Answers
Answer:
13.28%
Explanation:
The computation of the coupon rate is shown below
But before that determine the PMT
Given that
NPER = 12 × 2 = 24
RATE = 10% ÷ 2 = 5%
PV = $1,226.50
FV = $1,000;
The formula is shown below
= PMT(RATE;NPER;-PV;FV;TYPE)
After applying the above formula, the monthly payment is
= $66.41 × 2
= $132.82
Now the coupon rate is
= $132.82 ÷ $1,000
= 13.28%
Related Questions
Question 4 of 10
Which one of these documents itemizes the closing costs and explains the terms of your loan?
O Appraisal
O Closing disclosure
Deed
O Affidavit
Continue
Answers
Limited partnership is best suited to rising large amount of capital.
True or false?
Answers
During lunch time, customers arrive at a postal office at a rate of lambda equals 36 per hour. The interarrival time of the arrival process can be approximated with an exponential distribution. Customers can be served by the postal office at a rate of mu equals 45 per hour. The service time for the customers can also be approximated with an exponential distribution. For each of the following questions, show your work and use the right notation.
Required:
Determine the utilization factor.
Answers
Answer:
the utilization factor is 4 ÷ 5
Explanation:
The computation of the utilization factor is shown below:
given that
Customer arrives at the rate of λ equivalent to the 36 per hour
And, Customers can be served by the postal office at a rate of μ equivalent to the 45 per hour
λ = 36 / hour
μ = 45 / hour
Now utilization factor is
P = λ ÷ μ
= 36 ÷ 45
= 4 ÷ 5
Thus, the utilization factor is 4 ÷ 5
Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31, the direct labor for this job equals $2,700.
Required:
Complete the journal entry.
Answers
Answer:
Date Account Title Debit Credit
January 31 Work in Process $540
Factory Overhead $540
Explanation:
Overhead is applies by linking it to direct labor.
Overhead is $20,000 when Direct labor is $100,000.
= 20,000 / 100,000
= 20%
The overhead for this job must therefore be:
= 20% * 2,700
= $540
Approximately what is the expected dollar rate of return on euro deposits if today's exchange rate is $1.18 per euro, next year's expected exchange rate is $1.10 per euro, and the euro interest rate is 5%?
Answers
Answer:
Dollar rate of return = 15.5%
Explanation:
The expected dollar rate would be the dollar equivalent of the future value of the Euro deposit converted at the exchange rate applicable in a years time .
The following steps would suffice
Step 1: Future value of 1 Euro
Future value of 1 Euro at 5% p.a = 1.05 Euro
Step 2: Dollar equivalent of the Euro future value
The Dollar equivalent of 1.05 Euro = 1.05× 1.10=1.155
Step 3: The Dollar rate of return
Dollar rate of return = Future value of deposit($)/initial deposit - 1
= (1.155/1) - 1 × 100
= 15.5%
Dollar rate of return = 15.5%
Presented below is information related to Pharoah Corporation for the current year. Beginning inventory $ 590,300 Purchases 1,472,500 Total goods available for sale $2,062,800 Sales revenue 2,455,000 Compute the ending inventory, assuming that (a) gross profit is 46% of sales, (b) gross profit is 60% of cost, (c) gross profit is 36% of sales, and (d) gross profit is 25% of cost.
Answers
Answer:
a. $948,888
b. $773,550
c. $1,237,680
d. $412,560
Explanation:
The Ending Inventory is calculated using the missing figure approach or the Gross Margin technique.
that is,
Ending Inventory = Cost of Goods Available for Sale - Cost of Sales
thus,
This can be clearly done by writing up a Trading Account as shown below for each scenario.
also remember,
Cost + Profit = Sales
so for those based on cost use this formula.
for example : gross profit is 60% of cost
will be : 100 % + 60 % = 160 %
Part a
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($948,888) ($1,113,912)
Gross Profit $948,888
Part b
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($773,550) ($1,289,250)
Gross Profit $773,550
Part c
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($1,237,680) ($825,120)
Gross Profit $1,237,680
Part d
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($948,888) ($1,113,912)
Gross Profit $948,888
Part a
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($412,560) ($1,650,240)
Gross Profit $412,560
Which of the following is true of the informal structure in an organization?
O A. It is formed through shared interests.
