Answer:
23.975%
Explanation:
Calculation for Nanometrics required return
Using this formula
Required return = Risk free rate + (Beta*(Market rate - Risk free rate))
Where,
Risk free rate =3.5%
Beta=3.15%
Market rate =10%
Let plug in the formula
Required return = 3.5% +(3.15*(10%-3.5%)
Required return = 3.5% +(3.15*6.5%)
Required return = 3.5% + 20.475%
Required return = 23.975%
Therefore Nanometrics required return will be 23.975%
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 list of steps required to get the same regult each time a task or activity is performed is known as the:
Select one:
a. shop policy.
b. shop regulations.
c. shop procedure.
d. shop system.
Answer:
The answer is C. procedure
Explanation:
I found it here: https://quizlet.com/155356515/chapter-3-automotive-vocab-flash-cards/
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%
A bank charges a commercial borrower a 6.55 percent interest rate on a one-year loan. The bank also charges a 0.5 percent origination fee and requires compensating balances of 7 percent in the form of demand deposits. Reserve requirements are 10 percent. What is the promised gross rate of return on the loan?
Answer:
the promised gross rate of return on the loan is 7.52%
Explanation:
The computation of the promised gross rate of return is shown below:
= (Rate of interest + Origination fees) ÷ [1 - (Demand deposit x (1 - Reserve requirement)]
= (6.55% + 0.5%) ÷ [1 - (7% × (1 - 10%)]
= (0.0655 + 0.005) ÷ [1 - (0.07 × (1 - 0.10)]
= 0.0705 ÷ (1 - 0.063)
= 0.0705 ÷ 0.937
= 0.07524 or 7.52%
Hence, the promised gross rate of return on the loan is 7.52%
What benefit does a corporation have that a partnership and a sole
proprietorship do not?
A. An unlimited life span
B. A single owner
C. The ease of starting the business
D. Fewer rules and regulations
Answer:
A. An unlimited life span
Explanation:
Corporations, unlike partnerships and sole proprietorships, are fully separate legal entities from their owners, meaning that if the owners pass away or sell their shares in the corporation, the corporation can still continue to exist.
In fact, there are corporations that are over 100 years old, a lifespan that clearly very few humans surpass, let alone when taking into account the amount of years that usually takes a person to start a corporation.
17. On the circular flow diagram of the economy, the arrow from the producer sector to the
overseas sector usually represents
A. Export receipts
B. Import payments
C. Producer income
D. Tariffs
Answer:
A. Export receipts
Explanation:
This arrow represents dollars (or other currency) that are being received by domestic producers in exchange for the export of goods or services that they are sending overseas.
If the arrow was pointing backwards, it would represent dollars that are leaving the economy in order to pay for imports.
The item called "Export receipts" is the arrow on the circular flow diagram which depicts the producer sector to the overseas sector.
The Export receipts arrow the currency that are being received by domestic producers in exchange for the export of goods or services that they are sending overseas.
If the Export receipts arrow are pointing backwards,then, it means that dollars are leaving the economy in order to pay for imports.
Hence, the "Export receipts" is the arrow on the circular flow diagram which depicts the producer sector to the overseas sector.
Therefore, the Option A is correct.
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Snickers decides it wants to develop a broader customer base for its brand. It introduces the Snickers ice cream bar in the summertime to rave reviews. What brand strategy did Snickers employ with the new product rollout
Answer: brand extension
Explanation:
Brand extension is when a company with an already established brand uses this brand to launch new products or go into other product categories. The logic here is that with people trusting the brand, they will be more likely to give the new product a try.
This is what Snickers relied on. They are an established brand in candy, when they introduced another product under the Snickers name, people bought it and gave it rave reviews because they trusted Snickers already.
On March 10, 2019, Dearden, Inc., purchased 11,200 shares of Jaffa stock for $47 per share as a long-term passive investment. Dearden’s year ends on December 31. The following information pertains to the price per share of Jaffa stock:
Price
12/31/2019 $45
12/31/2020 48
12/31/2021 44
Dearden sold all of the Jaffa stock on September 12, 2022, at a price of $42 per share. Prepare any journal entries that are required by the facts presented in this case.
Answer:
Dearden, Inc.
Journal Entries to record the transactions:
March 10, 2019:
Debit Investment in Jaffa $526,400
Credit Cash $526,400
To record the purchase of 11,200 shares at $47 per share.
December 31, 2019:
Debit Loss on Investment $22,400
Credit Investment in Jaffa $22,400
To record the loss on investment from $47 to $45 per share.
December 31, 2020:
Debit Investment in Jaffa $33,600
Credit Gain on Investment $33,600
To record the gain on investment from $45 to $48 per share.
December 31, 2021:
Debit Loss on Investment $44,800
Credit Investment in Jaffa $44,800
To record the loss on investment from $48 to $44 per share.
September 12, 2022:
Debit Loss on Investment $22,400
Credit Investment in Jaffa $22,400
To record the loss on investment from $44 to $42 per share.
Debit Cash Account $470,400
Credit Investment in Jaffa $470,400
To record the sale of the investment in Jaffa at $42 per share.
Explanation:
For Dearden, Inc. journal entries are recorded on the acquisition date to record the purchase of the investment in Jaffa. Records are also made every December 31 to record the movements in the share price of the investment. Finally, on the date of disposal, records are also made to record the sale of the investment.
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
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.
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.
True of False: You can reduce impulse buying by doing research before each purchase.
Answer:
true
Explanation:
Monthly production costs in Pesavento Company for two levels of production are as follows:Cost .............................2,000 Units..........................4,000Indirect Labor..............$10,000..............................$20,000Supervisory Salaries.....$5,000.................................$5,000Maintenance.................$4,000..................................$7,000Indicate which costs are variable, fixed, and mixed and give the reason for each answer.
Answer:
Variable Costs : Supervisory $5,000
Fixed Costs : Salaries $5,000
Mixed Cost : Maintenance $4,000
Explanation:
Variable Costs
These costs vary in direct proportion with the amount of production.
Examples : Materials and Labor
Fixed Costs
Theses costs do not vary with amount of production but stays the same in the relevant range.
Examples : Salaries of Mangers
Mixed Costs
These contain a variable cost element and a fixed cost element
Examples : Telephone Bill and Maintenance Costs
Flight attendants rarely have to travel for their job. A True B. False
Answer:
B false
Explanation:
they have to travel cause the help out on the plane
Answer:
False
Explanation:
Flight attendants provide their assistance on planes, which travel around the world.
An effort to reduce externalities, through taxation comparable to the cost of the damage caused by the externality is a/an:_______
Answer: A 3 : Pigouvian tax
Explanation:
A Pigovian tax is one that is introduced on companies producing a negative externality in the environment. The tax imposed is the cost of the damage caused by the negative externality.
Pigovian taxes are done in an effort to dissuade companies from producing negative externalities such as pollution by charging them the correct amount for the damage they cause so that it forces them to seek better methods of production that would reduce the externality.
If taxes rise, then aggregate demand shifts:____________ a. left, making unemployment higher than otherwise. b. left, making unemployment lower than otherwise. c. right, making unemployment higher than otherwise. d. right, making unemployment lower than otherwise.
Answer:
a. left, making unemployment higher than otherwise
Explanation:
An increase in taxes is a contractionary form of fiscal policy. When taxes are increased, there is usually a decrease in aggregate demand because more taxes will cause a reduction in income which is goes further to cause a reduction in consumption. A rise in taxes will make businesses to lay off workers because there would be less money to pay all workers which makes the unemployment to be higher, thereby shifting aggregate demand inwards that is left of the aggregate demand curve.
Economics..Match the following..
Answer:
1
4
2
5
3
Explanation:
You purchased a share of a German firm's stock. The company did not pay out any dividends and the price of the stock rose by 15% over the year. In addition, the value of the Euro was $1.00 per Euro at the outset and it rose by 10% over the year. What was your total percentage rate of return in dollars for this investment
Answer:
16.67%
Explanation:
Holding period return = [(actual value - purchase cost) + dividends received] / purchase cost.
First we can calculate the HPR in euros = [(1.15€ - 1€) + 0€] / 1€ = 0.15 = 15%
We now need to convert our earnings to US dollars. We will gain an additional 10% due to the currency appreciation of the euro:
total percentage rate of return = 15% / (1 - 10%) = 15% / 0.90 = 16.67%
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.
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.
Sol purchased land as an investment on February 12, 2018 for $85,000. On January 31, 2019, Sol sold the land for $90,000 cash. What is the nature of the gain or loss?
Answer:
c)Short term capital gain.
Explanation:
Since in the question it is mentioned that the land is purchased by Sol as on Feb 12,2018 for $85,000 and the land was sold by Sol as on Jan 31, 2019 for $90,000 in cash
So as we can see the difference in the purchase date and sale date would be less than one year and the transactions related to the capital assets would be termed as capital gain
Since it is less than one year so it is a short term capital gain
Hence, the correct option is c.
As part of their annual evaluation, a violence prevention organization reported that their violence prevention program saved over one million dollars per year by preventing 300 shootings per year. What type of economic evaluation is this?
A. Cost description
B. Cost analysis
C. Cost comparison
D. Cost-effectiveness
E. There is not enough information to determine this.
Answer:
D. Cost-effectiveness
Explanation:
The cost effectiveness refers to an output where it is produced in a good way without incurring a lot of money
Here in the given situation, it is mentioned that the organization i.e. violence prevention reported the violence prevention that they saved over one million dollars in term of year by preventing the 300 shooting per yer
So this situation represents the cost effectiveness
hence, the correct option is d.
Al Dente Pasta Company overstated its inventory by $10 million at the end of 2021. The discovery of this error during 2022, before adjusting or closing entries, would require:_______.
Answer:
Retained earnings would be debited and inventory would be credited for $10 million each.
Explanation:
In the given scenario Al Dente Pasta Company overstated its inventory by $10 million.
This is an overstatement of assets of the company.
This also gives an understatement of the retained earnings of the company.
Adjusting entry in 2022 will now require Retained earnings would be debited and inventory would be credited for $10 million each.
Assume that a company’s beginning-of-period price is $10 per common share, its dividends are $0.55 per share, and its end-of-period price is $10.50 per common share. What is the company’s expected cost of equity capital?
Answer: 10.5%
Explanation:
The expected cost of equity capital is calculated by the formula;
= (Ending value of common share - Beginning value + Dividends) / Beginning value
= (10.50 - 10 + 0.55) / 10
= 10.5%
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.
You have assigned the following values to these three firms: Price Upcoming Dividend Growth BetaEstee Lauder $50.00 $1.70 16.50% 0.74Kimco Realty 82.00 1.68 11.00 1.51Nordstrom 10.00 0.60 13.00 1.02Assume that the market portfolio will earn 10.00 percent and the risk-free rate is 4.00 percent. Compute the required return for each company using both CAPM and the constant-growth model. (Do not round intermediate calculations and round your final answers to 2 decimal places and do not include a % symbol.)CAPM Constant-Growth Model
Estee Lauder required return ____.__% ____.__%
Kimco Realty required return ____.__% ____.__%
Nordstrom required return ____.__% ____.__%
Answer and Explanation:
The formula to compute the required rate of return using the CAPM and constant growth model is as follows
Under CAPM
The Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)
Constant growth model = Dividend ÷ Price + Growth rate
For Estee lauder,
Under CAPM = 4% + 0.74 × (10% - 4%)
= 4% + 0.74 × 6%
= 4% + 4.44%
= 8.44%
Under the Constant growth model
= $1.70 ÷ $50 + 16.50%
= 19.90%
For Kimco realty,
Under CAPM = 4% + 1.51 × (10% - 4%)
= 4% + 1.51 × 6%
= 4% + 9.06%
= 13.06%
Under the Constant growth model
= $1.68 ÷ $82 + 11%
= 13.05%
For Estee lauder,
Under CAPM = 4% + 1.02× (10% - 4%)
= 4% + 1.02 × 6%
= 4% + 6.12%
= 10.12%
Under the Constant growth model
= $0.60 ÷ $10 + 13%
= 19.00%
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.
Product-oriented layout is characterized by high demand for the same or similar products. Another name for this layout is
Answer:
Repetitive layout
Explanation:
In simple words, Product-oriented layouts can be understood as the model that is grouped around items with equivalent high low commodities or families. Consumer demand is strong enough to warrant the high investment in specialized equipment in such a design. The commodity is standardized or entering a life cycle period that justifies investments in advanced equipment.
On January 2 Fred paid $18,000 for 900 shares of common stock of Acme Company. Fred received a $0.80 per share dividend on the stock at the end of each year for four years. At the end of four years, he sold the stock for $22,500. Fred has a goal of earning a minimum return of 12% on all of his investments.
Required:
a. Determine the net present value.
b. Did Mr. Critchfield earn a 12% return on the stock?
Answer:
a) initial outlay = -$18,000
cash flow 1= $0.80 x 900 = $720
cash flow 2= $0.80 x 900 = $720
cash flow 3= $0.80 x 900 = $720
cash flow 4= $720 + $22,500 = $23,220
NPV = -$18,000 + $720/1.12 + $720/1.12² + $720/1.12³ + $23,220/1.12⁴ = -$1,513.95
b) no, he actually earned 9.43% (IRR) on the stock. If Fred had earned 12% or more, then the NPV would be positive.
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.