Answer: 8%
Explanation:
Profit Margin = Net income / Net sales
2017 Net income ⇒ $54,400
2017 Net Sales ⇒ $680,000
Profit Margin₂₀₁₇ = 54,400/680,000
= 0.08
= 8%
Steve has converted his garage into a separate living space and listed the property for short-term rental on an online platform. Steve spends an average of 15 hours each week performing activities related to the rental property. Which activity is considered a substantial service.
Answer:
B). Changing sheets and towels between rentals.
Multiple-choice
A). Administrative activities, including paying bills and advertising the rental.
B). Changing sheets and towels between rentals.
C). Re paring carpet damaged by quests
D). Transporting quests to and from the airport and sightseeing trips.
Explanation:
According to IRS regulations, a person is said to have performed substantial services if they dedicate at least 45 hours per month to the business. Steve works an average of 15 hours of performing activities. In a month, he works for an average of 60 hours in the rental property.
The IRS defines substantial services to be activities like regular cleaning, maid services, and changing linens. For Steve, substantial service will be option B: Changing sheets and towels between rentals.
Which action is an example of the United States using economic influence as a tool of foreign policy?
Answer:
Econimy Can use alot of help by influencing more things for their city.
Explanation:
Is there an option tho?
GDP is $12 trillion this year in a closed economy. Consumption is $8 trillion and government spending is $2 trillion. Taxes are $0.5 trillion. How much is investment spending
Answer:
$2 trillion
Explanation:
In a closed economy GDP is $12 trillion
Consumption is $8 trillion
Government spending is $2 trillion
Taxes is $0.5 trillion
Therefore the investment spending can be calculated as follows
= $12 trillion - $8trillion-$2trillion
= $2 trillion
Hence investment spending is $2 trillion
During periods of bad weather, as compared with periods of clear weather, how many additional gallons of fuel on average should FreeEx expect its planes to consume because of airport congestion?
Answer:
the question is incomplete:
arrival rate = 20 per hourlanding rate with good weather = 60 per hourlanding rate with bad weather = 30 per hourλ = 20
μ₀ = 30
μ₁ = 60
Ls for good weather = 20 / (60 - 20) = 20/40 = 0.5
Ls for bad weather = 20 / (30 - 20) = 20/10 = 2
Ws for good weather = 60 / 40 = 1.5
Ws for bad weather = 60 / 10 = 6
Wg for good weather = 1.5 - (60 / 60) = 1.5 - 1 = 0.5
Wg for bad weather = 6 - (60 / 30) = 6 - 2 = 4
Fuel consumed due to slack:
good weather = Ws x λ = 1.5 x 20 = 30 gallons
bad weather = Ws x λ = 6 x 20 = 120 gallons
So each plane should expect to consume 120 - 30 = 90 additional gallons of fuel due to bad weather
You bought a 1000 par value callable bond right after a coupon payment and paid 918 for it. You held it until it was called for 1100 (prior to maturity). The bond had a coupon rate of 9% payable semi-annually. The nominal yield rate convertible semi-annually was 10%. For how many years did you hold the bond
Answer:
25 years
Explanation:
We first set BA II Plus calculator : C/Y = 2, P/Y = 2
Then, I/Y = 10, PMT= -45(1000*9%/2), FV= -1100, PV=918
CPT No of years = N(I/Y, PMT, -FV, PV) (Semi annual period)
CPT No of years = 49.35 (Semi annual period)
CPT No of years = 49.35/2
CPT No of years = 24.68
CPT No of years = 25 years
In the short run, a supply shock will _________ the equilibrium level of prices and ___________ the equilibrium level output. reduce;raise raise;raise reduce;reduce raise;reduce
Answer: raise; reduce
Explanation:
A Supply shock is described as a situation where the supply of a good changes suddenly/ abruptly due to an unforeseen event.
Supply shocks can be positive but are usually negative so we will assume the supply shock is negative here.
If there is a negative supply shock, the amount of goods being produced will reduce abruptly which will force the supply curve to shift left.
It will then intercept the the demand curve at an equilibrium level that has a higher price and a lower quantity of output.
Think of it this way. Negative supply shock ⇒ less goods ⇒ scarcity ⇒ higher prices.
what does sales manager do?
