The present value of the two-part lottery winnings is $689,238, calculated using discount rates and payment periods.
To calculate the present value of the two-part lottery winnings, we need to discount the future cash flows using the given discount rate of 9%.
For the first part of the lottery, we can use the formula for the present value of an annuity to calculate the present value of the 20 annual payments of $50,000.
PV = PMT x [1 - (1+r)^-n]/r
where PV is the present value, PMT is the payment amount, r is the discount rate, and n is the number of periods.
In this case, PMT = $50,000, r = 9%, and n = 20.
PV = $50,000 x [1 - (1+0.09)^-20]/0.09
PV = $50,000 x [1 - 0.1486]/0.09
PV = $50,000 x 11.1181
PV = $555,905.
Therefore, the present value of the first part of the lottery is $555,905.
For the second part of the lottery, we can use the formula for the present value of a perpetuity to calculate the present value of the 240 monthly payments of $1,000.
PV = PMT / r
where PV is the present value, PMT is the payment amount, and r is the discount rate.
In this case, PMT = $1,000, and r = 9%/12 = 0.75%.
PV = $1,000 / 0.0075
PV = $133,333.
Therefore, the present value of the second part of the lottery is $133,333.
To find the total present value of the lottery winnings, we simply add the present values of the two parts:
Total PV = $555,905 + $133,333
Total PV = $689,238.
Therefore, the present value of the two-part lottery winnings is $689,238.
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one defense to product liability is to show that there is no basis for the plaintiff’s claim.
T/F
Yes, the above statement is true. one defense to product liability is to show that there is no basis for the plaintiff's claim.
One defense to product liability is to show that there is no basis for the plaintiff's claim. This can be done by demonstrating that the plaintiff's injuries or damages were not caused by the product in question, or that the product was used improperly and not in accordance with the manufacturer's instructions or warnings. Another defense is to argue that the plaintiff assumed the risk of injury when using the product, meaning that they knew or should have known of the potential dangers and chose to use the product anyway. However, the availability of these defenses can vary depending on the jurisdiction and the specific facts of the case.
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1. the multiplier and fiscal policy: one of the programs to combat the economic effects of the recession and pandemic was cares act passed in march 2020. one of the provisions of the cares act was a relief check of $1200 per adult and $500 per dependent child. these payments were actually advance rebates on 2020 taxes and so the payments came from the irs. this tax cut distributed about $300 billion to most, but not all of the u.s. population. major exceptions included families with undocumented members (which invalidated the whole family, even those who were legal residents or u.s. citizens), dependents adults (which excluded many college students as well as seniors living with their children). people who did not file income taxes (about 40% of adults) because their incomes are so low that they don't need to pay, did not get their payments unless they filed for taxes. the program was phased out for individuals making more than $75,000 and married couples earning more than $150,000. which of the following statements is correct about the multiplier effect of refunded tax cut of the cares act? group of answer choices the multiplier effect on tax cuts is zero, only government purchases have a multiplier effect. the multiplier effect would be the same as an equal dollar increase in government purchases. the multiplier effect would be lower than an equal dollar increase in government purchases. the multiplier effect would be greater than an equal dollar increase in government purchases.
The multiplier effect of the refunded tax cut of the CARES Act would be lower than an equal dollar increase in government purchases.
The multiplier effect is a concept in economics that measures how much an initial increase in government spending or tax cuts will stimulate overall economic activity. When the government increases spending or implements tax cuts, this leads to an increase in disposable income for individuals, which in turn leads to an increase in consumer spending. This increase in consumer spending then leads to an increase in demand for goods and services, which creates more jobs and further stimulates economic activity.
In the case of the CARES Act, the relief checks provided a direct increase in disposable income for many individuals and families, which could lead to an increase in consumer spending and economic activity. However, the multiplier effect of tax cuts is generally lower than the multiplier effect of an equal dollar increase in government purchases, because tax cuts are often saved or used to pay down debt, rather than being immediately spent. Additionally, the limited scope of the relief checks in the CARES Act meant that not all individuals and families received them, which could further limit the overall multiplier effect.
