The Commission can sue to enjoin any violation action.
Before money or assets are transferred from one party to another in a transaction, a neutral third party is said to be keeping them. This third party is referred to as escrow. Until both the buyer and the seller have complied with the terms of the contract, the third party keeps the money.
Escrow is a legal term that refers to a financial arrangement in which a third party holds an asset or money on behalf of two other parties who are carrying out a transaction. The escrow agent is in charge of escrow accounts. Only after certain contractual duties have been fulfilled does the agent release the assets or funds. Escrow can be used to hold several types of assets, including cash and securities.
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30 POINTS! My package says Package is "Out for Delivery" since 9AM today but the scheduled delivery date is tomorrow. Usually when something is out for delivery it arrives that day and not the day after. Anyone knows whats happening?
Thanks
Answer:
maybe that delivered somewhere else or maybe it's a glitch
Which one of the followiWhich one of the following is not the element of quality of work life?
Select one:
a. Authority to do things your way
b. Safe and healthy condition
c. Legalised labour relations
d. Sufficient and fair compensationng is not the element of quality of work life
One of the following statement that is not the element of quality of work life is: a. Authority to do things your way.
Quality of Work-Life?Quality of Work-Life is the activities a person involved themselves in an work environment that has positive impact on them and as well help to shape the organization them work with which inturn enhanced their overall well being leading to quality work life.
Quality of work life is paramount for all employee or workers when it comes to workers working environment, Career Prospects, working conditions, remuneration, rewards and benefits etc.
Therefore One of the following statement that is not the element of quality of work life is: a. Authority to do things your way.
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Explain the concepts of start-up capital and working capital in a business context
Startup capital exists that entrepreneurs utilize to pay for any or all of the needed expenses involved in starting a new business. Working capital stands as a financial metric that describes operating liquidity available to a company, organization, or other entity, including governmental entities.
What is start-up capital and working capital?Startup capital exists that entrepreneurs utilize to pay for any or all of the needed expenses involved in starting a new business. This contains paying for the initial hires, acquiring office space, permits, licenses, inventory, investigation and market testing, product manufacturing, marketing, or any other operational expenditure.
Working capital stands as a financial metric that describes operating liquidity available to a company, organization, or other entity, including governmental entities. Along with fixed assets such as plants and equipment, working capital exists regarded as a portion of operating capital.
Working capital exists estimated by subtracting current liabilities from current assets, as recorded on the company's balance sheet. Current assets contain cash, accounts receivable, and inventory. Current liabilities contain accounts payable, taxes, wages, and interest owed.
Working capital exists as the difference between a company's current assets and current liabilities. Working capital stands accustomed to purchasing inventory, paying the short-term debt, and day-to-day operating expenses. Working capital stands critical since it's required to maintain a business operating smoothly.
Startup capital stands for the money used to create a business. It protects the expenses essential for getting a new company up and running, such as: Renting or leasing space and Provisioning the office.
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7. FINC 302 is a long-term debt where the face amount of each bond is GH¢ 1,000. The coupon rate is 20% to be paid semi-annually. The 5-year risk-free rate is 20% p.a. It is estimated that the risk premium appropriate to company Y is 6 percentage points
The required rate of return is 26.00% whereas the WACC is 23.00%
What is required rate of return?
The required rate of return is the rate of return that investors expect from the stock based using the Capital Asset Pricing Model(CAPM) formula shown below:
required rate of return=risk-free rate+ risk premium
risk-free rate=20%
risk premium=6%
required rate of return=20%+6%
required rate of return=26.00%
What is WACC?
WACC means weighted average cost of capital is the sum of the cost of equity and the cost of debt multiplied by their respective weights in the firm's capital structure.
