Answer: 28%
Explanation:
First, we have to make an assumption that the initial wealth is 100, then the weight of the risk free asset will be:
= Amount invested in risk free / Initial wealth
= -100/100
= -1
The weight of the portfolio will be calculated as:
= 1 - weight of risk free asset
= 1-(-1)
= 1 + 1
= 2
Therefore, the expected return on the resulting portfolio will be:
= 2 × 16 + [(-1) × 4]
= 32 - 4
= 28
as students, what plan can you suggest to prevent the spread of these observable practices in your community
Answer:
[tex]\\ \dashrightarrow \:\bf \red{ ( 0.2×336)× (t-30) = (0.5×4.2×10³×30)}[/tex]
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. The project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. The tax rate is 21 percent.
a) what is the projects year 0,1,2,3 net cash flow?
b) if the required return is 12 percent, what is the project's NPV?
Answer:
Quad Enterprises
a. The project's net cash flow:
Year 0 -$2.32 million
Year 1 $857,150
Year 2 $857,150
Year 3 $857,150
b. The project's NPV is -$261,126
Explanation:
a) Data and Calculations:
Initial cost of investment in fixed asset = $2.32 million
Estimated annual sales = $1,735,000
Estimated annual costs = 650,000
Before-tax income $1,085,000
Company tax (21%) 227,850
Net income/cash flow $857,150
a. The project's net cash flow:
Year 0 -$2.32 million
Year 1 $857,150
Year 2 $857,150
Year 3 $857,150
b. The project's NPV, if the required return is 12%:
Period Cash Flows
Annuity Factor for 3 years at 12% = 2.402
Year 0 -$2.32 million -$2.32 million
Year 1 $857,150
Year 2 $857,150
Year 3 $857,150 $2,058,874 ($857,150 * 2.402)
NPV = -$261,126
You would like to use the periodic review model to compute the desired order quantity for a company. You know that vendor lead time is 5 days and the number of days between reviews is 20. Which of the following is the standard deviation of demand over the review period and lead time (sT L) if the standard deviation of daily demand is 8?
a. 40
b. 200
c. 8
d. 25
e. 100
Answer:
a. 40
Explanation:
The computation of the standard deviation of the demand is shown below:
= 8 × √(5+20)
= 8 × √25
= 8 × 5
= 40
Hence, the standard deviation of the demand is 40
Therefore the first option is correct and the same is to be considered
There are three uncertain (random) variables in this problem. Select the variables that should represent uncertainty in this model. Group of answer choices What type of fruit to grow Initial Research and Development Cost Salvage Price Yield Pre-Orders Picked up Pre-Orders Placed
Answer:
Yield
Pre orders placed
Pre orders picked.
Explanation:
Uncertain variables are those which can not be predicted. Output of uncertain variables may vary. A farmer has uncertain variables like yield of the crops, order placed and orders picked. Research and development cost is predictable and analysis make it easy to identify benefit of research.
____________ is a performance assessment in which companies identify which customers are leaving and measuring the rate at which they are leaving.
A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee. An investor who owns more than ____% of a company's voting stock has control over the investee.
Answer: 50%
Explanation:
The Equity Securities with controlling influence refers to the long-term investment whereby the investor exert controlling influence over the investee. In such case, the investors own 50% or more of the voting stock.
On the other hand, the Equity securities with significant influence refers to the long-term investment whereby the investor exerts significant influence over the investee. In such case, the investors own 20% or more of the voting stocks but should be less than 50%.
Camden Biotechnology began operations in September 2013. The following selected transactions relate to liabilities of the company for September 2013 through March 2014. Camden's fiscal year ends on December 31.Its financial statements are issued in April.2013a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $15,000,000 at the bank's prime rate (10.5% at the time). The company will pay no commitment fees.b. On October 1, borrowed $12 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 10% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note.c. Received $2,600 of refundable deposits in December for reusable containers used to transport and store chemical-based products.d. For the September-December period, sales on account totaled $4,100,000. The state sales tax rate is 3% and the local sales tax rate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.)e. Recorded the adjusting entry for accrued interest.2014f. In February, issued $10 million of 10-year bonds at face value and paid the bank loan on the March 1 due date.g. Half of the storage containers covered by refundable deposits were returned in March. The remaining containers are expected to be returned during the next six months.Required:1. Prepare the appropriate journal entries for these transactions.2. Prepare the current and long-term liability sections of the December 31, 2013, balance sheet. Trade accounts payable on that date were $252,000.
