Answer:
As per the Securities Act of 1933, John must prove only that the registration statement contained some important omissions
Explanation:
The Securities Act of 1933 also known as the "Truth in Securities" law. This law requires that companies have to submit information to the investors about the securities being offered for public sale.
It was the first major federal securities law passed.
President Roosevelt stated that the law was aimed at correcting some of the wrongdoings included insider trading, the sale of fraudulent securities, and other wrongdoings that some financial institutions and professional stock traders engaged in.
In the given question,
John must prove only that the registration statement contained some important omissions as per the Securities Act of 1933
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $107,000. The equipment will have an initial cost of $214,000 and have a 3 year life. If the salvage value of the equipment is estimated to be $82,000, what is the payback period? Ignore income taxes.
Answer:
2 years
Explanation:
The computation of the payback period is shown below:
Payback period = Initial cost of equipment ÷ Annual increase in cash flow
= $214,000 ÷ $107,000
= 2 years
By dividing the initial cost of equipment from the annual increase in cash flow we can get the payback period and the same is shown above i,e in the computation part. and we ignored the salvage value for the same
The manager of the student center cafeteria is introducing pizza as a menu item. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. She anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks per year. The ordering cost is $15 and the holding cost is $0.40 per pizza per year. What is the optimal number of pizzas she should order
Answer:
From the information given, the number of pizzas is 450 pizzas.
Explanation:
If the cafeteria is open 45 wks a year and they anticipate 10 pizzas per week, then they need 450 pizzas.
[tex]45*10[/tex]
Suppose India has a per capita GDP that is .074 times the United States GDP. It has a capital-per-person ratio that is .035 times that of the United States. Compared to the United States, the implied value of total factor productivity for India is approximately a. .30. b. .07. c. .12.d. .23.
Final answer:
To find the implied value of total factor productivity for India, we can use the formula: Total factor productivity = Per capita GDP / Capital per person ratio. Given the values provided, the implied value of total factor productivity for India is approximately 2.114.
Explanation:
To find the implied value of total factor productivity for India, we can use the formula:
Total factor productivity = Per capita GDP / Capital per person ratio
Given that India's per capita GDP is 0.074 times the United States GDP and its capital-per-person ratio is 0.035 times that of the United States, we can substitute these values into the formula:
Total factor productivity = 0.074 / 0.035 = 2.114
Therefore, the implied value of total factor productivity for India is approximately 2.114.
The correct answer option is D. Compared to the United States, the implied value of total factor productivity for India is approximately 23.
To find the implied value of total factor productivity (TFP) for India compared to the United States, we can use the Solow-Swan growth model, which relates output (GDP) to capital and labor inputs. The equation for GDP in this model is Y = A * (K^α) * (L^(1-α)), where Y is GDP, A is TFP, K is capital, L is labor, and α is the output elasticity of capital.
Given that India's per capita GDP is 0.074 times that of the United States and its capital-per-person ratio is 0.035 times that of the United States, we can set up the ratio:
India's GDP per capita / US GDP per capita = (India's TFP * India's capital per person ^ α * 1) / (US TFP * US capital per person ^ α * 1)
Substituting the given values and solving for A (TFP) yields approximately 0.23. So, the correct answer is d. .23.
Which of these is NOT one of the items that can provide useful assistance to a project team to define the activities of a project? a. the major milestones from the Project Charter b. schedules from similar, previous projects c. issue logs d. templates or checklists for projects of the same type
Option C
issue logs is one of the items that can provide useful assistance to a project team to define the activities of a project
Explanation:Activities in a project are the process to recognize and document the exercises that are available to produce the project deliverables. The essential advantage of this method is that it crumbles work units into program activities that present a source for evaluating, cataloging, completing, monitoring, and managing the project work.
The issue log, seldom also identified as an issue register, is a project document where all issues that are negatively altering the project are documented and tracked. This will not be beneficial compensation in defining activities of the project.
The item that does not provide assistance to a project team in defining the activities of a project is the issue logs. While they are important for risk management, they do not directly aid in outlining project tasks or deliverables.
Explanation:When defining the activities of a project, there are certain items that are useful resources specific to project management. These include things like major milestones from the Project Charter, schedules from similar, previous projects, and templates or checklists for projects of the same type. These provide structured, specific frameworks that can guide the project team in planning and executing the project.
However, issue logs do not necessarily provide assistance to a project team when defining activities. While they provide valuable context and shed light on potential problems that may arise during the course of a project, they do not directly serve the purpose of detailing project tasks or deliverables. Instead, they are a tool for risk management.
