour

To compute the predetermined fixed overhead rate, we need to divide the budgeted fixed overhead cost by the budgeted direct labor hours at normal capacity.

Predetermined fixed overhead rate = Budgeted fixed overhead cost / Budgeted direct labor hours

= $652,500 / (145,000 hours)

= $4.50 per direct labor hour

Using the predetermined overhead rates, we can then apply overhead to the actual direct labor hours worked during the current year.

Variable overhead applied = Predetermined variable overhead rate x Actual direct labor hours

= $2.00 x 87,300

= $174,600

Fixed overhead applied = Predetermined fixed overhead rate x Actual direct labor hours

= $4.50 x 87,300

= $392,850

Therefore, the total overhead applied to production during the current year is:

Total overhead applied = Variable overhead applied + Fixed overhead applied

= $174,600 + $392,850

= $567,450

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If the Standard and Poor's 500 Index is falling rapidly, it would be expected that the value of the VIX would:

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If the Standard and Poor's 500 Index is falling rapidly, it would be expected that the value of the VIX would increase.

The VIX is commonly known as the "Fear Index" as it measures the expected volatility of the S&P 500 over the next 30 days. When the market is experiencing high levels of uncertainty or fear, investors tend to demand more premium to purchase options to protect themselves from further downside risk. This results in an increase in the VIX.

Conversely, when the market is calm and investors are more confident, the VIX tends to decrease. Therefore, if the S&P 500 Index is falling rapidly, it indicates a high level of uncertainty in the market, which would lead to an increase in the VIX. Overall, the relationship between the S&P 500 Index and the VIX is inversely proportional. When one is going up, the other is likely to go down, and vice versa.

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Unlike For Profit organizations, the first step in the closing process is generally to close revenue. What should be the first step in closing for an entity that uses Fund accounting

Answers

You will close the revenue and expenditure accounts and update the Fund Balance account accordingly, which represents the first step in the closing process for an entity that uses Fund accounting.


In a Fund accounting system, unlike for-profit organizations, the first step in the closing process is to close revenue and expenditures accounts to the Fund Balance account. Here is a step-by-step explanation: Close Revenue accounts: Debit each Revenue account and credit the Fund Balance account with the total revenue balance. This step will reduce the revenue accounts to zero and increase the Fund Balance. Close Expenditure accounts: Credit each Expenditure account and debit the Fund Balance account with the total expenditure balance. This step will reduce the expenditure accounts to zero and decrease the Fund Balance.

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The first step in closing for an entity that uses Fund accounting is to close the fund balances. In Fund accounting, each fund has its own balance sheet, which means that the first step in the closing process is to close out the balances for each individual fund. This is different from For Profit organizations where the main focus is on closing revenue.

The closing process in Fund accounting typically involves several steps. The first step is to close out the balances for each fund, which means that all revenues and expenses for the period are moved to the fund balance sheet. This is done to ensure that the financial statements accurately reflect the financial position of each individual fund.

Once the fund balances have been closed, the next step is to prepare the financial statements for each fund. This includes preparing a statement of revenues, expenditures, and changes in fund balances. The financial statements are then reviewed by management and auditors to ensure that they are accurate and complete.

Finally, after the financial statements have been prepared and reviewed, the books are closed for the period. This involves making any necessary adjustments to the accounts, reconciling the accounts, and preparing the closing entries. Once the books are closed, the entity is ready to begin the next period.

In summary, the first step in closing for an entity that uses Fund accounting is to close the fund balances. This involves moving all revenues and expenses for the period to the fund balance sheet. The closing process in Fund accounting typically involves several steps, including preparing financial statements and closing the books for the period.

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The demand curve for loanable funds represents _____ and is _____. borrowers; downward sloping borrowers; horizontal savers; horizontal savers; downward sloping

Answers

The correct answer is:The demand curve for loanable funds represents borrowers and is downward sloping.


The demand curve for loanable funds represents borrowers and is downward sloping. This means that as the interest rate increases, borrowers demand fewer loans, and as the interest rate decreases, borrowers demand more loans. A detail explanation of this is that when the interest rate is high, the cost of borrowing is also high, making it less attractive for borrowers to take out loans. As a result, they may delay or reduce their borrowing activities, leading to a decrease in the demand for loanable funds. On the other hand, when the interest rate is low, borrowing becomes cheaper, and borrowers are more willing to take out loans, increasing the demand for loanable funds. Therefore, the downward sloping demand curve for loanable funds indicates an inverse relationship between the interest rate and the demand for loans by borrowers.


In more detail, the demand curve for loanable funds shows the relationship between the quantity of loanable funds demanded and the interest rate. As the interest rate decreases, the quantity of loanable funds demanded by borrowers increases, leading to a downward sloping curve.

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Individuals who believe they have the capacity and know-how to start a business, and who are not burdened by fear of failure, are ______ entrepreneurs according to the GEM study.

Answers

Individuals who believe they have the capacity and know-how to start a business, and who are not burdened by fear of failure, are known as opportunity entrepreneurs according to the Global Entrepreneurship Monitor (GEM) study.

Opportunity entrepreneurs are individuals who are motivated by the potential rewards and opportunities of starting a business. They are not afraid to take risks and are willing to invest time and resources into their venture. These individuals are often characterized by a sense of confidence and optimism, which allows them to pursue their goals despite potential obstacles. On the other hand, necessity entrepreneurs are those who start a business out of necessity rather than opportunity.

They may be driven by the need to generate income or support themselves and their families. Necessity entrepreneurs may not have the same level of confidence or resources as opportunity entrepreneurs, and may be more risk-averse. Overall, the GEM study highlights the importance of identifying and supporting opportunity entrepreneurs, who are seen as key drivers of economic growth and innovation. By providing the necessary resources and support, governments and organizations can help these individuals turn their ideas into successful businesses, creating jobs and driving economic development.

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