OB. It is easy to monitor and control.
O c. It is good at handling many routine tasks.
O D. It is slow to adapt to changing conditions.
Answers
Answer: i think A
Explanation:
AN IMPLIED CONTRACT CAN BEST BE DEFINED AS: WILL NOT BE RECOGNIZED AS ENFORCEABLE BY THE COURTS A TRUE FORM OF A FORMAL CONTRACT THE INTENTIONS OF THE PARTIES ARE INFERRED FROM THEIR CONDUCT BY THE COURT AS WELL AS THE CIRCUMSTANCES OF THE CONTRACT WHICH EXISTS IN THE EYES OF THE LAW, EVEN THOUGH THE PARTIES HAVE NOT IN ANY WAY INTENDED TO FORM THE CONTRACT
Answers
Answer: the intentions of the parties is inferred from their conduct by the court as well as the circumstances of the contract
Explanation:
An implied contract is referred to as an agreement that's legally-binding which was created due to the actions, or circumstances of the parties that were involved.
In an implied contract, the parties typically possess no written contract, but an obligation is created by the law based on the conduct of the parties involved.
What is marketing?explain the concept of marketing
Answers
Answer:
Marketing is the process of getting the right goods or services or ideas to the right people at the right place, time, and price, using the right promotion techniques and utilizing the appropriate people to provide the customer service associated with those goods, services, or ideas.
Explanation:
(hope this helps)
Iduna Company has adopted the dollar-value LIFO method in 2018. At December 31, 2018, the ending inventory at dollar-value LIFO is $103,000, with a price index of 1.00. At December 31, 2019, the ending inventory using year-end prices is $125,000. The price index is 1.3 in 2019. Round all dollar amounts to the nearest dollar. What is the ending inventory using dollar-value LIFO at December 31, 2019
Answers
Answer:
$96,154
Explanation:
Calculation to determine the ending inventory using dollar-value LIFO at December 31, 2019
First step is to calculate the Ending Inventory
Ending Inventory= $125,000/1.3
Ending Inventory =$96,154
Now let calculate the ending inventory using dollar-value LIFO at December 31, 2019
December 31, 2019 Ending inventory using dollar-value LIFO=$96,154* $1
December 31, 2019 Ending inventory using dollar-value LIFO= $96,154
Therefore the ending inventory using dollar-value LIFO at December 31, 2019 will be $96,154
Epicure Market prepares fresh gourmet entrees each day. On Wednesday, 80 baked chicken dinners were made at a cost of $3.50 each. A 10% spoilage rate is anticipated. At what price should the dinners be sold to achieve a 60% markup based on selling price
Answers
Answer:
The price of a Dinner= $6.22
Explanation:
Mark-up is the proportion of the product cost which is expected to be made as profit. In other words, it is profit expressed as a percentage of product cost.
To account for the spoilage rate of 10%, $3.50 unit cost would be consider as 90% of the cost. Thus, 100% of the cost would be given as follows:
Dinner cost = 100/(100-10)× 3.50= 3.89
The price of a Dinner = product cost + 60% of product cost
The price of a Dinner = 3.89 + 60%*3.89= $6.22
The price of a Dinner= $6.22
How can students experience "free rider" problems at school?
CHOOSE ALL THAT APPLY
Students who copy others students' homework.
Students who don't do their fair share of work on a group project, but expect to get the same grade as students who worked hard on the project.
Students who cheat off of a others student during an exam.
Answers
Answer:
All of the above
Explanation:
these are all reasons on how you can experience being a free rider
Sullivan Company has a Cash account balance of $8,112.62, and on September 30, the bank statement indicated a balance of $9,098.55. Using the following data, prepare a bank reconciliation and any necessary journal entries for Sullivan Company on September 30.
a. Deposits in transit amounted to $3,358.19.
b. Outstanding checks totaled $1,251.12.
c. The bank erroneously charged a $215 check of Solomon Company against the Sullivan bank account.
d. A $15 bank service charge has not yet been recorded by Sullivan Company.
e. Sullivan Company neglected to record $3,000 borrowed from the bank on a 10%, 6-month note. The bank statement shows the $3,000 deposit.
f. An NSF check in the amount of $640 from J. Martin in payment on account has been returned.
g. Sullivan Company recorded a $107 payment for repairs as $1,070.
