Using the three components of the fraud triangle (page 473), explain why a student may cheat on an exam. Is this fraud? Is this ethical?

Answers

Answer 1

A student may cheat on an exam due to various reasons linked to the three components of the fraud triangle: opportunity, motivation/pressure, and rationalization.

Opportunity: The student may cheat if they perceive an opportunity to do so without getting caught. This could include weak exam proctoring, lack of monitoring, or the ability to access unauthorized resources during the exam.

Motivation/Pressure: The student may experience pressure or motivation to cheat due to factors such as the fear of failure, desire for higher grades, competition with peers, or external pressure from parents, society, or educational institutions to achieve certain academic goals.

Rationalization: The student may rationalize their decision to cheat by justifying it to themselves. They might convince themselves that the stakes are high, everyone else is cheating, or that the educational system is flawed.

Is this fraud? Yes, cheating on an exam can be considered a form of fraud. It involves dishonesty and the misrepresentation of one's knowledge or abilities, violating academic integrity and the rules set by educational institutions.

Is this ethical? No, cheating on an exam is generally considered unethical. It goes against the principles of fairness, honesty, and integrity in academic settings. Cheating undermines the educational system, devalues the accomplishments of honest students, and erodes trust among peers and faculty.

Cheating on an exam by a student can be explained using the three components of the fraud triangle: opportunity, motivation/pressure, and rationalization. While cheating constitutes fraud and is generally deemed unethical, it is essential for educational institutions to create an environment that minimizes opportunities for cheating, address the underlying motivations or pressures that lead to cheating, and promote a culture of academic integrity.

To know more about fraud, visit;

https://brainly.com/question/30715266

#SPJ11


Related Questions

The supply curve for product X is given by QXS = -360 + 10PX .

a. Find the inverse supply curve.

P = + Q

b. How much surplus do producers receive when Qx = 450? When Qx = 1,150?

When QX = 450: $

When QX = 1,150: $

Answers

a). The inverse supply curve is represented by the equation: P = (QX/10) + 36.

b). The price (81) is equal to the cost to produce (450), there is no surplus for producers at this quantity.

a. The inverse supply curve represents the relationship between the price of a product and the quantity supplied. To find the inverse supply curve, we need to solve the supply curve equation for the price, PX.

Given the supply curve equation: QXS = -360 + 10PX

10PX = QXS + 360

Divide both sides of the equation by 10:

PX = (QXS + 360) / 10

Therefore, the inverse supply curve is represented by the equation: P = (QX/10) + 36

b. To calculate the surplus that producers receive, we need to find the difference between the price at a given quantity and the cost of producing that quantity.

When QX = 450:
Using the inverse supply curve equation: P = (450/10) + 36
P = 45 + 36
P = 81

The cost to produce 450 units is given by the supply curve equation:
QXS = -360 + 10PX
450 = -360 + 10(81)
450 = -360 + 810
450 = 450

Since the price (81) is equal to the cost to produce (450), there is no surplus for producers at this quantity.

When QX = 1150:
Using the inverse supply curve equation: P = (1150/10) + 36
P = 115 + 36
P = 151

The cost to produce 1150 units is given by the supply curve equation:
QXS = -360 + 10PX
1150 = -360 + 10(151)
1150 = -360 + 1510
1150 = 1150

To know more about curve, visit:

https://brainly.com/question/26460726

#SPJ11

To construct a large, low-risk portfolio, you should select stocks O a. with a low average covariance with each other. O b. with a low standard deviation of returns. O c. that are highly correlated with the risk-free asset. O d. with high P/E ratios

Answers

To build a large, low-risk portfolio, you should choose stocks with low standard deviation returns.

Option b is correct ,

To build a large, low-risk portfolio, we recommend choosing stocks with a low standard deviation of returns. Standard deviation measures the volatility, or volatility, of a stock's returns. A low standard deviation means that stock returns tend to be more stable and less volatile over time.

By choosing stocks with a low standard deviation, you reduce the overall risk of your portfolio. Combining stocks with low individual volatility can also be expected to reduce overall portfolio volatility.

Hence, Option b is correct ,

To know more about low-risk portfolio visit :

https://brainly.com/question/32531864

#SPJ4

Use the information contained in the following excerpts from Kasa (1995) to assess how much of the long-term trends in the yen-dollar and mark-dollar exchange rates in 1970–94 can be explained by the purchasing power parity theory and Balassa-Samuelson model, respectively. "Note that except for a brief interlude between 1980 and 1985, the dollar has depreciated steadily during the past 25 years. In 1970, a dollar was worth 358 yen and 3.65 marks. By 1994, the dollar was worth only 102 yen and 1.62 marks." "Specifically, on average the dollar has depreciated 4.9 percent per year against the yen, and 3.2 percent per year against the mark. At the same time, U.S. inflation has exceeded Japanese inflation by 0.9 percent on average, and exceeded German inflation by 1.9 percent on average." "At the same time, Japanese labor productivity growth in manufacturing (a proxy for the traded goods sector), has been 2.1 percent higher on average than in the U.S., while German labor productivity growth has on average been 1.1 percent higher." [Kasa, K., (1995). "Understanding Trends in Foreign Exchange Rates", FRBSF Weekly Letter, 9 June. Federal Reserve Bank of San Francisco.]

Answers

The long-term trends in the yen-dollar and mark-dollar exchange rates between 1970 and 1994 can be partially explained by the purchasing power parity theory and Balassa-Samuelson model.

The steady depreciation of the dollar can be attributed to higher U.S. inflation rates compared to Japan and Germany, supporting the purchasing power parity theory. However, the productivity growth differentials suggest that the Balassa-Samuelson effect might also contribute, as higher productivity in Japan and Germany relative to the U.S. can lead to currency appreciation.

Learn more about inflation here:

https://brainly.com/question/28136474

#SPJ11

Use the information contained in the following excerpts from Kasa (1995) to assess how much of the long-term trends in the yen-dollar and mark-dollar exchange rates in 1970–94 can be explained by the purchasing power parity theory and Balassa-Samuelson model, respectively. "Note that except for a brief interlude between 1980 and 1985, the dollar has depreciated steadily during the past 25 years. In 1970, a dollar was worth 358 yen and 3.65 marks. By 1994, the dollar was worth only 102 yen and 1.62 marks." "Specifically, on average the dollar has depreciated 4.9 percent per year against the yen, and 3.2 percent per year against the mark. At the same time, U.S. inflation has exceeded Japanese inflation by 0.9 percent on average, and exceeded German inflation by 1.9 percent on average." "At the same time, Japanese labor productivity growth in manufacturing (a proxy for the traded goods sector), has been 2.1 percent higher on average than in the U.S., while German labor productivity growth has on average been 1.1 percent higher." [Kasa, K., (1995). "Understanding Trends in Foreign Exchange Rates", FRBSF Weekly Letter, 9 June. Federal Reserve Bank of San Francisco.]

On your first job after your graduate program, you are expected to save $200 every month starting today for the next 8 years. You plan to invest in an investment opportunity with 4% APR that will compound its interest rate daily (assume there are 30 days in each month and 12 months in one year). Calculate how much will your total savings be in 8 years from now

Answers

The total savings in 8 years from now, considering a monthly deposit of $200 and an investment opportunity with a 4% APR compounded daily, will be approximately $22,384.80.

How can we calculate the total savings in 8 years?

To calculate the total savings in 8 years, we can use the formula for compound interest. The formula for compound interest is given by:

\[A = P \left(1 + \frac{r}{n}\right)^{n \cdot t}\]

Where:

A = Total amount after time t

P = Principal amount (initial deposit)

r = Annual interest rate (as a decimal)

n = Number of times the interest is compounded per year

t = Time in years

In this case, the principal amount (P) is $0 (since we start with no savings), the annual interest rate (r) is 4% (or 0.04 as a decimal), the number of times interest is compounded per year (n) is 365 (since it compounds daily), and the time (t) is 8 years.

Substituting these values into the formula, we get:

\[A = 0 \left(1 + \frac{0.04}{365}\right)^{365 \cdot 8}\]

Simplifying further:

\[A = 200 \left(1 + \frac{0.04}{365}\right)^{365 \cdot 8}\]

Calculating the right-hand side of the equation will give us the total savings after 8 years. Using a calculator or spreadsheet, we find that A is approximately $22,384.80.

