Answer:
b. $ 952,500
Explanation:
The computation of the amount of the net income for earning to meet out the requirement is shown below:
Dividend = Net income - Target Equity ratio × Total capital budget
$400,000 = Net income - 0.65 × $850,000
$400,000 = Net income - $552,500
So, the net income is
= $400,000 + $552,500
= $952,500
Hence the Net income is $952,500
Therefore the correct option is b. $952,500
Shelton, Inc., has sales of $18 million, total assets of $16.5 million, and total debt of $9.4 million. Assume the profit margin is 8 percent.Required:a. What is the company's net income?b. What is the company's ROA?c. What is the company's ROE?
Answer:
a.
Net Income = $1,440,000 or $1.44 million
b.
ROA = 0.0873 or 8.73%
c.
ROE = 0.2028 or 20.28%
Explanation:
a.
The net income of the company can be calculated by multiplying the profit margin by the value of total sales.
Net Income = 18,000,000 * 0.08
Net Income = $1,440,000 or $1.44 million
b.
The return of assets or ROA is the value of Net Income expressed as a percentage of Total Assets. Thus, the formula for ROA is,
ROA = Net Income / Total Assets
ROA = 1.44 / 16.5
ROA = 0.08727272 rounded off to 0.0873 or 8.73%
c.
The ROE or return on equity is the profit or net income expressed as a percentage of total equity.
ROE = Net Income / Shareholders' Equity
First we need to calculate the value of total equity using the basic accounting equation.
Total Assets = Total Liabilities + Total Equity
16.5 = 9.4 + Total Equity
16.5 - 9.4 = Total Equity
Total Equity = $7.1 million
ROE = 1.44 / 7.1
ROE = 0.20281 or 20.281% rounded off to 0.2028 or 20.28%
If fixed costs are $750,000 and variable costs are 60% of sales, what is the break-even point in sales dollars?
Answer:
$1,875,000
Explanation:
Break even point in sales = Fixed cost / Contribution margin ratio
When Contribution margin ratio = 100% - Variable cost ratio
Contribution margin ratio = 100% - 60%
Contribution margin ratio = 40%
Break even point in sales = $750,000 / 40%
= $1,875,000
In the 1970’s the Ford Motor Company sold its subcompact Pinto model with known design defects. In particular, the gas tank’s design and location led to rupture, leaks and explosion in low-speed, rear-impact collisions. Fifty-nine people burned to death in Pinto accidents. Ford had conducted a cost-benefit analysis weighing the cost of fixing the defects ($11 per vehicle) versus their potential liability for law- suits on behalf of accident victims, where Ford placed the value of a human life at $200,000. Ford eventually recalled 1.4 million Pintos to fix the gas tank problem at a total cost of $30 to $40 million. In addition the company ultimately paid out millions more in liability settlements and incurred substantial damage to its reputation.
A) Critique Ford’s actions from the perspective of the NSPE Code of Ethics.
B) One well-known ethical theory, utilitarianism, suggests that an act is ethically justified if it results in the "greatest good for the greatest number" when all relevant stakeholders are considered. Did Ford’s cost-benefit analysis validly apply this theory?
C) What should engineers do when the product they are designing has a known safety defect with an inexpensive remedy?
Answer and Explanation:
1. The national society of professional engineers code of ethics was violated by Ford motors by selling the pinto model which they already knew had manufacturing defects. The cars had issues that were mostly due to fuel tank fires. The pinto was recalled and the cars were being modified to reduce fire hazards.
As part of the nhse code of conduct, engineers must give impartial, honest and equitable service to the public while also ensuring their safety.
2. When we relate Ford's action with the act of utilitarianism, then the cost benefits analysis of Ford did not take cognizance of the effects that their decisions would have. The utilitarian approach would evaluate each action differently and whatever decisions that might follow from it. Ford did not take account of many factors in their cost benefits analysis. The loss from not replacing the fuel tank was more than the benefits as lots of more would have also been spent settling people out of court.
3. Engineers should take decisions that involves the safety of the public for whom they are designing the product. They should try to correct the design defects first without considering how expensive or inexpensive it is based on ethics.
Anything called money will be
A. large and heavy
B. easy to create
C. scarce
D. backed by gold
The answer is: D. Backed by gold.
In a Sweezy Oligopoly, a decrease in a firm's marginal cost generally leads to:_______.A) reduced output and a higher price.B) increased output and a lower price.C) higher output and a higher price.D) none of the statements associated with this question are true.
Answer:
D) none of the statements associated with this question are true.
