The expected return on the market portfolio is 14%. The risk-free rate is 6%. The expected return on SDA Corp. common stock is 13%. The beta of SDA Corp. common stock is 1.30. Within the context of the capital asset pricing model, _________.
Answer:
-.34%
Explanation:
Calculation to determine capital asset pricing model,
Alpha=.13-[.06+1.30(.14-.06)]
Alpha=.13-[.06+1.30(.08)]
Alpha=.13-[.06+0.104]=
Alpha=.13-0.164
Alpha=-.34%
Therefore Within the context of the capital asset pricing model, is -.34%
The charter of a corporation provides for the issuance of 99,983 shares of common stock. Assume that 38,266 shares were originally issued and 4,896 were subsequently reacquired. What is the amount of cash dividends to be paid if a $4 per share dividend is declared
Answer:
$1,337,480
Explanation:
Dividend is paid on outstanding shares. So, the amount of cash dividends to be paid = [38,266 - 4,896] * $4 = $33,4370 * $4 = $1,337,480
If the demand for meals at the Campus Café declines. This will result in...
What will happen to the equilibrium price,supply and quantity
Answer:The campus may have a surplus of cook food that will affect the schools budget
Explanation:
all this cook food will go to the garbage in not consumed anytime soon , the school board seeing this waste of food will probably reduced the food budget meaning less food for the students , and when the students start to eat again cafeteria food there will not be enough for everyone
Why would a Roth 401(k) investment plan allow you to invest the most amount of money?
Answer:
401k
Explanation:
investment plan allow you to invest the most amount of money? ... A Roth 401(k) plan takes money after tax has been removed from gross income, and has a contribution limit, but withdrawal is tax free. A Roth Individual Retirement Account allows you to draw a fixed amount that is not taxed.
Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 2.5 while the risk-free return is 9 percent and the expected return on the market is 14 percent. It has 7-year semiannual maturity bonds outstanding with a price of $787.22 that have a coupon rate of 8 percent. The firm is financed with $120,000,000 of common shares (market value) and $80,000,000 of debt. What is the after-tax weighted average cost of capital for Droz's, if it is subject to a 30 percent marginal tax rate
Answer:
see explanation
Explanation:
Weighted Average Cost of Capital (WACC) is the cost of a firm from permanent sources of capital pooled together.
WACC = Cost of equity x Weight of equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock
where,
Cost of equity = Return on Risk free rate + Beta x Risk Premium
= 9.00 % + 2.5 x (14.00 % - 9.00%)
= 21.50 %
Cost of debt :
similar
N = 7 x 2 = 14
p/yr = 2
pmt = ($787.22 x 8%) ÷ 2 =
fv = $787.22 x number of bonds
pv = $80,000,000
Always use the after tax cost of debt :
after tax cost of debt = interest x ( 1 - tax rate)
Neumann Corporation issues convertible preferred stock that is mandatorily redeemable five years from the date of issuance. During the last two years that the preferred shares are outstanding, investors may convert each one share of preferred stock to two shares of common stock. Prior to conversion or redemption, the preferred shares should be classified on the balance sheet as:
Answer:
Equity
Explanation:
The preferred shares should be classified on the balance sheet as equity. Equity is the residue after Liabilities are deducted from the Assets. They also represents owners investments in the company.
The preferred shares should be recorded as equity on the balance sheet. After Liabilities are subtracted from Assets, Equity is the remaining amount. They also symbolize the company's investments by its owners.
About Equity:
The worth of a company's own shares is referred to as equity. This is most commonly used in the context of a company's balance sheet, and its valuation is determined by a precise computation. More exactly, equity is a company's total, liquid value less any outstanding loans or liabilities. Understanding what this term signifies is critical to comprehending a company's finances.
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Starling Co. is considering disposing of a machine with a book value of $24,600 and estimated remaining life of five years. The old machine can be sold for $5,700. A new high-speed machine can be purchased at a cost of 65,300. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,300 to $19,600 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n)
Answer:
The answer is "decrease of $41,100".
