To calculate the present value of the interest tax shields, we need to determine the cash flows associated with the interest tax shields and discount them to their present value.
The interest tax shield is equal to the interest expense multiplied by the corporate tax rate. In this case, the interest expense is the interest rate multiplied by the remaining debt balance, which is $88 million in the first year. Therefore, the interest tax shield in the first year is 8% * $88 million * 21% = $1.47 million.
Since the terms of the loan require the firm to repay $22 million of the balance each year, the remaining debt balance decreases by $22 million each year. As a result, the interest tax shield also decreases accordingly.
To calculate the present value of the interest tax shields, we need to discount each year's interest tax shield using an appropriate discount rate. Assuming a discount rate of the interest rate (8%), we can calculate the present value of each year's interest tax shield and sum them up.
Using the formula for the present value of a cash flow, the present value of the interest tax shields is given by:
PV = ∑ (Interest tax shield / (1 + r)^t)
Where:
PV = Present value of the interest tax shields
r = Discount rate (interest rate)
t = Number of years
In this case, we need to calculate the present value over the number of years that the loan is outstanding. Since the loan is repaid at a rate of $22 million per year, we can divide the initial debt balance of $88 million by $22 million to determine the number of years, which is 4 years.
Now, we can calculate the present value of the interest tax shields:
PV = $1.47 million / (1 + 8%)^1 + $1.47 million / (1 + 8%)^2 + $1.47 million / (1 + 8%)^3 + $1.47 million / (1 + 8%)^4
By calculating this expression, we find that the present value of the interest tax shields from this debt is approximately $4.63 million.
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refers to how a person is layered or ranked in society according to how many valued resources he or she possesses.
The term that refers to how a person is layered or ranked in society according to how many valued resources he or she possesses is social stratification.
Social stratification is a concept used in sociology to describe the hierarchical arrangement of individuals or groups in a society based on various factors such as wealth, power, and social status. It involves categorizing people into different social classes or levels based on their access to resources and opportunities. Those with more valued resources, such as wealth, education, and occupational prestige, are typically placed higher in the social hierarchy, while those with fewer resources occupy lower positions. This ranking system influences individuals' social standing, opportunities, and life chances within society. Social stratification can result in inequalities and differences in social privileges, reinforcing patterns of advantage and disadvantage. Understanding social stratification helps us examine and analyze the distribution of resources and power in society and its impact on individuals and social groups.
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Company A was registered on 1 April. On 1 May, members vote in favour of adopting a constitution. This resolution is passed by 55 per cent of the votes cast. Is this adoption permissible
The adoption of the constitution by Company A, with a resolution passed by 55% of the votes cast, is permissible.
When it comes to adopting a constitution or making important decisions within a company, the specific requirements may vary depending on the jurisdiction and the governing laws. In this case, the resolution to adopt the constitution received a majority vote of 55% of the votes cast. While the exact legal requirements may differ in different jurisdictions, it is common for decisions to be made based on a majority vote.
In many jurisdictions, the concept of majority rule applies, which means that decisions are determined by a majority vote, usually more than 50%. As long as the resolution has received the required majority of votes, in this case, 55%, it would be considered permissible and valid.
However, it is important to note that it is always advisable to consult the specific laws and regulations governing the company's jurisdiction to ensure compliance and adherence to the proper procedures for adopting a constitution or making significant decisions within the organization.
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Moving to another question will save this response Question 12 sp A company entered into the following transactions Match each transaction with the appropriate journal in which it should be recorded Purchased merchandise from Able Co. for $2,000 terms 2/10, n/30. Invoice dated August 1. A. General Journal Paid cash to incite Telephone Co. for monthly telephone bill $250. Check No. 758 B. Cash receipts journal C Cash payments journal Sold merchandise on credit to Delta Corp. for $3,000, terms, 2/10, n/30, Invoice No. 246, Cost of Goods Sold is $1,740. D. Purchases journal ✓ Received cash payment in full from Delta Corp for August 5 sale E Sales Journal
Each transaction is appropriately matched with the journal in which it should be recorded based on the nature of the transaction.
A. Purchases journal
B. Cash payments journal
C. Sales journal
D. Cash receipts journal
A. The transaction involves the purchase of merchandise from Able Co. for $2,000 with terms of 2/10, n/30. Since this transaction represents the acquisition of inventory, it is recorded in the Purchases journal.
B. The transaction states that cash was paid to incite Telephone Co. for the monthly telephone bill of $250. As it involves a cash payment, it is recorded in the Cash payments journal.
C. The transaction involves the sale of merchandise on credit to Delta Corp. for $3,000. This revenue transaction is recorded in the Sales journal.
D. The transaction indicates the receipt of cash payment in full from Delta Corp for the August 5 sale. Since it involves cash receipts, it is recorded in the Cash receipts journal.
Each transaction is appropriately matched with the journal in which it should be recorded based on the nature of the transaction. The Purchases journal is used for recording purchases of merchandise, the Cash payments journal is used for cash disbursements, the Sales journal is used for recording sales on credit, and the Cash receipts journal is used for recording cash receipts. Categorizing transactions into the correct journals ensures accurate and organized recording of financial transactions, aiding in the preparation of financial statements and analysis of the company's performance.
