One use of cash is paying dividends to shareholders. Dividends is paid distributions of a company's profits to its shareholders and can be paid in cash, stock, or other assets. Option (C)
Paying dividends can be a way for companies to reward their shareholders for their investments and increase their attractiveness to new investors. However, paying dividends also reduces a company's cash reserves and may limit its ability to invest in future growth opportunities or pay off debt. Therefore, companies need to balance their dividend payouts with their long-term financial goals and obligations. Ultimately, paying dividends is one way for companies to deploy their cash resources and manage their relationships with shareholders.
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Full Question ;
Identify a USE of cash:
(select only one alternative)
(Group of answer choices)
Equity is issued
Accounts Receivable goes down
Dividend is paid
Accounts Payable goes up
Machinery is sold
. _____ is used to ensure that business transactions are processed efficiently and accurately and that the resulting information can be accessed by end users and managers in all business areas.
Enterprise Resource Planning (ERP) is used to ensure that business transactions are processed efficiently and accurately, and that the resulting information can be accessed by end users and managers in all business areas.
Information systems are used to manage and process business transactions effectively and accurately, enabling information to be accessed and used by end-users and managers across all business areas. Information systems provide a range of tools and technologies to support various business functions such as accounting, finance, marketing, operations, and human resources. They help organizations to streamline processes, reduce errors, increase efficiency, and improve decision-making. Examples of information systems include enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), and business intelligence (BI) systems, among others. By using information systems, businesses can gain a competitive advantage and improve their overall performance.
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assuming a wacc of 9.0 nd ebitda in year 5 of $1,774.8, what is the present value of the terminal value assuming an exit multiple of 11.5x ebitda and end period convention?
To calculate the present value of the terminal value, we need to use the formula:
Terminal Value = (EBITDA x Exit Multiple) / WACC - (1 + WACC)^-n
where:
EBITDA = $1,774.8 million (given)
Exit Multiple = 11.5x EBITDA (given)
WACC = 9.0% (given)
n = 5 years (since this is the end period convention)
Plugging in the values, we get:
Terminal Value = ($1,774.8 x 11.5) / 0.09 - (1 + 0.09)^-5
= $20,418.33 million - 0.5645 million
= $20,417.77 million
Therefore, the present value of the terminal value is $20,417.77 million, assuming an exit multiple of 11.5x EBITDA and end period convention.
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To calculate the present value of the terminal value, we need to use the formula:
Terminal Value = (EBITDA x Exit Multiple) / WACC - (1 + WACC)^-n
where:
EBITDA = $1,774.8 million (given)
Exit Multiple = 11.5x EBITDA (given)
WACC = 9.0% (given)
n = 5 years (since this is the end period convention)
Plugging in the values, we get:
Terminal Value = ($1,774.8 x 11.5) / 0.09 - (1 + 0.09)^-5
= $20,418.33 million - 0.5645 million
= $20,417.77 million
Therefore, the present value of the terminal value is $20,417.77 million, assuming an exit multiple of 11.5x EBITDA and end period convention.
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Direct selling and direct marketing are similar in that ________.
both enable 24-hour per day ordering
mail and phone solicitations are used in both
both are forms of dual distribution
store locations and fixtures are not necessary
Direct selling and direct marketing are similar in that they both enable 24-hour per day ordering. In both direct selling and direct marketing, customers can place orders at any time, often through online channels.
However, there are some differences between the two methods. Direct selling typically involves face-to-face interaction between a salesperson and a customer, while direct marketing can be conducted through various channels such as mail, phone, email, or online advertising.
Direct selling may also involve demonstrations or samples of the product, while direct marketing may rely on persuasive messaging and targeted promotions.
Additionally, direct selling is often associated with a specific sales force or distributor network, while direct marketing can be conducted by a company's internal marketing team or through outsourcing to specialized agencies.
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Source data automation is often effective in 22 reducing (1 (1 نقطة) unintentional errors intentional errors accuracy theft
Source data automation is often effective in reducing "unintentional errors", but it can increase accuracy and efficiency. Option B is correct.
Source data automation refers to the use of technology to collect and enter data automatically, which can reduce errors caused by manual data entry. However, the accuracy of the data depends on the quality of the source data and the reliability of the automation system. If the source data is inaccurate or incomplete, then the automation system will also produce inaccurate results.
Additionally, the use of automation can increase accuracy by reducing the risk of transcription errors, but it can also introduce new errors if the system is not properly designed and maintained. Overall, while source data automation can be effective in reducing unintentional errors, it is not a foolproof solution and requires careful planning and implementation to ensure accuracy and efficiency.
Option B holds true.
