Answer:
12%
Explanation:
The computation of the expected return on the market is shown below:
As we know that
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
11.1% = 5.55% + 0.86 × (Market rate of return - 5.55%)
So, the market rate of return is
= (11.1% - 5.55%) ÷ 0.86 + 5.55%
= 12%
Also , The Market rate of return - Risk-free rate of return) is also known as the market risk premium
You deposit $2,200 in a bank account that pays 11% stated annual interest compounded continuously. What is the value of your investment at the end of 7 years? Please round your answer to the nearest hundredth.
Answer: $4,751.49
Explanation:
When the compounding is continuous, the following expression is used;
Amount = P * (e)^rt
= 2,200 * (e) ^ ( 0.11 * 7)
= 4751.485758
= $4,751.49
Which of the following would reduce inventory costs thereby reducing operations costs?
A. Increasing inventory dollar days
B. Increasing inventory turnover
C. Increasing order lead time
D. Increasing safety stock
Answer: B. Increasing inventory turnover
Explanation:
Increasing inventory turnover would reduce inventory costs thereby reducing operations costs. Since there's increase in inventory turnover, it means that there's an increase in demand or sales or generally production level has risen.
This will therefore help to reduce inventory costs thereby reducing operations costs.
the acme corporation believes that the production of its product in its present facilities will assume logistic growth. these facilities limit production to at most 600 units per day. presently 240 units per day are produced. the production will increase to 360 units per day in one year. what is the anticipated daily production 5 years from now
Answer:
594 units
Explanation:
We must apply the logistics growth model, since applying linear or exponential growth will result in numbers which are much higher than the total production capacity of this facility. When we use the logistics growth model, the growth rate decreases as the resource limit approaches.
f(x) = c / (1 + ae⁻ᵇˣ)
initial value = c / (1 + a) = 240
600 = 240 + 240a
360 = 240a
a = 1.5
b = growth rate = (360 - 240) / 240 = 0.5
x = 5
e = 2.71828
f(x) = 600 / [1 + [1.5 x (2.71828⁻⁵) = 600 / 1.010106954 = 593.9965 = 594 units
started working as a hostess at a local restaurant one month ago. She feels like she is doing a good job but would like to know what her manager thinks about her performance. What job characteristic is Jennie's role lacking? task identity feedback autonomy task significance skill variety
Answer:
Feedback
Explanation:
Jennie's role is lacking feedback. Here manager has not taken time to analyze her role in the restaurant.
Based on her job role, feedback is an information that Jennie would get after an evaluation or analysis of her work from her manager. Feedback would enable her to know what she has been doing right and also what she has been doing wrong so that she can effect positive changes where necessary.
Hogan Inc. reported 2019 earnings per share of $3.26 and had no discontinued operations. In 2020, earnings per share on income from continuing operations was $2.99, and earnings per share on net income was $3.49. Do you consider this trend to be favorable? Why or why not?
Answer:
This trend is considered unfavorable
Explanation:
It is given that the firm earning per share in 2019 was $3.26 and had no discontinued operation. It means that earnings per share on income from continuing operation in 2019 was $3.26. In 2020, earning per share on income from continuing operation was $2.99 only. It evidences that earnings per share on income from continuing operations has declined by $0.47 (from $3.26 to $2.99) and so it (this trend) is considered unfavorable. We need to also understand that in 2020, earning per share on net income of $3.49 indicates that the firm has earned profit on the discontinued operation. It is not a regular activity to consider while analyzing firm profitability trend.
Copper Manufacturing has prepared the following monthly flexible manufacturing overhead budget for its Mixing Department:
COPPER MANUFACTURING
Monthly Flexible Manufacturing Overhead Budget
Mixing Department
Activity level
Direct labor hours 3,000 4,000
Variable costs
Indirect materials $3,000 $4,000
Indirect labor 15,000 20,000
Factory supplies 4,500 6,000
Total variable 22,500 30,000
Fixed costs
Depreciation 20,000 20,000
Supervision 12,000 12,000
Property taxes 15,000 15,000
Total fixed 47,000 47,000
Total costs $69,500 $77,000
Prepare a flexible budget at the 5,000 direct labor hours of activity.
Answer:
Factory supplies 4,500 6,000
Total variable 22,500 30,000
Fixed costs
Depreciation 20,000 20,000
Supervision 12,000 12,000
Property taxes 15,000 15,000
Total fixed 47,000 47,000
Total costs $69,500 $77,000
A flexible budget at the 5,000 direct labor hours of activity is comes out with total cost of production to the tune of $84500.
What is a flexible Budget?Budgets which are flexible can be changed to reflect changes in revenue and expenses during the fiscal year, taking into account anticipated unpredictability is known as Flexible budget. Companies first take into consideration expected fixed costs, or at least those that they don't anticipate changing as the year goes on.
Copper Manufacturing has prepared the following monthly flexible manufacturing overhead budget for its Mixing Department:
The Flexible budget for 5000 direct labor hours can be worked out as following:
a) Direct labor hours 3,000 4,000 5000
b) Factory supplies 4,500 6,000 7500
c) Total variable Cost 22,500 30,000 37,500
d) Fixed costs ($)
Depreciation 20,000 20,000 20,000
Supervision 12,000 12,000 12,000
Property taxes 15,000 15,000 15,000
Total fixed Cost 47,000 47,000 47,000
Total costs $69,500 $77,000 $84,500
Therefore the total cost of production as per flexible budget is to the tune of $84,500 with increase in 1000 Direct labor hours the per unit cost rise by $7.5 per hour.
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The Jennings Group reacquired 2 million of its shares at $50 per share as treasury stock. Last year, for the first time, Jennings sold 1 million treasury shares at $51 per share. If Jennings now sells the remaining 1 million treasury shares at $47 per share, by what amount will retained earnings decline
Answer:
-$2,000,000
Explanation:
Given the following :
Number of shares reacquired = 2 million
Price per share = $50
For the first time ;°
Number of shares sold = 1 million
Sales price per share = $51
Increase in Retained earnings : 1,000,000 × $(51 - 50) = 1,000,000 × $1 = $1, 000,000
Loss made from reacquizition:
Of the 2 million reacquired.
1,000,000 was sold at $47
Loss per share = ($50 - $47) = $3
Reduction in retained earning = (1,000,000 * $3) = - $3,000,000
Net total = $(1,000,000) - $3,000,000) = -$2,000,000
What is one drawback shared by both monopolies and oligopolies?
A. They do not have the capital needed for research.
B. They allow more businesses to form in industries.
C. They devote too much money to advertising.
D. They can harm consumers by fixing prices.
Answer:A.They can harm consumers by fixing prices.
One drawback of both monopolies and oligopolies is that they can harm consumers by fixing prices. Thus, the correct answer is option D.
What is a monopoly market ?A monopoly is a market arrangement where one producer or seller holds a disproportionate amount of power within a given market. Monopolies are discouraged in free-market economies as they limit customer alternatives and stifle rivalry.
When there is insufficient rivalry, market structures called monopolies and oligopolies arise. An oligopoly occurs when a small number of comparatively big companies produce similar but slightly different goods, whereas a monopoly occurs when a single company produces goods that have no direct competitors. Both of these marketplaces harm customers by fixing prices and eliminating the advantages of competition in the economy.
Therefore, option D is one drawback shared by both monopolies and oligopolies.
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Uptown Men's Wear has accounts payable of $2214, inventory of $7950, cash if $1263, fixed assets of $8400, accounts receivable of $3907, and long term debt of $4,200. What is the value of the net working capital to total assets ratio?
Answer:
Net working capital to fixed assets = 0.50678 rounded off to 0.51
Explanation:
The value of total assets can be calculated by adding the value of current assets and the value of fixed assets.
Total assets = Current Assets + Fixed assets
Total assets = (7950 + 1263 + 3907) + 8400
Total Assets = $21520
The working capital is the difference between the value of current assets and the value of current liabilities.
Net Working capital = Current assets - Current Liabilities
Net working capital = (7950 + 1263 + 3907) - 2214
Net Working capital = $10906
The ratio of net working capital to fixed assets can be calculated by dividing the value of net working capital by the value of the fixed assets.
Net working capital to fixed assets = 10906 / 21520
Net working capital to fixed assets = 0.50678 rounded off to 0.51
Strategic management requires managers to take an integrative view of the organization. This is achieved when
Answer:
employees and work teams are empowered.
Explanation:
Every organization should be established with a motive to generate high and high revenues by do strategic planning so the things could go in a right way
The employees and the employer roles in the organization is very important
Due to the performance of the employees, the company could able to accomplish its predefined target so here the motivation, learning is required also working in a team could easy the task as compared to before at less time
Therefore the last option is correct
Benson, Inc., has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense of $1,850. The tax rate is 21%. What is the operating cash flow, or OCF?
Answer:
$21,290.1
Explanation:
The operating cash flow is computed as seen below;
Sales. $38,530
Less: Costs ($12,750)
$25,780
Less:depreciation ($2,550)
EBIT. $23,230
Less: Interest expense ($1,850)
$21,380
Less : 21% taxes ($4,489.9)
Earnings after taxes $16,890.1
Operating cash flow = EBIT + Depreciation - Taxes
= $23,230 + $2,550 - $4,489.9
= $21,290.1
A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.
Answer: $1.61
Explanation:
From the question, we are informed that a given inventory item has a per-year holding cost of $500 and that one method of shipping this item is three days faster than the other, but it is $2.50 more per unit.
Using the slower method would be 1.61 more expensive overall than using the faster method. To do this, the holding cost has to be multiplied by speed differential. From the result gotten, we will now divide by 365 since 365 days make a year.
After the figure had been gotten, we will ow compare it to the actual difference of the shipping cost.
A rights offering Question 16 options: a) is the least expensive way to raise capital. b) gives the firm a built-in market for new securities. c) will increase the shareholder's total valuation. d) will likely lead to considerably higher distribution costs.
Answer: b. gives the firm a built-in market for new securities.
Explanation:
Rights offering are issued by companies when such companies wants to generate additional capital. This may be necessary when such company wants to meet its financial obligations and therefore need extra capital.
A rights offering gives the firm a built-in market for new securities as the security holder are already aware of the company and just buys additional securities.
Decker Company assigns some of its patents to other enterprises under a variety of licensing agreements. In some instances advance royalties are received when the agreements are signed, and in others, royalties are remitted within 60 days after each license year-end. The following data are included in Decker’s December 31 balance sheet:
Year 1 Year 2
Royalties receivable $90,000 $85,000
Unearned royalties 60,000 40,000
During year 2 Decker received royalty remittances of $200,000. In its income statement for the year ended December 31, year 2, Decker should report royalty revenue of
A. $215,000
B. $220,000
C. $195,000
D. $225,000
Answer:
C. $195,000
Explanation:
Royalties Receivable as on 2016 $90,000
Add: Remittance Received $200,000
Less: Royalties Receivable as on 2015 $85,000
Total billed $205,000
Add: Unearned revenue - Recognized $60,000
Less: Unearned revenue- Deferred $70,000
Revenue for 2016 $195,000
Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 18,300,000 Net operating income $ 6,300,000 Average operating assets $ 36,400,000 Required: 1. Compute the margin. (Round your answer to 2 decimal places.) 2. Compute the turnover. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI).
Answer:
1. 34.43%
2. 0.50
3. 17.31%
Explanation:
Alyeska services company has a sale of $18,300,000
The net operating income is $6,300,000
The average operating assets is $36,400,000
(1) The margin can be calculated as follows
Margin= net operating income/sales ×100
= $6,300,000/18,300,000×100
= 0.34426×100
= 34.43%
(2) The assets turnover ratio can be calculated as follows
= Sales/Average operating assets
= $18,300,000/$36,400,000
= 0.50
(3) The Return on investment ROI can be calculated as follows
= Net operating income/Average Operating assets × 100
= $6,300,000/$36,400,000 × 100
= 0.17307×100
= 17.31%
Hence the margin, assets turnover ratio and ROI are 34.43%, 0.50 and 17.31% respectively
Teletubbies Inc.'s accounting records reflect the following information: Direct materials used $ 12,500 Raw materials, January 1 5,000 Raw materials, December 31 8,000 Work in process, January 1 50,000 Work in process, December 31 37,000 Manufacturing Overhead 5,500 Direct Labor 26,500 Total cost of goods manufactured for the year was:
Answer:
cost of goods manufactured= $57,500
Explanation:
Giving the following information:
Direct materials used $ 12,500
Work in process, January 1 50,000
Work in process, December 31 37,000
Manufacturing Overhead 5,500
Direct Labor 26,500
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 50,000 + 12,500 + 26,500 + 5,500 - 37,000
cost of goods manufactured= $57,500
Kirby, Inc. records a sale with a gross margin of $1,400. Which one of the following statements correctly describes the effect of such a sale on its balance sheet?
a. Common stock increases by $1,400
b. The sales revenue account increases by $1,400
c. The gross margin account increases by $1,400
d. The retained earnings account increases by $1,400
Answer:
Correct Answer:
d. The retained earnings account increases by $1,400
Explanation:
Gross margin in sales is the sales revenue a company retains after incurring the direct costs associated with producing the goods it sells, and the services it provides. For the Kirby Inc with gross margin of $1400, it shows that, its sales revenue retained after expenses is $1,400.
A middleman is a person who
A) specializes in arranging trades and selling, guaranteeing, and servicing items traded.
B) acts as a middle person between the top management of a business firm and the hourly employees who actually produce the goods and services.
C) adds to the seller's expense and the buyer's buying price without providing a service to either.
D) levies a tax on private sector activity and uses the funds to support government activities.
Answer:
A
Explanation:
A middleman is a link between a producer and a consumer. Middlemen includes wholesalers and retailers
Some of the functions of middlemen include
1. They provide information to the producers about consumers' tastes
2. they market producers goods and services
3. Middlemen render financial help to manufacturers.
Which of the following pairs are characteristics of pricesetters? A. Less competition and target costing B. Lack of product uniqueness and heavy competition C. Costplus pricing and less competition D. Less competition and lack of product uniqueness
Answer:
C. costplus pricing and less competition
You purchase 200 shares for $70 a share ($14,000), and after a year the price rises to $80. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense): 20 percent. Round your answer to one decimal place. % 45 percent. Round your answer to one decimal place. % 85 percent. Round your answer to one decimal place. %
Answer:
14.29%
Explanation:
Number of shares purchased= 200
Purchase price per share= $70
Year end price = $80
Total Investment cost = 200 shares * $70 per shares = $14,000
Percentage return earned on investment = Number of shares * (Year end price - Purchase price) / Investment
= 200 * ($80 - $70) / $14,000
= $2,000 / $14,000
= 0.142857
= 14.2857%
= 14.29%
All of the following are weaknesses of the payback method except:_______.
a. it is easy to calculate
b. it ignores cash flow beyond the payback period
c. present value of cash flows is not used
d. none of the above
Answer:
Correct Answer:
d. none of the above
Explanation:
Payback method is a simple accounting method used to projects incoming cash flows from a given project and identifies the break even point between profit and paying back invested money for a given process.
Omasini Corporation has provided the following data from its activity-based costing accounting system:
Supervisory wages $600,000
Factory supplies $200,000
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools Batch Processing Unit Processing Other Total
Supervisory wages 25% 60% 15% 100%
Factory supplies 40% 30% 30% 100%
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
How much supervisory wages and factory supplies cost would NOT be assigned to products using the activity-based costing system?
Wedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $52,500; Supervising, $28,600; and Other, $24,400. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
MHs (Processing) Batches (Supervising)
Product O6 18,500 1,400
Product D7 1,100 510
Total 19,600 1,910
The activity rate for the Processing activity cost pool under activity-based costing is closest to:___________
Answer:
1. Omasini corporation
Allocation of Supervisory wages and Factory Supplies to Other:
Supervisory wages = $600,000 x 15% = $90,000
Factory supplies = $200,000 x 30% = $60,000
Total = $150,000
Explanation:
a) Data and Calculations:
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools Batch Processing Unit Processing Other Total
Supervisory wages 25% 60% 15% 100%
Factory supplies 40% 30% 30% 100%
Factory Overhead:
Supervisory wages $600,000
Factory supplies $200,000
b) Omasini Corporation can use Activity-Based Costing technique as a costing method to identify activities, accumulate the costs based on activity pools, and allocate the same according to the actual consumption by each unit of service, department, or product. The idea behind this technique is to reduce arbitrary allocation of costs since costs are caused by activities and should be allocated based on the level of activity caused by a cost unit.
As people become more powerful, they tend to become less goal-oriented, less motivated, and more focused on gaining additional power.a) trueb) false
Answer: False
Explanation:
The statement that as people become more powerful, they tend to become less goal-oriented, less motivated, and more focused on gaining additional power is false.
When people become more powerful, such people become motivated to achieve organizational aims and achieve greater things. Also, they become more empowered which helps in increasing their job satisfaction and morale.
Bramble Corp. purchased a delivery truck for $38,800 on January 1, 2019. The truck has an expected salvage value of $1,800, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 14,700 in 2019 and 12,900 in 2020. (a1) Calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)
Answer:
$0.37
Explanation:
Depreciable cost = cost of asset - salvage value
$38,800 - $1,800 = $37,000
Depreciable cost per mile = $37,000 / 100,000 = $0.37
Globus Autos sells a single product. 8,300 units were sold resulting in $84,000 of sales revenue, $24,000 of variable costs, and $18,000 of fixed costs. If Globus reduces the selling price by $1.10 per unit, the new margin of safety is: (Round any intermedary calculations to the nearest cent.) A. 2,872 units B. 8,300 units C. 5,364 units D. 5,428 units
Answer:
Margin of safety= 5,364 units
Explanation:
First, we need to calculate the break-even point in units:
Selling price= 84,000/8,300= $10.12
Unitary variable cost= $2.89
New selling price= 10.12 - 1.1= $9.02
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 18,000 / (9.02 - 2.89)
Break-even point in units= 2,936 units
Now, the margin of safety:
Margin of safety= (current sales level - break-even point)
Margin of safety= 8,300 - 2,936
Margin of safety= 5,364 units
Executive recruiting director Owen Williams regularly uses his smartphone and the mobile version of LinkedIn to post job listings and connect to potential candidates. This is an example of ________ in action.
Answer:
mobile recruiting
Explanation:
Mobile recruiting refers to a process in which mobile devices are used to find potential candidates for a position through mobile career sites and apps. According to this, the answer is that this is an example of mobile recruiting because Owen Wilson is using his mobile device and the mobile version of LinkedIn to find candidates.
MacKenzie Company sold $680 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4.0% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment in approximately 5 days. The journal entry to record this sale transaction would be:_______.a. Debit Cash of $680 and credit Sales $680.b. Debit Cash of $680 and credit Accounts Receivable Regional $680.c. Debit Accounts Receivable Regional $652.8; debit Credit Card Expense $27.2 and credit Sales $680.d. Debit Cash $652.8; debit Credit Card Expense $27.2 and credit Sales $680.e. Debit Cash $652.8 and credit Sales $652.8.
Answer: d. Debit Cash $652.8; debit Credit Card Expense $27.2 and credit Sales $680
Explanation:
From the question we are informed that MacKenzie Company sold $680 of merchandise to a customer who used a Regional Bank credit card and that Regional Bank deducts a 4.0% service charge for sales on its credit cards.
We.are further told that MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment in approximately 5 days.
For the recording in the journal entry, it should be noted that there will be a card expense of (4% × $680) = $27.2 who will be debited, therefore cash to be debited will be: ($680 - $27.2 = $652.8) and there will be sales of $680 which will be credited.
Therefore, the answer is option d.
If your long-run costs exhibit increasing returns to scale,securing big orders leads you to:__________
A) Increase average costs
B) Reduce average costs
C) Keep the average costs constant
D) None of the above
Answer:
Option B, Reduce average costs, is the right answer.
Explanation:
Option B is correct because if there is an increasing return to scale that means the firm is using additional inputs and the use of these inputs increases the output in greater proportionate than the proportionate increase in inputs. Moreover, the output of the company will increase. Consequently, the total cost will also increase but the average cost of production will fall.
Determine the price of a 200,000 bond issue under the following idependent assumptions:
Maturity Interest paid Stated Rate Effective rate
a. 10 years annually 10% 12%
b. 10 years semiannually 10% 12%
c. 20 years semiannually 12% 12%
Answer:
1. Price of bond = $177,399.11
2. Price of bond = $177,060.16
3. Price of bond = $200,000
Explanation:
1) Price of Bond = pv(rate,nper,pmt,fv)
rate =12%
nper = 10
pmt (Coupon Amount) = 10%*200,000 = 20,000
fv = 200,000
Price of Bond = pv(12%, 10, 20,000, 200,000)
Price of Bond = $177,399.11
2) Price of Bond = pv(rate,nper,pmt,fv)
rate =12%*1/2 = 6%
nper = 10 *2 = 20
pmt (Coupon Amount) = 10% * 200,000 * 1/2 = 10,000
fv = 200,000
Price of Bond = pv(6%, 20, 10,000, 200,000)
Price of Bond = $177,060.16
3) Price of Bond = pv(rate,nper,pmt,fv)
rate =12%*1/2 = 6%
nper = 20 *2 = 40
pmt (Coupon Amount) = 12%*200,000*1/2 = 12,000
fv = 200,000
Price of Bond = pv(6%, 40, 12,000, 200,000)
Price of Bond = $200,000
You bought Sumsung stock for $45 on April 1. The stock paid a dividend of $2 on July 1, and had a price of $55. It is now Oct. 1, and the stock price is $50. Treasury bills yield 1%.
1. What was the arithmetic average quarterly return?
2. What was the standard deviation of quarterly returns?
3. What's your best guess for the Sharpe ratio of Samsung stock for the next quarter?
Answer:
1. the arithmetic average quarterly return = 8.79%
2. the standard deviation of quarterly returns = 17.8788%
3. the Sharpe ratio of Samsung stock for the next quarter= 0.435593
Explanation:
From the given question;
We use the EXCEL SOFTWARE TO CALCULATE THE:
the arithmetic average quarterly return
the standard deviation of quarterly returns &
the Sharpe ratio of Samsung stock for the next quarter
In the two diagram attached below, the first show the data entry and the output and the second diagram show how we compute the cell reference to estimate the answers.