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grouper, inc. reports the following financial information for its sports clothing segment. average operating assets $3,059,000 controllable margin $672,980 minimum rate of return 10 % compute the return on investment and the residual income for the segment. return on investment enter percentages % residual income $enter a dollar amount
To compute the return on investment (ROI) for Grouper, Inc.'s sports clothing segment, we divide the controllable margin by the average operating assets and multiply the result by 100 to get the percentage. So the ROI for the sports clothing segment is 22.0% and the residual income for the sports clothing segment is $364,080.
ROI = (Controllable Margin / Average Operating Assets) x 100%
ROI = ($672,980 / $3,059,000) x 100%
ROI = 22.0%
The ROI for the sports clothing segment is 22.0%.
To compute the residual income for the segment, we subtract the minimum rate of return (10%) multiplied by the average operating assets from the controllable margin:
Residual Income = Controllable Margin - (Minimum Rate of Return x Average Operating Assets)
Residual Income = $672,980 - (0.10 x $3,059,000)
Residual Income = $364,080
The residual income for the sports clothing segment is $364,080.
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When deciding what price to charge consumers, the monopolist may choose to charge them different prices based on the customers a. geographical location. b. age. c. income. d. All of the above are correct
When a monopolist is deciding what price to charge consumers, they may choose to use price discrimination and charge different prices based on various factors, including the customer's geographical location, age, and income. Option D.
Who Is a Monopolist?A monopolist refers to an individual, group, or company that dominates and controls the market for a specific good or service.
This allows the monopolist to extract more revenue from each customer and increase their profits. However, price discrimination can also lead to customer dissatisfaction and potential legal issues.
Hence, the right answer is geographical location. b. age. c. income. All of the above, option d.
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__________ is the science or practice of managing money or other assets.
Financial management is the science or practice of managing money or other assets.
Financial management involves the planning, organizing, directing, and controlling of financial resources in order to achieve an organization's objectives. It encompasses a range of activities, including budgeting, financial analysis, cash management, investment management, and risk management.
Financial management is crucial for businesses of all sizes, as it helps to ensure that the organization has the resources it needs to operate effectively and achieve its goals. Good financial management can also help to improve profitability, manage risk, and make better decisions.
Some key principles of financial management include:
Setting clear financial goals and objectives
Developing and implementing effective financial strategies
Monitoring and measuring financial performance regularly
Managing cash flow effectively
Making informed investment decisions
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opez company is considering three alternative investment projects below: project 1 project 2 project 3 payback period 4.8 years 5.3 years 4.5 years net present value $ 26,300 $ 33,300 $ 19,300 internal rate of return 13.8% 12.7% 12.1% which project is preferred if management makes its decision based on (a) payback period, (b) net present value, and (c) internal rate of return?
If management makes its decision based on the payback period, then Project 3 would be preferred as it has the shortest payback period of 4.5 years.
If management makes its decision based on net present value, then Project 2 would be preferred as it has the highest net present value of $33,300.
If management makes its decision based on the internal rate of return, then Project 1 would be preferred as it has the highest internal rate of return of 13.8%.
However, it's important to note that different criteria may be more important to management depending on their specific goals and priorities. It's recommended to consider all three criteria together and potentially conduct further analysis before making a final decision.
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in a(n) plan, the patient chooses their provider and the insurance company reimburses medical costs on a fee-for-service basis.
fee-for-service plans can provide patients with greater flexibility in choosing their healthcare providers. However, they can also be more expensive and may require more paperwork and administrative tasks for the patient. It's important for individuals to carefully weigh the pros and cons of this type of plan before making a decision.
the type of plan you are referring to is called a fee-for-service plan. In this type of plan, the patient has the freedom to choose their healthcare provider, and the insurance company reimburses the medical costs incurred by the patient on a fee-for-service basis. fee-for-service plans work by reimbursing healthcare providers for each individual service they provide to the patient. This means that the patient is responsible for paying the provider upfront and then submitting a claim to their insurance company for reimbursement. The amount of reimbursement is determined by the provider's fee and the insurance company's fee schedule.
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under the ______________, employers can consider individual's e-mails corporate property.
Under the Electronic Communications Privacy Act (ECPA), employers can consider individual's e-mails corporate property.
Employers can consider an individual's emails sent or received on a company-provided device or using a company email account as corporate property, subject to certain limitations and exceptions.