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The D.J. Masson Corporation needs to raise $400,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 3/10, net 75, and it currently pays on the 10th day and takes discounts. However, it could forgo the discounts, pay on the 75th day, and thereby obtain the needed $400,000 in the form of costly trade credit. What is the effective annual interest rate of this trade credit
Answer:
67.44%
Explanation:
The computation of Annualized rate is shown below:-
Annualized rate = (Discount percentage ÷ 100 - Discount percentage) × 365 ÷ (credit period - discount period)
(3% ÷ (100% - 75) × (365 ÷ (75 - 10))
= (3% ÷ 25) × (365 ÷ (75 - 10))
= 12% × 5.62
= 67.44%
Therefore for computing the annualized rate we simply applied the above formula.
The Masson Corporation is using trade credit as a form of financing by foregoing discounts from its suppliers. The effective annual interest rate of this trade credit is approximately 17.0769%, calculated by dividing the 3% discount by the period it covers (65 days), then extrapolating to a full year.
Explanation:The Masson Corporation is considering foregoing the discount of its suppliers to raise money for working capital. By taking this action, they are effectively using trade credit as a form of financing. To calculate the effective annual interest rate of this trade credit, we need to consider the cost of giving up the discount.
The discount offered is 3%, which is forgone if paid on the 75th day, rather than on the 10th day. The discount period is 65 days (75-10), and the trade credit is extended for 310 days (365 - 65).
The interest for the period of the trade credit could be viewed as being the 3% discount that is being given up. Therefore, the interest paid for the period of trade credit (65 days) is 3%. The annual interest rate can then be calculated by dividing the total discount by the discount period, and then extrapolate this figure to cover a year (365 days).
Therefore, the effective annual interest rate is 3/(65/365) = 17.0769%,approximately.
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5. Taxpayer ("T"), a cash basis individual taxpayer, lent money to each of his two daughters ("D1" and "D2") on January 1 of the current yer. T lent $50,000 to D1 and $110,000 to D2. T did not charge any interest on the loans. D1 was 19 years old and used the $50,000 to open a brokerage account which invested in stocks. D1 had $300 of net investment income during the year. D 2 was 26 years old and used the loan to renovate her personal house. D2 had no investment income during the year. The applicable federal rate "AFR" is a 5% annual rate. The loans were outstanding for the entire year. What amount of income, if any, will T include on T’s individual income tax return as a result of the loan to
Answer:
Explanation:
Taxpayer T, a cash basis individual taxpayer, loaned cash to his 2 little girls D1, $ 50,000 dollars which he used to open an investment fund and put resources into stocks. D2 $ 110,000 utilized the advance to redesign her own home. He did not charge any enthusiasm on Loan.
As per IRS, if an individual offers advance to his family, he ought to satisfy the accompanying.
1)The credit ought to be legitimate and enforceable i.e it ought to be recorded as a hard copy.
2) He should charge an enthusiasm for that advance. Else it is a considered blessing.
Since T, did not satisfied both the previously mentioned, the credit given by him to both the girls is an esteemed blessing.
As per IRS, an individual can give an endowment of $ 15,000 for every Persons in a specific year. He can give ito any number of people. Be that as it may, on the off chance that you give more than $ 15,000 in real money or advantages for an individual in a year he have to record a blessing government form i.e, IRS Form 709.
On the off chance that he did not charged any enthusiasm on the credit , that sum is likewise a regarded blessing and blessing expense form should be documented if the all out endowments per individual surpasses $15000.
Some other Gift charge rules are:
You don't need to stress over family credits being liable to blessing charge rules if:
You loan a kid $10,000 or less, and the kid doesn't utilize the cash for ventures, for example, stocks or bonds.
You loan a youngster $100,000 or less, and the kid's net venture pay isn't more than $1,000 for the year.
Investigation:
T has given a credit of $ 50,000 to D1 which is more than $ 10,000 and is put resources into Shares. Subsequently it is considered blessing and he have to record a blessing assessment form
T has given a credit of $ 110,000 to D2 which is more than $ 100,000 and henceforth is considered blessing and need to record a blessing government form
Intrigue isn't charged on credits by T , so it is additionally a considered pay
Given Applicable Federal Rate is 5%
on D1 credit $50,000 *5% = 2500
on D2 credit $ 110,000 *5% = 5500
All out considered blessing to D1 = $ 50,000 + $ 2500 = $52,500
All out considered blessing to D2 = $110,000 + $ 5500 =$ 115,500
Thus, the advances given to D1 and D2 does exclude from T's individual annual Tax return. It is regarded blessing and he have to document blessing assessment form under structure 709 where he should make reference to all the subtleties of presents for every individual
Blessing Tax return doesn't implies he owes Gift Tax. There is $11.58 million of life time Gift charge exclusion. On the off chance that you surpass $ 11.58 million, at that point just you have to cover blessing charge. For wedded the exception of $ 11.58 each for the two mates.
Antoine transfers property with a tax basis of $505 and a fair market value of $635 to a corporation in exchange for stock with a fair market value of $610 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $25 on the property transferred. What is Antoine's tax basis in the stock received in the exchange
Answer: $480
Explanation:
As Antoine transferred a property with a tax base of $505 for the stock, this is the new tax base the stock.
However, because the corporation assumed a liability of $25 on the property transferred, that $25 must be accounted for in the tax basis as a result of the transfer.
It is accounted for by simply deducting it from the Tax base,
= 505 - 25
= $480.
Antoine's tax basis in the stock received in the exchange is $480.
Arthur is a 30 percent partner in the CAR Partnership. At the beginning of the tax year, Arthur's basis in the partnership interest was $60,000, including his share of partnership liabilities. During the current year, CAR reported net ordinary income of $40,000. In addition, CAR distributed $5,000 to each of the partners ($15,000 total). At the end of the year, Arthur's share of partnership liabilities increased by $20,000. Arthur's basis in the partnership interest at the end of the year is:a. $60,000.b. $120,000.c. $87,000.d. $75,000.e. None of these choices are correct.
Answer:
c. $87,000
Explanation:
The computation of the Arthur's basis in the partnership interest at the end of the year is shown below:
= His share of partnership liabilities + net operating income share + increased share in liabilities - distributed amount
= $60,000 + $12,000 + $20,000 - $5,000
= $87,000
Net operating income share is
= $40,000 × 30%
= $12,000
We simply applied the above formula
High Middle Ages agriculture included all of these features EXCEPT Select one: a. increased output by increasing the amount of land used for farming. b. use of slave labor. c. extensive swamp draining and land clearance. d. application of the three-field system. be. improved methods through the use of iron tools.
Answer:
B) use of slave labor.
Explanation:
During the high middle ages most slaves in Europe were due to religious wars. E.g. if Christian crusaders won territory they would take Muslim slaves and when Muslims won territory they would also take Christian slaves.
During the early middle ages slaves were used for agricultural activities but that almost ceased in the high middle ages. The Catholic church promoted the change from being a slave into being a feudal serf. By the late 10th century (end of early middle ages) most slaves were turned into serfs. Even though the life of a serf was very complicated and difficult, it was better than being a slave.
But that didn't apply to religious prisoners until the end of the high middle ages when the Pope prohibited Muslim slaves (but that didn't stop it from happening).
New tire retreading equipment, acquired at a cost of $110,000 on September 1 at the beginning of a fiscal year, has an estimated useful life of four years and an estimated residual value of $7,500. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fourth year, on September 6, the equipment was sold for $18,000. Required: 1. Determine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method.
Answer:
See explanation section.
Explanation:
See the image.
This detailed answer calculates the annual depreciation expense using both the straight-line and double-declining-balance methods for a tire retreading equipment costing $110,000 over four years. Both methods are explained step-by-step with examples. The final gain on sale of the equipment is also calculated.
To determine the annual depreciation expense using the straight-line method:
Calculate the annual depreciation expense: (Cost - Residual Value) / Useful Life = ($110,000 - $7,500) / 4 = $25,625 per year.
Create a table to show each year's depreciation, accumulated depreciation, and book value:
Year 1: Depreciation: $25,625; Accumulated: $25,625; Book Value: $84,375Year 2: Depreciation: $25,625; Accumulated: $51,250; Book Value: $58,750Year 3: Depreciation: $25,625; Accumulated: $76,875; Book Value: $33,125Year 4: Depreciation: $25,625; Accumulated: $102,500; Book Value: $7,500For the double-declining-balance method:
Calculate the annual depreciation rate: (2 / Useful Life) = 50%.
Apply the rate to the book value at the beginning of each year:
Year 1: Depreciation: $110,000 * 50% = $55,000; Accumulated: $55,000; Book Value: $55,000Year 2: Depreciation: $55,000 * 50% = $27,500; Accumulated: $82,500; Book Value: $27,500Year 3: Depreciation: $27,500 * 50% = $13,750; Accumulated: $96,250; Book Value: $13,750Year 4: Depreciation: ($13,750 - $7,500) = $6,250; Accumulated: $102,500; Book Value: $7,500The equipment sold in the fourth year for $18,000 results in a gain of $10,500 because the book value was $7,500.
