Answer:
Option C, Cannot be determined without the risk-free rate, is the right answer.
Explanation:
Given the beta value = 1
The expected return on the market = 13%
From the given information we have to find the expected rate of return but without risk-free rate, it can not be determined because if we calculate the expected return then the resulting expected rate of return is not in the options. Below is the formula for the expected return.
Expected return = risk-free interest rate + Beta value × (Market rate- risk-free rate).
As the risk-free rate is not given so as the expected return cannot be determined.
Capital investment evaluation methods can be grouped into the following two general categories: a.methods that use average rate of return and methods that use differential analysis methods. b.methods that do not use present values and methods that use present values. c.methods that use absorption cost analysis and methods that use incremental analysis. d.methods that do not use variable costing and methods that use variable costing.
Answer:
Option b (methods that do not use present values and methods that use present values) is the correct choice.
Explanation:
Evaluation of capital expenditure seems to be a budgeting technique used by businesses and government organizations to determine the possible viability of such a long-term project.
The assessment of capital investment initiatives generally follows four techniques:
The back technique average rate. The system of repayment-period. The formula for net cash flows-value. The internal process of transfer.The other options have no relation to a particular circumstance. So the above alternative seems to be the appropriate one.
The general term for the payments for the use of resources is ______?
A. wages
B. rent
C. interest
D. factor payments
The umbrella word used to describe payments for the usage of resources is Factor payments. Hence, Option D is correct.
What is factor payment?Factor payments in economics are the compensation that individuals receive for providing the factors of production—land, labor, capital, or entrepreneurialism. Payments made with limited resources or production inputs in exchange for useful services.
Rent, wages and salaries for work, interest and dividends are the factor payments received for land, labor, and capital, respectively. It describes one method for determining GDP using income.
The factor income technique, also referred to as the "income approach," calculates GDP by adding employee wages, rent, interest, and profit. Payments provided to production factors, such as rent, interest, profit, wages, etc., are referred to as factors payments.
Thus, Option D is correct.
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Your job is to submit a risk diagnosis to the Centers for Medicare & Medicaid Services (CMS) for the purpose of payment. As part of this job, you use a process to verify the data is accurate. Your immediate supervisor tells you to ignore the Sponsor's process and to adjust or add risk diagnosis codes for certain individuals. What should you do?
Answer:
Report the incident to the compliance department (via compliance hotline or other mechanism)
Explanation:
Since in the question, it is mentioned that the you have to submit a diagnosis risk to CMS with respect to the payment also you need to check whether the data is correct or not
But at the same time you also ignored the process so here you need to report the situation to the compliance department so that the proper actions could be taken
In a risk diagnosis to the Centers for Medicare & Medicaid Services (CMS), report the incident to the compliance department (via compliance hotline or other method.
Since it is stated in the question that you must submit a diagnosis risk to CMS in order to receive reimbursement, you must also verify that the data is valid.
However, also neglected the process, therefore must report the problem to the compliance department so that appropriate action can be taken.
The Sponsor's methodology ensures that the data reported to CMS is correct. If disregard the process, its risk providing inaccurate information to CMS, which might have major consequences.
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The country of Cadmia is known around the world for the high-quality wine it produces. Consumers who do not know much about wine tend to rate the wines from Cadmia more favorably than the wines from Chile, even when independent analysis shows that Cadmian wines are actually inferior. Which of the following barries to international communication provides an explanation to this situation?A) Filter effects
B) Cultural barriers
C) Country of origin effects
D) Pull effects
E) Power distance
Answer:
C) Country of origin effects
Explanation:
In the above scenario, it is clear that the barriers to international communication provide an explanation for this situation is the effect of the country of origin.
This effect is caused by a psychological phenomenon of associative image very well positioned to a certain country and a specific brand, product or attitude, which causes the bias of nationality, that is, the knowledge with which people perceive such a product of origin. a country that has the image positioned as Cadmia, which is the country known throughout the world as the country that manufactures high quality wines, this will be a significant influence that will make consumers prefer to consume such products.
The Gap company caters to the needs of men and women by manufacturing three different lines of fashion-wear based on the purchasing power of its customers. One product line caters to the needs of affluent, Generation X executives and the other line targets Millennial professionals and homemakers. Gap most likely segments the consumer market based on __________ variables.
Answer: demographic
Explanation:
Demography simply has to do with population study. From the question, we are informed that The Gap company caters to the needs of men and women by manufacturing three different lines of fashion-wear based on the purchasing power of its customers.
