4.The amount of interest expense to be reported on the income statement for the year ending December 31, 2014, is $22,928, which is closest to the fourth option, $22,928.
5.The amount of the unamortized discount or premium on Dec 31, 2013, after the interest payment is made is $47,158 which is closest to the fourth option, $47,158.
To prepare a bond amortization schedule, we are to follow the following steps:
Step 1: Calculate the interest expense = face value * interest rate * time= $500,000 * 6% * 1/2= $15,000
Step 2: Calculate the bond interest paid = face value * interest rate= $500,000 * 6% = $30,000
Step 3: Calculate the amount of bond discount = bond issued price - bond face value= $581,771 - $500,000 = $81,771
Step 4: Calculate the bond discount amortization= bond discount/ number of interest payments= $81,771 / 20= $4,089
Step 5: Calculate the bond carrying value = bond face value + unamortized bond discount= $500,000 + $4,089 = $504,089
Therefore, the amount of interest expense to be reported on the income statement for the year ending December 31, 2014, is $22,928, which is closest to the fourth option, $22,928.
Question 5:To prepare a bond amortization schedule, we are to follow the following steps:
Step 1: Calculate the bond issued price = face value - bond discount= $500,000 - $40,536= $459,464
Step 2: Calculate the interest expense = bond carrying value * interest rate= $459,464 * 8% * 1/2= $18,379.52
Step 3: Calculate the bond interest paid = face value * interest rate= $500,000 * 6% = $30,000
Step 4: Calculate the bond discount amortization= bond discount/ number of interest payments= $40,536 / 10= $4,053.60
Step 5: Calculate the bond carrying value = bond face value - unamortized bond discount= $500,000 - $4,053.60 = $495,946.40
Therefore, the amount of the unamortized discount or premium on Dec 31, 2013, after the interest payment is made is $47,158 which is closest to the fourth option, $47,158.
For more question on discount
https://brainly.com/question/29869380
#SPJ8
You plan to purchase 400 shares of Meridian Inc. at $50.00 per share on marain. The initial margin is 55.00%, the maintenance margin is 30.00%. What is the maximum amount that you are allowed to borrow for this position?
In order to find out the maximum amount that you are allowed to borrow for this position, you need to first calculate the total value of the position. This can be done using the following formula:Total value of position = Number of shares x Price per share= 400 x $50.00 = $20,000.
In this scenario, you plan to purchase 400 shares of Meridian Inc. at $50.00 per share on margin. The initial margin is 55.00%, and the maintenance margin is 30.00%.The maximum amount that you are allowed to borrow for this position is determined by the initial margin, which is the percentage of the total value of the position that you must put up as equity. In this case, the initial margin is 55%, which means you need to put up 55% of the total value of the position as equity. The rest can be borrowed.
To calculate the maximum amount you can borrow, you first need to calculate the total value of the position. This can be done by multiplying the number of shares by the price per share. In this case, the total value of the position is 400 shares x $50.00 = $20,000.Once you have the total value of the position, you can calculate the initial margin by multiplying the total value by the initial margin percentage. In this case, the initial margin is 55%, so the initial margin is 55% x $20,000 = $11,000.The amount you can borrow is simply the total value of the position minus the initial margin. In this case, the amount you can borrow is $20,000 - $11,000 = $9,000.
In conclusion, the maximum amount that you are allowed to borrow for this position is $9,000. This is calculated by subtracting the initial margin from the total value of the position. The initial margin is 55% of the total value of the position, which means you need to put up $11,000 as equity. The rest can be borrowed, which gives you a maximum borrowing amount of $9,000.
To know more about maximum amount visit:
brainly.com/question/32568749
#SPJ11
Last month when Holiday Creations, Incorporated, sold 40,000 units, total sales were $160,000, total variable expenses were $112,000, and fixed expenses were $35,800. Required: 1. What is the company's contribution margin (CM) ratio?
The company's contribution margin (CM) ratio is 0.3 or 30%.
To calculate the company's contribution margin (CM) ratio, we need to first calculate the contribution margin. The contribution margin is the difference between total sales and total variable expenses.
In this case:
Total sales = $160,000
Total variable expenses = $112,000
Contribution Margin (CM) = Total Sales - Total Variable Expenses
CM = $160,000 - $112,000
CM = $48,000
The contribution margin ratio is the contribution margin divided by total sales:
CM Ratio = CM / Total Sales
CM Ratio = $48,000 / $160,000
To simplify the ratio, we can divide both the numerator and denominator by 1,000:
CM Ratio = 48 / 160
CM Ratio = 0.3
Learn more about contribution margin here:
https://brainly.com/question/30459935
#SPJ11
Discuss the following statement:
"Institutional equilibria mean that underdeveloped
countries will never be advanced economies"
According to this statement, institutional equilibria mean that underdeveloped countries will never become advanced economies because their institutional equilibria prevent them from doing so, the argument is based on the assumption that the institutional equilibria in underdeveloped countries are fundamentally flawed, and that these flaws prevent them from becoming advanced economies.
Institutional equilibria refers to the balance of power between institutions within a society. It is based on the idea that the rules and norms governing a society create an equilibrium that is difficult to change. These flaws might include corruption, political instability, lack of property rights, and weak rule of law. There is some truth to this argument, it is true that many underdeveloped countries have institutional equilibria that are not conducive to economic growth.
