Answer:
C. $222,500 ÷ $313,500
Explanation:
Calculation for cost to retail ratio
COST
Beginning inventory $30,000
Add; Purchases $190,000
Add: Freight in $2,500
Cost $222,500
RETAIL
Beginning inventory $45,000
Add: Purchases $260,000
Add: Net mark ups $8,500
Retail $313,500
Therefore, the cost to retail ratio will be
$222,500 $313,500
Dextra Computing sells merchandise for $9,000 cash on September 30 (cost of merchandise is $7,200). Dextra collects 7% sales tax. Record the entry for the $9,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.
View transaction list
Journal entry worksheet
Record the cash sales and 9% sales tax.
Note: Enter debits before credits.
Date General Journal Debit Credit
Sep 30
Record entry Clear entry View general journal
Answer:
Sept 30
DR Cash ........................... $9,630
CR Sales ..........................................$9,000
CR Sales Tax Payable...................$630
(To record Sales and Sales taxes)
Working
Cash = 9,000 + (9,000 * 7%)
= $9,630
Sales tax = 9,630 - 9,000
= $630
Sept 30
DR Cost of Goods Sold .....................$7,200
CR Merchandise Inventory ...................................$7,200
(To record cost of goods sold)
Oct 15
DR Sales Tax Payable...........................$630
CR Cash...............................................................$630
(To record remittance of Sales Tax)
Indigo Corporation had the following tax information.
Year Taxable Income Tax Rate Taxes Paid
2015 $294,000 35% $102,900
2016 332,000 30% 99,600
2017 399,000 30% 119,700
In 2018, Indigo suffered a net operating loss of $487,000, which it elected to carry back. The 2018 enacted tax rate is 26%.
Prepare Indigo’s entry to record the effect of the loss carryback.
Account titles Debit Credit
Answer:
Explanation:
Given that:
Indigo Corporation had the following tax information.
Year Taxable Income Tax Rate Taxes Paid
2015 $294,000 35% $102,900
2016 332,000 30% 99,600
2017 399,000 30% 119,700
In 2018, Indigo suffered a net operating loss of $487,000, which it elected to carry back. The 2018 enacted tax rate is 26%.
The objective is to prepare the Indigo's entry to record the effect of the loss carryback.
The Income Tax Refund Receivable = Taxable income(2018) × Tax rate(2018) + ( net operating loss - Taxable income(2018) ) × Tax rate(2018)
(332000 × 30%)+(476000-332000) × 30%
The Income Tax Refund Receivable = (332000 × 0.30)+(476000-332000) × 0.30
The Income Tax Refund Receivable = 99600 + 144000× 0.30
The Income Tax Refund Receivable = 99600 + 43200
The Income Tax Refund Receivable = 142800
Therefore, Indigo Corporation ENtry can be prepared as follows:
Account titles Debit Credit
Income Tax Refund Receivable 142800
Benefit Due to Loss Carryback 142800
To record the effect of the loss carryback
If the poverty trap were made even more difficult to overcome because a working mother will have extra expenses like transportation and child care that a non-working mother will not face, then:_______.
a. she will have a powerful incentive to work more than job.
b. the family better off than if she did not work at all.
c. her economic grains from working will be even smaller.
The question is incomplete:
If the poverty trap were made even more difficult to overcome because a working mother will have extra expenses like transportation and child care that a non-working mother will not face, then:_______.
a. she will have a powerful incentive to work more than one job.
b. the family better off than if she did not work at all.
c. her economic grains from working will be even smaller.
d. The future is even more attractive.
Answer:
c. her economic grains from working will be even smaller.
Explanation:
The poverty trap is a situation in which having more income results on losing benefits. In this case, the poverty trap is more difficult to overcome because a working mother will have a salary but this results on her having additional expenses that she would not have if she was not working and this decreases the benefits she gets by having a job. Because of that, the answer is that her economic grains from working will be even smaller.
The other options are not right because she won't have an incentive to work more than one job because that would increase expenses like child care, the family won't be better as a result of the additional expenses and because of that, the future won't be more attractive.
Answer:
c. her economic grains from working will be even smaller.
Explanation:
In economics, the poverty trap refers to certain circumstances that make it very difficult for a poor person to become middle or upper class, or increase their income even if they continue to fall under the poverty line.
Imagine a situation where you work for a very low salary, and besides that, you must spend a large portion of your salary paying for transportation and childcare costs. The gains resulting from your work will decrease compared to a situation where you worked in a business that was located at a walking distance and childcare services were provided for free. The economic equation is simple, the higher the costs, the less the profit.
The Asian Garden, a local Thai restaurant, expects sales to be $ 285,000 in January. Its average customer restaurant bill is $ 15. Only 20 % of the restaurant bills are paid with cash; 60 % are paid with credit cards and 20 % with debit cards. The transaction fees charged by the credit and debit card issuers are as follows:Credit cards: $0.60 per transaction + 2 % of the amount chargedDebit cards: $0.55 per transaction + 1% of the amount chargedRequried:a. How much of the total sales revenue is expected to be paid incash?b. How many customer transactions does the company expect inJanuary?c. How much of the total sales revenue is expected to be paid with credit cards?d. How many customer transactions will be paid for by customers using creditcards?e. When budgeting for January's operating expenses, how much should the restaurant expect to incur in credit card transactionfees?f. How much of the total sales revenue is expected to be paid with debit cards?g. How many customer transactions will be paid for by customers using debitcards?h. When budgeting for January's operating expenses, how much should the restaurant expect to incur in debit card transactionfees?i. How much money will be deposited in the restaurant's bank account during the month of January related to credit and debit card sales? Assume the credit and debit card issuers deposit the funds on the same day the transactions occur at the restaurant(there is no processing delay).j. What is the total amount of money that the restaurant expects to deposit in its bank account during the month of January from cash, credit card, and debit card sales? Again assume the credit and debit card issuers deposit the funds on the same day that the transaction occurs.
Answer:
a. How much of the total sales revenue is expected to be paid incash?
$855,000b. How many customer transactions does the company expect inJanuary?
19,000c. How much of the total sales revenue is expected to be paid with credit cards?
$171,000d. How many customer transactions will be paid for by customers using creditcards?
11,400e. When budgeting for January's operating expenses, how much should the restaurant expect to incur in credit card transactionfees?
$10,260f. How much of the total sales revenue is expected to be paid with debit cards?
$57,000g. How many customer transactions will be paid for by customers using debitcards?
3,800h. When budgeting for January's operating expenses, how much should the restaurant expect to incur in debit card transactionfees?
$2,660i. How much money will be deposited in the restaurant's bank account during the month of January related to credit and debit card sales? Assume the credit and debit card issuers deposit the funds on the same day the transactions occur at the restaurant(there is no processing delay).
$215,080j. What is the total amount of money that the restaurant expects to deposit in its bank account during the month of January from cash, credit card, and debit card sales? Again assume the credit and debit card issuers deposit the funds on the same day that the transaction occurs.
$272,080Explanation:
total sales $285,000 / $15 = 19,000 customers
cash sales = $285,000 x 20% = $57,000credit cards = $285,000 x 60% = $171,000debit cards = $285,000 x 20% = $57,000credit card fees = (11,400 x $0.60) + ($171,000 x 2%) = $10,260
debit card fees = (3,800 x $0.55) + ($57,000 x 1%) = $2,660
Rollins Corporation is estimating its WACC. Its target capital structure is 20% debt, 20% preferred stock, and 60% common equity. Its bonds have a 7.5% coupon, paid semi-annually, a current maturity of 20 years, and sell for $1,105.78. The firm could sell, at par, $100 preferred stock which pays a 8% annual dividend, but flotation costs of 5 percent would be incurred. Rollins' beta is 1.8, the risk-free rate is 2.45%, and the market risk premium is 5%. The firm's marginal tax rate is 40 percent.
A. What is the companyâs cost of preferred equity?
B. What is the companyâs cost of common equity?
C. What is the companyâs WACC?
Answer:
A. What is the company's cost of preferred equity?
8.42%B. What is the company's cost of common equity?
11.45%C. What is the company's WACC?
9.31%Explanation:
20% debt ⇒ after tax cost of debt 3.76%
20% preferred stock ⇒ 8.42%
60% common equity ⇒ 11.45%
in order to determine the after tax cost of debt we must first determine the yield to maturity of debt:
approximate YTM = {37.5 +[(1,000 - 1,150.78)/40]} / [(1,000 + 1,150.78)/2] = 33.7305 / 1,075.39 = 3.3166% x 2 = 6.2732%
after tax cost of debt = 6.2732% x 0.6 = 3.76%
cost of preferred stocks = 8 / (100 x 0.95) = 8 / 95 = 8.42%
cost of equity (Re) = 2.45% + (1.8 x 5%) = 2.45% + 9% = 11.45%
WACC = (60% x 11.45%) + (20% x 8.42%) + (20% x 3.76%) = 6.87% + 1.684% + 0.752% = 9.306% = 9.31%
A written statement of what a job holder does, how it is done, under what conditions it is done, and why it is done is
Answer: Job description
Explanation:
A job description is a written statement that shows the responsibility of a worker in a particular organization. A job description can also include the details about the company such as the mission and vision of the company and its culture.
The job description is a written statement of what a job holder does, how it is done, under what conditions it is done, and why it is done.
The development manager is required to choose between two projects. Project A has an IRR of 25% and project B has an IRR of 30%. Which of the following statements is correct? A. If she can invest only in one project, the manager will choose project B B. None of the statements above is correct C. If she can invest only in one project, the manager will choose project A D. If she can invest in both projects, the manager will choose both projects A and B
Answer:
A
D
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
Because the IRR of both projects are positive, both projects are acceptable.
If the manager can only choose one project, she should choose the one with the higher IRR because it would be more profitable.
The first step in creating your personal marketing plan is to conduct a career audit.
Apply the "Evaluate your abilities" step in career audit on yourself including your work (if working), a
specific project you did, your academic progress or any major event(s) on your career path.
Answer:Personal marketing plan 1. Outline your distinctive price proposition. In selling, a press release that addresses distinctive variations between like product is thought as a “value proposition”. Triple-crown sales individuals knowledge to elucidate w
Explanation:
Effectiveness of a solution is equal to:_______
a. Quality of a Solution 20% (x) Acceptability of the Solution 80%
b. Quality of a Solution 80% (x) Acceptability of the Solution 20%
c. Quality of a Solution 10% (x) Acceptability of the Solution 90%
d. Quality of a Solution 90% (x) Acceptability of the Solution 10%
e. None of the above
Answer:
a. Quality of a Solution 20% (x) Acceptability of the Solution 80%
Explanation:
We say that a solution is effective i.e 100%, when it has a 20% of its quality and 80% of its acceptability.
A solution is effective when it has a 100% effect. The application of a solution to a problem which yields 100% effect is said to be effective and acceptable.
The scale used is the relationship given as:
Effectiveness of a solution = Quality of a Solution 20% (x) Acceptability of the Solution 80%
After reading it write about whether or not you agree with the academic economic consensus that independent officials running the Federal Reserve are able to properly balance their dual mandate in a fair and balanced fashion with the needs of workers in one hand and the financial industry on the other. If you agree with the consensus view explain your reasons; or if you disagree and think that the officials are biased in favor of the financial industry explain your reasoning with some possible solutions to the problem. Write at least two paragraphs articulating your views.
Answer:
The Federal Reserve has been at times biased in favor of the financial industry, because they have often put inflation targeting above the need to reduce unemployment when executing monetary policy. Besides, the financial industry has often been rescued by massive loans from the Fed.
However, the Federal Reserve has also acted in favor of reducing unemployment, specially during recessions, by expanding the money supply through a policy known as quantitative easing.
In conclusion, we can say that the Fed tends to be biased in favor of the financial industry, but not at all times.
Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 13.6 percent and the standard deviation of those returns in this period was 43.86 percent. a. What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What about triple in value? (Do not round intermediate calculations and enter your answer as a percent rounded to 6 decimal places, e.g., .161616.)
Answer: a. 2.44%
b. 0.001070%
Explanation:
Given: The returns from an asset are normally distributed with
[tex]\mu=\text{ 13.6 percent and }\sigma=\text{43.86 percent.}[/tex]
Let x be the percentage value of return.
a. Double in value in a single year i.e. 100% return.
z-value = [tex]\dfrac{x-\mu}{\sigma}[/tex]
[tex]=\dfrac{100-13.6}{43.86}=1.97[/tex]
Required probability = Right-tailed probability for Z = 1.97
= 0.0244 [By p-value calculator]
= 2.44%
b. Triple in value in a single year i.e. 200% return.
z-value = [tex]\dfrac{x-\mu}{\sigma}[/tex]
[tex]=\dfrac{200-13.6}{43.86}=4.25[/tex]
Required probability = Right-tailed probability for Z =4.25
= 0.0000107 [By p-value calculator]
= 0.001070%
TB MC Qu. 6-62 Gayne Corporation's contribution margin ratio is ... Gayne Corporation's contribution margin ratio is 18% and its fixed monthly expenses are $51,000. If the company's sales for a month are $313,000, what is the best estimate of the company's net operating income
Answer:
$5,340
Explanation:
Gayne's corporation contribution margin ratio is 18%
= 18/100
= 0.18
The fixed monthly expenses is $51,000
The company sales for the month is $313,000
Therefore, the net operating income can be calculated as follows
= (Contribution margin ratio×sales)-fixed expenses
= (0.18× $313,000)- $51,000
= $56,340-$51,000
= $5,340
Hence the best estimate of the company's net operating income is $5,340
A PHLX Jan 80 Swiss Franc Call contract is quoted at 2 when the Swiss Franc closes at 77. The contract is:_______
Answer:
Out the money.
Explanation:
A PHLX Jan 80 Swiss Franc Call contract is quoted at 2 when the Swiss Franc closes at 77. The contract is out the money.
An out the money ultimately implies that an option only has an extrinsic value but no intrinsic value. The extrinsic value of an option refers to the difference between its intrinsic value and the market value (premium). An extrinsic value is affected by the volatility in the market and its time value. The intrinsic value of an asset refers to the calculated, true or real value of an asset and is solely affected by internal factors.
A call is out the money when the strike price is greater than or above the underlying price of an asset. This simply means that, it's market value (price) has fallen below its strike price.
In this scenario, the market price of the call is 77 while its strike price is 80; thus, the call option is out the money by 3.
"A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to:"
Answer: sell covered calls
Explanation:
A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to sell covered calls.
It should be noted that a covered call is a financial transaction that takes place when a call option is sold by an investor even though the investor still owns part of the security based on what's sold.
Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews’s product Ant currently has an awareness level of 78% . While an important product for Andrews, Ant’s promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Ant loses one-third of its awareness each year, what will Ant’s awareness level be next year?
Answer:
52%
Explanation:
Calculation for Ant’s awareness level be next year
First step
Based on the information given Ant current awareness level is 78% and we are told that Ant loses 1/3 of its awareness each year. Hence we are going to first calculate for Ant Starting awareness using this formula
Starting Awareness=Currently awareness level *(1-1/3 of awareness each year)
Starting Awareness=78%*2/3
Starting Awareness=52%
Second Step
Based on the information given we were told that the first one million dollars results in a 26% increase in awareness.This means that we are going to find the percentage of the awareness after promotion using this formula:
Awareness after promotion = Starting Awareness +increase in awareness
Awareness after promotion=52% + 26%
Awareness after promotion= 78%
The last step is to find the what Ant’s awareness level will be next year using this formula
Awareness level next year = Awareness after promotion * 2/3
Awareness level next year = 78%*2/3
Awareness level next year= 52%
Therefore Ant’s awareness level next year will be 52%
Roybus, Inc., a manufacturer of flash memory, just reported that its main production facility in Taiwan was destroyed in a fire. Although the plant was fully insured, the loss of production will decrease Roybus's free cash flow by $175 million at the end of this year and by $61 million at the end of next year. a. If Roybus has 37 million shares outstanding and a weighted average cost of capital of 12.6%, what change in Roybus's stock price would you expect upon this announcement? (Assume that the value of Roybus's debt is not affected by the event.) b. Would you expect to be able to sell Roybus stock on hearing this announcement and make a profit? Explain.
Answer:
a) the fire and all the events that are related to it should decrease Roybus's stock by $5.50
b) The market is pretty quick to adjust to bad news, specially when they are single isolated events. There is a minimum chance that you might be able to make some money by selling your stocks to someone that hasn't heard about the fire and its negative consequences (not a regular trader or outside the market), but it would be extremely rare for it to happen. When such extraordinary events happen, it is common for stocks to be traded after market hours, so when the market opens the next day, the price will already be adjusted.
Explanation:
the total decrease in Roybus's market value = ($175,000,000 / 1.126) + ($61,000,000 / 1.126²) = $155,417,407 + $48,111,960 = $203,529,367
the decrease will negatively affect stock price by -$203,529,367 / 37,000,000 stocks = -$5.50 per stock
Which of the following perspectives from the balanced scorecard approach helps managers answer the question, "How do we look to shareholders?
a. Learning and growth perspective
b. Internal business perspective
c. Customer perspective
d. Financial perspective
Answer:
d. Financial perspective
Explanation:
-Learning and growth perspective focuses on the measures that the company can take to improve its performance.
-Internal business perspective indicates if the internal performance is allowing to meet the customers' needs.
-Customer perspective shows if the company is focused on the customers and on delivering value to them.
-Financial perspective indicates if the company's strategy is providing benefits and value to the shareholders.
According to this, the answer is that the perspective from the balanced scorecard approach that helps managers answer the question, "How do we look to shareholders?" is the financial perspective because it indicates the shareholders if the company is getting the economic results that are expected.
The fixed cost of a production system is $20,000, and the variable cost per unit product is $17. The product has a revenue of $28 per unit. Calculate the breakeven quantity and determine the profit or loss amount when 1,500 units are produced. g
Answer:
Results are below.
Explanation:
Giving the following information:
Fixed costs= $20,000
Unitary variable cost= $17
Selling price= $28 per unit.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 20,000 / (28 - 17)
Break-even point in units= 1,818 units
Now, the profit for 1,500 units:
Loss= 1,500*11 - 20,000= -$3,500
Capitalism is an economic system in which private property, markets, and firms play an important role. Based on this definition, which of the following statements is correct?
A. An economic system is a way of organising the production and distribution of goods and services in an entire economy.
B. The knowledge you attain from the CORE program is a private property.
C. Forced labor where the workers receive some daily allowance is a market.
D. Employee owned cooperatives are not firms.
Answer:
Correct Answer:
A. An economic system is a way of organizing the production and distribution of goods and services in an entire economy.
Explanation:
Capitalism, which is an economic system in which a country's trade and industry are controlled by private owners for profit, rather than by the state helps in ensuring the adequate running of the country. It is a method whereby goods and services are organized in an entire economy through private investments and firms.
Companies whose stock is traded in a public market must report EPS in the notes of their financial statements. must report EPS on their income statement. must report EPS on their balance sheet. are not required to report EPS.
Answer:
The answer is B. must report EPS on their income statement
Explanation:
If a company's share is being traded publicly, its Earnings Per Share (EPS) must be shown on its income statement(Statement of profit or loss and other comprehensive income).
Earnings Per Share (EPS) is calculated as follows:
Earnings (profit after tax) ÷ total number of shares outstanding.
Note: EPS does not recognize/consider discontinue operations.
In answering the question "Which customers are most likely to click on my online ads and purchase my goods?" you are most likely to use which of the following analytic applications?A) customer profitabilityB) propensity to buyC) customer attritionD) channel optimization
Answer:
B) Propensity to buy.
Explanation:
In answering the question "Which customers are most likely to click on my online ads and purchase my goods?" you are most likely to use the propensity to buy.
Propensity to buy in marketing is a predictive model, which is used to measure or determine the chances of a customer being willing to buy a particular product.
In this scenario, to determine the likelihood of a customer clicking on an online advert and purchasing a seller's goods, after visiting a website or receiving promotional information about, it is ideal to use the propensity to buy analytic approach.
MNM Foods Inc. manufactures jellies that are made out of gelatin in various fruit flavors. However, its sales dipped significantly in the last quarter. Research reveals that a significant amount of health benefits can be associated with the consumption of jellies. MNM Foods incorporates new promotion strategies to project the newly discovered health benefits. This is an example of:
Answer:
Product improvement
Explanation:
Product improvement is the process by which changes in products that attracts new customers or adds benefits for existing customers.
Companies can either add new product features or improve on existing features.
In this instance MNM Foods Inc. jellies sales dipped significantly in the last quarter. To increase sales they incorporated new promotion strategies to project the newly discovered health benefits.
This is a product improvement strategy that highlights health benefits of jellies to consumers.
Consider the single factor APT. Portfolio A has a beta of 1.7 and an expected return of 19%. Portfolio B has a beta of .6 and an expected return of 15%. The risk-free rate of return is 11%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio __________ and a long position in portfolio _________. Multiple Choice A;A A;B B;B B;A
Answer: A;B
Explanation:
Consider the single factor APT. Portfolio A has a beta of 1.7 and an expected return of 19%. Portfolio B has a beta of .6 and an expected return of 15%. The risk-free rate of return is 11%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio A and a long position in portfolio B.
You should take a short position in the Portfolio with a lower risk premium and a long position on the Portfolio with a higher risk premium.
Using the single factor APT, the formula for risk premium can be derived from;
E(r) = Rf + beta (Risk premium on factor)
Portfolio A
19% = 11% + 1.7 * Risk premium
1.7 * risk premium = 8%
Risk Premium = 4.7%
Portfolio B
15% = 11% + 0.6 * RP
0.6 * RP = 4%
RP = 6.67%
Portfolio A Risk premium is lower so it should be shorted.
Portfolio B Risk premium is higher so it should taken a long position in.
Net sales$688,500 $450,000 Cost of goods sold 337,364 133,200 Determine the 2016 and 2017 trend percents for net sales using 2016 as the base year.
Answer:
Trend- % change in sales = 34.64%
Explanation:
Trend analysis entails determining the performance of a business over time by comparing its performance data from one period to another. The aim of trend analysis is to identify the behavior of a set of ratios over a period of time by comparing them across different years.
To determine the trend for a particular data, we use the formula below
% Change in variable =
(Current year figure - Previous year figure)/Previous year figure × 100
DATA
Current year figure for sales (2017) - 450,000
Previous year figure for sale (2016) - 688,500
% change in sales = (450,000 -688,500)/688,500 × 100 = 34.64%
% change in sales = 34.64%
This implies that the company made sales in 2017 which is 34.64% less than that made in 2016
Select the statement below that is true of long run aggregate supply curves.
a. There is no relationship between price level and RGDP.
b. Changes in price level affect output.
c. There is a variable quantity of RGDP.
Answer:
There is no relationship between price level and RGDp
Answer:
(A) There is no relationship between price level and RGDP
Tadpole Learning Systems Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $165,800 April 152,500 May 138,800 Depreciation, insurance, and property taxes represent $35,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in November. 59% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.Required:Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May.
Answer:
Tadpole Learning Systems Inc.
Schedule of Cash Payments for Selling and Administrative Expenses:
March April May
59% paid in the month $77,172 $69,325 $61,242
Balance in the following month $53,628 $48,175
Total $77,172 $122,953 $109,417
Explanation:
a) Data and Calculations:
March April May
Selling and admin. expenses $165,800 $152,500 $138,800
Depreciation, insurance, and
property taxes 35,000 35,000 35,000
Remainder $130,800 $117,500 $103,800
59% paid in the month $77,172 $69,325 $61,242
Balance in the following month $53,628 $48,175
Total $77,172 $122,953 $109,417
Jerry deposited $10,000 in a bank account, and 10 years later he closes out the account, which is worth $18,000. The annual rate of interest that Jerry has earned over the 10 years is closest to:
Answer:
r= 6.054% per yearExplanation:
given that
principal P= $10,000
final amount A= $18,000
time t= 10 years
To find the annual rate we will use the formula below and solve for r
[tex]r = [(\frac{A}{P} )^\frac{1}{t} - 1][/tex]
Substituting our data into the expression and solving for r we have
[tex]r = [(\frac{18000}{10000} )^\frac{1}{10} - 1]\\\\r = [(1.8 )^\frac{1}{10} - 1]\\\\r = [(1.8 )^0^.^1 - 1]\\\\r = [(1.8 )^0^.^1 - 1]\\r={1.06054-1}\\\\r= 0.06054[/tex]
Calculate rate of interest in percent
r = 0.06054* 100
r= 6.054% per year
Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $60 per share. If the firm's total market value is unchanged by the split, what will the stock price be following the split?a. $35.28b. $39.53c. $42.50d. $33.58e. $33.15
Answer:
$30
Explanation:
In a 2 for 1 split, for every 1 share owned, the shareholder receives 2 shares
share price after split = share price before split / 2 = $60 / 2 = $30
The ____________________ problem is the main source of market failure in the provision of nonexcludable public goods.
Answer: Free Rider
Explanation:
Non-excludable goods refers to public goods that are free to the public to use such goods and therefore there is no restriction to the consumption of non-excludable goods because every single individual has the right to access and consume it For example, Public parks, roads, and public infrastructures.
A non excludable good can overtime have a negative result in a community, because such good need to be constantly maintained so as to continue to be beneficial and therefore may require small token of fair share among its consumers but there would always be some individuals who are referred to as Free Riders who would rather use the good without paying for it and in the long run cause the good to not be adequate for all or difficult to be maintained at its best resulting to failure in the provision of the non excludable public goods.
the free rider problem can be solved by
1. Government's intervention to subsidize the public good through fair distribution of tax, using the pay as you earn method .
2. Overused non excludable good can be privatized, ensuring that people who consume it, contribute to ts maintenance.
An unfinished desk is produced for $36.00 and sold for $65.00. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $5.95. What is the differential revenue if you process further
Answer:
Differential revenue from further processing = $4.05
Explanation:
A business should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .i.e $36 irrelevant to the decision to process further
The differential revenue if the desk is processed further would be the difference between the additional revenue from further process and the further processing cost.
$
Sales price after the split-off point 75
Sales price at the split-off point 65
Additional sales revenue 10
Further processing cost (5.95)
Differential revenue from further processing 4.05
Differential revenue from further processing = $4.05