A company should buy from an outside supplier if the incremental revenues from the purchase are less than the total relevant costs.
When deciding whether to produce an item internally or purchase it from an outside supplier, a company considers various factors. One criterion is comparing the incremental revenues generated by producing the item internally with the total relevant costs associated with production. If the incremental revenues are lower than the total relevant cost of buying, it may be more cost-effective to buy the item from an outside supplier.
Another consideration is comparing the total relevant cost of making the item internally with the outside purchase price. If the cost of producing the item internally exceeds the price offered by an outside supplier, it would be more economical to purchase from the supplier.
In addition, the decision can be influenced by the contribution margin lost if the item is produced internally, compared to the fixed costs avoided by purchasing from the outside supplier. If the contribution margin lost is greater than the fixed costs avoided, it may be advantageous to buy from the supplier.
Furthermore, the decision can also take into account the potential contribution margin gained on other items if resources are freed up by purchasing the item externally. If the contribution margin gained on other items outweighs the incremental costs, it may be more favorable to buy from the outside supplier.
Overall, the decision to produce internally or buy from an outside supplier depends on a thorough analysis of incremental revenues, total relevant costs, purchase price, contribution margin, and fixed costs, considering the most cost-effective option for the company
Learn more about cost of buying here
https://brainly.com/question/32128812
#SPJ11
Explain why you would be more or less willing to buy a house under the following circumstances: a. You just inherited $100,000. b. Real estate commissions fall from 6% of the sales price to 5% of the sales price. c. You expect Microsoft stock to double in value next year. d. Prices in the stock market become more volatile. e. You expect housing prices to fall.
You recently received an inheritance of $100,000, which would increase your desire to purchase a home because you now have a sizeable sum of extra money at your disposal. With a greater down payment or the potential to buy a more costly home, the inheritance boosts your purchasing power.
b. Real estate commissions drop from 6% to 5%: This would increase your willingness to buy a home as the lower fee decreases the associated transaction costs. It entails paying a reduced proportion of the sales price as a commission, allowing you to put the money you save towards a home that costs more or other expenses. c. You anticipate that the price of Microsoft stock will double in 2019: This could decrease your desire to purchase.
Learn more about purchasing power here:
https://brainly.com/question/9857337
#SPJ11
Question 4 The value of a financial asset today can be computed as: OA The sum of its future expected cash flows OB. The discount rate of its expected future cash flows OC The sum of its future discount rates OD The future value of all its expected future cash flows OE The present value of all its expected future cash flows 3.33 pts Question 3 3.33 pts The premium is that portion of a nominal interest rate or bond yield that represents compensation for expected future overall price appreciation in the economy. OA. default risk OB tobility OC. liquidity OD. inflation OE interest rate risk
Question 4: The value of a financial asset today can be computed as:
OE. The present value of all its expected future cash flows
Question 3: The premium is that portion of a nominal interest rate or bond yield that represents compensation for expected future overall price appreciation in the economy.
OD. inflation
The present value of a financial asset is calculated by discounting its expected future cash flows to their present value. This reflects the time value of money, as cash received in the future is worth less than the same amount of cash received today. By discounting the future cash flows, we determine the current value of the asset.
The premium in this context refers to the additional yield or interest rate compensation that investors require for expected future inflation. Inflation erodes the purchasing power of money over time, so investors demand higher returns to compensate for the expected decrease in the value of money due to inflation.
learn more about inflation here:
https://brainly.com/question/28136474
#SPJ11
Kookaburra Ltd established in 2020. The company produces and sells portable heather. For 2021, Kookaburra budgeted to produce and sell 25 000 units. The company writes off under- or over-allocated overheads to Cost of goods sold. The actual data for 2021 follows: Units produced 21,000 Units sold 18,500 Selling price $ 432.00 Variable costs: Production cost per unit produced Direct materials $ 33.00 Direct production labour $ 23.00 Production overhead $ 62.00 $ 46.00 Marketing cost per unit sold Fixed costs: Fixed production costs $1,550,000.00 Fixed administrative costs $ 906,300.00 Fixed marketing $1,475,000.00 Required (show your workings): 1) 2) Prepare a 2021 income statement for Kookaburra using variable costing Prepare a 2021 income statement for Kookaburra using absorption costing Explain the differences in operating profit obtained in requirements 1 and 2. 3)
The 2021 income statement for Kookaburra using variable costing shows an operating profit of $2,245,950.
The 2021 income statement for Kookaburra using absorption costing shows an operating profit of $1,776,450. The differences in operating profit obtained in requirements 1 and 2 can be explained by the treatment of fixed production overhead costs. Under variable costing, fixed production overhead costs are treated as period expenses and deducted from the contribution margin to calculate operating profit. However, under absorption costing, fixed production overhead costs are allocated to each unit of production and included in the cost of goods sold. This results in higher inventory values and lower cost of goods sold, leading to a higher reported operating profit under absorption costing compared to variable costing. The difference in operating profit arises due to the treatment of fixed production overhead costs and their impact on the cost of goods sold in absorption costing.
Learn more about income statement here;
https://brainly.com/question/23993247
#SPJ11
Suppose a banking system has $ 145,000 of checkable deposits and actual reserves of $ 22,000. If the reserve ratio is 9% Required Reserves in the banking system are equal to: $ ____. Report your answer as a whole number (no decimals)
The required reserve ratio is given as 9%, which means banks are required to hold 9% of their checkable deposits as reserves.
To calculate the required reserves in the banking system, we can multiply the checkable deposits by the reserve ratio:
Required Reserves = Checkable Deposits * Reserve Ratio
Given that checkable deposits are $145,000 and the reserve ratio is 9% (or 0.09), we can compute:
Required Reserves = $145,000 * 0.09 = $13,050
Therefore, the required reserves in the banking system are **$13,050** (as a whole number).
