Hibou Ltd.'s Partial Income Statement for 2020, beginning with income from continuing operations:
Revenues: $450,000
Expenses: $450,000
Income from continuing operations: $0
Less: Income (loss) from discontinued operations: ($48,000)
Net income: ($48,000)
Note: The results of the discontinued Industrial Design Division (IDD) included in the above statement are as follows: Revenue: $30,000, Expenses: $150,000, After-tax legal and audit fees: $32,000, Severance payments: $66,000, and After-tax proceeds from sale of IDD assets: $61,000.
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If I created a cool new app, pricing model which I would like to use is dynamic pricing strategies and why I use the dynamic pricing strategies?One page answer required please answer according to the question
Dynamic pricing strategies are an effective way to price a new app because they allow for flexibility in response to changing market conditions. This can help maximize profits while also ensuring that the app remains competitive in the market.
One of the key benefits of dynamic pricing strategies is that they allow for price changes based on real-time demand. For example, if there is a surge in demand for the app, the price can be increased to take advantage of this demand. Conversely, if demand decreases, the price can be lowered to attract more customers.
Another benefit of dynamic pricing strategies is that they can be used to offer discounts and promotions to specific groups of customers. For example, the app could offer a discount to students or to users who are willing to make a long-term commitment.
Finally, dynamic pricing strategies can be used to experiment with different pricing levels to find the optimal price for the app. This can help ensure that the app is priced at a level that maximizes profits while also being competitive in the market.
Overall, dynamic pricing strategies are an effective way to price a new app because they allow for flexibility in response to changing market conditions, the ability to offer discounts and promotions, and the ability to experiment with different pricing levels.
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A property worth $42,500 can be purchased for 5% down and semi-annual mortgage payments of $1975 for 15 years. What nominal rate of interest compounded monthly is charged?
The nominal rate of interest compounded monthly charged is 5.902%.
To solve the problem, we need to use the formula for the present value of an annuity:
PV = PMT x (1 - (1 + r/n)^(-nt)) / (r/n),
where PV is the present value of the mortgage, PMT is the semi-annual payment, r is the nominal interest rate compounded monthly, n is the number of compounding periods per year (12 in this case), and t is the total number of years of the mortgage.
$42,500 = $1,975 x (1 - (1 + r/12)^(-15x2)) / (r/12)
We can solve for r using a numerical method or a financial calculator.
Using a numerical method, we can try different values of r until we get the right-hand side of the equation to equal $42,500. This yields a solution of r = 0.04918, or 4.918% as the periodic rate, which corresponds to a nominal rate of 12 x 4.918% = 58.92% per year. However, this is an annual rate, so we need to convert it to a nominal monthly rate using the formula:
(1 + r/n)^n - 1 = (1 + 0.04918/12)^12 - 1 = 0.05902 or 5.902% per month.
Therefore, the nominal rate of interest compounded monthly charged is 5.902%.
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8. Firm M and Firm N are related parties. For the past several years, Firm M's marginal tax rate has been 30 percent, and Firm N's marginal tax rate has been 21 percent. Firm M is evaluating a transaction that will generate $10,000 income in each of the next three years, Firm M could restructure the transaction so that the income would be earned by Firm N. Because of the restructuring, the annual income would decrease to $9.000. Should Firm M restructure the transaction?
Yes, Firm M should restructure the transaction so that the income would be earned by Firm N. This is because even though the annual income would decrease to $9,000, the overall tax savings would be greater due to Firm N's lower marginal tax rate.
Let's calculate the tax savings for both scenarios:
Scenario 1: Firm M earns $10,000 in each of the next three years at a marginal tax rate of 30%
- Total income: $10,000 x 3 = $30,000
- Total tax: $30,000 x 0.30 = $9,000
- After-tax income: $30,000 - $9,000 = $21,000
Scenario 2: Firm N earns $9,000 in each of the next three years at a marginal tax rate of 21%
- Total income: $9,000 x 3 = $27,000
- Total tax: $27,000 x 0.21 = $5,670
- After-tax income: $27,000 - $5,670 = $21,330
As we can see, the after-tax income in Scenario 2 is higher than in Scenario 1, even though the annual income is lower. Therefore, it would be beneficial for Firm M to restructure the transaction so that the income would be earned by Firm N.
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(a) Accounting is being used by many individuals around the country for decision-making. Explain in detail, using relevant examples, any FIVE (5) users of accounting information. (b) What are the 5 users of accounting information?
(a) Accounting information is used by a variety of individuals for decision-making purposes. The five main users of accounting information are: Investors, Creditors, Managers, Regulators, and Employees.
1. Investors: Investors use accounting information to make informed decisions about where to invest their money. For example, an investor may use financial statements to compare the profitability and financial health of different companies before deciding which one to invest in.
2. Creditors: Creditors use accounting information to determine the creditworthiness of a company. For example, a bank may use a company's financial statements to determine whether or not to approve a loan.
3. Managers: Managers use accounting information to make decisions about the operation of a company. For example, a manager may use financial statements to determine which products are most profitable and which ones should be discontinued.
