Answer:
the required rate of return on the stock is 12.52%
Explanation:
The computation of the required rate of return on the stock is shown below:
= (Next year Dividend ÷ current stock price ) + growth rate
= ($1.68 ÷ $ 22.35 ) + 0.05
= 0.075 + 0.05
= 12.52%
Hence, the required rate of return on the stock is 12.52%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
A Parent company owns a 70 percent controlling interest in the voting common stock of its Subsidiary. The subsidiary also has outstanding 10,000 shares of 3% cumulative preferred stock outstanding with par value equal to $5,000,000. If the parent company owns none of the preferred stock, how should the preferred stock be accounted for in the consolidation financial statement?
How would your answer change if the parent company owned 100 percent of the preferred stock?
Answer and Explanation:
a. In the case when the subsidiary company owns none of the preferred stock so the income of the subsidiary and the net assets allocated to the preferred stocks that not owned by the parent would be involved in the non-controlling interest
b. Now if the parent company owned 100% of the preferred stock so the share of the income of the subsidiary and the net asset allocated to the preferred shares would be removed against the balance left in the investment account of the parent
A 10-year 5.5 percent coupon bond was issued 3 years ago. It pays interest semiannually, and has a yield to maturity of 6.23 percent. What is the current market price of the bond
Answer:
The current market price of the bond is $959.09
Explanation:
Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Both of these cash flows discounted and added to calculate the value of the bond.
According to given data
Face value of the bond = F = $1,000 ( Assumed )
Coupon payment = C = $1,000 x 5.5% x 6/12 = $27.5
Number of periods = n = ( 10 years - 3 years ) x 12/6 = 14 period
Yield to maturity = 6.23% annually x 6/12 = 3.115% semiannually
Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $27.5 x [ ( 1 - ( 1 + 3.115% )^-14 ) / 3.115% ] + [ $1,000 / ( 1 + 3.115% )^14 ]
Price of the Bond = $308.22 + $650.87
Price of the Bond = $959.09
Fowler, Inc., just paid a dividend of $2.55 per share on its stock. The dividends are expected to grow at a constant rate of 3.9 percent per year, indefinitely. If investors require a return of 10.4 percent on this stock, what is the current price
Answer:
The current price of the stock is $40.76
Explanation:
The computation of the current price is shown below:
Current price is
= Current year dividend ÷ (Required rate of return - growth rate)
= ($2.55 × (1 + 0.039) ÷ (10.4% - 3.9%)
= $2.6495 ÷ (0.104 - 0.039)
= $2.6495 ÷ 0.065
= $40.76
Hence, the current price of the stock is $40.76
We simply applied the above formula so that the correct value could come
And, the same is to be considered
The financial statement that reports assets liabilities and stockholders Equity as of the last day of the is called:_____.1. Balance Sheet.
2. Income Statement.
3. Statement of Cash Flows.
Answer:
1. Balance Sheet.
Explanation:
The balance sheet shows the Assets, Liabilities and stockholders equity at the end of a period.
Balance Sheet shows the financial position of a business. The balance sheet follows the concept of the Accounting equation as follow
Assets = Stockholders equity + Liabilities
Formate of a balance sheet is attached with the answer please find it
Suppose it takes $1.05 to buy 1 euro, the U.S. price level is 120, and the European price level is 125. A. Calculate the real exchange rate for the U.S. against the euro.B. Suppose the U.S. price level rises to 130. Calculate the real exchange rate again and explain why it has risen or fallen.
Answer:
0.914
0.990
Explanation:
Real Exchange rate= e * P/P
where
e = nominal exchange rate
P = Domestic Price Level
P* = Domestic Price Level
On that basis, we calculate that
a.)
$1/$1.05 = 0.9523
0.9523 * 120/125 =
0.9523 * 0.96 =
0.914
b)
$1/$1.05 = 0.9523
0.9523 * 130/125 =
0.9523 * 1.04 =
0.990
Also, there is going to be a change in the domestic price level. This change will then go on to affect the real exchange rate
Elizabeth Brown is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.675 percent. If these bonds have a market price of $977.11, what yield to maturity can she expect to earn?
Answer:
The yield to maturity is 6.53%
Explanation:
The computation of the yield to maturity is shown below:
Given that
Assume future value be $1,000
The Present value is $977.11
PMT = $1,000 × 5.675% ÷ 2 = $28.375
NPER = 3 × 2 = 6
The formula is given below:
= RATE(NPER;PMT;-PV;FV;TYPE)
The present values comes in negative
After applying the above formula, the yield to maturity is
= 3.263% × 2
= 6.53%
____ is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks.
Answer:
Functional departmentalization.
Explanation:
Functional departmentalization is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks. Downward communication is used in functional departmentilazation.
Downward communication can be defined as the formal flow of information and messages within an organizational hierarchy; which is mainly from a higher level (senior management) of an organization to a lower level (middle management) and lastly, to the least (subordinates).
When downward communication are effectively and properly used in an organization, it helps them to achieve their aims, goals and objectives successfully.
TIME REMAINING
53:22
Which of these is a banking activity of the Fed?
printing money
regulating securities markets
storing money for banks
funding government programs
Answer:
C
Explanation:
Answer:
C
Explanation:
Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the: _________
a. factory overhead cost controllable variance
b. factory overhead cost volume variance
c. factory overhead direct labor variance
d. standard capacity utlization variance
Answer:
B)factory overhead cost volume variance
Explanation:
From the question, there was an an assumption that the standard fixed overhead rate is based on full capacity, in this case the cost of available but unused productive capacity is indicated by the factory overhead cost volume variance. Factory overhead cost volume variance can be regarded as the difference that exist between the fixed overhead that is associated to those good/ service from the firm on production volume and the budgeted amount that is associated to goods) services that are been produced. fixed overhead costs
could be Factory rent and others.
Which of the following is a type of advertising?
O A. Sponsoring a local charity event
O B. Visiting a potential customer
C. Creating commercials for television
O D. Mailing coupons to customers' homes
SUBMIT
The correct option is C. Creating commercials for television of the following is a type of advertising.
An average individual reads a newspaper for 30 minutes and listens to audiobooks for 10 to 15 minutes. The audience watches advertisements on television, second only to the internet. Television can be viewed in rural locations where connectivity is still a problem.
What is persuasive advertising?Consumers' preferences and interests are used by persuasive advertising to persuade them to buy a good or service. This type of advertising frequently emphasizes the advantages the product or service can provide the consumer.
A product, brand, or service is promoted to a viewership through an advertisement in order to pique their attention, encourage interaction, and increase sales. A key component of the app store, advertisements come in a variety of formats, from copy to interactive video.
Learn more about Advertising here:
https://brainly.com/question/3163475
#SPJ2
One of the major benefits of using a balanced scorecard is the recognition that business success is driven by factors in addition for the financials. True False
Answer:
True
Explanation:
The major benefits of using a balanced scorecard is the recognition that business success is driven by factors in addition for the financials.
This is true because the balanced scorecard helps in the balanced assessment of the different factors such as key strategic decisions etc are also responsible for an organization’s growth and developments asides the financials alone.
True, one of the major benefits of balanced scorecard is that its helps recognize factors which are necessary to drive a business success.
The Balanced scorecard is a management performance metric which helps to identify and improve the company's internal operations to help their external outcomes.
The Balanced scorecard forms part of internal factors which can be controlled and helps to measures past performance data as well as provides feedback to make better decisions.
Therefore, it is true that one of the major benefits of balanced scorecard is that its helps recognize factors which are necessary to drive a business success.
Learn more about Balanced scorecard here
brainly.com/question/16942444
Pacific Inc. has EBIT of $50m per year in perpetuity. The cost of capital of unlevered firm is 10%. Pacific's current market values of debt and equity are $100mm and $260mm respectively. Its corporate tax rate is 30%. What is the decrease in the firm's value due to expected financial distress costs?