This shows that Gap most likely segments the consumer market based on demographic variables.
A segment is a part of a company that earns money and develops its own products, product lines, or service offers.
Gap most likely segments the consumer market based on Demographic variables.
Demographic data is gathered to create a client base profile for cooperate marketing purposes. Age, sex, income level, race and employment are some of the main characteristics collected in demographic research. In order to identify clients, demographic data is used to generate assumptions about groups.
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Ryan, a foreign-exchange dealer, sold U.S. dollars for Swiss francs in the United States, then sold Swiss francs for Japanese yen in Switzerland, and then sold the Japanese yen for U.S. dollars in the United States. Ryan hopes that he will end up with more U.S. dollars than when he began. Which term best describes Ryan's actions
Answer: Arbitrage
Explanation:
Arbitrage occurs when an economic agent such as an individual buys and sells currencies, securities, or commodities in several markets simultaneously so that the individual can take advantage of the different prices that is charged for the same asset. This is the method that is being used by Ryan in the question.
John takes $100 of currency from his wallet and deposits it into his checking account. If the bank adds the entire $100 to reserves, the money supply _____, but if the bank lends out some of the $100, the money supply _____.
Answer:
John takes $100 of currency from his wallet and deposits it into his checking account. If the bank adds the entire $100 to reserves, the money supply WILL NOT CHANGE, but if the bank lends out some of the $100, the money supply WILL INCREASE.
Explanation:
Any monetary injection to the banking system will increase the money supply only if the banking system (the whole set of banks) lends the money. The total effect is calculated by the increase in money x the money multiplier. The money multiplier = 1 / required reserves.
If the bank does not lend the money, then the money supply will not change.
Juan is willing to buy the last ticket to the Meathead concert for $120, while Mara is willing to pay $250. Juan is first in line and buys a ticket for $120. Juan could sell his ticket to Mara for $200, but he can't because of government regulation preventing the reselling of tickets. The regulation, then, is causing:
Answer:
Potential total surplus to increase.
Explanation:
As we know that:
Producer Surplus = Market value - Minimum price to sell
This means that for Juan:
Market value at which he can sell the ticket to Mara was $200 and the minimum price that he will accept will be $120
By putting values, we have:
Liam's surplus = $200 - $120 = $70
Now
Consumer Surplus = Consumer willing to Pay - Consumer Paid
For Alexander, the amount he was willing to pay was $250 and what he actually paid was $200 if the regulation hasn't intervened.
Alexander's surplus = $250 - $200 = $50
This means that the regulation prevents the increase in the potential total surplus and this has increased the dead weight loss of $120 ($70 + $50).
Wohlers Co. considers a project that will require an initial investment of 5 million. It has a target capital structure of 30% debt, 5% preferred stock, and 65% common equity. Wholers Co. has outstanding 20-year noncallable bonds with a face value of $1,000. These bonds have a current market price of $1,181.96 and an annual coupon rate of 13%. The company faces a tax rate of 40%, and can sell shares of preferred stock that pay an annual dividend of $7.50 at a price of $89.25 per share. The company's common stock is currently selling for $22.35 per share and pays a dividend of $2.45 today. The common stock's growth rate is a constant rate of 9.2%. What will be the WACC for the project
Answer:
WACC = 16.18%
Explanation:
cost of equity (Re):
P₀ = Div₁ / (Re - g)
$22.35 = ($2.45 x 1.092) / (Re - 9.2%)
$22.35 = $2.6754 / (Re - 9.2%)
Re - 9.2% = $2.6754 / $22.35 = 11.97%
Re = 11.97% + 9.2% = 21.17%
after tax cost of debt:
YTM = {130 + [(1,000 - $1,181.96)/ 20]} / [(1,000 + $1,181.96)/ 2] = 120.902 / 1,090.98 = 11.08%
after tax cost of debt = 11.08% x (1 - tax rate) = 11.08% x 0.6 = 6.65%
cost of preferred stocks = $7.50 / $89.25 = 8.40%
WACC = (0.65 x 21.17%) + (0.05 x 8.4%) + (0.3 x 6.65%) = 13.76% + 0.42% + 2% = 16.18%
The Housing Financial Discrimination Act (Holden Act) prohibits all financial institutions from discriminating in real estate loan approvals based on the geographic location, the neighborhood, or any other characteristic of the property, known as:
Answer:
Redlining
Explanation:
Redlining stems from discrimination that consists denial of services, maybe financial based on the group one may fall under such as race, ethnicity or location. The Holden act(1977) is a real estate act of California meant to protect individuals from discriminations such as ones that involve denial of mortgage loan on the basis of something other than the credit worthiness of the individual . These discriminations could take the form of mortgage loan and, insurance loan denials or other financial services based on creditworthiness history of the group the person may fall under and not necessarily the individual's qualifications on his own
In an addendum to the purchase and sale contract, the seller agrees to paint the house before conveying the house to the buyer. The weather changes, and the seller is unable to finish painting the house before closing. This is an example of _______.
