Answer:
Price change in dollars = $104.22
% decrease in price of dollars = 11.13%
Explanation:
We assume the corporate bond have a face value of $1,000
Face Value = $1000
Coupon = 6.5%*1000/2 =32.50
Number of Periods = 15*2 =30
Semi annual rate of BBB bond = 7.2%/2 =3.6%
Price of BBB Bond = PV of Coupons + PV of Par Value =
Price of BBB Bond = 32.50*(((1-(1+3.6%)^-30)/3.6%)+1000/(1+3.6%)^30
Price of BBB Bond = $936.43
Semiannual Discount Rate for BB bond = 8.5%/2 = 4.25%
Price of BB Bond = PV of Coupons + PV of Par Value
Price of BB Bond = 32.50*(((1-(1+4.25%)^-30)/4.25%)+1000/(1+4.25%)^30
Price of BB Bond= $832.21
Price change in dollars = $936.43 - $832.21
Price change in dollars = $104.22
% decrease in price of dollars = $104.22 / $936.43
% decrease in price of dollars = 0.111295025
% decrease in price of dollars = 11.13%
Price change in dollars is 104.22
And, in percentage it is 11.13%.
The calculation is as follows:1. Face Value =1000
Coupon =6.5% ×1000 ÷ 2 =32.50
Number of Periods =15 × 2 =30
Semi annual rate of BBB bond =7.2% ÷ 2 =3.6%
Price of BBB Bond =PV of Coupons + PV of Par Value
=32.50 × (((1-(1+3.6%)^-30) ÷ 3.6%) + 1000/(1+3.6%)^30
=936.43
Now
Semiannual Discount Rate for BB bond =8.5% ÷2 =4.25%
Price of BB Bond =PV of Coupons + PV of Par Value
=32.50 × (((1-(1+4.25%)^-30) ÷ 4.25%)+1000 ÷ (1+4.25%)^30
=832.21
So,
Price change in dollars is
= 936.43 - 832.21
= 104.22
Now
Percentage decrease in price of dollars is
= 104.22 ÷ 936.43
= 11.13%
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What is the total amount of cash dividends paid to common stockholders for the years ended (a) September 30, 2017, and (b) September 24, 2016
Answer:
Note: Missing question but the full question is attached as picture below
The Cash dividends paid to common stockholders can be obtained the financing activities section of the Consolidated statement of cash flows tagged (Payments of dividends and dividends equivalents)
Cash dividend paid
Common stock issued and outstanding Cash dividends
(a) September 30, 2017 $12,769,000,000
(b) September 24, 2016 $12,150,000,000
Songsu Co. is struggling to control costs. We are hired as consultants to determine why the company’s actual costs exceed budgeted costs. The Tableau Dashboard is provided for our analysis.AH = Actual HoursSH = Standard HoursAR = Actual RateSR = Standard Rate1. & 2. Compute the direct labor rate variance and direct labor efficiency variance. Indicate whether this cost variance is favorable, unfavorable or no variance.3. & 4. Compute the variable overhead variance and fixed overhead variance. Indicate whether this cost variance is favorable, unfavorable or no variance.
Answer:
1. Direct labor rate variance=$38,250 Favorable
2. Direct labor efficiency variance=$43,350 UnFavorable
3. Variable overhead cost=$21,400 Favourable
4. Fixed overhead cost=$6,800 Unfavorable
Explanation:
1. & 2. Computation for the direct labor rate variance and direct labor efficiency variance
Computation for DIRECT LABOR RATE VARIANCE using this formula
Direct labor rate variance= (Actual hour * Actual rate)-(Actual hour* Standard rate)
Let plug in the formula
Direct labor rate variance=[(5,100*2.5)*$14]- [(5,100*2.5)*$17]
Direct labor rate variance=(12,750*$14)-(12,750*$17)
Direct labor rate variance=$178,500-$216,750
Direct labor rate variance=$38,250 Favorable
Therefore Direct labor rate variance will be $38,250 Favorable
Computation for DIRECT LABOR EFFICIENCY VARIANCE using this formula
Direct labor efficiency variance= (Actual hour *Standard rate)-(Standard hour* Standard rate)
Let plug in the formula
Direct labor efficiency variance=[(5,100*2.5)*$17]- [(5,100*2)*$17]
Direct labor efficiency variance=(12,750*$17)-(10,200*$17)
Direct labor efficiency variance=$216,750-$,173,400
Direct labor efficiency variance=$43,350 UnFavorable
Therefore Direct labor efficiency variance will be $43,350 UnFavorable
3. & 4. Computation for the variable overhead variance and fixed overhead variance.
