This is not a good idea as stocks are volatile.
Explanation:
One must never invest a lot of money in only one stock as the stocks are wont to change over time and gain or lose value.
If one wants a long term investment with at least some amount of safety they must be investing in stocks that grow consistently and then to break up the capital in small chunks and then invest them.
All of these can be invested in different shares in the market and then the shares would be more safe.
Even if one or two shares fall the others will be safe.
In his book The Optimum Quantity of Money, Milton Friedman talks about a helicopter dropping $2,000 over a community. The cash dropped by the helicopter gives the people in this community more money to spend. A tax cut also has the same effect: it increases disposable income. Suppose tax cuts, analogous to the helicopter drop, were proposed as a method to shift the labor demand curve to the right following a recession. How effective do you think this policy would be? A. Somewhat effective, but only to the extent that most of the tax cut is concurrently spent on domestic output, that multiplier effects occur, and crowding out is small. B. Very effective, since tax cuts are concentrated among wealthy individuals who usually spend all or most of the extra income. C. Not effective, since the majority of the tax cut is saved and any portion spent leads to complete crowding out. D. Not effective, since the tax cuts go to consumers rather than to the employers (demanders) of labor.
Answer:
A) Somewhat effective, but only to the extent that most of the tax cut is concurrently spent on domestic output, that multiplier effects occur, and crowding out is small.
Explanation:
First of all, the larger amount of money would increase the inflation rate since aggregate supply hasn't increased. The number of goods and services offered do not vary, then only thing that varies is the amount of disposable money.
The larger the multiplier, the larger the positive effect. The multiplier formula = 1 / MPS (marginal propensity to save). Even though inflation increases, still the economy is going to grow. That unless the local residents decide to purchase many imported goods. The larger the amount of imported goods purchased, the lower the positive effects.
This type of policy can be very effective under conditions where deflation or inflation rates are near 0 or even negative. Although high inflation is very bad for the economy, a small amount of inflation is always needed to boost economic growth. The healthy inflation is around 1.5 - 2% per year. This way salaries and wages can grow, pushing aggregate demand and supply.
Nick is a partial owner of Kinsey Electronics and Madison is a partial owner of Goodson Electric. Both Nick and Madison defaulted on personal loans. Madison’s creditors forced her to pay back the loans using money from Goodson Electric, but Nick’s creditors were not allowed to force Kinsey Electronics to pay back Nick’s loans. What is the difference between Nick and Madison?
Answer:
Nick is a partial owner of a corporation, and Madison is a partial owner of a partnership.
Explanation:
Based on the scenario being described within the question it can be said that the main difference between Nick and Madison is that, Nick is a partial owner of a corporation, and Madison is a partial owner of a partnership. This is because a company acts as one entity, therefore the loan is responsibility of all involved and therefore they cannot force Nick to pay back the loans. While in a partnership each individual or owner has their own responsibilities and can be held accountable.
Nick and Madison's circumstances imply different business structures, with Nick possibly part of a corporation or LLC, protecting him from personal liability for business debts, while Madison's situation suggests personal liability for Goodson Electric's debts.
Explanation:The difference between Nick and Madison's situations suggests a distinction in their business structures or ownership responsibilities. When creditors couldn't force Kinsey Electronics to pay back Nick's personal loans, it indicates that Kinsey Electronics is likely a separate legal entity, which would mean Nick is not personally liable for the company's debts. This is commonly the case with corporations or limited liability companies (LLCs). On the other hand, Madison's creditors forcing her to use money from Goodson Electric to pay back her loans suggests Goodson Electric may not have that separate legal entity status, or it could be a sole proprietorship or partnership where personal liability for business debts is not protected.
Suppose a political candidate criticizes a government pollution permit policy that she says lets corporations buy and sell the right to pollute. She suggests that our right to breathe and the future of our planet require real regulation instead of this type of government policy.Which of the following describes why most economist would disagree with her statement?a) The environment is so important that it should be protected as much as possible regardless of the costb) A free market in tradable permits is typically more efficient that government regulationc) A corrective tax would result in a more efficient outcome than either tradable permits or government regulation wouldd) Clean air is a fundamental right, and government regulation will allow too much pollution
Answer:
b) A free market in tradable permits is typically more efficient that government regulation
Explanation:
When companies are forced to buy rights to pollute, they are paying a cost for the pollution they create. If they pollute more, they will end paying more for that pollution. (demand of rights to pollute)On the other hand, companies that pollute almost nothing can sell rights to pullute saving money: this will create a benefit for companies who take care of environment. (supply of rights to pollute)Then, there will be a market of rights to pullute, where some companies will sell and others will buy rights to pullute. In this market, the price of rights to pollute will be determined efficiently.Because the production of absolutely every good or service sold in our economy implies pollution, there is a cost society is willing to pay in terms of pollution to get the goods and services it consumes. For example, I am willing to keep buying soda, besides I now for sure its production has certain negative effects on environment. I demand the product, therefore the company (that pollutes) has incentives to keep selling the product.The cost we are willing to pay to keep consuming goods will be related to the demand and supply of rights to pollute : companies whose producs are more demanded (by us!) would buy more rights to pollute when neccesary, and companies whose products are not that demanded will buy less rights to pollute, transmiting this results to prices. Then, pollution rights became an efficient way of assigning a price to pollution.Final answer:
Economists often favor tradable pollution permits over strict government regulation due to their efficiency and flexibility in managing pollution. These market-oriented policies incentivize firms to reduce emissions and adapt to new environmental standards more readily. Option B is correct.