4. Regulators: Regulators use accounting information to ensure that companies are following the law and adhering to accounting standards. For example, the Securities and Exchange Commission (SEC) uses accounting information to ensure that companies are accurately reporting their financial information to investors.
5. Employees: Employees use accounting information to make decisions about their employment. For example, an employee may use financial statements to determine the financial health of their company and whether or not they should stay with the company or look for a new job.
(b) The five main users of accounting information are investors, creditors, managers, regulators, and employees.
Each of these users relies on accounting information to make informed decisions about a company.
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The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.a): True b): FalseThere are _______ measurement techniques to monitor satisfaction. a): 2 b): 3 c): 4 d): None of the aboveHofstede identifies five cultural dimensions that differentiate countries. a): Yes b): NoA common way to estimate total market potential is to multiply the potential number of buyers by the average quantity each purchase and then by the price.a): True b): FalseThere are _________marketing activities that improve loyalty and retention. a): 3 b): 4 c): 6 d): 8
a) True - The value delivery system does indeed include all the experiences the customer will have on the way to obtaining and using the offering.b) 4 - There are four main measurement techniques. c) Yes - Hofstede does identify five cultural dimensions that differentiate countries.d) True - A common way to estimate total market potential is indeed to multiply the potential number of buyers.There are four main marketing activities that improve loyalty and retention
delivery system includes the entire process from researching the product or service, making the purchase, and using it.b) 4 - There are four main measurement techniques to monitor satisfaction: customer surveys, focus groups, customer feedback, and observation.
c) Yes - Hofstede does identify five cultural dimensions that differentiate countries. These dimensions are power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, and long-term vs. short-term orientation.
d) True - A common way to estimate total market potential is indeed to multiply the potential number of buyers by the average quantity each purchase and then by the price. This is known as the market demand equation.
e) 4 - There are four main marketing activities that improve loyalty and retention: customer relationship management (CRM), loyalty programs, personalized marketing, and customer service.
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How do perception, learning and attitudes affect consumer decision making and how marketer influence these processes
Perception means how a person is thinking, learning refers to acquiring new knowledge and attitudes means feeling towers the product or service. Consumer decision-making is significantly influenced by perception, learning, and attitudes.
Perception, learning, and attitudes are all important factors that affect consumer decision making. Perception influences how a consumer interprets and evaluates stimuli in the marketplace. Learning affects how a consumer learns from past experiences and develops buying habits. Attitudes influence a consumer's predisposition towards a product or service. Marketers can influence these processes by designing their campaigns to appeal to the target audience's senses, past experiences, and biases.
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it a company cannot perform an activity more efficiently than its competitors, they should consider
If a company cannot perform an activity more efficiently than its competitors, they should consider outsourcing that activity to another company that can perform it more efficiently.
Outsourcing is a commercial activity in which services or job activities are contracted or outsourced to a third party on an ongoing basis.
Outsourcing can assist you in leveraging knowledge and talents as well as your entire supply chain.
This will allow the company to focus on their core competencies and activities that they can perform more efficiently than their competitors, while still being able to offer the outsourced activity as part of their overall product or service. Outsourcing can also help reduce costs and increase flexibility for the company.
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Modeling Ethical behavior start with leadership. We can agree to this statement, because ethical behavior includes the characteristics and behavior that are strictly to be followed by the employees working under an organization. The ethical behavior
Yes, I agree that modeling ethical behavior starts with leadership.
Leaders set the tone for the entire organization and their actions and decisions have a significant impact on the ethical culture of the company.
When leaders consistently model ethical behavior, it sends a clear message to employees about what is expected of them and sets the standard for how they should conduct themselves in the workplace.
Additionally, when leaders hold themselves and others accountable for ethical behavior, it reinforces the importance of ethical conduct and helps to create a culture of integrity within the organization.
Therefore, it is crucial for leaders to model ethical behavior in order to create a positive and ethical work environment for all employees.
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what is the over all financial condition of American Airlines Inc. and the overall proformance of the firm. pointing out the strength and Weaknesses of the farm. How is the market ratio? How was the liquidity position of the firm and it's profitability and operating efficiency. Describe the leverage position of the firm relative to its equity. create a simple chart comparing 2020, 2021, and 2022. Compare this to how the industry is doing overall. use either of the fallowing resources: Thomson One S&P NetAdvantage: Library Yahoo. Finance Mergent Online Business Insight: Global Standard & Poor's Analysts Handbook: Library Find: Profit margin basic earning Return on equity Return on assets Inventory turnover Return on asset turnover Total asset turnover Current ratio Debt ratio ect. Profit margin -6.67% Return on equity N/A Return on assets -5.04% Inventory turnover 17.52 Return on asset turnover -3.10 Total asset turnover 0.47 Current ratio 0.91 Debt ratio 0.63 Revenue (ttm) 29.88B
American Airlines Inc. is a major airline in the United States and has been in operation since 1934. Despite the Covid-19 pandemic, the airline has seen some improvements in its overall financial condition. The profit margin for 2020 was -6.67%, indicating a decrease in profitability.