Explanation:
5-year cost-saving =[tex](23300-19600)\times 5 = \$18,500[/tex]
old machine Sale value = [tex]\$5,700[/tex]
Differential effect on income = cost savings for 5 years +Sale value of old machine - purchase cost of the new machine
[tex]= 18500+ 5700 - 65300\\\\= - 41,100[/tex]
Wilson, an employee in a private-sector bank, has been suspected of stealing company funds and subsequently threatening and harassing some of his coworkers who refused to participate in his plans. Wilson, however, completely denies the accusations and maintains that he is innocent. Because of the lack of strong evidence, the ethics committee of the company decides to administer a polygraph test to Wilson. To ensure compliance with the rules of the Employee Polygraph Protection Act, which of the following should the committee do while conducting the test?
a. It should not inform Wilson or get his permission prior to conducting the test.
b. It should not allow Wilson to stop the test at any time depending on his personal will.
c. It should decide if Wilson is to be terminated or retained solely based on the results.
d. It should only use licensed, bonded examiners to conduct the test.
Answer: d. It should only use licensed, bonded examiners to conduct the test.
Explanation:
The purpose of the Employee Polygraph Protection Act is to ensure that employees get tested according to the highest levels of fairness and professionalism. To that end, only licensed examiners who have had training should be able to administer the test.
In addition to that, these examiners must sign a bond that they will be required to pay if it is shown that during the course of the exam, they engaged in practices that were unfairly or illegal towards the employee being examined.
An agreement is formed between a new company and an existing well-established organization. The agreement states that the established company will provide financial capital and other resources and the start-up will contribute its technological expertise. This method of acquiring new technology is known as g
Answer:
Research partnership
Explanation:
The Research partnership is the partnership which can be designed for the particular new technology development. In this, the reasearchers and the stakeholders would be worked together in a research project that represent the important part of the research. In addition to this, the established company would give the financial capital & other resoruces also the startip would be able to contribute the technological expertise.
Therefore the above represent the answer
In management, An agreement that is set up between a new company and an existing well-established organization that can result to acquiring new technology is is Research partnership.
Research partnership serves as agreement that is usually signed by two companies i.e new one and established one.This agreement is about how the established organization will help the new one financially and with resources.This method di results to occurrence of technological expertise.
Therefore, Research partnership helps in
acquiring new technology.
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Arkansas Co. believes in the international Fisher effect. It has excess funds that it can invest in money market securities for one year. It can invest in the U.S. at an interest rate of 4%, Japan at an interest rate of 2%, the United Kingdom at an interest rate of 6%, or Brazil at an interest rate of 9%. It would not cover any investment that it takes against exchange rate risk. Its expected return on its investment will be highest in_________________.
Answer: It would be the same across all the countries.
Explanation:
The Fischer effect is used to describe the relationship that a country's interest rates and its exchange rate. That relationship is such that the differences between the different interest rates offered in various countries is captured by their exchange rate.
That means that whatever gains are made in interest rates will be eroded when the currency it was made in is converted to the local currency of the investor. As this company took no cover against exchange rate risk, all the countries are effectively offering the same rate as a result of the Fisher effect.
Thomlin Company forecasts that total overhead for the current year will be $11,742,000 with 164,000 total machine hours. Year to date, the actual overhead is $7,547,000 and the actual machine hours are 83,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$46 per machine hour b.$141 per machine hour c.$91 per machine hour d.$72 per machine hour
Answer:
d.$72 per machine hour
Explanation:
Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity
therefore,
Predetermined overhead rate = $11,742,000 ÷ 164,000
= $71.598 or $72
The predetermined overhead rate based on machine hours is $72 per machine hour.
At December 31, 2021 and 2020, Cow Co. had 117,000 shares of common stock and 6,700 shares of 3%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $670,000. For 2021, basic earnings per share was: Multiple Choice $2.01 $5.38 $8.73 $5.55
Answer:
$5.55
Explanation:
Calculation to determine what the basic earnings per share was
Using this formula
EPS=Net income-(Value cumulative preferred stock percentage*Net income)/Shares of common stock
Let plug in the formula
EPS=$670,000-(3%*$670,000)/117,000
EPS=$670,000-$20,100/117,000
EPS=$649,900/117,000
EPS=$5.55
Therefore For 2021, basic earnings per share was: $5.55
When amortizing the discount on bonds payable, the amount of interest expense reported on the income statement will always be less than cash paid for interest. True or false?