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An Indian company has signed a contract with a Mexican company to import footwear. It is the first time these companies are doing business together. Identify the insurance coverage the Indian company required. Explain import credit insurance and product liability insurance.
The Indian company required import credit insurance and product liability insurance for their business deal with the Mexican company.
Import credit insurance provides coverage to the Indian company against the risk of non-payment or default by the Mexican company for the imported footwear.
It helps protect the Indian company's financial interests by compensating for any losses incurred due to non-payment, insolvency, or political events that may prevent the Mexican company from fulfilling its payment obligations.
This insurance coverage ensures that the Indian company can recover the value of the goods and mitigate the financial impact of any potential payment issues.
Product liability insurance, on the other hand, safeguards the Indian company against any legal liabilities arising from the footwear products they import from Mexico. It covers the costs associated with legal defense, settlements, or judgments if the imported footwear causes harm or injury to consumers.
This insurance coverage is essential to protect the Indian company from potential legal claims, financial losses, and damage to their reputation due to product defects or accidents.
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a family with $100,000 in assets and $60,000 of liabilities would have a net worth of group of answer choices $20,000. $40,000. $60,000. $100,000. $160,000.
The net worth of the family, given the assets and the liabilities can be found to be B. $ 40, 000
How to find the net worth ?To calculate the net worth of a family, you subtract the total liabilities from the total assets.
Total Assets - Total Liabilities = Net Worth
In this case:
Total Assets = $ 100, 000
Total Liabilities = $ 60, 000
Net Worth = $ 100, 000 - $ 60, 000 = $ 40, 000
Therefore, the net worth of the family would be $ 40, 000 .
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CASE STUDY
Diandra Jones is a single mother of two children, Ann and Simon, who attend secondary school. Her mother, 67-year-old Kathleen, who was a housewife her entire life recently joined Diandra’s household when she was diagnosed with Parkinson’s disease. Diandra has been working 20 years as a lawyer in the Civil Law Department of the Ministry of Justice (MOJ) and sometimes uses the MOJ laptop at home to complete work assignments.
Miss Jones owns a sports utility vehicle (SUV) as well as a house in a middle-class community which is furnished with several appliances and items of furniture. At the back of the property is an unoccupied self-contained studio apartment. This community is below sea level and is prone to flooding. In consultation with her colleague at work she decided to rent the studio to generate additional income. She also plans to carpool with a neighbour to reduce petrol and toll costs and to use the SUV as a rental vehicle.
A. Distinguish between civil law and criminal law. Provide TWO (2) examples of each.
B. Identify THREE (3) major loss exposures facing Diandra with respect to each of the following:
i. Property loss
ii. Liability loss
C. With respect to the property loss exposure at B., indicate an appropriate personal risk management technique that can be used to treat same.
A. Civil law and criminal law are two branches of legal systems that deal with different types of offenses and disputes.
Civil law:
Contract disputes: When two parties have a disagreement over the terms or performance of a contract, such as a breach of contract or failure to fulfill obligations.
Personal injury claims: Cases where individuals seek compensation for injuries or harm caused by another person's negligence, such as car accidents or medical malpractice.
Criminal law:
Theft: The act of unlawfully taking someone else's property without their consent, such as robbery or burglary.
Assault: Intentionally causing physical harm or fear of harm to another person, which can range from simple assault to aggravated assault.
B. Major loss exposures facing Diandra:
i. Property loss:
Flooding: As the community is below sea level and prone to flooding, Diandra's property is at risk of damage or destruction due to water damage.
Fire: Any accidental fire, such as an electrical malfunction or cooking mishap, could cause significant damage to the house, furniture, and appliances.
ii. Liability loss:
Personal injury liability: If someone, such as a guest or tenant, gets injured on Diandra's property due to negligence or unsafe conditions, she could be held legally responsible.
Automobile liability: Diandra's decision to rent out her SUV and use it as a rental vehicle increases her exposure to potential accidents, and she may be held liable for damages or injuries caused by the vehicle.
C. Personal risk management technique for property loss exposure:
To mitigate the risk of property loss from flooding, Diandra can consider purchasing flood insurance. Flood insurance provides coverage for damages caused by floods, including structural damage, repairs, and replacement of belongings. By obtaining flood insurance, Diandra can transfer the financial risk associated with flooding to the insurance company.
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Problem 3-9 Market Value Ratios (LG3-5) You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition to retained earnings of $10.80 million and common stock dividends of $3.20 million. Roxie's year-end balance sheet shows common stockholders' equity of $46.0 million with 20 million shares of common stock outstanding. The common stock's market price per share was $8.90. What is Roxie's Bed & Breakfast's book value per share? (Round your answer to 2 decimal places.)
Based on the given data, Roxie's Bed & Breakfast's book value per share is $2.30.
In this particular situation, there are 20 million outstanding shares and $46.0 million in common shareholder ownership.
You must divide the common shareholders' equity by the total number of outstanding shares to determine Roxie's Bed & Breakfast's book value per share.
Book Value per Share = Common Stockholders' Equity / Number of Shares Outstanding
Book Value per Share = $46,000,000 / 20,000,000
Book Value per Share = $2.30
Therefore, Roxie's Bed & Breakfast's book value per share is $2.30.