Answer:
A sales manager is the person responsible for leading and coaching a team of salespeople. A sales manager's tasks often include assigning sales territories, setting quotas, mentoring the members of her sales team, assigning sales training, building a sales plan, and hiring and firing salespeople.
On January 1, 2012, Vaughn Manufacturing purchased for $768000, equipment having a useful life of ten years and an estimated salvage value of $42600. Vaughn has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $125000. As a result of this sale, Vaughn should recognize a gain of
Answer:
Gain= $9,860
Explanation:
Giving the following information:
Purchase price= $768,000
Salvage value= $42,600
Useful life= 10 years
First, we need to determine the annual depreciation and the accumulated depreciation at the moment of the sale:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (768,000 - 42,600) / 10
Annual depreciation= $72,540
Accumulated depreciation= 72,540*9= $652,860
If the selling price is higher than the book value, the company made a gain from the sale:
Book value= 768,000 - 652,860= $115,140
Gain/loss= 125,000 - 115,140
Gain= $9,860
On January 1, 20X6, Pepper Corporation issued 10-year bonds at par to unrelated parties. The bonds have a 10% stated rate, face value of $300,000, and pay interest every June 30 and December 31. On December 31, 20X9, Salt Corporation purchased all of Pepper's bonds in the open market at a $6,000 discount. Salt is Pepper's 80 percent owned subsidiary. Salt uses the effective interest method of amortization. The consolidated income statement for the year 20X9 should report with respect to the bonds: I. interest expense of $30,000. II. a gain of $6,000.
Answer:
I. interest expense of $30,000
Explanation:
Since in the question it is mentioned that the face value is $300,000 and the rate of interest is 10%
So, the interest expense is
= $300,000 × 10%
= $30,000
Now the same would be presented in the consolidated income statement
Hence, the correct option is I
Also the gain would not be considered
explain different ways a company is applying management
Explanation:
Organizational management is extremely important for conducting business. Managing is the process of measuring, monitoring, organizing, controlling and administering, through these variables it is possible for a company to know its strengths and weaknesses and coordinate them so that it has a greater chance of being competitive and profitable in the market.
Each organization can manage the business in different ways, this will depend on its objectives and organizational structure, the most important is that the management is aligned with a strategic planning that understands the objectives and goals of the organization so that it remains well positioned in the competitive market .
When Finance Director Debenditti states that she tries to draw group members out and force participation, this might cause some conflict with some of the strong personalities in the group. Allowing for some disagreement is helpful and is associated with which stage of team development?
a. Performing
b. Storming
c. Norming
d. Forming
e. Adjourning
The act of allowing for some disagreement is helpful and is associated with which stage of team development is the Storming stage.
At the Storming stage, team members are quite open to sharing of ideas and an individual can therefore use the opportunity to stand out and be accepted by their team members.Team leaders is known to aid teams through having a plan in place to manage competition among team members, make communication easier etc.
There are five stages of team development. They are forming, storming, norming, performing, and adjourning.
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Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $25,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 2,850 Outstanding checks 1,215 Additionally, a $36 check written and recorded by the company correctly, was recorded by the bank as a $63 deduction. The adjusted cash balance per the bank records should be:\
Answer: $27,023
Explanation:
The procedure is to;
Add the Deposit in transit
Add the overstatement of the check by the bank
Less the Outstanding checks;
= 25,361 + 2,850 + (63 - 36) - 1,215
= $27,023
The next two questions pertain to the problem below: You researched Jersey Kids Corp on Yahoo Finance and you found the following 2020 financial information: Annual dividends per share paid in 2020 - $3.00 Earnings per share - $2.50 Net Income - $2,500,000 Dividend growth rate for 2021 - 2% Investor's required rate of return - 10% 8. Approximately how much would you expect the current stock price of Jersey Kids Corp to be in 2021
Answer:
The current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.
Explanation:
The current stock price of Jersey Kids Corp in 2021 can be calculated using the formula for the dividend discount model as follows:
P2021 = D2022 / (r - g) ............................ (1)
Where,
P2021 = current stock price in 2021 = ?
