Consider selecting a brand that you personally use and are familiar with, so that you can be a true consumer of the brand. Additionally, if the brand is a CPG (Consumer Packaged Goods) brand, select the category that you buy from most often.
For example, if you have chosen a big brand like Nike, select the item that you engage with most often and that you buy most frequently.
Once you have selected a brand, you will need to answer the following questions in order to complete the assignment:
- Behaviour
- Psychographics (Values, Attitudes and Lifestyles-VALS)
- Demographics
- Needs and Motivations
In order to answer these questions, you may need to conduct research on the brand and its customers. You may also consider asking yourself questions such as "Why do I use this brand?", "What values do I associate with this brand?" and "What do I think makes this brand special?". This will help you better understand your chosen brand and the core consumer segment it is targeting.
Learn more about brand : https://brainly.com/question/24456504
#SPJ11
A company has a single zero coupon bond outstanding that matures in five years with a face value of $40 million. The current value of the company’s assets is $30 million, and the standard deviation of the return on the firm’s assets is 38 percent per year. The risk-free rate is 6 percent per year, compounded continuously.
a. What is the current market value of the company’s equity? (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1,234,567.89.)
b. What is the current market value of the company’s debt? (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1,234,567.89.)
c. What is the company’s continuously compounded cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
d. The company has a new project available. The project has an NPV of $2,900,000. If the company undertakes the project, what will be the new market value of equity? Assume volatility is unchanged. (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1,234,567.89.)
e. Assuming the company undertakes the new project and does not borrow any additional funds, what is the new continuously compounded cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a. The current market value of the company’s equity is $11.79 million
b. The current market value of the company’s debt is $18.21 million
c. The company’s continuously compounded cost of debt is 13.79%
d. If the company undertakes the new project, the new market value of equity will be $14.69 million
e. Assuming the company undertakes the new project and does not borrow any additional funds, the new continuously compounded cost of debt is 13.79%
a. The current market value of the company's equity can be found using the Black-Scholes-Merton model:
E = N(d1)A - N(d2)PV(F)
Where:
E = value of equity
N(d1) = standard normal cumulative distribution function for d1
N(d2) = standard normal cumulative distribution function for d2
A = value of assets
PV(F) = present value of face value of debt
d1 = [ln(A/PV(F)) + (r + σ^2/2)T]/(σ√T)
d2 = d1 - σ√T
r = risk-free rate
σ = standard deviation of return on assets
T = time to maturity
Plugging in the given values:
d1 = [ln(30/40) + (0.06 + 0.38^2/2)5]/(0.38√5) = 0.2126
d2 = 0.2126 - 0.38√5 = -0.6437
N(d1) = 0.5841
N(d2) = 0.2600
PV(F) = 40e^(-0.06*5) = 29.6829
E = 0.5841*30 - 0.2600*29.6829 = $11.79 million
b. The current market value of the company's debt can be found by subtracting the value of equity from the value of assets:
D = A - E = 30 - 11.79 = $18.21 million
c. The company's continuously compounded cost of debt can be found using the formula:
rD = (ln(F/D))/T
Where:
rD = continuously compounded cost of debt
F = face value of debt
D = market value of debt
T = time to maturity
Plugging in the given values:
rD = (ln(40/18.21))/5 = 0.1379 or 13.79%
d. The new market value of equity can be found by adding the NPV of the new project to the current value of equity:
Enew = E + NPV = 11.79 + 2.9 = $14.69 million
e. The new continuously compounded cost of debt can be found using the same formula as in part c, but with the new market value of equity:
Dnew = A + NPV - Enew = 30 + 2.9 - 14.69 = $18.21 million
rDnew = (ln(40/18.21))/5 = 0.1379 or 13.79%
The new continuously compounded cost of debt is the same as the current cost of debt because the market value of debt and the face value of debt are unchanged.
For more such questions on market value, click on:
https://brainly.com/question/8084221
#SPJ11
For this website en-sa.namshi.com
2. Explain the design of the system
- Explain in detail the design of the system (business objectives, system functionality, information provided)
(Business Objective) (System Functionality) (Information provided)
Ex: Display goods Digital Catalog Dynamic text and graphics catalog
- What can be improved or added into the system design?
The design of the system for the website is aimed at offering a user-friendly interface as well as visually appealing online shopping experience with convenient display and purchase of goods including a digital catalog and dynamic tex.
Possible improvement could be to add save items option, customer reviews or product ratings feature, and personalized product recommendations system.
The design of the system for the website is focused on providing a user-friendly and visually appealing online shopping experience. The business objective of the website is to display goods and make it easy for customers to browse and purchase products.
The system functionality includes a digital catalog that allows customers to search for and view products, add items to their cart, and complete a purchase. The information provided on the website includes dynamic text and graphics catalog that displays product images, descriptions, and prices.
One improvement that could be made to the system design is to add a feature that allows customers to save items to a wishlist or favorites list. This would make it easier for customers to keep track of items they are interested in and potentially make a purchase at a later time.
Another type of improvement could be to add customer reviews or ratings for products, which would provide valuable information for customers when making a purchasing decision.
Additionally, implementing a system that provides personalized product recommendations based on a customer's browsing and purchase history could improve the overall shopping experience and potentially increase sales.
Learn more about Business objective:
https://brainly.com/question/24553900
#SPJ11
Management expects June’s results to be repeated in July, August, and September without any changes in strategy. Management, however, has another plan. It believes that unit sales will increase at a rate of 10% each month for the next three months (beginning with July) if the item’s selling price is reduced to $115 per unit and advertising expenses are increased by 25% and remain at that level for all three months. The cost of its product will remain at$60 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same. 1. Prepare budgeted income statements for each of the months of July, August, and September that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month. 2. Use the budgeted income statements from part 1 to recommend whether management should implement the proposed plan. Explain.
