Which of the following statements is FALSE?A) As the enterprise value represents the entire value of a firm before the firm pays its debt,to form an appropriate multiple, we divide it by a measure of earnings or cash flows afterinterest payments are made.B) We can compute a firmʹs price-earnings ratio by using either trailing earnings or forwardearnings with the resulting ratio called the trailing price-earnings or forwardprice-earnings.C) It is common practice to use valuation multiples based on a firmʹs enterprise value.D) Using a valuation multiple based on comparables is best viewed as a ʺshortcutʺ to thediscounted cash flow method of valuation.

Answer:

The answer is creating wealth, with the economic value added is $390,000

Explanation:

The company WACC is: Percentage of mortgage bond in capital employed x Cost of mortgage bond x ( 1 - tax rate) + Percentage of unsecured bond in capital employed x Cost of unsecured bond x ( 1 - tax rate) + Percentage of common stock in capital employed x cost of common stock

In which:  Percentage of mortgage bond in capital employed = 1,000,000/10,000,000 = 10%

Percentage of unsecured bond in capital employed = 3,000,000/10,000,000 = 30%;

Percentage of common stock in capital employed = (10,000,000 - 1,000,000 - 3,000,000) /10,000,000 = 60%

Cost of common stock = Risk free rate + Risk premium = 10% + 5% = 15%;

Tax rate = 40%

Thus, WACC = 10% x 8% x ( 1- 40%) + 30% x 9% x (1-40%) + 60% x 15% = 11.10%.

Thus, Capital cost per year: Capital employed x WACC = 10,000,000 x 11.10% = $1,110,000.

Economic value added = Operating Income - Capital cost = 1,500,000 - 1,110,000 = $390,000.

Answer:

Check the following explanation.

Explanation:

A. European saves desire to shift funds from euro denominated financial assests to Canadian dollar denominated financial assests-In that case, euro-per-Canadian dollar equilibrium exchange rate will appreciate as euro is more valuable than dollar-1Euro=1.48 Canadian Dollar.So as European wants to shift from euro to dollar value euro-per Canadian dollar will be raised.

B. European firms switch from buying minerals from Canadian firms to purchasing them from Russian firms-In that case euro-per-Canaian dollar will depreciate and onthe otherhand euro-per-Russian-ruble will appreciate as 1 Euro=72.29 Russian Ruble.

Answer:

Company Save  $37000 by Buying

Explanation:

given data

make component part = 100 units

Direct Materials = $122000

Direct Labor = 34000

Variable Overhead = 55000

Fixed Overhead = 30000

purchase the component = $200000

fixed costs = $4000

to find out

make or buy decision

solution

first we find here Total Cost for Making component part

total cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead ..............1

put here value

total cost for make =  $122000 + 34000  + 55000 + 30000

total cost for make = $241000

and

now we find here Total Cost for buying component part

total cost = Purchase Price + fixed costs   ............2

put here value we get

total cost for buying = $200000 +  $4000

total cost for buying  = $204000

so

we can say Company Save =  $241000 -  $204000   = $37000 by Buying

The make-or-buy decision for Sheffield's Manufacturing Company should be to buy the component externally, as the relevant cost to make is $215,000, while the external purchase price is $200,000.

The subject question deals with a make-or-buy decision for Sheffield's Manufacturing Company regarding a necessary component part. To address this, we need to compare the total cost of making the component versus the cost to buy it externally. The internal manufacturing costs given are Direct Materials ($122,000), Direct Labor ($34,000), Variable Overhead ($55,000), and Fixed Overhead ($30,000), totaling to $241,000. However, if these parts are bought externally, the cost is $200,000, with only $4,000 of fixed costs being avoidable.

For internal production, only the variable costs plus avoidable fixed costs are relevant when considering the make-or-buy decision. Thus, the relevant cost of making is the sum of direct materials, direct labor, and variable overhead, which results in $211,000 ($122,000 + $34,000 + $55,000). Adding the avoidable fixed costs ($4,000), the total relevant cost of making is $215,000.

Comparing this to the external purchase price of $200,000, it is financially more prudent to buy the component than to make it internally, unless there are other qualitative factors or strategic implications that outweigh the cost difference.

Answer:

The monthly payment amount would be $821.69

Explanation:

Hi, since you have already paid $15,000 (down payment), the amount of money to be financed is $130,000 ($145,000 - $15,000). Knowing that, we need to solve the following equation for "A".

[tex]PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }[/tex]

Where:

Present Value = money borrowed (in our case, $130,000)

r = effective interest rate (in our case, 6.5%/12= 0.5417%  or 0.005417)

n = number of periodic payments (in our case, 30*12=360 monthly payments)

Everything should look like this.

[tex]130,000=\frac{A((1+0.005417)^{360}-1) }{0.005417(1+0.005417)^{360} }[/tex]

[tex]130,000=A(158.2108195)[/tex]

Therefore:

[tex]A=821.69[/tex]

So, the monthly payments would be equal to $821.69.

Best of luck.

Answer: The correct answer is "Thirty".

Explanation: If the rental information provided by the broker or sales associate, for a fee, to a prospective tenant is not current or accurate in any material respect, the full fee shall be repaid to the prospective tenant upon demand. A demand from the prospective tenant for the return of the fee, or any part thereof, shall be made within thirty days following the day on which the real estate broker or sales associate had contracted to perform services to the prospective tenant.

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

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Explanation  

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Answer:

Decrease in demand for a product, holding other things constant, "will decrease the marginal revenue product of labor".

Explanation:

The extra revenue that a firm earns as a result of a newly hired worker is known as the marginal revenue product of labor.

A new worker is hired to increase the quantity of goods produced and consequently, increase the firm's revenue through sales of the goods.

If however, more goods are produced but the demand for the product decreases, then this will cause a decrease in the marginal revenue product of labor.

In other words, the firm won't earn extra revenue if the products are not being bought.

Final answer:

A decrease in demand for a product leads to a decrease in the marginal revenue product of labor, as each additional unit of labor contributes less to revenues when the product is less in demand.

Explanation:

When there is a decrease in demand for a product, this typically leads to a reduction in the quantity of the product being sold at any given price. Consequently, the marginal revenue product (MRP) of labor will also decrease. The MRP of labor is the additional revenue a firm earns from employing one more unit of labor, which is closely tied to the demand for the product that the labor helps to produce. If the product is less in demand, the additional output from extra labor becomes less valuable, hence the MRP of labor falls.

Factors that can influence the demand curve for labor include changes in technology, the level of education and training of workers, the number of companies in the market, and other government policies. A decrease in the number of companies producing a given product will result in a decreased demand for labor, shifting the labor demand curve to the left. This shift signifies that at each wage rate, companies desire to hire fewer workers.

Answer:

(a) 8%

(b) 5%

(c) 4%

Explanation:

According to the classical quantity theory of money,

Money supply × Velocity = Price Level × Real GDP

Money supply denoted by M

Velocity is denoted by V

Price level is denoted by P

Real GDP is denoted by Y

Therefore,

Change in M + Change in V = Change in P + Change in Y

Since, we know that V is constant, so V = 0

∴ Change in M = Change in P + Change in Y

(a) Nominal GDP = Price × Real GDP

Change in P + Change in Y = Change in Nominal GDP = Change in M

Change in M = 8%, it is given in the question.

Therefore, Change in Nominal GDP = 8%

(b) Change in M = Change in P + Change in Y

      8% = Change in P + 3%

Change in P = 8% - 3%

                     = 5%

We know that change in price level is the inflation rate. Hence, the inflation rate is equal to the 5%.

(c) Real interest rate is the difference between the nominal interest rate and  the inflation rate.

Real interest rate = Nominal interest rate - Inflation rate

                             = 9% - 5%

                             = 4%

a. The growth rate of nominal GDP is 11%.

b. The inflation rate is 8%.

c. The real interest rate is 1%.

To analyze the economic conditions in Wiknam, we can use key concepts from the Quantity Theory of Money and the Fisher Equation.

a. Growth Rate of Nominal GDP

The Quantity Theory of Money states that [tex]\( MV = PY \)[/tex], where:

- [tex]\( M \)[/tex] is the money supply,

- [tex]\( V \)[/tex] is the velocity of money,

- [tex]\( P \)[/tex] is the price level,

- [tex]\( Y \)[/tex] is the real GDP.

Given that the velocity of money (V) is constant, the growth rate of nominal GDP (which is [tex]\( PY \))[/tex] is determined by the growth rates of the money supply (M) and real GDP (Y).

[tex]\[ \text{Growth rate of nominal GDP} = \text{Growth rate of money supply} + \text{Growth rate of real GDP} \][/tex]

[tex]\[ = 8\% + 3\% = 11\% \][/tex]

b. Inflation Rate

Inflation rate can be derived from the growth rate of nominal GDP and the growth rate of real GDP.

[tex]\[ \text{Inflation rate} = \text{Growth rate of nominal GDP} - \text{Growth rate of real GDP} \][/tex]

[tex]\[ = 11\% - 3\% = 8\% \][/tex]

c. Real Interest Rate

Using the Fisher Equation, which relates the nominal interest rate, real interest rate, and inflation rate:

[tex]\[ r = i - \pi \][/tex]

Where:

- [tex]\( r \)[/tex] is the real interest rate,

- [tex]\( i \)[/tex] is the nominal interest rate,

- [tex]\( \pi \)[/tex] is the inflation rate.

Given:

- Nominal interest rate [tex]\( i \)[/tex] = 9%

- Inflation rate [tex]\( \pi \)[/tex] = 8%

[tex]\[ r = 9\% - 8\% = 1\% \][/tex]

Answer:

Letter D is correct. Floor-ready

Explanation:

Floor-ready refers to all merchandise that is ready to be marketed. This means that the merchandise already has the information and essential requirements to reach the store, such as labeling, weight, category, color and price.

These prerequisites are essential in order for goods to be more secure on the road, to prevent theft and fraud, and to help optimize working time and service level.

Merchandise that arrives in the delivery truck ready to be sold is considered floor-ready. This term reflects efficient supply chain management, ensuring products can immediately be placed on the sales floor.

The term used for merchandise that arrives in the delivery truck ready to be sold is floor-ready. This concept is significant in the retail and distribution sectors as it ensures products can immediately be placed on the sales floor without needing additional preparation or handling. Being floor-ready not only simplifies the process from delivery to sales but also reduces the lead time and operational burdens on store personnel. It is a reflection of efficient supply chain and inventory management practices, often leveraging just-in-time delivery systems to minimize storage needs and ensure products are available to meet customer demand promptly.

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

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Answer:

$8,000

Explanation:

To compute the total cost, first we have to calculate the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per hour = (High manufacturing cost - low manufacturing cost) ÷ (High units produced - low units produced)

= ($8,150 - $6,500) ÷ (7,800 units - 4,500 units)

= $1,650 ÷ 3,300 units

= $0.5

Now the fixed cost equal to

= High manufacturing cost - (High units × Variable cost per unit)

= $8,150 - (7,800 units × $0.5)

= $8,150 - $3,900

= $4,250

To produce the 7,500 units, the total manufacturing cost would be

= Fixed cost + number of units produced × Variable cost per unit

= $4,250 + 7,500 units × $0.5

= $4,250 + 3,750

= $8,000

This is the answer and the same is not provided in the given options

Answer:

Cost of the Land = $474,174

Cost of the Building = $3,219,588

Explanation:

The computation of the cost of the land and the cost of the building is shown below:

Cost of the land = Purchase value of land + Raze of old building + Legal fees paid + Title insurance on property cost  - salvage value of lumber and bricks

= $432,000 + $45,360 + $1,998 + $1,620 - $6,804

= $474,174

Cost of the building = Charge for construction + Factory drawing plans cost + insurance premium paid + engineer fees + interest  costs

= $2,959,200 + $73,440 + $972 + $2,376 + $183,600

= $3,219,588

All other information which is given is not relevant. Hence, ignored it

From the given excerpt, we can conclude that the type of control that Sam has is self-control.

Explanation:

The capability to manage our emotions, feelings, and actions is profoundly called self-control. It is said to be an important attribute in everyone's life because it helps in regulating the behavior in order to reach our long-term targets or objectives.

Self-control is not only important for goal attainment. Self-control helps in performing better in school, having higher self-esteem, and better physical and mental health.

Here Sam dedicates four hours daily for writing as he loves and relies on it for his living. His perseverance, that he has learned from his college he continues to write for four hours despite other activities that he has planned.

It can be inferred that Sam has greater willpower and he is self-controlled.

Final answer:

Professional writers use various strategies to maintain productivity, such as writing daily, using short focused writing bursts, retreating for solo work, and improving vocabulary. Adapting these techniques can lead to better writing output and cognitive focus for aspiring writers.

Explanation:

Strategies for Maintaining Productive Writing Schedules

Professional writers often have varied roles, such as authoring novels, articles, and workplace documents, each requiring a consistent and productive writing schedule. To maintain productivity, one useful approach is to write a little every day, which keeps the writer's skills sharp and ideas flowing. For example, keeping a journal or writing in short, intentional bursts can vastly improve the quality and consistency of writing output.

Some individuals resort to isolation, such as fiction writers who may retreat to their basements or private spaces to focus on narrative-driven projects. This desire for solitude transcends across various writing forms and helps to maintain a clear, uninterrupted thought process. Adapting writing habits to include daily practices, breaking work into manageable segments, and finding a personal comfortable space for writing can lead to significant improvements in both the quality and the efficiency of the writing process.

Whether it's developing a personal synonym list to enhance vocabulary or adopting techniques like the 15-minute writing challenge to bolster cognitive focus, adopting a structured approach to writing is essential. Emulating professional writers and implementing their strategies can make a substantial difference in one's ability to maintain productivity in writing endeavors.

Answer:

- For company B: Workers: 131; Supervisor: 14; Line Manager: 2; Senior Manager: 1; COO: 1

- For company C: Workers: 26; Supervisor: 6; Line Manager: 2; Senior Manager: 1; COO: 1

- For combined Company: Workers: 157; Supervisor: 16; Line Manager: 2; Senior Manager: 1; COO: 1

Explanation:

- For company B:

+ Number of workers needed = Number of person-hours needed/ total number of working hour in a year = 250,000/ (240 x 8) = 131 workers.

=> Number of supervisor needed = 14; Number of Line manager needed = 2; Number of Senior needed = 1; Number of COO needed = 1 ( that is 1 upper management level for every 10 lower level).

- For Company C:

+ Number of workers needed = Number of person-hours needed/ total number of working hour in a year = 50,000/ (240 x 8) = 26 workers.

=> Number of supervisor needed: 6; Number of Line manager needed = 1; Number of Senior needed = 1; Number of COO needed = 1 ( that is 1 upper management level for every 5 lower level).

- For the combined firm:

+ Total number of workers: 131+ 26 = 157 workers

=> Number of supervisor needed = 16; Number of Line manager needed = 2; Number of Senior needed = 1; Number of COO needed = 1 ( that is 1 upper management level for every 10 lower level).

Answer:

Please see attachment

Explanation:

Please see attachment

Skill-based pay provides a way to ensure that employees can use their new skills, while the other statements are false.

The correct statement about skill-based pay is A. Skill-based pay provides a way to ensure that employees can use their new skills. Skill-based pay is a compensation system that rewards employees for acquiring and applying new skills that benefit the employer. Simply learning new skills without actually using them would not be rewarded.

The other statements are false. Gathering market data about skill-based pay can be challenging as it requires research and analysis of industry standards and trends. Skill-based pay does not necessarily provide an alternative to bureaucracy and paperwork as setting up and managing a skill-based pay system requires proper documentation and evaluation. Records related to skills, training, and knowledge acquired are essential for implementing and administering skill-based pay.

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Answer:

c. $94,500

Explanation:

Ralph's potential charitable contribution for year is Cash $63,000 and $Stock in Raptor Inc. $94,500.

But allowable contribution for the year is 50% of AGI which is $189,000*50% = $94,500

So Ralph’s charitable contribution deduction for the current year is $94,500

Answer:

Direct Materials    = $969,000

Direct Labor     = $699,400

Factory overhead    = $214,600

WIP       = $2,200

Finished Goods            = ($2,000)

Cost of Goods      = $1,883,200

Explanation:

Direct Materials  = $969,000

403,500 x 6 square yards = 2,421,000

2,421,000 + (40,400 - 38,900)  = 2,422,500

2,422,500 x 0.40 per square yard = $969,000

Direct Labor  = $699,400

403,500 personal journals

403,500 * 8 minutes  = 3,228,000 minutes

3,228,000/60 minutes  = 53,800

53,800 x $13.00 = $699,400

Prepare a cost of goods sold budget for Daybook Inc. using the information above

Direct Materials        = $969,000

Direct Labor         = $699,400

Factory overhead        = $214,600

WIP  ($16,500 - $14,300)     = $2,200

Finished Goods ($28,000 - $30,000)    = ($2,000)

Cost of Goods         = $1,883,200

When Green Rabbit Transportation Inc. finances the project with 100% equity, the ROE is 8.57% and EPS is $1. If it finances the project using 50% equity and 50% debt, the ROE is 10.54% and EPS is $1.23. Using financial leverage makes the return on invested capital riskier, broadening its probability distribution.

The question is asking about the calculations related to the return on equity (ROE), earnings per share (EPS) and how financial leverage affects return on invested capital (ROIC) for Green Rabbit Transportation Inc.

For the first part, we calculate ROE and EPS when the project is financed using 100% equity capital. The formula for ROE is Net Income/Shareholders Equity. Now, Net Income = EBIT*(1-Tax rate), so our net income is 50,000*(1-0.40) = $30,000, and since we're financing 100% with equity, our shareholders' equity is $350,000. Therefore, our calculated ROE is 30,000/350,000 = 8.57%. EPS is calculated by dividing the net income by the number of shares, so our EPS would be 30,000/30,000 = $1.

For the second part, the project is financed using 50% equity and 50% debt. Our new EBIT would now be EBIT - Interest, where Interest = Debt*Interest Rate = (0.50*350,000)*0.11 = $19,250, so our EBIT now becomes 50,000 - 19,250 = $30,750. Applying the tax rate, our net income is now 30,750*(1-0.40) = $18,450. The equity is now $175,000 (350,000*50%), so our ROE is 18,450/175,000 = 10.54%. New number of shares is 15,000, so our EPS would be 18,450/15,000 = $1.23.

Regarding financial leverage and its effect on ROIC, generally, when financial leverage increases, the risk and potential return of the project increases. This leads to a wider probability distribution of return on the invested capital and could either increase or decrease depending on the particular circumstances.

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Answer:

Please see attachment

Explanation:

Please see attachment

Answer:

24 million shares  ; $16 million

Explanation:

The computation of the weightage number of treasury shares are shown below:

             Number of shares       Price       Total

                   2                              $22         $44 million

                   1                               $28         $28 million

Total           3                                               $72 million

So, the weighted average number of shares would be

= $72 ÷ 3 = 24 million shares

Now the journal entry would be

Cash A/c Dr $64 million                  (2 million treasury shares × $32)

          To Paid in capital - share repurchase A/c $16 million

          To Treasury stock $48 million    (24 million treasury shares × $2)

(Being the treasury shares are sold)

Answer:

The answers are : B, A, False

Explanation:

1. Nonobviousness

2. Trade Dress

3. False.

Answer:

Please see attachment

Explanation:

Please see attachment

Answer:

Considers the request inappropriate or unreasonable.

Explanation:

Resistance is more likely to occur when the target considers the request inappropriate or unreasonable. Persuasion is not useful in these scenarios and negotiation is usually the best tool to manage these situations.

Answer:

A violation.

Explanation:

A violation is basically breaking the law or an act of violence. In this case, Metal Smelting Inc operates a plant that exceeds the maximum level which Environment Protection Agency has set.

Answer:

C) 8.75%

Explanation:

Number of periods = 4 years

Given return rates = 20%, -10%, 20%, and 5%

To obtain the arithmetic average annual return, add the return rates given for all periods and divide the sum by the number of periods.

[tex]AAR = \frac{20-10+ 20+ 5}{4} \\AAR=8.75\%[/tex]

Over four years, the S&P 500 index delivered an arithmetic average annual return of 8.75%.

Answer:

The company should recognize a loss of $60,000

Explanation:

Data provided in the question:

Original cost = $564,000

Selling price = $222,000

Accumulated depreciation balance = $282,000

Current year's depreciation = $47000

Now,

The book value of the plant asset

= Original cost - Accumulated depreciation balance

= $564,000 - $282,000

= $282,000

therefore,

Gain = Selling price - Book value

= $222,000 - $282,000

= -$60,000

Here, the negative sign means loss

Therefore,

The company should recognize a loss of $60,000

Answer:

I - 18%

II - 26%

III - 40%

Explanation:

The ROI (Return on Investment), it's a financial ratio that measure the benefit that an investor will receive in relation to their investment cost.

Div. I

$884,340  Controllable margin  

$4,913,000 Average operating assets  

18%

Div. II

$2,065,180  Controllable margin  

$7,943,000 Average operating assets  

26%

Div. III

$4,850,800  Controllable margin  

$12,127,000 Average operating assets  

40%

Answer:

Letter c is correct. The promotion mix.

Explanation:

Spread by Philip Kotler, the marketing mix is ​​made up of four essential pillars in any marketing strategy, namely: Product, Price, Place and Promotion. When 4p's are in balance it means the organization will be much more successful in strengthening the brand in front of its target audience.

The promotion mix is ​​the set of marketing tools used by an organization to attract, retain and leverage demand for its services and products. The promotion mix consists of direct marketing, sales promotion, advertising, personal sales and public relations. These promotional tools, when integrated, will help the company know its potential customer, set budgets, aim and direct marketing strategies so that the customer is aware of the added benefits they will have when making a purchase.

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.