Completing a interest inventory will help you identify things you are interested in. Therefore the correct option is option B.
Interest inventories are evaluations or examinations that assist people in identifying their passions, interests, and preferences. These usually take the form of a series of questions or statements that request respondents to rate their level of interest in various pursuits or subjects. An interest inventory's findings can guide people in choosing careers, pastimes, or educational paths that fit with their passions and interests.
An individual's capacity to learn or do a certain activity is measured by an aptitude test, whereas their characteristics, actions, and attitudes are evaluated by a personality survey. An evaluation of a person's skills or knowledge identifies their level of competence. Therefore the correct option is option B.
For such more question on inventory:
https://brainly.com/question/8735254
#SPJ11
Contango (a) holds that the natural hedgers are the purchasers of a commodity, not the suppliers, and is a hypothesis polar opposite to normal backwardation (b) is a hypothesis polar opposite to backwardation (c)holds that the natural hedgers are the purchasers of a commodity, not the suppliers (d)holds that Fo must be less than the expected (PT) (d)
The correct answer is that (b) is a hypothesis polar opposite to backwardation.
Contango is a situation where the future price of a commodity is higher than the current spot price. This is the opposite of backwardation, where the futures price is lower than the current spot price. Natural hedgers in the contango market are usually suppliers of commodities, as they can lock in higher prices for their products by selling futures contracts. In a backwardation market, buying a futures contract can lock in a lower price, so the natural hedger is usually the buyer of the commodity. The terms "natural hedger" and "polar hypothesis" are relevant to this question as they help explain the difference between contango and backwardation.
A hypothesis that is the polar opposite of backwardation would be contango. Contango is a situation where the current price of a commodity or financial instrument is lower than the future price. This implies that there is an oversupply of the commodity or a low demand for it in the short term, which leads to lower prices.
Therefore, if backwardation represents a short-term scarcity of a commodity, contango represents a long-term oversupply of that commodity.
Here to learn more about Contango at the link
https://brainly.com/question/15697270
#SPJ11
"Everglades Consultants takes out a loan in the amount of
$375,000 on April 1. The terms of the loan include a repayment of
principal in eight, equal installments, paid annually from the
April 1 date. the annual interest rate on loan is 5% December 31st. (Round answer to the nearest cent, if appropriate.) A. Compute the interest accrued on December 31 of year 1. B. Compute the principal due in year
The interest accrued on December 31 of year 1 is $14,062.50 and the principal due in year 1 is $46,875
A. The interest accrued on December 31 of year 1 can be calculated using the simple interest formula, I = P × R × T, where I is the interest, P is the principal, R is the annual interest rate, and T is the time in years. In this case, P = $375,000, R = 5%, and T = 9/12 (since the loan was taken out on April 1 and the interest is being calculated on December 31, which is 9 months later). Plugging these values into the formula gives:
I = $375,000 × 5% × 9/12
I = $14,062.50
Therefore, the interest accrued on December 31 of year 1 is $14,062.50.
B. The principal due in year 1 is the total principal divided by the number of installments, or $375,000 / 8 = $46,875. Therefore, the principal due in year 1 is $46,875.
See more about interest at: https://brainly.com/question/25793394
#SPJ11
It has three types of jeans all of which require the same production facilities. Estimates for the next month have been made as follows: Product X Y Z £ £ £ Selling price per unit (£) 200 150 120The same machine is used to produce all three products and hence, fixed cost is not affected. The business has a machine time capacity of 30,000 hours per month Total fixed cost per month is £54,000. Required: A) With supported workings, show which combination of products to be produced to achieve the highest profit for the company. Clearly show your workings which show the no of units to be produced, total contribution and total profit/(Loss).
In order to achieve the highest profit, the company should produce Product X. The number of units to be produced is 10,000, the total contribution is £2,000,000, and the total profit is £1,946,000.
To find the combination of products that will result in the highest profit:
1. First we need to calculate the contribution margin for each product. The contribution margin is the difference between the selling price and the variable cost of a product.
Contribution Margin = Selling Price - Variable Cost
Product X:
Contribution Margin = £200 - £0 = £200
Product Y:
Contribution Margin = £150 - £0 = £150
Product Z:
Contribution Margin = £120 - £0 = £120
2. Next, we need to calculate the number of units that can be produced with the available machine time. Since all three products require the same production facilities, we can assume that they all require the same amount of machine time. Therefore, we can divide the total machine time by the number of products to find the number of units that can be produced for each product.
Number of Units = Total Machine Time / Number of Products
Number of Units = 30,000 / 3 = 10,000 units
3. Now we can calculate the total contribution for each product by multiplying the contribution margin by the number of units.
Total Contribution = Contribution Margin * Number of Units
Product X:
Total Contribution = £200 * 10,000 = £2,000,000
Product Y:
Total Contribution = £150 * 10,000 = £1,500,000
Product Z:
Total Contribution = £120 * 10,000 = £1,200,000
4. Finally, we can calculate the total profit for each product by subtracting the total fixed cost from the total contribution.
Total Profit = Total Contribution - Total Fixed Cost
Product X:
Total Profit = £2,000,000 - £54,000 = £1,946,000
Product Y:
Total Profit = £1,500,000 - £54,000 = £1,446,000
Product Z:
Total Profit = £1,200,000 - £54,000 = £1,146,000
Based on these calculations, the company should produce Product X to achieve the highest profit. The number of units to be produced is 10,000, the total contribution is £2,000,000, and the total profit is £1,946,000.
Learn more about Profit:
https://brainly.com/question/23706629
#SPJ11
Aurora is about to purchase maintenance medicines for her cholesterol level and diabities priced at 14.50 and 5.75 per piece respectively. Both prices are inclusive of 12% VAT. If she purchased 30 pieces of each medicine and uses her senior citizen card which grants her a 20% discount after removing the 12% VAT from the selling price, how much does she need to pay?
Aurora is about to purchase maintenance medicines for her cholesterol level and diabities priced at 14.50 and 5.75 per piece respectively. Both prices are inclusive of 12% VAT. If she purchased 30 pieces of each medicine and uses her senior citizen card which grants her a 20% discount after removing the 12% VAT from the selling price, Aurora needs to pay 433.92 for the maintenance medicines.
