7. Which of the following is NOT an assumption of the Miller & Modigliani theorem?
Option E. All of the above are assumptions of the Miller & Modigliani theorem is the correct answer.
None of the options is not an assumption of the Miller & Modigliani theorem. 8. Tetroid Corporation has $51 million worth of debt. The company pays a corporate tax rate of 17%. There are no personal taxes on debt or equity income. The present value of Tetroid's interest tax shield is Option A. $3 million.
PV of interest tax shield = DTCCost of debt= $51 millionInterest rate = tax rate = 17%PV of interest tax shield = $51 million x 17% = $8.67 million 9. Sponsyllo Corp has debt of $15 million that pays an interest rate of 8%, equity of $5 million, and the required return on assets is 12%. The company does not pay any taxes. Sponsyllo's cost of equity is 12%.
Option B. 12% is the correct answer.Given that debt (D) = $15 million, equity (E) = $5 million and the cost of debt (Kd) = 8%.The required rate of return on assets (Ks) = 12%.
Weighted Average Cost of Capital (WACC) = (E/(D+E))Ke + (D/(D+E))Kdwhere Ke = cost of equity; D = debt, E = equityKd = 8%Ke = ?WACC = 12%5,000,000/20,000,000 (Ke) + 15,000,000/20,000,000 (0.08) = 0.12Ke = 12%10.
If a Corporation must pay income taxes, the Miller & Modigliani model predicts thatOption B. Capital structure is important: Tax advantage for debt over equity is the correct answer.
11. According to Miller, if personal taxes on income from stocks increase, holding all else equal, then
Option B. Gains from leverage will decrease. is the correct answer.
12. According to the textbook, companies that have large amounts of nondebt tax shieldsOption B. Should use more debt financing than other companies is the correct answer.
13. Why is debt financing referred to as "leverage"?
Option C. It magnifies the return on equity of a firm is the correct answer.14. How do firms know their optimal debt equity ratio?
Option B. The ratio where Weighted Average Cost of Capital is minimized is the correct answer.
15. Why does the marginal benefit of debt decline as the amount of debt on a firm's balance sheet rise?
Option B. More debt means higher interest expense and higher probability of losses is the correct answer.
16. Which of the following are examples of indirect bankruptcy costs?
Option E. None of the above is the correct answer.
17. According to the Packing Order Thaona firm
Option E. None of the above is the correct answer.
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QUESTION 26 In cost-plus pricing, the markup consists of manufacturing costs. desired ROI. selling and administrative costs. total cost and desired ROI. QUESTION 27 The desired ROI per unit is calculated by multiplying the ROI percentage by the investment and dividing by the estimated volume. multiplying the unit selling price by the ROI. dividing the total cost by the estimated volume and multiplying by the ROI. dividing the ROI by the estimated volume and subtracting the result from the unit cost.
Question 26 In cost-plus pricing, the markup consists of manufacturing costs and desired ROI. The term markup, which is a measure of the profit margin on the selling price of an item, is used in cost-plus pricing. The cost-plus method is a pricing method that considers all of the costs of producing a product, as well as a certain percentage markup for profit. The formula is:
Cost Price = Total Costs + Markup
The cost-plus pricing approach is a pricing strategy that relies on the product's total cost, production expenses, and the desired profit margin to set the product's selling price.
Question 27 The desired ROI per unit is calculated by multiplying the ROI percentage by the investment and dividing by the estimated volume. The formula to calculate the ROI is:
ROI (Return on Investment) = (Profit - Investment) / Investment
Therefore, to determine the ROI per unit, you must use the following formula:
ROI per unit = (Profit - Investment) / Volume
You must multiply the ROI percentage by the investment and divide by the estimated volume to obtain the desired ROI per unit.The other options in this question do not represent the correct calculation for ROI per unit.
The correct formula is dividing the ROI by the estimated volume and subtracting the result from the unit cost.
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How should Stripe market the Stripe climate to its clients?
Stripe should market the Stripe climate to its clients by giving them insights on how they can help reduce the negative impact of global warming on the environment. This marketing strategy will require Stripe to create a compelling narrative that is based on data-driven insights that customers can easily understand.
In addition to this, Stripe can also highlight the benefits of using Stripe Climate. For instance, the platform allows businesses to purchase carbon offsets from credible sources, thereby offsetting their carbon footprint. By highlighting these benefits, Stripe can make it clear that Stripe Climate is a practical solution for businesses that want to make a positive impact on the environment.
Stripe can also use the power of storytelling to help customers understand the importance of reducing carbon emissions. This can be done through the use of videos, infographics, and blog posts that highlight the impact of climate change and how it affects the environment, wildlife, and humans. This approach will make it easier for customers to understand the significance of reducing carbon emissions and how they can make a difference by using Stripe Climate.
Furthermore, Stripe can collaborate with environmental organizations and charities to raise awareness about climate change. By partnering with organizations that focus on climate change, Stripe can create a positive brand image and show its commitment to reducing carbon emissions. This approach will also help Stripe gain the trust and loyalty of customers who are concerned about the environment.
In conclusion, Stripe can market Stripe Climate to its clients by providing them with data-driven insights, highlighting the benefits of using Stripe Climate, using storytelling to explain the importance of reducing carbon emissions, and partnering with environmental organizations and charities. By implementing these strategies, Stripe can position itself as a leader in the fight against climate change while also helping businesses reduce their carbon footprint.
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After a recession, _____.
Select the correct answer below:
the economy's internal structure does not usually revert to its exact earlier shape
the economy no longer has an internal structure
the economy's internal structure is permanently altered
the economy's internal structure reverts back to ts exact earlier shape
After a recession, the correct answer is: the economy's internal structure does not usually revert to its exact earlier shape.
Recessions are periods of economic contraction and downturn characterized by a decline in economic activity, output, and employment. During a recession, various factors can impact the structure of the economy, such as changes in consumer behavior, technological advancements, shifts in industries, and government policies. These factors can lead to structural adjustments and alterations in the economy's internal structure.
