Answer:
American feel their democracy is the best based on his uniqueness and authenticity with respect to political institution, parties and interest groups.
The house of congress will not be the same if there is only on single chamber for a common ground for discussion and the coming together of legislative in one chamber
In the legislative house, there consist of both the upper and lower houses, who makes laws and institutes the constitutional execution for the benefit of the nation.
Explanation:
American Politics in Comparative Perspective: American have the believe that their democracy is the best in terms of uniqueness and authenticity than other countries of the world. with this they feel they have put a tremendous amount of work for their democracy to be the best in the world. The people of America thinks in regarding the areas of political institution, culture, interest group, political parties it is unique.
In the Legislative house, there are two houses which are, the upper legislative house and the lower legislative house.
The Congress would not be the same if only there is a single chamber that will have a common ground for discussion and the assembly of the legislative will be put in the single chamber only. the two l houses of legislation have a different methods to meet the compliance of the constitution. If the single chamber is available, then there will be an approach common for all the legislative processes and legislature will be taken away from the single chamber only.
Under an institutional configuration losers will be with the winners in the house and they will implement the constitutional drives in the house and make sure the nation meets its constitutional implementation for benefit of the nation
A single-chamber Congress would facilitate faster decision-making, benefiting the political majority. However, it could also lead to unchecked legislation and disadvantage minority interest groups due to a reduced system of checks and balances.
Explanation:If the Congress only consisted of a single chamber, meaning a unicameral system, the legislative process can become faster and more efficient as the entire institution would operate unilaterally. This configuration might streamline decision-making and eliminate inter-chamber disagreements which can slow down legislation. However, this framework could also reduce the checks and balances principle inherent in a bicameral system, potentially leading to more unchecked or unbalanced legislation.
The 'winners' in this case could be the political majority or the party in control of the legislature, as they would gain the ability to pass laws more quickly with fewer roadblocks. 'Losers,' on the other hand, could be the political minority or smaller interest groups. Such groups would have less opportunity to influence legislation because their ideas would be less likely to be considered with the absence of a second chamber to offer a secondary review or counterargument.
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Tom Klem is the controller of Watson Manufacturing, Inc. He estimates that the company’s breakeven point in sales dollars is $2 million. However, he recently told all of the regional sales managers that sales of $3 million were needed to break even. He also told them that if the company failed to break even, the sales force would be reduced in size by 40 percent. Klem believes that his tactics will motivate the sales force to generate record profits for the upcoming year. Is his approach to motivating employees ethical
Answer: NO. His approach to motivating employees is NOT ETHICAL.
Ethical is relating to the accepted principles of right and wrong, especially those of some organization or profession.
In any Organisation or morally, lying is wrong. Being ethical means conforming to accepted moral standards. Morally, lying is wrong. That's exactly what Tom Klem has done here.
a-1. Based on the preceding information, recommend whether to eliminate Division B. a-2. Prepare companywide income statements before and after eliminating Division B. b. During 2017, Division B produced and sold 24,000 units of hand tools. Calculate the contribution to profit if sales and production increase to 39,000 units in 2018? c. Suppose that Solomon could sublease Division B's manufacturing facility for $425,000. Assuming that Division B currently has a production and sales volume of 39,000 units, determine whether Solomon should accept the opportunity to sublease the facility or continue production at Division B.
Answer:
solomon is supposed to continue production at Division B because of the increase in the production volume and sales volume that has increased.
Explanation:
Solomon should take the risk of continuing in the business for like a certian period so that he can be able to asses the production fully before making a decision of probably Subleasing the facility.
Sublease: this is the act of leasing a property by a tenant to a subtenant
The dividend policy of Berkshire Gardens Inc. can be represented by a gradual adjustment to a target dividend payout ratio. Last year Berkshire had earnings per share of $3.00 and paid a dividend of $0.60 a share. This year it estimates earnings per share will be $4.00. Find its dividend per share for this year if it has a 25% target payout ratio and uses a five-year period to adjust its dividend.
The dividend per share for this year can be calculated using the target payout ratio and estimated earnings per share. In this case, the dividend per share is $1.00.
Explanation:To find the dividend per share for this year, we need to calculate the target dividend payout based on the target payout ratio and estimated earnings per share.
The target dividend payout ratio is 25%, which means the company aims to distribute 25% of its earnings as dividends.
The estimated earnings per share for this year is $4.00.
So, the dividend per share for this year can be calculated as:
= $4.00 * 0.25
= $1.00
Therefore, the dividend per share for this year is $1.00.
Berkshire Gardens Inc.'s dividend per share for this year, considering a five-year adjustment period to a 25% payout ratio with estimated earnings per share of $4.00, is $0.68.
To calculate the dividend per share for this year:
Last year, earnings per share (EPS) were $3.00 and the dividend was $0.60 per share.This year, the estimated EPS is $4.00.The target payout ratio is 25%, so the target dividend would be 0.25 × $4.00 = $1.00 per share.However, the company uses a five-year period to adjust its dividend.Last year's dividend was $0.60, and the target dividend was $1.00. The adjustment needed is $1.00 - $0.60 = $0.40.Over five years, the annual adjustment is $0.40 / 5 = $0.08.Therefore, the dividend per share for this year will be $0.60 + $0.08 = $0.68.Multiple Choice Question 115 Sunland Company sells MP3 players for $50 each. Variable costs are $40 per unit, and fixed costs total $120000. What sales are needed by Sunland to break even?
