You purchased 1,000 shares of the New Fund at a price of $39 per share at the beginning of the year. You paid a front-end load of 3.4%. The securities in which the fund invests increase in value by 8% during the year. The fund's expense ratio is 1.4%. What is your rate of return on the fund if you sell your shares at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

Answer 1

Answer:

2.97%

Explanation:

cost of shares = (NAV0 × shares) ÷ (1 - FL)

                         = ($39 × 1,000) ÷ (1 - 0.034)

                          = 40,372.67

NAV1 = NAVo (1 + investment return - expense ratio)

= $39 × (1 + 0.08 - 0.014)

= 41.574

value of shares = NAV1 × Shares

                          = 41.574 × 1,000

                           = 41,574

Return = (value of shares ÷ cost of shares) - 1

           = (41,574 ÷ 40,372.67) - 1

           = 2.97%


Related Questions

Braxton Corp. has no debt but can borrow at 6.7 percent. The firm’s WACC is currently 8.5 percent, and the tax rate is 35 percent.
a. What is the company’s cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %
b. If the firm converts to 20 percent debt, what will its cost of equity be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %
c. If the firm converts to 40 percent debt, what will its cost of equity be?
d. If the firm converts to 20 percent debt, what is the company’s WACC?
e. If the firm converts to 40 percent debt, what is the company’s WACC?
WACC___%.

Answers

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.

Which of the following terms best describes a company that has operations in various countries, follows policies to develop local R&D to tailor products to markets, lets plants set their own rules, and aims at being a good corporate citizen in every country?

Answers

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.

Johansen Corporation has a target capital structure of 60 percent common stock and 40 percent debt. Its cost of equity is 14 percent, and the cost of debt is 8 percent. The relevant tax rate is 30 percent.What is the company's WACC?

Answers

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

Which relationship might suggest a heightened risk of fraud in the acquisition and payment cycle? a. Unexpected increases in the number of suppliers. b. Sales expenses growing in proportion to sales revenue. c. A reduction in raw material costs. d. Maturing capital assets with no plan for rep

Answers

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.

Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. Demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars.
a) For a 90% service level, what is the ROP?
b) What is the ROP for a 95% service level?
c) Explain what these two service levels mean. Which is preferable?

Answers

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.

Diamond Design Company makes custom chairs for individual customers. On September 1, there was one job in process, Job 243, with a cost of $2,000. Jobs 244, 245, and 246 were started during the month of September. Data on costs added during the month are as follows:
Job 243 Job 244 Job 245 Job 246Direct Materials $9,000 $2,280 $6,700 $8,000Direct Labor 2,240 1,000 2,300 2,530Overhead is applied to production at the rate of 60% of direct labor cost. Job 245 was completed on September 14 and the client was billed at cost plus 40%. All other jobs remained in process.
Calculate the balance in Work-in-Process on September 30.a. $15,820b. $17,717c. $30,512d. $22,875e. $32,820

Answers

Answer:

c. $30,512

Explanation:

Please see attachment

Final answer:

The ending work-in-process balance for Diamond Design Company on September 30 is $32,482, calculated by totaling the costs for jobs 243, 244, and 246 that were still in process at the end of the month.

Explanation:

To calculate the balance in Work-in-Process on September 30 for Diamond Design Company, we will add the cost layers for each job that remained in process at the end of the month. We start with the opening balance of Job 243 and then add the direct materials, direct labor, and overhead applied to the jobs that were not completed within the month.

Here are the calculations:

Job 243: $2,000 (opening balance) + $9,000 (direct materials) + $2,240 (direct labor) + ($2,240 * 60% overhead) = $15,584Job 244: $2,280 (direct materials) + $1,000 (direct labor) + ($1,000 * 60% overhead) = $4,000Job 246: $8,000 (direct materials) + $2,530 (direct labor) + ($2,530 * 60% overhead) = $12,898

Adding those amounts gives us the ending work-in-process balance:

$15,584 (Job 243) + $4,000 (Job 244) + $12,898 (Job 246) = $32,482

Therefore, the correct balance on September 30 for work-in-process is $32,482.