After a recession, it is common for the economy to undergo changes that can have lasting effects. For example, certain industries may decline while new industries emerge, job opportunities may shift, and consumer preferences may change. These changes can result in a different composition of output, employment, and investment in the post-recession period.
While the economy may recover and experience growth following a recession, the internal structure is typically permanently altered to some extent. The exact shape of the pre-recession economy may not be replicated, as the economic landscape evolves in response to the challenges and opportunities arising from the recession.
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Assume you are examining the reliability of a new test and obtain a reliability coefficient of 30. What does this mean?
If a reliability coefficient of 30 is obtained when examining the reliability of a new test, it means that the test is unreliable and cannot be used to accurately measure whatever construct it is intended to measure.
A reliability coefficient of 30 is extremely low; a coefficient of 0.7 or above is generally considered acceptable for most purposes.The reliability coefficient indicates the extent to which the scores obtained on a test are consistent and accurate. A higher coefficient indicates that the test is more reliable and that the scores obtained are more consistent and accurate. Therefore, a reliability coefficient of 30 implies that the scores obtained on the test are not consistent or accurate enough to be considered reliable.In order to improve the reliability of the test, further research is required. It may be necessary to revise the test or develop new items that are more reliable. It may also be necessary to administer the test to a larger sample in order to obtain more accurate and reliable results.
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The beginning balance in retained earnings of is $1200,000 (Cr.). The current period net loss is $350,000 and declared stock dividends $150,000. The ending balance in retained eamings equals: O A. Credit of $1550,000. O B. Credit of $1400,000. OC. Credit of $700,000. O D. Credit of $850.000.
To determine the ending balance in retained earnings, we need to consider the beginning balance, the net loss for the current period, and the declared stock dividends.
The beginning balance in retained earnings is given as $1,200,000 (Cr.). Since it is a credit balance, we subtract it from the total.
Next, we have a net loss of $350,000 for the current period. A net loss decreases retained earnings.
Lastly, we have declared stock dividends of $150,000. Stock dividends are distributions of a company's own stock to shareholders, and they also reduce retained earnings.
To calculate the ending balance in retained earnings, we need to sum up the beginning balance, the net loss, and the declared stock dividends while taking into account their respective effects.
Beginning balance: -$1,200,000
Net loss: -$350,000
Declared stock dividends: -$150,000
Total: -$1,700,000
Since the balance is a credit balance, the ending balance in retained earnings would be a credit of $1,700,000. Therefore, the correct answer is Option A: Credit of $1,700,000.
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A firm's inverse demand is P - 800-40: its inverse supply function is P = 400+40. A graph appears below. S P 800 600 400 D Q 50 200 a. Calculate the consumer surplus. Р / Qs - - Qs = 600 - 3 1(50) 9(50) b. Calculate the producer surplus. 400 QD 100 4(Q) 9(200) 2 4 0.5 C. If the government imposes a price ceiling of $500, will this cause a shortage or surplus? Quantify the amount of the shortage or surplus. d. Calculate the deadweight loss from the price ceiling described in part c.
The deadweight loss from the price ceiling is zero, indicating that there is no efficiency loss caused by the price ceiling.
a. To calculate consumer surplus, we need to find the area under the demand curve (D) and above the market price (P). The market price (P) is given by the intersection of the demand and supply curves, which is P = 600.
Consumer Surplus = (1/2) * (600 - 400) * (200 - 50)
= (1/2) * 200 * 150
= 15,000
b. To calculate producer surplus, we need to find the area above the supply curve (S) and below the market price (P). The market price (P) is still P = 600.
Producer Surplus = (1/2) * (600 - 400) * (200 - 50)
= (1/2) * 200 * 150
= 15,000
c. If the government imposes a price ceiling of $500, it means that the maximum price allowed is $500. Since the market price (P) is currently $600, the price ceiling of $500 will create a shortage.
Shortage = Quantity Demanded (QD) - Quantity Supplied (QS)
= 200 - 100
= 100
d. To calculate the deadweight loss, we need to compare the total surplus (consumer surplus + producer surplus) in the absence of the price ceiling (which is 15,000 + 15,000 = 30,000) with the total surplus under the price ceiling.
Deadweight Loss = Total Surplus without price ceiling - Total Surplus with price ceiling
= 30,000 - (Consumer Surplus + Producer Surplus)
= 30,000 - (15,000 + 15,000)
= 30,000 - 30,000
= 0
Therefore, the deadweight loss from the price ceiling is zero, indicating that there is no efficiency loss caused by the price ceiling.
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Weber Company purchased a mining site for $641,073 on July 1. The company expects to mine are for the next 10 years and anticipates that a total of 93,542 tons will be recovered. The estimated residual value of the property is $58,034. During the first year, the company extracted 4,433 tons of ore. The depletion expense is a. $58,303.90 Ob. $27,630.50 Oc. $30,380.76 Od. $58,034.00
Depletion expenseThe mining industry utilizes a strategy for computing expenses related to extracting natural resources from the earth known as depletion expense.
In the mining industry, natural resource depletion expenses help mining firms match costs with revenues, allowing them to obtain a more accurate depiction of their income. Here, we have Weber Company that has purchased a mining site for $641,073 on July 1, and the company expects to mine ore for the next 10 years, and they anticipate that a total of 93,542 tons will be recovered, with an estimated residual value of the property being $58,034.The depletion expense during the first year will be computed as follows:Depletion cost per unit = (Purchase price – Residual value)/Total expected unitsDepletion cost per unit = ($641,073 – $58,034)/93,542 = $6.44 per unitThe depletion cost for the first year = Depletion cost per unit × Number of units producedDepletion cost for the first year = $6.44 × 4,433= $28,540.52Therefore, the depletion expense for the first year is $28,540.52.Option C: $30,380.76 is the correct option.
