In 2014, GoPro spent \$27.5$27.5 million on capital expenditures, experienced an increase in net working capital (including cash) equal to \$239$239 million, and realized \$18$18 million in depreciation. What is GoPro's unlevered free cash flow for 2014? *Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

Answer:

The production of the clocks should be continued, as buy option will increase the cost for the company by 48,000

Explanation:

Current escenario

100 DM x 1,200 = 120,000

140 DL x 1,200 = 168,000

80 VO x 1,200 = 96,000

Fixed Cost 150 x 1,200 = 180,000

Total cost = 564,000

420 x 1,200 = 504,000

60% fixed cost unavoudable 180,00 = 108,000

Total Cost 612,000

make 564,000

buy (612,000)

total cost saving (48,000)

Final answer:

An incremental analysis to compare making clocks in-house against buying them shows the costs associated with each option, with consideration to avoidable costs. Making the clocks in-house involves direct materials, direct labor, variable overhead, and a portion of fixed overhead costs. Buying results in a flat cost per unit from the supplier.

Explanation:

The student's question involves conducting an incremental analysis to compare the cost of making clocks internally versus buying them from an external supplier. This is a common question in business courses, particularly those focused on managerial accounting and cost management. To make an informed make-or-buy decision, one must consider not only the direct costs but also the opportunity costs and potential savings on avoidable costs.

To calculate the incremental cost of making the clocks in-house, we consider the total cost for in-house production and subtract any costs that can be avoided if production is outsourced. The fixed overhead is the only avoidable cost noted, equaling 40% of $150. The remaining costs are direct materials, direct labor, variable overhead, and 60% of fixed overhead, which are inevitable. For the cost of buying clocks, we only need the quoted price from the supplier.

Here's the make-or-buy analysis:

Make:

Direct materials: $100 x 1,200 = $120,000

Direct labor: $140 x 1,200 = $168,000

Variable overhead: $80 x 1,200 = $96,000

Non-avoidable fixed overhead (60% of $150 x 1,200) = $90,000

Buy:

Cost of buying clocks: $420 x 1,200 = $504,000

By comparing these calculations, Notson, Inc. can decide whether to make or buy the commercial clocks based on cost considerations.

Answer: Option(C), (D) and (E) will increase demand for pretzels.

Explanation:

(A) If mustard is a complementary good for pretzels, the price of mustard increases as a result demand for pretzel decreases. Complementary goods are the goods with negative cross price elasticity of demand. This means that as the price of one good increases as a result demand for another good decreases.

(B) If pretzels are inferior goods, as the income increases, this lowers the demand for pretzels. In inferior goods case, income and demand are inversely related with each other.

(C)  If mustard is a complementary good for pretzels, the price of mustard decreases as a result demand for pretzel increases.

(D) If potato chips are substitute goods for pretzels, the price of potato chips increases as a result demand for pretzel increases. Substitute goods are the goods with positive cross price elasticity of demand. This means that as the price of one good increases as a result demand for another good increases.

(E)  If pretzels are normal goods, as the income increases, this increases the demand for pretzels. In normal goods case, income and demand are directly related with each other.

In the market for pretzels, the price of complementary goods like mustard can impact demand. If the price of mustard increases or decreases, it will influence the demand for pretzels. Similarly, if pretzels are normal goods and income increases, the demand for pretzels will likely increase.

In the market for pretzels, the price of a complementary good like mustard can affect demand. If the price of mustard increases, it would decrease the demand for pretzels because people tend to consume these two goods together. Similarly, if the price of mustard decreases, it would increase the demand for pretzels as people would be more inclined to buy both. Therefore, option A, "If mustard is a complementary good for pretzels, the price of mustard increases," and option C, "If mustard is a complementary good for pretzels, the price of mustard decreases," will both increase demand for pretzels.

Option D, "If potato chips are substitute goods for pretzels, the price of potato chips increases," is incorrect. If potato chips are a substitute for pretzels and the price of potato chips increases, it would likely lead to an increase in the demand for pretzels as people might switch from potato chips to pretzels due to the price change.

Lastly, option B, "If income increases and pretzels are inferior goods," and option E, "If income increases and pretzels are normal goods," both have the potential to increase demand. If pretzels are inferior goods, an increase in income might lead people to demand more expensive alternatives, causing a decrease in the demand for pretzels. Conversely, if pretzels are normal goods, an increase in income would likely increase the demand for pretzels as people would have more purchasing power.