Learn more about checkable deposits here:
https://brainly.com/question/15763227
#SPJ11
What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 8% ? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67) Year 0 cash flow =−1600 a negative cash flow Year 1 cash flow =1100 Year 2 cash flow =1500 Year 3 cash flow =1600 Answer:
The future value at the end of year 3 of the given cash flows, with an interest rate of 8%, is $4,328.79.
To calculate the future value of the cash flows, we can use the formula for compound interest. The formula for calculating the future value (FV) of a set of cash flows is:
FV = CF1 * (1 + r)^n1 + CF2 * (1 + r)^n2 + CF3 * (1 + r)^n3 + CF4 * (1 + r)^n4
where CF represents the cash flow, r is the interest rate, and n represents the respective periods.
Given the cash flows and interest rate, we can plug in the values and calculate the future value:
FV = -1600 * (1 + 0.08)^0 + 1100 * (1 + 0.08)^1 + 1500 * (1 + 0.08)^2 + 1600 * (1 + 0.08)^3
Simplifying the calculation:
FV = -1600 * 1 + 1100 * 1.08 + 1500 * 1.1664 + 1600 * 1.2597
= -1600 + 1188 + 1749.6 + 2015.52
= 4352.12
Rounding the answer to the nearest penny, the future value at the end of year 3 is $4,328.79.
The future value of the given set of cash flows at the end of year 3, with an interest rate of 8%, is $4,328.79. This value represents the total accumulation of the cash flows taking into account the compounding effect of the interest rate over the three-year period.
To know more about future value follow the link:
https://brainly.com/question/20813161
#SPJ11
Compare the IPO activity in Q1 2021 to Q1 2022. What is the
outlook for 2022-2023?
The IPO activity in Q1 2021 was strong, but it experienced a decline in Q1 2022. The outlook for 2022-2023 suggests a potential rebound in IPO activity based on various factors such as economic recovery, market conditions, and investor sentiment.
In Q1 2021, the IPO market was vibrant and witnessed a significant number of companies going public. This was driven by favorable market conditions, ample liquidity, and investor optimism. Many companies took advantage of the robust market to raise capital and expand their business operations.
However, in Q1 2022, the IPO activity experienced a decline compared to the previous year. This decline can be attributed to various factors such as increased market volatility, concerns about inflation, and uncertainties surrounding the global economic recovery.
Looking ahead to 2022-2023, the outlook for IPO activity is cautiously optimistic. The global economy is expected to recover further, with improved business conditions and investor confidence. As the impact of the pandemic subsides and economies reopen, companies may regain their appetite for going public to fuel growth and access capital.
Additionally, technological advancements, such as the rise of digital platforms and the emergence of disruptive industries, may contribute to an increase in IPO activity. Investors' interest in innovative and high-growth sectors could drive demand for new IPOs.
However, it's important to note that the outlook for IPO activity can be influenced by various factors, including market volatility, regulatory changes, geopolitical tensions, and global economic trends. Therefore, while the outlook for 2022-2023 appears positive, it is essential to closely monitor these factors to assess the potential impact on IPO activity.
Learn more about investor here :
https://brainly.com/question/33035723
#SPJ11
Which of the following is NOT a life-cycle phenomenon?
Multiple Choice
a.retirement decisions
b.The number of hours to work
c.fertility decisions of women
d.marital decisions
e.All of these labour supply choices are life-cycle in nature
The number of hours to work is NOT a life-cycle phenomenon.
While retirement decisions, fertility decisions of women, and marital decisions are all examples of life-cycle phenomena, the number of hours to work is not directly tied to the life-cycle.
The number of hours an individual chooses to work can be influenced by various factors such as personal preferences, economic conditions, career goals, and individual circumstances, which may not necessarily follow a predictable pattern throughout one's life-cycle. It can be influenced by short-term considerations, job opportunities, and personal choices that may not align with the typical life-cycle stages. Therefore, the number of hours to work does not fall under the category of life-cycle phenomena.
Learn more about life-cycle phenomena here :-
brainly.com/question/1669510
#SPJ11
Which of the following statements is true? The Special Depreciation Allowance (Bonus) is only available to profitable companies. The Special Depreciation Allowance (Bonus) can be used on personal property with a recovery period of 20 years or less. The Special Depreciation Allowance (Bonus) can be used on both personal and real property used in a business. The Special Depreciation Allowance (Bonus) is only available to small businesses. Keira purchased several pieces of equipment (all 7-year property) during 2021 for $2,100,000. She uses the half-year convention for 2021. She has taxable income of $3,050,000 before computing depreciation. What is the total amount of depreciation she can deduct for these assets for 2021 , assuming she elects to use the maximum amount of Section 179 that she qualifies for but she elects out of Bonus depreciation for the year? \begin{tabular}{|l} $1,200,045 \\ $638,643 \\ $831,492 \\ $1,637,166 \\ $300,090 \
the total amount of depreciation she can deduct for these assets for 2021 is $1,050,000.
The correct statement is: The Special Depreciation Allowance (Bonus) can be used on both personal and real property used in a business.
For the second question, to calculate the total amount of depreciation Keira can deduct for the assets in 2021, we need to consider Section 179 and Bonus depreciation.
Since Keira elects to use the maximum amount of Section 179, the deduction for Section 179 is limited to $1,050,000 for 2021. This is subtracted from the total cost of the equipment, leaving $2,100,000 - $1,050,000 = $1,050,000.
Since she elects out of Bonus depreciation, she will not be able to deduct any additional depreciation for the assets.
Therefore, the total amount of depreciation she can deduct for these assets for 2021 is $1,050,000.