Answer:
The amount of $600,000 sales require to be at break -even
Explanation:
The amount sales require to be at break -even is computed as:
Units × Price = Variable cost × Units + Fixed Cost
where
Units be X
Price is $50
Variable cost os $40 per unit
Fixed cost amounts to $120,000
So, putting the values above:
X × $50 = $40 × X + $120,000
$50 X = $40X + $120,0000
$50X - $40X = $120,000
$10X = $120,000
X = $120,000 / $10
X = 12,000
So, the sales amounts to as:
Sales = Units × $50
Sales = $12,000 × $50
Sales = $600,000
What can be done to soften unexpected bad news? It can be followed by reasons for the bad news. It can be written using "you" language. It can be implied, allowing the receiver to guess at the bad news. It can be placed later in the message. It can be apologized for.
Answer:
The correct answer is letter "D": It can be placed later in the message.
Explanation:
The indirect method of writing messages involves first giving details of the speech and ending with the conclusion of the matter. This is achieved by using passive voice and subordinate phrases. This strategy is more often used while providing bad news to give the audience the reasons why the bad news is taking place. Otherwise, if it is given at the start of the message, it is more likely that people will be discouraged from seeking information on the reasons for the bad news.
Which of the following is the location where notes can be added?
The location to add notes depends on the context. In software like Microsoft Word, notes can be added under 'New Comment' in the 'Review' tab. Similarly, in a PowerPoint presentation, notes can be added in the 'Notes' pane, and in many email clients and physical notebooks or sticky-notes.
Explanation:There are several places where you can add notes depending on the context. If you are using a computer software like Microsoft Word, notes can be added in the 'Review' tab under 'New Comment'. Similarly, in a PowerPoint presentation, you can add notes in the 'Notes' pane at the bottom of each slide.
In many email clients, you can also add notes to emails or contacts. In a physical context, notes can be added in notebooks or on sticky-notes. Thus, the specific location to add notes will depend largely on the platform or context in which you are working.
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Ivanhoe Company took a physical inventory on December 31 and determined that goods costing $669,000 were on hand. Not included in the physical count were $11,000 of goods purchased from Pharoah Corporation, f.o.b. shipping point, and $27,000 of goods sold to Ro-Ro Company for $36,000, f.o.b. destination. Both the Pharoah purchase and the Ro-Ro sale were in transit at year-end. What amount should Ivanhoe report as its December 31 inventory
Answer:
Ivanhoe should report as its December 31 inventory $707,000
Explanation:
According to the given data we have the following:
Inventory in hand= $669,000
goods purchased from Pharoah Corporation, f.o.b. shipping point= $11,000
cost of goods sold to Ro-Ro Company=$27,000
Therefore, in order to calculate the amount should Ivanhoe report as its December 31 inventory we have to make the following calculation:
inventory = Inventory in hand+goods purchased from Pharoah Corporation, f.o.b. shipping point+cost of goods sold to Ro-Ro Company
inventory =$669,000+$11,000+$27,000
inventory =$707,000
Ivanhoe should report as its December 31 inventory $707,000
Final answer:
Ivanhoe Company should report an adjusted inventory value of $653,000 on December 31, including the $11,000 of goods in transit from Pharoah Corporation (f.o.b. shipping point) and excluding the $27,000 of goods in transit to Ro-Ro Company (f.o.b. destination).
Explanation:
The amount Ivanhoe should report as its December 31 inventory can be determined by taking into account the goods in transit. The $11,000 of goods purchased from Pharoah Corporation, which were shipped f.o.b. shipping point, should be included in Ivanhoe's inventory because the ownership of the goods transfers to the buyer once the seller ships the goods. However, the $27,000 of goods sold to Ro-Ro Company, which were shipped f.o.b. destination, should not be included in Ivanhoe's inventory since the ownership doesn't transfer until the goods arrive at the destination. Therefore, the inventory on December 31 would be calculated as follows:
Physical inventory count: $669,000
+ Goods in transit from Pharoah Corporation: $11,000
- Goods in transit to Ro-Ro Company: $27,000
Adjusted inventory value: $653,000
Contingency questions
a. Questions in a questionnaire that allow the respondent to answer in his or her own words.
b. Sets of questions in a questionnaire that use the same set of response categories.
c. Questions in a questionnaire that force the respondent to select from a list of possible responses.
d. Questions in a survey that depend on the responses to earlier questions or which have questions dependent on them.
Answer: d. Questions in a survey that depend on the responses to earlier questions or which have questions dependent on them.
Explanation: Questions in surveys are chief tools used in the collection of necessary information from the respondents. Contingency questions as a type of survey questions depend on the responses to earlier questions or which have questions dependent on them. They are answered only if the respondent gives a particular response to a previously asked question and this helps to avoid asking questions of people that do not apply to them.