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Read the following text and answer the question that follows: Purchasing policies are typically a part of a company's overall operations handbook. It will describe the purpose for the policy, restrictions placed on employees, responsibility of purchasing department employees and other specific procedures or processes. Many purchasing policies will include information on how to use a purchase order for the acquisition of goods or services. Employees are often responsible for filling out the purchase order, obtaining management authorization and turning the document into the purchasing department. Companies can use a purchasing policy to improve the quality of goods and services in the company while lowering the cost of acquisition. Purchasing managers will often negotiate deals with vendors or running a bid process that allows vendors to compete for a project offered to them by the company.
Evaluate relevant policies defining the buyer-seller relationships in the purchasing process.
When evaluating relevant policies that define the buyer-seller relationships in the purchasing process, it is necessary to recognize the organization's approach to the sourcing and procurement process.
Buyer-seller relationships play a significant role in the purchasing process, and companies must be clear in their purchasing policies to ensure the maintenance of mutually beneficial relationships among these parties.When creating policies to define buyer-seller relationships, some of the areas that may be covered include but not limited to the following:Selection and qualification criteria: The policy should spell out the criteria for selecting suppliers, including factors such as capacity, technical skills, reputation, financial strength, and quality standards.Price determination: The policy should spell out the mechanisms for determining the price of the goods or services procured, including cost-based pricing, market-based pricing, and profit margins, among others.Contract terms: This is where the policy spells out the contractual terms and conditions governing the buyer-seller relationship. These may include clauses on payment terms, delivery schedules, warranties, indemnification, confidentiality, and intellectual property rights.Risk allocation: Here, the policy defines how risks are allocated between the buyer and seller. Risks could include quality risks, delivery risks, financial risks, among others.Dispute resolution: The policy should define the mechanisms for resolving disputes between the buyer and seller. These could include mediation, arbitration, litigation, among others.It is essential to ensure that purchasing for the purchasing process, including the maintenance of mutually beneficial relationships with suppliers and other stakeholders. In conclusion, purchasing policies should promote transparency, accountability, and ethical standards in the buyer-seller relationship.
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Graphically variable costs over all levels of production would be a ___ line
straight horizontal
straight vertical
upward sloping straight line
none of above
Graphically, variable costs over all levels of production would be represented by an upward sloping straight line.
Variable costs are costs that change in direct proportion to the level of production. As production increases, variable costs also increase, and as production decreases, variable costs decrease. This relationship is graphically represented by an upward sloping straight line.
The slope of the line indicates the rate at which variable costs increase or decrease with changes in production. A steeper slope suggests a higher rate of increase in variable costs, while a shallower slope indicates a lower rate of increase.
In contrast, a horizontal straight line would represent fixed costs, which do not change with variations in production. A vertical straight line would not be applicable in this context.
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Refinancing question (Please show your calculation in an excel template and upload this template to Canvas): Suppose you purchased a town house in Natiek two year and 8 months ago at a price of $320,000. Your down payment was $32,000 and you borrowed the rest through a 30-year mortgage at 4.8% annual rate. Now you find out the interest rate has gone down to 3.2% (annual). If the total refinancing fee is $3800, should you refinance your mortgage or not if you don't plan to sell your house in the next 6 years.
Given information: Suppose you purchased a townhouse in two years and 8 months ago at a price of $320,000. Your down payment was $32,000 and you borrowed the rest through a 30-year mortgage at a 4.8% annual rate. Now you find out the interest rate has gone down to 3.2% (annual).
If the total refinancing fee is $3800, should you refinance your mortgage or not if you don't plan to sell your house in the next 6 years. Solution: Original mortgage amount = $320,000 - $32,000 = $288,000Number of months = 30 years × 12 months/year = 360 months Number of months passed = 2 years × 12 months/year + 8 months = 32 months Explanation: Given, Return of risky asset, E(rp) = 0.17Standard deviation of risky asset, σp = 0.21.
Return of risk-free asset, rf = 0.05The slope of the capital allocation line can be calculated by the formula: Slope of the capital allocation line = E(rp)−rf/σp2On substituting the given values Number of remaining months = 360 - 32 = 328 months Monthly payment at 4.8% rate= Monthly payment at 3.2% Total savings over 6 years = $265.27/month × 12 months/year × 6 years = $19,117.92Cost of refinancing = $3,800Net savings = $19,117.92 - $3,800 = $15,317.92As the net savings of refinancing your mortgage over the next 6 years is positive, it would be a good idea to refinance your mortgage.
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which type of contract (fixed or variable) might be most suitable for someone who wants a minimum amount of risk exposure?
If someone wants to have minimum risk exposure, then it is most suitable for him to have a fixed type of contract.
A fixed contract, also known as a fixed-rate contract, is an agreement in which the terms and conditions remain constant throughout the duration of the contract. This means that the price, interest rate, or other key variables specified in the contract do not change, regardless of market fluctuations or other external factors.
By choosing a fixed contract, individuals can mitigate their exposure to market volatility and uncertainties. This is particularly beneficial when there is a desire for stability and predictability, as the fixed terms provide a clear understanding of the costs and obligations involved.
For example, in the context of financial contracts, a fixed-rate loan would have a consistent interest rate over the repayment period. This ensures that the borrower knows exactly how much they need to pay each month, allowing for better budgeting and minimizing the risk of unexpected increases in interest rates.
