Answer:
a. $65,000
Explanation:
Calculation for the contribution margin for March
Total sales 160,000
Less total variable 95,000
Contribution margin 65,000
(160,000-95,000)
Therefore the The contribution margin for March is: $65,000
BBQ Corporation has a target capital structure that is 70 percent equity, 30 percent debt. The flotation costs for equity issues are 15 percent of the amount raised; the flotation costs for debt are 8 percent. If BBQ needs $150 million for a new manufacturing facility, what is the cost when flotation costs are considered?
a) $130.65 million
b) $150 million
c) $165.42 million
d) $172.22 million
e) $185 million
Answer:
d) $172.22 million
Explanation:
given data
equity = 70 %
debt = 30 %
flotation costs equity = 15 %
flotation costs debt = 8 %
BBQ = $150 million
solution
first we get here weighted average flotation cost that is express as
weighted average flotation cost = ( Flotation cost debt × Weight debt ) + ( Flotation cost equity × Weight equity ) .................1
put here value and we get
weighted average flotation cost = (8% × 0.30) + (15% × 0.70)
weighted average flotation cost = 0.024 + 0.105
weighted average flotation cost = 0.129 = 12.9%
and
now we get here cost of funds that is express as
Cost of funds = Amount raised ÷ (1 - Weighted average floatation cost) .............2
put here value we get
Cost of funds = [tex]\frac{150,000,000}{1-0.129}[/tex]
Cost of funds = [tex]\frac{150,000,000}{0.871}[/tex]
Cost of funds = $172,215,844
so correct answer is d) $172.22 million
The start up costs for a project are $25,000. The cost of capital for the firm is 12%. The sum of the present value of the cash flows for the first three years is $26,420.14.
Required:
Compute the net present value for the project.
Answer:
net present value = $1,420.14
Explanation:
given data
start up costs = $25,000
cost of capital = 12%
present value of the cash flows = $26,420.14
solution
we get here net present value will be express as here
net present value = present value of the cash flows for the first three years - start up costs ........................1
put here value and we get
net present value = $26,420.14 - $25,000
net present value = $1,420.14
Governments usually take steps to regulate market conditions when:
O A. too many businesses engage in competition.
O B. research and development costs increase.
O c. monopolies act in ways that hurt consumers.
O D. more similar businesses are allowed to open.
Answer:
C monopolies act in ways that hurt consumers
Trust
Answer:
c
Explanation:
The composition of the Fingroup Fund portfolio is as follows:_________.
Stock Shares Price
A 200,000 $35
B 300,000 40
C 400,000 20
D 600,000 25
The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $30,000. There are 4 million shares outstanding. What is the net asset value of the fund?
Answer: $10.49
Explanation:
Net Asset Value is the equity of the portfolio divided by the number of shares outstanding.
Equity = Assets - Liabilities
So,
Net Asset Value = (Assets - Liabilities) / No. of shares outstanding
Assets = (200,000 * 35) + (300,000 * 40) + (400,000 * 20) + (600,000 * 25)
= $42,000,000
Liabilities will be the accrued management fee.
Net Asset Value = (42,000,000 - 30,000) / 4,000,000
= 10.4925
= $10.49
On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $9,000 face value and 7% interest. On October 30, the journal entry to record the collection of the note should include a a.Interest Revenue for $358. b.Credit to Interest Revenue for $158. c.Notes Receivable for $258. d.Interest Receivable for $58.
Answer:
b.Credit to Interest Revenue for $158.
Explanation:
the journal entry to record the acceptance of the note receivable:
August 1, note receivable accepted from Hsu Company
Dr Notes receivable 9,000
Cr Service revenue 9,000
the journal entry to record the collection of cash:
October 30, cash collected from Hsu Company
Dr Cash 9,158
Cr Notes receivable 9,000
Cr Interest revenue 158
The ________ measures the return on owners' (both preferred and common stockholders) investment in the firm.