Answer:
The correct answer is letter "D": Questions in a survey that depend on the responses to earlier questions or which have questions dependent on them.
Explanation:
Contingency questions are those that come after another dependent question has been answered. Contingency questions explore more details of the first question asked and can only be answered depending on what previous answers were. The first question typically requires a Yes/No answer such as "Are you over age?" or "Do you have a car?". Contingency questions examples would be "How old are you?" or "What color is your car?".
Hilary had an outside basis in LTL General Partnership of $15,000 at the beginning of the year. LTL reported the following items on Hilary's K-1 for the year: ordinary business income of $10,000, a $15,000 reduction in Hilary's share of partnership debt, a cash distribution of $25,000, and tax-exempt income of $8,000. What is Hilary's adjusted basis at the end of the year
Answer:
$0
Explanation:
$15,000 (Hillary's partnership basis at the beginning of the year) + $10,000 (ordinary business income) + $8,000 (tax exempt income) - $15,000 (reduction in share of partnership's debt) - $25,000 (cash distribution) = -$7,000. Since the basis cannot be negative, it is $0.
Also, since Hillary's adjusted basis resulted in a negative value, she must report a capital gain of $7,000. That way her basis = -$7,000 + $7,000 = $0
Answer:
$7,000 Gain and $0 Adjusted basis
Explanation:
Hilary adjusted basis is calculation below.
Hilary outside basis in LTL General Partnership of $15,000
Add:Ordinary business income $10,000
Tax-exempt income $8,000
Less: reduction in Hilary's share of partnership debt $15,000
Cash distribution of $25,000
Adjusted basis loss $7,000
Hence;
= ( $ 7,000 ) + $ 7,000 ( gain )
= $ 0
Therefore Hilary's adjusted basis at the end of the year will be adjusted basis of $ 0 because
Hilary's basis increased by her share of ordinary business income and tax exempt income and then decreased by her actual cash distribution as well as her deemed cash distribution from the reduction in her share of debt which makes her actual and deemed cash distribution exceed her basis which is Hilary must report $ 7,000 of capital gain leaving her with a $0 basis in her partnership interest.
Use the following data to compute the present value of the terminal period ROPI for each of the four firms A through D. Assume a forecast horizon of four years. A B C D Terminal period ROPI $189,122 $27,878 $74,785 $105,733 Weighted average cost of capital (WACC) 7.9% 11.7% 9.5% 13.7% Terminal growth period rate 2.0% 1.0% 2.5% 2.0% Do not round until your final answers. Round your answers to the nearest whole number. A B C D PV of terminal period ROPI Answer 0 Answer 0 Answer 0 Answer 0
Answer:
Firm A $ 2,412,150.68
Firm B $169,038.85
Firm C $761,699.81
Firm D $614,813.36
Explanation:
The present value of terminal value is the terminal value multiplied by the discounted factor as shown by the formula below:
=ROPI*(1+growth rate)/(WACC-growth rate)*(1/(1+WACC)^n
n is the time horizon for the forecast
Firm A terminal value=$189,122*(1+2%)/(7.9%-2%)*1/(1+7.9%)^4
=3,269,566.78*0.737758499 =$ 2,412,150.68
Firm B terminal value=$27,878*(1+1%)/(11.7%-1%)*1/(1+11.7%)^4
=$ 263,147.48*0.642373043 =$169,038.85
Firm C terminal value=$74,785*(1+2.5%)/(9.5%-2.5%)*1/(1+9.5%)^4
=$ 1,095,066.07*0.695574293 =$761,699.81
Firm D terminal value=$105,733*(1+13.7%)/(13.7%-2%)*1/(1+13.7%)^4
=$ 1,027,507.87*0.598353921 =$614,813.36
Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using 27,300 yards of fabric costing $3.05 per yard and incurring direct labor costs of $17,278 for 3,260 hours of direct labor. The standard cost per pillowcase assumes 1.75 yards of fabric at $3.10 per yard, and 0.20 hours of direct labor at $5.95 per hour. a. Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May. b. Compute both the rate variance and efficiency variance for direct labor costs incurred in manufacturing pillowcases in May.
Answer:
direct materials price variance = 1.365 Favourable
direct materials quantity variance =3,255 Adverse
direct labor rate variance = 2,119 Adverse
direct labor efficiency variance = 4,973 Adverse
Explanation:
direct materials price variance = Aq×Ap -Aq×Sp
=(27,300×$3.05)-(27,300×$3.10)
= 1.365 Favourable
direct materials quantity variance = Aq×Sp-Sq×Sp
= (27,300×$3.10)-(26,250×$3.10)
=3,255 Adverse
direct labor rate variance = Aq×Ap -Aq×Sp
=(3,260×$5.95)-(3,260×$5.30)
= 2,119 Adverse
direct labor efficiency variance = Aq×Sp-Sq×Sp
= (3,260×$3.95)-(3,000×$5.95)
= 4,973 Adverse
1. Pane Corp. manufactures and sells a nutrition drink for children. It wants to develop a standard cost per gallon. The following are required for production of one gallon: Ingredient Lime Kool-Drink Sugar Protein Tablets Water Amount per Gallon 24.0 oz. .72 lb. 2 50 oz. Standard Waste 4% 10% 0% 0% Standard Price $0.15 per oz $0.65 per lb $0.40 per tablet $0.01 per oz Compute the standard usage (quantity) and standard cost of the ingredients for one gallon of the nutrition drink.
