Bad Boys, Inc. is evaluating its cost of capital. Under consultation, Bad Boys, Inc. expects to issue new debt at par with a coupon rate of 8% and to issue new preferred stock with a $2.50 per share dividend at $25 a share. The common stock of Bad Boys, Inc. is currently selling for $20.00 a share. Bad Boys, Inc. expects to pay a dividend of $1.50 per share next year. An equity analyst foresees a growth in dividends at a rate of 5% per year. The Bad Boys, Inc. marginal tax rate is 35%. If Bad Boys, Inc. raises capital using 45% debt, 5% preferred stock, and 50% common stock, what is Bad Boys, Inc.’s cost of capital?

Answer:

The employer is not right

Explanation:

An at-will employment under US law allows an employer to terminate any an at will -without having to state any reason for the same. The employee will have to leave his position in the company at once.

There is, however, an exception to this law. At-will employees can be fired under any circumstances but not for illegal reasons. If employer is terminating an employee based on illegal reasons such as discrimination based on color or race, or for reporting illegal activity carried out by the company, the employee can sue the employer.

In this case, Megan was terminated as she refused to falsify government reports. It is an illegal activity and she cannot be terminated stating that she was an at-will employee.

So, Megan can sue the employer for wrongful discharge and employer was not right on his part.

An employer cannot claim that an at-will employee has no legal right to sue for wrongful discharge if the employee was fired for refusing to engage in illegal activities. The employer's actions would violate the employee's rights under Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, religion, sex, or national origin.

An employer cannot claim that an at-will employee has no legal right to sue for wrongful discharge if the employee was fired for refusing to engage in illegal activities, such as falsifying government reports. The employer's actions would violate the employee's rights under Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, religion, sex, or national origin. Firing an employee for refusing to participate in illegal activities is considered a violation of public policy, even for at-will employees.

In the case of Megan, if she was fired for refusing to falsify government reports, she may have grounds to sue for wrongful discharge. The employer's claim that Megan had no legal right to claim liability for damages is not valid in this situation. Megan can argue that her termination was a violation of public policy, and she should be able to seek legal action.

https://brainly.com/question/32464438

#SPJ11

Answer: An agreement between two teams who are not working together

Explanation: A teaming agreement refers to the agreement made by two or more individual corporations to work together.

Usually these agreement are made by the leading entities of an industry to bid on Government contract, so that there will be less competition and everyone gets the fair share in profit.

Such agreements are considered totally legal so the companies do not need to keep it in any secrecy.

Hence from the above we can conclude that statement 4 is correct.

A teaming agreement is a formal contract made between two or more organizations who agree to combine their resources and capabilities to work together on a specific project, usually one that is contract-based. These agreements provide various benefits like accessing broader markets, sharing of skills, and reducing costs and risks. The terms of the agreement define the relationship and responsibilities of the parties involved.

A Teaming Agreement is a formal contract between two or more organizations who agree to work together on a specific project, often one that is contract-based. It's often used in industries like government contracting, where companies with complementary capabilities can combine their resources to bid on larger projects. These agreements are designed to create synergies and shared benefits, such as accessing broader markets, sharing resources and skills, and reducing risk and cost.

Typically, one company acts as the principal or lead and the others as team members, and each member contributes different skills or capabilities, aligned to the overall objective of the project. The terms and conditions of the teaming agreement will define the relationship between the parties, including their duties and responsibilities, the sharing of profits and losses, the handling of confidential information, and various other project-specific parameters. It's not intended to force parties to work together, or to be secretive agreements, but are open and clear contracts that enable beneficial partnerships.

https://brainly.com/question/4798242

#SPJ3

Answer:

If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at an efficient point.

Explanation:

As when an economy is at an efficient point then, the economy will tend to indulge in producing the commodity in which it has an absolute advantage and thus, will later on trade in order to be better off.

In the given instance, the economy is efficient and since the nature of both the goods guns and butter are completely different, thus the economy will produce more of any single product to gain competitive advantage in that product.

Thus, efficient economy also cannot produce both the goods.