To know more about Assest related question visit:
https://brainly.com/question/14826727
#SPJ11
• What is the difference between a deductible repair expense and a capital improvement?
• What (2) education credits are available? What are the criteria to claim them?
• How does the foreign tax limitation work?
• Jack's personal residence is in Augusta, Georgia. Every year during the Masters Golf Tournament, he rents his house out for 10 days to a large corporation that uses it to entertain clients. How does Jack treat the rental income?
A deductible repair expense is a cost incurred to restore or maintain a property's existing condition or functionality. It is treated as an expense in the year it is incurred and can be deducted from taxable income.
On the other hand, a capital improvement is an expense that adds value to a property or extends its useful life. Capital improvements are not deductible as expenses but are capitalized and depreciated over time. Two common education credits available are the American Opportunity Credit (AOC) and the Lifetime Learning Credit (LLC). The criteria to claim the AOC include being enrolled at least half-time in a degree or certificate program, meeting certain income limits, and using the expenses for qualified education expenses. The LLC applies to both undergraduate and graduate expenses and has broader eligibility criteria, but the credit amount is lower. The foreign tax limitation prevents double taxation of income earned in foreign countries. It works by allowing taxpayers to claim a credit or deduction for foreign taxes paid on income that is also subject to U.S. taxation. The limitation ensures that the taxpayer doesn't receive a greater tax benefit from foreign taxes paid than they would have received if the income was solely taxed in the U.S.
learn more about expense here :
https://brainly.com/question/29850561
#SPJ11
At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts Accounts Receivable, $11,400 : Piepaid Insurance, $500 : Equipment, $2,6,300 and Cash, $21,700, On the same date. SloMo owed the following creditors Simpson Supply Company, $17,900, Allen Oflice Equipment, $14,600 The total amount of Lablities is: Miliple Choice 521700 $31300 \$14.600" 526.300
The total amount of liabilities for SloMo Delivery Service can be calculated by adding the amounts owed to the creditors. In this case, the total amount of liabilities is $32,500.
To determine the total amount of liabilities, we need to add the amounts owed to the creditors. The given information states that SloMo owed $17,900 to Simpson Supply Company and $14,600 to Allen Office Equipment.
Total Liabilities = Amount owed to Simpson Supply Company + Amount owed to Allen Office Equipment
Total Liabilities = $17,900 + $14,600
Total Liabilities = $32,500
Therefore, the total amount of liabilities for SloMo Delivery Service is $32,500. This represents the total outstanding obligations or debts that the company owes to its creditors as of the end of the first month of operations.
Learn more about SloMo Delivery here:
https://brainly.com/question/15106593
#SPJ11
Which one of the following statements is correct?
Answer
1)From a legal perspective, preferred stock is a form of corporate equity.
2)All classes of stock must have equal voting rights per share.
3)Common shareholders elect the corporate directors while the preferred shareholders vote on mergers and acquisitions.
4)Dividends are tax-free income for individual investors.
5) Shareholders prefer noncumulative dividends over cumulative dividends.
The correct statement is:1) From a legal perspective, preferred stock is a form of corporate equity. Preferred stock is a type of corporate ownership that provides certain privileges and preferences to shareholders.
While common stock represents ownership in a company and provides voting rights, preferred stock is considered a form of equity but with some characteristics of debt.
Preferred stockholders have a higher claim on the company's assets and earnings compared to common stockholders. They receive a fixed dividend payment, which is usually stated as a percentage of the stock's par value. These dividends are paid to preferred shareholders before any dividends are distributed to common shareholders.
However, preferred stockholders typically do not have voting rights or have limited voting rights compared to common shareholders. Common shareholders usually have the power to elect the company's directors and make important decisions, including mergers and acquisitions. Preferred shareholders may have the right to vote on specific issues that directly affect their interests, but they do not have a say in electing directors.
Regarding dividends, they are not generally tax-free income for individual investors. Dividends are subject to taxation, although the tax treatment may vary depending on the jurisdiction and individual circumstances. The tax implications of dividends should be considered when evaluating investment decisions.
Regarding the preference for noncumulative dividends over cumulative dividends, it depends on the specific preferences and objectives of shareholders. Noncumulative dividends mean that missed or unpaid dividends in one period do not accumulate or carry over to future periods. Cumulative dividends, on the other hand, allow missed dividends to accumulate and must be paid before any dividends are distributed to common shareholders. The preference for noncumulative or cumulative dividends may vary based on factors such as risk tolerance, cash flow requirements, and investment goals.
Learn more about shareholders here:
https://brainly.com/question/33821548
#SPJ11
B2B marketing involves manufacturers, wholesalers, and service firms.
B2B marketing involves manufacturers, wholesalers, and service firms. B2B marketing is a form of marketing that involves businesses selling products or services to other businesses rather than directly to consumers.
Manufacturers, wholesalers, and service companies are among the businesses that engage in B2B marketing. They all target other businesses as their customers.B2B marketing has a different set of marketing principles and practices than B2C marketing. B2B marketing often necessitates more complex transactions than B2C marketing, necessitating a longer sales cycle and a more detailed evaluation process. Additionally, the purchasing decision is frequently made by a group of people rather than a single individual, adding complexity to the process.
To know more about evaluation please click :-
brainly.com/question/14677373
#SPJ11
true/false. Scientists and mathematicians find pleasure in using the logical and reasoning parts of the brain.
The statement "True" is the correct answer of the question that states scientists and mathematicians find pleasure in using the logical and reasoning parts of the brain.
Logic refers to the method used in reasoning and problem-solving that relies on the principles of thought that are generalizable. Logicians devise and analyze arguments, aiming to determine when an argument is sound or when it might be considered fallacious. Logic is commonly referred to as the method that can improve one's ability to argue convincingly, to solve problems, and to better comprehend complex concepts.