Final answer:
The standard cost for one gallon of Pane Corp.'s nutrition drink is calculated by adjusting each ingredient's required amount for standard waste, then multiplying by the standard price, resulting in a total cost of $5.57.
Explanation:
To calculate the standard cost for one gallon of the nutrition drink, we need to determine the standard usage (quantity) of each ingredient that accounts for the standard waste and then compute the cost by multiplying this adjusted quantity by the standard price.
For Lime Kool-Drink: The amount required is 24.0 oz with a 4% waste, thus the standard usage is 24.0 oz / (1 - 0.04) = 25 oz. Multiplying the standard usage by the standard price gives us $0.15 per oz × 25 oz = $3.75.
For Sugar: The amount needed is 0.72 lb with a 10% waste, so the standard usage is 0.72 lb / (1 - 0.10) = 0.8 lb. Therefore, the cost is $0.65 per lb × 0.8 lb = $0.52.
For Protein Tablets: No waste is considered, hence the standard usage is 2 tablets. The cost is $0.40 per tablet × 2 tablets = $0.80.
For Water: The quantity required is 50 oz with no waste, hence the standard usage remains 50 oz. The cost is $0.01 per oz × 50 oz = $0.50.
Adding up the cost of each ingredient, we get the total standard cost for one gallon of the nutrition drink which is $3.75 + $0.52 + $0.80 + $0.50 = $5.57.
Headland Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,040,900 on January 1, 2017. Headland expected to complete the building by December 31, 2017. Headland has the following debt obligations outstanding during the construction period.
Construction loan-12% interest, payable semiannually, issued December 31, 2016 $2,017,900
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 1,586,200
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2021 995,900
a. Assume that Headland completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,197,700, and the weighted-average amount of accumulated expenditures was $3,781,600. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.)
Avoidable Interest $
b. Compute the depreciation expense for the year ended December 31, 2018. Headland elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $298,200. (Round answer to 0 decimal places, e.g. 5,275.)
Depreciation Expense $
Answer:
a) $425,320,48
b) $177,494,02
Explanation:
The avoidable interest = $425,320,48
The Depreciation Expense= $177,494,02.
Kindly go through the attached file to see the step by step approach that yielded the answers from the question.
Hank has a 32% marginal tax rate and has already recognized a STCL of $8,000 and a L TCG of $5,000, both due to the sale of stock. He is considering the sale of an antique clock held for investment that would result in a $7,000 L TCG. What is the increase in his tax liability if he goes ahead with the proposed transaction this year
Answer:
The increase in his tax liability is $1,120
Explanation:
STCL due to sale of stock = $8,000
LTCG due to sale of stock = $5,000
∴Net STCL = $8,000 - $5,000
Net STCL = $3,000
LTCG on sale of antique clock = $7,000
∴Net LTCG on sale of antique = $7,000 - $3,000 = $4,000
LTCG on sale of antiques is taxed at the rate of 28%
∴ Tax liability = $4,000 * 28%
Tax liability = $4,000 * 0.28
Tax liability = $1,120
Zilly Co. predicts sales of $176,000 for June. Zilly pays a sales manager a monthly salary of $6,900 and a commission of 7% of that month’s sales dollars. Prepare a selling expense budget for the month of June.
Final answer:
The selling expense budget for Zilly Co. for June is $19,220, which includes the sales manager's salary and the commission on predicted sales.
Explanation:
The selling expense budget for Zilly Co. for the month of June can be calculated by adding the fixed salary of the sales manager to the commission that is based on the sales for that month. To calculate the commission, we use the given sales prediction and commission rate. Here's the step-by-step calculation:
First, calculate the commission by multiplying the predicted sales by the commission rate: $176,000 * 0.07 = $12,320.
Add the fixed monthly salary of the sales manager to the commission to get the total selling expenses: $6,900 + $12,320 = $19,220.
Therefore, the selling expense budget for Zilly Co. for the month of June is $19,220.
There are zero coupon bonds outstanding that have a YTM of 5.73 percent and mature in 23 years. The bonds have a par value of $10,000. If we assume semiannual compounding, what is the price of the bonds?
To calculate the price of the zero coupon bond with a par value of $10,000, a YTM of 5.73%, and semiannual compounding for a 23-year maturity, the present value formula yields a bond price of $2,030.88.
Explanation:To calculate the price of a zero coupon bond, we need to discount the par value of the bond to the present using the yield to maturity (YTM). The formula to find the present value (PV) of a zero coupon bond is PV = F / (1 + r/n)^(n*t), where F is the par value of the bond, r is the YTM, n is the number of times interest is compounded per year, and t is the number of years until maturity.
Given the par value (F) of $10,000, a YTM (r) of 5.73%, semiannual compounding (n = 2), and a maturity of 23 years (t = 23), the calculation is as follows:
PV = $10,000 / (1 + 0.0573/2)^(2*23)
PV = $10,000 / (1.02865)^(46)
PV = $10,000 / (4.9244)
PV = $2,030.88
The price of the bond is $2,030.88 when assuming semiannual compounding at a YTM of 5.73 percent for a 23-year maturity.