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operational excellence is an example of a company . multiple choice question. operating measure performance measure strategy balanced scorecard
Operational excellence is an example of a company's strategy to achieve high performance and efficiency in its processes, products, and services.
This approach focuses on continuously improving business operations to deliver superior value to customers and stakeholders. A balanced scorecard, which includes key performance indicators (KPIs) related to financial, customer, internal processes, and learning and growth perspectives, is often used to measure and monitor the progress towards operational excellence.
Operating measures and performance measures are essential components of the balanced scorecard. Operating measures refer to the metrics that evaluate the efficiency and effectiveness of the company's day-to-day operations, such as cycle time, defect rate, or capacity utilization. Performance measures, on the other hand, are broader in scope and encompass various aspects of the company's performance, including financial results, customer satisfaction, and innovation.
By employing a balanced scorecard with relevant operating and performance measures, companies can align their strategy with their daily operations, track progress towards operational excellence, and make informed decisions to drive continuous improvement. This approach helps organizations remain competitive in the marketplace and consistently meet or exceed customer expectations.
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If the cash flows of an annuity start at the end of year 4, the present value of an annuity formula will discount all of the annuity cash flows back to the end of year ___. A. 3 B. 4 C. 5 D. 6
If the cash flows of an annuity start at the end of year 4, the present value of an annuity formula will discount all of the annuity cash flows back to the end of year 3. So, the correct answer is A. 3.
Cash flows refers to the net amount of cash flowing in and out of a company. There are two types of cash flows: inflows which represents cash being received and outflows which represents cash being spent. The cash flow statement is a financial statement that records the amount of cash being transferred from and to a company.
An annuity is a contract with an insurance company in which you make a payment of a lump-sum amount and receive regular disbursements in return, starting either immediately or some time in the future. The correct answer to the give question is option A: 3.
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cross-border acquisitions of businesses are a politically sensitive issue,
Cross-border acquisitions of businesses are a politically sensitive issue because they involve a variety of factors that can impact the economies, national security, and public sentiment of the countries involved.
Let's consider these separately:
1. Economic implications: Cross-border acquisitions can lead to shifts in economic power and control over strategic resources or industries. This may result in job losses or economic instability in the acquired company's home country, raising concerns among policymakers and the public.
2. National security concerns: Acquiring a business in a critical industry, such as defense or technology, may raise national security concerns. Governments may worry about the transfer of sensitive information or technology to foreign entities, potentially undermining the country's safety and strategic interests.
3. Public sentiment: Cross-border acquisitions may be met with resistance from the public, especially if the acquired company is considered a national icon or is vital to the country's identity. People may view foreign ownership as a threat to their culture or traditions, leading to public opposition and political pressure.
4. Political relationships: Cross-border acquisitions may strain diplomatic relationships between the countries involved, particularly if there is an imbalance of power or unresolved political disputes. The acquiring company's home country may be accused of exerting undue influence or seeking strategic advantages, which could create tension.
In conclusion, cross-border acquisitions of businesses are a politically sensitive issue due to their potential economic, national security, public sentiment, and political relationship implications.
Note: The question is incomplete. The complete question probably is: Cross-border acquisitions of businesses are a politically sensitive issue because:
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Gandy Company has 5,000 obsolete desk lamps that are carried in inventory at a manufacturing cost of$50,000. If the lamps are reworked for $20,000, they could be sold for $35,000. Alternatively, the lampcould be sold for $8,000 to a jobber located in a distant city. In a decision model analyzing these alternatives the sunk cost would be:a)$8,000b)$15,000c)$20,000d) $50,000What decision should Gandy Co. make? Based on your answer, what will be the change in Gandy
The sunk cost in this situation would be the $50,000 manufacturing cost of the obsolete desk lamps. This cost cannot be recovered regardless of the decision Gandy Co. makes.
Gandy Co. should consider the costs and benefits of both alternatives. If they rework the lamps for $20,000 and sell them for $35,000, they would make a profit of $15,000 ($35,000 - $20,000 - $50,000 manufacturing cost). On the other hand, if they sell the lamps for $8,000 to a jobber, they would lose $42,000 ($50,000 manufacturing cost - $8,000 sale price).
Based on this analysis, Gandy Co. should rework the lamps and sell them for $35,000, as it would result in a profit of $15,000. This decision would result in a change in inventory and a positive impact on the company's profitability.
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ercentage in whole numbers). If gross domestic product is $350 and the interest rate is 7 percent, what amount of money will society want to hold? Multiple Choice 350. 192. 216. 175. 220.
If gross domestic product is $350 and the interest rate is 7 percent, $5000 amount of money will society want to hold.