A) net profit margin
B) price/earnings ratio
C) return on equity
D) return on total assets
Answer:
C) return on equity
Explanation:
The return on equity determines the financial performance of the company. It could be calculated by dividing the net income from the owners equity as according to the accounting equation, the owners equity could be find out by deducting the liabilities from the assets
So here the equity could be of both types i.e. common and preferred
Therefore the option c is correct
Last month the balance on your credit account was $785. Your new balance is $540. What percent of your total balance did you pay?
Answer:
31.21%
Explanation:
The balance last month was $785
The new balance is $540
It means a payment of $785- $540 was made
=$785 - $540
=$245
As a percentage
=$245/$785 x 100
=0.3121 x 100
=31.21%
Answer: 31%
Explanation: I just got it right
At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $46,000 with a yield to maturity of 5 percent.Given that she will not actually receive any interest payments until the bond matures in 10 years, how much interest income will she report this year assuming semiannual compounding of interest?
Answer:
Semiannual compounding of interest = $2,328.75
Explanation:
Given:
Semi annual rate = 5/2 = 2.5 = 0.025
P = $46,000
Find:
Semiannual compounding of interest
Computation:
Semiannual compounding of interest = 46,000[1 - (1 + 0.025)²]=
Semiannual compounding of interest = $2,328.75
If, at a good's current price, the quantity demanded is 2,000 units and the quantity
supplied is 1,000 units then:
A) the current price is below the equilibrium price.
B) producers are not responsive to price changes.
C) the current price is above the equilibrium price.
Answer:
C.
Explanation:
Because there is more demand with this good, the current price projects how the sellers are reacting to the market. If there is a shortage of goods being supplied to a market then this means that the sellers price is too high because more people (who arent willing to pay for it for so much) are wanting the product.
During the year, Hamlet Inc. paid $24,000 to have bond certificates printed and engraved, paid $90,000 in legal fees, paid $15,000 to a CPA for registration information, and paid $230,000 to an underwriter as a commission. What is the amount of bond issue costs?A. $360,000.
B. $26,000.
C. $401,000.
D. $186,000.
Answer:
$359,000
Explanation:
Total Bond issue costs can be calculated by adding all the cost related to the issue of bond.
Bond Certificate printing cost = $24,000
Legal fees paid = $90,000
CPA registration = $15,000
Underwriting Commission = $230,000
Total Bond issue costs = $359,000
After adding all the cost we reached at 359,000 and its closest to Option A 360,000
Fortune Company had beginning raw materials inventory of $16,000. During the period, the company purchased $92,000 of raw materials on account. If the ending balance in raw materials was $10,000, the amount of raw materials transferred to work in process is
Answer:
The amount of raw materials transferred to work in process is $98,000.
Explanation:
Given that, at the beginning of its business operations, Fortune Company had a raw material inventory of $ 16,000 and that, during the business year, it acquired another quantity of raw materials for $ 92,000, the total of raw materials in the company's stock had a total value of $ 108,000 (16,000 + 92,000).
Now, if at the end of the balance the value of the raw materials was $ 10,000, the amount of raw material that was incorporated into the production process was a value of $ 98,000 (108,000 - 10,000).
Jane bought a $3,000 audio system and agreed to pay for the purchase in 10 equal annual installments beginning one year from today. The interest rate is 12%. What is the amount of the annual installment?
Answer:
Jane
The amount of the annual installment is:
$530.98
Explanation:
Present value of audio system = $3,000
Interest rate (r) = 12%
Number of years for installments (n) = 10 years
The future value = PV * (1 + r)∧n
= $3,000 * (1 + 0.12)∧10
= Future value of the audio system
= $9,318 ($3,000 * 3.106)
Jane will need to contribute $530.98 at the end of each period to reach the future value of $9,318.00.