Answers
Answer and Explanation:
The preparation of the bank reconcilliation statement is presented below:
Bank Books
Balance $9,089.55 $8,112.62
Add: deposit in transit $3,358.19 Add: note payable borrowed $3,000
Less: outstanding checks $1,251.12 Add: error in recording $963
Add: error by bank $215 ($1,070 - $107)
Less: bank charges $15
Less: NSF check $640
Updated balance $ 11,420.62 Updated balance $ 11,420.62
The journal entries are shown below:
On July 31
Cash $3,000
To Notes payable $3,000
(Being note payable is recorded)
Cash $963
To Repair expenses $963
(being error is recorded)
Bank charges $15
To Cash $15
(Being cash paid is recorded)
Account receivables $640
To Cash $640
(Being cash paid is recorded)
Buzz Lightyear has been offered an investment in which he expects to receive payments of $4,000 at the end of each of the next 10 years in return for an initial investment of $10,000 now. a. What is the IRR of the proposed investment
Answers
Answer:
IRR= 21.86%
Explanation:
Giving the following information:
Initial investment (PV)= $10,000
Cash flows (PMT)= $4,000 per year
Number or years (n)= 4
It is extremely difficult to calculate the IRR using the formula. We will use the financial calculator.
Function: CMPD
n= 4
I%= SOLVE = 21.86%
PV= 10,000
PMT= -4,000
IRR= 21.86%
Graymont Industries purchases Solvate, a chemical compound used in several of its products, from ChemMaster. ChemMaster has just increased the list price of Solvate to $6.10 per gallon. However, because Graymont purchases a high volume of Solvate, ChemMaster grants the company a 14 percent discount off the list price. Charges for shipping Solvate from ChemMaster to Graymont's factory are $130 for a shipment of twenty-five 49-gallon drums. Special storage requirements cost $0.59 per gallon.
Calculate Graymont's standard price for a gallon of Solvate. (Round answer to 2 decimal places, e.g. 3.51)
Answers
Answer:
the standard price for a gallon of Solvate is $5,942 per gallon
Explanation:
The computation of the standard price for a gallon of Solvate is shown below:
List Price $6.1 per gallon
Less: Discount at 14% 0.854 per gallon
Charges (130 ÷ (25 × 49) 0.106 per gallon
Special Storage $0.59 per gallon
Total Cost $5.942 per gallon
Hence, the standard price for a gallon of Solvate is $5,942 per gallon
XYZ company's prime costs total OMR 3,000,000 and its conversion costs
total OMR 7,000,000. If direct materials are OMR 2,000,000 and factory
overhead is OMR 6,000,000, then direct laboris
OMR 2,000,000 a
OMR 1,000,000 b
X
OMR 4,000,000
.c
OMR 3,000,000 d
OMR 3,500,000 e
Answers
Answer:
ok
Explanation:
Green Landscaping Inc. is preparing its budget for the first quarter of 2017. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected.
Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2021 and expected service revenues for 2022 are November 2021, $80,000; December 2021, $90,000; January 2022, $100,000; February 2022, $120,000; and March 2022, $140,000.
Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021, $14,000; January 2022, $12,000; February 2022, $15,000; and March 2022, $18,000.
Prepare the following schedules for each month in the first quarter of 2017 and for the quarter in total:
January February March Quarter
November
December
January
February
March
Total collections
Answers
Answer:
a-1. Total cash collection for the Quarter Ending March 31, 2022 = $336,000
a-2. Total cash payment for the Quarter Ending March 31, 2022 = $43,400
b-1. Account receivable balance = $68,000
b-2. Account payable balance = $7,200
Explanation:
Note: This question is not complete and contains different dates (2017 and 2022). The complete question is therefore provided and 2022 is picked as the date before answering the question. See the attached pdf file for the complete question with 2022 as the date.
The explanation of the answer is now given as follows:
a-1. Schedule of expected cash collections from clients.
Note: See part a-1 of the attached excel file for the Schedule of expected cash collections from clients.
From the attached excel file, we have:
Total cash collection for the Quarter Ending March 31, 2022 = $336,000
a-2. Schedule of expected payments for landscaping supplies.
Note: See part a-2 of the attached excel file for the Schedule of expected payments for landscaping supplies.
