Bubs Australia is a public listed company in ASX. It is considering issuing ordinary shares to raise capital. a) Bubs Australia has a Beta of 1.2. The long-term return of the ASX200 (i.e. the market portfolio) is 8% per annum, and the market risk premium is 5%. Without calculation, use the meaning of Beta to explain if Bubs Australia's expected rate of return would be higher or lower than the market portfolio return?

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Answer 1

Answer : Bubs Australia's expected rate of return would be higher than the market portfolio return due to its beta value of 1.2.

Explanation : Beta is a measure of systematic risk. The measure is used to estimate how an asset moves relative to the market. Assets with a beta of less than 1 are regarded as less risky than the market, whereas those with a beta of more than 1 are seen as riskier than the market.

Bubs Australia, a publicly traded firm on the ASX, has a beta of 1.2.If the long-term return of the market portfolio is 8% per year, and the market risk premium is 5%, Beta may be used to explain whether Bubs Australia's expected rate of return will be greater or less than the market portfolio return.

Beta values greater than 1.0 indicate that a company's stock is more volatile than the market, while beta values less than 1.0 indicate that the stock is less volatile than the market.

As a result, Bubs Australia's expected rate of return would be higher than the market portfolio return due to its beta value of 1.2.

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Related Questions

Assume taxes are zero and the consumption function is C = 0.90(Y) + $300. Based on this information, the saving function is S= (Yd) - $

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To determine the saving function based on the given information, we need to start by defining the terms.

C = Consumption

Y = Total income (or output)

Yd = Disposable income (income after taxes)

S = Saving

The consumption function is given as C = 0.90(Y) + $300.

To find the saving function, we need to subtract consumption (C) from disposable income (Yd), as saving is the difference between income and consumption. S = Yd - C

Since taxes are assumed to be zero, disposable income (Yd) is equal to total income (Y). Substituting this into the equation, we have: S = Y - C

Now we substitute the given consumption function into the equation:

S = Y - (0.90(Y) + $300)

Simplifying the equation, we have:S = Y - 0.90Y - $300

Combining like terms, we get:S = 0.10Y - $300

Therefore, the saving function based on the given information is: S = 0.10Y - $300

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A 4-year annual coupon bond trades for $1,037, has a face value of $1,000 and a coupon rate of 4%. What is the yield to maturity?
The yield to maturity on a $1,000 face value bond is 3.5%. The bond pays annual coupons of $35. Is the bond trading at a premium, a discount, or par?

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The bond is trading at a premium. The yield to maturity on a $1,000 face value bond is 3.5%, which means that the bond is offering a lower yield compared to the market rate.

Given that the bond has a coupon rate of 4% and a face value of $1,000, it pays annual coupons of $35 ($1,000 * 4%). However, since the bond is trading at $1,037, which is above its face value, it is trading at a premium.

This means that investors are willing to pay more than the face value of the bond to receive the fixed coupon payments and the return of the face value at maturity. The premium reflects the higher demand for the bond and the lower yield it provides compared to the prevailing market rates.

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Hooyay is a low cost manufacturer of smartphones in Myanmar. They recently listed in 2017 on the Singapore Exchange and did not issue any dividends for 2017 and have no plans to for 2018. They do believe that it would be possible to issue dividends in 2024 at a 42.5% payout ratio. Their current capital structure is 60% equity and 40% debt with a target ratio of debt to equity of .35. For 2017, they generated SGD 45,000,000 of net income on SGD85,000,000 of revenue on 10,000,000 shares that they issued. The current cost of debt is 17% with a 35% tax rate. The company is currently trading at a 2.3 Beta while the Singaporean treasury rate is at 2.5% and the market has returned 11.8% on average for the last decade. Net Income is expected to grow at 12% for the foreseeable future. a. What is the cost of equity? b. What is the WACC?

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a. The cost of equity is approximately 24.01%.

b. The weighted average cost of capital (WACC) is approximately 18.25%.

a. To calculate the cost of equity, we can use the Capital Asset Pricing Model (CAPM):

Cost of Equity = Risk-Free Rate + Beta * Equity Risk Premium

The risk-free rate is given as the Singaporean treasury rate of 2.5%.

The company's beta is stated as 2.3.

