Answer: A. $26.25
Explanation:
Using the Gordon Growth model, the value of the stock can be determined using the available variables.
The formula is;
Value of a Stock = Next Dividend / (Required Return - Growth Rate)
Value of a Stock = Current Dividend (1 + Growth Rate) / (Required Return - Growth Rate)
= 2 ( 1 + 0.05) / ( 0.13 - 0.05)
= (2 * 1.05) / 0.08
= $26.25
Alpha Industries is considering a project with an initial cost of $9.1 million. The project will produce cash inflows of $1.84 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.94 percent and a cost of equity of 11.49 percent. The debt–equity ratio is .71 and the tax rate is 40 percent. What is the net present value of the project?
Answer:
NPV = $1.22 million
Explanation:
The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
To work oit the NPV we would need to determine the discount rate i.e cost of capital as follows:
Cost of capital -discount rate -
WACC = We×Ke + Wd×Kd
After cost o debt = 5.94× (1-0.4)=3.56
WACC = (0.71×3.56 %) + (0.29×11.49%)=5.86 %
PV of cash inflow = A× (1- (1+r)^(-n))/r
A- annul cash inflow, r- 5.86%, n- 7
PV of cash inflow= 1.84 million × (1- 1.0586^(-7))/0.0586 =10.32
Initial cost = 9.1 million
NPV = 10.32 - 9.1 = 1.22 million
NPV = $1.22 million
Pisa, Inc. leased equipment from Williamsburg Company under a four-year lease requiring equal annual payments of $68,830, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Pisa, Inc.'s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pisa, Inc.) is 8%. Assuming that this lease is properly classified as a capital lease, what is the approximate amount of principal reduction recorded when the second lease payment is made in Year 2?
Answer:
$54,639
Explanation:
the approximate amount of principal reduction when the second lease payment is made in Year 2 can be calculated by making the Lease amortization table as follows
DATA
Annual payments = 68,830
Implicit rate = 8%
Annuty factor for 4 years at 8% = 3.55710
Present value of lease payment =$246,212 (68830*3.57710 )
Year 1 Year 2
Opening balance - $177,382(w)
interest - $14,191(w)
payments $68,830 $68,830
principal payments $68,830 $54,639
closing balance $177,382(w) $122,743
Working
Closing balance = Present value of lease payment - Annual payment
Closing balance = $256,212 - $68,830
Closing balance = $177,382
Interest = closing balance x implicit rate
Interest = $177,382 x 8%
Interest = $14,190.56
According to the Prebisch-Singer hypothesis, this fate has befallen many developing countries given the general decline in commodity prices in relation to the price of manufactured goods.A) TrueB) False
Answer: True
Explanation;
Generally, manufactured goods cost more than the commodity goods that they were manufactured from due to the value that has been added to them. This is what the Prebisch-Singer hypothesis argues, that commodity prices decline overtime in relation to manufacturing good prices.
This is a fate that has befallen many developing countries as many of them export commodity goods to developed countries who then add value to them, turning them into manufactured goods and then selling them back to developing countries at a higher price thereby negatively affecting their balance of trade.
Which of the following is NOT a benefit of a social media presence for a brand? Group of answer choices Social media allows companies to have a short-term focus. Social media allows marketers to establish a public voice and presence online. Social media can cost-effectively reinforce other communication activities. Social media can encourage companies to stay innovative and relevant. Social media can be used to build or tap into online communities.
Answer: Social media allows companies to have a short-term focus.
Explanation:
Social Media has made the world way more connected than it was before even with the advent of the Internet. As such, companies were able to leverage on this to improve their brand and popularity by being present on the various social media platforms.
With social media, companies have been able to marketers to establish a public voice and presence online, cost-effectively reinforce other communication activities, build online forums and communities as well as remain relevant in a fast changing world.
Companies having a short term focus as a result of social media is not a benefit of social media. A company should always think long term and even social media can help them achieve long term growth if long term marketing plans are integrated with social media marketing.
The term used to describe the degree to which tasks in an organization are subdivided into separate jobs is called ________.
Answer:
work specialization
Explanation:
The term being described is known as work specialization. This term, also known as division of labor, is mainly used by companies in order to divide a large job position into smaller, single tasks that can be completed by one individual. The individual that is given such a task is trained thoroughly in order for them to become a specialist in that task and output more precise workloads.
You, a real-estate developer, own a piece of land in Nassau, Bahamas, next to an equal-size piece of land owned by a competitor. Both of you have the choice of building a casino or a hotel. Your payoffs in millions of dollars are as follows:You
Your Competitor Casino Hotel Casino 3,3 20,5Hotel 5,20 2,2How much is it worth to you to get your casino building permit first?a. $2 millionb. $3 millionc. $15 milliond. $17 million
Answer: c. $15 million
Explanation:
If you get your casino building first, your competitor will have to get the Hotel so as to make $5 million which is more than the $3 million if they were to choose a casino as well.