Taggart Transcontinental has a divided yield of 3.5%. Taggart's equity cost of capital is 10%, and its dividends are expected to grow at a constant rate. Based on this information, Taggart's constant growth rate in dividends is closest to:
Taggart's constant growth rate in dividends is closest to: 6.5%
Solution:
Given,
Taggart Transcontinental has a divided yield of 3.5%
Equity cost of capital = 10%
To Find: Taggart's constant growth rate in dividends
So , we need to calculate :
= > 10% - 3.5%= 6.5%
Taggart's constant growth rate in dividends is closest to: 6.5%
Final answer:
Taggart Transcontinental's constant growth rate in dividends is calculated to be 6.5% using the Gordon Growth Model and the given equity cost of capital of 10% with a dividend yield of 3.5%.
Explanation:
We can use the Gordon Growth Model (also known as the Dividend Discount Model) to calculate Taggart's constant growth rate in dividends. This model is represented by the equation P = D / (r - g), where P is the current stock price, D is the dividend per share, r is the equity cost of capital, and g is the constant growth rate.
To solve for g, we can rearrange the formula to g = r - (D/P). Given Taggart's divided yield of 3.5%, if we assume a stock price of $1, the dividend per share is equal to 0.035 (3.5% of $1). Taggart's equity cost of capital is given as 10%, or 0.10. Plugging these values into the formula, we get g = 0.10 - 0.035, so the constant growth rate in dividends is 0.065, or 6.5%.
B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 55 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $1.29 million. By going through research, B&B will be able to better target potential customers and will increase the probability of success to 70 percent. If successful, the baby powder will bring a present value profit (at time of initial selling) of $19.9 million. If unsuccessful, the present value payoff is $6.9 million. The appropriate discount rate is 15 percent.Calculate the NPV for the firm if it conducts customer segment research and if it goes to market immediately
The answer & explanation for this question is given in the attachment below.
Conducting customer segment research results in a higher NPV of $4.27 million compared to going to market immediately.
1. Calculate the NPV without research:
NPV without research = (Probability of success * PV of success) + (Probability of failure × PV of failure)
NPV without research = (0.55 × $19.9 million) + (0.45 × $6.9 million)
NPV without research = $10.945 million + $3.105 million
NPV without research = $14.05 million
2. Calculate the NPV with research:
NPV with research = (Probability of success × PV of success) + (Probability of failure × PV of failure) - Cost of research
NPV with research = (0.70 × $19.9 million) + (0.30 × $6.9 million) - $1.29 million
NPV with research = $13.93 million + $2.07 million - $1.29 million
NPV with research = $14.71 million - $1.29 million
NPV with research = $13.42 million
3. Calculate the NPV difference:
NPV difference = NPV with research - NPV without research
NPV difference = $13.42 million - $14.05 million
NPV difference = -$0.63 million
Based on these calculations, conducting customer segment research results in a higher NPV of $4.27 million ($13.42 million - $9.15 million) compared to going to market immediately.
Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available: • Pan Asia Mining Co.’s stock (Ticker: PAMC) is trading at $15.00. • The company’s stock is expected to pay a year-end dividend of $0.72 that is expected to grow at a certain rate. • The stock’s expected rate of return is 7.20%. Based on the information just given, what will be Robert’s forecast of PAMC’s growth rate?
Answer:
Growth rate 2.4%
Explanation:
MV=D1/(Ke-g)
Where MV=share market value=$15
D1=Dividend at year end=$.72
Ke=stock's expected rate of return=7.2%
By putting above values in formula, we get;
MV=D1/(Ke-g)
15=.72/(7.2%-g)
15*7.2%-15g=.72
1.08-15g=.72
.72-1.08=-15g
g= -.36/-15
g=2.4%
Answer:
Growth rate = g = 7.152%
Explanation:
To calculate the Robert forecast of the PAMC's growth rate in the question, we are give the following values
Share market value(MV)=$15
The stock's expected rate of return(Ke)=7.2%
Dividend at end of the year (D)=$0.72
Using the this formula, we can find the growth rate by making g the subject of formula in this formula
MV=D1/(Ke-g)
Substituting the values we have
15 = 0.72/(7.2-g)
15(7.2-g) = 0.72
108 - 15g = 0.72
Rearranging and collecting like terms, we have
108 - 0.72 = 15g
107.28 = 15g
Making g the subject of formula by dividing both sides by 15 we have
g= 7.152%
Eureka Forbes, an Asian consumer appliances company, sells its vacuum cleaners through door-to door sales in Asia. This allows the company to obtain a high conversion ratio. Comment on the length of the channel in the case of Eureka Forbes' vacuum cleaners. Do you think such a distribution method is feasible in the U.S? Why or why not?
Answer:
Answer: Comment on the length of the channel in the case of Eureka Forbes's vaccum cleaner
Explanation:
Eureka Forbes, India"s leading water cleanser maker, is making a bet on outlets as an alternative to achieve share in an increasingly crowded market than his major direst sales which now has more than a hundred and fifty brands.
The Shapoorji Pallonji crew manufacturer stated it won 9% share in water purifiers past three years to contact 67% as a result of an increase in retail exchange regardless of large firms e.g. Hindustan Unilever and a number of multinationals in the market.
Accomplice vice chairman (advertising and marketing) Shashank Sinha said the company will quickly increase the community of retail shops, where the products are sold from 20,000 to 25,000. He said, the organization is developing a model whereby direct revenue executives are present to assist buyers who prefer a mannequin and purchase it straight from the companys internet site. "The knock-and-sale mannequin is losing relevance in digital world.
Eureka Forbes has about 7,000 direct sales executives, making it the biggest direct promoting company in Asia. When we get leads from digital world, assisted revenue can be helping lower return charges since 60% of orders positioned are on money-on-delivery mode, Sinha said. The corporation is increasing its sales in more its direct revenue to smaller towns and for more recent products such as air purifiers and home security solutions, cognizance for which is still in its infancy. The water cleaner industry accounts for 70% of Eureka Forbes turnover, which grew 59% in 2016-17 over the earlier 12 months to touch Rs three,040 core.
Apart from water purifiers, the enterprise is the market chief in vacuum cleaners, with 80% share, and in air purifiers, with 44% share.
Sinha mentioned, the organization is launching value-added products of water purifiers examples are water purifiers which have tea/espresso maker developed into it, they offer flavoured water, sparkling water and also sizzling or cold water from identical unit. He said the company is working on achieving this.
Sinha said tax on water purifiers will go up beneath the goods and offerings tax regime from 14.5% to 18%, while vacuum cleaners and air purifiers will fall in the 28% tax bracket. Also, sales to retail channel have slowed down because outlets are not keen to inventory and direct sales to purchasers are no longer affected, he said.
Cost will no longer be broaden as a result of the larger taxation due to the fact that we wish to study the effect utterly as one of the crucial components are imported. Decision will be made within a month or two he said.
Eureka Forbes uses a short, direct-to-consumer distribution channel in Asia. Its door-to-door sales method may not be as feasible in the U.S. due to cultural preferences, privacy concerns, and higher labor costs.
The length of the distribution channel for Eureka Forbes' vacuum cleaners is relatively short since the company sells its products directly through door-to-door sales. This direct-to-consumer (D2C) approach eliminates the need for intermediaries such as distributors and retailers, allowing Eureka Forbes to achieve higher conversion ratios in Asian markets. However, the feasibility of this distribution method in the U.S. market is questionable due to cultural, economic, and market differences. For example, American consumers may be less receptive to door-to-door selling due to privacy concerns and the convenience of online shopping. Additionally, the high labor costs associated with personal selling might make this approach less viable in the U.S. Market characteristics, such as a preference for large-scale retail outlets and online retail, suggest that alternative distribution strategies could be more effective in reaching consumers in the U.S.
Pension data for Millington Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligation, January 1$370 Projected benefit obligation, December 31 475 Accumulated benefit obligation, January 1 310 Accumulated benefit obligation, December 31 425 Cash contributions to pension fund, December 31 160 Benefit payments to retirees, December 31 56 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Answer:
The service cost component of pension expense for the year ended December 31 is $124 million
Explanation:
Projected benefit obligation, December 31 $475
Less: Projected benefit obligation, January 1 -$370
Less: Interest cost = -37 =370*10%
Add: Benefit payments to retirees $56
Service cost $124 million
Stan read an ad in the newspaper which said that the jackpot for picking the six winners in the dog race on the last night of the season was $825,000. Stan went that night and correctly picked the winners. However, it turned out that the newspaper had made a mistake. The jackpot was $25,000, not $825,000. Therefore the track owners refused to pay the latter amount. If this ad is treated like offers of reward, can Stan collect the $825,000?
Find the given attachment
Suppose that a car manufacturer discovers that it can lower its average costs if it diversifies its operation by also producing pickup trucks and SUVs.What concept does this illustrate
Final answer:
This scenario demonstrates economies of scale, where diversifying production to make pickup trucks and SUVs alongside sedans reduces average costs. International trade is critical for this strategy to succeed, leading to improved efficiency and consumer choice while fostering dynamic comparative advantage through global competition.
Explanation:
The concept illustrated by a car manufacturer realizing it can lower its average costs by diversifying operations to include the production of pickup trucks and SUVs is known as economies of scale. This occurs when increasing production allows for the average cost per unit to decrease, due to the spreading out of fixed costs over more units and, often, more efficient use of resources.
In the provided scenario, international trade facilitates these economies of scale by allowing the company to focus each assembly plant on a single model, leading to increased production without additional capital or labor. It also introduces the concept of dynamic comparative advantage, where advantages develop over time through learning and competition, as opposed to being inherently obtained. This has a significant impact on international trade, as it combines lower costs with increased competition and consumer choice.
