Answer:
the beta of stock₂ = 1.69
Explanation:
the weight of each security is ¹/₃ of the portfolio:
the risk free asset has a beta of 0stock₁ has a beta of 1.31stock₂ has a beta of ?the portfolio's beta is 1
1 = (¹/₃ x 0) + (¹/₃ x 1.31) + (¹/₃ x ?)
1 = 0.437 + (¹/₃ x ?)
1 - 0.437 = (¹/₃ x ?)
0.563 = (¹/₃ x ?)
? = 0.563 / ¹/₃ = 1.689 = 1.69
the beta of stock₂ = 1.69
When a commercial bank borrows additional reserves from another bank, it pays which interest rate?
Answer:
Federal funds rate
Explanation:
Federal funds rate can be described as a target interest rate which is set by the Federal Open Market Committee (FOMC) and it is the interest rate at which excess reserves of commercial banks are lent to and borrowed from each other overnight.
The law requires that commercial banks must maintain certain percentage of their deposits in their account with Federal Reserve bank as a reserve. When there is an excess of money above the required level in the reserve of some banks, the excess can be lent by those banks to other banks that have shortfalls. The interest rate that is paid by the borrowing banks is the federal fund rate.
Answer - Federal Funds Rate
Explanation;
The Fed sets a reserve requirement that banks must keep with them out of their deposits. Everyday they will have to meet this reserve requirement. When they do not, they have the option to borrow overnight from another bank that has excess reserves.
The rate that they will borrow these excess reserves at is the Federal Funds Rate. This rate is set by the Federal Open Market Committee (FOMC) of the Fed which does so based on the economic condition of the nation.
Trying to reduce unemployment using expansionary monetary policy during stagflation will?
A) Make inflation worse.
B) Not affect prices at all
C) Make unemployment worse
D) Reduce inflation.
Answer:
A
Explanation:
A stagflation is a period of inflation , high unemployment and stagnation of the economy.
An expansionary monetary policy is a policy undertaken by the Central Bank of a country to increase the money supply in the economy.
Increasing money supply in a period of stagflation would make inflation worse.
Glacier Corporation discovered these errors in August of Year 3: Depreciation Overstated $2,500 4,000 Prepaid Expense Omitted $3,000 2,000 Assume all current items are two months in duration. Net Income for Year 2 was $18,000. Assume all errors are discovered in August of Year #3. The Year #2 books are closed. The net effect on Year #3 Beginning Retained Earnings caused by the August Year #3 correcting journal entries was:________. Select one:
a. $5,500
b. $6,500
c. $6,000
d. $8,500
e. $4,500
Answer:
e. $4,500
Explanation:
The net effect for the year 3 is shown below:
= Depreciation overstates in the year 1 + year 2 depreciation overstated - prepaid expenses omitted for the year 2 is
= $2,500 + $4,000 - $2,000
= $6,500 - $2,000
= $4,500
Therefore the net effect on the year 3 is $4,500
Hene, the correct option is e. $4,500
The other options are incorrect
intext:"On December 31, there were 26 units remaining in ending inventory. Using the periodic LIFO inventory costing method, what is the value of cost of goods sold"
Answer:
Hi, the question you have provided is missing data on the Purchases and Available Inventory for Sale on the Company :
Here are the important principles to consider when calculating the value of Cost of Goods Sold using LIFO periodic Inventory Costing System.
LIFO stands for Last - In - First - Out. This method assumes that the last goods purchased are the first ones to be issued to the final customer or requisition department.
This means the valuation of inventory will be at the value of the earliest goods purchased and that the cost of goods sold will be at the latest prices.
Units Sold Calculation
In this question we are provided with Ending Inventory Balance of 26 units. Since its Periodic system, calculation of sales units will simply be Total Balance Available for Sale (Opening Balance plus Purchases) less Ending Balance of Inventory units.
Cost of Sales Calculation
Now with the units sold having been calculated, we have to use the principles of LIFO to make sure that of those units sold, last goods purchased are the first ones to be issued to the final customer.
Which one of the following is not something to look for yin identifying the key features of a company's corporate culture?
a) The values, business principles, and ethical standards that management preaches and practices
b) The company's revered traditions and oft-repeated stories about "heroic acts" and "how we do things around here and why we do them that way."
c) The actions and behaviors management explicitly encourages and rewards in the form of compensation and promotion and those that are frowned upon (and sometimes punished)
d) The company's strategic intent, the type of competitive strategy it is employing, the company's code of ethics, and the company's approach to compensating and rewarding employees
e) The company's approach to people management and the official policies, procedures, and operating practices that paint the white lines for the behavior of company personnel
Answer:
Correct Answer:
d) The company's strategic intent, the type of competitive strategy it is employing, the company's code of ethics, and the company's approach to compensating and rewarding employees
Explanation:
This is not something to look to in order to identify features of a company's corporate culture. This is because, their competitive strategies it employs in business could vary from their culture due to the nature of the business they are engaged in.
A company corporate culture is something that is the beliefs and values that determine how the company employees and managers interact while handling business intends.
In order to identify the company's key characters that relate to the corporate world. The company's intent, the nature of competitive strategy used. The company's code of ethics, along with the approach to compensation and rewarding of employees.Hence the option D is correct.
Learn more about the not something to look for in identifying the key features.
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the market capitalization rate for firm x is 10% it expected roe is 11% and its expected eps is $4 the firms plowback ratio is 68% what is the p/e ration for tthis firm
Answer:
The p/e ratio for this firm is 12.70.
Explanation:
The price-to-earnings ratio (P/E ratio) refer to the ratio that is employed to value a company as it measures current price of share of the company relative to the earnings per share (EPS) of the company.
From the question, we are given the following:
r = Market capitalization rate = 10%
roe = Expected return on equity = 11%
eps = Expected earning per share = $4
pb = Plowback ratio = 68%
Therefore,
po = payout ratio = 100% - pb = 100% - 68% = 32%
To calculate the price earning (P/E), we use the P/E ratio formula as follows:
P/E ratio =Price / EPS .............................. (1)
Where;
Price = d / (r - g) ........................................ (2)
d = Expected dividend = eps * pb = $4 * 32% = $1.28
g = growth rate = pb * roe = 68% * 11% = 7.48%
Substituting for d, r and d into equation (2), we have:
Price = $1.28 / (10% - 7.48%) = $1.28 / 2.52% = $50.79
Substituting for Price and eps into equation (1), we have:
P/E ratio = $50.79 / $4 = 12.70
Therefore, p/e ratio for this firm is 12.70.
As a warm-up, here's a question that won't affect your score. We recommend you take this test in a quiet place free from distractions. The timer shows the time remaining for each question. The assessment will begin when you hit "Continue."Generally Accepted Accounting Principles (GAAP) are a) commonly agreed-upon professional accounting standards in the United States b) legally binding rules created by the Internal Revenue Service c) standards required only for large companies with over $100M in revenue
Answer:
a) commonly agreed-upon professional accounting standards in the United States
Explanation:
According to the Generally Accepted Accounting Principles (GAAP) it consist of accounting principles, rules, procedures that are followed companies to companies so that there financial statements considered to be valid.
Here, in the given question the option A is correct as it is agreed for the professional accounting standard that shows the Generally Accepted Accounting Principles (GAAP)
Hence, the correct option is A.
a system of accounting for production operations that produces timely information about inventories and manufactyring cost per unit of product is a
Answer:
cost accounting system
Explanation:
The system that is being described is known as a cost accounting system. This system is mainly used by firms in order to estimate the cost of their various products in order to use the information to analyze their profitability as well as their inventory valuation and cost control, all of which are vital to the company's profitable operations when dealing with accounting.
The expected amount of time to recover the initial amount of an investment is called the: Multiple Choice Amortization period. Payback period. Interest period. Budgeting period. Discounted cash flow period.
Answer: Payback Period
Explanation:
Payback period refers to the length of time by which the initial cost of an investment is expected to be recovered or the break even point of which an investment expects to recoup the amount used up in an initial cost of investment.
A good payback period is one with the shortest Payback, time while longer payback periods are not desired for business investments.
To calculate Payback period, we use
amount of the investment / annual cash flow = Payback period.
Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45%. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next eight years. The company uses a discount rate of 12%. 1. What is the payback period? 2. What is the NPV for this project? 3. What is the IRR?Annual Cash Flows
Answer:
1. 3 years and 9 months
2. $16,439,325
3. 20.33 %
Explanation:
The Summary of the Cash Flows for this project will be as follows :
Year 0 - $7,125,000
Year 1 $1,875,000
Year 2 $1,875,000
Year 3 $1,875,000
Year 4 $1,875,000
Year 5 $1,875,000
Year 6 $1,875,000
Year 7 $1,875,000
Year 8 $1,875,000
Payback Period
$7,125,000 = Year 1 ($1,875,000) + Year 1 ($1,875,000) + Year 1 ($1,875,000) + $1,500,000 / $1,875,000
= 3 years and 9 months
Net Present Value (NPV)
Calculation using a financial calculator :
- $7,125,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
I/YR 12%
Shift NPV $16,439,325
Internal Rate of Return (IRR)
Calculation using a financial calculator :
- $7,125,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
Shift IRR 20.33 %
The standard cost card for a product indicates that one unit of the product requires 5 kilograms of a raw material at $0.80 per kilogram. The production of the product in April was 660 units, but production had been budgeted for 640 units. During April, 7,000 kilograms of the raw material were purchased for $6,040 and 3,535 kilograms of the raw material were used in production. The material variances for April were:
Answer:
Price Variance $440 Unfavorable
Usage variance $188 unfavorable
Explanation:
A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite.
Price variance $
7000 kg should have cost (7000× $0.80) 5600
but did cost 6,040
Price Variance 440 Unfavorable
Price Variance $440 Unfavorable
Usage variance
A material usage variance occurs when the standard quantity required to active a particular level of production is higher or lower than than the actual actual quantity used. A favorable variance would mean than less quantity of materials were used than the standard to achieve a given output level. And an adverse variance would mean the opposite
Kg
640 units should have used (660× 5kg) 3,300
but did use 3,535
Usage variance in Kg 235 unfavorable
Standard price × $0.80
Usage variance in $ $188 unfavorable
Usage variance in $188 unfavorable
15. Hallmark Inc. has dividend per share of $2.10, $2.65, $3.03 and $3.22 for the next four years. The company believes that the income will grow by a constant 4% after year four. Discount rate is 7%. What is the value of Hallmark Inc.?
Answer:
P0 = $94.36658 rounded off to $94.37
Explanation:
To calculate the value per share of Hallmark Inc. we will use the dividend discount model or DDM, DDM values the price of a stock based on the present value of the expected future dividends from the stock. The formula for price under DDM of this stock is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + D3 / (1+r)^3 + D4 / (1+r)^4 +
[(D4 * (1+g)) / (r - g)] / (1+r)^4
Where,
r is the required rate of returng is the constant growth rateP0 is price or value per share todayP0 = 2.1 / (1+0.07) + 2.65 / (1+0.07)^2 + 3.03 / (1+0.07)^3 +
3.22 / (1+0.07)^4 + [(3.22 * (1+0.04)) / (0.07 - 0.04)] / (1+0.07)^4
P0 = $94.36658 rounded off to $94.37
Several firms are operating in a market where they take the other firms' response to their actions into account. This market is
Answer: An Oligopolistic market.
Explanation:
An Oligopolistic market is a market where they are very few supplies of a product and as such they charge higher prices due to the reduced competition.
