Answer and Explanation:
The computation is shown below:
a. The price and P/E ratio is
Price = Current year dividend ÷ (Required rate of return - growth rate)
where,
Growth rate is
= ROE × plowback ratio
= 20% × 0.30
= 6%
And, the current year dividend is ×
= $2 × (1 - 0.30)
= $1.4
So, the price is
= $1.4 ÷ (0.14 - 0.06)
= $17.50
Now the P/E ratio is
= $17.50 ÷ 2
= 8.75
b) For the present value of growth opportunities, the formula and the computation is
= Price of the stock - earnings ÷ required rate of return
= $17.50 - $2 ÷ 0.14
= 3.21
c) The P/E ratio and the present value of growth opportunities is
But before that we need to find out the price which is
Price = Current year dividend ÷ (Required rate of return - growth rate)
where,
Growth rate is
= ROE × plowback ratio
= 20% × 0.20
= 4%
And, the current year dividend is
= $2 × (1 - 0.20)
= $1.6
So, the price is
= $1.6 ÷ (0.14 - 0.04)
= $16
Now the P/E ratio is
= $16 ÷ 2
= 8
And, the growth opportunities is
= Price of the stock - earnings ÷ required rate of return
= $16 - $2 ÷ 0.14
= 1.72
Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break even?
a. 790 units
b. 1,000 units
c. 500 units
d. 900 units
e. 667 units
Answer:
8000 units
Explanation:
Given the following :
Fixed cost = $120,000
Variable cost per unit of product = $35
Selling price per unit of product = $50
Number of units that has to be sold to break even:
Break even point (unit) is the ratio of the fixed cost and the unit contribution margin of a product.
Unit contribution margin = selling price - variable cost
Unit contribution margin = $50 - $35 = $15
Break-even point (unit) = $120,000 / $15
Break-even point (unit) = 8000 units
What term refers to the fit between a person’s abilities and the demands of the job and the fit between a person’s desires and motivations and the attributes and rewards of a job? A. manager-employee fit B. occupation-group fit C. person-job fit D. employee-environment fit
Answer:
person-job fit
Explanation:
This fit is called the person-job fit. This is a concept which details how well an a person or an employee is suitable for the position who which he or she is applying for or employed. employees who are the best fit for their positions should be hired because they help a firm to reduce turnover rate. Person job fit, increases organizational commitment, and also employee would experience more job satisfaction.
Q 6.14: The Daily Grind sells coffee makers. Its inventory of coffee makers without timers cost $20,000 and is now valued at $10,000. Its inventory of coffee makers with timers cost $35,000 and is valued at $35,000. What is the value of the Daily Grind's inventory
Answer:
$45,000
Explanation:
Given the following :
Coffee makers without timer :
Inventory COST = $20,000
Present valuation = $10,000
Coffee makers with timer:
Inventory cost = $35,000
Present valuation = $35,000
The value of daily grind's inventory will be the sum of the present valuation of both coffee makers:
(Present valuation of coffee maker without timer + present valuation of coffee maker with timer)
($10,000 + $35,000) = $45,000
Equilibrium price is $8 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 150 units of output. At 150 units, ATC is $11, and AVC is $10. The best policy for this firm is to __________ in the short run. Also, total fixed cost equals __________ and total variable cost equals __________ for this firm.
Answer:
Shut down
$1650
$1500
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
in the shut run, a perfect competition should shut down if average variable cost is greater than price. this is the case for this firm $10 is greater than $8.
total fixed cost = average fixed cost x quantity produced = $11 x 150 = $1650
Total variable cost = average variable cost x quantity produced = $10 x 150 = $1500
Danny’s boss is apathetic as to whether Danny works at home, at the office, or from his beach house. All he cares about is that the project is completed on time, on budget, and with exemplary quality. Which characteristic of organizational culture describes this aspect of Danny’s job?