Explanation: Sweezy oligopoly which is also described as a kicked demand model helps to show how prices can be stable without any form of secret agreement between the small number of large Organisations which dorminates in an olygopolistic market.
An olygopolistic market is a market that is filled with a small number of large scale business Organisations.
Which statement correctly describes the following ratio? Current assets / Current liabilities: Current assets divided by current liabilities
Answer:
The statement that correctly describe the following ratio is the current ratio
Explanation:
Current ratio is defined as current assets over Current liabilities. It is a comparison of current assets to current liabilities. Normally, the potential creditor will use current ratio to measure a company's liquidity or ability to pay off liabilities. Every healthy company must maintain a 2:1 current ratio.
You are given the following information on Parrothead Enterprises: Debt: 9,200 6.4 percent coupon bonds outstanding, with 23 years to maturity and a quoted price of 104.5. These bonds pay interest semi-annually and have a par value of $1,000. Common stock: 235,000 shares of common stock selling for $64.70 per share. The stock has a beta of .92 and will pay a dividend of $2.90 next year. The dividend is expected to grow by 5.2 percent per year indefinitely. Preferred stock: 8,200 shares of 4.6 percent preferred stock selling at $94.20 per share. The par value is $100 per share. Market: 11.8 percent expected return, risk-free rate of 3.7 percent, and a 22 percent tax rate. Calculate the company's WACC.
Answer:
8.57%
Explanation:
value of debt = $1,000 x 9,200 x 1.045 = $9,614,000
YTM = {32 + [($1,000 - $1,045)/46]} / [($1,000 + $1,045)/2] = 31.02/ 1,022.50 = 3.034% x 2 = 6.07%
value of common stock = 235,000 x $64.70 = $15,204,500
Re = 3.7% + 0.92(11.8% - 3.7%) = 11.15%
value of preferred stocks = 8,200 x $94.20 = $772,440
cost of preferred stocks = 4.6 / 94.2 = 5.46%
total value = $25,590,940
common stocks = 0.594
debt = 0.376
preferred stocks = 0.03
WACC = (0.594 x 11.15%) + (0.03 x 5.46%) + (0.376 x 6.07% x 0.78) = 6.6231% + 0.1638% + 1.78% = 8.57%
The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one prod-uct. Beginning inventory of 20,000 units consisted of the following, listed in chronological order of acquisition:
12,000 units at a cost of $8.00 per unit = $96,000
8,000 units at a cost of $9.00 per unit = 72,000
During 2016, inventory quantity declined by 10,000 units. All units purchased during 2016 cost $12.00 per unit.
Required: Calculate the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note, assum-ing the amount determined is material.
Answer:
$32,000
Explanation:
Calculation to determine the before-tax LIFO liquidation profit or loss that the company would report
Before-tax LIFO liquidation profit =8,000 Units × ($12.00 per unit – $9.00 per unit) + (12,000 units-10,000units)× ($12.00 per unit – $8 per unit)
Before-tax LIFO liquidation profit =(8,000 units× $3 per unit)+(2,000 units ×$4 per unit)
Before-tax LIFO liquidation profit =$24,000+$8,000
Before-tax LIFO liquidation profit =$32,000
Therefore the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note will be $32,000
HR managers must comply with laws when hiring, promoting, compensating, and firing employees. These laws include
Complete Question:
HR managers must comply with laws when hiring, promoting, compensating, and firing employees. These laws include:
Group of answer choices
A. Breach of Warranty of Habitability.
B. Free and Appropriate Public Education Act.
C. Americans with Disabilities Act.
Answer:
C. Americans with Disabilities Act.
Explanation:
Human resources (HR) managers must comply with laws when hiring, promoting, compensating, and firing employees. These laws include Americans with Disabilities Act.
The Americans with Disabilities Act is an employment and civil rights law passed by the U.S Congress and signed into law by President George H. W. Bush on the 26th of July, 1990.
The main purpose of the Americans with Disabilities Act is to prohibit the discrimination and stigmatization of people having any form of disability in several fields such as employment, public accommodations, communications, transportation and access to all national programs and services across the United States of America.
With respect to employment and human resources (HR) managers, it protects the rights of job seekers and employees working in an organization.
Which of the following statements summarizes why the window of vulnerability is shrinking? People are getting better at enduring and recovering from exploits. There are also fewer people with the skills needed to create vulnerabilities. More people are interested in information security, and have developed the skills to find new vulnerabilities. People are not inclined to attack vulnerability for financial gain.
Answer:
More people are interested in information security, and have developed the skills to find new vulnerabilities.
Explanation:
In the past, few people are interested in information security due to the fact that, it was a new field that was not exploited then. This create an ample opportunity for the windows vulnerability for hackers. Currently, due to increasing interest in information technology, the vulnerability of windows are shrinking.
A real estate developer is offering identical houses for sale for $350,000 each, and has 20 willing customers. The developer is considering lowering the price to $300,000, since at that price there would be an additional 3 customers willing to purchase houses. What would be the developer’s change in revenue from lowering the price in this way?
Answer: $100,000 less
Explanation:
Since we are informed from the question that the real estate developer is offering identical houses for sale for $350,000 each, and has 20 willing customers, this means that current revenue will be:
= $350,000 × 20
= $7,000,000
By lowering the price, the revenue made will be:
= $300,000 × 23
= $6,900,000
The difference is
$7,000,000 - $6,900,000
= $100,000 less.
Peter's Audio has a yield to maturity on its debt of 7.8 percent, a cost of equity of 12.4 percent, and a cost of preferred stock of 8 percent. The firm has 105,000 shares of common stock outstanding at a market price of $22 a share. There are 25,000 shares of preferred stock outstanding at a market price of $45 a share. The bond issue has a total face value of $1.5 million and sells at 98 percent of face value. If the tax rate is 34 percent, what is the weighted average cost of capital?
Answer:
WACC = 9.22%
Explanation:
after tax cost of debt = 7.8% x (1 - 34%) = 5.148%
Re = 12.4%
cost of preferred stock = 8%
total value:
105,000 common stocks x $22 = $2,310,000
25,000 preferred stocks x $45 = $1,125,00
$1,500,000 bonds x 0.98 = $1,470,000
total value = $4,905,000
capital structure:
common stocks = $2,310 / $4,905 = 47.09%
preferred stocks = $1,125,00 / $4,905 = 22.94%
debt = $1,470,00 / $4,905 = 29.97%
WACC = (47.09% x 0.124) + (22.94% x 0.08) + (29.97% x 0.05148) = 9.22%
Which of the following actions will help ease agency conflicts and better align managers’ objectives with the firm’s shareholder wealth?a. Pay the manager a large base salary with a huge stock option package that matures on a single date. b. Pay the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth. In addition to well-designed executive compensation packages, other motivational forces can align the interests of managers with those of their shareholders. Which of the following actions could be used to reduce the potential for these agency conflicts and ensure that the firm's managers will pursue the long-term wealth interests of their shareholders? a. Let the manager know that he or she will be fired if the company's stock does not reach a certain target by the end of the year. b. Let the manager know that a takeover is possible if he or she doesn't perform well.
Answer:
1. b. Pay the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth
2. b. Let the manager know that a takeover is possible if he or she doesn't perform well.
Explanation:
Agency problems arise when the managers who are meant to be maximising shareholder wealth instead begin to act in their own interests to increase their own wealth.
To avoid this, the company should make the manager a shareholder as well so that in maximising shareholder wealth, the manager will be maximising their own wealth as well. When making them shareholders however, it is imperative that the stock is phased over several years so that the manager will keep increasing shareholder wealth.
Another way to ensure that a manager will try their best for the shareholders is to remind them that failure might lead to a takeover from another company. In takeovers, the managers of the ill performing firm are usually retrenched with the logic being that they were the ones that got the company into ruin so they should not be given the chance to do so again.
The standard deviations of individual stocks are generally higher than the standard deviation of the market portfolio because the market portfolio: Multiple Choice has specific risk. offers lower returns. has less systematic risk. diversifies risk.
Answer: Diversifies risk
Explanation:
The main purpose of having a portfolio is to be able to diversify risk so that a total loss is not made if things do not go well. As such, well diversified portfolios are able to reduce their unsystematic risk.
Individual stock on the other hand, cannot be diversified and so have unsystematic risk which makes their standard deviations(risk) higher.
Do these ratio values and ratios look strong, weak or in between?
Answer:
Ratio values cannot be judged in isolation. For example, the Phone Corporation's ratios calculated previously have no industry benchmarks against which they can be compared. The ratios for competitor can also be used for comparison. Again, the ratios were calculated for only one period in each case. There should be a trend analysis and computation of ratios over some years in order to assess their strengths and weaknesses.
Overall, they do not look strong. But, one should not be too quick to conclude on this issue.
Explanation:
Ratio analysis is a technical method of gaining insight into a company's liquidity, operational efficiency, and profitability by comparing the elements of its financial statements such as the balance sheet and income statement. While ratio analysis is a cornerstone of fundamental equity analysis, it must be noted that the values produced are just relative measures which cannot be meaningful without being related to some benchmarks or compared over a number of years.
The Estimated Revenues account of a government is debited when:a. The account is closed to fund balance-unassigned at the end of the year.b. Property taxes are recorded.c. Property taxes are collected.d. The budget is recorded at the beginning of the year.
Answer: a. The account is closed to fund balance-unassigned at the end of the year.
Explanation:
The Unassigned fund balance is the amount left in the Government's general fund that was not assigned to any undertaking or funds during the year. This balance is as well not restricted or committed to any undertaking.
It will therefore be debited to close off the account at the end of the period not unlike a balance carried down in a ledger account that is used to close off the account and is then sent forward to the next period.
On November 1, 2018, Mason Corp. sold $700,000 of its 10% term bonds dated October 1, 2018. The bonds were sold to yield 8%, with total proceeds of $800,000 plus accrued interest. Interest is paid every April 1 and October 1.
What amount should Mason report for interest payable in its December 31, 2018 balance sheet?
Answer:
$16,000
Explanation:
The computation of the amount reported for the interest payable is shown below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $800,000 × 8% × (3 months ÷ 12 months)
= $16,000
The three months should be taken from October 1 To November 1 and November 1 to December 31
We simply applied the above formula so that the interest payable amount could come
BI delivery can be done in a structured way because the business environment is very static.
a) true
b) false
Answer:
False
Explanation:
The correct answer is "False". In BI delivery, the business environment is NOT static.
Business Intelligence (BI) is key when carrying out strategic planning of organizations. It is used in measuring performance progress when working towards business goals.
BI is used to deliver business value and to identify customer insights.
Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $8,838. FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,424.97. What is the amount of the employer's payroll taxes expenses for this employee?
Answer: $1,110.11
Explanation:
The Employer is to pay and withhold all taxes except the income tax withheld so the employer's payroll tax expense will be;
= Social Security Tax + Medicare tax + FUTA + SUTA
= ( 0.062 * 8,838) + ( 0.0145 * 8,838) + ( 0.008 * 7,000) + ( 0.054 * 7,000)
= 547.96 + 128.15 + 56 + 378
= $1,110.11
SUTA and FUTA are payable on first $7,000 of an employee's pay.
Nastya’s makes risky investments with 25% of her portfolio and invests the rest of the portfolio in low-variance investments. This is an example of
Answer:
mental compartmentaliztion
Explanation:
By making such risky investment, this is mental compartmentalization. Nastya is not ready to take any big risks.
At times a leader will actively monitor followers and be focused on making corrective transactions to ensure there are no deviations from predefined standards. This leadership behavior is best described as
Answer:
Management by exception - active
Explanation:
Management by exception (active) is a leadership style where actions that deviate from the norm are identified and handled in a unique manner. Normally this is by human intervention.
Skilled staff and software can be used to identify these cases. Deviation from the norm can be caused by process deviation, external deviation, malformed data, and poor business rules.
Objectives are set in an organisation that have estimable results. These results are then compared with actual results to identify those that are deviating from expectations.
There are three consumers of a public good. The demands for the consumers are as follows: Consumer 1: P1 = 60 – Q Consumer 2: P2 = 100 – Q Consumer 3: P3 = 140 – Q where Q measures the number of units of the good and P is the price in dollars. Now the marginal cost of the public good is $ 60 . What is the economically efficient level of production of the good?
Answer:
80
Explanation:
To get the economically efficient level of production of the good, we will sum up the demand for consumers and equate them to the marginal cost of the public good.
Note that the economically efficient level of output occurs where MSB = MC on the graph. Therefore, since MSB = MC occurs where all the three consumers are in the market, then we'll have;
(60-Q) + (100-Q) + (140-Q) = 60
Expand the brackets
60-Q+100-Q+140-Q = 60
Collect like terms and sum up
300-3Q = 60
3Q = 300-60
3Q = 240
Q = 80
Therefore, the economically efficient level of the production of the good is 80
Possession of an open container of alcohol receives a $500 fine and a jail confinement of answer:_______
Possession of an open container of alcohol receives a $500 fine and a jail confinement of six day
What is the key to personal fulfillment in your job? A. sacrificing your beliefs for greater benefits B. pursuing new job opportunities at all times C. finding a balance between lifestyle and values D. avoiding jobs with low salaries and long hours.
Personal fulfillment in ones work means various important job-related goals which have achieved in the cause of working on a job.
Key to personal fulfillment in one job are:
1. Taking initiative. Been proactive and not sit on the sidelines brings personal fulfilment at one job.
2. Sacrificing ones beliefs for greater benefits help to achieve personal fulfillment at one job because it bring forth more focus and pro activeness.
3. Finding a balance between lifestyle & job values is also a key because they help building more healthy work life.
4. Pursuing new job opportunities and improving ones skills are key to personal fulfilment at work
In conclusion, avoiding jobs with low salaries and long hours is not part of way to achieving personal fulfilment on ones job.
Learn more about here personal fulfillment here brainly.com/question/18201892
Answer:
C: finding a balance between lifestyle and values
Explanation:
Expert verified yea right; I swear they are trying to get people to fail. anyways this is the correct answer took the test you don't need to try and comprehend that guy's confusing list with at least 2 options.
A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's total fixed costs are $2,242,500. Selling prices and cost information for both products follow. What is the firm's break-even point in units of Regular and Ultra?unit sales price variable cost per unitproductregular 27 $8ultra 30 $7a) 34,500 Regular units and 34,500 Ultra units.b) 34,500 Regular units and 69,000 Ultra units.c) 11,500 Regular units and 23,000 Ultra units.d) 40,250 Regular units and 80,500 Ultra units.e) 69,000 Regular units and 34,500 Ultra units.
Answer:
b) 34,500 Regular units and 69,000 Ultra units
Explanation:
The computation of the firm break even point in units for Regular and Ultra is shown below:
Weighted average contribution margin per unit is
= (19 × 1 ÷ 3 + 23 × 2 ÷ 3)
= 21.6666 per unit
Now Break even point unit is
= 2242500 ÷ 21.666
= 103500 unit
Now
Regular = 103500 ÷ 3 = 34500
And Ultra = 103500 - 34500 = 69000
So the correct option is b
The labor supply curve shows how many workers are willing to work at the minimum wage. in a particular industry. in order to maximize the firm's profit. at any given wage. at any given time.
Answer:
The labor supply curve shows how many workers are willing to work
at any given wage.
Explanation:
The labor supply curve shows the number of workers who are willing and able to work in an occupation at different wages. The supply curve of labor for the economy as a whole will be upward sloping or backward sloping. The economy's supply curve of labor depends on the number of individuals with upward sloping supply curves and those with backward sloping supply curves of labor.
Through social media connections, marketers and customers share information by Multiple Choice media buying. connecting customers with ways to buy media time. connecting customers online to share personal information. connecting people to financial advisors. uploading pictures, music, and videos.
Answer: Uploading pictures, music, and videos.
Explanation:
Social Media has made connections between marketers and customers easier and more widespread. They are able to share information amongst themselves through various means such as discussions on products as well as uploading pictures, music and videos.
Through these uploads of pictures, music and videos, marketers and consumers can share information relating to new products, product performance and the like. For instance, in the movie industry, trailers are frequently uploaded on social media sites to enable the movie gain traction before it is released and this method has worked wonders for movie premiers.
SOX and the SEC regulators are making it clear that if controls can be ignored, there is no control. Therefore, fraud prevention and detection require an effective monitoring system. Select one: True False
Answer: True
Explanation:
Fraud prevention simply has to do with how fraud will be stopped. Due to numerous ways of committing fraud, fraud prevention and detection require an effective monitoring system
Without an effective monitoring system, it'll b difficult to control fraud. Therefore, the option in the question is true.
The relationship between the passage of time and the value of assets is called:_________
Answer:
Depreciation
Explanation:
Depreciation is the decrease in value of an asset as time goes by. Depreciation is a method used in expensing the cost of an asset.
As time goes on, the value of an asset reduces as a result of wear and tear. this is known as depreciation.
You just paid $1,020 for a security that claims it will pay you $2,000 in 8 years. What is your annual rate of return?
Answer:
The annual interest rate is 8.78 per cent.
Explanation:
The amount paid for security (PV) = $1020
The amount paid in 8 years (FV) = $2000
We have to find the rate of return.
Now, assume i% is the annual interest rate.
Present Value (PV) * (1+i)^n = Future Value (FV)
Future Value (FV) = $ 2,000
Present Value (PV) = $ 1,020
N= 8 years
1,020*(1+i)^8 = 2,000
i = (2,000/1,020)^(1/8) – 1
i = 0.0878 or 8.78%