The Option Clearing Corporation is owned by _________. the exchanges on which stock options are traded the Federal Deposit Insurance Corporation the Federal Reserve System major U.S. banks

Answers

Answer 1

Answer:

the exchanges on which stock options are traded

Explanation:

The Option Clearing Corporation is a clearing house based in the United States and they provide settlement, clearing, and central counterparty services.

They deal in options such as options, futures, and security lending.

The OCC is owned by the exchange on which they are traded such as Intercontinental Exchange's NYSE ARCA, NYSE MKT, Nasdaq and Cboe Global Markets.


Related Questions

On February 15, Jewel Company buys bonds of Marcelo Corp. for $200,000. The investment is classified as available-for-sale securities. This is the company's first and only investment in available-for-sale securities. On December 31, the bonds had a fair value of $200,300. The entry to record the year-end adjustment is:A. Debit Cash $300; credit Gain on Sale of Investments $300.B. Debit Cash $300; credit Dividend Revenue $300.C. Debit Fair Value Adjustment-Available-for-Sale $300; credit Realized Gain-Income $300.D. Debit Fair Value Adjustment-Available-for-Sale $300; credit Unrealized Gain-Equity $300.E. Debit Fair Value Adjustment-Available-for-Sale $300; credit Interest Revenue $300.

Answers

Answer:

D. Debit Fair Value Adjustment-Available-for-Sale $300; credit Unrealized Gain-Equity $300

Explanation:

The journal entry to record the year-end adjustment is as follows

Fair Value Adjustment-Available-for-Sale $300 ($200,300 - $200,000)

            To Unrealized Gain-Equity $300

(Being year-end adjustment is recorded)

The available for sale securities would be at fair market value

Therefore the unrealized gain would be $300

hence, the correct option is d.

5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and an 11% coupon, semiannual payment ($55 payment every 6 months). The bonds currently sell for $844.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt?

Answers

Answer:

9.84%

Explanation:

The bond's yield to maturity( pre-tax cost of debt) can be determined using the financial calculator approach as below:

N=50 (number of semiannual coupons in 25 years i.e 25*2)

PMT=55 (semiannual coupon=face value*coupon rate*6/12=$1000*11%*6/12=$55)

PV=-844.87 (current market price)

FV=1000 (face value)

CPT I/Y=6.56% (semiannual yield)

annual yield=6.56% *2=13.12%

after tax cost of debt=pretax cost of debt*(1-tax rate)

after tax cost of debt=13.12% *(1-25%)=9.84%

The ________ in the Sigma Six cost-of-quality (COQ) equation includes the internal costs before the product is sold (like waste and re-work).

Answers

Answer:

Cost of Failure

Explanation:

A manufacturer incurs failure cost when they produce defective goods. The can be both internal and external cost.

Internal cost are those that incur before the product is sold/shipped to the ultimate buyer such as waste, re-work and/or reduction in sales price for re-worked goods. External cost on the other hand are those that occur following the shipment of goods such as warranty claims, cost of any legal action taken by customer, orders cancelled and/or lost of customer goodwill.

In most cases the external cost is higher than the cost incurred on the internal failure of the goods. So most often the manufacturers are more focused on ensuring that the quality standards are achieved.

One of the most important things to understand about the Income-Expenditure model is that as GDP (or national income) increases ________ increases as well.

Answers

Answer:

B. aggregate expenditure

Explanation:

Options are "A. aggregate demand B. aggregate expenditure C. aggregate supply"

One of the most important things to understand about the Income-Expenditure model is that as GDP (or national income) increases, Aggregate Expenditure increases as well. When income or GDP increases along with that, the Aggregate expenditure also rises. The GDP and Aggregate Expenditure shares positive relationship in the long run.

What type of Businesses has limited liability ?

Answers

Answer:

LLC, a limited liability company

Explanation:

Empower Inc., is a software development firm that firmly believes in common unspoken assumptions along the lines of conventional lines of organizational behavior. It allows each and every member to pursue his or her self-interests.As a conventional organization, it is more likely to:_________.a) solely transcend shareholder interests.b) predominantly consider the interests of multiple stakeholders.c) primarily focus on the financial bottom line.d) exclusively contribute to ecological sustenance.