However, it is also true that many of these countries are making progress in overcoming these obstacles. They are working to strengthen their institutions, promote transparency, and create a more favorable environment for business and investment. Therefore, while institutional equilibria can be a barrier to economic development, they are not an insurmountable barrier. Underdeveloped countries can overcome their institutional weaknesses and become advanced economies if they take the necessary steps to reform their institutions.
To know more about equilibria here
https://brainly.com/question/31035329
#SPJ11
According to Keynes 1) monetary policy is particularly adept at managing the economy due to the high sensitivity of investment to the real interest rate 2) fiscal policy is counterproductive because the economy is always at full employment 3) monetary policy is better policy tool for managing the economy than fiscal policy 4)monetary policy can be ineffective because of the increased uncertainty during a recession
The statement that is true according to Keynes is that monetary policy can be ineffective because of the increased uncertainty during a recession.Keynes suggested that during a recession, monetary policy could be ineffective due to the increased uncertainty and pessimism that comes with the economic downturn. As a result, investment and consumption fall, causing an increase in unemployment.
Additionally, Keynes argued that fiscal policy is more effective during times of recession since it directly affects the demand for goods and services, thereby leading to an increase in employment.The other statements are not true according to Keynes. Keynes believed that fiscal policy is more effective than monetary policy in managing the economy, particularly during recessions.
He argued that fiscal policy can stimulate demand for goods and services by increasing government spending and lowering taxes, which can lead to an increase in employment and output. Keynes did not believe that the economy is always at full employment, as he observed that economies can experience periods of high unemployment due to insufficient aggregate demand.
know more about monetary policy,here:
https://brainly.com/question/32175013
#SPJ11
true/false. a concept is a mental category that groups objects, relations, activities, abstractions or qualities having common properties.
The statement "A concept is a mental category that groups objects, relations, activities, abstractions, or qualities based on common properties or characteristics" is true.
Concepts play a fundamental role in human cognition and understanding of the world around us. They allow us to organize and make sense of information, recognize patterns, and generalize knowledge.
Concepts can range from concrete and specific to abstract and general. They enable us to classify and categorize things based on shared features, helping us to simplify complex information and make it more manageable.
For example, the concept of "dog" groups various breeds of dogs together based on their shared characteristics of being four-legged, domesticated animals with fur and a wagging tail.
Concepts also facilitate communication and language. They provide a common framework for expressing ideas and sharing information. When we use words or symbols to represent concepts, we can convey meaning and engage in meaningful discourse.
In conclusion, concepts are mental categories that allow us to organize, classify, and understand the world around us. They help us make sense of diverse information by identifying commonalities and grouping related objects, relations, activities, abstractions, or qualities.
To know more about concept refer here:
https://brainly.com/question/32542535#
#SPJ11
Which of the following policies would dramatically and permanently reduce government outlays?
A raising the age to receive Social Security to 75 B. lowering wages for workers involved in all government construction projects DC reducing the number of people eligible for Medicare and Medicaid by half DD reducing the number of overseas military bases OE lowering Medicare and Social Security taxes
The one that would dramatically and permanently reduce government outlays is reducing the number of overseas military bases. option D.
The term government outlays are defined as the total amount of money that the government spends or disburses in a specific period.
The given options are policies that could potentially reduce the government's outlays:A) raising the age to receive Social Security to 75 - This policy might lead to a reduction in Social Security payouts, but it will not result in significant and permanent reductions in government outlays.
B) lowering wages for workers involved in all government construction projects - This policy may reduce the overall cost of construction projects, but it may not result in a significant and permanent reduction in government outlays.
C) reducing the number of people eligible for Medicare and Medicaid by half - This policy might lower the overall cost of Medicare and Medicaid programs, but it would also affect the people that benefit from these programs. This policy will not result in a significant and permanent reduction in government outlays.
D) reducing the number of overseas military bases - This policy could lead to significant reductions in government outlays as military bases abroad are one of the primary sources of government expenditures.
The maintenance and operations of such bases require huge amounts of money, which could be significantly reduced by cutting down the number of overseas military bases.
E) lowering Medicare and Social Security taxes - This policy will lead to a reduction in the revenue generated by the government from Medicare and Social Security taxes, but it will not result in a significant and permanent reduction in government outlays.
Thus, we can conclude that reducing the number of overseas military bases would dramatically and permanently reduce government outlays. So Option D is correct.
For more question on dramatically visit:
https://brainly.com/question/18882103
#SPJ8
Joe’s house cleaning is a company that provide household junk
removal services. The owner of the company thinks they can cross
sell power washing (that is, cleaning the outside of a house and
drivew
Joe’s House Cleaning, as the name implies, is a company that specializes in household junk removal.
The owner of the company is considering expanding his offerings by including power washing, which entails cleaning the outside of a house and driveway. Cross-selling is a strategy that can aid businesses like Joe's House Cleaning in boosting sales by offering additional services to existing customers. In this case, the goal is to persuade existing clients who use the junk removal service to use the power washing service as well.
The company already has an existing customer base who trust them and are familiar with their services. By cross-selling the power washing service, the company can leverage this established relationship to expand its business offerings and create new revenue streams. Cross-selling will also make the company more competitive by providing a full range of services. Offering power washing to clients will also provide an additional revenue stream that would have been lost if customers had to hire another company to handle power washing.