Final answer:

The false statement is that more of both goods can be produced if the economy is currently operating at an efficient point on the PPF. To produce more of both goods, economic growth must occur, or the economy must be operating at an inefficient point inside the PPF.

Explanation:

The false statement is: "If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at an efficient point." In economic terms, this is represented by the production possibilities frontier (PPF). The PPF shows the maximum possible output that an economy can produce given its resources and technology. When an economy is operating on the PPF, it is considered to be operating efficiently. Producing more of one good on the PPF would require the production of less of the other good due to the trade-offs involved, assuming the available resources are fully utilized.

Economic growth can shift the PPF outward, allowing the production of more of both goods. Productive efficiency is achieved when goods are produced at the lowest resource cost, or when marginal cost equals average total cost. An economy operating at an inefficient point, inside the PPF, can indeed increase production of both goods without trade-offs until it reaches the frontier. Finally, increased production capabilities such as through technological advancements can lead to an outward shift of the PPF, where more of both goods can be produced at a new, more efficient point.

Answer: Purchase stage

Explanation: This is the second last stage in the buying process. Until this stage the customer must have decided to make the purchase. However it is not guaranteed that the customer will do it as any small issue could lead to change in mind.

In the given case, Sandra is giving additional services as the customers on her sight decides to purchase the book but cancels the order after.

Thus, from the above we can conclude that the given case relates to the purchase stage.

Answer:

The new breakeven point in tickets is 8,600 and in sales dollars $619,200

Explanation:

BP=FC/CM

BP= breakeven point

FC=fixed cost

CM=contribution margin

8,600=464,400/(72-18)

8,600*72= $619,200

Answer:

BEPd 619,200‬

BEPu    8,600

Explanation:

1) sales price at 72:

[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]

contribution per unit

72 - 18 = 54

[tex]\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio[/tex]

54 / 72 = 75%

[tex]\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}[/tex]

464,400 / 0.75 = 619,200‬

in units: sales to break even 619,200 / 72 unit sales price = 8.600‬

Answer:

Inventory balance will be of 73,318

Explanation:

Inventory                     75,400

     Account payable                75,400

to record goods received

Account payable           1,300

           Inventory                          1,300

to record return of goods

Inventory                          700

            Cash                                  700

to record payment of freight

Account Payable        74,100

            Inventory                         1,482

            Cash                              72,618

to record payment of invoice within discount period

75,400 - 1,300 = 74,100

74,100 x 2% = 1,482

Inventory balance:

  DEBIT         CREDIT

 75,400

                       1,300

      700

                       1,482

balance:

  73,318

Answer:

(i) Q=300

(ii) Elasticity of Demand=-3.33 (elastic)

(iii) Income Elasticity= 2.5 (normal good)

(iv) Advertising Elasticity: 1.5

Explanation:

The Demand function is given by

[tex]Q=100-5P+5I+15A[/tex]

(1) To solve (i) we need to replace P = 200, I = 150, and A = 30 in the demand equation:

[tex]Q=100-5(200)+5(150)+15(30)=300[/tex]

(2) To find the price elasticity (how much quantity demanded changes with price) we use the point price elasticity formula

[tex]\eta_{Price}=\frac{\Delta Q}{\Delta P}\frac{P}{Q}[/tex]

From the above equation we get: [tex]\frac{\Delta Q}{\Delta P}=-5[/tex]

Replacing in the elasticity formula

[tex]\eta_{Price}=-5\frac{200}{300}=|-3.33|>1[/tex]

in absolute terms the elasticity is bigger than one so it is an elastic demand.

(3) For income elasticity (how much quantity demanded changes with income), we proceed similarly as above. But the derivative is respect to income

[tex]\eta_{Income}=\frac{\Delta Q}{\Delta I}\frac{I}{Q}=5\frac{150}{300}=2.5>1[/tex][/tex]

Which is bigger than one, denoting this is a normal good because it's bigger than one.