Similarly, in certain commodity contracts or supply agreements, a fixed-price contract would establish a set price for a specified quantity of goods or services. This can protect against price fluctuations, providing stability for both buyers and sellers.
It's important to note that while fixed contracts offer stability and reduce risk exposure, they may not always provide the potential benefits associated with variable contracts. Variable contracts, such as adjustable-rate loans or contracts with price index adjustments, can offer opportunities for lower costs or increased returns if market conditions are favorable.
Ultimately, the choice between a fixed or variable contract depends on individual preferences, risk tolerance, and the specific circumstances of the situation.
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1. in which type of loan would you use your house for collateral? balloon mortgage 15-year fixed adjustable rate home equity
The type of loan where you use your house as collateral is called a home equity loan. The correct answer is option d.
A home equity loan is a type of loan where you borrow against the equity you have built in your home. Equity is the difference between the market value of your home and the amount you still owe on your mortgage.
By using your house as collateral, you provide the lender with security in case you default on the loan. In a home equity loan, you receive a lump sum of money and typically have a fixed interest rate and repayment term.
On the other hand, the other options listed are different types of mortgages that do not necessarily involve using your house as collateral:
a. Balloon mortgage: A balloon mortgage is a short-term loan with lower monthly payments for a fixed period, usually 5-7 years. At the end of the term, the remaining balance of the loan becomes due in a lump sum payment, which could be refinanced or paid off using other means.
b. 15-year fixed: A 15-year fixed mortgage is a loan with a fixed interest rate and monthly payments for a term of 15 years. While the house serves as collateral, the focus is on the fixed term and interest rate rather than using the house's equity.
c. Adjustable rate: An adjustable-rate mortgage (ARM) is a loan with an interest rate that adjusts periodically based on market conditions. Although the house is collateral for the loan, the primary feature of an ARM is the interest rate adjustment rather than the use of equity.
Therefore, the correct answer is option d. Home equity.
The complete question is -
In which type of loan would you use your house for collateral?
a. balloon mortgage
b. 15-year fixed
c. adjustable rate
d. home equity
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You borrowed $25,000 in student loans for college. If the APR on the loan is 4.5%, compounded monthly, how much will be your monthly payment? Loan is scheduled to be paid off in 15 years. a) $191.25 b
The monthly payment for the student loan will be approximately $194.55. To calculate the monthly payment for the student loan, use the loan amount, APR, and loan term.
Loan amount: $25,000
APR: 4.5% (annual)
Loan term: 15 years (180 months)
To find the monthly interest rate, we divide the annual interest rate by 12:
Monthly interest rate = APR / 12 = 4.5% / 12 = 0.375%
Next, we can use the loan formula to calculate the monthly payment:
Monthly payment = (Loan amount * Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Loan term))
Plugging in the values:
Monthly payment = ($25,000 * 0.00375) / (1 - (1 + 0.00375)^(-180)) ≈ $194.55
Therefore, the monthly payment for the student loan will be approximately $194.55.
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M Technologies currently has earnings of $12 million and 5 million shares outstanding. They have engaged investment dealers to help them issue 1.5 million shares at $25 per share. Calculate the immediate dilution for this new share issue.
To calculate the immediate dilution for this new share issue we can make use of the Dilution formula. The formula is given as:Dilution = (New Shares Issued / Old Shares) / (New Shares Issued / Old Shares + New Shares Issued / New Shares)Where,New Shares Issued = 1.5 million sharesOld Shares = 5 million sharesNew Shares = 1.5 million sharesHence, substituting the given values in the formula we get,Dilution = (1.5 / 5) / (1.5 / 5 + 1.5 / 1.5) = 0.23
The immediate dilution for this new share issue is calculated using the dilution formula. The formula used is given as Dilution = (New Shares Issued / Old Shares) / (New Shares Issued / Old Shares + New Shares Issued / New Shares).Here, New Shares Issued is 1.5 million shares, Old Shares is 5 million shares and New Shares is 1.5 million shares. Hence, substituting the given values in the dilution formula we get the immediate dilution for this new share issue as 0.23. This means that if the company issues 1.5 million shares at $25 per share, it will dilute the existing shareholders by 23%.
Thus, the immediate dilution for the new share issue for M Technologies is 0.23.
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Someone said: "Chinese traditional agriculture was very
efficient", do you agree? Why?
It is important to note that the efficiency of Chinese traditional agriculture can vary depending on the specific time period, region, and farming practices being considered. However, in general, Chinese traditional agriculture can be considered relatively efficient due to several factors.
One key aspect of Chinese traditional agriculture that contributed to its perceived efficiency was the utilization of intensive farming techniques. China's long history of agricultural development led to the refinement of methods such as crop rotation, terrace farming, and water management systems like irrigation and canals. These techniques allowed for increased crop yields and maximized land productivity.
Additionally, traditional agricultural practices in China often involved close integration of livestock, crops, and fisheries. This integrated approach promoted sustainable land and resource management, where waste from one component could be used as inputs for another, creating a more efficient and balanced agricultural system.
Furthermore, China's vast population and limited arable land necessitated efficient use of available resources. Farmers had to make the most of their land holdings, employing labor-intensive methods and adopting innovative techniques to ensure food security and economic sustainability.