D2020 = Annual dividends per share paid in 2020 = $3.00
D2021 = Annual dividends per share paid in 2021 = D2020 * (1 + g) = $3 * (1 + 0.02) = $3.06
D2022 = Annual dividends per share paid in 2022 = D2021 * (1 + g) = $3.06 * (1 + 0.02) = $3.1212
r = required return = 10%. or 0.10
g = growth rate = 2% = 0.02
Substituting the values into equation (2), we have:
P2021 = $3.1212 / (0.10 - 0.02)
P2021 = $3.1212 / 0.08
P2021 = $39.02
Therefore, the current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.
Merger Gains. Acquiring Corp. is considering a takeover of Takeover Target Inc. Acquiring has 10 million shares outstanding, which sell for $40 each. Takeover Target has 5 million shares outstanding, which sell for $20 each. If the merger gains are estimated at $25 million, what is the highest price per share that Acquiring should be willing to pay to Takeover Target shareholders
Answer: $25 per share
Explanation:
Find the extra amount that would have to be paid on Takeover Target stock to enable a gain of $25 million.
= 25,000,000/ 5,000,000 shares
= $5 per share
Takeover Target is currently selling at $20 so the price it can be sold at for a gain of $25 million is;
= 20 + 5
= $25 per share
Serendipity Inc. is re-evaluating its debt level. Its current capital structure consists of 80% debt and 20% common equity, its beta is 1.60, and its tax rate is 25%. However, the CFO thinks the company has too much debt, and he is considering moving to a capital structure with 40% debt and 60% equity. The risk-free rate is 5.0% and the market risk premium is 6.0%. By how much would the capital structure shift change the firm's cost of equity
Answer:
-6.00%
Explanation:
The computation of the change in the capital structure is as follows;
Current Capital Structure:
Given that
Weight of Debt = 80%
Weight of Equity = 20%
Levered Beta = 1.60
Now
Debt-Equity Ratio = Weight of Debt ÷ Weight of Equity
= 0.80 ÷ 0.20
= 4.00
Unlevered Beta = Levered Beta ÷ [1 + (1 - Tax Rate) × Debt-Equity Ratio]
= 1.60 ÷ [1 + (1 - 0.25) × 4.00]
= 1.60 ÷ 4.00
= 0.40
Now
Cost of Equity = Risk-free Rate + Levered Beta × Market Risk Premium
= 5.00% + 1.60 × 6.00%
= 14.60%
New Capital Structure:
Weight of Debt = 40%
Weight of Equity = 60%
Now
Debt-Equity Ratio = Weight of Debt ÷ Weight of Equity
= 0.40 ÷ 0.60
= 0.6667
Unlevered Beta = 0.40
Levered Beta = Unlevered Beta × [1 + (1 - Tax Rate) × Debt-Equity Ratio]
= 0.40 × [1 + (1 - 0.25) × 0.6667]
= 0.40 × 1.50
= 0.60
Cost of Equity = Risk-free Rate + Levered Beta × Market Risk Premium
= 5.00% + 0.60 × 6.00%
= 8.60%
Now
Change in Cost of Equity = Cost of Equity under New Capital Structure - Cost of Equity under Current Capital Structure
= 8.60% - 14.60%
= -6.00%
Pollution of water and soil from activities such as oil and gas drilling is primarily related to: Select one: a. sustainability issue b. consumer relations c. community relations d. relations with stockholders e. employee relations
Answer:
a. sustainability issue
Explanation:
Sustainability refer to activities that are conducted in order to provide the well being for the long term with respect to the natural environment that also involved the all types of biological entities
Since in the question it is mentioned that the water pollution and the soil from activities is mainly related to the sustainability issue and hence, the same is to be considered
Therefore the correct option is a.
Which of the followinThe IS-LM can be viewed as a special case of the AS-AD model where:
a. the short run aggregate supply curve is flat
b. the short run aggregate supply curve does not exist
c. there is only a short run aggregate supply curve if shocks are unexpected
d. the short run aggregate supply curve is verticalg statements is true
Answer:
Short run aggregate supply curve is flat ( A )
Explanation:
The special case of the AS-AD following the IS-LM is that the short run aggregate supply curve is flat
This is because in an AS-AD model the price level is constant and AD represents an equilibrium point along IS-LM model, hence the price been constant, shows that in short run aggregate supply curve will be flat.
Under a perpetual inventory system, acquisition of merchandise for resale is debited to the Cost of Goods Sold account. the Supplies account. the Inventory account. the Purchases account.