(4) Advertising elasticity (how much quantity demanded changes with expenditures in advertising), we proceed as before

[tex]\eta_{advertising}=\frac{\Delta Q}{\Delta A}\frac{A}{Q}=15\frac{30}{300}=1.5[/tex]

Answer:

A. $17,000 $21,000 $7,000

Explanation:

From the income, we will subtract the salaries and interest, this will give us the amount to distribute among the partner

net income            45,000

salaries                 (60,000)  (20,000 + 25,000 + 15,000)

interest                 (15, 000)  (60,000 + 50,000 + 40,000) x 10%

net loss                (30,000)

Each partner will receive his salary and capital interest, and proportion of the remainder

Allocate to S

20,000 + 6,000 - 9,000 = 17,000

Allocate to R

25,000 + 5,000 - 9,000 = 21,000

Allocate to T

15,000 + 4,000 - 12,000 =   7,000

Final answer:

The question discusses various accounting entries, including depreciation of equipment, which is calculated using the straight-line method for a $160,000 equipment with a 5-year life and no residual value, giving a yearly depreciation of $32,000 and a book value of $128,000 at year-end.

Explanation:

The question involves various aspects of business accounting, including interest expense and revenue, advance payments, salary expenses, supply costs, and depreciation of equipment. Each part requires a specific accounting treatment to reflect the true financial position of the business at year-end. We will specifically discuss the depreciation of equipment as part of our example.

Depreciation of Equipment

For the equipment purchased at the beginning of the year with a cost of $160,000 and a useful life of five years with no residual value, the annual depreciation expense would be calculated using the straight-line method. This method evenly spreads the cost of the asset over its useful life. Thus, the annual depreciation expense is $32,000 ($160,000 / 5 years). The book value of the equipment at the end of the year would be $128,000 ($160,000 - $32,000).

Key Takeaways

It is crucial to record depreciation to reflect the usage and the reduced value of assets over time.

Accurate record-keeping ensures that financial statements present a true view of the company's financial health.

Understanding such basic principles is foundational for anyone studying business or accounting.

Answer:

The correct answer is $480.

Explanation:

Real GDP is the value of economic output calculated in an economy in a year. It is an inflation-adjusted measure. IT calculates growth in GDP on the basis of base year price. So, the change in price is not included and only change in output is included.  

The price of green pepper in the base year was $2. The price of red pepper was $3.

Real GDP

= 150 × $2 + 60 × $3

= $300 + $180

= $480

The real GDP in the current year is $480.

The real GDP for the current year, calculated using last year's prices as a base year, is $480, which comprises $300 from 150 green peppers and $180 from 60 red peppers.

To calculate the real GDP for the current year using the prices of the base year, we multiply the quantities of goods produced in the current year by their respective prices in the base year.

Using the base year prices to value this year's production:

The sum of these values gives us the real GDP for the current year:

Real GDP = $300 (green peppers) + $180 (red peppers) = $480

Answer:

the Merchandise Inventory will be credited by $3200

Explanation:

given data

Retail  inventory = 800 units

recorded cost = $13

replacement cost = $ 9 per unit

selling price charged = $15

to find out

the Merchandise Inventory will be

solution

we know here market  is equal to current replacement cost that is $9

and here we can say

market is here less than cost

so inventory will be valued at Market

so we find

down in inventory is = 800 × ( 13 - 9 )

down in inventory is = 3200

so the Merchandise Inventory will be credited by $3200

Answer:

2013 Equity: 298,000

2014 Equity: 327,000

Explanation:

(A)

Assets = Liabilities + Equity

395,000 = 97,000 + Equity

395,000 - 97,000 = Equity

298,000 =  Equity

(B)

if asset increase by 65,000

and liabilities increase by 36,000

(395,000 + 65,000)  = (97,000 + 36,000) + Equity

460,000 = 133,000 + Equity

Equity = 460,000 - 133,000 = 327,000

Answer: $7,960

Explanation:

Given that,

Beginning WIP Inventory balance = 5,600

Completed and transferred out = 50,010

Direct materials = 21,800

Direct labor = 16,400

Overhead = 11,000

Ending Balance = 4,790

Started and completed units cost = $42,050

Therefore,

Cost of completing the units in the beginning WIP inventory:

= Completed and transferred out - Cost of Started and completed units

= $50,010 - $42,050

= $7,960

Answer:

The cost of completing the units in the beginning Work in Process inventory is $7,960

Explanation:

The computation of the beginning Work in Process inventory is shown below:

= Cost of Completed and transferred out  - started and completed units cost

= $50,010 - $42,050

= $7,960

All other information which is mentioned in the question is not relevant. Hence, it is not to be considered in the computation part.  