Yzer Inc. asked for volunteers from its employees to help with yard work on its premises prior to a grand reopening. Barton Rodr, a salaried programmer who received no additional pay, suffered a heart attack while doing the lawn work. He sought workers' compensation benefits, but Yzer denied he was working as an employee at the time of the injury, claiming that it had not occurred during the course and scope of his employment. Should Rodr recover workers' compensation benefits
Answer: Yes he should.
Explanation:
Barton Rodr was a salaried programmee who was working for Yzer at the time of the accident.
He decided to volunteer to help his company with yard work for it's grand reopening.
Whilst helping, he sustained an injury and notified his employers of his intention to seek workers compensation benefits. In doing so, he has satisfied one of the requirements for claiming such.
His employer then refused to grant him workers compensation as it says that he was not working at the time.
This is untrue as Barton Rodr was working at the time of the incident. Even though he was volunteering for the company, it does not mean that he was a volunteer because he was not an ordinary person but rather an employee of the firm.
According to the law, workers compensation arises in the line of duty to the employer. The only deviation is where the employee is doing something purely personal or for another entity. Barton Rodr in this instance was still serving his employer even though it was outside the office.
It is important to note that what Mr. Rodr was doing was in the interest of his employer and he was still an employee when the incident happened.
These 2 facts alone entitle him to workers compensation benefits.
Hiring a Black Hat Hacker. You are a member of the Human Resources Department of a software manufacturer that has several products and annual revenue in excess of $500 million. You're on the phone with the manager of software development who has made a request to hire a notorious white hat hacker to probe your company's software products in an attempt to identify any vulnerabilities. The reasoning is that if anyone can find a vulnerability in your software, she can. This will give your firm a head start on developing patches to fix the problems before anyone can exploit them. You feel uneasy about hiring people with criminal records and connections to unsavory members of the hacker/cracker community and are unsure if you should approve the hire. What is the difference between a black hat hacker and a white hat hackera. A white hat hacker is someone who has been hired by an organization to test the security of information systems while a black hat hacker is someone who seeks to violate computer security for his/her own personal illegal gain.
b. A black hat hacker has learned tricks and techniques for violating computer and Internet security measures that are generally not known by a white hat hacker.
c. A white hat hacker is a reformed former black hat hacker.
d. A black hat hacker is a nonemployee who tries to violate computer and Internet security measures of an organization, while a white hat hacker is a malicious employee or contractor of the organization.
A white hat hacker is hired to test security while a black hat hacker seeks to exploit it.
Explanation:The difference between a black hat hacker and a white hat hacker is that a white hat hacker is someone who has been hired by an organization to test the security of information systems, while a black hat hacker is someone who seeks to violate computer security for their own personal illegal gain. A black hat hacker has learned tricks and techniques for violating computer and internet security measures that are generally not known by a white hat hacker. It is important to note that a white hat hacker is not necessarily a reformed former black hat hacker, and a black hat hacker can be a nonemployee who tries to violate computer and internet security measures of an organization, while a white hat hacker can be a malicious employee or contractor of the organization.
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Magic Milling Company has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,100.35. However, Magic Milling may call the bonds in eight years at a call price of $1,060. What are the YTM and the yield to call (YTC) on Magic Milling’s bonds?
Final answer:
The Yield to Maturity (YTM) and Yield to Call (YTC) on Magic Milling's Bonds are approximately 9.66% and 6.08% respectively.
Explanation:
The Yield to Maturity (YTM) and Yield to Call (YTC) on Magic Milling's Bonds
The yield to maturity (YTM) is the total return expected on a bond if it is held until maturity. To calculate the YTM, we need to use the current market price, the coupon rate, and the time left until maturity. In this case, the YTM would be approximately 9.66%.
The yield to call (YTC) is the total return expected on a bond if the bond is called before maturity. To calculate the YTC, we need to use the current market price, the call price, the coupon rate, and the time left until the call date. In this case, the YTC would be approximately 6.08%.
Pisa Pizza, a seller of frozen pizza, is considering introducting a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of new pizza will be $20 million per year. While many of these sales will be to new customers, Pisa Pizza estimaes that 40% will come from customers who switch to the new, healthier pizzai nstead of buying the original version.
a) Assume cusotmer will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza?
b) Suppose that 50% of hte cusomters who will switch from Pisa Pizza's orignial pizza to its healthier pizza will switch to another brand if Pisa PIzza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza in this case?
