Answer: False
Explanation:
When interest rates rise, the present value of a payment will be reduced because it will be discounted by a higher rate.
For instance; assume the interest rate was originally 10%. The present value of the $300 would be;
= 300 / ( 1 + 10%)
= $273
Now assume the interest rate went up to 11%. Present value would be;
= 300 / ( 1 + 11%)
= $270
Notice that the present value fell when the interest rate rose.
What is the degree of alignment between what Netflix is currently
doing (actions) and their mission, vision, values, structure, and culture.
Kendrik was frustrated that his DVD player wouldn't play a DVD he purchased while on vacation in Great Britain. When he called the manufacturer to complain, he was told that European DVDs are formatted differently and won't play on all machines. This is evidence of how ________ can place a constraint on global markets.
Answer:
Kendrik was frustrated that his DVD player wouldn't play a DVD he purchased while on vacation in Great Britain. When he called the manufacturer to complain, he was told that European DVDs are formatted differently and won't play on all machines. This is evidence of how __location______ can place a constraint on global markets.
Explanation:
Production location can place some constraints on global markets, especially when different standards are applied. To avoid this problem, there is the need to formulate international standards for the production of goods and services. Without some internationally-accepted standards, local production may not satisfy the global market.
In Windows Media Player, people can play audio CDs, data CDs, and data DVDs that contain music or video files.
Kendrik was frustrated that his DVD player wouldn't play a DVD he purchased while on vacation in Great Britain. When he called the manufacturer to complain, he was told that European DVDs are formatted differently and won't play on all machines. This is evidence of how Location can place a constraint on global markets.
Global markets can be constrained by production location, especially when different standards are applied.
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Belle Corp. has a selling price of $56 per unit, variable costs of $46 per unit, and fixed costs of $77,000. What sales revenue is needed to break-even
Answer:
Break-even point (dollars)= $431,200
Explanation:
Giving the following information:
Selling price= $56 per unit
Unitary variable costs= $46
Fixed costs= $77,000
To calculate the break-even point in sales, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 77,000 / [(56 - 46) / 56]
Break-even point (dollars)= $431,200
If $2000 is invested at 2% interest, find the value of the investment at the end of 6 years if the interest is compounded as follows. (Round your answers to the nearest cent.)
Answer:
Results are below.
Explanation:
Giving the following information:
Initial investment= $2,000
Ineterest rate= 2%
Number of years= 6 years
First, we will calculate the future value if the interest is compounded annually, semiannually, and quarterly:
FV= PV*(1+i)^n
Annually:
n= 6
i= 0.02
FV= 2,000*(1.02^6)
FV= $2,252.32
Semiannually:
n=12
i= 0.02/2= 0.01
FV= 2,000*(1.01^12)
FV= $2,253.65
Quarterly:
n= 24
i=0.005
FV= 2,000*(1.005^24)
FV= $2,254.32
Now, if instead of compounding interest, it is simple interest:
FV= (PV*i*n) + PV
FV= (2,000*0.02*6) + 2,000
FV= $2,240
You are the CFO of a regional manufacturing firm. They need to raise more capital for an expansion project. You have been asked to talk with regional banks to secure a loan. Your firm has a Current Ratio of 1.0, a Quick Ratio of 0.5, and a TIE ratio of 1.3.
Required:
What would you tell the firm's management about your chances of securing a loan with preferentially low interest rates?
Answer:
(C) tell management that the company has borderline risk and they will likely need to pay an interest level at or slightly above the average interest rate for their region
Explanation:
As it can be seen that the quick ratio is lower, the current ratio is average and the times interest ratio is lower. The time interest ratio should be more as if the company earnings is high so it able to cover its interest expense
Therefore the company is in the borderline risk due to which the company has to pay the high interest rate
Hence, the correct option is c.
Based on this income statement for Company ZYX for the year ending December 31, 2014, what adjustment would need to be made to Net Income to account for Gain or Loss in calculating cash flow from Operating Activities using the indirect method?"