Since we have to compute the completing units so we considered the above two things only.

Answer:

Total period cost= $23600

Explanation:

Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business. Period costs are not attached to one particular product or the cost of inventory like product costs.

In this exercise:

Period costs:

Office support salaries of $5,200

Advertising expense of $3,800

Office expense of $14,600

Total period cost= $23600

Answer:

Explanation:

Before preparing the income statement, first, we have to compute the net income or net loss. So, the calculation is shown below:

In the simplest form, the net income = Total revenue - total expenses

= Ticket Revenue - aircraft fuel expense - income tax expense - interest expense - Repairs and Maintenance Expense - Salaries and Wages Expense - Landing Fees Expense

= $21,100 - $9,500 - $270 - $210 - $2,000 - $3,400 - $3,900

= $1,820

The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:

Final answer:

National Airways, Inc. reported a net income of $1,820 million for the year ended December 31, 2017, calculated by subtracting total expenses ($19,280 million) from total revenues ($21,100 million).

Explanation:

Income Statement for National Airways, Inc.

The income statement for National Airways, Inc. for the year ended December 31, 2017, is a financial document that summarizes the company's revenues and expenses during the year. Below is the detailed calculation based on the provided figures:

Revenues:

Ticket Revenues: $21,100 million

Expenses:

Aircraft Fuel Expense: $9,500 million

Landing Fees Expense: $3,900 million

Salaries and Wages Expense: $3,400 million

Repairs and Maintenance Expense: $2,000 million

Income Tax Expense: $270 million

Interest Expense: $210 million

Total Expenses: $19,280 million

Net Income: (Revenues - Total Expenses) = $21,100 million - $19,280 million = $1,820 million

To summarize, all the revenue and expense items are accounted for to arrive at the net income for the year. National Airways, Inc. has reported a net income of $1,820 million for the fiscal year 2017. The calculation is straightforward, subtracting total expenses from total revenues to determine net income.

Answer:

BEP units:   15,000 60-pounds bags

(B)

14,000 generates     6,000 loss

35,000 generates 120,000 net

(C) operating leverage: 2

(D) financial leverage: 1.63

(E) combined leverage: 3,26

Explanation:

[tex]\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio[/tex]

[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]

60 pounds sales price    =   $  15

60 pound cost: 60 x 0.15 =  $   9

Contribution Margin 6

[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]

Fixed Cost 90,000

BEP units:   15,000

(B) profit at given level:

sales x margin - fixed cost = net profit

14,000 x 6 - 90,000  =  (6,000)

35,000 x 6 - 90,000 = 120,000

(C) operating leverage: change in EBIT / change in sales

income at 21,000 x 6 - 90,000 = 36,000

EBIT change:

120,000/36,000 = 3 + 1/3

Slaes change:

35,000/21,000 = 1 + 2/3

operating leverage:

(3 + 1/3) / (1 + 2/3) = 2

(d) financial leverage

change in net income:

(120,000 - 17,000) / (36,000 - 17,000)

103,000 / 19,000 = 103/19

change in EBIT 3 + 1/3 (already calculate

(103/19) / (3+1/3) = 1.626315789

(E) combined

2 x 1.626315789 = 3,252631578‬

Final answer:

The break-even point for Healthy Foods Inc. is 15,000 bags. EBIT is a loss of $4,000 at 14,000 bags and a profit of $120,000 at 35,000 bags. Degree of operating leverage and degree of financial leverage, as well as the degree of combined leverage, can be calculated at different quantities of bags sold, incorporating the fixed costs and interest expenses accordingly.