Answer:
Cash (Dr.) $12,000,000
Short term notes payable (Cr.) $12,000,000
Cash (Dr.) $2,600
Liability of refundable (Cr.) $2,600
Interest Expense (Dr.) $250,000
Interest Payable (Cr.) $250,000
Accounts receivable (Dr.) $4,100,000
Sales Revenue (Cr.) $3,977,000
Sales Tax Payable (Cr.) $123,000
Cash (Dr.) $10,000,000
Bond Payable (Cr.) $10,000,000
Explanation:
Liability Schedule 2013,
Accounts Payable $252,000
Current Portion of notes payable $2,000,000
Interest Payable $250,000
Sales tax Payable $123,000
Liability for refundable deposit $2,600
Total Current Liability $2,627,600
Spirit Company's sales budget shows quarterly sales for the next year as follows: Unit sales Quarter 1.......... 10,000 units Quarter 2.......... 8,000 units Quarter 3.......... 12,000 units Quarter 4.......... 14,000 units Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter of the next year would be:
Answer:
8,800 units
Explanation:
Calculation to determine what Budgeted production for the second quarter of the next year would be:
Second Quarter - Sales 8,000
Less: Beginning Finished Goods
(8,000 x 20%) (1,600)
Add: Desired Ending Finished Goods (12,000 x 20% ) 2,400
Budgeted Production 8,800 units
(8,000-1,600+2,400)
Therefore Budgeted production for the second quarter of the next year would be:8,800 units
The life of a sole proprietorship is limited. A sole proprietor can generally raise large sums of capital quite easily. Transferring ownership of a sole proprietorship is easier than transferring ownership of a corporation. A sole proprietorship is taxed the same as a C corporation. A sole proprietorship is the most regulated form of organization.
Answer: The life of a sole proprietorship is limited.
Explanation:
A sole proprietorship simply means a one man business where the owner manages, controls the business and enjoys the profits alone.
A sole proprietorship has a limited liability as its life is limited. Normally, the death of the owner would result in the end of the business and the owner bears the loss alone.
A A sole proprietorship is not taxed the same as a C corporation and it isn't the most regulated form of organization.
A company designs a training program for underperforming employees. They enroll in the program the employees who received the worst 10% of performance evaluations in a given year. They find that very few of the employees who go through the program are in the bottom 10% of performance evaluations the next year. What can they conclude about their new program
Answer:
They can conclude that the program was a success
Explanation:
They can conclude that the program was a success. The main goal of the program is to increase the performance of the employees that were performing the worst in the company. By choosing the bottom 10% of the performance evaluation, they make sure that they are getting the worst of the worst in the company. Therefore, if after the program, the subjects are no longer in the bottom 10% then this means that they have drastically increased their performance and have even passed those that were in a much higher performance ranking than them in the previous year. This means that the program exceeded its goal and can be marked as successful.
You want to take out a $125,000 mortgage. The interest rate on the mortgage is 5%, and the loan is for 30 years. How much will your monthly payments be
Answer: $671.03
Explanation:
The monthly payment will be an annuity because it will be constant. The loan amount will be the present value of the loan.
Periodic interest rate of loan = 5%/12 = 5/12%
Loan period = 30 * 12 months = 360 months
Present value of annuity = Annuity * ( 1 - ( 1 + rate) ^ -number of periods) / rate
125,000 = Annuity * ( 1 - ( 1 + 5/12%)⁻³⁶⁰) / 5/12%
125,000 = Annuity * 186.2816170
Annuity = 125,000 / 186.2816170
= $671.03
Answer:
Answer on the picture
Explanation:
) An organization that evaluates the performance of automobiles wants to predict the performance of used cars (cars that are more than one year old). The objective is to predict COST, the maintenance cost (in dollars) of used cars for the first year after they are purchased by a new owner. The explanatory variable is:
Answer:
The explanatory variable is:
period of usage.
Explanation:
As the explanatory variable, the period of usage of the car does not depend on the maintenance cost or its performance. Instead, the maintenance cost and the performance of the automobile, which are response or dependent variables, depend on the period of usage. Period of usage (time) is always an independent or explanatory variable. In this organization, the performance of the automobile does not depend on the maintenance cost, but the two dependent variables (performance and maintenance cost) depend on the period of usage.
