Answer:
$1,500
Explanation:
Based on the information given we were told that Eagle fills in the amount of $1,500 instead of the amount of $1,000 which Dan authorize Eagle to fill in which they went ahead to as well negotiates the check payable to First State Bank because Eagle owes First State Bank the amount of $1,500 which means that First State Bank which is an HDC, can enforce the check for the amount of $1,500 which was negotiated by Eagle to First State Bank.
Therefore First State, an HDC, can enforce the check for: $1,500
All of the following except ________ will help you integrate visuals and text in business documents.
The options are:
maintaining a balance between text and visuals
identifying the visuals with titles, captions, and legends
referring to visuals in the text
putting the visuals into a separate section, such as an appendix
Answer:
putting the visuals into a separate section, such as an appendix
Explanation:
In business documents making use of visuals is a great way to pass accross information.
When the visuals are integrated with text that further explains the concept being communicated it is easier to understand by the reader.
All the options given make use of various methods of integrated visuals and text except the following:
Putting the visuals into a separate section, such as an appendix.
When visuals are put in a seperate section away from other text it does not immediately give the reader an impression not what is being communicated. It does not effectively integrate text and visuals.
As the marginal propensity to consume (MPC) increases, the spending multiplier:______.a. remains the same. b. increases. c. decreases. If the marginal propensity to consume is 0.60, then, assuming there are no taxes or imports, what is the multiplier?
Answer:
b. increases ; 2.5
Explanation:
MPC stands for Marginal Propensity to Consume. In economics, the MPC may be defined as the metric that quantifies the induced consumption. It is the concept that determines that the increase in the spending of personal consumer occurs with increase in the disposable income.
It is estimated that as the MPC increases, the spending multiplier also increases. MCP is the ratio of consumption function to the disposal income change. When the MCp is 0.6, then the multiplier becomes 2.5 if there is no imports and taxes involved.
How long will it take $20,000 to grow to $24,000 if the investment earns interest at the rate of 6%/year compounded monthly
Answer:
It will take 37 months to reach the $24,000 objective.
Explanation:
i= 0.06/12= 0.005
To determine the time required for $20,000 to reach $24,000 at a rate of 0.05%, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(24,000/20,000) / ln(1.005)
n= 36.55 = 37
It will take 37 months to reach the $24,000 objective.
g A corporation had 70,000 shares of $7 par value common stock outstanding. The board of directors declared and issued a 50% stock dividend. The market value of the stock was $27 per share. What is the journal entry to record this stock dividend
Answer:
Journal Entry
Dr. Retained earnings ___________________ $945,000
Cr. Common Stock _____________________ $245,000
Cr. Paid in capital excess of par common stock $700,000
Explanation:
Stock dividend is the distribution of earnings for the period among the equity stockholders in the form of common stocks.
The Numbers of stocks issued can be calculated as follow
Numbers of stocks = Common stock outstanding x Stock dividend rate
Placing values in the formula
Numbers of stocks = 70,000 x 50% = 35,000
Now calculate the stock dividend value
Stock divdned = Numbers of stocks issued under stock dividend x Market value of stock = 35,000 x $27 = $945,000
The value upto the par is recorded in the common stock account and excess will be recorded in paid in capital excess of par common stock account.
Common Stock = 35,000 x $7 = $245,000
Paid in capital excess of par common stock = 35,000 x ( $27 - $7 ) = $700,000
g Distinguish between the total U.S. debt and the debt held by the public. Why is the debt as a percentage of GDP more relevant than the total debt
Answer:
The total US debt is all the money that the US federal government owes. While the debt held by the public is only the portion of the US debt held by private entities (e.g. private investors or foreign governments).
In the past (around 20 years ago), government debt owned by federal agencies was much higher, over 40%, with social security being the largest debt holder. This is called intragovernmental debt. That means that around 60% of the debt was held by the public. But in recent years this has changed. Currently. intragovernmental national debt has fallen to 23%. This means that the debt hold by the public is more or less 77%.
Even as intragovernmental debt has decreased, the total size of the national debt is not as important as the percentage of the national debt compared to the GDP. Currently, national debt represents 98.3% of the GDP which is the highest level since WWII. This is really something to worry about because the government spends a huge portion of its budget paying interests on existing national debt and the higher it is, the less money available for other expenses. As the national debt increases in relation to the GDP, it is more difficult for the country to pay it back. The said thing is that politicians do not pay for it, taxpayers pay it.
A 90-day note issued on April 10 matures on:
a. July 10.
b. July 11.
c. July 9.
d. July 12.
e. July 13.