Explanation:

To calculate the break-even point in bags for Healthy Foods Inc., we first need to determine the contribution margin per bag. Since the variable cost is $0.15 per pound and each bag is 60 pounds, the variable cost per bag is 60 * $0.15 = $9. Therefore, the contribution margin per bag is the selling price per bag minus the variable cost per bag, which is $15 - $9 = $6 per bag. The break-even point in bags can then be calculated by dividing the total fixed costs by the contribution margin per bag, i.e., $90,000 / $6 = 15,000 bags.

For EBIT calculations, we can determine the profit or loss by multiplying the number of bags sold by the contribution margin per bag, and then subtracting the fixed costs. At 14,000 bags, EBIT is (14,000 * $6) - $90,000 = -$4,000, indicating a loss. At 35,000 bags, EBIT is (35,000 * $6) - $90,000 = $120,000, which is a profit.

The degree of operating leverage (DOL) can be calculated as Q * (P - V) / (Q * (P - V) - F), where Q is the quantity sold, P is the price per unit, V is the variable cost per unit, and F is the fixed costs. At 21,000 bags, DOL is 21,000 * ($15 - $9) / (21,000 * ($15 - $9) - $90,000). At 35,000 bags, the calculation would be similar with the respective quantities.

For the degree of financial leverage (DFL), we include the interest expense in the calculations. DFL is calculated as EBIT / (EBIT - interest expenses), so for 21,000 and 35,000 bags sold, we would calculate it using the previously found EBIT values and subtract the annual interest expense of $17,000.

Finally, the degree of combined leverage (DCL) is the product of DOL and DFL, which shows the combined effect of operating and financial leverage on earnings per share, calculated for both 21,000 and 35,000 bags, rounding to two decimal places.

Answer:

import, subtract. export, added

Explanation:

The GDP equation is given by  GDP = C + I + G + (X – M) where C is consumption, I investment, G is government expenditures and M are imports.

Since the bottle of wine was produced in France it had to be imported to Honduras to be consumed, imports enters the GDP equation with a minus sign. This implies imports are subtracted from the GDP equation. For a box of Honduras cigars to be consumed in Canada they had to be exported there, so these are counted as exports with enter the GDP equation with a plus sign. So exports are added.

Final answer:

A purchase of a French bottle of wine by a resident of Honduras is an import and subtracts from Honduran GDP, while a purchase of a box of cigars made in Honduras and sold in Canada is an export and adds to Honduran GDP. The formula for GDP is C + I + G + (X - M), where C is Consumption, I is Investment, G is Government Purchases, X is exports, and M is imports.

Explanation:

A purchase of a French bottle of wine by a resident of Honduras would be considered an import when counting GDP in Honduras. As a result, this purchase would be subtracting from Honduran GDP. A purchase of a box of cigars made in Honduras and sold in Canada would be considered an export for Honduran GDP, which would be adding to Honduran GDP.

GDP calculation is based on adding consumption, private investment, government purchases, and net exports (exports minus imports). In the case of the French wine being an import, it would not add to the country's GDP because it is not produced within Honduras. Conversely, the box of cigars, being an export, represents production within the country and therefore contributes to the nation's GDP.

Following the formula for GDP: GDP = C + I + G + (X - M) where:

For the example given in the self-check question, Country A's GDP would be calculated as follows:

GDP = Consumption ($2,000 billion) + Investment ($50 billion) + Government Purchases ($1,000 billion) + eXports ($20 billion) - iMports ($40 billion) = $3,030 billion.

Answer: Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government.

Explanation: Automatic stabilizers refers to those factors which comes into act automatically when the economy faces any kinds of problems. Usually these includes the tax and transfer systems in the economy that affects the demand and supply of the commodities.

These factors comes into force without the direct intervention of the government.

Hence from the above we can conclude that the correct option is first statement.

Automatic stabilizers are mechanisms in the economy that automatically adjust government spending and taxes based on economic conditions. During recessions, they boost aggregate demand, and during expansions, they reduce aggregate demand. They act as shock absorbers, reducing the impact of economic bumps.

Automatic stabilizers are a part of fiscal policy in the economy. They are built-in mechanisms that automatically adjust government spending and taxes based on the state of the economy, without requiring any specific action from the government. These stabilizers work to stabilize the economy during economic fluctuations. For example, during a recession, automatic stabilizers increase government spending and reduce taxes, thereby boosting aggregate demand. Conversely, during an economic expansion, they decrease government spending and increase taxes, which helps to reduce aggregate demand. Automatic stabilizers act like shock absorbers in a car, reducing the impact of economic bumps, although they don't eliminate them completely.

https://brainly.com/question/34561785

#SPJ6

Answer:

Option C)

Explanation:

The theory of semi-strong form or structure of efficient market is a sort of  holds that security costs alter rapidly to recently accessible data, in this way wiping out the utilization of key or specialized examination to accomplishing a better yield.

Since, under the semi-solid type of the efficient market, all open data is limited in current costs.

Thus its too late for an investor responding immediately to a news flashing on the television to make exceptional gain.

Answer: the steady-state amount of investment can be thought of as a break-even amount of investment because: the quantity of investment just equals the amount of: "B) capital needed to replace depreciated capital and to equip new workers."

Explanation: According to the Solow growth model an economy is in a steady state when it makes the most efficient use of its resources. That is, the state in which the saving or investment is equal to the depreciation of capital.

Answer:

unit beggining WIP                         0

Units started and completed 31,000

Ending inventory                       4,100

Total physical units                 35,100

Equivalent units (materials)

Units started and completed 31,000

WIP materials (4,100 x 100%)    4,100

Total units accounted for        35,100

Equivalent units (conversion)

Units started and completed 31,000

WIP materials (4,100 x 40%)     1,640

Total units accounted for        32.640‬

Cost Incurred during March:

35, 100 x 4  =     140,400

32,640 x 13 =  1,044,480

Total cost        1, 184,880

Cost assigned to units transferred out

31,000 x (4 + 13) = 527,000‬

Cost of WIP

4,100 x  4 = 16.400‬

1,640 x 13 = 21,320‬

Total            37,720‬

Explanation:

We need to do the count of physical units

we need to calcualte the equivalent units:

transferred + ending x completion percentage

then the cost incurred

and allocate cost to finished goods and the ending WIP based on the equivalent units of materials and conversion

Final answer:

To prepare the production cost report for Pix Company, we calculate equivalent units for materials and conversion costs, then assign total costs using these calculations, which matches the provided total costs of $564,720.

Explanation:

The question involves preparing the cost section of a production cost report for Pix Company using the FIFO method for the month of March. The data includes units started and completed, the ending work in process units and their completion percentages, and the costs for materials and conversion. Using the provided unit costs for materials ($4) and conversion ($13), we calculate the equivalent units for both materials and conversion under the FIFO method. Since all ending work in process units are 100% complete for materials, equivalent units for materials are the same as the physical units. For conversion, the equivalent units are based on the completion percentage. The total costs are then assigned based on these calculations.

To calculate the cost for materials: 31,000 units completed + 4,100 units in ending WIP at 100% = 35,100 equivalent units. Materials cost: 35,100 units x $4/unit = $140,400.

For conversion costs: 31,000 units (from units completed) + (4,100 units in ending WIP x 40% completion for conversion) = 32,640 equivalent units. Conversion cost: 32,640 units x $13/unit = $424,320.

Total costs to be assigned = Materials cost + Conversion cost = $140,400 + $424,320 = $564,720, matching the total costs provided in the question.

Answer:

Ans. The best choice is:

A) An annuity that pays $1, 000 at the beginning of each year (PV=$6,759.02 with a discount rate of 10% annual)

Explanation:

Hi, well, I think that the best way of explaing is by discussing  each option. In order to be alot more clear in the emplanation, let´s consider a 10% annual discount rate for all cases:

(A) $1, 000 at the beginning of each year, for 10 years

This is pretty straight forward, but please consider this, one of the payments is made in the present, therefore, when calculating the present value of the annuity, do not use 10 periods, use 9 and add 1000 to this calculation, everything should look like this.

[tex]PV=1000+\frac{1000((1+0.1)^{9}-1) }{0.1(1+0.1)^{9} } =6759.02[/tex]

(B) $1, 000 at the end of each year, for 10 years

We do the same as we did in A), but this time, we count 10 annuities and we don´t add 1000 at the beginning. Everything should look like this.

[tex]PV=\frac{1000((1+0.1)^{10}-1) }{0.1(1+0.1)^{10} } =6144.57[/tex]

(C)  $500 at the end of every six months, for 20 semesters

This option requires that we transform the rate (10% Effective annual) into semi-annual terms. That is as follows.

[tex]r(Semi-annual)=(1+r(Annual))^{\frac{1}{2} } -1[/tex]

Therefore

[tex]r(Semi-annual)=(1+0.1))^{\frac{1}{2} } -1=0.0488[/tex]

Now, this is our discount rate, the one we need to use if the payments are made every six months. Let´s see how the math to this should look like.

[tex]PV=\frac{500((1+0.0488)^{20}-1) }{0.0488(1+0.0488)^{20} } =6294.52[/tex]

(D) $500 at the beginning of every six months, for 20 semesters (10 years)

We need to use the discount rate of C) (4.88% semi-annual), but the process is just like in A)

[tex]PV=500+\frac{500((1+0.0488)^{19}-1) }{0.0488(1+0.0488)^{19} } =6601.75[/tex]

Best of Luck.

Answer:

4.39%

Explanation:

Using DuPont equation in computing for ROE enables further analysis of the company's strengths and weaknesses. By using this equation, ROE is segregated into different drivers of ROE that focus on key metrics of financial performance. These metrics focus on operational efficiency (Net Profit margin), asset use efficiency (Total Asset Turnover) and financial leverage (Equity or Financial Multiplier). Further, this provides information that will be used by the company in its planning activities.

Answer:

A)$15,000

Explanation:

jones   100,000

king    200,000

lane   300,000  

Total   600,000

Assuming profit are distributed based on capital investment, jones will receive:

100,000/600,000 = 1/6 of the profit

proft x jones ratio = allocate income to Jones

90,000 x 1/6 = 15,000

This will be the amount of profit attributable to Jones.

Answer:

(A)Fv= $864.2

(B) Fv= $1302.05

(C) Fv=  $2003.4

(D) Fv= $96817.21

Explanation:

Giving the following information:

Initial investment= $550

We will use the final value formula:

FV=Present value*(1+i)^n

(A) 9% compounded annually for 5 years.

Fv= 550*(1.09)^5=$864.2

(B) 9% compounded semiannually for 5 years.

Fv= 550*(1.09)^10= $1302.05

(C) 9% compounded quarterly for 5 years.

Fv= 550*(1.09)^15= $2003.4

(D) 9% compounded monthly for 5 years.

Fv= 550*(1.09)^60=$96817.21

Answer:

Ans. the realized yield is 0.7749% APR semi-annual compounding

Explanation:

Hello, first we need to find the exact amount paid for this bond, you can find this by finding the coupon that it pays every 6 months and transforming the effective annual rate of the YTM into semi-annual effective rate. All this as follows.

[tex]Coupon=FaceValue*\frac{AnnualCouponRate}{2}=1000*\frac{0.08}{2}=40[/tex]

[tex]YTM(SemiAnnual)=(1+YTM(annual))^{\frac{1}{2} } -1=(1+0.06)^{\frac{1}{2} } -1=0.0296[/tex]

Ok, so far, our semi annual coupon is $40 and our semi-annual YTM is 2.96%. Now. we are ready to find the price paid for the bond.

[tex]Price=\frac{Coupon((1+YTM)^{n-1}-1) }{YTM(1+YTM)^{n-1} } +\frac{(FaceValue+Coupon)}{(1+YTM)^{n} }[/tex]}

[tex]Price=\frac{40((1+0.0296)^{19}-1) }{40(1+0.0296)^{19} } +\frac{(1000+40)}{(1+0.0296)^{20} } =1155.91[/tex]

4 bonds were received and placed in a money market account earning a 4% compounded monthly rate, in order to make things more simple, let´s convert this into a semi-annual effective rate, since the bonds are paid every 6 months. Like this.