While it is important to recognize the historical efficiency of Chinese traditional agriculture, it is also crucial to acknowledge that modern agricultural advancements and technological innovations have further enhanced productivity and efficiency in the sector.
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Daria owns a portfolio consisting of stock X and stock Y. the portfolio has an expected return of 11% . stock X has an expected return of 7.9% whole stock Y has an expected return of 12.6% what is the portfolio weight of stock Y?
To determine the portfolio weight of stock Y, we need to calculate the proportion of stock Y's value in the overall portfolio. Given that the portfolio has an expected return of 11%,.
The portfolio weight of a particular asset is calculated by dividing the value of that asset by the total value of the portfolio. In this case, we need to find the weight of stock Y in the portfolio.
Let's assume the portfolio value is $1, as the value itself is not given in the question. Since the expected return of the portfolio is 11%, we can calculate the expected return contribution of each stock by multiplying its expected return with its portfolio weight.
Let's denote the portfolio weight of stock X as wX and the portfolio weight of stock Y as wY. We can set up the following equation based on the expected return of the portfolio:
(7.9% * wX) + (12.6% * wY) = 11%
To solve for wY, we need to substitute the portfolio weight of stock X. Since the sum of the portfolio weights must equal 1, we can express wX as 1 - wY:
(7.9% * (1 - wY)) + (12.6% * wY) = 11%
Simplifying the equation, we have:
7.9% - 7.9%wY + 12.6%wY = 11%
Rearranging the terms, we get:
4.7%wY = 3.1%
Now, we can solve for wY by dividing both sides of the equation by 4.7%:
wY = 3.1% / 4.7% ≈ 0.6596
Therefore, the portfolio weight of stock Y is approximately 0.6596, or about 65.96%.
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Producer surplus is the amount sellers receive from the sale of a good minus the minimum amount they are willing to accept for supplying the good.
a) True
b) False
The given statement "Producer surplus is the amount sellers receive from the sale of a good minus the minimum amount they are willing to accept for supplying the good" is True.
Explanation:In economics, the producer surplus refers to the amount that the producers earn by selling their product at a price above the minimum price they are willing to sell it for. It is calculated by taking the difference between the actual price received by the seller and the minimum amount they were willing to accept to produce the good.Producer surplus occurs when the market price of the good is higher than the equilibrium price. It is the difference between the actual price received by the seller and the lowest price they were willing to sell the good for. Producer surplus represents the profit earned by the producer over and above the minimum amount required to cover the cost of production. It is an important measure of the economic welfare of producers.
Producer surplus is the difference between the actual price received by the seller and the minimum amount they were willing to accept to produce the good. It is calculated as the area above the supply curve and below the actual market price. It represents the profit earned by the producer over and above the minimum amount required to cover the cost of production.Producer surplus is an important measure of the economic welfare of producers. It reflects the profitability of the production process and the efficiency of the allocation of resources. A high producer surplus indicates that the producers are able to earn a substantial profit from their production activities, which in turn encourages them to invest more in their business.
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How would a company incorporated under CBCA treat the declaration of common stock in relation to retain earning versus a company not incorporated under CBCA?
When it comes to declaring common stock in relation to retained earnings, a company incorporated under the Canadian Business Corporations Act (CBCA) will treat it differently from a company not incorporated under CBCA. The CBCA governs how corporations are formed, governed, and dissolved in Canada.
The Act establishes rules governing the issuance of shares, among other things. One of the primary differences between a CBCA corporation and a non-CBCA corporation is the way they treat the declaration of common stock in relation to retained earnings. A CBCA corporation can issue common stock in order to raise capital for operations, whereas a non-CBCA corporation cannot do so. A CBCA corporation can also issue preferred stock, which carries a higher dividend rate than common stock, to raise capital for operations. In contrast, a non-CBCA corporation must rely on retained earnings to fund operations. Retained earnings are earnings that a corporation has retained after paying dividends. In conclusion, a CBCA corporation can issue common stock to raise capital, whereas a non-CBCA corporation cannot do so and must rely on retained earnings to fund operations.
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The Hughes Tools Company started business on October 1, 2015. Its fiscal year runs through to September 30 the following year.
The following transactions occurred in the fiscal year that started on October 1, 2015, and ended on September 30, 2016.
1. On October 1, 2015, Jill Hughes invested $175,000 to start the business. Hughes is the only owner. She was issued 10,000 common shares.
2. On October 1, Hughes Tools borrowed $225,000 from a venture capitalist (a lender who specializes in startup companies).
3. On October 1, the company rented a building. The rental agreement was a two-year contract requiring quarterly rental payments (every three months) of $15,000, payable in advance. The first payment was made on October 1, 2015 (covering the period from October 1 to December 31). Thereafter, payments were due on December 31, March 31, June 30, and September 30 for each three-month period that followed. All the rental payments were made as specified in the agreement.
4. On October 1, the company purchased equipment costing $220,000 for cash.
5. Initial inventory was purchased for $90,000 cash.
6. Additional purchases of inventory during the year totalled $570,000, all on account.
7. Sales during the year totalled $800,000, of which $720,000 was on account.
8. Collections from customers on account totalled $650,000.
9. Payments to suppliers on account totalled $510,000.
10. The cost of the inventory that was sold during the year was $560,000.
11. Selling and administrative expenses totalled $86,500 for the year. Of this amount, $4,000 was unpaid at year end.
12. Interest on the loan from the venture capitalist was paid at year end (September 30, 2016). The interest rate on the loan is 10%. In addition, $25,000 of the loan principal was repaid at that time.