From online financial calculator:
FV (Future Value) $9,318.00
PV (Present Value) $3,000.15
N (Number of Periods) 10.000
I/Y (Interest Rate) 12.000%
PMT (Periodic Payment) $530.98
Starting Investment $0.00
Total Principal $5,309.78
Total Interest $4,008.22
What's the future value of $55,000 after 20 years if the appropriate interest rate is 3%, compounded semiannually?
Answer:
$99,771
Explanation:
future value = present value x (1 + interest rate)ⁿ
present value = $55,000interest rate = 3% / 2 = 1.5% semiannualn = 20 years x 2 = 40 semiannual periodsfuture value = $55,000 x (1 + 1.5%)⁴⁰ = $55,000 x 1.81402 = $99,771
When interest is compounded semiannually, the effective interest rate is slightly higher than when it is compounded annually.
effective interest rate = (1 + 3%/2)² - 1 = 3.0225%
Hank owns a gym called Ultimate Fitness. During the past year, Hank sold some equipment and other assets to upgrade his facility. He sold an elliptical trainer for $400. The buyer also included a juicer machine worth $100. The elliptical trainer had an original cost of $1500 and had accumulated depreciation for tax purposes of $800. What is Hank's realized gain or loss on the sale?A) Loss of $1000B) Loss of $200C) Loss of $1100D) Loss of $300
Answer:
B) Loss of $200
Explanation:
gain/loss resulting from the exchange = total consideration received - asset's basis
assets's basis = $1,500 - $800 = $700total consideration received = $400 + $100 (juicer machine) = $500gain/loss resulting from the exchange = $500 - $700 = -$200
In this case, Hank can report a net loss resulting from the exchange since the consideration received in exchange for the elliptical trainer was lower than its book value.
The government of Paulaville decides to set prices of wheat. Calculate the amount of the shortage or surplus if the government sets a price floor at $2.
Answer:
I have uploaded the picture with the relevant information below.
Explanation:
We can see in this picture that the market equilibrium is met at a price of $5, thus, $5 is the equilibrium price, because demand and supply are both 125 at this point.
If the govenment sets a price floor of $2, there will be no effect, because the price floor is non-binding.
A non-binding price floor is a minimum price set by the government that is actually lower that the equilibrium market price. In this case, the price of the market will be allowed to go to $5, and reach equilibrium, so the policy osf setting the $2 price floor will have no effect.
When management structures the organization, it clarifies who gets to make decisions, how many people report to one manager, and how many different departments the company needs in order to operate effectively.
Answer:
True.
Explanation:
When management structures the organization, it clarifies who gets to make decisions, how many people report to one manager, and how many different departments the company needs in order to operate effectively.
Basically, structuring an organization typically involves making strategic decisions between choosing decentralization or centralization decision-making policy.
Hence, structuring an organization includes making strategic decisions with respect to span of control such as stating or deciding on how many employees will report to a manager, functions of each managers and the departmentalization of each department in the organization so as to successfully achieve its aims, goals and objectives.
A charitable corporation buys a new piece of land with plans to start building a hospital in two years. On the next property tax assessment date, the land is still vacant, and construction has not begun. In most states, what is the most likely result of the charity's petition for exemption from real estate taxes?A. Because the charity owns the land, the property is exempt.
B. Because the land is not being used, the property is not exempt.
C. If building permits have been issued, the property is exempt.
D. If the charity is a church, the property is exempt.
Answer: B. because the land is not being used, the property is not exempt
Explanation:
From the information given in the question, we are told that a charitable corporation buys a new piece of land with plans to start building a hospital in two years and that as at the the next property tax assessment date, the land is still vacant, and construction work has not begun on the land.
The most likely result of the charity's petition for exemption from real estate taxes will be that the property will be that because the land is not being used, the property is not exempt.