The Payoff for you would therefore be $20 million and for them $5 million.
The Net Payoff over your competitor would be = 20 - 5
= $15 million
According to research, effective leaders at all levels of organizations have high levels of Emotional Intelligence (EI). CEOs with high EI excel in all of the following exceptA) managing relationships.B) influencing people.C) forging alliances inside and outside the firm.D) ability to discourage outside stakeholders.
Answer:
D) ability to discourage outside stakeholders.
Explanation:
Emotional Intelligence (EI) is important for effective leaders at all levels or organizations including CEO, as it helps in several organizational functions such as managing employee relations, satisfying employees, influencing people and forging alliances inside and outside the firm.
But a CEO with high level of EI will never discourage outside stakeholders, rather they will encourage their employees to perform better.
Hence, the correct answer is "D".
obligations not expected to be paid within the longer of one year or the company's operating cycle are reported as
Answer:
Long term liabilities.
Explanation:
This can be easily or mostly be used in companies and also firms. In most cases they are been tagged a non-current liability.
They are generally defined to be obligations that are not been settled for/paid off in the current year or accounting period. Therefore, debts of this kind are not due within a year. Dept of this kind ranges from notes payable to bonds payable, also mortgages and are also seen as leases in a company settings.
In as much as this is not good for a company's financial health, investors and creditors see how the company is financed through this. Current obligations are seen to be more risky than non-current debts because they will need to be paid sooner.
Calculate the inventory turns when Sales is $200,000,000, Cost of sales is $160,000,000, Average inventory is $ 40,000,000 and Carrying cost is 12%
68646868855764566799%%$^€$^__
Answer:
68646868857764564566799
A Japan-based company, Sumo Gyms, Inc., issues a 35-year, semi-annual coupon bond, with a ¥300 million par value. The coupon rate is given as 5.90%, and the yield to maturity is 6.70. a. What is the value of the semi-annual coupon on the bond?
Answer:
per*
Explanation:
A firm has a long-term debt-equity ratio of .4. Shareholders’ equity is $1 million. Current assets are $200,000, and the current ratio is 2. The only current liabilities are notes payable. What is the total debt ratio?
Answer:
Total debt ratio is 33.33%
Explanation:
A long term debt to equity ratio of 0.4 tells that the value of long term debt is 0.4 or 40% of the value of the equity. If the value of the equity is $1 million, the value of long term debt is,
Long term debt = 0.4 * 1000000 = $400000
A current ratio is calculated by dividing the current assets by the current liabilities. It tells how many current assets are available to satisfy $1 of current liabilities. A current ratio of 2 means that for every $1 of current liability, $2 of current assets are available. Thus, current liabilities are half of current assets. If the value of current assets is $200000, the value of current liabilities is,
Current liabilities = 200000 * 1/2 = $100000
Total liabilities = 400000 + 100000 = $500000
A debt ratio is calculated by dividing the value of total debt or total liabilities by the value of total assets.
Total assets = total liabilities + total equity
Total assets = 500000 + 1000000
Total assets = $1500000 or $1.5 million
Total debt ratio = 500000 / 1500000
Total debt ratio = 1/3 or 0.3333 or 33.33%
What describes minerals that are deemed real property, such as gold and silver, until they are removed from the earth and become personal property?
A. Mineral rights.
B. Nutrients.
C. Synthetics.
D. Solid minerale.
Answer:
The correct answer is D
Explanation:
Solid minerals contained in the land
(Coal, iron, ore, gold or silver)
Hope this helps! （づ￣3￣）づ╭❤～
Minerals known as real property such as gold and silver are known as Solid minerale before they later become personal property.
What is a Solid minerale?These are mineral that is natural occurring in a solid and inorganic state and are representable by a chemical formula.
An example of Solid minerale includes Talc, Gold, Clay, Lithium, Kyanite, Wolframite, Gemstones etc
Therefore, the Option D is correct.
Read more about Solid minerale
brainly.com/question/1869502
Margin on price as a percentage is the expression of how much you mark your product up by to arrive at your retail price. True False
Answer:
False
Explanation:
The margin on price refers to a percentage by taking a difference between the gross profit and the selling price
Here gross profit comes by
= Selling price - cost price
Now in the cost price we added some markup percentage i.e most probably equivalent to the retail price
Hence, the given statement is false
Firms that tend to focus on conducting e-business with other businesses are referred to as having a B2B model.
A. True
B. False
Answer:
A. True
Explanation:
B2B model is when companies sell goods or services to other companies instead of a consumer. Also, these transactions can occur through the internet where businesses can generate a contact and make a transaction. Because of this, the statement that says that firms that tend to focus on conducting e-business with other businesses are referred to as having a B2B model is true because this model is about transactions between companies and they can happen through the internet.
seigel co. maintains a defined-benefit pension plan for its employees. at each balance sheet date, seigel should report a pension asset / liability equal to the
Answer: funded status relative to the projected benefit obligation
Explanation:
A defined benefit pension plan is a pension plan type in which the employer promises to pay the worker a lump sum or a pension payment which is based on the earnings history, age and the tenure of service of the worker.
Since Seigel co. maintains a defined-benefit pension plan for its employees. at each balance sheet date, seigel should report a pension asset/liability that will be equal to the funded status relative to the projected benefit obligation.
The debt-to-equity ratio for your small business was 1.40 at the end of last year and 1.25 at the end of this year. Your debt-to-equity ratio is:_________
Answer:
debt-to-equity ratio is 1.33 .
Explanation:
Given the debt equity ratio at the beginning and at end of the year, we can estimate the debt equity ratio of a company as the average of the two.
Average debt-to-equity ratio = (1.40 + 1.25) ÷ 2
= 1.325 or 1.33
A piece of equipment (Asset class 15.0) was purchased bythe Jones Construction Company. The cost basis was $300,000. Determinethe ADS and GDS depreciation deductionfor this property each year
Answer:
Alternative depreciation system (ADS depreciation) per year:
Year % depreciation expense
1 8.32% $24,960
2 16.67% $50,010
3 16.67% $50,010
4 16.67% $50,010
5 16.67% $50,010
6 16.67% $50,010
7 8.33% $24,990
General depreciation system (GDS depreciation) or MACRS per year:
Year % depreciation expense
1 20% $60,000
2 32% $96,000
3 19.20% $57,600
4 11.52% $34,560
5 11.52% $34,560
6 5.76% $17,280
In the Vaughn Manufacturing, indirect labor is budgeted for $108000 and factory supervision is budgeted for $36000 at normal capacity of 160000 direct labor hours. If 170000 direct labor hours are worked, flexible budget total for these costs is:
Answer:Flexible budget =$ 150,750
Explanation:
Variable overhead rate = $108,000 / 160000 = $ 0.675 per hour
(budgeted supervision cost) Fixed overhead = $ 36,000
Flexible budget = Variable over head rate x direct labour + budgeted supervision cost (fixed overhead)
0.675 x 170,000+ 36,000
= 114,750+36,000
=$ 150,750
A salesperson shows his broker an offer for one of his listings that has a good faith deposit in the form of a promissory note. The broker should tell the salesperson that: Group of answer choices
Answer:
The seller must be informed when the offer is presented that the depositis a promissory note
Explanation:
A good faith deposit is one that is done by a buyer in which conditions are stated that could result in the loss of deposit by the buyer.
It is a deposit made by the buyer to show he intends to complete the payment later.
In this instance if there is a Goodwill deposit in form of a promissory note, the broker needs to be aware.
So that when he is bringing in a client he will consider the already existing deposit.
Deals that offer more deposit or full payment will be considered and the original buyer discarded.
TB MC Qu. 9-291 Kartman Corporation makes a product with ... Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 8.2 pounds $ 8.70 per pound $ 71.34 Direct labor 0.3 hours $ 41.00 per hour $ 12.30 Variable overhead 0.3 hours $ 5.70 per hour $ 1.71 In June the company's budgeted production was 5,100 units but the actual production was 5,200 units. The company used 23,850 pounds of the direct material and 2,460 direct labor-hours to produce this output. During the month, the company purchased 27,100 pounds of the direct material at a cost of $187,180. The actual direct labor cost was $58,721 and the actual variable overhead cost was $13,331. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for June is:
Answer:
Variable manufacturing overhead rate variance= $688.8 favorable
Explanation:
Giving the following information:
Variable overhead 0.3 hours $5.70 per hour
The company used 2,460 direct labor-hours to produce this output. The actual variable overhead cost was $13,331.
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 13,331/2,460= $5.42
Variable manufacturing overhead rate variance= (5.7 - 5.42)*2,460
Variable manufacturing overhead rate variance= $688.8 favorable
________ means that service quality depends on the quality of buyer-seller interaction during the service encounter.
Answer: interactive marketing
Explanation:
Interactive marketing is also referred to as event-driven marketing or trigger based marketing and it simply has to do with using an effective communication which is two-ways to enable the consumers connect directly with a company.
Interactive marketing means service quality depends on the quality of buyer-seller interaction during the service encounter.
Data pertaining to a company's joint production for the current period follows
Quantities produced 310 lbs. 260 lbs
Market value at split-off point . $10.2/lb. $20.4/lb
Compute the cost to be allocated to Product L for this period's $792 of joint costs if the value basis is used. (Do not round intermediate calculations.)
a. $295.81.
b. $49619.
c. $39600.
d. $2,926.00.
e. $962.19.
Answer: a. $295.81.
Explanation:
Using the value basis would mean that the product's share of the total market value will be used to determine it's share of the cost.
Total Market Value = Product L Market Value + Product M Market Value
= (310 lbs * 10.2) + ( 260 lbs * 20.4)
= 3,162 + 5,304
= $8,466
Product L's share of total market value
= 3,162/8,466
Product L's share of the $792 based on share of total market value
= (3,162/8,466) * 792
= $295.8072
= $295.81
Projectized organizations are especially effective at helping team members to maintain their discipline-specific competencies. Group of answer choices
Answer: False
Explanation:
A projectized organization is a form of organization structure is that is designed such that it is hierarchical and headed by the project manager who is typically involved in every decision that is made regarding the project as he or she is the one that team members report to.
Therefore, projectized organizations are not effective at helping team members to maintain their discipline-specific competencies.
On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include a. payments for cash dividends b. amortization of premium on bonds payable c. receipts from the issuance of common stock d. receipts from the sale of investments
Answer:
b. amortization of premium on bonds payable
Explanation:
The Indirect method reconciles the Operating Income to the Operating Cash Flow by adjusting the Operating Income for (1) Non-Cash Items previously added or deducted from the Operating Income and (2) Changes in working capital items.
In the context of situational analysis, the ________ includes the attitudes and reactions of the general public, social and business critics, and other organizations, such as the Better Business Bureau.A) political environmentB) social environmentC) competitive environmentD) legal environment
Answer:
political environment
Explanation:
Situational analysis involves using various methods to check a business organization both internally and externally. Such an analysis would be used to know the strength, environment and customers of this organization.
The political environment in situational analysis includes the reaction and attitude of the general public, as well as critics (both business and social) and other organizations.
Suppose annual inflation rates in the U.S. and Mexico are expected to be 6% and 80%, respectively, over the next several years. If the current spot rate for the Mexican peso is $.005, then the best estimate of the peso's spot value in 3 years is Group of answer choices $.00276 $.01190 $.00321 $.00102
Answer:
$.00102
Explanation:
The forward peso's spot value in 3 years can be computed using the below formula:
forward exchange rate=current spot rate*(1+US inflation)^3/(1+Mexican inflation)^3
current spot rate=$.005,
US inflation rate is 6%
Mexican inflation rate is 80%
forward exchange rate=$.005,*(1+6%)^3/(1+80%)^3
forward exchange rate(in 3 years)=$0.00102
Suppose that the income tax rate is reduced by the federal government and simultaneously a recession hits causing the economy to move below its potential output, this will:
Answer:
Raise both the cyclical and structural deficits
Explanation:
During economic downturn the cyclical deficit will rise, leading to rise in already structural deficit of federal government. The Structural deficit arises when government continue to spend more than its revenue, and thus cyclical deficit will add upward pressure in structural deficit.
Therefore there will be Raise in both the cyclical and structural deficits
Net income (in millions) $150 Shares outstanding (in millions) 300 Stock price $30.00 What is the price-earnings ratio (to the nearest whole number)?
Answer:
60
Explanation:
price-earnings ratio = price / earnings per share
earnings per share = net income / shares outstanding = $150 / 300 = $0.50
$30 / $0.50 = 60
On January 31, 2021, B Corp. issued $650,000 face value, 11% bonds for $650,000 cash. The bonds are dated December 31, 2020, and mature on December 31, 2030. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2021, balance sheet
Answer:
The amount of accrued interest payable that B should report in its September 30, 2021, balance sheet is $ 23,833.
Explanation:
Prepare a Bond Amortization Schedule using the data :
Hint : First find the Yield to Maturity
N = 10
PV = $650,000
Pmt = ($650,000 × 11%) ÷ 2 = - $35,750
P/ yr = 2
FV = - $650,000
YTM = ?
Using a Financial Calculator, the YTM is 11.64%.
By the end of September 30, 2021, 8 months` interest will have expired.Thus the amortization schedule should accrue interest for 8 months as follows :
Interest $ 23,833 (debit)
Investment in Bond $ 23,833 (credit)
Interest Calculation = $ 35,750 × 8 / 12
= $ 23,833
After analyzing its own resources and unique abilities, a company is now trying to determine what group of customers it can satisfy with a good or service. It is in the process of choosing a
Answer: target market
Explanation: A target market is simply a group of people whose needs and preferences match the product range of a company and to whom those products are marketed, often times actively. As such, when the resources and unique abilities of a firm has been analysed, and is now in the process of determining what group of customers it can satisfy with a good or service, then it is in the process of choosing a target market.