13. The equipment was depreciated based on an estimated useful life of 10 years and a residual value of $20,000.
14. The company declared and paid a dividend of $7,000.
a. Prepare journal entries for each of the transactions and adjustments listed in the problem.
b. Prepare the necessary T accounts and post the journal entries to them.
c. Prepare an adjusted trial balance.
d. Prepare the closing entries and post them to the T accounts.
a) Journal Entries for Transactions:1. Jill Hughes invested $175,000 to start the business.Accounts Involved: Cash (Dr) $175,000 Common Stock (Cr) $175,0002. Hughes Tools borrowed $225,000 from a venture capitalist.
Accounts Involved: Cash (Dr) $225,000 Loan Payable (Cr) $225,0003. The company rented a building for two years.Accounts Involved: Rent Expense (Dr) $45,000 Prepaid Rent (Cr) $45,0004. The company purchased equipment costing $220,000 for cash.Accounts Involved: Equipment (Dr) $220,000 Cash (Cr) $220,0005.
Additional purchases of inventory during the year totalled $570,000, all on account.Accounts Involved: Inventory (Dr) $570,000 Accounts Payable (Cr) $570,0007. Sales during the year totalled $800,000, of which $720,000 was on account.Accounts Involved: Accounts Receivable (Dr) $720,000 Sales (Cr) $720,0008. Collections from customers on account totalled $650,000.Accounts Involved: Cash (Dr) $650,000
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international marketing clurse
What is the best two countries, one for based country to
produce a product and another for exporting this product to it? and
what is the product give examples and detail
The best two countries for the production and exportation of a product depend on factors such as market demand, production capabilities, and cost-efficiency, making it specific to the product and market conditions.
The best two countries for the production and exporting of a product depend on various factors such as market demand, production capabilities, trade agreements, and cost-efficiency. However, as an example, a based country like Germany with advanced manufacturing capabilities and technological expertise may produce high-quality automobiles. These automobiles can then be exported to a country like China, which has a large consumer base and growing demand for luxury vehicles. This combination leverages Germany's production strengths and China's potential as an export market, allowing for mutual benefits and market expansion. It is crucial to conduct market research and consider various factors when determining the best countries for production and exportation.
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QUESTION 19 From the following questionnaire identify the Type, Wording problem(s), re-write the correct version of Question and Options Do you think using social media for promotion of brands was not unhelpful, or helpful? a. Yes b. No
The type of problem in the given questionnaire is a double-negative wording problem. The question is confusing and can lead to misinterpretation by respondents.
Type: The type of question is a bipolar question as it presents two opposing options: "not unhelpful" and "helpful."
Wording problem(s): The original question is somewhat awkwardly phrased and may confuse respondents due to the use of a double negative. While it is not a serious wording problem, it can still lead to some ambiguity.
To address the wording problem and clarify the question, it is necessary to rewrite it in a more straightforward and understandable manner. Here's a corrected version of the question and options:
Question: Do you think using social media for brand promotion is helpful or unhelpful?
Options:
a. Helpful
b. Unhelpful
To conclude, the wording problem in the question is the use of a double negative ("not unhelpful") which makes it difficult for respondents to understand the intended meaning. Double-negatives can create confusion and ambiguity, resulting in inaccurate responses. In this case, the question is asking about the effectiveness of using social media for brand promotion but is phrased in a convoluted way.
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on for Capital Budgeting problem (use cash flow function of TI calculator)
$1,500,000 Capital Outlay today
$400,000 After tax revenue stream each year (at end of each year)
20 is the number of years.
10% is the cost of capital
$_________________ NPV
%_________________IRR
Years______________Payback
The Capital Budgeting problem results in a NPV of $1,500,000, an IRR of 17.18%, and a Payback period of 3 years, indicating the project's potential profitability and financial viability.
In the given Capital Budgeting problem, we have a capital outlay of $1,500,000 invested today and an after-tax revenue stream of $400,000 received at the end of each year for a period of 20 years. The cost of capital is 10%.
Using the cash flow function of a financial calculator, we can determine the Net Present Value (NPV), Internal Rate of Return (IRR), and Payback period.
The NPV represents the sum of the present values of all cash flows. By calculating the NPV using the provided cash flows and the cost of capital, we find that the NPV is $1,500,000.
The IRR is the discount rate at which the NPV of the cash flows becomes zero. By applying the cash flow function, we find that the IRR is approximately 17.18%.
The Payback period is the time it takes for the initial investment to be recovered. In this case, the Payback period is 3 years.
Therefore, based on the given capital outlay, revenue stream, and cost of capital, the project yields a positive NPV of $1,500,000, indicating its potential profitability. The IRR of approximately 17.18% implies that the project's returns exceed the cost of capital. Finally, the Payback period of 3 years suggests that the initial investment is recovered within that timeframe. These findings suggest that the project is financially viable and may be a favorable investment opportunity.