From the attached excel file, we have:
Total cash payment for the Quarter Ending March 31, 2022 = $43,400
b. Determine the following balances at March 31, 2022:
b-1. Accounts receivable
Account receivable balance = ($120,000*10%) + ($140,000*40%) = $68,000
b-2. Accounts payable
Account payable balance = $18,000*40% = $7,200
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.1 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.
1. Record the necessary entry for the scenarios given above.
2. Record the adjustments on December 31, 2018.
3. Prepare the journal entries on September 30, 2019, to record payment of the notes payable at maturity.
Answers
Answer:
1. Dr Cash $39.1 million
Cr Notes Payable $39.1 million
Dr Notes Receivable $39.1 million
Cr Cash $39.1 million
2. Dr Interest Expense $879,750
Cr Interest Payable $879,750
Dr Interest Receivable $879,750
Cr Interest Revenue $879,750
3. Journal entry for Precision Castparts
Dr Notes payable $39.1 million
Dr Interest expense $2,639,250
Dr Interest payable $879,750
Cr Cash $42,619,000
Journal entry for Midwest Bank
Dr Cash $42,619,000
Cr Notes receivable $39.1 million
Cr Interest receivable $879,750
Cr Interest revenue $2,639,250
Explanation:
1. Preparation of the journal entry to Record the necessary entry for the scenarios given .
Dr Cash $39.1 million
Cr Notes Payable $39.1 million
Dr Notes Receivable $39.1 million
Cr Cash $39.1 million
2. Preparation of the journal entry to Record the adjustments on December 31, 2018.
Dr Interest Expense $879,750
Cr Interest Payable $879,750
(39.1 million*9%*3/12)
Dr Interest Receivable $879,750
Cr Interest Revenue $879,750
(39.1 million*9%*3/12)
3. Preparation of the journal entry on September 30, 2016, to record payment of the notes payable at maturity
Journal entry for Precision Castparts
Dr Notes payable $39.1 million
Dr Interest expense $2,639,250
($39.1 million*9%*9/12)
Dr Interest payable $879,750
(39.1 million*9%*3/12)
Cr Cash $42,619,000
($39.1 million+$2,639,250+$879,750)
Journal entry for Midwest Bank
Dr Cash $42,619,000
($39.1 million+$2,639,250+$879,750)
Cr Notes receivable $39.1 million
Cr Interest receivable $879,750
(39.1 million*9%*3/12)
Cr Interest revenue $2,639,250
($39.1 million*9%*9/12)
Which of these is an example of a vision statement?
A. Educate our customers on our processes to help build customer
loyalty
B. Strive for profits without compromising our values.
C. To experience the emotion of competition, winning, and crushing
competitors.
D. We love making our jeans and we know people love wearing them.
Answers
Answer:
A
Explanation:
if the business explains why the public should buy there product the public would be more inclined to buy there product.
Answer: Its c
Explanation: Because I got it right you donut ^^ LOL
Assume that Clampett, Incorporated, has $200,000 of sales, $150,000 of cost of goods sold, $60,000 of interest income, and $40,000 of dividends. Assume that Clampett, Incorporated, never operated as a C corporation and that the corporate tax rate is 21 percent. What is Clampett, Incorporated's excess net passive income tax
Answers
Answer:
$21,000
Explanation:
Calculation to determine Clampett, Incorporated's excess net passive income tax
Using this formula
Excess net passive income tax = ( Interest income + Dividends ) × Tax rate
Let plug in the formula
Excess net passive income tax = ( $60,000 + $40,000 ) × 0.21
Excess net passive income tax = $21,000
Therefore Clampett, Incorporated's excess net passive income tax will be $21,000
The CAPM estimate of rs is equal to the risk-free rate, rRF, plus a risk premium that is equal to the risk premium on an average stock, (rM - rRF), scaled up or down to reflect the particular stock's risk as measured by its beta coefficient, bi. This model assumes that a firm's stockholders are ______________ diversified, but if they are ______________ diversified, then the firm's true investment risk would not be measured by _______________- and the CAPM estimate would _______________ the correct value of rs.
Answers
Explanation:
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Why is it difficult to maintain relations with multiple stakeholders?