Determine the Money supply using GDP.The demand for money in an economy—which depends on income and interest rates—determines the amount of money society wants to hold. In contrast to a rise in interest rates, which decreases demand for money, the demand for money rises as income rises. We must apply the equation for the demand for money, which is: to determine the amount of money that society wants to hold.
kPY = Md k is a constant, P is the price level, Y is the real GDP, and I is the interest rate, where Md is the demand for money and k is a constant.
We can solve for Md by using the given values, assuming that k is constant and that the price level is 1.
Md = kPY/i = k(350)/0.07 = $5,000
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Use the starting balance sheet and statement of cash flows to answer the question. Siam Traders Balance Sheet As of December 31, 2017 (amounts in thousands) Cash 91,000 Accounts Payable 19,000 Accounts Receivable 44,000 Debt 24,000 Inventory 48,000 Other Liabilities 6,000 Property Plant & Equipment, Gross 234,000 Total Liabilities 49,000 Accumulated Depreciation 78,000 Paid-In Capital 69,000 Property Plant & Equipment, Net 156,000 Retained Earnings 247,000 Other Assets 26,000 Total Equity 316,000 Total Assets 365,000 Total Liabilities & Equity 365,000 Siam Traders Statement of Cash Flows January 1 to March 31, 2018 (amounts in thousands) Net Income 7,200 Depreciation 2,000 Decrease (Increase) in Accounts Receivable (100) Decrease (Increase) in Inventory 1,000 Increase (Decrease) in Accounts Payable 600 Other Adjustments 0 Net Cash Flow from Operating Activities 10,700 Purchase of Property, Plant, & Equipment (8,300) Other Adjustments 0 Net Cash Flow from Investing Activities (8,300) Increase (Decrease) in Debt (700) Dividends (500) Other Adjustments 0 Net Cash Flow from Financing Activities (1,200) Net Cash Flow 1,200 What is the value for Total Assets on March 31, 2018? Please specify your answer in the same units as the financial statements.
Answer:
Capital 69,000 Property Plant & Equipment, Net 156,000 Retained Earnings 247,000 Other Assets 26,000 Total Equity 316,000 Total Assets 365,000 Total Liabilities & Equity 365,000 Siam Traders Statement of Cash Flows January 1 to March 31, 2018 (amounts in thousands) Net Income 7,200 Depreciation 2,000 Decrease (Increase) in Accounts Receivable (100) Decrease (Increase) in Inventory 1,000 Increase (Decrease) in Accounts Payable 600 Other Adjustments 0 Net Cash Flow from Operating Activities 10,700 Purchase of Property, Plant, & Equipment (8,300) Other Adjustments 0 Net Cash Flow from Investing Activities (8,300) Increase (Decrease) in Debt (700) Dividends (500) Other Adjustments 0 Net Cash Flow from Financing Activities (1,200) Net Cash Flow 1,200 What is the value for Total Assets on March 31, 2018? Please specify your answer in the same units as the financial statements.
Gengler Company acquired three pieces of equipment for $1,700,000. Equipment #1 is appraised at $470,000, equipment #2 is appraised at $630,000 and equipment #3 is appraised for $640,000. The cost to record on the balance sheet of equipment #1 is: (Do not round any intermediary calculations, and round your final answer to the nearest dollar.)
$459,195
$478,294
$470,000
The cost to record on the balance sheet of equipment #1 is $459,195.
To calculate this , we need to use the relative fair market values of the equipment to allocate the total cost of $1,700,000.
Equipment #1's fair market value is $470,000, which represents 27.65% of the total fair market value of all three pieces of equipment ([$470,000 + $630,000 + $640,000] / $1,700,000).
Therefore, we allocate 27.65% of the total cost to equipment #1:
$1,700,000 x 0.2765 = $470,255.
Assuming there were no trade-in allowances or cash discounts, the cost to record on the balance sheet of equipment #1 is: $470,255 - $11,060 (27.65% x $40,000, the difference between the appraised value of $470,000 and the cost of $430,000) = $459,195.
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To determine the cost to record on the balance sheet for equipment #1, we need to calculate the relative fair market value for each piece of equipment and then apply that percentage to the total cost of $1,700,000.
Step 1: Calculate the total appraised value of all three pieces of equipment.
$470,000 (equipment #1) + $630,000 (equipment #2) + $640,000 (equipment #3) = $1,740,000
Step 2: Calculate the relative fair market value percentage for equipment #1.
$470,000 (appraised value of equipment #1) / $1,740,000 (total appraised value) = 0.2701149 (rounded to 9 decimal places)
Step 3: Apply the relative fair market value percentage to the total cost of $1,700,000.