A firm has a machine it can sell for $50,000. The book value of the machine is $20,000 at the moment. If the firm sells the machine today, what is the tax implication from the sale? Assume that the tax rate is 40%. Round to the nearest penny. If tax liabilities, type a negative sign in front. Do not include a dollar sign in your answer.
Answer:
-12,000.00
Explanation:
Tax implication from the sale = ($50000 - $20000)*40%
Tax implication from the sale = $30,000 * 40%
Tax implication from the sale = 12,000
Now, as there is capital gain, so that means the company will have to pay taxes of 12,000. So, this is a liability of 12,000 which means the answer is = -12,000.00
A company purchased factory equipment on April 1, 2014, for $96,000. It is estimated that the equipment will have a $12,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2014, is A) $9,600.B) $8,400. C) $6,300.D) $7,200.
Answer:
Depreciation for 9 month = $6,300
Explanation:
Given:
Cost of equipment = $96,000
Salvage value = $12,000
Use full life = 10 year
Total time in 1st year = 9 month
Find:
Depreciation for 9 month
Computation:
Depreciation = [(96,000-12,000)/10)]
Depreciation = 8,400
Depreciation for 9 month = 8,400 (9/12)
Depreciation for 9 month = $6,300
Nestlé of Switzerland is revisiting its cost of equity analysis. As a result of extraordinary actions by the Swiss Central Bank, the Swiss bond index yield (10-year maturity) has dropped to a record low of %. The Swiss equity markets have been averaging % returns, while the Financial Times global equity market returns, indexed back to Swiss francs, stands at %. Nestlé's corporate treasury staff has estimated the company's domestic beta at , but its global beta (against the larger global equity market portfolio) at .
a. What is Nestlé's cost of equity based on the domestic portfolio for a Swiss investor?
b. What is Nestlé's cost of equity based on a global portfolio for a Swiss investor?
Answer:
The numbers are missing, so I looked for similar questions to fill in the blanks:
Rf (Switzerland) = 0.54%
Rm (Switzerland) = 8.5%
Beta (Switzerland) = 0.919
Rm (global) = 9.06%
Beta (global) = 0.532
a. What is Nestlé's cost of equity based on the domestic portfolio for a Swiss investor?
Re (Switzerland) = Rf + [Beta x (Rm - Rf) = 0.54% + [0.919 x (8.5% - 0.54%)] = 0.54% + 7.32% = 7.86%
b. What is Nestlé's cost of equity based on a global portfolio for a Swiss investor?
Re (global) = Rf + [Beta x (Rm - Rf) = 0.54% + [0.532 x (9.06% - 0.54%)] = 0.54% + 4.53% = 5.07%
Consolidation Entry TL removes the gain on sale from an intra-entity land sale because the land remains under the control of the consolidated entity.a. True b. False
Answer:
True
Explanation:
In consolidation the intra-entity transaction takes place and the gain on these transactions are eliminated as the sale and purchases are taken place in the same entity as a group. At the time of consolidation of group account the gain arising from these types of transactions are eliminated because the asset is held by the same entity as a group but in the individual account of each company of the group the gain on these transactions are recorded and reported in the accounts.
The newspaper reported last week that Bennington Enterprises earned $34.04 million this year. The report also stated that the firm’s return on equity is 13 percent. Bennington retains 85 percent of its earnings.What is the firm's earnings growth rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))What will next year's earnings be? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars.)
Answer:
a.
15.29%
b.
$39,659,760
Explanation:
Note that the formula for return on equity provided below can be used to determine the earnings growth rate:
return on equity=earnings growth rate*retention rate
return on equity=13%
the earnings growth rate is the unknown
retention rate=85%
13%=the earnings growth rate*85%
the earnings growth rate=13%/85%=15.29%
The earnings next year=this year's earnings*(1+15.29% )
The earnings next year=$34,400,000*(1+15.29%)=$39,659,760
Barry’s expectation that employees will complete his requests immediately is typical of —— leaders.
Answer: Commanding leaders
Explanation: The commanding leader is a type of leadership where the leader is someone who is very controlling. These leaders are tough and direct people, they are those who take charge of situations regardless of what others may think.
In the commanding leadership style, the leader is someone very focused and does whatever it takes to get the desired results. They are often intimidating and expect their employees to always do what they ask.
Oil Well Supply offers 6.8 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is $1,000?