Definitions Terms
1. Employees affected by a budget help in preparing it.
2. Planning future business actions and expressing them as formal plans.
3. A comprehensive business plan that includes operating, investing, and financing budgets.
4. Summarizes the effects of investing activities on cash.
5. Shows expected cash inflows and outflows and helps determine financing needs.
6. An approach that requires all expenses to be justified for each new budget.
7. A formal statement of future plans, usually expressed in monetary terms.
8. Approach in which top management passes down a budget without employee input.
Answer:
1. Employees affected by a budget help in preparing it. - PARTICIPATORY BUDGETING.
2. Planning future business actions and expressing them as formal plans. - BUDGETING.
3. A comprehensive business plan that includes operating, investing, and financing budgets. - MASTER BUDGET.
4. Summarizes the effects of investing activities on cash. - CAPITAL EXPENDITURE BUDGET.
5. Shows expected cash inflows and outflows and helps determine financing needs. - CASH BUDGET.
6. An approach that requires all expenses to be justified for each new budget. - ZERO-BASED BUDGET.
7. A formal statement of future plans, usually expressed in monetary terms. - BUDGET
8. Approach in which top management passes down a budget without employee input. - TOP-DOWN BUDGETING.
You get a $3,000 loan at 9% interest for 120 days. The lender uses a 365-day year. How
much will you owe on the maturity date?
Answer:
$3,088.80
Explanation:
Note that the loan is meant for 120days , however, the interest rate quoted is on an annual basis, hence, the interest for 120 days is 2.96% ( 9%*120/365).
It is equally important to note that at maturity the loan principal and the interest accrued thus far for 120 days are repayable to the lender as computed below:
total repayment=$3000+($3000*2.96% )
total repayment=$3000+$88.80
total repayment=$3,088.80
A major advantage of the weighted average method of inventory costing is that:_________ a. cost flows correspond with the physical flow of merchandise. b. it matches current costs with revenues. c. recent costs are assigned to the ending inventory balance. d. it is relatively easy to apply.
Answer:
The answer is "Option d".
Explanation:
In the inventory costing method, the actual cost is fixed to an identifiable product segment with using the weighted average method, the prices of its products for sale are divided into the number of products still in the store. Its mean weight of each component was calculated with this calculation. Its mean value consists of the sum of all factors multiplied by mass and instead divided by mass sum.
You purchase a Par Value $1,000, 9% coupon, two-year maturity bond for $990. What is the annual required rate of return (YTM)?
Answer:
the annual required rate of return is 9.57%
Explanation:
The computation of the required rate of return is shown below:
Given that
Future value = $1,000
Present value = $990
PMT = $1,000 × 9% = $90
NPER = 2
The formula is shown below:
=RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the annual required rate of return is 9.57%
What happens over time to the real cost of purchasing a home, if the mortgage payments are fixed in nominal terms and inflation is in existence? (A) The real cost is constant. (B) The real cost is increasing. (C) The real cost is decreasing. (D) The price index must be known to answer this question.
Answer:
(C) The real cost is decreasing.
Explanation:
1 + real rate = (1 + nominal rate)/(1+ inflation)
So, with existence of inflation, real rate cost will be decreasing after each period. After each period, it will be found out by dividing with inflation rate in the way shown above and added multiplicatively.
why does location matter?
answer: you need to know where your at
Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million, and it reports net income of $1.8 million for 2020. Safestyle declares no dividends and has no other comprehensive income. Goodwill from the acquisition was impaired by $1 million in 2019 and $500,000 in 2020. Potash uses the complete equity method to report its investment in Safestyle on its own books. Support What is the December 31, 2020 balance for Investment in Safestyle, reported on Potash's books?
A. $53,300,000
B. $52,000,000
C. $50,000,000
D. $54,800,000
Answer: A. $53,300,000
Explanation:
Year 2019 balance for Investment
= Cash + Net income - amortization
Net income = Beginning retained earnings 2020 - Beginning retained earnings 2019
= 11 - 8
= 3 million
Balance 2019 = 50 + 3 - 1
= $52 million
Year 2020 balance
= Opening balance + Net income - amortization
= 52 + 1.8 - 0.5
= $53.3 million
= $53,300,000
A company had net sales of $760,200 and cost of goods sold of $547,400. Its net income was $19,340. The company's gross margin ratio equals:______.a. 18.2%.b. 25.4%.c. 28.0%.d. 35.3%.e. 38.9%.2. The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.A. TrueB. False3. Paid-in capital is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock.A. TrueB. False'
Answer:
1. A company had net sales of $760,200 and cost of goods sold of $547,400. Its net income was $19,340. The company's gross margin ratio equals:______
c. 28.0%.