Answer: Partial performance
Explanation:
Partial performance is described as the completion of a job that forms a portion of a contract.Here, the seller agrees to paint the house before conveying the house to the buyer. The weather changes, and the seller is unable to finish painting the house before closing.
This indicates a part of job is done.
Hence, this is an example of partial performance.
3.
How is net profit determined ?
han
Answer:
Net profit: Calculate the net profit (aka net income) by subtracting total expenses from total revenue to see exactly how much a company profits (a new profit) or loses (a net loss). A company's net income over time is a great indicator of how well or poorly its management team runs the company.
Explanation:
hope it is helpful for you have nice dayJoseph Brown signs a contract with Lewis Johnson allowing Johnson to buy Brown's home for $63,200 anytime between the date of the contract and the following February 8. Brown also agrees not to sell his home to anyone else until after February 8 and received $300 as consideration. This contract is called
Answer:
An option.
Explanation:
In this scenario, Joseph Brown signs a contract with Lewis Johnson allowing Johnson to buy Brown's home for $63,200 anytime between the date of the contract and the following February 8. Brown also agrees not to sell his home to anyone else until after February 8 and received $300 as consideration. This contract is called an option.
An option is a contract (financial derivatives) which provide buyers the right, however not the obligation, to buy or sell an underlying asset at an agreed price and specified period of time (date). It comprises of call options and put options.
Mark thinks that if he asks for a $50-a-week raise, he will definitely get it. He really wants a $75-a-week raise and thinks his chances of getting a raise of that amount are about 25 percent. Expectancy value theory would predict that Mark will ask for a ________-a-week raise, and classic behaviorism would predict that he will ask for a ________-a-week raise.
Answer:
$50 ; $75
Explanation:
Expectancy value theory is the theory that shows and predict the individual attitude towards things. here the expected derives that someone is expected i.e how likely the individual wants that thing
Here in the given situation, the expectancy value theory predict the mark should ask for $50 for raising the week while on based on the classic behaviorism it would predict a $75-week raise
Vivian's been put in charge of a few clients interested in running Google App campaigns. Some campaigns will use target cost-per-action (tCPA), while others use target cost-per-install (tCPI). Which two statements are correct when it comes to setting daily budgets within App campaigns
Answer:
- A daily budget should be at least 50 times the tCPI.
- A daily budget should be at least 10 times the tCPA.
Explanation:
Google application campaigns are used to promote Android and iOS applications across different platforms with the use of one system.
Advertisements are formatted to various specifications based on advertiser's uploaded creative assets (text, image, and video assets).
tCPA should be set to at least 10 times daily. This is done to quickly ramp up the campaign. Sometimes up to 20 times can also be used for better results.
tCPI should be set at least at 50 times for bids of $4 to $$5. Even when the CPI goals are lower the target should be set this way.
Suppose that initially the price is $20 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently, some firms leave the industry, and the industry returns to a long-run equilibrium. What will be the new equilibrium price, assuming cost conditions in the industry remain constant
Answer:
$20
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
demand falls and so does supply. therefore price would remain unchanged in the long run equilibrium.