X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $64,000 per year; operating costs with the new machine are expected to be $50,000 per year. The new machine will cost $70,000 and will last for five years, at which time it can be sold for $3,000. The current machine will also last for five more years but will not be worth anything at that time. It cost $34,000 three years ago but is currently worth only $5,000. Assuming a discount rate of 7%, what is the incremental net present value of replacing the current machine with the new machine?

Answers

Answer:

7.915

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A bank features a savings account that has an annual percentage rate of 3.4% with interest compounded quarterly. Ashley opens one of these brand new savings accounts and deposits $2,000 into the account. What is her account balance after 4 years, rounded to the nearest cent?

Answers

Answer:

$2,290.05

Explanation:

Principle, P = $2,000

Rate of interest, r = 3.4%

Time period, t = 4 years

n = 4

Therefore,

[tex]Amount=P(1+\frac{r}{n})^{nt}[/tex]

[tex]Amount=2,000(1+\frac{3.4}{400})^{4\times 4}[/tex]

[tex]Amount=2,000(1+\frac{3.4}{400})^{16}[/tex]

                   = $2,290.05

Hence, account balance after 4 years is $2,290.05.

Labor data for making one pound of finished product in Curling Co. are as follows: Price-hourly wage rate $11.00, payroll taxes $1.80, and fringe benefits $1.20. Quantity-actual production time 1.1 hours, rest periods and clean up 0.25 hours, and setup and downtime 0.15 hours. Compute the following. (Round answers to 2 decimal places, e.g. 52.75.) Standard direct labor rate per hour Standard direct labor hours per pound hours Standard cost per pound.

Answers

Answer:

Standard direct labor rate per hour $14

Standard direct labor hours per pound hours 1.5 hours

Standard cost per pound $21

Explanation:

The computation is shown below:

For Standard direct labor rate per hour:

= Price-hourly wage rate + payroll taxes + fringe benefits

= $11 + $1.80 + $1.20

= $14

For Standard direct labor hours per pound hours:

=  Quantity-actual production time hours + rest periods and clean up hours + setup and downtime hours

= 1.1 + 0.25 + 0.15

= 1.5 hours

For Standard cost per pound:

= Standard direct labor rate per hour × Standard direct labor hours per pound hours

= $14 × 1.5 hours

= $21

A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,000; depreciation is $51,000. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected net income? (Input all amounts as positive values.)

Answers

Answer:

The projected Net Income is $70,784

Explanation:

The Pro- forma income Statement

Working Note:

Variable cost = Sales × 44%

= $585,000 × 44%

= $257,400

EBT (Earnings before Tax) = Sales - Variable cost - fixed cost - depreciation

= $585,000 - $257,400 - $187,000 - $51,000

= $89,600

Net Income = EBT × Tax rate

= $89,600 × 21%

= $70,784

Final answer:

By calculating the total variable costs, deducting them along with the fixed costs and depreciation from sales, and subtracting the taxes from EBIT, the projected net income for the proposed investment is found to be $70,784.

Explanation:

Pro Forma Income Statement Calculation

To calculate the projected net income for the proposed investment, we need to follow these steps:

Calculate total variable costs by multiplying projected sales by the variable cost percentage. In this case, $585,000 * 44% = $257,400.

Subtract variable costs and fixed costs from sales to determine the earnings before interest, taxes, depreciation, and amortization (EBITDA). Therefore, $585,000 - $257,400 - $187,000 = $140,600.

Next, subtract depreciation to find earnings before interest and taxes (EBIT). Here, $140,600 - $51,000 = $89,600.

Now, calculate the taxes by multiplying EBIT by the tax rate. So, $89,600 * 21% = $18,816.

Finally, subtract taxes from EBIT to determine the projected net income. Thus, $89,600 - $18,816 = $70,784.

The projected net income for the new investment is $70,784.

Answer the questions about Keynesian theory, market economics, and government policy.
Keynes believed that there were "sticky" wages and that recessions are caused by
A. decreases in aggregate demand (AD).
B. increases in unemployment.
C. increases in prices.
D. decreases in supply.

Answers

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.

Final answer:

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.

Explanation:

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.