. From the following list of account balances, calculate the correct amount of current liabilities: Accounts receivable $ 5,000 Accounts payable 5,300 Unearned revenue 900 Rent expense 2,400 Sales revenue 46,300 Sales tax payable 3,700 Estimated warranty payable 900 Note payable, due in 90 days 1,300 Accumulated depreciation 1,400 a. $12,100 d. $13,000 b. $61,200 e. $13,100
Answer:
The answer is A.
Explanation:
Current liabilities are the total amount of money due within a period of s year. Current liabilities must be repaid within a year(less than 12 months.
Current liabilities in this question are:
Payable. $5,300
Unearned revenue $900
Sales tax payable. $3,700
Estimated warranty payable $900
Note payable due in 90days $1,300
Total. $12,100
$12,100 is therefore the total current liabilities
Suppose payments will be made for 9 1 4 years at the end of each month from an ordinary annuity earning interest at the rate of 3.75%/year compounded monthly. If the present value of the annuity is $46,000, what should be the size of each payment from the annuity
To calculate the size of each payment from the annuity, use the present value formula. The size of each payment from the annuity should be approximately $388.88.
Explanation:To calculate the size of each payment from the annuity, we need to use the present value formula. The present value of the annuity is given as $46,000. The interest rate is 3.75% per year, compounded monthly. The annuity will be paid for 9 1/4 years, which is a total of 111 months.
Using the present value formula:
Present Value = Payment * (1 - (1 + interest rate/number of periods)^(-number of periods))) / (interest rate/number of periods)Plugging in the values, we have: 46000 = Payment * (1 - (1 + 0.0375/12)^(-111))) / (0.0375/12)Solving for Payment, we find that the size of each payment from the annuity should be approximately $388.88.
The size of each payment should be approximately [tex]\$144.81.[/tex]
The correct size of each payment from the annuity is given by the formula for the present value of an ordinary annuity:
[tex]\[ P = \frac{PV}{\frac{1 - (1 + r)^{-n}}{r}} \][/tex]
where:
[tex]\( P \)[/tex] is the size of each payment,
[tex]\( PV \)[/tex] is the present value of the annuity,
[tex]\( r \)[/tex] is the monthly interest rate, and
[tex]\( n \)[/tex] is the total number of payments.
Given:
[tex]\( PV = \$46,000 \)[/tex]
The annual interest rate is [tex]\( 3.75\% \)[/tex],
Interest is compounded monthly, so the monthly interest rate [tex]\( r \)[/tex] is [tex]\( \frac{3.75\%}{12} \)[/tex],
The annuity makes payments for [tex]\( 9\frac{1}{4} \)[/tex] years, which is [tex]\( 9 + \frac{1}{4} = 9.25 \) years,[/tex]
There are [tex]12[/tex] payments per year, so the total number of payments [tex]\( n \)[/tex] is [tex]\( 9.25 \times 12 \).[/tex]
First, we calculate the monthly interest rate:
[tex]\[ r = \frac{3.75\%}{12} = \frac{0.0375}{12} = 0.003125 \][/tex]
Next, we calculate the total number of payments:
[tex]\[ n = 9.25 \times 12 = 111 \][/tex]
Now we can plug these values into the annuity formula:
[tex]\[ P = \frac{46000}{\frac{1 - (1 + 0.003125)^{-111}}{0.003125}} \][/tex]
Solving this equation:
[tex]\[ P = \frac{46000}{\frac{1 - (1 + 0.003125)^{-111}}{0.003125}} \][/tex]
[tex]\[ P = \frac{46000}{\frac{1 - (1.003125)^{-111}}{0.003125}} \][/tex]
[tex]\[ P = \frac{46000}{317.6051} \][/tex]
[tex]\[ P = 144.81 \][/tex]
Thrope, Inc. purchased 2,400 pounds of direct material at a price of $1.30 per pound. The standard price of the material is $1.40 per pound. Thrope used 1,200 pounds in production while the standard pounds allowed for actual production was 900. Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable. Direct material price variance $ Direct material quantity variance $
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard price= $1.4 per pound
Thrope, Inc. purchased 2,400 pounds of direct material for $1.30 per pound.
Thrope used 1,200 pounds in production while the standard pounds allowed for actual production was 900.
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (1.4 - 1.3)*2,400= $240 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (900 - 1,200)*1.4= $420 favorable
Answer:
Price variance $240 Favorable
Quantity variance $ 420 unfavourable
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.
$
2,400 pounds should have cost (2400×$1.40) = 3360
but did cost (actual cost ) = (2400×$1.30) = 3120
Price variance 240 Favorable
Quantity variance
It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price
Pounds
standard allowed production 900
Actual quantity used 1,200
Difference 300
Standard price × $1.40
Quantity variance $420 unfavourable
Prior to the receipt of the bond proceeds, Oxford needed funds and went to United Southern Bank to borrow $600,000 in bond anticipation notes (BANs), at 5 percent, which were to be paid back using the proceeds of the $2,500,000 bond issue. The entry at the government-wide level to record the receipt of the bond anticipation notes would include a: A. Credit to Other Financing Sources—proceeds of BANs, $600,000. B. Debit to Cash, $1,900,000. C. Credit to Bonds Payable, $600,000. D. Debit to Cash, $600,000.
Answer:
D. Debit to Cash, $600,000.
Explanation:
The journal entry is shown below:
Cash Dr $600,000
To Bond anticipated note payable $600,000
(Being the receipt of the bond is recorded)
For recording this we debited the cash as it increased the asset and credited the bond anticipated note payable as it also increased the liabilities so that the correct posting could be done
According to Milton Friedman, "Business has only one social responsibility – to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible." Explain why you agree or disagree with such a statement.
Answer:
Read answer carefully
Explanation:n a 1970 Times magazine article, the economist Milton Friedman argued that businesses' sole purpose is to generate profit for shareholders. Moreover, he maintained, companies that did adopt "responsible" attitudes would be faced with more binding constraints than companies that did not, rendering them less competitive.
The occasion of Friedman's passing last week offers an opportunity to revisit that argument. It remains the basis for many companies' contention today that "corporate social responsibility," "sustainable business," and other such monikers are a distraction from their core obligation: to act in their shareholders' best interests. That is, acting "responsibly" risks reducing profits or forgoing revenue in the name of social good.
"What does it mean to say that the corporate executive has a 'social responsibility' in his capacity as businessman?" asked Friedman in his 1970 article.
"If this statement is not pure rhetoric, it must mean that he is to act in some way that is not in the interest of his employers. For example, that he is to refrain from increasing the price of the product in order to contribute to the social objective of preventing inflation, even though a price increase would be in the best interests of the corporation. Or that he is to make expenditures on reducing pollution beyond the amount that is in the best interests of the corporation or that is required by law in order to contribute to the social objective of improving the environment. Or that, at the expense of corporate profits, he is to hire 'hardcore' unemployed instead of better-qualified available workmen to contribute to the social objective of reducing poverty.
"In each of these cases, the corporate executive would be spending someone else's money for a general social interest. Insofar as his actions in accord with his 'social responsibility' reduce returns to stockholders, he is spending their money. Insofar as his actions raise the price to customers, he is spending the customers' money. Insofar as his actions lower the wages of some employees, he is spending their money." Friedman argued that such actions in effect turned executives into public employees or civil servants, levying "taxes" (in the form of corporate money allocated to social causes) and making "expenditures" -- a part of "the socialist view that political mechanisms, not market mechanisms, are the appropriate way to determine the allocation of scarce resources to alternative uses."
Friedman concluded:
"The difficulty of exercising 'social responsibility' illustrates, of course, the great virtue of private competitive enterprise -- it forces people to be responsible for their own actions and makes it difficult for them to 'exploit' other people for either selfish or unselfish purposes. They can do good -- but only at their own expense."
We know better now. For example, we understand that ignoring environmental and social issues can be bad for business. Companies that pollute their local communities risk poisoning their customers. Ignoring the state of the local school system risks depleting the pool of qualified workers. Abusing workers risks higher turnover and training costs, not to mention greater difficulty attracting the most qualified candidates.
It's never that simple, of course. In a globalized world, companies are free to exploit or pollute a local community, then move on to the next place. Unfettered markets and exploitation-friendly tax schemes reward companies for acting in their own interests in the name of economic growth and competitiveness. So, Friedman's philosophy still reigns supreme.
Friedman's philosophy is far from universally shared, even in the business community. In 1979, for example, Quaker Oats president Kenneth Mason, writing in Business Week, declared Friedman's profits-are-everything philosophy "a dreary and demeaning view of the role of business and business leaders in our society." Wrote Mason: "Making a profit is no more the purpose of a corporation than getting enough to eat is the purpose of life. Getting enough to eat is a requirement of life;
Big City provides a defined benefit pension plan for employees of the city water department, an enterprise fund. Assume that the service cost component is $420,000, and interest on the pension liability is $380,000 for the year. Actual returns on plan assets for the year were $300,000 while the projected level of earnings on plan investments was $360,000. This difference is to be amortized over a 5 year period, beginning this year. Finally assume the City is amortizing a deferred inflow resulting from a change in plan assumptions from a prior year in the amount of $10,000 per year. Prepare journal entries to record annual pension expense for the enterprise fund.
Solution:
Journal entries to record annual pension expense for the enterprise fund :
Service cost $420,000
Interest $380,000
Cash 800,000
Plan assets - pension 800,000
Service cost 420,000
Interest 380,000
Brief Exercise 11-8 Calculate net cash flows from investing activities (LO11-4) Creative Sound Systems sold investments, land, and its own common stock for $40 million, $16 million, and $42 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $22 million, $26 million, and $13 million, respectively. What amount should the company report as net cash flows from investing activities?
Answer: $17,000,000
Explanation:
Investing Activities in the Cash Flow Statement refers to any cash inflows or outflow that is related to investments as well as the fixed assets and securities of other companies and patents.
In the above question the following are considered investment activities,
Sale of investment and Land
Purchase of Equipment and Patents.
Net Cash = ( Cash Inflows) - (Cash Outflows)
Net Cash = ( 40 million (investment sale) + 16 million ( land sale) ) - ( 26 million (equipment purchase) + 13 million (patent purchase) )
Net Cash = 56,000,000 - 39,000,000
Net Cash = $17,000,000
Net cash flows from investing activities is $17,000,000