Luxx Inc. currently has assets to $5 million, zero debt, is in the 40 percent federal- plus-state tax bracket, has a net income of $1 million, and pays out 40 percent of its earnings as dividends. Net income is expected to grow at a constant rate of 5 percent per year, 200,000 shares of stock are outstanding, and current WACC is 13.40 percent.

The company is considering a recapitalization where it will issue $1 million in debt and use the proceeds to repurchase stock. Investment bankers have estimated that if the company goes through with the recapitalization, its before-tax cost of debt will be 11%, and its cost of equity will rise to 14.5%.

A. What is the stock's current price per share (before the recapitalization)?
B. Assuming the company maintains the same payout ratio, what will be its stock price following the recapitalization?

Answers

Answer 1

Answer: a.)$25 ; b.) $30.96

Explanation:

A.) Stock's current price per share:

Net income = $1,000,000

Dividend paid = 0.40 x $1,000,000 = $400,000

Dividend per share before recapitalization = $400,000 / 200,000 = $2

Price of the share before recapitalization is calculated as:

D1 = $2 × 1.05  = $2.10

P0 = D1/Ke - g

= $2.10/ 0.134 - 0.05

= $25

B.) Portion of equity after recapitalization = (200, 000 x $25) - $1,000,000 = $4,000,000

Portion of debt = $1,000,000

Revised WACC after recapitalization = Ke x E/V + Kd(1-t) x D/V

= 0.145 x $4,000,000/$5,000,000 + 0.11 x (1-0.40) x $1,000,000/$5,000,000

= 0.1292

= 12.92%

Revised net income is calculated as:

Before tax income = $1,000,000/0.60 = $5M

Interest = 0.11 x $1,000,000 = $110,000

Earning before tax = $1556666

40% of tax = $622,666.4

Net income = $933,999.60

Revised dividend = $933,999.60 x 0.40 = $373599.84

DPS = $373599.84/(200,000 - ($1,000,000/$25))

$373599.84/160,000

= $2.335

Revised price of the share after recapitalization:

$2.335 x 1.05 / 0.1292 - 0.05

2.45175 / 0.0792

= $30.96


Related Questions

Metlock, Inc. began the year 2022 with retained earnings of $653000. During the year, the company sold additional shares of stock for $1009000, recorded revenues of $604000, expenses of $382000, and paid dividends of $134500. What was Metlock's retained earnings balance at the end of 2022?

Answers

Answer:

The retained earnings at end of 2022 is $740,500

Explanation:

In order to ascertain the balance of retained earnings at year end we need to first of all determine the net income in the current year.

The net income is sales revenue minus expenses

sales revenue is $604,000

expenses is $382,000

net income=$604,000-$382,000=$222,000

The closing retained earnings=opening retained earnings+net income-dividends

opening retained earnings is $653,000

dividends is $134,500

closing retained earnings=$653,000+$222,000-$134,500=$740,500

_______ 13:11 says, "Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase." In other words, a person who tries to get money by fraudulent means will not get more, but the steady worker will add to his savings.

Answers

Answer:

Proverbs

Explanation:

Sometimes people think that old books or old knowledge are outdated, but apparently some still applies today. Around 3,000 years ago or now, people have been trying to find a way to get rich without working. But as it happened back them, easy comes, easy goes. Fortunes made without work generally last very little.

Communication to managers is of vital importance because it ________. Grupo de opciones de respuesta demonstrates the manager's depth of knowledge immediately results in an increase of revenue indicates technological advancement greatly helps in negotiating future plans

Answers

Answer:

greatly helps in negotiating future plans

Explanation:

The process of communication is important as it related to the exchange of information and thus sharing of information and plan of action is possible. This information is necessary to be exchanged as it helps to promote the organization's goals and objectives and as well as increase the profits of the company and may include the medium as the T.v radio and print mediums. It Includes the top-down, bottom-up and the horizontal communication through the web-based, telephonic, and by presentations.

What is the difference between commodity money and fiat​ money?

Answers

Answer:

Please see answer in the explanation below

Explanation:

Commodity money can be defined as money that its value comes from the commodity with which it was made. That is, commodity money is money that is gotten as a result of the material from which the money was made. Examples of these materials are silver, gold, etc. These materials have intrinsic value on their own as the materials have a worth of their own before being used to make currency.

