4. Calculate the required rate of return for Manning Enterprises assuming that investors expect 3.5% rate of inflation in the future. The real risk-free rate is 2.5%, and the market risk premium is 6.5% Manning has a beta of 1.7, and its realized rate of return has averaged 13.5% over the past 5 years.

Answers

Answer 1

Answer: 17.05%

Explanation:

Given the variables available, the method to be used to calculate the required return is the Capital Asset Pricing Model with the formula;

Required Return = Nominal Risk-free rate + beta ( Market premium)

Nominal Risk-free rate =  real risk-free rate + inflation

= 2.5% + 3.5%

= 6%

Required Return = 6% + 1.7 ( 6.5%)

Required Return = 6% + 11.05%

Required Return = 17.05%


Related Questions

Alternative price indexes
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the
______________ using _____________ by the
______________ using_____________ and multiplying by 100. However, the CPI reflects only the prices of all goods and services _________
Indicate whether the price change described in each scenario may affect the GDP deflator or the CPI for the United States.
Scenario Show up in the..
GDP Deflator CPI
An increase in the price of a Japanese-made phone that is popular
among U.S. consumers
A decrease in the price of a Fisher King deep-water reel, a popular
recreational fishing product built in Rarington, Indiana

Answers

Answer:

-value of all goods and services produced in the economy this year

-this year's prices

-value of all goods and services produced in the economy this year

-the base year's prices

-bought by consumers

-the first scenario would have effect on the GDP deflator

-the second scenario would have effect on the GDP deflator

Explanation:

The GDP deflator is used in measuring inflation in the economy by measuring changes in prices of goods in the economy. It is used together with other indices such as consumer price index in arriving at a more accurate or balanced measurement of inflation I'm the economy. The GDP deflator would be affected above because it is more comprehensive in it's calculation or measurement as it doesn't take into account only a basket of goods and services like the Consumer price index does

Paragon Properties built a shopping center at a cost of $50M in year 2010. The company started leasing space in July of 2014. The land was purchased for $5M. Determine the depreciation charges through 2017 if the property was sold in November 2017.

Answers

Year = 2014  

Cost= $50 M - $5 M = $45 M

Rate =1.177%  

Depreciation= 1.177% * $45 M = $529,650

Year=2015

Cost = $45 M

Rate= 2.564%  

Depreciation= $45 M * 2.564% = $1,153,800

Year = 2016

Cost = $45 M

Rate =2.564%  

Depreciation= $45 M * 2.564% = $1,153,800

Year = 2017

Cost = $45 M

Rate =2.564%  

Depreciation= $45 M * 2.564% = $1,153,800

therefore, total depreciation= $1,153,800 + $1,153,800 + $1,153,800 + $529,650 = $3,991,050

Depreciation charges through 2017 = $3,991,050 .

The Depreciation charges through 2017, if property was sold in November 2017 will be $3,991,050.

Depreciation

In the following question we are provided with information as follows:

The Value of the Property in the year 2010 = $50M. The Company started leasing space in July of 2014.

Land was purchased for $5M, which means the Cost of property is now $50M - $5M = $45M. The Depreciation rate in 2014 is 1.17%,

Depreciation value in 2014 = $45M × 1.17 =Depreciation rate in 2016 = 2.5%, Depreciation value = $45M × 2.5% =  $529,650

Depreciation rate in 2015 = 2.5%, which give Depreciation value in 2015 = $45M × 2.5% =  $1,153,800.

Depreciation rate in 2016 = 2.5%, Depreciation value = $45M × 2.5% =  $1,153,800.

Depreciation rate in 2017 = 2.5%, Depreciation value = $45M × 2.5% =  $1,153,800.

Therefore, Total Depreciation value in 2017 =  $529,650 + $1,153,800 + $1,153,800 + $1,153,800  = $3,991,050

Learn More about Depreciation here:

https://brainly.com/question/25297296

Identify the sentences with correct parallel structure.
1. Al is tasked with researching, analyzing, and to write the Simpson Inc. recommendation report.
2. Sarah would like to meet her sales goals, run a marathon, and get her promotion before the end of July. Last month, I traveled for business, pleasure, and community service
3. On the second floor, past the green door, next to the green vase, you'll see your umbrella
4. Next month, we anticipate that Hassam Creamery will consolidate, Nicolette Dairy Systems will be acquired, and General Lactose will go out of business.