COMPANY ZYX
INCOME STATEMENT
For the Year Ending 12/31/14
Net Sales $ 500,000
Cost of Sales $ 200,000
GROSS PROFIT 300,000
Operating Expenses
Research and Development 35,000
Marketing and Sales Expenses 60,000
General and Administrative Expense 21,000
TOTAL OPERATING EXPENSES 116,000
OPERATING INCOME 184,000
Gain(Loss) on sale of Equipment (30,000)
Gain (Loss) on sale of debt investment 46,000
Other Income/(Expense) (10,000)
Net INCOME BEFORE TAXES 190,000
Income Tax Expense 57,000
NET INCOME $133,000
Answer:
a) Adjustment of (16,000) in the Operating Section
Explanation:
The adjustment required in the operating activities section of the cash flow statement is shown below:
Loss of sale of equipment $30,000
Less: Gain on sale of debt investment -$46,000
The net deduction is $16,000
Since there is a loss on sale of an equipment so the same is to be added back and there is a gain on sale of investment with respect to debt so the same is to be deducted
hence, the correct option is a.
a)Adjustment of (16,000) in the Operating Section would need to be made to Net Income to account for Gain or Loss in calculating cash flow from Operating Activities using the indirect method.
Loss of sale of equipment $30,000
Less: Gain on sale of debt investment -$46,000
The net deduction is $16,000
When you consider that there is a loss on the sale of a device so the identical is to be introduced back and there is a benefit on the sale of funding with respect to debt so the equation is to be deducted.
What is an income statement?An income statement is an economic declaration that suggests you the employer's earnings and expenses. It additionally shows whether an enterprise is making profit or loss for a given period.
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Tinsel Co.'s balances in allowance for uncollectible accounts were $70,000 at the beginning of the current year and $55,000 at year end. During the year, receivables of $35,000 were written off as uncollectible. What amount should Tinsel report as uncollectible accounts expense at year end
Answer:
$20,000
Explanation:
to determine the amount that Tinsel should report as bad debt expense (or uncollectible accounts expense), we must start with the beginning balance of allowance for doubtful accounts, and then we must subtract the account's ending balance and any bad debts write offs recorded during the year:
beginning account balance $70,000
- ending account balance ($50,000)
- write offs ($35,000)
total ($20,000)
Becky is a cash basis taxpayer with the following transactions during her calendar tax year: Cash basis revenue $54,000 Cash basis expenses, except rent 25,000 Rent expense (paid on December 1) for use of a building for 24 months 24,000 What is the amount of Becky's taxable income from her business for this tax year?
Answer:
$28,000
Explanation:
Calculation for the amount of Becky's taxable income from her business for this tax year
Taxable income=$54,000 - $25,000 - ($24,000 / 24 months × 1 month)
Taxable income=$54,000 - $25,000 - $1,000
Taxable income=$28,000
Therefore the amount of Becky's taxable income from her business for this tax year will be $28,000
The federal government creates the federal budget each year in order to
Please help and don't put a random answer. Multiple Choices is in the screen shot.
Answer:
c. decide how much money the government will spend
Explanation:
A budget is a plan on how a person, company, or government intends to spend its projected income. A federal budget shows the money that a government's departments and agencies intend to spend in the financial year under consideration. A federal budget is a plan of expenditure vis a vis projected income.
If the planned expenditure exceeds forecasted income, the federal budget is said to have a deficit. Should the expenditure be less than the projected income, the budget will have a surplus.
Answer:c
Explanation:
One-year Treasury securities yield 4.25%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 6.9%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average.
Answer:
5.57%
Explanation:
Assuming that pure expectation theory holds, then the compounded returns of 1 year treasury security rate multiplied by the compounded return of 1 year security rate 1 year from now is equal to the compounded return of the 2 year treasury rate.
1 year treasury security rate = 4.25%
1 year treasury security rate 1 year from now = 6.9%
To solve, we have
1.0425 * 1.069 = (1 + x)²
1.1144 = (1 + x)², finding the square root of both sides
√1.1144 = 1 + x
1.0557 = 1 + x
x = 1.0557 - 1
x = 0.0557
Therefore, the yield today for 2 year treasury securities is 5.57%
Coca-Cola Enterprises issues a 0.07 semi-annual coupon bond with 16 years of maturity. What is the bond's price if the yield to maturity (YTM) is 0.13?a. $1,020 b. $1,162 c. $932 d. $1,216 e. $600
Answer:
Bond Price= $600
Explanation:
Giving the following information:
Face value= $1,000
Number of periods= 16*2= 32
Cupon= (0.07/2)*1,000= $35
YTM= 0.13/2 = 0.065
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= 35*{[1 - (1.065^-32)] / 0.065} + [1,000/(1.065^32)
Bond Price= 466.69 + 133.29
Bond Price= $600
planned investment remains unchanged as the interest rate changes, the size of the government spending multiplier will be
Answer: Multiplier effect= Change in real GDP ÷ Change in injection
Explanation:
When there is an extra spending by firms on especially workers welfare, it rubs off on the society because this workers would now spend more down to the markets and it affects traders out their and affects the GDP.