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Answer:

Present Value of Investment Opportunity = $95,096

Explanation:

Net cash inflow = Cash inflow - cash outflow

Given that net cash inflow = $30,000 per month for 4 years

Rate of return = 10%

Present Value = [tex]\frac{1}{(1+0.1)^{1} } X $30,000 + \frac{1}{(1+0.1)^{2} } X $30,000 + \frac{1}{(1+0.1)^{3} } X $30,000 + \frac{1}{(1+0.1)^{4} } X $30,000[/tex]

= $27,272.72 +$24,793.38 + $22,539.44 + $20,490.40

= $95,096 (rounded off to nearest dollar)

Present Value of Investment Opportunity = $95,096

Answer:

Job training allows employers to hire people who are not specialists and to help make them productive sooner. With training, a person can integrate into the company faster because they do not have to discover how to do something. It is less frustrating for everyone, when there is a set of directions and expectations for the new hire.

Answer:

Contribution margin ratio is 45%, in value it is $378,000.00

Explanation:

Contribution margin ratio is sales - (direct costs + variable costs )

Here sales = $840,000.00

Direct costs = $420,000.00

Variable costs = $42,000.00

Thus $840,000.00 - ($420,000.00 + $42,000.00) = $378,000.00

As a percentage of sales = $378,000.00 / $840,000.00 = 45%

Fixed cost is of no relevance for computing contribution margin.

Also contribution margin is generally calculated as a percentage of sales value.

Contribution margin = 45% or $378,000.00

Concord Corporation's contribution margin ratio is calculated by subtracting the total variable costs from sales and dividing by sales. The total variable costs are $462,000, and the sales are $840,000. The contribution margin ratio is 45%.

To calculate Concord's contribution margin ratio, we need to subtract the total variable costs from the sales and then divide by the sales. The total variable costs include direct materials, direct labor, and other variable costs.

First, we calculate the total variable costs:

Next, we calculate the contribution margin by subtracting the total variable costs from the sales:

Finally, we calculate the contribution margin ratio:

Therefore, Concord’s contribution margin ratio is 45%.

Answer:

If we assume that in year 2018 , Bloomfield had same amount of percentage of ownership in Clor as they had in 2017 then in 2018 the amount of percentage that Bloomfield will held in Clor would be 28.45%.

Explanation:

Here it is given that we are to assume that Bloomfield accounts for its investment in Clor under the equity method and given investment in 2017 was $150,150 and investment in 2018 is $165,800.

So for calculating the amount of percentage we can assume that the percentage is X, and here we will add amount in 2017 with X% of ( net income - dividend declared ) to get the total amount in 2018.

$150,150 + X% ( $75,900 - $20,900 ) = $165,800

$150,150 + X% ( $55,000 ) = $165,800

X% (55,000) = $165,800 - $150,150

X% = 15,650 / 55,000

X% = .28454 ( MULTIPLYING BY 100 )

X% = 28.45

Answer: MULTINATIONAL COMPANIES

Explanation: Companies operating their business in two or more countries other than  the country in which they are incorporated  are called multinational companies. In this question green cleaners is based in america but have operations in Poland and Spain also , thus, it would be a multinational enterprise.

Answer: the correct answer is these traits will help the manager persevere through culture shock.

Explanation:

Culture shock.- the feeling of disorientation experienced by someone who is suddenly subjected to an unfamiliar culture, way of life, or set of attitudes.

Final answer:

The HR VP's advice to use psychological testing for flexibility and conscientiousness complements the need for strong financial skills in a manager leading operations in India, ensuring cultural sensitivity and effective cross-cultural management.

Explanation:

The recommendation by the HR vice president to use psychological testing for identifying highly flexible and conscientious candidates supports the executive decision to maintain the company culture abroad while ensuring the successful integration of the managerial operations in India. Psychological testing can help determine whether a candidate possesses not only the required financial skills but also the adaptability and conscientiousness necessary for operating effectively in a different cultural environment. The importance of taking local customs and preferences into account, as in the example of Convergys adapting their cafeteria plans to suit Indian food preferences, is critical for the success of international operations.

Answer: EPS =$1.16

Retained earnings = $61,000

Explanation: A. As we know that,

[tex]= EPS\:=\:\frac{Net\:income-preferred\:dividends}{average\:shares\:outstanding}[/tex]

and,

Net income = EBIT(1-Tax rate)

                  = $436,000(1-40%)

                  = $261,600

now,

[tex]= EPS\:=\:\frac{\$261,600-\$64,000}{170,000shares}[/tex]

so,

EPS = $1.16

.

B. computing retained earnings :-

retained earnings = (net income-preferred dividends)-     (dividends)*(common share)

                              = (261,600-64,000)- (0.80)(170,000)

                              = $61,000

In 2015, Everdeen Mining, Inc., had an earnings per share (EPS) of approximately $1.16 and, if the firm paid common stock dividends of $0.80 per share, the retained earnings would amount to $61,600.

To calculate Everdeen's 2015 earnings per share (EPS), you need to first subtract the preferred stock dividends from the company's net profit after tax. The company's profit after tax is the net profit before tax, which is $436,000, reduced by the rate of tax, which is 40%. So the net profit after tax is calculated as $436,000 x 0.60 = $261,600. Next, subtract the preferred stock dividends of $64,000 from $261,600, which results in $197,600. Then, to get the EPS, divide this by the number of outstanding common shares, which in this case is 170,000. This calculation yields an EPS of about $1.16.

To answer the part of your question regarding retained earnings, if the firm paid common stock dividends of $0.80 per share, the total payments would amount to $0.80 x 170,000 shares = $136,000. The retained earnings, or the net income kept within the company, would then be calculated by subtracting these payments from the net profit attributable to common shareholders. So, in this case, retained earnings would be $197,600 - $136,000 = $61,600.

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Answer:

TIE 6.26238

Explanation:

Times Interest Earned:

[tex]\frac{EBIT}{Interest \: Expense} = 6.26238[/tex]

EBIT = earnings before Interest and Taxes

[tex]\frac{13,652}{2,180} = 6.26238[/tex]

Final answer:

The times interest earned for Verizon Communications, Inc. for the year 2014 is calculated by adding the Pretax Income and Interest Expense and then dividing by the Interest Expense. The correct answer is 7.26, which means option C is correct.

Explanation:

To compute the times interest earned for Verizon Communications, Inc. for the year 2014, we use the following formula:

Times Interest Earned = (Pretax Income + Interest Expense) / Interest Expense

Using the data provided:

Pretax Income for 2014 = $13,652 million

Interest Expense for 2014 = $2,180 million

Now, let's calculate:

Times Interest Earned = ($13,652 million + $2,180 million) / $2,180 million

Times Interest Earned = $15,832 million / $2,180 million

Times Interest Earned = 7.26

Therefore, the correct answer is C. 7.26.

Answer:

BEP in units = 55,000 umbrellas

Explanation:

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

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

10 - 5 = 5 CM per unit

Each units generates 5 dolalrs of contribution to pay the fixed cost and generate earnigns after that.

275,000/5 = 55,000

To calculate the break-even point, you subtract the variable cost per unit from the selling price per unit, and then divide the fixed costs by this result. In this scenario, the umbrella company needs to sell 55,000 umbrellas to break even.

In order to find out how many units a company should sell to break even, we need to understand the concept of break-even point. The break-even point (BEP) is the point at which total cost (fixed costs + variable costs) equals total revenue. In your case, fixed costs are $275,000, the cost to produce each umbrella (variable cost) is $5 and each unit is being sold for $10.

In economics, the equation to calculate the break-even quantity is:

Break Even Quantity = Fixed Costs / (Selling Price per unit - Variable Cost per unit)

Plugging the given values into the equation, we get:

Break Even Quantity = $275,000 / ($10-$5) = 55,000 umbrellas

Hence, the firm needs to sell 55,000 umbrellas in order to cover its costs and start earning profit.

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Answer:

The owner's business profit is $20,000 and the economic profit is -$5000

Explanation:

First of all the owner's business profit can also be termed as the accounting profit, which means the total amount of revenue that a firm generates after paying off the explicit cost of the business which usually includes purchase of raw material or the wages of employee.

Economic profit is almost same as owner's business profit with only difference being that in the calculation of economic profit, the total cost of production is taken, which means that both explicit and implicit cost are taken it to account. Implicit cost means the opportunity cost that a firm losses by choosing one avenue over the other.