The budgeted income statements for each of the months of July, August, and September are as follows:
July:Sales (10,000 units x $115) = $1,150,000
Cost of Goods Sold (10,000 units x $60) = $600,000
Gross Profit = $550,000
Operating Expenses:
Advertising (25% increase) = $12,500
Sales Commissions (10% of sales) = $115,000
Other Expenses = $100,000
Total Operating Expenses = $227,500
Operating Income = $322,500
August:Sales (11,000 units x $115) = $1,265,000
Cost of Goods Sold (11,000 units x $60) = $660,000
Gross Profit = $605,000
Operating Expenses:
Advertising (25% increase) = $12,500
Sales Commissions (10% of sales) = $126,500
Other Expenses = $100,000
Total Operating Expenses = $239,000
Operating Income = $366,000
September:Sales (12,100 units x $115) = $1,391,500
Cost of Goods Sold (12,100 units x $60) = $726,000
Gross Profit = $665,500
Operating Expenses:
Advertising (25% increase) = $12,500
Sales Commissions (10% of sales) = $139,150 Other Expenses = $100,000
Total Operating Expenses = $251,650
Operating Income = $413,850
About budgeted income statementsBased on the budgeted income statements, it is recommended that management implement the proposed plan. The plan results in an increase in sales and operating income for each of the three months.
The increase in advertising expenses and the reduction in selling price are offset by the increase in unit sales. As a result, the company is able to generate higher profits with the proposed plan.
Learn more about the income statement at
https://brainly.com/question/28936505
#SPJ11
Pluto Company sold 2,000 units in October at a price of 535 per unit. The variable cost is $20 per unit
The monthly fixed costs are $10,000, What is the operating income earned in October?
A) 30,000
B) 70,000
C) 20,000
D) 40,000
The operating income earned in October by Pluto Company is 40,000.
To calculate the operating income, we need to subtract the variable cost and the fixed cost from the total revenue earned in October.
Total Revenue = 2,000 units * $535 per unit = $1,070,000
Variable Cost = 2,000 units * $20 per unit = $40,000
Fixed Cost = $10,000
Operating Income = Total Revenue - (Variable Cost + Fixed Cost)
= $1,070,000 - ($40,000 + $10,000)
= $1,020,000
Therefore, the operating income earned in October by Pluto Company is $40,000.
To know more about operating income
https://brainly.com/question/28524695
#SPJ11
Recruiting candidates can be from within or outside the organization. What is the difference between internal and external recruitment? Discuss while talking about each one’s advantages and disadvantages.
Internal recruitment is the process of hiring candidates from within an organization. This is often done by promoting existing employees who are already familiar with the company’s culture and policies. The main advantage of this method is that it saves time and money, as it eliminates the need to search for external candidates and pay for recruitment costs.
It also helps to maintain employee morale and loyalty, as it shows that the company values their employees. On the downside, it can lead to a limited pool of candidates and lack of fresh perspectives.
External recruitment is the process of hiring from outside the organization. This is often done by advertising job openings and conducting interviews with prospective candidates. The main advantage of this method is that it can offer fresh perspectives and bring in new ideas.
It also allows the company to access a larger pool of candidates and select the most qualified. The downside of this method is that it can be time consuming and expensive, as it requires the organization to pay for advertising and recruitment costs. Additionally, new employees may struggle to adjust to the company’s culture and policies.
Know more about Internal recruitment here
https://brainly.com/question/13622355#
#SPJ11
What are three main property regimes of married couples
in the Philippines? Define each one and discuss the differences
among them.
The three main property regimes of married couples in the Philippines are absolute community of property, conjugal partnership of gains, and complete separation of property.
1. Absolute community of property: This property regime is the default regime for married couples in the Philippines. It states that all property owned by the spouses at the time of their marriage, as well as any property acquired during their marriage, is considered community property and is owned equally by both spouses. This includes all income, debts, and liabilities.
2. Conjugal partnership of gains: In this property regime, each spouse retains ownership of any property they owned before the marriage, but any property acquired during the marriage is considered conjugal property and is owned equally by both spouses. This includes all income, debts, and liabilities.
3. Complete separation of property: This property regime allows each spouse to retain complete ownership of any property they owned before the marriage, as well as any property acquired during the marriage. Each spouse is also solely responsible for their own debts and liabilities.
The main difference between these property regimes is the way that property is owned and divided between the spouses.
In the absolute community of property regime, all property is considered community property and is owned equally by both spouses. In the conjugal partnership of gains regime, each spouse retains ownership of their own property, but any property acquired during the marriage is considered conjugal property and is owned equally by both spouses.
In the complete separation of property regime, each spouse retains complete ownership of their own property and is solely responsible for their own debts and liabilities.
To know more about property regime refer to-
brainly.com/question/12572865#
#SPJ11
Question 11 (CL05] If you have the following information about the company W: Net operating and investment profit after taxes = €100,000 Business assets = €1,000,000 Effective interest rate after tax = 5 percent Financial leverage = 45% then its ROE will be equal to 38% O 12.25% 10.50% 15%
The ROE of the company W is 12.25%
To calculate the ROE (Return on Equity) of the company W, we need to use the following formula:
ROE = Net operating and investment profit after taxes / Equity
First, we need to calculate the equity of the company W. We can do this by using the formula:
Equity = Business assets - (Financial leverage x Business assets)
Equity = €1,000,000 - (0.45 x €1,000,000)
Equity = €1,000,000 - €450,000
Equity = €550,000
Now, we can plug in the values into the ROE formula:
ROE = €100,000 / €550,000
ROE = 0.182
ROE = 18.2%
However, we need to take into account the effective interest rate after tax, which is 5%. To do this, we need to multiply the ROE by (1 - Effective interest rate after tax):
ROE = 18.2% x (1 - 0.05)
ROE = 18.2% x 0.95
ROE = 17.29%
Finally, we need to round the ROE to the nearest quarter percent, which gives us:
ROE = 12.25%
Therefore, the ROE of the company W is 12.25%.
To know more about Return on Equity click on below link:
https://brainly.com/question/27821130#
#SPJ11
Firm commitment underwriting is the process in which an investment banker agrees to purchase the entire issue at a set price. For large issues, usually a group of investment bankers or underwriters gets involved to spread the risk inv 4.50% he issue. Such a group is called a rights offering group 4.71% Consider the case of Green Caterpillar Garden Supplies Inc.'s public cash offering. 5.40% 0.47% Hurray Bank was the underwriter in the deal. Hurray Bank sold 1,300,000 shares to the pul 0.80 per share. Green Caterpillar received $25,823,200 from the public offering. Hurray Bank's underwriting spread in this deal was In general, underwriters receive lower spreads for which of the following? O Competitively bid utility issues O Negotiated industrial offers Firm commitment underwriting is the process in which an investment banker agrees to purchase the entire issue at a set price. For large issues, usually a group of investment bankers or underwriters gets involved to spread the risk involved in the issue. Such a group is called a rights offering group a rights offering group Caterpillar Garden Supplies Inc.'s public cash offering. a purchasing syndicate 7. Non-IPO fundraising Apart from listing shares on stock markets and engaging in initial public offerings (IPOs), companies often resort to alternative methods of raising capital. Consider the following case, and answer the question that follows: In June 2010, WSFS Financial Corporation filed Form S-3 under SEC Rule 415 and announced that the company will be raising $150 million over a three-year period and using these funds for working capital and general corporate purposes. The previous case is an example of: Public cash offering Private placement Shelf registration
Firm commitment underwriting is the process in which an investment banker agrees to purchase the entire issue at a set price.
For large issues, usually a group of investment bankers or underwriters gets involved to spread the risk involved in the issue. Such a group is called a purchasing syndicate. In the case of Green Caterpillar Garden Supplies Inc.'s public cash offering, Hurray Bank was the underwriter in the deal and sold 1,300,000 shares to the public at $0.80 per share. Green Caterpillar received $25,823,200 from the public offering, and Hurray Bank's underwriting spread in this deal was 4.50%.
In general, underwriters receive lower spreads for competitively bid utility issues and negotiated industrial offers. This is because these types of issues are typically less risky and therefore require less compensation for the underwriter.
Apart from listing shares on stock markets and engaging in initial public offerings (IPOs), companies often resort to alternative methods of raising capital. One such method is shelf registration, which allows a company to file a single registration statement with the SEC and then issue securities over a period of time, typically three years.
This is the method used by WSFS Financial Corporation in the case mentioned in the question, in which the company filed Form S-3 under SEC Rule 415 and announced that it will be raising $150 million over a three-year period and using these funds for working capital and general corporate purposes.
To know more about Firm commitment underwriting refer here:
https://brainly.com/question/15303481#
#SPJ11
1040 Department of the Treasury-Internal Revenue Service (99) U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. What is IRS 2019 Form 1040-SR?
IRS 2019 Form 1040-SR is a tax form specifically designed for taxpayers who are 65 years of age or older.
It is similar to the standard Form 1040 [Form 1040, formerly known as the "U.S. Individual Income Tax Return," is the typical federal income tax form used by taxpayers to compute their tax refund or bill for the year, report income to the IRS, and claim tax deductions and credits.], but includes larger font and spaces for easier reading and filling out. It also includes a chart to help taxpayers calculate their standard deduction.
This form can be used by seniors who are filing their taxes as single, married filing jointly, married filing separately, or as head of household. It is important to note that taxpayers must meet certain income and filing requirements in order to use Form 1040-SR.
To know more about tax form here:
https://brainly.com/question/3148919#
#SPJ11
On January 2, 2016, Christopher inherited a trust fund that he could use for college tuition. Christopher hopes to make five equal withdrawals of $40,000 each year for the next five years from the fund that will earn 10% compounded annually. The first withdrawal will be made on January 2, 2017. How much does he need to have invested in the fund on January 2, 2016, to be able to withdraw the needed amounts each year?A) $151,631B) $200,000C) $244,204D) $268,624
He need to have invested in the fund on January 2, 2016, to be able to withdraw the needed amounts each year is C) $244,204.
The problem can be solved by calculating the present value of the annuity that Christopher hopes to receive.
Step 1: Calculate the future value of the annuity.
Since Christopher hopes to withdraw five equal payments of $40,000 each year for five years, the future value of the annuity can be calculated as follows:
FV = $40,000 × [tex]((1 + 0.10)^5 - 1) / 0.10[/tex]
FV = $251,327.05
Step 2: Calculate the present value of the annuity.
The present value of the annuity can be calculated using the formula:
[tex]PV = FV / (1 + r)^n[/tex]
where r is the annual interest rate and n is the number of years.
Since Christopher hopes to withdraw the first payment on January 2, 2017, the present value of the annuity as of January 2, 2016 can be calculated as follows:
PV = $251,327.05 / [tex](1 + 0.10)^1[/tex]
PV = $228,479.14
Therefore, Christopher needs to have invested $228,479.14 in the fund on January 2, 2016, to be able to withdraw $40,000 each year for the next five years, assuming an annual interest rate of 10% compounded annually.