Answers

Answer:

2. Sarah would like to meet her sales goals, run a marathon, and get her promotion before the end of July. Last month, I traveled for business, pleasure, and community service

3. On the second floor, past the green door, next to the green vase, you'll see your umbrella

Explanation:

The parallel structure refers to the structure in which there is the same words example that reflects a minimum two words or thoughts that contains the same importance

In the given options the second and third statement represents the parallel structure as it involves various thoughts that have one objective to accomplish that

Hence, all the other options are incorrect

QUESTION 2
You spend RM 50,000 a year with e-book website and has done so for many years and now you are having some issues with the publisher. In your meeting with an e-book publisher representative, a particular e-book from the website has become too expensive at RM 50 a month, and it caused you to earn some extra income. You are going to unsubscribe if they do not change the subscription plan. What would you do if the representative suggested for a "free" subscription for your customer for a few months?

Answers

Answer:

would accept the offer

Explanation:

Yes, this appears to be a cost-effective decision because the fact is that, I have been spending for years with this particular e-book website and by offering me a "free" subscription for a few months gives me ample time to adjust to the new subscription fee. I it even caused me to earn some extra income.

It a common practice for some businesses to offer free subscription plans to all or some of their customers for a brief time period after which they will start paying.

Sketches Inc. purchased a machine on January 1, 2016. The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,100 units in 2016 and 1,550 units in 2017. Required: a. Calculate depreciation expense for 2016 and 2017 using the straight-line method.

Answers

Answer:

Annual depreciation= $4,000

Explanation:

Giving the following information:

The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of estimated 5-year life.

To calculate the depreciation expense, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (29,000 - 9,000)/5

Annual depreciation= $4,000

The following accounts are from last year’s books at Sharp Manufacturing: Raw Materials Bal 0 (b) 154,000 (a) 164,000 10,000 Work In Process Bal 0 (f) 510,000 (b) 132,000 (c) 168,000 (e) 210,000 0 Finished Goods Bal 0 (g) 460,000 (f) 510,000 50,000 Manufacturing Overhead (b) 22,000 (e) 210,000 (c) 26,000 (d) 156,000 6,000 Cost of Goods Sold (g) 460,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?

Answers

Answer:

$510,000

Explanation:

Calculation for the amount of cost of goods manufactured for the year

Two method can be used in calculating the cost of goods manufactured for the year

METHOD 1

Using this formula

Cost of goods manufactured= Beginning Balance Cost of goods sold + Ending Balance Finishing goods ending balance

Where,

Beginning Balance of Cost of goods sold = $460,000

Ending Balance Finishing goods = $510,000 -$460,000 = 50,000

Let plug in the formula

Cost of goods manufactured=$460,000+$50,000

Cost of goods manufactured=510,000

OR METHOD 2

Calculation for the cost of good manufactured for the year

Beginning work in process $0

Direct material $132,000

Direct labor $168,000

Manufacturing overhead $210,000

Less: Ending work in process $0

Cost of goods manufactured $510,000

Therefore the amount of cost of goods manufactured for the year will be $510,000

Angela has an annual contract with Stenbach Service Centre to provide property maintenance services; this includes lawn care, snow removal and parking lot maintenance. Angela spends, on average, 20 hours per week working at the company’s premises and is paid a flat amount monthly. She hires part-time workers, when necessary, to assist her. Angela does not have any other clients.

Angela uses her own small tools; however the company supplies and maintains a riding lawn mower and a snow plow for her use. Her contact at the company is Chris Moore, the Facilities Manager, who meets with her every Monday to discuss the work to be done that week. Chris approves Angela’s monthly invoices and submits them to Accounts Payable.

Does Angela have a contract of service or a contract for service with Stenbach Service Centre As the company’s Payroll Supervisor, explain to Chris the process and factors you used to make your decision.

Answers

Answer:

Angela and Stenbach Service Centre

Contract for Service and Contract of Service:

1. Angela has a contract for service.

2. Factors used to decide whether a contract is for service or of service:

a) Employment terms are slightly different from business contract terms.

b) Employees are paid Wages and Salaries, while contractors are paid fees.

c) Employees do not submit monthly invoices for payment, but contractors do.

d) Angela fills tax forms for herself and remits the taxes, so she is self-accounting with respect to her income taxes, unless withholding taxes like Sales taxes.  An employee's income tax is deducted from her salary before payment and the company remits the taxes to the IRS.

