Answer:
a. Number of shares held after stock dividend:
= Current number of shares + (Current number of shares * Stock dividend percentage)
= 1,300 + ( 1,300 * 25%)
= 1,300 + 325
= 1,625 shares
b. Total value of equity position after stock dividend:
Stock dividend does not change the market value of equity as it reduces the price of each stock so the total value will be the same as before the stock dividend:
= 1,300 * 100
= $130,000
c. Number of shares if shares are split:
= Number of shares * split percentage
= 1,300 * 5/4
= 1,625 shares
A company developed the following per unit standards for its products: 2.30 pounds of direct materials at $5.7 per pound. Last month, 2500 lbs of direct materials were purchased for $5900. The direct materials price variance for last month was
Answer: $5,010 Favorable
Explanation:
Direct materials price variance is calculated by the formula:
= (Standard Price - Actual Price) * Quantity Purchased
Actual price = Amount pounds were purchased for / Pounds purchased
= 5,900 / 2,500
= $2.36
Direct materials price variance = (5.7 - 2.36) * 2,500
= $5,010 Favorable
Management at Bank ABC is attempting to determine which types of instruments to use for risk management. When comparing exchange-traded instruments to over-the-counter (OTC) instruments, which characteristic should the bank associate with exchange-traded instruments
Answer:
Options and Swaps.
Explanation:
Hedging is the process of offsetting risk associated with an asset by taking an opposite position in an underlying asset. The hedging may be profitable or it may be in no loss situation. The most common method of hedging is use of derivatives. It is used to minimize foreign exchange and interest rate movement risks. The few common derivatives are futures, swaps and options.
valued at $850,000 by a real estate expert. The president of the company is questioning the accuracy of the firm’s latest balance sheet because it shows a book value of $550,000 for the building. How would you explain this situation to the president
Question Completion:
A building owned by Hopewell Company was recently valued at $850,000 by a real estate expert.
Answer:
Book Value and Fair Value
There is a difference between the book value and the fair value of an asset. The book value is based on the asset's historical cost. The fair value is the current market price of the asset. In reporting long-term assets, the acceptable basis is the historical cost or the cost of acquiring the asset. This cost is further reduced by annual depreciation charges. The fair value is not often the acceptable basis for reporting long-term assets unless the entity is no longer a going concern or the asset has suffered an impairment loss.
Explanation:
a) Data and Calculation:
Fair value by a real estate expert = $850,000
Book value (historical cost) = $550,000
Difference between fair value and book value = $300,000
The explanation regarding the given situation is described below:
It considered the fair value of the asset at the time of valuation of an asset. At the time of valuation of the asset in the balance sheet, the asset should be recorded like = cost of the asset - depreciation. The asset valuation should be recorded at the book value always not the fair value.Learn more: brainly.com/question/17429689
Pet Place Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows:May$134,000June155,000July169,000All sales are on account. Sixty-five percent of sales are expected to be collected in the month of the sale, 30% in the month following the sale, and the remainder in the second month fol-lowing the sale.Prepare a schedule indicating cash collections from sales for May, June, and July
Answer:
Pet Place Supplies Inc.
Schedule of Cash from Sales for May, June, and July:
May June July
Cash collections:
60% month of sale $80,400 $93,000 $101,400
30% ffg month of sale 40,200 46,500
10% second month 13,400
Total cash collections $80,400 $133,200 $161,300
Explanation:
a) Data and Calculations:
May June July
Projected credit sales $134,000 $155,000 $169,000
Cash collections:
60% month of sale $80,400 $93,000 $101,400
30% ffg month of sale 40,200 46,500
10% second month 13,400
Total cash collections $80,400 $133,200 $161,300
Barraza Corporation uses a weighted-average process costing system. Barraza has two direct materials. One of these materials is added at the beginning of the production process. The other material is added when processing is 50% complete. When will the equivalent units of production for these two materials be equal?
A. when processing on beginning work in process is less than 50% complete at the start of the period.B. when processing on beginning work in process is more than 50% complete at the start of the period.C. when processing on ending work in process is over 50% complete.D. when processing on ending work in process is less than 50% complete.
Answer:
Barraza Corporation
The equivalent units of production for these two materials will be equal when:
C. when processing on ending work in process is over 50% complete.
Explanation:
The reason for this option is that one of the two materials is added at the beginning of the production process, and the other is added when processing has reached 50% completion. Therefore, their equivalent units will become equal when processing on ending work in process is over 50% complete. By that time, 100% of each material would have been added.
Exercise 5-10 Lower of cost or market LO P2 Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 27 $ 55 $ 59 Bats 20 83 77 Shoes 41 100 96 Uniforms 45 41 41 Compute the lower of cost or market for ending inventory applied separately to each product.
Answer:
Martinez Company
Ending inventory is:
= $8,806.
Explanation:
a) Data and Calculations:
Product Units Cost per Unit Market per Unit
Helmets 27 $ 55 $ 59
Bats 20 83 77
Shoes 41 100 96
Uniforms 45 41 41
Lower of cost or market value Valuation:
Product Units Cost per Unit Market per Unit LCM
Helmets 27 $ 55 $ 59 $1,485
Bats 20 83 77 1,540
Shoes 41 100 96 3,936
Uniforms 45 41 41 1,845
Total cost of ending inventory $8,806
A company borrowed $19,000 by signing a 180-day promissory note at 10%. The maturity value of the note is: (Use 360 days a year.)
Answer:
$950
Explanation:
Calculation to determine what The maturity value of the note is:
Maturity value of the note=$19000*10%*180/360
Maturity value of the note=$950
Therefore The maturity value of the note is: $950
Two years ago, Global Airlines sold a $250 million bond issue to finance the purchase of new jet airliners. These bonds were issued in at par value with an original maturity of 12 years and a coupon rate of 12%. Determine the value today of one of these bonds to an investor who requires a 14% rate of return on these securities. Is it a discount or premium bond and why
Answer:
$897
Explanation:
Calculation to determine the value today
Using Financial calculator to determine the Present value (PV)
N = (12- 2) = 10 years
I = 14%
PMT =12%*1,000=120
FV = $1000
PV=?
Hence;
PV = $896.68
PV=$897 (Approximately)
Therefore the value today is $897
A natural monopoly arises whenA. a single firm aggressively forces other competitors to exit and industry.B. a single firm has a monopoly over natural resources.C. two firms merge into a single firm in order to capture more of the market.D. a single firm can produce more cheaply than multiple firms due to a downward-sloping average total cost curve.
Answer:
D
Explanation:
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region
Characteristics of natural monopolies
they have a large fixed cost The firms have a low marginal costThey occur naturally through the free market. It does not occur by government regulation or any other forceMark Turney owns Creative Corners. He does his banking at United Federal Bank (UFB) in Tucson, Arizona. The amounts in his general ledger for payroll taxes and the employee's withholding of Social Security, Medicare, and federal income tax as of April 15 of the current year show the following: Social Security tax payable (employer and employee), $3,020; Medicare tax payable (employer and employee), $734; FUTA tax payable, $84; SUTA tax payable, $414; and Employees income tax payable, $4,622. Journalize the payment of the Form 941 deposit to UFB and the payment of the SUTA tax to the State of Arizona as of April 15, 20--.
Answer and Explanation:
The journal entries are shown below
On 15-Apr
FICA social Security tax payable Dr. $3,020
FICA medicare tax payable Dr. $734
Federal Income tax payableDr. $4,622
To Cash account $8,376
(Being cash paid)
on 15-Apr
State Unemployment tax payable Dr.$414
to Cash account $414
(being cash paid)
On 15-Apr
Federal Unemployment tax payable Dr. $84
To Cash account $84
(being cash paid is recorded)
Consider the following projects. Project CO C1 C2 СЗ C4 C5 A -1,000 +1,000 0 0 0 10 B -2,000 |+1,000 |+1,000 +4,000 +1,000 +1,000 C -3,000 |+1,000 |+1,000 0 +1,000 +1,000 Assume that this firm's beta= 1.5 The expected market return is 12%. The risk free rate is 2.5%. This company can borrow debt at 5.2%. The firm has $5 billion in debt. It has 6 billion shares outstanding at $3 price/shr. The corporate tax rate (Tc) = 21% Question: What is the NPV of project B?a) $3,458
b) -$128
c) -$122
d) $2,158
Answer:
a) $3,458
Explanation:
The net present value is the present value of future cash flows discounted at the firm's weighted average cost of capital(which is the appropriate discount rate in this case) minus the initial investment outlay
cost of equity=risk-free rate+beta*(expected market return-risk free rate)
cost of equity=2.5%+1.5*(12%-2.5%)
cost of equity=16.75%
after-tax cost of debt=5.2%*(1-21%)
after-tax cost of debt=4.11%
WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)
weight of equity=value of equity/(value of equity+value of debt)
value of equity=6 billion*$3=$18 billion
value of debt=$5 billion
weight of equity=$18 billion/($18 billion+$5 billion)
weight of equity=78.26%
weight of debt=1-78.26%
weight of debt=21.74%
WACC=(78.26%*16.75%)+(21.74%*4.11%)
WACC=14.00%
present value of a future cash flow=future cash flow/(1+WACC)^n
n is the year in which the cash flow is expected, it is 1 for year 1 cash flow, 2 for year 2 cash flow ,and so on
NPV of project B=1000/(1+14%)^1+1000/(1+14%)^2++4000/(1+14%)^3+1000/(1+14%)^4+1000/(1+14%)^5-2000
NPV of project B=$ 3,458.00
Cross-training occurs: Group of answer choices when employers need to enhance the effectiveness of training by reducing employees' job duties. when e-learning is used as the primary mode for delivering the content of a training program. when the training takes place outside the employing organization. when people are trained to do more than one job.
