If the United States imports more than it exports, then Group of answer choices the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus. one can infer that the U.S. dollar would be under pressure to depreciate against other currencies. the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus, and one can infer that the U.S. dollar would be under pressure to depreciate against other currencies. none of the options

Answers

Answer 1

Answer:

the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.

Explanation:

A deficit can be defined as an amount by which money, falls short of its expected value.

In Financial accounting, deficit is usually as a result of revenue falling below expenses or expense exceeding revenue at a specific period of time.

For instance, if in a country liabilities exceeds assets or import exceeds export there would be a deficit in the financial account of the country.

This is simply as a result of a country having to import more goods and services than it is exporting to other countries in trade.

Generally, a deficit on the current account is because the value of goods and services exported is lower than the value of goods and services being imported in a particular country.

If the United States imports more than it exports, then the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus (all things being equal) because it is not selling its goods and services to other countries.


Related Questions

Jamarcus was his collegiate chapter's delegate at a national conference of a professional business fraternity, Phi Chi Theta, in which he is a member. When the business meeting was conducted, parliamentary procedure was used, and Jamarcus was not familiar with this. Thus, he looked to the others to learn how he should behave in this situation. What type of influence does this reference group exhibit? procedural transient substantive informational legal

Answers

Answer:

informational

Explanation:

Informational influence is defined as a new concept or information that occurs within a group and leads to change in group member attitudes, behaviour, and belief.

In the given scenario parliamentary procedure was used in a business meeting and Jamarcus was not familiar with this.

He looked to other group members to learn how he should behave in this situation.

In this case the group is providing information of proper way of behaving during the meeting.

Wildhorse Co. is a full-service manufacturer of surveillance equipment. Customers can purchase any combination of equipment, installation services, and training as part of Wildhorse’s security services. Thus, each of these performance obligations are separate with individual standalone selling prices. Laplante Inc. purchased cameras, installation, and training at a total price of $88,100. Estimated standalone selling prices of the equipment, installation, and training are $81,000, $6,300, and $2,700, respectively. How should the transaction price be allocated to the equipment, installation, and training?

Answers

WeAnswer:

Equipment $79,290

Installation $6,167

Training $2,643

Explanation:

Calculation to determine How should the transaction price be allocated to the equipment, installation, and training

First step is to calculate the total estimated fair value

Total estimated fair value = $81,000+$6,300+$2,700

Total estimated fair value =$90,000

Now let calculate How should the transaction price be allocated

Equipment= ($81,000 ÷ $90,000)*$88,100

Equipment= 90%*$88,100

Equipment=$79,290

Installation=($6,300 ÷ $90,000)* $88,100

Installation= 7%*$88,100

Installation=$6,167

Training=($2,700 ÷ $90,000)*$88,100

Training= 3%*$88,100

Training=$2,643

TOTAL

Equipment=$81,000

Installation=$6,300

Training=$2,700

Total $90,000

Equipment=$79,290

Installation=$6,167

Training=$2,643

Total $88,100

Equipment=90%

Installation=7%

Training=3%

Total 100%

Therefore the transaction price that should be allocated to the equipment, installation, and training are :

Equipment $79,290

Installation $6,167

Training $2,643

In this exhibit (Simultaneous Shifts in Demand and Supply), D1 and S1 are original supply and demand curves, and S2 and D2 are new curves. In this market, the change in supply may have resulted from: Select one: a. wage increases for the workers. b. an improvement in technology. c. a decrease in the number of sellers. d. all of the above.

Answers

Answer:

Simultaneous Shifts in Demand and Supply

In this market, the change in supply may have resulted from:

b. an improvement in technology.

Explanation:

An improvement in technology is the only correct option that can cause the change in supply from S1 to S2.  Wage increases for the workers increase the cost of production, which can decrease sales volume.  Similarly, a decrease in the number of sellers will most likely reduce sales volume instead of increasing it.