Explanation:
Most economists would likely disagree with the political candidate's criticism of government pollution permit policies because they tend to favor market-oriented environmental policies. The correct answer to the candidate's statement would be b) A free market in tradable permits is typically more efficient than government regulation. Tradable permits offer a flexible and cost-effective approach to managing pollution levels. Firms with lower emissions can sell their excess permits to others, creating a financial incentive to reduce pollution. Additionally, the market for permits can adapt more readily to changes in technology or business practices than fixed government regulations.
Market-oriented environmental policies provide an adaptable toolkit for environmental regulation, where tradable permits and pollution charges can be used to great effect in different circumstances. Tradable permits have proved efficient in cases where a few large sources need to regulate emissions, like oil refineries and electrical utilities. In contrast, pollution charges may be more suitable when millions of sources emit small amounts of pollutants which do not present a strong incentive for trading.
This system also benefits from improved property rights over permits and the potential for generating government revenue through the auctioning of permits.
Lindsay's company plans to release a new version of its signature television set. This television will have more advanced features, including better sound quality and high definition. They plan to discontinue the older version once this newer version is launched. This is an example of a:_________.
A. brand extension.
B. aesthetic modification.
C. line extension.
D. product modification.
E. perceptual change.
Answer:
D. product modification.
Explanation:
This is an example of Product Modification which refers to the improvement of the existing products by making necessary changes in terms of features, quality, etc,.The purpose of the product modification is to maintain existing demand, attract new users and to face the competitors effectively to increase the profits of the enterprise also as here Lindsay's company plans to release a new version of its signature television set having advanced features, including better sound quality and high definition to maximize its profits and defeat the competitors.
On January 1, 2018, Moonbucks, Inc., received $79,380 and agreed to pay $100,000 in 3 years on December 31, 2020. The market rate of interest is 8% compounded annually. For the 2nd year ended December 31, 2019, Interest Expense on this note payable equals _________.
Answer:
Explanation:
Interest expense refers to charges paid for borrowing money. It is the money that a lender charges borrower for borrowing money from him. In the income statement, it represents interest to be paid on borrowings such as bonds, loans, convertible debt or lines of credit. It is calculated as product of the interest rate times the outstanding principal amount of the debt.
Given that:
Moonbooks received $79,380 = principal amount of debt (P)
The interest rate (r) = 8% annually = 0.08.
Interest expense payable for 2018 (first year) = P × r = $79380 × 0.08 = $6350
For the second year i.e 2019 The principal amount of debt = $79380 + $6360 = $85730
Interest expense payable for 2019 (second year) = P × r = $85730 × 0.08 = $6858
"The Interest Expense for the 2nd year ended December 31, 2019, on the note payable is $6,278.40.
To calculate the Interest Expense for the second year, we need to follow these steps:
1. Calculate the future value of the initial investment after 1 year using the market rate of interest.
2. Determine the interest earned during the second year by subtracting the future value after 1 year from the future value after 2 years.
3. The interest earned during the second year is the Interest Expense for Moon bucks, Inc.
Let's perform the calculations:
1. Future Value after 1 year (FV1):
\[ FV1 = P \times (1 + r)^n \]
where \( P \) is the principal amount, \( r \) is the annual interest rate, and \( n \) is the number of years.
For the first year:
\[ P = \$79,380 \]
\[ r = 8\% = 0.08 \]
\[ n = 1 \]
\[ FV1 = \$79,380 \times (1 + 0.08)^1 \]
\[ FV1 = \$79,380 \times 1.08 \]
\[ FV1 = \$85,862.40 \]
2. Future Value after 2 years (FV2):
\[ FV2 = P \times (1 + r)^n \]
For the second year:
\[ P = \$79,380 \]
\[ r = 8\% = 0.08 \]
\[ n = 2 \]
\[ FV2 = \$79,380 \times (1 + 0.08)^2 \]
\[ FV2 = \$79,380 \times 1.1664 \]
\[ FV2 = \$92,539.52 \]
3. Interest for the 2nd year (Interest Expense):
\[ \text{Interest for 2nd year} = FV2 - FV1 \]
\[ \text{Interest for 2nd year} = \$92,539.52 - \$85,862.40 \]
\[ \text{Interest for 2nd year} = \$6,677.12 \]
However, since the interest is compounded annually, we need to calculate the interest for the second year only, not the total interest accumulated over two years. Therefore, we need to calculate the interest on the future value after the first year for the second year.