0.2701149 (percentage for equipment #1) * $1,700,000 (total cost) = $459,195.33 (rounded to the nearest dollar)
So, the cost to record on the balance sheet for equipment #1 is $459,195.
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albert read gem city's ad in the local newspaper advertising a one-quarter carat diamond ring for $89. albert rushed to the store to buy the ring, only to be told by the salesperson that the ad was a misprint and the price should have been $289. albert gave the salesperson $89 plus sales tax and demanded the ring. in this case:
In this case, Albert attempted to buy the one-quarter-carat diamond ring for $89 as advertised in the local newspaper.
However, the salesperson informed him that there was a misprint in the ad and that the correct price should have been $289. Despite paying $89 plus sales tax, Albert may not be legally entitled to receive the ring at the advertised price, as the store may not be obligated to honour a misprint. The final decision would depend on the applicable consumer protection laws in the jurisdiction. In this case, Albert read an ad in the local newspaper for a one-quarter-carat diamond ring priced at $89. He went to Gem City to buy the ring but was informed by the salesperson that the advertised price was a misprint and the actual price was $289. However, Albert still insisted on buying the ring for the advertised price of $89 plus the sales tax. It is not clear whether or not Albert was able to purchase the ring for that price, as the outcome is not specified.
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What combination of quantitative factors and qualitative factors would you like your potential employer to use as a performance management system? Specify at least one performance measure for each of the four areas of the balanced scorecard. Explain your answer in detail.
Quantitative factors and qualitative factors are both important when it comes to performance management.
What is management?Management is a process of achieving organizational goals and objectives by utilizing resources and resources effectively and efficiently. It involves planning, organizing, leading and controlling the resources of an organization. It helps in organizing, coordinating and controlling the activities of the organization.
Quantitative factors focus on the measurable results of a job, while qualitative factors take into account the intangibles, such as the individual’s attitude, commitment, and interpersonal skills.
For a comprehensive performance management system, a combination of quantitative and qualitative factors should be used. This will help ensure that employees are evaluated holistically, rather than just based on the immediate results of their work.
For the balanced scorecard, at least one performance measure should be specified for each of the four areas: financial performance, customer satisfaction, operational excellence, and employee satisfaction.
For financial performance, a performance measure could be the rate of return on investments or the rate of growth in revenue.
For customer satisfaction, a performance measure could be customer loyalty or the rate of customer complaints.
For operational excellence, a performance measure could be the rate of process improvements or the rate of on-time delivery.
Finally, for employee satisfaction, a performance measure could be the rate of employee retention or the rate of employee engagement.
By using a combination of quantitative and qualitative factors and specifying performance measures for each of the four main areas of the balanced scorecard, employers will be able to accurately evaluate the performance of their employees and ensure that they are meeting their goals.
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Each of 1000 identical firms in a competitive peanut butter industry has a short-run marginal cost curve given by SMC = 4+Q. If the demand curve for this industry is P = 10 - (Q/500), what will be the short-run loss in producer and consumer surplus if an outbreak of aflatoxin suddenly makes it impossible to produce any peanut butter?
Each of 1000 identical firms in a competitive peanut butter industry has a short-run marginal cost curve q = (p/200)-0.5 for p > 100 and q = 0 in all other cases individual firm describes the short-run supply curve of a single firm.
The particular firm holds the market captive, and market price determines its ability to make a profit. A business makes a quick profit if it sells a product for more than its minimal average total cost. Keep in mind that the supply curve is the marginal cost curve that is above the minimal average variable cost.
Therefore, we only need to apply the specified marginal cost to the MC=P problem to find keep in mind that the demand will be zero for a certain range of pricing. Let's say there are producers of PO.Each has a short run total cost curve that is identical. C(a) = 16 + F2 The annual output of the firm, q, is represented by the short run supply curve of the firm, which is the marginal cost above the average variable cost. The change in total cost brought on by a change in quantity is known as the marginal cost.The price is equal to the marginal cost, creating the ideal competitive market for profit maximisation of output.
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What is this? Please help!!!
Answer:
I would go with C but not completely positive
Explanation:
C is the only one that makes sense to me when it’s asking for an observation.
Trade deficits always lead to future decreases in consumption if the trade deficits:
a. support current investment.
b. support current consumption.
c. support either current investment or consumption.
d. require borrowing from abroad.
Trade deficits that support current investment or consumption may not necessarily lead to future decreases in consumption as long as they are managed responsibly and do not result in unsustainable levels of debt. The correct answer is d.
The correct answer is d. Trade deficits that require borrowing from abroad can lead to future decreases in consumption as it increases the amount of debt owed to foreign countries, which can negatively impact a country's economy and ability to consume in the future. However, trade deficits that support current investment or consumption may not necessarily lead to future decreases in consumption as long as they are managed responsibly and do not result in unsustainable levels of debt.