Equity Risk Premium = Market Return - Risk-Free Rate

The market return is given as 11.8%.

Equity Risk Premium = 11.8% - 2.5% = 9.3%

Cost of Equity = 2.5% + 2.3 * 9.3% ≈ 24.01%

Therefore, the cost of equity is approximately 24.01%.

b. To calculate the Weighted Average Cost of Capital (WACC), we need to consider the cost of equity, cost of debt, and the weights of equity and debt in the capital structure.

WACC = (Weight of Equity * Cost of Equity) + (Weight of Debt * Cost of Debt * (1 - Tax Rate))

The weight of equity is 60%, and the weight of debt is 40%.

The cost of debt is 17%, and the tax rate is 35%.

WACC = (0.60 * 24.01%) + (0.40 * 17% * (1 - 35%))

WACC ≈ 18.25%

Therefore, the WACC for the company is approximately 18.25%.

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The Nelson company has$1,212,500 in current assets and 485,000 in current liabilities. Its initial inventory level is $340,000 and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelsons short term debt increase without pushing its current ratio below 2.0? do not around intermediate calculations. Round your answer to the nearest dollar.

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The current ratio is the ratio of a company's current assets to its current liabilities. It is a liquidity ratio that determines whether a company has sufficient resources to pay its debts in the short term. A current ratio of 2.0 or more is considered good. It indicates that a company has enough current assets to cover its current liabilities twice.

We can use the current ratio formula to calculate how much Nelson's short-term debt can increase without pushing its current ratio below 2.0.

Current ratio = Current assets / Current liabilities

We have, Current assets = $1,212,500

Current liabilities = $485,000

Current ratio = 2.0

We can rearrange this formula to find the maximum amount of short-term debt that Nelson can take without decreasing its current ratio below 2.0.

Let us assume that the total increase required in current liabilities to keep the current ratio of 2.0 be x.

Current Ratio = Current assets / (Current liabilities + x)

2.0 = 1212500 / (485000 + x)

By cross-multiplying,

2(485000 + x) = 1212500

970000 + 2x = 1212500

2x = 1212500 - 970000

2x = 242,500

x= 242,500 / 2

x = $121,250

Therefore, the short-term debt increase without pushing its current ratio below 2.0 required by Nelson's is $121250.

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Q.2 Amjad rising Inc, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider mode, but also makes custom designed paragliders. Management has designe

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The overall profitability of Blue Sky Outfitters is Rs. 130,332. Activity Based Costing (ABC) is a costing approach that assigns the costs of the resources used in the production of products to the individual products. The primary aim of ABC is to determine the profitability of products more accurately. Profitability is the ability of a company to generate profit. It is determined by comparing a company's earnings to its expenses. A company is profitable when its earnings are higher than its expenses.

Computation of profitability: Standard Model: Activity Rate Total Cost of Activity Total Activity used Total Cost of Activity Number of gliders Number of direct labor hours per glider Direct Material Cost per glider Direct labor cost per glider Direct labor cost per unit Selling price per unit Profitability Per unit profitability Rs. 20 per glider 20 x 200 = 4000 4000/200 = Rs. 203 hrs x 19.5 = Rs. 58.550.5 x 19.5 = Rs. 9.758.5 + 564 + 634 = Rs. 1,206 1850 - 1206 = Rs. 644 644 x 200 = Rs. 128,800 Total profitability= Rs. 128,800

Custom Design: Activity Rate Total Cost of Activity Total Activity used Total Cost of Activity Number of orders Number of Custom designs Direct Labor hours per glider Direct Material Cost per glider Direct labor cost per glider Direct labor cost per unit Selling price per unit Profitability Per unit profitability Rs. 1 per order 1 x 2000 = 2000 2000/20 = Rs. 100 3 x 200 = Rs. 600 3 x 200 = Rs. 19.56 x 19.5 = Rs. 1173 + 634 + 117 = Rs. 868 2400 - 868 = Rs. 1532 Total profitability = Rs. 1532

Overall profitability: Standard Model = Rs. 128,800 Custom Design = Rs. 1532 Total profitability = Rs. 130,332. Hence, the overall profitability of Blue Sky Outfitters is Rs. 130,332.