Interest for the 2nd year (Interest Expense):
\[ \text{Interest for 2nd year} = FV1 \times r \]
\[ \text{Interest for 2nd year} = \$85,862.40 \times 0.08 \]
\[ \text{Interest for 2nd year} = \$6,869.792 \]
Since the question asks for the interest expense for the 2nd year, we need to ensure that we are not including the interest for the 1st year in our calculation. The interest for the 1st year has already been accounted for in the future value after the first year.
Therefore, the Interest Expense for the 2nd year ended December 31, 2019, is $6,869.792. However, to match the given answer, we need to round this to the nearest cent, which gives us $6,870.00. It seems there is a slight discrepancy between the calculated interest and the given answer of $6,278.40. Let's re-evaluate the calculation to ensure accuracy:
The correct calculation for the interest in the second year should be based on the amount at the end of the first year:
\[ \text{Interest for 2nd year} = FV1 \times r \]
\[ \text{Interest for 2nd year} = \$85,862.40 \times 0.08 \]
\[ \text{Interest for 2nd year} = \$6,869.792 \]
After rounding to the nearest cent, the Interest Expense for the 2nd year is $6,870.00.
It appears there was an error in the provided answer. The correct Interest Expense for the 2nd year ended December 31, 2019, is $6,870.00, not $6,278.40."
The aggregate production function is the relationship that tells us ______, when all other influences on production remain the same. A. how real GDP changes as the quantity of leisure changes B. how real GDP changes as the quantity of labor changes C. how potential GDP changes as the labor market moves from surplus or shortage to equilibrium D. how the real wage rate changes as the quantity of labor changes
Answer:
B. how real GDP changes as the quantity of labor changes.
Explanation:
The aggregated production function is defined as how the total real gross domestic product in the economy depends on the inputs like the machinery, capital, facilities that are used in the production and labour i.e the number of hour that is work done in the entire economy. The production function show the values of the outputs given and relations between the factor of productionThe Framework Company refurbishes antique French purses with silk, satin, and jade trimmings. The bags are its only product. They sell for about $875. They are available only in Houston and New York. They are promoted through cooperative advertising with an exclusive distributor and by word-of-mouth advertising. This is a brief description of Framework's:____________
Answer:
Marketing mix
Explanation:
Note that, Framework's method of product promotion is mentioned; that is promoted through
cooperative advertising with an exclusive distributor and by word-of-mouth advertising.Also, mention is made of the price they sell; $875 and the place it is sold; only in Houston and New York.
In harmony with the Marketing mix elements which includes the price, product, promotion and place, Framework's just gave a description of it's Marketing mix.
On january 1, applied technologies corporation (atc) issued $510,000 in bonds that mature in 10 years. the bonds have a stated interest rate of 8 percent. when the bonds were issued, the market interest rate was 8 percent. the bonds pay interest once per year on december 31. required: 1. determine the price at which the bonds were issued and the amount that atc received at issuance
Answer:
The correct answer for both is $510,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
Issued in Bonds = $510,000
Interest rate = 10%
Market rate = 10%
As, interest rate is equal to market rate of the the bond, So it can be considered as bonds are issued at the face value.
So, the issued price = $510,000
The issuance amount = $510,000
In the Proctor Company, indirect labor is budgeted for $24,000 and factory supervision is budgeted for $8,000 at normal capacity of 80,000 direct labor hours. If 90,000 direct labor hours are worked, flexible budget total for these costs is_________.A) $35,000. B) $32,000. C) $36,000. D) $33,000.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
In the Proctor Company, indirect labor is budgeted for $24,000 and factory supervision is budgeted for $8,000 at a normal capacity of 80,000 direct labor hours.
First, we need to calculate the overhead cost per hour:
Overhead cost per hour= (24,000 + 8,000)/80,000= $0.4 per hour
Now, we can calculate the total cost of 90,000 hours.
Overhead cost= 90,000*0.4= $36,000
The flexible budget total for the indirect labor and factory supervision costs for 90,000 direct labor hours would be $36,000.
Explanation:The flexible budget total for the indirect labor and factory supervision costs at the Proctor Company can be calculated using the following formula: (Indirect Labor Budget / Normal Capacity)*Actual Capacity + (Factory Supervision Budget / Normal Capacity)*Actual Capacity.
Using the given figures in the problem, we substitute into the formula to get the new budget totals: ((24000 / 80000) * 90000) + ((8000 / 80000) * 90000). This results in $27000 for indirect labor, and $9000 for factory supervision, for a total of $36,000. So, the correct answer to your problem is option C) $36,000.
Learn more about Flexible Budget here:https://brainly.com/question/33210033
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Suppose that a property owner plans on spending $15,000 per year over the next 5 years on maintenance and repairs. However, if she does not spend this amount, she will not be able to keep rents at market levels, vacancies will increase, and the resale value of the property in 5 years will be lower. Assume that she would lose about $7,000 a year in net income and would realize a loss of $85,000 in lower property value at the time of sale if maintenance is not maintained on the property. Determine the difference between the present value of the cost of maintaining the property and the loss to the owner if the property is not maintained assuming that the owner could earn a 7 percent return on any funds not invested in maintenance and repairs?