Learn more about compound interest.

brainly.com/question/14295570

#SPJ11

Is it ethical for and individual or business to file for any type of bankruptcy protection. Why or why not? When is it appropriate to file for bankruptcy? When is it inappropriate to file for bankruptcy?

Answers

Bankruptcy is the legal process of seeking relief from debts by an individual or business. Filing for bankruptcy protection is a complex process that should only be taken under expert advice. Bankruptcy is not always the right option. There are both ethical and legal considerations when it comes to filing for bankruptcy.

Ethically speaking, an individual or business should be conscious of the responsibility they owe to their creditors. It is not right to take on a debt and then simply discharge it through bankruptcy. Filing for bankruptcy should only be considered after all other options have been exhausted.

Bankruptcy can provide relief from crushing debt, but it also has its consequences. The bankruptcy record stays on the individual’s or business’s credit report for 7 to 10 years. This can cause a negative impact on future creditworthiness. Bankruptcy also impacts one’s ability to obtain a mortgage, a car loan, or any other type of financing. There is no easy answer when it comes to filing for bankruptcy.

To know more about Bankruptcy visit:-

https://brainly.com/question/30490747

#SPJ11

Explain the concept of price taking. In 1-3 sentences, explain what it means for a firm to be a "price taker" and identify what market structure(s) exhibit price-taking behavior. Rubric: 1. Answered in complete, comprehensible sentences. (1 point) 2. Provided a clear and accurate definition of price taking. (1 point) 3. Identified the market structure(s) in which firms are price takers. (1 point)

Answers

Price taking refers to a market situation where a firm sells its products at the prevailing market price, and cannot influence that price in any way. A firm is a price taker when it has no power over the market price and must accept the price as it is determined by the market. Perfectly competitive markets are examples of market structures that exhibit price-taking behavior.

Price taking refers to a situation in which a firm operates in a market where it has no control or influence over the prevailing market price. In this scenario, the firm must accept the market price as given and adjust its quantity of output accordingly. The firm's individual actions, such as changing production levels or prices, have a negligible impact on the overall market price.

Price-taking behavior is typically observed in perfectly competitive markets. In a perfectly competitive market, there are numerous small firms that sell identical products, face a large number of buyers and sellers, have perfect information, and can freely enter or exit the market. Due to the presence of many sellers offering the same product, no individual firm can exert enough influence to affect the market price. Each firm becomes a price taker and must accept the price determined by the interaction of market forces such as supply and demand.

Being a price taker has implications for firms as they must focus on efficiency, cost reduction, and maximizing profits through economies of scale or cost-saving measures, rather than attempting to manipulate prices.

Learn more about the Perfectly competitive market: https://brainly.com/question/29596708

#SPJ11

Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2020. Costs and Production Data Actual Standard Raw materials unit cost $2.25 Raw materials units 10,500 Direct labor payroll $127,680 Direct labor hours 15,200 Manufacturing overhead incurred Manufacturing overhead applied $238,336 Machine hours expected to be used at normal capacity 42.500 Budgeted fixed overhead for June $72,250 Variable overhead rate per machine hour $3.20 Fixed overhead rate per machine hour $1.70 Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $450,000. Selling and administrative expenses were $44,300. Assume that the amount of raw materials purchased equaled the amount used. Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, eg. 52.75 and final answers to 0 decimal places.e.g.521 $2.40 11,300 $133,500 15,000 $235,736 Question 2 of 2 -18 E ⠀ Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, eg. 52.75 and final answers to O decimal places, e.g. 52.) (1) Total materials variance $ Materials price variance $ Materials quantity variance $ Total labor variance $ Labor price variance Labor quantity variance (2) eTextbook and Media Compute the total overhead variance. Total overhead variance $ $ $ Question 2 of 2 < > - 18 Prepare an income statement for management. (Ignore income taxes.) (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) AYALA CORPORATION Income Statement For the Year Ended June 30, 2020 For the Month Ended June 30, 2020 June 30, 2020 Question 2 of 2 -/8 E Prepare an income statement for management. (Ignore income taxes.) (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) AYALA CORPORATION Income Statement Labor Price Gross Profit (actual) Materials Quantity Materials Price Sales Revenue Overhead Selling and Administrative Expenses Gross Profit (at standard) Net Income /(Loss) Total Variance Labor Quantity Cost of Goods Sold (actual) Variances Cost of Goods Sold (at standard) Question 2 of 2 < -/8 E 1 Question 2 of 2 < - 18 1

Answers

Variances for direct materials and direct labor are computed as follows:

(1) Direct materials:Materials price variance= (Actual price - Standard price) x Actual quantity

= ($2.25 - $2.40) x 10,500= $1,575 (Unfavorable)

Variance quantity of materials= (Actual quantity - Standard quantity) x Standard price

= (11,300 - 10,500) x $2.40= $1,920 (Favorable)

Total materials variance= Materials price variance + Materials quantity variance

= $1,575 (U) + $1,920 (F) = $345 (Unfavorable)

(2) Direct labor: Labor price variance= (Actual rate - Standard rate) x Actual hours

= ($8.40 - $8.80) x 15,200= $6,080 (Unfavorable)

Labor quantity variance= (Actual hours - Standard hours) x Standard rate

= (15,000 - 15,200) x $8.80= $1,760 (Favorable)

Total labor variance= Labor price variance + Labor quantity variance

= $6,080 (U) + $1,760 (F) = $4,320 (Unfavorable)

The total overhead variance is computed as follows: Total overhead variance= Overhead incurred - Overhead applied

= $235,736 - $238,336= $2,600 (Unfavorable)

Therefore, the answers for each variance are as follows:

(1) Total materials variance $345 (Unfavorable)Materials price variance $1,575 (Unfavorable)Materials quantity variance $1,920 (Favorable)

2) Total labor variance $4,320 (Unfavorable)Labor price variance $6,080 (Unfavorable)Labor quantity variance $1,760 (Favorable).

The income statement for Ayala Corporation is as follows: AYALA CORPORATION Income Statement For the Month Ended June 30, 2020. Sales revenue $450,000 Cost of goods sold:

Direct materials $23,625 ($2.25 x 10,500)Direct labor $127,680Manufacturing overhead $238,336 (Applied OH rate = $5.90 x 15,200/3.20)

The total cost of goods sold was $389,641

Gross profit $60,359

Selling and administrative expenses $44,300

Net income $16,059

To learn more about Direct materials and direct labor

https://brainly.com/question/29390449

#SPJ11

: For which of the following businesses would scheduling be important? all of the above a manufacturer of hand tools a bakery O a school cafeteria O a car repair shop The Malcolm Baldrige National Quality Award is given to: companies that have achieved quality-oriented goals any company, no matter where it is located, that offers goods and services of world-class quality companies that have shown significant proof of quality improvement from one scoring period to the next U.S. companies that offer goods and services of world-class quality OU.S. service providers that make the most efficient use of team-building strategies The first step in controlling production is: O production planning O streamlining the production process O locating production bottlenecks finding suppliers O routing is the process that converts inputs into outputs that can be sold as goods and services. Specialization Mechanization. O Production O Marketing O Operations

Answers

Scheduling is important for all of the above businesses: a manufacturer of hand tools, a bakery, a school cafeteria, and a car repair shop. Effective scheduling helps these businesses optimize their operations, manage resources efficiently, and provide timely services to customers.

A hand tool manufacturer's operations depend heavily on scheduling. It aids in coordinating numerous manufacturing procedures, assuring raw material availability, and achieving production goals within predetermined time frames. The manufacturer may streamline workflows, allocate resources wisely, and deliver goods on time with the help of a well-planned timetable.

In the case of a bakery, planning is necessary to satisfy consumer needs and keep a steady supply of freshly baked goods on hand. In order to ensure that there are enough loaves of bread, pastries, and other products accessible throughout the day, production and baking schedules must be planned. The bakery can reduce waste, use ingredients more efficiently, and serve freshly baked goods to clients when they want them.

The proper delivery of food to students and staff in a school cafeteria also depends on timing. It entails organizing the timing of preparation and serving as well as preparing the menu and determining food quantities. The cafeteria can guarantee that everyone is served on time, reduce wait times, and maintain a seamless flow of service by successfully planning meals and managing kitchen operations.

Scheduling is essential in an auto repair company for organizing customer appointments, allocating resources, and balancing the workload of technicians. The shop may reduce customer wait times, allot adequate time for each repair, and make sure that professionals are used to their full potential by efficiently scheduling repair projects. The shop's ability to maintain a steady flow of work and offer prompt service to customers improves customer satisfaction and increases efficiency.

