A perfectly inelastic supply curve is one in which the quantity supplied is entirely unresponsive to changes in price. The price elasticity of supply for a perfectly inelastic supply curve is zero.
This indicates that when the price changes, the quantity supplied will remain unchanged.When the price elasticity of supply is zero, the supply curve is vertical, and the change in price does not affect the quantity supplied. In other words, when price increases, the quantity supplied remains constant.
In contrast, when the price decreases, the quantity supplied does not increase. This is a typical feature of goods that have a very limited supply that can't be increased to meet demand. These products have a fixed quantity available, such as antiques, rare art pieces, or designer items, and their price does not affect the quantity supplied. In the long term, the price may be adjusted, but in the short term, supply cannot change.
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On 31 December 2017, she left to London to visit her family and attended some of her personal matters. She returned to Malaysiaon the 6 January 2018 at 12 pm.
She attended a short training at Singapore on 26 December2019 to 2 January 2020.
ProfessorDr Lindy's contractwas ended on 3 April 2020 and she returnedto London afterwards.
She came back to Malaysia on 4 January2021 for a special task force. Havingcompleted the task, she left Malaysia permanently on 10 Apri1 202 at 4 pm.
Dr. Lindy traveled to London on December 31, 2017, to visit her family and attend to personal matters. She returned to Malaysia on January 6, 2018, at 12 PM. She then attended a brief training in Singapore from December 26, 2019, to January 2, 2020.
Dr. Lindy's contract was terminated on April 3, 2020, and she returned to London after that. She came back to Malaysia on January 4, 2021, for a special task force and left Malaysia for good on April 10, 2021, at 4 PM.Dr. Lindy left for London on December 31, 2017, to visit her family and attend to personal matters.
She returned to Malaysia on January 6, 2018, at 12 PM. She attended a short training in Singapore from December 26, 2019, to January 2, 2020. Dr. Lindy's contract was terminated on April 3, 2020, and she returned to London after that. On January 4, 2021, she returned to Malaysia to serve on a special task force. She left Malaysia for good on April 10, 2021, at 4 PM.
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Trade that is mutually beneficial and advantageous. Both countries can profit when they trade with one another and grow output in their areas of ...
Both countries can benefit from this type of trade because it fosters economic growth, promotes job creation, and increases the availability of goods and services
International trade is an important factor in economic growth and development. Trade that is mutually beneficial and advantageous is a system in which both countries are benefited. The concept of free trade benefits both countries in many ways. It is a system that is based on a mutual understanding of the needs of each country.
When countries trade, they can grow their output and enhance their economic development. With international trade, a country can take advantage of the resources of another country and use them to develop its own economy. It can also access new markets and expand its market reach, resulting in increased profits.
This type of trade is essential for global economic development and helps to ensure that countries can grow and prosper together.
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the current market price of a share of at&t stock is 50. if a put option on this stock has a strike price of q the put
The strike price (q) of a put option on AT&T stock is not provided in the question. Therefore, it is not possible to determine the value of the put option or its relationship to the current market price of AT&T stock.
A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified quantity of an underlying asset (in this case, AT&T stock) at a predetermined price (the strike price) within a specified period of time. The value of a put option depends on several factors, including the difference between the strike price and the current market price of the underlying asset, the time remaining until expiration, and market volatility.
Without the strike price (q) of the put option, it is not possible to provide a specific answer regarding its value or its relationship to the current market price of AT&T stock. To determine the value of the put option, one would need to know the strike price and consider other relevant factors.
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Which of the following would be likely to lead to a decrease in the natural rate of unemployment? OA. an increase in the number of teenage workers in the workforce B. a decrease in the length of time during which people can receive unemployment benefits C. a prolonged recession D. all of the above
B. a decrease in the length of time during which people can receive unemployment benefits.
The natural rate of unemployment refers to the rate of unemployment that exists when the economy is at its potential output and there is no cyclical unemployment. It is determined by structural and frictional factors rather than by temporary fluctuations in the economy.
Option A, an increase in the number of teenage workers in the workforce, does not necessarily lead to a decrease in the natural rate of unemployment. The natural rate is influenced by structural factors such as labor market institutions and demographics, and an increase in teenage workers alone does not directly impact these factors.
Option C, a prolonged recession, is also not likely to lead to a decrease in the natural rate of unemployment. A recession typically results in an increase in the overall unemployment rate, including the cyclical component, but it does not necessarily change the underlying structural and frictional factors that determine the natural rate.
Option B, a decrease in the length of time during which people can receive unemployment benefits, can potentially lead to a decrease in the natural rate of unemployment. By reducing the duration of unemployment benefits, individuals may be incentivized to actively search for work and accept job offers more quickly, reducing the frictional unemployment component of the natural rate.
Therefore, the correct answer is B. a decrease in the length of time during which people can receive unemployment benefits.
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Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.80 10,000 units Sprockets 0.40 40,000 units Additional information about the company follows: Hubs require $32 in direct materials per unit, and Sprockets require $18. The direct labor wage rate is $15 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Total Machine setups (number of setups) $ 72,000 100 300 400 Special processing (machine-hours) $ 200,000 5,000 0 5,000 General factory (organization-sustaining) $ 816,000 NA NA NA Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system.
The unit product cost for Hubs is $18,076, and the unit product cost for Sprockets is $40 according to the ABC system.
Compute the activity rate for each activity cost pool:
To calculate the activity rate for each activity cost pool, divide the total overhead cost of each activity by its respective activity measure.
Activity Rate for Machine setups:
Activity Rate = Total Machine setups cost / Total number of setups
Activity Rate = $72,000 / 400
Activity Rate = $180 per setup
Activity Rate for Special processing:
Activity Rate = Total Special processing cost / Total machine-hours
Activity Rate = $200,000 / 5,000
Activity Rate = $40 per machine-hour
Determine the unit product cost of each product according to the ABC system:
The unit product cost is calculated by adding the direct materials cost, direct labor cost, and the allocated overhead cost for each activity.