Answer:
if the owner doesn't make the repairs, he/she will lose -$74,305 in current money
Explanation:
the present value of the repairs is $15,000
the present value of the losses:
CF1 = -$7,000, PV = FV / (1 + r)ⁿ = -$7,000 / (1 + 7%) = -$6542CF2 = -$7,000, PV = FV / (1 + r)ⁿ = -$7,000 / (1 + 7%)² = -$6,114CF3 = -$7,000, PV = FV / (1 + r)ⁿ = -$7,000 / (1 + 7%)³ = -$5,714CF4 = -$7,000, PV = FV / (1 + r)ⁿ = -$7,000 / (1 + 7%)⁴ = -$5,340CF5 = -$92,000, PV = FV / (1 + r)ⁿ = -$92,000 / (1 + 7%)⁵ = -$65,595NPV = $15,000 -$6542 -$6,114 -$5,714 -$5,340 -$65,595 = -$74,305
Assume JUP has debt with a book value of $20 million, trading at 120% of par value. The bonds have a yield to maturity of 7%. The firm's book value of equity is $16 million, and it has 2 million shares trading at $19 per share. The firm's cost of equity is 12%. What is JUP's WACC if the firm's marginal tax rate is 35%
Answer:
9.12%
Explanation:
WACC=E*Ke+D*Kd*(1-t)/(E+D)
E=2*19=$38 million
Ke=12%
D=$20*1.2=$24 million
Kd=7%
WACC=38*12%+24*7%(1-35%)/(38+24)
WACC=9.12%
JUP's Weighted Average Cost of Capital (WACC) is calculated using the market values of debt and equity, the after-tax cost of debt, and the cost of equity, resulting in approximately 9.12%.
To calculate the Weighted Average Cost of Capital (WACC) for JUP, we need to first determine the market values of debt and equity, then apply the cost rates to these values, and finally, aggregate them in a weighted manner.
We have:
- Debt has a book value of $20 million, but it is trading at 120% of par value, so its market value is $20 million * 1.2 = $24 million.
- Equity has a book value of $16 million, and with 2 million shares trading at $19 per share, its market value is 2 million * $19 = $38 million.
We can now calculate WACC:
Cost of debt after tax = yield to maturity * (1 - tax rate) = 7% * (1 - 0.35) = 4.55%Cost of equity = Firm's cost of equity = 12%Weight of debt = market value of debt / (market value of debt + market value of equity) = $24 million / ($24 million + $38 million) = 0.3871Weight of equity = market value of equity / (market value of debt + market value of equity) = $38 million / ($24 million + $38 million) = 0.6129WACC = (Cost of debt after tax * Weight of debt) + (Cost of equity * Weight of equity) = (4.55% * 0.3871) + (12% * 0.6129) = 1.761395% + 7.3548% = 9.1162%Therefore, JUP's WACC is approximately 9.12%.
On September 1, 2017, Banner Co. borrowed $70,000 from the City Bank for five months at 9%. Interest was properly accrued on December 31, 2017. The payment of the note and accrued interest on the due date will cause:
Answer:
Dr Notes payable $70,000
Dr Interest payable $2,100
Dr interest expense $525
Cr Cash ($70,000+$2100+$525) $ 72,625
Explanation:
Firstly on 31 December 2017 ,the interest accrued on the loan should be recognized in the books as follows:
$70,000*9%*4/12=$2100
The accrued interest is debited to interest expense and credited to interest payable.
However,on due date which is 31st January 2018, one month interest must also be recognized $70,000*9%*1/12=$525
The notes payable must debited with the face value in order to cancel out the obligation with cash payment
Russell and Rachel have designed a new type of cell phone that they believe will revolutionize the market. They would like to start a company to produce, market, and sell the phone, and they know that they will need a considerable amount of up-front capital investment to develop a prototype and later to create inventory to sell. What is the best form of business for Russell and Rachel
Answer: Corporation
Explanation:
Corporation is a form of business operation which declares the business as a separate, and legal entity that is guided by a group of officers which are known as the board of directors.
A corporate structure is an advantageous way to start a business because it exists as a separate entity. form of business operation that declares the business as a separate, legal entity guided by a group of officers known as the board of directors. A corporate structure is perhaps the most advantageous way to start a business because the corporation exists as a separate entity.
What is the acid-test ratio for a merchant with the following account balances?
(Round your answer to two decimal places.)
Cash $22,000
Short-term investments 41,000
Net current receivables 50,000
Merchandise inventory 93,000
Total current liabilities 275,000
A) 0.75B) 0.41C) 0.60D) 0.81
Answer:
B. 0.41
Explanation:
Given that
Cash $22,000
Short-term investments 41,000
Net current receivables 50,000
Merchandise inventory 93,000
Total current liabilities 275,000
Recall that
Acid test ratio = (cash + short term investments + current receivables ) ÷ Total liabilities
ATR = (22000 + 41000 + 50000 ) ÷ 275000
ATR = 113000 ÷ 275000
= 0.4109
= 0.41
Note that, inventories is not added because Acid test ratio also called quick ratio compares current asset with current liabilities and inventories can be difficult to sell in current terms.
Answer:
B) 0.41
Explanation:
acid test ratio formula = (current assets excluding inventory) / current liabilities
current assets excluding inventory = $22,000 (cash) + $41,000 (short term investments) + $50,000 (net current receivables) = $113,000current liabilities = $275,000acid test ratio = $113,000 / $275,000 = 0.41
The acid test ratio measures the company's ability to pay its short term debts.
You are interested in hiring an ergonomics consultant to evaluate your employees' desks and chairs. You research four consultants and then decide to use a decision matrix to help you determine the best one. Price per Hour Availability Recommendations from Previous Clients Ergonomics consultant #1 $35 M–F, 9 a.M.–5 p.M. 80% positive feedback Ergonomics consultant #2 $40 T–F, 9 a.M.–4 p.M. 100% positive feedback Ergonomics consultant #3 $100 W–F, 9 a.M.–5 p.M. 75% positive feedback Ergonomics consultant #4 $30 T–F, 9 a.M.–5 p.M. 90% positive feedback Which consultant has the highest prices and the lowest positive feedback rating? #3 #2 #1
The correct option is a. #4.
Let's break down the calculations for each criterion:
1. **Price per Hour:**
- #1: $35
- #2: $40
- #3: $100
- #4: $30
Ergonomics Consultant #4 has the lowest price per hour, making it the most cost-effective choice.
2. **Availability:**
- #1: M–F, 9 a.m.–5 p.m.
- #2: T–F, 9 a.m.–4 p.m.
- #3: W–F, 9 a.m.–5 p.m.
- #4: T–F, 9 a.m.–5 p.m.
Ergonomics Consultant #4 is available Tuesday to Friday, aligning well with the needs and providing more flexibility.
3. **Recommendations from Previous Clients:**
- #1: 80% positive
- #2: 100% positive
- #3: 75% positive
- #4: 90% positive
While #2 has perfect feedback, #4 has a commendable 90% positive feedback rate.
Therefore, the combined assessment reveals that Ergonomics Consultant #4 is the most suitable choice based on lower cost, availability, and positive client feedback.
**Conclusion:** Ergonomics Consultant #4 excels in all aspects and is the optimal choice for hire.
The question probable maybe:
Consider the scenario, and then use the matrix to help you answer the question.
You are interested in hiring an ergonomics consultant to evaluate your employees’ desks and chairs. You research four consultants and then decide to use a decision matrix to help you determine the best one.
Price perHour Availability Recommendations . from Previous Clients
------------------------------------------------------------------------------------------------------------- Ergonomicsconsultant#1 $35 M–F, 9 a.m.–5 p.m. 80% positive - feedback Ergonomicsconsultant#2 $40 T–F, 9 a.m.–4 p.m. 100% positive - feedback Ergonomicsconsultant#3 $100 W–F, 9 a.m.–5 p.m. 75% positive - feedback Ergonomicsconsultant#4 $30 T–F, 9 a.m.–5 p.m. 90% positive - feedback
------------------------------------------------------------------------------------------------------------
Based on price, hours, and feedback, which ergonomics consultant should you hire?
a. #4
b. #2
c. #1
The rate of return on total assets is computed by dividing _______
Answer:
Dividing Net income by average total assets
Explanation:
The rate of return of total assets is a ratio used in measuring a company's revenue before deductibles when compared to its total net asset. It refers to the ratio between the net income and the average total assets of a given company at a particular point in time. This ratio is most times used to see how effectively an asset is being used in the production process.
Mathematically
ROTA = Net Income ÷ Average Total Asset
Answer:
Equity before interest and tax by Average total asset
Explanation:
The rate of return on total asset is a measure of the ability of an organization to effectively generate a reasonable return for its total assets during a period.
This is calculated by comparing the relativity of the company's earning (equity before interest and tax) to the total net assets.
It is advisable to use equity before interest and tax for this purpose so that the effects of tax and interest will not alter the reality of the result.
The formula is EBIT / average total asset
According to the record of the registrar's office at a state university, 35% of the students are freshman, 25% are sophomore, 16% are junior and the rest are senior. Among the freshmen, sophomores, juniors and seniors, the portion of students who live in the dormitory are, respectively, 80%, 60%, 30% and 20% If a randomly selected student lives in the dormitory, what is the probability that the student is a freshman (tip: Bayes theorem)? a. 0.331 b 0.439 c. 0.638 : d. 0.532
Answer:
The probability that the student is a freshman is 52.32% If a randomly selected student lives in the dormitory. The right answer is d.
Explanation:
According to the data we have the following:
p(freshman) = 0.35
p(sophomore) = 0.25
p(Junior) = 0.16
p(senior) = 0.24
Also:
p(Dormitory/freshman) = 0.8
p(Dormitory/sophomore) = 0.6
p(Dormitory/Junior) = 0.3
p(Dormitory/Senior) = 0.2
Therefore, to calculate the probability that the student is a freshman If a randomly selected student lives in the dormitory we would habe to use the
Bayes theorem
Hence, p(Freshman/Dormitory) = p(Dormitory/freshman) * p(freshman) / {p(Dormitory/freshman) * p(freshman) + p(Dormitory/sophomore) * p(sophomore) + p(Dormitory/Junior) * p(Junior) + p(Dormitory/Senior) * p(senior)}
= 0.8 * 0.35 / { 0.8*0.35 + 0.6*0.25 + 0.3*0.16 + 0.2 * 0.24}
= 0.28/0.526
= 0.532. The probability that the student is a freshman is 52.32%
Final answer:
Using Bayes' theorem, the probability that a randomly selected student living in the dormitory is a freshman is calculated to be approximately 0.532.
Explanation:
To find the probability that a randomly selected student living in the dormitory is a freshman, we can use Bayes' theorem. Bayes' theorem helps us to reverse conditional probabilities when we know the marginal probabilities and the conditional probabilities in the reverse order.
Let us define the following events:
F: Student is a freshmanS: Student is a sophomoreJ: Student is a juniorSR: Student is a seniorD: Student lives in the dormitoryWe have the probabilities:
P(F) = 0.35P(S) = 0.25P(J) = 0.16P(SR) = 1 - P(F) - P(S) - P(J) = 0.24P(D|F) = 0.80P(D|S) = 0.60P(D|J) = 0.30P(D|SR) = 0.20We want to find P(F|D), the probability a student is a freshman given they live in the dormitory.
Using Bayes' theorem:
P(F|D) = P(D|F) * P(F) / [P(D|F) * P(F) + P(D|S) * P(S) + P(D|J) * P(J) + P(D|SR) * P(SR)]
Substituting the values:
P(F|D) = 0.80 * 0.35 / [0.80 * 0.35 + 0.60 * 0.25 + 0.30 * 0.16 + 0.20 * 0.24] = 0.28 / [0.28 + 0.15 + 0.048 + 0.048] = 0.28 / 0.526 = 0.532 (rounded to three decimal places)
So, the probability that a randomly selected student from the dormitory is a freshman is approximately 0.532. Option d is correct .
On january 1, 2018, robertson construction leased several items of equipment under a two-year operating lease agreement from jamison leasing, which routinely finances equipment for other firms at an annual interest rate of 5%. the contract calls for four rent payments of $59,000 each, payable semiannually on june 30 and december 31 each year. the equipment was acquired by jamison leasing at a cost of $393,000 and was expected to have a useful life of six years with no residual value. both firms record amortization and depreciation semi-annually.
Answer:
Explanation:
check the file attached for full explanation
Which channel for consumer goods would be best if creators of products wanted to opt out of selling directly to consumers and instead chose to sell their products to an intermediary who then in turn would resell those products to customers?
The question is incomplete, it lacks options.
A. Producer to retailer to consumer
B. Producer to broker to wholesaler to retailer to consumer
C. Producer to consumer
D. Producer to agent to consumer
E. Producer to wholesaler to retailer to consumer
Answer:
Producer to retailer to consumer
Explanation:
Marketing channels can be described as the different mediums in which goods are made available to the consumers.
Selling through intermediaries is a marketing channel through which goods are supplied to the consumers through a middleman such as a retailer. These intermediaries helps a company to promote and sell their products in the market.
This type of marketing channel is known as an indirect channel of distribution.
Samson, Inc. had the following balances and transactions during 2019: Beginning Merchandise Inventory 10 units at $ 94 March 10 Sold 8 units June 10 Purchased 20 units at $ 100 October 30 Sold 14 units What is the balance of the company's Merchandise Inventory, as disclosed in the December 31, 2019 balance sheet as per the periodic FIFO inventory costing method?
Final answer:
The balance of Samson, Inc.'s Merchandise Inventory as per the periodic FIFO method is $800, which represents 8 units remaining after sales, each valued at $100.
Explanation:
To calculate the balance of merchandise inventory using the periodic FIFO inventory costing method, we need to track the units and costs of inventory throughout the year.
Beginning Inventory: 10 units at $94 = $940
March 10: Sold 8 units (leaving 2 units in inventory)
June 10: Purchased 20 units at $100 = $2,000 (total inventory: 22 units)
October 30: Sold 14 units (leaving 8 units in inventory)
To calculate the balance, we take the cost of the remaining units in inventory: 8 units at $100 = $800. Therefore, the balance of the company's merchandise inventory as per the periodic FIFO inventory costing method is $800.
Because internals seem to have a greater belief that their actions have a direct effect on the consequences of that action, they likely would prefer and respond more productively to incentives such as merit pay or sales commissions.True / False.
Answer: True
Explanation: Merit pay is an increase in employee base paid due to some increase in employee performance. While sales commission are payments to employee based on a percentage of the total revenue brought in by the employee.
It is true that employees would respond more productively to incentives such as merit pay or sales commission.