Answers

Answer:

Explanation:

h

At December 31, 2019, Obermeyer Imports reported the following information on its balance sheet.
Accounts receivable $250,000
Less: Allowance for doubtful accounts 15,000
During 2019, the company had the following transactions related to receivables.
1. Sales on account $2,600,000
2. Sales returns and allowances 45,000
3. Collections of accounts receivable 2,250,000
4. Write-offs of accounts receivable deemed uncollectible 10,000
5. Recovery of bad debts previously written off as uncollectible 3,000
Instructions
(a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.

(b) Enter the January 1, 2019, balances in Accounts Receivable and Allowance for Doubtful Accounts. Post the entries to the two accounts (use T-accounts), and determine the balances.

(c) Prepare the journal entry to record bad debt expense for 2019, assuming that an aging of accounts receivable indicates that estimated bad debts are $22,000.

Answers

Answer:

Obermeyer Imports

a) Journal Entries to record each transaction:

1. Debit Accounts Receivable $2,600,000

Credit Sales Revenue $2,600,000

To record the sale of goods on account.

2. Debit Sales Returns $45,000

Credit Accounts Receivable $45,000

To record the return of goods on account.

3. Debit Cash Account $2,250,000

Credit Accounts Receivable $2,250,000

To record collections from customers.

4. Debit Uncollectible Expenses $10,000

Credit Accounts Receivable $10,000

To record the write-off of accounts deemed uncollectible.

5. Debit Cash Account $3,000

Credit Uncollectible Expenses $3,000

To record the recovery of bad debts previously written off.

b) T-accounts:

Accounts Receivable

Accounts Titles            Debit          Credit

Beginning balances $250,000

Sales Revenue        2,600,000

Sales Returns                                    45,000

Cash Account                              2,250,000

Uncollectible Expenses                     10,000

Ending Balances                             545,000

Total                     $2,850,000 $2,850,000

Allowance for doubtful accounts

Accounts Titles            Debit          Credit

Beginning balances                    $15,000

Uncollectible expense                    7,000

Ending balances       $22,000

c) Journal Entry

Debit Uncollectible Expense $7,000

Credit Allowance for doubtful accounts $7,000

To record the allowance for uncollectibles.

Explanation:

a) Data and Calculations:

Accounts receivable $250,000

Less: Allowance for doubtful accounts 15,000

b) The allowance for Doubtful Accounts will increase by $7,000 to $22,000.  As a result, the Uncollectible Expense will be debited with $7,000 while the Allowance for doubtful accounts will be credited with $7,000.  This brings the total of Allowance for Doubtful Accounts to $22,000 in accordance with the new estimate based on the aging of accounts receivable.

The journal entries to record each of the transactions will be:

Debit Accounts Receivable $2,600,000

Credit Sales Revenue $2,600,000

(To record the sale of goods on account)

Debit Sales Returns $45,000

Credit Accounts Receivable $45,000

(To record the return of goods on account).

Debit Cash Account $2,250,000

Credit Accounts Receivable $2,250,000

(To record collections from customers)

Debit Uncollectible Expenses $10,000

Credit Accounts Receivable $10,000

(To record the write-off of accounts deemed uncollectible).

Debit Cash Account $3,000

Credit Uncollectible Expenses $3,000

(To record the recovery of bad debts previously written off)

The balances in accounts receivable and allowance for doubtful accounts will be calculated thus:

Debit Beginning balance $250000.

Debit sales revenue $2,600,000.

Credit Sales return $45000

Credit Cash account $2250000

Credit Uncollectible expenses $10000

Credit ending balances $545000

Lastly, the journal entry to record bad debt expense for 2019 will be:

Debit Uncollectible expense $7000.

Credit Allowance for doubtful accounts $7000.

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A $1,000 par bond with a semi-annual coupon and 12 years to maturity is currently priced $880 and has a yield to maturity of 5.37%. What is the bonds coupon rate

Answers

Answer:

Annual Coupon rate = 0.040005 or 4.0005% rounded off to 4.00%

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = C

Total periods (n) = 12 * 2 = 24

r or YTM = 0.0537 * 6/12 = 0.02685 or 2.685%%

The formula to calculate the price of the bonds today is attached.

We will first calculate the value of semi coupon payment  made by the bond.