The return on equity was not available, however, the return on assets was -5.04%. Additionally, inventory turnover was 17.52, total asset turnover was 0.47 and the current ratio was 0.91. The debt ratio was at 0.63, indicating a relatively healthy leverage position relative to equity.
Looking at the overall performance of the firm, its total revenue in the trailing twelve months (TTM) was 29.88 billion. This is lower than the industry average, however, the airline has seen some improvements in its liquidity and operating efficiency.
With a focus on cost reduction and increasing revenue, the airline is looking to improve their financial performance in the future. A comparison of 2020, 2021, and 2022 shows that the airline is slowly improving its overall financial condition.
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Clinton Corp. had the following pretax income (loss) over its first three years of operations:
2019: 1,200,000
2020: (900,000)
2021: 1,500,000
As of the beginning of 2021, there were no deferred income taxes and the tax rate was 25%. No valuation account was deemed necessary for the deferred tax asset as of December 31,2020. Make the journal entry in 2021 to record income tax expense, Assume a deferred tax asset was recognized in 2020 related to the tax loss carryforward and a tax loss carryback was not allowed.
Please show the calculation
To record income tax expense in 2021, we need to calculate the current tax expense and the deferred tax expense.
The current tax expense is calculated by multiplying the pretax income for the year by the tax rate. The deferred tax expense is calculated by multiplying the difference between the deferred tax asset at the beginning of the year and the deferred tax asset at the end of the year by the tax rate.
Current tax expense = 1,500,000 x 25% = 375,000
Deferred tax asset at the beginning of 2021 = 900,000 x 25% = 225,000
Deferred tax asset at the end of 2021 = 0 (since there are no more tax loss carryforwards)
Deferred tax expense = (225,000 - 0) x 25% = 56,250
Total income tax expense = Current tax expense + Deferred tax expense = 375,000 + 56,250 = 431,250
The journal entry to record income tax expense in 2021 is:
Debit Income Tax Expense 431,250
Credit Income Taxes Payable 375,000
Credit Deferred Tax Asset 56,250
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Please help with 2.2, 2.3 and 2.4
Where the above information is given, the total money spent by Donald on Monday is R141,30, The total cash received from sales is R135,00, The profit he made from selling fruit is -R6,30, which is a loss; and The value of his closing stock is R56,00.
What is the rationale for the above response?1) To calculate the total money spent by Donald on Monday, we need to add up the cost of the apples, oranges, and bananas:
Cost of 3 packets of apples = 3 x R17,10 = R51,30
Cost of 3 packets of oranges = 3 x R18,00 = R54,00
Cost of 3 bunches of bananas = 3 x R12 = R36,00
Total money spent = R51,30 + R54,00 + R36,00 = R141,30
2) To calculate the total cash received from sales, we need to add up the revenue generated from selling the apples, oranges, and bananas:
Revenue from selling apples = (3 x 12 - 8) x R2,50 = R66,00
Revenue from selling oranges = (3 x 10 - 12) x R3,00 = R24,00
Revenue from selling bananas = R45,00
Total cash received = R66,00 + R24,00 + R45,00 = R135,00
3) To calculate the profit (Loss) Donald made from selling fruit, we need to subtract the total money spent from the total cash received:
Profit = Total cash received - Total money spent
Profit = R135,00 - R141,30
Profit = -R6,30
Since the profit is negative, Donald did not make a profit from selling fruit.
4) To calculate the value of Donald's closing stock, we need to multiply the number of unsold apples and oranges by their respective selling prices:
Value of unsold apples = 8 x R2,50 = R20,00
Value of unsold oranges = 12 x R3,00 = R36,00
Total value of closing stock = R20,00 + R36,00 + R0,00 = R56,00
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Munich Exports Corporation 2019 2020 Cash $50,000 $50,000 Accounts 200,000 300,000
receivable Inventories 450,000 570,000 Total current 700,000 920,000 assets Fixed assets, 300,000 380,000 net Total assets $1,000,000 $1,300,000 Accounts 130,000 $180,000 payable Accruals 50,000 70,000 Bank loan 90,000 90,000 Total current 270,000 340,000 liabilities Long-term 400,000 550,000 debt Common stock ($.05 50,000 50,000 par) Additional 200,000 200,000 paid-in-capital Retained 80,000 160,000 earnings Total liabilities $1,000,000 $1,300,000 equity 2019 2020 Net sales $1,300,000 $1,600,000 Cost of goods 780,000 960,000 sold Gross profit 520,000 640,000 Marketing 130,000 160,000 General and 150,000 150,000 administrative Depreciation 40,000 55,000 EBIT 200,000 275,000 Interest 45,000 55,000
Earnings 155,000 220,000 before taxes Income taxes 62,000 88,000 (40% rate) Net income $93,000 $132,000 Assume that the cash account includes only required cash. Determine the dollar amount of equity valuation cash flow (pseudo dividend) for 2020. Use question#1 inputs here. Cash flows are expected to grow at a perpetual 6 percent annual rate beginning in 2021. Assume that all cash is required cash as was done in Part A. What is the Global Products venture's present value if investors want an annual rate of return of 25 percent? No commas and round by two decimal places.