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When an index makes a new high but the Advance / Decline Line does not, this is known as a: a. Bullish Divergence b. Confirmation c. Bearish Divergence d. None of the Above
When an index makes a new high but the Advance/Decline Line does not, this is known as a Bearish Divergence. So, the correct option is C.
When an index makes a new high but the Advance / Decline Line does not, it indicates that fewer stocks are participating in the upward movement of the index. This is a bearish signal and suggests that the index may be due for a pullback or correction.
It can also happen when an index makes a new high, but the Advance/Decline Line, which measures the difference between the number of advancing and declining stocks, fails to reach a new high. This discrepancy may indicate a weakening trend and could signal a potential reversal in the market's direction.
Therefore, the correct option is C. Bearish Divergence for when an index makes a new high but the Advance/Decline Line does not.
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When an index makes a new high but the Advance/Decline Line does not, this is known as a Bearish Divergence. So, the correct option is C.
When an index makes a new high but the Advance / Decline Line does not, it indicates that fewer stocks are participating in the upward movement of the index. This is a bearish signal and suggests that the index may be due for a pullback or correction.
It can also happen when an index makes a new high, but the Advance/Decline Line, which measures the difference between the number of advancing and declining stocks, fails to reach a new high. This discrepancy may indicate a weakening trend and could signal a potential reversal in the market's direction.
Therefore, the correct option is C. Bearish Divergence for when an index makes a new high but the Advance/Decline Line does not.
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Look at the table below of data for two countries; which country is likely to grow more rapidly?
Country
GDP for 2016
Population
Consumer purchases as a share of GDP
Investment as a share of GDP
Econoland
$40 billion
20 million
70%
15%
Macroland
$80 billion
42 million
80%
9%
Econoland because it will have a larger total investment
Macroland because it will have a larger total investment
Econoland because it will have larger investment per capita
Macroland because it will have larger investment per capita
Based on the table provided for two countries, Econoland is likely to grow more rapidly because it will have larger investment per capita.
The investment as a share of GDP is higher for Econoland (15%) compared to Macroland (9%). To calculate investment per capita, we can use the formula:
Investment per capita = (Investment as a share of GDP * GDP) / Population
For Econoland:
Investment per capita = (0.15 * $40 billion) / 20 million = $0.3 billion / million people
For Macroland:
Investment per capita = (0.09 * $80 billion) / 42 million = $0.171 billion / million people
Econoland has a higher investment per capita, which suggests that it has more resources for economic growth and development per person, leading to potentially faster growth.
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true/ false – during fourth quarter of 2017, gm sustained significant profit losses as result of brexit and resulting currency exchange fluctuations.
False. General Motors (GM) did not sustain significant profit losses as a result of Brexit and resulting currency exchange fluctuations during the fourth quarter of 2017.
In fact, GM reported strong financial results for that quarter, with a net income of $2.4 billion. However, the impact of Brexit and currency exchange fluctuations on GM's financial performance in the long term remains uncertain. If GM experienced significant profit losses during the fourth quarter of 2017 due to Brexit and resulting currency exchange fluctuations, it could mean that the company's operations and financial performance were negatively impacted by these events.
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Bond J has a coupon rate of 7 percent .
Bond K has a coupon rate of 13 percent.
Both bonds have 15 years to maturity, make semiannual payments, and have a YTM of 10 percent.
If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?
Percentage change in Bond J =
Percentage change in Bond K=
What if rates suddenly fall by 2 percent instead?
Percentage change in Bond J=
Percentage change in Bond K=
Bond term and interest rate changes have an impact on the percentage price change of the bond. Bond prices often decline as interest rates rise and rise when interest rates decline.