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Ajax Limited is a company listed on the NZX. Ajax has announced it will make a dividend payment at the end of the year of $1.75 per share. The average annual growth rate in the company's dividends over the past five years has been 5%. Ajax's shareholders have a required rate of return of 15% p.a. Ajax's shares have been trading very consistently around $20 per share for the past few months and analysts suggest this is likely to continue for the foreseeable future. How can you explain this price based on the constant growth dividend discount model?
The actual market price of Ajax's shares can deviate from the price predicted by the model.
The constant growth dividend discount model, also known as the Gordon Growth Model, can be used to explain the current price of Ajax Limited's shares based on its dividends.
According to the constant growth dividend discount model, the price of a share is equal to the present value of its expected future dividends. The formula for calculating the price of a share using this model is:
Price = Dividend / (Required Rate of Return - Dividend Growth Rate)
In this case, the dividend payment at the end of the year is $1.75 per share, and the average annual growth rate in dividends over the past five years is 5%. The required rate of return for shareholders is 15% p.a.
Using the formula, we can calculate the price of Ajax's shares:
Price = $1.75 / (0.15 - 0.05) = $1.75 / 0.1 = $17.50
The calculated price based on the constant growth dividend discount model is $17.50 per share. However, the shares of Ajax have been consistently trading around $20 per share for the past few months. This suggests that the market price is higher than the price calculated using the model.
There could be several reasons for the market price being higher than the model's price. One possible explanation is that investors have a positive perception of Ajax's future prospects, leading them to assign a higher value to the company's shares. This positive sentiment could be driven by factors such as strong financial performance, anticipated growth opportunities, or positive industry trends.
It's important to note that the constant growth dividend discount model is a simplified valuation approach and relies on various assumptions. Market prices can be influenced by factors beyond the model's scope, such as market sentiment, supply and demand dynamics, and macroeconomic conditions. Therefore, the actual market price of Ajax's shares can deviate from the price predicted by the model.
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What is the influence of restaurant environment on purchase intention in Malaysia’ Fast Food Industry?
What is the influence of food quality on purchase intention in Malaysia' Fast Food Industry?
What is the influence of brand image on purchase intention in Malaysia' Fast Food Industry?
Research Objectives
To examine the influence of restaurant environment on purchase intention in Malaysia’ Fast Food Industry.
To examine the influence of food quality on purchase intention in Malaysia’ Fast Food Industry.
To examine the influence of brand image on purchase intention in Malaysia’ Fast Food Industry.
5,000 words.
The Influence of Restaurant Environment, Food Quality, and Brand Image on Purchase Intention in Malaysia's Fast Food Industry
This research aims to investigate the factors that influence purchase intention in Malaysia's fast food industry, specifically focusing on restaurant environment, food quality, and brand image.
By understanding the impact of these factors, fast food industry players can develop effective marketing strategies to enhance customer satisfaction and loyalty.
The study employs a quantitative research design, collecting data from fast food consumers in Malaysia through a structured questionnaire. The findings will provide valuable insights into the relationship between restaurant environment, food quality, brand image, and purchase intention, contributing to the body of knowledge in the field of consumer behavior and marketing.
Table of Contents:
Introduction
1.1 Background
1.2 Research Objectives
1.3 Research Questions
1.4 Significance of the Study
Literature Review
2.1 Fast Food Industry in Malaysia
2.2 Purchase Intention
2.3 Restaurant Environment and Purchase Intention
2.4 Food Quality and Purchase Intention
2.5 Brand Image and Purchase Intention
Research Methodology
3.1 Research Design
3.2 Sampling Technique
3.3 Data Collection
3.4 Questionnaire Development
3.5 Data Analysis
Results and Findings
4.1 Descriptive Statistics
4.2 Correlation Analysis
4.3 Regression Analysis
Discussion
5.1 Relationship between Restaurant Environment and Purchase Intention
5.2 Relationship between Food Quality and Purchase Intention
5.3 Relationship between Brand Image and Purchase Intention
5.4 Comparison of Factors' Influence on Purchase Intention
Implications and Recommendations
6.1 Marketing Strategies for Enhancing Restaurant Environment
6.2 Improving Food Quality to Increase Purchase Intention
6.3 Enhancing Brand Image to Influence Purchase Intention
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the garraty company has two bond issues outstanding. both bonds pay $100 annual interest plus $1,000 at maturity. bond l has a maturity of 15 years, and bond s has a maturity of 1 year.
Based on the information provided, it seems that the Garraty Company has two bond issues: Bond L and Bond S.
Bond L has a maturity of 15 years, which means it will mature in 15 years from its issuance date. It pays $100 in annual interest and also provides a $1,000 payment at maturity.
Bond S, on the other hand, has a much shorter maturity period of 1 year. It also pays $100 in annual interest and offers a $1,000 payment at maturity.
It is important to note that additional information would be needed to provide a comprehensive analysis of these bond issues, such as the current market price of the bonds, coupon rates, yield rates, and any other relevant details.
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how has the level of service that salespeople provide to consumers changed over the past few decades?
The level of service provided by salespeople has shifted towards a more customer-centric and personalized approach.
Over the past few decades, the level of service provided by salespeople to consumers has undergone significant changes due to various factors. Some key changes include:
Technology and Information Access: The widespread availability of the internet and advancements in technology have revolutionized the way salespeople interact with consumers. Salespeople now have access to vast amounts of information, allowing them to provide more detailed and personalized product knowledge.
Consumers can also independently research products and compare prices, making them more informed and demanding when engaging with salespeople.
Shift to Customer-Centric Approach: The focus of sales has shifted from a transactional approach to a customer-centric approach. Salespeople now strive to build relationships with customers, understand their needs, and provide tailored solutions.
This shift has led to a greater emphasis on providing excellent customer service, offering post-sale support, and fostering long-term customer loyalty.
Personalization and Customization: With increased competition and evolving consumer preferences, salespeople have recognized the importance of personalization.