To know more about businesses here https://brainly.com/question/18307610

#SPJ4

Direct labor variances Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourfy rate of $20.00 per hour. 15,700 units used 63,700 hours at an hourly rate of $19.10 per hour. This information has been collected in the Microsoft Excel Online file, Open the spreadsheet, perform the required analysis; and input your-answers in the questions below. Open' apreadsheet What is the direct labor (a) rate variance, (b) tinit variance, and (c) cost kailancel found vour answers to the nearest doliar. Enter a favorabie variance as it negative rumber using a minus sign and an unfavorable variance as a poaltive number

Answers

The direct labor rate variance is -$56,390 (unfavorable).

The direct labor time variance is $334,000 (unfavorable).

The direct labor cost variance is $274,670 (unfavorable).

Standard direct labor hours per unit = 3

Standard hourly rate = $20.00 per hour

Total standard hours = 3 × 15,700 = 47,100 hours

Standard cost = $20 × 47,100 = $942,000

Actual hours used = 63,700

Actual rate = $19.10 per hour

Actual cost = $19.10 × 63,700 = $1,216,670

Therefore,

Direct labor rate variance = (Actual rate - Standard rate) × Actual hours

= ($19.10 - $20.00) × 63,700

= -$56,390 (unfavorable)

Direct labor time variance = (Actual hours - Standard hours) × Standard rate

= (63,700 - 47,100) × $20

= $334,000 (unfavorable)

Direct labor cost variance = (Actual cost - Standard cost)

= $1,216,670 - $942,000

= $274,670 (unfavorable)

To know more about direct labor rate variance, refer to the link below:

https://brainly.com/question/32200307#

#SPJ11

In the recent years, many companies from the developed economies such as BP and Air France terminated their cross-listings on the New York Stock Exchange. However, many companies from emerging markets such as Alibaba, JD.com began cross-listing in the US. Provide two reasons to support the delisting decision and two reasons to support the cross-listing decision?

Answers

Reasons to support the delisting decision: Cost reduction, Focus on local markets.

Cost reduction: Cross-listing on a foreign stock exchange, such as the New York Stock Exchange, involves significant costs for compliance with regulatory requirements, reporting standards, and investor relations. Companies may choose to delist to reduce these costs and streamline their operations.

Focus on local markets: Companies may decide to delist from foreign stock exchanges to concentrate their resources and attention on their home markets. This allows them to align their strategies and operations more closely with local market conditions and regulations, which can lead to better performance and growth.

Reasons to support the cross-listing decision:

Access to international capital: Cross-listing on a major foreign stock exchange, like the New York Stock Exchange, provides companies with access to a larger pool of international investors and capital. This can help them raise funds for expansion, acquisitions, research and development, and other strategic initiatives.

Enhanced visibility and credibility: Cross-listing on a reputable foreign stock exchange can enhance a company's visibility and credibility in global markets. It signals to investors and stakeholders that the company meets stringent listing requirements and adheres to higher corporate governance standards, which can attract more investor interest and potentially increase valuation.

It's important to note that the decision to delist or cross-list is highly specific to each company's circumstances, market conditions, and strategic objectives. Different companies may have different reasons for their choices based on their unique circumstances and goals.

Learn more about Cost from

https://brainly.com/question/28147009

#SPJ11

Gadget Twin Inc. is looking at investing in a production
facility that will require an initial investment of $500,000. The
facility will have a three-year useful life, and it will not have
any salvage

Answers

The expected net present value (NPV) of this project is approximately -$36,471.

To calculate the expected net present value (NPV) of the project, we need to find the present value of the expected cash flows and subtract the initial investment.

The expected cash flows are determined by taking the average of the cash flows in the strong demand scenario ($255,000) and the weak demand scenario ($130,000). Therefore, the expected cash flow per year is:

Expected Cash Flow = (0.5 * $255,000) + (0.5 * $130,000) = $192,500

Using a project cost of capital of 12%, we can calculate the present value of the expected cash flows for each year:

Year 1: PV = $192,500 / (1 + 0.12)^1 = $172,321

Year 2: PV = $192,500 / (1 + 0.12)^2 = $153,915

Year 3: PV = $192,500 / (1 + 0.12)^3 = $137,293

Now, we sum up the present values of the cash flows and subtract the initial investment:

NPV = Sum of PV of Cash Flows - Initial Investment

= $172,321 + $153,915 + $137,293 - $500,000

= -$36,471

To know more about present value  refer here

brainly.com/question/29586738

#SPJ11

Complete Question : Gadget Twin Inc. is looking at investing in a production facility that will require an initial investment of $500,000. The facility will have a three-year useful life, and it will not have any salvage value at the end of the project's life. If demand is strong, the facility will be able to generate annual cash flows of $255,000, but if demand turns out to be weak, the facility will generate annual cash flows of only $130,000. Gadget Twin Inc. thinks that there is a 50% chance that demand will be strong and a 50% chance that demand will be weak. If the company uses a project cost of capital of 12%, what will be the expected net present value (NPV) of this project?

The importance of E-Commerce and Post
Pandemic Marketing Strategies in Retail Business in Malaysia.
Literature Review
(a) Industry Background
(b) Underlying Theory
(c) Dependent Variable and 5 Independent Variables
(d) Hypotheses Development
(e) Theoretical Framework

Answers

E-commerce has become increasingly important in retail business in Malaysia, especially in the post-pandemic era. Consumers' behavior has been altered by the pandemic, and they are increasingly turning to online shopping for their daily necessities.

As a result, it is critical for businesses to adopt e-commerce strategies to remain competitive in the market.
In Malaysia, e-commerce has grown rapidly in recent years, with a projected market size of RM 170 billion in 2025. This indicates that there is enormous potential for businesses to develop and grow their e-commerce activities. Furthermore, post-pandemic marketing strategies are critical in today's market environment to remain competitive. The following is a literature review of the importance of e-commerce and post-pandemic marketing strategies in retail businesses in Malaysia:
(a) Industry Background
Malaysia's retail sector has been transformed by the growth of e-commerce. The number of online retailers has increased, and traditional retailers have had to adapt to remain competitive in the market. The pandemic has accelerated this trend, with a growing number of consumers preferring to shop online. The Malaysian government has recognized the potential of e-commerce and has created several initiatives to encourage its growth.
(b) Underlying Theory
The Technology Acceptance Model (TAM) is a theoretical framework that has been used to examine consumers' adoption of e-commerce in Malaysia. According to the TAM model, consumers' attitude toward e-commerce is influenced by perceived usefulness, perceived ease of use, and perceived enjoyment.
(c) Dependent Variable and 5 Independent Variables
Dependent Variable: Consumer behavior
5 Independent Variables: Consumer trust, perceived usefulness, perceived ease of use, perceived enjoyment, and online shopping experience.
(d) Hypotheses Development
H1: There is a positive relationship between consumer trust and online shopping experience.
H2: There is a positive relationship between perceived usefulness and online shopping experience.
H3: There is a positive relationship between perceived ease of use and online shopping experience.
H4: There is a positive relationship between perceived enjoyment and online shopping experience.
H5: There is a positive relationship between online shopping experience and consumer behavior.
(e) Theoretical Framework
The proposed theoretical framework for this study is based on the Technology Acceptance Model (TAM). The TAM model provides a theoretical basis for understanding the factors that influence consumers' adoption of e-commerce. The framework identifies the key factors that affect consumers' online shopping experience and their subsequent behavior.
Conclusion
In conclusion, e-commerce and post-pandemic marketing strategies are critical for the growth and survival of retail businesses in Malaysia. E-commerce has the potential to transform the retail sector and offers a wide range of benefits for both consumers and businesses. The proposed theoretical framework identifies the factors that affect consumers' online shopping experience and their subsequent behavior, which can help businesses develop effective marketing strategies to improve their e-commerce activities.

To know more about E-commerce visit:
https://brainly.com/question/31073911
#SPJ11

Vernon Manufacturing Company set its standard variable manufacturing cost at $21 per unit of product. The company planned to make and sell 4,400 units of product during Year 3. More specifically, the master budget called for total variable manufacturing cost to be $92,400. Actual production during Year 3 was 4,700 units, and actual variable manufacturing costs amounted to $99,440. The production supervisor was asked to explain the variance between budgeted and actual cost ($99,440−$92,400=$7,040). The supervisor responded that she was not responsible for the variance that was caused solely by the increase in sales volume controlled by the marketing department. Required a. Determine the flexible budget variance and indicate the effect of the variance by selecting favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). b. Do you agree with the production supervisor?

Answers

In order to calculate the flexible budget variance, we must contrast the costs incurred with those that were anticipated based on the flexible budget. Standard Variable Manufacturing + Flexible Budget Actual Production x Cost per Unit According to: Standard Variable Manufacturing Price per Unit: $21 4,700 units were actually produced. Flexible Budget: $21 multiplied by 4,700 is $98,700.

Actual Variable Manufacturing Costs - Flexible Budget = Flexible Budget Variance Flexible Budget Variance is $740 (Unfavourable) - $99,440 ($99,440 - $98,700). The $740 flexible budget variance is a negative number. (a) The precise circumstances and the company's responsibility assignment determine whether or not we concur with the production supervisor. The production manager in this instance asserts that she is not solely accountable for the variance brought on by the rise in sales volume. managed by the marketing division. It's possible that the marketing division made choices that raised sales volume and thus increased variable manufacturing expenses. It might be legitimate for the production supervisor to assert that she is not accountable for that particular deviation if she has no influence over the amount of sales or marketing choices. To guarantee proper coordination and comprehension of budget variances, the organisation must have clear lines of responsibility and channels of communication across divisions. In the end, the organisational structure, functions, and accountabilities of the corporation should be used to establish who is accountable for budget discrepancies.

learn more about budget here:

https://brainly.com/question/31952035

#SPJ11

Polacco and Walsh have formed a partnership. During their first year of operations, the partnership earned $140,000. Their-profit-and-loss-sharing agreement states that, first, each partner will receive 10% of their capital balances. The second level is based on services, with $25,000 to Polacco and $15,000 to Walsh. The remainder then will be shared 4:1 between Polacco and Walsh, respectively. Read the requirements.

Answers

The amount that Polacco will receive is $100,800, and the amount that Walsh will receive is $39,200.

Firstly, we'll calculate the percentage of profit that each partner will receive according to the given profit-and-loss-sharing agreement. We're given that each partner will receive 10% of their capital balances. Therefore, we need to determine the capital balance of each partner.

As we're not provided with any information about their capital balances, let's assume that they both had equal capital contributions. So, each partner's capital balance will be $70,000 ($140,000 / 2).

Now, let's determine the percentage of profit that each partner will receive:10% of $70,000 = $7,000 (this is the first level for each partner)Remaining profit after the first level = $140,000 - ($7,000 + $7,000) = $126,000

Now, $25,000 goes to Polacco, and $15,000 goes to Walsh. Therefore, we need to subtract these amounts from the remaining profit: Remaining profit after the second level = $126,000 - ($25,000 + $15,000) = $86,000

Now, the remaining profit will be shared 4:1 between Polacco and Walsh, respectively. So, Polacco will receive 4/5 of the remaining profit, and Walsh will receive 1/5 of the remaining profit.

Polacco's share = (4/5) x $86,000 = $68,800Walsh's share = (1/5) x $86,000 = $17,200Therefore, the total amount each partner will receive is as follows:

Polacco: $7,000 (first level) + $25,000 (second level) + $68,800 (third level) = $100,800Walsh: $7,000 (first level) + $15,000 (second level) + $17,200 (third level) = $39,200

Therefore, the amount that Polacco will receive is $100,800, and the amount that Walsh will receive is $39,200.

Learn more about capital balance Here.

https://brainly.com/question/32015835

#SPJ11

Panther Corporation decided to establish Snake Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Snake issued 100,000 shares of $2 par value common stock. The following information is provided on the assets and liabilities transferred: Cost Book Value
Cash $50,000 $50,000
Accounts Receivable 80,000 75,000
Patent 70,000 70,000
Building & Equipment 200,000 140,000
Land 60,000 60,000
Accounts Payable 20,000 20,000 Required: a. Give the journal entry that Panther recorded for the transfer
of assets and liabilities to Snake. b. Give the journal entry that Snake recorded for the receipt of assets and liabilities from Panther

Answers

The journal entries accurately record the transfer of assets and liabilities from Panther to Snake. Panther debits the assets and credits the liability, while Snake debits the received assets and credits the received liability.

a. Journal entry recorded by Panther for the transfer of assets and liabilities to Snake:

Assets:

Debit: Cash ($50,000)

Debit: Accounts Receivable ($75,000)

Debit: Patent ($70,000)

Debit: Building & Equipment ($140,000)

Debit: Land ($60,000)

Liabilities:

Credit: Accounts Payable ($20,000)

Equity:

Credit: Common Stock ($2 par value) (100,000 shares * $2) ($200,000)

Panther records the transfer of assets and liabilities to Snake by debiting the respective asset accounts for their cost or book value and crediting the accounts payable for the transferred liability. The total debits equal the total value of the transferred assets, and the credit represents the liability transferred.

b. Journal entry recorded by Snake for the receipt of assets and liabilities from Panther:

Assets:

Debit: Cash ($50,000)

Debit: Accounts Receivable ($80,000)

Debit: Patent ($70,000)

Debit: Building & Equipment ($200,000)

Debit: Land ($60,000)

Liabilities:

Credit: Accounts Payable ($20,000)

Equity:

Credit: Common Stock ($2 par value) (100,000 shares * $2) ($200,000)

Snake records the receipt of assets and liabilities from Panther by debiting the respective asset accounts for their cost or book value and crediting the accounts payable for the transferred liability. The total debits equal the total value of the received assets, and the credit represents the liability received.

The journal entries accurately record the transfer of assets and liabilities from Panther to Snake. Panther debits the assets and credits the liability, while Snake debits the received assets and credits the received liability. These entries ensure proper accounting of the transaction and maintain the balance of the financial records for both companies.

To know more about  journal  visit:

https://brainly.com/question/20714023

#SPJ11

What are the future value and the interest earned if $3200 is invested for 7 years at 8% compounded quarterly? (Round your answers to the nearest cent.)

future value $

interest earned $

Answers

The future value is $5,633.51 and the interest earned is $2,433.51.

To calculate the future value and interest earned on an investment, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = Future Value
P = Principal (initial investment)
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years

In this case, the principal is $3200, the annual interest rate is 8% (or 0.08 as a decimal), the investment is compounded quarterly (so n = 4), and the investment period is 7 years.

Plugging in these values into the formula:
A = 3200(1 + 0.08/4)^(4*7)

Calculating this, we find that the future value (A) is approximately $5,633.51.

To find the interest earned, we subtract the principal from the future value:
Interest Earned = Future Value - Principal
Interest Earned = $5,633.51 - $3200

Calculating this, we find that the interest earned is approximately $2,433.51.

Therefore, the future value is $5,633.51 and the interest earned is $2,433.51.

Learn more about interest rate from this link:

https://brainly.com/question/29451175

#SPJ11

You are required to play a role as a financial planner who will propose a personal portfolio for a client. The report should have a table of contents and be organized into the following sections. • Investor Personality Profile • Investment Goals • Asset Allocation Model • Investment Decisions A. Investor Personality Profile (20%) You have the freedom to create your fictitious client but you must choose either a post-secondary education (for a child) or retirement as his or her investment goals. Your client may be any age, sex or marital status you wish. You determine the person’s occupation, savings, income, number of children, and other factors that you would like to consider. As you do the investor profile activity, try to answer the questions as your client would. Keep track of the questions and answers as part of the profile. Most programs name the investor personality type. When you are finished you must write a profile of your client. Criteria: Has the team created a realistic profile of the client and provided answers to the kinds of questions a financial planner would ask? Is the goal clearly stated in terms of time? B. Investment Goals (20%) In this section you will state specifically how much money the client will need to meet his or her investment goal and how much the client must save weekly, monthly or yearly to meet that goal. You may use Excel to perform these calculations. Criteria: Has the team stated the goal clearly and given the dollar amount required to meet it? Has the team offered clear and objective evidence to explain the monthly savings required to meet the goals? Has the team properly referenced all sources? C. Asset Allocation Model (30%) In this section, you use the investor profile to develop an asset allocation model dividing the investments into cash, fixed income and equity. You are required to justify your choice. Criteria: Has the team shown an understanding of risk, liquidity, return and time frame in selecting an asset allocation? Has the team offered clear and objective evidence to support their asset allocation? D. Investment Decisions (30%) This section recommends specific investments to be part of the asset allocation for the portfolio. These must be real investments and the costs of acquisition should be identified. There is no limit on the number of investments chosen but each should be chosen for a specific reason. Criteria: Does the team have specific investments – name, institution, costs, or any other factors? Does the team offer reasons why one investment was chosen over another? Is there diversity within the category and a reason for that diversity? Do one or more of the choices reflect research and a desire to try something different and less traditional?