Fiat money on the other hand is defined as money that is declared as the legal tender by the government. That means that fiat money is the money that is acceptable as a medium of exchange for goods and services as issued by the government. Fiat money does not have intrinsic value.

Cheers.

In the past, a car manufacturer advertised 0% financing on many of its models. For example, a particular model had a cash price of $13,174.09. However, if you elected to buy the car under the 0% financing deal, then the manufacturer used a price of $15,408. If you chose a 48-month term, then the manufacturer calculated your monthly loan payments using the 0% financing price instead of the cash price ($321 per month). In the fine print, the manufacturer was legally obliged to disclose the effective annual rate that it charged for the loan. What rate did the manufacturer disclose?

Answers

Answer:

Effective annual rate is 6.25%

Explanation:

Effective annual interest rate is real interest rate. Nominal rate does not reflect compounding interest or fees on some financial products like loans. Effective does and is calculated as following:

( 1+ i/n)^n - 1, where i is nominal interest rate and n is the number of periods. If 321 dollars is the sum of monthly payments calculated as 15.408 * x * 48/12= 321, which gives its effective monthly rate of 0.5% or annual rate of 6.25%.            

Elevators, Inc. does considerable business overseas for high-rise luxury hotels. To speed up the building permit process, it authorized a project manager to pay a government official a "fee" in the amount of $500. It is common practice in the foreign country for government officials to accept a "fee" to expedite processes. In doing so, has Elevators, Inc. broken United States law? Select one: Group of answer choices Yes, Elevators, Inc. has broken the law because it has paid a bribe to a foreign government official. No, Elevators, Inc. has not broken the law because payment was made in United States currency. Yes, Elevators, Inc. has broken the law because the amount paid to the government official was $500. No, Elevators, Inc. has not broken the law because "grease" payments are permitted under United States law.

Answers

Answer:

No, Elevators, Inc. has not broken the law because "grease" payments are permitted under United States law.

Explanation:

Under the law, it is illegal to bribe foreign officials to obtain business. But there is an exception for “facilitation payments,” also known as grease payments made to speed up routine government actions.

Final answer:

Elevators, Inc. has broken U.S. law by paying a bribe to a foreign government official as per the Foreign Corrupt Practices Act (FCPA).

Explanation:

The question revolves around whether Elevators, Inc. has violated United States law by authorizing a project manager to pay a foreign government official to expedite the building permit process. According to the Foreign Corrupt Practices Act (FCPA), U.S. companies are prohibited from making payments to foreign officials for the purpose of obtaining or retaining business. Therefore, the act of paying a 'fee' to a foreign government official would be considered a bribe and is illegal under U.S. law, regardless of whether it is common practice in the foreign country or if the payment was made in U.S. currency.

Suppose that the relationship between sales (Y, in $000) and number of salespeople (X) is represented by the following regression equation: Y = 105.2 + 35.8X ​38.​Refer to Exhibit 13.3. What will be the average contribution to sales of one additional salesperson?

Answers

Answer:The mean of the 10 sales amounts for store A is $40,000

Explanation:

A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded but no change in the price of macaroni and cheese. From this information, we can assume: A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded but no change in the price of macaroni and cheese. From this information, we can assume:_______.
a. macaroni is a normal good and price elasticity of demand is greater than 1.
b. macaroni is an inferior good and price elasticity of supply is equal to zero.
c. macaroni is an inferior good and price elasticity of supply is infinite.
d. macaroni is an inferior good and price elasticity of demand is less than.

Answers

Answer:

macaroni is an inferior good and price elasticity of supply is infinite.

Explanation:

An inferior good is a good whose demand increases when income falls and falls when income increases.

A normal good is a good whose demand increases when income rises and decreases when income falls.

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price.

Price elasticity of supply = percentage change in quantity supplied / percentage change price

Percentage change in quantity supplied = not given

Percentage change in price = 0 (because the question states that there was no change in price)

Any figure divided by zero gives infinity.

I hope my answer helps you

Final answer:

Macaroni and cheese is an inferior good, as demand decreases when income increases, showing a negative income elasticity of demand. The correct answer option is (b), implying the price elasticity of supply is zero, although this is an assumption based on the context given. The correct option is b.

Explanation:

A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded but no change in the price of macaroni and cheese. This information suggests that macaroni and cheese is an inferior good. When we talk about the income elasticity of demand, it refers to the ratio of the percentage change in demand to the percentage change in income. In the case of an inferior good, this elasticity is negative, indicating that as income increases, quantity demanded decreases. It is important to note that this situation does not necessarily relate to the price elasticity of supply, which measures how much the quantity supplied of a good changes in response to changes in price. Since the price of macaroni and cheese does not change, we cannot infer about the price elasticity of supply.

The correct option is therefore (b): 'macaroni is an inferior good and price elasticity of supply is equal to zero.' This implies that despite changes in income, the price of macaroni and cheese stays constant, assuming that supply is perfectly inelastic within the context of the question. However, the typical definition of a supply with price elasticity of zero would mean that the quantity supplied does not change regardless of the price change. Since the question does not provide information on how the quantity supplied is affected by the price, this interpretation is an assumption.

Therapeutic Corporation makes medical devices that are subject to extensive government regulation and undergo a rigorous premarket approval process. In a design defect product liability suit against Therapeutic by a party allegedly
injured by one of the devices, the company can most successfully raise the defense of

a. preemption.
b. assumption of risk.
c. comparative negligence.
d. knowledgeable user.

Answers

Answer:

A. Preemption

Explanation:

In the case of injury, the company can raise a defense of preemption given that a state is prohibited from safety requirements different from the federal requirements. Hence, since the medical device underwent rigorous premarket approval process, the company could get complete immunity for design defect liability. For devices that go through the premarket approval process (PMA), companies are assumed to be immunize from common personal injury caused by device defect.

Ricky is 35 years old. He plans to retire when he is 63. He has opened a retirement account that pays 3.2% interest compounded monthly. If he makes monthly deposits of $400, how much will he have in the account by the time he retired?

Answers

Answer:

Amount received = 217,043.56 (Approx)

Explanation:

Given:

Monthly deposit = $400

Interest rate = 3.2% / 12 = 0.002667 per month

Number of year = 63 year - 35 year = 28 year

Number of period = 28 × 12 month = 336 month

Computation:

[tex]Amount \ received = PMT[\frac{(1+r)^n-1}{r} ]\\\\Amount \ received = 400[\frac{(1+0.002667)^{336}-1}{0.002667} ]\\\\Amount \ received =400[\frac{(1.002667)^{336}-1}{0.002667} ]\\\\Amount \ received =400[\frac{2.44713794-1}{0.002667} ]\\\\Amount \ received =400[\frac{1.44713794}{0.002667} ]\\\\Amount \ received =400[542.608901]\\\\Amount \ received =217,043.56\\\\[/tex]

Amount received = 217,043.56 (Approx)

Final answer:

Ricky will have approximately $216,101.85 in his retirement account by the time he retires.

Explanation:

To calculate the amount Ricky will have in his retirement account, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:

A is the final amount in the accountP is the initial deposit (monthly deposit)r is the annual interest rate expressed as a decimaln is the number of times interest is compounded per yeart is the number of years

In Ricky's case:

P = $400 (monthly deposit)r = 3.2% = 0.032n = 12 (compounded monthly)t = 63 - 35 = 28 (years)

Using these values in the formula:

[tex]A = 400(1 + 0.032/12)^(^1^2^*^2^8^)[/tex]

A ≈ $216,101.85

Therefore, Ricky will have approximately $216,101.85 in his retirement account by the time he retires.

As Vince described his firm's landscape maintenance program to the buyer for Allentown Medical Center, Alex (the buyer) interrupted, "Your program sounds like a winner, but I'm not interested in doing business because start-up landscaping firms go in and out of business in just a few months." Vince responded with, "That is simply not true of our firm. We have been in the business for over 15 years." Vince’s response is an example of what method of responding to objections?

Answers

Answer:

Direct denial

Explanation:

In responding to obejections one can use various methods that suits the particular situation. A person can provide a logical argument when the objection is valid in a bid to convince the other party that their product is suitable for their needs.

In this instance Vince's firm has been in operation for over 15 years. The objection that start-up landscaping firms go in and out of business in just a few months can be answered with a direct denial.

Vince told them the business is not a startup but has been in business for 15 years.

Answer:

Direct denial

Explanation:

Base on the scenario been described in the question, the way Alex was been responded to by Vince, by saying "That is simply not true of our firm. We have been in the business for over 15 years." This statement is a typical example of direct denial.