Learn more about Joe’s House Cleaning: https://brainly.com/question/19493296
#SPJ11
what kind of investment stock does Amazon have?
Amazon (AMZN) is a publicly traded firm with a variety of shares available on the NASDAQ stock exchange. Amazon's market capitalization is about $1.7 trillion as of June 2021, making it one of the world's most valuable firms. Let's look at some of the different forms of stock that Amazon offers.
Common Stock
Amazon's common stock is the most commonly known type of stock. They are traded on public markets and are frequently referred to as equities. When someone buys a share of common stock, they are purchasing a small piece of ownership in the corporation. Common stockholders have voting rights on company matters such as electing board members and other decisions, as well as the ability to earn dividends if the corporation decides to issue them.
Preferred Stock
Preferred stock is another kind of stock that Amazon offers. Preferred stockholders receive a higher dividend rate than common stockholders, but they do not have the same voting rights. If a corporation issues dividends, preferred stockholders are paid before common stockholders. If the company goes bankrupt, preferred stockholders have a priority claim on company assets ahead of common stockholders.
Amazon Stock Purchase Plan
Amazon also provides an employee stock purchase plan (ESPP) for its employees. This enables workers to purchase Amazon shares at a discount price. This is not available to the general public, but only to Amazon employees.
The ownership structure of Amazon, as well as its financial health and growth prospects, can all affect the type of stock that an investor may want to buy.
As previously mentioned, Amazon has both common and preferred shares available, which means that investors must decide which type of investment is best for them. Common stockholders may be interested in having a say in corporate decisions, while preferred stockholders may be more concerned with earning a consistent dividend payout. It's important to understand how these different forms of stock operate, as well as the risks and benefits of owning them. Investors should always consult with a financial advisor before making investment decisions.
To know more about firms visit:
https://brainly.com/question/31687318
#SPJ11
Julie Company's revenues for the year are $300 and average invested capital for the year is $240. Expenses are currently 50% of revenues. Julie Company's current return on investment is
The current return on investment for Julie Company is 62.5%.
The return on investment (ROI) is a measure of profitability and is calculated by dividing the net income (revenue minus expenses) by the average invested capital. In this case, the revenues for the year are $300 and expenses are 50% of revenues, which means expenses amount to $150. Therefore, the net income is $300 - $150 = $150. The average invested capital for the year is given as $240.
To calculate the ROI, we divide the net income by the average invested capital: ROI = ($150 / $240) * 100% = 62.5%.
So, the current return on investment for Julie Company is 62.5%.
You can learn more about return on investment at
https://brainly.com/question/11913993
#SPJ11
Given the following information, calculate the net operating income assuming below-line treatment of capital expenditures: property: 4 office units, contract rents perunit: $2,500 per month; vacancy and collection losses: 15%; operating expenses: $42,000, capital expenditures: 10%. Please show your work
With a net operating income (NOI) of $60,000 after taking into account the final disposal of capital expenditures.
To calculate net operating income (NOI) given the capital expenditure treatment below, it is necessary to consider real estate rental income, vacancy and recovery losses, and operating expenses. Here is the breakdown of the calculation:
Rental income:
Number of office units:
Four
Contract rent per unit:
$2,500/month
Total monthly rental income:
4 units * $2,500 = $10,000
Annual rental income:
$10,000 * 12 = $120,000
Vacancy and collection loss:
Vacancy rate and collection loss rate:
15D44 Vacancies and Recovery Losses:
$120,000 * 0.15 = $18,000
Effective gross income:
Effective Gross Income (EGI) = annual rental income – vacancies and recovery losses
EGI = $120,000 – $18,000 = $102,000
Operating expenses:
Operating expenses:
$42,000
Net operating income:
Net Operating Income (NOI) = EGI – Operating Expenses
NOI = $102,000 – $42,000 = $60,000
investment:
Investment rate:
10.Capital investment:
$102,000 * 0.10 = $10,200
To know more about capital expenditures visit :
https://brainly.com/question/32154085
#SPJ4
onstruct a PERT chart from the following task table ( make sure
you also put TE and TL and slack time)
0 Time Estimate in (weeks) R P 1 1 2 3 2 3 3 5 5 2 4 4 1 1 2 1 2 4 4 4 6 8 3 2 Estimated Time (O+4R+6)/6 1.83 3.3 3.3 3.3 5 5 2.5 1.8 Preceeding Activity 1 1 2,3 4 4 6 5,7
In the PERT chart, the following data used the formula i.e., Total Slack = LF-EF or LS-ES.
An effective project management tool for planning, coordinating, and scheduling work within a project is a PERT chart, often known as a PERT diagram.
Project managers can analyze each individual job in the project by using the graphical depiction of the project's chronology that is provided.
The calculation for TE(Early Start and Early Finish) and TL(Late Start and Late Finish) is:
Expected time = (O + 4×R + P) / 6
Therefore, the formula is used to calculate the PERT chart as follows:
Early Start (ES) = Maximum (or Highest) EF value from immediate Predecessor(s)
Early Finish (EF) = ES + Duration
Late Start (LS) = LF – Duration
Late Finish (LF) = Minimum (or Lowest) LS value from immediate Successor(s)
Total Slack = LF-EF or LS-ES
The following calculation is shown in the figure.
To know more about the PERT chart, visit:
https://brainly.com/question/31760663
#SPJ4
Your view of the barriers or enablers to making project management and your study more effective in the future with regard to critical thinking.
Critical thinking is a critical component of project management. When project managers employ critical thinking skills, they are better prepared to confront challenges and execute the project more effectively.
The following are some of the barriers and enablers that might make project management and study more effective in the future regarding critical thinking:
Barriers to effective project management with regard to critical thinking include:Lack of critical thinking training: Lack of training may prevent project managers from grasping the true value of critical thinking. As a result, project managers may disregard critical thinking when they face difficulties, resulting in negative outcomes.Lack of interest in innovation and creative thinking: Project managers must maintain a strong interest in innovation and imaginative thinking to utilize critical thinking to its full potential.Individuals' biases: Project managers' biases might influence their decision-making, which can lead to undesirable consequences.Enablers to effective project management with regard to critical thinking include:Providing critical thinking training:Project managers will be better prepared to incorporate critical thinking into their projects if they have been educated and trained in this area.Breaking down problems: Project managers can use their critical thinking abilities to break down issues into manageable parts. This will help them to make more well-informed decisions.Increased involvement of stakeholders: When stakeholders are actively engaged, they can provide a fresh perspective on project management and help project managers identify previously overlooked obstacles or opportunities. This can significantly improve project outcomes.Learn more about critical thinking at:
https://brainly.com/question/29976333
#SPJ11
jason has expertise in change management processes. jason can be classified as a(n) ______.
a. OD consultant
b. top manager
c. strategist
d. entrepreneur
e. HR specialist
Jason has expertise in change management processes. jason can be classified as a(n) HR specialist. The correct option is e.
1. OD ConsultantOrganizational Development (OD) consultants are experts in change management, and they work with organizations to enhance their overall performance. They can be internal or external consultants. However, in this context, there is no indication that Jason works as an OD consultant; hence we can eliminate this option.
2. Top ManagerTop managers are responsible for setting organizational goals and objectives, and they make strategic decisions to achieve these objectives. They are accountable for ensuring that the organization operates smoothly and effectively. Although Jason has expertise in change management processes, there is no evidence to suggest that he occupies a top management position. Therefore, we can rule out this option.
3. StrategistStrategists are professionals who develop and implement business strategies. They are responsible for planning and executing strategic initiatives that will help the organization to achieve its goals and objectives. While Jason may be involved in planning and implementing change management processes, there is no information to indicate that he is a strategist; hence we can eliminate this option.
4. EntrepreneurEntrepreneurs are individuals who create and develop new businesses or products. They are risk-takers who have a vision for the future and are willing to take the necessary steps to make it a reality. There is no indication in the statement that Jason is an entrepreneur, so we can eliminate this option.
5. HR SpecialistHuman Resource (HR) specialists are responsible for managing the organization's workforce. They oversee recruitment, training, and development programs, and they ensure that employees are working in compliance with company policies and procedures. Since Jason has expertise in change management processes, it is possible that he is an HR specialist who has specialized in change management. Therefore, we can conclude that the correct option is (e) HR specialist.
For more such questions on management
https://brainly.com/question/1276995
#SPJ8
in the years preceding the 2008 financial crisis, borrowers did not always need to provide proof of employment or income on mortgage loan applications. we now refer to these as _______________ loans.
In the years preceding the 2008 financial crisis, borrowers did not always need to provide proof of employment or income on mortgage loan applications. We now refer to these as "stated income" or "no-doc" loans.
During the housing bubble leading up to the 2008 financial crisis, lenders relaxed their underwriting standards, and some mortgage loans were issued without requiring borrowers to provide proper documentation of their income or employment.
These loans were commonly referred to as "stated income" or "no-doc" loans. Borrowers could simply state their income on the loan application without providing any supporting documentation. This lax lending practice contributed to the subprime mortgage crisis and the subsequent financial meltdown in 2008.
To learn more about financial crisis refer here:
https://brainly.com/question/32368340#
#SPJ11
Mechanical ventilation, 18 consecutive hours following endotracheal intubation 17. PROCEDURE: Extracorporeal membrane oxygenation (ECMO) peripheral veno-arterial membrane method (Continued on next page) 18. PROCEDURE: CPAP (continuous positive airway pressure), 48 hours
Mechanical ventilation is a medical intervention that assists people to breathe when they are unable to do so on their own. It is used when a patient cannot breathe sufficiently due to a variety of conditions such as an obstructed airway, respiratory distress, and respiratory muscle fatigue.
When a patient undergoes endotracheal intubation, they are unable to breathe, and mechanical ventilation is utilized to aid their breathing process. It is done for 18 consecutive hours following endotracheal intubation.
Extracorporeal membrane oxygenation (ECMO) is a life support technique that is used when a person's heart or lungs are not functioning properly. The peripheral veno-arterial membrane method is used when the patient's heart is unable to pump blood efficiently.
It involves circulating blood outside of the body through an ECMO machine that provides oxygen to the blood and removes carbon dioxide, which is then pumped back into the body.
CPAP (continuous positive airway pressure) is a treatment that helps people with breathing problems, including sleep apnea. The treatment involves wearing a mask over the nose and/or mouth that delivers pressurized air to keep the airway open during sleep. It is used for 48 hours.
To know more about ventilation refer here:
https://brainly.com/question/31440202#
#SPJ11
True or False? Briefly discuss.
d. If a firm makes zero economic profit, it has no fixed
costs.
The statement "If a firm makes zero economic profit, it has no fixed costs" is false.
This is because fixed costs are expenses that a company incurs regardless of how much it produces. Fixed costs include things like rent, property taxes, and insurance, which do not change as a result of production levels, whereas variable costs do.To understand this better, let's take an example of a toy manufacturer. If the toy manufacturer produces zero units, they would still have to pay rent on the factory they use to make their toys.
Thus, even if the toy manufacturer makes zero economic profit, they still have to pay their fixed costs. As a result, it's not true to say that if a firm makes zero economic profit, it has no fixed costs.
What is economic profit?
Economic profit is the difference between a company's total revenue and total costs, including both fixed and variable costs. Economic profit measures the financial performance of a company, taking into account both revenue and expenses. If a company's economic profit is zero, it means that its total revenue is just enough to cover its total costs, both fixed and variable.
Read more on profit here:
brainly.com/question/13800671
#SPJ11
Given the following information, determine the equivalent units of ending work in process for materials and conversion under the weighted- average method: beginning inventory of 2,700 units is 100% co
To determine the equivalent units of ending work in process for materials and conversion under the weighted-average method, we need to follow these steps:
1. Find the number of units completed and transferred out within the time period. In this case, it is given as 2,700 units.2. Find the number of units in progress at the end of the time period. In this case, it is not given, so we need to assume a value. Let's say there are 300 units in ending work in process.3. Find what percentage of materials and conversion costs are complete for those items. In this case, it is not given, so we need to assume a value. Let's say the materials are 80% complete and the conversion costs are 60% complete for the ending work in process units.4. Apply the formula to calculate equivalent units of production for materials and conversion costs:Equivalent units of production = Units transferred out + (Units in ending inventory × Percentage of completion)For materials:
Equivalent units of production = 2,700 + (300 × 80%) = 2,940For conversion:
Equivalent units of production = 2,700 + (300 × 60%) = 2,880About MaterialMaterial is a substance or thing from which something can be made from, or the stuff needed to make something. Material is an input in production.
Learn More About Material at https://brainly.com/question/4371674
#SPJ11
Clear Visions Company has 40% debt and 60% equity, as optimal capital structure. Their stock price is $57, last dividend distributed was $5.2, growth rate is expected as 5%, corporate tax rate is 25% and flotation costs are 10%. They can borrow at 12% rate up to $17 million, above which interest rate rises to 14%. Their expected net income for next year is $18 million, and 45% will be distributed as dividends. They have three projects under analysis: a has 19 million cost, 18% IRR, ß has 25 million cost and 16% IRR and 2 has 15 million cost and 14% IRR. a. Please calculate component costs, and break point(s). b. Please calculate WACC's. c. What will be the optimal capital budget?
For the three projects under analysis, a. component costs are debt 9% and equity 16.10%, and break point is 6.47%. b. The WACC's is 12.90%. c. The optimal capital budget is $15,000,000..
a. Calculation of component costs
1. Debt:
Wd = D/(D+E)
Wd = 40%
D = $17,000,000(1 - 10%) = $15,300,000
E = $23,000,000
Cost of Debt before-tax rate = rd = 12%
Corporate Tax Rate = T = 25%
Cost of Debt after-tax rate = rd(1-T)
rd(1-T) = 12%(1-25%) = 9%
2. Equity:
We will use the CAPM model to calculate the cost of equity as follows:
CAPM Model: Ke = Rf + β * (Rm - Rf)
Where, Ke = cost of equity, Rf = Risk-Free rate = 2.50%, β = beta coefficient, Rm = Expected Market return = 12.00% (given in the question)
Ke = 2.50% + 1.40*(12.00% - 2.50%) = 16.10%
Weighted Average Cost of Capital (WACC)
WACC = (1 - T)*rd * Wd + Ke * We
WACC = (1 - 25%)*9%*40% + 16.10%*60%
WACC = 12.90%
3. Breakpoints
We can calculate Breakpoints as follows:
BPN1 = amount of financing at which the before-tax cost of debt rises above the cost of equity. To calculate the breakpoint, we can use the following formula:
BPN1 = D/(D+E)*rd
Before-tax cost of debt rises above the cost of equity, when D/(D+E)*rd > KeBPN1 = $15,300,000/($15,300,000 + $23,000,000)*12%
BPN1 = 7.49%
BPN2 = amount of financing at which the before-tax cost of debt rises above 14%.
To calculate the breakpoint, we can use the following formula:
BPN2 = D/(D+E)*rd
BPN2 = $15,300,000/($15,300,000 + $23,000,000)*14%
BPN2 = 6.47%
b. Calculation of WACC
WACC = (1-T)*rd*Wd + Ke*We
WACC = (1-25%)*9%*40% + 16.10%*60%
WACC = 12.90%
c. Calculation of optimal capital budget
To determine the optimal capital budget, we need to calculate the NPV and IRR of each project, and choose the projects that have positive NPV and IRR greater than the cost of capital.