Answer:
Part 1:
Level of incremental sales is associated with introducing the new pizza= $12 million
Part 2:
Level of incremental sales is associated with introducing the new pizza=$16 million.
Explanation:
Given Data:
Expected sales of new pizza=$20 million per year
Percentage of Loss on buying the original version=40%=0.40
Amount of Loss on buying the original version=0.40*$20 million
Amount of Loss on buying the original version=$8 million.
Required:
What level of incremental sales is associated with introducing the new pizza?What level of incremental sales is associated with introducing the new pizza in this case when 50% of the customers who to its healthier pizza will switch to another brand ?Solution::
Part 1:
Level of incremental sales is associated with introducing the new pizza= Expected sales of new pizza-lost sales of original
Level of incremental sales is associated with introducing the new pizza=$20 million-$8 million
Level of incremental sales is associated with introducing the new pizza= $12 million
Part 2:
Level of incremental sales is associated with introducing the new pizza=Expected sales of new pizza - lost sales from customers who do not Switched
Level of incremental sales is associated with introducing the new pizza=$20 million-0.5*$8 million
Level of incremental sales is associated with introducing the new pizza=$16 million.
The June 30, 2021, year-end trial balance for Askew company contained the following information: Account Debit Credit Inventory, 7/1/2020 33,200 Sales revenue 392,000 Sales returns 13,200 Purchases 252,000 Purchase discounts 7,200 Purchase returns 11,200 Freight-in 19,400 In addition, you determine that the June 30, 2021, inventory balance is $41,200. Required: Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2021.
Answer:
Cost of Goods Sold: $245,000
Explanation:
Cost of Goods Sold refers to the direct costs that are incurred when producing the goods sold by a particular company. It includes many costs such as beginning inventory, purchases, purchase returns, discounts on purchases, freight inwards and ending inventory. COGS is also referred to as cost of sales.
Freight inwards are any transportation costs that are incurred when bringing in purchases, hence this is added to purchases. Purchase returns are deducted since they are being returned and hence not a cost. Purchase discounts are also deducted. Ending inventory is the amount of inventory which is remaining and has not been used, thus, this too is deducted.
The calculation for COGS is provided below step-by-step:
1. Beginning inventory : $33200
2. Purchases : $252000
3. Purchase returns : ($11200)
4. Purchase discounts : ($7200)
5. Freight inwards : $19400
6. Ending inventory : ($41200)
Cost of Goods Sold = $245,000
The cost of goods sold for the Askew Company for the year ending June 30, 2021 is $245,000.
Calculation of the cost of goods sold:
Since
Beginning inventory : $33200
Add: Purchases : $252000
Less: Purchase returns : ($11200)
Less: Purchase discounts : ($7200)
Add: Freight inwards : $19400
Less: Ending inventory : ($41200)
Cost of Goods Sold = $245,000
Hence, The cost of goods sold for the Askew Company for the year ending June 30, 2021 is $245,000.
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Which firm is likely to see its profits reduced the most in a recession: an automobile producer, a manufacturer of boots and shoes, or a janitorial service? Which is likely to see its profits reduced the least? Explain.
Automobile producer would see profit reduced the most and janitorial services would be least affected.
Explanation:
Recession is one of the phases of the trade cycle. In this phase of the trade cycle, there is downfall in the production, consumption, investment and saving in the economy. The growth rate of the economy sees a downfall in this phase.
Among the examples given here, automobile producer is the firm which would be one of the most affected company during the time of recession because it is not something essential but luxury.
An automobile producer is most likely to see reduced profits during a recession, while a manufacturer of boots and shoes is the least likely. The janitorial service may experience a moderate impact. Recessions cause cyclical unemployment, whereas industry changes or relocations lead to structural unemployment.
Explanation:The firm likely to see its profits reduced the most in a recession is the automobile producer, since automobiles are expensive, durable goods that consumers often delay purchasing during economic downturns. On the contrary, a manufacturer of boots and shoes is likely to see the least reduction in profits as these items are essential and need to be replaced periodically irrespective of the economic climate. Lastly, a janitorial service may experience a moderate impact since cleanliness is essential for health and safety, yet businesses might reduce the frequency of services to cut costs.