WACC=(required rate of return*weight of equity)+(cost of debt*weight of debt)
Note that there is an implicit assumption in this case that equity and debt have are 50%:50%
required rate of return=26%
cost of debt=coupon rate=20%
WACC=(26%*50%)+(20%*50%)
WACC=23.00%
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Complete question with requirement:
FINC 302 is a long term debt where face amount of each bond is GH¢ 1,000. The coupon rate is 20% to be paid semi annually. The 5-year risk free rate is 20% p.a. It is estimated that the risk premium appropriate to company Y is 6 percentage point.
Calculate the required rate of return and the WACC
Power Electronics company supplies micro computer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 2500 units and this is constant throughout the year. Carrying costs are estimated to be P10 per unit per year and the ordering cost is P200 per order.
Answer:
The quanitity per order that minimizes the cost is 137.84 units.
Explanation:
The EOQ or economic order quantity is the quantity that should be ordered per order to minimize the cost of ordering and holding inventory. To calculate the number of units that should be ordered per order to minimize cost, we need to calculate the EOQ.
EOQ = √(2*D*O)/H
Where,
D is the annual demand in units
O is the ordering cost per order
H is the holding/carrying cost per unit per annum
Thus,
EOQ = √(2 * 250 * 19)/0.5
EOQ = 137.84
1. R 20 million of new investment has been added to the South African economy, the current MPS is
0.40, and tax rate (t) is 0.12. By how much will aggregate spending and income increase as a result of
the R20 million increase in investment spending (7 marks).
Answer:
Yes
Explanation:
because south Africa can't put the money on the side
As a result of the R20 million increase in investment spending, the aggregate spending and income will increase by R38.462.
What is income?
Income, which is typically stated in monetary terms, is the spending and saving opportunity acquired by an entity within a given duration. Conceptually, income is difficult to define, and different fields may have distinct definitions.
When a new investment of R 20 million had been made with the aim of income increase in the South African economy, the current MPS is 0.40, and the tax rate (t) is 0.12.
Now the question that rises is what will be the aggregate spending and income increase as a result of the R20 million increase in investment spending. For this, the calculation will be as follow:
Multiplier will be = 1/ (MPS+MRT) = 1/(0.40 +0.12) = 1/0.52 = 1.923
Thus, the aggregate spending and income increment will be = R20 * 1.923 = R38.462.
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Titan Mining Corporation has 6.3 million shares of common stock outstanding, 220,000 shares of 3.6 percent preferred stock outstanding, and 105,000 bonds with a semiannual coupon rate of 5.3 percent outstanding, par value of $1,000 each. The common stock currently sells for $73 per share and has a beta of 1.15, the preferred stock has a par value of $100 and currently sells for $83 per share, and the bonds have 17 years to maturity and sell for 107 percent of par. The market risk premium is 7.1 percent, T-bills are yielding 3.1 percent, and the company’s tax rate is 23 percent.
a.
What is the firm’s market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)
b. If the company is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flows? (Do not round intermediate calculations enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The firm’s market value capital structure is $503,910,000.
The rate the firm should use to discount the project’s cash flows is 9.33%.
a.
We will begin by finding the market value of each type of financing. We find:
Market value of debt = MVD = 105,000*($1,000)*(1.07) = $25,750,000
Market value of preferred cost = MVP = 220,000*($83) = $18,260,000
Market value of equity = MVE = 6,300,000*($73) = $459,900,000
And the total market value of the firm is:
V = $25,750,000 + 18,260,000+ 459,900,000
V = $503,910,000
b.
So, the market value weights of the company's financing are:
D/V = $25,750,000/$503,910,000 = 0.0511
P/V = $18,260,000/$503,910,000 = 0.0362
E/V = $459,900,000/$503,910,000 = 0.9127
For projects equally as risky as the firm itself, the WACC should be used as the discount rate.
First, we can find the cost of equity using the CAPM. The cost of equity is:
RE = .031 + 1.15(.071)
RE = 0.1030, or 10.03%
The cost of debt is the YTM of the bonds, so:
P0 = $1,070 = $26.50(PVIFAR%,34) + $1,000(PVIFR%,34)
R = 2.228%
YTM = 2.228% × 2
YTM = 4.46%
And the aftertax cost of debt is:
RD = (1 - .22)(.0446)
RD = .0348, or 3.48%
The cost of preferred stock is:
RP = $3.60/$73
RP = .0493, or 4.93%
Now we can calculate the WACC as:
WACC = 0.0511(.0348) + 0.0362(.0493) + 0.9127(.1003)
WACC =0.0933, or 9.33%
Hence, The firm’s market value capital structure is $503,910,000.
The rate the firm should use to discount the project’s cash flows is 9.33%.
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Using Apple as the company, how can this organization benefit from the four business intelligence capabilities? Identify the specific benefits, and how the four capabilities contribute to them.
Explain how business intelligence would improve their Customer Service function.
Explain the technologies that facilitate organizational memory capabilities.
The four capabilities of a business intelligence can be divided into:
data presentationdata analysisdata ingestiondata foundation.What is a business intelligence?This refers to the technology that allows analyzing of data and delivering of actionable information that can helps executives, managers and workers make informed business decisions.
The system of business intelligence is vital for business because it allows them to have an insight into what their competitors are doing and to allows informed & educated decisions for plans.
The business intelligence would improve Apple's Customer Service function because it helps to gain better understanding of customers. For instance, it help to predict the future buying behavior of a customer.
In conclusion, the system thus increases the overall customer satisfaction by improving interactions with your customers and understanding their needs.
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Covariance is best described as
Covariance is best described as a feature which allow for the substitution of subtype with its supertype.
What is covariance?When two or more variables that are continuous have common factors, such is termed covariance hence could be positive, negative or zero.
In other words, covariance indicates the relationship of two variables whenever one variable changes. If an increase in one variable results in an increase in the other variable.
Covariance is what gives or shows the joint relationship between two random variables.
If covariance is positive, it means that the variables move togetherIf it is negative, it means the variables don't move together.If covariance is zero, it shows there's no relationship between the variables.Learn more covariance here: https://brainly.com/question/16889222
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Consider the following information regarding Ariadne Fiberworks and the planned acquisition of a new weaving loom. The loom will cost 269,000 and will be fully depreciated over 12 years using straight-line depreciation. Operating cash flows in year 1 are anticipated to be 30,910 and will grow at 3.6% per year thereafter, and the initial investment in net working capital of 17,350 will be maintained throughout the life of the project. Assuming a 12-year life, the anticipated incremental cash flows in year 12 at the end of the project are:
Based on the operating cash flows to Ariadne Fiberworks, the net working capital, and the life of the project, the anticipated incremental cash flows in year 12 would be $62,959.61
What is the anticipated incremental cash flows?The anticipated cash flow in year 12 would be:
= Operating cash flow in year 1 x (1 + 3.6%)¹¹
= 30,910 x (1 + 3.6%)¹¹
= $45,609.61
The incremental cash flow would be:
= Anticipated cash flow + working capital
= 45,609.61 + 17,350
= $62,959.61
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The net present value (NPV) method estimates how much a potential project will contribute to
-Select-
, and it is the best selection criterion. The
-Select-
the NPV, the more value the project adds; and added value means a
-Select-
stock price. In equation form, the NPV is defined as:
CFt is the expected cash flow at Time t, r is the project's risk-adjusted cost of capital, and N is its life, and cash outflows are treated as negative cash flows. The NPV calculation assumes that cash inflows can be reinvested at the project's risk-adjusted
-Select-
. When the firm is considering independent projects, if the project's NPV exceeds zero the firm should
-Select-
the project. When the firm is considering mutually exclusive projects, the firm should accept the project with the
-Select-
NPV.
Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 8%.
0 1 2 3 4
Project A -900 620 395 200 250
Project B -900 220 330 350 700
What is Project A's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.