Answer:
C. the Inventory account.
Explanation:
Under a perpetual inventory system, acquisition of merchandise for resale is debited to the Inventory account.
In the process of reconciling Marks Enterprises' bank statement for September, Mr. Marks compiles the following information: Cash balance per company books on September 30 $ 6,220 Deposits in transit at month-end $ 1,410 Outstanding checks at month-end $ 730 Bank charge for printing new checks $ 100 Note receivable and interest collected by bank on Marks' behalf $ 660 A check given to Marks during the month by a customer is returned by the bank as NSF $ 590 The adjusted cash balance per the books on September 30 is:
Answer:
$6,190
Explanation:
Particulars Amount
Cash balance per company books $6,220
Add: Note receivable and interest collected $660
Less: Bank charge for printing new checks $100
Less: NSF check $590
The adjusted cash balance $6,190
So, the adjusted cash balance per the books on September 30 is $6,190
As a result of a decrease in the demand for U.S. dollars, there has been depreciation in the value of the U.S. dollar relative to Peruvian neuvo sol. The depreciation in the U.S. dollar has benefitted some groups but harmed others. Indicate which of the groups are winners and which are losers from the standpoint of the depreciation of the U.S. dollar. A. Todd, an American, goes to visit Peru for spring break. B. An investment bank in Peru is interested in purchasing U.S. government bonds. C. Goodyear, a firm based in the United States, sells car tires in Peru. D. A family from Peru visits relatives in the United States. E. A firm from Peru sells handbags in the United States. F. An electronics manufacturer based in the United States, purchases a high tech company in Peru.
Answer: See explanation
Explanation:
A. Todd, an American, goes to visit Peru for spring break.
Todd is a loser. This is because more expenses will be incurred on the trip.
B. An investment bank in Peru is interested in purchasing U.S. government bonds.
The investment banker is a winner. This is because there's an appreciation of the currency on the part of the investment banker and therefore will be able to purchase more bonds.
C. Goodyear, a firm based in the United States, sells car tires in Peru.
Goodwill is a winner. This is because as an exporter, the company will make more profit as there'll be a rise in the export.
D. A family from Peru visits relatives in the United States.
They are winners as they'll get more dollars now.
E. A firm from Peru sells handbags in the United States.
This is a loser as less revenue will be made due to depreciation.
F. An electronics manufacturer based in the United States, purchases a high tech company in Peru.
This is a loser as well.
Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $270,000 $420,000 Salary expense 33,000 47,000 Cost of goods sold 101,000 203,000 The West Division occupies 6,750 square feet in the plant. The East Division occupies 4,050 square feet. Rent, which was $ 54,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division.
Answer:
$102,250
Explanation:
Sales $270,000
Less: Cost of goods sold $101,000
Gross profit $169,000
Less: Salary Expenses $33,000
Profit before New exp $138,000
Less: Rent expenses $33,750
Net profit $102,250
Workings
Rent expenses = $54,000 * 6750/6750+4050
Rent expenses = $54,000 * 6750/10800
Rent expenses = $54,000 * 0.625
Rent expenses = $33,750
3. A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is: a. $47,100. b. $27,600. c. $21,200. d. $29,300. e. $32,500.
Answer:Cost of Goods Sold =$29,300
Explanation:
Cost of goods sold refers to the costs (direct costs) a business incurs in the production of goods sold by a company. it is calculated as
Cost of goods sold =Cost of manufactured Goods + Beginning finished goods inventory - Ending finished goods inventory
Cost of Goods Sold = $32,500 + $14,600 - $17,800
Cost of Goods Sold =$47,100- $17,800
Cost of Goods Sold =$29,300
PURCHASING POWER PARITY In the spot market, 19.1 Mexican pesos can be exchanged for 1 U.S. dollar. A compact disc costs $15 in the United States. If purchasing power parity (PPP) holds, what should be the price of the same disc in Mexico
Answer: $286.50
Explanation:
Purchasing Power Parity (PPP) posits that prices are the same across countries given the rate of exchange between the currencies of the countries in question.
1 USD = 19.1 Mexican pesos.
Compact disc in Mexico would cost;
= 19.1 * 15
= $286.50
Sen Corporation warrants carry the right to buy 6 shares of Sen common stock at $10.00 per share. The common stock has a current market price of $14.25 per share. The intrinsic or minimum value of one Sen warrant is ________. (Round your answer to 2 decimal places.) $0 $25.50 $24.50 $27.00
Answer: $25.50
Explanation:
Intrinsic Value of warrant = Number of shares buyable * (Market price - Warrant price)
= 6 * (14.25 - 10)
= $25.50
ABC Company filed suit against Lowland, Inc., seeking damages for copyright violations. Lowland' legal counsel believes it is probable that Lowland will settle the lawsuit for an estimated amount in the range of $180,000 to $280,000, with all amounts in the range considered equally likely. How should Lowland report this litigation
Answer:
Lowland should recognize a contingent liability of:
$230,000 in the current period.
Explanation:
a) Data and Calculations:
Estimated amount for lawsuit settlement:
$180,000 * 50% = $90,000
$280,000 * 50% = $140,000
$230,000
b) Lowland's contingent liability to ABC Company is the liability that may occur depending on the outcome of the lawsuit, which is in itself an uncertain future event. A contingent liability is recorded if the contingency is likely or probable, already established by Lowland's legal counsel, and the amount of the liability can be reasonably estimated.
The unlevered cost of capital is: Group of answer choices the cost of preferred stock for a firm with equal parts debt and equity in its capital structure. equal to the profit margin of a firm with some debt in its capital structure. the cost of capital for a firm with no debt in its capital structure. the cost of capital for a firm with no equity in its capital structure. the interest tax shield times earnings before taxes.
Answer: The cost of capital for a firm with no debt in its capital structure.
Explanation:
Leverage in finance refers to the use of debt. Unlevered capital therefore would refer to capital that is without debt which means that an unlevered cost of capital is one with no debt in its capital structure.
Companies with such a capital structure derive their capital 100% from Equity and as such do not pay interest. This means however, that they will not benefit from the tax shields that interest payments offer.
Under Armour used product placements in Any Given Sunday to help promote the brand. This likely involved the company paying cash to the producers of the film so that they would feature the brand prominently. This type of arrangement is very similar to what your text describes as?
Answer: sponsorship
Explanation:
Sponsorship simply refers to a situation whereby a company or an organization puts money into a particular event so that the products or brand of the said company can be promoted.
Based on the scenario in the question, this type of arrangement is very similar to what your text describes as sponsorship. Since the company pays for its brand to be displayed, it is sponsorship.
Novak Corp.'s trial balance reported the following balances at the end of its first year: Cash $17080 Prepaid insurance 850 Accounts receivable 4270 Accounts payable 3420 Notes payable 5120 Common stock 6590 Dividends 850 Revenues 35380 Expenses 21350 What amount did Novak Corp.'s trial balance show as total credits
Answer:
Explanation:
Novak Corp.'s
Trail Balance
Debit ($) Credit ($)
Cash $17,080
Prepaid insurance $850
Accounts receivable $4,270
Accounts payable $3,420
Notes payable $5,120
Common stock $6,590
Dividends $850
Revenues $35,380
Expenses $21,350
Credit Total $50,510
Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. A share of stock sells for $50 today. It will pay a dividend of $6 per share at the end of the year. Its beta is 1.2. What do investors expect the stock to sell for at the end of the year
Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
Assume that the risk-free rate of interest is 2% and the expected rate of return on the market is 8%. A share of stock sells for $50 today. It will pay a dividend of $3 per share at the end of the year. Its beta is 1.2. What do investors expect the stock to sell for at the end of the year?
Answer: $51.60
Explanation:
The Gordon growth model can be used to calculate this however both the required return and the growth rate will need to be solved for.
Required return using CAPM;
= Risk free rate + beta * ( market return - risk free rate)
= 2% + 1.2 * ( 8% - 2%)
= 9.2%
Current price is $50. Using Gordon growth model, growth is;
Price = Next dividend / ( Required return - growth rate)
50 = 3 / ( 9.2% - g)
( 9.2% - g) * 50 = 3
( 9.2% - g) = 3/50
g = 9.2% - 3/50
g = 3.2%
Stock price at end of year using Gordon growth model;
= (3 * ( 1 + 3.2%)) / ( 9.2% - 3.2%)
= $51.60