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Chell, Inc., is expected to maintain a constant 4 percent annual growth rate in its dividends, indefinitely. If the company has just paid $11 in annual dividend, what comes closest to the intrinsic value of this stock? Assume the discount rate of 9%. 127 229 220 122 Next Previous

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In order to find the intrinsic value of the stock, we have to use the Gordon Growth Model. It is a method used to calculate the intrinsic value of a stock using its dividend payments and the assumed rate of dividend growth.

Here are the steps to solve the question using the Gordon Growth Model: Given Data Annual dividend (D) = $11Expected growth rate (g) 4%Discount rate (r) = 9% The Gordon Growth Model is as follows: P = D / (r - g)Where,P = Intrinsic value of the stockD Annual dividendr = Discount rateg = Expected growth rate.

Substitute the given values in the formula: P = $11 / (9% - 4%)P = $11 / 5%P = $220 Therefore, the intrinsic value of this stock is $220. Hence, the closest option is 220.

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Which of the following refers to a problem that firms with structurally sophisticated global networks are most likely to face? A) environmental volatility B) competition from domestic firms C) low cost savings D) import tariffs

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Environmental Volatility refers to a problem that firms with structurally sophisticated global networks. Option A is the correct answer.

Significant environmental problems and sustainability difficulties have an impact on businesses. A company's bottom line is impacted by climate change, pollution, and global warming since these major environmental challenges have a negative influence on revenue and employee productivity. Option A is the correct answer.

Important sustainability issues that have an impact on the entire planet are currently being faced. We can't effectively address environmental problems on our own. Businesses, on the other hand, are more equipped than individuals to create real change. This is why sustainable business practices are the most efficient means of bringing about long-term change that is advantageous to both firms and customers worldwide.

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Why is the direct materials usage variance allocated only to WIP Inventory, Finished Goods Inventory, and cost of goods sold (COGS)? Multiple Choice It occurs before direct materials are issued to pro

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The direct materials usage variance refers to the difference between the actual amount of direct materials used in production and the standard amount that was expected or budgeted for that production. Here option C is the correct answer.

This variance is calculated to assess the efficiency and effectiveness of the materials used in the production process. The allocation of the direct materials usage variance typically occurs after the direct materials have been issued to production.

It is a part of the cost accounting process that aims to determine the financial impact of any discrepancies between the usage of the actual and standard material.

Once the production process is completed and the actual direct materials used are known, the variance is calculated by comparing the actual usage with the standard usage. This variance is then allocated or distributed to relevant accounts such as work-in-progress (WIP) inventory, finished goods inventory, and the cost of goods sold (COGS). Therefore option C is the correct answer.

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Complete question:

Which of the following options correctly describes when the direct materials usage variance is allocated?

A) It occurs before direct materials are issued to production.

B) It occurs while direct materials are issued to production.

C) It occurs after direct materials are issued to production.

D) It occurs during the inventory reconciliation process.

Using relevant examples from different industries, discuss the factors that complicate the job of international human resource managers.

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International human resource management involves managing human resources in a global business environment.

The job of an international human resource manager is a complex one due to various factors. Below are some of the factors that complicate the job of international human resource managers.

Cultural differences: Different cultures have different ways of doing things, which could affect business operations. An international human resource manager needs to be knowledgeable of the local cultures to manage employees effectively. For example, American businesses may have different approaches to performance management compared to businesses in Japan. Legal and regulatory differences: Different countries have different employment laws and regulations. It's the responsibility of the international human resource manager to ensure the company complies with local employment laws and regulations. For example, the employment laws and regulations in China are different from those in Germany.

Language differences: Communication is critical in international business. An international human resource manager needs to be able to communicate effectively with employees, stakeholders, and customers who speak different languages. For example, if a German company is expanding its operations to Brazil, the human resource manager needs to be able to speak Portuguese to effectively communicate with the employees. Technology differences: Different countries have different technology infrastructures, which could affect the company's operations. For example, if a company operates in a developing country, there may be poor internet connectivity that could affect communication and operations.ConclusionIn summary, international human resource managers need to understand the cultural, legal, linguistic, and technological differences that could complicate their jobs. They must develop strategies to address these challenges to ensure business operations are not affected.

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blinding light company has a project available with the following cash flows: year cash flow 0 −$ 32,990 1 8,360 2 10,090 3 14,470 4 16,130 5 11,120 what is the project's irr?

