The dividend per share is closest to $0.01.
Annual dividend per share = Dividend yield ratio x Stock price
Stock price = Price-earnings ratio x Earnings per share
Substituting the given values, we get:
Stock price = 12.50 x 1.20 = $15.00
Using the dividend yield ratio, we get:
Annual dividend per share = 0.05 x $15.00 = $0.75
Dividend per share = Annual dividend per share / Number of common shares outstanding, end of the year
Dividend per share = $0.75 / 55,000 = $0.0136 or approximately $0.01
The stock price is the current market value of a company's publicly traded shares. It represents the price at which investors are willing to buy or sell a particular stock at any given time. Stock prices are determined by supply and demand in the market, which is influenced by various factors such as the company's financial performance, industry trends, economic conditions, and investor sentiment.
Stock prices can be volatile and can fluctuate rapidly in response to market news, earnings reports, political events, and other factors. Investors and traders use stock prices to make investment decisions, such as buying or selling stocks, and to track the performance of their investments over time.
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In the context of the criteria required for patent protection, to say that an invention must be ______ means that the invention must not be one that a person of ordinary skill in the trade could have easily discovered.
In the context of the criteria required for patent protection, to say that an invention must be non-obvious means that the invention must not be one that a person of ordinary skill in the trade could have easily discovered.
The non-obviousness requirement is one of the key criteria that must be met for an invention to be eligible for patent protection. In order to be considered non-obvious, an invention must involve a significant inventive step or leap beyond what is already known in the relevant field or industry. This means that the invention must not be something that would be obvious or predictable to a skilled person in the field.
The non-obviousness requirement serves an important purpose in the patent system, as it helps to ensure that patents are only granted for truly innovative and groundbreaking inventions, rather than for minor or incremental improvements that do not represent a significant advance over what is already known.
By requiring that inventions be non-obvious, the patent system seeks to encourage and reward true innovation, while discouraging the filing of frivolous or unwarranted patent applications. Ultimately, the non-obviousness requirement helps to promote competition, innovation, and progress in a wide range of industries and fields.
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A customer has an open order to sell 1,000 shares of ABC at $50 Stop. ABC declares a 10% stock dividend. After the ex date, the adjusted order on the member firm's internal order entry system would be:
In this scenario, the customer has an open order to sell 1,000 shares of ABC at $50 Stop, and ABC declares a 10% stock dividend. After the ex-date, the adjusted order on the member firm's internal order entry system would be:
1. Calculate the new total shares after the 10% stock dividend: 1,000 shares * 1.10 = 1,100 shares.
2. Determine the adjusted stock price: $50 / 1.10 = $45.45 (rounded to two decimal places).
3. Update the open order on the internal order entry system: Sell 1,100 shares of ABC at $45.45 Stop.
So, the adjusted order would be to sell 1,100 shares of ABC at $45.45 Stop on the member firm's internal order entry system.
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Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.
Under an integrated new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.
In this approach, all relevant departments, including marketing, engineering, production, and finance, work collaboratively from the start of the product development process until the product is introduced to the market. The integration allows for faster development and product launch, as there is less need for communication between departments and fewer delays in the product development process. Additionally, an integrated approach can lead to greater innovation, as different departments bring unique perspectives and expertise to the product development process. By working together, cross-functional teams can identify and solve problems earlier in the process, which can save time and money in the long run. Overall, an integrated new product development approach can help companies to be more efficient and effective in bringing new products to market.
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Boots Roofing just paid its annual dividend of $.90 a share. The firm recently announced that all future dividends will be increased by 3.5 percent annually. What is one share of this stock worth to you if you require a 12 percent rate of return
One share of Boots Roofing stock is worth $9.92 to an investor who requires a 12 percent rate of return.
To calculate the value of one share of Boots Roofing stock, we need to use the dividend discount model, which takes into account the present value of future dividends. We know that the current dividend is $.90 per share, and it will increase by 3.5 percent annually. To calculate the future dividends, we can use the formula:
D1 = D0 * (1 + g)
where D0 is the current dividend, g is the annual growth rate, and D1 is the future dividend.
So, for Boots Roofing, the future dividend for the next year would be:
D1 = $.90 * (1 + 0.035) = $0.93
To calculate the value of one share of the stock, we need to divide the future dividend by the required rate of return minus the growth rate. This formula is known as the Gordon Growth Model:
P0 = D1 / (r - g)
where P0 is the current stock price, D1 is the future dividend, r is the required rate of return, and g is the growth rate.
Plugging in the values, we get:
P0 = $0.93 / (0.12 - 0.035) = $9.92
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A method of allocating merchandise cost that assumes the sales in the period were made from the recently purchased merchandise and its earliest merchandise bought remains in the inventory is called the
The method of allocating merchandise cost that assumes the sales in the period were made from the recently purchased merchandise and its earliest merchandise bought remains in the inventory is called the First In, First Out (FIFO) method.
This method is widely used by businesses to calculate the cost of goods sold (COGS) and determine the value of ending inventory. The FIFO method assumes that the oldest inventory items in stock are the ones that remain unsold, while the newest ones are sold first.
Therefore, the cost of the goods sold is based on the cost of the oldest inventory, while the cost of the ending inventory is based on the cost of the newest inventory. The FIFO method is commonly used by businesses that deal with perishable or time-sensitive products, such as food or electronics.
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________ CRM systems use social media technology and services to enable organizations to engage their customers in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent manner.
Social CRM systems use social media technology and services to enable organizations to engage their customers in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent manner.
These systems are designed to enable businesses to interact with their customers in a more collaborative, transparent, and personalized manner, using social media platforms such as social media.
Social CRM systems provide a holistic view of customer interactions across multiple channels, including social media, email, phone.
They help organizations to monitor and analyze customer conversations, feedback, and sentiment on social media, enabling them to proactively respond to customer inquiries, complaints, and feedback in a timely and personalized manner.
In addition to customer engagement, social CRM systems enable organizations to gather valuable customer insights and feedback, which can be used to inform business decisions and improve customer experiences.
They allow businesses to segment customers based on their preferences, behavior, and interests, enabling targeted marketing campaigns and personalized offers.
Overall, social CRM systems enable businesses to build long-term relationships with their customers by providing a collaborative, transparent, and mutually beneficial customer experience.
By leveraging social media technologies and services, organizations can engage customers in a two-way conversation, fostering trust, loyalty, and advocacy, and ultimately driving business growth and success.
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Being able to keep costs low while changing the volume of production is an example of Select one: a. Continuous improvement b. Total quality management c. Simplicity d. Visibility e. Flexibility
Being able to keep costs low while changing the volume of production is an example of Flexibility.
Flexibility refers to the ability of a system or organization to adapt to changing circumstances or requirements, often without significant extra costs or delays. In the context of production, flexibility can refer to the ability to change the volume of production quickly and efficiently, without incurring significant additional costs. This can be achieved through measures such as flexible manufacturing systems, modular production processes, and lean production techniques that reduce waste and increase efficiency. By being able to adjust production volumes in response to changes in demand or other factors, companies can maintain profitability and competitiveness, while also delivering high-quality products and services to customers.
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The greater the degree of economic integration between markets in the home country and the base country:
The degree of economic integration between markets in the home country and the base country can have a significant impact on various aspects of the economy, including trade, investment, and overall economic growth.
If the degree of economic integration is high, it means that there are fewer barriers to trade and investment between the two countries. This can lead to increased trade flows, greater investment opportunities, and increased economic cooperation between the two countries. However, the degree of economic integration can also have negative consequences. For example, if the home country and base country are heavily reliant on each other for trade and investment, economic shocks in one country could have ripple effects in the other country, leading to instability and economic volatility.
In general, the greater the degree of economic integration between markets in the home country and the base country, the more important it becomes to closely monitor economic indicators and trends in both countries to ensure that any potential risks or imbalances are identified and addressed in a timely manner.
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____ apps allow you to create documents for business and personal such as word processing, presentation, calendar, contacts and personal finance.
Productivity apps allow you to create documents for business and personal use, including word processing, presentation, calendar, contacts, and personal finance.
These apps are designed to increase efficiency, organization, and productivity for users. These apps typically offer a wide range of features and tools to help users create and manage documents, presentations, spreadsheets, and more. With the increasing reliance on digital tools for work and personal use, productivity apps have become an essential part of many people's daily routines.
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Suppose a bank has $200,000 in deposits, a required reserve ratio of 15 percent, and total reserves of $100,000. Then it has excess reserves of
The bank has an additional $70,000 beyond the required reserves that it can use to extend loans to its customers. The required reserve ratio is in place to ensure the bank has enough funds to cover customer withdrawals, while the excess reserves can be used to generate revenue for the bank through lending.
We will first calculate the required reserves, excess reserves, and the number of loans the bank can extend. The question states that a bank has $200,000 in deposits, a required reserve ratio of 15 percent, and total reserves of $100,000.
Step 1: Calculate the required reserves.
Required reserves = Deposits × Required reserve ratio
Required reserves = $200,000 × 0.15
Required reserves = $30,000
Step 2: Calculate the excess reserves.
Excess reserves = Total reserves - Required reserves
Excess reserves = $100,000 - $30,000
Excess reserves = $70,000
In conclusion, given the bank's $200,000 in deposits, a 15 percent required reserve ratio, and total reserves of $100,000, it has excess reserves of $70,000. This means that the bank has an additional $70,000 beyond the required reserves that it can use to extend loans to its customers.
The required reserve ratio is in place to ensure the bank has enough funds to cover customer withdrawals, while the excess reserves can be used to generate revenue for the bank through lending.
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Given the following adjusted trial balance: Debit Credit Cash $748 Accounts receivable 944 Inventory 1406 Prepaid rent 39 Equipment 140 Accumulated depreciation-equipment $23 Accounts payable 37 Unearned service revenue 55 Common stock 96 Retained earnings 2975 Service revenue 166 Interest revenue 25 Salaries and wages expense 70 Travel expense 30 Total $3377 $3377 After closing entries have been posted, the balance in retained earnings will be:
To calculate retained earnings, we need to understand what closing entries are and how they affect the balance in retained earnings. Closing entries are journal entries made at the end of an accounting period to transfer the balances of temporary accounts (revenue, expenses, and dividends) to the retained earnings account. This is done to reset the temporary accounts to zero for the next accounting period.
In this case, we have the following temporary accounts:
- Service revenue
- Interest revenue
- Salaries and wages expense
- Travel expense
- Unearned service revenue
To close these accounts, we need to transfer their balances to the retained earnings account. We can do this with the following journal entries:
1. Close revenue accounts:
Debit Service revenue $166
Debit Interest revenue $25
Credit Retained earnings $191
2. Close expense accounts:
Debit Retained earnings $100
Credit Salaries and wages expense $70
Credit Travel expense $30
3. Close unearned service revenue:
Debit Retained earnings $55
Credit Unearned service revenue $55
After these closing entries have been posted, the balances in the temporary accounts will be reset to zero, and the balance in retained earnings will reflect the net income for the period. In this case, the net income is calculated as follows:
Service revenue $166
Interest revenue $25
Salaries and wages expense ($70)
Travel expense ($30)
Unearned service revenue ($55)
Net income $36
Therefore, the balance in retained earnings after closing entries have been posted will be $3,011 ($2,975 + $36).
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The weighted average cost of capital is defined as the weighted average of a firm's: Multiple Choice return on all of its investments. cost of equity, cost of preferred, and its aftertax cost of debt. pretax cost of debt and its preferred and common equity securities. bond coupon rates. common and preferred stock.
The weighted average cost of capital (WACC) is a financial metric used to measure a company's cost of capital. It is defined as the weighted average of the costs of each component of a company's capital structure, which typically includes debt, preferred equity, and common equity.
The correct answer is:
cost of equity, cost of preferred, and its after-tax cost of debt. The WACC formula takes into account the proportion of each component of a company's capital structure and the cost associated with each component. The formula is:
WACC = (E/V x Re) + (P/V x Rp) + (D/V x Rd x (1 - T))
Where:
E = Market value of the firm's equity
V = Total market value of the firm's equity and debt
P = Market value of the firm's preferred stock
Re = Cost of equity
Rp = Cost of preferred stock
D = Market value of the firm's debt
Rd = Cost of debt
T = Tax rate
The WACC is an important financial metric that is used to evaluate investment opportunities and make important financial decisions such as investment in new projects, capital expenditures, and mergers and acquisitions. The lower the WACC, the more attractive the investment opportunity is considered to be.
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A large retail store that wants to offer a broader variety of products or services on site than it would otherwise carry would most likely make an arrangement with a(n) ________.
A large retail store that wants to offer a broader variety of products or services on site than it would otherwise carry would most likely make an arrangement with a supplier or a vendor.
Suppliers are companies that provide products to retailers, while vendors are typically third-party providers of goods and services that are not available from the retailer's own inventory.
By partnering with suppliers or vendors, the retail store can expand its product or service offerings without having to invest in additional inventory or personnel. For example, a grocery store may partner with a local bakery to provide fresh bread and pastries on site, or a clothing store may partner with a shoe vendor to offer a wider selection of footwear.
This arrangement can be beneficial for both the retailer and the supplier or vendor, as the retailer can offer more to its customers and the supplier or vendor can reach a wider audience.
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A lessor has an account, Equipment Leased to Others, and the related account, Accumulated Depreciation: Equipment Leased to Others, on its year-end balance sheet. How should the lease related to these accounts be classified
The lease related to the accounts Equipment Leased to Others and Accumulated Depreciation: Equipment Leased to Others should be classified as an operating lease.
An operating lease can be defined as a contract that allows for an asset's use but does not convey ownership rights of the asset. These leases allow businesses to use the asset without incurring the high expenses involved in purchasing it. The business that leases the asset is called the lessee, and the business that loans it under a lease is called the lessor.
The lessor is leasing equipment to others, and the Accumulated Depreciation account reflects the depreciation of that equipment over time. This indicates that the lessor does not expect to transfer ownership of the equipment to the lessee at the end of the lease term, which is a characteristic of an operating lease.
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Teams with administrative oversight of their task domains are known as ______ teams. Multiple choice question.
Self-managing teams are groups of employees who have the autonomy and responsibility to make decisions and manage their own work processes, without the need for direct supervision. They are empowered to set goals, allocate resources, and make decisions about how to accomplish their work.
The teams with administrative oversight of their task domains are known as "Self-managing teams".
These teams are responsible for planning, organizing, directing, and controlling the activities within their task domains to achieve desired outcomes.
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One thing that can distinguish a manager from a leader is that a manager generally relies on ________ power, while a leader relies on __________ power.
One thing that can distinguish a manager from a leader is that a manager generally relies on legitimate power, while a leader relies on referent power.
Legitimate power comes from an individual's position or title within an organization. Managers have authority over their subordinates and can use this power to influence their behavior and decisions. In contrast, referent power comes from an individual's personal traits and qualities, such as charisma, expertise, and integrity.
Leaders who possess referent power are able to inspire and motivate their followers to achieve a common goal. They do not rely on their formal authority but rather on their ability to connect with others and earn their trust and respect.
While both legitimate power and referent power can be effective in influencing others, leaders who rely solely on legitimate power are often viewed as authoritarian and may struggle to gain the commitment and loyalty of their followers.
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The feasibility study prepared in connection with a new municipal revenue bond offering is performed by the:
The feasibility study prepared in connection with a new municipal revenue bond offering is performed by a specialized consulting firm or financial advisor.
The process begins with the municipality identifying the need for a project or improvement, such as building a new school or upgrading infrastructure. Next, the municipality engages a consulting firm or financial advisor with expertise in analyzing the financial and operational aspects of the project.
The feasibility study aims to assess the project's financial viability and determine whether it is likely to generate sufficient revenue to cover its costs and repay municipal bonds. This includes analyzing factors such as market demand, projected revenues, operating expenses, and debt service requirements.
In addition to financial analysis, the study also evaluates the project's social and environmental impact, ensuring it aligns with the community's needs and values. This may involve engaging with stakeholders and conducting public consultations.
Once the feasibility study is complete, the consulting firm or financial advisor presents their findings to the municipality. If the study concludes that the project is viable and can generate enough revenue to repay the bonds, the municipality may proceed with the bond issuance.
This involves engaging underwriters to market and sell the bonds to investors, who in turn provide the funding required for the project.
In summary, the feasibility study for a new municipal revenue bond offering is performed by a specialized consulting firm or financial advisor to assess the project's financial viability, social impact, and environmental considerations. This process helps ensure that the municipality only proceeds with projects that are financially sound and meet the community's needs.
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Which provision provides a loss of earnings benefit to an employee who returns to work after sustaining a total disability, if the insured's earnings are less than they were before the disability.
The provision that provides a loss of earnings benefit to an employee who returns to work after sustaining a total disability, if the insured's earnings are less than they were before the disability, is called the residual disability benefit.
The residual disability benefit is a provision in some disability insurance policies that provides partial benefits to an insured person who returns to work after a total disability but is still earning less than their pre-disability income due to their disability.
The benefit is calculated based on the percentage difference between the insured's pre-disability income and their current earnings.
For example, if an insured person's pre-disability income was $5,000 per month and they became totally disabled, but then returned to work and are currently earning $3,000 per month due to their disability, the residual disability benefit would make up the difference between their current earnings and their pre-disability income.
If the policy had a 50% residual disability benefit, the insured person would receive a benefit of $1,000 per month (50% of the $2,000 difference between pre-disability income and current earnings).
The residual disability benefit is designed to provide additional financial support to people who have returned to work after a total disability but are still experiencing a reduction in income due to their disability.
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Question 6 [20 marks]
Crazy8 Ltd is a public company listed on the NSE Ltd. Crazy8 Ltd imports and sells eccentric toys such as jumping castles for adults and miniature poker sets for children.
Crazy8 Ltd leases a low-value asset under a lease agreement with the following terms (the company elected, in terms of IFRS 16, not to capitalize the contract):
Lease term: 10 years (1 August 2010 â€" 31 July 2020)
Lease payments: First 12 months:
1 August 2011 â€" 31 July 2016
1 August 2016 â€" 31 July 2020
N$200 per month N$150 per month N$100 per month
5
All lease payments are payable monthly in arrears and include VAT at 14%. Crazy8 Ltd accounted for the lease as follows:
Financial year ended 31 December 2010:
Lease expense (P/L)
Bank
Lease payments: N$200 x 5 months
N$ DR
1 000
1 000
You may assume an unchanged normal tax rate of 29%. no journal entries relating to taxation have been processed by Crazy8 Ltd. All lease instalments were paid timeously.
Assume that all amounts are material.
Required:
a) Provide adjusting journal entries (you may ignore current tax implications) for the financial year ended 31 December 2010. You may not reverse or re-record any journal entries that were posted by Crazy8 Ltd. (10 marks)
b) Provide originating journal entries (you may ignore current tax implications) for the financial year ended 31 December 2011. (10 marks)
The journal entry above records the lease payments for the period of January 1, 2011, to December 31, 2011 (N$200 x 12 months). The lease expense is calculated by subtracting the VAT portion (14%) from the total lease payments.
a) Adjusting journal entries for the financial year ended 31 December 2010:
Since Crazy8 Ltd has elected not to capitalize the lease under IFRS 16, the lease payments will be recognized as a lease expense in the profit or loss statement. For the financial year ended 31 December 2010, only 5 months of lease payments need to be accounted for.
1. To account for VAT included in lease payments:
Lease Expense (P/L) Dr 877.19
VAT Input (P/L) Cr 122.81
Bank Cr 1,000
The journal entry above adjusts for the VAT included in the lease payments (N$200 x 5 months). The lease expense is calculated by subtracting the VAT portion (14%) from the total lease payments.
2. To record the prepaid lease expense for the period of August 1, 2010, to December 31, 2010:
Prepaid Lease Expense (BS) Dr 438.60
Lease Expense (P/L) Cr 438.60
The journal entry above records the prepaid lease expense, which represents the lease payments from August 1, 2010, to December 31, 2010, that will be recognized in the following year.
b) Originating journal entries for the financial year ended 31 December 2011:
1. To recognize the prepaid lease expense from the previous year:
Lease Expense (P/L) Dr 438.60
Prepaid Lease Expense (BS) Cr 438.60
The journal entry above recognizes the prepaid lease expense from the previous year as an expense in the current year.
2. To record the lease payments for the period of January 1, 2011, to December 31, 2011:
Lease Expense (P/L) Dr 2,105.26
VAT Input (P/L) Cr 294.74
Bank Cr 2,400
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Because most corporate bonds and all U.S. government debt securities are traded in the _____ market, this market regularly accounts for the largest total dollar value of all the secondary markets.
The "secondary market" is where bonds can be bought and sold after they are issued. Most bonds are exchanged over-the-counter between sizable broker-dealers operating on behalf of their clients or themselves.
While certain bonds are traded publicly through exchanges. Bonds are purchased and sold between investors through a broker on the secondary markets. In a way, bonds are traded like stocks on the secondary market, from investor to investor as opposed to from the borrower or corporation. Consider U.S.
Treasuries, the government of the United States' issued bonds, bills, and notes. The Department of the Treasury periodically announces fresh offerings of these debt instruments and sells them at auctions that take place often throughout the year. The primary market can be seen in action in this instance.
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quizelt With regressive taxes Group of answer choices higher income household pay a higher marginal tax rates higher income household pay a higher percentage of income all households pay the same rates lower income household pay a higher percentage of income
Regressive taxes are those taxes that have a greater impact on lower-income households than on higher-income households. This is because lower-income households have a smaller portion of their income available for taxation. Therefore, the higher percentage of income they pay towards taxes, the more it affects their overall financial well-being. In contrast, higher-income households have a larger portion of their income available for taxation. Therefore, even if they pay a higher marginal tax rate, it may still not have as significant an impact on their financial well-being as it does on lower-income households.
The most common example of regressive taxes is sales tax, which is a flat tax paid on goods and services purchased. Since all households pay the same rate, lower-income households pay a higher percentage of their income towards sales tax. On the other hand, progressive taxes, like income tax, increase the tax rate as the income level goes up. Therefore, higher-income households pay a higher percentage of their income towards taxes.
In conclusion, regressive taxes have a disproportionate impact on lower-income households, as they pay a higher percentage of their income towards taxes. In contrast, progressive taxes aim to reduce this impact by ensuring that higher-income households pay a higher percentage of their income towards taxes.
Hi! Your question relates to the characteristics of regressive taxes. In a regressive tax system, lower income households pay a higher percentage of their income in taxes compared to higher income households. This means that the tax burden falls more heavily on those with lower incomes, making the tax system less progressive.
To elaborate, here's a step-by-step breakdown of the answer choices:
1. Higher income households pay a higher marginal tax rate: This statement is incorrect for regressive taxes. In a progressive tax system, higher income households would pay a higher marginal tax rate.
2. Higher income households pay a higher percentage of income: This statement is also incorrect for regressive taxes. In a regressive tax system, higher income households pay a lower percentage of their income in taxes.
3. All households pay the same rate: This statement describes a proportional tax system, where every household pays the same tax rate regardless of their income level. This does not apply to a regressive tax system.
4. Lower income households pay a higher percentage of income: This statement is correct for regressive taxes. In this system, lower income households bear a larger tax burden in proportion to their income, making the tax less progressive.
In summary, the correct answer choice is "Lower income households pay a higher percentage of income," as this best describes the key characteristic of a regressive tax system.
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You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2,356 and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly four years and eight months old. You have just made your monthly payment. The mortgage interest rate is 6.375% (APR). How much do you owe on the mortgage today
We need to first calculate the remaining number of payments you have left on your mortgage. Since the original term of the mortgage was 30 years, and you have already paid for four years and eight months, that leaves 25 years and four months left.
To convert this into the number of payments left, we need to multiply the number of years by 12 (since there are 12 months in a year) and then add the remaining four months. So the total number of months left on your mortgage is:
25 x 12 + 4 = 304 months
Now, let's use this information to calculate how much you owe on your mortgage today. To do this, we need to use a mortgage amortization calculator, which takes into account your interest rate, the remaining number of payments, and the original loan amount.
Assuming that your original loan amount was $500,000 (just as an example), we can calculate your remaining balance using an online mortgage calculator. Using a 6.375% interest rate and 304 remaining payments, we get a remaining balance of $451,038.47.
So, to answer your question, you owe $451,038.47 on your mortgage today.
To determine how much you owe on your mortgage today, we'll need to calculate the outstanding balance. Here's a step-by-step explanation:
1. Determine the number of payments made: The mortgage is 4 years and 8 months old, so you have made (4 * 12) + 8 = 56 payments.
2. Calculate the monthly interest rate: The annual interest rate is 6.375%, so the monthly interest rate is (6.375% / 12) = 0.53125%.
3. Determine the original loan amount: Using the mortgage payment formula, we have P = ($2,356 * (1 - (1 + 0.0053125)^(-30 * 12))) / 0.0053125, which results in an original loan amount (P) of approximately $375,331.
4. Calculate the outstanding balance: Use the remaining balance formula, B = P * ((1 + r)^n - (1 + r)^p) / ((1 + r)^n - 1), where B is the outstanding balance, P is the original loan amount, r is the monthly interest rate, n is the total number of payments (30 * 12 = 360), and p is the number of payments made (56).
Plugging in the values, we get B = $375,331 * ((1 + 0.0053125)^360 - (1 + 0.0053125)^56) / ((1 + 0.0053125)^360 - 1), which results in an outstanding balance of approximately $363,085.
So, you owe approximately $363,085 on your mortgage today.
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Admire County Bank agrees to lend Bramble Brick Company $598000 on January 1. Bramble Brick Company signs a $598000, 7%, 9-month note. What is the adjusting entry required if Bramble Brick Company prepares financial statements on June 30
The adjusting entry required if Bramble Brick Company prepares financial statements on June 30 is $20,950.
The interest on the note is calculated as:
$598,000 x 7% x 9/12 = $31,425
As of June 30, the company has held the note for 6 months (half of 9 months). Therefore, the interest expense that has accrued but has not yet been paid is:
$31,425 x 6/9 = $20,950
The adjusting entry to record the accrued interest expense is:
Interest Expense $20,950
Interest Payable $20,950
This entry increases the interest expense and the interest payable accounts. The interest payable account represents the amount of interest that has accrued but has not yet been paid, while the interest expense account represents the cost of borrowing money.
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Jill Diamond bought a home for $190,000 with a down payment of $65,000. The rate of interest was 7% for 35 years. Her monthly mortgage payment is: Multiple Choice $843.75 $831.63 $1,213.83 $798.57
To determine Jill Diamond's monthly mortgage payment, we need to calculate the loan amount, interest rate, and the number of payments.
Loan amount = $190,000 - $65,000 = $125,000
Interest rate = 7% per year
Number of payments = 35 years * 12 months = 420 payments
To calculate the monthly payment, we can use the mortgage payment formula:
M = P * (r(1 + r)^n) / ((1 + r)^n - 1)
Where M is the monthly payment, P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the number of payments.
M = $125,000 * (0.07/12(1 + 0.07/12)^420) / ((1 + 0.07/12)^420 - 1)
After calculating, Jill Diamond's monthly mortgage payment is:
M = $831.63
So, the correct answer is $831.63.
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Functions provided by channel intermediaries that make the purchase process easier for customers and manufacturers are referred to as ________ functions.
Channel intermediaries provide facilitation functions that make the purchase process easier for both customers and manufacturers.
Facilitation functions provided by channel intermediaries include activities such as transportation, storage, sorting, grading, financing, and risk-taking. These functions help to bridge the gap between producers and consumers, making it easier for each party to conduct transactions with one another. For example, transportation functions allow goods to be moved from the manufacturer to the end customer, while storage functions ensure that products are available for sale when customers are ready to purchase them. Financing functions may include providing credit to customers, while risk-taking functions may involve assuming responsibility for losses due to theft or damage. All of these facilitation functions are designed to improve the efficiency of the channel and make the purchase process easier for all parties involved.
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A stock with an expected return of 11% is trading at $30. The risk-free rate is 2%, and the market risk premium is 7%. What will the market price of the security be if its beta doubles (and all other variables remain unchanged)
The market price of the security will be $6.25 if its beta doubles and all other variables remain unchanged.
To calculate the market price of the security if its beta doubles, we first need to calculate the current beta of the stock. We can use the following formula to do so:
Beta = (Expected Return - Risk-Free Rate) / Market Risk Premium
Beta = (0.11 - 0.02) / 0.07
Beta = 1.29
Now that we know the current beta of the stock, we can use the Capital Asset Pricing Model (CAPM) to calculate the new expected return:
Expected Return = Risk-Free Rate + Beta * Market Risk Premium
Expected Return = 0.02 + 2 * 0.07
Expected Return = 0.16
Next, we can use the new expected return to calculate the new market price of the security using the following formula:
Market Price = Expected Dividend / (Expected Return - Growth Rate)
Assuming that the expected dividend remains unchanged at $1 per share, and the growth rate is 0, we can plug in the new expected return to find the new market price:
Market Price = $1 / (0.16 - 0)
Market Price = $6.25
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Companies that manufacture goods and hold onto them for a while before selling them and companies that buy goods and hold them temporarily for resale have created ______.
Companies that manufacture goods and hold onto them for a while before selling them, as well as companies that buy goods and hold them temporarily for resale, have created inventories.
Inventories refer to the stocks of goods or materials that a company holds to meet the demands of its customers. Inventories can include raw materials, work-in-progress goods, and finished goods, and are a crucial component of many businesses, particularly those in the manufacturing and retail sectors. By holding inventories, businesses can meet customer demand quickly and efficiently, and can take advantage of economies of scale in their production and distribution processes.
However, holding too much inventory can be costly, as it ties up capital that could be invested elsewhere, and can result in increased storage and handling expenses. Therefore, effective inventory management is essential to ensure that a company has the right amount of inventory to meet demand while minimizing costs.
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Services high in ________ qualities are those services that have characteristics that the buyer normally finds hard to evaluate even after consumption.
Services high in credence qualities are those services that have characteristics that the buyer normally finds hard to evaluate even after consumption.
Credence qualities are attributes of a service that are difficult for the buyer to observe, evaluate, or verify even after consumption has taken place. This is because they are intangible and cannot be easily measured or compared. Examples of services high in credence qualities include professional advice, medical diagnoses, legal services, and financial planning.
As a buyer, understanding credence qualities is essential as they can impact your decision-making process and satisfaction with the service. To make informed choices, you should consider factors such as reputation, credentials, and referrals when selecting a service provider.
In summary, services high in credence qualities are those that are difficult for the buyer to evaluate after consumption as well due to their intangible and complex nature. Buyers should take extra care in selecting service providers with a strong reputation, credentials, and referrals to ensure they receive the best possible service.
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A policy whose objective is to tax or spend in such a way as to reduce the disparities of wealth between the highest and lowest income brackets is called
A policy whose objective is to tax or spend in such a way as to reduce the disparities of wealth between the highest and lowest income brackets is called a redistributive policy.
Redistributive policies aim to address income inequality by reallocating resources from the wealthiest individuals to those in lower income brackets. These policies often involve progressive taxation systems, where higher-income earners pay a larger percentage of their income in taxes compared to lower-income earners. The government then uses the revenue generated from progressive taxation to fund social programs and services, such as public education, healthcare, and social welfare, which primarily benefit those in lower income brackets.
In addition to progressive taxation, redistributive policies can also involve direct cash transfers to low-income households, subsidies for essential goods and services, and investments in public infrastructure that improve access to opportunities for economically disadvantaged individuals.
By implementing redistributive policies, governments aim to promote economic fairness, social cohesion, and equal opportunities for all citizens. These policies are often debated in political discourse, with some arguing that they are necessary to address growing income inequality and support social mobility, while others believe that such policies may disincentivize hard work and hinder economic growth.
In summary, a redistributive policy is designed to tax or spend in a manner that reduces wealth disparities between different income brackets, promoting a more equitable distribution of resources and opportunities across society.
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Greg purchased a life insurance policy which will pay $1 million to Jorge in the event of Carrie's death. Given this information Greg is the _________, Jorge is the __________ and Carrie is the __________.
Greg is the policyholder or the insured person who purchased the life insurance policy. Jorge is the beneficiary who will receive the $1 million payout in the event of Carrie's death.
Carrie is the person whose life is insured and whose death triggers the payment of the life insurance benefit to Jorge. It is important to note that a life insurance policy can have multiple beneficiaries, and the policyholder can choose who receives the benefit in the event of their death.
The beneficiary does not necessarily have to be a family member, and it is not uncommon for policyholders to choose a charity or organization as the beneficiary.
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