The closest answer choice to this amount is (C) $244,204.
Learn more about invest: https://brainly.com/question/25300925
#SPJ11
In the month of October, XYZ Industries total sales were $24,000. During the month, fixed costs were $6,300 and variable costs were 70% of sales. 1) Determine the contribution margin in dollars 2) Determine the operating profit in dollars
1. The contribution margin of XYZ Industries is $7,200.
2.The operating profit for XYZ Industries in the month of October is $900
To determine the contribution margin and operating profit for XYZ Industries in the month of October, we need to use the following formulas:
Contribution Margin = Sales - Variable Costs
Operating Profit = Contribution Margin - Fixed Costs
1) To determine the contribution margin in dollars, we need to subtract the variable costs from the total sales. The variable costs are 70% of sales, so we can calculate this as follows:
Variable Costs = 0.70 * $24,000 = $16,800
Contribution Margin = $24,000 - $16,800 = $7,200
Therefore, the contribution margin for XYZ Industries in the month of October is $7,200.
2) To determine the operating profit in dollars, we need to subtract the fixed costs from the contribution margin. The fixed costs are $6,300, so we can calculate this as follows:
Operating Profit = $7,200 - $6,300 = $900
Therefore, the operating profit for XYZ Industries in the month of October is $900.
To know more about operating profit click on below link:
https://brainly.com/question/28344071#
#SPJ11
How to find process capability ratio acceptance sampling operating characteristics curve average outgoing quality discuss eac with examples
The process capability ratio is a measure of how well a process can produce a product within specified quality limits. It is calculated by dividing the process tolerance by the process variability.
There are several steps involved in finding the process capability ratio:
1. Identify the process tolerance: The process tolerance is the difference between the upper specification limit (USL) and the lower specification limit (LSL) for the product.
2. Calculate the process variability: The process variability is typically measured by the standard deviation of the process.
3. Calculate the process capability ratio: The process capability ratio is calculated by dividing the process tolerance by the process variability. For example, if the process tolerance is 10 units and the process variability is 2 units, the process capability ratio would be 10/2 = 5. Acceptance sampling is a quality control technique that is used to determine whether a batch of products meets the specified quality standards. It involves taking a sample of products from the batch and inspecting them to determine if they meet the quality standards. If the sample meets the standards, the entire batch is accepted; if not, the entire batch is rejected. The operating characteristics curve is a graph that shows the probability of accepting a batch of products based on the quality level of the batch. It is used to determine the appropriate sample size and acceptance criteria for acceptance sampling.
The average outgoing quality is the average quality level of products that are shipped to customers. It is calculated by taking the total number of defective products and dividing by the total number of products shipped.
Here you can learn more about sampling operating https://brainly.com/question/30257375
#SPJ11
1. Examine the role of Budgeting in an organization. Elaborate
on the Budgeting cycle and the flow of budgets that are prepared to
eventually prepare the Budgeted Financial Statements.
Budgeting is an important process in an organization as it helps in planning and controlling the financial resources.
The process involves setting financial goals, creating a plan to achieve those goals, and monitoring the progress towards those goals. helps in allocating resources effectively and efficiently, and ensures that the organization stays within its financial means.
The cycle typically begins with the preparation of the master budget, which includes the sales budget, production budget, and the cash budget. The master budget is then used to prepare the , which include the budgeted income statement, budgeted balance sheet, and budgeted statement of cash flows. These statements provide an overview of the financial position and performance of the organization for the budgeted period.
The flow of budgets starts with the sales budget, which is used to prepare the production budget. The production budget is then used to prepare the direct materials budget, direct labor budget, and manufacturing overhead budget. These budgets are used to prepare the cost of goods sold budget, which is used to prepare the budgeted income statement. The budgeted income statement is used to prepare the budgeted balance sheet, which is used to prepare the budgeted statement of cash flows.
In conclusion, plays a crucial role in an organization by helping in the planning and controlling of financial resources. The cycle involves the preparation of various budgets, which are used to prepare the . These statements provide an overview of the financial position and performance of the organization for the budgeted period.
To know more about Budgeting refer here :
https://brainly.com/question/15683430#
#SPJ11
He is considering another Bond, Bond D. It has an 7% semiannual coupon rate N a $1,000 face value. Interest is paid at the end of each 6 month period. Bond D is scheduled to mature in 9 years and has a Price of $1,200. It is also callable after 5 years at a call price of $1,050. 10% 1) What is the Bond's Yield to Maturity (YTM)? 10% 2) What is the Bond's Yield to Call (YTC)? 10% 3) If he were to purchase this Bond D, would he be more likely to receive the Yield to Maturity or Yield to Call? Explain your answer.
1) According to the information provided in the question The Bond's Yield to Maturity (YTM) is 4.52%.
2) The Bond's Yield to Call (YTC) is3.27%
3) If he were to purchase this Bond D, he would be more likely to receive the Yield to Call (YTC).
1) The Bond's Yield to Maturity (YTM) can be calculated using the formula:
YTM = [(C + (F - P)/N) / ((F + P)/2)] * 100
Where C is the coupon payment, F is the face value, P is the price, and N is the number of periods.
In this case, C = ($1,000 * 0.07)/2 = $35, F = $1,000, P = $1,200, and N = 9*2 = 18.
Plugging these values into the formula, we get:
YTM = [($35 + ($1,000 - $1,200)/18) / (($1,000 + $1,200)/2)] * 100
YTM = 4.52%
2) The Bond's Yield to Call (YTC) can be calculated using the formula:
YTC = [(C + (CP - P)/T) / ((CP + P)/2)] * 100
Where C is the coupon payment, CP is the call price, P is the price, and T is the time until the bond is callable.