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The Blinding Light Company has a project IRR of 11.84%.

To calculate the Internal Rate of Return (IRR) for the project, we need to find the discount rate that makes the present value of the project's cash flows equal to zero. Using the given cash flows:

Year 0: -$32,990

Year 1: $8,360

Year 2: $10,090

Year 3: $14,470

Year 4: $16,130

Year 5: $11,120

To find the IRR, we need to solve the equation:

-$32,990 + ($8,360 /[tex](1 + IRR)^1)[/tex] + ($10,090 / (1 + [tex]IRR)^2[/tex]) + ($14,470 / (1 + [tex]IRR)^3[/tex]) + ($16,130 / (1 + [tex]IRR)^4[/tex]) + ($11,120 / [tex](1 + IRR)^5[/tex]) = 0

By applying numerical methods or using a financial calculator, the IRR can be found to be approximately 11.84%. Therefore, the project's IRR is 11.84%.

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Long-term forecasts are usually less accurate than short-term forecasts because
A) short-term forecasts have a larger standard deviation of error relative to the mean than long-term forecasts.
B) short-term forecasts have more standard deviation of error relative to the mean than long-term forecasts.
C) long-term forecasts have a smaller standard deviation of error relative to the mean than short-term forecasts.
D) long-term forecasts have a larger standard deviation of error relative to the mean than short-term forecasts.
E) none of the above

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The correct answer is D) long-term forecasts have a larger standard deviation of error relative to the mean than short-term forecasts.

Long-term forecasts tend to be less accurate than short-term forecasts because they are subject to more uncertainties and variables over a longer time horizon. Factors such as changes in market conditions, technological advancements, and economic fluctuations become more difficult to predict accurately over extended periods. These uncertainties contribute to a larger standard deviation of error in long-term forecasts compared to short-term forecasts, where the impact of these factors is generally more limited.

Short-term forecasts benefit from having a more immediate and clearer understanding of current conditions, making it easier to make accurate predictions within a shorter time frame. The shorter time horizon allows for a better estimation of variables and reduces the potential impact of unforeseen events or changes in circumstances.

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Based on systems theory, the types of practices the coaching team runs is a(n)
Multiple Choice
output.
transformational process.
input.
operational contingency.
feedback mechanism.

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Based on systems theory, the types of practices the coaching team runs is a transformational process.

Systems theory is a transdisciplinary study that examines the nature of complex systems. It is an alternative paradigm to reductionism, which is concerned with identifying the components and elements that make up a system and how they interact. Instead, systems theory examines how components function and interact within a larger context or environment.System theory can be applied to a wide range of fields, including biology, psychology, engineering, and business. It can be used to analyze the interactions between individuals, groups, organizations, and entire societies.Types of practices the coaching team runsThe types of practices the coaching team runs is a transformational process. Transformational coaching is a process in which the coach and client work together to achieve a goal. It is a process that is focused on change and growth. Transformational coaching can be used in a variety of settings, including business, education, and personal development.In transformational coaching, the coach and client work together to identify the client's goals and develop a plan to achieve them. The coach provides guidance and support throughout the process, helping the client to overcome obstacles and stay on track. Through this process, the client develops the skills and knowledge necessary to achieve their goals.

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increasing market audience, receiving foreign direct investment are reasons international trade is important to the united states.T/F

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The statement "Increasing market audience and receiving foreign direct investment are reasons international trade is important to the United States" is TRUE because International trade is important to the United States because it allows for increased market audience and greater opportunities.

International trade is a critical component of the US economy as it provides for greater opportunities for businesses to expand their reach and grow their market share globally. With a global market audience, US businesses can benefit from new markets and increased revenue streams.

As a result, international trade has been a driving force behind economic growth in the US for many years. Receiving foreign direct investment is another important reason why international trade is critical to the US economy. Foreign direct investment allows US businesses to gain access to funding and expertise from foreign investors.

This can be particularly important for startups and small businesses that need financial backing and support to get their businesses off the ground. Additionally, foreign direct investment can help to create new jobs and increase economic activity in the US by allowing businesses to expand their operations.

Overall, international trade is an important part of the US economy as it provides for greater opportunities for businesses to grow and expand their market reach globally. By embracing international trade, the US can continue to be a leader in the global marketplace and maintain its status as one of the world's strongest economies.

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You are having a discussion on short-term securities with your grandpa. Your grandpa states that ‘Since bank bills are instruments that typically have a maximum maturity of 180 days, they are of no use in meeting funding requirements for longer than 180 days.’ Critically analyse and discuss this statement.
The company ALTA Ltd issued a bank accepted bill to fund its working capital requirement. The bill is issued for 60 days, with a face value of $150,000 and a yield of 2.5% per annum to the original discounter. After 25 days, the bank bill is sold by the original discounter into the secondary market for $138,222. The purchaser holds the bill to maturity. What is the yield received by the holder of the bill at the date of maturity?
The Atony Ltd. company raised $1.5m through a 10-year bond issue on the 31st of December 2020. The bond pays 3.4% per annum in coupons, with coupons paid quarterly. Calculate the price of the bond on the 12th of August 2025, given a market yield of 4.5% per annum. In your answer, identify whether the bond is trading at a discount or a premium, and explain the logic as to why this is the case. Note: You can write down the calculations by hand and attach a photo of your answer in the answer sheet.

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It should be noted that the yield received by the holder of the bank bill at maturity is approximately 21.4%.

How to calculate the value

Amount paid by the original discounter: $138,222

Face value received by the purchaser at maturity: $150,000

Holding period: 60 days - 25 days = 35 days

The yield can be calculated using the formula:

Yield = (Face Value - Purchase Price) / (Purchase Price) * (365 / Holding Period)

Yield = ($150,000 - $138,222) / ($138,222) * (365 / 35)

Yield ≈ 0.214 or 21.4%

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Carla Vista Corporation issued 2,800, 6%, 5-year, $1,000 bonds dated January 1, 2022, at 100. Interest is paid each January 1.
(a)Prepare the journal entry to record the sale of these bonds on January 1, 2022.
(b)Prepare the adjusting journal entry on December 31, 2022, to record interest expense

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(a) A journal entry debiting Cash for $2,800,000 and crediting Bonds Payable for $2,800,000. (b) Journal entry on December 31, 2022, debiting Interest Expense for $168,000 and crediting Interest Payable for $168,000 to account for the accrued interest expense on the bonds.

The journal entry to record the sale of the bonds on January 1, 2022 would be as follows:

Date: January 1, 2022

Account Debit Credit

Cash $2,800,000

Bonds Payable $2,800,000

The company received cash of $2,800,000 from the issuance of 2,800 bonds at $1,000 each. The Bonds Payable account represents the liability for the bonds issued.

The adjusting journal entry on December 31, 2022, to record interest expense would be as follows:

Date: December 31, 2022

Account Debit Credit

Interest Expense $168,000

Interest Payable $168,000

The bonds have a stated interest rate of 6% annually, so the interest expense for one year would be calculated as: $2,800,000 (bonds face value) × 6% (interest rate) = $168,000. Since the interest payment date is on January 1, the company needs to accrue interest expense for the portion of the year that has passed (from the issuance date to December 31, 2022). The Interest Payable account represents the accrued interest that is payable on the next interest payment date.

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Despite grappling with severe shortages in food and medicines amid the debilitating coronavirus pandemic, the Communist-nun island nation of Cuba plans to develop and export its own Covid-19 vaccines by the end of the year. So far, the country has announced five coronavirus vaccine candidates, two of which (Soberana 2, Abdala) are in their final phase 3 trials. Last month, researchers at the Finlay Institute in Havana announced that their Soberana 2 vacoge appears to be highly effective and is entering the final stage of clinical trials. Cuba plans to develop and export its own Covid-19 vaccines by the end of the year Prime Minister of India has appointed you as the chairperson to study the above mentioned vaccines and provide him with recommendation on whether to procure these vaccines, if so how many and by when He has given complete freedom to you to from your own group/team. In this context briefly answer the following

a. Would you use group or team? Provide appropriate justification for your answer
b. What is the purpose of the group/team?
c. Which type of group/team you will form and why?