For Hubs:
Direct Materials Cost per unit = $32
Direct Labor Cost per unit = Direct Labor-Hours per Unit * Direct Labor Wage Rate
Direct Labor Cost per unit = 0.80 * $15
Direct Labor Cost per unit = $12
Overhead Cost per unit = Machine setups cost per unit + Special processing cost per unit
Overhead Cost per unit = (Machine setups activity rate * Number of setups) + (Special processing activity rate * Direct Labor-Hours per Unit)
Overhead Cost per unit = ($180 * 100) + ($40 * 0.80)
Overhead Cost per unit = $18,000 + $32
Overhead Cost per unit = $18,032
Unit Product Cost for Hubs = Direct Materials Cost per unit + Direct Labor Cost per unit + Overhead Cost per unit
Unit Product Cost for Hubs = $32 + $12 + $18,032
Unit Product Cost for Hubs = $18,076
For Sprockets:
Direct Materials Cost per unit = $18
Direct Labor Cost per unit = Direct Labor-Hours per Unit * Direct Labor Wage Rate
Direct Labor Cost per unit = 0.40 * $15
Direct Labor Cost per unit = $6
Overhead Cost per unit = Special processing cost per unit
Overhead Cost per unit = Special processing activity rate * Direct Labor-Hours per Unit
Overhead Cost per unit = $40 * 0.40
Overhead Cost per unit = $16
Unit Product Cost for Sprockets = Direct Materials Cost per unit + Direct Labor Cost per unit + Overhead Cost per unit
Unit Product Cost for Sprockets = $18 + $6 + $16
Unit Product Cost for Sprockets = $40
Therefore, the unit product cost for Hubs is $18,076, and the unit product cost for Sprockets is $40 according to the ABC system.
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Question 2 Screen Ltd makes phone accessories and the following budget for the first half financial period: Selling price per unit RM 18 Variable production cost per unit RM 3.50 Fixed production costs RM 33,120 Fixed selling and administration costs RM 21,200 Sales 15,000 units (Jan-June) c) If the company plans to increase the sales volume by 10% for the second half year. This would affect the selling price (increase by 5%) and variable cost (increase by 10%). Calculate the new break-even (unit and value).
The new break-even point for Screen Ltd, considering a 10% increase in sales volume, a 5% increase in selling price, and a 10% increase in variable cost, would be [Unit: 21,196; Value: RM 381,312].
To calculate the new break-even point, we need to consider the changes in sales volume, selling price, and variable cost.
First, let's calculate the new sales volume for the second half year by increasing the initial sales volume by 10%.
New sales volume = 15,000 units + (10% of 15,000 units) = 15,000 units + 1,500 units = 16,500 units.
Next, let's calculate the new selling price by increasing the initial selling price by 5%.
New selling price = RM 18 + (5% of RM 18) = RM 18 + RM 0.90 = RM 18.90.
Now, let's calculate the new variable cost by increasing the initial variable cost by 10%.
New variable cost = RM 3.50 + (10% of RM 3.50) = RM 3.50 + RM 0.35 = RM 3.85.
To calculate the new break-even point in units, we use the formula:
Break-even units = Fixed costs / (Selling price per unit - Variable cost per unit)
Fixed costs = Fixed production costs + Fixed selling and administration costs
Fixed costs = RM 33,120 + RM 21,200 = RM 54,320
Break-even units = RM 54,320 / (RM 18.90 - RM 3.85) ≈ 3,281.75 ≈ 3,282 units (rounded up)
To calculate the new break-even point in value, we multiply the break-even units by the new selling price.
Break-even value = Break-even units * New selling price
Break-even value = 3,282 units * RM 18.90 = RM 62,015.80 ≈ RM 62,016
Therefore, the new break-even point for Screen Ltd, considering the given changes, is approximately 3,282 units or RM 62,016 in value.
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when, after close of escrow, the purchaser discovered that the seller's broker had materially misrepresented the income generated by the property, the purchaser could:
The purchaser could potentially pursue legal action against the seller's broker for material misrepresentation of income generated by the property, seeking remedies such as rescission (canceling the contract), damages, or specific performance.
However, the specific options available would depend on the laws of the jurisdiction and the terms of the purchase agreement. It is advisable for the purchaser to consult with a real estate attorney to assess their rights and determine the best course of action.
After the close of escrow, if the purchaser discovers that the seller's broker provided false or misleading information about the income generated by the property, the purchaser has legal recourse. They may choose to take legal action against the broker for material misrepresentation. This could involve filing a lawsuit seeking remedies such as rescission, which would cancel the contract and return the parties to their original positions, or damages to recover any financial losses caused by the misrepresentation. Another potential remedy is specific performance, where the court orders the broker to fulfill their obligations as outlined in the contract. The available options will depend on the applicable laws and the terms of the purchase agreement. It is crucial for the purchaser to consult with a real estate attorney who can provide guidance based on their specific circumstances.
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4 6 8 10 110 20 153 1 173-186 120 22 123 25 26 Moving to another question will save this response. uestion 21 3 "When an organization reduces the number of supplies its dealing with from 3000 suppliers, to less than 300 The organization has reduced its environmental dynamism complexity richness depth Moving to another question will save this response
The answer to the given question is that:When an organization reduces the number of supplies it's dealing with from 3000 suppliers to less than 300, the organization has reduced its supplier complexity.
The supplier complexity is the number of suppliers that the organization has to deal with.When an organization reduces the number of supplies its dealing with from 3000 suppliers to less than 300, the organization has reduced its supplier complexity.Moving to another question will save this response.4 6 8 10 110 20 153 1 173-186 120 22 123 25 26
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Bay off Sheila Abney opened a dormitory locator business called Room Finders near a college campus. During the test moth of operations, November 2019, Sheila had the following transactions. 1) Invested $10,600 of personal funds to start the business. 2) Incurred travel expenses for $840, which will be paid later. 3) Paid $680 cash for maintenance expenses 4) Received $4,800 cash for services provided to clients. 5) Paid $840 related to the purchase in transaction 2. 6) Paid three months of office rent in advance, in the amount of $1,500. 7) Incurred $570 of utilities expenses, which will be paid next month. 8) Received $980 cash from a customer for services to be provided in two months. 9) Provided $1,040 in services for a customer who will pay later. 10) Recognized one month of office rent that was prepaid. 11) Sheila withdrew $1,030 cash for personal use. 12) Purchased a second-hand car worth $6,150 for business use with cash. 13) Received $630 from the customer in transaction 9. Required Prepare a T-Account worksheet. Do not enter dollar signs or commas in the input boxes. Use the negative sign for negative values The T-Account fields are labeled by transaction number Record each transaction by entering the value into the corresponding I-Account field 14°C B Contact us! 221 AM 1/28/2002 440
Based on the provided information, here is a T-Account worksheet showing the transactions for Sheila Abney's dormitory locator business, Room Finders, for the month of November 2019:
In this T-Account worksheet, the debit (+/-) column represents the increases or decreases in the respective accounts due to the transactions, and the credit (+/-) column represents the decreases or increases in the respective accounts. Please note that I have made assumptions about the accounts affected by each transaction based on the information provided.
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Prove that the estimated residuals from a simple OLS regression and the corresponding sample values of X are uncorrelated; that is, summation X_iu_i=0, where u_i, is the estimated residual.
To prove that the estimated residuals (u_i) from a simple Ordinary Least Squares (OLS) regression and
the corresponding sample values of X (X_i) are uncorrelated, we need to show that the sum of their product is zero:Σ(X_i * u_i) = 0 In a simple linear regression model with one independent variable (X) and one dependent variable (Y), the estimated residuals (u_i) can be calculated as the difference between the observed Y values (Y_i) and the predicted values (Ŷ_i) based on the regression equation:u_i = Y_i - Ŷ_iThe predicted values (Ŷ_i) can be calculated using the regression equation:Ŷ_i = β_0 + β_1 * X_i Where β_0 is the intercept and β_1 is the slope coefficient. Substituting the values of Ŷ_i and u_i into the equation Σ(X_i * u_i), we get: Σ(X_i * (Y_i - Ŷ_i)) Expanding this equation,
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The GFA Company, originally established 16 years ago to make football, is now a leading producer of tennis balls, baseballs, footballs, and golf balls. Nine years ago, the company introduced "High Flite," its first line of high-performance golf balls. GFA management has sought opportunities in whatever businesses seem to have some potential for cash flow. Recently Mr. Dawadawa, vice president of the GFA Company, identified another segment of the sports ball market that looked promising and that he felt was not adequately served by larger manufacturers.As a result, the GFA Company investigated the marketing potential of brightly coloured bowling balls. GFA sent a questionnaire to consumers in three markets: Accra, Kumasi, and Koforidua. The results of the three questionnaires were much better than expected and supported the conclusion that the brightly coloured bowling balls could achieve a 10 to 15 percent share of the market. Of course, some people at GFA complained about the cost of test marketing, which was GH¢ 250,000. Also, the feasibility test carried out by analysts to assess the viability of the project cost GH¢ 100,000. In any case, the GFA Company is now considering investing in a machine to produce bowling balls. The bowling balls would be manufactured in a building owned by the firm and located near Madina. This vacant building and the land can be sold for GH¢ 150,000 after taxes.Working with his staff, Dawadawa is preparing an analysis of the proposed new product. He summarizes his assumptions as follows: The cost of the bowling ball machine is GH¢100,000 and it is expected to last five years. At the end of five years, the machine will be sold at a price estimated to be GH¢ 30,000. The machine is depreciated on straight-line basis. The company is exempt from capital gains tax. Production by year during the five-year life of the machine is expected to be as follows: 5,000 units, 8,000 units, 12,000 units, 10,000 units, and 6,000 units. The price of bowling balls in the first year will be GH¢20. The bowling ball market is highly competitive, so Dawadawa believes that the price of bowling balls will increase at only 2 percent per year, as compared to the anticipated general inflation rate of 5 percent.Conversely, the plastic used to produce bowling balls is rapidly becoming more expensive. Because of this, production cash outflows are expected to grow at 10 percent per year. First-year production costs will be GH¢10 per unit. Also, ‘Soft Flite’ a substitute product, is expected to have a drop in its sales by 1000 units per annum. The selling price per unit of existing products is GH¢5 while the variable cost is GH¢ 4. Dawadawa has determined, based on GFA’s taxable income, that the appropriate incremental corporate tax rate in the bowling ball project is 34 percent.Like any other manufacturing firm, GFA finds that it must maintain an investment in working capital. Management determines that initial investment (at Year 0) in net working capital of GH¢10,000 is required. Subsequently, net working capital at the end of each year will be equal to 10 percent of sales for that year. In the final year of the project, net working capital will decline to zero as the project is wound down. In other words, the investment in working capital is to be completely recovered by the end of the project’s life.GFA will finance the total investment required for the production of the balls (including working capital investment) by issuing 100,000 new common stocks at GH¢ 2 per share from its existing shareholders. A total of GH¢ 200,000 is expected to be raised from the rights issue. It expects to finance the remaining from a bank loan from GDB at a rate of 12%. Mr. Dawadawa has estimated the beta of the project to be 2.5 and the average return for stocks traded on the Ghana Stock Exchange to be 10% while the rate on Government of Ghana traded Treasury bills is 5%.DC: ACD01-F004Required:a. Evaluate the project using NPV and advise the Management of GFA whether or not it should introduce the bowling balls (10 marks)b. Discuss three (3) qualitative factors that the Management of GFA might have to consider before making a decision. (3 marks)c. What does the beta of the project represent and how will higher project betas affect your decision?(2 marks)d. Compare and contrast the beta of the project and explain how it will affect the return on investment of the project. (3 marks)e. How do you expect the financing of the project to be treated in the project cash flow estimation?
Answer:
To evaluate the project using NPV, we need to calculate the net cash flows for each year and discount them back to the present value using the appropriate discount rate.
Explanation:
The NPV is the sum of the present values of all cash flows.
Year 0:
Initial investment in net working capital: -GH¢10,000
Rights issue: +GH¢200,000
Bank loan: +GH¢ (Total Investment - GH¢200,000)
Years 1-5:
Net cash flows = (Sales - Variable Costs) * (1 - Tax Rate) - Production Costs - Increase in Working Capital
Year 5:
Net cash flows = (Sales - Variable Costs) * (1 - Tax Rate) - Production Costs - Increase in Working Capital + Salvage Value of the Machine
Discount rate = Cost of equity = 10% (given)
Calculate the net cash flows for each year based on the provided information and discount them back to the present value using the discount rate. Then sum up the present values to determine the NPV. If the NPV is positive, the project is financially viable and should be introduced. If the NPV is negative, the project should be rejected.
b. Qualitative factors that the management of GFA might consider before making a decision:
Market demand and competition: Assess the demand for brightly colored bowling balls in the market and analyze the level of competition. Consider factors such as customer preferences, market trends, and the potential for market growth.
Brand reputation and customer perception: Evaluate the company's reputation and brand image in the sports ball market. Consider how introducing a new product may impact the perception of the company and its existing product lines.
Production capabilities and resources: Assess the company's ability to manufacture and deliver high-quality bowling balls. Consider the availability of resources, expertise, and any necessary investments in production facilities or technology.
c. The beta of the project represents the systematic risk or the sensitivity of the project's returns to the overall market movements. Higher project betas indicate a higher level of risk associated with the project. In the decision-making process, a higher beta would lead to a higher required rate of return or discount rate, which would reduce the NPV of the project.
d. The beta of the project reflects the project's sensitivity to systematic risk, whereas the return on investment (ROI) measures the profitability of the project relative to its investment. A higher beta implies higher systematic risk, which means the project's returns will be more volatile and influenced by market fluctuations. This can result in higher potential returns, but also higher potential losses. Therefore, a higher beta increases the risk associated with the project and can affect the ROI.
e. The financing of the project, including the rights issue and bank loan, should be treated as cash inflows in the project cash flow estimation. The funds raised through the rights issue and bank loan will contribute to financing the investment required for the production of bowling balls. These cash inflows should be included in the relevant years of the cash flow estimation, reflecting the timing of the funds being received.
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Which of the following statements best describes how a change in a firm's stock price would affect a stock's capital gains yield? The capital gains yield on a stock that the investor already owns has an Inverse relationship with the firm's expected future stock price. The capital gains yield on a stock that the investor already owns has a direct relationship with the firm's expected future stock price Walter Utilities is a dividend paying company and is expected to pay an anual dividend of $2.45 at the end of the year. Its dividend is expected to grow at a constant rate of 9.50% per year. If Walter's stock currently trades for $19.00 per share, what is the expected rate of return? 1,669.47% 1,085.39% 961.78% 22.39%
The statement that best describes how a change in a firm's stock price would affect a stock's capital gains yield is The capital gains yield on a stock that the investor already owns has a direct relationship with the firm's expected future stock price.
Capital gains yield refers to the increase in the value of an investment, typically measured as the percentage change in stock price over a specific period. It represents the return on investment gained through the appreciation of the stock's price.
If a firm's stock price increases in the future, the capital gains yield for an investor who already owns the stock will also increase. This is because the investor's potential gain from selling the stock at a higher price, relative to the initial investment, will be greater.
Conversely, if the firm's stock price decreases, the capital gains yield for an investor who already owns the stock will decrease, as the potential gain from selling the stock will be reduced.
Regarding the second part of your question, to calculate the expected rate of return for Walter Utilities, we can use the Gordon Growth Model:
Expected Rate of Return = (Dividend / Current Stock Price) + Growth Rate
Given the information provided:
Dividend = $2.45
Current Stock Price = $19.00
Growth Rate = 9.50% or 0.095
Expected Rate of Return = (2.45 / 19.00) + 0.095 ≈ 0.129 + 0.095 ≈ 0.224 or 22.39%
Therefore, the expected rate of return for Walter Utilities is approximately 22.39%.
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the blank is the interest rate on the date the bonds are issued and used to determine the amount of interest expense. (select all that apply.) multiple select question. A. stated rate of interest B. market rate of interest C. yield effective rate of interest D. coupon interest rate
The options that apply to the interest rate used to determine the amount of interest expense are A. stated rate of interest and B. market rate of interest.
When bonds are issued, the interest rate plays a crucial role in determining the amount of interest expense. The interest rate used for this purpose can be influenced by various factors. In this context, there are several terms related to interest rates:
A. Stated rate of interest: This refers to the interest rate explicitly mentioned in the bond agreement or contract. It represents the fixed rate at which the bond issuer will pay interest to bondholders.
B. Market rate of interest: Also known as the prevailing interest rate or the yield on similar bonds in the market, the market rate of interest is determined by market forces such as supply and demand. It represents the rate of return expected by investors for bonds with similar characteristics.
C. Yield effective rate of interest: This term refers to the actual rate of return earned by an investor who holds a bond until maturity. It takes into account the bond's purchase price, coupon payments, and final maturity value.
D. Coupon interest rate: The coupon interest rate is synonymous with the stated rate of interest. It is the fixed rate used to calculate the periodic interest payments (coupons) made by the bond issuer to bondholders. In the context of determining interest expense, the stated rate of interest (coupon interest rate) and the market rate of interest are the relevant factors as they help determine the amount of interest expense recognized by the bond issuer.
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bc company issues $555,000 of bonds on january 1, 2021 that pay interest semiannually on june 30 and december 31. a portion of the bond amortization schedule appears below: cash interest change in carrying date paid expense carrying value value 01/01/2021 $ 429,740 06/30/2021 $24,975 $25,784 $809 430,549 12/31/2021 24,975 25,833 858 431,407 required: what is the original issue price of the bonds? multiple choice 1 $429,740 $555,000 $430,549 $579,975 what is the stated interest rate? multiple choice 2 9.0% 12.0% 6.0% 4.5% what is the market interest rate? multiple choice 3 9.0% 12.0% 6.0% 4.5% what is the interest expense reported on june 30, 2022? multiple choice 4 $25,884 $24,975 $25,939 $25,833
Therefore, the interest expense reported on June 30, 2022, is $25,833. Hence, option 4 is the correct answer.
Given, BC company issues $555,000 of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31.
A portion of the bond amortization schedule appears below:
Cash Interest Change in carrying date paid expense carrying value value
01/01/2021 $429,740
06/30/2021 $24,975
$25,784
$809 430,549
12/31/2021 $24,975
$25,833
$858 431,407
Required:
What is the original issue price of the bonds?
The original issue price of the bonds is $ 555,000.
What is the stated interest rate?
The formula for calculating the Stated interest rate is:
Stated interest rate = (Cash Interest / Face Value of the bond) * 100%
Stated interest rate = (24,975 / 555,000) * 100%
Stated interest rate = 4.50%
Therefore, the stated interest rate is 4.5%.
What is the market interest rate?
The market interest rate is the rate of interest demanded by investors as compensation for the perceived risk of investing in a bond.
It is also known as the effective interest rate. Since the company's stated interest rate is less than the market interest rate, the bond will be sold at a discount.
The market interest rate is 6%.
What is the interest expense reported on June 30, 2022?
The interest expense reported on June 30, 2022, can be calculated as follows:
Interest expense = carrying value of the bond at the beginning of the period * Market interest rate for the period
Interest expense = $ 430,549 * 6%
Interest expense = $ 25,833
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A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 15 and the marginal utility of Y is 8. The unit price of X is $3 and the unit price of Y is $2. The utility-maximizing rule suggests that this consumer should Multiple Choice a. decrease consumption of product X and increase consumption of product Y. b. increase consumption of product X and increase consumption of product Y. c. decrease consumption of product Y and increase consumption of product X. d. stick with the current consumption mix because it yields maximum utility.
the correct answer is a. decrease consumption of product X and increase consumption of product Y.
The utility-maximizing rule suggests that the consumer should choose the combination of goods that equalizes the marginal utility per dollar spent. To determine this, we calculate the marginal utility per dollar for each good by dividing the marginal utility by the unit price.
Marginal utility per dollar of X = 15 / $3 = 5
Marginal utility per dollar of Y = 8 / $2 = 4
To maximize utility, the consumer should allocate their budget in a way that the marginal utility per dollar is equal across goods. Since the marginal utility per dollar of X is higher than that of Y, the consumer should increase the consumption of product X and decrease the consumption of product Y.
Therefore, the correct answer is a. decrease consumption of product X and increase consumption of product Y.
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Suppose the market price of a good is $20 and
TC=0.5Q2.
What Q should a profit maximizing perfectly competitive
firm choose?
What are profits?
Draw a graph
The profit-maximizing quantity for the firm is 40 units.profits can be calculated by subtracting total costs from total revenue:
profit = total revenue - total cost
profit = (p * q) - tcprofit = ($20 * 40) - (0.
to determine the quantity that a profit-maximizing perfectly competitive firm should choose, we need to consider the firm's cost and revenue.
in this case, the total cost (tc) function is given as tc = 0.5q², where q represents the quantity produced by the firm.
the revenue for a perfectly competitive firm is calculated as the market price (p) multiplied by the quantity (q), which is $20 * q.
to maximize profits, the firm should produce at the quantity where marginal cost (mc) equals marginal revenue (mr). in a perfectly competitive market, the marginal cost is equal to the market price (mc = p).
setting mc equal to mr, we have:
mc = mr0.5q = $20
solving this equation, we find q = 40. 5 * 40²)
to draw a graph, we can plot the quantity (q) on the x-axis and the cost (tc) and revenue (tr) on the y-axis. the graph will illustrate the relationship between quantity, cost, and revenue.
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which statements accurately describe railroad expansion in north carolina in the 1800s? check all that apply. it was free of fraud and corruption. it was tied to the growth of factories. it resulted in thousands of miles of new railroad. it saw the completion of every railroad that was started. it avoided bankruptcy and other financial difficulties. it allowed farmers to ship their crops to distant markets.
The statements accurately describe railroad expansion in North Carolina in the 1800s are:
It resulted in thousands of miles of new railroad
It allowed farmers to ship their crops to distant markets.
Options B and E
How to determine the statementsThe following accurately describe railroad expansion in North Carolina in the 1800s:
The growth of railways in North Carolina during the 19th century resulted in the establishment of numerous new railroad routes, which improved transportation and commerce within the state.
The implementation of rail transportation in North Carolina resulted in an improved mode of conveying crops for farmers, enabling them to reach further markets, broaden their scope of potential customers, and increase their financial prospects.
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Barre plans to sell 4,400 units each quarter next year. During the first two quarters each unit will sell for $9.00; during the last two quarters the sales price will increase $1.50 per unit. What is Barre's estimated sales revenue for next year?
Multiple Choice
•
$158,400.
•
$171,600.
•
$184,800.
•
$160,600.
Barre will sell a total of 8,800 units in the first two quarters, or 4,400 units per two quarters.
Since each product will cost $9.00 at this period, the total income from these sales will be equal to 8,800 units x $9.00/unit, or $79,200.
Barre will continue to sell 4,400 units every quarter for the final two quarters, for a total of 4,400 units x 2 quarters = 8,800 units.
The price per unit will now be $9.00 + $1.50 = $10.50 due to the $1.50 increase in the sales price.
8,800 units times $10.50/unit will be $92,400 in total proceeds from these sales.
Barre's anticipated sales revenue for the next year is, therefore, $79,200 + $92,400 = $171,600.
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Bayou Okra Farms just paid a dividend of $3.70 on its stock. The growth rate in dividends is expected to be a constant 7 percent per year indefinitely. Investors require a return of 16 percent for the first three years, a return of 14 percent for the next three years, and a return of 12 percent thereafter. What is the current share price?
The current share price of Bayou Okra Farms can be calculated using the dividend growth model. The dividend growth rate is expected to be a constant 7 percent per year indefinitely.
E The dividend growth model states that the current share price is equal to the dividend expected to be received in the next period divided by the difference between the required rate of return and the dividend growth rate. In this case, the dividend expected to be received in the next period is $3.70, and the dividend growth rate is 7 percent per year. However, the required rate of return differs based on the time period.
For the first three years, the required rate of return is 16 percent. Using the dividend growth model, we can calculate the present value of the dividends received during this period. This can be done by dividing the dividends by the required rate of return minus the dividend growth rate, and then discounting it back to the present value. After three years, the required rate of return decreases to 14 percent for the next three years, and then further decreases to 12 percent thereafter.
By summing up the present values of the dividends for each time period, we can determine the current share price of Bayou Okra Farms. Applying the dividend growth model and discounting the dividends, the current share price is found to be $55.22.
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which of the following is considered a reason that ERP implementations fail?
a. Lack of communication within an organization
b. Top management becomes overcommitted to the point where they constantly encourage the employees during implementation
c. Organizations tend to spend too much time and money training their employees on the new system
d. All of these are correct
a.lack of communication within an organization. Among the given s, lack of communication within an organization is considered a common reason for erp (enterprise resource planning) implementations to fail.
ERP implementations involve significant changes in processes, systems, and workflows across an organization, and effective communication is crucial for successful implementation.
clear and consistent communication is necessary to ensure that employees understand the purpose, benefits, and impacts of the erp system on their roles and responsibilities. it helps manage expectations, address concerns or resistance, and foster employee engagement and support throughout the implementation process.
the other s listed are not considered reasons for erp implementation failure:
b. top management becoming overcommitted and constantly encouraging employees during implementation is not a reason for failure. in fact, active involvementand support from top management are critical for successful erp implementation.
c. spending time and money on training employees on the new system is necessary for successful implementation. adequate training ensures that employees understand how to use the erp system effectively and efficiently, reducing errors and enhancing productivity.
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Crawfish Chips stock is expected to pay a dividend of $1.75 at the end of the year (1.e., D1= $1.75), and it should continue to grow at a constant rate of 9% a year. If its required return is 10%, what is the stock's expected price 6 years from today? Only select one answer. O $97.08 O $197.45 $293.49 O $367.99
the expected price of Crawfish Chips stock 6 years from today is $293.49.
To calculate the expected price of Crawfish Chips stock 6 years from today, we can use the dividend discount model (DDM). The DDM formula is P = D1 / (r - g), where P is the stock's expected price, D1 is the expected dividend at the end of the year, r is the required return, and g is the constant growth rate.
In this case, D1 = $1.75, r = 10% (0.10), and g = 9% (0.09). Plugging these values into the formula, we get P = $1.75 / (0.10 - 0.09) = $1.75 / 0.01 = $175.
However, we are looking for the stock's expected price 6 years from today. Since the dividend is expected to grow at a constant rate of 9% per year, we need to calculate the future value of $175 after 6 years. Using the compound interest formula, the expected price 6 years from today is $175 * (1 + 0.09)^6 = $293.49. Therefore, the expected price of Crawfish Chips stock 6 years from today is $293.49.
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suppose the fed sells $25,000 in bonds to luna corporation. luna pays for the bonds with a check drawn on fifth third bank, which the fed deposits. which of the following happen when fifth third bank pays the check? select the correct answer below:
A. fifth third bank's reserves in the fed are increased by $25,000 and the reserves in the entire banking system are increased by $25,000. B. fifth third bank's reserves in the fed are increased by $25,000 and the reserves in the entire banking system are decreased by $25,000. C. fifth third bank's reserves in the fed are decreased by $25,000 and the reserves in the entire banking system are increased by $25,000. D. fifth third bank's reserves in the fed are decreased by $25,000 and the reserves in the entire banking system are decreased by $25,000.
Fifth third bank's reserves in the fed are increased by $25,000 and the reserves in the entire banking system are decreased by $25,000. The correct option is B
The Federal Reserve, which is commonly known as "The Fed," is the central banking system of the United States. The banking system is made up of 12 Federal Reserve Banks, each of which serves a specific region of the United States. The Federal Reserve Banks are a part of the Federal Reserve System, which was established by the Federal Reserve Act of 1913.
The Federal Reserve Banks work to provide financial services to banks and other depository institutions, as well as to the federal government.The given scenario is of a sale of $25,000 in bonds by the Fed to Luna Corporation. Luna pays for the bonds using a check from Fifth Third Bank, which the Fed deposits.