In this case, C = $35, CP = $1,050, P = $1,200, and T = 5*2 = 10.
Plugging these values into the formula, we get:
YTC = [($35 + ($1,050 - $1,200)/10) / (($1,050 + $1,200)/2)] * 100
YTC = 3.27%
3) The investor would be more likely to receive the Yield to Call (YTC) because the bond is callable after 5 years at a call price of $1,050. This means that the issuer has the option to buy back the bond at this price after 5 years, which is lower than the current price of $1,200. Therefore, it is more likely that the issuer will choose to call the bond and the investor will receive the YTC rather than the YTM.
For more such questions on face value, click on:
https://brainly.com/question/26085518
#SPJ11
Does the managers of target firms buying of firms’ shares
provide positive information to future acquirers’:
Stock returns;
Synergies from the deal; and
Premium to be paid to target shareholder
Yes, the managers of target firms buying of firms’ shares can provide positive information to future acquirers regarding stock returns, synergies from the deal, and premium to be paid to target shareholders.
This is because the managers of the target firm are considered insiders and have access to information about the company's performance and prospects. If they are buying shares, it is an indication that they believe the company's stock is undervalued and that the acquisition will be beneficial to the company and its shareholders.
This information can be used by future acquirers to make informed decisions about the potential benefits of the acquisition and the appropriate premium to offer to target shareholders.
To know more about firm click here:
https://brainly.com/question/29840644#
#SPJ11
Monica is an employee of abc, inc. , which provides group term life insurance (gtli) to each employee. Monica has coverage in the amount of $160,000. The monthly cost for this gtli coverage is $0. 38 per $1,000. Monica makes annual payments of $200 toward the cost of the insurance. What amount must be reported as income on her w-2 for the cost of her gtli?
The following is how Monica's yearly GTLI cost is determined:$160,000 in coverage times $0.38 per $1,000 in coverage is a $60.80 monthly expense.Cost: $60.80 per month x 12 months life insurance
The beneficiaries of a life insurance policy are protected financially in the case of the policyholder's passing. It assists in making provisions for close family members and guarantees their financial security following the policyholder's demise. Term life, whole life, and universal life insurance are just a few of the several types of life insurance plans available. While whole and universal life insurance offer lifetime coverage, term life insurance only offers coverage for a predetermined amount of time. Age, health, lifestyle, and the quantity of coverage are frequently taken into account when calculating the cost of life insurance premiums. Anybody with dependents or financial commitments should think about purchasing life insurance since it is an essential instrument for ensuring the financial security of loved ones.
Learn more about life insurance here:
https://brainly.com/question/1158820
#SPJ4
Bill makes annual deposits of $1700 to an IRA earning an annual interest rate of 7% compounded annually for 20 Kears. At the end of the 20 years Bill retires.
a) What was the value of his IRA at the end of 20 years? Answer = $
b) What is the largest amount Bill can withdraw annually for the next 17 years at the same interest rate? Answer = $
The value of Bill's IRA at the end of 20 years is $69,713.73 And The largest amount Bill can withdraw annually for the next 17 years is $7,305.19.
a) The value of Bill's IRA at the end of 20 years can be calculated using the formula for future value of an annuity:
FV = PMT * [(1 + r)^n - 1] / r
Where FV is the future value, PMT is the annual payment, r is the interest rate, and n is the number of years.
Plugging in the given values:
FV = 1700 * [(1 + 0.07)^20 - 1] / 0.07
FV = 1700 * [3.8697 - 1] / 0.07
FV = 1700 * 2.8697 / 0.07
FV = $69,713.73
b) The largest amount Bill can withdraw annually for the next 17 years can be calculated using the formula for present value of an annuity:
PV = PMT * [1 - (1 + r)^-n] / r
Where PV is the present value, PMT is the annual payment, r is the interest rate, and n is the number of years.
Plugging in the given values and rearranging the formula to solve for PMT:
69,713.73 = PMT * [1 - (1 + 0.07)^-17] / 0.07
69,713.73 = PMT * 9.5385
PMT = 69,713.73 / 9.5385
PMT = $7,305.19
Learn more about annuity here: https://brainly.com/question/14702616
#SPJ11
You want to buy a new car that costs $30,000, and you put 20% down payment on the purchase and finance the remainder. How much would your monthly payments be if you borrow the money for 5 years from a credit union at 6% annually?
Remember: You have to make the term of the loan and the interest rate monthly values to align with the monthly payment you want to compute)
Answer:
$459.60
Explanation:
To calculate the monthly payments on a car loan, we need to know the loan amount, the term of the loan, and the interest rate.
Here, the car costs $30,000 and you put a 20% down payment, which means you will finance the remaining $24,000.
The term of the loan is 5 years, which means there are 60 months in the loan period.
The interest rate is 6% annually. To align this rate with monthly payments, we need to divide it by 12, which gives us a monthly interest rate of 0.005.
Using the above information, we can calculate the monthly payment using the formula for the monthly payment of a loan:
Monthly Payment = [P * (r * (1+r)^n)] / [(1+r)^n - 1]
Where P is the loan amount, r is the monthly interest rate, and n is the total number of payments.
Plugging in the values, we get:
Monthly Payment = [24000 * (0.005 * (1+0.005)^60)] / [(1+0.005)^60 - 1]
Solving this equation, we get a monthly payment of approximately $459.60.
Therefore, if you borrow $24,000 for 5 years from a credit union at an annual interest rate of 6%, your monthly payments would be $459.60.