Answer:
Bond Price= $958.32
Explanation:
Giving the following information:
Face value= $1,000
Cupon= (0.068/2)*1,000= $34
Number of periods= 6/2= 12 semesters
YTM= 0.0768/2= 0.0384
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 34*{[1 - (1.0384^-12)] / 0.0384} + [1,000/(1.0384^12)]
Bond Price= 322.08 + 636.24
Bond Price= $958.32
The expected return of a portfolio is computed as ___________ and the standard deviation of a portfolio is ___________.
Answer:
The expected return of a portfolio is computed as PROBABILITY DISTRIBUTION OF THE PORTFOLIO'S POSSIBLE RETURNS and the standard deviation of a portfolio is BASED ON THE STANDARD DEVIATION OF EACH WEIGHTED ASSET'S RETURN.
Explanation:
The expected return of a portfolio is basically the sum of the expected returns of each individual asset, e.g. a portfolio is made up of two assets with equal weights.
Asset A's expected returns = 15%, with a probability of 0.4, 10%, with a probability of 0.2, and 1% with a probability of 0.4. This assets expected return = (15% x 0.4) + (10% x 0.2) + (1% x 0.4) = 8.4%
Asset B's expected return = 10%, with a probability of 0.3, 8%, with a probability of 0.4, and 6% with a probability of 0.3. This assets expected return = (10% x 0.3) + (8% x 0.4) + (6% x 0.3) = 8%
Portfolio's expected return = (8.4% x 1/2) + (8% x 1/2) = 8.2%
standard deviation = √variance
variance = [(weight stock A)² · (σ of stock A)²] + [(weight stock B)² · (σ of stock B)²] + (2 · weight of stock A · weight of stock B · covariance between stocks A and B)
Jefferson's recently paid an annual dividend of $1.31 per share. The dividend is expected to decrease by 4% each year. How much should you pay for this stock today if your required return is 16%? A 5.5 percent coupon bond ( coupon rate=5.5%) has a face value of 1,000 and a current yield of 5.64 percent. What is the current market price?
Answer:
a. The price that should be paid for Jefferson's stock today is $6.29.
b. The current market price is $975.18.
Explanation:
a. Calculation of the price to pay for the Jefferson's stock today
This can be calculated using the following formula:
P = D / (r - g) ............................ (1)
Where;
P = Price per share today = ?
D = Next dividend = Current dividend * (1 + Dividend growth rate) = $1.31 * (1 + (-0.04)) = $1.31 * (1 - 0.04) = $1.31 * 0.96 = 1.2576
r = Required return = 16%, or 0.16
g = Dividend growth rate = -4%, or -0.04
Substituting the values into equation (1), we have:
P = 1.2576 / (0.16 - (-0.04))
P = 1.2576 / (0.16 + 0.04)
P = 1.2576 / 0.20
P = 6.29
Therefore, the price that should be paid for Jefferson's stock today is $6.29.
a. Calculation of the current market price
This can be calculated using the following formula:
Current market price = (Coupon rate * Face value) / Current yield ............ (2)
Where;
Coupon rate = 5.5%
Face value = $1,000
Current yield = 5.64%
Substituting the values into equation (2), we have:
Current market price = (5.5% * $1,000) / 5.64%
Current market price = $55 / 5.64%
Current market price = $975.18
Therefore, the current market price is $975.18.
A family starts an education fund for their son Patrick when he is 8 years old, investing $500 on his eighth birthday, and increasing the yearly investment by $500 per year until Patrick is 21 years old. The fund pays 6% annual interest. What is the fund’s future worth after the deposit when Patrick is 21?
Answer:
The fund’s future worth after the deposit when Patrick is 21 is $8,713,691.01.
Explanation:
This can be calculated using the for formula for calculating the future value of a growing annuity as follows:
FW = C * (((1 + r)^n - (1 + g)^n) / (r - g))
Where;
FW = future worth or future value = ?
C = first deposit = $500
r = annual interest rate = 6%, or 0.06
g = growth rate of investment = Yearly investment increase / First deposit = $500 / $500 = 1
n = number of years = 21 - 8 + 1 = 14
Substituting all the values into equation (1), we have:
FW = $500 * (((1 + 0.06)^14 - (1 + 1)^14) / (0.06 - 1))
FW = $500 * ((1.06^14 - 2^14) / - 0.94)
FW = $500 * (2.26090395575443 - 16,384) / -0.94)
FW = $500 * (-16,381.7390960442 / -0.94)
FW = $500 * 17,427.3820170683
FW = $8,713,691.00853415
Rounding to 2 decimal places, we have:
FW = $8,713,691.01
Therefore, the fund’s future worth after the deposit when Patrick is 21 is $8,713,691.01.