They strive to understand individual customer preferences and offer customized solutions. This can include personalized product recommendations, targeted marketing campaigns, and tailored pricing options.
Omnichannel Sales: The rise of e-commerce and online marketplaces has expanded the sales landscape. Salespeople now engage with customers through multiple channels, including physical stores, websites, social media platforms, and mobile apps. This allows for greater convenience and flexibility in accessing products and services.
Enhanced Sales Techniques and Training: Sales techniques have evolved to focus on consultative selling rather than aggressive persuasion.
Salespeople are now trained to listen actively, understand customer pain points, and provide solutions that align with customer needs. This approach helps build trust and enhances the overall sales experience.
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Consider the AS-AD model. For each of the blanks, enter for increase, 'D' for decrease, or "N" for not change for each curve based on the shock given al Suppose that a disease strikes the agriculture industry AD would 1. AS would and LRAS would b) Suppose that Brooklyn experiences a 3% increase in tourism. AS would AD would and LRAS would c) Suppose that fuel prices in Brooklyn decrease by 5%, AD would AS would and LRAS would d) Suppose that the City Council of Brooklyn cuts spending by 8%. AD would AS would and LRAS would
The AS-AD (Aggregate Supply-Aggregate Demand) model is a key model in macroeconomic analysis. It considers the relationship between the overall price level in an economy and the total quantity of goods and services produced (real output).
In the AS-AD model, the quantity of output is influenced by two types of aggregate spending: total spending on consumption goods and services (C) and total spending on investment goods and services
(I).For each of the blanks given below, enter 'D' for decrease, 'I' for increase, or "N" for no change for each curve based on the shock given:Suppose that a disease strikes the agriculture industry.AS would D.AD would D.LRAS would D.Suppose that Brooklyn experiences a 3% increase in tourism.
AS would N.AD would I.LRAS would I.
Suppose that fuel prices in Brooklyn decrease by 5%.AS would I.AD would I.LRAS would I.
Suppose that the City Council of Brooklyn cuts spending by 8%.AS would D.AD would D.LRAS would N.
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a) If a disease strikes the agriculture industry, the AD curve would decrease, the AS curve would decrease, and the LRAS curve would not change.
b) Suppose that Brooklyn experiences a 3% increase in tourism. The AD curve would increase, the AS curve would not change, and the LRAS curve would not change.c) Suppose that fuel prices in Brooklyn decrease by 5%. The AD curve would increase, the AS curve would increase, and the LRAS curve would not change.d) Suppose that the City Council of Brooklyn cuts spending by 8%. The AD curve would decrease, the AS curve would not change, and the LRAS curve would not change.In the AS-AD model, the AD curve represents the relationship between the price level and the quantity of output demanded, while the AS curve represents the relationship between the price level and the quantity of output supplied.The LRAS curve, on the other hand, represents the relationship between the price level and the quantity of output supplied in the long run when all factors of production are variable.
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The current price of neckties is $30, but the equilibrium price of neckties is $25. As a result,
A. the quantity supplied of neckties exceeds the quantity demanded of neckties at the $30 price.
B. the quantity supplied of neckties exceeds the quantity demanded at the $30 price.
C. there is a surplus of neckties at the $30 price.
D. All of the above are correct.
The correct answer is D) All of the above. With the current price of neckties at $30, the quantity supplied exceeds the quantity demanded, resulting in a surplus of neckties. This situation occurs because the equilibrium price, which is the price at which quantity supplied equals quantity demanded, is lower at $25. Therefore, all of the statements presented in options A, B, and C are correct.
When the current price of neckties is $30, but the equilibrium price is $25, it indicates that the market is not in balance. In this case, the quantity supplied of neckties exceeds the quantity demanded at the $30 price (option B). Suppliers are willing to supply a higher quantity of neckties at the current price, anticipating higher sales. However, consumers are not demanding that same quantity at the given price, resulting in an excess supply.
This excess supply leads to a surplus of neckties in the market (option C). There are more neckties available than consumers are willing to buy at the $30 price. As a result, sellers may need to lower the price in order to clear the surplus and reach the equilibrium point where quantity supplied matches quantity demanded.
In summary, with the current price of neckties exceeding the equilibrium price, there is an excess supply, and the quantity supplied exceeds the quantity demanded. This creates a surplus of neckties in the market. Therefore, option D, "All of the above," is the correct answer.
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SEP, a calendar year corporation, reported $918,000 net income before tax on its financial statements prepared in accordance with GAAP. The corporation's records reveal the following information: • SEP incurred $75,000 of research costs that resulted in a new 17-year patent for the corporation. SEP expensed these costs for book purposes. • SEP's depreciation expense per books was $98,222, and its MACRS depreciation deduction was $120,000. • SEP was organized two years ago. For its first taxable year, it capitalized $27,480 start-up costs and elected to amortize them over 180 months. For book purposes, it expensed the costs in the year incurred. Required: Compute SEP's taxable income. (Amounts to be deducted should be indicated with a minus sign. Do not round intermediate computations. Round final answers to the nearest whole dollar.) Answer is complete but not entirely correct. Amount SEP's net book income before tax S 918,000✔ Adjustments: Research costs 70,000 X (21,778)✔ Depreciation Amortization (1,499) X SEDC tovable incomo 061.123X
To compute the taxable income of SEP corporation we can start by making the necessary adjustments as follows:SEP’s net book income before tax= $918,000Adjustments:Research costs: 70,000 * 17/180= $6,556 * 2= $13,112. Therefore the adjustment made for research costs= $13,112 - $75,000 = -$61,888.
Depreciation Amortization: Amortization expense for start-up costs = $27,480/180= $153. MACRS depreciation allowed on start-up costs for 2019= 0.2*$27,480= $5,496. Therefore the adjustment for depreciation amortization= $153 - $5,496 = -$5,343.MACRS depreciation allowed = $120,000. Therefore, the adjustment for depreciation= $98,222-$120,000 = -$21,778.