Answer:
$20 mm
Explanation:
Calculation for What is the decrease in the firm's value due to expected financial distress costs
First step is to calculate the Value of unlevered firm using this formula
Value of unlevered firm = EBIT x (1 - tax) / Cots of capital
Let plug in the formula
Value of unlevered firm = 50 x (1 - 30%) / 10%
Value of unlevered firm= $350 mm
Now let calculate expected financial distress costs
Using this formula
Market Value of equity = Value of unlevered firm + Tax shield - Debt - Expected Financial Distress
Let plug in the formula
260mm= 350 mm+ 30% x 100mm - 100mm - Expected Financial Distress
260mm= 350 mm+ 30mm - 100mm - Expected Financial Distress
260mm= 280mm-Expected Financial Distress
Expected Financial Distress = $20 mm
Therefore the decrease in the firm's value due to expected financial distress costs will be $20 mm
A stock had returns of 5.10%, 31.60%, and -21.20% in each of the past three years. Over the past four years, the arithmetic average annual return for the stock was 4.75%. What was the geometric annual return for the stock over the past four years?a. 2.91% (plus or minus 0.02 percentage points)b. 3.06% (plus or minus 0.02 percentage points)c. 3.37% (plus or minus 0.02 percentage points)d. 5.07% (plus or minus 0.02 percentage points)e. None of the above is within 0.02 percentage points of the correct answer
Answer:
The correct option is c. 3.37% (plus or minus 0.02 percentage points).
Explanation:
Note that since we are asked to find the geometric annual return for the stock over the past four years but we are only given the stock returns for each of the past three years, this implies that the stock return to be used for the first year of the past four years will be the arithmetic average annual return for the stock over the past four years.
Therefore, the geometric annual return for the stock over the past four years can now be computed using the following formula:
Geometric average return = {[(1 + r1) * (1 + r2) * (1 + r3) * (1 + r4)]^(1/4)} - 1 ....... (1)
Where;
r1 = Stock return in year 1 = arithmetic average annual return = 4.75%, or 0.0475
r2 = Stock return in year 2 = 5.10%, or 0.0510
r3 = Stock return in year 3 = 31.60%, or 0.3160
r4 = Stock return in year 4 = -21.20%, or -0.2120
Substituting the values into equation (1), we have:
Geometric average return = {[(1 + 0.0475) * (1 + 0.0510) * (1 + 0.3160) * (1 - 0.2120)]^(1/4)} - 1
Geometric average return = 1.14166543988^(1/4) - 1
Geometric average return = 1.03367666813442 - 1
Geometric average return = 0.03367666813442, or 3.367666813442%
Rounding to 2 decimal places, we have:
Geometric average return = 3.37%
Therefore, the correct option is c. 3.37% (plus or minus 0.02 percentage points).
You expect to receive $2,600 upon your graduation and will invest your windfall at an interest rate of 0.33 percent per quarter until the account is worth $4,375. How many years do you have to wait until you reach your target account value?
a. 34.55 years
b. 39.49 years
c. 36.86 years
d. 42.53 years
e. 39.68 years
Answer:
n= 39.49 years
Explanation:
Giving the following information:
Present value (PV)= $2,600
Future value (FV)= $4,375
Interest rate (i)= 0.33/100= 0.0033
To calculate the number of years, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(4,375/2,600) / ln(1.0033)
n= 157.96/4
n= 39.49 years
From 7 people comprising of 5 men and 2 women , 4 people are to be selected. If random variale is count of women, what is the frequency of 2 women?"
2
0
10
None of the above
Answer: 10
Explanation:
From the queen, we are informed that from 7 people comprising of 5 men and 2 women , 4 people are to be selected.
To calculate the frequency of 2 women we can. get goes thus:
= 5C2 2C2
= 5! / (5-2)!2!
= 5! /3!2!
= 5 × 4 × 3 × 2 / 3 × 2 × 2
= 10
Therefore, the frequency of 2 women is 10
What are some of the reasons that work teams have become more prevalent in todayâs organizations? How do they provide a competitive advantage?
Answer: working as a team sets up organizations for outstanding success and Improvement of team members
Explanation:
Working as a team has been a great help for most organizations. It's been realized that success experienced by many firms has been a result of what the teams accomplished when they worked together on a project, here are some reasons why they become prevalent;
1) Unity is being fostered within their activities, everyone is able to understand each other and know how to cooperate with the other
2) Productivity and efficiency is usually on the high as teams that work together put in a lot of energy to be productive in many efficient ways
3) There is an opportunity to learn from the group, thereby improving the skills of everyone on the group
They provide a competitive advantage when they work together, with everyone's effort, progress, success and achievement's are bound to occur.
Parkway Void Co. issued 16-year bonds two years ago at a coupon rate of 8.5 percent. The bonds make semiannual payments. If these bonds currently sell for 109 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
The annual YTM will be = 0.07518796992 or 7.518796992% rounded off to 7.52%
Explanation:
The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,
YTM = [ ( C + (F - P / n)) / (F + P / 2) ]
Where,
C is the coupon payment
F is the Face value of the bond
P is the current value of the bond
n is the number of years to maturity
Lets assume the par value is 1000.
Current value = 1000 * 109% = 1090
Coupon payment = 1000 * 0.085 * 6/12 = 42.5
Number of periods remaining till maturity = 14 * 2 = 28
semi annual YTM = [ (42.5 + (1000 - 1090 / 28)) / (1000 + 1090 / 2)
semi annual YTM = 0.03759398496 or 3.759398496% rounded off to 3.76%
The annual YTM will be = 0.03759398496 * 2 = 0.07518796992 or 7.518796992% rounded off to 7.52%
Sixth Fourth Bank has an issue of preferred stock with a $6.30 stated dividend that just sold for $125 per share. What is the bank’s cost of preferred stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
5.04%
Explanation:
The stated dividend of sixth fourth bank is $6.30
It is sold at $125 per share
Therefore the bank's cost of preferred stock can be calculated as follows
= 6.30/125
= 0.0504 × 100
= 5.04%
Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.15, but management expects to reduce the payout by 6 percent per year indefinitely. If you require a return of 12 percent on this stock, what will you pay for a share today
Answer:
the stock price is $58.23
Explanation:
The computation of the price pay per share today is shown below:
Stock price is
= Current year dividend ÷ (required rate of return - growth rate)
= $11.15 × (1 - 0.06) ÷ (12% - (-6%)
= $10.48 ÷ 18%
= $58.23
Hence, the stock price is $58.23
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Serena is a 38-year-old single taxpayer. She operates a small business on the side as a sole proprietorship. Her 2019 Schedule C reports net profits of $15,624. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,545 in 2019. Serena also pays long-term care insurance premiums of $600 in 2019.
Explanation:
7,545 + 420 = 7,965
Because Serena is 38 years old, she is limited to $420 on long-term care insurance premium deductible.
Answer:
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Explanation:
If the inflation rate is positive power is ?. This situation is reflected in the ? Rate of return on an investment, which will be ? The ? Rate of return
Answer:
If inflation rate is positive, purchasing power of money decreases thus the rate of returns on investment decreases.
Explanation:
Information management organizes data over time that will allow us to become more proficient in understanding data related to a company or business.
Below are the processes used to help organize information. Put these processes in order from the first step to the last.
= archiving information
= destruction of that information
= curation or organization of information
= dissemination or distrubuation of inforation
= collection of information
= storage of information
Answer:
=archiving information
Explanation:
An equal partnership is formed by Rita and Gerry. Rita contributes cash of $10,000 and a building with a fair market value of $150,000, adjusted basis of $55,000, and subject to a liability of $60,000. Gerry contributes cash of $100,000. What amount of gain must Rita recognize as a result of this transaction?A. $35000
B. $65000
C. $70000
D. $25000
E. None of these choices are correct
Answer:
A. $35000
Explanation:
The computation of the amount of gain that recognized is shown below:
= Value of the building adjusted + cash contributed - building liability + 50% shares on debt
= $55,000 + $10,000 - $60,000 + $60,000 × 50%
= $55,000 + $10,000 - $60,000 + $30,000
= $35,000
Hence, the amount of gain that recognized is $35,000
Therefore the correct option is A.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
If the demand during review cycle is equal to 12, the demand during lead time is 11, and the safety stock is equal to 8, what is the order point
Answer:
the order point is 19
Explanation:
The computation of the order point is shown below:
Order point is
= Demand during lead time + safety stock
= 11 + 8
= 19
hence, the order point is 19
We simply applied the above formula so that the correct value could come
And, the same is to be considered
And ignored the demand during review cycle as it is relevant for the calculation of the order point
Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free trade credit if it pays 145 days after the purchase?
Answer:
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Blinding Light Co. has a project available with the following cash flows: Year Cash Flow 0 −$35,070 1 7,970 2 9,570 3 13,560 4 15,610 5 10,340 What is the project's IRR?
Answer:
The project's IRR is 17.28%
Explanation:
IRR is the discount rate at which the NPV of the project's cash flow becomes zero. ThNPV calculated using discount rate below IRR is positive and over IRR is negative.
To calculate the IRR using the following formula
IRR = Lower Rate + ( Lower rate NPV / ( Lower rate NPV - Higher rate NPV ) ) x ( Higher rate - Lower rate )
Now calculate the NPV two different rates
NPV at 17%
Year___Cash Flows__Preser value factor 17%__Present value
0______($35,070)___( 1 + 17%)^-0 = 1 _________($35,070)
1_______$7,970____ ( 1 + 17%)^-1 = 0.8547 _____$6,812
2_______$9,570____( 1 + 17%)^-2 = 0.7305 ____$6,991
3_______$13,560___ ( 1 + 17%)^-3 = 0.6244 ____$8,466
4_______$15,610____( 1 + 17%)^-4 = 0.5337 ____$8,330
5_______$10,340____( 1 + 17%)^-5 = 0.4561____ $4,716
NPV ___________________________________ $246
NPV at 18%
Year___Cash Flows__Preser value factor 18%__Present value
0______($35,070)___( 1 + 18%)^-0 = 1 _________($35,070)
1_______$7,970____ ( 1 + 18%)^-1 = 0.8475 _____$6,754.24
2_______$9,570____( 1 + 18%)^-2 = 0.7182 _____$6,873.03
3_______$13,560___ ( 1 + 18%)^-3 = 0.6086 ____ $8,253.04
4_______$15,610____( 1 + 18%)^-4 = 0.5158 _____$8,051.46
5_______$10,340____( 1 + 18%)^-5 = 0.4371_____ $4,519.71
NPV ___________________________________ ($618.52 )
Nox place the values in the formula
IRR = 17% + ( ( $246 / ( $246 - ( - 618.52 ) ) ) x ( 18% - 17% )
IRR = 17.28%
Flagstaff Company has budgeted July production of 8,200 units. Variable factory overhead is $1.2 per unit. Budgeted fixed factory overhead is $20,500, which includes $3,300 of factory equipment depreciation. Compute the total budgeted overhead for July.
Answer:
Allocated MOH= $30,340
Explanation:
Giving the following information:
Flagstaff Company has budgeted July production of 8,200 units. Variable factory overhead is $1.2 per unit.
Budgeted fixed factory overhead is $20,500
To calculate the allocated overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= (1.2*8,200) + 20,500
Allocated MOH= $30,340
You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 9.775%. The current risk-free rate is 4%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.75, what will be the required return on your $5.5 million portfolio
Answer:
9.62%
Explanation:
Re = Rf + (B x Rp)
Re = cost of equity = 9.775%
Rf = risk free rate = 4%
B = beta = 1.05
Rp = risk premium = ?
Rp = (Re - Rf) B = (9.775% - 4%)/1.05 = 5.5%
Re portfolio = Rf + {Rp x [(B₁ x $5/$5.5) + (B₂ x $0.5/$5.5)]}
Re portfolio = 4% + {5.5% x [(1.05 x $5/$5.5) + (0.75 x $0.5/$5.5)]}
Re portfolio = 4% + {5.5% x [0.9545 + 0.0682]}
Re portfolio = 4% + 5.6249% = 9.62%
Duerr Company makes a $79,000, 30-day, 12% cash loan to Ryan Co. The note and interest to be collected at maturity is: (Use 360 days a year.)a. $79,000.b. $790.c. $79,790.d. $78,210.e. $88,480.
Answer:
c. $79,790
Explanation:
The computation of the note and interest collected at maturity date is showb below:
Maturity value = Principal + interest
where,
Principal is $79,000
And, the interest is
= $79,000 ×30 days ÷ 360 days × 12%
= $790
So, the maturity value is
= $79,000 + $790
= $79,790
Hence, the maturity value is $79,790
Therefore the correct option is c.
Employees are most likely to change a job because of:
Answer:
increasing salary for fullfilling their demand