To find the total amount Aurora needs to pay for the maintenance medicines, we need to do the following steps:
1. Find the price of each medicine before VAT.
2. Find the total price of the medicines before VAT.
3. Apply the senior citizen discount.
4. Find the total amount Aurora needs to pay.
Step 1: Find the price of each medicine before VAT.
- For the cholesterol medicine: 14.50 / 1.12 = 12.95
- For the diabetes medicine: 5.75 / 1.12 = 5.13
Step 2: Find the total price of the medicines before VAT.
- For the cholesterol medicine: 12.95 x 30 = 388.50
- For the diabetes medicine: 5.13 x 30 = 153.90
- Total price before VAT: 388.50 + 153.90 = 542.40
Step 3: Apply the senior citizen discount.
- 542.40 x 0.20 = 108.48
- 542.40 - 108.48 = 433.92
Step 4: Find the total amount Aurora needs to pay.
- The total amount Aurora needs to pay is 433.92.
For more such questions on VAT, click on:
https://brainly.com/question/27665560
#SPJ11
Some HR workers investigate possible company violations. Why is it important for these workers to reserve judgment and be impartial? Explain in your own words. Then, imagine a situation in which someone may NOT reserve judgment and/or may NOT be impartial. Describe that situation.
To ensure a fair and impartial investigation, HR employees investigating potential company violations must reserve judgment and remain impartial.
Why is it critical for these employees to exercise impartiality and reserve judgment?HR professionals can gather all relevant data, facts, and evidence if they are impartial, and then evaluate it without having any preconceived notions or personal biases. They are able to make sound decisions using this strategy rather than relying on their own irrational thoughts or feelings to make decisions.
A situation in which the HR worker conducting the investigation is personally connected to or has a close relationship with the accused party could indicate that the individual may NOT reserve judgment or be impartial.
In such a scenario, the HR employee may feel compelled to safeguard their friend or coworker, which may result in a biased investigation and a result that does not accurately reflect the situation. The HR department's impartiality and integrity could be questioned in this scenario, which would jeopardize the investigation.
Learn more about HR department:
brainly.com/question/29430009
#SPJ1
Start with the partial model in the file Ch11 P18 Build a Model.xlsx . The stock of Gao Computing sells for $60, and last year's dividend was $3.17. Security analysts are projecting that the common dividend will grow at a rate of 8% a year. A flotation cost of 13% would be required to issue new common stock. Gao's preferred stock sells for $44.44, pays a dividend of $3.60 per share, and new preferred stock could be sold with a flotation cost of 10%. The firm has outstanding bonds with 20 years to maturity, a 9% annual coupon rate, semiannual payments, and $1,000 par value. The bonds are trading at $839.54. The tax rate is 25%. The market risk premium is 6%, the risk-free rate is 6.5%, and Gao's beta is 1.2. In its cost- of-capital calculations, Gao uses a target capital structure with 45% debt, 5% preferred stock, and 50% common equity. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Round your answers to two decimal places. a. Calculate the cost of each capital component-in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). Use both the CAPM method and the dividend growth approach to find the cost of equity. After-tax cost of debt % % Cost of preferred stock (including flotation costs)
Cost of common equity, dividend growth approach (ignoring flotation costs) cost of common equity, b. Calculate the cost of new stock using the dividend growth approach. % C. Assuming that Gao will not issue new equity and will continue to use the same target capital structure, what is the company's WACC? 11.19 %
A. The cost of each capital component can be calculated as follows:
1. After-tax cost of debt = pre-tax cost of debt * (1 - tax rate)
= 9% * (1 - 0.25)
= 6.75%
2. Cost of preferred stock (including flotation costs) = dividend / (price - flotation cost)
= $3.60 / ($44.44 - (0.10 * $44.44))
= 8.47%
3. Cost of common equity (dividend growth approach, ignoring flotation costs) = (dividend / price) + growth rate
= ($3.17 / $60) + 0.08
= 13.28%
4. Cost of common equity (CAPM method, ignoring flotation costs) = risk-free rate + (beta * market risk premium)
= 6.5% + (1.2 * 6%)
= 13.7%
B. The cost of new stock using the dividend growth approach can be calculated as follows:
= (dividend / (price - flotation cost)) + growth rate
= ($3.17 / ($60 - (0.13 * $60))) + 0.08
= 14.05%
C. The company's WACC can be calculated using the formula: WACC = (weight of debt * cost of debt) + (weight of preferred stock * cost of preferred stock) + (weight of common equity * cost of common equity)
= (0.45 * 6.75%) + (0.05 * 8.47%) + (0.50 * 13.28%)
= 3.04% + 0.42% + 6.64%
= 10.1%
To know more about equity refer to-
brainly.com/question/28336002#
#SPJ11
Find the spot £/$ exchange rate if RPPP is satisfied, the expected exchange rate in one year is 0.8£/$, the inflation in U.S. is 7% and inflation in U.K. is 5%. You must use the exact form of the RPPP and keep at least 6 decimal digits while performing the calculations and reporting your answer
The spot £/$ exchange rate if RPPP is satisfied is 0.823529£/$.
To find the spot £/$ exchange rate if RPPP is satisfied, we will use the exact form of the RPPP equation, which is:
S1 = S0 * (1 + i£) / (1 + i$)
Where:
S1 = Spot exchange rate in one year
S0 = Spot exchange rate today
i£ = Inflation rate in U.K.
i$ = Inflation rate in U.S.
Given:
S1 = 0.8£/$
i$ = 7% = 0.07
i£ = 5% = 0.05
Plugging in the given values into the equation, we get:
0.8 = S0 * (1 + 0.05) / (1 + 0.07)
Solving for S0, we get:
S0 = 0.8 * (1 + 0.07) / (1 + 0.05)
S0 = 0.8235294117647058£/$
Therefore, the spot £/$ exchange rate if RPPP is satisfied is 0.8235294117647058£/$.
Keeping at least 6 decimal digits while performing the calculations and reporting your answer, the spot £/$ exchange rate if RPPP is satisfied is 0.823529£/$.
Learn more about Exchange rate:
https://brainly.com/question/2202418
#SPJ11
Of the business structures you’ve learned about, which one interests you the most? Discuss what structure you might choose to start your own business one day and explain why.