Swifty Corporation sells one product and uses a perpetual inventory system. The beginning inventory consisted of 76 units that cost $22 per unit. During the current month, the company purchased 478 units at $19 each. Sales during the month totaled 360 units for $42 each. What is the number of units in the ending inventory
Answer:
Ending inventory in units= 194
Explanation:
Giving the following information:
The beginning inventory consisted of 76 units.
During the current month, the company purchased 478 units.
Sales during the month totaled 360 units.
To calculate the number of units in ending inventory, we need to use the following formula:
Ending inventory in units= total inventory - sales in units
Ending inventory in units= 554 - 360
Ending inventory in units= 194
The operating cycle of a company: Multiple Choice Is the time it takes to acquire a loan, pay the interest, and retire the loan by paying the creditor in full. Must be less than one year. Is the time it takes to purchase inventory, sell inventory, and collect cash from the sale. Is usually greater than one year.
Answer:
c. Is the time it takes to purchase inventory, sell inventory, and collect cash from the sale.
Explanation:
The operating cycle of a company in this context is the average period of time that is required for the company to make an initial outlay of cash to produce product and services, sell and receive cash from consumers in exchange of goods or services.
holdup bank has an issue of prefered stock witha standard deviation of $7 that just sold for $87 per share. What is the banks cost of prefered
Answer: 8.05%
Explanation:
From the question, we are informed that Holdup bank has an issue of prefered stock witha stated dividend of $7 that just sold for $87 per share.
The banks cost of prefered will be:
= Dividend / Stock value
= 7/87
= 0.0805
= 8.05%
When meeting someone from a different culture it is more useful to focus on ________, or central tendencies and patterns within a culture which recognize that there are variations of beliefs, behavior and values within that culture.
a. prototype
b. stereotype
c. halo bias
d. fundamental attribution error
Answer:
Option A: Prototype
Explanation:
culture is basically the way of life of people in a place. It is a system of beliefs, values, and ways of life that are shared or common with(by) a group of people.migration in the world today has made people with different cultures to be intertwined. Understanding your cultures is good but to foster growth, peace and love wherever we are among other cultures and traditions, one must learn to understand other people cultures around is as it will help in building faith, love and peace. Cultural differences appear in a number of important areas, including nonverbal signals, gender. Religion and attitudes toward work and success.
Focus on the original, early model,/sample(prototype), central tendencies and patterns within a culture will help us to recognize that there are a lot of difference in the beliefs, behavior and values within that culture.
Lawson Manufacturing Company has the following account balances at year end:
Office supplies $ 4,000
Raw materials 27,000
Work-in-process 59,000
Finished goods 109,000
Prepaid insurance 6,000
What amount should Lawson report as inventories in its balance sheet?
A) $109,000.
B) $113,000.
C) $195,000.
D) $199,000.
Answer:
C) $195,000.
Explanation:
Calculation for the amount that Lawson should report as inventories in its balance sheet
Raw materials 27,000
Add Work-in-process 59,000
Add Finished goods 109,000
Inventories $195,000
Therefore the amount that Lawson should report as inventories in its balance sheet will be 195,000
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1.6.2 Test (CST): Goals and Career Planning
Question 3 of 25
If Lucinda's top priority is being able to express her creative side, her most
likely long-term goal is to become a(n)
O
A. lawyer
B. interior designer
C. teacher
0
D. police officer
In developing its future strategy, CVS is focusing on Amazon, which is expanding into the healthcare business. What stage of the strategic management process does this represent?
a. Execute the strategies
b. Maintain strategic control
c. Assess the current reality
d. Formulate corporate, business, and functional strategies
e. Establish the mission, vision, and values statements
Answer: c. Assess the current reality
Explanation:
The stage of the strategic management process does this represent is assess the current reality. This is done in order to ascertain where the company stands. At this stage, anything that could be done differently in order to maximize efficiency is done. Some of the tools that are being used to address current reality are SWOT analysis, Benchmarking and forecasting.
Juanita is a citizen of Brazil but is working in Canada for a subsidiary of her company. Juanita is a(n) _____ manager.
a. ethnocentric
b. expatriate
c. geocentric
d. host-country
e. domestic
Answer:
b. expatriate
Explanation:
In this specific scenario, Juanita is an expatriate manager. Expatriate managers are just employees that are not native-born citizens from the country in which they are currently working in. Since Juanita is working in Canada but is not a Citizen of Canada then she is considered an expatriate. The main reason for hiring such an individual is that they most likely possess skills that only a few people may have due to many years of experience.