During the latest year. XYZ Corporation has total sales of $400,000. net income of 10000, and its year end total sses were S 500 000. The firm's total debt to total assets ratio was 30%, what is firm's profit margin? (Enter your answers as a decimal rounded to 4 decimal places, not a percentage. For example, enter 0. 0843 instead of 8.43 Your Answer: Answer D View hint for Question 23 Question 24 (1 point) If a company's ROA is 9% and its total long-term debt to total assets ratio is 40%, what is its ROE (return on. equity)? (Enter your answers as a decimal rounded to 4 decimal places, not a percentage For example enter 00843 instead of 843%) Your Answer:

Answers

Answer:

2.50%; 15%

Explanation:

Profit margin = (Net income ÷ sales) × 100

                      = ($10,000 ÷ $400,000) × 100

                       = 2.50%

Total long-term debt to total assets ratio = 40%

So,

= Total equity ÷ Total assets

= 60%

Equity multiplier = Total assets ÷ Total equity

                           = 1.66667

ROA = 9%

ROE (return on equity):

= (Profit margin × Total assets turnover) × Equity multiplier

= ROA × Equity multiplier

= 9% × 1.66667

= 15%

Final answer:

The profit margin of XYZ Corporation is 0.0250. To find it, divide the net income of $10,000 by the total sales of $400,000. Similarly, a firm's accounting profit with a sales revenue of $1 million and various costs would be $50,000.

Explanation:

To calculate the profit margin of XYZ Corporation, we divide its net income by its total sales. The profit margin formula is: Profit Margin = (Net Income / Total Sales).

In this case, XYZ Corporation's net income is $10,000 and its total sales are $400,000. Therefore, the profit margin would be calculated as follows: Profit Margin = ($10,000 / $400,000) = 0.025. So, the profit margin, when entered correctly as a decimal, is 0.0250.

For the self-check question regarding the firm with sales revenue of $1 million, the accounting profit is found by subtracting the total costs (labor, capital, and materials) from the sales revenue. The firm's accounting profit would be: $1 million - ($600,000 + $150,000 + $200,000) = $1 million - $950,000 = $50,000.

During the​ year, credit sales amounted to​ $800,000. Cash collected on credit sales amounted to​ $780,000, and​ $16,000 has been written off. At the end of the​ year, the company adjusted for bad debts expense using the​ percent-of-sales method and applied a​ rate, based on past​ history, of​ 3.5%. The ending balance of Accounts Receivable is​ ________.

Answers

Answer:

Bad debt expense = $28000

Ending balance = $4000

Explanation:

given data

Credit sales= $800000

Cash collection = $780,000

Write off = $16,000

rate = 3.5 %

to find out

ending balance of Accounts Receivable is​

solution

first we get Bad debt expense that is express as

Bad debt expense = 800000 × 3.5%

Bad debt expense = $28000

and

Ending balance is express as

Ending balance = Credit sales - Cash collection - Write off     ..............1

put here value

Ending balance = $800000  - $780,000 - $16,000

Ending balance = $4000

Final answer:

The ending balance of Accounts Receivable is calculated $32,000 by adding credit sales to the beginning balance, subtracting cash collections and write-offs, and then adjusting for the bad debts expense calculated by the percent-of-sales method.

Explanation:

The student asked about calculating the ending balance of Accounts Receivable when given the credit sales, cash collected, amount written off, and bad debts expense using the percent-of-sales method. To calculate the ending balance of Accounts Receivable, you must account for the beginning balance, add credit sales, subtract cash collections and write-offs, and adjust for the calculated bad debts expense.

Here's a step-by-step process:

Calculate the bad debts expense using the percent-of-sales method: $800,000 (credit sales) × 3.5% = $28,000.

Determine the amount of Accounts Receivable before the adjustment for bad debts: $800,000 (credit sales) - $780,000 (cash collected) - $16,000 (write-offs) = $4,000.

Add the bad debts expense to the Accounts Receivable before adjustment: $4,000 + $28,000 = $32,000, which is the ending balance of Accounts Receivable.

Inventory at the beginning of the period had a debit balance of $7,000, and a debit balance of $10,000 at the end of the period. Using the indirect method, this will be reported in the operating section of the statement of cash flows as: Click the answer you think is right. a decrease of $3,000 which will be added to net income a decrease of $3,000 which will be subtracted from net income an increase of $3,000 which will be subtracted from net income an increase of $3,000 which will be added to net income Read about this Do you know the answer?

Answers

Answer:

an increase of $3,000 which will be subtracted from net income

Explanation:

an increase of $3,000 which will be subtracted from net income .Increase in Inventory = 10000-7000 = $3000  .Increase in Inventory is reported as a decrease and subtracted from net income  .an increase of $3,000 which will be subtracted from net income

In the short run, the quantity of output that firms supply can deviate from the natural rate of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen.For example, the sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level. Suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. Many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. The actual price level turns out to be 90. Faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. Sales from catalogs will _______(Remain the same/fall/rise), and firms that rely on catalogs will respond by _______ (Increasing/Reducing) the quantity of output they supply. If enough firms face high costs of adjusting prices, the unexpected decrease in the price level causes the quantity of output supplied to ______ (Fall below/Rise above) the natural rate of output in the short run.

Answers

Answer:

The actual price level turns out to be 90. Faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. Sales from catalogs will remain the same, and firms that rely on catalogs will respond by increasing the quantity of output they supply.

If enough firms face high costs of adjusting prices, the unexpected decrease in the price level causes the quantity of output supplied to rise above the natural rate of output in the short run.

Explanation:

The inputs are based on the sticky-price theory, with explaination as below:

"In the short run, the quantity of output that firms supply can deviate from the natural rate of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen. For example, the sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level."

You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. If the bank pays 6% nominal interest, compounded semiannually, how much will be in your account after 3 years? One year from today you must make a payment of $4,000. To prepare for this payment, you plan to make two equal quarterly deposits (at the end of Quarters 1 and 2) in a bank that pays 6% nominal interest compounded quarterly. How large must each of the two payments be?

Answers

Answer:

Check the calculation below.

Explanation:

a) Amount in account after 3 years:

= $1,000 (1+ 0.03)5 + $1,000 (1+ 0.03)4+ $1,000 (1+ 0.03)3 + $1,000 (1+ 0.03)2 + $1,000 (1+ 0.03)

= $1,159.27 + 1,125.51 + 1,092.73 + 1,060.90 + 1,030

= $5,468.40

b) Calculation of amount of payment:

Let the amount of each of two payment be "P".

Now, $4,000 = P (1 + 0.015)3 + P (1 + 0.015)2

or,$4,000 = 1.0457 P + 1.0302 P

or, P = $4,000 / 2.0759

or, P = 1,927 (Approx)

Final answer:

To have $10,000 in ten years with 10% interest compounded annually, you need to deposit $3,874.38.

Explanation:

To calculate how much money you need to put into a bank account to have $10,000 in ten years with 10% interest compounded annually, you can use the formula for compound interest, which is A = P(1 + r/n)^nt. In this case, P is the principal amount (the initial deposit), r is the interest rate (10% or 0.10), n is the number of times interest is compounded per year (1 for annually compounded interest), and t is the number of years (10).

Substituting these values into the formula, we get A = P(1 + 0.10/1)^(1*10) = 10,000. Rearranging the formula to solve for P, we have P = A / (1 + r/n)^nt. Plugging in the known values, we calculate P = 10,000 / (1 + 0.10/1)^(1*10) = $3,874.38.

Learn more about Compound interest here:

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arry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company’s stock currently is valued at $50.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $40.00 per share. Larry worries about the value of his investment. Larry's current investment in the company is _____

Answers

Answer:

$100,000

Explanation:

Data provided in the question:

Number of shares held by Larry = 2,000

Shares outstanding = 20,000

Current value of stock = $50.00 per share

Number of shares to be issued = 5,000

Issuing price = $40.00 per share

Now,

Larry's current investment in the company

= Number of shares held by Larry × Current value of stock

= 2,000 shares × $50.00 per share

= $100,000

Assume instead that the fair market value of the land was $87,000 and that of the building was $65,000. Determine Gerald's adjusted basis for the land and building. Gerald's basis for gain: Gerald's adjusted basis for the land is $. Gerald's adjusted basis for the building is $. Gerald's basis for loss: Gerald's adjusted basis for the land is $. Gerald's adjusted basis for the building is $.