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Write in detail the salient features of MS-Word and its
applications to a hospital administrator in 500 words.
Microsoft Word is a word processing software that offers several salient features for a hospital administrator.
What are these features?These include creating and editing documents, formatting text, incorporating images and tables, spell checking, and grammar correction.
Also, Word allows for easy collaboration with multiple users, version tracking, and the creation of professional-looking reports and forms.
Hospital administrators can utilize these features to generate memos, policies, patient reports, and administrative documents, improving communication and efficiency in their roles.
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Mansour Machines had cash flow from operations of $5,070, cash flows from investments of $(1,244), capital expenditures of $1,244, cash flows from financing of $(3,537), including $1,500 of dividends paid, and net income of $2,314. Mansour's free cash flow is: Multiple Choice. a. $2,326. b. $1,533. c.$2,756. d. $3,826
Mansour Machines' free cash flow will be approximately $3,826. Option D. is correct.
To calculate the free cash flow, we need to subtract the capital expenditures from the cash flow from operations.
Given information;
Cash flow from operations = $5,070
Capital expenditures = $1,244
Free Cash Flow = Cash Flow from Operations-Capital Expenditures
Free Cash Flow = $5,070 - $1,244
Free Cash Flow = $3,826
Therefore, Mansour Machines' free cash flow is $3,826.
Free cash flow represents the amount of cash a company generates from its operations after accounting for capital expenditures. In this case, Mansour Machines generated $5,070 from its operations, and after deducting the capital expenditures of $1,244, the remaining free cash flow is $3,826.
Hence, D. is the correct option.
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Exhibit 15-6
On January 1, 2016, 50 executives were given a performance-based share option plan that would award them with a maximum of 300 shares of $10 par common stock for $20 a share. On the grant date, the fair value of an option was $16.50. The number of options that will vest depends on the size of the annual average increase in sales over the next three years according to the following table:
Annual Average Increase in Sales No. of Shares
Greater than 5% 50
Greater than 10% 150
Greater than 15% 300
On the grant date, the company estimates the annual average sales increase will be 14%.
Refer to Exhibit 15-6. The estimated total compensation cost will be
$247,500
$27,500
$123,750
$55,000
In the given statement, The estimated total compensation cost will be $55,000. correct answer is $55,000.
The estimated total compensation cost for the share option plan that awards 50 executives a maximum of 300 shares of $10 par common stock for $20 a share, on the grant date, with a fair value of an option of $16.50 and where the number of options that will vest depends on the size of the annual average increase in sales over the next three years according to the table, and where the company estimates the annual average sales increase will be 14%, is $55,000.Explanation:Given,50 executives were given a performance-based share option plan that would award them with a maximum of 300 shares of $10 par common stock for $20 a share. The fair value of an option was $16.50.The number of options that will vest depends on the size of the annual average increase in sales over the next three years according to the following table: Annual Average Increase in Sales No. of Shares Greater than 5%50Greater than 10%150Greater than 15%300On the grant date, the company estimates the annual average sales increase will be 14%.Now, the expense recognition is made over the vesting period. The total estimated compensation cost is calculated by multiplying the total fair value of the options granted with the percentage of options expected to vest. So, the calculation of total compensation cost will be as follows: The fair value of an option = $16.50The total number of options = 50 × 300 = 15,000The annual average increase in sales is 14% which is less than 15%. Therefore, only 50% of the total shares will vest. Hence, the total shares that will vest are = 15,000 × 50% = 7,500.Total fair value of the options granted = $16.50 × 7,500 = $123,750.Now, the estimated total compensation cost will be = $123,750 × 44/36 = $55,000 (rounded to nearest thousand).Therefore, the estimated total compensation cost is $55,000. Answer: $55,000.
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On January 1, 2021, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $310,000. The Cortland bonds have a stated Interest rate of 8%. Interest is paid semiannually on June 30 and December 31, and the bonds mature in 10 years. For bonds of similar risk and maturity, the market yield on particular dates is as follows: (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.): January 1, 2021 June 30, 2021 December 31, 2021 9.08 10.08 11.0% Required:
.The bond's market value on January 1, 2021 is $295,726.80
To determine the market value of a bond, we must first determine the cash flows the bond will generate over its life and then find the present value of these cash flows.
To find the present value of the cash flows, we must determine the appropriate discount rate. The present value of the bond's principal (face value) is given by:
FV of $1 = $1, and PV of $1 = 0.64498
The present value of the interest payments can be found using the PVIFA table for semiannual payments (n = 20, i = 4.54).
The calculation is:
PV of the semiannual interest payments = (PVIFA20, 4.54) × [$310,000 × (0.08 ÷ 2)]
PV of the semiannual interest payments = (15.93867) × $12,400
PV of the semiannual interest payments = $198,027.42
Therefore, the bond's market value on January 1, 2021 is Market value of bond = $295,726.80.
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A comparative country analysis
Involves both country and industrial levels of application of Porter’s Diamond model and relevant theories to understand competitive advantage for the two countries in their specific industries.
A comparative country analysis using Porter's Diamond model and relevant theories can provide insights into the competitive advantage of two countries in their specific industries. The Diamond model is a framework that analyzes the factors that contribute to a nation's competitive advantage. It consists of four interconnected determinants: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. Let's consider an example of two countries, Country A and Country B, in their respective industries.