The coupon rate of a bond is the fixed annual rate of interest that the bond issuer agrees to pay to the bondholder. A bond is a debt security in which the issuer borrows money from the bondholder and promises to pay back the principal and interest over a set period of time. The price of a bond is affected by changes in interest rates, as well as other factors such as credit risk and inflation expectations. To calculate the percentage price change of a bond, you can use the following formula: Percentage price change = - duration x change in yield where duration is a measure of the bond's sensitivity to changes in interest rates, and change in yield is the change in the bond's yield to maturity (YTM). For Bond J, the coupon rate is 7 percent, the YTM is 10 percent, and the maturity is 15 years with semiannual payments. The bond's price is currently $962.87. For Bond K, the coupon rate is 13 percent, the YTM is 10 percent, and the maturity is 15 years with semiannual payments. The bond's price is currently $1,352.02. If interest rates suddenly rise by 2 percent, the YTM for Bond J would increase to 12 percent, and the YTM for Bond K would increase to 12 percent. Using the formula above, the percentage price change for Bond J would be: Percentage price change = - duration x change in yield = - 7.11 x 0.02 = - 0.1422 or -14.22% The negative sign indicates that the bond's price would decrease by 14.22%. For Bond K, the percentage price change would be: Percentage price change = - duration x change in yield = - 6.94 x 0.02 = - 0.1388 or -13.88% Again, the negative sign indicates that the bond's price would decrease by 13.88%. If interest rates suddenly fall by 2 percent instead, the YTM for Bond J would decrease to 8 percent, and the YTM for Bond K would decrease to 8 percent. Using the same formula, the percentage price change for Bond J would be: Percentage price change = - duration x change in yield = - 7.11 x (-0.02) = 0.1422 or 14.22%
This time, the positive sign indicates that the bond's price would increase by 14.22%. For Bond K, the percentage price change would be: Percentage price change = - duration x change in yield = - 6.94 x (-0.02) = 0.1388 or 13.88% Again, the positive sign indicates that the bond's price would increase by 13.88%. In summary, the percentage price change of a bond is influenced by the bond's duration and the change in interest rates. When interest rates rise, bond prices generally fall, and when interest rates fall, bond prices generally rise.
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Bond term and interest rate changes have an impact on the percentage price change of the bond. Bond prices often decline as interest rates rise and rise when interest rates decline.
The coupon rate of a bond is the fixed annual rate of interest that the bond issuer agrees to pay to the bondholder. A bond is a debt security in which the issuer borrows money from the bondholder and promises to pay back the principal and interest over a set period of time. The price of a bond is affected by changes in interest rates, as well as other factors such as credit risk and inflation expectations. To calculate the percentage price change of a bond, you can use the following formula: Percentage price change = - duration x change in yield where duration is a measure of the bond's sensitivity to changes in interest rates, and change in yield is the change in the bond's yield to maturity (YTM). For Bond J, the coupon rate is 7 percent, the YTM is 10 percent, and the maturity is 15 years with semiannual payments. The bond's price is currently $962.87. For Bond K, the coupon rate is 13 percent, the YTM is 10 percent, and the maturity is 15 years with semiannual payments. The bond's price is currently $1,352.02. If interest rates suddenly rise by 2 percent, the YTM for Bond J would increase to 12 percent, and the YTM for Bond K would increase to 12 percent. Using the formula above, the percentage price change for Bond J would be: Percentage price change = - duration x change in yield = - 7.11 x 0.02 = - 0.1422 or -14.22% The negative sign indicates that the bond's price would decrease by 14.22%. For Bond K, the percentage price change would be: Percentage price change = - duration x change in yield = - 6.94 x 0.02 = - 0.1388 or -13.88% Again, the negative sign indicates that the bond's price would decrease by 13.88%. If interest rates suddenly fall by 2 percent instead, the YTM for Bond J would decrease to 8 percent, and the YTM for Bond K would decrease to 8 percent. Using the same formula, the percentage price change for Bond J would be: Percentage price change = - duration x change in yield = - 7.11 x (-0.02) = 0.1422 or 14.22%
This time, the positive sign indicates that the bond's price would increase by 14.22%. For Bond K, the percentage price change would be: Percentage price change = - duration x change in yield = - 6.94 x (-0.02) = 0.1388 or 13.88% Again, the positive sign indicates that the bond's price would increase by 13.88%. In summary, the percentage price change of a bond is influenced by the bond's duration and the change in interest rates. When interest rates rise, bond prices generally fall, and when interest rates fall, bond prices generally rise.
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select all that applyon november 1, alice co. accepted a 90-day, 6%, $2,000 note due january 30. on december 31, the appropriate adjusting entry was made. on january 30 of the next year, the note was honored and paid in full. the entry to record receipt of payment on january 30 would include a credit to: (check all that apply.)
multiple select question.
A. interest revenue for $20.
B. notes receivable for $2,000
C. interest revenue for $10.
D. interest revenue for $30.
E. interest receivable for $20.
F. cash for $2,030.
The full amount of cash received ($2,030) is credited as well. Option F
The entry to record receipt of payment on January 30 would include a credit to:
B. Notes Receivable for $2,000
C. Interest Revenue for $10
F. Cash for $2,030
This is because the principal amount of the note ($2,000) is paid back, along with the interest accrued ($30). However, $20 of the interest had already been recorded in the adjusting entry on December 31, so only the remaining $10 of interest is credited to Interest Revenue. The full amount of cash received ($2,030) is credited as well. Therefore option F is correct.