[tex]r(semi-annual)=(1+\frac{0.04}{12} )^{6} -1=0.020167[/tex]

Since you received 4 coupons, we have to find the future value of this 4 coupons, that is:

[tex]FV(Coupons)=40(1+0.020167)^{3}+ 40(1+0.020167)^{2}+40(1+0.020167)^{1}+40[/tex]}

[tex]FV(Coupons)=164.91[/tex]

The selling price of the bond, given the new YTM=8% is:

[tex]Price=\frac{40((1+0.03923)^{15}-1) }{40(1+0.03923)^{15} } +\frac{(1000+40)}{(1+0.03923)^{16} } =1009.02[/tex]

Adding both values (sell price of the bond and future values of the coupons) we get the money inflow, what we will call from here FV. The persent value is the money you first paid for the bond.

And then we find the rate of return of all this transactions by using this formula.

[tex]\sqrt[2]{\frac{FV}{PV} }-1=r[/tex][tex]\sqrt[2]{\frac{(1009.02+164.91}{1155.91} }-1=r =0.0077638[/tex]

The return of this invesment is 0.77638% effective annually, but we need it to have a semi-annual compounding, so first, we need to turn this effective annual rate into an effective semi annual rate and them, multiply by 2. this is the math of all this.

[tex]EffectiveSemi-annnual=(1+0.0077638)^{\frac{1}{2} } -1=0.0038744[/tex]

[tex]APR(SemiAnnualComp)=0.0038744*2=0.007749[/tex]

APR(SemiAnnualComp)= 0.7749%

Best of luck.

Answer:

Investment on Slender    51,000

Goodwill                             9,000

fees expense                     4,000

            Cash                                  64,000

Explanation:

fair value of Slender:

71,000 - 20,000 = 51,000

purchase price      60,000

goodwil                   9,000

finder's fees           4,000

It will recognize the goodwill for Slender

it will pay the finder's and recognize them as expense

The total cash will be 60,000 to aquire Slender and the 4,000 finder's expense

Answer:

The amount of Tatoo's capital loss carryover remaining after it applies the carryback is $ 5200.

Explanation:

The net capital loss will be set off as :

2016 : $ 4800  

2017 : $ 3500

Net carryback = $ 13500 - $ 4800 - $ 3500

                        = $ 5200

Therefore, the amount of Tatoo's capital loss carryover remaining after it applies the carryback is $ 5200.

Final answer:

The missing Cash account balance is calculated using the accounting equation Assets = Liabilities + Shareholders' Equity. Given the account balances, Cash is found to be $25,000.

Explanation:

The student has provided account balances for various items and is seeking to find the correct balance of the Cash account of a fictitious entity. To find the missing Cash account balance, you need to apply the basic accounting equation which states that Assets = Liabilities + Shareholders' Equity.

Here's the step-by-step calculation using the given account balances:

Sum of given Assets (excluding Cash) = Accounts Receivable ($5,000) + Supplies ($12,000) + Equipment ($18,000) = $35,000.

Total Liabilities = Accounts Payable ($17,000).

Shareholders' Equity = $43,000.

Subtracting the sum of Liabilities and Shareholders' Equity from the sum of Assets, we get the balance of the Cash account:

Cash = Total Assets - (Total Liabilities + Shareholders' Equity).

Inserting the given figures:

Cash = (Accounts Receivable + Supplies + Equipment + Cash) - (Accounts Payable + Shareholders' Equity)

Cash = ($35,000 + Cash) - ($17,000 + $43,000)

Cash = $35,000 + Cash - $60,000

Cash = Cash - $25,000

To isolate the value of Cash, we move all terms containing 'Cash' to one side:

Cash - Cash = -$25,000

Therefore, the balance in the Cash account should be $25,000.

Answer:

It cost him 640,617 dollars

Explanation:

as the first payment start today we will calculate the present value for an annuity-due of 57,000 for 20 years discounted at 5.25%

[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]

C 52,500

time 20

rate 0.0525

[tex]52500 \times \frac{1-(1+0.0525)^{-20} }{0.0525} = PV\\[/tex]

PV $640,617