Answer: B - Groupshift.
Explanation:
When any group comes together and has different views it can cause a groupshift. This is different than having a discussion, conformity, role conflicts, etc. The groupshift will usually go for the most extreme ideas out of all others and go with that instead. It only takes one vocal person in the group to shift the ways the others think and change the views they had before the meeting.
The most dominant speaker in the group will be the one to persuade the others to join in their views and therefore making it a groupshift.
The following are all typical reasons to Buy or Outsource EXCEPT: A. For a cost advantage B. To gain access to state-of-the-art technology C. To protect intellectual property D. To maintain strategic flexibility E. If low volumes increase costs
Answer:
E. If low volumes increase costs
Explanation:
Outsourcing which also implies subcontract is a practice that involves having certain job functions done outside a company instead of being handled by an in-house department or employee. It is a business practice in which in-house services or job functions are given in form of contract to third party company. Some outsourcing activities include: human resource management, accounting, customer support and service, marketing etc.
Outsourcing could be considered by a company due to various reasons, but not because low volumes increase costs. This would not be a benefit to the company.
The typical reasons to Buy or Outsource are discussed, and the correct option that does not fit is identified.
Explanation:The subject of this question is Business and the grade level is College. The question is asking for typical reasons to Buy or Outsource, except for one option. Let's go through each option to determine which one is not a typical reason to Buy or Outsource.
A. For a cost advantage: This is a common reason to Buy or Outsource, as it can help reduce expenses. B. To gain access to state-of-the-art technology: This is another common reason, as it allows companies to benefit from advanced tools and equipment. C. To protect intellectual property: Protecting intellectual property is an important consideration when outsourcing, so this option is also a typical reason. D. To maintain strategic flexibility: This is the correct answer. Maintaining strategic flexibility is not typically a reason to Buy or Outsource. E. If low volumes increase costs: This is also a possible reason, as outsourcing can help reduce costs associated with low volumes.
So, the correct answer is
D. To maintain strategic flexibility.
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David, the promoter of an outdoor concert, expects a net profit of $100,000, unless it rains, which would reduce the net profit to $40 comma 000. The probability of rain is 0.20. For a premium of $25 comma 000 David can purchase insurance coverage that would pay him $100,000 in case of rain. Based on expected values, which is David's wiser choice in this situation?
Answer:
Not purchase insurance
Explanation:
The probability of rain is 0.20
=> The probability of the not rain situation is: 1 - 0.2 = 0.8
If David does not buy the insurance, the expected net profit he would receive can be calculated as following:
Expected net profit = Probability of rain x Net profit when its rains + Probability of not rain x Net profit when it does not rain
= 0.20 x 40,000 + 0.8 x 100,000 = $88,000
If David buy the insurance:
+) When it does not rain: He will receive net profit of $100,000
+) When it rains: He will receive $40,000 as profit and $100,000 as insurance coverage
So that:
Expected net profit = Probability of rain x Net profit when its rains + Probability of not rain x Net profit when it does not rain - Insurance fee
= 0.2 x (40,000 + 100,000) + 0.8 x 100,000 - 25,000 = $83,000
As we can see, the expected net profit David receives when buying insurance is less than when he does not buy, so that he should not buy the insurance.
Final answer:
David's wiser choice, based on the expected values, would be not to purchase the insurance as his expected profit without insurance is $88,000, which is higher than the expected profit of $83,000 with insurance.
Explanation:
The question poses a scenario involving expected value calculation to determine the best financial decision for an outdoor concert promoter named David. We are to evaluate whether purchasing insurance for an outdoor concert, given a certain probability of rain, is a wise choice based on expected values.
If David does not purchase insurance, his expected profit would be:
(0.80)($100,000) + (0.20)($40,000) = $80,000 + $8,000 = $88,000.
If David does purchase the insurance for $25,000, his expected profit would be:
(0.80)($100,000 - $25,000) + (0.20)($140,000 - $25,000) = $60,000 + $23,000 = $83,000.
By comparing the two expected values, the higher expected profit is without purchasing the insurance, which is $88,000 versus $83,000 with insurance.
Rita, a salesperson in a textile manufacturing company, makes a sales pitch to a representative of a garment manufacturing company. During the sales presentation, Rita shows the representative a few samples of the new fabric that Rita's company recently introduced in the market. The representative, however, expresses concern that her customers may not be keen on wearing clothes made of those fabrics. Rita responds to this by saying "I can certainly understand your apprehensions. Mark, from a company similar to yours, had the same concerns initially. However, we recently received feedback from him, and he says that his customers love the clothes made from the new fabric." In this case, Rita uses the _____ method to handle sales resistance.
Answer: The options are given below:
A. forestalling
B. direct denial
C. translation
D. coming to that
E. feel, felt, found
The correct option is E.
Explanation: The feel, felt, found method is a strategy that is age-tested and has been proven to persuade customers gently into a new way of thinking about a particular product or service.
There are three separate but essential parts to the feel, felt, found method, they are;
- Feel, which is basically used in the context below:
“I understand how you feel.”
Using sentences like this will let a customer know that you heard him/her and that you can relate with his or her complaints.
- Felt, which is usually used in the context below:
“Initially, other customers felt that way.”
Using words like these is basically letting the client know that their initial thought about the product or service is common, and that it is subject to change.
- Found, which can be used in the context below:
“What they discovered, however, was that after taking so and so action was that they got positive results"
This will let the client know that there is an action that should be taken to get the desired result, and this is the action you want the client to take.
This is the strategy that Rita in the question above used.
Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia. This form of FDI is called consolidation. a greenfield investment. an acquisition. a licensing agreement. mass customization.
Answer: (A) Greenfield investment
Explanation:
The greenfield investment is one of the type of FDI ( Foreign direct investment) that helps in constructing the various types of new production facilities in an organization.
The main objective of the greenfield investment process is to making the manage the investor control process and also form different types of opportunities for managing the partnerships in the market.
According to the given question, the Greenfield investment process is helps in establishing the various types of new operation in Indonesia and it is the form of foreign direct investment.
Therefore, Option (A) is correct answer.
To prevent banks from using excess reserves to make loans that would increase the money supply, the Federal Reserve could conduct open-market ______ and _____ the interest rate paid on bank reserves. a) sales; lower b) purchases; raise c) sales; raise d) purchases; lower
Answer:
The answer is C) Sales & Raise
Explanation:
Answer:
C) Sales; raise
Explanation:
To prevent banks from using excess reserves to make loans that would increase the money supply, the Federal Reserve could conduct open-market SALES and RAISE the interest rate paid on bank reserves.
Open market operations can be used to control money supply.
Government securities are bought and sold in the open market to either increase or decrease money supply.
If the government wants to reduce money supply, it sells government bonds to the public. Money is collected in return for sale of security thereby reducing money supply.
In contrast, if government wants to increase money supply, it buys securities and more money is available in the economy.
The government can also influence the money supply by modifying reserve requirements.
Reserve requirement is the amount of funds banks must hold against deposits in bank accounts.
If reserve requirement is low, banks can loan out more money thereby increasing money supply.
In contrast, If reserve requirement is high, banks have less fund to loan out thereby decreasing money supply.
A greenfield venture may be too slow to establish a sizable presence when multiple choice organizationally embedded competencies are involved. there are no well-established incumbent enterprises in the market. skills, routines, and cultures need to be transferred. a quick execution of market entry is not a priority. global competitors are interested in establishing a presence.
Answer:
Global competitors are interested in establishing a presence.
Explanation:
A greenfield venture may be too slow to establish a sizable presence when global competitors are interested in establishing a presence.
As a global brand they would have gained more market experience and penetration, thus making greenfield a weaker competitor.
The expense of public goods is:
A. determined by the forces of supply and demand in the product market.
B. determined by the forces of supply and demand in the factor market.
C. funded by large corporate organizations.
D. funded through public finance measures such as taxation. funded by charitable trusts.
Answer:
D. funded through public finance measures such as taxation.
Explanation:
Public goods are not necessarily provided in the free market, although it may be the case.
For this reason, governments take the function of prodiving public goods such as roads, elementary schools, and hospitals. Because the government does not produce as much wealth as the private sector in a market economy, what the goverment does is taxing the private sector to obtain the necessary funds to provide the public funds.
In case taxation is not enough, the government issues debt, and in extreme cases, prints money, a practice known as seignorage.
Answer:
D. funded through public finance measures such as taxation. funded by charitable trusts.
Explanation:
Base on the scenario been described in the question, the expense of the public goods is been financed by public finance taxation, this is done through the government, because the government does not have much wealth compared to the private sector, another way it us been founded is through charitable trusts
On October 1, 2013, Holt Company places a new asset into service. The cost of the asset is $80,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2013, balance sheet assuming that Holt Company uses the straight-line method of depreciation? A. $60,000 B. $72,000 C. $52,000 D. $77,000
Answer:
D. $77,000
Explanation:
Depreciation expense using the straight line depreciation method = (Cost of asset - Salvage value) / useful life
($80,000 - $20,000) / 5 = $12,000
Accumulated Depreciation between October 1, 2013 and December 31, 2013 = (3/12) x $12,000 = $3,000
Book value = Cost of asset - accumulated deprecation
= $80,000 - $3,000 = $77,000
I hope my answer helps you
Answer:
D. $77,000
Explanation:
Depreciation is the recording of asset expense due to its use. It is due to use of fair value of the asset after use. The expense value reduces the asset value over useful life period.
As per given data
Cost of Asset = $80,000
Useful life= 5 years
Salvage Value = $20,000
Asset is purchased on October 1, 2013 and on December 31, 2013 depreciation of only 3 months has accrued.
Depreciation per year = (Cost of Asset - Salvage Value) / Useful life = ($80,000 - $20,000)/ 5 = $12,000
Depreciation Expense for the year 2013 = $12,000 x 3/12 = $3,000
Book value of the asset is the net of accumulated depreciation of the asset. The accumulated depreciation on December 31, 2013, is $3,000
Book Value = Cost - Accumulated Depreciation = $80,000 - $3,000 = $77,000
In 2018, it was discovered that Jenson Technologies had debited an expense account for the $400,000 cost a computer purchased on January 1, 2016. The computer's useful life was estimated to be four years with no residual value. Straight-line depreciation is used by Jenson. Ignoring income taxes, what journal entry will Jenson use to correct the error?
Answer:
Explanation:
journal entry will Jenson use to correct the error
Date Account Titles And Explanation Debit Credit
Computer $400,000
Accumulated depreciation ($100,000 × 2 years) $200,000
Retained earnings ($400,000 - $200,000) $200,000
Annual depreciation = (Cost - Salvage Value) / 4
= ($400,000 - 0) / 4
= $100,000
To correct the error, Jenson Technologies will need to debit the accumulated depreciation account for $400,000 and credit the expense account for the same amount. The journal entry will be as follows:
Dr. Accumulated Depreciation - Computer: $400,000
Cr. Depreciation Expense: $400,000
The computer was incorrectly expensed in full when it was purchased, rather than being capitalized and depreciated over its useful life. Since the computer has a useful life of four years with no residual value, the annual depreciation expense would be calculated as follows:
Cost of the computer / Useful life = $400,000 / 4 years = $100,000 per year
By the end of 2018, two years would have passed since the purchase of the computer, so the total depreciation expense for two years would be:
$100,000 per year * 2 years = $200,000
However, since the entire cost was expensed in 2016, there is no need to record the depreciation expense for 2017 and 2018. Instead, the correction involves reversing the incorrect expense and recognizing the accumulated depreciation that should have been recorded.
The accumulated depreciation account is a contra-asset account that represents the total amount of depreciation expense that has been recorded over the life of the asset. By the end of the asset's useful life, the accumulated depreciation should equal the asset's cost, assuming it has no residual value.
To correct the error, Jenson Technologies needs to adjust the accounts to reflect the proper treatment of the computer as a depreciable asset. The company will debit the accumulated depreciation account for the full cost of the computer ($400,000), which effectively removes the incorrect expense from the income statement and capitalizes the computer on the balance sheet. The credit will go to the expense account that was incorrectly debited, restoring its balance.
This correction does not affect the depreciation expense that would have been recorded in the normal course of business, as the asset should have been depreciated over its useful life. The correction simply rectifies the initial error in the accounting treatment of the computer's cost."
A favorable direct labor efficiency variance might indicate that
Answer:
The materials and factors of production were available and in good quality which resulted in workers taking less time to complete a task. this also means that workers were more skilled an took less time.
Explanation:
A favorable direct labor efficiency variance might indicate that, the materials and other factors of production were available and in good quality which resulted in workers taking less time to complete a task. this also means that workers were more skilled an took less time.
Answer:
Highly skilled workers were used that performed the task faster than expected.
Explanation:
When highly skilled workers are used to perform certain task coupled with the provision of the necessary raw materials need per time, there will definitely be a great output from such input compared to using of unskilled workers. This will be clearly seen in the time taken, precision and quality of the output from such task.
Inventory and safety stock planning ________. leads to the development of the overall demand forecast leads to the development of a transportation schedule leads to the development of a sourcing plan focuses on delivering products or services to consumers as well as warehousing focuses on the coordination of all activities needed to create a product or service
Answer: leads to the development of a sourcing plan
Explanation:
Inventory planning includes the safety stock planning. Safety stock planning means the additional maintenance of the stock to avoid the situation of being completely out of stock when needed. Safety stock acts as the buffer stock during the times of unexpected sudden increase in demand.
Through inventory and safety planning the goods can be accumulated based on the sale or the production of the firm. These things lead to the development of the source planning.
You plan to win customers by being recognized as the manufacturer that can deliver exactly what customers want. Your logistics system must be developed to support design changes and unique customer needs. The best transportation mode and warehousing system combination is probably ___________.
Answer:
Highway and postponement
Explanation:
The best transportation mode and warehousing system combination is probably highway and postponement.
As a manufacturer using the highway can help you deliver quality haulage and logistics services to your customers because it's fast, has less check points and toll free sometimes.
Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we know that the opportunity cost of 1 chair for ____________.
Answer:
for Mike: 0.2 tables,for Sandy: 1/3 tables
Explanation:
To calculate the opportunity cost, we can simply divide the cost of what is given up by what is gained.
=> The opportunity cost for chair can be calculated by dividing the total numbers of table made in 1 month by the numbers of chairs made in 1 month.
In 1 month, Mike can make 4 tables or 20 chairs, so that the Opportunity cost of 1 chair is: OC of 1 chair for Mike = 4/20 = 0.2 tableIn 1 month, Sandy can make 6 tables or 18 chairs, so that the Opportunity cost of 1 chair is: OC of 1 chair for Sandy = 6/18 = 1/3 tableHelp me please................................
Answer:
The operation performance of a business cannot be evaluated through only the revenue it generates as it does not the money that the businessman earns. To simplify it, when starting business, the founder has to invest on the business an amount of money, which is the expense for business establishment and operation. After operating, the business generates the revenue. However, the true earning is only equal to the profit (profit = expense - revenue).
So in the situation of the business owner given, the reason he cannot keep the doors open is because the expense on operating business of him is greater than the revenue ($2000), which makes the profit less 0. So that he cannot actually earn more money but just lose if he continues investing more.
Refer to the hr report section of the inquirer. chester will continue to keep their current hourly levels of training in order to help reduce turnover and improve productivity next year. how much must be spent per employee on an hourly basis to maintain the current training commitment?
Complete Question:
Refer to the HR Report section of the Inquirer. Baldwin will continue to keep their current hourly levels of training in order to help reduce turnover and improve productivity next year. How much must be spent per employee on an hourly basis to maintain the current training commitment?
The photo of the table is attached as under:
Select: 1
$8,786
$18
$20
$30
Answer:
$20
Explanation:
We can find the training cost per employee per hour by using the following formula:
Training cost per employee per hour = Training Cost / Complement Training Hours
Here
Complement Training Hours = Number of Compliments * Number of hours
Total training hours = 80 Hours
Number of complements = 579
By putting values in the complement training hours formula, we have:
Complement Training Hours = 579 * 80 = 46,320 Hours
Total cost of training per employee Chester ($927 Given in thousands)
= $927,000
By putting the values, we have:
Training cost per employee per hour = $927,000 / 46,320 = $20.01 or $20
Option C is correct here.
The hourly training cost depends on the total training expenses and the number of employees.
Explanation:To determine how much must be spent per employee on an hourly basis to maintain the current training commitment, we need more specific information about the training expenses and the number of employees. The hourly training cost can be calculated by dividing the total training expenses by the number of employees. For example, if the total training expenses are $10,000 and there are 100 employees, the hourly training cost would be $100 per employee ($10,000 / 100 = $100). It's important to note that this is just a hypothetical example and the actual numbers may vary depending on the specific data given in the HR report section of the inquirer.
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Back to Study Plan Score: 193/200 Question Value: 35 points A baker adds yeast and warm water to bread to cause it to rise. What other ingredient of bread is necessary for this to occur, and what is the by-product being produced that causes the bread to rise
Answer:
Yeast is a basic ingredient which causes the bread to rise.
Answer: 1. Flour is the third ingredient.
2. Carbon dioxide and Ethanol
are by-products that also
cause rising.
Explanation:
Bread rises in a process known as Fermentation. Fermentation is the process in which microorganisms such as yeast help to break down molecules like sugar in an anaerobic process, eventually giving off a gas and alcohol.
Ingredients required include; yeast, water, and flour. The mixture of yeast and water react with the sugar present in the flour to cause rising. Carbon dioxide and ethanol are then produced.
The gluten (which Is produced when flour proteins mix with water) in the dough mixture reacts with the carbon dioxide gas, making it hard for the gas to be emitted. This process causes rising.
As ethanol is given off and evaporating from the mixture, rising also occurs.
On November 1, 2016, Ivanhoe Company places a new asset into service. The cost of the asset is $70000 with an estimated 10-year life and $10000 salvage value at the end of its useful life. What is the depreciation expense for 2017 if Ivanhoe Company uses the straight-line method of depreciation
Answer:
$6,000
Explanation:
The computation of the depreciation expense using the straight line method is shown below:
= (Original cost - salvage value) ÷ (estimated useful life)
= ($70,000 - $10,000) ÷ (10 years)
= ($60,000) ÷ (10 years)
= $6,000
Since we have to compute the depreciation for year 2017 so we take the full year depreciation i.e $6,000
what is the business definition of guilt.
Answer:
when a business man or woman regrets the decision they have made that could have impacted their business
Frank runs a scuba-diving business that offers lessons and sells scuba-diving equipment. Frank wants to engage with users who are researching scuba-diving lessons. Which marketing objective should Frank choose when creating his Display campaign?
Answer:
influence consideration
Explanation:
Influence consideration is a marketing objective that is targeted toward a group of potential customers who already aware of your product, but still not sure whether your product is better than your competitor's. So they're pretty much weighing their options.
In the example above, The target is the users who are researching scuba-diving lessons. The interest for the product is already exist. In order to attract the attention toward his business, Frank need to create a campaign that offer more value compared to the competitors. (probably can be done by giving a couple of preview about what the lesson would look like or offering money back guarantee)
During the Christmas season, people tend to draw money out of their checking accounts to pay for presents. As a result, the money multiplier will: become more volatile. not change. decrease. increase.
Answer: decrease
Explanation:
The money multiplier is the amount of money generated by banks with each dollar of reserves. The reserves is the amount of deposits which the Federal Reserve wants banks not to lend but rather hold. The money multiplier is therefore the ratio of deposits to the reserves in the banking system.
The money multiplier shows the ratio of the increase or decrease in money supply in relation to the increase or decrease in deposits. During the Christmas period, people draw lots of money out of their accounts to buy presents and other things. This will lead to a decrease in the money multiplier.
In 2009 the federal excise tax on cigarettes was raised. In response, the CDC noted that "... because low-income groups are more responsive to price increases, increasing the real price of cigarettes can reduce cigarette consumption among low-income smokers by a greater percentage than among higher-income smokers, and thereby diminish socioeconomic smoking disparities."This quote by the CDC implies what economic outcome?
Answer:
The increase in excise tax will work as a negative incentive for lower income groups who smoke, thus lowering the rate of smokers in this group.
Explanation:
Price raising of cigarettes is been considered to be for the lessen the usage of cigarettes and is been considered to be most effective step taken for this method.
The resulting increase in price may cut down the number of people using them at a very high rate. Case study gave the survey reports as 5 to 6% downfall of the rates of using cigarettes.
It is also seen that smoking is generally done by the most low income, working- class and the low education people.
The study shows that imposition of taxes had lead to a decrement of cigarettes using people. The increase in the excise taxes will work as a incentive of negative in nature for those of the groups belonging to lower income and hence lowering the rate of people using it in this group.
Tempe LLC incurred the following costs during its first year: Legal fees for drafting the operating agreement $18,000 Syndication costs $19,000 Preopening advertising expenses $20,000 Accounting fees for tax advice of an organizational nature $15,000 Training costs for new employees before opening the business $12,000 The amount of Tempe's startup costs is?
Answer:
The start up cost of the Tempe amounts to $32,000
Explanation:
Startup cost is the cost or an expense which is incurred during the procedure of creating or establishing the new business. And the example of the start up costs or pre- opening cost are research expense, business plan and expense for technology. The Post- opening expense involve promotion, employee expense and advertising.
The start up costs of Tempe is computed as:
Start up costs = Pre- opening advertising expenses + New employees training costs before opening the business
where
Pre- opening advertising expenses is $20,000
New employees training costs before opening the business is $12,000
So, putting the values above:
Start up costs = $20,000 + $12,000
Start up costs = $32,000
True or False: You do not need to pay taxes if you earn income in cash.
It is false that you do not need to pay taxes on cash income. All earned income, including cash payments, is subject to taxation by law, and failure to pay taxes can result in fines or jail time.
Taxes must be paid on all forms of earned income, regardless of whether it is received in cash. The statement that you do not need to pay taxes if you earn income in cash is False. Environments with high income taxes and less stringent tax enforcement may encourage an underground economy where cash transactions occur off the books. However, not reporting income, including cash earnings, and not paying due taxes is illegal and can lead to fines or imprisonment. Additionally, while participating in the underground economy might provide short-term benefits such as avoiding taxes or even collecting unemployment insurance, it undercuts legitimate economic activities and may have long-term financial and legal consequences.
An investor has purchased stock in a firm. The investor believes that, at the end of the year, there is 0.20 probability that the stock will show a $3000 profit, a 0.10 probability that the stock will show a $6000 profit, and a 0.70 probability that the stock will show a $2000 loss. What is the expected profit in the stock?
Answer:
loss of $200
Explanation:
As given, there are three cases can happen:
1) 0.20 probability that the stock will show a $3000 profit
=> 0.20 probability that profit = $3,000
2) 0.10 probability that the stock will show a $6000 profit
=> 0.10 probability that profit = $6,000
3) 0.70 probability that the stock will show a $2000 loss
=> 0.70 probability that profit = - $2,000
The expected profit in the stock at the end of the year can be calculated as following:
Expected profit = Probability case 1 x Profit case 1 + Probability case 2 x Profit case 2 + Probability case 3 x Profit case 3
=0.2 x 3,000 + 0.1 x 6,000 + 0.7 x (-2,000)
=. 600 + 600 -1,400 = -200
So that, the expected profit in the stock is the loss of $200
Jamie received a bonus of $3,000. She decided to deposit the money in a savings account that earns 3.5% compounded daily for 180 days. Find the compound amount after 180 days
The compound amount recieved by Jamie after 180 days is $1,466,844.98
Explanation:
We know that money in any sort of banking account earns interests in a compounding manner.
Amount at the end of time “x” is given by A= P(1+R/100) ˣ
Where A= amount after the said time period
P= Principal
R= Rate
x= time period
One must note that “x” and “R” must be in same time-frame i.e. if the rate is compounded daily, time period must be considered daily and so on.
Substituting the values of P as $ 3000, R as 3.5%, and x as 180
Amount after 180 days= 3000 (1+3.5/100) ¹⁸⁰
Amount= $1,466,844.98
Thus, the amount is $1,466,844.98
Harold asks his prospects several questions to understand the reasons for their hesitation in buying his product. He tries to identify all the issues and tries to solve them immediately. From this scenario, it is evident that he uses the _____ method of obtaining commitment.
Answer:
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Explanation:
Bosio Inc.'s perpetual preferred stock sells for $102.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?
The cost of preferred stock for Bosio Inc. to use in the WACC calculations is determined based on the annual dividend paid and the net price obtained after accounting for flotation costs, which work out to about 8.63%.
Explanation:Bosio Inc.'s cost of preferred stock for use in calculating the weighted average cost of capital (WACC) can be determined by considering the annual dividend and the net price it will receive after flotation costs. As the stock price paid by investors is $102.50 per share and the flotation cost is 4.00%, the net price Bosio Inc. will receive is $102.50* (1-0.04) = $98.40. The company pays an annual dividend of $8.50. Thus, the cost of preferred stock or the requisite rate of return for the investors is the annual dividend divided by the net proceeds from the sale of the stock, i.e., $8.50/$98.40 = 0.0863 or 8.63%.
This figure is used in the calculation of the WACC to reflect the cost of financing from issuing preferred stock. Keep in mind that this is a simplified scenario and in real life, the calculation might need to take into account more complex factors, such as tax adjustments, the growth rate of dividends, or changes in stock prices over time.
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Bosio Inc.'s cost of preferred stock for WACC calculation is approximately 8.64%, taking into account a $102.50 share price, $8.50 annual dividend, and 4.00% flotation cost.
Bosio Inc.'s perpetual preferred stock sells for $102.50 per share and pays an $8.50 annual dividend. If the company sells a new preferred issue, it incurs a flotation cost of 4.00%. To calculate the cost of preferred stock for WACC, use the formula:
Cost of Preferred Stock = Dividend / (Price * (1 - Flotation Cost))
Given the details:
Dividend: $8.50Price: $102.50Flotation Cost: 4.00% (or 0.04)The calculation is:
Cost of Preferred Stock = $8.50 / ($102.50 * (1 - 0.04)) = $8.50 / $98.40 ≈ 0.0864 or 8.64%
Therefore, the company's cost of preferred stock for use in calculating the WACC is approximately 8.64%.
The daily herald runs an article on a restaurant opening, this is an example of
The Daily Herald running an article on a new restaurant is an example of local news coverage, which falls under the broader field of community journalism. In the digital age, newspapers have extended their services to social media platforms for better reach.
Explanation:The Daily Herald running an article on a restaurant opening is an example of local news coverage. Newspapers have long been a trusted source of information for communities, providing timely and relevant content about local events and happenings. This includes restaurant openings, local politics, school events, and more.
In the traditional newspaper business model, articles on new local restaurants are a standard feature because they are of immediate interest to the community. The readers want to know about the nature of the restaurant, its offerings, location, opening hours, etc. This type of news falls under community journalism, which primarily focuses on the news and information needs of the communities they serve.
Learn more about Community Journalism here:https://brainly.com/question/33962138
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At the end of 2021, Havana contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO.
What is Havana's 2016 actual return on plan assets?
Answer:
Havana's 2016 actual return on plan asset is $504 thousand.
Explanation:
Havana's 2016 actual return on plan asset is $504 thousand.
Let actual return be x.
Ending balance of plan assets = Beginning balance of plan asset + Actual return + Cash Contributions - Retiree benefits
$6,336 = $5,760 + x + $696 - $624
x = $6,336 - $5,760 - $696 + $624
x= $504 (answer).
Final answer:
The actual return on plan assets cannot be calculated with the given information.
Explanation:
The actual return on plan assets is calculated by subtracting the beginning fair value of plan assets from the ending fair value of plan assets and adding any contributions made to the plan during the year. In this case, we have a contribution of $696 thousand to the plan. We also know that the expected rate of return on plan assets is 10%. However, we don't have information about the beginning and ending fair value of plan assets.
Therefore, we cannot calculate the actual return on plan assets with the given information.
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,000, which includes fixed costs of $68,000 and variable costs of $72,000. The company can buy the part from an outside supplier for $3.80 per unit, and avoid 30% of the fixed costs. If Blue Ridge Bicycles makes the part, how much will its operating income be?
Answer:
$71,000
Explanation:
The computation of operating income is shown below:-
Total costs if company bought = Cost of production × Outside supplier per unit) + (Fixed cost × Remaining percentage)
= (43,000 × $3.80) + ($68,000 × (100% - 30%))
= (43,000 × $3.80) + ($68,000 × 70%)
= $163,400 + $47,600
= $211,000
Loss in Income if part is bought = Total costs if company bought - Total costs originally
= $211,000 - $140,000
= $71,000
Therefore, Making profit will be more by $71,000 and for computing the Loss in Income if part is bought we simply applied the above formula.
Blue Ridge Bicycles' operating income, if it makes the part instead of buying it, will be [tex]\( {\$23,200} \)[/tex].
To determine whether Blue Ridge Bicycles should make or buy the part, let's calculate the operating income for each scenario.
Given data for making the part:
- Total production cost for 43,000 parts: $140,000
- Fixed costs: $68,000
- Variable costs: $72,000
Step 1: Calculate the variable cost per part:
[tex]\[ \text{Variable cost per part} = \frac{\text{Variable costs}}{\text{Number of parts}} = \frac{72,000}{43,000} = $1.6744 \][/tex]
Step 2: Calculate the total cost per part:
[tex]\[ \text{Total cost per part} = \frac{\text{Total production cost}}{\text{Number of parts}} = \frac{140,000}{43,000} = $3.2558 \][/tex]
Step 3: Calculate the total cost if Blue Ridge Bicycles makes the part:
[tex]\[ \text{Total cost (making)} = \text{Fixed costs} + \text{Variable costs} = 68,000 + 72,000 = $140,000 \][/tex]
Given data for buying the part:
- Cost to buy from outside supplier: $3.80 per unit
- Avoid 30% of fixed costs if buying
Step 4: Calculate the avoided fixed costs if buying:
[tex]\[ \text{Avoided fixed costs} = 30\% \times 68,000 = $20,400 \][/tex]
Step 5: Calculate the total cost if Blue Ridge Bicycles buys the part:
[tex]\[ \text{Total cost (buying)} = \text{Cost to buy} \times \text{Number of parts} + \text{Avoided fixed costs} \][/tex]
[tex]\[ \text{Total cost (buying)} = 3.80 \times 43,000 + 20,400 = $163,200 \][/tex]
Comparison and Decision:
Total cost if Blue Ridge Bicycles makes the part: $140,000
Total cost if Blue Ridge Bicycles buys the part:$163,200
Since making the part results in a lower total cost compared to buying the part ($140,000 < $163,200), Blue Ridge Bicycles should choose to make the part.
Operating Income Calculation:
To find the operating income when Blue Ridge Bicycles makes the part:
[tex]\[ \text{Operating Income (making)} = \text{Sales} - \text{Total Cost (making)} \][/tex]
Assuming sales revenue is not provided in the problem, we can calculate the difference in costs:
[tex]\[ \text{Operating Income (making)} = \text{Total Cost (buying)} - \text{Total Cost (making)} \][/tex]
[tex]\[ \text{Operating Income (making)} = $163,200 - $140,000 \][/tex]
[tex]\[ \text{Operating Income (making)} = $23,200 \][/tex]