Agency has a capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. The dividend payout ratio is 30 percent, the company's beta is 1.21, and the tax rate is 21 percent. Given this, which one of the following statements is correct?
a. The aftertax cost of debt will be greater than the current yield-to-maturity on the company's outstanding bonds.
b. The company's cost of preferred is most likely less than the company's actual cost of debt.
c. The cost of equity is unaffected by a change in the company's tax rate.
d. The cost of equity can only be estimated using the capital asset pricing model.
e. The weighted average cost of capital will remain constant as long as the company's capital structure remains constant.
Answer: c. The cost of equity is unaffected by a change in the company's tax rate.
Explanation:
The cost of debt can be adjusted for taxes because interest payments are tax deductible. This is not the case with Equity. Equity is not tax deductible so there is not adjustment to the cost of Equity for taxes.
This means therefore, that the calculation of cost of equity will not change in any way due to the company's tax rate. For this reason, the cost of equity is usually higher than that of debt.
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2017 were as follows: Static Budget Victor House-Mate Total Number sold 20,000 80,000 100,000 Contribution margin $4,600,000 $15,200,000 $19,800,000 Actual Results Victor House-Mate Total Number sold 21,500 64,500 86,000 Contribution margin $6,665,000 $14,190,000 $20,855,000 What is the total sales-mix variance closest to in terms of the contribution margin
Answer:
The Fortise Corporation
The total sales-mix variance closest to $1,055,000 in terms of the contribution margin.
Explanation:
a) Data and Calculations:
Static Budget Victor House-Mate Total
Total Number sold 20,000 80,000 100,000
Contribution margin $4,600,000 $15,200,000 $19,800,000
Actual Results Victor House-Mate Total
Number sold 21,500 64,500 86,000
Contribution margin $6,665,000 $14,190,000 $20,855,000
Variance
Number sold 1,500 F 15,500 U 14,000 U
Contribution margin $2,065,000 F $1,010,000 U $1,055,000 F
Robert Nozick's direct criticism of the importance of income equality is that: a. trade performed on a cumulative basis would result in equal outcomes and opportunities for people. b. All of the answers are correct. c. peaceful trade should not be condemned even when it leads to large differences in wealth. d. equality results only from freely chosen market transactions, devoid of coercive force or fraud.
Answer: c. peaceful trade should not be condemned even when it leads to large differences in wealth.
Explanation:
Income inequality simply refers to the unevenly distribution of income in a population. It should be noted that the less equal the distribution, the higher the income inequality will be.
According to Robert Nozick, the direct criticism of the importance of income equality is that peaceful trade should not be condemned even when it leads to large differences in wealth.
Steps in the Accounting Cycle Listed below, out of order, are the steps in an accounting cycle.
1. Prepare the unadjusted trial balance.
2. Post journal entries to general ledger accounts.
3. Analyze transactions from source documents.
4. Journalize and post adjusting entries.
5. Prepare the financial statements.
6. Record transactions in a journal.
7. Prepare the post-closing trial balance.
8. Prepare the adjusted trial balance.
9. Journalize and post closing entries.
(a) Place the numbers from the above list in the order in which the steps in the accounting cycle are performed.
3, 6, 2, 1, 4, 8, 5, 9, 7
2, 3, 6, 1, 4, 8, 5, 9, & 7
3, 6, 2, 1,4,8,5,7, & 9
6, 3, 2, 1, 4, 8, 5, 9, & 7
(b) identify the steps in the accounting cycle that occur daily.
1, 2, 3, & 6
2, 3, & 4
1, 2, 3, 4,&6
2, 3, & 6
Answer:
Steps in the Accounting Cycle
a) The order in which the steps in the accounting cycle are performed is:
3, 6, 2, 1, 4, 8, 5, 9, 7
b) The steps in the accounting cycle that occur daily are:
2, 3, & 6
Explanation:
The correct ordered steps in the account cycle are:
3. Analyze transactions from source documents.
6. Record transactions in a journal.
2. Post journal entries to general ledger accounts.
1. Prepare the unadjusted trial balance.
4. Journalize and post adjusting entries.
8. Prepare the adjusted trial balance.
5. Prepare the financial statements.
9. Journalize and post closing entries.
7. Prepare the post-closing trial balance.
The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 3,840 liters in beginning work in process inventory (30% complete). During the period 64,880 liters were completed. The ending work in process was 5,160 liters (70% completed). All inventories are costed by the first-in, first-out method. What is the total equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the process
Answer:
Total equivalent units of materials = 64,652
Explanation:
Equivalent units are useful to apportion cost between work in progress and completed units. They are notional whole units which represent incomplete work
Equivalent Units = Degree of work completed (%) × inventory units
Fully worked = 64,880- 3,840= 61,040
Items units workings Equivalent units
Opening inventory 3,840 3840× 70% = 2,688
Fully worked 61,040 61,040× 100 = 61,040
Closing WIP 5,160 5,160× 70% = 3,612
Total equivalent units of materials 64,652
Total equivalent units of materials =64,652
Kari is a limited partner in Lizard Partnership. This year, Kari's share of partnership ordinary income is $20,000, and she received a cash distribution of $30,000. Kari's tax basis in her partnership interest at the beginning of the year was $50,000. Her marginal tax rate is 22 percent. Kari qualifies for the QBI deduction, without regard to the wage or taxable income limitations.
a. Calculate the tax cost of Kari's partnership earnings this year Tax cost
b. Compute Kari's after-tax cash flow from her partnership activity this year After-tax cash flow
c. Compute Kari's tax basis in her partnership interest at the ending of the year. Assume no change in her share of partnership during the year.
Answer: a. $3520
b. $26480
c. $40000
Explanation:
a. Calculate the tax cost of Kari's partnership earnings this year Tax cost
Ordinary Income = $20000
Less: 199A deduction = 20% × $20000 = $4000
Ordinary Income share = $16000
The tax cost of Kari's partnership earnings this year Tax cost will be:
= 22% × $16000
= 0.22 × $16000
= $3520
b. Compute Kari's after-tax cash flow from her partnership activity this year After-tax cash flow
This will be:
= Cash distribution - Tax cost
= $30000 - $3520
= $26480
c. Compute Kari's tax basis in her partnership interest at the ending of the year. Assume no change in her share of partnership during the year.
Basis at start of year = $50000
Add: Ordinary income = $20000
Adjusted basis = $50000 + $20000 = $70000
Less: Cash distribution = $30000
End of year basis = $40000
With regard to social welfare, oligopolists forming a cooperative alliance is Group of answer choices good because it leads to less disagreement and lower prices and more variety. good because forming a cooperative alliance closely resembles a perfectly competitive outcome. bad because prices will then be too high and output will be too low. bad because output will then be too high and prices will be too high. Flag question: Question 11
Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that suggests that the number of erroneous shipments has a direct effect on operating profit. The company estimates that every shipment error leads to a reduction of revenue by $3,000 and increased costs of about $2,000.
Sales $230,000
Cost of goods sold 150,000
Depreciation expense 30,000
Other expenses 20,000
Answer:
6
Explanation:
The computation of the shipping errors in the case of break even is given below;
But before that the net operating income is
Sales $230,000
Less: Cost of goods sold 150,000
Less: Depreciation expense 30,000
Less: Other expenses 20,000
Net operating income $30,000
Now the shipping errors is
= $30,000 ÷ ($3,000 + $2,000)
= 6
'
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everything on the scale is a good idea for me to church.
do u want to go to gym at the same time and I
اقرأ الفقرة التالية واجب عن الأسئلة التي تليها .33
نفترض انك تقدمت بطلب من بنك البحرين الإسلامي لتمويل مشروعك الخاص والحصول على تمويل بقيمة
5400 دينار بحريني، حيث ستكون مدة التمويل 6 سنوات و بسعر فائدة وقدرها 8% سنوية بالإضافة الى
.مصاريف إدارية 65 دينار والتأمين على القرض 115 دينار
Enter your answer
* :قيمة الفائدة السنوية -1
.34
(2 Points)
Enter your answer
* :قيمة الفائدة الإجمالية -2
.35
)
(2 Points)
Answer:
الدينار البحريني، (بالإنجليزية: Bahraini dinar)، هو عملة البحرين.[1][2][3] يقسم الدينار إلى 1000 فلس. وهو مرتبط بالدولار الأمريكي.