880 = C * [( 1 - (1+0.02685)^-24) / 0.02685]  + 1000 / (1+0.02685)^24

880 = C * 17.52482779  +  529.4583737

880 -  529.4583737  =  C * 17.52482779

350.5416263 / 17.52482779 = C

C = 20.0025718 rounded off to 20.00

 

The annual coupon payment will be = 20.0025718  * 2 = 40.00514361 rounded off to 40.01

Annual Coupon rate = 40.00514361  / 1000 = 0.040005 or 4.0005% rounded off to 4.00%

On January 1, 2020, Sheridan Company purchased a machine costing $344000. The machine is in the MACRS 5-year recovery class for tax purposes and has an estimated $75000 salvage value at the end of its economic life. It's based on half year convention. Assuming the company uses the general MACRS approach, the amount of MACRS deduction for tax purposes for the year 2020 is:__________

Answers

Answer:

$68,800

Explanation:

Generally, under the General Depreciation System (GDS) MACRS we use the half-year convention and the depreciation rates are:

year       depreciation %

1                   20%

2                  32%

3                  19.20%

4                  11.52%

5                  11.52%

6                  5.76%

When using MACRS, you do not consider any salvage value.

Depreciation expense 2020 = $344,000 x 20% = $68,800

The mid-quarter convention can be used only if 40% of total depreciable assets were purchased during the last 3 months of the year, but not when you purchase them during the first months.

The cost of indirect labor will initially be charged to:_______.A. Finished Goods Inventory. B. Manufacturing Overhead. C. Cost of Goods Sold. D. Wages Expense.

Answers

Answer:

Answer is the number C.

Why is Social Media important in the Business World?

A. your professionalism is judged by it

B. first impressions are formed from it

C. It can make your company look bad

D. All of the above are True
I'll mark Brainliest

Answers

Answer:

I'm think It's D. All of the above are true

it’s either A or D not sure

Upon arrival at the international airport in the country of Canteberry, Charles Alt exchanged $200 of U.S. currency 1,000 florins, the local currency unit. Upon departure from Canteberry's international airport on completion of his business, he exchanged his remaining 100 florins into $15 of U.S. currency.

Required:
a. Determine the currency exchange rates for each of the cells in the following matrix for Charles Alt's business trip to Canteberry.
b. Discuss and illustrate whether the U.S. dollar strengthened or weakened relative to the florin during Charles's stay in Canteberry.
c. Did Charles experience a foreign currency transaction gain or a loss on the 100 florins he held during his visit to Canteberry and converted to U.S. dollars at the departure date? Explain your answer.


Arrival Date Departure Rate
Direct exchange rate
Indirect exchange rate

Answers

Answer:

Explanation:

Here's the answer!! Hope this helped...

a. Exchange rate for buying florins = 5 florins per U.S. dollar and Exchange rate for selling florins = 0.15 U.S. dollars per florin

b. At the beginning of his trip, the exchange rate for buying florins was 5 florins per U.S. dollar. At the end of his trip, the exchange rate for selling florins was 0.15 U.S. dollars per florin.

c. Charles experienced a foreign currency transaction loss on the 100 florins he held during his visit to Canteberry and converted to U.S. dollars at the departure date.

a. To determine the currency exchange rates for each of the cells in the matrix, we can use the given information:

1. Charles exchanged $200 into 1,000 florins at the beginning of his trip.

Exchange rate for buying florins = Amount in local currency / Amount in U.S. dollars

Exchange rate for buying florins = 1000 florins / $200

Exchange rate for buying florins = 5 florins per U.S. dollar

2. Charles exchanged his remaining 100 florins into $15 at the end of his trip.

Exchange rate for selling florins = Amount in U.S. dollars / Amount in local currency

Exchange rate for selling florins = $15 / 100 florins

Exchange rate for selling florins = 0.15 U.S. dollars per florin

The completed matrix would be:

|    -     | U.S. Dollars ($) | Florins |

| Buying  |        1        |   5    |

| Selling |       0.15      |   1    |

b. To discuss whether the U.S. dollar strengthened or weakened relative to the florin during Charles's stay in Canteberry, we compare the exchange rates at the beginning and end of his trip.

If the exchange rate for buying florins (5 florins per U.S. dollar) is higher than the exchange rate for selling florins (0.15 U.S. dollars per florin), it means that the U.S. dollar strengthened relative to the florin during Charles's stay in Canteberry. In other words, Charles could get more florins for each U.S. dollar at the beginning of his trip than he could get U.S. dollars for each florin at the end of his trip.

c. This is because the exchange rate for selling florins (0.15 U.S. dollars per florin) was lower than the exchange rate for buying florins (5 florins per U.S. dollar).

When Charles initially exchanged $200 into 1,000 florins, he got 5 florins per U.S. dollar. However, when he exchanged his remaining 100 florins back into U.S. dollars at the end of his trip, he got only 0.15 U.S. dollars per florin.

To illustrate the transaction:

Initial exchange:

$200 --> 5 florins per U.S. dollar --> 5 florins * 200 = 1,000 florins

Exchange at departure:

100 florins --> 0.15 U.S. dollars per florin --> 100 florins * 0.15 = $15

Charles initially got $200 worth of florins (1,000 florins), but when he converted the remaining 100 florins back into U.S. dollars, he received only $15. This difference of $200 - $15 = $185 represents a foreign currency transaction loss during his trip.

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Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production.

Beginning Work in Process (40% complete, $1,100) 200 units
Ending inventory of Work in Process (80% complete) 400 units
Total units started during the year 3,200 units

Answers

Answer:

The equivalent units of production 3,320 units

Explanation:

Equivalent units is the amount of work done in the manufacturing process at the end of the period. It includes fully completed units and partially completed units.

Equivalent units of production = ( Beginning work in process + Numbers of units started during the year ) - Incomplete units at the end of the period

Equivalent units of production = ( 200 units + 3,200 units ) - ( 400 units x ( 100% - 80% ) )

Equivalent units of production = 3,400 units - 80 units

Equivalent units of production = 3,320 units

Kylie is a single mom with two dependent children, Tanner, age 7 and Olivia, age 11. She has AGI of $36,000 and paid $5,300 to a qualified day care center for the two children. What amount of credit can Kylie receive for the child and dependent care credit?

a. $5,300.
b. $1,060.
c. $1,200.
d. $1,272.

Answers

Answer:

d. $1,272.

Explanation:

The computation of the amount of credit that received for child and dependent care credit is shown below:

= Total expense × applicable percentage

= $5,300 × 35% - {($36,000 - $15,000) ÷ $2,000 × 1%}

= $5,300 × 24%

= $1,272

hence, the amount of credit that received for child and dependent care credit is $1,272

Goal conflict can be avoided if budget goals are carefully designed for consistency across all areas of the organization. True False

Answers

Answer:

True

Explanation:

Goal conflict can be regarded as a kind of conflict that occur when there is two or more goals that are competing in ones mindset. It could be a clash in between ones personal goals and organizational goals. Goal confict can be avoided if budget goals are carefully designed for consistency across all areas of the organization.

Effective team members are able to deal with and resolve _________.

challenges
disagreements
conflict
problems

Answers

Answer:

Challenges

Explanation:

The answer to your question is Conflict

If you purchase a 5-year, zero-coupon bond for $691.72, how much could it be sold for 3 years later if interest rates have remained stable

a. $848.12
b. $911.15
c. $923.50
d. $862.92

Answers

Answer:

$862.92

Explanation:

We use this formula in other to solve this problem

price at issue = Fv / (1+r)n

Price at issue = $691.72

Future value fv = 1000

When we substitute into the formula

$691.72 = $1,000/(1+i)⁵

(1+i)⁵ =$1,000/$691.72

(1+i)⁵ = 1.445672

1 + i = (1.445672)1/5

1+i = 1.445672^0.2

1 + i= 1.0765

So that

I = 1.0765 -1

= 0.0765 also 7.65 %

We have after 3 years,

Price = Future Value/ (1+i)²

= $1,000/ 1.0765)²

= $1,000 / 1.158852

This gives us the value of

$ 862.9232

Therefore option d is the correct answer to the question

Troy's financial records for the year reflect the following: Interest income from bank savings account $1,800 Taxable annuity receipts 3,600 City ad valorem property tax on investments 270 Investment interest expense 6,300 Calculate Troy's net investment income and his current investment interest deduction. How is a deduction for any potential excess investment interest treated

Answers

Answer and Explanation:

The computation is shown below:

Troy net investment income is

= Interest income generated from saving bank account + annuity receipt taxable - city and valorem property tax

= $1,800 + $3,600 - $270

= $5,130

The current interest deduction for the investment is $5,130

And, the treatment of the potential excess interest of the investment should be carried forward

The same is to be considered

Suppose the economy is in an inflationary gap. According to neoclassical economists, what will happen

Answers

Answer:

The following portion describes the description and as per the particular context.

Explanation:

Sometimes when, however according to neoclassical economics, the economy would be in a monetary expansion void, the economy would rebound towards its maximum or projected production level. That's because the ecosystem or the market, throughout essence, is personality. Wage levels are not going to increase. To decrease the difference, joblessness could also increase and therefore not decline.

Crane Company issues $365,000, 20-year, 8% bonds at 103. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answers

Answer:

Crane Company

Journal entry to record the sale of the bonds on June 1, 2022:

Debit Cash Account $375,950

Credit Bonds Payable $365,000

Credit Bonds Premium $10,950

To record the sale of 8% bonds at 103.

Explanation:

a) Data and Calculations:

Face value of bonds = $365,000

Bonds maturity period = 20 years

Bonds issued at a premium of 103

Bonds rate of interest = 8% per annum

Number of bonds issued = $365,000/$100 = 3,650

Premium on bonds = 3,650 * $3 ($103 - $100) = $10,950

Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales of capital stock.

Answers

Answer:

When a company sells different securities together (this usually happens during mergers and acquisitions):

and the price of all the securities is not certain, the incremental method will first allocate proceeds to the sale of securities whose price is actually certain. The remaining proceeds will be allocated to the securities whose price is uncertain. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth ? million were sold. The company will allocate $5 million to stocks and $5 million to bonds. and the price of all the securities is certain, the proportional method allocates the sales proceeds proportionally among the different securities sold. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth $3 million were sold. The company will allocate ($5/$8) x $10 million = $6.25 million to stocks and $3.75 to bonds.

In the context of inventory costs, _____ can reflect backorders or service interruptions for external customers.

a. holding costs
b. stockout costs
c. ordering costs
d. setup costs

Answers

Answer:

b. stockout costs

Explanation:

Stockout cost is the cost in which the income is lost or the expenses that are attached to the inventory shortage

It can be occurred in two ways

1. Sales-related: In the case when the customer wants to order a product but at that time the stock is not available so here the company lost the gross margin

2. Inside process-related: This would arised when the company required inventory for running a production but at that time the inventory is not available so the company could incurred extra cost to purchase the inventory

So by above there is an interruption of a service

Therefore the option b is correct

Brown Industries has a debt-equity ratio of 1.5. Its WACC is 9.6 percent, and its cost of
debt is 5.7 percent. There is no corporate tax.
What is the company's cost of equity capital? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
b-1. What would the cost of equity be if the debt-equity ratio were 2.0? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
b-2. What would the cost of equity be if the debt-equity ratio were 0.5? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
b-3. What would the cost of equity be if the debt-equity ratio were zero? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)

Answers

Answer:

A .Unlevered cost of equity = 9.6

b-1 Levered cost of equity = 28.69

b-2 Levered cost of equity = 14.37

b-3 Levered cost of equity = 9.6

Explanation:

A. First step is to calculate the E/A

D/A = D/(E+D)

D/A = 1.5/(1+1.5)

D/A=0.6

E/A = 1-D/A

E/A=1-0.6

E/A=0.4

Second Step is to calculate WACC using this formula

WACC = Levered cost of equity*E/A+Cost of debt*(1-tax rate)*D/A

Let plug in the formula

0.096= Levered cost of equity*=0.4+0.057*(1-0)*=0.6

Levered cost of equity =15.45%

Third step is to calculate UnLevered cost of equity using this formula

Levered cost of equity = Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)

Let plug in the formula

0.1545 = Unlevered cost of equity+1.5*(Unlevered cost of equity-0.057)*(1-0)

Unlevered cost of equity = 9.6

b-1. Calculation for What would the cost of equity be if the debt-equity ratio were 2.0

Using this formula

Levered cost of equity = Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)

Let plug in the formula

Levered cost of equity = 9.6+2*(9.6-0.057)*(1-0)

Levered cost of equity = 28.69

b-2. Calculation for What would the cost of equity be if the debt-equity ratio were 0.5

Using this formula

Levered cost of equity = Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)

Let plug in the formula

Levered cost of equity = 9.6+0.5*(9.6-0.057)*(1-0)

Levered cost of equity = 14.37

b-3. Calculation for What would the cost of equity be if the debt-equity ratio were zero

Using this formula

Levered cost of equity = Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)

Let plug in the formula

Levered cost of equity = 9.6+0*(9.6-0.057)*(1-0)

Levered cost of equity = 9.6

Dan signs a check payable to Eagle Investors, Inc., and gives it to Eagle, leaving the amount blank but authorizing Eagle to fill in the check for $1,000. Eagle fills in $1,500 and negotiates the check to First State Bank, to whom Eagle owes $1,500. First State, an HDC, can enforce the check for:

Answers

Answer:

$1,500

Explanation:

Based on the information given we were told that Eagle fills in the amount of $1,500 instead of the amount of $1,000 which Dan authorize Eagle to fill in which they went ahead to as well negotiates the check payable to First State Bank because Eagle owes First State Bank the amount of $1,500 which means that First State Bank which is an HDC, can enforce the check for the amount of $1,500 which was negotiated by Eagle to First State Bank.

Therefore First State, an HDC, can enforce the check for: $1,500

Justify the role of ethics in the workplace

Answers

The role of ethics in the workplace is leads to satisfied workers who look forward to going to work rather than viewing it as a burden.

What do you understand by the role of ethics?

Ethics can be thought of as the rules that direct our behaviour so that we make the best decisions for the benefit of everybody. In order to tell the truth, maintain our word, or assist a stranger in need, we must follow ethical principles.

A company that implements a workplace ethics programme aligns employee behavior. This encourages transparency, collaboration, and trust as a result. Additionally, workers perform better at their professions when they are aware of the expectations of their superiors.

Integrity is among the most crucial working ethics. Additionally, employees grow to feel attached to and devoted to the company.

Therefore, the role of ethics in the workplace is leads to satisfied workers who look forward to going to work rather than viewing it as a burden.

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What happens when a firm makes a decision to grow from within?

Answers

Answer:

most grow by expanding their present operations. some introduce and sell new but related products. others expand the sale of present precepts to new geographic markets or to new groups of consumers in geographic markets already served.

Explanation:

Chris Smith owns a portfolio consisting of two stocks, Amazon and Apple, Inc. Chris owns $2,000 of Amazon and $6,500 of Apple, Inc. Chris has computed the expected return on Amanzon to be 8.2% and the expected return on Apple, Inc. to be 9.5%. The standard deviation of the returns on Amazon is 5.07% and the standard deviation of the returns on Apple, Inc. is 6.84%. The covariance on the returns of the two companies is -0.0014.

1. What is the expected return on Chris’ portfolio?

a. 6.39 percent
b. 7.70 percent
c. 9.99 percent
d. 7.89 percent
e. 9.19 percent

2. . What is the risk of this portfolio (measured by standard deviation)?

a. 4.87 percent
b. 4.26 percent
c. 2.73 percent
d. 7.46 percent
e. 3.82 percent

Answers

Answer:

0.0919411

4.87%

Explanation:

Given that:

AMAZON :

Investment = $2000

Expected return = 8.2%

Standard deviation = 5.07%

APPLE :

Investment = $6500

Expected return = 9.5%

Standard deviation = 6.84%

Total investment = $(2000 + 6500) = $8500

Amazon investment weight :

2000 / 8500 = 0.2353

Apple investment weight :

6500 / 8500 = 0.7647

Expected return on portfolio:

(Amazon weight * Amazon expected return) + (apple weight * apple expected return)

= (0.2353 * 0.082) + (0.7647 * 0.095)

= 0.0919411

= 0.0919411 * 100%

= 9.19411 = 9.19%

Portfolio risk :

Sqrt[(Amazon weight ² * amazon standard deviation²) + (apple weight ² * apple standard deviation ²) + 2 (weight of Amazon * weight of apple * covariance)]

Sqrt[(0.2353^2 * 0.0507^2) + (0.7647^2 * 0.0684^2) + 2(0.2353 * 0.7647 * - 0.0014)

Sqrt(0.0023743662707145)

= 0.0487274

= 0.0487274 * 100%

= 4.87%

Carly’s Clips charges for their grooming services based on the following:________.
Direct labor rate $ 62 per hour
Materials markup 30 %
Using time and materials pricing, what is the total price for a job requiring 3 direct labor hours and $54 of materials?

Answers

Answer: $256

Explanation:

Using time and materials pricing, the total price for a job requiring 3 direct labor hours and $54 of materials will be calculated as:

Materials = $54

Add: Materials markup = 30% × $54 = 0.3 × $54 = $16.2 = $16

Add: Labour = 3 × $62 = $186

Total price of job = $256

McDonalds reported current year pretax book income of $365,000. Included in the computation were favorable temporary differences of $13,750, unfavorable temporary differences of $97,000, and unfavorable permanent differences of $45,000. McDonalds' current income tax expense or benefit would be

Answers

Answer:

the current income tax expense or benefit is $103,583

Explanation:

The computation of the current income tax expense or benefit is shown below:

Current income tax expense is

= (pre - tax book income - favourable temporary difference + unfavorable temporary difference + unfavourable permanent difference) × tax rate

= ($365,000 - $13,750 + $97,000 + $45,000) × 21%

= $493,250 × 21%

= $103,583

We assumed the tax rate be 21%

hence, the  current income tax expense or benefit is $103,583

You are about to start your venture in agribusiness, which will be called Consumer's Delight. Create a marketing business plan describing key
aspects of your strategy, such as a mission statement, objectives, marketing mix, promotion techniques, and so on

Answers

Answer:

Amiin Fruits and vegetables

Explanation:

mission statement

we want to satisfy all fruits and vegetables needs in our geographical area by offering low price high quality fresh fruits and vegetables

Answer:

The marketing business plan for Consumer’s Delight will consist of the following aspects:

Mission: Consumer’s Delight’s mission is to provide fresh, high-quality vegetables that exceed consumers’ expectation and become their first choice for vegetable grocery shopping.

Marketing objectives: The marketing objectives of Consumer’s Delight will include the following:

Grow at a steady rate each month and capture nearby local vegetable markets.

Acquire new customers every quarter, targeting local restaurants and eventually hotels.

Generate goodwill and become the first choice for large orders.

Expand into allied segments such as logistics and consultation.

Main products (produce): Iceberg lettuce, broccoli, and spinach

Financial objectives: To achieve a 4 percent growth every year. To reduce the number of middlemen involved for transportation, other logistics, and delivery of the produce by 12 percent in the current year. Consumer’s Delight is expected reach its break-even point toward the end of the fourth quarter.

Target markets: Consumer’s Delight is looking at two sets of target markets, namely, individuals (consumers from the local supermarket) and restaurants.

Individual consumers: Green leafy vegetables are always in demand for salads, sandwiches, soups, and so on. The stock also needs to be fresh, which requires a daily turnover. Through current logistics connections, Consumer’s Delight will ensure that the stocks are delivered daily and in the best condition. Consumer’s Delight will also make use of local farmers at various locations to reach the maximum number of individuals.

Restaurants: Consumer’s Delight will work to contact all of the local restaurants in the vicinity, which total 12 in number. The aim will be to acquire long-term contracts with them.

Positioning: Consumer’s Delight will be positioned as:

fresh and healthy

high quality

dependable

Strategies: Consumer’s Delight primary motive is to become the preferred choice of its target group and to capture the entire market within the next five years. The strategy will initially begin with penetrative marketing strategies, wherein we will aggressively market to the local supermarkets. A Consumer’s Delight counter will be set up within the supermarket to take care of the branding and visibility of the agribusiness. The next stage will be to tap local restaurants once a good amount of brand visibility has been created.

Marketing mix: Consumer’s Delight will use the following marketing mix:

Pricing: Consumer’s Delight will price their produce per pound.

Distribution: Consumer’s Delight will connect with local transportation and logistics dealers and will regularly supply supermarkets. The company will follow a similar plan once the contracts from the restaurants begin to materialize.

Promotion: Because creating brand visibility is of paramount importance, Consumer’s Delight will put up posters and flyers inviting consumers to try out their products in the supermarkets. Consumer's Delight will also advertise in the weekly specials and monthly magazines of select supermarkets according to financial feasibility. Social media will be used to connect to potential restaurant clients.

Customer Service: Consumer’s Delight aims to offer the highest level of customer service to ensure loyalty and long-term contracts. Occasional store discounts will form a part of the customer service strategy.

Management and staffing: Consumer’s Delight will start with a small group of employees, and most of them will be work on a contractual basis. The staff members will mainly consist of analysts, consultants, field workers, store keepers, and others with average salaries.

Explanation:

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