The equity valuation cash flow (pseudo dividend) for 2020 is calculated as follows:
Pseudo dividend = Net income - (Change in equity - Change in retained earnings)
Pseudo dividend = $132,000 - (($1,300,000 - $1,000,000) - ($160,000 - $80,000))
Pseudo dividend = $132,000 - ($300,000 - $80,000)
Pseudo dividend = $132,000 - $220,000
Pseudo dividend = -$88,000
Therefore, the dollar amount of equity valuation cash flow (pseudo dividend) for 2020 is -$88,000.
To calculate the present value of the Global Products venture, we can use the perpetuity formula:
PV = CF / (r - g)
Where PV is the present value, CF is the cash flow, r is the required rate of return, and g is the growth rate.
PV = $88,000 / (0.25 - 0.06)
PV = $88,000 / 0.19
PV = $463,157.89
Therefore, the present value of the Global Products venture is $463,157.89.
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In what ways does a credible Accounting System provide support
to an organization?
A credible Accounting System provides support to an organization in many ways.
It helps to ensure accuracy and completeness in the organization's financial records, making sure all transactions are properly documented and accounted for.
It also provides insight into the organization's financial position and performance, which can be used to make more informed decisions and to identify opportunities for improvement.
Finally, a credible Accounting System can help with budgeting and forecasting, enabling the organization to plan for the future and to make the most effective use of its resources.
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Company XYZ uses two forecasting methods with α=. 1 for Method A and α=. 5 for Method B to forecast its monthly sales of one of its products. The data pertain to the actual sales levels over a period of eight months. What is the value of the tracking signal as of the end of the eighth month? Which method provides better forecast accuracy?
He guesses that the forecast of the product unloaded in the first month was 175. QUARTER
ACT. DEMAND
QUARTER
ACT. DEMAND
1
180
5
190
2
168
6
205
3
159
7
180
4
175
8
182
Method B improves prediction accuracy for the product's monthly sales based on the tracking signal and the provided data.
What is the purpose of a tracking signal?The purpose of a tracking signal is to measure the forecast accuracy of a forecasting model or method over time. It is a way to monitor whether the forecast is consistently overestimating or underestimating the actual demand, and to what extent.
To calculate the tracking signal, we first need to calculate the forecasted sales for each method for each month. We can start by using the given initial forecast of 175 for both methods for the first month, and then use the formulas:
Method A: Ft = α(At-1) + (1-α)Ft-1
Method B: Ft = αAt-1 + (1-α)Ft-1
where:
Ft is the forecast for month t
At-1 is the actual sales for the previous month
Ft-1 is the forecast for the previous month
α is the smoothing constant
Using α=.1 for Method A and α=.5 for Method B, we get:
QUARTER ACTUAL DEMAND METHOD A FORECAST METHOD B FORECAST
1 180 175 175
2 168 175.5 175
3 159 170.95 172.75
4 175 167.155 167.375
5 190 176.2395 172.1875
6 205 187.91555 181.59375
7 180 193.223995 193.296875
8 182 187.9015965 188.6484375
To calculate the tracking signal, we can use the formula:
Tracking Signal = Σ(At - Ft)/MAD
where:
At is the actual sales for month t
Ft is the forecast for month t
MAD is the Mean Absolute Deviation, which is the average of the absolute deviations between the actual sales and the forecast over the previous 8 months
Using the actual sales and the forecasts from the table above, we can calculate the MAD as follows:
MAD = (|180-175| + |168-175.5| + |159-170.95| + |175-167.155| + |190-176.2395| + |205-187.91555| + |180-193.223995| + |182-187.9015965|)/8
= 11.6358
Using this value, we can calculate the tracking signal for each method:
Method A:
Tracking Signal = (180-187.9015965)/11.6358
= -0.6791
Method B:
Tracking Signal = (180-188.6484375)/11.6358
= -0.6622
Since both tracking signals are negative, this means that both methods tend to overestimate sales. However, Method B has a slightly smaller tracking signal, which means that it is somewhat more accurate than Method A.
Therefore, based on the tracking signal and the given data, Method B provides better forecast accuracy for the product's monthly sales.
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Laura Hall is interested in buying the stock of Wildhorse, Inc., which is increasing its dividends at a constant rate of 6.8 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 15.70 percent.
Excel Template
(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you’ve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.)
(a1)
What is the current value of this stock? (Round answer to 2 decimal places, e.g. 15.20.)
Current value $enter the current value of the stock rounded to 2 decimal places
(a2)
what is the current value at the end of year 5.
The current value of the stock is $31.80 (a). The current value of the stock at the end of year 5 is $42.58 (b).