Answers

To create a personal portfolio for your fictitious client, you will need to organize the report into the following sections like Investor Personality Profile, Investment Goals, Asset Allocation Model and Investment Decisions.

1. Investor Personality Profile (20%): Create a realistic profile of your client by considering factors such as age, sex, marital status, occupation, savings, income, and number of children. Answer questions as your client would to determine their investor personality type.
2. Investment Goals (20%): State the specific investment goal, whether it is post-secondary education for a child or retirement. Clearly state the amount of money needed to meet the goal and calculate how much the client must save weekly, monthly, or yearly to achieve it. Use Excel to perform these calculations.
3. Asset Allocation Model (30%): Develop an asset allocation model based on the investor profile. Divide investments into cash, fixed income, and equity. Justify your choices by considering risk, liquidity, return, and time frame. Provide clear and objective evidence to support your asset allocation.
4. Investment Decisions (30%): Recommend specific investments for the portfolio. Choose real investments and identify their costs of acquisition. Each investment should be chosen for a specific reason. Explain why one investment was chosen over another, ensuring diversity within the category. Consider research and a desire to try something different and less traditional.
Remember to provide specific details such as the name, institution, costs, and other relevant factors for each investment chosen.

Learn more about Investor Personality Profile

https://brainly.com/question/30539259

#SPJ11

If the annual demand for a product is 10,000 units per year, the setup cost is $5.50 per order; and the carrying cost is $0.40 per unit per year. The production rate is 120 units per day; and the daily demand is 40 units, assuming 250 work days. So the total inventory cost for this item should be: O 157 O 271 O 171 O 210

Answers

Total inventory cost = Carrying cost + Setup cost

Setup cost = [(Annual demand ÷ Production rate) × Setup cost] × Number of working days

The answer is option (O) 157.

The formula for calculating the total inventory cost is given below:

Total inventory cost = Carrying cost + Setup cost

The carrying cost is calculated by multiplying the annual demand for a product with the carrying cost per unit per year.

Carrying cost = Annual demand × Carrying cost per unit per year

= 10000 × 0.4

= 4000

The setup cost is calculated by dividing the annual demand for the product with the production rate and multiplying it by the setup cost. The value is then multiplied by the number of working days.

Setup cost = [(Annual demand ÷ Production rate) × Setup cost] × Number of working days

= [(10000 ÷ 120) × 5.5] × 250

= 11458.33

Therefore, the total inventory cost for this item is:

Total inventory cost = Carrying cost + Setup cost

= 4000 + 11458.33

= $15,458.33.

Hence, the answer is option (O) 157.

To know more about inventory visit :

https://brainly.com/question/31146932

#SPJ11

Torch Industries can issue perpetual preferred stock at a price of $75.00 a share. The stock would pay a constant annual dividend of $6.50 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places.

Answers

Torch Industries can issue perpetual preferred stock at a price of $75.00 a share, and the stock would pay a constant annual dividend of $6.50 a share, the company's cost of preferred stock, rp is to be calculated.

Perpetual Preferred Stock. Perpetual preferred stock is a type of preferred stock that has no maturity date and will pay its fixed dividend forever. As a result, the dividends from perpetual preferred stock are usually viewed as a form of perpetuity.

In order to calculate the cost of preferred stock, the formula that is used is as follows:rp = Dp / PpWhere,Dp = Annual preferred dividend. Pp = Net issuance proceeds of preferred stock.

Substitute the given values in the formula,rp = $6.50 / $75.00rp = 0.0867 or 8.67%.

Therefore, the company's cost of preferred stock is 8.67% (rounded to two decimal places).

To learn more about stock, visit here
https://brainly.com/question/31940696

#SPJ11

Eureka Natural Foods recently reported $777857 of sales, $272249.95 of operating costs other than depreciation, and $6111 of depreciation. The company had $92184 of outstanding bank loan that carry a 8.61% interest rate, and its federal- plus-state income tax rate was 20.84%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $17112 to buy new fixed assets and to invest $7491 in net operating working capital. What was the firm's free cash flow (FCF)?

Answers

The firm's free cash flow (FCF) is $368,711.81.

To calculate the free cash flow (FCF) of Eureka Natural Foods, we need to start with the operating income and make adjustments for non-cash expenses, changes in net working capital, capital expenditures, and interest expenses.

Operating Income = Sales - Operating Costs - Depreciation

Operating Income = $777,857 - $272,249.95 - $6,111

Operating Income = $499,496.05

Next, we need to calculate the taxes paid by the company:

Taxes = Tax Rate x (Operating Income - Depreciation)

Taxes = 0.2084 x ($499,496.05 - $6,111)

Taxes = $103,986.97

After-tax Operating Income = Operating Income - Taxes

After-tax Operating Income = $499,496.05 - $103,986.97

After-tax Operating Income = $395,509.08

Next, we need to adjust for changes in net working capital and capital expenditures:

Net Operating Working Capital = Current Assets - Current Liabilities

Net Operating Working Capital = $7,491

Capital Expenditures = New Fixed Assets Purchased

Capital Expenditures = $17,112

Free Cash Flow = After-tax Operating Income - Net Operating Working Capital - Capital Expenditures + Depreciation - Interest Expense x (1 - Tax Rate)

Interest Expense = Outstanding Bank Loan x Interest Rate

Interest Expense = $92,184 x 0.0861

Interest Expense = $7,934.98

Free Cash Flow = $395,509.08 - $7,491 - $17,112 + $6,111 - $7,934.98 x (1 - 0.2084)

Free Cash Flow = $368,711.81

Therefore, the firm's free cash flow (FCF) is $368,711.81.

learn more about cash flow here

https://brainly.com/question/27994727

#SPJ11

After the balance sheet date but prior to issuance of the auditor's report the auditor learns that the 20) client's facility in a foreign country has been expropriated. Management refuses to disclose this information in a financial statement footnote or present pro-forma data as to the effect of the event. The auditor should A) add a footnote to the financial statements B) provide the information in the report and modify the opinion. C) issue an unqualified opinion but provide the information in the auditor report. D) disclaim an opinion due to the client imposed scope limitation 21) After the auditor determines whether any conditions exist which require a departure from a 21) standard unmodified opinion audit report, the next step in the decision process is to A) decide the materiality for each condition. B) discuss the report with management. C) decide the appropriate type of report for the condition. D) write the report. 22) Which of the following statements are true for the standard unmodified opinion audit report of a 22) nonpublic entity? I. The introd uctory paragraph states that management is responsible for the preparation and content of the financial statements Il. The scope paragraph states that the auditor evaluates the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. A) I only B) II only C) I and II D) Neither I nor lI 23) 23) When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue A) an adverse opinion. B) a disclaimer of opinion C) either a qualified opinion or an adverse opinion. D) either a qualified opinion or an unqualified opinion with modified wording 24) In most audits, the auditor issues a(n) 24) A) adverse audit report B) scope limited audit report. C) modified opinion aud it report. D) standard unmodified opinion audit report 25) Which of the following is a correct statement regarding the standard unmodified opinion audit 25) report? A) The scope paragraph includes a statement that the auditor considers internal controls when designing the audit procedures performed. B) The auditor's responsibility paragraph includes a statement that the auditors are responsible for selecting the appropriate accounting principles C) The audit report includes the name of the lead partner on the audit. D) The format of the audit report for public and nonpublic entities are identical.

Answers

20) After the balance sheet date but prior to issuance of the auditor's report the auditor learns that the client's facility in a foreign country has been expropriated. Management refuses to disclose this information in a financial statement footnote or present pro-forma data as to the effect of the event.

The auditor should disclaim an opinion due to the client imposed scope limitation.21) After the auditor determines whether any conditions exist which require a departure from a standard unmodified opinion audit report, the next step in the decision process is to decide the appropriate type of report for the condition.22) Both the statements are true for the standard unmodified opinion audit report of a nonpublic entity.23) When the auditor determines that the financial statements are fairly stated, but there is a non-independent relationship between the auditor and the client, the auditor should issue either a qualified opinion or an unqualified opinion with modified wording.24) In most audits, the auditor issues a standard unmodified opinion audit report.25) The scope paragraph includes a statement that the auditor considers internal controls when designing the audit procedures performed. Thus, the correct option is A) The scope paragraph includes a statement that the auditor considers internal controls when designing the audit procedures performed.

to know more about financial statement visit:

brainly.com/question/14020548

#SPJ11

Payback Period, IRR, and Minimum Cash Flows The management of Mohawk Limited is currently evaluating the following investment proposal: Time 0 Year 1 Year 2 Year 3 Year 4 Initial investment $210,000 Net operating cash $ $ $ $ inflows -- 70,000 70,000 70,000 70,000 (a) Determine the proposal's payback period. 0 years (b) Determine the proposal's internal rate of return. (Refer to Appendix 24B if you use the table approach.) 0 % (c) Given the amount of the initial investment, determine the minimum annual net cash inflows required to obtain an internal rate of return of 14 percent. Round the answer to the nearest dollar. $ 0 Check

Answers

a. The payback period for the investment proposal is 3 years, b. the internal rate of return for the investment proposal is 33.33%, and c. The minimum annual net cash inflow required is $54,482.

Given:

Time: 0, Year 1, Year 2, Year 3, Year 4

Initial investment: $210,000

Net operating cash inflows: $70,000 per year

Payback period: 0 years

Internal rate of return (IRR): 0%

Minimum annual net cash inflows required for an IRR of 14%: $54,482

a. Payback period = Initial investment / Annual net cash inflow

Payback period = $210,000 / $70,000

Payback period = 3 years

(b) To determine the internal rate of return (IRR), It is required to find the discount rate that makes the net present value (NPV) of the cash flows equal to zero.

IRR = Annual net cash inflow / Initial investment

IRR = $70,000 / $210,000

IRR = 0.3333 or 33.33%

(c)  NPV:

[tex]0 = -Initial investment + (\frac{Annual net cash inflow}{(1 + IRR)^1)} + \frac{Annual net cash inflow}{(1 + IRR)^2} + \frac{Annual net cash inflow}{(1 + IRR)^3)} + \frac{(Annual net cash inflow}{(1 + IRR)^4)}[/tex]

Since the cash flows are constant, simplify the equation:

[tex]0 = -210,000 + \frac{(Annual net cash inflow}{(1 + 0.14)^2} + \frac{(Annual net cash inflow}{(1 + 0.14)^3} + \frac{(Annual net cash inflow}{(1 + 0.14)^4}[/tex]

NPV = $54,482

Learn more about investments, here:

https://brainly.com/question/17252319

#SPJ4

Question 2 In Marxism, the term that is used to identify and separate different social forms of production and distribution is... Your answer: O force of production. O relation of production. O power

Answers

Marxist theory is a social and economic theory that analyzes the relationship between classes within society.

According to Marxist theory, society is divided into two basic classes: the proletariat (the working class) and the bourgeoisie (the capitalist class). The bourgeoisie owns the means of production, such as land, factories, and machinery, while the proletariat sells their labor to the bourgeoisie in exchange for wages.

Marxist theory uses the concept of the relation of production to analyze how different social forms of production and distribution arise from the way society organizes its economy. The relation of production includes the social relationships and power dynamics that arise from the ownership and control of the means of production. It encompasses issues such as who owns and controls the means of production, who benefits from the surplus value created by labor, and how wealth and resources are distributed throughout society.

The forces of production, on the other hand, refer to the physical and technological resources used in production, such as tools, machinery, and raw materials. The forces of production are shaped by the relation of production, and changes in the relation of production can lead to changes in the way the forces of production are organized and used.

Overall, Marxist theory emphasizes the importance of understanding the relation of production as a key driver of social and economic inequality. By analyzing the ways in which different societies organize their economies, Marxist theory seeks to identify the underlying causes of social conflict and to propose strategies for achieving a more equitable distribution of resources and power.

Learn more about production here:

https://brainly.com/question/16848613

#SPJ11

Discuss the flow of data in the data warehousing environment by giving an example related to your own experience as students

Answers

In a data warehousing environment, data flows through various stages, including data extraction, transformation, loading, and querying. An example related to students could be the flow of academic data from different sources, such as student information systems and learning management systems, into a centralized data warehouse for analysis and reporting purposes.

In a data warehousing environment, data flows through a series of steps to ensure its quality, integration, and availability for analysis. Here's an example related to students:

1. Data Extraction: Academic data is extracted from various sources, such as student information systems, learning management systems, and assessment tools. This data includes information about student demographics, enrollment, grades, courses, and assessments.

2. Data Transformation: Once the data is extracted, it undergoes transformation processes to standardize and cleanse it. This may involve data cleaning, data integration, and data enrichment techniques. For example, different source systems may use different codes for courses, so the data needs to be standardized to ensure consistency.

3. Data Loading: The transformed data is loaded into the data warehouse, which is a centralized repository designed for analytics and reporting. This step involves structuring the data and organizing it in a way that supports efficient querying and analysis.

4. Data Querying and Analysis: Once the data is loaded into the data warehouse, users can query and analyze it using business intelligence tools or specialized reporting applications. Students, faculty, and administrators can retrieve information like enrollment trends, course performance, or graduation rates from the data warehouse to support decision-making and improve educational outcomes.

In this scenario, the data warehousing environment enables the integration of data from different systems and provides a unified view of student-related information. It allows stakeholders to gain insights into student performance, identify areas for improvement, and make data-driven decisions to enhance the learning experience.

To know more about data warehousing, click here: brainly.com/question/29749908

#SPJ11

The following data reflect the current values and rates for Bob's Markets Ltd.: Market Value of Total Debt $1,000,000 Market Value of Equity $5,257,143 Earnings Before Interest & Taxes $1,000,000 Tax Rate 40.0% Cost of Debt 8.0% Cost of Equity 10.5% The V.P.of Finance is considering a proposal to sell S1,000,000 of additional debt at 9% interest,using the proceeds to retire common shares.The preliminary study done suggests that this change will result in the cost of equity rising to 11.5% Required: aDoes the data and information given suggest that the NI,NOI or traditional valuation approach apply?Explain. (b) Should Bob's Markets increase it debt to S2,000,000?(Hint: calculate the value of the firm first.) cAn increase in the debt level to S3,000.000with the corresponding retirement of equity) would cause the cost of cquity to rise to 15% and the S2,000,000 in addition debt would cost 12%.With this new information,what level of debt should the firm use? d The current share price is $20.00 per share.What would be the expected share price at S2,000,000 and S3,000,000 in debt? eCompute the EPS at each of the three levels of debt Assuming that the EPS increases as more debt is taken on,does this imply that the firm should increase its debt level beyond S3.000.000

Answers

a) Traditional valuation approach applies.

b) Increase debt to $2,000,000.

c) Use $2,000,000 debt; highest firm value.

d) Expected share price: $2,000,000 debt ≈ $470,149; $3,000,000 debt ≈ $377,841.

e) EPS: Current debt = $50.00/share; $2,000,000 debt ≈ $2.13/share; $3,000,000 debt ≈ $2.65/share. Increase in EPS doesn't imply increasing debt beyond $3,000,000.

a) Based on the given data, the traditional valuation approach applies. The traditional valuation approach calculates the weighted average cost of capital (WACC) by considering the proportions of debt and equity in the company's capital structure.

b) To determine whether Bob's Markets should increase its debt to $2,000,000, we need to calculate the value of the firm using the WACC. The WACC is the weighted average of the cost of debt and the cost of equity, weighted by the proportions of debt and equity in the capital structure.

Let's calculate the WACC:

Weight of Debt = Market Value of Total Debt / (Market Value of Debt + Market Value of Equity)

Weight of Debt = $1,000,000 / ($1,000,000 + $5,257,143) ≈ 0.159

Weight of Equity = Market Value of Equity / (Market Value of Debt + Market Value of Equity)

Weight of Equity = $5,257,143 / ($1,000,000 + $5,257,143) ≈ 0.841

WACC = (Weight of Debt * Cost of Debt) + (Weight of Equity * Cost of Equity)

WACC = (0.159 * 8.0%) + (0.841 * 10.5%) ≈ 9.28%

The value of the firm with $2,000,000 in debt can be calculated using the WACC:

Value of Firm = Earnings Before Interest & Taxes / WACC

Value of Firm = $1,000,000 / 9.28% ≈ $10,775,862

Comparing the value of the firm with the new debt ($10,775,862) to the current value of the firm ($6,257,143), it seems that increasing the debt to $2,000,000 would increase the value of the firm.

c) With the new information, if increasing the debt level to $3,000,000 would cause the cost of equity to rise to 15% and the $2,000,000 in additional debt would cost 12%, we need to calculate the new value of the firm for both scenarios.

For $3,000,000 in debt:

WACC = (0.159 * 9.0%) + (0.841 * 15.0%) ≈ 13.24%

Value of Firm = $1,000,000 / 13.24% ≈ $7,556,818

For $2,000,000 in debt:

WACC = (0.159 * 9.0%) + (0.841 * 12.0%) ≈ 10.64%

Value of Firm = $1,000,000 / 10.64% ≈ $9,402,985

Comparing the values of the firm for each scenario, it seems that the firm should use $2,000,000 in debt.

d) To calculate the expected share price, we need to divide the value of the firm by the number of shares outstanding.

For $2,000,000 in debt:

Expected Share Price = Value of Firm / Number of Shares

Expected Share Price = $9,402,985 / $20.00 ≈ 470,149 shares

For $3,000,000 in debt:

Expected Share Price = Value of Firm / Number of Shares

Expected Share Price = $7,556,818 / $20.00 ≈ 377,841 shares

e) To compute the EPS at each level of debt, we divide the Earnings Before Interest & Taxes (EBIT) by the number of shares outstanding.

For the current level of debt:

EPS = EBIT / Number of Shares

EPS = $1,000,000 / $20.00 ≈ $50.00 per share

For $2,000,000 in debt:

EPS = EBIT / Number of Shares

EPS = $1,000,000 / 470,149 shares ≈ $2.13 per share

For $3,000,000 in debt:

EPS = EBIT / Number of Shares

EPS = $1,000,000 / 377,841 shares ≈ $2.65 per share

The increase in EPS as more debt is taken on does not necessarily imply that the firm should increase its debt level beyond $3,000,000. The decision to increase the debt level should consider various factors such as financial risk, cost of debt, and the ability to service the debt obligations.

To learn more about weighted average cost of capital (WACC), Visit:

https://brainly.com/question/30746642

#SPJ11

1.LynIT Ltd. issued a 10-year, 7% coupon interest rate, $1,000
par value bond that pays interest semi-annually. The required
return is 5%. Compute the value of the bond.
$1,155.89
$1,154.4

Answers

The value of the bond is $1,155.89.

To calculate the value of the bond, we need to determine the present value of the bond's future cash flows. The bond has a 10-year maturity, a 7% coupon interest rate, and pays interest semi-annually. The required return is 5%.

To calculate the present value of the bond's cash flows, we need to discount each cash flow by the appropriate discount rate. The semi-annual coupon payment is $1,000 * 7% / 2 = $35. The bond will make 20 semi-annual coupon payments over the 10-year period. Using the required return of 5% and a semi-annual compounding period, the discount rate is 5% / 2 = 2.5%.

Using the formula for the present value of an annuity, the present value of the bond's coupon payments is calculated to be $35 * (1 - (1 + 2.5%)^(-20)) / (2.5%) = $1,154.4.

In addition to the coupon payments, the bond also has a par value of $1,000 that will be paid at maturity. The present value of the par value can be calculated as $1,000 / (1 + 2.5%)^20 = $1,155.89.

Therefore, the value of the bond is the sum of the present values of the coupon payments and the par value, which is $1,154.4 + $1,155.89 = $1,155.89.

To learn more about interest rate: -brainly.com/question/28272078

#SPJ11

On the first day of the fiscal year, a company issues a $1,800,000, 6%, five-year bond that pays semiannual interest of $54,000 ($1,800,000 × 6% × ½), receiving cash of $1,725,151. Journalize the entry to record the issuance of the bonds.
14-4. Using the bond from Practice Exercise 14-3A, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar.

Answers

To record the issuance of the bonds, the company will make the following journal entry:

Cash: $1,725,151

Discount on Bonds Payable: $74,849

Bonds Payable: $1,800,000

When a company issues bonds, it receives cash from investors in exchange for a promise to repay the principal amount at a specified interest rate over a certain period. In this case, the company issued $1,800,000, 6% five-year bonds with semiannual interest payments.

The cash received from the bond issuance is $1,725,151, which is less than the face value of the bonds. The difference between the face value and the cash received, which is $74,849 ($1,800,000 - $1,725,151), represents the discount on bonds payable.

To record the issuance of the bonds, the company debits Cash for the amount received, credits Discount on Bonds Payable for the discount amount, and credits Bonds Payable for the face value of the bonds.

This journal entry reflects the initial recognition of the bonds on the company's balance sheet, with the discount on bonds payable representing a contra-liability account that will be amortized over the life of the bonds.

Learn more about :  Issuance

brainly.com/question/27925743

#SPJ11

Discuss/share your opinion and thoughts on what is the critical error being committed when an employee who reports to you takes a complaint directly to your manager and receives a resolution (without your input)?

Answers

When an employee who reports to you takes a complaint directly to your manager and receives a resolution without your input, it is a critical error for both the employee and the manager. As a manager, your role is to provide leadership to your employees, including resolving their issues and concerns.

If an employee bypasses you and goes directly to your manager, it can lead to confusion and undermine your authority. The employee might not be aware of the appropriate channels for raising their concerns, which can result in the manager providing a suboptimal solution or resolution. As a result, the employee may feel like their issue has been brushed aside, or their perspective has been ignored. Moreover, it creates an unpleasant work environment, which can negatively impact the morale and productivity of the team.


In conclusion, when an employee goes directly to the manager to complain about a situation that you could have handled, it shows that they don't trust you. It is crucial to establish trust with your employees by providing a supportive work environment where they can express their concerns without fear of retribution. Additionally, it is your responsibility as a manager to make sure your employees know how to handle complaints and issues. Hence, you should provide training on how to communicate effectively, resolve conflicts, and use the right channels to voice their concerns.

To know more about Employee visit:-

https://brainly.com/question/28265139

#SPJ11

The 3-equation and Great Depression What policy mistakes were made in the Great Depression? How can these mistakes be shown using the 3-equation model? Show in a diagram how fiscal stimulus could have averted a deflation trap.

Answers

The Great Depression was marked by severe economic downturn, high unemployment, and deflationary pressures. Several policy mistakes were made during that period, contributing to the worsening of the crisis. These mistakes can be illustrated using the three-equation model, focusing on the IS-LM framework.

1. Mistakes:

  a. Monetary Policy: Central banks, including the Federal Reserve, tightened monetary policy by raising interest rates and reducing the money supply. This contractionary stance exacerbated the deflationary pressures and limited the effectiveness of monetary policy in stimulating the economy.

  b. Fiscal Policy: Governments pursued contractionary fiscal policies by reducing spending and raising taxes, which further dampened aggregate demand and exacerbated the economic contraction.

2. Diagram:

  In the diagram, we start with an initial equilibrium at a point of low output (Y) and high unemployment (U), accompanied by deflationary pressures. The IS curve is shifted leftward due to decreased consumer spending and investment caused by contractionary policies.

  To avert a deflation trap, fiscal stimulus can be represented by shifting the IS curve to the right. This can be achieved through an increase in government spending or a reduction in taxes, effectively boosting aggregate demand and stimulating the economy. The shift of the IS curve leads to an increase in output and a reduction in unemployment, helping to alleviate the deflationary pressures.

By implementing expansionary fiscal policy, the economy could have avoided the deflation trap and experienced a recovery from the Great Depression. This approach would have countered the contractionary policies of the time and stimulated demand, leading to increased production, employment, and a gradual rise in prices.

It is important to note that the three-equation model captures the basic dynamics of the Great Depression, but the actual historical context involved numerous complexities and factors beyond the scope of the model. Nonetheless, the diagram demonstrates how fiscal stimulus, represented by a shift in the IS curve, could have played a crucial role in averting a deflation trap and promoting economic recovery during the Great Depression.

Learn more about employment here:

https://brainly.com/question/17459074

#SPJ11

1. The impact of change management in the universities as it relates to covid-19.

Answers

The COVID-19 pandemic has had a significant impact on universities worldwide, requiring them to implement various change management strategies to adapt to the new circumstances.

Here are some key aspects of change management in universities in response to COVID-19:

Transition to Remote Learning: One of the most notable changes was the rapid shift from traditional in-person teaching to remote or online learning formats.

Universities had to quickly develop or enhance their online learning infrastructure, provide training to faculty and students on virtual teaching and learning tools, and ensure the continuity and quality of education.

Technology Adoption: Universities had to embrace new technologies and digital tools to facilitate remote teaching, communication, and collaboration.

This involved implementing video conferencing platforms, learning management systems, virtual labs, and other educational technologies to support remote learning and administrative processes.

Operational Adjustments: Universities had to make significant operational changes to comply with health and safety guidelines.

This included implementing social distancing measures, modifying campus facilities, establishing hygiene protocols, and ensuring a safe environment for students, faculty, and staff who needed to be physically present on campus.

Communication and Stakeholder Engagement: Effective change management during the pandemic required clear and consistent communication with all stakeholders, including students, faculty, staff, and parents.

Universities needed to keep everyone informed about changes in schedules, policies, and procedures, and address concerns and questions promptly.

To learn more about pandemic, refer below:

https://brainly.com/question/28941500

#SPJ11

Other Questions
The desired overall magnification of a compound microscope is 136x. The objective alone produces a lateral magnification of 12.0x. Determine the required focal length of the eyepiece. _____cm Contingent expenses are costs that a firm incurs in the regular functioning of its business. True False For a public company's annual report under Title IV of the Sarbanes-Oxley Act (SOX), disclosures related to the conformance of pro forma financial statements require all of the following, except: O No material information has been omitted. Reconciliation with GAAP basis financial statements. O No statements contained in the pro forma financials are untrue. O Estimates must be reconciled to actual data within three months after year-end. Question 7(Multiple Choice Worth 5 points) (Pythagorean Theorem LC) Can a triangle be formed with side lengths 4, 8, 11? Explain. No, because 11 8 < 4 Yes, because 11 4 < 8 No, because 4 + 8 > 11 Yes, because 4 + 8 > 11 WHat does a net profit ratio of 77.25% indicate? 1. You just found out that your coworker is paid more than you for doing the same job. How does this affect your motivation?2. Motivating your employees is important to you, but your employees seem less enthusiastic every day. Your customers have even noticed the change in attitude. Using the expectancy theory, how can you take steps to improve your employees motivation? Which attribute is associated with a "consensus" type of democratic constitutional design?a. The constitution is interpreted by the legislature.b. There is a separation of powers among the executive, legislature, and judiciary.c. Majority party members in the legislature are expected to follow the lead of the executive and cabinet.d. Power is concentrated in the hands of the leadership of the political party that won the most recent election. Responding to changes in the market and the needs of customers has always been important, but these days customers can communicate rapidly and form online posses to express their disdain for corporate decisions. In the case of GT7, the game was review bombed causing the games score to drop to the single digits a record low.Outline how you would respond to customers if you were managing Polyphony Digital. (10 marks, 400 words). An incompressible fluid is flowing through a pipe of diameter 6.0 cm at 4.6 m/s with a pressure of 84 kPa. If the pipe goes up 2.0 m and narrows to 2.0 cm with a pressure of 2.8 kPa, what is the density of the fluid? a.1000 kg/m3 b.1300 kg/m3 c.890 kg/m3 d.2700 kg/m3 Why is proving a bona fide occupational qualification essential?Question content area bottomA. for discrimination to be legalB. to establish that the employee's claim is fraudulentC. to establish the employer's violation of Title VII of the Civil Rights ActD. for an employee to successfully claim employment discrimination A group of business partners decided to look for land on which to build a motel and gas station. They identified a promising parcel of land in Yellowhead County. Both the county and the business partners were aware that a landfill had once existed in the area where this parcel of land was located. Prior to selling the land, the county commissioned a report confirming that the land had been previously used as a landfill. Nevertheless, the report concluded that the sale could go ahead with the land to be sold "as is." The county put the land on the market and the business partners purchased it. The partners never made any inquiries as to the state of the land and did not see the report prior to purchasing the land. In fact, it was only after the sale was complete that they learned from the provincial environment ministry that the land was not suitable for development. The business partners sued the county for fraudulent misrepresentation for its failure to show them the report. The county claimed caveat emptor ("buyer beware"), stating that there was no misrepresentation as the land was sold "as is."(a) Present a legal argument on behalf of the Business Partners that the County of Yellowhead committed fraudulentmisrepresentation. Explain and support your answer.(b) Present a legal argument on behalf of the County of Yellowhead that there was no misrepresentation . Explain and support your answer.Answer either (a) or (b), not both.PLEASE ANSWER FROM A LEGAL PERSPECTIVE BASING YOUR ANSWER ON REPRESENTATIONS AND CONTRACTUAL TERMS In the case of Shaik Sahied v. Sockalingam Chettiar (1933) 1 LNS 97, the court ruled thatthe Moneylenders Act 1900, which is an English statute not relating to mercantile law, is not applicable under Section 5 of the Civil Law Act 1956.Explain why the court made that decision. Cool Sun produces awnings and screens. Prepare journal entries to reflect the following transactions. After you complete the entries, determine the amount to include in raw materials, work in process, and finished goods.Aug. 4, 20X5 Purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $4,000, on account.Aug. 8, 20X5 Transferred 60% of the raw materials purchased on August 4 into production.Aug. 8, 20X5 Incurred direct labor costs of $3,000. Factory overhead is applied at 40% of the direct labor cost.Aug. 9, 20X5 Transferred completed awnings with total assigned costs of $4,400 to finished goods.Aug. 10, 20X5 Sold and delivered half of the finished goods (from August 9) to a customer for $4,000 cash. Mastery Probleme Lyahnating Variancess from Standard Costs Sole parpose thoe Corngary asks fuir your beip- Starting Questions Mruyde ankens te the following questionis (1)(3) 2. What are some possible drawbacks to using standard costs that Sarah might consider? a. Standards limit operating improvements because employees may be discouraged from improving beyond the standards. b. Standards may become "stale" in a dynamic manufacturing environment. c. Employees may focus only on efficiency improvement and their own operations rather than considening the larger objectives of the organization. d. Since standards are impossible to attain, they are a distraction from the work at hand. e. Since standards never change, they do not reflect reality. ivisesintined tirl than expected. nimtere, thacaturg 11 ac cests are than ereeced Egireach Materials It will take 3.60 unts of materal per pait of shoes. During July, Sole Purpose Shoe Compainy incured actial he production of 2,175 pars of shoer. toonehups for Siky for Sole Purpare Shoe Compary. If recuired, found your answers to two decinal places. Direct 1 ahor ke 2.80 hours of labor per pair of shoes. Durng August, Sole Furpose 5 thoe Company incurred in of 2,300 pairs of shoes. Aagus: for Sole Purpose Shoe Company. If required, round your answers to two decimal places. positive number for an unfavorable variance: Hudget Perfermanne Mepuet. the the dima in the foliuang table 10 prepare the Bodget Performance fleport for Sole Parpose Sbse Corcasm ins Sectrmber. Sole Purpose Shoe Company Budqet Performance Report For the Month Ended September 30 Discuss how wireless, Bluetooth and other innovative communication technologies have emerged to assist with higher education or business. 3. A department of Statistics has collected the data describing the prices and quantities of harvested crops for the years 1990 and 2000 (stored in worksheet Q3). Compute price index number by Weighted Aggregates method (Laspeyres, Paaches, and Fishers) and weighted Average of Relatives method from the data (Price quoted in Rs. per kg. and production in qtls).Item19902000Price (p0) Production (q0) Price (p1) Production (q1)Paddy 200 1050500 1300Wheat 250 940550 1220Groundnut 350 400800 500 Cash from sales of merchandise will be recorded in the (LO 3) Seleccione una: a. purchases journal. b. general journal. c. sales journal. d. cash receipts journal. Determine how best to establish operating activity to compete in a Market? (5 marks)Explain how to implement Human Resource strategies to maximize productivity. (10 marks)Elaborate on how to chart a strategic course and adjust strategic plans in response to changing condition in the market. (10 marks)Format guidelines:Times New Roman 12-point font, double- spaced, and 2.5 to 3 cm margins.Page limit 4 pages, no less than 500 words, APA formatCover Page: Tittle of assignment, student name, course name and code, due date, instructor name, etc.Citation:Reference page should be included in APA formatFollow the rubric (if applicable) A key element to a union's security is an agreement provisionthat requires:a. High industry wagesb. Paid vacation days.c. Cost-of-living adjustmentsd. Dues checkoff and union membership "22 A scale that measures what it is supposed to measure is referred to as:Group of answer choices below:EthicalValidReliableConvergent