The value of business personal property at Kim's business fluctuates periodically, which is due largely to fluctuations in the value of inventory on hand. Kim's property insurance policy requires the periodic reporting of business personal property. The limit of insurance is $500,000. Kim believes she can save money by underreporting the value of inventory. Last period, she reported only $200,000 when the actual value was $400,000. Shortly after filing the last report the value of the inventory increased to $500.000 The inventory was totally destroyed when a fire occurred. Ignoring any deductible, what is the amount that Kim's insurer will pay?
The amount that Kim's insurer will pay is $200,000. This is because Kim underreported the value of her inventory at the time of the last report. Even though the value of the inventory increased to $500,000 before the fire occurred,
the insurer will only pay the amount that was reported at the time of the last report, which is $200,000. It is important to note that underreporting the value of inventory in an attempt to save money on insurance premiums is not a good idea, as it can result in a lower payout in the event of a loss.
It is always best to accurately report the value of business personal property to ensure that you are adequately covered in the event of a loss.
To know more about Kim's insurer pay refer here:
https://brainly.com/question/30321149#
#SPJ11
A firm has current liabilities of $30.6 million. Cash is $13.52 million and accounts receivable is $7.46 million. The firm's current ratio = 0.89 times. What is the value of inventory listed on the firm's balance sheet?
The value of inventory listed on the firm's balance sheet is $6.254 million.
The value of inventory listed on the firm's balance sheet can be calculated using the formula for the current ratio. The current ratio is the ratio of current assets to current liabilities, and is calculated as follows: Current ratio = Current assets / Current liabilities. In this case, the firm's current ratio is 0.89 times, and its current liabilities are $30.6 million. We can rearrange the formula to solve for current assets: Current assets = Current ratio × Current liabilities Current assets = 0.89 × $30.6 million = $27.234 million. The firm's current assets include cash, accounts receivable, and inventory. We are given the values of cash ($13.52 million) and accounts receivable ($7.46 million), so we can calculate the value of inventory by subtracting these values from the total current assets: Inventory = Current assets - Cash - Accounts receivable Inventory = $27.234 million - $13.52 million - $7.46 million = $6.254 million.
Learn more about value of inventory here: https://brainly.com/question/25947903
#SPJ11
Jane Moffat has just graduated with $45,000 of student loan debt. She has started to work for an entry-level accounting position at ABC Company Limited where she does not have much authority and all of her work has to be reviewed by her supervisor, and then the manager. Jane is a very honest person. Which of the following is true about Jane? a. Jane has a high amount of situational pressure, low opportunity to commit fraud, and has high personal integrity. b. Jane has a high amount of situational pressure, a high opportunity to commit fraud, and has high personal integrity. c. Jane has a low amount of situational pressure, a low opportunity to commit fraud, and low personal integrity. d. Jane has a low amount of situational pressure, a high opportunity to commit fraud and high personal integrity.
The correct answer is a. Jane has a high amount of situational pressure, low opportunity to commit fraud, and has high personal integrity.
Jane Moffat has just graduated with $45,000 of student loan debt, which means she has a high amount of situational pressure to pay off her debt. However, she has started to work for an entry-level accounting position at ABC Company Limited where she does not have much authority and all of her work has to be reviewed by her supervisor, and then the manager. This means she has a low opportunity to commit fraud because she is constantly being monitored and does not have the authority to make significant decisions.
Finally, Jane is a very honest person, which means she has high personal integrity and is less likely to commit fraud. Therefore, the correct answer is a. Jane has a high amount of situational pressure, low opportunity to commit fraud, and has high personal integrity.
Learn more about personal integrity : https://brainly.com/question/14342720
#SPJ11
Perry acquired 70% of Salt on 1/1/2009 for $420 when Salt's equity consisted of $200 capital stock and S200 retained earnings. Salt's inventory was understated by $50 and building, with a 20 year life, was understated by $100. Any excess is goodwill. T 2009 2010 Perry Salt Perry Salt Separate income $1,250 S705 $1,500 $745 Dividends $600 S280 $600 $300 During 2009, Salt sold goods costing $700 to Perry at a 20% markup. $240 of these goods were in Perry's ending inventory. In 2010, Salt sold goods costing $900 to Perry at a 25% markup and Perry still had $100 on hand at the end of the year.
Perry acquired 70% of Salt on 1/1/2009 for $420 when Salt's equity consisted of $200 capital stock and $200 retained earnings. The purchase price of $420 is higher than Salt's equity, which means that there is an excess of $20 that is recorded as goodwill.
The inventory and building were both understated by $50 and $100, respectively. These amounts need to be added to Salt's equity to accurately reflect the company's financial position. The adjusted equity of Salt is $350 ($200 + $200 + $50 + $100 - $200).
The separate income for Perry and Salt in 2009 was $1,250 and $705, respectively. The dividends paid by Perry and Salt in 2009 were $600 and $280, respectively.
In 2009, Salt sold goods costing $700 to Perry at a 20% markup. This means that the sale price was $840 ($700 x 1.20). Perry still had $240 of these goods in ending inventory at the end of the year.
In 2010, Salt sold goods costing $900 to Perry at a 25% markup. This means that the sale price was $1,125 ($900 x 1.25). Perry still had $100 of these goods on hand at the end of the year.
The consolidated financial statements for Perry and Salt would include the following adjustments:
1. Eliminate intercompany sales and cost of goods sold. In 2009, this would be $840 and $700, respectively. In 2010, this would be $1,125 and $900, respectively.
2. Eliminate intercompany dividends. In 2009, this would be $280. In 2010, this would be $300.
3. Adjust ending inventory for intercompany profits. In 2009, this would be a decrease of $48 ($240 x 0.20). In 2010, this would be a decrease of $25 ($100 x 0.25).
4. Adjust goodwill for the excess purchase price. This would be an increase of $20.
5. Adjust equity for the understated inventory and building. This would be an increase of $150 ($50 + $100).
The consolidated financial statements for Perry and Salt would reflect these adjustments to accurately present the financial position and results of operations of the combined entity.
Know more about goodwill here:
https://brainly.com/question/22428604
#SPJ11
(a) Click here to view factor tables What is the future value of 18 periodic payments of $4,200 each, made at the beginning of each period and compounded at 8%? (Round factor values to 5 decimal place
The future value of 18 periodic payments of $4,200 each, made at the beginning of each period and compounded at 8% is $198,463.70.
The future value of 18 periodic payments of $4,200 each, made at the beginning of each period and compounded at 8% can be calculated using the future value of an annuity due formula. The formula is:
FV = PMT x [((1 + i)^n - 1)/i]
Where FV is the future value, PMT is the periodic payment, i is the interest rate per period, and n is the number of periods.
Plugging in the given values:
FV = $4,200 * [(1 + 0.08)^18 - 1] / 0.08 * (1 + 0.08)
FV = $4,200 * [4.661032 - 1] / 0.08 * 1.08
FV = $4,200 * 3.661032 / 0.08 * 1.08
FV = $198,463.70
Therefore, the future value of 18 periodic payments of $4,200 each, made at the beginning of each period and compounded at 8% is $198,463.70.
To know more about Payments click here:
https://brainly.com/question/15136793#
#SPJ11
A toy manufacturer uses 49,350 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 700 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1.60 per wheel per year. Setup cost for a production run is $38. The firm operates 235 days per year. Determine the following:a. Optimal run size (Round your answer to a whole number, following normal rules of rounding.)b. Use your final answer from part a to determine minimum total annual cost for carrying and setup. (Round your answer to a whole number.)c. Cycle time for the optimal run size (Round your answer to two decimal points.)d. Run time (Round your answer to two decimal points.)
The optimal run size and Run time are 2.18 days and 513.97 days respectively. The minimum total annual cost for carrying and setup is 2449.66. Cycle time and Run time are 2.18 days and 513.97 days respectively.
What is the EOQ model of inventory?The amount of inventories is thus at its best. The EOQ is a model that is used to determine the ideal quantity that can be purchased to reduce both the cost of carrying inventory and the expense of processing purchase orders.
Given
Annual Demand = 49,350
Carrying cost = $1.60
Ordering cost (set-up cost) = $38
Operating Days = 235 days per year
Production Rate = 700 per day
Required :
a. Optimal run size (EOQ)
b. minimum total annual cost for carrying and setup
c. Cycle time for the optimal run size
d. Run time
a.Optimal run size (EOQ) = √((2 x Demand x Setup Cost) / Carrying Cost)
= √(2 x 49350 x 38 / 1.6) = √2,344,125
= 1531
b. minimum total annual cost for carrying and setup = (Demand / EOQ) * Setup Cost + (EOQ / 2) * Carrying Cost
minimum total annual cost for carrying and setup = (49,350 / 1531) * 38 + (1531 / 2) * 1.60
=25.55 * 38 + 966 * 1.60
=1224.88 + 1224.88
=2449.66
c. Cycle time = EOQ / Daily Production Rate
= 1531 / 700
= 2.18 days
d. Run time = EOQ / Daily Production Rate * Number of Operating Days
= 1531 / 700 * 235
= 513.97 days
Thus, the Optimal run size is 1531, and the minimum total annual cost for carrying and setup is 2449.66.
Learn more about the EOQ here:
https://brainly.com/question/30924821
#SPJ6
Check my work 1 Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $968. Selected data for the company's operations last year follow:Required: 1. Assume that the company uses absorption costing, Compute the unit product cost for one gamelan. 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. 1. Absorption costing unit product cost 2 Variable costing unit product cost
The unit product cost for one gamelan can be calculated using both absorption costing and variable costing methods.
1. Absorption costing unit product cost:
Absorption costing includes all manufacturing costs, including both variable and fixed costs, in the unit product cost. To calculate the unit product cost using absorption costing, we need to add up all the manufacturing costs and divide by the number of units produced.
Unit product cost = (Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead) / Number of units produced
Without the data for direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead, we cannot calculate the unit product cost using absorption costing.
2. Variable costing unit product cost:
Variable costing includes only the variable manufacturing costs in the unit product cost. To calculate the unit product cost using variable costing, we need to add up all the variable manufacturing costs and divide by the number of units produced.
Unit product cost = (Direct materials + Direct labor + Variable manufacturing overhead) / Number of units produced
Without the data for direct materials, direct labor, and variable manufacturing overhead, we cannot calculate the unit product cost using variable costing.
In conclusion, without the necessary data, we cannot calculate the unit product cost for one gamelan using either absorption costing or variable costing methods.
Learn more about unit product cost : https://brainly.com/question/28489397
#SPJ11
Mintzberg asserts that all five organizational components must be present for an organization to be effective and efficient.
If this is true, can an Entrepreneurial Structure be effective and efficient? Why or why not?
Is the entrepreneurial structure less efficient or less effective than an adhocracy? Why or why not?
Yes, an entrepreneurial structure can be effective and efficient.
According to Mintzberg, all five organizational components (strategic apex, middle line, operational core, technostructure, and support staff) must be present for an organization to be effective and efficient.
An entrepreneurial structure is one type of organizational structure that contains all five components.
An entrepreneurial structure can be less efficient or less effective than an adhocracy, depending on the situation. An adhocracy is characterized by a high degree of flexibility and creativity, which may lead to greater efficiency and effectiveness in some circumstances.