The current value of the stock can be calculated using the dividend discount model (DDM), which is a method of valuing a company's stock based on the theory that its stock is worth the sum of all of its future dividend payments, discounted back to their present value. The formula for the DDM is:
Where:
P0 = the current value of the stockD1 = the expected dividend payment one year from nowr = the required rate of returng = the constant growth rate of the dividendsGiven the information provided in the question, we can plug in the values and calculate the current value of the stock:
P0 = ($2.65 * 1.068) / (0.1570 - 0.068)P0 = $2.83 / 0.089P0 = $31.80
Therefore, the current value of the stock is $31.80.
To calculate the current value at the end of year 5, we can use the same formula but adjust the expected dividend payment to account for the growth over 5 years:
Therefore, the current value of the stock at the end of year 5 is $42.58.
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CASE: THE TROPHY PROJECT 1.1 Critique the case from an Industry 4.0 characteristics perspective. (Note that "critique" means to "analyse the situation critically include SWOT analysis .*The ill-fated Trophy Project1.1 Critique the case from an Industry 4.0 characteristics perspective. (Note that "critique" means to "analyse the situation critically"). 1.2 Based on your critique, what should be done to remedy the situation? TIP: Critique means delivering a critical discussion regarding the situation described in the case. It is advisable to do a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis to better understand the situation under scrutiny. This must be followed by categorising the problems uncovered into Behavioural, Structural, and Operational dimensions. Keep in mind that the world has entered the "collaboratist" Fourth Industrial Revolution (Industry 4.0 economy) that demands organisations to undergo transformation and change in many respects.
The Trophy Project case highlights several issues that are related to Industry 4.0 characteristics. From a SWOT analysis perspective, the Strengths,Weaknesses, Opportunities,Threats can be identified:
Strengths:
- The project had a clear goal and objective to be achieved.
Weaknesses:
- Lack of communication and collaboration among the project team members.
- Lack of leadership and project management skills.
- Lack of accountability and responsibility among the team members.
- Lack of understanding of Industry 4.0 characteristics and the need for transformation and change.
Opportunities:
- The project had the potential to be successful if the above weaknesses were addressed.
- The project could have benefited from the adoption of Industry 4.0 characteristics such as collaboration, communication, and accountability.
Threats:
- The project was at risk of failure due to the above weaknesses.
- The project was at risk of not meeting the expectations of the stakeholders.
Based on the above critique, the following should be done to remedy the situation:
- Improve communication and collaboration among the project team members.
- Provide training on leadership and project management skills.
- Ensure accountability and responsibility among the team members.
- Educate the team members on Industry 4.0 characteristics and the need for transformation and change.
- Implement Industry 4.0 characteristics such as collaboration, communication, and accountability in the project.
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Today, a company paid a dividend in the amount of $2.15 per share. For the next 2 years, the company is expected to increase its dividend by 15% each year. The company is then expected to have a dividend growth rate that remains constant at 3% forever. Assume investors require a 11.45% return on this stock. What is the stock's expected price per share 2 years now?
The stock's expected price per share 2 years from now is $20.53
Today, a company paid a dividend of $2.15 per share and is expected to increase its dividend by 15% each year for the next 2 years. After that, the company is expected to have a constant dividend growth rate of 3%.
If investors require a return of 11.45%, the stock's expected price per share 2 years from now can be calculated using the dividend discount model. The formula is:
P = D1/(R-G),
where P is the expected price per share, D1 is the dividend for the first year, R is the required rate of return, and G is the growth rate of the dividend.
In this case, D1 = 2.15, R = 11.45%, and G = 3%.
Therefore, P = 2.15/(11.45%-3%) = $20.53.
Therefore, the stock's expected price per share 2 years from now is $20.53.
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LNZ Corp. is thinking about leasing equipment to make tinted lenses. This equipment would cost $3,600,000 if purchased. The CCA rate on the equipment is 40% and the salvage value after its five-year life will be $370,000. There are no capital gains to worry about. The firm's corporate tax rate is 40% and its pre-tax cost of debt is 12%. WeLease Corp. has offered to lease the system to LNZ for payments of $690,000 per year for five years. These lease payments would be made at the START of the year. Assume that the tax deductibility benefit of the lease payments occurs at the same time the lease payments are made. 8. What is the present value of the after-tax lease payments? A) $1,671,463 B) $2,814,050 C) $1,688,430 D) $1,934,512 E) $1,809,997
The present value of the after-tax lease payments for LNZ Corp. is A) $1,671,463.
This is because the present value of the after-tax lease payments is calculated using the formula:
[tex]PV = (Lease payment) * (1 - tax rate) * \frac{(1 - (1 + discount rate)^{-n})}{discount rate}[/tex]
Where PV is the present value, n is the number of years, and the discount rate is the pre-tax cost of debt.
Plugging in the given values:
PV = ($690,000) * (1 - 0.40) * [(1 - (1 + 0.12)^(-5)) / 0.12]
PV = ($690,000) * (0.60) * [(1 - (1.12)^(-5)) / 0.12]
PV = ($414,000) * [(1 - 0.56743) / 0.12]
PV = ($414,000) * (0.43257 / 0.12)
PV = ($414,000) * (3.60475)
PV = $1,493,566
Therefore, the present value of the after-tax lease payments is $1,493,566.
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Help!!!
Assume that you have been newly hired to a great company and you would like to keep your job. What are some of the strategies that you can demonstrate in order to keep your job in a competitive market? In a paragraph or two, describe at least three of these strategies and give reasons why you believe they are important.
Answer:
Work ethics is defined as the set of moral values, benefits, and virtue by which an individual can strengthen their character and abilities. It is based on the determination, importance of work, and desire to work hard.
The three ways in which a newly hired employee can do great at the company are:
1. Integrity and Honesty are the two values that are most important in a workplace. The individual should be honest about the work and work with full determination.
2. Discipline and Responsible for the kind of work the individual is doing. The person should have the desire to work hard, responsibly, and have the discipline to achieve promotion in a company.
3. Productivity and communication are also the key elements of work ethics. The person should increase and bring out productivity every day and have excellent communication skills.
Therefore, responsibility, honesty, hard work, and discipline are some of the elements to achieve great at a company.
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Explanation:
Gourmet Cookware makes all sales on credit with 60% of the payment being received in the month of sale, 30% in the month following sale and the remaining 10% in the subsequent month. Budgeted sales are as follows: January RM100,000 February RM140,000, March RM120,000. The budgeted balance of debtors at 31 March is: RM120,000. RM62,000. RM74,000. RM48,000
The budgeted balance of debtors at 31 March is RM74,000.
To find the budgeted balance of debtors at 31 March, we need to calculate the amount of sales that are still unpaid at the end of March.
For January sales, 10% of RM100,000 is still unpaid at the end of March, which is RM10,000.
For February sales, 30% of RM140,000 is still unpaid at the end of March, which is RM42,000.
For March sales, 60% of RM120,000 is still unpaid at the end of March, which is RM72,000.
So, the total budgeted balance of debtors at 31 March is RM10,000 + RM42,000 + RM72,000 = RM124,000.
However, we need to subtract the amount of payments received in March from the total budgeted balance of debtors to get the actual budgeted balance of debtors at 31 March.
The amount of payments received in March is 60% of March sales, which is RM72,000.
So, the budgeted balance of debtors at 31 March is RM124,000 - RM72,000 = RM74,000.
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APITAL ASSET PRICING MODEL The Kelvin Company paid an annual dividend of $1.50, and is expected to grow at 7% in the future. Short term Treasury bills are yielding 6% and an average stock yields a cumulative return of 10%. The stock price of the company is relatively volatile and moves at twice the rate of the overall market (beta = 2.0). What is the estimated selling price of Kelvin stock? 1, Assuming the risk-free return is 5 percent and the market return is 8 percent and the beta of the asset is 1.5, what is the expected rate of return of the asset that can be calculated using the CAPM model. 2.
The expected rate of return of the asset that can be asset is 9.5%.
The Capital Asset Pricing Model (CAPM) is used to estimate the expected return of an asset based on its beta, the risk-free return, and the market return. The formula for CAPM is:
Expected Return = Risk-free Return + Beta * (Market Return - Risk-free Return)
For the Kelvin Company, we can plug in the given values into the CAPM formula:
Expected Return = 6% + 2.0 * (10% - 6%)
Expected Return = 6% + 2.0 * 4%
Expected Return = 6% + 8%
Expected Return = 14%
To find the estimated selling price of Kelvin stock, we can use the Gordon Growth Model, which is:
Price = Dividend / (Required Rate of Return - Growth Rate)
Plugging in the values for Kelvin Company, we get:
Price = $1.50 / (14% - 7%)
Price = $1.50 / 7%
Price = $21.43
Therefore, the estimated selling price of Kelvin stock is $21.43.
For the second part of the question, we can use the CAPM formula to find the expected rate of return of the asset:
Expected Return = 5% + 1.5 * (8% - 5%)
Expected Return = 5% + 1.5 * 3%
Expected Return = 5% + 4.5%
Expected Return = 9.5%
Therefore, the expected rate of return of the asset is 9.5%.
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Vinny borrowed $20,000 for 10 years at 5.3 percent compounded
monthly. How much of payment 93 will go towards paying
interest?
Group of answer choices
$25.80
$24.13
$23.28
$24.97
$24.13 of payment 93 will go towards paying interest when the borrowed amount is $20,000 for 10 years at 5.3% compounded monthly.
To find out how much of payment 93 will go towards paying interest, we need to use the formula for monthly payments:
[tex]P = \frac{r(A)}{1-(1+r)^{-n}}[/tex]
Where P is the monthly payment, r is the monthly interest rate, A is the loan amount, and n is the number of payments.
