An air-conditioning repair department manager has compiled data on the primary reason for 41 service calls for the previous week, as shown in the table.
Job
Number Problem/
Customer Type Job
Number Problem/
Customer Type Job
Number Problem/
Customer Type
301 O/C 315 W/C 329 F/R
302 W/C 316 F/R 330 N/C
303 N/R 317 F/R 331 F/C
304 W/C 318 W/R 332 O/C
305 W/C 319 F/R 333 N/R
306 F/R 320 F/R 334 W/C
307 N/R 321 F/C 335 F/C
308 F/R 322 O/C 336 W/R
309 O/C 323 W/C 337 O/R
310 O/C 324 F/R 338 W/C
311 O/C 325 O/R 339 O/R
312 N/R 326 W/R 340 N/R
313 F/C 327 N/R 341 F/R
314 O/C 328 F/R
Key: Problem type: Customer type:
N = Noisy C = Commercial customer
F = Equipment failure R = Residential customer
W = Runs warm
O = Odor
b. Select a appropriate Pareto diagram for the Residential customers.
References
eBook & Resources
Multiple ChoiceDifficulty: 2 Medium
Problem 9-2 Part bLearning Objective: 09-13 Describe and use various quality tools.
7.
value:
8.00 points
Required information
Problem 9-2 Part c
c. Select a appropriate Pareto diagram for the Commercial customers.
Answers
Answer:
Find the answers in the attached documents
Explanation:
Related Questions
An organizational role is a set of task-related behaviors required of a person by his or her position in an organization.
a) true
b) false
Answers
Answer:
True
Explanation:
because it is a method of providing service entitlements to a person within the system
A radio transceiver is
Answers
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In radio communication, a transceiver is a device that is able to both transmit and receive information through a transmission medium. It is a combination of a transmitter and a receiver, hence the name transceiver. Transmission is usually accomplished via radio waves, but communications satellites, wired connections, and optical fiber systems can also be used.
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Without the cost concept, accounting reports would become unstable and unreliable.
a. true
b. false
Answers
Without the cost concept, accounting reports would become unstable and unreliable. It is true. Thus option (a) is correct.
What are accounting reports ?Accounting reports are financial documents that provide information about the financial performance and position of a business. These reports summarize the financial transactions that have taken place within a given period, typically a fiscal year or a quarter.
Accounting reports are essential tools for businesses of all sizes. They provide a detailed view of a company's financial performance, helping stakeholders make informed decisions about investments, credit, and other financial matters.
It is true to say that without the cost concept, accounting reports would become unstable and unreliable. Thus option (a) is correct.
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The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense.
Accounts receivable $ 438,000 Debit
Allowance for Doubtful Accounts 1,280 Debit
Net Sales 2,130,000
Credit All sales are made on credit. Based on past experience, the company estimates 1.0% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
A) Debit Bad Debts Expense $20,020; credit Allowance for Doubtful Accounts $20,020.
B) Debit Bad Debts Expense $22,580; credit Allowance for Doubtful Accounts $22,580.
C) Debit Bad Debts Expense $21,300; credit Allowance for Doubtful Accounts $21,300.
D) Debit Bad Debts Expense $4,380; credit Allowance for Doubtful Accounts $4,380.
E) Debit Bad Debts Expense $5,660; credit Allowance for Doubtful Accounts $5,660.
Answers
Answer:
C) Debit Bad Debts Expense $21,300; credit Allowance for Doubtful Accounts $21,300.
What should the firm do if there is no possible output where the price would at least be equal to average variable costs
Answers
Answer:
Since the average variable cost curve lies below the average total cost curve, this implies that the average variable cost is the lowest price at which the producer can sell.
If there is no possible output where the price would be at least equal to the average variable costs, the firm should cease production, because it is not going to recover its costs, not to talk about making a profit.
Explanation:
A firm's average variable cost is the total variable cost divided by the total output. For example, if the total variable cost for a particular product is $4,500 with a total output of 450 units, then the average variable cost is $10 ($4,500/450).
W. L. Gore & Associates is the inventor of path-breaking new products such as breathable GORE-TEX fabrics, Glide dental floss, and Elixir guitar strings. Which of the following would be most likely to hinder its intention of fostering employee satisfaction, retention, and creativity?
A. An extremely formalized organizational structure
B. A highly organic organizational structure
C. A low degree of centralization
D. A flat organization structure
Answers
Answer: An extremely formalized organizational structure
Explanation:
From the question, we are informed that W.L. Gore & Associates is the inventor of path-breaking new products such as breathable GORE-TEX fabrics, Glide dental floss, and Elixir guitar strings.