The question is incomplete:
Danny’s boss is apathetic as to whether Danny works at home, at the office, or from his beach house. All he cares about is that the project is completed on time, on budget, and with exemplary quality. Which characteristic of organizational culture describes this aspect of Danny’s job?
A) low risk taking
B) high outcome orientation
C) high attention to detail
D) low aggressiveness
E) high stability
Answer:
B) high outcome orientation
Explanation:
-Low risk taking is when coservative decisions are made to avoid a high possibility of losing everything.
-High outcome orientation is when a business has high expectations and is focus on having good results.
-High attention to detail is when companies want their employees to focus on precision and attention to detail.
-Low aggressiveness is when people are not competitive.
-High stability is when the activities are focused on maintaining the existing structure.
According to this, the answer is that the characteristic of organizational culture that describes this aspect of Danny's job is high outcome orientation because his boss is focused on getting good results.
Mike Samson is a college football coach making a base salary of $651,600 a year ($54,300 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the FICA base amount is $128,400.Compute how much will be withheld during the year for Coach Samson’s Social Security and Medicare.
What additional amount will the employer need to contribute towards FICA taxes?
Answer:
$7960.80; $9948.20 ; $17,409
Explanation:
Given the following :
Coach base salary = $651,600 ($54,300/month)
Social security tax = 6.2% upto maximum base amount
Medicare tax = 1.45% with no maximum
FICA base amount = $128,400
Coach Samson Social security and Medicare tax:
Social Security tax amount = 6.2% of $128,400
= 0.062 * $128,400 = $7,960.80
Medicare tax amount :
1.45% of $651,600
(1.45 / 100) * $651,600
0.0145 * $651,600
= $9948.20
Additional amount towards FICA taxes:
$7,960.80 + $9,948.20 = $17,409
Morton Company began operations on January 1, 2019. The company has the following items included in its stockholders’ equity section of the balance sheet on December 31, 2020: 6% Preferred stock, $100 par, 100,000 shares authorized, 25,000 shares issued and outstanding $2,500,000 Common stock, $3 par, 500,000 share authorized; 150,000 shares issued and outstanding 450,000 Additional paid-in capital 2,250,000 Total dividends for 2019 & 2020 were: During 2019, Dividends not paid During 2020, Dividends Declared and paid $160,000 If Morton Company’s preferred stock was noncumulative, how much of the 2020 dividends would have been distributed to preferred and common stockholders?
Answer:
Preferred dividend = $150,000
Common Dividend = $10,000
Explanation:
Given the following :
Number of shares issued and outstanding = 25,000
Par value = $100
Dividend rate on Preffered stock = 6%
2019 Dividend = Not paid
2020 Dividend = $160,000 declared and paid
If preferred Dividend was non-cummulative:
Value of Preferred dividend = (Preffered shares issued and outstanding * par value * preferred dividend rate)
Value of preferred dividend = (25,000 * $100 * 0.06) = $150,000
Common dividend = (Total Dividend declared and paid - value of preferred dividend)
Value of Common Dividend = ( $160,000 - 150,000) = $10,000
Preferred dividend = $150,000
Common Dividend = $10,000
Suppose that in 2015, a typical U.S. student attending a state supported college bought 8 textbooks at a price of $90 per book and enrolled in 28 credit hours of coursework at a price of $400 per credit hour. In 2016, the typical student continued to purchase 8 textbooks and enroll in 28 credit hours, but the price of a textbook rose to $100 per book, and the tuition price increased to $440 per credit hour. The base year for computing a "student price index" using this info is 2015. The price index for any base year is 100. The value of the student price index in 2015 is
Answer:
$11,920
Explanation:
2015 prices:
8 textbooks x $90 = $720
28 credit hours x $400 = $11,200
total = $11,920
the base year, in this case 2015, will be used to adjust the relative prices of the goods and services purchased by students. E.g. for year 2016, the index based on 2015 should be (8 x $90) + (28 x $400) = $11,920 since the quantities didn't change, only the nominal prices.
Background Info: Tom finds a second personal loan option. This loan would also require him to repay the principal in one lump sum after three years.
Loan Option B
Principal: $9,000
Type of Interest: Compound Interest
Interest Rate: 8%
Rate of Accrual: Once per year
Use the formula for annual compound interest.
A = P (1 + StartFraction r Over n EndFraction)nt
Remember, A refers to the total amount owed.
Calculate the total amount that Tom would repay.
$10,337
$11,337
$12,337
$13,337
Answer: $11,337
Explanation:
Given formula for annual compound interest.:
[tex]A=P(1+\dfrac{r}{n})^{nt}[/tex]
Given: Principal(P): $9,000
Type of Interest: Compound Interest
Interest Rate(r): 8% = 0.08 [In decimal]
Rate of Accrual: Once per year , i.e. n=1
Time (t)= 3 years
Put all the values in the above formula , we get
[tex]A=9000(1+\dfrac{0.08}{1})^{1\times3}\\\\=9000\left(1.08\right)^{3}\\\\= 9000(1.259712)\\\\\approx\$11,337[/tex]
Hence, the total amount that Tom would repay : $11,337
Answer:
option B
Explanation:
Richard Inc. has been receiving complaints from its customers about the inefficiency of its customer service professionals. The company has now decided to change the recruitment criteria for this role. The new criteria place more emphasis on technical expertise. Richard Inc. is attempting to make a change in the area of
Answer:
Organization structure and design
Explanation:
Organization structure is when a company's mode of operations and strategies are clearly defined and translated into various functions to be carried out by units in the organization and how those units work together to achieve common objectives, while organization design which is quite broader than organization structure tells us about a company's whole process, how teams are set up and led to achieve an organization goals.
Both structure and design are often used to give directions to an organization where the desired results are not met. As in the above scenario, both the structure and the design will now be restructured and redefined such that the new employees that will be recruited must meet the criteria as set out therein hence result in operational efficiency.
You purchase a new car for $33,333. What is the outstanding balance on the loan after you make the second payment if you have a 5-year loan with monthly payments and an interest rate of 7.84% (compounded monthly)? (Round your answer to the nearest integer)
Answer:
$32,419
Explanation:
I prepared an amortization schedule using an excel spreadsheet. The monthly payment is $673.32:
year beginning scheduled principal interest ending
balance payment balance
1 $33,333 $673.32 $456 $218 $32,877 .45
2 $32,877 $673.32 $459 $215 $32,418.91
The outstanding balance after the second payment = $32,418.91 ≈ $32,419
Your manager is not happy with the symbol chairman and changes it to chair. The manager is demonstrating that language can be metaphorical. can be regulative. can be gender-inclusive. can clarify meaning. can express commonalities.
The correct answer is C. Can be gender-inclusive
Explanation:
Language is gender-inclusive if words do not exclude a particular sex or gender. For example, the word "mankind" used to refer to human species is considered as non-inclusive because it can be interpreted as an exclusion of women. In this context, if the manager changes "chairman" by "chair" the manager is showing language can be gender-inclusive because the manager changed the term to make it general and avoid the exclusion of women.
XYZ Company has issued 10%, $100 par non-cumulative preferred stock. Two years ago, XYZ omitted its preferred dividend. Last year, it paid a preferred dividend of $5 per share. This year, XYZ wishes to pay a common dividend. In order to make the distribution to common shareholders, each preferred share must be paid a dividend of:
Answer:
In order to make the distribution to common shareholders, each preferred share must be paid a dividend of:
$5 per share.
Explanation:
The preferred stock is non-cumulative. This implies that XYZ's preferred stockholders are not being owed for the previous two year's dividend that was not paid. Non-cumulative preferred stock does not attract dividend arrears whenever it was not declared. It is cumulative preferred stock that attracts such arrears to be carried forward until they are paid.
Answer the question on the basis of the following information. A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. Refer to the given information. The marginal revenue product of the second worker is:
Answer: $24
Explanation:
Given the following :
Total product for first worker hired = 24
Total product when two workers are hired = 32
Product price = $3 per unit
The marginal revenue product of a worker is equal to the product of the marginal product of labor (MPL) and the marginal revenue (MR) of output.
Marginal revenue product of second worker:
The marginal product of labor :
Change in output when additional labor is added
Therefore, change in product when worker increases from one to two workers ;
32 - 24 = 8 products
Marginal product of labor * product price
8 * $3 = $24
Lillypad Toys is a manufacturer of educational toys for children. Six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. Three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. What should Lillypad's managers prepare for next?
Answer:
increased competition from imitators
Explanation:
In the scenario being described, Lillypad's managers should prepare for increased competition from imitators. Whenever a company releases a new product into the market, other competitors in the same market will try and release a similar product as fast as possible in order to profit from the high demand of the unique product as well as take advantage of the advertisements that the original company has already made in order to get a population aware of the new device.
Q 10.29: The current market interest rate for $1,000, 10-year bonds of large corporations in the food industry is 6.3 percent. If a large corporation in the food industry wants to sell $1,000, 10-year bonds with a 4.9% annual interest rate, what type of bond should they consider issuing
Answer:
Convertible bond
Explanation:
Convertible bond refers to the bond in which the investor has an option to convert its bond into another form
By converting the bonds you get the lower interest rate as compared to before.
Therefore as per the given situation, if the one bond contains 6.3% and other contains 4.9% so this represents the convertible bond
A broker may discuss and negotiate the tems upon which to take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing when:
Answer:
The broker is contacted by the current seller
Explanation:
A broker is a body that can either be a single person or a firm that acts as an intermediary between the seller and the buyer. It performs the role of an agent who helps in the selling of a product from a seller to a specific buyer. It helps in facilitating a common ground where the seller and the buyer can reach for their specific purposes. The discussions and negotiations about the listings can be done when the broker is contracted by the current seller respectively.
Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units?
a- 480
b- 0.104
c- Cannot be determined from the information above
d- 50
e- 9.6
Answer:
e - 9.6
Explanation:
Since the daily production time is 480 minutes, and the daily output is 50 units. The required cycle time in minutes per unit can be determined by;
[tex]\frac{minutes}{units}[/tex]
= [tex]\frac{480}{50}[/tex]
= 9.6 min/unit
This implies that it takes 9.6 minutes to produce a unit daily. Then 480 minutes to produces 50 units daily.
All of the following are benefits of debt financing except: Group of answer choices Interest on debt financing is tax deductible Debt is typically cheaper than equity Debt does not have predefined payment terms Debt can motivate managers to reduce wasteful spending
Answer:
Debt does not have predefined payment terms
Explanation:
Assuming Net Income for the year is $115,000, what is the net operating cash flows given the following information: Increase in Salaries Payable $15,000 Depreciation Expense $6,000 Increase in Prepaid Rent $24,000 Loss on sale of asset $1,000 Increase in Accounts Payable $25,000 Increase in Inventory $50,000
Answer:
Operating Cash flows refer to those that have to do with the day to day management of the business and result from the business's normal operations.
Increases in money owed are added to the balance as it means more money stayed with the company.
Increases in assets are deducted as it means money was spent on acquiring them.
Depreciation is added back as it is a non cash expense so also is the loss on sale of asset.
Net Operating Income $115,000
Add back:
Depreciation $6,000
Loss on sale of asset $1,000
Add:
Increase in Salaries Payable $15,000
Increase in Accounts Payable $25,000
Less:
Increase in Prepaid Rent ($24,000)
Increase in Inventory ($50,000)
Net Operating Cash-flows $88,000
The net operating cash flows based on the information given is $88,000.
Net operating cash flow:
Net Operating Income $115,000
Adjustments:
Add Depreciation $6,000
Add Loss on sale of asset $1,000
Increase in Salaries Payable $15,000
Add Increase in Accounts Payable $25,000
Less Increase in Prepaid Rent ($24,000)
Less Increase in Inventory ($50,000)
Net Operating Cash-flows $88,000
Inconclusion the net operating cash flows is $88,000.
Learn more here:https://brainly.com/question/19866611
Belinda uses online banking everyday for her small business transactions. One day, as she opens the browser and clicks on the bookmark link for her bank's website, she notices that some very slight changes have been made to the site. She wonders if they are sprucing it up a bit, because it hasn't changed in a while. A few days later, her company ledger is in total disarray. Which of the following has most likely caused this disarray?
a. She is a victim of radio frequency identification.
b. She probably visited a pharming site and didn't know it.
c. She must have segregated her spam mails without opening them.
d. She is probably the victim of spyware.
Answer: She probably visited a pharming site and didn't know it.
Explanation:
Based on the scenario that has been explained in the question, we can say that Belinda probably visited a pharming site and didn't know it.
Pharming is an online fraud which involves the use of fraudulent websites and malicious code by fraudsters. The cybercriminals put the malicious code on ones and with the code, one will be redirected to a bogus websites without the person even knowing or being aware.
In 1945, an African American family tries to purchase a home in a White neighborhood, but realtors and mortgage lenders refused to facilitate their purchase. This practice is an example of ______.
Answer:
The correct answer will be "Redlining".
Explanation:
Redlining seems to be the technique of refusing, or paying more than that for, service providers including certain banking, affordable healthcare, and perhaps even convenience stores, or refusing jobs especially to people, particularly disproportionately influenced communities.In commercial property, it would be a discriminatory activity, especially when it involves investors who refuse to offer extra income and perhaps make payments to borrowers in many of these sections of the province.So that given instance is an example of "Redlining".
Although the use of debt provides tax benefits to the firm, debt also puts pressure on the firm to: I) meet interest and principal payments, which if not met can put the company into financial distress; II) make dividend payments, which if not met can put the company into financial distress; III) meet both interest and dividend payments, which when met increase the firm cash flow; IV) meet increased tax payments, thereby increasing firm value
Answer:
I) meet interest and principal payments, which if not met can put the company into financial distress
Explanation:
Among the given options the first option is correct with respect to pressure on the firm as if the payment of debt is not given so the chances of liquidation of the firm are high that comes under the bankruptcy
So while taking the debt we need to pay the interest and principal payments so that the chances of the liquidation would be less
hence, the first option is correct
____ is the efforts to systematically find, organize, and make available a company's intellectual capital and to foster a culture of continuous learning and knowledge sharing so that organizational activities build on what is already known.
Answer: knowledge management
Explanation:
Knowledge management has to do
with the efficient handling of the resources and the information that is within an organization. Organizational objectives and goals can be easily achievable when there is an efficient use of the available knowledge.
Therefore, knowledge management is the efforts to systematically find, organize, and make available a company's intellectual capital and to foster a culture of continuous learning and knowledge sharing so that organizational activities build on what is already known.
Nancy sold three capital assets that were held for investment. She sold stock in ABC Corporation for a gain of $10,000; stock in XYZ Corporation for a gain of $2,000; and corporate bonds for a loss of $20,000. Assuming all of the investments had a long-term holding period, how will the transactions be treated for tax purposes
Answer:
D) $3,000 deduction against ordinary income with a $5,000 capital loss carried forward to offset income for next year
Explanation:
Note: This question is not complete as it does not include the options. The complete question is therefore presented before answering the questions follows:
Nancy sold three capital assets that were held for investment. She sold stock in ABC Corporation for a gain of $10,000; stock in XYZ Corporation for a gain of $2,000; and corporate bonds for a loss of $20,000. Assuming all of the investments had a long-term holding period, how will the transactions be treated for tax purposes?
A) Gain of $12,000 taxed at 15% and a loss of $20,000 deductible against ordinary income
B) Net loss of $8,000 that is fully deductible against ordinary income in the current year
C) Net loss of $8,000 that results in no deduction in the current year, but can be carried forward to offset capital gains for the next year
D) $3,000 deduction against ordinary income with a $5,000 capital loss carried forward to offset income for next year
The explanation to the answer is therefore presented as follows:
The first step is to compute the net capital gain (loss) is as follows:
Particulars $
Gain from the sale of stock in ABC Corporation 10,000
Gain from the sale of stock in XYZ Corporation 2,000
Loss from the sale of corporate bonds (20,000)
Net capital gain (loss) (8,000)
In the US, individuals are allowed to use up to $3,000 to reduce their taxable income in the first year of the loss, while the remaining capital losses will be carried over to the next years.
From the net capital gain computed above, the correct option is D. That is, the $8,000 loss will be treated for tax purposes as a $3,000 deduction against ordinary income in the current year with the remaining $5,000 capital loss carried forward to offset income for next year.
Production and sales estimates for March for the Streamline Systems Co. are as follows: Estimated inventory (units), March 1 17,500 Desired inventory (unit), March 31 20,300 Expected sales volume (units) 35,000 Unit sales price $15 a.35,000 b.37,800 c.20,300 d.17,500
Answer:
b.37,800
Explanation:
The computation of the number of units expected to be manufactured is shown below:-
Number of units expected to be manufactured = Sales + Ending inventory - Beginning inventory
= 35,000 + 20,300 - 17,500
= 37,800 units
Therefore for computing the number of units expected to be manufactured we simply applied the above formula.
The USDA maintains ethanol has an impact on food prices. "Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the long run in the corn market, what is true if the production of ethanol increases?
Answer:
new corn farmers will enter the market and decrease the market price.
Explanation:
In regards to the information provided, it can be said that in a long term perspective if the production of ethanol keeps increasing then new corn farmers will enter the market and decrease the market price. This is because as ethanol production increases, so does the price of corn. This will continue up to a certain point were profitability for farmers is high and many new farmers will enter the market hoping to profit from the corn as well. All these new farmers will drastically increase the production of corn and as the supply of corn rises the prices will begin to fall.
what is a good online website for a highschool student to do 40 hours volunteering?
there are many websites to volunteer
I've found some websites from the given list
1. United Nation Volunteers
2. Catchafire
3. Smithsonian Digital Volunteers
4. Amnesty Decoders
5. Translators Without Borders
6. Crisis Text line
7. Zooniverse
8. Project Gutenberg
9. Dosomething.org
On December 31, Jacoby Company received a $385 bill for the purchase of supplies in December that it will not pay for until January 15. Jacoby follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry needed on December 31 to accrue this cost is:
Answer:
Supplies $385 (debit)
Accounts Payable $385 (credit)
Explanation:
Recognize the Assets of Supplies and also recognize the Liability : Accounts Payable fort the amount owing that will be paid in the coming financial year.
In January of 2009, the Falwell Company began construction of its own manufacturing facility. During 2009, $6,000,000 in costs were incurred evenly throughout the year. Falwell took out a $2,500,000, 10% construction loan at the beginning of the year. The company had no other interest-bearing debt. What amount of interest should Falwell capitalize in 2009
Answer:
$250,000
Explanation:
Calculation of the amount of interest should Falwell capitalize in 2009
Based on the information given we were told that the company took out the amount of $2,500,000, 10% of the construction loan at the start of the year. Therefore the amount of interest that Falwell should capitalize in 2009 will be calculated as:
Interest = $2,500,000*10%
Interest =$250,000
Therefore the amount of Falwell interest should be $250,000