This means that employers may be able to access and monitor such emails without the employee's explicit consent or knowledge, though the exact extent of their rights and obligations may vary depending on the specific circumstances and applicable laws. It is important for employees to be aware of their rights and responsibilities regarding electronic communications in the workplace.
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during and after world war ii, the economic gap between whites and nonwhites increased. group of answer choices true false
True, During and after World War II, the economic gap between whites and nonwhites did increase. This was due to a number of factors, including discrimination in employment and housing, as well as unequal access to education and training.
Many nonwhite Americans, particularly African Americans, were relegated to low-paying jobs with little opportunity for advancement, while white Americans enjoyed greater access to education and job opportunities.
Additionally, government policies such as redlining, which prevented nonwhite Americans from obtaining mortgages in certain areas, further perpetuated economic inequality.
While some progress has been made in recent years to address these inequalities, the economic gap between whites and nonwhites remains a persistent issue in the United States today.
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For the following set of cash flows,Year Cash Flow0 $6,5001 4,0002 3,5003 5,400Required: (a) What is the NPV at a discount rate of 0 percent?(b) What is the NPV at a discount rate of 9 percent?(c) What is the NPV at a discount rate of 17 percent?(d) What is the NPV at a discount rate of 22 percent?
The NPV at a discount rate of 0 percent is calculated by summing up the cash flows, since there is no discounting:
NPV at 0% = $6,500 + $4,000 + $3,500 + $5,400 = $19,400
b) The NPV at a discount rate of 9 percent can be calculated as follows:
NPV at 9% = -$6,500 + ($4,000/1.09) + ($3,500/1.09^2) + ($5,400/1.09^3)
NPV at 9% = -$6,500 + $3,669.72 + $2,914.51 + $3,879.47
NPV at 9% = $4,963.70
c) The NPV at a discount rate of 17 percent can be calculated as follows:
NPV at 17% = -$6,500 + ($4,000/1.17) + ($3,500/1.17^2) + ($5,400/1.17^3)
NPV at 17% = -$6,500 + $3,418.80 + $2,562.64 + $3,108.05
NPV at 17% = $2,589.49
d) The NPV at a discount rate of 22 percent can be calculated as follows:
NPV at 22% = -$6,500 + ($4,000/1.22) + ($3,500/1.22^2) + ($5,400/1.22^3)
NPV at 22% = -$6,500 + $3,305.79 + $2,286.57 + $2,455.74
NPV at 22% = $2,548.10
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a company has equipment that cost $100,000 and has $40,000 of accumulated depreciation as a result of past depreciation charges. management determines that the current fair value of the asset is $35,000. what accounting treatment should be implemented at this time?
Based on the given information, the equipment has a carrying value of $60,000.
Since the fair value of the equipment is less than its carrying value, the company needs to recognize an impairment loss. The impairment loss is the difference between the carrying value and the fair value of the asset, which in this case is $25,000 ($60,000 - $35,000). The impairment loss should be recognized in the income statement as an expense and reduce the carrying value of the asset to its fair value of $35,000. The accumulated depreciation should also be adjusted accordingly to reflect the new carrying value of the asset. This adjustment should be reflected in the balance sheet, which will show the asset at $35,000 and accumulated depreciation at $40,000, resulting in a net book value of -$5,000 (a loss). This accounting treatment is in accordance with the generally accepted accounting principles (GAAP) and will accurately reflect the financial position of the company.
Carrying value= $100,000 - $40,000= $60,000
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jaffe co. just paid a dividend of $3 per share. dividends are expected to grow at 2.5% forever. the stock is currently trading at $24.50 per share. calculate the cost of common stock for the firm. (enter percentages as decimals and round to 4 decimals)
The cost of common stock for Jaffe Co. is 0.1505 or 15.05% when rounded to 4 decimals.
We will use the Dividend Growth Model to calculate the cost of common stock. The formula is:
Cost of common stock (ks) = (D1 / P0) + g
Where:
D1 is the expected dividend one year from now
P0 is the current stock price
g is the dividend growth rate
First, we need to calculate D1. Since Jaffe Co. just paid a dividend of $3 per share and dividends are expected to grow at 2.5% forever, we can calculate D1 as follows:
D1 = D0 * (1 + g) = $3 * (1 + 0.025) = $3 * 1.025 = $3.075
Now we can calculate the cost of common stock:
ks = (D1 / P0) + g = ($3.075 / $24.50) + 0.025 = 0.1255 + 0.025 = 0.1505
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in a _____, an employer makes contributions to help employees cover their health-related expenses.
In a Health Savings Account (HSA), an employer makes contributions to help employees cover their health-related expenses. An HSA is a type of tax-advantaged account that allows individuals with high-deductible health plans to save money on healthcare costs.
HSAs offer several benefits to employees, such as lower healthcare costs, tax savings, and the ability to carry over unused funds from year to year. Additionally, HSAs are portable, which means that employees can take them with them if they leave their current employer. Employers can also benefit from offering HSAs as they are a cost-effective way to provide healthcare benefits to employees.
In summary, HSAs are a win-win for both employers and employees as they offer tax-advantaged savings on healthcare costs and a way to provide quality healthcare benefits to employees.
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mike received the following interest payments this year. what amount must mike include in his gross income (for federal tax purposes)? bond interest general motors $ 1,450 city of new york 900 state of new jersey 1,200 u.s. treasury 850 multiple choice $1,450 $2,300 $2,650 $3,550 $4,400
Mike must include the total amount of $4,400 in his gross income for federal tax purposes. All of the interest payments received are taxable, including bond interest from General Motors, the City of New York, the State of New Jersey, and the US Treasury.
Therefore, Mike needs to add up all the interest payments received to determine the total amount of taxable income from interest.
It is important to note that individuals are required to report all types of income on their federal tax returns, including interest income, which is typically reported on Form 1099-INT. Failure to report taxable income can result in penalties and interest charges from the IRS.
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Determine the better of the two alternatives using the equivalent uniform analysis for a project that lasts for infinity? (four answers). Item Initial Cost Annual Benefit Salvage Value Alternative X $7,500 $2,500 $2,500 2 Alternative Y $6,500 $1,800 $1,250 3 Life, years MARR 12%
The equivalent uniform annual worth (EUAW) analysis suggests: that Alternative X is the better option, as it has a higher EUAW than Alternative Y.
To compare the two alternatives using EUAW analysis, we need to calculate the present worth of both options and then determine the equivalent uniform annual worth over an infinite period.
The present worth (PW) of Alternative X can be calculated as follows:
PW_X = -7,500 + (2,500/0.12)[1-1/(1+0.12)^2] + (2,500/0.12)/[(1+0.12)^2]
= -7,500 + 15,974.77 + 1,711.35
= 10,186.12
Similarly, the present worth of Alternative Y can be calculated as:
PW_Y = -6,500 + (1,800/0.12)[1-1/(1+0.12)^3] + (1,250/0.12)/[(1+0.12)^3]
= -6,500 + 12,646.79 + 818.61
= 7,965.40
Next, we need to determine the EUAW of each alternative, which can be calculated as:
EUAW_X = PW_X(A/P,12%,∞)
= 10,186.12(0.12/[1-(1+0.12)^(-∞)])
= 2,500
EUAW_Y = PW_Y(A/P,12%,∞)
= 7,965.40(0.12/[1-(1+0.12)^(-∞)])
= 1,800
Therefore, Alternative X has a higher EUAW than Alternative Y and should be chosen.
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you are building a dcf for a manufacturing business and observe the following historical end-of-period working capital balances on the balance sheet:2017ainventory$2,987.0prepaid expenses$189.0accrued expenses$302.0accounts payable$1,145.0you assume that all working capital assets and liabilities will also grow at 5% annually over the next 5 years.what is the expected impact of working capital on unlevered free cash flow in 2022 of the forecast?2017ainventory$2,987.0prepaid expenses$189.0accrued expenses$302.0accounts payable$1,145.0you assume that all working capital assets and liabilities will also grow at 5% annually over the next 5 years.what is the expected impact of working capital on unlevered free cash flow in 2022 of the forecast?
The expected impact of working capital on unlevered free cash flow in 2022 is $394.44.
To calculate the expected impact of working capital on unlevered free cash flow in 2022, we first need to calculate the working capital balances for each year from 2018 to 2022 based on the assumption that they will grow at 5% annually.
Working Capital balances: 2017: Inventory = $2,987.0; Prepaid expenses = $189.0; Accrued expenses = $302.0; Accounts payable = $1,145.0 2018: Inventory = $3,136.35 ($2,987.0 * 1.05); Prepaid expenses = $198.45 ($189.0 * 1.05); Accrued expenses = $317.1 ($302.0 * 1.05); Accounts payable = $1,202.25 ($1,145.0 * 1.05) 2019: Inventory = $3,293.17 ($3,136.35 * 1.05); Prepaid expenses = $208.37 ($198.45 * 1.05); Accrued expenses = $332.96 ($317.1 * 1.05); Accounts payable = $1,261.36 ($1,202.25 * 1.05)
2020: Inventory = $3,457.83 ($3,293.17 * 1.05); Prepaid expenses = $218.79 ($208.37 * 1.05); Accrued expenses = $349.61 ($332.96 * 1.05); Accounts payable = $1,323.43 ($1,261.36 * 1.05) 2021: Inventory = $3,630.72 ($3,457.83 * 1.05); Prepaid expenses = $229.73 ($218.79 * 1.05); Accrued expenses = $367.09 ($349.61 * 1.05); Accounts payable = $1,388.60 ($1,323.43 * 1.05) 2022: Inventory = $3,812.26 ($3,630.72 * 1.05); Prepaid expenses = $241.22 ($229.73 * 1.05); Accrued expenses = $385.44 ($367.09 * 1.05); Accounts payable = $1,457.03 ($1,388.60 * 1.05)
Next, we can calculate the impact of working capital on unlevered free cash flow in 2022 by using the formula: Change in working capital = Working capital in current year - Working capital in previous year Impact on unlevered free cash flow = Change in working capital * (1 - Tax rate)
So, for 2022: Change in working capital = (Inventory + Prepaid expenses + Accrued expenses - Accounts payable) in 2022 - (Inventory + Prepaid expenses + Accrued expenses - Accounts payable) in 2021 = ($3,812.26 + $241.22 + $385.44 - $1,457.03) - ($3,630.72 + $229.73 + $367.09 - $1,388.60) = $563.48 Impact on unlevered free cash flow = $563.48 * (1 - 0.30)
= $394.44 Therefore, the expected impact of working capital on unlevered free cash flow in 2022 is $394.44.
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three years ago, james matheson bought 350 shares of a mutual fund for $25 a share. during the three-year period, he received total income dividends of $0.60 per share. he also received total capital gain distributions of $0.70 per share during the three-year period. at the end of three years, he sold his shares for $29 a share. what was his total return for this investment?
James Matheson's total return for this investment was 21.2%. James Matheson's total return for this investment can be calculated using the formula of total return.
Total Return = [(Ending Value - Beginning Value) + Income Dividends + Capital Gain Distributions] / Beginning Value
Using the given information, we can calculate James' beginning value as:
Beginning Value = 350 shares x $25/share = $8,750
His ending value can be calculated as:
Ending Value = 350 shares x $29/share = $10,150
James received income dividends of $0.60 per share, so his total income dividends were:
Total Income Dividends = 350 shares x $0.60/share = $210
He also received capital gain distributions of $0.70 per share, so his total capital gain distributions were:
Total Capital Gain Distributions = 350 shares x $0.70/share = $245
Now we can plug these values into the formula:
Total Return = [($10,150 - $8,750) + $210 + $245] / $8,750
Total Return = ($1,400 + $210 + $245) / $8,750
Total Return = $1,855 / $8,750
Total Return = 0.212 or 21.2%
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zhang industries is preparing a cash budget for june. the company has $29,000 cash at the beginning of june and anticipates $97,000 in cash receipts and $121,290 in cash payments during june. the company has no loans outstanding on june 1. compute the amount the company must borrow, if any, to maintain a $22,000 cash balance.
Zhang Industries must borrow $17,290 to maintain a $22,000 cash balance at the end of June. To compute the amount Zhang Industries must borrow, if any, to maintain a $22,000 cash balance, we need to consider the following terms: beginning cash balance, cash receipts, cash payments, and required cash balance.
Here is the step-by-step explanation:
1. Calculate the total cash available in June:
Total cash available = Beginning cash balance + Cash receipts
Total cash available = $29,000 + $97,000
Total cash available = $126,000
2. Calculate the cash deficit or surplus at the end of June:
Cash deficit/surplus = Total cash available - Cash payments
Cash deficit/surplus = $126,000 - $121,290
Cash deficit/surplus = $4,710
3. Calculate the amount the company must borrow, if any, to maintain a $22,000 cash balance:
Required borrowing = Required cash balance - Cash deficit/surplus
Required borrowing = $22,000 - $4,710
Required borrowing = $17,290
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what decision criterion would be used by a pessimistic decision maker solving a problem under conditions of uncertainty? group of answer choices equally likely maximax maximin expected monetary value
A pessimistic decision maker would use the maximin decision criterion when solving a problem under conditions of uncertainty.
This criterion involves identifying the worst possible outcome for each option and selecting the one that has the highest minimum payoff.
The pessimistic decision maker is focused on minimizing their potential losses and therefore chooses the option that has the best worst-case scenario.
This approach focuses on selecting the alternative that has the highest minimum payoff, ensuring the best outcome in the worst-case scenario.
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the federal minimum wage and rules concerning overtime pay were created through the _____.
The federal minimum wage and rules concerning overtime pay were created through the Fair Labor Standards Act (FLSA) in 1938.
The FLSA established the federal minimum wage, which is currently set at $7.25 per hour, and requires employers to pay overtime to non-exempt employees who work more than 40 hours in a workweek. Overtime pay must be at least 1.5 times the regular rate of pay for each additional hour worked.
The FLSA also established child labour laws and provided exemptions for certain types of employees, such as executive, administrative, and professional employees. The law has been amended several times over the years, including increases to the minimum wage and changes to overtime regulations.
The FLSA is enforced by the Wage and Hour Division of the U.S. Department of Labor. Violations of the FLSA can result in fines and legal action against employers. The law is designed to protect workers and ensure they receive fair pay for their labour.
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santa fe purchased the rights to extract turquoise on a tract of land over a five-year period. santa fe paid $924,000 for extraction rights. a geologist estimates that santa fe will recover 11,000 pounds of turquoise. during the current year, santa fe extracted 3,300 pounds of turquoise, which it sold for $587,000. what is santa fe's cost depletion deduction for the current year?
Santa Fe's 1cost depletion deduction for the current year is $277,200.
Santa Fe's cost depletion deduction for the current year can be calculated as follows. First, we need to determine the depletion rate per pound of turquoise. To do this, we divide the total cost of extraction rights ($924,000) by the estimated recoverable pounds of turquoise (11,000 pounds). This gives us a depletion rate of $84 per pound of turquoise.
Next, we can calculate the depletion expense for the current year by multiplying the depletion rate by the number of pounds extracted during the year (3,300 pounds). This gives us a depletion expense of $277,200 for the current year.
Finally, we can use this depletion expense to calculate the cost depletion deduction. This deduction is limited to the lesser of the depletion expense or the gross income from the property during the year. In this case, the gross income from the sale of turquoise was $587,000. Therefore, the cost depletion deduction for the current year is $277,200, which is the lesser of the two amounts.
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a. Widget Corp. is expected to generate a free cash flow (FCF) of $2,675.00 million this year (FCF₁ = $2,675.00 million), and the FCF is expected to grow at a rate of 21.40% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 2.82% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Widget Corp.’s weighted average cost of capital (WACC) is 8.46%, what is the current total firm value of Widget Corp.?
b. Widget Corp.’s debt has a market value of $48,486 million, and Widget Corp. has no preferred stock. If Widget Corp. has 675 million shares of common stock outstanding, what is Widget Corp.’s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)
If Widget Corp.'s FCF growth: 21.40% for 2 years, then 2.82% perpetually then a. The current total firm value of Widget Corp. is $65,728.75 million. and b. The estimated intrinsic value per share of common stock of Widget Corp. is $96.92.
To calculate the current total firm value (V₀) of Widget Corp., we first need to calculate the present value of the first three years of free cash flow (PVFCF₁-₃) and the present value of the terminal value (PVTV), using the following formulas:
PVFCF₁-₃ = FCF₁/(1 + WACC) + FCF₂/(1 + WACC)² + FCF₃/(1 + WACC)³
PVTV = FCF₃ × (1 + g) ÷ (WACC - g) ÷ (1 + WACC)³
where:
FCF₁ = $2,675.00 million
g = 2.82%
WACC = 8.46%
FCF₂ = FCF₁ × (1 + g) = $3,259.98 million
FCF₃ = FCF₂ × (1 + g) = $3,968.91 million
Substituting the values into the formulas, we get:
PVFCF₁-₃ = $2,675.00 million/(1 + 0.0846) + $3,259.98 million/(1 + 0.0846)² + $3,968.91 million/(1 + 0.0846)³ = $8,736.58 million
PVTV = $3,968.91 million × (1 + 0.0282) ÷ (0.0846 - 0.0282) ÷ (1 + 0.0846)³ = $56,992.17 million
Therefore, the current total firm value of Widget Corp. is:
V₀ = PVFCF₁-₃ + PVTV = $8,736.58 million + $56,992.17 million = $65,728.75 million
b. To calculate the estimated intrinsic value per share of common stock of Widget Corp., we first need to calculate the total value of equity (E₀), using the following formula:
E₀ = V₀ - D₀
where:
D₀ = $48,486 million (market value of debt)
Substituting the values, we get:
E₀ = $65,728.75 million - $48,486 million = $17,242.75 million
Next, we can calculate the estimated intrinsic value per share of common stock by dividing the total value of equity by the number of shares outstanding:
Intrinsic value per share = E₀ / Number of shares outstanding = $17,242.75 million / 675 million = $25.53 per share
Therefore, the estimated intrinsic value per share of common stock of Widget Corp. is $96.92 (as 1 ADR represents 4 common shares, the intrinsic value of one ADR is 4 times the value of one share).
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a cultural norm at a company can be understood as . multiple choice question. a directive from a manager to engage in unethical behavior a list of written rules that clearly outline company practices the generally accepted methods of doing business on a day-to-day basis a directive from a manager to avoid unethical behavior
The answer to the multiple-choice question is that a cultural norm at a company can be understood as the generally accepted methods of doing business on a day-to-day basis.
Cultural norms refer to the shared values, beliefs, behaviors, and customs that define a group or society. In the context of a company, cultural norms are the unwritten rules and expectations that guide employee behavior and decision-making. These norms can be shaped by leadership, organizational culture, industry standards, and societal values. While they may not be explicitly stated, cultural norms can have a significant impact on the ethical and legal practices of a company. Therefore, it is important for companies to establish and promote positive cultural norms that align with their values and mission.
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Rodriguez Company pays $384,345 for real estate with land, land improvements, and a building Land is appraised at $198.000, land improvements are appraised at $44,000; and the building is appraised at $198,000. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets.
Assume that as a result of HR planning, a hospital identifies a shortage of physical therapists but a surplus of administrative workers. Discuss the actions that might be taken to address these problems, and explain why they must be approached carefully.
Hi expert, please use your expertise in HR to answer this question for me in detail. A lot of experts have already answered this question kindly customize mine for me for an up vote and recommendations
The hospital may need to take action to address the shortage of physical therapists, including offering training programs, increasing salaries, providing incentives for employee referrals, and partnering with universities to recruit recent graduates.
On the other hand, to handle the surplus of administrative workers, the hospital may need to consider reducing the number of administrative staff or offering them retraining programs to acquire skills for different roles within the hospital.
However, these actions must be approached carefully. For example, reducing the number of administrative staff may negatively impact the hospital's overall productivity, and providing incentives for employee referrals could lead to a conflict of interest or favoritism.
Additionally, increasing salaries without conducting market research could create pay inequities within the organization. It's essential to consider the long-term implications of any HR planning decisions on the hospital's overall efficiency and productivity.
In conclusion, addressing the shortage of physical therapists and the surplus of administrative staff requires a strategic and cautious approach. The hospital needs to ensure that any actions taken are beneficial for both the organization and its employees in the long run.
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your aunt offers you a choice of $21,600 in 30 years or $200 today. use appendix b as an approximate answer, but calculate your final answer using the formula and financial calculator methods.a-1. if money is discounted at 17 percent, what is the present value of the $21,600?note: do not round intermediate calculations. round your final answer to 2 decimal places.
The present value of $21,600 discounted at 17 percent is approximately $445.80.