OWNERS BUSINESS PROFIT = TOTAL REVENUE - EXPLICIT COST

                                                 = $50,000 - $30,000

                                                 = $20,000

ECONOMIC PROFIT   = TOTAL REVENUE - EXPLICIT COST- IMPLICIT COST

    ( IMPLICIT COST = OPPORTUNITY COST)

Here the opportunity cost would be $25,000 because business owner is now working for someone else, losing the opportunity to earn more from his business.

ECONOMIC PROFIT = $50,000 - $30,000 - $25,000

                                  = -$5000

The small business owner's business profit, which is the accounting profit, amounts to $20,000, while the economic profit, considering both explicit and implicit costs, is a loss of $5,000.

The small business owner has an accounting profit of $20,000, which is calculated by subtracting the explicit costs from the total revenues ($50,000 - $30,000). To calculate the economic profit, you must also subtract the implicit costs of the owner not working elsewhere. This includes the salary the owner could have earned, which is $25,000. So, the economic profit is the accounting profit minus the implicit costs ($20,000 - $25,000), which equals -$5,000.

Answer:

b. how price changes affect demand for a particular consumers.

Explanation:

A firm's supply schedule shows how price changes affect demand for a particular consumer.

The supply schedule of a firm shows the relationship between market prices and the quantity of goods or services that the firm is willing and able to supply. It demonstrates how price changes impact the firm's supply.

A firm's supply schedule is an economic chart that outlines how much of a good or service a firm is willing and able to supply at various prices. It demonstrates the relationship between the product's price and the total quantity supplied by the firm.Therefore, a supply schedule essentially illustrates how price changes affect supply for a market. When prices increase, firms tend to supply more because it becomes more profitable to produce the good or service. Conversely, if prices decrease, firms may supply less as it is less profitable.

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Answer:

The correct option is e. all of the above.

Explanation:

Everyone wants to earn more and more. Many options are available. Like - doing side business in terms of renting a property, commission income. etc. Following are the reasons through which a person can improve his income.

A. Increased productivity : As by business point of view, or by working as a employee in any company, the productivity is matters. Almost every organization provides many incentive schemes, so that the employees or workers get motivated and do their best.

As more and more productivity increase, your earning capacity is also increase.

Thus, it shows a direct relationship

B. Investing in human capital : Here human capital means providing services in terms of education types, recruitment and selection, etc.

Through appointing the right candidate for right position helps the company to increase their productivity which ultimately helps the person to increase his income.

The better you perform, the better you can earn .

Thus, it shows a positive relationship.

C. Being born into a wealthy family : By which class the person belongs plays a vital role in improving his income. Here class means - Poor class, Middle class and rich class.

In the given case, the person born in wealthy family, so automatically the chances of increase his income is 100%.

Thus, it shows a direct relationship.

D. Being highly motivated to succeed : In this case, motivation plays a vital role to get succeed. Without motivation, no one can succeed.

Through encouraging peoples who are working in an organization, the chances of productivity is increase which helps the person to earn more and helps the company to achieve its goals and objectives in efficiently and effective manner.

Thus, it shows a positive relationship.

Hence, by giving above explanations, the correct option is e. all of the above.

Answer: Janice believe the inflation rate will be over 4%.

Explanation:

The expected return is 18% but Janice is thinking the return will be 14% because she is discounting the inflation which is 4%. She expects to receive 14% net rate (18%-14%= 4%).

Answer:

Alternative of cleaning and shipping is better as loss value is less.

Relevant cost of this alternative is $23,000 incurred for cleaning and shipping.

Explanation:

Evaluating both the proposals

In case the goods are sold as it is then net cost/ loss = Carrying value of inventory - Sales Revenue

= $125,000 - $45,000 = $80,000

In case the goods are cleaned and shipped then

Total cost = $125,000 + $23,000 = $148,000

Revenue = $80,000

Net loss/ cost = $148,000 - $80,000 = $68,000

Thus Since the loss value is less i alternative 2 that is of cleaning and shipping, it shall be chosen.

The relevant cost of that alternative is $23,000 incurred in cleaning and shipping.

Final answer:

For Cornerstone, Inc., cleaning and shipping the damaged goods is the more desirable alternative, as it results in a higher net revenue of $57,000 compared to selling the goods 'as is' for $45,000. The relevant cost for the more desirable alternative is $23,000.