Answers

Answer:

Please see attachment

Explanation:

Please see attachment

Brandon walked out of a team meeting with the understanding that none of the team could take vacation time for the next month. What was actually stated in the meeting was that the project was under a strict deadline, and an employee would need to have their part finished before taking vacation time. This is an example of which barrier to effective communication?

A) Bias
B) Lack of trust
C) Lack of engagement
D) Filtering

Answers

Answer:

D) Filtering

Explanation:

Filtering is the act of hearing what one expects or wants to hear instead of what was actually stated. In this case, Brandon assumed none of the team could take vacation time for the next month while what was really said is that only one employee would need to have their part finished before taking vacation time.

The answer is D) Filtering

The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 20% stock dividend. The stock’s per share market value on April 2 is $15 (prior to the dividend).





Common stock—$5 par value, 475,000 shares authorized, 250,000 shares issued and outstanding $ 1,250,000

Paid-in capital in excess of par value, common stock 590,000

Retained earnings 883,000


Total stockholders' equity $ 2,723,000

Answers

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Pam works for a corporation that recently fired three top managers who were caught using the company credit cards to lavishly furnish their offices and even purchase "office" furniture that was found in their personal homes. Which method of maintaining an ethical culture is Pam's company pursuing? A) serve as a visible role model B) communicate ethical expectations C) provide ethical training D) visibly punish unethical acts E) provide protective mechanisms

Answers

Answer:

(D). Visibly punish unethical acts

Explanation:

Ethics refer to how people conduct themselves morally. Each organization has an Ethical Code they expect their employees to abide by.

When employees act outside an organization's Code of Ethics, then punishing them visibly is a way to serve as a deterrent to other employees.

Employees should also be openly rewarded when they act in accordance to the Code of Ethics to encourage others to do the same.

In this case, Pam's company is using visible punishment to maintain its ethical culture and send a message to the other employees.

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: The locations area: Atlanta ($80,000, $20) and Phoenix ($140,000, $16) . The first number with in the parentheses is the fixed cost and the second number is the variable cost per unit If the annual demand is 20,000 units, what would be the cost advantage of the better location? Select one: A. $60,000 B. $80,000 C. $480,000 D. $20,000 E. $460,000

Answers

Answer:

D. $20,000

Explanation:

Considering the cost elements of Atlanta

Fixed cost = $80,000

Variable cost per unit = $20

Where 20,000 units are produced (to meet annual demands)

Total cost = 80,000 + (20000 × 20)

                = 80,000 + 400,000

                = $480,000

Considering the cost elements of Phoenix

Fixed cost = $140,000

Variable cost per unit = $16

Where 20,000 units are produced (to meet annual demands)

Total cost = 140,000 + (20000 × 16)

                = 140,000 + 320,000

                = $460,000

Comparing the cost of production in the two locations, the cost advantage of the better location (Phoenix)

= 480,000 - 460,000

= $20,000

Are there any similarities between the characteristics demanded of an entrepreneur and those of a professional athlete? Would an athlete be a good prospect for entrepreneurship? Why or why not? Could teamwork be important in an entrepreneurial effort? Why or why not?

Answers

Answer:

The demands of an entrepreneur and a professional athlete are more comparative than one may expect.

Explanation:

Professional athlete are required to place in extended periods of time, remain submitted, deal with their bodies, keep an expert notoriety, and deal with their own image. An entrepreneur must work unusual hours, stay with their objectives, deal with themselves, arrange and keep up great associations with sellers and clients, and advance their organisation. So yes they both have similarities and an athlete can work as an entrepreneur because he knows how to work with team members and how to stay on objectives.

Entrepreneurial traits can overlap with characteristics of professional athletes, highlighting similarities and differences in their skill sets.

Similarities between entrepreneurs and professional athletes include traits like drive, determination, and resilience. Athletes often possess strong work ethic and discipline, essential for entrepreneurship. However, entrepreneurship requires additional skills like innovation, adaptability, and risk-taking that may not be as prominent in athletes.

An athlete could be a good prospect for entrepreneurship if they can transfer their competitive mindset and work ethic into business strategies. Teamwork is crucial in entrepreneurial efforts as it allows for diverse skills and perspectives to come together to tackle challenges and drive success.

Sell or Process Further Rise N' Shine Coffee Company produces Columbian coffee in batches of 6,000 pounds. The standard quantity of materials required in the process is 6,000 pounds, which cost $5.50 per pound. Columbian coffee can be sold without further processing for $9.22 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.88 per pound. The processing into Decaf Columbian requires additional processing costs of $10,230 per batch. The additional processing also causes a 5% loss of product due to evaporation. a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Answers

Answer:

Please see attachment

Explanation:

Please see attachment

An investment offers a total return of 15 percent over the coming year. Janet Jello thinks the total real return on this investment will be only 7.7 percent.

What does Janet believe the inflation rate will be over the next year?

Answers

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.

Camille, a college student, feels that now is a good time to buy stocks. However, because she doesn't have any savings, she decides to borrow $15,000 at an annual interest rate of 8 percent. She must make an interest-only payment each year for five years plus repay the entire principal in year five. On August 1, 2018 when Camille obtained the loan, Camille invested $10,000 in several individual stocks and used the remaining $5,000 to pay her tuition for the year. Assuming Camille's investment income this year is greater than her investment interest expense this year, how much investment interest expense can she deduct in 2018?

Answers

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.

You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4500 per month. You have access to an account that pays an APR of 7.2% compounded monthly. What size nest egg do you need to achieve the desired monthly yield?

What montly deposits are required to achieve the desired monthly yield at retirement?

Answers

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.

Suppose that a monopoly firm finds that its MR is $50 for the first unit sold each day, $49 for the second unit sold each day, $48 for the third unit sold each day, and so on. Further suppose that the first worker hired produces 5 units per day, the second 4 units per day, the third 3 units per day, and so on.

a. What is the firm’s MRP for each of the first five workers?
Worker MRP Unregulated
1 ----------------
2 ----------------
3 ----------------
4 ----------------
5 ----------------

Answers

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

develop a product service idea.

A. Describe the product/service including the benefits of using the product/service

B. Discuss the potential customers for this product/service

2. Based on the nature of the product/service, recommend at least 3 possible social media to use in marketing the product/service. Describe your recommendations and discuss the advantages and disadvantages of each.

Answers

Answer:

Read the following explanation.

Explanation:

1a- My products idea is the auto-home temperature control system which will benefit the customers to control the temperature of their home in winter time. this product is both automatic means customer can control this system with remote and use of internet as well as manually by changing its settings.

b- The potential customers for this product are based on geographic segmentation in which customers who live in cold countries like Canada, America, Atlanta, Russia will be targeted.

another potential custome segmentation will be based on demographic in which customers who are professionals like doctors, lawyers, or job doers and having average to high income level will be targeted like income level from $50000-above $150000.

2-the three possible way to market my product are-

a-Use of google in which customers will type the name of my product and it will list on top because of SEO and i will rank my product on top list so that customers can click and read about my product on my website easily.

the pro of this that customers will get information easily and place order. this will help to build good image of my product being top at google list.

the con is that this may cost more to put my product on top of search engine list.

b- The use of social media like Fb post, instagram etc in which my product will get advantage of being marketed to wide range of audience at low cost. also there are billions of users on social media so we can reach to them in less time.

the con of this is that use of social media involves other big brands and products already so customers tend to ignore such ads.

c- the third would be use of TV commercials in which we would use celebrity influenece to market my products. the advantage of this is that Customers will be influneced by celebrity power and will order the product. Tv commercials will have customers who are ignored by social media.

the con of this is that this may cost extra to hire celebrity also customers who are to watch Tv shows or movies tend to skip ads.

You are analyzing the cost of debt for a firm. You know that the firm’s 14-year maturity, 8.6 percent coupon bonds are selling at a price of $745.14. The bonds pay interest semiannually. If these bonds are the only debt outstanding for the firm, answer the following questions.What is the after-tax cost of debt for this firm if it has a 30 percent marginal and average tax rate?

Answers

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.

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