Answer:
When people are trained to do more than one job
Explanation:
Cross-training
This is simply defined as a type of training usually in diverse areas so as to improve the overall performance
It uses the good qualities or effectiveness of each training method and combining them to remove the limitations of each method.The origin of cross-training is the said to be triathlon which came about in the 1970s.
Its aims specifically is to combine exercise in which five components of fitness cardiorespiratory endurance, muscular strength, muscular endurance, flexibility, body composition.
Cross training uses more than one type of training such as
•Fartlek training on Tuesdays
• Circuit training on Thursdays
• Weight training on Saturdays
Advantages of Cross training
1. It is very good if an individual is involved.
2. It has more than one activity
3. It is an activity that is made up of different types of events etc.
describe five ways in which contract management might adds value after the contract award stage of the sourcing process.
Answer:
The five ways for contract management are:
1 - how buyer and supplier work after contract has been awarded.
2 - Key decisions made.
3 - Risk of misunderstanding and disagreement.
4 - Identify opportunities and improve performance.
5 - Performance evaluation against KPIs.
Explanation:
Contract management is essential for any business to succeed. There are five ways in which contract management will add value after contract award stage. Usually value addition is achieved by the response of buyer and seller towards the services after the contract has been awarded. There should be right individuals involved in decision making process. The performance should be evaluated against the KPI mentioned in the contract. If both supplier and buyer work with mutual understanding there is very less chance for disagreement and value will be added to the contract performance.
A stock will pay no dividends for the next 5 years. Then it will pay a dividend of $9.51 growing at 1.75%. The discount rate is 9.14%. What should be the current stock price
Answer:
PV= $84.56
Explanation:
Giving the following information:
A stock will pay no dividends for the next 5 years. Then it will pay a dividend of $9.51 growing at 1.75%. The discount rate is 9.14%.
First, we need to calculate the value of the stock in five years:
PV5 = D1 / (i - g)
PV5= (9.51*1.0175) / (0.0914 - 0.0175)
PV5=$130.94
Now, the value today of the stock:
PV= FV / (1 + i)^n
PV= 130.94 / (1.0914^5)
PV= $84.56
Kuley bought a new loom today from GlivCo. She will receive a cash rebate of $820 from GlivCo in 1 year, pay $1,470 to GlivCo in 2 years, receive a cash rebate of $940 from GlivCo in 4 years, and pay $3,580 to GlivCo in 7 years. If the discount rate is 7.12 percent, then what is the present value of the cash flows associated with this transaction
Answer:
$-2013.69
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 820
Cash flow in year 2 = -1470
Cash flow in year 3 = 0
Cash flow in year 4 = 940
Cash flow in year 5 = 0
Cash flow in year 6 = 0
Cash flow in year 7 = -3580
I = 7,12 %
PV = -2013
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Maximum diversification benefit can be achieved if one were to form a portfolio of two stocks whose returns had a correlation coefficient of:
Answer:
-1.0
Explanation:
Diversification in a portfolio can be regarded as spreading of investments by investors so that risk can be minimized. The correlation coefficient "r" that exist between two securities allows us to know how return that's gotten from one security is related to returns from another security. For instance, it is possible for two securities within same sector to move in the same direction, i.e it is possible to be positively correlated, in this sense when price of one goes up , the other price also goes up this might not be with the same margin.
As regards negative correlation, there is movement of security returns in opposite directions, in this sense there is least relationship between the securities. Hence with r= 1 there is movement of the two stocks in opposite direction hence Maximum diversification.
It should be noted that Maximum diversification benefit can be achieved if one were to form a portfolio of two stocks whose returns had a correlation coefficient of -1.0
Using the following year-end information for WorkFit calculate the acid-test ratio:
Cash 58110
Short-term investments 14000
Accounts receivable 58000
Inventory 270000
Supplies 5600
Accounts payable 108000
Wages payable 31,900
a. 0.77
b. 0.42
Answer:
0.97
Explanation:
The computation of the acid-test ratio is given below:
= Quick assets ÷ current liabilities
= (cash + short term investment + account receivable + supplies) ÷ (accounts payable + wages payable)
= ($58,110 + $14,000 + $58,000 + $5,600) ÷ ($108,000 + $31,900)
= $135,710 ÷ $139,900
= 0.97
Evaluating your data involves examining it in terms of reliability, relevance, expertise, adaptability, and biases.
a. True
b. False
Answer:
a. True
Explanation:
In the case when the data is evaluated so it consist of detail examination with respect how much data is reliable that means how the data gives the actual results, how much it is relevant to the current decision, the data needs expertise in order to make some decisions, the data needs adaptability as per the changes done and the biases also
Therefore the given statement is true
Suppose that Portugal and Germany both produce beer and stained glass. Portugal's opportunity cost of producing a pane of stained glass is 4 barrels of beer while Germany's opportunity cost of producing a pane of stained glass is 10 barrels of beer.
By comparing the opportunity cost of producing stained glass in the two countries, you can tell that ___ has a comparative advantage in the production of stained glass and ___ has a comparative advantage in the production of beer.
Suppose that Portugal and Germany consider trading stained glass and beer with each other. Portugal can gain from specialization and trade as long as it receives more than ___ of beer for each pane of stained glass it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than ___ of stained glass for each barrel of beer it exports to Portugal.
Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of beer) would allow both Germany and Portugal to gain from trade?
a. 8 barrels of beer per pane of stained glass.
b. 6 barrels of beer per pane of stained glass.
c. 2 barrels of beer per pane of stained glass.
d. 18 barrels of beer per pane of stained glass.
Answer:
umm I don't really understand the question
Explanation:
a
Sandhill Co. Bonita Industries Net cash provided by operating activities $ 81,330 $91,400 Average current liabilities 49,800 94,900 Net income 181,900 181,900 Capital expenditures 37,660 69,250 Dividends paid 4,570 9,920Compute free cash flow for both companies and compare. (Show a negative free cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Bonita Industries Windsor Inc. Free cash flow $ $ v 's free cash flow is better.
Answer:
Free cash flow = Net cash flow from operating activities - Capital expenditures - Dividends paid
Sandhill free cash flow
= 81,330 - 37,660 - 4,570
= $39,100
Bonita industries
= 91,400 - 69,250 - 9,920
= $12,230
Sandhill Free cash flow is better.
Establishment Industries borrows $890 million at an interest rate of 8.5%. Establishment will pay tax at an effective rate of 21%. What is the present value of interest tax shields if:
Answer: See explanation
Explanation:
Your question isn't complete but I got a similar question online and here is the question that was asked.
What is the present value of interest tax shields if it expects to maintain this debt level into the far future?
The present value of the interest tax shield will be calculated as:
= Tax rate x Debt
= 890million x 21%
= $186.90 million
For each of the following products and services, indicate whether it is more likely produced in a process operation or in a job order operation.
1. Beach towels
2. Bolts and nuts
3. Lawn chairs
4. Headphones
5. Designed patio
6. Door hardware
7. Cut flower arrangements
8. House paints
9. Concrete swimming pools
10. Custom tailored dresses
11. Grand pianos
12. Table lamps
Answer:
S/n Product and services Indication
1 Beach towels Process operation
2 Bolts and nuts Process operation
3 Lawn chairs Process operation
4 Headphones Process operation
5 Designed patio Job order operation
6 Door hardware Process operation
7 Cut flower arrangements Job order operation
8 House paints Process operation
9 Concrete swimming pools Job order operation
10 Custom tailored dresses Job order operation
11 Grand pianos Job order operation
12 Table lamps Process operation
Skysong Industries borrows $22000 at 5% annual interest for six months on October 1, 2022. Which is the appropriate entry to accrue interest if Skysong employs a December 31, 2022, fiscal year?
Answer and Explanation:
The journal entry is shown below:
Interest Expense [$22,000 × 5% × 3 ÷ 12] $275
To Interest payable $275
[Being accrued interest expense is recorded]
Here interest expense is debited as it increased the expense and credited the interest payable as it also increased the liability
Why the mode of pollination in maize is cross-pollination? Why it is important to cover the ear shoot with a butter paper bag before the emergence of silks? What could be the consequences if a few silks emerge before bagging? (Marks4)
Answer:
Its advisable to cover the ears as shot may enters or fly in air.