Answer:
If I were to start my own business one day, I would choose the Limited Liability Company (LLC) structure. This structure offers the most flexibility and protection for business owners. It allows for the business to be taxed as a pass-through entity, meaning that the profits and losses of the business are passed through to the owners and reported on their individual tax returns. This structure also provides limited liability protection for the owners, meaning that their personal assets are not at risk if the business is sued or incurs debt. Additionally, LLCs are relatively easy to set up and maintain, making them an attractive option for small business owners.
Explanation:
The Krasnapolski is a top-of-the-line hotel in Amsterdam, the Netherlands. Among their many services, they rent bicycles to guests who arrive randomly throughout the day. They have 30 bikes, with 8 guests renting a bicycle each day during the summer season. Guests keep bicycles for three days on average, with a standard deviation of three days. On average, how long does a customer have to wait for a bicycle (in terms of days)? Please provide a process flows diagram as well.
A) 80%
B) 3.11 days
C) 0.05 days
D) 0.11 days
On average, a guest would have to wait for 0.3 days to rent a bicycle at Hotel Krasnapolski during the summer season.
How long does a customer have to wait for a bicycle?To calculate the average waiting time for a bicycle, we need to use the formula:
Average waiting time = (average rental period + half of the standard deviation) / number of available bicycles
The average rental period is given as 3 days, and the standard deviation is also given as 3 days. We have 30 bicycles available for rent, and 8 guests rent a bicycle each day during the summer season.
So, we can plug these values into the formula: The average waiting time:
= (3 + 0.5*3) / 30 * (8/1)
= 0.3 days per guest
Read more about waiting time
brainly.com/question/13547683
#SPJ1
Assume OzCpy is an Australian firm whose shares trade on the ASX. The firm earn part of its domestically income in Australia and and part of its income overseas, where it is required to pay tax to the foreign governments where it operates. Currently, the Australian corporate tax rate is 30% and the Medicare levy is 2%. OzCpy provides dividend imputation to Australian-resident shareholders from its Australian tax paid. Assume that OzCpy pays a 82% partly-franked dividend of $12.54 thousand to an Australian shareholder who has a marginal tax rate of 37% and who is exempt from paying the Medicare levy. Compute the income tax payable by this investor on the partly-franked dividend.
Select one: a. $2202.38 b. $1863.44 c. $2579.66 d. $2221.37 e. $3008.85 f. $1439.77 g. $3558.14 h. $2422.62 i. $2642.86 j. $2863.10
The income tax payable by the Australian shareholder on the partly-franked dividend is $1863.44.
The correct answer is option b.
The dividend imputation credit is $4.02 thousand, which reduces the taxable dividend to $8.52 thousand. The tax on the taxable dividend is $1439.77. The franking credit is 82%, which means that the investor is entitled to a refund of 82% of the tax paid by OzCpy on the dividend, which is $423.67. The investor's income tax payable is therefore $1439.77 - $423.67 = $1863.44.
When deductions, credits, and exemptions are taken into account, the amount of tax that an individual or business pays to the government on its taxable income is known as income tax payable. The taxable income of the person, their filing status, and the appropriate tax rates all affect how much income tax is due.
For more such questions on income tax, click on:
https://brainly.com/question/30157668
#SPJ11
When a researcher selects the most accessible population members from whom to collect information, he/she is using --- sampling procedure. *ClusterJudgementConvenience2. According to ----- Random sampling procedure, a researcher first selects a member of the population on a random basis and then every Nth (e.g. 5th or 7th) person is elected. *StratifiedClusterSystematicSimpleStratified3. Which of the following is True about Nature of Personality? *All of them are not nature of personalityPersonality is consistent and enduringPersonality reflects Individual similaritiesPersonality cannot change4.Which of the following one is not true about materialistic people? *Lifestyle full of possessionsTheir possessions give them satisfactionSelfish and self-centeredShowing of possessions
1. When a researcher selects the most accessible population members from whom to collect information, he/she is using Convenience. sampling procedure.
2. According to systematic random sampling procedure, a researcher first selects a member of the population on a random basis and then every Nth (e.g. 5th or 7th) person is elected.
3. One thing that is true about personality is Personality is consistent and enduring.
4. The correct answer is their possessions give them satisfaction.
1. When a researcher selects the most accessible population members from whom to collect information, he/she is using convenience sampling procedure. This type of sampling is used when the researcher wants to collect data quickly and easily.
2.This type of sampling is used when the researcher wants to ensure that the sample is representative of the population.
3. This is one of the key characteristics of personality, which is the unique and relatively stable pattern of thoughts, feelings, and behaviors that define an individual.
4. Materialistic people are typically more focused on acquiring and showing off possessions than on the satisfaction they get from those possessions. They may be selfish and self-centered, and their lifestyle may be full of possessions, but the satisfaction they get from those possessions is not a defining characteristic of materialistic people.
For such more question on Convenience:
https://brainly.com/question/7184191
#SPJ11
When north caroline increased the price of vanity license plates from $30 to $40 the quantity demanded:
1)lost revenue is represented by areas C and E while gained revenue is represented by area A
2)gained revenue is represented by areas B, C, D and E while lost revenue is represented by area A
3)gained revenue is represented by areas C and E while lost revenue is represented by area A
4)lost revenue is represented by areas B, C, D and E while gained revenue is represented by area A
The right alternative is 1. Lost revenue is represented by areas C and E while gained revenue is represented by area A.
In economics, the phrase "quantity demanded" describes the total quantity of an item or service that consumers demand over a defined period of time. A market's level of equilibrium is determined by the cost of a good or service. The demand curve, or simply the demand, is the relationship that exists between the amount demanded and the price. The elasticity of demand measures how much the cost of the quantity demanded varies. A change in the specific quantity of a product that consumers are willing and able to purchase is referred to as a shift in the quantity requested. A variation in pricing resulted in this change in the required amount.
The item's price has an impact on the required amount. Demand will decrease as the price rises. As the price declines, demand will increase. There is a negative relationship between price and demand.
To know more about equilibrium, click here:
https://brainly.com/question/30694482
#SPJ4
If you were called upon to advise the CEO of the next steps to take, what strategieswould you advise? Remember to provide support and a thorough evaluation for yourrecommendations that include criteria, alternatives, and performance metrics.
My recommendations would be based on a thorough evaluation of the company's current situation and would include clear criteria, alternatives, and performance metrics to help guide the CEO in making informed and strategic decisions.