Taxable Income is calculated as:Taxable income = Net book income + research cost adjustment + depreciation amortization adjustment + Depreciation adjustmentTaxable income = $918,000 - $61,888 - $5,343 - $21,778= $829,991 (rounded to the nearest dollar).Therefore, SEP’s taxable income is $829,991 (rounded to the nearest dollar).
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Conaway Company’s balance sheet on December 31, Year 10, included the following:
Common stock, $1 par $800,000
Nonconvertible preferred stock, $50 par 20,000
On July 21, Year 11, Loaded issued a 25% stock dividend on its common stock. On December 12, Year 11, the company paid $50,000 of cash dividends on the preferred stock. Net income for the year ended December 31, Year 11 was $2,000,000.
Instructions:
Compute Loaded's EPS for Year 11.
Loaded's EPS (earnings per share) for Year 11 is $4.27 per share. The EPS (earnings per share) is the amount of earnings allocated to each outstanding share of stock. The formula to compute EPS is EPS = (Net income - Preferred dividends) ÷ Weighted average common shares outstanding.
There are 800,000 shares of common stock with $1 par value, so the amount of common stock outstanding before the stock dividend was 800,000 shares. Since a 25% stock dividend was issued on the common stock, the number of common shares outstanding increased by 200,000 shares (25% x 800,000 shares). Thus, the number of common shares outstanding after the stock dividend is 1,000,000 shares (800,000 + 200,000).
The preferred stock is nonconvertible, so it does not affect the computation of the weighted average number of common shares outstanding. The weighted average number of common shares outstanding for Year 11 is computed as follows: Weighted average common shares outstanding = (Number of shares before stock dividend × Fraction of year before stock dividend) + (Number of shares after stock dividend × Fraction of year after stock dividend)Weighted average common shares outstanding = (800,000 × 172/365) + (1,000,000 × 193/365)Weighted average common shares outstanding = 426,849 + 526,027Weighted average common shares outstanding = 952,876The preferred dividends are $50,000 for Year 11. Thus, the EPS for Year 11 is computed as follows: EPS = (Net income - Preferred dividends) ÷ Weighted average common shares outstanding EPS = ($2,000,000 - $50,000) ÷ 952,876EPS = $1,950,000 ÷ 952,876EPS = $2.05 per share After rounding to the nearest penny, Loaded's EPS for Year 11 is $2.05 per share.
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Burnet Cafe is a cafe specializing in making Spanish coffee. During their very first week they incurred the following costs; shop rent $2,500, purchases of coffee beans (20 x 1 kilogram bags at $13.00 each), purchases of disposable cups (1,000 x $0.05 each), 1 x fulltime barista $850. At the end of the week they had 300 cups remaining (Assume no cups were damaged or lost during the week). Each 1 kg bag of coffee beans can normally make 150 coffees. Based on the scenario above, what is the total cost of the coffee beans consumed in the first week? Select one: a. $66.00 b. $67.00 c. $63.43 O d. $60.67
To calculate the total cost of coffee beans consumed in the first week, you first need to find out the total number of coffees made and then the cost of coffee beans used to make those coffees.
Given that each 1 kg bag of coffee beans can normally make 150 coffees, thus 20 bags will make 20 × 150 = 3,000 coffees. During the first week, they made 3,000 - 300 = 2,700 cups of coffee. Now let's find out the total cost of coffee beans: Total cost of coffee beans = 20 × $13 = $260Cost of coffee beans per cup of coffee = $260 / 3,000 = $0.0867 (rounded to 2 decimal places)
Therefore, the total cost of coffee beans consumed in the first week is: $0.0867 × 2,700 = $234.09 (rounded to 2 decimal places).Thus, the main answer is $234.09 which is option D. Option A ($66.00), option B ($67.00), and option C ($63.43) are all incorrect because they are not even close to the correct answer.
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A bond has an annual coupon rate of 3.4%, a face value of $1,000, a price of $1,125.76, and matures in 10 years. Attempt 1/6 for 5 pts. Part 1 What is the bond's YTM? 4+ decimals
A bond has an annual coupon rate of 3.4%, a face value of $1,000, a price of $1,125.76, and matures in 10 years.A bond's yield to maturity (YTM) is the yield an investor receives if the bond is held until maturity and all interest and principal payments are made on schedule.
YTM is calculated using a bond's current market price, face value, coupon rate, and time to maturity. The bond's YTM is the interest rate that will make the present value of the bond's cash flows equal to its current market price. The bond's YTM is found using a trial-and-error process.YTM is used to calculate the bond's value, which is the present value of the bond's cash flows. In order to determine the bond's YTM, the following formula is used:PV of coupon payments + PV of face value = Current market priceThe bond's YTM is 2.66%.
The bond's current price is $1,125.76, the face value is $1,000, the annual coupon rate is 3.4%, and the bond matures in ten years.
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Use the following information to answer questions 23-25. Consider the following capital structure for ABC Corporation. The company has a floating-rate bank loan, preferred shares, and common equity in its capital structure. The firm's tax rate is 21%. The risk-free rate is 3% Details on the components of the capital structure are listed below. Debt: Short-term, variable-rate bank loan. $120 million par Remaining maturity of 2 years Bond's rate was recently reset to market yield of 5% So, now priced at par (market value - $120 million) Preferred equity: $100 million par 6% annual coupon Each $1,000 par issue is currently priced at $1.050. Common equity: 5 million shares outstanding Current share price: $50 Stock beta: 1.9 Market risk premium-7.0% What is ABC's cost of preferred equity? 5.71% 6.00% 11.43% 12.00%
The following information to answer questions 23-25. Consider the following capital structure for ABC Corporation, The cost of preferred equity for ABC Corporation is 5.71%.
The cost of preferred equity can be calculated by dividing the annual preferred dividend by the market price per preferred share.
Annual preferred dividend = Preferred coupon rate * Par value = 6% * $100 = $6
Market price per preferred share = $1.050 (given)
Cost of preferred equity = Annual preferred dividend / Market price per preferred share = $6 / $1.050 ≈ 5.71%
Therefore, ABC Corporation's cost of preferred equity is 5.71%.
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Franklin Corporation has an opportunity to purchase bonds at a rate of 11%. They are in the 34% tax bracket. What is the after tax yield on these bonds?
a) 5.93%
b) 9.62%
c) 3.74
d) 11%
e) 7.26%
The answer to this question is (e) 7.26%.Explanation:A corporation's after-tax yield for taxable bonds may be calculated using the following formula:After-Tax Yield = Before-Tax Yield x (100% - Tax Rate)For Franklin Corporation.
Before-tax yield = 11%Tax rate = 34%The formula now becomes:After-tax Yield = 11% x (100% - 34%) = 7.26%Thus, the after-tax yield on these bonds is 7.26%.Option (e) is the correct answer.This question's response is (e) 7.26%.Explanation:The formula below can be used to determine a corporation's taxable bond after-tax yield:After-Tax Yield is Before-Tax Yield multiplied by (100% - Tax Rate).Franklin Corporation:11% is the before-tax yield.Tax rate is 34%.Now, the equation is:After-Tax Yield is equal to 11% x (100% – 34%), or 7.26%.Consequently, these bonds' after-tax yield is 7.26%.The right response is option (e).
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Franklin Corporation has an opportunity to purchase bonds at a rate of 11%. Thus the after-tax yield on these bonds is 7.26%, and option (e) is the correct answer.
The formula to calculate the after-tax yield on bonds is:
After-tax yield = Pre-tax yield × (100% - Tax rate) / 100
As per the question, Franklin Corporation is in the 34% tax bracket. Thus, its tax rate is 34%. Also, the rate at which Franklin Corporation is getting an opportunity to purchase bonds is 11%. Hence, substituting these values in the formula of the after-tax yield, we get:
After-tax yield = 11 × (100 - 34) / 100
= 11 × 66 / 100= 7.26%
Therefore, the after-tax yield on these bonds is 7.26%.
After-tax yield = Pre-tax yield × (100% - Tax rate) / 100
= 11 × (100 - 34) / 100
= 11 × 66 / 100 = 7.26%.
The after-tax yield on these bonds is 7.26%.
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Within the context of corporate governance structures, students must research, consider, analyse and provide referenced comments upon the infamous tweet by Elon Musk made on August 8, 2018, at 3:48am:
"Am considering taking Tesla private at $420. Funding secured."
The task will be assessed within the following sub-tasks:
A background to the firm and its pre-existing governance structures;
An analysis describing what led to the governance flaws in the firm;
A discussion of the effects of the tweet upon the firm, the CEO and the market;
An explanation of the actions taken to redress the governance flaws in the firm by the firm and by the government.
The infamous tweet by Elon Musk on August 8, 2018, where he stated he was considering taking Tesla private at $420 with funding secured, had significant implications for the firm, its CEO, and the market. This incident highlighted governance flaws within Tesla and triggered a series of actions to address the situation, both by the company and the government.
1. Background and Governance Structures: Tesla is an electric vehicle and clean energy company founded by Elon Musk. Prior to the tweet, Tesla had an established corporate governance structure, including a board of directors responsible for overseeing the company's operations and decision-making processes.
2. Governance Flaws: The tweet raised concerns about the transparency, accuracy, and legality of the statement. Musk's tweet was seen as a violation of disclosure requirements, as it potentially misled investors and violated securities laws. This incident revealed a governance flaw in terms of proper communication and adherence to regulatory requirements.
3. Effects on the Firm and the Market: The tweet had a significant impact on Tesla, leading to increased volatility in the stock price and potential reputational damage. Musk himself faced scrutiny, with legal and regulatory authorities investigating the matter. The market reacted to the tweet with confusion and uncertainty, highlighting the importance of accurate and responsible communication by corporate leaders.
4. Actions Taken to Address Governance Flaws: Following the incident, Tesla and Musk took steps to redress the governance flaws. Tesla's board of directors implemented measures to enhance oversight and compliance. Musk settled with the Securities and Exchange Commission (SEC), agreeing to step down as Tesla's chairman and pay a substantial fine. The incident also prompted discussions on corporate governance reforms and the need for greater accountability of executives.
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A portfolio has three stocks-330 shares of Yahoo (YHOO), 320 shares of General Motors (GM), and 50 shares of Standard and Poor's Index Fund (SPY). If the price of YHOO is $20, the price of GM is $30, and the price of SPY is $150, calculate the portfolio weight of YHOO and GM OA. 20.9%, 34.4% OB. 27.8%, 52.7% OC. 27.8%, 40.5% OD. 13.9%, 24.3% COD
The portfolio weight for GM is:(320 x $30) / $23,700 x 100 = 40.5%.
How to find?The solution to the problem that involves calculating the portfolio weight of YHOO and GM is as follows:
First, calculate the total value of the portfolio by multiplying the price of each stock by the number of shares. The total portfolio value will be:330 x $20 = $6,600 (for YHOO)320 x $30 = $9,600 (for GM)50 x $150 = $7,500 (for SPY).
Adding these three amounts will give us a total portfolio value of: $6,600 + $9,600 + $7,500 = $23,700To calculate the portfolio weight of YHOO and GM, divide the value of each stock by the total value of the portfolio and multiply the result by 100.
The portfolio weight for YHOO is:(330 x $20) / $23,700 x 100 = 27.8%.The portfolio weight for GM is:(320 x $30) / $23,700 x 100 = 40.5%.
Hence, the correct answer is option C. 27.8%, 40.5%.
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Suppose the local-market demand a AAA minor-league baseball team
faces for an individual game is = 200 − 1000P. The team has a
stadium with a 16,000-seat capacity. Q is the number to tickets
The local-market demand for an individual game of a AAA minor-league baseball team is given by the equation 200 - 1000P, where P represents the ticket price.
