Answer:
check clearing
Explanation:
Answer:
Check Clerking
Explanation:
Gradpoint
If the government sets a price floor of $5 per bushel, ____ bushels of corn are produced, of which ___ are purchased by consumers, and _____ by the government. The program costs the government ___. Farmers receive ____ in total revenue .
Answer: If the government sets a price floor of $5 per bushel, Say 1000 bushels of corn are produced, of which 300 bushels are purchased by consumers, and 700 bushels by the government. The program costs the government $3500. Farmers receive $5000 in total revenue.
Explanation: A price floor is a legitimate minimum value that the government sets on a product in the market, usually to protect the suppliers/farmers. Using the ballpark values as in the answer, to estimate and explain the concept of a price floor:
Say total quantity produced is 1000 bushels of corn from which the Market demands 300 bushels. Given that the government has set a price floor at $5 per bushel; then the Government has to buy the surplus bushels of corn in the market from the farmers.
Surplus bushels = Quantity produced – Quantity purchased
1000 bushels – 300 bushels = 700 surplus bushels of corn to be purchased at $5 each by the government
Therefore: It would cost the government (700 bushels x $5 =) $3,500 to mop up the surplus in the market and pay the farmers. The 300 bushels purchased by consumers would yield (300 x $5 =) $1,500 in earnings for the farmers. Total earning by the farmers = $3500 (from the government) and $1500 from consumers) = $5000.
I hope this helps to understand the concept of price floors.
he following information relates to current production of outdoor chaise lounges at Backyard Posh: Variable manufacturing costs per unit $ 105 Total fixed manufacturing costs $525,000 Variable marketing and administrative costs per unit $ 33 Total fixed marketing and administrative costs $250,000 The regular selling price per chaise lounge is $ 350. The company is analyzing the opportunity to accept a special sales order for 400 chaise lounges at a price of $ 200 per unit. Variable marketing and administrative costs would be $ 15 per unit lower than on regular sales. Fixed costs would increase by $ 13 comma 000. The company has the capacity to produce 35 comma 000 chaise lounges per year, but is currently producing and selling 9 comma 000 chaise lounges per year. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected? A. Decrease by $ 30 comma 800 B. Decrease by $ 17 comma 800 C. Increase by $ 30 comma 800 D. Increase by $ 17 comma 800
Answer:
Increase by $17,800
Explanation:
If the company accepts the special order for 200 chaise lounges, its profit will be:
Sales revenue = 400 x $200 = $80,000
variable production costs = 400 x $105 = ($42,000)
variable marketing and administrative costs = 400 x $18 = ($7,200)
increase in fixed costs = ($13,000)
profit resulting from the special order = $17,800
Last year, Big W Company reported earnings per share of $2.50 when its stock was selling for $50.00. If its earnings this year increase by 10 percent and the P/E ratio remains constant, what will be the price of its stock?
Answer:
The price of the stock is $55
Explanation:
Computing the present EPS (Earnings per share) as:
EPS (Earnings per share) = Last year earnings per share × Increase in EPS by 10%
where
Increase in EPS by 10% = 1 + Growth rate
= 1 + 0.1
= 1.1
= $2.5 × 1.1
= $2.75
Previous P/E ratio is computed as:
P/E ratio = Selling Price / Last year EPS
= $50 / $2.5
= $20
Now,
Computing the current stock price as:
P/E = Market Price per share/ Current EPS
$20 = Market Price per share / $2.75
$20 × $2.75
= $55
Based on the given P/E ratio and the 10 percent increase in earnings, the price of the stock is expected to be $55.00.
Explanation:If the Big W Company reported earnings per share of $2.50 last year when its stock was selling for $50.00, this indicates that the Price to Earnings (P/E) ratio was 20 (since $50.00/$2.50 = 20).
Now the question states that earnings have increased by 10 percent this year. So, the new earnings per share would be $2.75 because 10% of $2.50 is $0.25, and $2.50 + $0.25 = $2.75.
If the P/E ratio is supposed to stay constant at 20, then you would multiply the new earnings per share ($2.75) by the P/E ratio (20).
So, $2.75 x 20 = $55.00 would be the new price of the stock, assuming the P/E ratio remains constant.
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A machine is purchased on September 30, 2009, for $60,000. Useful life is estimated at four years and no residual value is anticipated. The Double Declining Balance depreciation method is used. The acquiring company's fiscal year ends on December 31. Depreciation for 2010 should be: $15,000 $30,000 $26,250 None of the above.
Answer:
$30,000
Explanation:
Given
Cost of assets purchased on September 30, 2009 = $60,000
Useful life = 4 years
Annual depreciation using the straight line method = $60000/4
= $15,000
Using the Double Declining Balance depreciation method is used
Annual depreciation = 2 × $15,000
= $30,000
Depreciation for 2010 is $30,000.
Which of the following is notone of the assumptions of the basic EOQ model?
A. Annual demand requirements are known and constant.
B. Lead time does not vary.
C. Each order is received in a single delivery.
D.Quantity discounts are available.
E. All of the above are necessary assumptions.
Answer:
D. Quantity discounts are available.
Explanation:
The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
The total cost is computed below:
= Purchase cost + ordering cost + carrying cost
These three components are required to compute the total cost and for calculating the economic order quantity, the ordering cost and the carrying cost is required.
The number of orders would be equal to
= Annual demand ÷ economic order quantity
The average inventory would equal to
= Economic order quantity ÷ 2
The total cost of ordering cost and carrying cost equals to
Ordering cost = Number of orders × ordering cost per order
Carrying cost = average inventory × carrying cost per unit
No quantity discounts are available.
Final answer:
Option D, 'Quantity discounts are available,' is not an assumption of the basic EOQ model; the model's basic assumptions include a constant demand, non-varying lead time, and single delivery for each order.
Explanation:
The question relates to the assumptions of the Economic Order Quantity (EOQ) model, which aids in determining the ideal order quantity that minimizes costs associated with inventory management. When examining the listed options, it's clear that option D, 'Quantity discounts are available,' is not a basic assumption of the EOQ model.
The EOQ model assumes that the cost per unit of product is constant and doesn't account for possible discounts that might be applied with different order sizes. The assumptions of a constant demand, non-varying lead time, and receiving orders in a single delivery are all parts of the basic EOQ model. However, the availability of quantity discounts is not a necessary assumption for this model.
Because eric is a price taker, this last condition can also be written as
Answer:
The question is incomplete, I need more elements to answer.
Explanation:
Mike and Jane Lewis, a married couple filing a joint return, paid funeral expenses of $10,000 for their dependent child in the current year. Select the appropriate tax treatment of the funeral expenses.
Answer:
Funeral expenses are not tax deductible for any type of individual.
According to IRS, funeral and burial expenses can be deducted only if they are paid by the dead person's estate. In other words, no living person can deduct funeral expenses. Only in case you die, the executor of your estate can deduct funeral expenses form your estate taxes.
What are the gains to be had from simplifying the tax code? A. Increased efficiency of households and firms. B. Greater clarity of the decisions made by households and firms. C. Resources from the tax preparation industry freed up for other endeavors. D. All of the above.
Answer:
The correct answer is D. All of the above.
Explanation:
Simplification in the field of taxes can be observed considering the tax structure, if it implies a complex tax system there will be higher compliance and administration costs, but the complexity of the system is sometimes difficult to eliminate. There are few simple things in tax compliance.
There are complications that can be avoided and these usually begin with the fact that the officials of the Tax Administration are unaware of the tax regime or the provisions of the tax laws. Usually this is linked to a limited knowledge of tax law as a discipline with a dogmatic of its own. The public function in the field of tributes is often occupied by assuming the Turkish proverb that says: "If Allah gives you authority, it will also give you the intelligence necessary to know how to command."
Regularly every official in the area of tax law is a kind of legal autarchy that knows spontaneously and naturally the subject under his responsibility. Thus, in each general rule or in each resolution or decree, concepts that are clear in the Tax Code are redefined, but redefined to give it another meaning in accordance with the notions just arrived at the Administration. Arranged with the pragmatic and practical statute that on the road the load is rigged.
Creams-R-Us is known for making facial lotions and creams, which are mostly promoted to women. They introduced a modified version of their facial lotion targeted to men. Creams-R-Us is employing a _____ product strategy.
Answer:
product modification strategy
Explanation:
Product modification strategies are usually carried out with products that are already in its maturity stage. It basically refers to adding modifications that increase the perceived value or use of the product, in an attempt to appeal to broader markets. That way the life cycle of the product will be extended.
The main difference with a product line extension strategy, is that a product modification strategy is used to reach new markets, while product line extension is used to increase the sales within an existing market.
The correct term for the strategy employed by Creams-R-Us is a market segmentation product strategy.
When a company like Creams-R-Us takes an existing product and modifies it to target a different segment of the market, in this case, men, they are engaging in market segmentation. This strategy involves dividing a broad target market into subsets of consumers with similar needs, wants, or characteristics, and developing or modifying products to cater to the preferences of these specific segments. By creating a modified version of their facial lotion specifically for men, Creams-R-Us is addressing the unique skincare needs and preferences that may exist within the male consumer segment. This approach allows the company to expand its customer base and increase its market share by tailoring its products to different groups within the overall market.
What is the definition of supply-side fiscal policy?Click or tap a choice to answer the question.fiscal policy that minimizes cyclical upturns and downturns in the economyfiscal policy that emphasizes tax cuts rather than government spendingfiscal policy aimed at impacting long-run aggregate supply rather than aggregate demandfiscal policy that taxes higher-income workers at a higher percentage rate than lower-income ones
Answer:
fiscal policy aimed at impacting long run aggregate supply rather than aggregate demand
Explanation:
Supply-side fiscal policy is a strategy involving government taxation and spending aimed at influencing the productive capacity of the economy. It mainly focuses on long-term aggregate supply by encouraging business investments and enhancing worker productivity. A prime example is a fiscal policy that emphasizes tax cuts.
Explanation:In economics, Supply-side fiscal policy refers to the strategies that influence the economy's productive capacity through government taxation and spending. The supply-side policy primarily focuses on enhancing long-term aggregate supply, emphasizing methods such as tax cuts and investments geared towards businesses to improve productivity and stimulate economic growth. These strategies result in regular shifts to the right of the aggregate supply curves, facilitating growth in the quality and quantity of resources over time as the population grows, businesses invest in new capital, and technology improves. It is different from demand-side fiscal policy, which aims at impacting aggregate demand instead.
In this regard, a fiscal policy that emphasizes tax cuts rather than government spending would accurately describe the concept of supply-side fiscal policy. Policies favoring tax reductions can lead to higher business investment, improved worker productivity, and in the long run, increased economic growth.
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enhance the ability of firms to capture profits from a concentration of market power. enhance the ability of firms to reduce economic losses. restrict the ability of firms to operate at the socially efficient level of production. restrict the ability of firms to merge.
Answer:
The correct answer is restrict the ability of firms to merge.
Explanation:
Antitrust laws are the body of law that prohibits anti-competitive behavior (also known as monopolies) and business practices that are unfair. These laws were created to encourage market competition. Antitrust laws also make certain practices considered illegal for companies, consumers or both, or those who violate the standards of ethical conduct in general. For example, antitrust laws prohibit agreements that restrict trade or encourage monopolization, attempted monopolization, anti-competitive merger and tie-in agreements; and in some circumstances, price discrimination in the sale of products.
Both the Federal Government and the State Attorney General can process antitrust claims. Private civil lawsuits may also be filed in state and federal courts, against those who violate state and federal antitrust laws. Federal antitrust laws, as well as most state laws, allow triple compensation against those who violate those laws, to encourage private lawsuits by enforcing antitrust laws.
Final answer:
The interaction between monopolies, market power, and public policy involves measures to prevent market concentration and encourage competitive markets, aiming to balance economies of scale with consumer interests.
Explanation:
The interaction between monopolies, market power, and public policy is a complex subject that falls under the study of economics, particularly within the business domain. Monopolies can lead to higher prices and reduced choices for consumers, but they may also drive economies of scale and innovations. Public policies, through antitrust laws and regulations, aim to prevent or mitigate the adverse effects of monopolies by promoting competition and preventing market concentration that could result from mergers and acquisitions. Furthermore, barriers to entry such as economies of scale, control of resources, and legal protections (patents, copyrights) play a significant role in sustaining monopolies or oligopolies.
Antitrust authorities work to identify and take action against firms abusing their market power, with the goal of maintaining competitive markets free of distortions. This involves regulating or breaking up companies with excessive market power to ensure that consumer interests are protected, and that the market operates at a socially efficient level.
Unlike leaders, managers: Question 15 options: inspire and motivate others to find their own solutions. are concerned with control and limiting the choices of others. are more concerned with what work gets done. focus on vision, mission, goals, and objectives.
Answer: are more concerned with what work gets done.
Explanation: In simple words, leadership refers to the process of motivating and influencing others to work for the achievement of common goals. However, management refers to eh processes under which an individual plans, directs and monitors the activity of others for the achievement of goals.
Managers belongs to the business activity but leaders could be working for non benefiting activities. Every leaders is manager but not every manager is a leader
Hence leaders tries to overall develop their followers while managers use their subordinates as the resource for wetting the work done.
Managers focus on task completion and maintaining the status quo in the organization. They practice transactional leadership, focused on systems of rewards and punishments to achieve organizational goals. Leaders, especially transformational ones, inspire and motivate others, fostering critical thinking, and emphasizing vision and mission.
Explanation:Unlike leaders, managers are often more goal-oriented and mainly concerned with ensuring tasks and jobs are completed efficiently. This style of leadership is often called transactional leadership, which focuses on supervision, organizational goals, and achieving these through systems of rewards and punishments. Managers essentially maintain the status quo and are more focused on what work gets done, rather than inspiring and motivating others to find their own solutions.
Transformational leaders, on the other hand, tend to lead in an expressive way, promoting emotional health and ensuring people feel supported. They encourage critical thinking and problem solving, and are charismatic and inspirational. They focus on vision, mission, goals, and objectives and inspire others to do the same.
Of course, these are generalizations and many individuals embody both transactional and transformational characteristics in their leadership or management roles depending on the circumstances.
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What type of receivable is evidenced by a formal instrument and normally requires the payment of interest? A trade receivable An account receivable Past-due accounts receivables A note receivable
Answer:
A note receivable
Explanation:
A note receivable is a composed guarantee to get a particular measure of money from another gathering on at least one future dates. This is treated as a benefit by the holder of the note. Past due records receivable are some of the time changed over into notes receivable, in this manner giving the indebted person more opportunity to pay, while additionally once in a while including an individual assurance by the proprietor of the account holder.
Economic growth in the country of Southville has slowed down in the last few months. Following a collapse in housing prices, several homeowners have defaulted on their mortgages. Given that this sector accounts for a sizeable portion of the GDP. many commentators believe that this will prompt a 'domino effect' in the economy. On a TV chat show: three industry experts are discussing the crisis and its possible impacts. Megan Greenboe is of the opinion that housing prices were driven up by speculation prior to the crisis. According to her, this crisis will eventually reduce liquidity in the economy and lead to a credit crunch. Bob Sacberg, however, does not agree with Megan. Bob feels that the increase in housing prices can be explained by the steady growth in population and were therefore driven by fundamentals. Samantha Morris meanwhile is not very convinced that the housing sector is solely responsible for the economic slowdown. She argues that a twelve percent fall in housing prices is unlikely to have a very widespread impact. Which of the following, if true, will weaken Bob's argument that fundamental factors in the housing market led to the increase in housing prices?
a. According to census data, the percentage of Southville's population that lives in rural areas has gradually been shrinking
b. The standards for obtaining a mortgage loan in Southville have been more stringent compared to many other countries
c. Prior to the crisis, the prices of existing homes also increased in proportion to the prices of new homes in Southville
d. A large proportion of home buyers in Southville were individuals who already owned one or more houses
e. The inflation-adjusted real wage in the construction industry increased by 10 percent prior to the crisis
Answer:
D) A large proportion of home buyers in Southville were individuals who already owned one or more houses
Explanation:
Bob argues that the price of houses in Southville increased because more the population, so more people equals more demand for houses, and more demand equals higher prices. But if many of the new houses were not primary residencies, then Bob's argument collapses. This would mean that the higher price for houses was not caused by fundamental factors, but is probably due to speculation.
Par value a.is the monetary value assigned per share in the corporate charter b.is established for a share of stock after it is issued c.represents what a share of stock is worth d.represents the original selling price for a share of stock
Answer:
c.represents what a share of stock is worth
Explanation:
Hope it helped...Please mark brainliest. Have a nice day!
Par value is the nominal value set for a share of stock in the corporate charter; it is distinct from the market value determined by demand and supply and investor expectations.
Par value is a. the monetary value assigned per share in the corporate charter. This value is typically set at a minimal amount and is not reflective of the current market value or the price at which shares trade on the stock market. It is more of a legal accounting value assigned when the corporation is established and appears on the face of the stock certificate.
Stock prices are influenced by many factors, including a company's profitability and investor expectations about future profits. Market capitalization, which represents the total value of all a firm's outstanding shares, is derived from these prices. Demand and supply, along with investors' expectations of receiving dividends or capital gains, play a crucial role in setting a stock's price.
Considering high achievers, which situation is likely to have the greatest effect on achievement behavior?
A) 10% chance of success
B) 25% chance of success
C) 50% chance of success
D) 75% chance of success
E) 100% chance of success
Answer: 50% chance of success.
Explanation:
A high achievers most times isn't very sure of the outcome of an event, but when there is 50% chance of him achieving his goal, he takes the move and ensures to give in his best while hoping for the best. The ability to take a risk in the midst of uncertainty separates a low achiever from a high achiever. As high achievers are able to take wise risks when the need demands.
"Jenn switched jobs to one that was within a half mile of her home and she could walk on most days. After about three months, her new boss announced the company was moving 15 miles outside the city. This would mean that Jenn would now have an hour and half commute that involved a subway and two busses. Her stressor would be considered a"A. strong stressor.B. negative stressor.C. hassle.D. positive stressor.E. crises.
Answer:
C. hassle
Explanation:
It is a genuine nuisance having to commute longer than what you are used to. However, Jenn's issue cannot be defined as a true stressor, as it is something she would probably get used to in the long run.
On the other hand, real stressors would refer to work and workplace issues per se. For example, a negative stressor can be a long-term inability to avoid conflict with managers, which is directly influencing job stability and our feeling of economic safety. On the other hand, a positive stressor (or eustress) refers to the positive excitement related to events we are looking forward to, for example, our promotion.
Strong stressors and crises are related to exceptionally tough issues to overcome. For example, continuous burnout that makes us unable to cope with work is something a lot more serious than the hassle of a longer commute.
Fierra Inc. is a German automobile manufacturer that has a 5 percent market share in the United States' automobile market. The company has a unit in North Carolina that imports Fierra automobiles from its parent company in Germany and assembles them. Which of the following measures is in accordance with U.S.A.'s Foreign Commerce Clause?
A) The government of North Carolina imposes an additional 10% tax on Fierra cars.
B) The government of Georgia bans the sale of Fierra cars.
C) The government of North Carolina asks Fierra Inc. to shut down its import unit in the state.
D) The federal government imposes an additional 100 percent tax only on Fierra cars being sold in North Carolina.
Answer:
A) The government of North carolina imposes an additional 10% tax on Fierra cars.
Explanation:
The above mentioned is in accordance with the USA's foreign Commerce Clause.
Final answer:
Measures by U.S.A.'s Foreign Commerce Clause cannot involve individual states imposing taxes or restrictions on foreign commerce, as this is the prerogative of the federal government.
Explanation:
The question centers on which measures are by the U.S.A.'s Foreign Commerce Clause. According to the U.S. Constitution, individual states cannot impose taxes or tariffs on imports as they are not allowed to act like independent countries—only the federal government has this power. The correct measure that aligns with the Foreign Commerce Clause would be an action taken by the federal government rather than individual states.
Therefore, options such as the government of North Carolina imposing an additional 10% tax on Fierra cars, the government of Georgia banning the sale of Fierra cars, and the government of North Carolina asking Fierra Inc. to shut down its import unit in the state would violate the Foreign Commerce Clause. An additional tax imposed by the federal government, however, should apply uniformly and not be discriminatory against a particular foreign company or state.
Which of the following auditing procedures will provide evidence to support management’s assertions regarding the allocation and valuation of inventories?
A) Vouching inventories to receiving documents.
B) Determining the replacement cost of inventories.
C) Vouching inventory counts to accounting records.
D) Tracing items reported in the accounting records to inventory counts.
Answer: Option C
Explanation: In simple words, vouching refers to the process in which an auditor confirms that something is accurate and true as described earlier.
While performing auditing, the auditor performs the vouching function by physically counting the inventory and compare the count results with the statements that are presented by the firm to make sure that the documents are accurate.
Hence from the above we can conclude that the correct option is C.
Question 27
What is the name given to unemployment that occurs because people do not have the required job skills?
seasonal
frictional
cyclical
structural
Question 28
Which of the following is a major export of the United States?
agricultural products
scientific instruments
ceramic figurines
recreational equipment
Question 29
Which of the following is a characteristic of a developed country?
low life expectancy
low literacy rates
low industrial output
low unemployment
Question 30
Which of the following organizations focuses on getting rid of poverty?
World Bank
United Nations Development Fund
North American Free Trade Agreement
United Way Development Agency
Question 31
Which of the following is NOT a function of a 21st century bank?
pay interest
lend money
accept tax payments
issue credit cards
Question 32
Which of the following is NOT a characteristic of a horizontal merger?
help lower costs
help improve products
two companies that produce the same product
government controlled
Question 33
An industry that has four large firms that provide ______ of the supply of the product is called an oligopoly.
75%
65%
55%
45%
Question 34
The law of __________ is defined as the willingness of producers to produce or supply more of a good as the price of the good increases.
demand
increasing costs
supply
increasing prices
Question 35
Which of the following is described by this statement?
As the prices of some goods rise, consumers cut back on the amount of items that they normally purchase and demand for these goods decreases.
substitution effect
income effect
increment effect
demand effect
Answer:
Seasonal
Explanation:
Unemployment basically means that a person is having skills but not in the required field due to which he/she is not employed that is not working.
Seasonal unemployment is a type of unemployment that occurs because people do not have the required skills.
For example a labour under construction work is employed only when he gets the work of construction and is good at that work but times when there is no construction work in process he is unemployed.
Another best example is that of an Agricultural worker or a Farmer who is employed in specific seasons only like those who are into more of work in summers rather than winters keeping in mind the types of seasonal vegetables or fruits the famers are dealing with.
Suppose that the Bank of Apples has excess reserves of $450,000 and checkable deposits of $30,000,000. If the bank has a reserve requirement of 30 percent, what is its total amount of reserves?
Answer:
$9,450,000
Explanation:
To determine the amount of reserves that the Bank of Apples has, we first have to multiply the total amount of checkable deposits by the reserve requirement, and then add the excess reserves.
($30,000,000 x 30%) + $450,000 = $9,000,000 + $450,000 = $9,450,000
If a company's social media followers exhibit greater purchase frequency than non-followers, this could be a sign that the company's social media efforts are producing good results. Alternately, it may only reflect the fact that_______.
A. the indirect effect of social media is more dramatic than the direct effect
B. more loyal customers are more likely to follow the company on social media
C. the social media platform is exaggerating its own performance
D. the company's analytics are not properly installed
Answer:
The correct answer is B. more loyal customers are more likely to follow the company on social media.
Explanation:
Customer loyalty has a direct impact on financial results, as well as prestige and brand image. The influence of a satisfied customer can be more decisive than any marketing strategy, since:
A loyal customer consumes more. A study on American companies found that 40% of online shopping revenue comes from regular customers, who represent only 8% of ecommerce visitors (Adobe). The satisfied customer shares their positive experience in networks and through word of mouth. It is one of the most effective forms of marketing that exists. All your clients can become great clients. After purchasing the first product, a customer has a 27% chance of buying back at the same place. If you get that customer back and make a second purchase, the chances of returning increase up to 45% and, in the case of a third purchase, that percentage rises to 54% chance of making another purchase.Explain what happens when markets do not have enough competition.
Answer:
The price will be higher and output lower in absence of competition.
Explanation:
When the market does not have enough competition, it provides a certain degree of market power to the existing producers. They are able to regulate prices and output.
It is likely that the suppliers will provide a fewer quantities of goods at a higher price, in order to maximize their profits. The socially optimal level of output will not be produced in the market.
The resources will not be efficiently allocated and deadweight loss will exist.
The WACC for a firm is 19.75 percent. You know that the firm is financed with $75 million of equity and $25 million of debt. The cost of debt capital is 7 percent. What is the cost of equity for the firm?
a. 19.75%
b. 24.00%
c. 32.50%
d. 58.00%
Answer:
b. 24.00%
Explanation:
The formula to compute WACC is shown below:
WACC = Weightage of debt × cost of debt + (Weightage of common stock) × (cost of common stock)
19.75% = (0.25 × 7%) + (0.75 × cost of equity)
19.75% = 1.75% + (0.75 × cost of equity)
18% = (0.75 × cost of equity)
So, the cost of equity would be = 24%
Weighted of debt = ($25 million ÷ $100 million) = 0.25
And, the weighted of common stock = (Common stock ÷ total firm)
= $75 million ÷ $100 million
= 0.75
A corporation's management a. owns the corporation. b. hires the board of directors. c. is liable for the corporation's debts. d. operates and controls a corporation in its day-to-day activities.
Answer:
d: operates and controls a corporation in its day-to-day activities
Explanation:
Andrew paid $30 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Andrew's friend Nick learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $60, and Andrew agrees, since he would have sold it for $45. Nick is thrilled, since he would have paid Andrew up to $80 for the cannon. Andrew is also delighted. What is the total surplus generated from Andrew’s sale to Nick?
Answer:
The total surplus from Andrew's sale to Nick is $35.
Explanation:
The total surplus is the sum of producer surplus and consumer surplus.
The consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the price he/she actually has to pay.
While producer surplus is the difference between the minimum price a producer is willing to accept for a product and the price he/she actually gets.
Consumer surplus for Nick
= $80 - $60
= $20
Producer surplus for Andrew
= $60 - $45
= $15
Total surplus from generated from Andrew's sale to Nick
= $20 + $15
= $35
Samantha is a single mom and the administrative assistant for the marketing department. Her son's soccer games begin right after school so Samantha often has to choose between supporting her son at his games and working. Samantha is experiencing role ________.
A. overload
B. conflict
C. clarity
D. ambiguity
Answer:
The correct answer is (B)
Explanation:
A conflict is a clash of interest. The idea of conflict might be close to home, racial, class, standing, political and universal. Samantha is encountering a conflict of interest where she has to choose whether to watch her son's football match or go to work. Conflicts usually can lead to misunderstandings between two parties and they must be resolved by communication.
Final answer:
Samantha is experiencing role B. conflict as she has to choose between supporting her son at his soccer games and fulfilling her responsibilities as an administrative assistant for the marketing department.
Explanation:
Samantha is experiencing role conflict. Role conflict occurs when one or more roles are contradictory, leading individuals to have difficulty in fulfilling the requirements of each role. Thus, it occurs when an individual experiences challenges in fulfilling the expectations of different roles they hold, leading to tension and stress.
This conflict arises when the demands of one role interfere with another, causing difficulties in balancing responsibilities. Managing conflicting expectations from various roles, such as work and family, can result in psychological strain and a sense of being torn between competing obligations. In Samantha's case, she has to choose between supporting her son at his soccer games and fulfilling her responsibilities as an administrative assistant for the marketing department.
What name is given to the index based on the prices of exported or imported merchandise?
Answer: Option C - International Price Index
Explanation:
International price index, is the index based for both imported and exported marchandise. IPI would effectively endorse the use in the U.S. of discriminatory cost-effectiveness standards used by foreign governments. Many countries, like U.K., Canada, and Greece, make drug reimbursement and coverage decisions based on cost-effectiveness assessments tied to the quality-adjusted life year (QALY).
Assume that last year, Isaac earned 13.6 percent on his investments while U.S. Treasury bills yielded 2.7 percent, and the inflation rate was 2.2 percent. What real rate of return did he earn on his investments last year?
A) 10.39 percent
B) 11.63 percent
C) 12.24 percent
D) 13.56 percent
E) 11.15 percent
Final answer:
Isaac's real rate of return on investments, adjusted for the inflation rate of 2.2 percent, is approximately 11.4 percent. However, when considering the excess return over the risk-free Treasury bill yield of 2.7 percent, the closest answer is 10.39 percent (Option A).
Explanation:
To calculate Isaac's real rate of return on his investments, we must consider the effects of both the inflation rate and the yield of risk-free assets such as U.S. Treasury bills. The Fisher equation, which subtracts the inflation rate from the nominal interest rate, can be used in this case to find the real rate of return. The nominal rate of return Isaac earned on his investments is 13.6 percent. To find the real rate of return, we subtract the inflation rate, which was 2.2 percent.
Therefore, the real rate of return = (Nominal rate of return) - (Inflation rate) = 13.6% - 2.2% = 11.4%.
However, this doesn't take into account the yield on U.S. Treasury bills. To adjust for the risk-free return, we need to consider the excess return Isaac earned over the Treasury bills, which is (13.6% - 2.7%). The excess return over the risk-free rate is 10.9%. Therefore, the correct answer, closest to our calculation, is Option A) 10.39 percent.
In the context of adopters who participate in the diffusion process, which of the following statements is true of the late majority?a. They are characterized as being venturesome.b. They are more worldly and more active outside their community than noninnovators.c. Their opinions heavily influence their friends and neighbors.d. Their adoption of a new product stems from pressure to conform to group norms.
Answer:
The answer is letter D.
Explanation:
Their adoption of a new product stems from pressure to conform to group norms.