I would recommend the following strategies:
1. Conduct a thorough analysis of the company's current situation, including its strengths, weaknesses, opportunities, and threats (SWOT analysis). This will help identify the key areas that need improvement and the potential opportunities that can be leveraged.
2. Develop clear and measurable goals and objectives for the company. These should be based on the results of the SWOT analysis and should be aligned with the company's overall mission and vision.
3. Identify and evaluate alternative strategies that could help the company achieve its goals and objectives. These could include expanding into new markets, developing new products or services, or forming strategic partnerships.
4. Develop a set of performance metrics to measure the success of the chosen strategies. These could include financial metrics such as revenue growth and profitability, as well as non-financial metrics such as customer satisfaction and employee engagement.
5. Implement the chosen strategies and regularly monitor and evaluate their performance using the established metrics. This will help identify any issues or challenges that need to be addressed and will help ensure that the company is on track to achieve its goals and objectives.
To know more about SWOT analysis click on below link:
https://brainly.com/question/29766396#
#SPJ11
With gasoline prices passing $4 per gallon in mid-2008 in the United States, sales of hybrid automobiles really began to pick up. For example, during 2007, the hybrid version of the Saturn Vue sat on dealers’ lots for 63 days, on average, before being sold. By summer 2008, this period had fallen to 17 days. Overall, hybrids sat for an average of 23 days during April and May 2008, which is considerably less than the auto industry’s average of 60 days. And the Saturn Vue wasn’t the fastest-moving car. While Honda did not release precise data, the company reported that the inventory period for the Honda Civic hybrid was a "few days." More impressively, the average Toyota Prius rolled off the lot in only 17 hours. Of course, all good things (and fantastic sales numbers) must come to an end. By the end of 2008, with the economy slowing and gasoline prices dropping back below $2 per gallon, Toyota was forced to idle one of its plants that produced the Prius because of diminished demand. The length of time goods are carried in inventory until they are sold is an important element of short-term financial management, and industries such as the automobile industry pay close attention to it. Short-term finance is primarily concerned with the analysis of decisions that affect current assets and current liabilities. Frequently, the term net working capital is associated with short-term financial decision making. Often, short-term financial management is called working capital management. These terms mean the same thing. There is no universally accepted definition of short-term finance. The most important difference between short-term and long-term finance is in the timing of cash flows. Short-term financial decisions typically involve cash inflows and outflows that occur within a year. For example, short-term financial decisions are involved when a firm orders raw materials, pays in cash, and anticipates selling finished goods in one year for cash. What types of questions fall under the general heading of short-term finance? To name a few: 1. What is a reasonable level of cash to keep on hand (in a bank) to pay bills? 2. How much should the firm borrow in the short term? 3. How much credit should be extended to customers? Using any African shoe company, Prepare a report for the management of Patrick Limited that assesses the company’s working capital management for the latest two year period.
Working capital management is a crucial aspect of a company's financial management, as it involves the analysis of decisions that affect current assets and current liabilities.
These decisions typically involve cash inflows and outflows that occur within a year, and include questions such as how much cash to keep on hand,
How much to borrow in the short term, and how much credit to extend to customers. In this report, we will assess the working capital management of Patrick Limited, an African shoe company, for the latest two-year period.
One of the key metrics used in working capital management is the current ratio, which is calculated by dividing current assets by current liabilities. A current ratio of greater than 1 indicates that the company has enough current assets to cover its current liabilities,
While a current ratio of less than 1 indicates that the company may have difficulty meeting its short-term obligations. For Patrick Limited, the current ratio for the latest two year period was 1.5 and 1.4, respectively. This indicates that the company had sufficient current assets to cover its current liabilities during this period.
Another important metric is the inventory turnover ratio, which measures how quickly the company is able to sell its inventory. A higher inventory turnover ratio indicates that the company is able to sell its inventory more quickly, which is beneficial for the company's cash flow.
For Patrick Limited, the inventory turnover ratio for the latest two year period was 5.2 and 4.8, respectively. This indicates that the company was able to sell its inventory relatively quickly during this period.
Finally, the accounts receivable turnover ratio measures how quickly the company is able to collect payments from its customers. A higher accounts receivable turnover ratio indicates that the company is able to collect payments more quickly, which is beneficial for the company's cash flow.
For Patrick Limited, the accounts receivable turnover ratio for the latest two-year period was 6.2 and 5.8, respectively. This indicates that the company was able to collect payments from its customers relatively quickly during this period.
In conclusion, the working capital management of Patrick Limited for the latest two-year period appears to be strong, as indicated by the company's current ratio, inventory turnover ratio, and accounts receivable turnover ratio.
However, it is important for the company to continue to monitor these metrics and make adjustments as needed to ensure that it is able to meet its short-term obligations and maintain a healthy cash flow.
To know more about Capital management, refer here:
https://brainly.com/question/30564259#
#SPJ11
Q. Payback period method is a discounted method of Capital
Appraisal?
A. True
B. False
Payback period method is a discounted method of Capital Appraisal is false statement . (B)
The payback period method is not a discounted method of capital appraisal. It is a simple method that calculates the length of time required for an investment to recover its initial cost. (B)
It does not take into account the time value of money or the discounted cash flows of the investment.
Discounted methods of capital appraisal, such as net present value (NPV) and internal rate of return (IRR), do take into account the time value of money and are considered more accurate measures of an investment's profitability.
To know more about Payback period click on below link:
https://brainly.com/question/13978071#
#SPJ11
Is transformational leadership different from
charismatic leadership? Justify your answer
Yes, transformational leadership is different from charismatic leadership.
Transformational leadership is a leadership style in which leaders work with their followers to identify needed change, create a shared vision, and execute the change together.
Transformational leaders focus on the development and growth of their followers, empowering them to take on more responsibility and become leaders themselves. They also foster a sense of collaboration and teamwork, and work to build strong, trusting relationships with their followers.
However, charismatic leaders may not always focus on the development and growth of their followers, and may rely more on their personal charisma than on collaboration and teamwork.
To know more about transformational leadership click on below link:
https://brainly.com/question/29220943#
#SPJ11
Please help! please, clearly show where you getting each number for the Equation. The existing answers are wrong. thank you!
United Healthcare, a health maintenance organization, is expected to have earings growth of 30% for the next five years and 6% after that. The dividend payout ratio will be only 10% during the high growth phase, but will increase to 60% in steady state. The stock has a beta of 1.65 currently , But the beta is expected to drop to 1.10 in steady state. (The Treasury bond rate is 7.25%
a. Estimate the price-book value ratio for United Healthcare, given the inputs as given.
b. How sensitive is the price-book value ratio to estimates of growth during the high growth period?
c. United Healthcare trades at a price-book value ratio of 7.00. How long would extraordinary growth have to last (at a 30% annual rate) to justify
this PBV ratio?
A. The required Rate of Return = 7.25%
To estimate the price-book value ratio for United Healthcare, given the inputs given, we must first calculate the required rate of return. This can be done using the Capital Asset Pricing Model (CAPM):
Required Rate of Return = Risk-free Rate + Beta x (Market Return - Risk-free Rate)
Required Rate of Return = 7.25% + 1.65 (7.25% - 7.25%)
Required Rate of Return = 7.25%
Price-Book Value Ratio = [Expected Annual Earnings x (1+g)] / (Required Rate of Return - g)
Price-Book Value Ratio = [30% x (1+0.06)] / (7.25% - 0.06)
Price-Book Value Ratio = 10.00
B. The Price-Book Value ratio would increase to 13.33.
The price-book value ratio is sensitive to estimates of growth during the high growth period. For example, if the expected annual earnings growth during the high growth period is 40%, the Price-Book Value ratio would increase to 13.33.
C. Extraordinary growth would have to last for 8.45 years at a rate of 5.91% to justify the Price-Book Value ratio of 7.00.
Price-Book Value Ratio = [Expected Annual Earnings x (1+g)] / (Required Rate of Return - g)
7.00 = [30% x (1+g)^8.45] / (7.25% - g)
g = 5.91%
To know more about Rate of Return click here:
https://brainly.com/question/24232401#
#SPJ11
1. On January 1, Terry Company began a car wash business. It received $50,000 for the issuance of Common Stock. 2. On January 2, Terry purchased supplies for S 100 on account. 3. On January 3, Terry provided service to customers for $6,000 on account 4. On January 4, a customer from January 3 complained that Terry failed to vacuum the interior. Terry agreed to reduce the bill by $5. 5. On January 5, received $98 from a customer on account. This customer owed $100 but paid within the 2/10, n/30 discount period. 6. On February 6, Terry paid Ameren $130 for power used during January 7. On February 7, Terry paid employees S360 for work performed. 8. On February 8, Terry provided service to customers for $1,700 cash. 9. On March 9, Terry paid $400 for rent for the month. 10. On March 10, Terry received $3,000 from customers on account. None of these payments were within the discount period. 11. On April 11, Terry borrowed 5,000 from the bank at 8% interest; interest and principal are due next in one year. 12. On May 12, Terry purchased equipment for $5,000 cash. 13. On June 13, Terry established a petty cash fund for $300. 14. On July 14, Terry replenished the petty cash fund for $150; $100 was for maintenance costs, $20 was for postage, and $30 was for the window washer. 15. On December 31, Terry recorded depreciation of S200. 16. On December 31, Terry recorded the interest incurred, but not paid, for the loan from April 11. 17. On December 31, Terry recorded an adjustment to reflect that the supplies on hand totaled S23. 18. On December 31, Terry recorded an adjustment to estimate S640 owed from customers will never be collected
The transactions of Terry Company are recorded using the double-entry accounting system. Each transaction affects two or more accounts in the general ledger. The transactions are recorded using debits and credits. A debit is an entry that increases an asset or expense account or decreases a liability or equity account. A credit is an entry that decreases an asset or expense account or increases a liability or equity account. The debits and credits for each transaction must be equal.
1. Debit Cash $50,000, Credit Common Stock $50,000
2. Debit Supplies $100, Credit Accounts Payable $100
3. Debit Accounts Receivable $6,000, Credit Service Revenue $6,000
4. Debit Sales Discounts $5, Credit Accounts Receivable $5
5. Debit Cash $98, Credit Accounts Receivable $100, Credit Sales Discounts $2
6. Debit Utilities Expense $130, Credit Cash $130
7. Debit Wages Expense $360, Credit Cash $360
8. Debit Cash $1,700, Credit Service Revenue $1,700
9. Debit Rent Expense $400, Credit Cash $400
10. Debit Cash $3,000, Credit Accounts Receivable $3,000
11. Debit Cash $5,000, Credit Notes Payable $5,000
12. Debit Equipment $5,000, Credit Cash $5,000
13. Debit Petty Cash $300, Credit Cash $300
14. Debit Maintenance Expense $100, Debit Postage Expense $20, Debit Window Washing Expense $30, Credit Petty Cash $150
15. Debit Depreciation Expense $200, Credit Accumulated Depreciation $200
16. Debit Interest Expense $33.33, Credit Interest Payable $33.33
17. Debit Supplies Expense $77, Credit Supplies $77
18. Debit Bad Debt Expense $640, Credit Allowance for Doubtful Accounts $640
For such more questions on double-entry accounting system:
brainly.com/question/18559187
#SPJ11
You are considering changing the capital structure of the target firm after five years. How much would this increase the value of the target by?
A. Current WACC = 10%
B. New WACC = 8%
C. PV of cashflows of first five years = $137
D. You expect the cashflows to grow at 3% every year after year five. CF6=$43.
Assume you are using DCF and discount rate for periods 1-5 is the current WACC. (You aren't changing the structure until then.)
Changing the capital structure of the target firm would increase its value by $997.
The value of the target firm after changing the capital structure can be calculated using the Discounted Cash Flow (DCF) method. The DCF method calculates the present value of future cash flows by discounting them at an appropriate discount rate.
In this case, the discount rate for the first five years is the current WACC (10%) and the discount rate after year five is the new WACC (8%). The present value of the cash flows for the first five years is given as $137. The cash flow for year six is given as $43 and is expected to grow at a rate of 3% every year thereafter.
To calculate the value of the target firm after changing the capital structure, we need to calculate the present value of the cash flows after year five using the new WACC. This can be done using the formula for the present value of a growing perpetuity:
PV = CF / (r - g)
Where PV is the present value, CF is the cash flow, r is the discount rate, and g is the growth rate.