Recessions lead to job losses, creating cyclical unemployment. For example, landscapers laid off due to a drop in new housing construction during a recession is a classic instance of this type of unemployment. Coal miners laid off due to new EPA regulations represent structural unemployment, as the industry changes in response to new legislation. The financial analyst moving to Arizona is an example of frictional unemployment, arising from normal labor turnover and job-seeking activities. Printers and factory workers who lose their jobs due to changing industry conditions or relocation of production are also examples of structural unemployment.
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Which of the following is the correct formula for measuring an efficiency variance? A. Efficiency Variance = (Actual Quantity times Standard Quantity) / Standard Cost B. Efficiency Variance = (Actual Quantity / Standard Quantity) times Standard Cost C. Efficiency Variance = (Actual Quantity minus Standard Quantity) times Standard Cost D. Efficiency Variance = (Actual Quantity + Standard Quantity) minus Standard Cost
The correct formula for measuring an efficiency variance is (Actual Quantity - Standard Quantity) * Standard Cost. It compares the actual quantity of inputs used with the standard quantity and multiplies the difference by the standard cost.
Explanation:The correct formula for measuring an efficiency variance is:
Efficiency Variance = (Actual Quantity - Standard Quantity) * Standard Cost
The efficiency variance compares the actual quantity of inputs used with the standard quantity of inputs that should have been used, and then multiplies the difference by the standard cost of the inputs.
For example, if the actual quantity of materials used is higher than the standard quantity, the efficiency variance would be negative, indicating that more materials were used than expected.
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You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of treasury bills that pay 5% and a risky portfolio, P, constructed with 2 risky securities X and Y. The optimal weights of X and Y in P are 60% and 40% respectively. X has an expected rate of return of 14% and Y has an expected rate of return of 12%. To form a complete portfolio with an expected rate of return of 11%, you should invest __________ of your complete portfolio in treasury bills. 19% 26.8% 36% 50%
Answer:
You should invest 26.8% of your complete portfolio in treasury bills to earn an expected rate of return of 11% on a complete portfolio.
Explanation:
To begin with, first we have to calculate the return of P portfolio consisting of X and Y securities.
Expected Return (ER) = (Weight of X*Return of X) + ( Weight of Y*Return of Y)
ER = (0.6*0.14) + (0.4*0.12)
ER = 0.084 + 0.048
ER = 0.132 or 13.2%
Now, we have to compute the weight of treasury bills in complete portfolio:
ER = (Weight of TB*Return of TB) + (Weight of P*Return of P)
ER = (wTB * rTB) + (wP * rP)
ER= (wTB * rTB) + rP * (1-wTB)
0.11 = (wTB * 0.05) + 0.132*(1-wTB)
0.11= 0.05wTB + 0.132 - 0.132wTB
0.11 = -0.082wTB + 0.132
Let's make the Weight of Treasury Bills subject:
0.082wTB = 0.132 - 0.11
0.082wTB = 0.022
wTB = 0.022/0.082
Weight of Treasury Bills = 0.268 or 26.8%
Russell Retail Group begins the year with inventory of $64,000 and ends the year with inventory of $54,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 $ 219,000 Purchase on May 6 139,000 Purchase on September 8 169,000 Purchase on December 4 419,000
Answer:
IDEK
Explanation:
In 2009, 1 U.S. dollar purchased 1600 Korean won and in 2013 it purchased 800 Korean won. How much did 1000 Korean won cost in U.S. dollars in 2009 and 2013? Group of answer choices 2009: .84 dollars, 2013: 1.09 dollars 2009: .62 dollars, 2013: 1.25 dollar 2009: .83 dollars, 2013: 1.12 dollars 2009: .71 dollars, 2013: 1.11 dollars PreviousNext
Answer: 2009: .62 dollars, 2013: 1.25 dollar
Explanation:
In 2009, the US Dollar Exchanged against the Korean Won was something like,
= $1 : 1,600 Won
That means that to get how much USD that 1,000 Won can buy we,
= 1,000/1,600
= $0.62
In 2013, the US Dollar Exchanged against the Korean Won was something like,
= $1 : 800 Won
This shows that the Won became stronger so we can expect to buy more dollars,
Calculating the amount of USD that 1,000 Won can buy we do the following,
= 1,000/800
= $1.25
So the correct option is $0.62 in 2009 and $1.25 in 2013.
A kidnapper takes a hostage and demands that the hostage pay ransom. They then play the following game in extensive form. The hostage may pay the ransom or not. Following that, the kidnapper may kill the hostage or release him. If the hostage is released, he may report the kidnapping to the police or not report it. The kidnapper has utility +5 for getting paid, -2 for having the kidnapping reported, and -1 for killing the hostage. These utilities are additive (for instance, getting paid but also reported is worth 5-2 = 3). Utilities for the hostage are -10 for getting killed, -2 for paying, +1 for reporting, and these are also additive.
Draw the game tree for this game, labeling choosers, choices and payoffs. Find the natural outcome of the game. [It should be the second worst outcome for both players.)
Suppose the hostage could make a convincing threat or promise. What should it be? What is the new outcome? Who benefits?
Suppose that after the hostage makes the convincing threat or promise in c), the kidnapper can make a threat or promise. What should it be? What is the new outcome? Who benefits?
If the hostage is not able to make a convincing threat or promise, but the kidnapper can, what should it be and what is the result?
Suggest some real-life ways that any or all of the above threats and promises might be made credible.
Answer:
Explanation:
we would be answering this question by presenting the data in a spreadsheet file (which is a computer program that is used for accounting purposes as well as recording of data using columns and rows which information can be entered in such a useful way for decision making, data analyzing and for record keeping.)
Microsoft Excel would be the spreadsheet application that would be used in answering this question, kindly check the attached image to see the presented solution to the question above.
Jensen will retire on his 65th birthday. He wants to withdraw $150,000 from his reti account on each birthday from his 66th to his 85th to cover his living expense. need in his retirement account on his 65th birthday? Assume interest rate is 10%.
A. 1,297,304
B. 1,254,738
C. 8,291,250
D. 1,277,034
Answer:
The correct answer is option (d).
Explanation:
According to the scenario, the given data are as follows:
Time period ( Nper) = 20 years
Interest rate (rate) = 10%
Payment (pmt) = $150,000
So, we can calculate the Present value by using financial calculator.
The attachment is attached below.
So, Present Value = $1,277,034.56
The amount that needs to be on 65th birthday is 1,277,034.
Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $ 1.06 billion. The country collected $ 1.05 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance
Answer:
The formula to calculate the Budget Balance is
Government Income - Government Expenditure
in this case
$1.05 billion - $1.06 billion = - 0.01 billion or - $100 million
Explanation:
A budget balance is reached when a government expenditures are equal to it's income.
In this case, since the country's only source of income it is slightly less than than what is required to run the government, it has a budget deficient.
Since the country does not export or trade with outside countries, the government will need to take out a loan to make up for this deficient.
AIE Industries plans to purchase a new delivery truck for $250,000. The company has been quoted an annual rate of 6.5 percent with discount interest and a compensating balance of 2 percent.
a. How much will AIE have to borrow?
b. What is the effective rate on this loan?
c. If AIE can convince the bank to remove the compensating balance requirement, what is the effective rate?
Answer:
a. AIE will have to borrow $25,5102.04
b. The Effective Rate on this Loan is 6.63%
c. If AIE can convince the bank to remove the compensating balance requirement the effective rate is 6.50%
Explanation:
In order to calculate how much will AIE have to borrow we would have to use the following formula:
Amount to be borrowed = Cost of Truck / (1 - Compensating balance)
Amount to be borrowed = $250000 / (1 - 0.02)
a. Amount to be borrowed = $25,5102.04
In order to calculate the effective rate on this loan we calculate the following:
Effective Rate on this Loan = Interest / Amount received
Effective Rate on this Loan = 16581.63 / 250000
b. Effective Rate on this Loan = 6.63%
c. If AIE can convince the bank to remove the compensating balance requirement the Effective rate = annual rate, hence the effective rate is 6.50%
AIE will need to borrow approximately $255,102 at an effective interest rate of 6.63%. If the compensating balance requirement is removed, the effective rate will be 6.5%.
Explanation:a. AIE will need to borrow the amount of the truck ($250,000) divided by 1 minus the compensating balance rate (2%). So, the company will have to borrow $250,000 / (1 - 0.02) = $255,102.
b. The effective interest rate is the discount interest divided by (1 - compensating balance), which is 6.5% / (1 - 0.02). The effective rate is thus approximately 6.63%.
c. If the compensating balance requirement is removed, the effective rate will be the same as the quoted rate, which is 6.5%%.
Learn more about Effective Interest Rate here:https://brainly.com/question/33508867
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Bonnie and Clyde each own one-third of a fast-food restaurant, and their 13-year-old daughter owns the other shares. Both parents work full-time in the restaurant, but the daughter works infrequently. Neither Bonnie nor Clyde receives a salary during the year, when the ordinary income of the S corporation is $180,000. An IRS agent estimates that reasonable salaries for Bonnie, Clyde, and the daughter are $30,000, $35,000, and $10,000, respectively. What adjustments would you expect the IRS to impose upon these taxpayers?