Karen Smith bought Coca-Cola stock for $475 on March 31, 20X1. On November 15, 20X1, Karen received a non-taxable distribution of $155 on the 50 shares of stock she owned. She sold the stock for $300 on December 22, 20X1. What is her gain or loss on the sale
Answer:
$20 loss
Explanation:
Karen Smith bought a coca-cola stock for $475 in March 31, 20X1
She received a non taxable distribution of $155 on November 15, 20X1
The first step is to calculate the adjusted basis
= $475-$155
= $320
Karen sold the stock for $300 on December 22, 20X1
Therefore, her gain or loss on the sale can be calculated as follows
= $300-$320
= $20 loss
Hence Karen has a loss of $20 on the sale
An October sales forecast projects 7,000 units are going to be sold at a price of $11.50 per unit. The desired ending inventory in units is 15% higher than the beginning inventory of 1,000 units. Total October sales are anticipated to be a.$70,000 b.$80,500 c.$92,000 d.$69,000
Answer:
$80,500
Explanation:
An October sales forecast project 7,000 units which is going to be sold at the price of $11.50 for one unit
The desired ending inventory is 15% higher than the beginning inventory which is set at 1,000 units
Therefore, the total October sales can be calculated as follows
Total October sales= 7,000 × $11.50
= $80,500
Hence the total October sales is anticipated to be $80,500
Suppose quantity demanded is 2,000 when price is $10 and 3,000 when price is $5. If a monopolist who was initially charging a price of $10 discovers a way to price discriminate, it will be able to increase revenue from $20,000 to:
Answer:
$25,000 by charging consumers with more elastic demand only $5 and keeping the price for consumers with less elastic demand at $10
Explanation:
Price discrimination refers to the differentiation in the price of the product for every consumer that means the company charged different prices from the different customers
Also, in this it charges from the consumers having more elastic demand at less price. Here 2,000 units are purchased at $10 and the 1,000 units are purchased at $5 so the total quantity demanded is 3,000
The 25,000 units come from
= 2,000 ($10) + 1,000 ($5)
= 20,000 + 5,000
= 25,000
Maddie is the CEO of Stevenson, Ross, and Warner (SRW), a regional accounting firm. SRW offers services in most areas of accounting, including auditing and consulting services. The firm must follow the GAAP rules, just like any other accounting firm. If there are information gaps that are not addressed and resolved by the firm, SRW could be considered a violator of the Sarbanes-Oxley Act. Maddie understands what must be done and wants every employee of the firm to understand that they have to follow all the rules and regulations. Like any other industry, accounting is a competitive industry and employees of accounting firms must be productive, progressive, and well trained. Refer to Stevenson, Ross, and Warner. If you applied for a job at SRW and were asked to state the accounting equation, which of these would you state?
Answer:
Assets = Liabilities + Owners' Equity
Explanation:
The reason is that it is the basic accounting equation that forms the basics of the double entry. It is main equation from which all the Gernally Accepted Accounting Principles and International Accounting Standards had originated. This helps us to understand a big picture of an entity either it is by record keeping, financial statement analysis, uncovering frauds, provision of system of check and balance and many more. This is the reason why the basic accounting equation has immense importance in Sarbanes Oxley Act, Companies Act, etc.
A leader who tells his workers that each of them is authorized to have their own passwords into the building is showing _________. a. Communication b. Honesty c. Respect d. Sense of Humor Please select the best answer from the choices provided A B C D
sense of humour honesty
Suppose the following information: The cost of a full-page color ad in the U.S. national edition of The Wall Street Journal (newspaper) is $327,897 and its U.S. audience size is 1,566,027. The cost of a full-page color ad in the U.S. national edition of USA Today (newspaper) is $207,720 and its U.S. audience size is 1,711,696. The cost of a full-page color ad in the U.S. national edition of Bloomberg Businessweek (magazine) is $148,300 with an audience size of 900,000. The cost of a full-page color ad in the U.S. national edition of Sports Illustrated (magazine) is $396,600 and has an audience size of 3,000,000. The cost of a 30-second ad on the most recent Super Bowl telecast is $3,800,000 and has an audience size of 108,400,000. Using this information, which of the five media alternatives has the lowest CPM?
A) The Wall Street Journal
B) USA Today
C) Bloomberg Businessweek
D) Sports Illustrated
E) Super Bowl
Answer:
E) Super Bowl
Explanation:
For computing the lowest CPM we need to do the following calculations
(a) (b) (a ÷ b)
Particulars U.S. national edition U.S. audience size CPM
Wall streel Journal $327,897 $1,566,027 20.94%
USA today $207,720 $1,711,696 12.14%
Bloomberg
Businessweek $148,300 $900,000 16.48%
Sports Illustrated $396,600 $3,000,000 13.22%
Super Bowl telecast $3,800,000 $108,400,000 3.51%
As we can see from the above calculations that the super bowl has the lowest CPM
hence, the option E is correct
Small business investment companies (SBICs) a. are licensed and regulated by the Federal Trade Commission. b. may lend funds or supply equity funds. c. obtain part of their capital from local governments at attractive interest rates. d. provide only short-term financing.
Answer:
b. may lend funds or supply equity funds.