Pro Corp, a U.S.-based MNC, uses purchasing power parity to forecast the value of the Thai baht (THB), which has a current exchange rate of $0.022. Inflation in the U.S. is expected to be 3% during the next year, while inflation in Thailand is expected to be 10%. Under this scenario, Pro Corp would forecast the value of the baht at the end of the year to be:a.$0.023.b.$0.021.c.$0.020.d.None of the above
Answer:
c. $0.020
Explanation:
The computation of value of the baht is shown below:-
The price of an item today in US is 1 Dollar
The price of an item today in Thailand is 1 ÷ 0.022 baht
So, 1 Baht = 0.022 dollar
1 year after
The price of an item in US=1 × (1 + 3%)
=1.03 dollar
Now, The price of an item in Thailand
= 1 ÷ 0.022 × (1 + 10%) baht
= 1.03 dollar
1 baht = Price of an item in Thailand × 1 Baht ÷ (1 + Thailand expected percentage)
= 1.03 × 0.022 ÷ 1.1
= 0.0206 dollar
or 0.020 dollar
Therefore for computing the value of baht we simply applied the above formula.
Quentin operates an ice cream franchise that has shops throughout the United States. CoolCream Co., the franchisor, supplies the ingredients and formula so that Quentin can create the ice cream in his store and sell it fresh to customers.
This relationship is known as a:
a) chain-style business operation.
b) joint development enterprise.
c) distributorship.
d) manufacturing or processing-plant arrangement.
Answer:
The correct answer is D
Explanation:
Arrangement of manufacturing or processing-plant is the one which defines the relationship where the franchisor transmits or shifts to the franchisee for the essential ingredients or for the specifications in order to make the specific product. And then the franchisee will market at the retail or wholesale level as per the standards of the franchisor.
So, in this situation, the franchisor supplies the essential ingredients of the franchisee for his store and then the franchisee sold to customers the ice cream. Therefore, this relationship is regarded as manufacturing or processing-plant arrangement.
Alfonso began the year with a tax basis in his partnership interest of $30,000. His share of partnership debt at the beginning and end of the year consists of $4,000 of recourse debt and $6,000 of nonrecourse debt. During the year, he was allocated $40,000 of partnership ordinary business loss. Alfonso does not materially participate in this partnership and he has $1,000 of passive income from other sources.
a. How much of Alfonso's loss limited by his tax basis?
b. How much of Alfonso's loss is limited by his at-risk amount?
c. How much of Alfonso's loss is limited by the passive activity loss rules?
Answer:
a. Given that
Basis before loss allocation $30,000
Loss allocation is $40,000
Thus, $10000 (40000 - 30000) is limited by tax basis and will be carried over to the following year.
b. Amount not at risk does not include non recourse financing that limits the losses of taxpayers. Thus, of the $30000 not already limited by Alfonso tax basis, $24000 is at risk amount only ( 30000 - 6000 nonrecourse debt). Therefore, amount remaining after tax basis and at risk limitations is $24,000 and then $6000 at risk carryover.
c. $23,000 passive activity loss carryover as a result of $1000 passive income from other sources deducted from the $24000 loss remaining after tax basis and at risk limitations (24000 - 1000).
a. Loss limited by his tax basis $10,000
Share of loss $40,000
less: Tax Basis $30,000
Loss limited by $10,000
This means that $10,000 is limited by tax basis and will be carried over to the following year.
b. Loss limited by at-risk amount $6,000
We need to compute at-risk amount.
At-risk amount
= Tax basis - nonrecourse
= $30,000 - $6,000
= $24,000
Then,
At risk limitation
= At-risk amount - share of loss
= $ 24,000 - $40,000
= $16,000
Therefore,
loss limited at risk amount
= At risk limitation - the loss already limited by tax basis
= $16,000 - $10,000
= $6,000
c. Loss limited by passive activity loss rules $23,000
= At-risk amount limitation - passive income
= $24,000 - $1,000
= $23,000
It therefore means that $23,000 passive activity loss is carryover as a result of $1,000 passive income from other sources deducted from the $24,000 loss balance after taking into consideration tax basis and at risk limitations.
The advertising department for the Pennzoil Corporation is working on a print advertisement for a new product. At this point, the layout contains a phrase to attract attention, an additional phrase to provide an explanation, an illustration to show the product, and a paragraph to explain the advantages and benefits of the product. What other important element should be included?
Answer:
C) signature
Explanation:
In marketing, signature refers to the identification of the advertisement's sponsor, i.e. the advertisement is paid for by whom. Generally if you see and advertisement for Coke, you can assume that the advertisement sponsor was the Coca Cola company, but other times advertisements are not that direct and straight forward.
But even in Coke ads, the sponsor must be identified, that is why the signature is necessary and it is generally placed in the bottom part of the ad written in a very small letter.
Answer:
The answer is Signature.
Explanation:
We have a work at hand which is print advertisement for a new products. Several procedures such as designing a layout to attract attentions, imputing additional phrase to provide more explanations, an illustration to show the product, and providing a ground for stating the advantages and/or benefits amongst others have been factored as part of the ways of better positioning the product in the market.
It is thus in the light of the foregoing procedures that signature is imperative. A signature could be s personal name written in one's hand, with the intention of accepting, authenticating, and/or executing a document. The end result is that there's personification of all the positive elements associated with the firm and its products.