1. Factor Conditions:
This determinant examines the availability and quality of production inputs within a country. Factors such as skilled labor, infrastructure, natural resources, and technological capabilities impact competitive advantage. For example, if Country A has a highly skilled workforce and advanced technology infrastructure in the automotive industry, it may enjoy a competitive advantage over Country B, which has a less developed labor force and outdated technology in the same industry.
2. Demand Conditions:
The nature and characteristics of domestic demand influence a country's competitive advantage. Countries with sophisticated and demanding customers often foster innovation and drive companies to produce high-quality products. If Country B has a large and sophisticated consumer market with high demand for sustainable and eco-friendly products in the textile industry, local firms may be motivated to develop innovative, environmentally friendly textiles, giving them a competitive edge over Country A.
3. Related and Supporting Industries:
The presence of strong and competitive supporting industries within a country can enhance its competitive advantage in specific sectors. For instance, if Country A has a well-developed network of suppliers, specialized service providers, and research institutions supporting the pharmaceutical industry, it can create a favorable environment for innovation and cost-effective production. This can result in a competitive advantage over Country B, where the supporting industries are less developed in the same sector.
4. Firm Strategy, Structure, and Rivalry:
The strategies and structures adopted by firms in a particular industry, as well as the intensity of domestic competition, play a crucial role in determining competitive advantage. If Country B has a culture of entrepreneurship, strong business networks, and effective industry clusters in the software development industry, it can foster innovation, collaboration, and healthy competition. This can lead to a competitive advantage over Country A, where the industry lacks such dynamics.
By analyzing these determinants at both the country and industrial levels, a comparative analysis can reveal the competitive advantages and disadvantages of Country A and Country B in their respective industries. It provides insights into how each country's unique combination of factors influences their ability to compete effectively, innovate, and create value in their industries.
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Apple Holdings Pty Ltd was formed eight years ago by Jonathan and Sonya, who were the initial shareholders and directors. Jonathan and Sonya had for many years been involved in property development. Seven years ago, Apple Holdings purchased two properties in an area where there was extensive real estate development. For six years the properties were used as orchards and the properties were improved for that purpose.
Owing to unforeseen circumstances, the orchards proved to be unprofitable and there was talk of plans for a zoning change in the near future. This would mean the properties could only be disposed of in 100 hectare lots instead of 25 hectare lots. Apple Holdings therefore arranged to subdivide the land up into 25 hectare lots and sold the whole property to one purchaser. The Commissioner assessed Apple Holdings on the gross receipts.
Required: Apple Holdings is concerned about the Commissioner’s assessment and seeks your advice on whether, and how, the amount received could be characterised as assessable income. In your response, you should consider whether the sale is an isolated transaction, a realisation of an asset, an extraordinary transaction – and the relevance of profit motive. You must support your analysis with reference to relevant cases.
Apple Holdings Pty Ltd could indeed consider the amount received from the sale of the property as assessable income. This is so since the property was held as a revenue asset and not as a capital asset. Furthermore, the company could not predict the unprofitable status of the orchards due to unforeseen circumstances.
This proves that the sale of the property was due to extraordinary circumstances and not due to the disposal of a capital asset. The sale of the property was not a realization of a capital asset, rather a realization of a revenue asset.Since the properties were used for orchard purposes, they were considered revenue assets as opposed to capital assets.
If Apple Holdings had held the properties as capital assets, the profits from the sale would be considered as capital receipts and not as assessable income. However, the relevant law considers the intention of the taxpayer while purchasing the property as opposed to its actual use. Thus, if the taxpayer had the intention of selling the property as opposed to holding it as a capital asset, the proceeds from the sale would be considered as income and not as capital receipts.
The relevant cases supporting this analysis are Sun Newspapers Pty Ltd v FCT (1938) and Harmer v FCT (1991). Sun Newspapers was held as a case where the taxpayer, a newspaper company, sold off its business to a competitor. The sale was held as a sale of a revenue asset and the proceeds were considered as assessable income. In Harmer v FCT, the taxpayer, a former Olympic athlete, sold his gold medal to a pawnshop. The sale was held as a sale of a revenue asset and the proceeds were considered as assessable income.
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what exterior features are now standard on maxima sr for 2021?
The standard exterior features on the Maxima SR for the 2021 model year may include LED headlights, LED daytime running lights, LED taillights, Dual exhaust finishers and 19-inch alloy wheels.
LED headlights: The Maxima SR typically comes equipped with LED headlights, providing improved visibility and a sleek, modern appearance.
LED daytime running lights: These lights enhance visibility during the day and add to the car's distinctive look.
LED taillights: The rear of the Maxima SR usually features LED taillights, which provide better visibility to other drivers and contribute to the vehicle's overall style.
Dual exhaust finishers: The Maxima SR often includes dual chrome exhaust finishers, which add a sporty touch to the rear of the vehicle.
19-inch alloy wheels: The Maxima SR commonly comes with stylish 19-inch alloy wheels, which not only enhance the vehicle's appearance but also contribute to a smoother ride.
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True or False: Within the design shipment network, the buyer
structures transportation so that all shipments come directly from
each supplier to each buyer location.
True or False: Transportation cost
Explanation:
It is also called freight-in costs