Computation for VARIABLE OVERHEAD VARIANCE
First step is to calculate the Overhead cost applied using this formula
Let plug in the formula
Overhead cost applied=Predetermined overhead rate*Standard Direct Labor hour)
Overhead cost applied=$12*(5,100*2)
Overhead cost applied=$12*10,200
Overhead cost applied=$122,400
Now let calculate Variable overhead cost using this formula
Variable overhead cost=Overhead cost applied-Actual results
Let plug in the formula
Variable overhead cost=$122,400-$101,000
Variable overhead cost=$21,400 favourable
Therefore Variable overhead cost will be $21,400 Favourable
Computation for FIXED OVERHEAD VARIANCE
First step is to calculate the overhead cost applied using this formula
Overhead cost applied=Predetermined overhead rate*Standard DL hour)
Overhead cost applied=$6*(5,100*2)
Overhead cost applied=$6*10,200
Overhead cost applied=$61,200
Now let calculate Fixed overhead cost using this formula
Fixed overhead cost=Predetermined overhead rate*Standard Direct Labor hour)
Let plug in the formula
Fixed overhead cost=$61,200-&68,000
Fixed overhead cost=$6,800 Unfavorable
Therefore Fixed overhead cost will be $6,800 Unfavorable
A company makes $1 million in after-tax profits for the year. It spends the entire amount on new equipment. Which of the following is true?
a. Its leverage ratio at the end of the year is higher than it was one year before
b. Its retained earnings for the year equal zero.
c. Its book value at the end of the year is $1 million greater than that of one year before.
d. Its book value at the end of the year is the same as that of one year before.
Answer:
c. Its book value at the end of the year is $1 million greater than that of one year before.
Explanation:
When the entire retained earnings of $1 million are spent on buying the equipment, then company's assets will rise by $1 million and similarly, its equity will also rise by $1 million. So, Company' s book value at the end of the year will be $1 million greater than that of one year before.
Penney Fashions is adding a new line of shoes to the company portfolio and has the following information: the expected market return is 13%, the risk-free rate is 3%, and the expected return on the new project is 11%. What is the beta of the project?
Answer:
0.80
Explanation:
Based on the Capital Asset Pricing Model(CAPM), the formula for determining the expected return on the project stated below can be used to determine the beta of the project, whereby the formula is rearranged such that the project beta is made the subject of the formula:
expected return=risk-free rate+beta*(market return-risk-free rate)
expected return on the project=11%
risk-free rate=3%
beta=the unknown
market return=13%
11%=3%+beta*(13%-3%)
11%=3%+beta*10%
11%-3%=beta*10%
8%=beta*10%
beta=8%/10%=0.80
For Year 2 Daisy Corporation reported net income of $60; net sales $800; and average shares outstanding 6. There were no preferred stock dividends. What were the Year 2 earnings per share for Daisy
Answer:
$10
Explanation:
Daisy corporation reported a net income of $60
Net sales of $800
Average shares outstanding of 6
Therefore the earnings per share of Daisy corpora tion on year 2 can be calculated as follows.
= net income/Average shares outstanding
= $60/6
= $10
You are given an annuity-immediate with 11 annual payments of 100 and a final balloon payment at the end of 12 years. At an annual effective interest rate of 3.5%, the present value at time 0 of all the payments is 1,000. Using an annual effective interest rate of 1%, calculate the present value at the beginning of the ninth year of all remaining payments.
Answer:
The present value at the beginning of the ninth year of all remaining payments is 316.09
Explanation:
It is assumed that it is an ordinary annuity.
First, we need to calculate the final payment.