A. Because different stakeholders may have conflicting goals.
B. Because not all stakeholder needs are well known.
C. Because stakeholders want to harm the organization.
D. Stakeholders don't understand the organization's goals.
Answers
Answer:
A
Explanation:
LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 percent coupon, paid semiannually, a current maturity of 17 years, and sell for $1,162. It has 100,000 bonds outstanding. The firm can issue new 20-year maturity semiannual bonds at the same cost of its current bonds but will incur flotation costs of $50 per bond (Hint: the coupon rate on the new bonds = the YTM on existing bonds). The firm could sell, at par, $100 preferred stock that pays a 12 percent annual dividend that is currently selling for $120. The firm currently has 1,000,000 shares of preferred stock outstanding. Rollins' beta is 0.94, the risk-free rate is 3.72 percent, and the market risk premium is 6 percent. The common stock currently sells for $100 a share and there are 5,000,000 shares outstanding. The firm's marginal tax rate is 40 percent.
Required:
What is the WACC?
Answers
Answer:
9.72%
Explanation:
Maturity = 34
Par-value = -1000
Coupon rate = 6%
Coupon PMT = -60
Value of bond = 1152
Semi-annual Yield = Rate(34, -60, 1162, -1000, 0, 0)
Semi-annual Yield = 5.00%
Annual Yield = 10%
Tax rate = 40%
After tax cost of debt = 10*(1-0.4)= 6%: Add: Flotation cost (5%) = 11%
Cost of preferred stock = Dividend/Price = 12/120 = 10%
Cost of equity = Risk free rate + Beta*Market risk premium
Cost of equity = 3.72 + 0.94*6
Cost of equity = 9.36%
Particulars Value per No of Market Weight Cost of Product
security securities value security
Bonds 1162 100000 116200000 0.15784 11 1.736213
P. stock 120 1000000 120000000 0.16299 10 1.62999
Equity 100 5000000 500000000 0.6792 9.36 6.35697
736200000 1 9.72317
So, the WACC of the firm is 9.72%
Predetermined Factory Overhead Rate Novus Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $1,257,500 Shop direct labor 550,000 Shop and repair equipment depreciation 91,000 Shop supervisor salaries 250,000 Shop property taxs 40,000 Shop supplies 15,000 Advertising expense 75,000 Administrative office salaries 175,000 Administrative office depreciation expense 12,500 Total costs and expenses $2,466,000 The average shop direct labor rate is $25 per hour. Determine the predetermined shop overhead rate per direct labor hour. $fill in the blank 1 per direct labor hour
Answers
Answer:
Predetermined manufacturing overhead rate= $18 per direct labor hour
Explanation:
First, we need to calculate the estimated overhead cost for the period:
Estimated overhead cost= Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies
Estimated overhead cost= 91,000 + 250,000 + 40,000 + 15,000
Estimated overhead cost= $396,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 396,000 / (550,000/25)
Predetermined manufacturing overhead rate= 396,000 / 22,000
Predetermined manufacturing overhead rate= $18 per direct labor hour
Burning one gallon of gasoline in a car releases approximately 20 pounds of CO2 into the atmosphere. One average person drives 60,000 miles in a car that average 30 miles per gallon (mpg), while another person drives 60,000 miles in a car that averages 20 mpg. Over the course of the 60,000 miles, how many fewer punds of CO2 are released by the 30 mpg car than by the 20 mpg car?
Answers
Answer: 20,000 pounds of CO₂
Explanation:
30 mpg car.
Number of gallons of gasoline used:
= 60,000 / 30
= 2,000 gallons
CO₂ released = 2,000 * 20
= 40,000 pounds
20 mpg car
Number of gallons used:
= 60,000 / 20
= 3,000 gallons
CO₂ released = 3,000 * 20
= 60,000 pounds
Difference:
= 60,000 - 40,000
= 20,000 pounds of CO₂
The number of fewer pounds should be 20,000 pounds of CO₂
The calculation is as follows:The Number of gallons of gasoline used:
= 60,000 ÷ 30
= 2,000 gallons
and,
CO₂ released = 2,000 × 20
= 40,000 pounds
Now
Number of gallons used:
= 60,000 ÷ 20
= 3,000 gallons
And,
CO₂ released = 3,000 × 20
= 60,000 pounds
So, the Difference is
= 60,000 - 40,000
= 20,000 pounds of CO₂
Learn more: https://brainly.com/question/994316?referrer=searchResults
The local police department gives a detective test. Everyone who takes the test must have been a police officer for at least five years. The people taking the exam are rated from highest to lowest based on their test scores. If a detective position becomes available, it is filled on the basis of who has the highest score. What best describes this practice?