You are annoyed by receiving identical marketing messages from an online shopping site you have used. If the company wishes to maintain a good relationship with you, which of the following CRM components needs to be addressed to improve customer satisfaction?
a. Privacy.
b. Mining social media inputs.
c. Cleaning up the data.
d. Customers expect more.
Answer: c. Cleaning up the data.
Explanation:
Cleaning up data in regards to Customer Relationship Management (CRM) refers to making changes to the messages sent to customers such that they are different or at the very least offer some new information that the customer has not seen before.
It is very important to do this because people do not like receiving the same messages over and over again as this could be considered spamming. This would lead to them unsubscribing from the service.
A TV manufacturing company uses speakers at the rate of 8000/mo. When it places an order for speakers it incurs a fixed cost of $1200. The monthly interest rate for keeping a speaker in stock is assessed at 1%/mo. The cost of the speaker depends on the order size. If less than 1000 speakers are ordered the cost is $11 each. When the order size is between 1000 and 10,000 the cost is $10.50/unit. For order sizes between 10,000 and 30,000 the cost is $10 per unit. For order quantities between 30,000 and 80,000 the cost drops to $9.50. Beyond 80,000 the cost is $9.25. Determine the optimum order size and time between orders if shortages are not allowed.
Please use excel to solve this problem. Show all cell formulas and parameters used.
Solution :
1. Ordering quantity 500 1000 10000 30000 80000
2. No. of orders 16 8 0.8 0.27 0.1
3. Average inventory 250 500 5000 15000 40000
4. Value of average 2750 5250 50000 142500 370000
inventory
5. Monthly total cost
a). Cost of material 88000 84000 80000 760000 740000
b). Ordering cost 19200 9600 960 320 120
c). Carrying cost 27.5 52.5 500 1425 3700
Total monthly cost 107227.5 93652.5 81460 77745 77820
Among the total monthly cost, $ 77,745 is the least cost.
Therefore, the optimum order size of quantity = 30,000
The number of orders per month = 8000/30000 = 0.267
Time between two consecutive orders = 30000/8000 = 3.75 months
_____ feasibility is the measure of how well a proposed solution will work in an organization and how internal and external customers will react to it.
Answer:
Operational
Explanation:
Operational feasibility is a strategic process that typically involves measuring how well a proposed solution to a particular problem will work in an organization while also determining how the organization's internal and external customers will react to the proposed solution.
As a general rule, it's very important and necessary that an organization carry out an operational feasibility so as to have a good knowledge and understanding of its proposed actions.
Answer:
Operational
Explanation:
Operational feasibility is the measure of how well a proposed solution will work in an organization and how internal and external customers will react to it.
Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 85,000 Total fixed manufacturing overhead cost $ 306,000 Variable manufacturing overhead per direct labor-hour $ 6.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 25 Total direct labor-hours 100 Direct materials $ 700 Direct labor cost $ 8,500 The total job cost for Job P951 is closest to:
Answer:
Total job cost $10,160
Explanation:
The computation of the total job cost is shown below:
Predetermined fixed overhead rate
= total fixed manufacturing overhead expense ÷ total direct labor hours
= $306,000 ÷ $85000
= $3.60 Per hour
Now
Particulars Cost
direct materials $700
Direct labor cost $8500
Fixed manufacturing overhead cost (100 × 3.60) $360
Variable manufacturing overhead cost (100 × 6.00) $600
Total job cost $10,160
Rizio Co. purchases a machine for $9,600, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $192 discount. Transportation costs of $217 were paid by Rizio. The machine required mounting and power connections costing $664. Another $313 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $245 worth of repairs were made.
Required:
Compute the cost recorded for this machine.
Answer:
$10,642
Explanation:
Computation to determine the cost recorded for this machine.
Amount included in the cost of equipment
Invoice price of machine $9,600
Less: Discount (9600 x 2%) ($192)
Net purchase price $9,408
($9,600-$192)
Freight charges $217
Mounting and power connections $664
Assembly $313
Materials used in adjusting $40
Total cost to be recorded $10,642
Therefore the cost recorded for this machine is $10,642
True or false. The primary functions of price in a free market are to inform, direct, and motivate consumers and firms.