In such a market the firms have to be very mindful of how their actions will impact that of their competitors because with such few competitors, they could easily lose customers if another oligopoly decides to change prices for instance.
They generally avoid doing so though because a price change by one will lead to a price change by others which would end up reducing the total amount that each firm makes as the prices will usually go downwards not up unless they collude.
This year Nathan transferred $1 million to an irrevocable trust established for the benefit of his nephew. The trustee is directed to accumulate income for the next 5 years before distributing the trust corpus to Nathan's nephew. In past years Nathan has made taxable gifts of $6 million and used all unified credit. What is the amount of gift tax, if any, must Nathan remit in 2017? Ignore the annual exception amount of $15,000.
A) 159,500
B) 155,800
C) 155,450
D) Zero- there is a $10 Million exemption equivalent
Answer:
Zero- there is a $10 Million exemption equivalent ( d )
Explanation:
Annual exemption to be ignored = $15000
$1 million to an irrevocable trust
taxable gifts = $6 million
A) The amount of gift tax Nathan must remit in 2017 ignoring annual exemption
The gift tax must remit in 2017 is zero because there is a $10 million exemption because of the annual exception ( even if the annual exception is ignored ) and the lifetime benefits on taxable gifts that Nathan has is approximately $11.4 million, hence he wont be remitting any amount on gift tax in 2017
An article in BusinessWeek in 2013 reported that Fed Chairman Ben Bernanke testified to Congress that: "If we see continued improvement and we have confidence that that is going to be sustained, then we could-in the next few meetings-we could take a step down in our pace of purchases." According to the article, Bernanke also told Congress that '"premature tightening' could 'carry a substantial risk of slowing or ending the economic recovery."' Source: Nick Summers, "Confusion about the Fed Slowing Its $85 Billion in Monthly Bond Buying Is Roiling the Markets," Bloomberg BusinessWeek, June 10-16,2013. The purchases Fed Chairman Bernanke is referring to are a) purchases of foreclosed homes. b) open market purchases of commercial bonds. c) purchases of foreign currencies. d) open market purchases of government securities.
Answer:
(B)
Explanation:
First of all, the Fed Chairman Ben Bernanke is talking about the government's moves to boost the economy or bring it out from recession. If the government sees continued improvement in the economy, it will reduce its pace of purchases. In other words, it will reduce government spending or the rate at which it pumps money into the economy.
Premature tightening of government spending (reducing government spending before the time when the economy recovers) could carry a substantial risk of slowing or ending economic recovery.
The purchases that Fed Chairman Bernanke is referring to are open market purchases of commercial bonds.
In fiscal policy, Open Market Operations (O.M.O.) are indulged in, to adjust the state of the economy.
In this case, the government purchases commercial bonds (especially from private institutions/bodies) instead of government securities; because its aim is to get the economy (aggregate production) functioning and directly increase money supply in the economy.
To be considered unmarried on the last day of the tax year, a married person must meet which conditions:________
Answer and Explanation: The question refers to "married filing jointly" which is an income tax filing status available to any couple that has wed as of Dec. 31 of the tax year which is also the last day of the year. This type of filing offers numerous advantages, however, to be considered unmarried on the last day of the tax year, a married person must meet which conditions which include:
1. The couple having apart for the last six months of the tax year. This does not include temporary absences (business, school, military service, healthcare).
2. A condition where tax returns are filed separately.
3. Half the cost of keeping up your home during the tax year is paid by each spouse.
4. The main home of your child, stepchild, or foster child belongs to you for more than half of the tax year.
In any case, the married filing jointly is advantageous to couples that have a spouse who earns significantly more money than the other, allowing them to use only one tax return, even though both spouses are equally responsible for the return and any taxes and penalties owed.
Describe briefly what an automatic identification system (AIS) is and how service organization could use AIS to increase productivity and at the same time increase the variety of services offered. Please give specific real world examples.
Answer:
An automatic identification system (AIS) is an automated tracking device fitted to a vehicle or vessel to display objects around the vicinity of the vessel on a screen. This helps the driver of a vehicle, for instance, to identify such objects and know how to afford head-on collisions. For a ship, the signal sent to the VT station helps in monitoring movements around the ship.
Explanation:
Most ships are fitted with AIS to enable Vessel Tracking services. The AIS also shows the other ships that are around and transmits the information to the Vessel Tracking Station (VTS). Some modern cars are fitted with AIS to help the driver to identify obstructive objects. The identified signal is displayed on the dashboard of the car just as the maritime AIS displays on the ship's dashboard as it also transmits to the VTS.
Labor market equilibrium is best characterized by Group of answer choices a wage at which all workers are above the poverty level. a wage at which the number of people willing to work equals the number of workers firms are willing to hire. all workers receiving their ideal wage. a minimum wage at which everyone is willing to work. a wage at which all people have a job.
Answer:
a wage at which the number of people willing to work equals the number of workers firms are willing to hire
Explanation:
Labor market equilibrium is where the demand curve for labour interests the supply curve for labour. At this point, the wage rate is the wage at which the number of people willing to work equals the number of workers firms are willing to hire
Please check the attached image for a graph depicting equilibrium in the labour market
Answer:
A wage at which the number of people willing to work equals the number of workers firms are willing to hire.
May I have brainliest please? :)
What aspect of evaluating a supplier might be affected by meeting government standards?
A. Completeness of orders
B. Quality
C. Flexibility
D. Timeliness
Answer: Quality
Explanation:
The aspect of evaluating a supplier might be affected by meeting government standards us quality. Quality is the ability that a product has and out it stands out when compared to other similar products.
Government is always considered with the quality of a good or service in order to ensure that it's good for use and safe.
When valuing a preferred stock, the type of security that we treat the preferred stock like, for valuation purposes, is
Answer:
Perpetuity.
Explanation:
This is explained to be a type of annuity which is seen to be in position of receiving infinite amount of payments periodically. It is also tagged to be a financial instrument that is seen to pay consistently but periodically. In our world today, it is put to be the present value of a stream of cash that goes on, into the future, forever. In as much as cash payments are infinite, it’s possible to calculate their present total value because the value of each payment incrementally decreases with each year to the point that it approximates zero. Research has shown that in a lot of cases, economic analysts are seen to use this calculation to determine the value of stocks that pay fixed dividends, real estate that earns rent and annuity insurance products.
Sterling Morrow, a fashion brand known for casual dresses, is launching a new product line: Carry Tu, a line of women’s fashion bags. The Carry Tu line will include a satchel, an overnight bag, a laptop bag, and a card-holder keychain. The Carry Tu line will compete with Grazzi, a popular brand of bags.
The sale of women's bags has seen an uptick in recent years. Consumers are willing to spend discretionary money, if they see good value for the money.
As a junior marketing strategist, you must recommend to the marketing team the appropriate pricing strategies for each of Carry Tu's bags. The pricing strategies must allow you to make a profit while still competing successfully with Grazzi.
Required:
Determining the target market and selecting appropriate pricing strategies for each of the product items in Carry Tu's line of bags.
Answer with Explanation:
If the company desires Carry Tu product line to breakeven within first 8 months then my recommendation would be to target working class women. This is because working class women spend most of their earnings on fashion bags, clothing, shoes, satchel, makeup, overnight bags, cell phones, jewelry, etc. So if we are targeting a customer who has higher purchasing power then it is more likely that our quality product will breakeven very quickly. A working class women roughly owns 2-4 bags which means their is huge market for Carry Tu, especially in the case of working class women. Other items like overnight bags, satchel, card holder key-chains, laptop bags, etc will be adding value due to growing demand of quality products and shopping habits of working class women.
Satchel is usually used by both students and working class women, now again it will be one of the most value adding product among the Carry Tu product line.
Laptops bags are rarely used as the companies that sell their products has a laptop with bag in a package offering. So it will be less value adding item. Likewise card-holder key-chains are also rarely used by students and working class women.
Overall assessment shows that the best customer segment that the company must focus should be working class women.
Pricing Strategy for Carry Tu Line:
The pricing strategy of the company must be increasing sales oriented which would increase the demand of the product if the purchasing power of the customer is not much high. If the product is differentiated and quality oriented and also that the customer's purchasing power is high enough then the company must charge higher cost to reflect its brand and quality product.
The satchel is widely used by the students and working class women who work in small organizations, hence the company must follow penetration pricing strategy. This is the strategy that will help in covering the fixed cost by earning small contribution on each product. It will also increase the sales which means the total contribution will be enough to cover fixed cost of the organization. This pricing strategy is mostly followed to increase the market share and as in the case of Carry Tu, it is a new entrant in the market, hence pricing low would be helpful in developing customer relation and covering the fixed cost so that the company breakeven in first 8 months of operation.
Overnight bag and laptop bags are mostly used by the working class women who prefer differentiated and quality products. Which means that the product will be differentiated and quality product to compete with Grazzi. The company must follow Competitive pricing strategy so that the customer perceives similar value that Grazzi is offering in the market.
Card-holder key-chains are rarely purchased by working class hence it will also follow penetration pricing strategy to increase its sales and increase the total contribution earned on its sales.
The pricing strategy are based on the market condition of Carry Tu as it is a new entrant in the market and is based on Grazzi brand valued by customers.
In reality, most decisions fall between: A. recurring and unstructured decisions. B. recurring and nonrecurring decisions. C. structured and unstructured decisions. D. structured and nonrecurring decisions.
Answer: C. structured and unstructured decisions
Explanation:
In reality, most decisions fall between structured and unstructured decisions. It should be noted that for an unstructured decision, the decision maker had to give an evaluation and judgement into the definition of the problem.
Structured decisions are typically repetitive and therefore the decision makers can just use a particular procedure to handle them.
Which of the following individuals and groups are considered intermediaries in the healthcare industry?
A. government provided Medicare and Medicaid
B. home healthcare providers
C. health maintenance organizations
D. pharmaceutical companies
E. insurance companies
F. professional doctors' associations
Answer:
C. health maintenance organizations
Explanation:
Healthcare intermediaries organizations that form links between small-scale providers to interact with governments, patients and vendors. These organizations can perform key health systems functions which are typically more challenging for individual private providers to do on their own. An individual pays the health maintenance organisation in advance for medical care that he may require in the future and the organisation provides medical care to the individual when the need arises. These organisations are able to provide this care by paying doctors affiliated to them, and other healthcare providers who deliver care to the patients
♡
Which of the following does not represent a copyright?
O a photograph
o a sketched floor plan
O painting by the numbers
o choreographing a dance step by step
Answer:
I think the answer is a sketched floor plan
Answer:
d- because you are teaching it but you dont have full ownership of it because it is a dance that you can learn
Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, two-period lot-sizing method is used, what will be the quantity of the first planned receipt
Answer:
100 units
Explanation:
Given the following net requirement for component J:
60 units in week 2
40 units in week 3
60 units in week 5
Lot sizing involves determining the amount or quantity of items which needs to be ordered or produced. There are various lot sizing techniques. However, the fixed period requirements involves choosing a fixed number of period for determining the number of orders of each item to make. The net total number of units is then calculated, this gives the total quantity of planned receipt or requirement.
Hence, the quantity of the first planned receipt will be :
Units in week 3, then units in week 5 (2 - period interval)
Net total = (40 + 60) units = 100 units
An increase in a bond's yield to maturity results in a price decline that is ________ the price increase resulting from a decrease in yield of equal magnitude.
An increase in a bond's yield to maturity results in a price decline that is smaller than the price increase resulting from a decrease in the yield of equal magnitude.
What is the meaning of Bond?A bond is a borrower's guarantee to pay a creditor their principal amount plus, typically, interest on the loan. Governments, local governments, and businesses all issue bonds.
An IOU-like debt security is called a bond. Borrowers create bonds to get money from investors who are willing to lend to them for a set length of time. When you purchase a bond, you are making a loan to the issuer, which could be a corporate, government, or municipal entity.
Savings bonds, agency bonds, municipal bonds, corporate bonds, and treasuries are some examples of bonds. Treasury bonds, which are the safest but have the lowest interest rates, are typically sold at auction.
The category of investments known simply as "fixed-income securities" includes bonds. Because they are debt obligations, the investor lends a specific sum of money (the principal) to an organization or government for a defined period in exchange for a time recorded of interest payments (the yield).
Learn more about the bond here:
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Instructions: Please answer questions A-D below. I can't award credit if A-D isn't answered completely.
Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next eight years. The company uses a discount rate of 12 percent.
A. What is the payback period?
B. What is the NPV for this project ?
C. What is the IRR?
D. Based on the results give a suggestion to Primas Corp?
Answer:
A, 3.8 years
b NPV = $2,189,324.56
c. IRR = 20.33%
d. Primas Corp can carry out the conversion because it would be profitable all other things being equal
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = amount invested / cash flow = $7,125,000 / $1,875,000 = 3.8 years
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
NPV and IRR can be calculated using a financial calculator
Cash flow in year 0 = $-7,125,000
Cash flow each year from year 1 to 8 = $1,875,000
I = 12%
NPV = $2,189,324.56
IRR = 20.33%
D.the NPV is positive and the IRR exceeds the discount rate so the project is profitable and the company should undertake the project
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
What is a disadvantage of magazine advertising? It lacks flexibility in readership and advertising. It lacks immediacy that advertisers can get with newspapers or radio. It lacks authority and believability that enhances the commercial message. It lacks the permanence that gives a reader time to appraise ads in detail. It is unable to lend prestige to the products being advertised.
Answer:
The answer is: It lacks immediacy that advertisers can get with newspapers or radio.
Explanation:
One of the disadvantages of running an advertisement in a magazine is that it lacks the immediacy that advertisers can get with newspapers or the radio.
Because a magazine is a publication that, unlike a newspaper that is published daily, the magazine is published periodically, which can cause the lack of immediacy that an advertisement would have if it were published in a newspaper or radio for example.
As there is currently a very intense flow of information, depending on the type of product or service to be announced, the immediacy for publication may be more advantageous, as the market is very competitive.
On January 31, 2016, Charlie Company paid employees $6,500 for January wages earned. Prepare the general journal entry (without explanation) needed. If no entry is required then write "No Entry Required."
Answer:
Jan, 31
DR Wages and Salaries Expense ..................................... $6,500
CR Cash .............................................................................................$6,500
( To record wages paid to employees)
Wages are expenses and so are debited when they increase.
Cash was used to pay the wages therefore it decreased and as an asset it is to be credited when it decreases.
At the end of the day, the cash register's record shows $1,252, but the count of cash in the cash register is $1,246. The correct entry to record the cash sales is:_______
a. Debit Cash $1,264; credit Cash Over and Short $1,252; credit Sales $12.
b. Debit Cash $1,252; debit Cash Over and Short $12; credit Sales $1,264.
c. Debit Cash Over and Short $12, credit Sales $12.
d. Debit Cash $1,252; Credit Sales $1,252.
e. Debit Cash $1,264; credit Sales $1,264.
Answer:
Debit cash $1,246
Dr Cash over short $6
Credit sales $1,252
Explanation:
Based on the information we were told that
the cash register's record shows the amount of $1,252 while the count of cash of the cash register was the amount of $1,246 which means that correct entry to record the cash sales is:
Debit cash $1,246
Dr Cash over short $6
($1,252-$1,246)
Credit sales $1,252