Use the following formula to calculate the final payment
Final Payment When an annuity is ordinary
Final payment = fv(rate,nper,pmt,pv) * (1+3.5%)
Where
rate = 3.5%
nper = 11
pmt = 100
pv = -1,000
Placing values in the formula
Final payment = fv(3.5%,11,100,-1000)*1.035
Final payment = $150.87
Now calculate the present value at the beginning of the ninth year of all remaining payments.
Present Value = ( Ninth payment / ( 1 + interest rate )^9 ) + ( Tenth payment / ( 1 + interest rate )^10 ) + ( Eleventh payment / ( 1 + interest rate )^11 ) + ( Final payment / ( 1 + interest rate )^11 )
Present Value = ( 100 / ( 1 + 3.5% )^9 ) + ( 100 / ( 1 + 3.5% )^10 ) + ( 100 / ( 1 + 3.5% )^11 ) + ( 150.87 / ( 1 + 3.5% )^11 )
Present Value = 73.37 + 70.89 + 68.49 + 103.34
Present Value = 316.09
A web interface which represents integrated personalized business content delivered to senior managers is
Answer:
Web portal
Explanation:
A web portal, simply called a portal, is a specifically designed website that provides specific and relevant information to its users. The information is accessed from a single interface. A portal serves as a reference point or a collection of categorized content.
In an organization, a web portal can be designed to present content relevant to senior managers only. The portal allows the senior managers to search, navigate and apply content relevant to their duties from a single interface point
Charley Davison Inc. produced 10,000 motorcycles last year and sold 9,000 of them each for $18,000/bike. Variable cost was $13,000/bike. Fixed cost was $25 million and it had no debt. Assume no profits tax. It paid out all profits as dividends. Which of the following are true?
a. Profits = $20 million
b. Profits = $25 milion
c. Piotits-513 million loss)
d. Change in cash= -S20 million
e. Change in cash= -$25 million
f. Change in cash =- $13 million
Answer:
a. Profits = $20 million
Explanation:
The computation is shown below
Total revenue is
= Number of bikes sold × sale price of a bike
= 9,000 × 18,000
= $162,000,000
Total costs = fixed costs + variable costs
where,
Fixed costs = $25 million or $25,000,000.
And,
The Variable cost for the bikes sold is
= number of bikes sold × variable cost per bike
= 9000 × 13000
= $117,000,000
So, the total costs is
= $25,000,000 + $117,000,000
= $142,000,000
Now
Profit = total revenue - total cost
= $162,000,000 - $142,000,000
= $20,000,000
Hence, the correct option is a.
A purchase of a pair of Italian designer jeans by a resident of Brazil would be considered an when counting GDP in Brazil. As a result, this purchase would be Brazilian GDP. A purchase of a bathing suit made in Brazil and sold in Canada would be considered an for Brazilian GDP, which would be Brazilian GDP:_________
Answer:
A purchase of a pair of Italian designer jeans by a resident of Brazil would be considered an import when counting GDP in Brazil. As a result, this purchase would be deducted from Brazilian GDP. A purchase of a bathing suit made in Brazil and sold in Canada would be considered an export for Brazilian GDP, which would be added to Brazilian GDP.
Explanation:
Note: This question is not complete as the gaps in its ared omitted. The complete question is therefore provided before answering the question as follows:
A purchase of a pair of Italian designer jeans by a resident of Brazil would be considered an when counting GDP in Brazil. As a result, this purchase would be Brazilian GDP. A purchase of a bathing suit made in Brazil and sold in Canada would be considered an for Brazilian GDP, which would be Brazilian GDP.
The explanation of the answer is now provided as follows:
In economics, the GDP of a country can be measured using the expenditure approach using the following formula:
GDP = C + G + I + (X - M) ......................... (1)
Where;
GDP = gross domestic product
C = consumption
G = government spending
I = Investment
X = exports
M = Imports
From equation (1), it can be seen that exports are added to the GDP of the country while imports are deducted from its GDP.
Therefore, a purchase of a pair of Italian designer jeans by a resident of Brazil would be considered an import when counting GDP in Brazil. As a result, this purchase would be deducted from Brazilian GDP. A purchase of a bathing suit made in Brazil and sold in Canada would be considered an export for Brazilian GDP, which would be added to Brazilian GDP.
Jimmy has $167,933 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place at the end of each year starting a year from now. How soon will the fund be exhausted if Jimmy withdrawals $31,000 each year
Answer:
6 years
Explanation:
Rate = 3%
PMT = 31,000
PV = -167,933
FV = 0
Using the MS Excel Nper function
How soon the fund will be exhausted = Nper(Rate, PMT, -PV, FV)
= Nper (3%, 31,000, -167,933, 0)
= 6.0000255
= 6 years
Thus, it will take 6 years for the fund to be exhausted
Why do you think consumers are given rights by law? Have you ever been in a situation and used these consumer rights, or know someone who has? For example, have you ever bought a product that was defective?
Why do you think consumers are given rights by law? ? I think consumers are given rights by law because it helps minimize things. Also, gives rules and regulations, that are reasonable and reliable. Have you ever been in a situation and used these consumer rights, or know someone who has? Yes, I know someone who has and has been in that situation. For example, have you ever bought a product that was defective? Yes, I've bought a product that was defective, I actually do that a lot, so often.
Coronado Industries produces face cream. Each bottle of face cream costs $11 to produce and can be sold for $15. The bottles can be sold as is, or processed further into sunscreen with an additional cost of $16 each. Coronado Industries could sell the sunscreen bottles for $21 each.
A. Face cream must be processed further because it increases profit by $3 each.B. Face cream must be processed further because its profit is $9 each.C. Face cream must not be processed further because costs increase more than revenue.D. Face cream must not be processed further because it decreases profit by $1 each.
Answer:
c
Explanation:
Profit = Total revenue - cost
Profit if bottle is sold as face cream = $15 - $11 = $4
Profit is bottle is sold as sunscreen = $21 - ($16 + $11) = $-6
Processing the bottle further into sunscreen increases costs more than revenue and thus should not be processed further
Ethos is the Greek word for
O profit
O logic
O character
O authority
Answer:
The correct answer is character
Marshall suffered economic loss due to a qualified disaster. He took a distribution from his 401(k) and received the funds on January 5, 2020. Which statement is TRUE?
a) Marshall may not deposit any portion of the funds to his IRA, because hardship distributions are not eligible for rollover
b) Marshall will pay a 10% early distribution penalty on any portion of the funds that are subject to tax
c) The distribution will be taxed over a three-year period, unless Marshall chooses to include the full amount on his 2020
d) Marshall may recontribute any portion of the distribution into the original 401(k) before January 5, 2024 return
e) Mark for follow up
Answer:
The true statement is:
b) Marshall will pay a 10% early distribution penalty on any portion of the funds that are subject to tax.
Explanation:
Early withdrawal from the IRA funds is not allowed. When it is allowed because of the economic loss Marshall suffered due to a qualified disaster, the 401(k) will be allowed a hardship withdrawal, which is a taxable event. He will also incur a mandatory withholding tax on the withdrawn amount that may be up to 20%, depending on his adjusted gross income for the year. Assuming that Marshall is under 55 years, he would incur 10% penalty.
Maple Farms, Inc. v. City School District of Elmira. Read the summary of the court opinion. Could something like this bankrupt a company? Do you agree with the decision? Why? How does a company avoid this type situation?
The correct answers to these open questions are the following.
Maple Farms, Inc. v. City School District of Elmira.
Could something like this bankrupt a company?
Yes, it can, if the proper forecast were not done taking into consideration all of the possible variables at medium and long-range.
Do you agree with the decision?
It was a tough decision because the court declared in its decision that the performance was not impracticable, as Maple Farm Inc indicated when decided to break the contract.
In strict theory, I agree with the court's decision because the explanation was that an "impractical" occurred when an event happened totally unexpected. And in this case, Mapple Farm Inc could have taken extra provisions knowing that milk had a 10% increase the last year and had the chance of more increases in the present year.
That is how a company can avoid this type of situation. Taking better provisions, contemplating all kinds of variables, knowing that in the future, something unexpected can happen and could be prevented with the proper forecast.
Which of the following investors would likely prefer a cash dividend over a stock dividend?
a. Layton prefers when companies let him decide how to benefit from his dividends.
b. Kylie is a high-income earner and prefers to avoid additional taxes this year.
c. Harriett is more focused on long-term outcomes than short-term ones when it comes to investing.
d. Enrique subscribes to the "bird in the hand"theory when it comes to dividends.
Answer:
d. Enrique subscribes to the "bird in the hand "theory when it comes to dividends
Explanation:
Cash that is ready to use is better than having other assets that need to be converted into cash to be enjoyed later. This is the simple explanation of the "bird in the hand" theory. An investor who subscribes to this theory will highly likely prefer a cash dividend over a stock dividend.
Dorsett Corporation's income tax return for Year 8 shows deductions exceeding gross income by $56,800. Included in the tax return are the following items: Net operating loss deduction (carryover from Year 7) $15,000 Dividends received deduction 6,800 What is Dorsett's net operating loss for Year 8
Answer:
Dorsett's net operating loss for Year 8 is $41,800.
Explanation:
From the question, we have:
Amount by which deductions exceeding gross income = $56,800
Net operating loss deduction (carryover from Year 7) = $15,000
Dividends received deduction = $6,800
In order to calculate Dorsett's net operating loss for Year 8, the dividends received deduction of $6,800 has to be fully allowed but the net operating loss deduction (carryover from Year 7) of $15,000 wouldn't be not allowed.
Therefore, we have:
Dorsett's net operating loss for Year 8 = Amount by which deductions exceeding gross income - Net operating loss deduction (carryover from Year 7) = $56,800 - $15,000 = $41,800
Dani's just paid an annual dividend of $6 per share. What is the dividend expected to be in five years if the growth rate is 4.2%
Answer:
the dividend expected in five years is $7.37
Explanation:
The computation of the dividend expected in five years is as follows;
As we know that
Future value = Present value × (1 + rate of interest)^time period
Dividend at year 5 = $6 × (1.042)^5
= $6 × 1.228396569
= $7.37
Hence, the dividend expected in five years is $7.37
The same is to be considered
What is the margin of safety (in sales) when a business has sales of $485,000, sales of $225,000 at break-even point, and unit selling price of $55
Answer:
Margin of safety= $260,000
Explanation:
Giving the following information:
Sales= $485,000
Break-even point in dollars= $225,000
To calculate the break-even point in sales dollars, we need to use the following formula:
Margin of safety= (current sales level - break-even point)
Margin of safety= 485,000 - 225,000
Margin of safety= $260,000
The difference between the actual quantity and the standard quantity, multiplied by the standard price, is the:
Answer:
the material quantity variance
Explanation:
As we know that
Material quantity variance is
= (Standard quantity - actual quantity) × standard price
This represent that the difference between the standard quantity and the actual quantity should be multiplied with the standard price is known as the material quantity variance
Therefore as per the given situation, the material quantity variance is the answer
Hence, the same is to be considered
There is no such thing as too many clients.
O True
O False
Answer:
False
Explanation:
Answer above me is incorrect. I took the quiz.
You are reviewing your client's bank feed. She has several expense transactions
for the local gas station that are correctly categorized.
Go to the For Review tab in the Banking Center
Select the multiple gas transactions_____________________________
What step completes the process for adding all of these transactions to the bankfeed at the same time?
A. Add
B. Accept
C. Exclude
D. Update
Answer:
The step that completes the process for adding all of these transactions to the bank feed at the same time is:
D. Update.
Explanation:
Applying the 'update' option will ensure that all transactions are processed immediately without issuing separate instructions. 'Update' brings the records to the latest correct version, which also takes into account all considerations and events. It can add or subtract gas transaction data, taking in the latest and all available transactions.