Answers
Answer:
Internal Recruitment/Selection, based on merit.
Explanation:
The local police department gives a Detective test and these are the features of that test;
1. The test is for persons who are already police officers.
This is called internal sourcing / internal recruitment. Instead of having fresh candidates, the police department picked up on employed police officers.
2. Everyone sitting for the test has been a police officer for at least 5 years.
This quality shows that everyone sitting for the test has experience on the job of policing. This also means that the test candidates will be familiar with terms on the test script.
3. The criterion for selection of best candidate is score.
This is a merit selection, hence if an officer of 15 years scores 65% and an officer of 5 years scores 80%, the officer of 5 years takes the vacant detective position.
• The Vice President of Customer Service has expressed concern over a project in which you are involved. His specific concern is with the staff you have identified to work on a project to migrate the corporate website from the data center to the cloud. The project sponsor insists that you need to cut down on your project staff. You are the project manager. What resources do you think are really necessary for this project? How would you respond to the project sponsor to defend your staffing plan?
Answers
Answer: A. The VP of customer service is correct. Since the cost was not taken into account at the beginning of the project, the project should not go forward as planned. Project initiation should be revisited to examine the project plan and determine how changes can be made to accommodate customer service. B.
Explanation:
For each of the following situations, state whether total revenue received by the seller increases, decreases, or does not change.
a. If price elasticity of demand is -1.00 and price increases, total revenue.
b. If price elasticity of demand is -0.02 and price increases, total revenue
c. If price elasticity of demand is 5.00 and price increases, total revenue
d. If price elasticity of demand is-0.131 and price decreases, total revenue
e. If price elasticity of demand is -3.33 and price decreases, total revenue
Answers
Answer:
doesn't change
increases
decreases
decreases
increase
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
a. Demand is unit elastic and if price increases, quantity demanded would change by the same amount and total revenue would remain the same
b. Demand is inelastic. If prices increases, there would be little or no change in quantity demanded and revenue would increase
c. Demand is elastic. Increase in price would lead to a reduction in quantity demanded and total revenue would fall
Demand is inelastic, if prices are decreased, there would be little or no change in quantity demanded and revenue would fall
Demand is elastic. A decrease in price would increase the quantity demanded and total revenue would rise
is trading at 54.33. You decide to short sell 100 shares of their stock, providing 3100 in collateral to your broker. You hold the short position for one year and expect Comcast to pay a dividend of 1 per share. In one year, the stock price is 44. Assuming the brokerage account pays no interest on your cash, what is your return, relative to your collateral
Answers
Answer: 30.1%
Explanation:
Return = (Value of stock when shorted - Dividend - Value of stock when returning stock)/Capital employed
Dividend = 100 shares * $1 per share
= $100
Dividends are subtracted because they are owed to the shareholders the stock was borrowed from.
Value of stock when shorted = 54.33 * 100 = $5,433
Value of stock when returning stock = 44 * 100 = $4,400
= (5,433 - 100 - 4,400) / 3,100
= 30.1%
Spa Inc. gathered the following information related to its gift card sales for 2020, its first year of selling gift cards: Sales of nonrefundable gift cards, 2020$25,500 Gift card redemptions, 2020$18,360 Spa Inc. estimates that 95% of the value of gift cards sold in 2020 will be redeemed while 5% will remain unclaimed. Under the proportional method, what would Spa Inc. recognize for gift card breakage revenue in 2020
Answers
Answer: $969
Explanation:
Since 5% of the value of the gift card sold will be unclaimed, the amount claimed will be:
= $25500 - (5% × $25500)
= $25500 -(0.05 × $25500)
= $25500 - $1275
= $24225
We then find the percentage of the cards that have been redeemed already and this will be:
= $18360 / $24225
= 0.7579
= 76%
Therefore, breakage in revenue to be recognized will be:
= ($25500 × 5%) × 76%
= $1275 × 76%
= $1275 × 0.76
= $969