$
What is Project B's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.
$
If the projects were independent, which project(s) would be accepted?
-Select-
If the projects were mutually exclusive, which project(s) would be accepted?
-Select-
This answer requires that we fill in the blanks
The net present value (NPV) method estimates how much a potential project will contribute to shareholder wealthThe larger the NPV, the more value the project adds; and added value means a higher stock price.The NPV calculation assumes that cash inflows can be reinvested at the project's risk-adjusted WACCWhen the firm is considering independent projects, if the project's NPV exceeds zero the firm should accept the project. When the firm is considering mutually exclusive projects, the firm should accept the project with the higher positive NPV.What is the NPV?
In order to get the NPV we have to make the following calculations for the projects A and B.
This is calculated as
Project A
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= $355. 237
For the project B
We would have to perform similar calculation
Hence we would have
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= 378.98
From the calculations that we have done above, we can see that the value for project B is greater hence we have to choose project B.
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Oak wholly owns a material subsidiary, Birch. Birch has a material 30% interest in Willow. Oak also owns 40% of Beech, which is
material to Oak. Birch is an IESBA Public Interest Entity audit client.
Which of the following would be restricted entities?
Oak, Birch, and Willow
Birch and Willow
Oak, Birch, Willow and Beech
Birch, Willow and Beech
Confirm
According to IESBA Public Interest Entity audit client rules, the restricted entities are D. Birch, Willow, and Beech.
What is an IESBA Public Interest Entity audit client?According to the IESBA Public Interest Entity audit client guidelines, the restricted entities included Birch, Willow, and Beech.
The restricted entities have income that exceeds 10% of the consolidated incomes of the auditing firm, and they are legally related entities.
Data of Ownership Interests:Oak in Birch = 100%
Birch in Williow = 30%
Oak in Beech = 40%
Thus, the restricted entities, according to IESBA Public Interest Entity audit client rules, are D. Birch, Willow, and Beech.
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Explain to your elderly relative, who is wondering what is the global marketplace that they keep hearing about. They have also heard about "mancession", "she-economy" and the "circular economy". They are surprised by these terms and also very puzzled. Explain to them your understanding of "mancession" the "she-economy" and the "circular economy". How are these impacting or driving business in the global marketplace or not?
The global market place is simply the concept that suggests that the world is now a global unit where anyone can sell or buy anything without being hindered by the limitation of space, time, and distance.
What is Mancession?A recession that affects males more than women is referred described as a "mancession." High unemployment that disproportionately affects men is what is known as a mancession.
What is She-economy?The term She-economy is used to describe the concept that is suggestive of the fact that women are now a dominant force in the global economy. It indicates that women oversee $20 trillion in yearly global consumer expenditure, and in the following five years, that amount may increase to $28 trillion.
What is circular economy?The phrase "circular economy" describes a shift in the way resources are extracted, turned into goods, and ultimately discarded.
In a circular economy, resources are used less frequently, materials are redesigned to be less resource-intensive, and "waste" is recovered and used as a resource to create new materials and goods.
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The only way to decrease your lifestyle budget is by completely eliminating an item.
Answer:
everything just stop spending
Explanation:
if you dont buy things then as a result of abstaining from spending money you will result in having more money
Please answer the following questions: 1) Do goods that have secondary packaging influence your purchasing decisions? Why/why not?
How did Alexander and successors spread Greek culture through the Hellenistic world? Give me a short answer
Answer:
Alexander and his successors spread Greek culture by founding several dozens of new cities based on Greek cultural background in conquered areas. They inhabited those cities with Greek soldiers, philosophers, merchants, and scholars, and they encourage them to marry women from different cultures.
Suppose a certain contractor wants to maximize
[tex]\pi[/tex]
from building one bridge. The contractor uses both labor and capital, and efficient combinations of Labor and capital that are sufficient to make a bridge is by the function 0.25 L 2 1 K 2 1 , if the prices of labor (w) and capital (r) are $ 5 and $ 10 respectively. Find the least cost combination of L and K
Therefore, efficient combination (least cost combination) of L and K are[tex]$\frac{16}{\sqrt{2}}$[/tex] and [tex]$\frac{8}{\sqrt{2}}$[/tex]respectively.
What is the least cost combination of L and K?The principle of least cost combination declares that if two-factor inputs are assessed for a given output the least cost combination will be such where their inverse price ratio stands equivalent to their marginal rate of substitution.
The optimum combination of inputs that are needed to produce output at the least possible cost is named the least cost combination.
The contractor wants to build one bridge. Thus, the constraint equation can be written as
[tex]$0.25 \mathrm{~L}^{\frac{1}{2}}$[/tex]
[tex]&k^{\frac{1}{2}}=1 \\[/tex]
[tex]&\mathrm{MPL}=0.125 \mathrm{~L}^{\frac{-1}{2}} \mathrm{~K}^{\frac{1}{2}} \\[/tex]
[tex]&\mathrm{MPK}=0.125 \mathrm{~L}^{\frac{1}{2}} \mathrm{~K}^{\frac{-1}{2}}[/tex]
The equilibrium condition is[tex]$\frac{M P L}{M P K}=\frac{W}{r}$[/tex]
[tex]K^{\frac{-1}{2}}}=\frac{\$ 5}{\$ 10} \\[/tex]
[tex]&\frac{K}{L}=\frac{1}{2} \Rightarrow L=2 K[/tex]
Substituting[tex]$\mathrm{L}=2 \mathrm{~K}$[/tex]in the constraint equation we obtain
$$
[tex]&0.125(2 \mathrm{~K})^{\frac{-1}{2}} \mathrm{~K}^{\frac{1}{2}}=1 \\[/tex]
[tex]&0.125 \sqrt{2} \cdot \mathrm{K}=1 \\[/tex]
[tex]&\mathrm{~K}=\frac{1}{0.125 \sqrt{2}}=K=\frac{8}{\sqrt{2}} \\[/tex]
[tex]&\mathrm{~L}=2 \mathrm{~K} \Rightarrow \frac{16}{\sqrt{2}}[/tex]
Therefore, efficient combination (least cost combination) of L and K are[tex]$\frac{16}{\sqrt{2}}$[/tex] and [tex]$\frac{8}{\sqrt{2}}$[/tex]respectively.
The least cost is [tex]$\mathrm{C}=5\left(\frac{16}{\sqrt{2}}\right)+10\left(\frac{8}{\sqrt{2}}\right)=\$ \frac{160}{\sqrt{2}}$[/tex]
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During the past year, Stacy McGill planted a new vineyard on 150 acres of land that she leases for $30,000 a year. She has asked you as her accountant to assist her in determining the value of her vineyard operation. The vineyard will bear no grapes for the first 5 years (1–5). In the next 5 years (6–10), Stacy estimates that the vines will bear grapes that can be sold for $60,000 each year. For the next 20 years (11–30) she expects the harvest will provide annual revenues of $110,000. But during the last 10 years (31–40) of the vineyard’s life, she estimates that revenues will decline to $80,000 per year. During the first 5 years the annual cost of pruning, fertilizing, and caring for the vineyard is estimated at $9,000; during the years of production, 6–40, these costs will rise to $12,000 per year. The relevant market rate of interest for the entire period is 12%. Assume that all receipts and payments are made at the end of each year.
Based on the various costs that Stacy McGill will incur, and the present value of her revenue, the minimum price that Stacy should accept from Ric Button is $376,595.
What amount should Stacy accept?This should be the net present value of her vineyard over 40 years.
Present value of revenue from 1 - 5 years is $0 because no grapes will be grown in the vineyard.
Present value of revenue from 6 - 10 years;
= 60,000 x 3.14772
= $188,863.20
Present value of revenue from 11 - 30 years
= 110,000 x 6.40475
= $704,522.50
Present value of revenue from 31 to 40 years:
= 80,000 x 1,28146
= $102,516.80
Then find the present value of the expenses:
Present value of expenses from 1 - 5 years:
= 9,000 x 4.21236
= $37,911.28
Present value of expenses from 6 - 40 years:
= 12,000 x 10.83393
= $130,007.16
Present value of lease:
= 30,000 x 15.04629
= $451,388.70
The minimum amount Stacy should sell for is therefore:
= 188,863.20 + 704,522.50 + 102,516.80 - 37,911.28 - 130,007.16 - 451,388.70
= $376,595.
Question is:
Eric Button has offered to buy Stacy’s vineyard business by assuming the 40-year lease. On the basis of the current value of the business, what is the minimum price Stacy should accept?
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o Assume the role as the Public Relations Director for Purple Cross of North Carolina. The CEO requests that you interview the Telehealth Director about the use of Telehealth with Mrs. Smith. The CEO requests that you create one thought-provoking question for each of the following topic areas: • Meeting the health needs of Mrs. Smith • Decision-making process for technology selected for Mrs. Smith • Benefits and risks in using Telehealth technology for Mrs. Smith • Cost and staff involved in using Telehealth technology for Mrs. Smith
The thought-provoking question for each of the following topic areas are:
Meeting the health needs of Mrs. Smith (How do ensure the healthiness of Mrs. Smith?)Decision-making process for technology selected for Mrs. Smith (What steps should out Decision-making process follow?).Benefits and risks in using Telehealth technology for Mrs. Smith (What risks and benefit are in the use of technology by Mrs. Smith?)Cost and staff involved in using Telehealth technology for Mrs. Smith (What are the cost for the technology?).Who is a Public Relations Director?
The PR director is the official that is responsible for managing the communications campaigns and strategy for their organisation or client
Some of the main role of the director is to create and maintain a favorable public image for their employer or client by communicating programs, accomplishments or points of view.
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3. What is the second rule of risk management?
a. Share the risk.
b. Transfer the risk.
c. Avoid the risk.
d. Document the risk.
Typically, the _____ marketing plan covers marketing activities over a period of two to five years in the future. The _____ marketing plan, which is highly structured and detailed, is usually developed by a product manager and begins with marketing research and ends after 48 weeks with the approval of the general manager.
The long-range marketing plan enfolds marketing activities over a period of two to five years in the future.
Long-range marketing planThe annual marketing plan, which is positively structured and precise, is usually created by a product manager and begins with marketing research, and completes after 48 weeks with the approval of the general manager.
The long-term marketing strategy should enclose the "big picture" that you are trying to accomplish with your marketing efforts. Your long-term marketing plan will generally be in place for six month to a year or more.
The purpose of the long-range plan is to bypass random, non-specific growth and focus the organization's skills on those areas where it excels, such as creating high-quality consumer goods.
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GANT, a Swedish clothing brand, is a virtual organization that supplies clothes wear to Pyramid Sportswear AB.
Pyramid employs very few staff in a move to cut down costs of operations. To survive in the competitive global markets, the company must invest in rigorous monitoring of sales and stock, while keeping inventories as low as possible.
The company also realizes that it is no longer important to order for stock that it does not need.
(i) Discuss your view regarding this inventory policy. (5 marks)
(ii) Explain the assumptions that will guide in determining the adequate level of inventory.
The view regarding this inventory policy by GANT is that there'll be a reduction in the revenue of the company.
How to illustrate the information?It should be noted that inventory policies are used to determine the best way that a product can flow through a supply chain.
Here, are are informed that GANT supplies clothes to Pyramid and since Pyramid employs very few staff in a move to cut down costs of operations, it'll lead to the reduction in revenue
The assumptions that will guide in determining the adequate level of inventory include the demand and level of stocks.
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Which of the following statements about capital structure are correct? Select ALL correct answers.
A company needs to consider the current economic climate when making decisions on debt and equity proportions.
A company should always finance its business using as much debt as possible in order to optimize the capital structure.
Having too much equity may dilute earnings and the value of the original investors.
Having too little debt may increase the risk of default in repayment.
?
Having too much equity may dilute returns and the value of the original investors capital structure are correct.
What is the capital structure?
Capital structure refers to the specific mix of debt and equity used to invest a company's assets and operations. From a corporate perspective, equity denotes a more expensive, permanent source of capital with more significant financial flexibility.
What is capital structure and why is it important?
Capital structure relates to how much money—or capital—is helping a business, financing its assets, and funding its operations. It can also show company investments and capital expenditures that can affect the business's bottom line.
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a. In 2009, XYZ Enterprises negotiated and closed a long-term lease contract for newly constructed truck terminals and freight storage facilities. The buildings were constructed on land owned by the company. On January 1, 2010, XYZ took possession of the leased property. 20-year lease is effective for the period January 1, 2010, through December 31, 2029. Advance rental payments of $800,000 are payable to the lessor (owner of facilities) on January 1 of each of the first 10 years of the lease term. Advance payments of $400,000 are due on January 1 for each of the last 10 years of the lease term. XYZ has an option to purchase all the leased facilities for $1 on December 31, 2029. At the time the lease was negotiated, the fair market value of the truck terminals and freight storage facilities was approximately $7,200,000. If the company had borrowed the money to purchase the facilities, it would have had to pay 10% interest. Should the company have purchased rather than leased the facilities?
XYZ Enterprises should lease the newly constructed truck terminals and freight storage facilities instead of purchasing them.
How is the lease cost calculated?The lease cost can be calculated by finding the present value of the annual lease payments.
The present value of the annual lease payments represents the discounted value of the future cash outflows.
The PV annuity factor can be used to compute the total lease cost in present value, as follows:
Data and Calculations:Lease Option:
Interest rate = 10%
Lease period = 20 years
Lease PV Annuity Factor PV
Annual lease cost for 1st 10 years $800,000 6.145 $4,916,000
Annual lease cost for 20 years $400,000 8.514 $3,405,600
Less Annual lease cost 2nd 10 years 400,000 6.145 (2,458,000)
Total Present Value of Lease Cost = $5,863,600
Purchase Option:
Fair market value = $7,200,000
Given the present values of the two options, XYZ Enterprises is advised to lease instead of purchasing the facilities.
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child find provides quality child care for children who qualify for benefits under the individuals disabilities education act (idea).
true or false
Answer:
iiiikiopppoooooo1.6.1 suggest practical solutions on how any five of the youth risk behaviours which you have investigated can be addressed /reduced (10)
False. Child Find is a component of the Individuals with Disabilities Education Act (IDEA) that focuses on identifying and evaluating children with disabilities who may be in need of special education services. It does not provide child care services but rather assists in identifying children who may require special education support.
IDEA, which stands for Individuals with Disabilities Education Act, is a federal law in the United States that ensures children with disabilities have access to a free appropriate public education (FAPE) that meets their unique needs.
The IDEA guarantees certain rights and services to eligible students, including the provision of individualized education programs (IEPs), related services, and accommodations. It also mandates that students with disabilities be educated in the least restrictive environment possible, promoting inclusion and equal opportunities.
The IDEA aims to support and empower students with disabilities to reach their full potential and participate fully in education and society.
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Prophet Co. signed a long-term purchase contract to buy timber from the U.S. Forest Service at $300 per thousand board feet. Under these terms, Prophet must cut and pay $6,000,000 for this timber during the next year. Currently, the market value is $250 per thousand board feet. At this rate, the market price is $5,000,000. Jerry Herman, the controller, wants to recognize the loss in value on the year-end financial statements, but the financial vice president, Billie Hands, argues that the loss is temporary and should be ignored. Herman notes that market value has remained near $250 for many months, and he sees no sign of significant change. INSTRUCTIONS What are the ethical issues, if any? Is any particular stakeholder harmed by the financial vice president's decision? What should the controller do?
The ethical issue is that the financial vice president fraudulently agreed to pay $6,000,000 rather than the market price of $5,0000,000.
What are the ethical issues?From the information given, the financial vice president fraudulently agreed to pay $6 million instead of the market price of $5 million for the timber.
This is unethical due to the fact that the financial manager may collude with the seller to rip off the company the extra $1 million.
b. Is any particular stakeholder harmed by the financial vice president's decision
The vice president’s financial decision affects the shareholders of the company.
This is because the vice president is reducing the profitability of the company and low profitability means low retained earnings.
The shareholders will be affected in terms of the reduced dividends earned due to the reduced retained earnings.
c) What the controller should do
The controller should then use professional due diligence and integrity on order to ensure transparency in the dealings.
He should therefore ensure that the company does not pay the $6 million that the financial president agreed to pay.
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Peter's Pans sells cooking pans for $30 each. The company
hires workers in a competitive labor market and pays each worker
$500/week. Based on the table below, find the VMP and determine
the total number of workers Peter's Pans will hire. Explain why.
# of workers # of pans MP VMP
0 0 0 ?
1 20 20 ?
2 39 19 ?
3 57 18 ?
4 74 17 ?
5 90 16 ?
6 105 15 ?
Required:
1. Fill in the VMP for this chart.
2. How many workers will be hired?
3. Why?
The value of the VMP are 600, 570, 540, 510, 480, 450. The total workers to be hired are 4 workers because MRL > wage.
How to solve for the VMP= MP * selling price
20 * 30 = 60019 * 30 = 57018 * 30 = 54017 * 30 = 51016 * 30 = 48015 * 30 = 450This has been computed in the excel file that I have attached to the question.
2. A competitive firm is going to have to hire when the wage is equal to MRPL or MRPL is greater than the wage
based on this the labor of the firm would be at 4 units.
3. Four workers are going to be hired based on the fact that the marginal revenue of the added labor is more than the wage that was paid for the work done.
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What is the formula for cost of goods sold under LIFO?
The formula for cost of goods sold under LIFO is cost of oldest inventory purchased multiplied by the units of goods sold.
What is LIFO?LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
For example, if beginning inventory is 10 units at of an item purchased at $10 and 10 units of inventory was purchased at $20. During the course of the month 5 units of the items was sold.
Cost of goods sold = 5 x 10 = 50
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What is holistic market?
Answer:
Holistic marketing is a business marketing philosophy which considers business and all its parts as one single entity and gives a shared purpose to every activity and person related to that business.
Explanation:
Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $9,100 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $5,500 and $9,400 at the end of Years 1 and 2, respectively. In addition, Project X can be repeated at the end of Year 2 with no changes in its cash flows. Project Y has an expected life of 4 years with after-tax cash inflows of $3,800 at the end of each of the next 4 years. Each project has a WACC of 9%. What is the equivalent annual annuity of the most profitable project? Do not round intermediate calculations.
Based on the cash flows of the two projects, the equivalent annual annuity of the most profitable project is $1,866.83.
Which project is more profitable?The project that is more profitable is the project with the higher Net Present Value.
The Net Present value can be found by adding the present values of the cashflows for a project.
Project X NPV is:
= -9,100 + 5,500 / 1.11 + 8,200 / 1.11²
= $2,510.26
The NPV for Project Y is:
= -9,100 + Present value of $4,800 over 4 years at 11%
= $5,791.74
The more profitable project is therefore Project Y.
The equivalent annual annuity of the most profitable project is:
= 5,791.74 / 4 years
= $1,866.83
In conclusion, the equivalent annual annuity of the most profitable project is $1,866.83
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