One example of consumers not knowing what they want is that, before purchase, consumers want products with many features, but after purchase consumers are more satisfied with products with fewer features. This is called:________
a. Feature frustration
b. Feature regret
c. Feature Fatigue
d. Feature apprehension
Answer:
c. Feature Fatigue
Explanation:
Feature fatigue is defined as the phenomenon where consumers are satisfied with buying products that are simple and easy to use as opposed to feature-rich products.
The various reasons consumers avoid feature-rich products are:
- Less quality due to rushed production to input many features
- Reduced usability of features. When features of a good are not used they tend to confuse user and sometimes reduce efficiency of use.
- Lack of understanding of complex features
- More stability of products with less features
Speedy gas
High Price Low price
Swifty Gas High Price $100, $100 $25,$150
Low price $150, $25 $50,$50
(Table: Two Rival Gas Stations) Use Table: Two Rival Gas Stations. The table shows a payoff matrix for two gas stations in a small town. Each firm can set either a high price or a low price, and customers view these two firms as nearly perfect substitutes. Profits in each cell of the payoff matrix are given as (Swifty's profit, Speedy's profit). Which statement describes a dominant strategy?
a. Swifty will always set a low price,no matter Speedy's choice.
b. Swifty will always set a high price,no matter Speedy's choice.
c. Swifty will set a low price when Speedy sets a high price,but Swifty will set a high price when Speedy sets a low price.
d. Swifty will set a high price when Speedy sets a high price,but Swifty will set a low price when Speedy sets a low price.
Answer:
a. Swifty will always set a low price,no matter Speedy's choice.
Explanation:
Swifty's dominant strategy should result in maximizing its profits regardless of what Speedy does. This is achieved by setting a low price, since that strategy could yield $150 + $50 = $200
If Swifty sets a high price it could earn = $100 + $25 = $125
Since $200 is higher than $125, then that would be Swifty's dominant strategy.
Ivanhoe Corporation has fixed costs of $518,400. It has a unit selling price of $8, unit variable cost of $6.40, and a target net income of $1,620,000. Compute the required sales in units to achieve its target net income.
Answer:
1,336,500 units
Explanation:
Selling price per unit $8
Less variable cost $6.40
Contribution per unit $1.60
Fixed cost $518,400
Target net income $ 1,620,000
Total amount required $2,138,400
Sales unit required = total amount required / Contribution per unit
= $2,138,400 / $1.60
= 1,336,500 units
Corporation borrows cash by signing a $90,000, 8%, eight-month note on December 1 with its local bank. The total cash paid for interest (only) at the maturity of the note by Lexter will be:______
a. $600
b. $3,600
c. $4,800
d. $7,200
Answer:
c. $4,800
Explanation:
Loan Note is the promissory document to repay a specific amount of loan after a specific time period along with interest applicable to the loan value using a specified rate.
Interest amount can be calculated as follow
Interest = Loan Note's face value x Interest rate x Numbers of months upto maturity / NUmbers of months in a year
Placing values in the formula
Interest = $90,000 x 8% x 8/12
Interst = $4,800
The total cash paid for interest (only) at the maturity of the note by Lexter will be: c.$4,800.
Using this formula
Total cash paid =Cash× Interest rate× Number of months
Where:
Cash=$90,000
Interest rate=8% or 0.08
Number of months=8/12
Let plug in the formula
Total cash paid=$60,000×0.08×8/12
Total cash paid=$4.800
Inconclusion the total cash paid for interest (only) at the maturity of the note by Lexter will be: c.$4,800.
Learn more here:https://brainly.com/question/14909363
What might be reasons that small-company stocks earn higher returns than large-company stocks on average?
Answer:
small company stocks are less safe and liquid and is more exposed to inflation
Explanation:
From the period of 1926 to 2010, the small company stock had the highest average return of securities as compared to the company stocks of large company. Some of the reasons for the highest return on average of a small company stock than the small company stock are :
1. The small company stocks are less safe.
2. The small company stocks are less liquid.
3.They are more exposed to the inflation.
2. _____ had the most volatile actual annual returns during 1926-2016. Small-company stocks Long-term corporate bonds Intermediate-term government bonds Large-company stocks U.S. Treasury bills
Answer: Small-company stocks
Explanation:
Small company stock returns are more volatile than the other options lifted and so had the most volatile actual annual returns during 1926-2016. This is because small companies are more prone to adverse market conditions than large-company stocks.
Long-term corporate bonds are more stable than stock in general and Government bonds as well as U.S. T-bills are usually the most stable of all the options.