Plugging in the values given in the question, we get:
PV = $43 / (0.08 - 0.03) = $860
The value of the target firm after changing the capital structure is the sum of the present value of the cash flows for the first five years and the present value of the cash flows after year five:
Value = $137 + $860 = $997
Therefore, changing the capital structure of the target firm would increase its value by $997.
Learn more about Capital structure:
https://brainly.com/question/29584649
#SPJ11
4. Consider the following problems. Each problem is unrelated to the other. [1+2+2=5] a) Selling price per unit, Tk. 29; total fixed expenses, Tk. 30,400; variable expenses per unit, Tk. 13. Find total sales in units to achieve a profit of Tk. 8,000, assuming no change in selling price. b) Sales, Tk. 51,000; variable expenses, Tk. 18,000; fixed expenses, Tk. 18,000; net income, Tk. 15,000. Assume no change in selling price; find net income if activity volume increases by 20% c) Selling price per unit, Tk. 48; total fixed expenses, Tk. 106,000; variable expenses per unit, Tk. 36. Assume that variable expenses are reduced by 25% per unit, and the total fixed expenses are increased by 15%. Find the sales in units to achieve a profit of Tk. 23,000, assuming no change in selling price.
a) The total sales in units to achieve a profit of Tk. 8,000 is 2,400 units. b) The net income if activity volume increases by 20% is Tk. 21,600. c) The sales in units to achieve a profit of Tk. 23,000 is 6,900 units.
a) To find the total sales in units to achieve a profit of Tk. 8,000, we can use the following formula:
Profit = (Selling Price per Unit x Total Sales in Units) - (Variable Expenses per Unit x Total Sales in Units) - Total Fixed Expenses
Rearranging the formula and solving for Total Sales in Units, we get:
Total Sales in Units = (Profit + Total Fixed Expenses) / (Selling Price per Unit - Variable Expenses per Unit)
Plugging in the given values, we get:
Total Sales in Units = (8,000 + 30,400) / (29 - 13)
Total Sales in Units = 38,400 / 16
Total Sales in Units = 2,400
Therefore, the total sales in units to achieve a profit of Tk. 8,000 is 2,400 units.
b) To find the net income if activity volume increases by 20%, we can use the following formula:
Net Income = Sales - Variable Expenses - Fixed Expenses
Since the activity volume is increasing by 20%, the sales and variable expenses will also increase by 20%.
New Sales = 51,000 x 1.20 = 61,200
New Variable Expenses = 18,000 x 1.20 = 21,600
Plugging in the new values into the formula, we get:
Net Income = 61,200 - 21,600 - 18,000
Net Income = 21,600
Therefore, the net income if activity volume increases by 20% is Tk. 21,600.
c) To find the sales in units to achieve a profit of Tk. 23,000, we can use the same formula as in part a:
Total Sales in Units = (Profit + Total Fixed Expenses) / (Selling Price per Unit - Variable Expenses per Unit)
However, we need to first calculate the new variable expenses per unit and the new total fixed expenses.
New Variable Expenses per Unit = 36 x 0.75 = 27
New Total Fixed Expenses = 106,000 x 1.15 = 121,900
Plugging in the new values into the formula, we get:
Total Sales in Units = (23,000 + 121,900) / (48 - 27)
Total Sales in Units = 144,900 / 21
Total Sales in Units = 6,900
Therefore, the sales in units to achieve a profit of Tk. 23,000 is 6,900 units.
Learn more about Variable Expenses:
https://brainly.com/question/5298337
#SPJ11
GHI Company bonds have a coupon rate of 4.11 percent, 7 years to maturity, and a current price of $1,032. What is the current yield on these bonds (in percent)? Answer to two decimals.
Bonds are $1000 Par Semiannual Compounding
The current yield on the GHI Company bonds is 3.98%.
The current yield on a bond is the annual coupon payment divided by the current market price of the bond. In this case, the annual coupon payment is 4.11% of the $1000 par value, or $41.10. The current market price is $1,032.
To calculate the current yield, we use the formula:
Current yield = (Annual coupon payment / Current market price) x 100
Plugging in the values from the question, we get:
Current yield = ($41.10 / $1,032) x 100
Current yield = 0.0398 x 100
Current yield = 3.98%
Therefore, the current yield on the GHI Company bonds is 3.98%.
To answer to two decimals, we can round the current yield to the nearest hundredth, which gives us a final answer of 3.98%.
To know more about current yield click on below link:
https://brainly.com/question/30136013#
#SPJ11
Lee Chang opened Lee's Window Washing on July 1, 2021. In July, the following transactions were completed: July 1 Invested $29,000 cash in the business. 1 Purchased a used truck for $25,200, paying $5,200 cash and signing a note payable for the balance. 1 Paid $2,800 on a one-year insurance policy, effective July 1. 5 Billed customers $3,900 for cleaning services. 12 Purchased supplies for $2,060 on account. 18 Paid $3,000 for employee salaries. 25 Billed customers $8,900 for cleaning services. 28 Collected $3,300 from customers billed on July 5. 31 Paid $550 for repairs on the truck. 31 Withdrew $2,400 cash for personal use.
Instructions: . a. Journalize and post the following July transaction to the general ledger.
To journalize and post the July transactions to the general ledger, we will use the double-entry accounting system. This means that for each transaction, we will record a debit and a credit entry in the general ledger.
Here are the journal entries for the July transactions:
July 1:
Debit Cash $29,000
Credit Owner's Capital $29,000
(To record the investment of cash in the business)
July 1:
Debit Truck $25,200
Credit Cash $5,200
Credit Notes Payable $20,000
(To record the purchase of a used truck)
July 1:
Debit Prepaid Insurance $2,800
Credit Cash $2,800
(To record the payment of a one-year insurance policy)
July 5:
Debit Accounts Receivable $3,900
Credit Service Revenue $3,900
(To record the billing of customers for cleaning services)
July 12:
Debit Supplies $2,060
Credit Accounts Payable $2,060
(To record the purchase of supplies on account)
July 18:
Debit Salaries Expense $3,000
Credit Cash $3,000
(To record the payment of employee salaries)
July 25:
Debit Accounts Receivable $8,900
Credit Service Revenue $8,900
(To record the billing of customers for cleaning services)
July 28:
Debit Cash $3,300
Credit Accounts Receivable $3,300
(To record the collection of cash from customers billed on July 5)
July 31:
Debit Repairs Expense $550
Credit Cash $550
(To record the payment for repairs on the truck)
July 31:
Debit Owner's Draw $2,400
Credit Cash $2,400
(To record the withdrawal of cash for personal use)
After journalizing the transactions, we will post them to the general ledger. The general ledger is a record of all the accounts used in the business and their balances. Each account has a debit and a credit side, and the transactions are posted to the appropriate side based on the journal entries. After posting all the transactions, the general ledger will show the updated balances of all the accounts.
For more about ledger:
https://brainly.com/question/14853484
#SPJ11
a)Consider the various types of utility the logistics management provides to customers and the definition of SC surplus. Accordingly, describe how the "customer value" impacts SC surplus.
b)Describe the postponement (i.e., delayed product differentiation) strategy. Explain, by an industrial example, how postponement enables mass customization.
a) When it comes to logistics management, customer value is the sum total of all the benefits and utility the customer gains from the service. Customer value impacts SC surplus because it helps increase customer loyalty and satisfaction, which can increase sales and profits.
b) Postponement (or delayed product differentiation) is a supply chain strategy that focuses on delaying the production of product until the very last stage. An example of postponement in the industrial sector is an automobile assembly line.
a) The various types of utility that logistics management provides to customers are time, place, form, and possession utility. Time utility refers to having the product available when the customer wants it, place utility refers to having the product available where the customer wants it, form utility refers to having the product in the form the customer wants it, and possession utility refers to the customer being able to take ownership of the product.
These utilities contribute to the customer value, which is the difference between the benefits a customer receives from a product and the costs associated with acquiring and using the product. When the customer value is high, the supply chain (SC) surplus is also high because the customer is willing to pay more for the product, leading to higher profits for the company.
b) The postponement strategy is a supply chain strategy in which a company delays the final differentiation of a product until the last possible moment. This allows for mass customization, where a company can produce a large quantity of products but still customize them to meet the individual needs of the customer.
An example of this is Dell, which uses the postponement strategy to customize computers for their customers. Dell keeps a large inventory of computer components and only assembles the final product when an order is placed. This allows them to offer a wide range of customization options without having to keep a large inventory of finished products.
To know more about Logistics management here:
https://brainly.com/question/13954520#
#SPJ11
Susan would like to receive $40,000 in the first year of her financial independence at age 60. After this first income payment, she is content with her annual income growing at the rate of inflation. she would like this income to bed paid for 30 years. she expect inflation to be 2% per year and her investments to achieve nominal returns of 8% per year (compounded yearly). assuming that all calculations are to be performed in real terms, how much does she need to save for financial independence (to the nearest dollar)? please do not include dollar signs of commas in your answer
Susan needs to save $550,627.98 for financial independence. Rounding to the nearest dollar, the answer is $550,628.
We can use the formula for the present value of an annuity:
PV = PMT × [(1 - (1 + r)^-n) / r]
Where:
PV = present value
PMT = payment amount
r = interest rate
n = number of periods
Here, the payment amount is $40,000, the interest rate is 8% - 2% = 6% (the difference between the nominal return and the inflation rate), and the number of periods is 30 years.
PV = $40,000 × [(1 - (1 + 0.06)^-30) / 0.06]
PV = $40,000 × [(1 - 0.17411) / 0.06]
PV = $40,000 × 13.7657
PV = $550,627.98
Therefore, Susan needs to save $550,627.98 .
To learn more about inflation rate:
https://brainly.com/question/30112292#
#SPJ11
(a) Explain to him two (2) reasons people take passive approach in making nondecision decision to help him to understand his concern. Provide relevant examples to support your explanations. (30 marks)Refer to Unit 3, pages 19 to 21 to understand the reasons - state two (2) reasons. - explain each reason and relate the explanation to the situation the reader is facing. Provide examples to further explain the situation. - Provide ways how he can overcome the two (2) reasons and relate them to his situation.(b) Describe ways he can overcome the two reasons. (20 marks)
One of the reasons why people take a passive approach in making non-decision decisions is because they are overwhelmed by the choices available. When faced with too many options, people often struggle to make a decision and instead choose to do nothing. For example, when given a long list of restaurants to choose from, people may hesitate, become overwhelmed and eventually give up on making a decision altogether.
Another reason why people take a passive approach is because of fear of making the wrong decision. People may be afraid of making the wrong decision and choose to do nothing instead. For instance, when presented with different investment options, people may be scared of choosing the wrong one and consequently, end up not investing at all.
To overcome these two reasons, the reader can use a few strategies. Firstly, he should try to limit his choices by focusing on what is most important to him before making a decision. This will help to narrow down his options and make it easier to make a decision.
Secondly, he should be aware of his fear of making the wrong decision and try to be more open minded when it comes to making decisions. He should also remember that even if a decision turns out to be wrong, it can still be rectified.
Lastly, he should consult with people he trusts and seek advice from them before making a decision. This will help him to make more informed decisions and reduce his fear of making the wrong decision.
Know more about passive approach here
https://brainly.com/question/28690552#
#SPJ11
Reflective Inquiry:
Diversity is gaining momentum in organisations all over the world. Employees at companies in emerging markets (China, Brazil and India) reported greater progress over the past several years than companies in developed markets. Hence, one can conclude that diversity adds value to the performance of an organization.
As a Human Capital Manager in a multinational organization where diversity and multiculturalism is the norm, what do you think are some of the human capital initiatives you should be working on to ensure a totally engaged and balanced workforce?
This is an open question which requires you to contemplate upon some of the human capital strategies and initiatives that have been undertaken by successful companies worldwide in increasing business performance and retaining good talent.
As a Human Capital Manager in a multinational organization, there are several initiatives that should be working on to ensure a totally engaged and balanced workforce. Thus organizations can create a positive work environment that promotes diversity, inclusion, and employee engagement, leading to improved business performance and retention of good talent.
These include:
1. Promoting inclusion and diversity: This can be done by creating an inclusive work environment where employees feel valued and respected, regardless of their background, culture, or identity. This can be achieved by providing diversity training, promoting diverse hiring practices, and fostering a culture of inclusion.
2. Providing opportunities for growth and development: Employees should be provided with opportunities to develop their skills and advance their careers. This can be achieved through mentoring programs, training and development programs, and providing opportunities for employees to take on new challenges.
3. Fostering a culture of open communication: Employees should feel comfortable sharing their ideas and concerns with their managers and colleagues. This can be achieved by promoting open communication and encouraging employees to share their thoughts and ideas.
4. Recognizing and rewarding employees: Employees should be recognized and rewarded for their contributions to the organization. This can be achieved through performance-based incentives, employee recognition programs, and other forms of recognition and rewards.
5. Fostering a culture of work-life balance: Employees should be encouraged to maintain a healthy work-life balance, which can be achieved through flexible work arrangements, wellness programs, and other initiatives.
By focusing on these initiatives, organizations can create a positive work environment that promotes diversity, inclusion, and employee engagement, leading to improved business performance and retention of good talent.
To know more about Human Capital Manager click here:
https://brainly.com/question/2114763
#SPJ11
SDLC Introduction of IDLC IDLC was initially established in Bangladesh in 1985 through the collaboration of the International Finance Corporation (IFC) of the World Bank, German Investment and Finance. What is the introduction of IDLC?
IDLC stands for the International Development and Leasing Corporation and was established in 1985 in Bangladesh through the collaboration of the International Finance Corporation (IFC) of the World Bank, German Investment and Finance Corporation (DEG), and the Bangladesh Development Finance Corporation (BDFC). IDLC was set up to provide financial services to entrepreneurs and small and medium-sized businesses. The financial services it offers include leasing, venture capital, corporate finance, and merchant banking.
IDLC operates in several sectors, including infrastructure, manufacturing, healthcare, and renewable energy. The company's mission is to promote economic development in Bangladesh by providing access to finance for businesses and individuals. IDLC is regulated by the Bangladesh Bank and is listed on the Dhaka Stock Exchange. IDLC was the first financial institution in Bangladesh to introduce financial services like the leasing concept and has been a major contributor to the growth of Bangladesh’s economy.
Know more about financial services here:
https://brainly.com/question/14508551
#SPJ11
ABC Company, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. ABC Corporation gave the machine plus €420 to XYZ Business Machine AG (dealer) in exchange for a new machine. Assume the following information about the machines: Old machine New machine
Machine Cost 290 300 Accumulated deprecation 140 0 Fair value 100 520 Instructions For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.) a- From buyer perspective 50 marks b- From seller perspective 50 marks
A) From the buyer's perspective (ABC Company):
1. Record the removal of the old machine:
Debit: Accumulated Depreciation - Old Machine 140
Credit: Machine - Old 290
2. Record the receipt of the new machine:
Debit: Machine - New 300
Credit: Cash 420
Credit: Gain on Disposal of Asset 110
The journal entry for the buyer would be:
| Account | Debit | Credit |
|---------|-------|--------|
| Accumulated Depreciation - Old Machine | 140 | |
| Machine - Old | | 290 |
| Machine - New | 300 | |
| Cash | | 420 |
| Gain on Disposal of Asset | | 110 |
B) From the seller's perspective (XYZ Business Machine AG):
1. Record the removal of the new machine:
Debit: Accumulated Depreciation - New Machine 0
Credit: Machine - New 300
2. Record the receipt of the old machine and cash:
Debit: Machine - Old 290
Debit: Cash 420
Credit: Gain on Disposal of Asset 410
The journal entry for the seller would be:
| Account | Debit | Credit |
|---------|-------|--------|
| Accumulated Depreciation - New Machine | 0 | |
| Machine - New | | 300 |
| Machine - Old | 290 | |
| Cash | 420 | |
| Gain on Disposal of Asset | | 410 |
Know more about journal entry here:
https://brainly.com/question/30499005
#SPJ11
2. You have the chance to start a company with the following annual profits (losses) for the first five years:
-1M, 0, 2M. 5M. 25M
What is the NPV of this investment opportunity if the discount rate is 12%?
3. What is the IRR of this investment opportunity described in #2?
[Note: You can use Excel or other calculators; be careful as the cash flows don't follow an exact pattern such as a constant annuity ]
The NPV (Net Present Value) of an investment opportunity is the present value of the expected future cash flows minus the initial investment. The IRR (Internal Rate of Return) is the discount rate at which the NPV of the investment opportunity is equal to zero. To calculate the NPV of this investment opportunity, we can use the following formula:
NPV = [tex]∑(Ct / (1 + r)^t) - C0[/tex]
Where:
Ct = the annual profit (or loss) in year t r = the discount rate
C0 = the initial investment
Plugging in the values from the question:
NPV = [tex](-1M / (1 + 0.12)^1) + (0 / (1 + 0.12)^2) + (2M / (1 + 0.12)^3) + (5M / (1 + 0.12)^4) + (25M / (1 + 0.12)^5) - 0[/tex]
NPV = -$19,177,629.57
Therefore, the NPV of this investment opportunity is -$19,177,629.57.
To calculate the IRR of this investment opportunity, we can use the IRR function in Excel or other calculators. The IRR function calculates the discount rate at which the NPV of the investment opportunity is equal to zero. In Excel, the formula would be:
=IRR([-1M, 0, 2M, 5M, 25M])
The IRR of this investment opportunity is 56.92%. Therefore, the IRR of this investment opportunity is 56.92%.
Here you can learn more about NPV https://brainly.com/question/28268751
#SPJ11
How does an appellate court differ from a trial couHow does an appellate court differ from a trial court?
Responses
An appellate court examines more witnesses.
An appellate court examines more witnesses.
An appellate court reviews another court's decision.
An appellate court reviews another court's decision.
An appellate court decides issues of fact.
An appellate court decides issues of fact.
An appellate court usually has rt?
Appellate courts are positioned above the trial courts to evaluate their work and to correct any mistakes that may also have occurred. Appellate courts are usually collegiate bodies, consisting of countless judges as an alternative of the single decide who usually presides over a trial court.
What is the appellate machine Class 8?The appellate gadget is a characteristic of the Indian judicial gadget the place a man or woman can enchantment to a greater courtroom if they locate the decision made by a decrease courtroom unjust.
Which courts are appellate courts and why?The Supreme Court has also a very vast appellate jurisdiction over all Courts and Tribunals in India in as a great deal as it may, in its discretion, furnish distinct go away to appeal beneath Article 136 of the Constitution from any judgment, decree, determination, sentence or order in any purpose or be counted exceeded or made with the aid of any Court ...
Learn more about appellate court here;
https://brainly.com/question/11610196
#SPJ1