Matching. A shopper is in the grocery store, trying to decide whether to buy apples of a particular variety. Identify the food product attribute that most closely corresponds to each scenario. A. The shopper sees bruises on the apple. B. The shopper knows the apple variety tends to have a mealy texture. C. The shopper notices the PLU code, indicating the apple is USDA Organic.

Answers

Answer:

hi

Explanation:

hi i am new but i realy need this app

The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $157,452.975 / $157,452.975/ $157,452.975/ $157,452.975 The appropriate discount rate for this project is 15%. The internal rate of return (IRR) for this project is closest to ________.

Answers

Answer:

21%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-400,000.

Cash flow in year 1 - 4 = $157,452.975

IRR = 21%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

John received a promotion at work and felt new clothes would be necessary in the new position. John went to a local store and charged three ties on his charge account at a cost of $60 each. Bill, a friend of John's, saw a sidewalk vendor selling ties at a cost of three for $10 and bought three at that price. The friends compared purchases that night and found that they had purchased identical ties. John became enraged and said that he would not pay the charge-account bill because the ties were clearly not worth $60 each. Bill indicated that he would testify on John's behalf if litigation ensued. What would be the probable outcome of the lawsuit

Answers

Answer:

John will lose the lawsuit

Explanation:

Businesses have a right to set the price of their products, and when the customers considers the price and agrees with it the deal is sealed.

In the given scenario John made the purchase at $60 per tie and he was satisfied with the sale at point of purchase.

He only became enraged when Bill told him he bought his identical ties at $10.

John will lose a lawsuit of he fails to pay the charge-account bill because he willingly agreed to the $60 per tie price.

At December 31, 2021, Swifty Company had a credit balance of $15,400 in Allowance for Doubtful Accounts. During 2022, Swifty wrote off accounts totaling $12,800. One of those accounts of $3,000 was later collected. At December 31, 2022, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $30,600. Prepare journal entries to record the 2022 transactions of Swifty Company.

Answers

Answer:

Allowance for doubtful accounts Dr $12,800

Accounts receivables Cr $12,800

(To record amount written off)

Accounts receivables Dr $3,000

Allowance for doubtful accounts Cr $3,000

(To reverse writeoff)

Cash Dr $3,000

Accounts receivables Cr $3,000

(To record collection of writeoff)

Bad debt expenses Dr $25,000

Allowance for doubtful accounts Cr $25,000

Workings:

Balance before adjustment in Allowance             $5,600

for doubtful accounts (15,400-12,800+3,000)

Less: Required amount                                           $30,000

Additional provision required                               $25,000

Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities - production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:

Activity Cost Activity Base
Production Setup $250,000 Number of setups
Material Handling $150,000 Number of parts
General Overhead $80,000 Number of direct labor hours

Each productâs total activity in each of the three areas are as follows:

Product A Product B
Number of setups 100 300
Number of parts 40,000 20,000
Number of direct labor hours 9,000 12,000
What is the activity rate for General Overhead?
A. $4.00 per direct labor hour
B. $3.81 per direct labor hour
C. $6.71 per direct labor hour
D. $4.20 per direct labor hour

Answers

Answer:

General overhead= $3.81 per direct labor hour

Explanation:

Given the following information:

General Overhead $80,000 Number of direct labor hours

Number of direct labor hours 9,000 12,000= 21,000

To calculate the activity rate, we need to use the following formula:

Activity rate= estimated costs / total amount of allocation rate

General Overhead= 80,000 / 21,000

General overhead= $3.81 per direct labor hour

Vaughn Manufacturing records purchases at net amounts. On May 5 Vaughn purchased merchandise on account, $79000, terms 2/10, n/30. Vaughn returned $6700 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid. The amount to be recorded as a purchase return is

Answers

Answer:

Vaughn Manufacturing

Purchases at net value ($79000-2%)    $77,420.00

Less: Purchase return ($6700-2%)        $6,566.00

Net payable                                             $70,854.00

The amount to be recorded as a purchase return is $6,566. When net method is used all purchase is recorded assuming discount will be availed. Similarly when goods are returned that amount is also adjusted with discount.

(Hybrid costing) Pat Koontz makes necklaces from glass beads, metal beads, and natural beads. After reading about hybrid costing, she realized that the different types of necklaces did not cost the same amount of money to make, even though they took the same amount of time and effort to assemble. Koontz developed the following standard costs for each type of necklace:
Glass Metal Natural
Beads $24 $15 $ 7
Direct labor (1.5 hours) 15 15 15
Overhead (based on 1.5 hours) 8 8 8
Total $47 $38 $30
Koontz began 2010 with no beginning WIP Inventory after she experienced an extreme holiday rush. During January, 130 necklaces were started: 70 were glass, 25 were metal, and 35 were natural. At the end of January, 25 necklaces were not yet complete: 5 glass,13 metal, and 7 natural. The stage of completion for each cost component for the 25 unfinished necklaces was as follows:
Material 100% complete
Conversion 60% complete
a. Calculate the cost of necklaces completed during January.
b. Calculate the cost of necklaces in ending WIP Inventory.

Answers

Answer:

Pat Koontz

a. The cost of necklaces completed during January =  $96.16

b. The cost of necklaces in ending WIP inventory = $24.40

Explanation:

a) Data and Calculations:

                                                 Glass    Metal    Natural   Total

Beads                                        $24        $15        $ 7       $46

Direct labor (1.5 hours)                15          15          15         45

Overhead (based on 1.5 hours)   8            8           8         24

Total cost of production           $47       $38       $30      $115

                               Glass    Metal    Natural

Units started            70         25         35             130

Ending WIP                5          13           7               25

Units completed      65         12         28             105

Equivalent units:

                                 Glass             Metal             Natural

                            Mat. Conv      Mat. Conv      Mat. Conv

Units completed  65     65         12       12           28    28

Ending WIP            5        3         13        8              7      4

Equivalent units  70      68        25      20           35    32

Cost per equivalent unit:

                                            Glass                Metal               Natural

                                        Mat.   Conv      Mat.  Conv       Mat.  Conv  Total

Cost of production         $24    $23        $15     $23      $7      $23    $115

Equivalent units                70      68          25      20       35        32

Cost per equivalent     $0.42  $0.34     $0.60  $1.15  $0.20   $0.72

                                     Glass                Metal               Natural        Total

                                   Mat.   Conv      Mat.  Conv       Mat.  Conv

Cost per equivalent $0.42  $0.34   $0.60  $1.15    $0.20   $0.72

Equivalent units of

 Units completed      65     65         12       12           28    28

Units completed    $27.3  $22.1     $7.2   $13.8      $5.6  $20.16  $96.16

                                       Glass                Metal               Natural        Total

                                  Mat.   Conv      Mat.  Conv       Mat.  Conv

Cost per equivalent $0.42  $0.34   $0.60  $1.15    $0.20   $0.72

Ending WIP (equiva.)  5        3             13        8            7      4

Total cost                 $2.1    $1.02      $7.8    $9.2     $1.4    $2.88   $24.40

_____are short-term, specific targets which are attainable, measurable, and controllable.
A. Objective.
B. Policies.
C. Goal.
D. Standard operating procedures.

Answers

Answer:

A. Objective.

Explanation:

The objectives is the thing or the target that should be achieved it can be short term also there is some particular targets that could be achieved, measured and controlled

So according to the given situation, the correct option is a

Hence, the same would be considered

Carter Corporation's partial income statement after its first year of operations is as follows: Income before income taxes $3,750,000 Income tax expense Current $1,035,000 Deferred 90,000 1,125,000 Net income $2,625,000 Carter uses the straight-line method of depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The amount charged to depreciation expense on its books this year was $2,400,000. No other differences existed between book income and taxable income except for the amount of depreciation. Assuming a 20% tax rate, what amount was deducted for depreciation on the corporation's tax return for the current year

Answers

Answer: $2,850,000

Explanation:

The amount was deducted for depreciation on the corporation's tax return for the current year will be calculated as:

Defered income tax = $90,000

Tax rate = 20%

We will calculate the difference between the book income and the taxable income which will be:

= $90000 ÷ 20%

= $90000 × 100/20

= $90000 × 5

= $450000

Therefore, the amount that was deducted for depreciation on the corporation's tax return for the current year will be:

= $2,400,000 + $450,000

= $2,850,000

You just decided to begin saving for retirement. You will make deposits of $1,000 per month into a retirement account that earns 8.00% p.a. The first deposit is made today and the last deposit will be made when you retire exactly 30 years from today. (Note: you make 361 total monthly deposits into your retirement account.) You will begin to make withdrawals from the account the first month after you retire. If you plan to live an additional 25 years and leave $900,000 to your heirs, you will be able to withdraw $_____ each month. (Note: you make 300 total monthly withdrawals from your retirement account.)

Answers

Answer:

Monthly withdraw= $4,752.01

Explanation:

Giving the following information:

Monthly deposit= $1,000

Number of perios= 361 months

Interest rate= 0.08/12= 0.0067

First, we need to calculate the Future Value at the moment of retirement:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {1,000*[(1.0067^361) - 1]} / 0.0067

FV= $1,513,584.37

Now, we can calculate the monthly withdraw:

PV= 1,513,584.37 - 900,000= $613,584.27

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (613,584.37*0.0067) / [1 - (1.0067^-300)]

Monthly withdraw= $4,752.01

The following information is available for Pioneer Company:
Sales price per unit is $100. November and December, sales were budgeted at 2,920 and 3,510 units, respectively. Variable costs are 11 percent of sales (6 percent commission, 3 percent advertising, 2 percent shipping). Fixed costs per month are sales salaries, $5,300; office salaries, $2,700; depreciation, $2,900; building rent, $4,000; insurance, $1,500; and utilities, $700..
Required:
Determine Pioneer's budgeted selling and administrative expenses for November and December.

Answers

Answer:

15

Explanation:

The Assembly Department for Right pens has the following production data for the current month.
Beginning Work in Process Units Transferred Out Ending Work in Process
0 15,000 10,000
Materials are entered at the beginning of the process. The ending work in process units are 50% complete as to conversion costs.
Compute the equivalent units of production for (a) materials and (b) conversion costs.

Answers

Answer:

(a) materials =   25,000 units and

(b) conversion costs =  20,000 units

Explanation:

Note : I will assume the Weighted Average Cost Method for this question since the information provided allows so.

The equivalent units of production for

(a) materials and

Units Completed and Transferred    15,000

Units in ending Work in Process       10,000

Total                                                   25,000

(b) conversion costs.

Units Completed and Transferred    15,000

Units in ending Work in Process        5,000

Total                                                   20,000

In late 2020, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 6,000,000 shares of common stock carrying a $1 par value, and 2,000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock. On January 2, 2021, 4,000,000 shares of the common stock are issued in exchange for cash at an average price of $10 per share. Also on January 2, all 2,000,000 shares of preferred stock are issued at $20 per share. Required: 1. Prepare journal entries to record these transactions. 2. Prepare the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2021. (Assume net income for the first quarter 2021 was $1,600,000.)

Answers

Answer:

1. Jan-02

Dr Cash $ 40,000,000.00

Cr Common stock $ 4,000,000.00

Cr Paid-in capital – excess of par, common $ 36,000,000.00

Jan 02

Dr Cash $ 40,000,000.00

Cr Preferred stock $ 10,000,000.00

Cr Paid-in capital – excess of par, preferred $ 30,000,000.00

2. $81,600,000.00

Explanation:

1. Preparation of the journal entries to record these transactions

Jan-02

Dr Cash (4,000,000 x $10) $ 40,000,000.00

Cr Common stock ($1 par x 4,000,000 shares) $ 4,000,000.00

Cr Paid-in capital – excess of par, common $ 36,000,000.00

Jan 02 Cash (amount received) (2,000,000 x $20) $ 40,000,000.00

Preferred stock ($5 par x 2,000,000 shares) $ 10,000,000.00

Paid-in capital – excess of par, preferred (difference) $ 30,000,000.00

2. Preparation of the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2021.

Nicklaus Corporation

Balance Sheet-Shareholders' Equity Section

September 30, 2018

Shareholders' equity

Preferred stock, $5 par, authorized 2,000,000 shares, issued and outstanding 2,000,000 shares$ 10,000,000

Common stock, $1 par, authorized 6,000,000 shares, issued and outstanding 4,000,000 shares $ 4,000,000.00

Paid-in capital – excess of par $ 66,000,000.00

Retained earnings $ 1,600,000.00

Total shareholders' equity$ 81,600,000.00

Questionnaires on situational leadership often ask for respondents to look at specific applications of leadership styles within situations, which may result in _____. Group of answer choices negative perceptions toward organizations a wide range of responses that are hard to validate biased results in favor of situational leadership results that are not in favor of situational leadership

Answers

Answer:

biased results in favor of situational leadership.

Explanation:

A leader can be defined as an individual who is saddled with the responsibility of controlling, managing and maintaining a group of people under him or her.

Some types of power expressed by leaders are referent power, coercive, etc.

Situational leadership is a leadership style which typically involves the leader adapting his or her style to match or suit the current work environment and fits the level of development of the followers being led.

Questionnaires on situational leadership often ask for respondents to look at specific applications of leadership styles within situations, which may result in biased results in favor of situational leadership because each situation has a unique style that suits it.

For the year, Redder Company has cost of goods manufactured of $600,000, beginning finished goods inventory of $200,000, and ending finished goods inventory of $250,000. The cost of goods sold is​

Answers

Answer:

finished cost = $200,000

inventory cost=$250,000

manufactured cost= $600,000

cost of good= beginning inventory+purchase during period cost- ending inventory

$600,000+$200,000-$250,000

$550,000

12. Allen Steel Company is considering whether to build a new mill. If the interest rate falls, a. the present value of the returns from the mill will fall, so Allen will be less likely to build the mill. b. the present value of the returns from the mill will fall, so Allen will be more likely to build the mill. c. the present value of the returns from the mill will rise, so Allen will be less likely to build the mill. d. the present value of the returns from the mill will rise, so Allen will be more likely to build the mill.

Answers

Answer:

Allen Steel Company is considering whether to build a new mill. If the interest rate falls,

d. the present value of the returns from the mill will rise, so Allen will be more likely to build the mill.

Explanation:

A fall in the interest rate payable by Allen Steel Company will increase the present value of the returns that it can generate from building a new mill financed with debt.  This is an incentive for investors to build more capital assets to increase productive activities in the economy.  This is why the fall will most likely encourage Allen to build the mill.

Uber and Lyft Drivers Go on Strike This activity is important because fairness gives employees observable evidence of trustworthiness of a manager, company or other source. Managers should know the types of justice and how they can exhibit those to gain trust. Trust is a strong predictor of organizational commitment and a moderate predictor of job performance. The goal of this exercise is to demonstrate your understanding of justice, by reading a case and answering questions that follow. Read the following case about Uber and Lyft and answer the questions that follow. Uber and Lyft drivers went on strike in several U.S. major cities the week of May 6, 2019, holding rallies and, in some cases, drivers not working for 12 to 24 hours. The drivers were protesting a pay decrease per mile and seeking better benefits. Lyft and Uber drivers are independent contractors, so they do not qualify for the same benefits and protections that govern typical employees. Drivers aren't guaranteed minimum wage or overtime, for example. Currently, Uber offers some benefits for high volume drivers, such as discounts on car repair and maintenance. Lyft and Uber have pushed back, with Lyft saying that most drivers work 10 hours or fewer a week and wouldn't qualify for benefits anyway. The timing of the strikes was no accident because Uber faced its IPO (initial public offering) the same week. Since then, Uber reported its largest quarterly loss in August 2019 of $5.2 billion. Furthermore, Lyft's shares fell 20% since its March 2019 IPO. If drivers were considered employees, they would get the same benefits and labor protection of other employees. Legally, they would be entitled to unemployment insurance, health care subsidies, overtime pay and a guaranteed minimum wage, among other rights. The lawsuit currently progressing through the court system in California is projected to be passed into law by the state senate. Uber and Lyft are not the only companies using "gig" workers. For example, another booming business model is food delivery, like Grubhub and DoorDash. Part of these companies' pushback is saying they will not be able to employ as many people due to the costs of benefits. In California, Uber is estimated to have 140,000 drivers and Lyft to have 80,000 drivers. Barclays, a renowned worldwide financial services company, estimated that benefits, payroll taxes and workers compensation would cost Uber $508 million per year and Lyft $290 million per year, assuming the same number of drivers were employed. In June 2019, Uber's and Lyft's top executives joined together to write an op ed in the San Francisco Chronicle to explain their arguments and promise to address the quality of work and job security. In their op ed, the executives sought to provide information to the public and drivers about their positions regarding providing benefits to drivers, showing the desire to increase justice. By relying on a respected source of information (Barclays), the executives appeared to use the rule of Multiple Choice procedural: truthfulness informational; procedure O Interpersonal: Informational O о informational; truthfulness interpersonal: procedure Drivers sought to advocate not just for full-time drivers, but part-time drivers too, seeking justice according to the rule of Multiple Choice О accuracy. propriety O O representativeness. volce. O truthfulness Drivers stated that they should have benefits that represent the number of hours they work, more for full-time drivers and fewer for part-time drivers, in the same way the company provides for their corporate employees. This suggests the drivers' desire for benefits allocated according to . a type of justice. Multiple Choice equity, procedural O need; procedural O O equality procedural U equity, distributive O O need: distributive Because the Uber and Lyft drivers sought a decision through the standard mechanisms of the court system, they appear to have focused on a desire for what type of justice?
a. procedural
b. interpersonal
c. informational
d. interdependent
e. distributive

Answers

Answer:

By relying on a respected source of information (Barclays), the executives appeared to use the rule of:

informational truthfulness.

Drivers sought to advocate not just for full-time drivers, but part-time drivers too, seeking justice according to the rule of:

rule of propriety

When drivers stated that they should have benefits that represent the number of hours they work, more for full-time drivers and fewer for part-time drivers, in the same way the company provides for their corporate employees. This suggests the drivers' desire for benefits allocated according to:

equity type of justice.

When Lyft drivers sought a decision through the standard mechanisms of the court system, they appear to have focused on a desire for:

a. procedural justice.

Explanation:

Procedural justice requires fairness in the administration of justice and legal proceedings

Interpersonal justice implies that authorities treat people fairly.

Informational justice requires the provision of adequate information or explanation for decisions.

Interdependent justice describes fairness based on other agency relationships.

Distributive justice refers to strict equal treatment of all.

A municipal power plant uses natural gas from an existing pipeline at an annual cost of $10,000 per year. A new pipeline would initially cost $35,000, but it would reduce the annual cost to $4000 per year. Assume an analysis period of 20 years and no salvage value for either pipeline. The interest rate is 7%. Using the equivalent uniform annual cost (EUAC), should the new pipeline be built

Answers

Answer: EUAC of new pipeline of $7,303.75 is less than the $10,000 of old pipeline so new pipeline should be built.

Explanation:

Equivalent Uniform Annual cost can be calculated as:

= Reduction in annual cost + (Initial Cost/ Present value interest factor of annuity, 7%, 20 years)

= 4,000 + (35,000 / 10.5940)

= 4,000 + 3,303.75

= $7,303.75

Select the true statement about default risk. It is the risk that the bond's price will fall below its par value. Bondholders have a degree of legal protection against default risk, but it is not comprehensive. Default risk relates to a bond's periodic coupon payments, but not to its maturity payment. Bondholders are guaranteed to be repaid in full if a company enters bankruptcy.

Answers

Answer:

Bondholders have a degree of legal protection against default risk, but it is not comprehensive.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Default risk in bonds refer to the risk that a bond issuer (borrower) is unable to pay the principal or interest agreed upon in the contract with the bondholder (lender) in a timely manner.

Hence, the true statement about default risk is that bondholders have a degree of legal protection against default risk, but it is not comprehensive.

The true statement about default risk is: Bondholders have a degree of legal protection against default risk, but it is not comprehensive, Hence option B is correct.

Default risk refers to the risk that a borrower, such as a company or government, will be unable to meet its financial obligations, including the payment of interest and the repayment of principal on a bond.

While bondholders may have some legal protections in place, such as collateral or contractual agreements, these protections are not always comprehensive and may vary depending on the specific bond and its terms.

Therefore, bondholders face the risk of potential default, even though they may have some level of legal protection.

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Your company is estimated to make dividends payments of $2.1 next year, $3.6 the year after, and $4.2 in the year after that. The dividends will then grow at a constant rate of 6% per year. If the discount rate is 9% then what is the current stock price

Answers

Answer:

P0 = $122.79185  rounded off to $122.79

Explanation:

The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +  [(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

D1, D2, ... , Dn is the dividend expected in Year 1,2 and so ong is the constant growth rate in dividendsr is the discount rate

P0 = 2.1 / (1+0.09)  +  3.6 / (1+0.09)^2  +  4.2 / (1+0.09)^3  +  

[(4.2 * (1+0.06) / (0.09 - 0.06)) / (1+0.09)^3]

P0 = $122.79185  rounded off to $122.79

Strongheart Enterprises anticipated selling 27,000 units of a major product and paying sales commissions of $6 per unit. Actual sales and sales commissions totaled 27,500 units and $171,400, respectively. If the company used a flexible budget for performance evaluations, Strongheart would report a cost variance of: Multiple Choice $6,400F. $9,400F. None of the answers is correct. $9,400U. $6,400U.

Answers

Answer:

Flexible budget cost variance= $6,400 unfavorable

Explanation:

To calculate the flexible budget cost variance, we need to use the following formula:

Flexible budget cost variance= (standard costs*actual quantity) - actual costs

Flexible budget cost variance= (6*27,500) - 171,400

Flexible budget cost variance= 165,000 - 171,400

Flexible budget cost variance= $6,400 unfavorable

Anchor Company purchased a manufacturing machine with a list price of $91,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $3,400. Anchor paid $4,800 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $6,200 for the first year of operations. What is the cost of the machine

Answers

Answer:

$103,580

Explanation:

The Cost of Machine according to IAS 16 include Purchase costs less trade discounts and rebates plus any direct costs incurred to put the asset in the location and condition intended for use by management.

Calculation of the Cost of Machine

Purchase Price                                      $91,000

Cash discount $91,000 x 2%                ($1,820)

Transport Cost                                       $3,400

Installation  and testing costs               $4,800

Insurance costs                                      $6,200

Total Cost                                            $103,580

Therefore,

the cost of the machine is  $103,580

3. _________ is a type of form used to obtain important feedback from customers by

asking them to answer checklist.

A. Survey form

B. Bio-data form

C. Interview form

D. Health check form

4. This social benefit from patronizing products and services project how customers

wants to be ________ by others.

A. admired

B. accepted

C. perceived

D. acknowledged

5. Marketing companies exert effort to consider positive feelings provided to customers

in order to create __________ connection with them.