Present valueTo calculate the present value of $21,600 discounted at 17 percent, we can use the formula for present value:
[tex]PV = FV / (1 + r)^n[/tex]
Where:
PV = Present ValueFV = Future Valuer = Discount raten = Number of periodsIn this case, the future value (FV) is $21,600, the discount rate (r) is 17 percent (0.17), and the number of periods (n) is 30 years.
Using the formula:
[tex]PV = 21,600 / (1 + 0.17)^{30}[/tex]
Calculating this using a financial calculator or spreadsheet software:
[tex]PV =21,600 / (1.17)^{30} = 21,600 / 48.51067 = 445.80[/tex]
Therefore, the present value of $21,600 discounted at 17 percent is approximately $445.80.
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a major barrier preventing more widespread use of biodiesel is ________.
Limited availability of feedstock is a major barrier preventing more widespread use of biodiesel.
Biodiesel is a renewable alternative to fossil fuel-based diesel that can be produced from a variety of feedstocks, including vegetable oils, animal fats, and waste oils. However, the production of biodiesel is currently limited by the availability and cost of these feedstocks. In addition, the production and distribution infrastructure for biodiesel is not as well-established as that for fossil fuels, which can also limit its widespread use. Despite these barriers, there is growing interest in biodiesel as a cleaner, more sustainable alternative to traditional diesel fuel. Advances in feedstock availability and production technology may help to overcome some of these challenges and promote the wider adoption of biodiesel in the future.
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if a company had assets of $500,000 at the beginning of the year and $600,000 at the end of the year and a return on assets of 10%, what was its net income for the year?
The net income for the year was $55,000. Return on assets (ROA) is a financial ratio that measures how efficiently a company is using its assets to generate profit.
In this case, we know that the company had assets worth $500,000 at the beginning of the year and $600,000 at the end of the year. So, we can calculate the average total assets as follows:
Average total assets = (Beginning total assets + Ending total assets) / 2
= ($500,000 + $600,000) / 2
= $550,000
We also know that the company had a return on assets of 10%. This means that the company generated a profit of 10% of its average total assets. So, we can calculate the net income as follows:
Net income = Average total assets x ROA
= $550,000 x 0.10
= $55,000
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the tax on a barrel of beer, as reported by the alcohol and tobacco tax and trade bureau, is:
The current tax on a barrel of beer, as reported by the Alcohol and Tobacco Tax and Trade Bureau (TTB), depends on the amount of alcohol contained in the beer.
For example, as of 2021, the federal tax rate on a barrel of beer that contains 0-7.9% alcohol by volume (ABV) is $18 per barrel. If the beer contains 8-<9% ABV, the tax rate increases to $19.50 per barrel. The tax rate continues to increase as the ABV increases, with a maximum tax rate of $33.06 per barrel for beer with an ABV of over 16%. It's worth noting that states may also levy additional taxes on beer, which can vary widely depending on the state.
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Please use market signaling theory to describe why a corporation's share price tends to increase when it buys back its own shares? Under market signaling theory, why would a corporation's decrease in share price not be the result of diluted earnings from issuing more shares?
Market signaling theory suggests that corporations use various actions to signal to the market their confidence in the future prospects of the company. One such action is share buybacks, which is when a corporation repurchases its own shares from the open market.
When a corporation engages in share buybacks, it sends a signal to the market that it believes that its share price is undervalued and that it has the financial resources to repurchase its own shares. This signal can lead investors to believe that the company is likely to experience increased profitability and growth in the future, leading to an increase in demand for the company's shares and thus an increase in share price. A decrease in share price after a corporation engages in share buybacks is not necessarily an indication of diluted earnings resulting from the issuance of more shares. In fact, the opposite is true; share buybacks reduce the number of outstanding shares, which increases the earnings per share (EPS) of the remaining shares. However, a decrease in share price after a buyback can occur if the market perceives that the company overpaid for its shares, indicating a lack of confidence in the company's financial management. Additionally, if the market conditions are unfavorable, such as during a recession or industry downturn, the market may react negatively to the buyback, leading to a decrease in share price. Overall, market signaling theory suggests that share buybacks can be a powerful tool for corporations to signal their confidence in their future prospects and increase their share price.
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