Direct Denial is method for answering or replying possible buyers by making use of strong statements telling the person willing to buy that an error has been made.

Firms participate in strategic alliances for all of the following reasons EXCEPT to: Group of answer choices retain tight control over intangible core competencies. enter competitive markets more quickly. create value that they could not develop by acting independently. gain access to resources.

Answers

Answer:

Retain a tight control over intangible core competencies

Explanation:

Strategic strategy is defined as the coming together of different firms in order to achieve a shared or common objective , while still remain as individual firms. It believes in the principle o synergy that individuals will achieve more if they perform a common task together rather than combining the individual result of the same task performed different. (1+1 greater than 2)

However , this can not give a control over intangible core competencies of members companies.

Answer:

Retain tight control over intangible core competencies.

Explanation:

Strategic alliances are considered as agreements that exist between two companies to carry out a project while being independent. This project is beneficial to both parties. It does not require the complexities that exist in a joint venture which makes the agreement less binding.

Some reasons for strategic alliances is to improve the product line of a company or to penetrate a new market or to have an edge over a competitor.

Companies work hand-in-hand to achieve a mutually beneficial goal or target.

Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?

Answers

Answer:

B. 1) Karena and 2) Nathan, if Nathan has looked for work during the previous four weeks

Explanation:

Both Karena and Nathan are counted as unemployed according to the U.S labor force statistics.

Unemployment refers to the inability of a willing and able Individual who falls in the labor force category of a country to get a suitable job.

The labor force age group of countries differ from each other but it is usually between the age of 18-65 years.

Unemployment is a situation in which a person who is willing to work coupled and has ability(phycal, emotional) to work does not get a job.

There are different types of unemployment which includes:

1. Structural unemployment

2. Cyclical unemployment

3. Seasonal unemployment

4. Frictional unemployment

5. Underemployment

The correct answer is that Karena is counted as  unemployed  in the U.S. labor force statistics.

To be classified as unemployed according to the U.S. Bureau of Labor Statistics (BLS), an individual must meet the following criteria:

1. They must be jobless.

2. They must be available to work.

3. They must have actively looked for work in the prior four weeks or are waiting to be recalled to a job from which they have been temporarily laid off.

Karena was laid off and is expecting to be recalled. Even though she has not looked for work since being laid off, she is considered unemployed because she is jobless, available to work, and waiting to be recalled to her previous job.

Nathan, on the other hand, is not employed and also was not laid off. Since there is no mention of him actively looking for work in the prior four weeks, he would not be counted as part of the labor force and thus would not be considered unemployed. Individuals who are not employed and not actively looking for work are classified as  not in the labor force.

Therefore, based on the criteria set by the BLS, Karena is the one who is counted as  unemployed  in the U.S. labor force statistics.

After thirteen years as a laborer for Hendrix Construction, Jimmy was promoted to the position of foreman. He is directly responsible for assigning various jobs to his work crew and evaluating their performance on a daily basis. Jimmy is now a member of:

A. top management.
B. middle management.
C. supervisory management.
D. forward management.

Answers

Answer: Jimmy is now a member of SUPERVISORY MANAGEMENT.

Explanation: Supervisory management in an organisation is defined as a person with the official task of overseeing the work of a person or group, or of other operations and activities.

They are directly responsible for supervising workers and evaluating daily performance.

They spend most of their time on technical and human relations skills.

Final answer:

Jimmy's promotion to a role where he is in charge of assigning work and evaluating the performance of a crew at Hendrix Construction puts him in the category of supervisory management, which is answer C.

Explanation:

After working as a laborer for Hendrix Construction for thirteen years, Jimmy has been promoted to a role where he is responsible for assigning work and evaluating the performance of his crew. This promotion positions Jimmy in the role of supervisory management, as he is now in charge of overseeing his coworkers on a daily basis and ensuring that their work meets company standards. He is not a part of the top management, which deals with the overall direction and strategy of the company, nor is he part of middle management, which typically involves managers who oversee several junior managers or departments. His role does not align with the nonspecific term 'forward management.'

The answer to the question is C. supervisory management. This level of management is essential in businesses for maintaining a direct operational control over the tasks at hand and providing immediate guidance and supervision to the members of the work crew.