A. Social

B. Emotional

C. Functional

D. Economical​

Answers

Answer:

3. Survey form

4. accepted

5. emotional

Explanation:

Scenario: You are in the market for a new car. You do not have a trade-in, but you have saved $3,000 toward a down payment. You currently earn $3,750.00 gross monthly income, of which 28% is withheld for various deductions. You have heard of the 20% rule of thumb, but want to limit your payments to no more than 18% of your net monthly income because of other debt commitments. You currently have a credit score of 685. You expect to drive the car an average 15,000 miles per year.
You're considering purchasing a used-rather than new car. This strategy offers several advantages. Which of the following is not an advantage of purchasing a used car?
A. The reduced down payment required for the purchase
B. A lack of knowledge and confidence in the mechanical condition of the car
C. The price of the automobile
D. Avoidance of the vehicle's significant decrease in value due to depreciation

Answers

Answer:

B. A lack of knowledge and confidence in the mechanical condition of the car.

Explanation:

One need to be expert in analyzing a car condition in order to buy a used car. The used car is mechanically weak and the buyer should have good knowledge for the mechanical condition of the car. This is a disadvantage if a person has lack of knowledge in car mechanic when in a situation to buy a  used car.

Islander Inc. is a new firm in a rapidly growing industry. The company would be paying $2.50 in dividend next year. After that the company intends to grow the dividend at a 8% rate annually over a long period. You plan to buy the stock now and expect to sell it for $48.23 three years from now. What price must you pay now if your required rate of return is 10%

Answers

Answer: $42.93

Explanation:

To solve this question goes thus:

Year 1:

Cash flow = $2.50

PV at 10% = 0.9091

Present value = $2.27

Year 2:

Cash flow = $2.70

PV at 10% = 0.8264

Present value = $2.23

Year 3:

Cash flow = $2.92

PV at 10% = 0.7513

Present value = $2.19

Price at Year 3:

Cash flow = $48.23

PV at 10% = 0.7513

Present value = $36.24

Price to be paid = $2.27 + $2.23 + $2.19 + $36.24 = $42.93

Dry-Sand Company is considering investing in a new project. The project will need an initial investment of $1,200,000 and will generate $600,000 (after-tax) cash flows for three years. However, at the end of the fourth year, the project will generate -$500,000 of after-tax cash flow due to dismantling costs. Calculate the MIRR (modified internal rate of return) for the project if the cost of capital is 15 percent. The reinvestment rate is 12 percent. Multiple Choice 20.4 percent 11.5 percent 28.2 percent 12.6 percent

Answers

Answer:

12.6 percent

Explanation:

The First Step is to Calculate the Terminal Value at end of year 4.

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 4 - n)

                   = $600,000 x (1.15) ^ 3 + $600,000 x (1.15) ^ 2 + $600,000 x  (1.15) ^ 1 - $500,000 x (1.15) ^ 0  

                   = $912,525 + $793,500 + $690,000 - $500,000

                   = $1,896,025

The Next Step is to Calculate the MIRR using CFj Function of a Financial Calculator :

($1,200,000)           CFj

0                    CFj

0                    CFj

0                    CFj

$1,896,025    CFj

Now, Shift IRR/Yr we get 12.60 %

Therefore, the MIRR is 12.60 %.

Swifty Corporation had a 1/1/20 balance in the Allowance for Doubtful Accounts of $35500. During 2020, it wrote off $23000 of accounts and collected $8000 on accounts previously written off. The balance in Accounts Receivable was $780000 at 1/1 and $960000 at 12/31. At 12/31/20, Swifty estimates that 5% of accounts receivable will prove to be uncollectible. What should Swifty report as its Allowance for Doubtful Accounts at 12/31/20

Answers

Answer:

$48,000

Explanation:

What should Swifty report as its Allowance for Doubtful Accounts at 12/31/20?

Allowance for Doubtful Accounts 12/31/20 = Accounts receivable at 12/31 * Uncollectible percentage of Accounts receivable

Allowance for Doubtful Accounts 12/31/20 = $960,000 * 5%

Allowance for Doubtful Accounts 12/31/20 = $48,000

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