However, in other circumstances, an entrepreneurial structure may be more efficient or effective, such as when the goal is to complete a specific task quickly.
To know more about entrepreneurial structure click on below link:
https://brainly.com/question/28943571#
#SPJ11
If these 200 loans are pooled to create a MPT, what is the starting pool balance in dollars? Assume the loans are not seasoned before securitization.
Number of loans principal rate maturity
50 100.000 4 360
100 250.000 4.25 180
20 300.000 5 360
The starting pool balance for these 200 loans when pooled to create a MPT (Mortgage-Backed Security) is $48,750,000.
The calculation is as follows:
50 loans of $100,000 each at 4% rate and maturity of 360 months = $20,000,000
100 loans of $250,000 each at 4.25% rate and maturity of 180 months = $22,750,000
20 loans of $300,000 each at 5% rate and maturity of 360 months = $6,000,000
Total: $20,000,000 + $22,750,000 + $6,000,000 = $48,750,000
For more question on loans click on
https://brainly.com/question/27711227
#SPJ11
What is the effective rate if the company borrows $200,000 on a 6 percent discounted loan with a 10 percent compensating balance for one year?
a. 7.14 percent
b. 6.00 percent
c. 6.78 percent
d. 6.44 percent
The effective rate if the company borrows $200,000 on a 6 percent discounted loan with a 10 percent compensating balance for one year is 7.14 percent (option a).
The effective rate is the real interest rate that a borrower pays after taking into account all fees, levies, and other costs related to the loan. It considers the nominal or stated interest rate, the frequency of compounding, and any additional fees that might be associated with the loan.
To calculate the effective rate, we need to first calculate the amount of interest and the amount of the loan that the company will actually receive.
Interest = 200,000 x 0.06 = 12,000
Compensating balance = 200,000 x 0.10 = 20,000
Amount of loan received = 200,000 - 12,000 - 20,000 = 168,000
Effective rate = (12,000 / 168,000) x 100 = 7.14 percent
Therefore, the effective rate is 7.14 percent. The correct answer A
To learn more about effective rate here:
brainly.com/question/30602158
#SPJ11
Brimstone offers to buy Phoenix’s property under the following terms and conditions:
P5 million purchase price;
10% "option money";
balance payable in cash upon the clearance of the
property of all illegal occupants.
As agreed, Brimstone promptly paid the "option money" and Phoenix cleared the
subject property from illegal occupants.
When Brimstone is to pay the balance and ask Phoenix to execute a deed of absolute
sale, Phoenix had a change of heart, saying that the deal is disadvantageous to
him as he found out that the property is three (3) times higher than the agreed
purchase price.
Brimstone sued Phoenix for specific performance. In response, Phoenix claims that Brimstone
merely gave him an option to buy and nothing more, and offers to return the
option money which Brimstone refuses to accept.
Who is correct? Explain. Please include the applicable articles.
In this case, Brimstone is correct. The transaction between Brimstone and Phoenix constitutes a contract of sale, and not just an option to buy. The payment of the "option money" is a form of consideration which indicates that the parties have entered into a binding contract.
Article 1475 of the Civil Code of the Philippines defines a contract of sale as a contract where one of the parties obligates himself to transfer the ownership of and to deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent.
Phoenix cannot unilaterally back out of the contract simply because he finds the price to be disadvantageous. As long as the terms and conditions of the sale were agreed upon by both parties, and Brimstone has complied with its obligations under the contract, Phoenix is obligated to fulfill his end of the bargain.
Article 1590 of the Civil Code of the Philippines provides that the vendee (Brimstone) has the right to compel the vendor (Phoenix) to transfer the ownership of and deliver the thing sold. The vendor, on the other hand, is bound to deliver the thing sold and to warrant its ownership to the vendee.
Therefore, Brimstone can file a case for specific performance against Phoenix to compel him to fulfill his obligation under the contract of sale. The fact that Phoenix cleared the subject property from illegal occupants indicates his willingness to comply with the terms and conditions of the sale.
Phoenix's offer to return the option money is not a valid defense against Brimstone's claim for specific performance, as the payment of the option money is only a small part of the consideration for the sale. The fact that Brimstone refused to accept the return of the option money also indicates its intention to enforce the contract of sale.
For more questions like transaction visit the link below:
https://brainly.com/question/30075566
#SPJ11
Consider the following two investment opportunities for a venture capital firm: Opportunity Y has a success probability of 10%. If it is successful, it will be worth $10M; otherwise it is worth $0. Opportunity Z has a success probability of 50%. If it is successful, it will be worth $2M; otherwise it is worth $0. (The expected payoff to each of the two opportunities is the same‐‐$1M). The Limited Partner’s investment is $0.8 M (the General Partner does not put in any money). The contract calls for the GP to make 20% in carried interest with no fee. Assume risk neutrality and no discounting: a. Which opportunity would the GP prefer? Why?
Although the expected payoff for both opportunities is the same, the GP would prefer Opportunity Z due to its higher success probability.
This is because Opportunity Z has a higher success probability (50%) compared to Opportunity Y (10%). While Opportunity Y has a higher potential payout ($10M), the likelihood of that payout occurring is much lower.
With Opportunity Z, the GP has a 50% chance of receiving 20% of $2M ($400,000) in carried interest, while with Opportunity Y, the GP has only a 10% chance of receiving 20% of $10M ($2M) in carried interest.
Therefore, the expected payoff for the GP with Opportunity Z is $200,000 (0.5 x $400,000) and the expected payoff for the GP with Opportunity Y is $200,000 (0.1 x $2M).
The GP would prefer Opportunity Z.
To know more about expected payoff click on below link:
https://brainly.com/question/30429228#
#SPJ11