Explanation:

To determine which alternative is more desirable for Cornerstone, Inc., we need to compare the net proceeds from each option. Selling the goods 'as is' would result in a revenue of $45,000. However, if they choose to clean and ship the goods, which costs $23,000, the goods could then be sold for $80,000. To calculate the net revenue of the second option, we subtract the cost of cleaning and shipping from the sales amount.

The calculation for selling 'as is':
Net revenue = Revenue from sale - No additional costs
Net revenue = $45,000 - $0
Net revenue = $45,000

The calculation for cleaning and shipping then selling:
Net revenue = Revenue from sale - Cost of cleaning and shipping
Net revenue = $80,000 - $23,000
Net revenue = $57,000

The second option provides a higher net revenue; therefore, it is the more desirable alternative. The relevant cost for this alternative is the cost of cleaning and shipping, which is $23,000.

Answer:

Big Bart should be continued.

The differential income is -15,900 This means the net income will decrease by 15,900 if discountinued. This is inconvinient to Lisah, Inc. It is better to continue with the Big Bart line.

Explanation:

Current scenario

sales 201,000

variable cost 175,000

contribution 26,000

fixed cost    29,800

net loss    3,800

If bart discontinued scenario:

contribution margin 0

fixed cost 19,700

net loss 19,700

differential income Alternative Income - Current Income

-19700 - (-3,800)  =-19,700 + 3,800 =  -15,900

Answer:

1 hour working on problems and 3 hours reading

Explanation:

Let's find the solution. From the following statement:

“working on 15 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour.” we can develop the following expression:

For raising the score: 15 problems = 1 hour reading

Because we do not know how much time each problem takes, She should have spent 1 hour working on problems and 3 hours reading (maximum).

For giving an example, let's consider you spent 20 minutes on each problem, then in 1 hour you would have resolved only 3 problems. That is way, she must spend the maximum of hours reading.  

Answer:

a. Net income = $1,200,000

b. ROA = 9.52%

c. ROE = 17.14%

Explanation:

a. Since in the given question, the profit margin is 8 percent.

So, the net income = Sales × Profit margin

                               = $15,000,000 × 8%

                               = $1,200,000

Hence, the net income is $1,200,000

b. The formula for Return on Assets (ROA) is shown below:

= Net income ÷ Total Assets

= $1,200,000  ÷ $12,600,000

= 9.52%

Thus, the Company ROA is 9.52%

c.  The formula for Return on Equity (ROE) is displayed below:

= Net income ÷ Total Equity

Since the total assets and total debt is given so we can calculate the total equity by applying accounting equation which is equals to

Total assets = Total liabilities + Total equity

$12,600,000  =  $5,600,000 + Total Equity

$12,600,000 - $5,600,000 = Total Equity

Total Equity is $7,000,000

So, the total equity is $7,000,000.

Now, the ROE is

= Net income ÷ Total Equity

= $1,200,000 ÷ $7,000,000

= $17.14 %

Thus, the total equity is  $17.14 %

Final answer:

DTO, Inc.'s net income is $1,200,000, its Return on Assets (ROA) is 9.52%, and its Return on Equity (ROE) is 17.14%, calculated based on given figures of sales, total assets, total debt, and profit margin.

Explanation:

To answer the student's question regarding DTO, Inc., we'll conduct a series of calculations based on the given figures: sales of $15 million, total assets of $12.6 million, total debt of $5.6 million, and a profit margin of 8 percent.

a. What is the company's net income?

To find the net income, we multiply the total sales by the profit margin:

$15,000,000 (sales) × 8% (profit margin) = $1,200,000.

b. What is the company's ROA?

To calculate Return on Assets (ROA), we divide the net income by total assets:

$1,200,000 / $12,600,000 = 9.52%.

c. What is the company's ROE?

The Return on Equity (ROE) is calculated by dividing net income by shareholders' equity. Shareholders' equity is total assets minus total debt:

$12,600,000 (total assets) - $5,600,000 (total debt) = $7,000,000 (shareholders' equity).

$1,200,000 / $7,000,000 = 17.14%.

Answer: The cost of the inventory reported in the balance sheet according to:

A. The concept of absorption costing is 289440.

B. The concept of variable costing is 264480.

Explanation: A. The concept of absorption costing charges to the cost of finished products: direct materials, direct labor, factory fixed overhead and factory variable overhead. We must calculate the cost of inventory by multiplying the number of units produced by unit manufacturing costs.

Direct materials: 4800 x $ 30.70 = 147360

Direct Labor: 4800 x $ 19.80 = 95040

Factory fixed overhead: 4800 x $ 5.20 = 24960

Factory variable overhead: 4800 x $ 4.60 = 22080

The total sum = 147360 + 95040 + 24960 + 22080 = 289440 is the inventory cost reported in the balance sheet.

B. The concept of variable costing charges only the variable elements at the cost of finished products: direct materials, direct labor and variable factory overhead. We must calculate the cost of inventory by multiplying the number of units produced by unit manufacturing costs:

Direct materials: 4800 x $ 30.70 = 147360

Direct Labor: 4800 x $ 19.80 = 95040

Factory variable overhead: 4800 x $ 4.60 = 22080

The total sum = 147360 + 95040 + 22080 = 264480 is the inventory cost that is reported in the balance sheet.

Answer:

a.) Income Statement for the year

Revenue

Operating Revenue  Net sales                                     $4,395,253

Less: Expenses

Cost of goods sold                                  ($2,821,455)

Operating expenses                                ($1,004,396)    ($3,825,851)

Earnings before Interest and Taxes                                  $569,402

Add: Other Income Interest revenue                                 $15,797

Earnings before Taxes                                                        $585,199

Less: Taxes                                                                          ($204,820)

Net earnings                                                                          $380,379

Earnings per share                                                                 $1.70

Number of shares = $380,379/$1.70 = 223,752 shares

b.) 1 Gross profit rate

= gross profit/Net sales

Gross profit = Net sales - Cost of goods sold = $4,395,253 - $2,821,555 = $1,573,698

Rate = $1,573,698/  $4,395,253 = 35.8045%

b.) 2 Net income as a percentage of net sales = ($380,379/$4,395,253) X 100 = 8.654%

b.) 3 Return on assets = (Net income/Average assets) X 100 = ($380,379/$2,575,000) X 100 = 14.772%

b.) 4. Return on equity for the year = (Net income/Average equity) X 100 = ($380,379/$1,917,000) X 100 = 19.8424%

Answer:

Note Receivable debit 27,000

Account receivable credit 27,000

Explanation:

It will write-off the account and transfer the balance of Pharoah Company account to the notes receivable to represent the change in the conditions.

The interest will be accrued once times past. They are not relevant at the moment of recording the note in the accounting.

The interest entries will be done at end of the month, end of the accounting cycle or at the moment of honor the note.

Answer: The explanation are as follows:

Explanation:

A LLC Operating Agreement is a legal report that blueprints the proprietorship and member obligations of your Limited Liability Company. This understanding enables you to set out the monetary and working relations among entrepreneurs ("individuals") and among members and supervisors.

A operating agreement sets out every one of the terms and conditions consented to by the individuals in a limited liability company (LLC). In this archive, each conceivable possibility is incorporated, to ensure the proprietors in a variety of circumstances.

Answer:

EV at different nodes:

At node 2,

EV = (0.4×8+0.6×15) - 5

= 12.2 - 5

= 7.2 million

At node 3,

EV = (0.4×10+0.6×20) - 8

= 16 - 8

= 8 million

If there is no action taken, then EV = 0

∵ EV is the highest at node 3,

∴Company would build a plant.

Answer:

If the dividend  increases,  the price of the stock will go up.

If the growth rate increases, the price of the stock will go up.

If required rate of return increases, the price of the stock will go down.

Explanation:

Price of stock from the constant growth formula is calculated as follows:

[tex]P0=\frac{D1}{ke-g}[/tex]

where P0 is the price of the stock today

           D1 is the dividend expected to be paid 1 year from today

           ke is the required rate of return

             g is the expected growth rate in dividends

if D1 increases, holding all other factors constant, P0 will increase.

if g increases, holding all other factors constant, P0 will increase.

if ke increases, holding all other factors constant,P0 will decrease.

If the dividend to be paid one year from today increases, the price of the stock will increase. If the growth rate of all future dividends increases, the price of the stock will increase. And if the required rate of return increases, the price of the stock will decrease.

According to the constant growth in dividends price formula, if the dividend to be paid one year from today increases and all other factors remain constant, the price of the stock will increase. If the growth rate of all future dividends increases and all other factors remain constant, the price of the stock will increase as well. And if the required rate of return increases and all other factors remain constant, the price of the stock will decrease.