2. The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.
A. True
3. Paid-in capital is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock.
A. True
Explanation:
Gross profit margin is calculated by dividing the gross profit by the sales and multiplying by 100. In this case, the gross profit is $212,800 ($760,200 - $547,400). The amount, $212,800, then divided by $760,200 and multiplied by 100 to obtain approximately 28%.
The dollar is the monetary unit for all business transactions conducted in the United States. The accounting assumption behind the monetary unit means that all transactions conducted in the United STates are reported in dollars.
A corporate bond is quoted at a price of 98.96 and has a coupon rate of 4.8 percent, paid semiannually. What is the current yield?
A) 4.24 percent
B) 4.85 percent
C) 5.36 percent
D) 5.62 percent
E) 4.66 percent
Answer:
B) 4.85 percent
Explanation:
The computation of the current yield is shown below:
As we know that
Current yield is
= Coupon rate ÷ Price of the corporate bond
= 4.8% ÷ 98.96
= 4.85%
Hence, the current yield is 4.85%
Therefore the correct option is B.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
When an increasing trend exists in the data and a single exponential smoothing forecast method is used, the forecast will:_______.
a) predict demand perfectly
b) generally underestimate demand
c) capture the trend
d) increase the trend
e) none of the above
Answer:
c) capture the trend
Explanation:
The exponential smoothing is a forecasting method that is used for a time series and the data i.e. univariate. It could be extended for data support that have the chronological trend
Here in the given situation, if the trend i.e. increased in the data and the above method is used so in the case when the value of the alpha is more it would capture the trend but in the case when the value of the alpha is less so it also capture the demand but the demand is underestimated
Hence, the option c is correct
The exponential smoothing method is a time series forecasting method of the univariate data that is extended to support systematic trends and seasonal components.
his method is used when some trends may be present, weight-based on experimental and intuition and orderly data is less important. The single parameter controls the rate at which the pbservatiosna are influenced. While the double method is an extension of smoothing that adds support for trends in time series.Hence the option D is correct.
Learn more about the increasing trend that exists in the data and a single exponential smoothing.
brainly.com/question/20376850
Why is it important now for HR management to transform from being primarily administrative and operational to becoming more of an overall strategic contributor to the organization?
How have you seen this implemented in your workplace/former workplace?
Explanation:
Human resource management is increasingly relevant for a company to be successful, competitive and well positioned in the market. It is correct to affirm that it is important that HR ceases to be basically administrative and operational to become a general strategic contributor in a company due to the fact that management is going through a phase in which organizations have well-defined social and environmental responsibilities most demanded in a competitive and globalized world.
Therefore, the valorization of human capital in an organization is increasingly essential and strategic, because through professionals satisfied with their working conditions, well trained and motivated, the objectives are achieved more effectively, there is a greater attraction of quality professionals, greater innovation, greater productivity, continuous improvement of processes and the creation and maintenance of an organizational culture focused on ethical and collaborative practices in order to achieve organizational objectives.
An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is five percent, what is the current market value of the bond?
Answer:
Bond Price = $828.4091365 rounded off to $828.41
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 40
Total periods (n) = 20 * 2 = 40
r or YTM = 0.05 or 5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 40 * [( 1 - (1+0.05)^-40) / 0.05] + 1000 / (1+0.05)^40
Bond Price = $828.4091365 rounded off to $828.41
What budgeting style is used by Ford Motor company?
Answer:
Marketing
Explanation: