You are making the inventory decisions for an international company that sells bathing suits. The product has a forecasted daily demand with mean 100 and standard deviation 36. The selling season only lasts 6 months since bathing suits are a seasonal item. You are procuring the product from your factory in China (out-sourcing) and as a result the lead time is so long (6 months) that you can only place only one order per selling season (6 months before the season begins). You want to ensure a service level of 97.5% and the cost of capital of the firm is 20% (that is, the firm faces an annual interest rate of 20%). Shipping cost is $4,500 while procurement cost (purchase cost) per item is $5.

Answer:

0.4 or 40%

Explanation:

The reward-to-volatility ratio, also known as the Sharpe ratio, is defined as the difference between the expected return rate and the risk-free rate divided by the standard deviation.

Expected return = 0.2

Risk-free rate = 0.10

Standard deviation = 0.25

[tex]S=\frac{0.2-0.1}{0.25}\\S=0.4= 40\%[/tex]

The reward-to-volatility ratio is 0.4 or 40%

Answer:

$47,385.34

Explanation:

In this question, we use the future value formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Present value = $8,000

Rate of interest = 5%

NPER = 18 years

PMT = $1,000

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after solving this, the answer would be $47,385.34

The sum in the savings account on Angela's 18th birthday would be a total of initial deposit plus interest and the sum of each birthday deposit with its respective compounded interest. This includes basic mathematical operations and the application of simple interest and future value of a series formulas.

In order to calculate the total sum, we need to add the initial deposit with interest, and the sum of each birthday deposit with its respective compounded interest. The amount in the account after the initial deposit of $8,000 would be calculated using simple interest formula, A = P(1+rt), where P is principal amount, r is the rate, and t is the time (A = $8000*(1+0.05*18). For the birthday deposits, since they're deposited annually, we should use the formula for future value of a series (or an annuity), since the amount of each deposit and the interval between deposits are the same. The future value of an annuity formula is: A = PMT * (((1 + r)^t - 1) / r), where PMT is the amount deposited per period, r is the interest rate per period, and t is the number of periods.

Birthday deposits: PMT is $1,000, r is 0.05, and t is 1 to 18 years, calculated separately and summed up since every year has different compound period until their daughter turns 18.

Initial deposit: A = $8000*(1+0.05*18).

The total amount in the account is the sum of these two amounts.

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Answer:

The correct answer is (A)

Explanation:

According to economics, consumers are rational; they spend money where they feel they can grow profits. A market where there is fluctuations in investment, a rational consumer  will not prefer to invest in such markets and a rational investors are averse to fluctuations in the value of their investment. A person who is a risk lover who wants to gain a high return by bearing high risk will only be in favour of such investment.

To calculate Mr. Husker's Tuxedos year-end 2015 balance in accounts receivable, we can use the average collection period and the total sales for 2015. The average collection period is the average number of days it takes to collect payment from customers. We can calculate the year-end balance in accounts receivable by multiplying the average daily sales by the average collection period.

To calculate the year-end 2015 balance in accounts receivable for Mr. Husker’s Tuxedos, we can use the average collection period and the total sales for 2015. The average collection period is the average number of days it takes to collect payment from customers. We can use this ratio to estimate the accounts receivable balance.

To calculate the average daily sales, we divide the total sales by the number of days in a year. Then, we multiply the average daily sales by the average collection period to calculate the year-end balance in accounts receivable.

In this case, the average collection period is 32 days and the total sales for 2015 are $56.1 million. Let's calculate the year-end 2015 balance in accounts receivable:

Average daily sales = Total sales / Number of days in a year = $56,100,000 / 365 = $153,698.63

Year-end balance in accounts receivable = Average daily sales × Average collection period = $153,698.63 × 32 = $4,911,156.16

Answer:

10.64%

Explanation:

The computation of the WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

= (0.40 × 8%) × ( 1 - 30%) +  (0.60 × 14%)

= 2.24% + 8.4%

= 10.64%

Simply we multiply the weightage with its capital structure so that the Accurate weighted cost of capital can be calculated

Answer:

D. $1,050,200

Explanation:

The January cash collections from sales are

Total Budgeted sales for January are $939,000

Cash sales = $939,000 x 0.20 = $187,800

Cash from customers for January sales = $939,000 x 0.80 x 0.75 = $563,400

Cash from december sales = $299,000

Total January cash collections from sales are = $187,800 + $563,400 + $299,000 = $1,050,200

Answer:

Please see attachment

Explanation:

Please see attachment

Final answer:

For a 90% service level, the ROP is approximately 1207.23 cigars. For a 95% service level, the ROP is approximately 1208.21 cigars. The service level represents the probability of satisfying demand during the lead time, with a higher service level indicating a lower risk of stockouts and unmet customer demand.

Explanation:

a) For a 90% service level, the ROP can be calculated using the formula:

           ROP = (Demand × Lead time) + Z × √(Demand Variance × Lead time Variance)

where Z is the Z-score corresponding to the desired service level. For a 90% service level, Z is approximately 1.28. Plugging in the values, we have:

           ROP = (200 cigars/week × 6 weeks) + 1.28 × √(25 cigars^2/week × 2 weeks^2) = 1200 cigars + 7.23 cigars = 1207.23 cigars

b) For a 95% service level, we use Z = 1.645 (corresponding to a 95% confidence interval). Plugging in the values as before:

           ROP = (200 cigars/week × 6 weeks) + 1.645 × √(25 cigars^2/week × 2 weeks^2) = 1200 cigars + 8.21 cigars = 1208.21 cigars

c) The service level represents the probability that demand will be satisfied during the lead time. A higher service level indicates a lower risk of stockouts and unmet customer demand. In this case, the 95% service level is preferable as it provides a higher degree of confidence in satisfying customer demand.

Answer:

A schedule of cash payments for April, May, and June is prepared.

Explanation:

The following image shows the calculation and explanation of the cash payment schedule.

Zisk Co.'s budgeted cash payments are $62,600 for April, $101,000 for May, and $117,000 for June, which is worked out by making 70% of payments for the current month's purchases and the remaining 30% of the last month's purchases.

To calculate the budgeted cash payments for Zisk Co. in each month, we need to consider both the purchases made in that month and the remaining payments for the previous month's purchases. The payments are split as follows: 70% is paid in the same month the purchases are made, and the remaining 30% is deferred to the following month.

For April, they will make payments for April purchases and the remaining amount from March. That will be (70% * $80,000) + 30% * $22,000 = $56,000 + $6,600 = $62,600.

For May, they will make payments for May purchases and the remaining amount from April. That will be (70% * $110,000) + 30% * $80,000 = $77,000 + $24,000 = $101,000.

For June, they will make payments for June purchases and the remaining amount from May. That will be (70% * $120,000) + 30% * $110,000 = $84,000 + $33,000 = $117,000.

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Answer: The correct answer is "A. 4 days.".

Explanation: Four days would be the lenght of an order cycle because the quantity of the order must be divided on the demand rate, that is,

80 (quantity of the order to be ordered) / 20 (normal demand rate) = 4 days.

Answer:

d. $990,000

Explanation:

The multiplier method assumes that the total external failure cost is a multiple of the measured external failure costs. In this case, based on experience, the company determined that the measured value must be multiplied by a factor of 3:

[tex]C=3* \$330,000\\C= \$990,000[/tex]

Therefore, Azure Company's total external failure cost is $990,000

Answer:

I think the answer is D.

Explanation:

Answer:

8.33%

Explanation:

Current yield of a bond is used to determine the annual rate of return of a bond that an investor holds. The formula for calculating it is as follows;

Current yield of a bond = annual coupon payment/  current price

Annual coupon payment = interest payment = $100

Current price = $1,200

Next, plug in the numbers to the above formula;

Current yield = 100/ 1,200

= 0.0833

As a percentage, multiply 0.0833 by 100;

=0.0833 *100

= 8.33%

Therefore, the current yield on the bond is 8.3% (to one decimal place.)

Answer:

B) Cost of equity capital

Explanation:

Dividend discount model is used to find the Price of a given stock by calculating the present value of expected future dividends.

The dividend discount formula for finding price(assuming zero growth rate);

P0 = D1/r

The rate; r is the discount rate which is the cost of equity since dividends are paid on equity capital.

Weighted average cost of capital (WACC) is used to discount free cashflows of potential projects.

Final answer:

The correct discount rate for the dividend discount valuation model is the cost of equity capital. This interest rate reflects the expected return for equity investors, based on the present value of anticipated dividends. The concept of present discounted value applies to bonds differently, taking into account the impact of changing interest rates on bond pricing.

Explanation:

The proper discount rate when using the dividend discount valuation model is the cost of equity capital. This is because the dividend discount model is used to estimate the value of a company's stock based on the hypothesis that the value equals the present value of all future dividend payments.

When valuing stocks or bonds, it is essential to choose the correct interest rate for discounting future payments to their present value. For a stock, this would typically reflect the cost of equity, which includes the expected rate of return for equity investors, as dividends are paid out of the company's profits which are attributable to shareholders.

When applying the concept of Present Discounted Value (PDV) to a bond, the investor needs to consider future interest rates, as these will directly affect the bond's price and yield. If interest rates fall after a bond is issued, the bond's price increases above face value, and if interest rates rise, the bond's price falls below face value. With stocks, expected future profits play a key role in determining their PDV, including potential capital gains and dividend payments.

Answer:

The correct answer is (A)

Explanation:

Customer driven, otherwise called customer-centric, is a way to deal with working together that spotlights on making a positive encounter for the client by amplifying administration as well as item contributions and building connections. A customer-centric method for working together is a way that gives a positive client experience when the deal so as to drive rehash business, upgrade client commitment and improve business development.

Final answer:

The term that best describes a company tailoring its services and products based on customer interactions and preferences is "customer-centric". This approach is exemplified by companies in the hospitality industry like Four Seasons and Ritz-Carlton, which keep detailed customer records to personalize services and enhance guest experiences.

Explanation:

A term that accurately describes a company which customizes its products and services based on customer-generated data, to better meet their preferences during interactions, is customer-centric. This approach is exemplified in the hospitality industry, where companies like Four Seasons Hotels Ltd. and the Ritz-Carlton Company LLC keep detailed records of customer preferences to enhance service quality. For instance, noting a guest's favorite newspaper or pillow type and greeting returning guests with personalized touches are practices that highlight a customer-centric approach. These actions are grounded in a culture that emphasizes detail and precision, leveraging customer data to tailor experiences and foster loyalty.

Answer:

1.The expected return is the profit or loss that the investor anticipates on the investment =0.125 that is 12.5%

2. RRR (Required rate of return) =11%.

Explanation:

Please also refer to the attachment .

The firm's expected rate of return is 12.5%. The firm's standard deviation is 2.44%. The firm's coefficient of variation is 19.5%. The required rate of return for Dallas Star Inc. is 14.0%.

To find the firm's expected rate of return, we can use the formula:
Expected Rate of Return = (Probability of Return 1 x Return 1) + (Probability of Return 2 x Return 2)
Expected Rate of Return = (0.35 x 0.10) + (0.60 x 0.15)
Expected Rate of Return = 0.035 + 0.09
Expected Rate of Return = 0.125 or 12.5%

To calculate the firm's standard deviation, we need to use the formula:
Standard Deviation = √((Probability of Return 1 x (Return 1 - Expected Rate of Return)²) + (Probability of Return 2 x (Return 2 - Expected Rate of Return)²))
Standard Deviation = √((0.35 x (0.10 - 0.125)²) + (0.60 x (0.15 - 0.125)²))
Standard Deviation = √((0.35 x (-0.025)²) + (0.60 x 0.025)²)
Standard Deviation = √((0.35 x 0.000625) + (0.60 x 0.000625))
Standard Deviation = √(0.00021875 + 0.000375)
Standard Deviation = √0.00059375
Standard Deviation =  0.02437 or 2.44%

The coefficient of variation is calculated by dividing the standard deviation by the expected rate of return and multiplying by 100.
Coefficient of Variation = (Standard Deviation / Expected Rate of Return) x 100
Coefficient of Variation = (0.02437 / 0.125) x 100
Coefficient of Variation = 0.19496 x 100
Coefficient of Variation =  19.5%

For the second part of the question, we need to calculate the market risk premium first.
Market Risk Premium = Expected Market Return - Risk-Free Rate
Market Risk Premium = 11.0% - 5.0%
Market Risk Premium = 6.0%

The required rate of return can be calculated using the formula:
Required Rate of Return = Risk-Free Rate + Beta x Market Risk Premium
Required Rate of Return = 5.0% + (1.50 x 6.0%)
Required Rate of Return = 5.0% + 9.0%
Required Rate of Return = 14.0%

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Answer:

I think the answer to this question is c

Answer:

Direct material= $67,188

Explanation:

Giving the following information:

During October, the company budgeted for 5,100 units, but its actual level of activity was 5,090 units. The company has provided the following data concerning the formulas to be used in its budgeting:

Direct Materials $13.20

Direct material= 5,090*13.20= $67,188

Answer: Multinational company

Explanation:

A multinational company has operations in various companies however the rules of the parent company country of residence are not allowed to interfere negatively on other countries of operations. All other company units in there various domiciliation are allowed to develop research towards tending products to local markets and ensuring adherence to rules various country of domiciliation.

Answer:

The correct answer is (B)

Explanation:

A unilateral contract is an agreement made by an offer that must be acknowledged by execution. To frame the agreement, the party making the offer makes a guarantee in return for the demonstration of execution by the other party. The offer must be acknowledged when the other party totally plays out the mentioned activity. The easy method to recollect this is to concentrate on "one-sided." "Uni" signifies one so one-sided contract enable just a single individual to settle on a guarantee or understanding.

Answer:

6.78%

Explanation:

Data provided in the question:

Total return i.e nominal rate = 15% = 0.15

Real return = 7.7% = 0.077

Now,

Inflation rate = [tex]\frac{\textup{1 + Nominal rate}}{\textup{1 + Real return }}[/tex]  - 1

on substituting the respective values, we get

Inflation rate = [tex]\frac{\textup{1 + 0.15}}{\textup{1 + 0.077}}[/tex]  - 1

or

Inflation rate = [ 1.15 ÷ 1.077 ] - 1

or

Inflation rate = 0.0678

or

Inflation rate = 0.0678 × 100% = 6.78%

Janet Jello expects the inflation rate to be 7.3 percent over the next year if the investment has a nominal return of 15 percent and she anticipates a real return of 7.7 percent.

The question asks us to figure out the expected inflation rate if an investment returns a nominal interest rate of 15 percent and the anticipated real return rate is 7.7 percent. To find this, we use the formula:

Nominal Interest Rate - Inflation Rate Equals Real Interest Rate

If the real return is expected to be 7.7 percent and the nominal return is 15 percent, we can rearrange the formula to solve for the inflation rate:

7.7% = 15% - Inflation Rate

By subtracting 7.7 percent from both sides, we find that:

Inflation Rate = 15% - 7.7%

Thus, Janet believes the inflation rate will be:

Inflation Rate = 7.3 percent.

Answer

The answer and procedures of the exercise are attached in the image below.  

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.  

Final answer:

Braxton Corp's initial cost of equity is 8.5%. If Braxton Corp takes on 20% debt, the new cost of equity will be 9.54%, and with 40% debt, it will be 11.12%. At 20% debt, the company's WACC and cost of equity for 40% debt need additional calculations involving the WACC formula with the given tax rate and cost of debts.

Explanation:

To answer the student's questions regarding Braxton Corp., we start with the information that the corporation currently has no debt and its Weighted Average Cost of Capital (WACC) is 8.5%, with a tax rate of 35%. Initially, the company's cost of equity is the same as its WACC since it has no debt, so it is 8.5%.

To calculate the new cost of equity after introducing debt, we can use the Modigliani-Miller proposition II with taxes, which identifies that the cost of equity increases with leverage due to the increased risk perceived by equity holders. The formula for the cost of equity when there is debt in the capital structure is:

Cost of equity = cost of equity with no leverage + (debt-to-equity ratio * (cost of equity with no leverage - after-tax cost of debt)).

To find the after-tax cost of debt, we use the formula: After-tax cost of debt = interest rate on debt * (1 - tax rate).

For Braxton Corp, the after-tax cost of debt = 6.7% * (1 - 0.35) = 4.355%.

Let's now calculate the new cost of equity if the firm converts to 20% and 40% debt:

20% Debt: The debt-to-equity ratio = 0.20 / (1 - 0.20) = 0.25

40% Debt: The debt-to-equity ratio = 0.40 / (1 - 0.40) = 0.6667

Using these debt-to-equity ratios, we can calculate the new cost of equity as follows:

At 20% debt:
Cost of equity = 8.5% + (0.25 * (8.5% - 4.355%)) = 9.53625% (rounded to 9.54%)

At 40% debt:
Cost of equity = 8.5% + (0.6667 * (8.5% - 4.355%)) = 11.11523% (rounded to 11.12%)

Lastly, to calculate the WACC for 20% and 40% debt scenarios, we use the WACC formula:

WACC = ((E/V) * Re) + ((D/V) * Rd * (1 - Tc)), where E is the market value of equity, Re is the cost of equity, D is the market value of debt, Rd is the cost of debt, V is the total market value of the firm's financing (E + D), and Tc is the corporate tax rate.

Answer: The correct answer is "A. decreases in aggregate demand (AD).".

Explanation: Keynes believed that there were "sticky" wages and that recessions are caused by decreases in aggregate demand (AD).

Keynes wondered how it was possible that having too many resources there were crises. What was your solution so that there was no excess of resources? Stimulate the demand for those excess resources to be consumed.

Keynesianism is based on state interventionism, defending economic policy as the best tool to get out of an economic crisis. Its economic policy is to increase public spending to stimulate aggregate demand and thus increase production, investment and employment.

Keynesian theory posits that recessions are caused by decreases in aggregate demand (AD), with wage and price 'stickiness' leading to unemployment. Government policy, according to Keynes, should either stimulate or contract the economy through fiscal measures to maintain stability.

According to Keynesian theory, recessions are primarily caused by decreases in aggregate demand (AD), which is answer choice A. Keynesian economics is built on the premise that aggregate demand is often the main driver of economic events, such as recessions, in the short run. Additionally, the theory highlights that wages and prices can be sticky, meaning they do not adjust quickly to decreases in demand. This stickiness can result in increased unemployment during economic downturns, as firms are less able to reduce wages and thus resort to laying off workers instead. Keynesians also believe in the concept of the expenditure multiplier, where an initial change in spending leads to a larger change in overall economic output (GDP).

Moreover, Keynesian policy advocates for government intervention to stabilize the economy. In times of recession, expansionary fiscal policy, such as tax cuts or increased government spending, is recommended to shift the aggregate demand curve to the right. Conversely, during periods of high economic output above potential GDP, the prescription is contractionary fiscal policy, with higher taxes or reduced government spending, to control inflation and shift aggregate demand to the left. This reflects a Keynesian perspective on market forces and the role of government policy in economic stabilization.

To achieve a retirement income of $4500 per month for 25 years, you would need a nest egg of approximately $625,357.24, and you would need to make monthly deposits of approximately $225.19 during your working years.

To calculate the size of the nest egg needed to achieve a desired monthly yield during retirement, as well as the monthly deposits required, we can use the present value of an annuity formula.

1. Size of the Nest Egg (Present Value, PV):

The formula for the present value of an annuity is given by:

[tex]P V=P M T \times\left(\frac{\left(1-(1+r)^{-n t}\right)}{r}\right)[/tex]

Where:

PV is the present value of the annuity (the size of the nest egg),

PMT is the periodic payment (monthly income during retirement),

r is the periodic interest rate, and

nt is the total number of periods.

In this case:

PMT = $4500 (desired monthly income during retirement),

[tex]r=\frac{7.2 \%}{12}[/tex]  = 0.006 (monthly interest rate), and

nt=12×25 = 300 (monthly payments for 25 years during retirement).

Plug in these values and calculate PV.

[tex]P V=4500 \times\left(\frac{1-(1+0.006)^{-300}}{0.006}\right)[/tex]

First, calculate the value within the parentheses:

[tex]\left(1-(1+0.006)^{-300}\right)[/tex] ≈0.83380

Substitute this value back into the formula:

[tex]P V=4500 \times\left(\frac{0.83380}{0.006}\right)[/tex]

Calculate the expression within the parentheses:

[tex]\left(\frac{0.83380}{0.006}\right)\\[/tex]  ≈ 138.968

Multiply by the monthly payment:

PV = 4500 x 138.968

The result is approximately PV ≈ 625,357.24

2. To find the monthly deposits required, we can use the future value of an annuity formula:

[tex]F V=P M T \times\left(\frac{\left((1+r)^{n t}-1\right)}{r}\right)[/tex]

Where:

FV is the future value (the size of the nest egg),

PMT is the periodic payment (monthly deposit),

r is the periodic interest rate, and

nt is the total number of periods.

In this case:

FV= the size of the nest egg calculated in step 1,

[tex]r=\frac{7.2 \%}{12}[/tex] = 0.006 (monthly interest rate), and

nt = 12×40 = 480 (monthly deposits for 40 years).

Plug in these values and calculate PMT:

[tex]P M T=\frac{\mathrm{PV}}{\left(\frac{\left((1+0.006)^{480}-1\right)}{0.006}\right)}[/tex]

[tex]\frac{\left((1+0.006)^{480}-1\right)}{0.006}[/tex] ≈ 2776.938

Divide PV by this value:

625,357.24 /  2776.938  ≈ 225.19

To achieve a $4500 monthly yield in retirement, a nest egg of approximately $404,035.5 is needed. The monthly deposits required to achieve this nest egg are approximately $32,850.3.

Size of Nest Egg (Future Value of Annuity):

The formula for the future value (FV) of an annuity is:

Future Value (FV) = Monthly Payment (P) × [(1 - (1 + Monthly Interest Rate)^(-Number of Payments)) / Monthly Interest Rate]

Given:

Monthly Payment (P) = $4500

Monthly Interest Rate = Annual Percentage Rate (APR) / 12 = 7.2% / 12

Number of Payments = 12 payments per year × 25 years

Calculating this gives us the size of the nest egg needed, which is approximately $404,035.5.

Monthly Deposits Required:

To find the monthly deposits required, we rearrange the annuity formula:

Monthly Payment (P) = [Nest Egg Size (FV) × Monthly Interest Rate] / [(1 - (1 + Monthly Interest Rate)^(-Number of Payments))]

Given:

Nest Egg Size (FV) = $404,035.5

Monthly Interest Rate = 7.2% / 12

Number of Payments = 12 payments per year × 40 years

Calculating this gives us the monthly deposits required, which is approximately $32,850.3.

Answer:

8.75%

Explanation:

Find the YTM which is the pretax cost of debt.

Using a financial calculator, input the following and adjust the coupon payment, time and interest rate to semi-annual basis.

Maturity of the bond; N= 14*2 = 28

Face value : FV = 1000

Price of the bond ; PV = -745.14

Semiannual Coupon payment; PMT = semiannual coupon rate* Face value

Semiannual Coupon payment; PMT = (8.6%/2)*1000 = 43

then compute the semiannual rate; CPT I/Y = 6.25%

Annual rate; YTM ; pretax cost of debt = 6.25*2 = 12.5%

Next, find aftertax cost of debt;

Aftertax cost of debt = pretax cost of debt (1-tax)

= 0.125 (1 -0.30)

= 0.0875 or 8.75% as a percentage

Therefore; aftertax cost of debt = 8.75%

Final answer:

The after-tax cost of debt is calculated by finding the bond's yield to maturity and adjusting it for the firm's tax rate. Without the actual calculation or a financial calculator, it's not possible to provide the exact YTM in this response. Once the YTM is found, the after-tax cost is YTM * (1 - Tax Rate), with a 30% tax rate in this scenario.

Explanation:

To calculate the after-tax cost of debt for the firm, we need to determine the yield to maturity (YTM) of the bond and then adjust it for the firm's tax rate. The bond in question has an 8.6 percent coupon rate, pays semiannually and is selling at a price of $745.14. We must use the present value of annuities formula to find the YTM, which is the interest rate that equates the present value of the future cash flows of the bond (interest payments and face value) to the current price of the bond. Once we find the YTM, we apply the tax rate to get the after-tax cost of debt.

Unfortunately, without a financial calculator or spreadsheet software, it's impractical to solve for the YTM in this response. Generally, the process involves using the present value formula:

PV = C * (1 - (1 + r)⁻ⁿ) / r + F / (1 + r)

Where PV is the current price of the bond ($745.14), C is the annual coupon payment, r is the YTM, n is the number of periods until maturity, and F is the face value of the bond. Once YTM is found, the after-tax cost of debt is calculated using the formula:

After-tax cost of debt = YTM * (1 - Tax Rate)

Given a 30 percent tax rate, the after-tax cost of debt would be

After-tax cost of debt = YTM * (1 - 0.30)

This reflects the actual cost to the firm of borrowing funds through the bond.

Answer:

Option (b) is correct.

Explanation:

Manufacturing overhead has an overallocated balance = $7,500

Cost of goods sold = $135,000

The overallocated manufacturing overhead will be simply added to the cost of goods sold.

After adjusting for the overallocated manufacturing overhead,

Cost of goods sold:

= cost of goods sold + overallocated balance of manufacturing overhead

= $135,000 + $7,500

= $142,500

Answer:

The correct answer is letter "A": Unexpected increases in the number of suppliers.

Explanation:

Frauds or money cleansing usually requires the help of a network of different business interconnected to clear the illegal funds with the excuse of having made commercial activities that never took place. In most cases, accounting documents are faked so that the proceeds of the questionable funds may seem as legal as possible.

In that case, if a company counts with more suppliers and fraud is taking place in the organization, they will have the excuse of making more payments so more funds can go out of the company.

Answer:

50%

Explanation:

Here is important to know that when we have the inflation rate (1,50% in this case) this indicator is enough to get the effect of the prices in an economy and get the nominal GDP affected by prices, so if the price level is 1,50% after the comma we have the average of the growth.

Answer:

$240

$174

$120

$75

$36

Explanation:

MRP = Change in revenue/Change in Labour

1. The first worker;

From the question, the first worker has 5 units

So, his change in revenue is 50+49+48+47+46 for the 5 units

Change in Revenue = $240

Since the worker remains the same and available all through,the change in Labour = 1 worker

MRP = $240/1

MRP = $240

2.The second worker;

The second worker has 4 units(starting from where the first worker stopped)

So, his change in revenue is 45+44+43+42 for the 4 units

Change in Revenue = $174

Since the worker remains the same and available all through,the change in Labour = 1 worker

MRP = $174/1

MRP = $174

3.The third worker;

The third worker has 3 units(starting from where the second worker stopped)

So, his change in revenue is 41+40+39 for the 3 units

Change in Revenue = $120

Since the worker remains the same and available all through,the change in Labour = 1 worker

MRP = $120/1

MRP = $120

4.The fourth worker;

The second worker has 2 units(starting from where the third worker stopped)

So, his change in revenue is 38+37 for the 2 units

Change in Revenue = $75

Since the worker remains the same and available all through,the change in Labour = 1 worker

MRP = $75/1

MRP = $75

5.The fifth worker;

The second worker has 1 units(starting from where the fourth worker stopped)

So, his change in revenue is 36 for the 1 unit

Change in Revenue = $36

Since the worker remains the same and available all through,the change in Labour = 1 worker

MRP = $36/1

MRP = $36

Answer:$1200

Explanation:

The maximum interest payable for year one of 2018 is 8% of $15000 which gives $1200.

If the investment income is greater than investment interest expenses of $1200 . The amount of investment interest expenses she can deduct is $1200.

Answer:

Please see attachment

Explanation:

Please see attachment

The table summarizes the total and per-share dividends declared on each class of stock for each year, focusing on preferred and common stock.

To determine the total dividends and per-share dividends declared on each class of stock for each of the six years, we need to calculate the dividends for the preferred stock and common stock separately. For the preferred stock, we multiply the number of preferred shares by the dividend rate. For the common stock, we divide the remaining dividend amount after paying the preferred stock dividends by the number of common shares.

The table below summarizes the data:

Year Total Dividends Pref. Dividends per Share Common Dividends per Share Year 1$24,000.00$1.20$0.20Year 2$48,000.00$2.40$0.40Year 3$108,000.00$5.40$0.90Year 4$132,000.00$6.60$1.10Year 5$168,000.00$8.40$1.40Year 6$216,000.00$10.80$1.80

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