The most likely to hinder its intention of fostering employee satisfaction, retention, and creativity will be an extremely formalized organizational structure. This is because the top level managers and those at the helm of affair typically make decisions.
Answer: A. An extremely formalized organizational structure
Southport industries company has current assests of $610000 and a current ratio is 4.1. Assume that the company prepays rent for 9 months in the amount of $34,000. The current ratio after this transaction is closest to:_____.
A) 5.03.
B) 3.90.
C) 3.68.
D) 4.12.
Answers
Answer: D. 4.12
Explanation:
From the question, we are informed that Southport industries company has current assests of $610000 and a current ratio is 4.1 and that the company prepays rent for 9 months in the amount of $34,000.
It should be noted that the current ratio is calculated as:
= Current assets/Current liabilities
4.1 = $610,000/current liabilities
Current liabilities = $610,000/4.1
= $148,781
The current ratio will still be close.to 4.1 based on the above analysis.
Whats the total Late Fee Interest charged to the customers based on the policy below? Vittorla's Furniture Bazaar Accounts Receivable Aging Summary As of June 30, 2015 Customer Current 1-30 Days 31-60 Days 61-90 Days 90 Days Total Bull and Bear Café $750 $750 Eckhardt Design $1,000 $1,000 Halifax Sporting Goods $500 $500Walker Studios $1,500 $1,500TOTAL $2,250 $500 $1,000 $0 $0 $3,750 Late Fee Interest Policy Age Interest Current 0%1-30 Days 0%31-60 Days 5% 61-90 Days 10% >90 Days 20% a. $0 b. $50 c. $75 d. $100 e. $200
Answers
Answer:
b. $50
Explanation:
Vittorla's Furniture Bazaar Accounts Receivable
Aging Summary As of June 30, 2015
Customer Current/1-30 Days/31-60 Days/61-90 Days/>90 Days
Total B&B Café $750
Eckhardt Design $1,000
Halifax Sporting $500
Walker Studios $1,500
Late Fee Interest Policy
Age Interest
Current 0% x ($750 + $1,500) = $0
1-30 Days 0% x $500 = $0
31-60 Days 5% x $1,000 = $50
61-90 Days 10%
>90 Days 20%
total interest charged = $0 + $0 + $50 = $50
Find a numerical equation relating planned aggregate expenditure to output and to the real interest rate. [i.e. write down the PAE equation]
Answers
Answer:
The answer is below
Explanation:
Aggregate expenditure is the current value of finished products in an economy, it is gotten by summing all expenditures spent over a period of time in an economy. It is given by the formula:
PAE = [tex]C^d+I^p+G+X[/tex]
Where PAE is the planned aggregated demand, C is the household consumption, X is the difference between exports and imports, I is the investments while G is government expenditures
In 2008 approximately what percent of the world's population lived in Asia? PROVIDE/EXPLANATION PROOF FOR YOUR ANSWER. INCOMPLETE, UNRELATED, SELF - PROMO and NONSENSE ANSWERS WILL BE REPORTED!!!
Answers
Answer:
We can infer from the graph, that about two thirds (around 60%) of the world's population lived in Asia in 2008.
Asia is by far the most populated continent in the world. The two most populous countries of the globe are located in Asia: India, and China, each with over 1 billion people.
Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $360000 for which the cost driver is machine setups. How much overhead is assigned to each product?
Answers
Answer:
Earth = $90,000
Wind = $67,500
Fire = $202,500
Explanation:
Activity based costing is a costing system that assigns the cost of identified activities , mostly overhead and indirect cost to all products and services produced according to the respective volume of the activities consumed by each of the products and services , using cost drivers.
Workings.
The cost driver in the scenario is Machine set up
Earth = 80 set up
Wind = 60 set up
Fire = 180 set up
Total = 320 set up
General Overhead = 360,000
Earth = 80/320 *360,000 = 90,000
Wind = 60/320*360,000 = 67,500
Fire = 180/320*260000 = 202,500
Last year, when the stock of Waldo, Inc., was selling for $28 a share, the dividend yield was 3.5 percent. Today, the stock is selling for $35 a share. What is the required return on this stock if the company maintains a constant dividend growth rate of 5 percent?
Answers
Answer:
The required rate of return on the stock is 8.087%
Explanation:
The constant growth model of DDM is used to calculate the price of a stock whose dividends are expected to grow at a constant rate forever. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of the stock under this model can be calculated as,
P0 = D0 * (1+g) / (r - g)
Where,
P0 is price of the stock todayD0 * (1+g) is the dividend expected from the stock for the next periodr is the required rate of returng is the constant growth rate in dividendsTo calculate the r or required rate of return, we first need to determine the dividend that was paid last year. Then we will apply the constant growth rate to that dividend to calculate the dividend today or D0. We will them input the value of stock price, the current dividend and the dividend growth rate in the formula above to calculate the required rate of return.
Dividend per share - Last year
Dividend yield = Dividend per share / Price per share
0.035 = Dividend per share / 28
0.035 * 28 = Dividend per share
Dividend per share = $0.98
The dividend per share today (D0) is,
D0 = 0.98 * (1+0.05)
D0 = $1.029
35 = 1.029 * (1+0.05) / (r - 0.05)
35 * (r - 0.05) = 1.08045
35r - 1.75 = 1.08045
35r = 1.08045 + 1.75
r = 2.83045 / 35
r = 0.08087 or 8.087%
Which of the following priority rule will minimize the average flow time of jobs and also perform well in other measures such as average lateness
A) STR
B) CR
C) SOT
D) LCFS
E) EDD
Answers
CR always minimizes mean job flow times.
What priority rule is being used when jobs are processed according to the lowest ratio of the due date to the remaining processing time?A priority index is computed using the components: CR = (due date—cutting-edge date)/(production lead time final). Jobs with a smaller crucial ratio are given precedence over people with larger critical ratios. FOR(fewest operations ultimate). that is a version of the SPT rule.
What's the minimum Cr for the primary task in the sequence?If this rule is used for sequencing, the activity with the lowest CR is scheduled first. A CR less than 1 indicates that the task will be overdue, and a CR greater than 1 shows that the process may be finished beforehand of the due date if no unexpected postponement occurs.
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assume the fixed overhead per unit was $1.50 for both the beginning and ending inventory. what is net income under absorption costing
Answers
Answer:
Net income under absorption costing is $904,370.
Explanation:
Note: This question is not complete and it contains an error in the only available data. The complete correct question is therefore provided before the question is answered as follows:
Kluber, Inc. had net income of $908,000 based on variable costing. Beginning and ending inventories were 55,800 units and 53,600 units, respectively. Assume the fixed overhead per unit was $1.65 for both the beginning and ending inventory. What is net income under absorption costing?
The explanation to the answer is now given as follows:
Variable costing is a costing technique that takes only the variable cost into consideration and exclude the fixed manufacturing overhead from the production production cost of a product.
Absorption costing is a costing technique in which the fixed overhead cost of production is allocated to products produced.
For this question, net income under absorption costing can be determined as follows:
Net income based on variable costing = $908,000
Total beginning fixed overhead = Beginning inventories * Fixed overhead per unit = 55,800 * $1.65 = $92,070
Total ending fixed overhead = Ending inventories * Fixed overhead per unit = 53,600 * $1.65 = $88,440
Adjustment for fixed overhead for the period = Total ending fixed overhead - Total beginning fixed overhead = $88,440 - $92,070 = -$3,630
Net income under absorption costing = Net income based on variable costing + Adjustment for fixed overhead for the period = $908,000 + (-$3,630) = $908,000 - $3,630 = $904,370
Therefore, net income under absorption costing is $904,370.
Following are the transactions of a new company called Pose-for-Pics.
Aug. 1 Madison Harris, the owner, invested $5,500 cash and $23,650 of photography equipment in the company in exchange for common stock.
2 The company paid $3,800 cash for an insurance policy covering the next 24 months.
5 The company purchased office supplies for $1,045 cash.
20 The company received $2,150 cash in photography fees earned.
31 The company paid $884 cash for August utilities.
Required:
Prepare an August 31 trial balance for Pose-for-Pics.
Answers
Answer and Explanation:
The preparation of the August 31 trial balance for Pose for pics is presented below:
Particulars Debit Credit
Cash
($5,500 - $3,800 - $1050
+ $2,150 - $884) $1,921
Office Supplies $1,045
Prepaid Insurance $3,800
Photography Equipment $23,650
Common Stock
($5,500 + $23,650) $29,150
Photography Fees Earned $2,150
Utilities Expense $884
Totals $31,300 $31,300
An operating budget is a prediction of expected revenues and expenses and other operating and financing transactions for a future period. true or false
Answers
Answer:
True
Explanation:
An operating budget is a budget that forecasted the expected revenues, expenses, and other operating & financing transactions for a future period so that the company get to know how much revenues to be earned and how much the expenses to be incurred during the particular year
Hence, the given statement is true
hen considering whether a holder took the negotiable instrument in good faith, the court looks only at the
Answers
Answer:
Explanation:
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Answer:
holder's preceding claims
Explanation:
Neptune Rentals operates a boat rental service. Consider the following costs of the company over the relevant range of 5,000 to 8,000 hours of operating time for its boats:
Hours of Operating Time
5,000 6,000 7,000 8,000
Total costs:
Variable costs ............... $ 20,000 $ ? $ ? $ ?
Fixed costs ................... 168,000 ? ? ?
Total costs ....................... $188,000 $ ? $ ? $ ?
Cost per hour:
Variable cost ................. $ ? $ ? $ ? $ ?
Fixed cost ..................... ? ? ? ?
Total cost per hour ........... $ ? $ ? $ ? $ ?
Required:
Compute the missing amounts, assuming that cost behavior patterns remain unchanged within the relevant
range of 5,000 to 8,000 hours.
Answers
Answer and Explanation:
The computation of the missing amount is shown below:
Operating hours
Particulars 5,000 6,000 7,000 8,000
Total cost:
Variable cost $20,000 $24,000 $28,000 $32,000
($20,000 × 6 ÷ 5) ($20,000 × 7 ÷ 5) ($20,000 × 8 ÷ 5)
Fixed cost $168,000 $168,000 $168,000 $168,000
Total cost $188,000 $192,000 $196,000 $200,000
Cost per hour:
Variable cost $4 $4 $4 $4
($20,000 ÷ 5,000) ($24,000 ÷ 6,000) ($28,000 ÷ 7,000) ($32,000 ÷ 8,000)
Fixed cost $33.60 $28 $24 $21
($168,000 ÷ 5,000) ($168,000 ÷ 6,000) ($168,000 ÷ 7,000) ($168,000 ÷ 8,000)
Total cost per hour $37.60 $32 $28 $25
Suppose a firm is the exclusive supplier of Painite, the world's rarest gemstone. Output is sold in two markets, A and B. Assume consumers in the markets are unable to sell gemstones to one another and can only purchase directly from the firm. Market A has a more inelastic demand than market B. What can be said about the prices the firm charges in each market?
Answers
Answer:
d. Market A will have a higher price than market B
Explanation:
As we know that in the non elastic market, the seller could charge the high price while on the other hand in the elastic market it can charge a smaller price
as if there is an inelastic demand than it would leads to 1% rise in price that decrease the quantity demanded by smaller than 1%. Also if the price increased the total revenue also rises
And if there is an elastic demand than it would leads to 1% rise in price that decrease the quantity demanded by more than 1% and the price increased the total revenue is decreased
As it is given that the Market A contains more inelastic demand than market B so the seller charged a high price in market A than in Market B
Hence, the last option is correct
An investor has 15 thousand dollars to invest among 3 possible investments A, B, C. Each investment must be in units of a thousand dollars. Not all the money need be invested. He must invest at least 3 thousand dollars on the investment A and at least 5 thounsand dollars on the investment B. How many different investment strategies are possible
Answers
Answer:
36 ways
Explanation:
There are 3 possible investments A, B and C.
If x represents the amount of money to be invested in the ith opportunity, it is given as:
[tex]x_1+x_2+x_3=15 \\[/tex]
Let y be the minimum investment to be made, therefore:
[tex]y_1=x_1-3\\y_2=x_2-5\\y_3=x_3\\\\Therefore:\\\\y_1+y_2+y_3+3+5=15\\\\y_1+y_2+y_3+8=15\\\\y_1+y_2+y_3=7\\[/tex]
The number of possible combinations is:
C(n + k - 1, k - 1)
Where k is the number of investment = 3 and n = 7. Therefore:
The number of possible combinations is = C(n + k - 1, n - 1) = C(7 + 3 -1, 3 - 1) = C(9, 2) = [tex]\frac{9!}{(9-2)!2!}=\frac{9!}{7!2!}=36\ ways[/tex]
During the year, ABC had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers, $5,000; payment of dividends, $1,000, payment to workers, $2,000; payment for machinery, $8,000. What amount would be reported for net financing cash flows on the Statement of Cash Flows?
Answers
Answer:
$5,000
Explanation:
The computation of the amount that should be reported for net financing cash flows is shown below:
Cash flows from financing activities
Receipt from the bank for long-term borrowing $6,000
Less: dividend paid -$1,000
Net cash flows from financing activities $5,000
The positive amount represents the cash inflow and the negative amount represent the cash outflow and the same is to be considered
"A customer subscribes to a $100,000 limited partnership interest. The commission is $10,000. The up-front costs are $500 for legal expenditures, and $500 for organization costs. What is the customer's beginning tax basis?"
Answers
Answer:
$100,000
Explanation:
Based on the information given we were told that the customer subscribes for a limited partnership interest for the amount of $100,000, this means that the amount of $100,000 will be the customer's beginning tax basis because the amount that was used when the customer subscribed to the limited partnership interest is the initial cost.
Therefore the beginning tax basis will be $100,000
Milton Industries expects free cash flows of $14 million each year. Milton's corporate tax rate is 21%, and its unlevered cost of capital is 15%. Milton also has outstanding debt of $23.44 million, and it expects to maintain this level of debt permanently. a) What is the value of Milton
Answers
Answer:
A.$93 million
B.$97.92million
Explanation:
a. Calculation for the value of Milton Industries without leverage
Using this formula
Value without leverage unlevered=Free cash flow/unlevered cost of capital
Let plug in the formula
Value without leverage unlevered=$14 million/15%
Value without leverage unlevered=$93 million
B. Calculation for the value of Milton Industries with leverage
Using this formula
Value with leverage Levered= Unlevered value + Tax rate x Debt
Let plug in the formula
Value with leverage Levered=$93 million + 21% x $23.44 million
Value with leverage Levered=$93 million + $4.92 million
Value with leverage Levered=$97.92million
Therefore Value without leverage unlevered will be $93 million while Value with leverage Levered will be $97.92million.
C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges C&A $30 per order and $50 per bottle. C&A's annual holding cost percentage is 40%. Assume C&A operates 50 weeks in a year. What is C&A's total ordering and holding cost per year if C&A orders 500 bottles at a time? $11,800 $5036 $6800 $10,036
Answers
Answer: c---$6,800
Explanation:
Annual Demand = Weekly Demand x Number of weeks in operation
= 600bottles x 50 = 30,000 Bottles
a)Annual ordering cost = (Annual Demand /Quantity) X Ordering cost= (30000/500)*30 = $1,800
B) Holding cost per unit = Purchase Price per bottle x Holding cost percentage
= $50 x 40% = $20 per unit
Annual Holding cost = Average Inventory x Holding cost per unit per annum
But Average Inventory = Size of order / 2 = 500 / 2 = 250 Bottles
Annual Holding cost =250 x $20 = $5,000
Therefore, total ordering and holding cost per year
= $1,800 + $5,000
= $6,800
Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken. Also assume that in 1984 each bucket of chicken was priced at $10. Finally, assume that in 2005 the price per bucket of chicken was $16 and that 22,000 buckets were produced.
Required:
a. What is the GDP price index for 1994, using 2005 as the base year?
b. By what percentage did the price level, as measured by this index rise between 1984 and 2005?
c. What were the amounts of real GDP in 1984 and 2005?
Answers
Answer:
a. 62.5
b. 60%
c. $160,000; $352,000
Explanation:
a. Price Index = (Price in year of interest/ Price in Base year) * 100
= (10/16) * 100
= 62.5
b. Rose from 62.5 in 1984 to 100 in 2005
= (100 - 62.5)/62.5
= 60%
c. Using 2005 as the Base year means that the Real GDP will be based on 2005 prices.
Real GDP 1984
= 10,000 buckets * 16
= $160,000
Real GDP 2005
= 22,000 * 16
= $352,000
Explain the shift from artisan to factory worker, and discuss the factory system. What were the advantages and disadvantages
Answers
Answer:
The Shift from Artisan to Factory Worker and the Factory System
a) The Shift from Artisan to Factory Worker: Earlier, people produced everything they needed by their own hands. Food production was limited to subsistence level as every household owned farms on which they cultivated the food the family required. The artisan worked alone to handcraft tools and other ornamental works.
But, all this changed with the invention of the steam engine. Following the improved systems of transportation with steamboats, travelling was enhanced. Gradually, production processes were mechanized. Factories started springing up in concentrated areas near water channels. People left their rural areas to live near the factories in towns and cities. With the birth of the factory system, goods were mass-produced and could be sold in markets farther from the factory towns.
It was the age of industrialization, trade unionization, assembly line production, scientific management, and now complete automation of processes with robots replacing manual labor. It has been a long way.
b) Advantages of the Factory System:
Hunger was reduced as more food items were produced and processed into finer products on a large scale.Exports of goods were encouraged and more markets outside the domestic markets were explored.The world became a global village with the pursuit of the common good of man, thereby levelling human beings to a common humanity and experience.More sophisticated goods and equipment can now be produced as a result of the factory system. Manual labor has been eased greatly.The factory system introduced scientific management, which has ensured production innovations and encouraged skills development.c) Disadvantages of the Factory System:
The artisan was rendered jobless by the factory system as some of the tools and goods which only the artisan could produced was commonalized to the extent that unskilled laborers could produce them, just by each concentrating on a part through the principle of division of labor.The factory system created urbanization with its attendant problems, especially sanitation problems and pollution of the environment. People's health has been jeopardized as a result.The factory system also created the consumerism culture.It widened wealth-inequality as wealth creation became concentrated in the hands of a few people.Explanation:
The factory system encourages a method of manufacturing through the use of machines, automation, and division of labour. It gave rise to urbanization, transportation efficiency, and globalization.
Data related to the inventories of Kimzey Medical Supply are presented below:
Surgical Surgical Rehab Rehab
Equipment Supplies Equipment Supplies
Selling price $ 335 $195 $415 $240
Cost 245 165 325 237
Replacement cost 315 155 310 233
Costs to sell 60 20 40 40
Normal gross profit ratio 30 % 30 % 30 % 20 %
In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at:______.
a. $175.
b. $165.
c. $155.
d. $135.
Answers
Answer:
c. $155.
Explanation:
Kimzey Medical Supply's merchandise inventory:
Surgical equip. Surgical supplies Rehab equip. Rehab supplies
Selling price $335 $195 $415 $240
Cost $245 $165 $325 $237
Replacement $315 $155 $310 $233
cost
Net RV $275 $175 $375 $200
If we apply the lower of cost or market rule for determining the value of surgical equipment, its value would be: $155 because the replacement cost (or market price) is lower than the historical cost or the net realizable value.
When we use the lower of cost or market rule, we should value our inventory at the lowest value between original purchase cost, replacement (or market) price or net realizable value.
Debt: 5,000 7.2 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 440,000 shares outstanding, selling for $62 per share; the beta is 1.05. Market: 11 percent market risk premium and 5.2 percent risk-free rate. What is the company's WACC?
Answers
Answer:
the company's WACC is 15.07 %.
Explanation:
WACC = ke × (E/V) + kd × (D/V)
kd = cost of debt
Pv = $1,000 × 108% = - $1,080
n = 30 × 2 = 60
pmt = ($1,000 × 7.2 %) ÷ 2 = $36
p/yr = 2
Fv = $1,000
r = ?
Using a Financial Calculator, the Pre-tax cost of debt, r is 6.5852 or 6.59 %
After tax cost of debt = Interest × (1 - tax rate)
I will use the pre-tax cost of debt for now since i do not have the tax rate on this question.
ke = cost of equity
= Return on Risk free security + Beta × Market Risk Premium
= 5.20 % + 1.05 × 11.00 %
= 16.75 %
E/V = Market Weight of Equity
= (440,000 × $62) / (440,000 × $62 + 5,000 × $1,080) × 100
= 83.48 %
D/V = Market Weight of Debt
= (5,000 × $1,080) / (440,000 × $62 + 5,000 × $1,080) × 100
= 16.52 %
WACC = 16.75 % × 83.48 % + 6.59 % × 16.52 %
= 15.07 %
Which of the following is designed to partially remedy the problem of excessive insurance? Baumol’s cost disease
Answers
Answer:
The Cadillac tax
Explanation:
The benefit for health case sponsored by the employer in the case when the defined limits that should be legal will be 40% of excise tax also the taxes are paid by the insurance companies but the same is to be borne by an individual also it determines who has to receive the benefit of the insurance. It also restricts the limit of private health insurance
So here in the given situation, it is a Cadillac tax
Vernon signed a contract with Cameron allowing Cameron to deal cocaine on Vernon's property. This contract is ____ because neither party can legally enforce it.
Answers
Answer: invalid
Explanation: The contract written and signed between Cameron and Vernon which allows the former to deal cocaine on the property of the latter is invalid due to the fact that neither of both parties can enforce it legally. The reason is because the contract was written and signed for an illegal purpose.