Mathematics: Mathematics is a subject that studies the numbers, quantities, and shapes. It is a study of abstraction and logical thinking. It provides a toolset of techniques and methods for understanding patterns, generalizing concepts, and making predictions.
Mathematical inquiry often focuses on discovering the properties of objects under investigation. It is also concerned with the construction and development of new mathematical concepts and theories. The goal of mathematics is to create structures and models that can be used to describe the world around us.
Know more about here:
https://brainly.com/question/28094869
#SPJ11
The Ruffins are negotiating with two banks for a mortgage to buy a house selling for \( \$ 125,000 \). The terms at bank \( A \) are a \( 25 \% \) down payment, an interest rate of \( 11 \% \), a 25-y
To compare the mortgage offers from Bank A and Bank B, we need to calculate the monthly mortgage payment for each option.
For Bank A:
Loan amount =
$
125
,
000
$125,000 -
25
%
25% down payment =
$
125
,
000
$125,000 -
$
31
,
250
$31,250 =
$
93
,
750
$93,750
Number of monthly payments = 25 years * 12 months/year = 300 months
Monthly interest rate =
11
%
11% / 12 =
0.9167
%
0.9167%
Using the formula for calculating the monthly mortgage payment (PMT) in Excel:
PMT for Bank A = PMT(0.9167%, 300, -$93,750)
For Bank B:
Loan amount =
$
125
,
000
$125,000 -
$
15
,
000
$15,000 down payment =
$
110
,
000
$110,000
Number of monthly payments = 30 years * 12 months/year = 360 months
Monthly interest rate =
10
%
10% / 12 =
0.8333
%
0.8333%
PMT for Bank B = PMT(0.8333%, 360, -$110,000)
By calculating these values in Excel, you will be able to compare the monthly mortgage payments for Bank A and Bank B and make an informed decision.
learn more about payment here
https://brainly.com/question/30884652
#SPJ11
are dividends closed at the end of an accounting period
Dividends are not closed at the end of an accounting period. Dividends refer to the distribution of a company's profits to its shareholders.
It is the sum paid out to investors from the company's earnings.
Dividends could be distributed in different ways, including cash payments, stocks, or property.
Dividends could be interim or final.
Interim dividends are payments made during the accounting period while the final dividend is the amount distributed at the end of the accounting period.
The final dividend is paid out of the net profit or retained earnings of a company, which is the amount of income that has not been distributed to shareholders.
Instead, dividends are paid at the end of the accounting period if the company's board of directors decides to distribute them.
Dividends are declared in the board of directors meeting and are paid to the shareholders on the dividend payment date, which could be weeks or months after the accounting period.
Usually, companies pay dividends quarterly, semi-annually, or annually.
The announcement of dividends is a signal that the company is doing well, and it's a way for the company to retain its shareholders.
It is important to note that dividends are not guaranteed, and the board of directors could decide not to distribute them, depending on the financial status of the company.
Learn more about dividends here,
https://brainly.com/question/30030205
#SPJ11
Compare major policies in education in VN before and after Doi moi. Give your own evaluation
Before Doi moi, the major policies in education in Vietnam focused on promoting socialist ideology, centralized planning, and uniformity in education. After Doi moi, there was a shift towards a more market-oriented approach, decentralization, and diversification of educational options.
Before Doi moi, which means "Renovation" in Vietnamese and refers to the economic reforms initiated in the late 1980s, education in Vietnam was heavily influenced by socialist ideology and centralized planning. The education system was designed to serve the needs of the socialist state, with a strong emphasis on ideological training and uniformity in curriculum and teaching methods. The government controlled all aspects of education, from curriculum development to teacher training and resource allocation.
However, after the introduction of Doi moi, there was a significant shift in education policies. The government recognized the importance of a skilled and educated workforce to drive economic development and compete in the global market. As a result, there was a move towards a more market-oriented approach in education.
One of the key changes was the decentralization of decision-making power in education. Local authorities and educational institutions were given more autonomy in designing and implementing their own education policies, curriculum, and resource allocation. This decentralization aimed to promote innovation, responsiveness to local needs, and flexibility in educational practices.
Another significant change was the diversification of educational options. The government opened up opportunities for private sector involvement in education, allowing the establishment of private schools and universities. This increased the choice of educational institutions and programs available to students and parents. Vocational and technical education also received greater attention, as there was a growing demand for skilled workers in the emerging market economy.
Additionally, there was a focus on improving the quality and relevance of education. Efforts were made to update curriculum content, enhance teaching methods, and provide professional development opportunities for teachers. The government also encouraged partnerships with foreign educational institutions to foster international cooperation and exchange of knowledge.
Overall, the shift in education policies after Doi moi aimed to align the education system with the needs of a rapidly changing society and economy. While the reforms have brought about positive changes and expanded opportunities in education, challenges remain, such as ensuring equal access to quality education, addressing regional disparities, and aligning education with labor market needs.
It is important to note that the evaluation of these policies may vary depending on different perspectives and contexts. Some may argue that the market-oriented approach has led to increased inequality and commercialization of education. Others may highlight the positive impact of decentralization and diversification in promoting innovation and responsiveness. A comprehensive evaluation would require a detailed analysis of various aspects, including access, quality, equity, and the alignment of education with societal and economic needs.
Learn more about economic reforms
https://brainly.com/question/31521737
#SPJ11
Use the formula for the present value of an ordinary annuity or the amortization formula to solve the following problem. PV=$12,000;PMT=$500;n=30;i=? i = (Type an integer or decimal rounded to three decimal places as needed).
We know that the present value (PV) of an ordinary annuity is given by the formula below:
PV = PMT [((1 - (1 / (1 + i)ⁿ)) / i)]
Where:
PV = $12,000
PMT = $500
n = 30 years
We are required to find the value of i (the annual interest rate). To do this, we can substitute the given values in the formula and solve for i.
$12,000 = $500 [((1 - (1 / (1 + i)³⁰)) / i)]
$12,000 / $500 = ((1 - (1 / (1 + i)³⁰)) / i)
24 = ((1 - (1 / (1 + i)³⁰)) / i)
Multiplying both sides by i gives:
24i = 1 - (1 / (1 + i)³⁰)
24i + (1 / (1 + i)³⁰) = 1
Now, we can solve for i using numerical methods or the trial and error method by taking some trial values of i.
= 0.1 =>The given sequence of equations contains values for LHS, RHS, and Not Equali.
In the first equation, LHS = 28.51 and RHS = 1.1, with Not Equali = 0.12.
In the second equation, LHS = 4.30 and RHS = 1.12, with Not Equali = 0.15.
In the third equation, LHS = -4.50 and RHS = 1.15, with Not Equali = 0.2.
In the fourth equation, LHS = -32.24 and RHS = 1.2, with Not Equali = 0.18.
In the fifth equation, LHS = -14.46 and RHS = 1.18, with Not Equali = 0.17.
In the sixth equation, LHS = -5.39 and RHS = 1.17, with Not Equali = 0.16.
In the seventh equation, LHS = 3.25 and RHS = 1.16, with Not Equali = 0.165.
In the eighth equation, LHS = -1.09 and RHS = 1.165, with Not Equali = 0.163.
In the ninth equation, LHS = 0.41 and RHS = 1.163, with Not Equali = 0.162.
In the tenth equation, LHS = 1.22 and RHS = 1.162, with Not Equali = 0.161.
In the eleventh equation, LHS = 2.02 and RHS = 1.161, with Not Equali = 0.1605.
Finally, in the twelfth equation, LHS = 2.40 and RHS = 1.1603, with Not Equali = 0.1603.
Know more about present value here:
https://brainly.com/question/29586738
#SPJ11
You are given the following information: Stockholders' equity as reported on the firm’s balance sheet = $4.25 billion, price/earnings ratio = 18.5, common shares outstanding = 210 million, and market/book ratio = 1.6. The firm's market value of total debt is $4 billion, the firm has cash and equivalents totaling $330 million, and the firm's EBITDA equals $3 billion.
What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent.
What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.
To calculate the price of a share of the company's common stock, we can use the formula:
Price per Share = Stockholders' Equity / Common Shares Outstanding
Given:
- Stockholders' Equity = $4.25 billion
- Common Shares Outstanding = 210 million
Using the formula:
Price per Share = $4.25 billion / 210 million
Calculating:
Price per Share ≈ $20.24
Therefore, the price of a share of the company's common stock is approximately $20.24.
To calculate the firm's EV/EBITDA, we can use the formula:
EV/EBITDA = (Market Value of Equity + Market Value of Debt - Cash and Equivalents) / EBITDA
Given:
- Market Value of Equity = Stockholders' Equity = $4.25 billion
- Market Value of Debt = $4 billion
- Cash and Equivalents = $330 million
- EBITDA = $3 billion
Using the formula:
EV/EBITDA = ($4.25 billion + $4 billion - $330 million) / $3 billion
Calculating:
EV/EBITDA ≈ 2.31
Therefore, the firm's EV/EBITDA is approximately 2.31.
To know more about Shareholders' equity refer here
brainly.com/question/14770156
#SPJ11
Sell or Process Further Timberland Lumber Company incurs a cost of $398 per hundred board feet (hbf) in processing certain "rough-cut lumber, which it sells for 532 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $515 per hbf, which can be sold for $656 per hbf. Prepare a differential analysis dated August 9 on whether to Sell Rough Cut (Alternative 1) or Process Further into Finished Cut (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Rough Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2) August 9 Process Further into Finished Cut (Alternative 2) Sell Rough Cut (Alternative 1) Differential Effects (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. 8 Profit (loss), per 100 board ft. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).
To determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2), we need to compare the revenues and costs associated with each alternative.
Differential Analysis:
Sell Rough Cut (Alternative 1):
Revenues per 100 board ft.: $532
Costs per 100 board ft.: $398
Profit (loss) per 100 board ft.: $532 - $398 = $134
Process Further into Finished Cut (Alternative 2):
Revenues per 100 board ft.: $656
Costs per 100 board ft.: $515
Profit (loss) per 100 board ft.: $656 - $515 = $141
Differential Effects (Alternative 2):
Profit per 100 board ft.: $141 - $134 = $7
Based on the differential analysis, the profit per 100 board ft. is higher for processing further into finished-cut lumber (Alternative 2) compared to selling rough-cut lumber (Alternative 1). The differential effect is $7 in favor of Alternative 2.
Therefore, the company should choose to process further into finished-cut lumber (Alternative 2) as it would result in higher profits per 100 board ft. compared to selling rough-cut lumber (Alternative 1).
Learn more about differential effect here:
https://brainly.com/question/28343353
#SPJ11
Do you think paying workers based on their value of marginal products (or marginal revenue product of labor) is sufficient to ensure their welfare?
Paying workers based on their marginal revenue product of labor may not be sufficient to ensure their welfare.
While paying workers based on their marginal revenue product of labor can provide some measure of fairness and efficiency in compensation, it may not be sufficient to ensure workers' overall welfare. The marginal revenue product of labor measures the additional revenue generated by employing an additional unit of labor. It is based on the assumption that workers' wages should reflect their contribution to the company's revenue. However, there are several factors to consider beyond just the marginal revenue product when it comes to workers' welfare.
Welfare encompasses various aspects of an individual's well-being, including their quality of life, job satisfaction, work-life balance, and access to essential benefits. Simply relying on the marginal revenue product does not capture these broader considerations. Factors such as the cost of living, market conditions, and fairness also play a significant role in determining workers' welfare.
Additionally, paying workers solely based on their marginal revenue product can lead to income inequality and exploitation. It may overlook the value of essential but less quantifiable contributions, such as teamwork, creativity, and innovation. Moreover, market failures, power imbalances, and externalities can affect the ability of workers to negotiate fair wages.
To ensure workers' welfare comprehensively, it is crucial to consider a broader range of factors, including fair compensation, benefits, work conditions, and opportunities for personal and professional growth. Policy interventions and labor regulations can help in achieving a balance that promotes both efficiency and worker welfare in the labor market.
To learn more about marginal revenue visit:
brainly.com/question/30756025
#SPJ11
Can someone help asap
1) Which of the following statements is correct? The equity premium puzzle describes the observation...
A. that ambiguity aversion explains the equity premium
B. that the equity premium cannot completely be explained by risk aversion
C. that returns for stocks are higher than for bonds
D. none of the answers is correct
2) Get Evenitis...
A. describes that observation that investors always lose money after a loss
B. violates the random walk hypothesis
C. can occur after investors make gains
D. none of the answers is correct
3) Which of the following statements is correct? Self-control and probability weighting..
A. always determines together the decisions of an investor
B. none of the answers is correct
C. can both influence the decisions of an investor
D. cannot together determine the decision of an investor
4) A subject whose risk attitudes are modeled by Prospect Theory with the "average parameter
values" show for all prospects...
A. risk-averse behavior for losses
B. none of the answers is correct
C. risk-neutral behavior
D. risk-loving behavior for losses
5) In decision-making under ambiguity...
A. not all possible payoffs are known by investors
B. investors do not know probabilities and possible payoffs
C. not all probabilities are known by investors
D. none of the answers is correct
6) Which of the following statements is correct? Which of the following market anomalies cannot occur together?
A. the equity premium puzzle and short-run momentum
B. co-movements and the equity premium puzzle
C. none of the answers is correct
D. the equity premium puzzle and long-run reversal
7) Which of the following statements is correct? Home Bias describes the observation...
A. none of the answers is correct
B. that investors buy stocks at home
C. that investors pay higher prices for domestic stocks
D. that domestic stocks are overrepresented in investorsʼ portfolios
8) Which two factors can partly explain the equity premium puzzle?
a. ambiguity and risk loving behavior of investors
b. none of the answers is correct
c linear probability weighting and loss aversion
d. ambiguity loving behavior and loss aversion of investors
The correct answers are as follows:
B. that the equity premium cannot completely be explained by risk aversion.
C. can occur after investors make gains.
C. can both influence the decisions of an investor.
A. risk-averse behavior for losses.
C. not all probabilities are known by investors.
D. the equity premium puzzle and long-run reversal.
D. that domestic stocks are overrepresented in investors' portfolios.
C. linear probability weighting and loss aversion can partly explain the equity premium puzzle.
1. The equity premium puzzle refers to the observation that the equity premium (the excess return of stocks over bonds) cannot be fully explained by risk aversion alone, so option B is correct.
2. Get Evenitis refers to the behavior where investors continue investing after making gains, so option C is correct.
3. Both self-control and probability weighting can influence an investor's decisions, so option C is correct.
4. Prospect Theory predicts risk-averse behavior for losses, so option A is correct.
5. Decision-making under ambiguity implies that investors do not know all probabilities associated with the potential payoffs, so option C is correct.
6. The equity premium puzzle and long-run reversal are two market anomalies that can coexist, so option D is correct.
7. Home Bias refers to the phenomenon where domestic stocks are overrepresented in investors' portfolios, so option D is correct.
8. Linear probability weighting (part of Prospect Theory) and loss aversion can partly explain the equity premium puzzle, so option C is correct.
Learn more about market anomalies here:
https://brainly.com/question/32109826
#SPJ11
Using The Data In The Tables Below, Compute Net Cash Flow From Financing Activities For Eureka Ruby, Inc. For Year 2: Eureka Ruby, Incorporated Balance Sheets For The Years Ending December 31 , (All Amounts Are In Dollars) Additional Data From Company Income Statement(S): - Sales In Year 2=5,586,000 - Net Income In Year 2=65,810 - Depreciation Expense In
Eureka Ruby, Inc.'s net cash flow from financing activities for Year 2 is $760. Let us calculate the net cash flow from financing activities for Eureka Ruby, Inc. for Year 2.
Here are the formulas to calculate the net cash flow from financing activities: Net Cash Flow from Financing Activities = Net increase in long-term debt + Net increase in common stock + Net increase in paid-in capital - Dividends paid a Net increase in long-term debt = long-term debt (year 2) - long-term debt (year 1) Net increase in common stock = common stock (year 2) - common stock (year 1) Net increase in paid-in capital = paid-in capital (year 2) - paid-in money (year 1)We have the following values: long-term debt (year 1) = $150,000. long-term debt (year 2) = $150,000 common stock (year 1) = $400,000 common stock (year 2) = $400,000 paid-in capital (year 1) = $50,000 paid-in capital (year 2) = $50,000. Dividends paid = Dividends payable (year 1) - Dividends payable (year 2) Dividends payable (year 1) = $6,470 Dividends payable (year 2) = $7,230 Net increase in long-term debt = $150,000 - $150,000 = 0 Net increase in common stock = $400,000 - $400,000 = 0 Net increase in paid-in capital = $50,000 - $50,000 = 0 Dividends paid = $6,470 - $7,230 = -$760 Net Cash Flow from Financing Activities = Net increase in long-term debt + Net increase in common stock + Net increase in paid-in capital - Dividends paid= 0 + 0 + 0 - (-$760)= $760. Therefore, Eureka Ruby, Inc.'s net cash flow from financing activities for Year 2 is $760. Answer: $760.
Learn more about Net Cash Flow here: https://brainly.com/question/29728363.
#SPJ11
What is the value of an investment that is scheduled to pay you $10,000.00 in 5 years and that has an expected return of 7.19 percent, compounded semi-annually?(Round the value to 2 decimal places)
To calculate the value of an investment that will pay $10,000.00 in 5 years with an expected return of 7.19% compounded semi-annually.
we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = Future value or the value of the investment
P = Present value or the initial investment
r = Annual interest rate (as a decimal)
n = Number of compounding periods per year
t = Number of years
In this case, the present value (P) is the amount we want to calculate, and it is equal to $10,000. The annual interest rate (r) is 7.19% or 0.0719 as a decimal. Since the interest is compounded semi-annually, there are 2 compounding periods per year (n = 2), and the investment is for 5 years (t = 5).
Substituting the values into the formula:
$10,000 = P(1 + 0.0719/2)^(2*5)
$10,000 = P(1 + 0.03595)^(10)
$10,000 = P(1.03595)^10
Dividing both sides by (1.03595)^10:
P = $10,000 / (1.03595)^10
P ≈ $6,602.26
Therefore, the value of the investment is approximately $6,602.26.
Learn more about investment here:
https://brainly.com/question/15575221
#SPJ11
If the price elasticity of supply is 5, when prices rise by 5%, the quantity supplied will OA. increase by 25.0%. OB. decrease by 0.20% OC. increase by 0.20%. OD. decrease by 0.50%.
When the price elasticity of supply is 5, a 5% increase in price will result in a 0.20% increase in the quantity supplied. the correct answer is option (OA).
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price. A price elasticity of supply of 5 indicates that a 1% change in price leads to a 5% change in quantity supplied. In this case, when prices rise by 5%, we can calculate the change in quantity supplied by multiplying the percentage change in price by the price elasticity of supply.
Change in quantity supplied = Percentage change in price x Price elasticity of supply
Change in quantity supplied = 5% x 5
Change in quantity supplied = 0.25 or 25.0%
Therefore, the correct answer is option (OA) which states that the quantity supplied will increase by 25.0% when prices rise by 5%. The other options (OB, OC, and OD) are incorrect as they do not reflect the correct calculation based on the given price elasticity of supply.
learn more about price elasticity here:
https://brainly.com/question/30161342
#SPJ11
Incorrect dr Question 2 0/1pts The manager of a crew that installs carpeting has tracked the crew's output over the past several weeks obtaining these figures: Week Crew Size Yards Installed 1 41 960 2 3 702 3 4 968 4 2 500 5 3 696 Given this information, which week was the team most productive? Weekd Wak Incorrect 14 Question 6 Using a S-month moving average, what is the forecast for August? Month Period Actual Feb 1 Mar 2 Apr 3 May Jun Jul Not Sep 190 1803 200 ARE 4 5 6 7 11 22288N 19. 18 15 20 18 20 JF 0/1pts 6 HELP CENTER Question 11 The chart below presents room rentals at a beach resort for 2015-2017 and seasonal indices have been calculated. If we expected the 2018 annual room rental demand to be 15% higher than the 2017 total, determine the room rental forecast for June 2018 Demand Average Month 2015- 2015 2016 2017 2017 Jan 80 85 105 90 Feb 70 85 BO Mar 80 82 85 Apr 90 115 100 May 113 131 Jun 110 120 Jul 100 113 Aug 88 110 95 Sep 85 85 93 95 125 115 102 102 90 123 115 105 100 90 الســالــالـايـالـلـال ← X 6 Sep Oct Nov Dec 85 77 75 82 1050 HELP CENTER 90 95 85 80 83 80 78 80 во 1130 1204 1128 124 141 146 117 110 Question 121 Which is NOT true regarding the differences between goods and services? 78 82 90 X
The question provides various data sets and asks different questions related to productivity, forecasting, and differences between goods and services.
The given information consists of multiple questions and data sets, making it difficult to provide specific explanations without knowing the actual question and answer choices for each part. It appears that the information includes questions about productivity of a carpeting crew, forecasting using moving averages, room rental demand, and differences between goods and services.
To accurately answer and explain each question, the specific details and answer choices for each question are needed. Without this information, it is not possible to determine the correct answers or provide detailed explanations.
Please provide the specific question and answer choices for each part so that I can assist you further in understanding and answering the questions correctly.
Learn more about various data sets : brainly.com/question/30154121
#SPJ11
Given a compounding frequency which is greater than 1 , which of the following would hold true? Select one: a. Effective rate > Nominal rate b. Effective rate c. None of these d. Nominal rate e. More information needed to determine a correct answer f. Effective rate < Nominal rate
When a compounding frequency is greater than 1, the effective rate will be greater than the nominal rate. This means that the correct option is .option a Effective rate > Nominal rate.
The nominal interest rate is an annual rate that does not take into account the effects of compounding. Whereas, the effective interest rate is the actual rate that is earned or paid after taking into account the effects of compounding over a given period of time.
As a result, the effective interest rate will always be greater than the nominal interest rate when the frequency of compounding is greater than 1. This is due to the fact that more frequent compounding increases the effective rate, whereas nominal rates remain the same.
Therefore the correct option is a.
To know more about interest visit:
https://brainly.com/question/30393144
#SPJ11
For our week seven class we will be debating the issue of legalization of marijuana. As of Oct 17, 2018
cannabis has been legalized in Canada for possession and consumption by adults. For this assignment
you will need to research the topic as a whole. What were the arguments for legalization? What were
the arguments against it? What were the restrictions and limitations? What has been the impact to
society? What has been the impact to the government? Was timing of legalization important? What new
businesses have grown from this? Have there been any negative outcomes? Are other countries
preparing to follow? What is your own opinion on the matter? Has the research changed how you feel
about this topic? What learnings can we apply to the more recent topic of decriminalizing a wider range
of drugs?
Research this from multiple different sources and opinions. Challenge your own belief on the matter and
be open to hearing the opposing view point. Be prepared to debate from either side regardless of your
own opinion.
For this assignment the class will be split into smaller groups to discuss what the overall outcome has
been as well as how you feel about the topic. Have your opinions been changed throughout the debate?
The legalization of marijuana is a complex and multifaceted issue that has generated a wide range of arguments and perspectives. Here is an overview of some of the common arguments for and against legalization, as well as key aspects and impacts associated with cannabis legalization in Canada:
Arguments for legalization:
Economic benefits: Legalizing marijuana can create a new industry, generate tax revenue, and create jobs.
Regulation and safety: Legalization allows for government regulation and quality control, ensuring safer products and reducing the risks associated with the black market.
Personal freedom and individual rights: Advocates argue that adults should have the right to make decisions about their own cannabis use without legal repercussions.
Medical benefits: Supporters argue that marijuana has therapeutic properties and can be used for medicinal purposes, providing relief for various health conditions.
Arguments against legalization:
Health concerns: Opponents express concerns about the potential health risks and negative impacts of marijuana use, especially for young people and those with pre-existing mental health conditions.
Public safety: Critics worry about impaired driving and increased accidents under the influence of marijuana, as well as potential negative social effects.
Gateway drug theory: Some argue that marijuana use could lead to the use of more dangerous substances.
International treaty obligations: Countries that have signed international drug control treaties may face challenges in legalizing marijuana.
Know more about legalization of marijuanahere;
https://brainly.com/question/32703439
#SPJ11
Brief Exercise 12-6 (Static) Fair value option; available-for-sale securities [LO12-8] S\&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2021, S\&L purchased CocaCola bonds at par for $875,000 and sold the bonds on January 3, 2022, for $880,000. At December 31 , the bonds had a fair value of $873,000. When it purchased the Coca-Cola bonds, S\&L Financial decided to elect the fair value option for this investment. What pretax amounts did S\&L Afclude in its 2021 and 2022 net income as a result of this investment (ignoring interest)? (Enter all amounts as positive values.)
the pretax amount included in the 2022 net income is $7,000.
Since S&L Financial elected the fair value option for the Coca-Cola bonds, any changes in fair value are recognized in net income.
In 2021:
Since there were no changes in fair value between the purchase date (December 27, 2021) and the end of the year (December 31, 2021), there is no impact on the 2021 net income. The pretax amount included in the 2021 net income is $0.
In 2022:
S&L Financial sold the Coca-Cola bonds on January 3, 2022, for $880,000. Since the fair value at the end of the year (December 31, 2021) was $873,000, there was a decrease in fair value of $7,000 ($880,000 - $873,000). This decrease is recognized as a loss in the 2022 net income. Therefore, the pretax amount included in the 2022 net income is $7,000.
To summarize:
2021: $0
2022: $7,000
To know more about Bonds related question visit:
https://brainly.com/question/31358643
#SPJ11
Salvatore is employed by Wevex Corp. and he is a member of his employer’s retirement pension plan. His employer contributes to the maximum limit allowable. The income on retirement for the plan is known in advance, it lasts for life, and it has a provision for Salvatore's wife in the event of his death. What type of plan is Salvatore a member of?
a) Defined Contribution Pension Plan (DCPP)
b) Defined Benefit Pension Plan (DBPP)
c) Pooled Registered Pension Plan (PRPP)
d) Deferred Profit Sharing Plan (DPSP)
Salvatore is a member of a Defined Benefit Pension Plan (DBPP).
In a Defined Benefit Pension Plan, the retirement income is predetermined based on factors such as the employee's years of service and salary history. The employer bears the investment and longevity risk, ensuring that the employee receives a specific benefit amount upon retirement. In this case, Salvatore's employer contributes to the plan up to the maximum limit allowed and the income from the plan is known in advance. The plan also includes a provision for Salvatore's wife in the event of his death, which indicates the presence of survivor benefits.
Know more about Defined Benefit Pension Plan here:
https://brainly.com/question/29562606
#SPJ11
A proprietorship has a calendar fiscal year and acquires a machine on April 1, 2020. The machine has a cost of $60,000. The proprietor pays a contractor $18,000 to install the machine and pays a non-refundable provincial sales tax of $6,500. The machinery is Class & equipment with a CCA rate of 20%. Assuming that the opening UCC for Class & assets is $0, what is the maximum CCA that can be deducted for this machine in fiscal year 2020? Choose the correct answer. A. $23,400 B. $16,900 C. $8.450 D. $25,350
The correct option is D) $25,350.What is a proprietorship A sole proprietorship is a business that is owned and operated by a single person and is unincorporated. UCC stands for the Undepreciated Capital Cost, and it is the value of an asset that is still eligible for depreciation.
CCA stands for Capital Cost Allowance, and it is a tax deduction that is available to Canadian businesses to cover the cost of depreciable capital property. Let's go back to the question:
A proprietorship has a calendar fiscal year and acquires a machine on April 1, 2020. The machine has a cost of $60,000. The proprietor pays a contractor $18,000 to install the machine and pays a non-refundable provincial sales tax of $6,500.
The machinery is Class & equipment with a CCA rate of 20%. Assuming that the opening UCC for Class & assets is $0, what is the maximum CCA that can be deducted for this machine in fiscal year 2020?We can use the formula:
To know more about proprietorship visit:
https://brainly.com/question/32997613
#SPJ11