Explanation:

The agreement between Angela, a self-employed individual, and Stenbach Service Centre is a contract for service.   A contract of service is an employment contract between Stenbach Service Centre, the employer, and the Payables Supervisor, an employee, for example.  Essentially, Angela can be described as an outsourcer for services vendor or service provider to Stenbach Service Centre, an outsourcer of service company.  Angela is engaged for a fee to carry out property maintenance services, including lawn care, snow removal, and parking lot maintenance.  She is an independent contractor with Stenbach.  She does not need to work on any day and she can subcontract her work by hiring others to help her discharge the service.  An employee, like Chris, cannot hire another person to discharge his responsibilities and must work on designed days.

Another important difference is that Angela submits monthly invoices for actual work done.  An employee does not have to submit an invoice in order to be paid for work done.  Angela's invoices will not be of the same amount from one month to the other, unlike Chris' whose salary pay sheet may be static in amount from month to month.  

Data for 2021 were as follows: PBO, January 1, $243,000 and December 31, $278,000; pension plan assets (fair value) January 1, $186,000, and December 31, $233,000. The projected benefit obligation was underfunded at the end of 2021 by:

Answers

Answer:

$45,000

Explanation:

Computation for the projected benefit obligation

December 31 PBO($278,000)

December 31 Plan assets 233,000

Funded status($45,000)

Therefore the projected benefit obligation was underfunded at the end of 2021 by: $45,000

How does management use coded data for decision support
Discuss how medical staff an departments use coded data and give example a. How does management use coded data for decision support and management decisions?

Answers

Answer:

yes

Explanation:

Decision making involves a carefully thought out process about the best course of action, and medical staffs often rely on them in their decision making.

For example, medical staff can evaluate the quality and efficiency of the care they provide by monitoring negative tends that may appear on coded data, Meanwhile management can use their findings from coded data to draft out better health policies for their organization.

Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours 40,600 Estimated variable manufacturing overhead $ 6.54 per machine-hour Estimated total fixed manufacturing overhead $ 944,762 Actual machine-hours for the year 36,700 The predetermined overhead rate for the recently completed year was closest to:

Answers

Answer:

The predetermined overhead rate is 29.81 per machine hour

Explanation:

Fixed predetermine overhead rate = Estimated fixed manufacturing overhead / Estimated machine hour

Fixed predetermine overhead rate = $944,762 / 40,600

Fixed predetermine overhead rate = $23.27 per machine hour

Total predetermine overhead rate = Fixed predetermine overhead rate + Estimated variable manufacturing overhead

= $23.27 + $6.54

= 29.81 per machine hour

Use the information provided below to answer the following question (same for set of 5 questions). Nash began April with accounts receivable of $49,000 and a credit balance in Allowance for Uncollectible Accounts of $1,000. They made $500,000 in credit sales (sales on account) during April. Collections from customers totaled $493,003. One customer, frank Jones, could not pay his $1, 200 account receivable. On April 7, he negotiated to exchange his past-due account for a $1, 200, 4%, 90-day note receivable. Historically, 1% of credit sales have prove uncollectible. During April, 3375 of old accounts receivable were written off as uncollectible.
The necessary adjusting entry at April 30 would include:
a) Debit to Interest Receivable, $11, 84
b) Credit to Interest Payable, $48.00
c) Debit to Note Receivable, $3.02
d) Credit to Interest Revenue, $3.02
e) Both C and D.

Answers

Answer:

d) Credit to Interest Revenue, $3.02

Explanation:

beginning balance of accounts receivable $49,000

allowance for doubtful accounts $1,000

net credit sales $500,000

collections on accounts receivable $493,003

$6,997

Frank Jones:

Dr Notes receivable 1,200

    Cr Accounts receivable 1,200

Write offs:

Dr Allowance for doubtful accounts 3,375

    Cr Accounts receivable 3,375

the adjusting entry in this question refers to the notes payable from frank Jones:

we must determine the interest revenue for the month of April = $1,200 x 0.04 x (23 days/365 days) = $3.02

the journal entry should be:

April 30, accrued interest from notes receivable

Dr Interest receivable 3.02

    Cr Interest revenue 3.02 ⇒ OPTION D

Multiple Product Performance Report Storage Products manufactures two models of DVD storage cases: regular and deluxe. Presented is standard cost information for each model:
Cost Components Regular Deluxe
Direct materials
Lumber 2 board feet × $3 = $6.00 3 board feet × $3 = $9.00
Assembly kit = 2.00 = 2.00
Direct labor 1 hour × $4 = 4.00 1.25 hours × $4 = 5.00
Variable overhead 1 labor hr. × $2 = 2.00 1.25 labor hrs. × $2 = 2.50
Total $14.00 $18.50
Budgeted fixed manufacturing overhead is $13,000 per month. During July, the company produced 5,000 regular and 2,000 deluxe storage cases while incurring the following manufacturing costs:
Direct materials $70,000
Direct labor 31,000
Variable overhead 11,500
Fixed overhead 15,500
Total $128,000
Prepare a flexible budget performance report for the July manufacturing activities.

Answers

Answer:

Flexible budget performance report for the July manufacturing activities

Direct Materials :                                         $62,000

Lumber :

Regular ($6.00 × 5,000) $30,000

Deluxe ($9.00 × 2,000) $18,000

Assembly kit :

Regular ($2.00 × 5,000) $10,000

Deluxe ($2.00 × 2,000) $4,000

Labor :                                                            $30,000

Regular ($4.00 × 5,000) $20,000

Deluxe ($5.00 × 2,000) $10,000

Variable overhead :                                      $15,000

Regular ($2.00 × 5,000)  $10,000

Deluxe ($2.50 × 2,000)   $5,000

Fixed manufacturing overhead                  $13,000

Total                                                             $120,000

Explanation:

A Flexed Budget is a Master budget that has been adjusted to reflect the Actual Level of Operation.

Ceteris paribus, if personal taxes are increased, consumer spending will ____________ and the aggregate demand curve will shift to the ______________.

Answers

Answer:

decrease, left

Explanation:

In simple words, when the authorities increase personal taxes in the community the disposable income of the individuals decrease. Disposable income refers to the net income that individuals get in hand for their spending on utilities.

Thus, due to less disposable income the spending will decrease which will further lead to decrease in demand, theretofore, shifting the demand curve to the left.

Dorpac Corporation has a dividend yield of 1.3 %1.3%. Its equity cost of capital is 7.4 %7.4%​, and its dividends are expected to grow at a constant rate. a. What is the expected growth rate of​ Dorpac's dividends? b. What is the expected growth rate of​ Dorpac's share​ price?

Answers

Answer:

(A) 6.1%

(B) 6.1%

Explanation:

Dorpac corporation has a dividend yield of 1.3%

Its equity cost of capital is 7.4%

(a) The expected growth rate of Dorpac dividend can be calculated as follows

= Equity cost of capital-Dividend yield

= 7.4%-1.3%

= 6.1%

(b) Since the dividend is expected to grow at a constant growth rate then, the expected growth rate of Dorpac's share price is 6.1%

Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If yoy require a return of 10 percent on the company's stock, how much will you pay for a share today?

Answers

Answer:

Price of stock = $44.05

Explanation:

The price of a share can be calculated using the dividend valuation model  

According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.  

To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.

The formula below would help

PV = G× (1+r)^(-n)

PV = Present Value, r  required rate of return - 10%, n- the year, G- dividend payable in a particular year

Year                             PV of dividend

1            2+6 ×× 1.1^-1  = 7.27

2           10 ×   1.1^-2 = 8.26

3           12× 1.1^-3    = 9.02

4           14 × 1.1^-4   =9.56

5          16 × 1.1^-5     = 9.93

Total Present Value of dividend = 7.27 + 8.26  +9.02  +9.56  +9.93  = 44.05

Price of stock = $44.05

 

 

 

Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If yoy require a return of 10 percent on the company's stock, how much will you pay for a share today?

Answer:

Price of stock = $44.05

Explanation:

The price of a share can be calculated using the dividend valuation model  

According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.  

To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.

The formula below would help

PV = G× (1+r)^(-n)

PV = Present Value, r  required rate of return - 10%, n- the year, G- dividend payable in a particular year

Year                             PV of dividend

1            2+6 ×× 1.1^-1  = 7.27

2           10 ×   1.1^-2 = 8.26

3           12× 1.1^-3    = 9.02

4           14 × 1.1^-4   =9.56

5          16 × 1.1^-5     = 9.93

Total Present Value of dividend = 7.27 + 8.26  +9.02  +9.56  +9.93  = 44.05

Price of stock = $44.05

 

 

 

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.
A. True
B. False

Answers

Answer:

false

Explanation:

Pell Corporation is a company that manufactures computers. Assume that Pell: allocates manufacturing overhead based on machine hours estimated 9,000 machine hours and $ 90, 000 of manufacturing overhead costs actually used 15,000 machine hours and incurred the following actual costs: (click the icon to view the actual costs.) The company allocated manufacturing overhead of $150, 000 using a predetermined overhead rate of $ 10.00 per machine hour. The total actual manufacturing overhead costs are $84. What entry would Pell make to adjust the manufacturing overhead account for overallocated or underallocated overload?

Answers

Answer:

Adjusting entry is given below

Explanation:

DATA

Estimated Overhead = $150,000

Actual Overhead = $84,000

Under/Over allocated =?

Solution

Under/Over allocated Overhead = Estimated Overhead - Actual Overhead

Under/Over allocated Overhead = $150,000 - $84,000

Under/Over allocated Overhead = $66,000

We had over-allocated manufacturing overhead with $66,000

To adjust manufacturing Overhead account we should make the following entry

Entry                                               DEBIT     CREDIT

Manufacturing Overhead              $66,000

Cost of goods sold                                          $66,000

Mary buys an annuity that promises to pay her $1,500 at the end of each of the next 20 years. The appropriate interest rate is 7.5%. What is the value of this 20-year annuity today?

Answers

Answer:

PV= $15,291.74

Explanation:

Giving the following information:

Annual cash flow= $1,5000

Number of years= 20

Interest rate= 7.5%

To calculate the present value, first, we need to determine the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {1,500*[(1.075^20) - 1]} / 0.075

FV= $64,957.02

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 64,957.02/(1.075^20)

PV= $15,291.74

On October 1, 2017, Waterway, Inc. assigns $1,160,700 of its accounts receivable to Wildhorse National Bank as collateral for a $747,900 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Waterway and Wildhorse.

Answers

Answer:

                                             Waterway, Inc.

        General Journal                            Debit            Credit

Cash                                                      $713,079

Interest Expense ($1,160,700 * 3%)     $34,821  

Notes Payable                                                          $747,900

                                     Wildhorse National Bank

        General Journal                            Debit            Credit

Notes Receivable                                  $747,900

Cash                                                                           $713,079

Interest Revenue ($1,160,700 * 3%)                          $34,821

Zisk Co. purchases raw materials on account. Budgeted purchase amounts are: April, $99,000; May, $129,000; and June, $139,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $41,000. Prepare a schedule of budgeted cash payments for April, May, and June.

Answers

Answer and Explanation:

The preparation of a schedule of budgeted cash payment for the three months i.e April, may and June is presented below:

Particulars                         April           May                June  

Purchase                          $99,000    $129,000        $139,000  

Payment made in

Latest Month (70%)       $69,300    $90,300          $97,300  

Payment made in

Next Month (30%)            $29,700     $38,700         $41,700  

                                    Cash Disbursements  

Particulars                        April             May                  June  

Payment made in  

Current Month (70%)      $69,300       $90,300          $97,300  

Add:

Last Month

Purchases       (30%)       $41,000        $29,700          $38,700  

Budgeted

Cash Payments                $110,300      $120,000        $136,000

A guitar manufacturer is considering eliminating its electric guitar division because its $100,280 expenses are higher than its $94,300 sales. The company reports the following expenses for this division.
Avoidable Unavoidable
Expense Expense
Cost of goods sold $56, 000
Direct expenses 9,250 $1,250
Indirect expenses 470 1, 600
Service department costs 6,000 1,430
Should the division be eliminated?
Electric Guitar Division is: Kept Eliminated
Sales 72,000
Expenses:
Direct expenses 1,250
Indirect expenses 1,600
Service department costs 1,430
Cost of goods sold 56,000
Total expenses 56,000 4,280
Net income (loss) 4,280
Revenues from electric guitar division
Avoidable expenses
Revenues are greater than (less than) avoidable expenses by
The electric guitar division should be:________.

Answers

Answer:

The electric guitar division should be: KEPT.

Explanation:

                                                      Avoidable           Unavoidable

                                                      Expense             Expense

Cost of goods sold                       $56, 000

Direct expenses                               $9,250                 $1,250

Indirect expenses                                $470                 $1,600

Service department costs               $6,000                 $1,430

total                                                  $71,720                $4,280

I believe that the $100,280 expenses and $94,300 sales are wrong, because total costs = $76,000. I looked up for more information and the correct sales number was $72,000.

differential analysis

                                     division kept         division sold         differential

                                                                                                  amount

revenues                      $72,000                 $0                         $72,000

COGS                         -$56, 000                                             ($56,000)

direct expenses            -$9,250                -$1,250                   ($8,000)

indirect expenses            -$470                -$1,600                       $1,130

service  costs               -$6,000                 -$1,430                  ($4,570)

total                                   $280                -$4,280                   $4,560

In the business world, a _________________ is recognized as a legally acceptable way for any business to keep knowledge of its particular methods of production from being known by competing firms.

Answers

Answer:

Trade secret

Explanation:

A trade secret refers to things like a process, formula or design that a company owns that have an economic value and provide a competitive advantage and that are known only by certain people inside the organization. According to this, the answer is that in the business world, a trade secret is recognized as a legally acceptable way for any business to keep knowledge of its particular methods of production from being known by competing firms because trade secrets refer to intellectual property that allows the organization to have a competitive advantage and they are maintained as a secret to avoid competing firms to copy its methods.

You write a call option on Google. The current price of one share of Google is $400, the option strike price is $410, and the option premium is $5 (all prices are per share). On the expiration day, the price of Google is $425. The following statement is true:
A) The call is in the money
B) your payoff is negative
C) your payoff is positive and equal to 10
D) A and B
E) A and C

Answers

Answer: E) A and C

Explanation:

A Call option is an option to buy a security at a certain price in future. The option is only exercised if the market price of the security is higher than the option price of the security. When this happens the Call is said to be in the money. On expiration day, the price of Google is $425 which is higher than the option price of $410 so the Call is in the money. Option A is correct.

The option premium is the amount paid for the option contract and so is an expense. Payoff is calculated as;

= Market Value - (Option Price + Option premium)

= 425 - ( 410 + 5)

= $10

Option C is correct as well.

In 2008, the United States began to witness one of the worst recessions since the 1930s. The collapse of the housing bubble in 2006 led to a massive decline in real estate prices, affecting consumers and institutions, especially banking and financial entities. Severe liquidity shortfalls in the United States as well as other global markets led to a serious credit crisis. During the credit crisis of 2008–2009, several banks and other businesses went through a reorganization process or were forced to liquidate. Consider the following example:________.
In January 2009, American electronics retailer Circuit City Inc. closed all of its stores and sold all of its merchandise.
The above is an example of:______.
A. Reorganization
B. Liquidation.

Answers

Answer:

B. Liquidation.

Explanation:

Liquidation is and aftermath of the inability of a company or establishment to meet up with her obligations at the required moment. Thus, the company folds-up, lay off her staff and stop operating. While reorganization is a form of restructuring in a company or establishment. It may involve change of positions and duties among capable staff.

The example in the given scenario is that of liquidation because it ceased from operation.

The following General Fund information is available for the preparation of the financial statements for the City of Eastern Shores for the year ended September 30, 2017:
Revenues:
Property taxes $ 27,025,000
Sales taxes 13,323,000
Fees and fines 1,332,000
Licenses and permits 1,730,000
Intergovernmental 2,375,000
Investment earnings 661,000
Expenditures:
Current:
General government 11,731,000
Public safety 24,451,000
Public works 6,219,000
Health and sanitation 1,171,000
Culture and recreation 2,163,000
Transfer to capital project fund 1,127,000
Special item—proceeds from sale of land 831,000
Fund balance, October 1, 2016 1,819,000
From the information given above, prepare a General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the City of Eastern Shores General Fund for the year ended September 30, 2017. (Deductions should be entered with a minus sign.)

Answers

Answer:

                                    City of Eastern Shores

          General Fund Statement of Revenues, Expenditures and

                    Changes in Fund Balances for the year ended

                                     September 30, 2017.

Particulars                     Amount($)                    Amount($)

Revenues  

Property Taxes            27,025,000  

Sales Taxes                  13,323,000  

Fees and Fines             1,332,000  

Licenses and Permits   1,730,000  

Inter Governmental      2,375,000  

Investment Earnings     661,000

Total Revenues           $46,446,000                 $46,446,000

Expenditures  

Current  

General Government     11,731,000  

Public Safety                  24.451,000  

Public Works                  6,219,000  

Health and Sanitation    1,171,000  

Culture and Recreation  2,163,000

Total Expenditures        $45,735,000                - $45,735,000

Excess of Revenue over Expenditure                      $711,000

Less : Transfer to capital project fund                     -$1,127,000

Add : Special Item - Proceeds from Sale of Land     $831,000

Net Change in Fund Balance                                     $415,000

Add : Fund Balance, Oct. 1, 2017                               $1,819,000

Fund Balance, Sep. 30, 2017                                   $2,234,000

The following information is available for Wildhorse Co. for the month of January: expected cash receipts $59,320; expected cash disbursements $66,850; and cash balance on January 1, $11,890. Management wishes to maintain a minimum cash balance of $8,230. Prepare a basic cash budget for the month of January.

Answers

Answer:

Ending cash balance$8,230

Explanation:

Preparation of basic cash budget for the month of January.

Wildhorse Co CASH BUDGET for the month of January

Beginning cash balance$11,890

Add: Cash receipts $59,320

Total cash available $71,210

($59,320+$11,890)

Less: Cash disbursements ($66,850)

Excess of available cash over cash disbursements $4,360

Financing needed $3,870

($8,230-$4,360)

Ending cash balance$8,230

Therefore the basic cash budget for the month of January will be $8,230

You want to have $12,500 in 10 years for a dream vacation. If you can earn an interest rate of .3 percent per month, how much will you have to deposit today?

Answers

Answer:

$8,778

Explanation:

To find the amount of money that you will have to deposit today, you have to use the formula to calculate the present value:

PV=FV/(1+i)^n

PV= present value

FV= future value= 12,500

i= interest rate= 0.003*12(to calculate the rate per year)= 0.036

n= number of periods of time= 10

PV=12,500/(1+0.036)^10

PV=12,500/1.424

PV=8,778

According to this, you will have to deposit today $8,778.

"An OTC equity trader has received a large influx of sell orders for ABC stock and, to fill them, has taken an extremely large long position in the firm's inventory account. The dealer would most likely:"

Answers

Answer:

decrease the bid price in the OTCBB

Explanation:

Given that, the dealer's Bid price is too high, this is believed to be the reason behind the sellers trying to make orders. Hence, to reduce the orders, the dealer will lower the Bid price.

Hence, in this case, the best answer or alternative to be considered is that, the dealer would most likely decrease the bid price in the OTCBB, this is specifically to discourage the sellers.

____ act as the export sales department for a manufacturer. Group of answer choices International freight forwarders Shippers associations Export management companies Export trading companies

Answers

Answer:

Export management companies

Explanation:

Export management companies acst as the export sales department for a manufacturer.

Export management companies refers to firms that helps in the distribution of goods produced by other firm's in the international market. They export goods on behalf of other firm's.

Export management companies are independent companies that provides support services for other firms engaged in exporting. Services rendered by export management companies includes: insuring, billing, shipping, warehousing among others.

They also help to provide important information that will improve the quality of product to firms who hire them.

Live Preview, found in the Font group, uses which method for seeing different font sizes without committing to them?
double-clicking the sizes on the Size drop-down list
pointing the mouse pointer to the sizes on the Size drop-down list
Oright-clicking the cell and clicking Preview Size on the drop-down list
clicking the sizes on the Size drop-down list

Answers

Answer:

pointing the mouse pointer to the sizes on the Size drop-down list

Live preview is the feature inbuilt in various new gadgets, Words, and Excel. It enables the user to preview the type of font, the color, the table style, the cell style, the number style, and many more without making the changes in the existing files.

The correct option is "pointing the mouse pointer to the sizes on the Size drop-down list".

The method or the way by which the font group can be live previewed is by simply pointing the mouse pointer over the toolbar where the font group is displayed under the Home tab. The pointer is simply dragged to various font sizes to see the live preview of each font style.

To know more about live preview, refer to the link:

https://brainly.com/question/20761178

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