Multiplier effect= Change in real GDP ÷ Change in injection
true or false Deflation can be differentiated from disinflation in that the deflation rate is always negative while the disinflation rate is always positive.
Answer:
True
Explanation:
The deflation arise when there is a decline in the general level of the price in the overall economy. It could be said as a negative rate of inflation
On the other hand, the disinflation arise when the inflation rate is the decline over time but it would remain positive
Therefore the given statement is true
hence, the same is to be considered
Integration is summation operation performed on discrete random variables.
No
Yes
None of the options
Both A and B
Answer:
Yes
Explanation:
In simple words, An integral assigns numbers to functions in mathematics in such a manner that can explain movement, region, density, as well as other definitions that emerge from the combination of extremely small data. Integration is among the two primary calculus operational activities; the other one is its greater operating, separation.
Thus, the given statement is true.
GIVING ALL MY POINTS AWAY FOR THIS, DUE IN A COUPLE HOURS
The term caveat emptor, a latin term, meaning let the buyer aware
how is this important to suppliers and businesses
Insurance, background checks, and security plans are all categories of ____________. policies procedural controls procedures policy controls
Answer:
procedural controls
Explanation:
Insurance can be defined as a means through which an individual or organization gets protected from financial losses, damages, death or illness after paying a premium.
Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.
This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.
Procedural controls can be defined as a set of steps taken in order to ensure that the information provided are true.
Hence, insurance, background checks, and security plans are all categories of procedural controls.
Sushi corp. purchased and installed electronic payment equipment at its drive-in restaurants in san marcos, tx, at a cost of $51,300. the equipment has an estimated residual value of $2,700. the equipment is expected to process 275,000 payments over its three-year useful life. per year, expected payment transactions are 66,000, year 1; 151,250, year 2; and 57,750, year 3.
Required:
Complete a depreciation schedule for each of the alternative methods.
1. Straight-line.
2. Units-of-production.
3. Double-declining-balance.
Income Statement Balance Sheet
Year Depreciation Expense Cost Accumulated Depreciation Book Value
At acquisition
1
2
3
Answer:
Sushi Corp.
Depreciation Schedule:
Income Statement Balance Sheet
Year Depreciation Expense Cost Accumulated Book Value
Depreciation
At acquisition $51,300
Straight-line method:
1 $16,200 $51,300 $16,200 $35,100
2 $16,200 $51,300 $32,400 $18,900
3 $16,200 $51,300 $48,600 $2,700
Units-of-production method:
1 $11,664 $51,300 $11,664 $39,636
2 $26,730 $51,300 $38,394 $12,906
3 $10,206 $51,300 $48,600 $2,700
Double-declining-balance method:
1 $34,371 $51,300 $34,371 $16,929
2 $11,342 $51,300 $45,713 $5,587
3 $2,887 $51,300 $48,600 $2,700
Explanation:
a) Data and Calculations:
Cost of electronic payment equipment = $51,300
Residual value = $2,700
Depreciable amount = $48,600 ($51,300 - $2,700)
Volume of payments = 275,000
Useful life = 3 years
Year 1 expected payment transaction = 66,000
Year 2 expected payment transaction = 151,250
Year 3 expected payment transaction = 57,750
b) Straight-line method:
Depreciation expense per year = $16,200 ($48,600/3)
b) Units-of-production method:
Depreciation expense per:
Year 1 = 66,000/275,000 * $48,600 = $11,664
Year 2 = 151,250/275,000 * $48,600 = $26,730
Year 3 = 57,750/275,000 * $48,600 = $10,206
c) Double-declining-balance method:
Depreciation rate = 100/3 * 2 = 67%
Depreciation expense per:
Year 1 = $51,300 * 67% = $34,371
Year 2 = $16,929 * 67% = 11,342
Year 3 = $2,887 ($5,587 - $2,700)
Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Compute the opportunity cost of producing one additional unit of food instead of textiles.
Answer: 1.67 yards of textiles
Explanation:
The country can either produce 10 yards of textiles or 6 pounds of food. Opportunity cost of producing one additional unit of food instead of textiles will therefore be;
= 10/6
= 1.67 yards of textiles
This shows that for every pound of food produced, 1.67 yards of textiles are foregone.
When the economy is overheating and policymakers pursue contractionary fiscal policy, they express willingness to trade off _________ output for a ________ price level.a) higher;higher.
b) higher;lower.
c) lower;higher.
d) lower;lower.
Answer:
.a) higher;higher.
Explanation:
Economy overheating is an economic situation whereby the economy has a long time economic growth as well as activities, which as a result of this high level of inflation is recorded, then as the inflation linger the economy growth will be hindered and this can leads to recession in the country. It should be noted that When the economy is overheating and policymakers pursue contractionary fiscal policy, they express willingness to trade off higher output for a higher price level
Marin Company's accounts receivable arising from sales to customers amounted to $88000 and $77000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $334000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
Answer:
Marin Company
Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
$345,000
Explanation:
a) Data and Calculations:
Accounts Receivable (Beginning) $88,000
Accounts Receivable (Ending) $77,000
Increase in Cash received from customers = $11,000
b) Income reported on the income statement for the year = $334,000
Increase in Cash received from Customers = 11,000
Cash flows from operating activities to be reported = $345,000
c) The Accounts Receivable reduced from $88,000 to $77,000. This implied that some customers settled their accounts. Therefore, there was inflow of cash from customers. This increases the cash flows from operating activities. This is why the difference is added to the Income as per income statement as a change in working capital.
Social security and medicare are progressive taxes. payroll taxes. local taxes. corporate taxes.
Answer:
payroll taxes
Explanation:
just took the test, got 100%
Social security and medicare are type of payroll taxes.
What are payroll taxes?Payroll taxes are taxes paid by an employees form his or her salary.
The tax can be deducted or removed directly from the salary or wages of the employee and it is removed based on the amount of salary or wages in pay roll.
Therefore, payroll taxes includes social security and medicare.
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Robert Klassen Manufacturing, a medical equipmentmanufacturer, subjected 90 heart pacemakers to 5,000 hours of testing. Halfway through the testing,4 pacemakers failed.
Percent of failures:
Number of failures per unit-hour of operating time:
Number of failures per unit-year:
Answer and Explanation:
The computation is shown below:
a. For the percentage of failures is
= Number of failures ÷ number of pacemakers tested
= 4 ÷ 90
= 4.4%
b. For Number of failures per unit-hour of operating time
= Number of failure ÷ total time - non-operating time
= 4 ÷ (5,000 × 90) - (5,000 ÷ 2 × 4)
= 4 ÷ (450,000 - 10,000)
= 4 ÷ 440,000
= 9.09 × 10^-6
= 0.00000909 failure per unit-hour
c. For Number of failures per unit-year is
= Failure ÷ unit year
= 0.0000090909 × 24 hours × 365 days
= 0.07963 failure per unit-year
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows:Inventory,by Product Category Quantity Per Unit Net Realizable Value Cost Tools:Hammers 100 $4.80 $5.30 Saws 180 9.80 8.80 Screwdrivers 280 1.80 2.40 Paint products: 1-gallon cans 480 5.80 4.80 Paint brushes 100 3.80 4.30 Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.
Answer:
Product category units cost NRV year-end inventory
Tools:
Hammers 100 $4.80 $5.30 $480Saws 180 $9.80 $8.80 $1,584Screwdrivers 280 $1.80 $2.40 $504Paint products:
1-gallon cans 480 $5.80 $4.80 $2,304Paint brushes 100 $3.80 $4.30 $3801) carrying value of year-end inventory:
Tools:
Hammers $480Saws $1.584Screwdrivers $504sub-total $1,573Paint products: $2,568
1-gallon cans $2,304Paint brushes $380sub-total $2,684Total $5,252
2) adjustment to tools:
Dr Cost of goods sold 180
Cr Inventory: tools 180
adjustment to paint products:
Dr Cost of goods sold 480
Cr Inventory: paint products 480
or
total adjustment to inventory account:
Dr Cost of goods sold 660
Cr Inventory 660
A company's most recent free cash flow to equity was $100 and is expected to grow at 4% thereafter. The company's cost of equity is 13%. Its WACC is 7.77%. What is its current intrinsic value
Answer:
Current intrinsic value - equity = $1155.56
Explanation:
FCFE or Free cashflow to equity is the free cash flow attributable to the equity holders. Using the constant growth model of FCFE we can calculate the intrinsic value of the equity or intrinsic value per share. The formula for the constant growth model is as follows,
Value of equity = FCFE0 * (1+g) / (r - g)
Where,
FCFE0 is the most recent FCFEg is the growth rate in FCFEr is the required rate of return on equityCurrent intrinsic value - equity = 100 * (1+0.04) / (0.13 - 0.04)
Current intrinsic value - equity = $1155.56
A country that advances its national interests abroad by prioritizing international cooperation, compromising with foreign allies, and participating in international organizations such as the United Nations is following a _____.
a. hegemonic grand strategy
b. grand strategy of isolationist protectionism
c. multilateralism grand strategy
d. grand strategy of unilateralism
Answer:
A country that advances its national interests abroad by prioritizing international cooperation, compromising with foreign allies, and participating in international organizations such as the United Nations is following a _____.
c. multilateralism grand strategy
Explanation:
The emphasis placed on relationships between other countries is dictated by a country's preferred objectives. If the country encourages international relationships and cooperation with others, it is engaged in multilateralism. This refers to an alliance of multiple countries pursuing a common goal, like the United Nations. The opposite of this diplomatic strategy is called unilateralism. This implies that the country chooses to go it alone without seekings the cooperation of others. An example is when one country launches a military attack on another without seeking for the help or approval of other friendly countries.
International cooperation is referred to as the process or the set of activities in which the different states are involved in the act of adjusting their behavior as per the preference of the policy coordination.
The correct answer is c. multilateralism grand strategy
Option c. multilateralism grand strategy is correct because it emphasizes the relationships between other countries. If the country encourages international relationships and cooperation with others, it is engaged in multilateralism. This refers to an alliance of multiple countries pursuing a common goal, like the United Nations.
Options A, B, and D are wrong options because they do not relate to the international cooperation among the states for policy coordination and also because of not participating in the allies and the international organizations.
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A 20-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices.
a. What is the bond’s yield to maturity if the bond is selling for $970?
b. What is the bond’s yield to maturity if the bond is selling for $1,000?
c. What is the bond’s yield to maturity if the bond is selling for $1,170?
Answer:
since you are required to calculate the effective yield to maturity, you cannot use the approximate YTM formula since it is not exact. You will need to use a financial calculator, online calculator or excel spreadsheet. I prefer to use an excel spreadsheet and use the IRR function:
a) initial outlay = -$970
cash flows 1 - 19 = $80
cash flow 20 = $1,080
IRR = 8.31%
Since the bond is sold at a discount, the effective yield will be higher than the coupon rate.
b) if hte bond is sodl at par, the effective yield to maturity is the coupon rate = 8%
c) initial outlay = -$1,170
cash flows 1 - 19 = $80
cash flow 20 = $1,080
IRR = 6.49%
Since the bond is sold at a premium, the effective yield will be lower than the coupon rate.
Money that you owe is known as debt
Answer:
true
Explanation:
Using the 4 Cs, we consider a variety of costs associated with the purchase of a product. Cost in the Four Cs model is similar to ________using the Four Ps.
Answer:
marketing
Explanation:
Marketing may be defined as the business or the action of promoting as well as selling products or the services, which includes a market research and the advertising. It is the activity, the organization undertakes to foster promote by buying or by selling a product or a service in the market.
The 4Cs that is used in the concept of marketing is Convenience, Communication, Consumer solution, Cost. They are quite similar to the 4P model of marketing i.e. Place, Promotion, Product, Price. These models are used in marketing to enhance the 'marketing mix'.
Answer:
Product
Explanation:
Got it right on the test
What is the approximate market value of a $1,000 corporate bond that pays 8 percent interest when comparable bonds are paying 8 percent interest?A. $800B. $900C. $1000D. $1125E. $1625
Answer:
C. $1000
Explanation:
The computation of the approximate market value is shown below:
Current yield = Annual coupon payment ÷ market value
8% = ($1,000 × 8%) ÷ market value
8% = $80 ÷ market value
So, the market value is
= $80 ÷ 0.08
= $1,000
Hence, the approximate market value is $1,000
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Bill Dukes has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta?
Answer:
The portfolio's beta is 0.98
Explanation:
Stock beta id the weghted average beta of a portfolio, Use following formula to calculate the portfolio beta
Portfolio beta = ( Beta of stock X x Weight of Stock X ) + ( Beta of stock Y x Weight of Stock Y )
As per given data
Stock ______ Amount Invested ______ Beta
X _________ $35,000 _____________ 1.50
Y _________ $65,000 _____________ 0.70 ( $100,000 - $35,000 )
Placing values in the fromula
Portfolio beta = ( 1.50 x $35,000/$100,000 ) + ( 0.70 x $65,000/$100,000 )
Portfolio beta = 0.525 + 0.455
Portfolio beta = 0.98