البلد البحرينتاريخ الإصدار1965رمز العملةد.برمز الأيزو 4217BHDالمصرف المركزيمصرف البحرين المركزيموقع المصرف المركزيمصرف البحرين المركزيسعر الصرف2 دولار أمريكي (22 نوفمبر 2016)
2.65957446809 دولار أمريكي
10 روبية خليجية العملات المعدنية1⁄2, 5, 10, 25, 50, 100 (500 فلس)العملات الورقية1⁄2, 1, 5, 10, 20 د.ب.الموقع الرسميwww.cbb.gov.bhتعديل مصدري - تعديل 
يبلغ سعر صرف الدينار البحريني 2.6526 الدولار الأمريكي، أو 1 دولار يعادل 377 فلس.
Which of the following is NOT one of the four factors of production?
1. Entrepreneurship
2. Natural resources
3. Human Resources
4. Production Resources
Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows:
Demand
Staffing Options High Medium Low
Own staff 650 650 600
Outside vendor 900 600 300
Combination 800 650 500
Required:
a. If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data processing operation?
b. Construct a risk profile for the optimal decision in part (a).
Answer:
Explanation:
a. If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data processing operation?
Expected value own staff = 0.2(650 + 0.5(650) + 0.3(300) = 635
EV outside vendor = 0.2(900) + 0.5(600) + 0.3(300) = 570
EV combination = 0.2(800) + 0.5(650) + 0.3(500) = 635
Therefore, the correct answer is outside vendor since it has the minimum expected value.
b. Construct a risk profile for the optimal decision in part (a)
Demand Cost Probability
Low. 300000. 0.3
Medium. 600000. 0.5
High 900000. 0.2
The required probability is 0.2
Van is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Eric decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change.
Identify what role money plays in each of the following parts of the story.
a. Role of money medium of unit of store
b. Exchange account of value
c. Eric can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much.
d. Eric accumulates money in his savings account for future purchases.
e. Eric buys his lunch with a $10 bill.
Answer and Explanation:
c. In the given case Eric valued the goods in terms of money so here the role of money plays is the unit of account that represent something that can be used in order to value the goods and services
d. In the case when eric wants to store the money and use them in a future so here it is storing of value
e. In this case, eric purchased the lunch and pay $10 so here the food is exchanged with the money that represent the medium of exchange
Cliff Company traded in an old truck for a new one. The old truck had a cost of $130,000 and accumulated depreciation of $65,000. The new truck had an invoice price of $135,000. Huffington was given a $63,000 trade-in allowance on the old truck, which meant they paid $72,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck
Answer:
the recorded value of the new truck is $135,000
Explanation:
The computation of the recorded value of the new truck is given below;
In the case when the transaction has the commercial substance so the recorded value of the new truck would be equivalent to the invoice price or the fair value i.e. $135,000
Hence, the recorded value of the new truck is $135,000
The same would be considered and relevant
And all other values are to be ignored
On January 1, Year 1, Parker Company purchased an asset costing $20,000. The asset had an expected five-year life and a $2,000 salvage value. The company uses the straight-line method. What are the amounts of depreciation expense and accumulated depreciation, respectively, that will be reported in the Year 2 financial statements
Answer:
3600
7200
Explanation:
A maximum price control on cellular telephones (cellular telephones) A. A surplus of cellular telephones B. An increase in demand for cellular telephones C. A decrease in supply of cellular telephones D. An increase in quantity supplied and decrease in quantity demanded of cell telephones E. None of the above
Answer:
A. A surplus of cellular telephones
Explanation:
In the case where the maximum price that are controlled on the cellular telephones so there would be the surplus of cellular telephones as the maximum price are charged from the customers due to which the company is able to generate the high profit that results in the surplus of the cellular telephones and the same would be controlled
Hence, the option b is correct
What function do regulations like the General Data Protection Regulation (GDPR)
serve?
Answer:
This regulation is called the EU General Data Protection Regulation or GDPR, and is aimed at guiding and regulating the way companies across the world will handle their customers' personal information and creating strengthened and unified data protection for all individuals within the EU.
Explanation: