Answer:
Adam = $41,000 , Ben = $31,000 , Erica =$20,000
Profit and loss sharing Ratio respectively =1:1:2
Requirement 1
Cash available $72,000
Add: Cash received from sale of $50,000
non-cash assets
$122,000
Less: Cash paid against account $20,000
receivables
Cash to be distributed $102,000
Distribution
Adam= $102,000 * 1/4 = $25,500
Ben = $102,000 * 1/4 = $25,500
Erica = $102,000 * 2/4 = $51,000
Requirement 2
Cash available $72,000
Add: Cash received from sale of $25,000
non-cash assets
$97,000
Less: Cash paid against account $20,000
receivables
Cash to be distributed $77,000
Distribution
Adam= $77,000 * 1/4 = $19,250
Ben = $77,000 * 1/4 = $19,250
Erica = $77,000 * 2/4 = $38,500
"A 7%, 15-year corporate bond is priced to yield 7.50%. For an investor in the 28% tax bracket, the equivalent tax free yield is:"
Answer:
The equivalent tax-free yield is:
10.42%
Explanation:
Tax-free yield = 7.5%/(1 - 28%)
= 10.42%
This equivalent tax-free yield is the yield of the 7%, 15-year corporate bond that will make it comparable to a municipal bond that is tax-free. To calculate the tax-free yield, we divide the yield rate by the inverse of the tax bracket. In this case, this yields 10.42%. This implies that for this corporate bond to be valued equally with a municipal tax-free bond, the yield must be at least 10.42%.
How should an organization design its structure and culture to obtain a core competence in manufacturing and in research and development? What is your reasoning?
Answer and Explanation:
core competency of an organization comprise it's multiple resource, capabilities and skills that gives it a competitive advantage in the market. It was originated in management theory by C. K. Prahalad and Gary Hamel.
For an organization to have core competencies in manufacturing and also research and development putting it's organizational structure and culture to use, it has to:
create a flexible and somewhat independent structure for it's research and development department such that innovation is easy. Control must be decentralized and the team must come first
For the manufacturing department, an organic and participative approach should be encouraged. This would allow inclusive management such that workers are included in decision making processes. Managers should also be given more independence while workers should increasingly be empowered
the organization should also take stringent measures in employing the right people for the research and development as well as the manufacturing department such that these individuals are qualified and possess the needed expertise for their areas. Staff should equally be empowered through constant education and new skill acquisitions and be allowed to impart this knowledge on other staff by encouraging transfers in global expansion.
You write one JNJ February 70 put for a premium of $5. Ignoring transactions costs, what is the break-even price of this position?
Answer:
$65
Explanation:
The calculation of the break even price for this position is given elow:
Break even price is
= Strike price - premium
= $70 - $5
= $65
The stock goes increase i.e. upwards to $65 so the amount that lose is only $5 but it declines than the stock would be $0
Therefore, the break even price of this position is $65
So, by using the above formula we can get the break even price and the same is to be considered
The top four most economically globalized countries according to KOF Swiss Economic Instituteâs 2007 rankings include:___________.
Answer:
The top four most economically globalized countries according to KOF Swiss Economic Instituteâs 2017 rankings include:___________.
Netherlands, Ireland, Belgium, and Austria.
Explanation:
The KOF Swiss Economic Institute's ranking of the most economically globalized countries is a ranking of the countries with businesses that have global influence and presence. The Institute which an index called the KOF Globalisation Index to measure the economic, social and political dimensions of globalisation and rank countries according to their performances.
Which of the following statements is true of radio-frequency identification (RFID) tags?
a. They can help identify genuine products from counterfeit knock-offs.
b. They are designed to learn more about customers' wants, needs, and behaviors.
c. They help firms gain competitive advantage by forecasting customer retention rates.
d. They help identify which customers should be the focus of targeted marketing initiatives.
Answer:
Correct Answer:
a. They can help identify genuine products from counterfeit knock-offs.
Explanation:
Radio-frequency identification (RFID) tags refers to a technology whereby digital data encoded in RFID tags are captured by a reader via radio waves. In general, RFID is similar to barcoding in that data from a tag or label are captured by a device that stores the data in a database.
Answer:
a. They can help identify genuine products from counterfeit knock-offs.
Explanation:
Radio-frequency identification: The term "radio-frequency identification" is also referred as RFID, and is described as a phenomenon that utilizes "electromagnetic fields" to track and identify different tags attached to various objects automatically. Therefore, a radio-frequency identification tag generally possesses a small "radio transponder" which is a radio transmitter and receiver. Lastly, when it is being triggered by any "electromagnetic interrogation pulse" from a closed RFID "reader device", then the tag tends to transmit some digital data i.e, inventory number to the reader.
The shareholders' equity of Green Corporation includes $332,000 of $1 par common stock and $520,000 par of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $62,000 in 2021 after paying $32,000 cash dividends in each of 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021
Answer:
$16,800
Explanation:
The computation of the amount of dividends common shareholders will receive in 2021 is shown below:-
Dividends per year for preferred stock = Par value × Cumulative preferred stock
= $520,000 × 7%
= $36,400
So, dividends in arrears for preferred stock for years is
For 2017 = Dividends per year for preferred stock - Cash dividend
= $36,400 - $32,000
= $4,400
For 2018 = For 2017 + (Dividends per year for preferred stock - Cash dividend)
= $4,400 + ($36,400 - $32,000)
= $8,800
Total dividends to be paid to preferred stockholders = For 2018 + Dividends per year for preferred stock
= $8,800 + $36,400
= $45,200
Finally
Dividends for common stockholders = Declared Cash Dividend - Total dividends to be paid to preferred stockholders
= $62,000 - $45,200
= $16,800
The IRS: a. requires official tax forms be obtained at the local IRS office. b. provides information on how to choose a stock. c. has an app for mobile phones. d. links to the H
Answer:
c. has an app for mobile phones.
Explanation:
The IRS refers to the Internal Revenue service handled by the government agency based on the Unites States. It is responsible for the tax collection and the imposition of the taxation law.
To check the status of your tax the IRS allows the application in the mobile devices so that everyone could access it anywhere anytime.
Therefore the correct option is c.
Equipment was acquired on January 1, 2021, for $33,000 with an estimated four-year life and $2,000 residual value. The company uses straight-line depreciation. Record the gain or loss if the equipment was sold on December 31, 2023, for $10,600.
Answer:
Gain= $850
Explanation:
Giving the following information:
Purchase price= $33,000
Useful life= 4 years
Residual value= $2,000
Sale= $10,600.
First, we need to calculate the annual depreciation:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (33,000 - 2,000)/4= $7,750
Now, we can calculate the accumulated depreciation:
Accumulated depreciation= 7,750*3= $23,250
To calculate the gain or loss, we need to use the following formula:
Gain/loss= selling price - book value
Book value= purchase price - accumulated depreciation
Book value= 33,000 - 23,250= $9,750
Gain/loss= 10,600 - 9,750
Gain= $850
You are told that for a certain linear program, that the Reduced Cost for x3 is -$0.78 and that the Shadow Price for Constraint 3 is $2.15. The total revenue is currently $256.58. If the producer decided to purchase three more units of b3 (input 3), what would happen to the firm's total revenue?
Answer:
The firm's Total revenue will increase
Explanation:
Based on the information given we were told that the total revenue is currently an amount of $256.58 which means that If the producer decided to purchase three more units of b3, what would happen to the firm's total revenue is that the firm's TOTAL REVENUE will tend to increase reason been that the firm is selling more and in a situation where the numbers of units sold increase this means that the TOTAL REVENUE will as well increase.
Hence the increases in the price of the product for every single unit sold will lead to increases in TOTAL REVENUE.
List some forms of political risk other than a takeover of a subsidiary by the host government, and briefly elaborate on how each factor can affect the risk to the MNC.Identify common financial factors for an MNC to consider when assessing country risk. Briefly elaborate on how each factor can affect the risk to the MNC.
Answer with Explanation:
The political risk are the risk that the investors and corporation bears who are affected by the political decisions of government. The adverse impact of political decision making is reduction in earnings, abandoning of operations, government interventions, etc.
Here are some of the political risks that has adverse impact on the operations of Multinational Corporations:
Blocked funds will result in loosing potential investments in other countries due to shortage of fund created by the blockage in movement of funds from one country to other. This blockage is as a result of regulations passed to restrict the use of money generated in a country.Changing tax laws will result in the decrease in earnings for the shareholders and retained earnings for the corporationsPublic revolt against the firm which was to abandon the use of fair treatment like in the case of PIA-Pakistan International Airlines. The company is struggling to lower its losses by rewarding the right person and firing employees who are working as per set standards. The employees has revolted against the firm which has severe impact on the share value in the stock market. The revolt continued for the whole month.Changing Interest rates would result in increase in interest cost to MNC which is also because of government interventions.Attitude of the host government towards MNC is political risk if the host government is willing to tighten controls which includes environmental related regulations, worker's right act, etc. This would increase the cost to the multinational corporations.Corruption and rule of Law effect the most to the corporations because the fraudulent activities can not be stopped if there is no rule of law. It also depends on how long does a legal case takes to be resolved.The Financial factors includes inflation rate, Exchange rate, GDP growth rate, interest rates, electricity cost, corporation taxes, labor costs, industry specific policies, etc. These factors can result in acceptance or rejections of projects in the country because these are the main financial factors that has tendency to alter the decision of the investors and corporations.
Corporation Taxes and interest rates are discussed above.All the cost related items which includes electricity costs, inflation rates, labor costs, etc are very important element as they are almost more than 50% of total cost of the project. Hence these are the financial factors that has immense importance when assessing country risks and considering potential investment opportunities.Exchange rate are another important element that helps in assessing the country risk of the company. If the investment was profitable but the currency deflated against the MNC's home country then it was not a good decision. The exchange rate fluctuations will also be an important financial factor while making business decisions.GDP growth rate is also one of the significant factor to consider because significant investment value grows if the Gross Domestic Production is growing with great pace and vice versa.27. Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be
The question is incomplete. The complete question is,
Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be
Year Dividend
1 $1.20
2 1.44
3 1.73
4 2.07
After this initial period of super growth, the rate of increase in the dividend should decline to 8 percent. If you want to earn 12 percent on investments in common stock, what is the maximum you should pay for this stock?
Answer:
The maximum that should be paid for the stock today is $40.29
Explanation:
We will use the two stage dividend growth model of DDM to calculate the price of the stock today. The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price under the two stage model is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+g2) / (r - g2)] / (1+r)^n
P0 = 1.2 / (1+0.12) + 1.44 / (1+0.12)^2 + 1.73 / (1+0.12)^3 + 2.07 * (1+0.12)^4 +
[2.07 * (1+0.08) / (0.12 - 0.08)] / (1+0.12)^4
P0 = $40.2853 rounded off to $40.29
It costs Coronado Industries $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1800 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Coronado has sufficient unused capacity to produce the 1800 scales. If the special order is accepted, what will be the effect on net income? $5400 decrease $3600 increase $27000 increase $3600 decrease
Answer:
$3600 increase
Explanation:
The computation of the effect on the net income is shown below:
Revenue arises from special order
= ($15 - $1) × 1,800
= 25,200
Cost for the special order
= $12 × 1,800
= $21,600
Now in case when the special order is accepted
So, the effect on the net income is
= Revenues - cost
= $25,200 - $21,600
= $3,600 increase
__ measures a company's ability to pay its debt while ___ measures the company's ability to earn a profit
Answer:
Solvency ratio __ measures a company's ability to pay its debt while ___Profitability ratio measures the company's ability to earn a profit
Explanation:
a) For instance, let us assume a hypothetical company called Midex Corporation. The financial measure that shows the company's ability to meet its debt obligations is known as the solvency ratio. For prospective fund lenders, they find it useful in order to decide whether to go ahead with requests for more funding. This implies that the solvency ratio indicates whether Midex's cash flow is sufficient to meet its short-and long-term liabilities. To calculate the solvency ratio, divide the company's after-tax net operating income by its total debt obligations. Midex's net after-tax income is derived by adding the non-cash expenses, such as depreciation and amortization, back to the net income.
b) In the same light, Midex Corporation's profitability ratios measure the corporation's ability to earn a profit in relation to these bases: its sales revenue, operating costs, balance sheet assets, and shareholders' equity. These financial metrics can also show how well Midex has managed its assets to produce profits and value for its shareholders.
If assets are $365,000 and equity is $120,000, then liabilities are: __________
a. $120,000
b. $245.000
c. $365,000
d. $485,000.
e. $610,000.
Answer:
b. $245.000
Explanation:
The computation of the liabilities is shown below:
As we know that
The accounting equation comprise of
total assets = total liabilities + total equity
where,
total assets = $365,000
Total equity = $120,000
So, the total liabilities is
= total assets - total equity
= $365,000 - $120,000
= $245,000
Hence, the total liabilities is b. $245.000
Bramble Corp. can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $58 and takes two machine hours to make and Fancy has a unit contribution margin of $57 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Bramble do?
Answer:
plain makes a profit of $10
Explanation:
The computation is shown below:
Particulars Plain fancy
Unit contribution margin $58 $57
Machine hours 2 3
Contribution margin
per machine hour $29 $19
($58 ÷ 2) ($57 ÷3)
As we can see that the plain makes a profit of $10 that comes from
= $29 - $19
= $10
Tacit collusion is more likely to be a concern with horizontal alliances. vertical alliances. international alliances of any kind compared with domestic alliances. U.S. alliances with companies in less- developed countries.
Answer:
horizontal alliances
Explanation:
A horizontal alliance is a term that describes a form of arrangements or partnership between businesses that conduct as competitors in the exact area.
In other words, competitors work in unison to enhance their strategy in the market.
On the other hand, Tacit Collusion occurs when firms avoid actions that are likely to require or demand a response from another firm often a competitor. For example, when a firm avoids the opportunity to price cut an opposition due to the fact that, the opposition may retaliate
Hence, Tacit collusion is more likely to be a concern with HORIZONTAL ALLIANCE
Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity level 80 guests Variable overhead costs: Supplies $ 144.00 Laundry 600.00 Fixed overhead costs: Utilities 444.00 Salaries and wages 5,120.00 Depreciation 2,900.00 Total overhead cost $ 9,208.00 The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 70 guests
Answer: $9,115
Explanation:
Total budgeted overhead cost =Variable Costs + Overhead costs
The variable costs listed are for an activity level of 80 guests but 70 guests will be coming.
The variable costs will be;
Supplies
= (144 / 80) * 70
= $126
Laundry
= ( 600/80 ) * 70
= $525
The rest are fixed costs so will stay the same regardless of activity level.
Total budgeted overhead cost = 126 + 525 + 444 + 5,120 + 2,900
= $9,115
The following are all examples of abnormal items disclosed by the company, except: (4 points) A) Goodwill Impairment Charges B) Royalty Expense C) Intangible Asset Impairment Charges D) Restructuring Charges
Answer:
Correct Answer:
B) Royalty Expense
Explanation:
A royalty is a payment made by one party, franchisee to another that owns a particular asset, franchisor for the right to ongoing use of that asset. The expenses incurred in executing this payment is called royalty expenses.
A company uses the FIFO method for inventory costing. During a period, a production department had 56,000 units in beginning goods in process inventory which were 32% complete; the department completed and transferred 167,000 units. At the end of the period, 14,000 units were in the ending goods in process inventory and are 67% complete.
Compute the number of equivalent units produced by the department.
a. 181,000
b. 158,460
c. 167,000
d. 176,380
e. 111,000
Answer:
158460 ( B )
Explanation:
Given data :
production department ; 56000 units
process inventory = 32% = 0.32
completed and transferred units = 167000
ending goods units = 14000, 67% complete = 0.67
attached below is the table representation of the solution
The number of equivalent units produced by the department
= ∑ all the variables listed on the table
= 38080 + 11100 + 9380 = 158460
When screening employees for employment to guard sensitive assets,the screener should look for employment data from the following areas:________
a) Former employers
b) State and local police
c) Schools
d) Television producers
Answer:
When screening employees for employment to guard sensitive assets,the screener should look for employment data from the following areas:________
a) Former employers
Explanation:
Former employers remain the best source of employment data when screening employees for employment. It is believed that past performances always influence future performances. As a result, former employers of any worker should be in position to provide sensitive information about the new employee. However, there is the need to adhere to data privacy by ensuring that the employee consents to the enquiry into his or her past.
Merlin Anson owns Unix Computers, a company with five employees. As a small business owner, he has several options for payroll processing. What factors should he consider when deciding on which payroll processing option is best for Unix Computers
Answer: amount of money he wants to spend on the payroll processing. Also, he has to consider the independent contractors
Explanation:
From the question, we are informed that Merlin Anson owns Unix Computers, a company with five employees and that as a small business owner, he has several options for payroll processing.
The factors that he should consider when deciding on which payroll processing option is best for Unix Computers are amount he wants to spend on the payroll processing. Also, he has to consider the independent contractors. These two are essential to know which option is good for the company.
An investor receives a 15% total return by purchasing a stock for $40 and selling it after one year with a 10% capital gain. How much was received in dividend income during the year
Answer:
$2
Explanation:
The computation of the dividend income received during the year is shown below:
Before computing the dividend income first we have to determine the dividend percentage which is
= Total return received - capital gain after one year
= 15% - 10%
= 5%
Now the dividend income is
= Dividend percentage × stock price
= 5% × $40
= $2
Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $297,000, total variable expenses were $222,750, and fixed expenses were $36,900.Required:
1. What is the companyâs contribution margin (CM) ratio?
2. Estimate the change in the companyâs net operating income if it were to increase its total sales by $1,800.
Answer:
Results are below.
Explanation:
Giving the following information:
Sales in units= 42,000
Total sales= $297,000
Total variable expenses= $222,750
Total fixed expenses= $36,900
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (sales - total variable cost) / sales
contribution margin ratio= (297,000 - 222,750) / 297,000
contribution margin ratio= 0.25
Now, the effect on the income of an increase in sales:
Effect on income= contribution margin ratio*increase in sales
Effect on income= 0.25*1,800
Effect on income= $450 increase
Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock
Complete Question:
BenchMark, Inc., just paid a dividend of $3.45 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock.
Answer:
BenchMark, Inc.
The current share price for the stock is:
$43.13
Explanation:
a) Data and Calculations:
Dividend per share = $3.45
Growth rate = 5%
Investors' required rate of return = 13%
Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)
= $3.45/(0.13 - 0.05)
= $43.13
b) We can calculate BenchMark's current share price, by dividing the dividend per share by the investors' required rate of return after subtracting the growth rate from the required rate of return.
A company’s book value increases when a company retains its net income.
a) true
b) false
The answer to your question is true.
You're prepared to make monthly payments of $390, beginning at the end of this month, into an account that pays 7 percent interest compounded monthly. How many payments will you have made when your account balance reaches $23,087?
Answer:
$ 11,111,000
Hope this helps
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"A customer makes an investment in a CMO. In a given year, she receives $24,000 of payments, of which $6,000 is principal and $18,000 is interest. Which statement is TRUE about the taxation of the payments received?"
Answer:
Only the interest amount received is taxable.
Explanation:
CMO refers to Collateralised Mortgage Operation in this whenever one receives a payment it is joint of some principal and remaining amount as an interest.
The principal received only decreases the debt, that is created in a CMO. Thus, is not to be considered as an income in any manner.
Interest received is a part of income as do not decrease the liability of debt, rather increases the revenue, and is therefore, taxable.
A company is using a mobile device deployment model in which employees use their personal devices for work at their own discretion. Some of the problems the company is encountering include the following:______. A. There is no standardization. Employees ask for reimbursement for their devices. B. Employees do not replace their devices often enough to keep them running efficiently. C. The company does not have enough control over the devices. Which of the following is a deployment model that would help the company overcome these problems?A. BYODB. VDIC. COPED. CYOD
Answer:
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Holiday corp has two divisions quail and marlin. quail produces a widget that marlin could use in its production. quails variable cost are $4 per widget while the fulls cost is $7. widgets sell on the open market for $12 each.
A. if quail has excess capacity, what would be the cost savings for Holiday if the transfer was made and marlin currently is purchasing 100,000 units on the open market.
b. what would be the maximum transfer price?
c. if quail is operating at capacity, what would be the minimum transfer price?
Answer:
a. $800,000
b. $12
c. $12
Explanation:
Cost Savings :
Market Price ($12 × 100,000 units) $1,200,000
Less Minimum Transfer Price ( $4 × 100,000 units) ($400,000)
Savings $800,000
Maximum Transfer Price is $12
If quail is operating at capacity, units to meet internal demand would need to be recovered from the external market and that creates an opportunity cost :
Minimum transfer price = Variable Cost per unit - Internal Savings + Opportunity Cost per unit
= $4 + ($12 - $4)
= $4 + $8
= $12
Net income was $448600 in the current year and $365500 in the prior year. The year to year percentage change in net income is closest to:__________.
Answer:
The answer is 22.74 perfect
Explanation:
The percentage change is:
[Future value(Current year net income) / Present Value(Prior year net income)] - 1
($448,600/$365,500) - 1
1.2274- 1
0.2274
Expressed as a percentage
22.74 percent.
Alternatively:
(Future value - present value) / present value
($448,600 - $365,500) / $365,500
$83,100/$365,500
0.2274
Expressed as a percentage
= 22.74 percent.