Answer:
Net income = $180,000
- salaries = ($30,000 + $35,000 + $10,000 = $75,000)
adjusted net income = $105,000
the adjusted net income must now be divided equally between the 3 partners:
Bonnie: $35,000Clyde: $35,000daughter: $35,000Their yearly gross income:
Bonnie: $35,000 + $30,000 = $65,000Clyde: $35,000 + $35,000 = $70,000daughter: $35,000 + $10,000 = $45,000total taxable income = $65,000 + $70,000 + $45,000 = $180,000
Final answer:
The IRS may adjust Bonnie and Clyde's salaries based on reasonable compensation guidelines, potentially reducing the S corporation's taxable income. They may also face penalties and interest if their salaries are deemed unreasonably low.
Explanation:
The IRS may adjust the taxpayers' salaries based on reasonable compensation guidelines. In this case, Bonnie and Clyde's salaries may be increased to match the estimated reasonable salaries of $30,000 and $35,000 respectively. If their salaries are adjusted, it would reduce the ordinary income of the S corporation, resulting in lower taxable income.
In addition, the IRS may also impose penalties and interest if they determine that the salaries were unreasonably low or not in line with industry standards. This is to prevent taxpayers from manipulating their income by taking a low salary and receiving a larger share of the profits as distributions.
It's important for Bonnie and Clyde to ensure that their salaries are set at a reasonable level to avoid any potential issues with the IRS.
Delivery of stock index futures a. is never made. b. requires delivery of 1 share of each stock in the index. c. is made by a cash settlement based on the index value. d. is made by delivering 100 shares of each stock in the index.e. is made by delivering a value-weighted basket of stocks.
Answer: c. is made by a cash settlement based on the index value
Explanation:
Stock index futures are settled by cash sort of like index options.
This means that there is no delivery of the actual underlying asset at the end of the contract.
The cash / profit is determined by the starting and ending prices of the futures contract.
A firm just paid a dividend of $6 per share. Next year the dividend is expected to grow 8 percent, thereafter 10 percent forever. The present share price is $36. Calculate the required rate of return on the firm's equity. Express the response in decimal format
Answer:
26%
Explanation:
MV=Do(1+g)/(Ke-g)
Where MV is market value=$36
Do is current dividend per share=$6
g is growth rate=8%
Ke=?
By putting above values we get;
36=6(1+.08)/(Ke-.08)
36Ke-2.88=6+.48
36Ke=2.88+6+.48
Ke=9.36/36
Ke=26%
BobCat Inc. has cash of $22,000, accounts receivable of $78,000, inventory of $62,000, prepaid insurance 8,000 and land of $90,000. The company has only one current liability account- salary payable of $64,000, what is working capital
Answer:$106000
Explanation:
Calculation of current assets
Cash 22000
Accounts receivable 78000
Inventory 62000
Prepaid insurance 8000
Total current assets 170000
Given
Current Liabilities = 64000
Working capital = current assets - current liabilities
=170000 - 64000
Working capital of Bob Cat Inc is $106000
Here land is a fixed asset hence cannot be included in working capital. Current assets are the assets which can be liquidated quickly into cash. Current liabilities are the liabilities which will be paid of immediately.
Josie works for an organization with a matrix structure and reports to the head of the finance department and to the leader of her current project team. She experiences ____________ because these two managers have different priorities and she cannot meet both sets of objectives.
Answer:
Role conflict
Explanation:
Your study partner argues that the distinction between the government’s budget deficit and debt is similar to the distinction between consumer savings and wealth. He also argues that if you have large budget deficits, you must have a large debt. In what ways is your study partner correct and in what ways is he incorrect?
Answer:
Your study partner is correct that the distinction between government’s budget deficit and debt is similar to the distinction between consumer savings and wealth.
Savings and deficits are actions that take place over time, they dont happen overnight . When any government is spending more than it receives in tax revenue in a particular time period, this governmemt will be running a budget deficit. On the other hand, when consumers spend less than their disposable income in a particular time period, they are saving.
However, both debt and wealth are measured at one point in time. When the government runs a budget deficit, the deficit is almost always financed by borrowing, which adds to its debt. This is also Similar to consumers who accumulate wealth by saving.
We can also say that your study partner is wrong in that the government can run a large budget deficit and have a small debt if it hasn’t run large deficits in the past.
Explanation:
See answer for the detailed explaination