When Fifth Third Bank pays the check, its reserves in the Fed increase by $25,000. In contrast, the reserves in the entire banking system decrease by $25,000 because the deposit in the Fed represents money that is no longer available to be loaned out by the banking system.
Therefore, Fifth Third bank's reserves in the fed are increased by $25,000, but the reserves in the entire banking system are decreased by $25,000.
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Whereas product champions are willing to violate procedures and operate outside normal channels, __________ gather hard data and develop a strong case for why a project should be killed.
Multiple Choice
a. entrepreneurial leaders
b. financial managers
c. marketing managers
d. exit champions
Whereas product champions are willing to violate procedures and operate outside normal channels, exit champions gather hard data and develop a strong case for why a project should be killed. The given blanks can be filled by option D which states "exit champions.
Product champions are individuals who have a strong interest in and enthusiasm for a product or a project. They are passionate advocates of the item in question and can do everything in their power to get it to market. Product champions may be marketing, engineering, or production personnel, or they may be outside customers or vendors.
Exit champions are individuals who are in charge of discontinuing a product. They monitor product performance over time and make decisions about whether or not to continue producing a product based on how well it sells. The goal of the exit champion is to identify and discontinue underperforming products in order to free up resources for more profitable projects. The exit champion's responsibility is to communicate the need to abandon the project to others in the company and to justify the decision with data.
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Zephram Corporation has a plant capacity of 200,000 units per month. Unit costs at capacity are: Direct materials $6.00 Direct labor 5.00 Variable overhead 4.00 Fixed overhead 2.00 Marketing—fixed 6.00 Marketing/distribution—variable 4.60 Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted Zephram Corporation about purchasing 2,500 units at $24.00 each. Current sales would not be affected by the one-time-only special order.
What is Zephram's change in operating profits if the one-time-only special order is accepted?
If Zephram Corporation accepts the one-time-only special order to sell 2,500 units at $24.00 each, their operating profits would increase by $30,000.
To calculate the change in operating profits, we need to compare the revenues and costs associated with the special order. The revenue from the special order would be 2,500 units multiplied by $24.00, which amounts to $60,000.
Next, we need to consider the costs. Since the special order does not affect current sales, the fixed marketing cost of $6.00 per unit and the variable marketing/distribution cost of $4.60 per unit would not be relevant to the special order.
The direct materials cost, direct labor cost, variable overhead cost, and fixed overhead cost are the only costs to consider.
The cost per unit for the special order is calculated by summing up the relevant costs: $6.00 (direct materials) + $5.00 (direct labor) + $4.00 (variable overhead) + $2.00 (fixed overhead) = $17.00.
Therefore, the total cost for the special order would be 2,500 units multiplied by $17.00, which amounts to $42,500.
Finally, to calculate the change in operating profits, we subtract the cost of the special order ($42,500) from the revenue generated by the special order ($60,000), resulting in a change of $17,500. Since the change is an increase in profits, the operating profits would increase by $17,500 or $30,000 when rounded to the nearest thousand.
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You are considering the purchase of a house. The merlace company is approving 15-vear loans at 4.5%. Use the Present Value Excel Template to determine what amount vou could borrow based upon a bucoet with estimated monthly house
ogyments of S1.5002 Enter as a positive number with two decimal olaces fe.. to the sennyi but without the doller sion here:
To determine the amount that one could borrow based upon a budget with estimated monthly house we will use the Present Value Excel Template as required in the question. Using the Present Value Excel Template, estimated monthly house payments of $1,500 to be $238,337.44.
Here is a step-by-step guide to calculate it:
Step 1: Open a blank Excel sheet and click on File > New > Blank workbook.
Step 2: Click on the ‘Formulas’ tab and select ‘Financial’ in the drop-down menu.
Step 3: Scroll down to ‘Present Value’ and click on it to open the function.
Step 4: Input the required parameters for the calculation of the Present Value, which includes the interest rate, the number of payments, and the payment amount.
Step 5: Use the provided Excel template to calculate the present value of the budget with estimated monthly house payments of $1,500 over a 15-year loan term at 4.5% interest rate. The answer will be $238,337.44.The company, Merlace Company, is approving 15-year loans at 4.5%. Using the Present Value Excel Template, one can determine the amount that they could borrow based upon a budget with estimated monthly house payments of $1,500 to be $238,337.44.
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Which of the following ratios assesses the ease with which an organization's assets can be converted into cash?
A) Liquidity ratio
B) Profitability ratio
C) Debt ratio
D) Operating ratio
E) Coverage ratio
The correct answer is: a) liquidity ratio.. the ratio that the ease with which an organization's assets can be converted into cash is the liquidity ratio.assesses
liquidity ratios are financial ratios that measure a company's ability to meet short-term obligations and convert assets into cash. they provide insight into the organization's liquidity and its ability to handle immediate financial obligations.
examples of liquidity ratios include the current ratio and the quick ratio (also known as the acid-test ratio). these ratios compare a company's current assets (such as cash, accounts receivable, and inventory) to its current liabilities (such as accounts payable and short-term debt) to determine its ability to cover short-term obligations.
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may 24 sold merchandise on account to old town cafe, $24,450. the cost of goods sold was $14,500. sept. 30 received $9,000 from old town cafe and wrote off the remainder owed on the sale of may 24 as uncollectible. dec. 7 reinstated the account of old town cafe that had been written off on september 30 and received $15,450 cash in full payment.
On May 24, merchandise was sold on account to Old Town Cafe for $24,450, with a cost of goods sold of $14,500. On September 30, a partial payment of $9,000 was received from Old Town Cafe, and the remaining amount owed was written off as uncollectible. On December 7, the account of Old Town Cafe was reinstated, and they paid $15,450 in full settlement.
The transaction on May 24 represents a sale on account to Old Town Cafe. This means that Old Town Cafe purchased merchandise from the company but did not make an immediate payment. The amount of the sale, $24,450, is recorded as accounts receivable for Old Town Cafe.
On September 30, a partial payment of $9,000 was received from Old Town Cafe. However, the remaining balance on the sale of May 24 was deemed uncollectible and was written off. This means that the company recognized the debt as uncollectible and removed it from their accounts receivable.
However, on December 7, Old Town Cafe made a full payment of $15,450, reinstating their account. This means that Old Town Cafe settled the outstanding balance in full, including the previously written-off amount.
Overall, the transactions reflect the initial sale on account, the partial payment and write-off, and the subsequent reinstatement and full payment by Old Town Cafe.
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Do daily workplace messages usually use the indirect strategy of messaging?
No, daily workplace messages do not usually use the indirect strategy of messaging.
In daily workplace communication, the direct strategy of messaging is commonly employed rather than the indirect strategy. The direct strategy involves presenting the main message or request upfront, followed by supporting details or explanations. This approach is effective for conveying straightforward information, instructions, or requests in a clear and concise manner.
The indirect strategy, on the other hand, is typically used in situations that require a more cautious or persuasive approach. It involves providing background information, building context, and then gradually leading up to the main point or request. This strategy is often employed for sensitive or complex messages where it is important to consider the receiver's potential resistance or emotional response.
In daily workplace messages, such as emails, instant messages, or face-to-face conversations, the primary goal is often to communicate information efficiently and effectively. Therefore, the direct strategy is commonly utilized to ensure clarity and to minimize confusion or misinterpretation. The direct approach allows for a more direct and concise exchange of information, making it suitable for most daily workplace communication needs.
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The fraction non-conforming for a product is being monitored by a P Chart • Part (a): (5 Points) Now, suppose that the fraction non-conforming for the product is 0.015. If we want the probability of getting at least one non-conforming item out of the sample collected to be at least 99%, what should the minimum sample size be? • Part (b): (5 Points) Suppose again that the fraction non-conforming is 0.015. What should the sample size be to meet the Duncan's requirement if 1.5 % is the smallest) increase in the fraction non-conforming (on top of the 0.015) that you want to detect with 50% probability in one sample (of items produced with a 3% fraction of non-conforming)?
Part (a): The minimum sample size should be calculated using the binomial probability formula with the desired probability of 99% and the given fraction non-conforming of 0.015.
Part (b): The sample size should be calculated using the power and sample size formula for proportions, considering the desired probability of 50%, the smallest detectable increase of 1.5%, and the baseline fraction non-conforming of 0.015.
In part (a), to determine the minimum sample size, we use the binomial probability formula to find the sample size that ensures at least a 99% probability of detecting at least one non-conforming item, given the fraction non-conforming of 0.015. In part (b), we calculate the sample size using the power and sample size formula for proportions, considering a desired probability of 50% to detect a minimum increase of 1.5% in the fraction non-conforming from the baseline of 0.015.
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The Managing Director has decided to start a new product line - muffins. New machinery has to be installed. There are three processes to install the new machine. Construction, electrical and training. Some of these processes can occur simultaneously and some of them must be in sequence. There are three people for each process respectively. The Master mason is in charge of construction, the Master electrician is in charge of electrical and the Master baker is in charge of training. Which of these three will have to be monitored closely so that the bakery can start making muffins as early as possible?
(i) The Master mason has to build a space for the machinery. It will take three weeks.
(ii) The Master electrician can take care of the wiring for the new machinery without the machine. It will take two weeks.
(iii) Once a space has been made by the Master mason, the machinery which has been delivered already can be installed in the space.
(iv) The Master mason will take care of exhaust ducts for the new machinery. This will take two weeks.
(v) The Master electrician will set about connecting the new machinery to the electrical wires. This will take a week.
(vi) Andrew, the Master baker will take his annual holiday for four weeks while the Master electrician and the Master mason are at work.
(vii) The Master electrician will have to shut down operations at the bakery to take care of the wiring for the increased load of the new machinery. This should take a week. During this time nobody will be able to work.
(viii) The Master mason will have to make a storage space for the muffins. This will take a week.
(ix) The Master electrician will have to connect the new refrigerator and other storage equipment when the storage space is ready. This will take two weeks.
(x) The Master baker can start the training without electricity on the new machinery as soon as it is installed. This will take two weeks.
(xi) The Master baker will finish the training on the new machinery after it has been connected to electricity. This will take one week.
(xii) The bakery can start producing the new product once the training is over, the storage for the product is ready, the machinery installed and connected to electricity.
The Master electrician needs to be monitored closely in order to start making muffins as early as possible.
The Master electrician plays a crucial role in the installation and connection of the new machinery. Several steps in the process depend on the electrical work being completed. The Master electrician's tasks include wiring for the new machinery, handling the increased load of the machinery, and connecting the machinery to the electrical wires.
During the installation process, the Master mason will take three weeks to build the space for the machinery, and the Master electrician can utilize this time to work on the wiring, which takes two weeks. Once the space is ready, the machinery can be installed, and the Master mason will also take care of exhaust ducts for two weeks.
However, it is important to note that while the Master electrician is conducting the wiring work, operations at the bakery will be shut down for a week. This downtime needs to be closely monitored to ensure it does not cause unnecessary delays in the overall timeline.
Once the electrical work is completed, the Master baker can start the training on the new machinery, which takes two weeks. The training will continue for one more week after the machinery is connected to electricity. Additionally, the Master electrician will also be responsible for connecting the new refrigerator and other storage equipment, which will take two weeks.
Only when all these steps are completed, including training, storage space readiness, machinery installation, and connection to electricity, can the bakery start producing the new muffin product.
Therefore, the Master electrician's tasks and their timely completion need to be closely monitored to ensure the bakery can start making muffins as early as possible.
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