The local-market demand equation for the AAA minor-league baseball team is represented as 200 - 1000P, where P is the ticket price. This equation shows that as the ticket price increases, the quantity demanded decreases. It implies an inverse relationship between price and quantity. Given that the stadium has a capacity of 16,000 seats, the number of tickets sold, represented by Q, cannot exceed this capacity. To determine the actual number of tickets sold for a game, we need more information. Specifically, we would need the specific ticket price (P) for the game in question. By plugging in the given price into the demand equation (200 - 1000P), we can calculate the corresponding quantity (Q) of tickets sold for that game. The capacity constraint of 16,000 seats ensures that the quantity of tickets sold cannot exceed this limit. The team will need to consider various factors such as market demand, pricing strategies, and stadium capacity to optimize ticket sales and revenue.
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An analysis of the external environment in the strategic management process helps to identify ________.
Group of answer choices
a company's opportunities and threats.
the financial ratios the company should use.
a company's strengths and weaknesses.
the short-term goals for a company.
The correct option is "a company's opportunities and threats." An analysis of the external environment in the strategic management process helps to identify a company's opportunities and threats.
Strategic management is the process of planning, evaluating, and implementing long-term goals and plans for an organization.
It's the process of defining an organization's objectives, coming up with strategies to achieve those objectives, and allocating resources to implement those strategies to accomplish the goals that have been established.
Analysis of External Environment in Strategic Management Process
In the strategic management process, an analysis of the external environment is a vital factor. It is done to identify the opportunities and threats that a company may face in the market.
Here are the different external factors that affect the strategic management process:
Opportunities: Identifying the available opportunities for the company can help the company come up with a strategic plan that will enable them to take advantage of these opportunities to help achieve their objectives. This analysis should identify the changes in the market and economy and the changes in technology that can be leveraged to the company's advantage.Threats: On the other hand, identifying threats can help a company develop strategies to mitigate them and avoid any negative impact they may have on the company's objectives. An analysis of the external environment should identify the potential competitors, suppliers, and customers that may be a threat to the company.The external analysis should be able to identify the potential challenges that the company may face in the market that may hinder the company from achieving its objectives.
An analysis of the external environment in the strategic management process helps to identify a company's opportunities and threats.
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The company has been experiencing a lot of turnover. Management
is trying to figure out how to keep its best employees from
leaving.
• What is the issue?
• How would you handle it?
The issue is that the company has been experiencing a lot of turnover and management is trying to figure out how to keep its best employees from leaving. The issue is related to employee retention and the company's ability to retain its top talent.
Investigate the reasons for the high turnover rate The first step in addressing the high turnover rate is to investigate the reasons why employees are leaving. The investigation can be conducted through employee surveys, exit interviews, and discussions with current employees. The investigation can help identify any issues that may be contributing to the high turnover rate, such as poor management, lack of training, or low pay.2. Improve employee retention effortsOnce the reasons for the high turnover rate have been identified, the company can take steps to improve its employee retention efforts. This may include offering more competitive pay and benefits, providing more opportunities for professional development, and improving the work environment.3. Communicate with employeesFinally, it's important to communicate with employees about the steps the company is taking to improve retention. This can help build trust and show employees that their concerns are being taken seriously. Communication can be done through regular company-wide meetings, individual meetings with employees, and through the use of company newsletters and other communication channels.
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If you are maximizing utility and the marginal utility of one good you buy is much greater than the marginal utility of the other good, then it must mean Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the price of the good with the lower marginal utility is lower b the price of the good with the lower marginal utility is higher с the good with a higher price is a necessity d the good with a higher price is a luxury
if the marginal utility of one product is much greater than the marginal utility of the other product, the price of the product with the lower marginal utility will be lower.
If you are maximizing utility and the marginal utility of one good you buy is much greater than the marginal utility of the other good, then it must mean that the price of the good with the lower marginal utility is lower. When marginal utility is greater than the price of a product, it is beneficial to buy additional units of that product until marginal utility equals price. However, when a good's marginal utility is lower than the price, it becomes detrimental to buy more of that product. A consumer will allocate his resources in such a way as to maximize total utility, based on the price of each good and the marginal utility of that good. Therefore, if the marginal utility of one product is much greater than the marginal utility of the other product, the price of the product with the lower marginal utility will be lower.
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On January 1, Carlo, Jamie, Roma, and Fe, formed CABLES Trading, a local partnership, with capital contributions of P500,000, P250,000, P350,000, and P200,000, respectively. The articles of co-partnership provided that: •Each partner shall receive a 6% interest on contributed capital; •Carlo and Jamie shall receive monthly salaries of P15,000 and P13,000, respectively; •The balance of the profits shall be distributed to Carlo, Jamie, Roma, and Fe in 3:3:2:2 ratio, respectively. If the net income for one quarter is P300,000, what is the share in the profit of Fe?
Fe's share in the profit is P50,000. Each partner shall receive a 6% interest on contributed capital.Using this formula, we can calculate the amount of interest that each partner will receive:Carlo = 6% x P500,000 = P30,000Jamie = 6% x P250,000 = P15,000
Cables Trading is a local partnership of Carlo, Jamie, Roma, and Fe, with P500,000, P250,000, P350,000, and P200,000 contributions, respectively. In one quarter, the net income of the company is P300,000. We can calculate each partner's share in the net income using the articles of co-partnership provided for in the problem.
1. Each partner shall receive a 6% interest on contributed capital.Using this formula, we can calculate the amount of interest that each partner will receive:Carlo = 6% x P500,000 = P30,000Jamie = 6% x P250,000 = P15,000Roma = 6% x P350,000 = P21,000Fe = 6% x P200,000 = P12,0002. Carlo and Jamie shall receive monthly salaries of P15,000 and P13,000, respectively.Carlos' salary = P15,000 x 3 months = P45,000Jamie's salary = P13,000 x 3 months = P39,0003. The balance of the profits shall be distributed to Carlo, Jamie, Roma, and Fe in 3:3:2:2 ratios, respectively.