Answer:
True
Explanation:
Prices in a free market co-ordinate the buying and selling decisions in the market. In their rationing role, prices inform the distribution of goods and other resources throughout the economy. Prices motivate firms by acting as incentives that provide a standard of measure of value throughout the world. Prices direct producers and consumers, thereby acting as signals to educate producers and consumers on how to adjust their production and consumption decisions.
Situation 1: There is a Head of Human Resource (HR) in a recognized Multinational National Company (MNC). You are a marketing executive in that company. You have made a communication with the HR regarding an emergency short time leave in a Critical moment of the Company’s turnover.
In this case how you will communicate with him and convince him to provide you a short-term leave. The things to be aware of.
1. HR is a rudy person.
2. He isn't very familiar with you.
3. Company is now at a Critical Moment and there is a lot of turnovers.
4. HR is about the age of 45+
And also provide an alternative answer if the situation gets negative over you.
Ans.
Answer:
As a marketing executive of the company looking to beg an emergency leave from a HR person who is considered to be rudy, unfamiliar with me, 45+ age and also that the company is experiencing a lot of turnovers, the best way to approach the HR would be to:
1. Write an official letter to him making the intentions clear.
2. Politely ask him to consider your request even though you two are not very familiar with each other.
3. Stress the importance of the emergency and why you have to leave.
Roberto Company uses a perpetual inventory system. On December 1, the company purchased $3,300 of merchandise for cash Complete the following journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns
Journal entry worksheet 1 Roberto Company uses a perpetual inventory system. On December 1, the company purchased $3,300 of merchandise for cash. Note: Enter debits before credits General Journal Debit Credit Date Dec. 1 Record entry Clear entry View general journal
Answer:
Dr Merchandise Inventory for $3,300
Cr Cash for $3,300
Explanation:
Based on the information given assuming On December 1, the company purchased $3,300 of merchandise for cash which means that the appropriate journal entry to record these Transaction will be:
Dr Merchandise Inventory for $3,300
Cr Cash for $3,300
A department that is capital-intensive most likely would use a predetermined departmental overhead rate based on which of the following activity bases?
a. units of direct material used
b. direct labor hours
c. direct labor cost
d. machine hours
Answer:
D)machine hours
Explanation:
It should be noted that department that is capital-intensive most likely would use a predetermined departmental overhead rate based on
machine hours.
A machine-hour can be regarded as measurement that is been used in applying factory overhead to manufactured goods. It's application is usually found in machine-intensive environments, environment whereby the amount of time that is expelled on processing by a machine is been regarded as largest activity that overhead allocations can be said to have based upon. Machine hour rate can be gotten by making division of the total running expenses of a machine by estimated number of hours for the machine to work at a specific period
During the year, Gary, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. At the end of last year, his stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct?a. Gary recognizes a $1,000 LTCG.b. Gary’s stock basis is $2,000.c. Gary’s ordinary income is $15,000.d. Gary’s tax-free return of capital is $11,000.
Answer: a. Gary recognizes a $1,000 LTCG
Explanation:
Long Term Capital Gain is calculated by the formula:
= Distribution from company - Basis in stock - Ordinary income earned during the year
= 16,000 - 4,000 - 11,000
= $1,000
First statement is therefore correct that Gary would recognize an LTCG of $1,000.
Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of $9,000, exports of $2,500, imports of $2,700, transfer payments of $750, capital depreciation of $800 and investment of $3,000. GDP equals:_______.A. $24,450B. $11,550C. $15,300D. $20,700
Answer:
C. $15,300
Explanation:
Calculation to determine what GDP equals:
Using this formula
GDP = Consumption + Investment spending + Government Spending + Net Export
Where,
Net Export = Export - Import
Let plug in the formula
GDP=$9,000 + $3,000 + $3,500 + ($2500 - $2700)
GDP= $15,300
Therefore GDP equals:$15,300
At the start of the year, your firm's capital stock equaled $10 million, and at the end of the year it equaled $15 million. The average depreciation rate on your capital stock is 20%. Net investment during the year equaled:________
a. $7 million
b. $4 million
c. $5 million
d. $3 million
Answer:
c. $5million
Explanation:
Net investment = Gross investment - Depreciation
Also, Net investment equals investment at the beginning of the year minus investment at the end of the year
Net investment = $15million - $10million
Net investment = $5million
Therefore, net investment during the year equals $5million
Suppose that $1 lottery tickets have the following probabilities and values: 1 in 5 to win a free ticket (worth $1), 1 in 100 to win $5, 1 in 100,000 to win $1000, and 1 in 10 million to win $1 million. What is the expected value of a lottery ticket to the consumer
Answer:
$0.36
Explanation:
Expected value of the lottery ticket = (p1 x a1) + (p2 x a2) + (p3 x a3) + (p4 x a4)
p1 = probability of winning $1 = 1/5 = 0.2
a1 = $1
p2 = probability of winning $5 = 1/100 = 0.01
a2 = $5
p3 = probability of winning $1000 = 1/100,000 = 0.00001
a3 = $1000
p4 = probability of winning $1 million = 1/10,000,000 = 0.0000001
a4 = $1 million
(0.2 x 1) + (0.01 x 5) + (0.00001 x 1000) + (1,000,000 x 0.00001) = $0.36
Chris plans on saving $4,000 a year at 4 percent interest for five years. Which one of these is the correct formula for computing the future value at Year 5 of these savings? Assume the payments occur at the end of each year. Click the answer you think is right. FVA $4,000 x [(1.04-1)10.04] FVA $4,000 x [(1.04-1)/0.04 FVA $4.000 x 1.04 FVA, $4,000 x [(1.04 -1/.04] x (1.04)
Answer: Closest answer is: FVA $4,000 x [(1.04-1)/0.04
Explanation:
Because the deposit is constant and occurs every period, it is an annuity.
The formula for the future value of an annuity is:
= Annuity * ( (1 + rate)^number of periods - 1) / rate
Correct formula is therefore:
= 4,000 * ( ( 1 + 4%)⁵ - 1) 4%+
= 4,000 * ( 1.04⁵ - 1 ) / 0.04
Closest answer is: FVA $4,000 x [(1.04-1)/0.04
One year ago, Richard purchased $1,260 worth of Double GG Corporation common stock for $42 per share. During the year, Richard received two dividend payments, each equal to $.05 per share. The current market value of the stock is $44 per share. What yield did Richard earn on his investment during the year
Answer:
Yield earned by Richard on his investment during the year is 5%.
Explanation:
This can be calculated as follows:
Number of shares purchased = Worth of common stock one year ago / Price per share one year ago = $1,260 / $42 = 30 shares
Total dividend received during the year = Number of shares purchased * Dividend per share * 2 = 30 * $0.05 * 2 = $3
Current worth of common stock = Number of shares purchased * Current market value per share = 30 * $44 = $1,320
Yield earned during the year = (Current worth of common stock - Worth of common stock one year ago + Total dividend received during the year) / Worth of common stock one year ago = ($1,320 - $1,260 + $3) / $1,260 = 0.05, or 5%
Therefore, yield earned by Richard on his investment during the year is 5%.
Wagner Assets Management Group holds 3 stocks in their investment portfolio. The amount of the investment and beta of each stock is listed below.
Stock Investment Beta
A $ 200,000 1.50
B 300,000 ??
C 500,000 1.20
If the beta of the portfolio is 0.75, what is the beta of stock B?
Answer:
-0.5
Explanation:
Stock Investment (W) Beta (B) W*B
A 200,000 1.50 300,000
B 300,000 X 300,000X
C 500,000 1.20 600,00
1,000,000 900,000+300,000X
Using the formula of Beta of Portfolio to find out X
0.75 = 900,000 + 300,000X / 1,000,000
0.75 * 1,000,000 = 900,000 + 300,000X
750,000 = 900,000 + 300,000X
750,000 - 900,000 = 300,000X
-150,000 = 300,000X
X = -150,000 / 300,000
X = -0.5
So, the beta of stock B is -0.5.
A company has an overhead application rate of 124% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $24,000?
Answer:
$29,760
Explanation:
Overhead application rate = 124% of direct labor cost
The required total labor costing = $24,000
Total overhead applied = Overhead application rate * $24,000
Total overhead applied = 124% * $24000
Total overhead applied = $29,760
The highest rate of entrepreneurship activity is in the 55-64 age group! Since 1966. older Americans have opened businesses at a higher rate that 20-34 year olds. 1. Can you think of reasons (other than experience and funding) that older entrepreneurs are successful
Answer:
In simple words, Older businessmen have previously experienced a variety of professional and personal conditions. They have more faith in their own abilities and capabilities than a new entrepreneur. Excellent leadership and delegating abilities arise from such conviction, and that is something that youthful entrepreneurs likely to develop only via trial & error.