Answer:
6.68%
Explanation:
FV= 1000
N = 25*2=50
PMT= 8.75%*1000/2= 43.75
PV = -1250
I/Y = RATE(25*2, 8.75%*1000/2, -1200, 1000)
I/Y = 0.033397
I/Y = 3.34%
YTM = 3.34% * 2
YTM = 6.68%
the franlkin corpoation is expexted to pay a dividend of 1.01 per share at the end of the year the stock sells for 64.39 per shar required rate return is 7.75% what is the equiliburm growth rate
Answer:
The equilibrium growth rate is 6.18%.
Explanation:
This is calculated by using the Gordon growth model (GGM) formula which is based on the assumption that dividend growth rate will be stable year after year forever. The formula is as follows:
P = d / (r - g) ……………………………………… (1)
Where;
P = current share price = 64.39
d = expected dividend = 1.01
r = required return = 7.75%, or 0.0775
g = equilibrium growth rate = ?
Substituting the values into equation (1) and solve for g, we have:
64.39 = 1.01 / (0.0775 - g)
64.39(0.0775 - g) = 1.01
4.990225 - 64.39g = 1.01
4.990225 - 1.01 = 64.39g
3.980225 = 64.39g
g = 3.980225 / 64.39
g = 0.0618143345239944, or 6.18143345239944%
Rounding to 2 decimal places, we have:
g = 6.18%
Therefore, the equilibrium growth rate is 6.18%.
One of the major benefits of using a balanced scorecard is the recognition that business success is driven by factors in addition for the financials. True False
Answer:
True
Explanation:
The major benefits of using a balanced scorecard is the recognition that business success is driven by factors in addition for the financials.
This is true because the balanced scorecard helps in the balanced assessment of the different factors such as key strategic decisions etc are also responsible for an organization’s growth and developments asides the financials alone.
True, one of the major benefits of balanced scorecard is that its helps recognize factors which are necessary to drive a business success.
The Balanced scorecard is a management performance metric which helps to identify and improve the company's internal operations to help their external outcomes.
The Balanced scorecard forms part of internal factors which can be controlled and helps to measures past performance data as well as provides feedback to make better decisions.
Therefore, it is true that one of the major benefits of balanced scorecard is that its helps recognize factors which are necessary to drive a business success.
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Fowler, Inc., just paid a dividend of $2.55 per share on its stock. The dividends are expected to grow at a constant rate of 3.9 percent per year, indefinitely. If investors require a return of 10.4 percent on this stock, what is the current price
Answer:
The current price of the stock is $40.76
Explanation:
The computation of the current price is shown below:
Current price is
= Current year dividend ÷ (Required rate of return - growth rate)
= ($2.55 × (1 + 0.039) ÷ (10.4% - 3.9%)
= $2.6495 ÷ (0.104 - 0.039)
= $2.6495 ÷ 0.065
= $40.76
Hence, the current price of the stock is $40.76
We simply applied the above formula so that the correct value could come
And, the same is to be considered
The average lead time of a unit of product through a manufacturing station is 18 minutes. The average work in process inventory at this station has been 30 pieces. What is the production rate?
a. 3.0 pieces/min
b. 0.33 pieces/min
c. 1.66 pieces/min
d. 0.83 pieces/min
Answer:
Production rate = 1.66 pieces/min (Approx)
Explanation:
Given:
Average lead time = 18 minutes
Average work in process inventory = 30 pieces
Find:
Production rate
Computation:
Production rate = Average work in process inventory/Average lead time
Production rate = 30/18
Production rate = 1.66 pieces/min (Approx)
Which of the following is a type of advertising?
O A. Sponsoring a local charity event
O B. Visiting a potential customer
C. Creating commercials for television
O D. Mailing coupons to customers' homes
SUBMIT
The correct option is C. Creating commercials for television of the following is a type of advertising.
An average individual reads a newspaper for 30 minutes and listens to audiobooks for 10 to 15 minutes. The audience watches advertisements on television, second only to the internet. Television can be viewed in rural locations where connectivity is still a problem.
What is persuasive advertising?Consumers' preferences and interests are used by persuasive advertising to persuade them to buy a good or service. This type of advertising frequently emphasizes the advantages the product or service can provide the consumer.
A product, brand, or service is promoted to a viewership through an advertisement in order to pique their attention, encourage interaction, and increase sales. A key component of the app store, advertisements come in a variety of formats, from copy to interactive video.
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Assume that the custodian of a $810 petty cash fund has $182.50 in coins and currency plus $598.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:_____
a. A credit to Cash Over and Short for $628.
b. A debit to Petty Cash for $598.50.
c. A debit to Cash Over and Short for $29.00.
d. A credit to Cash for $598.50.
e. A debit to Cash for $570.
Answer: c. A debit to Cash Over and Short for $29.00.
Explanation:
Difference between petty cash allocation and petty cash balance and receipts
= 810 - (598.50 + 182.50)
= $29
This $29 will be debited to the Cash Over and Short Account along with Expenses of $598.50. The total of these two will then be credited to the Cash account to replenish the money in Petty Cash back to the allocation of $810.
____ is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks.
Answer:
Functional departmentalization.
Explanation:
Functional departmentalization is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks. Downward communication is used in functional departmentilazation.
Downward communication can be defined as the formal flow of information and messages within an organizational hierarchy; which is mainly from a higher level (senior management) of an organization to a lower level (middle management) and lastly, to the least (subordinates).
When downward communication are effectively and properly used in an organization, it helps them to achieve their aims, goals and objectives successfully.
A Parent company owns a 70 percent controlling interest in the voting common stock of its Subsidiary. The subsidiary also has outstanding 10,000 shares of 3% cumulative preferred stock outstanding with par value equal to $5,000,000. If the parent company owns none of the preferred stock, how should the preferred stock be accounted for in the consolidation financial statement?
How would your answer change if the parent company owned 100 percent of the preferred stock?
Answer and Explanation:
a. In the case when the subsidiary company owns none of the preferred stock so the income of the subsidiary and the net assets allocated to the preferred stocks that not owned by the parent would be involved in the non-controlling interest
b. Now if the parent company owned 100% of the preferred stock so the share of the income of the subsidiary and the net asset allocated to the preferred shares would be removed against the balance left in the investment account of the parent
What are the criteria Jason should use in evaluating investment alternatives? 2.What questions does this case raise that you need to have answered before you can invest your funds more intelligently? Where could you find answers to such questions?What are the criteria Jason should use in evaluating investment alternatives? 2.What questions does this case raise that you need to have answered before you can invest your funds more intelligently? Where could you find answers to such questions?What are the criteria Jason should use in evaluating investment alternatives? 2.What questions does this case raise that you need to have answered before you can invest your funds more intelligently? Where could you find answers to such questions?What are the criteria Jason should use in evaluating investment alternatives? 2.What questions does this case raise that you need to have answered before you can invest your funds more intelligently? Where could you find answers to such questions?What are the criteria Jason should use in evaluating investment alternatives? 2.What questions does this case raise that you need to have answered before you can invest your funds more intelligently? Where could you find answers to such questions?
he Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges of $69,000, (2) dividends received of $17,250, (3) dividends paid of $20,700, and (4) income taxes.What are the firm's income tax liability and its after-tax income
Answer:
(a) The firm's Income tax liability is $59,771.25.
(b) The firm's after-tax income is $233,478.75.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows
The Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges of $69,000, (2) dividends received of $17,250, (3) dividends paid of $20,700, and (4) income taxes. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall 50% of dividends received are tax exempt. What are the firm's income tax liability and its after-tax income?
The explanation to the anwer is now given as follows:
Adjusted taxable income = Income after operation - Interest charges + Taxable dividend received ................. (1)
Where;
Income after operation = $345,0000
Interest charges = $69,000
Taxable dividend received = 50% * $17,250 = $8,625
Substituting the values into equation (1), we have:
Adjusted taxable income = $345,000 - $69,000 + $8,625 = $284,625
(a) Income tax liability = Adjusted taxable income * Tax rate = $284,625 * 21% = $59,771.25
(b) After-tax income = (Adjusted taxable income - Income tax liability) + (50% of dividend received) = ($284,625 - $59,771.25) + (50% * $17,250) = $224,853.75 + $8,625 = $233,478.75
A 10-year 5.5 percent coupon bond was issued 3 years ago. It pays interest semiannually, and has a yield to maturity of 6.23 percent. What is the current market price of the bond
Answer:
The current market price of the bond is $959.09
Explanation:
Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Both of these cash flows discounted and added to calculate the value of the bond.
According to given data
Face value of the bond = F = $1,000 ( Assumed )
Coupon payment = C = $1,000 x 5.5% x 6/12 = $27.5
Number of periods = n = ( 10 years - 3 years ) x 12/6 = 14 period
Yield to maturity = 6.23% annually x 6/12 = 3.115% semiannually
Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $27.5 x [ ( 1 - ( 1 + 3.115% )^-14 ) / 3.115% ] + [ $1,000 / ( 1 + 3.115% )^14 ]
Price of the Bond = $308.22 + $650.87
Price of the Bond = $959.09
If demand for land increases, the rental price ________ and the equilibrium amount of land ________. Group of answer choices
Answer:
If demand for land increases, the rental price RAISES / INCREASES and the equilibrium amount of land REMAINS THE SAME.
Explanation:
The supply of some products is fixed in the short run and one example of this is land either for urban development or agriculture. It is possible but extremely expensive to "create" land, so the supply is usually considered constant. On the long run, humanity has managed to artificially create islands and expand cities, but these type of projects require a lot of money and take a lot of time.
The short run or the long run are not definite time spans. The short run refers to a period of time where one or more factors of production are fixed. While the long refers to a time period where all factors of production can change.
Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present value of $30 million. Firm A purchases B for $130 million. How much do firm A's shareholders gain from this merger?A. $30 millionB. $20 millionC. $15 millionD. $10 million
Answer:
A's shareholder would gain = $20 million
Explanation:
Given:
Value of firm A = $200 million
Value of firm B = $120 million
Cost saving = $30 million
Computation:
Premium paid = $130 million - $120 million
Premium paid = $10 million
A's shareholder would gain = Cost saving - Premium paid
A's shareholder would gain = $30 million - $10 million
A's shareholder would gain = $20 million
If the demand during review cycle is equal to 12, the demand during lead time is 11, and the safety stock is equal to 8, what is the order point
Answer:
the order point is 19
Explanation:
The computation of the order point is shown below:
Order point is
= Demand during lead time + safety stock
= 11 + 8
= 19
hence, the order point is 19
We simply applied the above formula so that the correct value could come
And, the same is to be considered
And ignored the demand during review cycle as it is relevant for the calculation of the order point
Flagstaff Company has budgeted July production of 8,200 units. Variable factory overhead is $1.2 per unit. Budgeted fixed factory overhead is $20,500, which includes $3,300 of factory equipment depreciation. Compute the total budgeted overhead for July.
Answer:
Allocated MOH= $30,340
Explanation:
Giving the following information:
Flagstaff Company has budgeted July production of 8,200 units. Variable factory overhead is $1.2 per unit.
Budgeted fixed factory overhead is $20,500
To calculate the allocated overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= (1.2*8,200) + 20,500
Allocated MOH= $30,340
Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the: _________
a. factory overhead cost controllable variance
b. factory overhead cost volume variance
c. factory overhead direct labor variance
d. standard capacity utlization variance
Answer:
B)factory overhead cost volume variance
Explanation:
From the question, there was an an assumption that the standard fixed overhead rate is based on full capacity, in this case the cost of available but unused productive capacity is indicated by the factory overhead cost volume variance. Factory overhead cost volume variance can be regarded as the difference that exist between the fixed overhead that is associated to those good/ service from the firm on production volume and the budgeted amount that is associated to goods) services that are been produced. fixed overhead costs
could be Factory rent and others.
Information management organizes data over time that will allow us to become more proficient in understanding data related to a company or business.
Below are the processes used to help organize information. Put these processes in order from the first step to the last.
= archiving information
= destruction of that information
= curation or organization of information
= dissemination or distrubuation of inforation
= collection of information
= storage of information
Answer:
=archiving information
Explanation:
How might you balance personal values with the desire to make a profit?
Answer:
Every investor who ventures into the world of stock investments and finance does so with the clear objective of obtaining an economic gain: it is his clear purpose, and there is no other reason to take the risk than to obtain a benefit greater than the risk assumed. .
Now, each investor is a completely different individual from the others, and in that tenor, each of them has personal values that may be completely different from each other. Thus, each investor must balance her economic interests with her personal values: for example, a conservative and religious investor must analyze in her private heart if she wishes to invest in a company that finances research on abortion.
In this context, in my case my personal convictions do not influence my work, that is, investing is part of my work activity and therefore, my opinions are put aside when considering the investment that can provide the most profits.
TIME REMAINING
53:22
Which of these is a banking activity of the Fed?
printing money
regulating securities markets
storing money for banks
funding government programs
Answer:
C
Explanation:
Answer:
C
Explanation:
Sixth Fourth Bank has an issue of preferred stock with a $6.30 stated dividend that just sold for $125 per share. What is the bank’s cost of preferred stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
5.04%
Explanation:
The stated dividend of sixth fourth bank is $6.30
It is sold at $125 per share
Therefore the bank's cost of preferred stock can be calculated as follows
= 6.30/125
= 0.0504 × 100
= 5.04%
At what point should consumers stop researching a product?
when the research costs more than the potential savings
when they want to make an immediate purchase
when the government does the research for them
when they know they have waited long enough to buy
Answer:
A. When the research costs more than the potential savings
This is correct on Edg :)
A consumer should stop researching a product when the research costs more than the potential savings.
What is a consumer?
A consumer is the final user of a purchased product or service. Consumers can either be an individual or group of people who purchase or use goods and services solely for personal use, and not for the manufacturing or resale.
Consumers are the people or organizations that purchase products or services. They are humans or other economic entities that use a good or service. Furthermore they do not sell on that that they bought.
They are the end-users in the sales distribution chain. A company that buys a printer for company use. The customer is the company who purchased the printer, and the consumers are the employees using the printer . The company doesn't intend to resell the printer.
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From 7 people comprising of 5 men and 2 women , 4 people are to be selected. If random variale is count of women, what is the frequency of 2 women?"
2
0
10
None of the above
Answer: 10
Explanation:
From the queen, we are informed that from 7 people comprising of 5 men and 2 women , 4 people are to be selected.
To calculate the frequency of 2 women we can. get goes thus:
= 5C2 2C2
= 5! / (5-2)!2!
= 5! /3!2!
= 5 × 4 × 3 × 2 / 3 × 2 × 2
= 10
Therefore, the frequency of 2 women is 10
Within the context of the circular flow of income model, what is the role of financial intermediaries?
Answer:
The role that financial intermediaries play in that diagram of the economy is to leakage or inject money.
Explanation:
To begin with, the concept known as "Circular Flow of Income" refers to a model that is famously known in the economics sciences due to the fact that it is a graphic that shows how the primary entities of the economy of a country interact with each other in order to have a particular outcome expected in the diagram. Therefore that in that context, the financial institutions play the role of intermediaries inside the flow meaning that the can they can either leakage or inject money to the flow. The first one they do it by helping the households to save money in accounts. And the second one they do it by helping the private sector in terms of investing regarding businesses.
Jarvis is a coffee farmer who wants to hedge his entire coffee crop that will be harvested by September. The December coffee contract (which consists of 37,500 pounds of coffee) is trading at $2.00 per pound, which the farmer views as a profitable price. To hedge the entire crop, which is expected to weigh 150,000 pounds, at the best price, Jarvis should:
Answer: Sell four December coffee future contracts at $2.00 per pound
Explanation:
Based on the scenario in the question, the number of contracts that is required for hedging the entire crop will be gotten by dividing the total number of crops by the pounds that are available in one contract. This will be:
= 150,000/37,500
= 4 contracts
Therefore, the answer will be for Jarvis to sell four December coffee future contracts at $2.00 per pound
A recession tends to cause the federal budget deficit to ________ because tax revenues ________ and government spending on transfer payments ________.
Answer: increase, fall, rise
Explanation:
A recession brings about a reduction in the activity in an economy as there is a reduction in the goods that are demanded. When there's recession, the budget deficit tends to worsen as government spends more. This is due to the fact that there's a reduction in the taxes as lesser goods are demanded and there's an increase in unemployment. Also, the government's spending on transfer payment will also increase.
For Oriole Company, actual sales are $1,450,000, and break-even sales are $971,500.
Required:
a. Compute the margin of safety in dollars.
b. Compute the margin of safety ratio.
Answer:
a. Margin of safety in dollars = $478,500
b. Margin of safety ratio = 33%
Explanation:
a. Margin of safety in dollars is calculated as;
= Actual sales - Break even sales
Given that;
Actual sales = $1,450,000
Break even sales = $971,500
Margin of safety in dollars
= $1,450,000 - $971,500
= $478,500
b. Margin of safety ratio is computed as;
= [(Actual sales - Break even sales) / Actual sales] × 100
= [($1,450,000 - $971,500) / $1,450,000] × 100
= [$478,500 / $1,450,000] × 100
= 0.33 × 100
= 33%
If taxes or assessments on leased premises are increased because of improvements made by the tenant the: ___________.
Answer:
The options are:
A.Landlord is only liable for such increase if the improvement stay within the property
B. Landlord is liable for such increases whether or not the improvements stay with the property
C. Landlord is liable for such increases only to the extent that the improvement actually increases the fair market value of the property.
D. Tenant is always liable for such increases.
The answer is A.Landlord is only liable for such increase if the improvement stay within the property
Taxes or assessments on leased premises are increased because of improvements made by the tenant and the Landlord is only liable for such increase if the improvement stay within the property.
On January 1, 2020, Ivanhoe Company purchased 12% bonds, having a maturity value $325,000 for $349,639.81. The bonds provide the bondholders or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $347,400 2023 $334,900 2021 $333,800 2024 $325,000 2022 $332,800 (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the joumal entries to record the interest revenue and recognition of fair value for 2020. (c) Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, e.g. 2,525.25.
Answer:
a. Ivanhoe Company
Journal Entries
Date Particulars and Explanation Debit Credit
1-Jan-20 Investment in Bond $325,000
Premium on bond investment $24,639.81
To Cash $349,639.81
(Being investment in bond recorded)
b. Ivanhoe Company
Journal Entries
Date Particulars and Explanation Debit Credit
31-Dec-20 Interest receivables $39,000
To Interest revenue $34,963.98
($349,639.81*10%)
To Premium on bond investment $4,036.02
(Being revenue recognition for bond interest
and premium amortized)
31-Dec-20 Fair value adjustment $1,796.21
To Unrealized holding gain or loss (OCI) $1,796.21
[$347,400 - ($349,639.81 - $4,036.02)]
(To record adjustment fair value)
c. Ivanhoe Company
Journal Entries
Date Particulars and Explanation Debit Credit
31-Dec-21 Unrealized holding gain or loss $9,160.38
To Fair value adjustments $9,160.38
([$349,639.81 - $4,036.02 - $4,439.62
+ $1,796.21) - $333,800]
(To record adjustment fair value)
Pacific Inc. has EBIT of $50m per year in perpetuity. The cost of capital of unlevered firm is 10%. Pacific's current market values of debt and equity are $100mm and $260mm respectively. Its corporate tax rate is 30%. What is the decrease in the firm's value due to expected financial distress costs?
Answer:
$20 mm
Explanation:
Calculation for What is the decrease in the firm's value due to expected financial distress costs
First step is to calculate the Value of unlevered firm using this formula
Value of unlevered firm = EBIT x (1 - tax) / Cots of capital
Let plug in the formula
Value of unlevered firm = 50 x (1 - 30%) / 10%
Value of unlevered firm= $350 mm
Now let calculate expected financial distress costs
Using this formula
Market Value of equity = Value of unlevered firm + Tax shield - Debt - Expected Financial Distress
Let plug in the formula
260mm= 350 mm+ 30% x 100mm - 100mm - Expected Financial Distress
260mm= 350 mm+ 30mm - 100mm - Expected Financial Distress
260mm= 280mm-Expected Financial Distress
Expected Financial Distress = $20 mm
Therefore the decrease in the firm's value due to expected financial distress costs will be $20 mm
Parkway Void Co. issued 16-year bonds two years ago at a coupon rate of 8.5 percent. The bonds make semiannual payments. If these bonds currently sell for 109 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
The annual YTM will be = 0.07518796992 or 7.518796992% rounded off to 7.52%
Explanation:
The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,
YTM = [ ( C + (F - P / n)) / (F + P / 2) ]
Where,
C is the coupon payment
F is the Face value of the bond
P is the current value of the bond
n is the number of years to maturity
Lets assume the par value is 1000.
Current value = 1000 * 109% = 1090
Coupon payment = 1000 * 0.085 * 6/12 = 42.5
Number of periods remaining till maturity = 14 * 2 = 28
semi annual YTM = [ (42.5 + (1000 - 1090 / 28)) / (1000 + 1090 / 2)
semi annual YTM = 0.03759398496 or 3.759398496% rounded off to 3.76%
The annual YTM will be = 0.03759398496 * 2 = 0.07518796992 or 7.518796992% rounded off to 7.52%