Mr. Jagger is purchasing a $3,000,000 home by borrowing 80% of the purchase price. His loan terms are: 15 years amortization, monthly payments, 5.00% annual interest rate. The monthly payment will be: a. $18,979.05 b. $18,599.47 c. $18,409.68 d. $19,358.63 3.488 points
Answer:
Monthly payment= $18,979.05
Explanation:
Giving the following information:
Loan (PV)= 3,000,000*0.8= $2,400,000
Monthly interest rate (i)= 0.05/12= 0.00416667
Number of periods (n)= 15*12= 180 months
To calculate the monthly payment, we need to use the following formula:
Monthly payment= (PV*i) / [1 - (1+i)^(-n)]
Monthly payment= (2,400,000*0.00416667) / [1 - (1.00416667^-180)]
Monthly payment= $18,979.05
On January 1, 2020, Sandhill Co., a calendar-year company, issued $1044000 of notes payable, of which $261000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is:
Answer:
Current liabilities, $261,000; Long-term Debt $783,000
Explanation:
Based on the information given we were told that the company issued the amount of $1044000 of notes payable in which the amount of $261000 was due on January 1 for each of the next 4 years based on this the proper balance sheet presentation on December 31, 2020 will be:
Current liabilities $261,000
Long-term Debt $783,000
($1044000-$261000)
Therefore The proper balance sheet presentation on December 31, 2020, is:Current liabilities, $261,000; Long-term Debt $783,000
Which of the following molecules has the highest boiling point?
a. CH4
b. BH3
c. NH3
d. SH2
Answer: c. NH3
Explanation:
Ammonia(NH3) has the highest boiling point at -33.34 °C while Methane (CH4) has a boiling point of -161.6 °C and Hydrogen sulfide (SH2) has a boiling point of -60 °C.
This is because Ammonia can form strong hydrogen bonds but which makes it harder to boil than the others.
Aisha wants to buy a house. The seller has asked for $500,000 and seems eager to sell. The house has been on the market for some time. Which of these opening offers do you think will lead to the lowest selling price
Could you tell me the answer choices, please? I can't help without them
If you want your employees to resolve conflict cooperatively, what type of norms would you try to influence or create?
Answer: Agreeable conflict management norm
Explanation:
Based on the forms of different norms that we have in resolving conflict, we should note that:
The active norm is an open manner of resolving conflict; the passive norm avoids the conflict as the conflict will be addressed while the agreeable norm is a cooperative way of resolving of conflict.
Therefore, the answer will be Agreeable conflict management norm.
Which of the following are requirements for a valid power of attorney to be accepted and used in conjunction with the offering of financial products in an H&R Block office?
A.) The Power of Attorney must include the name of the Principal and Agent.
B.) Proper identification must be obtained for the Principal and Agent.
C.) Both the Principal and Agent must be the legal age of majority.
D.) The Power of Attorney must meet the requirements of state law where written.
E.) All of the above.
Answer: E.) All of the above.
Explanation:
For the power of Attorney to be valid it needs to include certain things such as the names of both the Principal and the Agent who is to obtain the power. Both the principal and the agent must be properly identified as well.
They should also both be of a legal age of majority in the state where the agreement is being written. Finally, the Power of Attorney must not break any State law as relates to it in the state it was drafted.
It should be noted that the requirements for a valid power of attorney to be accepted and used in conjunction with the offering of financial products in an H&R Block office are;
The Power of Attorney must include the name of the Principal and Agent.Proper identification must be obtained for the Principal and Agent. Both the Principal and Agent must be the legal age of majority.The Power of Attorney must meet the requirements of state law where written.According to the given question, we are to discuss the requirements for a valid power of attorney to be accepted and how it works.
As a result of this we can see that Power of Attorney must include the name of the Principal and Agent and Principal as well as the Agent needs to have legal age of majority.
Therefore, all of the options are correct because, Power of Attorney must include the name of the Principal and Agent.
Learn more about power of attorney at:
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Suppose a company earns a profit this year and has a dividend payout ratio of one half. What does this mean?
a. it will have no retained earnings
b. Its book value at the beginning of next year will be less than that of this year
c. It will not pay out all its earnings as dividends
d. All the above
Answer:
C
Explanation:
The dividend payout ratio is the ratio of dividends paid to shareholders in proportion to net income
Payout ratio = dividends / net income
If dividend payout ratio of one half, it means that only half of net income is paid as dividends
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $26,000 per year forever. If the required return on this investment is 5.3 percent, how much will you pay for the policy
Answer:
$490,566.04
Explanation:
Calculation for how much will you pay for the policy
Using this formula
Present value of perpetuity= Investment policy Annual inflows/ Required rate of return
Let plug in the formula
Present value of perpetuity=$26,000/0.053
Present value of perpetuity=$490,566.04
Therefore the amount that you will pay for the policy is $490,566.04