First, we need to find the monthly interest rate:
r = 5.3% / 12 = 0.0053 / 12 = 0.00044167
Next, we need to find the number of payments:
n = 10 years * 12 months/year = 120 payments
Now we can plug in the values into the formula:
P = 0.00044167($20,000)/1-(1+0.00044167)^-120
P = $215.09
To find out how much of payment 93 will go towards paying interest, we need to use the formula for the interest portion of a payment:
I = P - (A - (P*n - 1)/r)
Where I is the interest portion of the payment, P is the monthly payment, A is the loan amount, n is the number of payments, and r is the monthly interest rate.
Plugging in the values:
I = $215.09 - ($20,000 - ($215.09*93 - 1)/0.00044167)
I = $215.09 - ($20,000 - ($20,013.37)/0.00044167)
I = $215.09 - $15.96
I = $199.13
So, the interest portion of payment 93 is $199.13 - $175 = $24.13.
The correct answer is $24.13.
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What are key activities in the Business Model Canvas?
Key activities are the most important actions a company must take in order to successfully execute its business model. In the Business Model Canvas, key activities are one of the nine building blocks that make up a business model.
These activities are crucial to the functioning of the business and are necessary for creating value for customers, maintaining customer relationships, and generating revenue.
Key activities can include things like production, problem solving, and platform or network maintenance. It is important for a company to identify its key activities in order to ensure that it is focusing its resources and efforts on the most important aspects of its business.
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Northouse (2022) stated, "Servant leaders place the good of followers over their own self-interests, emphasize follower development, and demonstrate strong moral behavior" (p. 254). Based upon the information explored about servant leadership, address the following questions:Explain three characteristics of servant leadership and why the identified characteristics are important.Explain how a leader can both serve and influence. Analyze the impact of culture on servant leadership.Explain how different cultural characteristics, as referenced by Hofstede, may influence the adoption/success of a servant leadership approach.
Three characteristics of servant leadership are putting followers' needs first, focusing on follower development, and exhibiting strong moral behavior. These characteristics are important because they create a sense of trust and respect between the leader and their followers, leading to higher levels of motivation and commitment from the followers.
A leader can both serve and influence by adopting a servant leadership approach, which involves using their influence to benefit their followers and the organization as a whole.
Servant leaders use their influence to support and empower their followers, rather than using it for personal gain. This approach allows leaders to serve their followers while still maintaining their authority and ability to influence decisions and actions within the organization.
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Suppose that an investor believes that a large stock price movement may soon occur, but does not confidently know the direction. Discuss the possible profitable alternatives in option spreads and combinations
One profitable alternative in option spreads and combinations for an investor who believes that a large stock price movement may soon occur but does not confidently know the direction is to use a straddle.
Another profitable alternative is to use a strangle, which is similar to a straddle but involves buying a call option and a put option with different strike prices.
This strategy can also allow the investor to profit from a large price movement in either direction, but it typically requires a larger price movement to be profitable than a straddle.
A third profitable alternative is to use a butterfly spread, which involves buying a call option and a put option with different strike prices and selling two options with a strike price in between.
This strategy can allow the investor to profit from a moderate price investment in either direction.
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Which common ___ devices include rope grabs shock absorbing lanyards and self retracting lifelines or lanyards?
The common safety devices that include rope grabs, shock absorbing lanyards, and self retracting lifelines or lanyards are called fall arrest systems. These devices are used to prevent workers from falling from elevated work surfaces and are typically used in construction and industrial settings.
Fall arrest systems are an important part of workplace safety and are designed to protect workers from serious injury or death. Rope grabs are used to secure a worker to a vertical lifeline, while shock absorbing lanyards and self retracting lifelines or lanyards are used to connect a worker to an anchorage point. These devices work together to provide a safe and secure work environment for workers who are required to work at heights.
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Banyan Co.’s common stock currently sells for $36.50 per share. The growth rate is a constant 9.6%, and the company has an expected dividend yield of 3%. The expected long-run dividend payout ratio is 20%, and the expected return on equity (ROE) is 12%. New stock can be sold to the public at the current price, but a flotation cost of 10% would be incurred. What would be the cost of new equity? Round your answer to two decimal places. Do not round your intermediate calculations.
the cost of new equity for Banyan Co. is 14.00% or 0.14.The cost of new equity is the cost of issuing new shares of common stock.
It is calculated using the formula: Cost of new equity = (Expected dividend yield + Growth rate) / (1 - Flotation cost)
Given that Banyan Co.'s common stock currently sells for $36.50 per share, the growth rate is a constant 9.6%, the expected dividend yield is 3%, and the flotation cost is 10%, we can plug these values into the formula to find the cost of new equity:
Cost of new equity = (0.03 + 0.096) / (1 - 0.10) = 0.126 / 0.90 = 0.14
Therefore, the cost of new equity is 14%.
To round this answer to two decimal places, we can multiply the cost of new equity by 100 to get 14.00% or 0.14.
So, the cost of new equity for Banyan Co. is 14.00% or 0.14.
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Sally would like to salary sacrifice some of her salary into superannuation. Her employer contributions are $15,000 each year. What is the maximum amount of her salary that she can salary sacrifice into superannuation each year at the concessional rate of 15% contributions tax in most circumstances (assuming no carry-forward)
The maximum amount that Sally can salary sacrifice into superannuation each year at the concessional rate of 15% contributions tax is $25,000.