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For studying the vaccines and providing recommendations on whether to procure these vaccines, if so how many and by when, a team should be formed.

a) This is because a team is a group of people working together towards a common goal or objective that requires collective effort. In this case, the goal is to study the vaccines and provide recommendations, which requires a collaborative effort among members. Thus, forming a team would be more appropriate.

b)The purpose of the team is to study the vaccines and provide recommendations on whether to procure these vaccines, if so how many and by when.

c)I will form a cross-functional team for studying the vaccines and providing recommendations. This is because cross-functional teams are composed of individuals from different functional areas who work together to achieve a common goal. In this case, the goal is to study the vaccines and provide recommendations on whether to procure these vaccines, if so how many and by when. Since the team members come from different backgrounds and bring diverse perspectives and expertise, they are better equipped to handle complex problems and make informed decisions. Therefore, forming a cross-functional team would be more appropriate.

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The Consolidated Statement of Financial Position 12. What is meant by the term "capital structure"? 13. Calculate and explain the following ratios for the current & the prior year: a. Debt Ratio b. Equity Ratio c. Interest Coverage Ratio Is the change in each ratio favorable or unfavorable? How does this relate to overall risk with respect to investing in the shares of Big Rock? (Hint: Consider the pro's & cons of debt versus equity financing in your discussion.) 14. In the Equity section of the Statement of Financial Position, I see negative numbers for 2018 and 2017 called Accumulated Deficit? What does this mean? 15. What is liquidity and how is Big Rock doing with its liquidity position this year? Is it better or worse than last year? Calculate and explain the following ratios: a. Current Ratio b. Quick Ratio 16. Cash flows from regular operations are dependent on the ability to sell inventory and collect cash on credit sales. How many days on average would it take for Big Rock to sell finished goods inventory and collect cash from credit customers? Calculate and explain the following ratios: a. Days to Sell Inventory b. Average Collection Period Note to Students: Use ending balances for receivables and inventory balances instead of average balances. Also, for 13(a), do not include inventory related to raw materials, containers, or brews in progress as only completed brews would be sold to customers. 17. Note 11 to the financial statements shows an A/R Aging. What is this? Are there any items of concern when you examine the A/R Aging in 2018 relative to the prior year?

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12. Capital structure" refers to the mix of different sources of funds used by a company to finance its operations and investments.

13. a. Debt Ratio: This ratio measures the proportion of a company's assets that are financed by debt.

13. b. Equity Ratio: This ratio measures the proportion of a company's assets that are financed by equity. It is calculated by dividing total equity by total assets.

13.c Interest Coverage Ratio: This ratio measures a company's ability to cover its interest expenses with its operating income.

14. Accumulated Deficit refers to the cumulative amount of net losses incurred by a company since its inception that have not been offset by subsequent profits.

15. Liquidity refers to a company's ability to meet its short-term obligations using its current assets.

16. a. Days to Sell Inventory: This ratio measures the average number of days it takes for a company to convert its finished goods inventory into sales.

16. b. Average Collection Period: This ratio measures the average number of days it takes for a company to collect cash from its credit customers.

17. An A/R Aging report provides a breakdown of accounts receivable based on the age of outstanding invoices.

12. "Capital structure" refers to the mix of different sources of funds used by a company to finance its operations and investments. It represents the proportion of debt and equity in a company's long-term financing. Debt represents borrowed funds that need to be repaid with interest, while equity represents the ownership interest of shareholders.

13. a. Debt Ratio: This ratio measures the proportion of a company's assets that are financed by debt. It is calculated by dividing total debt by total assets. A higher debt ratio indicates a higher level of debt relative to assets.

b. Equity Ratio: This ratio measures the proportion of a company's assets that are financed by equity. It is calculated by dividing total equity by total assets. A higher equity ratio indicates a higher level of equity financing.

c. Interest Coverage Ratio: This ratio measures a company's ability to cover its interest expenses with its operating income. It is calculated by dividing operating income by interest expenses. A higher interest coverage ratio indicates a greater ability to meet interest obligations.

14. It indicates that the company has experienced periods of losses exceeding its profits over the years. Negative accumulated deficit balances suggest a historical financial underperformance.

15. a. Current Ratio: This ratio compares current assets to current liabilities and measures the company's ability to pay off its short-term obligations.

b. Quick Ratio: This ratio, also known as the acid-test ratio, excludes inventory from current assets as it may not be readily convertible to cash. It provides a more conservative measure of liquidity. A higher quick ratio indicates better short-term liquidity.

