Answer:
The maximum that should be paid for the stock today is $67.22
Explanation:
To calculate the price of the stock today, we will use the discounted cash flow or the DDM approach. The approach bases the value of the stock on the present value of the expected future cash flows from the stock. The cash flows in terms of stock are the dividend payments made by the stock. The formula to calculate the price or present value today under this approach is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n
Where,
D1,D2,... are the dividends expected from the stock in year 1, year 2 and so on.r is the required rate of returnP0 = (2+6) / (1+0.12) + (2+6+6) / (1+0.12)^2 + (2+6+6+6) / (1+0.12)^3 +
(2+6+6+6+6) / (1+0.12)^4 + (2+6+6+6+6+6) / (1+0.12)^5
P0 = $67.22
Job Searching in the Digital Age(Part II) Which of the following are job boards?
A. Open Post
B. College Grad
C. Big Careers
Users of ________ are increasingly using the sites to prospect for jobs.
Which of the following is an advantage to using networks and referral in the hidden job market?
A. Between 50 and 80 percent of all jobs are found there
B. Since there are fewer jobs in the hidden job market, a more targeted search can be conducted
C. It includes all jobs posted on job boards
Which of the following is an example of a way to search for jobs on the open job market?
A. Newspapers
B. Social networks
C. Personal networking
D. Referrals
E. Job boards
Which of the following will help protect you when posting to online job boards?
A. Include references
B. Only use sites where you publicly post
C. Only use sites where you pay to post
D. Remove your posted résumés when your job search is over
Answer and Explanation:
1. B. College Grad: college grad is a job board used by millions for their job search. Other popular job boards include: Monster, Indeed and career builder
2. Social networking:social networking sites are increasingly used today in job search. A popular example is LinkedIn which is used for professional connections and networking.
3. B. Since there are fewer jobs in the hidden job market, a more targeted search can be conducted : the hidden job market consisting of personal networking and referrals has fewer jobs but is very effective in selecting the right people for a job
4.A. Newspapers E. Job boards: open job markets consist Jon's listed publicly in newspapers, Jon boards and websites for all qualified candidates to apply. It is different from the hidden job market which is usually referral based such as in personal network and social network, former colleagues or former schoolmates and alumni groups.
5. D. Remove your posted résumés when your job search is over: use reputable sites in your job search and don't post private data. Don't jump on every job post. Endeavor to remove your resume from the site when your search is over
"In the long-run, monopolistically competitive firms: have excess capacity. produce at the minimum of average total cost. charge prices equal to marginal cost. both B and C are true."
Answer:
The correct answer is the option D: Both B and C are true.
Explanation:
To begin with, a monopolistically competitive firms is the one that produces in a market in where the other companies sell a pretty similar but different product and there are a lot of buyers so the most important way to difference themself is by the publicity or the identification of the brand in the mind of the consumers. Moreover, in this type of market in the long-run equilibrium the price if equal to the marginal cost and also to the minimun of the average total cost so therefore that it is said that there are zero economic profit
A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 89000 units on hand, the sales department budgeted sales of 390000 units in June, and the company desires to have 200000 units on hand on June 30. The budgeted cost of goods sold for June would be
Answer:
COGS= $8,370,000
Explanation:
Giving the following information:
Unitary cost= $30
Beginning inventory= 89,000
Sales= 390,000
Ending inventory= 200,000
First, we need to calculate the number of units sold:
Units sold= 89,000 + 390,000 - 200,000
Units sold= 279,000
Now, the cost of goods sold:
COGS= 279,000*30= $8,370,000
Fremont Enterprises has an expected return of and Laurelhurst News has an expected return of . If you put of your portfolio in Laurelhurst and in Fremont, what is the expected return of your portfolio?
The question is incomplete as it is missing the figures. The complete question is,
Fremont Enterprises has an expected return of 15% and Laurelhurst News has an expected return of 20%. If you put 70% of your portfolio in Laurelhurst and 30% in Fremont, what is the expected return of your portfolio?
Answer:
Portfolio return = 0.185 or 18.5%
Explanation:
The expected return of a portfolio is a function of the weighted average of the individual stocks returns' that form up the portfolio. The expected return of a portfolio can be calculated using the following formula,
Portfolio return = wA * rA + wB * rB + ... + wN * rN
Where,
w represents weight of each stock in the portfolior represents the return of each stock in the portfolioPortfolio return = 0.3 * 0.15 + 0.7 * 0.2
Portfolio return = 0.185 or 18.5%
Jamal lost his job as a shipbuilder. His plant closed down "temporarily" but never reopened and will not. Jamal's skills are very specialized and no longer in demand. His unemployment is best classified as .
Answer:
Structural unemployment
Explanation:
Since Jamal's specialized skills are no longer in demand, this is a clear example of structural unemployment.
Structural unemployment is a situation that exists when the skills one can offer and the available jobs are not matched. It is caused by changes in technology thereby causing the skills that one possesses to be old fashioned. Jamal would have to learn new skills that are in demand to be employable.
The Department of Homeland Security has asked the Internal Revenue Service for the tax retums of U.S. citizens who have been identified as having ties to terrorist organizations. The IRS has declined to turn over the tax retums. Which of the following rights relating to the individuals and the authority of the two agencies is correct?
a. The IRS must festseek permission from the individuals.
b. The Department of Homeland Security cannot obtain this information, as they may be used only for investigating tax fraud.
c. The Department of Homeland Security must submit a freedom of Information act request.
d. The Department of Homeland Security can obtain the information because it is engaged in law enforcement activity
Answer: The Department of Homeland Security can obtain the information because it is engaged in law enforcement activity
Explanation:
With regards to the question above, it should be noted that exchanging information is not allowed only in cases whereby the Department if Homeland Security needs it for law enforcement activities.
Therefore, option D i.e. The Department of Homeland Security can obtain the information because it is engaged in law enforcement activity is correct.
Which of the following types of decisions involves deciding whether to perform a particular activity in-house or purchase it from an outside supplier?
A. Special-order
B. Make-or-buy
C. Continue or discontinue
D. Sell-or-process further
Answer: Make-or-buy
Explanation:
The decision that involves deciding whether to perform a particular activity in-house or purchase it from an outside supplier is regarded to as the Make-or-buy.
A company can decide to purchase a particular activity when it sees that it's cheaper or when the company wants to focus on other aspects of production.
You are the manager of an apartment complex with 50 units. When you set rent at $800/month, all apartments are rented. As you increase rent by $25/month, one fewer apartment is rented. Maintenance costs run $50/month for each occupied unit. What is the rent (in dollars) that maximizes the total amount of profit
Answer:
The rent (in dollars) that maximizes the total amount of profit is $1,050.
Explanation:
Note: See the attached excel file for the Calculation of the Rent (in dollars) That Maximizes the Total Amount of Profit.
The rent (in dollars) that maximizes the total amount of profit is the rent per unit that has the highest profit.
From the attached excel file, the highest profit is $40,000 (in bold red color) and this occurs when the rent per unit is $1,050 (in bold red color).
Therefore, the rent (in dollars) that maximizes the total amount of profit is $1,050.
During August, Boxer Company sells $348,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $11,000 before adjustment. Customers returned merchandise for warranty repairs during the month that used $7,600 in parts for repairs. The entry to record the estimated warranty expense for the month is:
Answer:
Dr Estimated Warranty Liability $8,600
Cr Spare Parts Inventory $8,600
Explanation:
The estimated warranty claim is worth $7,600 which means that the warranty claim must be debited by this amount as it was previously forecasted to be at $11,000 and in this month, the claim was worth $7,600. So decrease in warranty liability is necessary. Furthermore, the Spare Parts Inventory would be credited as the Spare parts would be used to fix the inventory which must be of $7,600 in value.
The double entry to record Warranty Repairs would be as under:
Dr Estimated Warranty Liability $8,600
Cr Spare Parts Inventory $8,600
PureFruit Inc. prices its products higher than most of its competing brands in the packaged fruit juice industry. However, it still enjoys higher returns than its competitors because it is the only brand that can rightfully claim the use of fresh fruits and no added sugar. What kind of organizational strategy based on competitive advantage does PureFruit most likely use?
Answer:
Strategy based on differentiation
Explanation:
Please find the options to this question in the attached image
In pursing a competitive advantage by differentiation, the firm strives to make its product different from that of its competition.
The differences between the product and that of competitors are identified and communicated to consumers so they find the product more attractive.
PureFruit Inc. products are different from that of its competitors because it uses fresh fruits and no added sugar
Jiminy’s Cricket Farm issued a bond with 30 years to maturity and a semiannual coupon rate of 4 percent 2 years ago. The bond currently sells for 107 percent of its face value. The company’s tax rate is 21 percent. The book value of the debt issue is $60 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 10 years left to maturity; the book value of this issue is $35 million, and the bonds sell for 76 percent of par.
Required:
a. What is the company’s total book value of debt?
b. What is the company’s total market value of debt?
c. What is your best estimate of the aftertax cost of debt?
Answer:
a. What is the company’s total book value of debt?
total book value of debt = $60,000,000 + $35,000,000 = $95,000,000
b. What is the company’s total market value of debt?
total market value of debt = ($60,000,000 x 1.07) + ($35,000,000 x 0.76) = $64,200,000 + $26,600,000 = $90,800,000
c. What is your best estimate of the after tax cost of debt?
weight of debt (using market value):
$64,200,000 / $90,800,000 = 70.7%
$26,600,000 / $90,800,000 = 29.3%
YTM bond I = {1,200,000 + [(60,000,000 - 64,200,000)/56]} / [(60,000,000 + 64,200,000)/2] = 1,125,000 / 62,100,000 = 1.8115 x 2 = 3.62%
YTM bond II = (35 / 26.6)¹/¹⁰ - 1 = 2.78%
after tax cost of debt = (0.707 x 3.62% x 0.79) + (0.293 x 2.78% x 0.79) = 2.02% + 0.64% = 2.66%
Businesses should test data storage procedures periodically to ensure that backed up data is correct and complete, and that the storage media or cloud-based storage service works properly.
A) True
B) False
Answer:
True
Explanation:
Data security is very important for a business. The business generates, Collects and processes the available data, which incur huge expenses. To protect this data management should place some internal control within the organization. Backing up the data is also a control to protect the organization's data.
The test of storage procedure should be in place in order to strength of internal control. So, it is true to test data storage procedures periodically to ensure that backed up data is correct and complete, and that the storage media or cloud-based storage service works properly.
Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.5 pounds $ 7.00 per pound $ 45.50 Direct labor 0.6 hours $ 24.00 per hour $ 14.40 Variable overhead 0.6 hours $ 4.00 per hour $ 2.40 In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for June is:
Answer:
Direct labor time (efficiency) variance= $4,560 unfavorable
Explanation:
Giving the following information:
Standard= Direct labor 0.6 hours $ 24.00 per hour $ 14.40
Actual production= 3,500 units.
2,290 direct labor-hours were used.
To calculate the direct labor efficiency variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 3,500*0.6= 2,100
Direct labor time (efficiency) variance= (2,100 - 2,290)*24
Direct labor time (efficiency) variance= $4,560 unfavorable
The labor efficiency variance is $4,560 unfavorable.
Calculation of the labor efficiency variance:The following formula should be used for determining the same.
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Here,
Standard quantity= 3,500*0.6= 2,100
So,
Direct labor time (efficiency) variance= (2,100 - 2,290)*24
= $4,560 unfavorable
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Claudia is hired as a Senior Engineer by Hexagon Inc. Allen, the HR Manager of the company, promises her that she will start working on live projects within three months from joining. He also tells her that she is expected to give three months' notice before quitting the job. Which of the following statements is true of the given scenario?
a. Claudia is an at-will employee.
b. Allen has violated an employment law by making a promise.
c. Claudia has an implied contract with the company.
d. Hexagon Inc. cannot be challenged in a court even when it fails to follow up on its promises.
Answer:
d. Hexagon Inc. cannot be challenged in a court even when it fails to follow up on its promises.
Information concerning the unexpected resignation of one or more of the registrant's directors would be disclosed on which of the following forms?
I. Form 8-Q
II. Form 8-K
I. Both I and II
II. Neither I nor II
Answer: Form 8-K
Explanation:
An 8-K is a report the corporate changes that happens at an organization. The information given in form 8-K is important to the shareholders of the organization and also to the Securities and Exchange Commission.
Events such as bankruptcy, acquisitions, resignation of directors can all be seen in the report.
_________________ agreements are one way to achieve the goal of swapping skills and technologies that each company in a strategic alliance covets, and ensuring a chance for equitable gain.
A. Join venture
B. Sharing
C. Cross-licensing
D. Learning
E. Contractual
Answer:
it should be C. cross-licensing
The health care workforce during the current market-driven changes is experiencing: A. Significant expansion at professional levels B. Experimentation and variation in staffing C. Continued stability in numbers and staffing patterns D. Substantial reductions
Answer:
A. Significant expansion at professional level.
Explanation:
The hospitals provide health care facilities to the public. It is crucial place where one mistake by a doctor or other staff could lead to death of a patient. The patients coming in he hospital need to be treated carefully and timely. The professional and experience will have the skills and expertise to treat the patient carefully and diagnose the problem quickly. There are increased number of professional today than in the previous years. The education has now become more common and people understand the importance of gaining technical education before practical experiments.
Ace Cleaning Service is considering expanding into one or more new market areas. Which costs are relevant to Ace's decision on whether to expand?
Answer:
variable and opportunity costs
Explanation:
In simple words, whenever an organisation is planning to expand into new market they should taken into account only those costs which will increase or decrease due to such operations success or failures, therefore, sunk costs would be irrelevant.
Variable cost refers to the cost that increase or decrease with level of operations while opportunity costs relates to the cost profits foregone due to choosing best alternative over second best alternative.
What happens to consumption and investment spending when the Federal Reserve decreases the money supply
Answer: Consumption and investment spending decrease or falls.
Explanation:
When the Federal Reserve decreases the money supply, this will lead to a fall in the consumption and investment spending. This is a contractionary policy by the government which is typically used to curb inflation.
Since there's reduction in money supply, there'll be less money in circulation and hence, decrease in consumption and investment expenditure.
Donna, age 42 and a single taxpayer, has a salary of $104,500 and interest income of $20,000. What is the maximum amount Donna can contribute to a Roth IRA
Answer:
$5,800
Explanation:
Using 2020 limits:
Donna's AGI = $124,500 (interest income is taxed as ordinary income)
since Donna's is $500 higher than the income threshold for single taxpayers ($124,000), then her contribution to a Roth IRA is reduced by $200.
If Donna's AGI was less than $124,000, she could have contributed up to $6,000 (which is the maximum contribution allowed). Her contribution limit starts to reduce by $200 for every $500 or fraction in excess of the income threshold limit. The contribution limit phases out completely when the AGI is $139,000.
E.g. If Donna's AGI was $125,000, her contribution limit = $5,600
Draiman Guitars is offering 110,000 shares of stock in an IPO by a general cash offer. The offer price is $39 per share and the underwriter's spread is 8 percent. The administrative costs are $350,000. What are the net proceeds to the company?
Answer:
$3,596,800
Explanation:
The computation of net proceeds to the company is shown below:-
Net proceeds = Number of shares of stock × Offer price × (1 - Underwriter spread percent) - Administrative cost
= 110,000 × $39 × (1- 0.08) - $350,000
= 110,000 × $39 × 0.92 - $350,000
= $3,946,800 - $350,000
= $3,596,800
So, for determining the net proceeds we simply applied the above formula.
You are the manager of Black Spot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses’ perspectives, the two products are indistinguishable. The large investment required to build production facilities prohibits other firms from entering this market, and existing firms operate under the assumption that the rival will hold output constant. The inverse market demand for computers is P = 5,900 − Q, and both firms produce at a marginal cost of $800 per computer. Currently, BlackSpot earns revenues of $4.25 million and profits (net of investment, R&D, and other fixed costs) of $890,000. The engineering department at Black Spot has been steadily working on developing an assembly method that would dramatically reduce the marginal cost of producing these high-powered computers and has found a process that allows it to manufacture each computer at a marginal cost of $500. How will this technological advance impact your production and pricing plans? How will it impact Black Spot’s bottom
Union Local School District has bonds outstanding with a coupon rate of 4.5 percent paid semiannually and 20 years to maturity. The yield to maturity on these bonds is 3.8 percent and the bonds have a par value of $10,000. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$10,974.45
Explanation:
coupon rate 4.5%, semiannual = 2.25%
20 years until maturity = 40 periods
market rate 3.8%, semiannual = 1.9%
par value $10,000
market price of the bonds = PV of par value + PV of coupon payments
PV of par value = $10,000 / (1 + 1.9%)⁴⁰ = $4,710.13
PV of coupon payments = $225 x 27.84144 (PV annuity factor, 1.9%, 40 periods) = $6,264.32
market value = $4,710.13 + $6,264.32 = $10,974.45
Answer:
The dollar price of the bond is $10,974.45.
Explanation:
The dollar price of the bond, PV, can be determined as follows :
N = 20 × 2 = 40
PMT = ($10,000 × 4.5%) ÷ 2 = $225
P/YR = 2
YTM = 3.80 %
FV = $10,000
PV = ?
Using a Financial Calculator, the dollar price of the bond, PV is $10,974.45.
Brandt Enterprises is considering a new project that has a cost of $1,000,000, and the CFO set up the following simple decision tree to show its three most likely scenarios. The firm could arrange with its work force and suppliers to cease operations at the end of Year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. How much is the option to abandon worth to the firm?
Answer:
$61.03
Explanation:
The decision tree is a flow like chart which enables to identify the best decision based on the possible probabilities of multiple events. The technique of decision tree is used when there are various options. Every decision is placed on the node of the leaf. These nodes are assigned a probability which makes it easy for the managers to take decision.
In the given scenario the CFO of Brandt Enterprises has created a decision tree as with probabilities 20% of $800, 60% of $520 and 20% of $200 in the year . The NPV estimate is $46.57 for all the probabilities. The firm will have to incur $61.03 to abandon at year 1 .
In markets where the government imposes an excise tax on unit sales, it also has a tendency to dabble with restrictions on advertising (for example, cigarettes and hard liquor). Do potential (or actual) restrictions on advertising in these markets serve the interest of a government that is interested in maximizing its tax revenue from the sale of these products? Explain your answer
Answer:
I am sorry I don't know sorry again
You are the production head and you decide to introduce a new product in your production line. Market survey reveals that price of identical products in market is Rs. 40/unit and you decide to adopt that price. Cost survey shows that firm has to invest Rs. 620 as fixed cost to introduce the new product and variable cost are as follows; Output VC 0 00 100 280 200 480 300 640 400 820 500 1040 600 1300 700 1620 800 2020 900 2620 1000 3420
Answer:
the following table shows the profits generated by each output quantity, assuming selling price is Rs40. Since marginal costs of production are lower than selling price, the more you sell, the higher your profit. Profit is maximized at 1,000 units = Rs35,960
Explanation:
output variable costs fixed costs total revenue profits
0 00 620 0 (620)
100 280 620 4,000 3,100
200 480 620 8,000 6,900
300 640 620 12,000 10,740
400 820 620 16,000 14,560
500 1,040 620 20,000 18,340
600 1,300 620 24,000 22,080
700 1,620 620 28,000 25,760
800 2,020 620 32,000 29,360
900 2,620 620 36,000 32,760
1000 3,420 620 40,000 35,960
Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of fixed costs for 20,000 units would be:
Answer:
Budgeted amount of fixed cost for 20,000 units = $30,000
Explanation:
For 22,000 units, Budgeted fixed cost was $30,000
Thus, since fixed cost do not change in totality under ordinary circumstances, the same amount of fixed cost would be budgeted for 20,000 units as well
Based on the information given, the budgeted amount of fixed costs for 20,000 units would be $30,000.
What is a budget?A budget simply means a financial plan that is used by an individual, business organization or government to estimate the amount of revenue and expenditures over a specified period of time, and it is usually on an annual basis i.e one year.
In this scenario, the budgeted amount of fixed costs for 20,000 units would be equal to $30,000 because fixed cost remains the same and doesn't change under ordinary circumstances.
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A project requires an initial investment of $10 million today. If the cost of capital exceeds the project IRR, then the project must have a(n):
Answer:
Negative NPV.
Explanation:
present value of cost exceeds present value of revenue that is been assumed in the investment plan of the said company/firm.
Net Present Value describes one of the discounted techniques of cash flow used in capital budget to determining the viability of a project or an investment. It is seen to have a huge difference between the present flow of the firms; which is cash inflows and the present value of cash outflows over a period of time. Experts has tagged its primary advantage to be that it is seen to considers the concept of the time value of money.
If the Fed increases ior enough, such that it will raise the intersection point with the vertical portion of reservesupply, then the equilibrium fed funds rate will:_________
Answer: Increase
Explanation:
Based on the above scenario given in the question whereby when the Fed increases ior enough, such that it will raise the intersection point with the vertical portion of reservesupply, then the equilibrium fed funds rate will increase.
There'll be a rise in the equilibrium fed funds since the intersection point has been raised.
Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,040. The freight and installation costs for the equipment are $610. If purchased, annual repairs and maintenance are estimated to be $420 per year over the four-year useful life of the equipment. Alternatively, Sloan can lease the equipment from a domestic supplier for $1,460 per year for four years, with no additional costs. Prepare a differential analysis dated December 3, to determine whether Sloan should lease (Alternative 1) or purchase (Alternative 2) the machine. (Hint: This is a "lease or buy" decision, which must be analyzed from the perspective of the machine user, as opposed to the machine owner.) If an amount is zero, enter "0". Use a minus sign to indicate a loss.
Answer:
Sloan Corporation
Differential Analysis:
Cost of Alternative 1 (Lease) - $1,460.00
Cost of Alternative 2 (Buy) = $1,332.50
Choose Alternative 2, purchase the equipment, and there will be a cost saving of $127.50 per year.
Explanation:
Buy Decision:
Cost of purchase = $3,040
Freight-in 610
Total cost $3,650
Annual equipment cost = $912.50
Annual Repair cost = 420.00
Total annual cost to buy = $1,332.50
Cost of Lease per year = $1,460
Sloan Corporation's differential analysis of the lease or buy decision shows that it would be more profitable to purchase the equipment than to lease. With a purchase decision, the cost savings will be $127.50 per year. By undertaking this differential analysis, Sloan Corporation is able to determine the alternative that will serve its best interest, especially in terms of cost.