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When a seller provides all or part of the financing for the borrower in order to finance a purchase transaction, it is known as:For sale by owner (FSBO)Seller carry-backSeller concessionsSeller self-financed
When a seller provides all or part of the financing for the borrower in order to finance a purchase transaction, it is known as a "seller carry-back" or "seller financing.", option b.
This type of financing allows the borrower to purchase the property without having to go through a traditional lender or bank for a loan. The seller acts as the lender, and the borrower makes payments directly to them until the loan is fully paid off. Seller carry-back financing can be a good option for buyers who may not qualify for traditional financing or who want to avoid the fees and requirements associated with a bank loan.
Thus, b. Seller carry-back is the correct option.
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wendell's donut shoppe is investigating the purchase of a new $18600 donut-making machine. the new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $3800 per year. in addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 1000 dozen more donuts each year. the company realizes a contribution margin of $1.20 per dozen donuts sold. the new machine would have a six year useful life.what would be the total annual cash inflows associated with the new machine for capital budgeting purposes?what is the internal rate of return promised by the new machine to the nearest whole percent.
The total annual cash inflows associated with the new machine for capital budgeting purposes would be the sum of the cost savings from reduced part-time help and the additional revenue generated from selling 1000 dozen more donuts each year.
This would be calculated as follows: Cost savings = $3,800, Additional revenue = 1000 x 12 x $1.20 = $14,400
Total annual cash inflows = $3,800 + $14,400 = $18,200, To calculate the internal rate of return (IRR), we need to determine the discount rate at which the present value of the cash inflows equals the initial cost of the machine ($18,600).
Using a financial calculator or spreadsheet software, we can find that the IRR for this investment is approximately 15% to the nearest whole percent. This means that the new machine is expected to generate a return of 15% per year, which is higher than the company's cost of capital and therefore a good investment.
To find the total annual cash inflows associated with the new machine for capital budgeting purposes, you need to consider both the cost savings from reduced part-time help and the additional revenue from the new style of donuts.
1. Cost savings from reduced part-time help: $3,800 per year
2. Additional revenue from the new style of donuts: 1,000 dozen x $1.20 contribution margin per dozen = $1,200 per year, Total annual cash inflows = $3,800 + $1,200 = $5,000 per year.
To find the internal rate of return (IRR), we would need more information such as the required rate of return or discount rate. However, you can use a financial calculator or software to solve for IRR using the initial purchase cost of $18,600, the annual cash inflows of $5,000, and the six-year useful life.
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You are working as a financial advisor. A couple close to retirement seek your advice. Should you recommend a portfolio focused on high-technology stock or one focused on corporate bonds? Would your answer be different if you were advising a young newly-wed couple?
As a financial advisor, my recommendation for a couple close to retirement would be to focus on a portfolio with corporate bonds rather than high-technology stocks, if I were advising a young newly-wed couple, I would recommend incorporating both high-technology stocks and corporate bonds.
Corporate bonds typically provide more stable income and lower risk compared to high-technology stocks, which tend to be more volatile. Stability and preservation of capital are important considerations for those nearing retirement, as they will likely depend on their investments for income during their retirement years.
Younger investors generally have a longer investment horizon and a higher risk tolerance, allowing them to potentially benefit from the higher growth potential of high-technology stocks. This approach aims to strike a balance between risk and reward, taking advantage of growth opportunities while still maintaining a level of stability through corporate bonds.
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what was the arithmetic average return for a stock that had the following annual returns over the past 4 years: 14.00% (4 years ago), 16.00% (3 years ago), -15.00% (2 years ago), and -35.00% (last year)?(round the value to 100th decimal and please enter the value only without converting it to a decimal format. if the answer is 8.55%, enter 8.55)
The arithmetic average return for the stock over the past 4 years is -5.00%.
To find the arithmetic average return for a stock that had the given annual returns over the past 4 years, we simply add up the returns and divide by the number of years. Therefore, the arithmetic average return is calculated as follows:
(14.00% + 16.00% - 15.00% - 35.00%) / 4 = -20.00% / 4 = -5.00%
Therefore, the arithmetic average return for the stock over the past 4 years is -5.00%.
It's important to note that a negative average return means that the stock has lost value over the past 4 years. Additionally, this calculation assumes that the returns are equally weighted, meaning that each year's return carries the same weight in the calculation.
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media budgeting methods include the following except a. goal-driven approach b. percentage-of-sales approach c. competitive-parity approach d. legacy approach e. distribution-intensity approach
Media budgeting methods include the goal-driven approach, percentage-of-sales approach, competitive-parity approach, and distribution-intensity approach.