Growth Rate of Future Dividends: An increase in the growth rate of all future dividends suggests that the company is expected to experience higher levels of profitability and expansion in the future. This positive outlook can lead to higher demand for the stock, which in turn can drive up its price.

Required Rate of Return Increase: If the required rate of return, also known as the discount rate or cost of equity, increases, it implies that investors now expect a higher return for holding the stock. This can lead to a decrease in demand for the stock, potentially causing its price to decrease.

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Answer:

Sales Revenue        1,218,000 1,218,000

Variable Cost                  852,600 487,200

Contribution margin   365,400 730,800

Fixed Cost                  292,320 657,720

Operating Income            73,080 73,080

Explanation:

Variable cost 852,600 / 42,000 units = 20.3 then - 8.7 for the decrease due to nex equipment = 11.6  Then 11.6 x 42,000 = 487,200

Answer:

This is an example of shoe leather cost of inflation.

Explanation:

The term inflation refers to the situation of continuous rise in the general price level.

The shoe leather costs refers to the cost and energy involved in the practices that people adopt in order to reduce the effect of inflation on their cash holdings, in case of high inflation.

When there is high inflation people do not prefer to hold high amount of cash as the value of cash corrodes because of rise in price level.

Answer:  options A, C and D apply to this situation.

Explanation:

A. There might be a perception with women and minorities that they could be treated inappropriately or could become a victim of harassment.

B. Mentoring is a way of motivating the employees and it works on every gender and community.

C. Senior level male managers may get false allegations of harassment from the subordinates due to various strict legislation passed. Thus, it could be a reason that male managers are reluctant for being a mentor.

D. Fear of losing superiority and power lies in all genders and communities thus it could also be reason that female managers were reluctant to be the mentor to new employees.

Prior mentoring programs likely failed due to senior male executives' apprehension about potential legal issues and senior female executives' concern about fostering competition. Therefore, options C and D are correct.

Possible reasons for failure:

The B/C ratio is calculated by determining the present value of benefits and costs, and then dividing the benefits by the costs. In this scenario, net annual benefits need to be calculated by subtracting disbenefits from benefits, and then both benefits and upkeep costs are transformed into their present value using the discount rate. The initial cost is added to the present value of upkeep costs to find the total present value of costs.

The student has asked to calculate the conventional B/C ratio (Benefit-Cost Ratio) for a river park investment using a given discount rate. The Benefit-Cost Ratio is a measure of the economic efficiency of a project and helps determine its feasibility. To calculate the B/C ratio, we determine the present value of benefits (PB) and the present value of costs (PC), then divide PB by PC.

The formula for the B/C ratio is:

B/C ratio = (Present Value of Benefits) / (Present Value of Costs)

Given information:

Initial cost (IC): $2,200,000

Annual upkeep costs (AUC): $120,000 per year

Annual benefits (AB): $300,000 per year

Annual disbenefits (ADB): $43,000 per year

Discount rate (r): 0.04 per year

Steps to calculate the B/C ratio:

Calculate the net annual benefits by subtracting the annual disbenefits from the annual benefits: Net AB = AB - ADB.

Calculate the present value of these net annual benefits over an assumed project lifetime. For this, we will need to make an assumption on the project's lifespan, as it's not given. For the purpose of this calculation, an infinite horizon can be assumed and the formula for the present value of a perpetuity can be used: PV of net AB = (Net AB) / r.

Calculate the present value of costs, which in this case is just the initial cost plus the present value of future upkeep costs, also calculated as a perpetuity: PV of AUC = (AUC) / r.

Add the initial cost to the PV of AUC to get the total present value of costs.

Divide the PV of net AB by the total PV of costs to find the B/C ratio.

The B/C ratio will help determine whether the river park project would yield more benefits than costs when considering the time value of money.

Answer:

accrued interest 175

Explanation:

[tex]rate \times \frac{days}{360} [/tex]

[tex]0.10 \times \frac{90}{360} = .025[/tex]

[tex]principal \times equivalent \: rate[/tex]

[tex]7000 \times .025 = 175[/tex]

First, we need to convert the annual rate to a 90days equivalent rate.

Then, we apply the equivalent rate to the principal.

If it is not expressed otherwise, use a 360 days year

Accuerd Interest

175