This is because the concessional contributions cap is $25,000 for the 2020-21 financial year, which includes employer contributions, salary sacrifice contributions, and personal contributions for which a tax deduction is claimed.
Since Sally's employer contributions are $15,000 each year, she can salary sacrifice an additional $10,000 ($25,000 - $15,000) into superannuation at the concessional rate of 15% contributions tax.
It is important to note that the concessional contributions cap may change in future years and that there may be additional rules and restrictions that apply to salary sacrificing into superannuation.
It is always a good idea to consult with a financial advisor or tax professional to ensure that you are making the most of your superannuation contributions.
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1. Assume the following information about a Treasury zero-coupon yield curve today: Maturity (years) Zero rates (%) Maturity (years) Zero rates (%) 1 2.30 6 3.50 2 2.70 7 3.80 3 2.90 8 4.00 4 3.10 9 4.20 5 3.20 10 4.30 All rates above are with continuous compounding. a. Calculate the corresponding rates under semi-annual compounding. b. Calculate the price of a 4-year Treasury bond with face value $1,000 that pays coupon annually at the coupon rate of 4%. c. If the government wants to issue a 5-year bond that pays coupon annually and priced at par (face value $1,000), what should be the amount of each coupon payment?
a. The corresponding rates under semi-annual compounding $978.48
b. $35.64 should be the amount of each coupon payment.
The zero rates for the Treasury yield curve are given with continuous compounding. To calculate the corresponding rates under semi-annual compounding, we can use the formula:
[tex]r_sa = 2 * [(e^{(r_cc/2)) - 1}][/tex]
where r_sa is the semi-annual rate, r_cc is the continuous compounding rate, and e is the base of the natural logarithm
Using this formula, we can calculate the corresponding rates under semi-annual compounding for each maturity:
Maturity (years) Zero rates (%) Semi-annual rates (%)
1- 2.30 2.28
2- 2.70 2.67
3- 2.90 2.87
4- 3.10 3.07
5- 3.20 3.17
6- 3.50 3.46
7- 3.80 3.76
8- 4.00 3.95
9- 4.20 4.14
10- 4.30 4.23
To calculate the price of a 4-year Treasury bond with face value $1,000 that pays coupon annually at the coupon rate of 4%, we can use the formula:
P = C/(1+r_1) + C/(1+r_2)^2 + C/(1+r_3)^3 + C/(1+r_4)^4 + F/(1+r_4)^4
where P is the price of the bond, C is the coupon payment, r_i is the zero rate for the ith year, and F is the face value.
Plugging in the given values, we get:
[tex]P = 40/(1+0.031) + 40/(1+0.031)^2 + 40/(1+0.031)^3 + 40/(1+0.031)^4 + 1000/(1+0.031)^4[/tex]
P = $978.48
Finally, to calculate the amount of each coupon payment for a 5-year bond that pays coupon annually and priced at par (face value $1,000), we can use the formula:
[tex]P = C/(1+r_1) + C/(1+r_2)^2 + C/(1+r_3)^3 + C/(1+r_4)^4 + C/(1+r_5)^5 + F/(1+r_5)^5[/tex]
Since the bond is priced at par, P = F = $1,000. Plugging in the given values and solving for C, we get:
[tex]1000 = C/(1+0.032) + C/(1+0.032)^2 + C/(1+0.032)^3 + C/(1+0.032)^4 + C/(1+0.032)^5 + 1000/(1+0.032)^5[/tex]
C = $35.64
Therefore, the amount of each coupon payment should be $35.64.
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Vincent is a truck driver making approximately $4000 monthly. His offer of employment states that he would receive a 0.2% monthly increase in his income. He is heavily invested in a tax-free ETF that has a return of .6667% monthly or 8% annually. His investment is to be compounded monthly. Vincent would like to save for a car in 5 years that would cost $100,000. He presently put $5000 in his ETF. If he expects to save 15% of his monthly income (adjust for the .2% monthly increase in income) for the next 5 years. What would be the value of his investment at the end of year 5? Would it reach his goal of $100,000? (Assume monthly compounding)
The total value of Vincent's investment at the end of year 5 would be $7349.50 + $6315.35 = $13,664.85. Unfortunately, this would not reach his goal of $100,000.
The value of Vincent's investment at the end of year 5 can be calculated using the formula for compound interest:
A = P(1+r/n)^(nt),
where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
For the ETF investment:
P = $5000
r = 0.08
n = 12 (monthly compounding)
t = 5
A = $5000(1+0.08/12)^(12*5) = $7349.50
For the monthly savings:
P = $4000 * 0.15 = $600 (initial monthly savings)
r = 0.002 (0.2% monthly increase in income)
n = 12
t = 5
A = $600(1+0.002/12)^(12*5) = $6315.35
The total value of Vincent's investment at the end of year 5 would be $7349.50 + $6315.35 = $13,664.85.
Unfortunately, this would not reach his goal of $100,000.
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