The total profit share is 3 + 3 + 2 + 2 = 10
Fe's share = 2/10 x P300,000 = P60,000Fe's share in the profit of Fe = P60,000 - P12,000 = P50,000
Therefore, Fe's share in the profit is P50,000.
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You're trying to choose between two different investments, both of which have up-front costs of $30,000. Investment G returns $65,000 in six years. Investment H returns $98,000 in nine years. 0.65 points Calculate the rate of return for each these investments. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
The rate of return for Investment G is approximately 7.95%, and the rate of return for Investment H is approximately 8.69%.
To calculate the rate of return for each investment, we can use the formula for compound annual growth rate (CAGR):
CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1
For Investment G, the beginning value is -$30,000 (negative because it is an upfront cost) and the ending value is $65,000. The number of years is 6. Plugging these values into the formula, we find that the rate of return for Investment G is approximately 7.95%.
For Investment H, the beginning value is -$30,000 and the ending value is $98,000. The number of years is 9. Using the same formula, we calculate that the rate of return for Investment H is approximately 8.69%.
These rates of return represent the average annual growth rates for each investment, taking into account the initial cost and the final returns over the given time periods.
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Allison and Leslie, who are twins, just received $45,000 each for their 25th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 5% per year in the past. Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 12% per year in the fund's relatively short history. a. If the two women's funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire? Do not round intermediate calculations. Round your answers to two decimal places. Allison: years Leslie: years b. How large would Allison's annual contributions have to be for her to become a millionaire at the same age as Leslie, assuming their expected returns are realized? Do not round intermediate calculations, Round your answer to the nearest cent. $ c. Is it rational or irrational for Allison to invest in the bond fund rather than in stocks? 1. High expected returns in the market are almost always accompanied by a lot of risk. We couldn't say whether Allison is rational or irrational, just that she seems to have less tolerance for risk than Leslie does. II. High expected returns in the market are almost always accompanied by less risk. We couldn't say whether Allison is rational or irrational, just that she seems to have more tolerance for risk than Leslie does. III. High expected returns in the market are almost always accompanied by a lot of risk. We couldn't say whether Allison is rational or irrational, just that she seems to have more tolerance for risk than Leshe does. IV. High expected returns in the market are almost always accompanied by less risk. We couldn't say whether Allison is rational or irrational, just that she seems to have less tolerance for risk than Leslie does. V. High expected returns in the market are almost always accompanied by a lot of risk. We couldn't say whether Allison is rabonal or irrational, just that she seems to have about the same tolerance for risk than Leslie does. -Select-
a)If the two women's funds earn the same returns in the future as in the past, Allison will be 38.81 years old and Leslie will be 35.12 years old when she becomes a millionaire. Option III is the correct answer
The calculation for Allison: Calculation for Leslie: Allison's annual contributions should be $6,215.53. Calculation: c)In comparison to investing in stocks, Allison's investment in the bond fund is rational. Since Allison has a lower risk tolerance than Leslie, her decision to invest in a bond fund with a lower average rate of return but less volatility is rational.
The statement that "high expected returns in the market are almost always accompanied by a lot of risks" supports Allison's decision. (I.) The statement that "high expected returns in the market are almost always accompanied by less risk" contradicts the investment principles that state that higher expected returns are accompanied by greater risk.
(II.) The statement that "High expected returns in the market are almost always accompanied by a lot of risks" supports Allison's decision, but the statement that "she seems to have more tolerance for risk than Leslie does" is false since Allison has less tolerance for risk than Leslie does.
(III.) The statement that "high expected returns in the market are almost always accompanied by less risk" contradicts the investment principles that state that higher expected returns are accompanied by greater risk.
(IV.) The statement that "high expected returns in the market are almost always accompanied by a lot of risks" supports Allison's decision, but the statement that "she seems to have less tolerance for risk than Leslie does" is false since Allison has less tolerance for risk than Leslie does.
(V.) The statement that "high expected returns in the market are almost always accompanied by a lot of risks" supports Allison's decision, but the statement that "she seems to have about the same tolerance for risk as Leslie does" is false since Allison has less tolerance for risk than Leslie does.
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the s&p 500 has been increasing steadily over the last several months. what does this signal about how investors view future profits?
The steady increase in the S&P 500 over the last several months signals that investors are generally optimistic about future profits.
The S&P 500 is a stock market index that tracks the performance of 500 large publicly traded companies in the United States. When the index experiences a consistent upward trend over an extended period, it suggests that investors have confidence in the overall health and growth prospects of the economy and the companies represented in the index.
Investors typically buy stocks with the expectation of earning profits in the future. Therefore, a rising S&P 500 indicates that investors anticipate positive financial performance and profitability for the companies listed in the index. The upward movement reflects investor optimism, indicating that they have a positive outlook on future profits and expect the companies to generate strong earnings. However, it's important to note that stock market movements are influenced by various factors and can also be subject to volatility and fluctuations in the short term.
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1 points The beginning balance in retained earings of is $1200,000 (Cr). The current period net loss is $350,000 and declared stock dividends $150,000. The ending balance in reared angs oquais: OA Credit of $1400,000 OB Credit of $1550,000 OC Credit of $850.000 OD Credit of $700,000
To determine the ending balance in retained earnings, we need to consider the beginning balance, net loss, and declared stock dividends.
Beginning balance in retained earnings: $1,200,000 (Cr)
Net loss for the current period: $350,000 (Dr)
Declared stock dividends: $150,000 (Dr)
To calculate the ending balance, we need to subtract the net loss and stock dividends from the beginning balance:
$1,200,000 (Cr) - $350,000 (Dr) - $150,000 (Dr) = $700,000 (Cr)
Therefore, the correct option is OD. Credit of $700,000.
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