16. a. Days to Sell Inventory: This ratio measures the average number of days it takes for a company to convert its finished goods inventory into sales. It is calculated by dividing the average inventory by the cost of goods sold per day.

b. Average Collection Period: This ratio measures the average number of days it takes for a company to collect cash from its credit customers. It is calculated by dividing the average accounts receivable by the average daily credit sales.

17. When examining the A/R Aging in 2018 relative to the prior year, it is important to look for any significant changes in the aging categories. An increase in the aging categories or a higher proportion of long-overdue receivables may indicate challenges in collecting outstanding amounts, potentially affecting cash flows and liquidity. It is crucial to analyze the reasons behind any adverse changes and take appropriate actions to mitigate credit risks and improve collection processes.

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6 9 12 ! What is the unifying force of quality? Customer satisfaction Leadership Training Organizational culture
Light bulb L50 (minimum length of time until 50% of the bulbs are burned out and 50% a

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1- The unifying force of quality is D) Organizational culture.

2- The quality "dimension" indicated by the light bulb L50 (minimum length of time until 50% of the bulbs are burned out and 50% are still operating) is B) Durability.

1- Organizational culture is the underlying values, beliefs, and behaviors that guide the actions of individuals within an organization. It serves as a unifying force that shapes and influences how quality is perceived and pursued throughout the organization. A strong organizational culture that emphasizes and prioritizes quality can have a significant impact on various aspects of the organization, such as customer satisfaction, leadership, and training.

By fostering a culture that values quality, organizations can create an environment where employees are motivated to deliver high-quality products or services, customer satisfaction is prioritized, and leaders actively support and promote quality initiatives. Thus, organizational culture acts as the unifying force that aligns and integrates different aspects of quality within an organization.

2-Durability refers to the ability of a product to withstand wear, pressure, or damage over time. The light bulb L50, which measures the minimum length of time until 50% of the bulbs are burned out and 50% are still operating, is an indication of the durability of the light bulbs. It shows how long the bulbs can continue to function without burning out or failing. This dimension is specifically related to the longevity and reliability of the light bulbs

. By measuring the L50 value, manufacturers and consumers can assess the durability and expected lifespan of the light bulbs. Therefore, the quality dimension indicated by the light bulb L50 is Durability.

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the complete question is:

1-What is the unifying force of quality?

A- Customer satisfaction

b-Leadership:

c- Training

D- Organizational culture

2-Light bulb L50 (minimum length of time until 50% of the bulbs are burned out and 50% are still operating) is an indication of this quality "dimension"

a) Serviceability

b) Durability

C)Reliability

d) Performance

Assume that sales are expected to increase by 4% next year, core profit margin is expected to be 12% of sales, and current NOA is expected to grow at the same growth rate of sales. If the required return on operations is 8%, current sales are $898664, current NOA is $387094, what is the expected ReOI for the coming year?

Answers

Given information are as follows Current sales, Sales are expected to increase by 4%, core profit margin is expected to be 12% of sales, the current NOA is expected to grow at the same growth rate of sales, and required return on operations is 8%.

Now, we need to determine the expected Re OI for the coming year. We can start solving the problem by finding the expected NOA for the coming year. The formula to calculate the expected NOA is; Expected

NOA = Current NOA x (1+sales growth rate)

Expected NOA = $387,094 x (1+4%)

Expected NOA = $402,697

Next, we can find the expected sales for the coming year.

The formula to calculate the expected sales is;

Expected Sales = Current Sales x (1+sales growth rate)

Expected Sales = $898,664 x (1+4%)

Expected Sales = $933,396

Now, we can find the expected Re

OI for the coming year using the following formula;

Expected ReOI = (Expected Sales - Expected Operating Expenses) x (1 - Tax Rate) - Expected Required Return on Operations

We can find the expected operating expenses by multiplying the expected sales by the expected cost of goods sold. The expected cost of goods sold is

Expected Cost of Goods Sold = Expected Sales x (1 - Core Profit Margin)

Expected Cost of Goods Sold = $933,396 x (1 - 12%)

Expected Cost of Goods Sold = $819,609

We can now find the expected Re OI by using the following formula

Expected Re OI = ($933,396 - $819,609) x (1 - 35%) - 8%

Expected Re OI = $96,416 x 0.65 - 8%

Expected Re OI = $60,501.6 - 8%

Expected Re OI = $55,701.52

Therefore, the expected Re OI for the coming year is $55,701.52.

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How to reduce income tax? Check all applicable answers. Open a health Savings Account Contribute to a Roth retirement account Do a side gig or a freelance job Get a higher education credit on your college expenses Claim European travel expenses on your home business selling cookies and juices to local scools. Contribute to a Traditonal retirement account

Answers

There are several ways that can be used to reduce the amount of income tax you pay. The most common strategies are:Contributing to a Traditional retirement account.Opening a health savings account.Contributing to a Roth retirement account.Doing a side gig or freelance job.Claiming European travel expenses on your home business.

Several methods for reducing your income tax bill are described in more detail below:Contributing to a Traditional retirement account:

A Traditional IRA or 401(k) is a pre-tax retirement account. Any amount contributed to the account is tax-deductible, and it reduces your taxable income for the year. Contributions are taxed when they are withdrawn from the account.Opening a health savings account:

A health savings account, or HSA, is a tax-advantaged savings account. It is used in combination with a high-deductible health insurance plan. Money deposited in an HSA is tax-deductible, and any interest or gains are tax-free. Withdrawals for medical expenses are also tax-free.Contributing to a Roth retirement account:

A Roth IRA or 401(k) is an after-tax retirement account. Contributions are made with money that has already been taxed. However, withdrawals are tax-free.Doing a side gig or freelance job:

Working a side gig or freelance job can help you earn extra income. These jobs often provide tax benefits, such as the ability to deduct expenses related to your work.

Additionally, self-employed individuals may qualify for certain tax credits.Claiming European travel expenses on your home business:

If you sell cookies and juices to local schools, you may be able to claim European travel expenses as a business deduction. However, this strategy may be risky, as it could be subject to scrutiny by the IRS.Getting a higher education credit on your college expenses:

If you pay college tuition for yourself or a dependent, you may be eligible for a tax credit. The American Opportunity Tax Credit and the Lifetime Learning Credit are two tax credits that are available to eligible individuals.

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a. Issues relating to WACC and after tax cost.
b. Dividend growth model approach.
c. Usage of a single WACC and its challenges.

Answers

A. One of the important concepts in corporate finance is the weighted average cost of capital (WACC), which represents the average after-tax cost of a company's sources of financing, such as debt and equity. The WACC is used as a discount rate to evaluate the net present value of a project or an acquisition, and to compare it with the expected return.

B. There are different methods to estimate the WACC, depending on the assumptions and data available. One of them is the dividend growth model approach, which uses the current dividend per share, the expected dividend growth rate, and the current stock price to calculate the cost of equity. This method assumes that dividends grow at a constant rate and that the stock price reflects the present value of future dividends.

C. Another issue related to WACC is how to deal with situations where a company has multiple projects or divisions with different risks and costs of capital. Using a single WACC for all projects may lead to over- or under-investment in some cases, as it does not reflect the specific risk-return trade-off of each project. A possible solution is to use different WACCs for different segments or risk classes, based on their respective beta, debt ratio, and market conditions.

About Dividend

Dividend is the distribution of company profits to shareholders based on the number of shares owned. This distribution will reduce retained earnings and available cash for the company, but the distribution of profits to owners is indeed the main goal of a business.

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Crane Manufacturing Company uses a job order cost system and keeps perpetual inventory records

June

1 Purchased raw materials for $25,200 on account.

8 Raw materials requisitioned by production:

Direct

materials

Indirect

$10,080

materials

1.260

15

Paid factory utilities, $2.646 and repairs for factory equipment, $10,080.

25

25

Incurred $114.000 of factory labor

Time tickets indicated the following

Direct Labor

(7.000 hrs $12

per hel

$84,000

Indirect Labor

(3.000 hrs $10

30,000

App

hou

$114.000

25 Applied manufacturing overhead to production based on a predetermined overhead rate of $9 per direct labor hour worked.

28 Goods costing $18,120 were completed in the factory and were transferred to finished goods inventory.

30 Goods costing $15,120 were sold for $20,120 on account.

Answers

Based on the information provided, we can prepare the journal entries for the transactions that occurred in June in Crane Manufacturing Company:

June 1: