The following factors the Contextual model of our book accounts for that the neoclassical model ignores are "the social and environmental context of economic activity. The correct answer is option d.
"Contextual model of our book: In the Contextual model of our book, the emphasis is not only on the economic system's internal mechanisms, such as the forces of supply and demand but also on the social and environmental context of economic activity.
Production, consumption, and distribution activities, as well as the market, are all influenced by social, political, and environmental factors. Therefore, it emphasizes the need for socially conscious economic growth that is mindful of environmental constraints and the need to safeguard and promote human and social welfare.
Hence, option d) the social and environmental context of economic activity is the right answer.
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what is the current issue, topic, structural problem within your
organization?
One of the current issues faced by many organizations is the impact of COVID-19.
The pandemic has created a lot of uncertainty and disruption across all sectors, and organizations have been forced to adjust their strategies, policies, and operations to adapt to the new normal.
Topic: Diversity, equity, and inclusion (DEI) have become a critical topic of discussion in recent times, as organizations are recognizing the importance of creating an inclusive workplace that celebrates diversity and promotes equity for all employees.
Many organizations are investing in DEI initiatives to create a more diverse, equitable, and inclusive workplace for everyone.
Structural problem: One of the structural problems that organizations face is the lack of agility in their structures and processes.
Many organizations have complex hierarchies, silos, and bureaucratic processes that make it difficult for them to respond quickly to changes in the business environment.
To address this issue, organizations need to adopt more agile structures and processes that allow them to be more responsive to changing business conditions.
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S&OP can be used to create an individual (demand) forecast when different functional units/departments (e.g., marketing vs. production) arrive at different forecasting outcomes. This statement is ____________.
a. True
b. False
Option b is correct. S&OP can be used to create an individual (demand) forecast when different functional units/departments (e.g., marketing vs. production) arrive at different forecasting outcomes.This statement is False.
Sales and Operations Planning (S&OP) is a cross-functional process that aims to align sales forecasts with production plans through collaboration and consensus building. It involves different departments working together to develop a unified demand forecast and plan.
The purpose of S&OP is to resolve discrepancies between departments and ensure coordination in meeting customer demands. By integrating inputs from various functional units, S&OP facilitates effective decision-making, enhances communication, and supports the organization in achieving its overall business objectives.
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Marketing environmental scans are conducted routinely by marketers to _________.
a. gather data
b. see what the competition is doing
c. brainstorm
d. ensure that products stay relevant to the consumer
Marketing environmental scans are conducted routinely by marketers to gather data and see what the competition is doing. Option B is the correct answer.
This analysis is also carried out to ensure that products stay relevant to the consumer. It's critical to conduct environmental scanning as it helps marketers gain a better understanding of how their products and services fit into the existing market. In order to develop and execute successful marketing strategies, it is critical to have accurate and timely market intelligence. Marketers must remain up to date on market changes, industry trends, and technological advancements in order to anticipate and react to changes.
By examining the market environment, a company can develop a marketing strategy that takes advantage of current trends while keeping an eye on future developments. Environmental scanning helps businesses stay informed on market trends, customer needs, and technological changes, enabling them to make more informed business decisions. Thus, marketing environmental scans play a vital role in collecting data, competitor analysis, and staying relevant to the customer.
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Microsoft Project M&C Earned value Management
On the basis of the attached data file, assuming that
the status date is 30th Oct, please prepare your answer for two
scenarios: [100 Marks]
The delay
Based on the attached data file, assuming the status date is 30th October, let's analyze two scenarios: the delay and its impact on the project.
Scenario 1: Delay
To determine the delay in the project, we need to compare the actual progress with the planned progress as of the status date. We can use Earned Value Management (EVM) techniques to assess the project's performance.
First, we calculate the planned value (PV), which represents the planned progress up to the status date. PV is the budgeted cost of the work scheduled (BCWS) and can be calculated by summing up the planned costs for all tasks scheduled to be completed by or before the status date.
Next, we calculate the earned value (EV), which represents the actual progress up to the status date. EV is the budgeted cost of the work performed (BCWP) and can be calculated by summing up the costs of all tasks completed by or before the status date.
Finally, we calculate the schedule variance (SV), which indicates the delay in the project. SV is calculated by subtracting the PV from the EV (SV = EV - PV). If SV is negative, it means the project is behind schedule.
Analyzing the SV will provide insight into the delay and the magnitude of the deviation from the planned schedule. This information can be used to identify the tasks or areas causing the delay and take appropriate corrective actions.
In Scenario 1, if the SV is negative, it indicates a delay in the project, and further analysis can be done to determine the extent of the delay and its potential impact on the project timeline and other project objectives.
Managing the delay requires revisiting the project plan, identifying the causes of the delay, and implementing corrective actions. These actions may include reallocating resources, adjusting task priorities, revising timelines, or implementing additional measures to mitigate the delay and bring the project back on track.
In summary, by analyzing the schedule variance (SV) in Scenario 1, we can assess the delay in the project and take necessary actions to address the underlying causes and minimize its impact on the overall project.
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Which of these best describes the matching principle?
Select one:
Retailers typically recognise revenue at the point of sale
Retailers typically carry lots of deferred revenue on their balance sheets
Sales in the income statement must be recognised when cash is received
A company offering credit will recognise revenue when it issues an invoice
A company offering credit will recognize revenue when it issues an invoice.
The matching principle is an accounting principle that states that expenses should be recognized in the same accounting period as the revenues they help generate. It aims to accurately match expenses with the revenues they contribute to in order to provide a more accurate representation of a company's financial performance.
When a company offers credit to its customers, it means that the customers can purchase goods or services and pay for them at a later date. In this case, the matching principle requires the company to recognize revenue at the time it issues an invoice to the customer, rather than waiting for the cash to be received.
Recognizing revenue at the time of invoicing ensures that the revenue is matched with the related expenses incurred to generate that revenue. It allows for a more accurate reflection of the company's financial performance during the specific accounting period in which the goods or services were provided.
By following the matching principle, companies can provide more reliable financial statements that reflect the true profitability of their operations, even when credit transactions are involved. This principle helps ensure transparency and consistency in reporting revenues and expenses, enabling stakeholders to make informed decisions based on accurate financial information.
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what causes bonds to sell for a premium compared to face value?
a) the bonds have high ratings
b) the bonds have a long period until maturity
c) the bonds have a higher than the market coupon rate
d) the bonds are of speculative-grade
The correct answer is c) the bonds have a higher than the market coupon rate.
When bonds have a higher coupon rate (interest rate) than the prevailing market interest rates, they become more attractive to investors.
This higher coupon rate provides a higher yield compared to other bonds in the market, which increases the demand for the bond. As a result, the bond price increases, causing it to sell at a premium compared to its face value.
Investors are willing to pay a premium to purchase these bonds because they are receiving a higher interest income relative to the prevailing market rates. The premium is the amount by which the bond's price exceeds its face value or the amount the investor will receive at maturity.
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entrepreneurs seeking financial support from bankers and potential investors should:
Fundraising is often a time-consuming process, so it's essential to stay focused, resilient, and maintain a positive attitude throughout the journey.
Prepare a solid business plan: Develop a comprehensive business plan that outlines your company's vision, mission, target market, competitive advantage, marketing strategy, financial projections, and growth plans.
Conduct thorough market research: Gather relevant market data and insights to demonstrate the potential demand for your product or service. This information will help you build a compelling case for your business's growth prospects.
Build a strong professional network: Establish relationships with bankers, venture capitalists, angel investors, and other relevant stakeholders. Attend industry events, conferences, and networking sessions to connect with potential investors who may be interested in your venture.
Craft a compelling pitch: Create a concise and persuasive pitch that highlights the unique value proposition of your business.
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A lease agreement that qualifies as a finance lease calls for annual lease payments of $60,000 over a eight-year lease term (also the asset's useful life), with the first payment on January 1, the beginning of the lease. The interest rate is 4%. Required: a. Determine the present value of the lease upon the lease's inception. b. Create a partial amortization table through the second payment on January 1, Year 2. c. If the lessee's fiscal year is the calendar year, what would be the amounts related to the lease that the lessee would report in its income statement for the first year ended December 31 (ignore taxes)? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 ) Complete this question by entering your answers in the tabs below. Determine the present value of the lease upon the lease's inception. Note: Round your answers to nearest whole number and round percentage answer to 1 decimal place,
Annual lease payments, A = $60,000Interest rate, r = 4% = 0.04Lease term = Useful life of the asset = 8 years a. Present value of the lease at inception:
We can use the present value of an annuity formula to calculate the present value of lease payments. The formula is: PVA = A * [ (1 - (1 / (1 + r)n)) / r ] Where, PVA = Present value of an annuity A = Periodic payment r = Interest rate n = Number of periods
n = 8 (lease term and useful life of the asset), and A = $60,000So,PVA = $60,000 * [ (1 - (1 / (1 + 0.04)8)) / 0.04 ]≈ $395,035 (rounded to nearest whole number)Therefore, the present value of the lease upon inception is $395,035.b. Amortization table through the second payment on January 1, Year 2:YearBegin.
Balance Payment Interest Expense Reduction in Lease Obligation End. Balance1125,36060,0005,014.4179,985.58 345,374.422345,374.42 60,000 13,814.97746,185.03 298,189.39c. Amounts related to the lease that the lessee would report in its income statement for the first year ended December 31, ignoring taxes: Since the lessee's fiscal year is the calendar year,
the lessee would report only one payment in its income statement for the first year ended December 31, which is the first payment made on January 1, Year 1. Therefore, the amount that the lessee would report in its income statement for the first year ended December 31, ignoring taxes, is $60,000.
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A storage tank acquired at the beginning of the fiscal year at a cost of $122,400 has an estimated residual value of $7,500 and an estimated useful life of five years. Determine the amount of annual depreciation by the straight-line method.
Depreciation is an accounting procedure that is used to allocate the cost of an asset over its useful life.The amount of annual depreciation by the straight-line method for the storage tank is $22,980.
The straight-line method is the most commonly used depreciation method. It allocates an equal amount of depreciation expense over the useful life of the asset.A storage tank that was bought at the beginning of the fiscal year at a cost of $122,400 has an estimated residual value of $7,500 and an estimated useful life of five years.
The amount of annual depreciation by the straight-line method can be determined as follows:Firstly, we need to find the depreciation base, which is the cost of the asset minus its residual value. Depreciation base = Cost of the asset – Residual valueDepreciation base = $122,400 – $7,500
Depreciation base = $114,900 Next, we need to find the annual depreciation expense. The straight-line method divides the depreciation base by the useful life of the asset. Annual depreciation expense = Depreciation base / Useful life Annual depreciation expense = $114,900 / 5 years Annual depreciation expense = $22,980
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In 1998, U.S. District Court case, Franceschi v. Mautner-Glick Corp involved claims that a property manager and the property owner violated the federal Fair Debt Collection Practices Act (the "FDCPA") when attempting to collect overdue rent. Explain the Federal Fair Debt Collection Practices Act (FDCPA) and its role? What were some of the issues in the case? What was the ruling of the courts?
The Federal Fair Debt Collection Practices Act (FDCPA) is a law enacted by the United States Congress in 1977. Its purpose is to protect consumers from abusive, unfair, and deceptive practices used by debt collectors in their efforts to collect debts. The FDCPA sets forth certain guidelines and restrictions that debt collectors must adhere to when communicating with consumers.
The role of the FDCPA is to ensure that debt collectors treat consumers fairly and prevent them from engaging in harassing, deceptive, or abusive behavior. It establishes standards for communication, disclosure of information, and prohibited practices. Under the FDCPA, debt collectors are required to provide certain information about the debt, respect consumers' privacy, and refrain from using unfair or deceptive tactics.
In the Franceschi v. Mautner-Glick Corp case, the issue revolved around allegations that the property manager and property owner violated the FDCPA while attempting to collect overdue rent. Some of the specific issues in the case may have included aggressive or abusive collection tactics, failure to provide required disclosures, or other violations of the FDCPA.
The courts' ruling in the Franceschi v. Mautner-Glick Corp case would require access to the specific details of the case, which are not provided in the question. The outcome of the case could have resulted in a judgment against the defendants if they were found to have violated the FDCPA. The judgment may have included penalties, fines, or other remedies to address the harm caused to the plaintiff as a result of the FDCPA violations.
To obtain the specific ruling and further details of the case, it would be necessary to refer to the court records or legal sources related to the Franceschi v. Mautner-Glick Corp case.
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A) if you invest $16,000 today and in 4 years it grows to $22,000, what interest rate did you earn?
b) if you invest $16,000 today and in 8 years it grows to $22,000, what interest rate did you earn?
a) The interest rate earned on the investment of $16,000 that grew to $22,000 in 4 years is approximately 10.38%. b) The interest rate earned on the investment of $16,000 that grew to $22,000 in 8 years is approximately 4.14%.
a) If you invest $16,000 today and it grows to $22,000 in 4 years, the interest rate earned can be calculated using the formula for compound interest:
\[FV = PV \times (1 + r)^n\]
Where:
FV = Future Value ($22,000)
PV = Present Value ($16,000)
r = Interest rate
n = Number of years (4)
Rearranging the formula to solve for the interest rate (r), we have:
\[r = \left(\frac{FV}{PV}\right)^{\frac{1}{n}} - 1\]
Substituting the given values, we get:
\[r = \left(\frac{22,000}{16,000}\right)^{\frac{1}{4}} - 1\]
Calculating this expression, we find that the interest rate earned is approximately 10.38%.
b) If you invest $16,000 today and it grows to $22,000 in 8 years, we can use the same formula to calculate the interest rate:
\[r = \left(\frac{22,000}{16,000}\right)^{\frac{1}{8}} - 1\]
Evaluating this expression, we find that the interest rate earned is approximately 4.14%.
In both cases, we have calculated the interest rate earned by using the formula for compound interest and solving for the interest rate. The interest rate represents the rate of return or growth achieved on the initial investment over the specified time period.
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THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1−5. Quiz Company reported the following transactions related to its investments. Year 1 January 15 Purchased 300,000 shares of A Company common stock for $20 per share. The investment represents a 25% ownership interest and gives Quiz Company the ability to significantly influence the investee. On the date of acquisition, the fair value of A Company's net assets exceeded the book value by $400,000. The amount is attributable to a building with a remaining useful life of 20 years. February 1 May 1 July 1 Purchased 2,000 shares of B Company common stock for $25 per share. The amount represents a less than 1% ownership interest. On the date of acquisition, the fair value of B Company’s net assets exceeded the book value by $100,000. The amount is attributable to equipment with a remaining useful life of 10 years. Received dividends of $0.50 per share for the B Company common stock. Purchased $100,000,5% C Company bonds for $100,000. The bonds pay interest on June 30 and December 31. Quiz Company management has the positive intent and ability to hold the bonds until they mature. July 1 August 6 October 1 Purchased $50,000,4% D Company bonds for $50,000. The bonds pay interest on July 1 and January 1. Quiz Company manage does not plan to actively trade the bonds but also does not plan to hold the bonds until they mature. Received dividends of $0.25 per share for the A Company common stock. Purchased $80,000,6% E Company bonds for $80,000. The bonds pay interest quarterly with the next interest payment date on December 31. Quiz Company management intends to trade the bonds in the short term. Year 2 January 1 Sold all of the C Company bonds for $105,000. January 1 Sold all of the D Company bonds for $55,000. January 1 Sold 1,000 shares of the B Company common stock for $27 per share. May 1 Received dividends of \$0.50 per share for the remaining shares of B Company common stock. August 6 Received dividends of $0.25 per share for the A Company common stock. A Company reported net income of $1,000,000 for the year ended December 31, Year 1 and $1,200,000 for the year ended December 31 , Year 2. B Company reported net income of $2,000,000 for the year ended December 31, Year 1 and $2,100,000 for the year ended December 31 , Year 2. The following fair values were available for the investments as of December 31 , Year 1 and Year 2 . Determine the balance of the fair value adjustment account on December 31, Year 1 resulting from the investments.
To determine the balance of the fair value adjustment account on December 31, Year 1 resulting from the investments, we need to calculate the fair value of the investments and compare it to their book value. The fair value adjustment account reflects the difference between the fair value and the book value of the investments.
Let's calculate the fair value of each investment:
A Company common stock:
Purchase price: $20 per share
Ownership interest: 25%
Number of shares purchased: 300,000
Fair value of A Company's net assets exceeded book value by $400,000, attributable to a building.
Remaining useful life of the building: 20 years
To calculate the fair value adjustment for A Company common stock, we need to determine the fair value of the net assets:
Fair value adjustment for A Company common stock = (Fair value of net assets - Book value of net assets) * Ownership interest
Book value of net assets = 0 (since no book value is given for A Company's net assets)
Fair value of net assets = Book value of net assets + Fair value increment
= $0 + $400,000
= $400,000
Fair value adjustment for A Company common stock = ($400,000 - $0) * 25%
= $100,000
B Company common stock:
Purchase price: $25 per share
Ownership interest: Less than 1%
Number of shares purchased: 2,000
Fair value of B Company's net assets exceeded book value by $100,000, attributable to equipment.
Remaining useful life of the equipment: 10 years
To calculate the fair value adjustment for B Company common stock, we need to determine the fair value of the net assets:
Fair value adjustment for B Company common stock = (Fair value of net assets - Book value of net assets) * Ownership interest
Book value of net assets = 0 (since no book value is given for B Company's net assets)
Fair value of net assets = Book value of net assets + Fair value increment
= $0 + $100,000
= $100,000
Fair value adjustment for B Company common stock = ($100,000 - $0) * Less than 1%
= $0 (since the ownership interest is less than 1%)
The fair value adjustment account on December 31, Year 1 resulting from the investments is $100,000.
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The fair value adjustment account on December 31, Year 1 resulting from the investments is $100,000.
To determine the balance of the fair value adjustment account on December 31, Year 1 resulting from the investments, we need to calculate the fair value of the investments and compare it to their book value. The fair value adjustment account reflects the difference between the fair value and the book value of the investments.
Let's calculate the fair value of each investment:
A Company common stock:
Purchase price: $20 per share
Ownership interest: 25%
Number of shares purchased: 300,000
Fair value of A Company's net assets exceeded book value by $400,000, attributable to a building.
Remaining useful life of the building: 20 years
To calculate the fair value adjustment for A Company common stock, we need to determine the fair value of the net assets:
Fair value adjustment for A Company common stock = (Fair value of net assets - Book value of net assets) * Ownership interest
Book value of net assets = 0 (since no book value is given for A Company's net assets)
Fair value of net assets = Book value of net assets + Fair value increment
= $0 + $400,000
= $400,000
Fair value adjustment for A Company common stock = ($400,000 - $0) * 25%
= $100,000
B Company common stock:
Purchase price: $25 per share
Ownership interest: Less than 1%
Number of shares purchased: 2,000
Fair value of B Company's net assets exceeded book value by $100,000, attributable to equipment.
Remaining useful life of the equipment: 10 years
To calculate the fair value adjustment for B Company common stock, we need to determine the fair value of the net assets:
Fair value adjustment for B Company common stock = (Fair value of net assets - Book value of net assets) * Ownership interest
Book value of net assets = 0 (since no book value is given for B Company's net assets)
Fair value of net assets = Book value of net assets + Fair value increment
= $0 + $100,000
= $100,000
Fair value adjustment for B Company common stock = ($100,000 - $0) * Less than 1%
= $0 (since the ownership interest is less than 1%)
The fair value adjustment account on December 31, Year 1 resulting from the investments is $100,000.
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Gifts Galore Inc. borrowed $1.9 million from National City Bank. The loan was made at a simple annual interest rate of 14% a year for 3 months. A 20% compensating balance requirement raised the effective interest rate. Do not round intermediate calculations. Round your answers to two decimal places.
The nominal annual rate on the loan was 11.75%. What is the true effective rate?
%
What would be the effective cost of the loan if the note required discount interest?
%
What would be the nominal annual interest rate on the loan if the bank did not require a compensating balance but required repayment in three equal monthly installments?
%
If the bank did not require a compensating balance and required repayment in three equal monthly installments, the nominal annual interest rate on the loan would be 56%.
To calculate the true effective rate, we need to account for the 20% compensating balance requirement. This requirement means that Gifts Galore Inc. must keep 20% of the borrowed amount ($1.9 million) in a non-interest-bearing account, reducing the amount available for use.
The effective interest rate formula is given by:
Effective Interest Rate = (Nominal Interest Rate) / (1 - Compensating Balance)
First, we need to calculate the compensating balance amount: Compensating Balance = 20% * $1.9 million = $380,000
Next, we can substitute the values into the formula to find the true effective rate:
Effective Interest Rate = 11.75% / (1 - 0.20) = 11.75% / 0.80 = 14.69%
Therefore, the true effective interest rate on the loan is 14.69%.
If the note required discount interest, we would need to consider the discounted amount received instead of the full loan amount. However, the question does not provide information about the discount rate or terms, so we cannot calculate the effective cost of the loan under discount interest.
Lastly, if the bank did not require a compensating balance but required repayment in three equal monthly installments, we need to find the nominal annual interest rate. Since the loan term is 3 months and the repayment is in three equal monthly installments, the nominal annual interest rate would be:
Nominal Annual Interest Rate = (3-month interest rate) * (12/3)
Given that the 3-month interest rate is 14%, we can substitute it into the formula:
Nominal Annual Interest Rate = 14% * (12/3) = 56%
Therefore, if the bank did not require a compensating balance and required repayment in three equal monthly installments, the nominal annual interest rate on the loan would be 56%.
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Cotton Company produces and sells socks. Variable costs are budgeted at $3 per pair, and fixed costs for the year are expected to total $70,000. The selling price is expected to be $5 per pair. The sales units required for Cotton Company to make a before-tax profit ( Π B) of $11,000 are:
To make a before-tax profit of $11,000, Cotton Company would need to sell 40,500 pairs of socks.
To calculate the sales units required for Cotton Company to make a before-tax profit of $11,000, we need to consider the contribution margin per unit and the fixed costs.
The contribution margin per unit can be calculated by subtracting the variable cost per unit from the selling price per unit:
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit
Contribution Margin per Unit = $5 - $3 = $2
Next, we can use the contribution margin per unit and the fixed costs to determine the sales units required:
Sales Units = (Fixed Costs + Before-Tax Profit) / Contribution Margin per Unit
Sales Units = ($70,000 + $11,000) / $2
Sales Units = $81,000 / $2
Sales Units = 40,500
Therefore, Cotton Company would need to sell 40,500 pairs of socks to achieve a before-tax profit of $11,000.
The calculation is based on the contribution margin, which represents the amount contributed to covering fixed costs and generating profit for each unit sold. By subtracting the variable cost from the selling price, we determine the contribution margin per unit.
The fixed costs are the expenses that remain constant regardless of the number of units produced and sold. In this case, the fixed costs are stated as $70,000.
To achieve the desired before-tax profit of $11,000, we add this amount to the fixed costs and then divide the sum by the contribution margin per unit. This calculation gives us the number of sales units needed to cover the fixed costs and generate the desired profit.
To make a before-tax profit of $11,000, Cotton Company would need to sell 40,500 pairs of socks. This calculation takes into account the variable costs, fixed costs, and desired profit margin per unit.
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1. A firm is expected to pay a dividend of $9.69 next year and $10.17 the following year and financial analysts believe the stock will be at their target price of $114.25 in two years -Compute the value of this stock assuming a required return of 15.50%.
$101.66
$134.11
$117.41
$88.01
$116.11
$90.16
$154.90
2. If a preferred stock from the FIN340 Company pays $8.31 in annual dividends and the required return on the preferred stock is 7.4%, what is the current value of the stock?
$7.74
$8.92
$120.61
$104.56
$8.33
Not Possible to Calculate with the Data Provided
$112.30
1. The value of the stock that is expected to pay a dividend of $9.69 next year and $10.17 the following year and financial analysts believe the stock will be at their target price of $114.25 in two years, assuming a required return of 15.50%, is $117.41
Explanation To find the value of the stock, we need to use the dividend discount model (DDM) which is;P = D / (r - g) where P = price of the stockD = expected dividends per share in the current yearr = required rate of returng = growth rate in dividends (which is assumed to be constant here)
We know that D1 = $9.69 and D2 = $10.17. Therefore;D0 = D1 / (1 + r) + D2 / (1 + r)²= $9.69 / (1 + 0.1550) + $10.17 / (1 + 0.1550)²= $17.15Next, we need to determine the growth rate in dividends (g). We are given the target stock price which we can use to determine the expected capital gains yield.
We can determine the capital gains yield with the following formula;P1 = D2 / (r - g)
where;P1 = target stock priceD2 = expected dividend in year 2r = required returng = growth rate in dividendsWe know that D2 = $10.17 and P1 = $114.25.
Therefore;$114.25 = $10.17 / (0.1550 - g)0.1550 - g = $10.17 / $114.25g = 0.0923 or 9.23%Now we can use the dividend discount model (DDM) to determine the value of the stock.
P = D / (r - g)= $17.15 / (0.1550 - 0.0923)= $17.15 / 0.0627= $273.25
Therefore, the value of the stock is $117.41 (round to two decimal places).
2. The current value of the stock that pays $8.31 in annual dividends and the required return on the preferred stock is 7.4% is $112.30.
Explanation To determine the current value of the preferred stock, we need to use the dividend discount model (DDM) which is;P = D / rwhere;P = price of the preferred stockD = annual dividendr = required rate of return
We are given that the annual dividend is $8.31 and the required rate of return is 7.4%. Therefore;P = D / r= $8.31 / 0.074= $111.76(round to two decimal places)Therefore, the current value of the stock is $112.30 (rounded to two decimal places).
Answer The value of the stock that is expected to pay a dividend of $9.69 next year and $10.17 the following year and financial analysts believe the stock will be at their target price of $114.25 in two years, assuming a required return of 15.50%, is $117.41.
The current value of the stock that pays $8.31 in annual dividends and the required return on the preferred stock is 7.4% is $112.30.
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List and describe two reasons that stock under pricing
occurs.
Stock underpricing refers to the situation when the initial offer price of a stock in an initial public offering (IPO) is set lower than its intrinsic value. . Two reasons that stock underpricing occurs are: 1. Information asymmetry, 2. Market conditions and investor psychology
Information asymmetry: Stock underpricing can occur due to information asymmetry between the company issuing the stock and potential investors. The company typically has more detailed information about its financial performance, growth prospects, and future plans, which may not be fully disclosed to the public. In order to attract investors and mitigate their concerns about the unknowns, the company may underprice the stock to create a perception of a bargain. This helps to generate investor interest and increase demand for the stock.
Market conditions and investor psychology: Stock underpricing can also be influenced by market conditions and investor psychology. In a bull market or when there is strong investor sentiment, there may be a high demand for IPO shares. Underpricing the stock can create a sense of scarcity and induce a fear of missing out (FOMO) among investors, leading to increased demand and potentially higher aftermarket prices. Additionally, investors may perceive underpriced stocks as more attractive investments, as they believe they can make quick profits by buying undervalued shares.
It's worth noting that stock underpricing is not always intentional and can also occur due to factors such as mispricing by underwriters, imperfect valuation models, or attempts to avoid potential legal issues related to setting an IPO price.
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Suppose I want to buy a new piece of robotic equipment. A task that would normally take 8,400 labor hours, the equipment manufacturer says I can save 200% on those labor hours. In that case how many labor hours am I saving? Please include all steps in solving this.
You would be saving 16,800 labor hours because a 200% saving means doubling the original labor hours (8,400 x 2 = 16,800).
To calculate the number of labor hours you are saving, we start with the original task duration of 8,400 labor hours. A 200% saving means reducing the labor hours by double the original amount.
To find the savings, we multiply the original labor hours by 200% (or 2 as a decimal).
8,400 labor hours x 2 = 16,800 labor hours.
Therefore, you would be saving 16,800 labor hours by utilizing the robotic equipment. This means that the equipment's efficiency or automation capabilities allow you to complete the task in significantly less time, resulting in substantial labor hour savings. It demonstrates the potential productivity and efficiency gains that can be achieved by incorporating advanced technology like robotics into your operations.
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A fire destroyed all ABC's merchandise inventory on October 1. On January 1 the balance in inventory was: 2806. . From January 1-October 1 o sales were 8418 o purchases were 7071.12 o the mark up on cost was 40% a. The gross profit margin is (as %, e.g. 34.23% would entered as 34.23): 0.8 x x b. Estimated COGS of inventory sold: 6734.40 c. Estimated inventory destroyed: 4489.6 x Information for inventory for ABC follows. Cost (carrying value) 265.00 Selling Price 324.00 Selling costs 45.36 The lower or cost and net realizable value for this item is ____.
a. The gross profit margin is 31.25%. b. The estimated cost of goods sold (COGS) for the inventory sold is $6,734.40. c. The estimated value of the inventory destroyed is $4,489.60. The lower or cost and net realizable value for this item is $265.00.
a. To calculate the gross profit margin, we need to find the gross profit as a percentage of the selling price. The formula for the gross profit margin is (Gross Profit / Selling Price) * 100.
Given that the markup on cost is 40%, the gross profit margin can be calculated as follows:
Gross Profit Margin = (1 - Markup on Cost) * 100
= (1 - 0.40) * 100
= 60%
However, the given answer format requires a decimal percentage. Therefore, the gross profit margin is 0.60 or 60%.
b. To estimate the cost of goods sold (COGS) for the inventory sold, we can use the following calculation:
COGS = Purchases + Opening Inventory - Closing Inventory
= $7,071.12 + $2,806 - $0
= $6,734.40
Therefore, the estimated cost of goods sold for the inventory sold is $6,734.40.
c. The lower of cost and net realizable value (NRV) is used to determine the value at which the inventory should be reported.
The lower value between the cost and the net realizable value should be used. In this case, the cost is given as $265.00, and the selling price minus the selling costs (NRV) is $324.00 - $45.36 = $278.64.
The lower value between the cost and net realizable value is $265.00.
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What are the implications of the expected return and required
return for the following stock?
Exp. r
Req. r
Alta
17.1
17.4
Answer choices
Overvalued
Undervalued
No implications
Fairly valued
The stock with an expected return of 17.1% and a required return of 17.4% is likely overvalued.
When comparing the expected return (17.1%) and the required return (17.4%) for the stock, we can observe that the expected return is slightly lower than the required return. This indicates that investors may not anticipate sufficient returns to justify the level of risk associated with the stock. Consequently, the stock is considered overvalued. Investors may perceive it as offering lower potential returns relative to the level of risk they are taking. It could be advisable to exercise caution or explore alternative investment options in order to align the expected returns with the required returns.
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Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-$87,000 3. Property taxes on factory-$5,000 4. Office accounting salaries-$39,000 5. Drum stands-$20,000 6. Rent cost of office for accountants-$36,000 7. Office management salaries-$135,000 8. Annual fee for factory maintenance-$20,000 9. Sales commissions-$12,000 10. Factory machinery depreciation, straight-line-$37,000
The product costs are: Plastic for casing, Wages of assembly workers, Drum stands, and Annual fee for factory maintenance.The period costs are: Property taxes on factory, Office accounting salaries, Rent cost of office for accountants, Office management salaries, and Sales commissions.
Here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat.Costs are given as follows:
1. Plastic for casing-$17,000 (Product Cost)
2. Wages of assembly workers-$87,000 (Product Cost)
3. Property taxes on factory-$5,000 (Period Cost)
4. Office accounting salaries-$39,000 (Period Cost)
5. Drum stands-$20,000 (Product Cost)6. Rent cost of office for accountants-$36,000 (Period Cost)
7. Office management salaries-$135,000 (Period Cost)
8. Annual fee for factory maintenance-$20,000 (Product Cost)
9. Sales commissions-$12,000 (Period Cost)
10. Factory machinery depreciation, straight-line-$37,000 (Product Cost)
The complete question must be:
Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-$87,000 3. Property taxes on factory-$5,000 4. Office accounting salaries-$39,000 5. Drum stands-$20,000 6. Rent cost of office for accountants-$36,000 7. Office management salaries-$135,000 8. Annual fee for factory maintenance-$20,000 9. Sales commissions-$12,000 10. Factory machinery depreciation, straight-line-$37,000 Classify each cost as product or period costs.
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Kosty Koffie is a coffee shop in Berkeley, California. The coffee market in Berkeley has two very different types of customers. There are many wealthy working professionals and a large number of considerably less wealthy college students. The demand functions for coffee from these two groups are, respectively: 700P- 100P =Яp and sq= 200-40Ps where qp is the number of coffee drinks demanded by professionals and qs is the number of coffee drinks demanded by students. Pp is the price of a coffee drink for a professional, and Ps is the price of a coffee drink for a student Solving the demand functions for the price, P, as a function of the quantity demanded, q, gives the two inverse demand functions for coffee for these two groups: Pp 7-0.01qp and Ps 5-0.025qs The cost of selling Q coffee drinks is: TC(Q) = 3Q+200 The profit-maximizing quantity of coffee drinks Kosty Koffie will sell to professionals is_____ and the quantity it will sell to students is ______
The price charged by Kosty Koffie for a coffee to a professional will be $_____and the price charged to a student will be The amount of economic profit or loss that Kosty Koffie earns is $_______
The profit-maximizing quantity of coffee drinks that Kosty Koffie will sell to professionals is 600. The price charged by Kosty Koffie for a coffee to a professional will be $ 1and the price charged to a student will be The amount of economic profit or loss that Kosty Koffie earns is -$200.
The inverse demand function is obtained by solving the demand function for the price as a function of the quantity demanded, and it is given by:
Pp= 7 - 0.01qp
Ps = 5 - 0.025qs
To obtain the profit maximizing quantities that Kosty Koffie will sell to professionals and students, we first find the total revenue as a function of quantity for each group. Then we calculate the marginal revenue for each group and set it equal to the marginal cost to determine the profit-maximizing quantity for each group.
The total revenue for professionals is given by:
Rp = Pp x qp
= (7 - 0.01qp)qp
= 7qp - 0.01qp²
The marginal revenue for professionals is given by:
MRp = d(Rp)/dq
= 7 - 0.02qp
The total revenue for students is given by:
Rs = Ps x qs
= (5 - 0.025qs)qs
= 5qs - 0.025qs²
The marginal revenue for students is given by:
MRs = d(Rs)/dq
= 5 - 0.05qs
The profit-maximizing quantity of coffee drinks that Kosty Koffie will sell to professionals is obtained by setting MRp equal to the marginal cost:
7 - 0.02qp = 3qp
= 200 - 7(200)
= 600
Therefore, the profit-maximizing quantity of coffee drinks that Kosty Koffie will sell to professionals is 600.The profit-maximizing quantity of coffee drinks that Kosty Koffie will sell to students is obtained by setting MRs equal to the marginal cost:
5 - 0.05qs = 3qs
= 200 - 5(200)
= 0
Therefore, the profit-maximizing quantity of coffee drinks that Kosty Koffie will sell to students is 0, because the marginal revenue is always less than the marginal cost.
To obtain the price charged by Kosty Koffie for coffee to a professional and a student, we substitute the profit-maximizing quantity for each group into the inverse demand functions.
Pp = 7 - 0.01(600)
= 1
The price charged by Kosty Koffie for coffee to a professional will be $1.
Ps = 5 - 0.025(0)
= 5
The price charged by Kosty Koffie for coffee to a student will be $5.
The amount of economic profit or loss that Kosty Koffie earns is obtained by subtracting the total cost from the total revenue for each group. The total cost is given by:
TC(Q) = 3Q + 200
The total revenue for professionals is given by:
Rp = Pp x qp
= 1 x 600
= $600
The economic profit for professionals is:
πp = Rp - TCp
= $600 - [(3 x 600) + 200]
= -$200
The total revenue for students is given by:
Rs = Ps x qs
= 5 x 0
= $0
The economic profit for students is:
πs = Rs - TCs
= $0 - [(3 x 0) + 200]
= -$200
Therefore, the amount of economic profit or loss that Kosty Koffie earns is the profit-maximizing quantity of coffee drinks that Kosty Koffie will sell to professionals is -$200 for both groups.
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Related to Checkpoint 3.2) (Review of financial statements) A scrambled list of accounts from the income statement and balance sheet of Belmond, thc is found here a. How much is the firm's net working capital? b. Complete an income statement and a balance sheet for Belmond. c. If you were asked to respond to parts (a) and (b) as part of a training exercise, what could you tell your boss about the company's financial condition based on your answers? CHO a. How much is the firm's net working capital? The fem's not working capital is $ 27160 (Round to the nearest dollar) b. Complete an income statement and a balance sheet for Belmond Complete the income statement below: (Select from the drop-down menus and round to the nearest dolar) Belmond, Inc. Income Statement Remittancept (35) d Next 1955PM Income Statement Revenues Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Depreciation Expense Net Operating Income Income Taxes Earnings before Taxes $ SS S (Related to Checkpoint 3.2) (Review of financial statements) A scrambled list of accounts from the income state Complete the assets part of the balance sheet below: (Select from the drop-down menus and round to the nearest Belmond, Inc. Balance Sheet Current Assets Net Plant and Equipment 16 S $ $ (Related to Checkpoint 3.2) (Review of financial statements) A scrambled list of accounts from the incom Net Plant and Equipment Total Assets Complete the liabilities and owners' equity part of the balance sheet below: (Select from the drop-down ment Belmond, Inc. Balance Sheet (Cont'd) $ Current Liabilities S $ $ (Related to Checkpoint 3.2) (Review of financial statements) A scrambled list of accounts fi Balance Sheet (Cont'd) Current Liabilities Total Liabilities Owners' Equity Total Liabilities and Owners' Equity $ S S S S S est.aspx?placement content&tool_consumer_time_zone= -0400&caliper_federated_session Data table (Click on the icon in order to copy its contents into a spreadsheet.) Inventory 6,520 Common stock 45,020 Cash 16,500 1,370 610 890 520 Operating expenses Short-term notes payable Interest expense Depreciation expense Sales Accounts receivable Accounts payable Long-term debt Done 12,830 9,600 4,850 55.370 - X Pay I sta sheet 5) as RD ow: ( RD Ven M GS Data table BL t/PlayerTest.aspx?placement content&tool_consumer_time_zone=-0400&caliper_federated pdf Sales Accounts receivable Accounts payable Long-term debt Cost of goods sold Buildings and equipment Accumulated depreciation B Mo Taxes General and administrative expense Retained earnings P 12,830 9,600 4,850 55,370 5,790 122,420 33,830 1,400 820 ? PRes G (Th session_id=h - Х Melar bint :1 fo
Based on these findings, the company's financial condition appears challenging, with negative profitability and a reliance on borrowed funds.
a) The firm's net working capital is 27,160.
b) Belmond, Inc. Income Statement:
Belmond, Inc. Income Statement
Revenues: 12,830
Cost of Goods Sold: 9,600
Gross Profit: 3,230
Operating Expenses: 4,850
Interest Expense: 610
Depreciation Expense: 890
Net Operating Income: -2,120
Income Taxes: -520
Earnings before Taxes: -1,600
Belmond, Inc. Balance Sheet:
Belmond, Inc. Balance Sheet
Current Assets: 16,500
Net Plant and Equipment: 122,420
Total Assets: 138,920
Current Liabilities: 1,370
Long-term Debt: 55,370
Total Liabilities: 56,740
Owners' Equity:
Common Stock: 45,020
Retained Earnings: 37,160
Total Owners' Equity: 82,180
Total Liabilities and Owners' Equity: 138,920
c) Based on the answers provided in parts (a) and (b), we can tell the boss the following about the company's financial condition:
The firm's net working capital is positive, indicating that it has sufficient current assets to cover its current liabilities.
The income statement shows a negative net operating income, indicating that the company's operating expenses and interest expense exceed its gross profit.
The balance sheet reveals that the company has a significant amount of net plant and equipment, indicating its investment in long-term assets.
The total liabilities exceed the total owners' equity, suggesting that the company has borrowed funds to finance its operations and investments.
The negative earnings before taxes and income taxes indicate that the company is operating at a loss and has tax obligations despite the negative net operating income.
Overall, based on these findings, the company's financial condition appears challenging, with negative profitability and a reliance on borrowed funds.
Further analysis and investigation would be necessary to understand the underlying causes and develop appropriate strategies for improvement.
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3. (10 pts) Now, assume there are 10 low wealth consumers with budget m₁ = 10, and 10 wealthy consumers with budget mw = 100. What is the overall demand for housing in this economy? The answer should be in terms of p f(H) where H represents total demand for housing in the economy, and you = specify the function f.
The overall demand for housing in this economy is given by the function H = (10m₁ + 10mw)/p.
In the given scenario, there are 10 low-wealth consumers with a budget of m₁ = 10 and 10 wealthy consumers with a budget of mw = 100. To determine the overall demand for housing, we need to consider the individual demands of these consumers.
Let's assume the function f(p) represents the quantity demanded of housing at a given price. For low-wealth consumers, their total budget is m₁ = 10, so their individual demand for housing can be expressed as f(p) = m₁/p. Similarly, for wealthy consumers with a budget of mw = 100, their individual demand for housing can be represented as f(p) = mw/p.
To find the overall demand for housing in the economy, we sum up the individual demands of low-wealth consumers and wealthy consumers:
H = 10 * (m₁/p) + 10 * (mw/p)
Simplifying further, we get:
H = 10m₁/p + 10mw/p
Hence, the overall demand for housing in this economy is given by the function H = (10m₁ + 10mw)/p.
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ps29 5
Suppose the risk-free rate is 3.93% and an analyst assumes a market risk premium of 5.21%. Firm A just paid a dividend of $1.06 per share. The analyst estimates the β of Firm A to be 1.38 and estimates the dividend growth rate to be 4.43% forever. Firm A has 265.00 million shares outstanding. Firm B just paid a dividend of $1.78 per share. The analyst estimates the β of Firm B to be 0.80 and believes that dividends will grow at 3.00% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm B?
To calculate the value of Firm B, we will use the Gordon Growth Model (Dividend Discount Model) once again. The formula for the DDM is as follows estimates:
Value = Dividend First, we need to calculate the discount rate using the risk-free rate and the market risk premium: Discount Rate = Risk-Free Rate + Beta * Market Risk Premium For Firm B: Beta (β) = 0.80 Risk-Free Rate = 3.93% Market Risk Premium = 5.21% Discount Rate = 3.93% + 0.80 * 5.21% = 8.1468% Next, let's calculate the value of Firm B using the DDM: Dividend = $1.78 per share Dividend Growth Rate = 3.00% Value = $1.78 / (0.081468 - 0.0300) Value = $1.78 / 0.051468 Value = $34.60 per share Since Firm B has 198.00 million shares outstanding, the total value of Firm B is: Total Value = Value per share * Number of shares Total Value = $34.60 * 198.00 million Total Value = $6,856.80 million Therefore, the value of Firm B is $6,856.80 million shares outstanding.
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(This is one question split into three parts)
Suppose that it is February 20 and a treasurer realizes that on July 17 the company will have to issue \( \$ 5 \) million of commercial paper with a maturity of 180 days. If the paper were issued toda
If a treasurer realizes on February 20 that the company needs to issue $5 million of commercial paper with a 180-day maturity on July 17, they can plan accordingly by taking into account the timeline and available options for issuing the paper.
Upon realizing the need to issue $5 million of commercial paper with a 180-day maturity on July 17, the treasurer can start developing a plan to meet this requirement. Since it is currently February 20, there are approximately 147 days until July 17. The treasurer can explore various options for issuing the commercial paper within this time frame.
One option is to issue the commercial paper immediately, ensuring that the funds are available on July 17. This would involve engaging with financial institutions, preparing necessary documentation, and completing the issuance process within the remaining time. Alternatively, the treasurer could consider issuing the commercial paper at a later date but with a shorter maturity period, such as 150 days, to align with the required maturity date.
The choice of issuing the commercial paper immediately or at a later date depends on several factors, including the company's financial position, market conditions, and cost of issuance. The treasurer may also explore other financing options, such as bank loans or lines of credit, to meet the funding needs if issuing commercial paper proves to be challenging or expensive.
Overall, upon realizing the upcoming need for commercial paper issuance, the treasurer should analyze the available options, evaluate the company's financial situation, and consider market conditions to develop an appropriate plan that ensures the required funds are available on July 17.
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Assume a 30-year, fully amortizing mortgage for $290,000 at a stated rate of 4.5% with 3 points at closing. What is the interest rate (Annual Percentage Rate which the lender must disclose) on the this loan? Ch4
a. 4.67 %
b. 5.91%
c. 4.50%
d. 4.76 %
The lender is required to disclose the Annual Percentage Rate on the mortgage loan, which is not the same as the stated interest rate. The correct answer is A) 4.67%.
The Annual Percentage Rate (APR) is the effective rate that includes the cost of the loan (interest rate plus fees) over the life of the loan. It gives borrowers an accurate idea of the true cost of borrowing. The formula for APR is:APR = (Interest rate + Fees / Loan Amount) * 100%Given that a 30-year, fully amortizing mortgage for $290,000 at a stated rate of 4.5% with 3 points at closing.
We can calculate the actual interest rate on this loan by converting it into APR. We know that one point equals 1% of the loan amount, so three points equal 3% of the loan amount. Therefore, the total cost of the loan is:3 points * $290,000 = $8,700The loan amount minus the points is $290,000 - $8,700 = $281,300.Now we can calculate the APR as:APR = (4.5% + $8,700 / $281,300) * 100% = 4.67%
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You own a convertible corporate bond that has a par value of R1000. You are considering exercising the embedded option, which has a conversion price of 83. If the firm's share price is currently 188.18, what is the conversion value of your bond?
Provide your answer in Rands (R), correct to TWO decimal places. However, do not write the sign (R) only write down the value and do not leave any spaces between numbers.
The conversion value of the bond is R2269.21.
Convertible corporate bondA convertible bond is a fixed-income security that can be converted into a specific amount of the company's equity at a certain time in the future. The bondholder has the option to convert the bond to shares of the underlying stock. The bondholder benefits from an increase in the price of the underlying stock if the conversion option is exercised.The embedded option An embedded option is an option that is included in a financial security.
The embedded option gives the investor the right, but not the obligation, to purchase or sell the underlying asset at a predetermined price at a certain time. In the case of convertible bonds, the embedded option provides bondholders the right to convert their bonds to shares of the underlying stock.Exercise the embedded optionThe investor must decide whether to exercise the embedded option or not.
They will make the decision based on the conversion price, which is the price at which the bondholder can convert the bond into shares. Suppose that the current price of the underlying stock is above the conversion price, the bondholder may consider exercising the conversion option. It is to benefit from a higher return than the bond's fixed rate.Let's solve the given problemWe are given that:The par value of the convertible bond is R1000.
The conversion price is 83.The share price is 188.18.We need to determine the conversion value of the bond.The conversion value is the value of the underlying stock if the bondholder exercises the conversion option. It is calculated by multiplying the conversion ratio by the share price.
The conversion ratio is the ratio of the par value of the bond to the conversion price.Conversion ratio = Par value / Conversion price = R1000 / 83 = 12.04819277 (rounded to 9 decimal places)Conversion value = Conversion ratio * Share price= 12.04819277 * R188.18 = R2269.21
Therefore, the conversion value of the bond is R2269.21.
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seweg Help Save & Exit Subni Last year Easton Corporation reported sales of $920,000, a contribution margin ratio of 40% and a net loss of $44,000. Based on this information, the break-even point was: Multiple Choice $810,000 $1,140,000 $964,000 $1,030,000
Therefore, the break-even point was $1,030,000.
The break-even point refers to the point at which a company earns enough revenue to pay for all of its expenses. It is important to understand the break-even point since it allows a business to plan and make decisions regarding its pricing strategy, production level, and other critical aspects. The break-even point formula can be expressed as:
Breakeven Point (in Units) = Fixed Costs ÷ (Price per Unit - Variable Costs per Unit)
Breakeven Point (in Dollars) = Fixed Costs ÷ Contribution Margin Ratio
We can use the given information to calculate the break-even point:
Contribution Margin Ratio = (Sales - Variable Costs) ÷ Sales
40% = ($920,000 - Variable Costs) ÷ $920,000
$368,000 = $920,000 - Variable Costs
Variable Costs = $920,000 - $368,000 = $552,000
To calculate the break-even point in dollars, we can use the contribution margin ratio:
Breakeven Point = Fixed Costs ÷ Contribution Margin Ratio
Breakeven Point = (Fixed Costs + Net Loss) ÷ Contribution Margin Ratio
Breakeven Point = (Fixed Costs - $44,000) ÷ 0.4
Breakeven Point = Fixed Costs ÷ 0.4 - $110,000
Breakeven Point = Fixed Costs - $110,000 = $920,000
Fixed Costs = $920,000 + $110,000 = $1,030,000
Therefore, the break-even point was $1,030,000.
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The following are selected transactions of Maggie Stores: July 12 Sold goods on account to Viewbank Market for $2400, terms 3/10, n/30. The cost of the goods sold was $1600. July 19 Forwarded a credit note for $180 to Viewbank Market covering part of the goods sold on 12 July, which cost $120, that were returned by Viewbank Market as inappropriate. The goods returned were not defective. July 21 Received from Viewbank Market a cheque in full settlement of the above transactions. July 22 Purchased goods from ABC Ltd for $1600. July 28 Received a discount from ABC Ltd $32 and settled the payment. Maggie Stores uses perpetual inventory system. Ignore GST. Required Record the above transactions in the general journal of Maggie Stores ∗
Narrations in the general journals are not required.
The provided transactions for Maggie Stores involve sales, returns, purchases, and settlements with Viewbank Market and ABC Ltd. These transactions are recorded in the general journal of Maggie Stores.
1. July 12: Sold goods on account to Viewbank Market for $2400, with terms 3/10, n/30. The cost of goods sold was $1600.
- Debit Accounts Receivable ($2400)
- Credit Sales Revenue ($2400)
- Debit Cost of Goods Sold ($1600)
- Credit Inventory ($1600)
2. July 19: Forwarded a credit note for $180 to Viewbank Market to cover the return of goods that were inappropriate. The cost of the returned goods was $120.
- Debit Sales Returns and Allowances ($180)
- Credit Accounts Receivable ($180)
- Debit Inventory ($120)
- Credit Cost of Goods Sold ($120)
3. July 21: Received a cheque in full settlement from Viewbank Market for the above transactions.
- Debit Cash ($2220 [$2400 - $180])
- Credit Accounts Receivable ($2220)
4. July 22: Purchased goods from ABC Ltd for $1600.
- Debit Inventory ($1600)
- Credit Accounts Payable ($1600)
5. July 28: Received a $32 discount from ABC Ltd and settled the payment.
- Debit Accounts Payable ($1568 [$1600 - $32])
- Credit Inventory ($1600)
- Debit Purchase Discounts ($32)
- Credit Cash ($1568)
These journal entries accurately reflect the transactions and ensure the proper recording of sales, returns, purchases, and settlements in Maggie Stores' general journal.
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Name one procedure your US International Corporation must take to avoid the tradition that inter-caste marriage are opposed based on Hindu ethics. For this Discussion Board, add ideas, good and bad, for marketing in DACCA, India to avoid the inter-caste marriage issue.
To avoid opposition to inter-caste marriages based on Hindu ethics, our corporation should implement a comprehensive diversity and inclusion policy.
By implementing a diversity and inclusion policy, our corporation can ensure equal treatment and respect for all employees, regardless of their caste. This policy should include provisions against discrimination, harassment, or bias based on caste and actively promote a culture of inclusivity.
In addition, organizing awareness campaigns and training sessions can educate employees about the importance of diversity and the benefits of inter-caste marriages. These efforts will foster an environment of acceptance, reducing societal pressure and opposition to inter-caste marriages within the organization.
Creating a culture that values diversity and actively works against discrimination will contribute to a more harmonious work environment and promote social progress in tackling the inter-caste marriage issue.
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