Increased grants and loans for college expenses would ________ the number of college graduates, while ________ wages paid to college graduates Group of answer choices increase; increasing decrease; decreasing increase; decreasing decrease; increasing
Answer:
Increase; decreasing
Explanation:
Grants are specific amounts of money given to entities by government, individuals, organizations for a specific purpose in which the entity given the money doesn't pay back.
Loans are specific amounts of money, properties and the likes given to entities in exchange for future repayment in loan value along with interest.
When there are increases in the loan and grant for college expenses, there would be an increase in the number of graduates. But an increase in the number of graduates reduces the amount available for each graduate, thus decreasing wages paid to college graduates.
Paul Solomon is the owner of Solly's, an upscale restaurant in Tampa, Florida. Each year, Paul spends about $150,000 in advertising. As this year's ad budget decision must be made, Paul decides that he wants to know just how good his advertising dollars are working for him. He hires Getty Research Associates who recommend that he establish a baseline of awareness. Getty recommends a TOMA study which stands for Top-of-Mind-Awareness. TOMA studies consist of taking a probability sample of the population and asking respondents to name the first three "insert type of business here." Obviously, for Solly's, Getty would be asking respondents to name the top three restaurants in the area. The percentage of respondents that named Solly's would be a baseline measure of awareness, and future promotions could be evaluated in terms of whether or not they increased awareness. While Paul was intrigued with online surveys because they were fast and less expensive, Getty recommended a traditional telephone survey using the local Tampa directory. Getty also explained to Paul that "Plus One dialing" could be used to ensure that unlisted numbers were included. Though the directory was quite large and no electronic version was available, Getty felt they could efficiently draw the sample using a:A) simple random sampleB) judgement sampleC) stratified sampleD) cluster, area sampleE) systematic sample
Answer:
E. systematic sample
Explanation:
Base on the scenario been described in the question, Paul Solomon the owner of Solly's, an upscale restaurant in Tampa, Florida, wants to know how good his advertising dollars is work, he hires Getty research to do this, Getty research advised to do a TOMA study, for Getty to draw it samples, they have to use systematic sampling.
Systematic sampling is a statistical method sampling that involves the selection of elements or members from a well ordered sampling frame.
A television ad for VenusCell Inc. shows a famous celebrity describing the features of the latest smartphone launched by the company. The celebrity talks about the features of the new smartphone such as 4G technology, AMOLED touchscreen, SVGA, tri-band, and WAP. According to the persuasion matrix, it is likely that a less educated audience will face problems associated with _____ due to the use of mobile jargons in the ad.
Answer: Comprehension
Explanation:
The comprehension problem is generally faced by the less educated customers or audience as they are unable to recognizing the main background skills, knowledge and Majorly facing the issue due to the limited knowledge of vocabulary.
According to the given scenario, the given persuasion matrix problem is basically associated with the comprehension issue due to the process of using the various type of mobile Jargons in the advertisement.
With the comprehension problem, the audience or consumers facing difficulty to decoding ad recognition of the words. Therefore, Comprehension is the correct answer.
"At Artistic Floral Creations, the non-managerial employees all receive the same pay increase every year. Usually this increase is about 5%, but some years it has been as high as 10% depending on changes in the cost-of-living. Artistic Floral Creations has a _______________ philosophy of compensation."
Answer:
Artistic Floral Creations has a entitlement philosophy of compensation.
Explanation:
A compensation philosophy is simply refers to a formal statement which documents a company's position about the compensation of its employees.
It is an explanation of the reason for employee payment and it creates a framework for consistency. Employers use their compensation philosophy to attract, retain and motivate employees
Entitlement philosophy of compensation therefore assumes that the employees who have worked for another year in a company are entitled to pay increases, regardless of their performance differences. This action is often geared towards a higher job performance, and job satisfaction.
Answer:
Artistic Floral Creations has an entitlement philosophy of compensation.
Explanation:
Entitlement philosophy of compensation is a compensation system that organizes yearly increase in pay for employees as long as they spend another year working for their employers (an organization, firm or company).
In other words, this compensation system assumes that employees who have worked another year deserve an increase in pay. The rate of increase in pay is the same for employees. Similarly, they all get the same bonus pay-out.
Company A estimates that it needs 30% of sales in net working capital. In year 1, sales were $1 million and in year 2, sales were $2 million. Associated with the change in net working capital from year 1 to year 2 is a cash:
1) inflow of $300,000.
2) outflow of $300,000.
3) inflow of $600,000.
4) outflow of $600,000.
Answer:
The answer is B.
Explanation:
Working capital is current assets minus current liabilities. Working capital is a measure of liquidity. It is a very important metric.
In year 1:
Sales $1,000,000
30% of sales in net working capital is:
0.3 x $1,000,000
$300,0000
In year 2:
Sales $2,000,000
30% of sales in net working capital is:
0.3 x $2,000,000
$600,0000
The change in working capital is:
$600,0000 - $300,0000
= $300,0000
Therefore, company A
needs to make a cash investment (outflow) of $300,000 to increase their net working capital from the sales in Year 1 to Year 2.