Explanation:
A small business investment companies (SBIC) is a firm that invests in small businesses. Investments are generally carried out through equity financing or private loans. They are regulated and must be licensed by the Small Business Administration (SBA). The SBA lends money to SBICs so that they can invest in specific industries or specific business sectors.
Kennedy, Inc. reported the following data: Net income $173,387 Depreciation expense 12,062 Loss on disposal of equipment (8,995) Gain on sale of building 19,920 Increase in accounts receivable 10,890 Decrease in accounts payable (3,089) Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, cash payments, or any negative adjustments.
Answer:
Kennedy, Inc
Cash flows from operating activities:
Net income $173,387
Adjustments to reconcile net income
to net cash flow from operating activities:
Depreciation expense $12,062
Loss on disposal of equipment $8,995
Gain on sale of building -$19,920
Changes in current operating
assets and liabilities:
Increase in accounts receivable -$10,890
Decrease in accounts payable -$3,089
Net cash flow from operating activities $160,945
Erin works for a dry-cleaning company that has a contract with the U.S. government. To save on cleaning fluid, her boss orders her to wash some clothes that are supposed to be dry-cleaned in a washing machine. When the courier hired to pick up the cleaned garments arrives, Erin tells him about her boss's actions. Erin tells no one else about what is going on and is later fired. Erin
Answer: Failed to informed the proper party
Explanation:
When negligence of the right deeds to be done in an organization is osetved by an individual working their, it is right report the situation that occurred to the right authority so that the right action would be taken which will not endanger the reporting individual or harm his employment in the organization. Erin's situation will be taken with kids glove due to she failed to report the situation to the appropriate party for investigations to be carried out.
Which of the following causes the master budget variance between the amounts in the master budget and the flexible budget of a revenue center?
A. The number of units sold differs from planned sales levels
B. The cost of sales
C. The selling price per unit
D. Both the selling price and the number of units sold
Answer:
A. The number of units sold differs from planned sales levels.
Explanation:
The difference in the master budget and flexible budget lies in the level of operation (sales units). That is the planned sales levels included in muster budget are usually different from the actual sales levels included in the flexible budget.
Which of the following companies should have the highest beta? Multiple Choice Orange Company that has low operating and financial leverage. Yellow Company that has highly cyclical revenues and uses high levels of fixed costs. Blue Company that has low cyclical business activity and high operating leverage. Black Company that has highly cyclical business activity and low operating leverage. Red Company that has low cyclical business activity and low fixed costs.
Answer: Yellow Company that has highly cyclical revenues and uses high levels of fixed costs
Explanation:
Beta is used to measure how risky a firm is. A high beta means the risk that is involved is high while a low beta means that the risk that is involved is low.
From the options given, the from with the highest beta will be Yellow Company that has highly cyclical revenues and uses high levels of fixed costs. It has cyclical revenues that are high and also a high fixed cost.
Frederick Griffith of Griffith's department stores tells his marketing director that he is tired of the constant price-centered advertising by the firm's agency. "We have the best customer service in town, and I feel that is what we should be hanging our hats on," he states. This statement is most appropriate for use in which of the following stages of campaign development?
A) Determining the appropriations
B) Creating the platform
C) Identifying the target
D) Defining objectives
E) Developing the media plan
Answer: Creating the platform
Explanation:
Campaign development has to do with the maintenance of brand messaging which are consistent across different marketing channels.
The statement by Frederick Griffith in the question is most appropriate for use in "creating the platform". Here, he is giving his opinion which can be looked into and built upon when making decisions.
Which of the following is classified as investment? I. existing homes II. business spending on new equipment III. purchase of corporate stock IV. taking out a loan to build an office building
Answer:
The answer is II. business spending on new equipment
Explanation:
For a spending to be classified as investment, the money must ne spent or acquiring non-current asset(fixed asset or long-lived asset.
In the question above, only business spending on new equipment will be classified as investment because the business spent money to acquire non-current asset.
Purchase of current stock is a financing activitiy while taking out loan is also a financing activitiy.
Several reasons were provided for why many professional sports teams are struggling to sell the naming rights to their venues. What is the central reason that teams like the Washington Nationals have not yet been able to find a naming rights partner
Answer:
Explanation:
The most likely reason for this situation is that many of the most prominent brands have already entered into naming rights deals and are no longer available as potential prospects. Prominent brands move fast in order to secure the best deals as fast as possible and make profitable financial moves, which in term closes and shrinks the market to very few potential prospects which may not have a reason to enter into a deal with such available teams.