Unhappy with the speed with which the company's export initiative was going, the CEO called Mary Adams, the person in charge of exports at Ambient Products, to understand the reasons for the company's delay. Which of the following is a valid defense that Mary Adams can use?A. The U.S. government does not provide any help for exporters.
B. Novice exporters tend to overestimate the time required to cultivate business in foreign countries.
C. Exporters often face voluminous paperwork, complex formalities, and many potential delays and errors.
D. Small firms are usually familiar with foreign market opportunities.
E. Large firms do not consider exporting until their domestic market is saturated.

Answers

Answer:

Exporters often face voluminous paperwork, complex formalities and many potential delays and errors

Explanation:

A valid defense by Mary Adams for the delay in processing exports will be one that is a real challenge and is relevant to the inquiry being made.

Exporters normally deal with large volume of paperwork that shows details of exports, approvals, letters of credit, and other relevant information related to the transaction.

Apart from this access to foreign exchange, formalities of custom processes, and dealing with clearing agents wastes a lot of time.

A valid excuse for Mary to make will be: exporters often face voluminous paperwork, complex formalities and many potential delays and errors

The original capacity of the equipment is 10,000 units per year. After paying $2,500 to replace an important part, the company increases the capacity of equipment to 12,000 units per year. How does the company deal with the $2,500 expenditures

Answers

Answer:

The firm must increase the value of the equipment account by $2,500.

Explanation:

In this case, the repair expense must capitalize the asset account and not be considered an expense, instead it should be considered an additional investment. The $2,500 should be depreciated along with the normal depreciation of the equipment since it increased the productive capacity significantly.

Two leading home appliance companies, Redwood Inc. and Boxer Technologies, are in competition for market share. In their quest for exciting new products, Redwood employs an open innovation model, while Boxer pursues a closed innovation model. Which of the following statements is most likely true?

A. Redwood is most concerned with securing first-mover advantages.
B. Boxer will protect its intellectual property with patents and trade secrets.
C. Redwood has a greater chance of capturing market share.
D. Boxer has a superior absorptive capacity.

Answers

Answer:

Option B                      

Explanation:

Open innovation framework includes strategic, controlled transfers of knowledge with actors beyond an organization's borders, seeking to incorporate their expertise and experience into the creative cycle of the organisation itself.

Whereas, A closed development is focused on the assumption that the businesses itself produce developments. The innovation cycle usually occurs exclusively inside the business, from the production of concepts to the creation and advertising.

Thus, from the above we can conclude that the correct option is B.

The countries of Mimbo, Juwan, and Ninot agreed to remove all barriers to the trade of goods and services among each other. However, the three countries agreed that each would be allowed to determine its own trade policies with regard to nonmembers. The economic integration among these three countries is a(n):
A) economic union.
B) free trade area.
C) customs union.
D) common market

Answers

Answer: The economic integration among these three countries is a FREE TRADE AREA.

Explanation: FREE TRADE AREA is defined as an international region in which obstacles to unrestricted trade have been reduced to a minimum. In free trade areas, all barriers to the trade of goods and services are removed however, each country is allowed to determine its own trade policies with regard to nonmembers.

Teresa, the owner of Plant Fantasies, communicates the landscape design requirements to her employees in the flower department multiple times. This is an example of:________.
a. upward communication.
b. downward communication.
c. horizontal communication.
d. Informal communication.

Answers

Answer:

The answer is downward communication (Option B)

Explanation:

Downward communication is said to have taken place when information is relayed from superiors to subordinates. In other words, it is the kind of information that flows from people at the top of an organization structure (superior) to those at the bottom (subordinates).  

Teresa (in the question) belongs to the top of her business or company (Plant Fantasies). She carried out downward communication by informing her employees (subordinates) in the flower department about landscape design requirements.

Downward communication could be oral or written. The oral takes the form of meetings, speeches and telephonic conversations e.t.c. On the other hand, the written takes the form of electronic displays, manuals, handbook, manuals, notices e.t.c.

Phil Armonic is actively engaged in the oil business and owns numerous oil leases in the Southwest. During 2019, he made several trips to inspect oil wells on the leases. As a result of these overnight trips, he paid the following:
Plane fares $4,000
Hotels 1,000
Meals 800
Entertaining lessees 500
Of the $6,300 in expenses incurred, he can claim as deductible expenses _________.
a) 6,300b) 5, 650c) 5,000d) 4, 650

Answers

Answer:

$6,300

Explanation:

Deductible expenses refer to expenses which can be deducted from a firm's total income before it can be subjected to tax. Expenses can either be deductibles or non deductibles. When referring to deductibles we mean, expenses which are incurred during the course of service. For example, when travelling for the inspection of a work,the air tickets, hotel bills and meal tickets are deductibles. Meanwhile, in determining non deductibles, we mean, expenses which do not affect tax activities. These include, insurance, capital equipment personal activities, political donations or funding and charitable doings.

Here, everything in the question is assumed as deductibles because they are incurred in the course of service and they affect tax activities

Answer:

B ($5,6500)

Explanation:

Deductible expenses are the expenses incurred in the course of conducting normal business activity and qualify to be claimed from the company's income before it is presented for tax purpose. These expenses must be directly related to business purpose. Examples are administrative expenses , travelling , automobile expenses etc.

Some are claimed immediately while some are spread over a period of time and some seemingly business related expenses like bribe , traffic ticket are not qualified for deduction.

Workings

Plane fare - $4000

Hotel - $1000

Meals $400 ( 50% can be claimed as personal element is included )

Entertainment $250 (50% can be claimed as it includes personal element)

Total deductible expenses - $5650

Refresh Inc.’s debt to Spring Water Company is past due. Spring brings a legal action against Refresh to collect the debt. Spring asks the court to order Tempo Bank, in which Refresh has an account, to pay a portion of the funds to Spring.
This is a request for:

A. a writ of execution.
B. an order of garnishment.
C. an order that would violate most state laws.
D. an artisan’s lien.

Answers

Answer:

The correct option is B,an order of garnishment.

Explanation:

An order of garnishment is a way of enforcing court judgement whereby a third party who is indebted to the judgement debtor is ordered by the court to pay the damages awarded against the judgement debtor directly to the judgement creditor.

In this instance,Refresh Inc, is the judgement debtor whereas Spring Water Company is the judgement creditor(beneficiary of the judgement) and Tempo Bank is the third party that  would act on the order of the court.

Final answer:

The request from Spring Water Company to the court is known as an order of garnishment. This legal tool directs a third party owed money by the debtor to instead pay the creditor. It is commonly used in debt collection.

Explanation:

Spring Water Company's request to the court is known as an order of garnishment. An order of garnishment is where a court orders a third party that owes money to the debtor to instead pay the debt to the creditor. In this case, the court would order Tempo Bank to pay the funds that Refresh Inc. has in its account to Spring instead of giving it to Refresh. This type of order can be used to collect debts when the debtor fails to pay as agreed. It does not violate most state laws, and it is a common legal tool used in debt collection. It's unrelated to a writ of execution, artisan’s lien, or any violations of state laws.

Learn more about Order of Garnishment here:

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In order to compare the real estate markets in pittsburgh and philadelphia, what are the things that you should consider?

Answers

Answer:

When comparing the real estate market of any region or state, there are factors for consideration:

a) Population size

b) Employment status

c) Real estate market

d) Renting strength

e) Price

f) Quality in terms of home structure and a serene environment.

Explanation:

In the question, there are two American cities up for comparison: The city of Pittsburgh and the Philadelphia city, both in the Pennsylvania region. Both cities have comfortable environments which are habitable but here, we have to choose or rather compare both. The first factor is the population size. The two cities which are in the same region, have a considerable population size but when compared, Philadelphia has the upper hand. In real estate business, population is key as a region which a better and fuller population is appreciated more. The second factor is the employment status of the inhabitants. The employment status of these two cities are commendable but Pittsburgh is quite flabbergasting. The employment rate of Pittsburgh to Philadelphia is up to 57%. Employment status is a key determinant when real estate market is mentioned because employed persons are the ones who can actually pay when due. The third factor is the real estate market. This is another factor which is very important in determining the cities' real estate market. Over the years, Philadelphia has shown positive signs of a healthy real estate market which nicks that of Pittsburgh. Other factors listed above have clearly been favourable to Philadelphia because of their location but in terms of price, Pittsburgh appears cheaper with an average price of $1258 compared to Philadelphia's $1,652.

Final answer:

To compare the real estate markets in Pittsburgh and Philadelphia, consider average sale prices, demographic data, population density, and history. Also, compare renting vs. buying a home by examining long-term investment potential and overall costs.

Explanation:

When comparing the real estate markets in Pittsburgh and Philadelphia, you should take into account a variety of factors. These include average sale prices, the advantages and disadvantages of renting vs. buying a home, and demographic data in different zip codes. Look at household income, education attainment, and access to amenities like grocery stores, bus and subway stops. Additionally, consider the population density and historical development of the areas.

To get a more accurate picture of the real estate market, one method is to collect data on the sale prices for a number of homes recently listed, say 35, as this can give you a sense of the market's pricing trends. To understand the broader market influences, one can analyze the location's infrastructure and socio-economic indicators, which might include availability of essential services and transportation options.

Both renting and buying a home have their own advantages and disadvantages. Renting can provide flexibility and lower upfront costs, while buying is generally seen as an investment that can build equity over time. However, buying also comes with higher initial costs and potential maintenance responsibilities.

Hill Fog is a brand of bottled water in India. Asif, the marketing manager at Hill Fog, is aware of the global environment and is considering initial foreign involvement in the United States to expand production volume and realize economies of scale. Hill Fog is in the _____ stage of international development.

Answers

Answer:

The correct answer is Domestic Stage/First Stage.

Explanation:

In the first stage of the international development of a company, also known as the national stage, the orientation and operation of an organization is based on the local area, its market capacity is limited to the country of origin. However, its managers seek to transcend borders to publicize their products / services globally, initially intervening in some international market to expand their production volume and achieve economies of scale.

As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton, Michigan, Kim Radeback had to find inexpensive ways to reward high performing employees and bolster morale during a sales-flattening economic downturn. Radeback had to engage in which management function?

a.Evaluating
b.Leading
c.Controlling
d.Organizing
e.Planning

Answers

Answer:

C. Leading

Explanation:

A manager engaged in the management function of leading is inspiring and motivating workers to continue to work hard to achieve organizational plans.

Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been chosen as the base year. In 2002, the basket’s cost was $76.00; in 2004, the basket’s cost was $79.50; and in 2006, the basket’s cost was $85.00. The value of the CPI (rounded up) was: Group of answer choices no more than 90 in 2001. at least 118 in 2007. 120 in 2006. 90 in 2002. 105 in 2004.

Answers

Answer:

105 in 2004.

Explanation:

year                      basket price                  CPI

2002                       $76.00                        100

2004                       $79.50                        105

2006                       $85.00                        112

2004 CPI = $79.50 / $76 = 1.05 x 100 = 105

2006 CPI = $85 / $76 = 1.12 x 100 = 112

The consumer price index (CPI) measures the weighted average of the prices of a basket of goods and services in 21 urban centers in the US (each urban center includes more than 1 city, some include several). The information is gathered, processed and presented by the US Bureau of Labor Statistics (BLS). The CPI is used an an economic indicator (used to calculate inflation rate), or deflator, and to adjust the value of the US dollar (e.g. adjusting social security payments).

A. A cost object is a resource sacrificed or forgone to achieve a specific objective. Examples include direct​ materials, direct​ labor, and advertising. B. A cost object is a cost incurred​ (historical or past​ cost), as distinguished from a budgeted​ cost, which is a predicted or forecasted cost​ (a future​ cost). Examples include​ materials, labor, and overhead. C. A cost object is anything for which a separate measurement of costs is desired. Examples include a​ product, a​ service, and a customer. D. None of the above.

Answers

Answer:

C. A cost object is anything for which a separate measurement of costs is desired. Examples include a​ product, a​ service, and a customer.

Explanation:

The objective of the cost is to assigned the cost or to brief something that could be in terms of direct material cost, direct labor cost, manufacturing overhead cost, etc

Moreover it also have a distinct measurement which includes like product, service, customer as each one has separate measurement but they are linked to each other

Hence, the correct option is c.

Nick has saved $30 per week to buy a new Blu-ray player. He compares two different models: a Panaview that is priced at $130 and a Zony model that is priced at $140. Nick decides to purchase the Zony Blu-ray player for $140.
Identify what role money plays in each of the following parts of the story.
1. Nick can easily determine that the Panaview model has a lower price than the Zony model.
2. Nick saved $30 per week.
3. Nick pays $140 for the Blu-Ray player.

Answers

Answer:

1. Nick can easily determine that the Panaview model has a lower price than the Zony model. - Unit of Account.

One of the three roles money plays is that of Unit of Account. Money is used to measure the values of goods and services accurately, so that their values can be assessed, and more importantly, compared.

2. Nick saved $30 per week. - Store of Value.

Another one of the three roles of money is that of Store of Value. Money is a good that has intrinsic value, and can be amassed to save for the future.

3. Nick pays $140 for the Blu-Ray player. - Medium of Exchange.

The final role that money plays is that of Medium of Exchange. Money is a good that can be used to facilitate exchange among other goods and services because it can be easily stored, it works as a unit of account, it is accepted by many people, and it has some sort of official authority backing it.

Ralph owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue last year was $100,000, and his rent was $3,000 per month. He pays his one employee $2,000 per month, and the cost of ingredients and overhead averages $500 per month. Ralph could earn $35,000 per year as the manager of a competing pizza restaurant nearby. His total economic profit for the year was:___________
a. –$35,000.
b. –$1,000.
c. $20,000.
d. $34,000.
e. $65,000.

Answers

Answer:

His total economic profit for the year was –$1,000. The right answer is b.

Explanation:

In order to calculate the total economic profit for the year, we have to use the following formula:

Total economic profit = total revenue - total explicit cost - implicit cost =

Acording to the data:

Total Revenue=$100,000

Total explicit cost= ($3,000×12)+($2,000×12)+($500×12)=$ 66,000

implicit cost= $ 35,000

Hence, Total economic profit= $100,000 - $66,000 - $35,000 = -$1,000

A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?
a. joint and survivor
b. joint annuity

Answers

Answer:

A

Explanation:

With this joint and survivor annuity, the married couple gets a payout of 250 dollars as long as they are alive. As the husband dies, his wife would receive 125 dollars for the rest of her life, which only amounts to 50% of the original payment. Monthly payments are lower compared to single-life annuity this is because the joint and survivor covers both the man and his wife. But however, at the death of the man's wife, the payment she was receiving stops too.

Final answer:

The settlement option selected by the married couple for their retirement annuity is the a. 'joint and survivor' option, as it provides continued payments to the surviving spouse at a reduced rate.

Explanation:

The married couple selected the joint and survivor settlement option for their retirement annuity. This option allows for the surviving spouse to continue receiving payments after the death of the other spouse, although at a reduced amount.

Monthly payments are lower compared to single-life annuity this is because the joint and survivor covers both the man and his wife. But however, at the death of the man's wife, the payment she was receiving stops too. When the wife continues to receive $125.50 per month after her husband's death, it indicates that the annuity was arranged to provide a survivor benefit, which is a characteristic of the joint and survivor option.

White company is a calendar-year firm with operations in several countries. at january 1, 2018, the company had issued 10,000 executive stock options permitting executives to buy 10,000 shares of stock for $25. the vesting schedule is 30% the first year, 30% the second year, and 40% the third year (graded-vesting). the fair value of the options is estimated as follows: vesting date amount vesting fair value per option dec. 31, 2018 30 % $ 2.80 dec. 31, 2019 30 % $ 3.00 dec. 31, 2020 40 % $ 3.75 what is the compensation expense related to the options to be recorded in 2019?

Answers

Answer:

The compensation expense related to the options to be recorded in 2019 is $9,500.

Explanation:

The relevant fair value at Dec. 31, 2019 = (10,000 × 30% × $3) × (1/2) = $9,000 × 0.5 = $4,500

The relevant fair value at Dec. 31, 2020 = (10,000 × 40% × $3.75) × (1/3) = $15,000 × (1/3) = $5,000

Compensation expense = $4,500 + $5,000 = $9,500

Therefore, the compensation expense related to the options to be recorded in 2019 is $9,500.

Final answer:

For White company, the compensation expense recorded for stock options in 2019 is $9,000, which is calculated based on the vesting of 3,000 options at a fair value of $3.00 per option.

Explanation:

The compensation expense related to the stock options to be recorded in 2019 for White company is based on the vesting schedule and the fair value of the options on the vesting dates. According to the given information, 30% of the options vested in 2018 with a fair value of $2.80 and another 30% vested in 2019 with a fair value of $3.00. As per the graded-vesting schedule, 3,000 options (30% of 10,000) vest in 2019. To calculate the compensation expense for 2019, you need to multiply the number of options vested in 2019 by the fair value per option granted in 2019.

Therefore, the compensation expense for 2019 is 3,000 options × $3.00, which equals $9,000.

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