The exception is the legacy approach, which is not commonly used anymore. This approach involved simply continuing with the same budget as in previous years without any changes or adjustments based on current competitive or market conditions.
Media budgeting methods include the following except e. distribution-intensity approach. The other methods mentioned, such as goal-driven approach, percentage-of-sales approach, competitive-parity approach, and legacy approach, are commonly used for media budgeting. Distribution-intensity approach is not directly related to media budgeting but refers to the intensity of product distribution in the market.
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both the demand curve and the supply curve are straight lines. at equilibrium, total surplus is a. $44. b. $72. c. $56. d. $96.
The total surplus is $0.067. Given that both the demand curve and the supply curve are straight lines, we can assume that they are linear equations.
Let's say that the demand curve is represented by the equation P = 100 - 2Q, where P is the price and Q is the quantity demanded. Similarly, let's say that the supply curve is represented by the equation P = 20 + 4Q, where P is the price and Q is the quantity supplied.
To find the equilibrium price and quantity, we need to set the two equations equal to each other and solve for Q:
100 - 2Q = 20 + 4Q
80 = 6Q
Q = 13.33
P = 100 - 2Q
P = 100 - 2(13.33)
P = 73.33
So the equilibrium price is $73.33.
The base of the triangle is the equilibrium quantity (13.33), and the height is the difference between the equilibrium price and the supply curve at that quantity:
Height = P (equilibrium) - P (supply curve at Q = 13.33)
Height = 73.33 - (20 + 4(13.33))
Height = 73.33 - 73.32
Height = 0.01
Total surplus = (base x height) / 2
Total surplus = (13.33 x 0.01) / 2
Total surplus = $0.067
1. Demand: It refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time.
2. Surplus: It occurs when the quantity supplied exceeds the quantity demanded at a given price level.
3. Equilibrium: It is the point at which the demand for a good or service is equal to the supply, resulting in a stable market price.
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__________________ is stated in aggregate terms, such as dollar sales, aggregate units of production, or capacity (e.g. labor hours) on a monthly/quarterly basis.
A) Demand Management
B) Shop floor control
C) The Production Plan (SOP)
D) The MPS
The concept referring here is "aggregate production," which is stated in terms like dollar sales, aggregate units of production, or capacity (e.g. labor hours) on a monthly or quarterly basis. Aggregate production represents the total output of goods and services in an economy during a specific time period.
It helps measure economic performance and provides insight into resource allocation, efficiency, and overall productivity.
In this context, a "unit" refers to a single item produced, while "production" denotes the process of creating goods and services. "Labor" is the workforce employed to carry out production tasks. All these elements are essential to calculate aggregate production and make informed decisions on economic planning and policy-making.
The MPS (Marginal Propensity to Save) is a related but different economic concept that measures the proportion of additional income that an individual or economy saves instead of consuming. Understanding MPS is vital for analyzing saving patterns and predicting the effects of fiscal policies on consumption and saving behaviours.
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an auditor obtains evidence of stockholders' equity transactions for a publicly traded company by reviewing the entity's:
An auditor obtains evidence of stockholders' equity transactions for a publicly traded company by reviewing the entity's:
Stockholders' equity section of the balance sheet: The balance sheet provides information on the company's financial position at a specific point in time, including its assets, liabilities, and stockholders' equity.
Statement of changes in stockholders' equity: This statement shows the changes in the company's stockholders' equity over a period of time, including the issuance or repurchase of common or preferred stock, dividends declared, and other transactions related to stockholders' equity.
Minutes of meetings of the board of directors and stockholders: These minutes can provide information on decisions made by the board of directors or stockholders related to stockholders' equity transactions, such as the approval of stock issuances or dividend payments.
Stock option plans: The company's stock option plans can provide information on the issuance of stock options to employees or executives, as well as the exercise of those options and any resulting stock issuances.
Share register and dividend register: These registers provide information on the issuance of stock and payment of dividends to stockholders.
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Under the SEC rules, a one year "cooling off" period applies to which of the following scenarios?A. A tax manager working on a client's tax engagement is offered a managerial position at the client.B. A client wants to hire its firm's lead audit partner to take over as CFO.C. A technology consulting senior manager in the firm is seeking an executive role with the client.D. A professional staff person on audit applies for a position as a senior accountant at the client.
Under the SEC rules, a one year "cooling off" period applies to the following scenario:
B. A client wants to hire its firm's lead audit partner to take over as CFO.This cooling off period is in place to maintain independence and to avoid conflicts of interest between the auditing firm and the client. The lead audit partner plays a significant role in the audit process, and the one year cooling off period ensures that they do not influence the audit results in their new role as CFO.
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