Project a:
NPV = -$19,000,000 + $18,000,000 / (1 + 12.9%) + $19,000,000 * 18% / (1 + 12.9%) ^ 2
NPV = -$2,626,343
IRR = 18%
Project β:
NPV = -$25,000,000 + $18,000,000 / (1 + 12.9%) + $25,000,000 * 16% / (1 + 12.9%) ^ 2
NPV = -$9,291,261
IRR = 16%
Project 2:
NPV = -$15,000,000 + $18,000,000 / (1 + 12.9%) + $15,000,000 * 14% / (1 + 12.9%) ^ 2
NPV = $1,399,183
IRR = 14%
We can conclude that project 2 is the optimal investment as it has the highest NPV and IRR greater than the cost of capital. Therefore, the optimal capital budget is $15,000,000.
Learn more about WACC:
https://brainly.com/question/25566972
#SPJ11
Productivity growth is also closely linked to ____________________. a. trade balance b. GDP per capita c. the average level of wages d. the current minimum wage
b. GDP per capita. Productivity growth is closely linked to GDP per capita.
Productivity measures the efficiency with which inputs (such as labor and capital) are used to produce goods and services, while GDP per capita represents the average economic output per person in a country. When productivity increases, more output can be produced with the same amount of inputs, leading to higher GDP per capita.
Trade balance (a) refers to the difference between a country's exports and imports and is not directly linked to productivity growth. The average level of wages (c) and the current minimum wage (d) are factors related to labor compensation and income distribution but do not necessarily determine productivity growth.
Learn more about GDP per capita here:
https://brainly.com/question/26659786
#SPJ11
What are the two sub-methodologies of Six Sigma? Define them
Six Sigma is a highly structured problem-solving methodology that focuses on the continuous improvement of processes and products to achieve customer satisfaction. Six Sigma has two sub-methodologies which are DMAIC and DMADV.DMAIC stands for Define, Measure, Analyze, Improve, and Control.
It is a data-driven methodology used to improve an existing process. It is used when the process has not been performing at the expected level and has the potential to be improved. The DMAIC methodology is a cyclical process consisting of five phases, and the end goal of the methodology is to achieve a Six Sigma quality level.DMADV, which is also known as DFSS (Design for Six Sigma), is a data-driven methodology used to design a new process, product, or service. It stands for Define, Measure, Analyze, Design, and Verify. This methodology is used to develop a new product, process, or service from scratch. The DMADV methodology is also a cyclical process consisting of five phases, and the end goal of the methodology is to achieve a Six Sigma quality level.
To know more about Six Sigma visit-
brainly.com/question/30592021
#SPJ11
What is the First Contact & Negotiation and Buyer Due Dilience During Negotiation on Disney and 21st Century Fox?
The first contact and negotiation between Disney and 21st Century Fox were crucial steps in the acquisition process.
In this context, first contact refers to the initial communication or expression of interest by one party to the other. It could have been a formal letter, phone call, or meeting. Typically, these initial contacts are made by senior executives or representatives from both companies to discuss the possibility of a merger or acquisition.
During the negotiation phase, the two companies engaged in discussions and negotiations to determine the terms and conditions of the deal. This involved various aspects such as the valuation of 21st Century Fox, the structure of the transaction, the exchange ratio or purchase price, and any potential synergies that could be achieved through the merger.
Buyer due diligence played a crucial role during the negotiation process. Due diligence refers to the thorough investigation and analysis of the target company's financial, legal, and operational aspects to assess its overall health and value. Disney would have conducted extensive due diligence on 21st Century Fox, examining its assets, liabilities, contracts, intellectual property, legal disputes, and other key areas of interest. This process allowed Disney to gain a comprehensive understanding of the target company and identify any potential risks or opportunities associated with the acquisition.
Buyer due diligence is crucial as it helps the acquiring company to make informed decisions, assess the fair value of the target company, and negotiate from a position of knowledge and strength. It also helps in identifying any deal breakers or areas of concern that may impact the negotiation process or the final terms of the agreement.
In summary, the first contact and negotiation phase between Disney and 21st Century Fox involved initial discussions, expressions of interest, and subsequent negotiations to determine the terms of the acquisition. Buyer due diligence played a vital role in assessing the target company's value and identifying potential risks and opportunities. These steps were crucial in reaching a final agreement and completing the acquisition successfully.
for more such questions on negotiation
https://brainly.com/question/6529849
#SPJ11
It could be said that defining development as the level of output exaggerated the accomplishments of countries that achieved relatively high-income levels but did little to raise overall living standards (as has been the case for some oil-exporting countries). However, it can also be said that measures such as the HDI that emphasize social indicators also unfairly exaggerate the accomplishments of countries that accomplish much in terms of education health and related physiological attributes of the population (as many post-communist countries have) but remain unfree in other spheres? Can an argument still be made for the HDI and GDI? (Note: Make sure to learn how to calculate HDI and GDI using numbers).
One could still argue for the HDI and GDI. Though HDI's social indicators are flawed in their complete neglect of individual freedoms and equal rights, it is important to consider these indicators as they provide an idea about the overall development of a country. Similarly, GDI's emphasis on gender-based inequalities, it is still an important tool to highlight the various areas where improvements can be made for equal distribution of benefits of development.
HDI is defined as the geometric mean of normalized indices for three aspects of human development, namely, longevity (measured by life expectancy at birth), educational attainment (measured by the adult literacy rate and the combined primary, secondary, and tertiary gross enrollment ratio), and real per capita income. In other words, it combines three dimensions of human development—longevity, knowledge, and income—into a single index. The Human Development Index ranges from 0 to 1. A higher value indicates greater human development. The Gender Development Index (GDI) was introduced in 1995 to address the failure of the HDI to reflect gender-based inequalities. The GDI is defined as the HDI adjusted downward for gender inequality. The GDI is equal to the HDI multiplied by the gender-related development index (GDI), which is defined as the ratio of female to male HDI values. A value of less than one for the GDI indicates that women are disadvantaged in terms of the three dimensions of human development relative to men.
Know more about HDI and GDI, here:
https://brainly.com/question/32083533
#SPJ11
4. an organization
has a loaned BD 820,000 to buy the needed machines. The loan holds
an interest rate of 5% per year and is to be returned in equal
payments over the next seven years. calculate
The annual equal payments required to repay the loan of BD 820,000 over the next seven years at a 5% interest rate is approximately BD 68,884.62.
To calculate the equal payments for repaying the loan of BD 820,000 over seven years at an interest rate of 5% per year, we can use the present value annuity factor formula. The present value annuity factor can be calculated using the following formula:
Present Value Annuity Factor = (1 - (1 + r)^(-n)) / r
where r is the interest rate per period and n is the number of periods.
In this case, r = 5% = 0.05 and n = 7. Plugging these values into the formula, we have:
Present Value Annuity Factor = (1 - (1 + 0.05)^(-7)) / 0.05
= (1 - 1.402551) / 0.05
= 0.5954902 / 0.05
= 11.909804
To calculate the equal payments, we divide the loan amount by the present value annuity factor:
Payment = BD 820,000 / 11.909804
≈ BD 68,884.62
Therefore, the equal payments that need to be made over the next seven years to repay the loan of BD 820,000 at an interest rate of 5% per year is approximately BD 68,884.62 per year.
""
4. an organization has a loaned BD 820,000 to buy the needed machines. The loan holds an interest rate of 5% per year and is to be returned in equal payments over the next seven years. Calculate the equal payments that need to be made over the next seven years to repay the loan of BD 820,000 at an interest rate of 5% per year.
""
You can learn more about annual equal payments at
https://brainly.com/question/30526017
#SPJ11
Which of the following is true of a structural model?
It indicates that the shape of the distribution of a variable is equal both above and below the mean.
It analyzes the linear relationship between two variables by estimating coefficients for an equation for a straight line.
It is a visual representation of the relationships between the variables of interest.
It determines the best-fitting line by minimizing the vertical distances of all the points from the regression line.
It is an indicator of the importance of an independent variable in predicting a dependent variable.
The statement "It analyzes the linear relationship between two variables by estimating coefficients for an equation for a straight line" is true of a structural model.
The objective of a structural model is to analyze the relationship between variables and estimate the coefficients for an equation that captures that relationship. A structural model would estimate the coefficients for a straight line equation in the case of a linear relationship between two variables typically using methods like linear regression.
In order to comprehend and quantify the relationships between variables, evaluate the effect of independent variables on a dependent variable, and predict or draw conclusions based on the estimated coefficients, structural models are used. They shed light on the dynamics and underlying structure of the variables under investigation.
Learn more about structural model at:
brainly.com/question/28423822
#SPJ4
briefly introduce the features of international business
negociation
International business negotiation is a term used to describe the process of bargaining between two or more parties from different countries or cultures in order to achieve a mutually acceptable agreement.
The following are the features of international business negotiation:1. Cross-cultural communication: International business negotiations require communicating effectively with individuals from different cultures. Knowledge of foreign markets: In order to negotiate successfully, one must have a good understanding of the foreign markets one is dealing with.The complexity of the negotiation process: International business negotiations are usually more complicated than domestic negotiations because of the number of factors that must be taken into account.
Understanding legal and political environments: Negotiators must be familiar with the legal and political environments of the countries where they will be conducting business. Managing interpersonal relationships: Building and maintaining interpersonal relationships is a crucial part of the negotiation process, particularly in international negotiations. Negotiating across language barriers: Negotiators must be able to overcome language barriers and communicate effectively, both orally and in writing, in a foreign language.
To learn more about Negotiation visit here:
brainly.com/question/32450750
#SPJ11
Why might the revenue and cost figures shown on a standard statement of comprehensive income not be representative off the actual inflow and outflow that occurred during a period? Give at least three specific examples and discuss.
A statement of comprehensive income displays the income and expenses of a company during a particular period. It is used to calculate the revenue, cost of goods sold, gross profit, operating income, and net income. The numbers given on a statement of comprehensive income are based on the assumption that the firm follows the matching concept.
The matching concept is a principle in accounting that attempts to match expenses with revenues during a specified period. The financial statements' precision is affected by any transactions that deviate from this norm. As a result, the revenue and cost figures shown on a standard statement of comprehensive income may not represent the actual inflow and outflow that occurred during a period. Three examples are:
1. Non-cash transactions
On a statement of comprehensive income, non-cash transactions are included. It is a form of exchange in which cash is not exchanged. Depreciation expense is an example of a non-cash transaction. A company's profits may be increased by recording a significant amount of depreciation, which is a non-cash transaction. When analyzing the company's income, it's crucial to keep in mind that this transaction did not include any cash inflows or outflows.
2. Timing differences
The timing differences are another cause of a discrepancy between a statement of comprehensive income and actual cash inflows and outflows. Revenue recognition is an example of a timing difference. When the business has an accrued revenue, it means it has earned revenue but has not yet received cash for it. A company's financial statements will reflect the accrual of this revenue. As a result, the revenue reported on the statement of comprehensive income may not correspond to the actual cash inflows from the company's operations.
3. Extraordinary items
Extraordinary items are significant, infrequent, and unusual events or transactions that are not part of a company's regular activities. They could be one-time events such as natural disasters, fire, or a lawsuit settlement. If a company has an extraordinary item, it will be reported separately on the statement of comprehensive income. These events can have a significant impact on a company's income statement.
As a result, the revenue and expense figures shown on the statement of comprehensive income may not be indicative of the actual inflows and outflows for a period.
Learn more about inflows visit:
brainly.com/question/23722787
#SPJ11
Communication among employees at social gatherings tends to , _________________________whether the gatherings are sponsored by the employer or not.
A. Encourage vertical but not horizontal communication B. Promote a strong organizational culture C. Generate negative interpersonal relations
D. Create a grapevine where one does not exist
The correct option is D. Create a grapevine where one does not exist.
Communication among employees at social gatherings tends to create a grapevine where one does not exist, whether the gatherings are sponsored by the employer or not. The grapevine is a form of informal communication system in an organization that is often gossipy and unreliable. It is usually based on rumors, hearsay, and informal conversations among employees. It can transmit information quickly, but it can also create misunderstandings and false beliefs.The grapevine is an essential part of organizational communication. It provides a means for employees to exchange information and ideas outside of formal communication channels. The grapevine can help employees stay informed about important issues in the organization and can also provide social support. However, it can also spread misinformation and rumors that can be harmful to the organization.Communication among employees at social gatherings can create a grapevine where one does not exist because employees are more relaxed and open outside of work. They may share information and opinions that they would not share in a formal setting. This can lead to the spread of rumors and other forms of gossip that can be damaging to the organization.
To know more about employees visit:
https://brainly.com/question/18633637
#SPJ11
Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000, Project A is expected to yield annual income of $20,000 per year and net cash flow of $70,000 per year for the next five years. Compute Project A's accounting rate of return.
Accounting Rate of Return (ARR) is a capital budgeting metric that is used to determine the profitability of a project. Project A's accounting rate of return is 22.86%
To calculate Project A's accounting rate of return, we can use the following formula:
ARR = (Average Annual Income / Initial Investment) × 100
Where: Average Annual Income = (Total Income - Salvage Value) / Number of Years
Total Income = Net Cash Flow × Number of Years
Let's now calculate the accounting rate of return for Project A using the given data.
Initial Investment (I) = $280,000
Salvage Value (S) = $30,000
Net Cash Flow (NCF) = $70,000
Number of Years (n) = 5
Total Income = Net Cash Flow × Number of Years
= $70,000 × 5
= $350,000
Average Annual Income = (Total Income - Salvage Value) / Number of Years
= ($350,000 - $30,000) / 5
= $64,000
Now, let's substitute these values into the ARR formula
ARR = (Average Annual Income / Initial Investment) × 100
= ($64,000 / $280,000) × 100
= 22.86%
Therefore, Project A's accounting rate of return is 22.86%.
To know more about ARR visit :
brainly.com/question/31851841
#SPJ11
TRUE / FALSE. "The
destination marketing environment is a complex system consisting of
numerous stakeholders, external opportunities, threats, and
trends.
The given statement "The destination marketing environment is a complex system consisting of numerous stakeholders, external opportunities, threats, and trends" is true because destination marketing is the promotion of a place, city, state, or nation to potential visitors.
Destination marketing is a technique that incorporates aspects of marketing and advertising to entice visitors to choose a particular destination for their holiday or vacation. The primary goal of destination marketing is to raise brand awareness and attract visitors. Therefore, the destination marketing environment is a complex system consisting of various stakeholders, external opportunities, threats, and trends.
Stakeholders are individuals or organizations that have a direct or indirect interest in a particular industry. Stakeholders are those who contribute to the organization or are impacted by its operations and activities. In destination marketing, stakeholders may include hotels, travel agencies, airlines, restaurants, and local residents. External opportunities are opportunities for growth and development in the market that may be exploited. Threats, on the other hand, are potential factors that may harm an organization. Trends, on the other hand, are shifts in customer behaviour that can be exploited or posed a risk to an organization. These three elements are essential components of the destination marketing environment.
For more about marketing:
https://brainly.com/question/27155256
#SPJ11
You purchased a stock at a price of $42.90. The stock paid a dividend of $1.59 per share and the stock price at the end of the year is $48.55. What was the dividend yield? Multiple Choice 4.45% 13.17%
The dividend yield for the stock is 3.70%.
The dividend yield is calculated by dividing the annual dividend per share by the stock price at the time of purchase and expressing it as a percentage.
Dividend Yield = (Annual Dividend / Stock Price) * 100
Given:
Purchase Price = $42.90
Dividend per Share = $1.59
End of Year Stock Price = $48.55
First, we need to calculate the annual dividend by multiplying the dividend per share by the number of shares held in a year:
Annual Dividend = Dividend per Share * 1
Dividend Yield = (Annual Dividend / Purchase Price) * 100
Dividend Yield = ($1.59 / $42.90) * 100
Dividend Yield = 3.70%
Learn more about dividend yield: https://brainly.com/question/30898160
#SPJ11