Explanation:
The cross-pollination is a type of pollination n which the sperm-laden pollen is a transfer from one cone of flower of one plant. This created flowering in plants. Wheat is a self-pollinated crop and for cross foliation to take place what florets must be opened. This is done to allow for genetic diversity and is only available for short peroid of time. Once the skills are viable they make already to be contaminated with foreign pollen and its vital that ears are bagged before the process. As the consequences could be that pollen might fly away.You paid $9,700 for a $10,000 par value Treasury bill maturing in 3 months. What is the holding-period return if you hold the treasury bill until maturity
Answer:
The holding-period return if the treasury bill is held until maturity is:
= $300.
Explanation:
a) Data and Calculations:
Par value of Treasury bill = $10,000
Price paid for the bill = 9,700
Holding-period return = $300
Maturity period of the bill = 3 months
b) The holding-period return, otherwise called the yield, is the total return earned on the Treasury bill investment during the 3 months that it is held. The holding period is the 3-months time the Treasury bill is held by an investor, which corresponds to the period between the purchase date and sale date of the Treasury bill.
traight-line depreciation is a typical example of a: Multiple Choice curvilinear cost. mixed cost. variable cost. fixed cost. step-variable cost.
Answer:
fixed cost.
Explanation:
Straight-line depreciation is a typical example of a fixed cost.
Typical cash inflows of a capital investment project include all of the following EXCEPT: A. projected incremental revenues from the project. B. cost reductions in operating costs. C. the salvage value of the investment at the end of its useful life. D. tax savings generated by depreciation expense. E. the original cost paid for the capital investment.
Answer:
E
Explanation:
Cash inflows are cash increases in a project
they include :
projected incremental revenues from the project.
cost reductions in operating costs.
the salvage value of the investment at the end of its useful life
tax savings generated by depreciation expense.
Cash outflows reduces the cash available in a project. They are usually subtracted
they include
the original cost paid for the capital investment.
working capital investment
A project is profitable if cash inflow exceeds cash outflow
Typical cash inflows of a capital investment project do not include the original cost paid for the capital investment.
A capital investment project is regarded as a project that aims at increasing the assets of the business. The inflows in these projects are derived when cash outflows are subtracted from revenues and cash flows of the project.
Therefore, the original cost that would be paid for the capital investment becomes part of cash outflow from the business, which decreases the total availability of cash.
Learn more about capital investment projects here:
https://brainly.com/question/16279869
Specter Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 810 2 1,110 3 1,370 4 1,500 a. If the discount rate is 11 percent, what is the present value of these cash flows
Answer:
3620.46
Explanation:
Use basic principles to find the present value of a cash flow
PV(1+i)ⁿ=CF
CF*(1+i)⁻ⁿ=PV
so we would have
[tex]810(1+.11)^{-1}+1110*1.11^{-2}+1370*1.11^{-3}+1500*1.11^{-4}=[/tex]3620.459284
which rounds to 3620.46
There is no toll charge to drive on freeway A. If there is freeway congestion at 9 a.m., there will be greater freeway congestion at 11 a.m. if _______.
1. more people carpool at 11 a.m. than at 9 a.m.
2. none of these options.
3. the demand to drive on the freeway is the same at both times.
4. the demand to drive on the freeway at 9 a.m. is greater than the demand to drive on the freeway at 11 a.m.
5. the demand to drive on the freeway at 11 a.m. is greater than the demand to drive on the freeway at 9 a.m.
Answer:
5
Explanation:
If there is greater freeway congestion at 11 a.m than at 9am, it means that more people are using the road at 11am compared to 9am. This means that the demand to drive on the freeway at 11 a.m. is greater than the demand to drive on the freeway at 9 a.m.
If more people carpool at 11 a.m. than at 9 a.m, there would be less cars on the road at 11am. this would make the freeway less congested at 11am when compared to 9am
There is a phenomena that worker/capital output has not increased in line with the increased performance capabilities of information technology. What is this phenomena called?
Answer:
The productivity paradox
Explanation:
productivity paradox (can be regarded as the peculiar observation which is made in business analyst process when there is more investment as regards information technology.
It should be noted that the productivity paradox is a phenomena that worker/capital output has not increased in line with the increased performance capabilities of information technology. What is this phenomena
