Castle Black Camping is twice as risky as the average stock. The market should earn 11% and the risk free rate is 2%. What is a fair return for CBC? (20%)

Answers

Answer 1

Answer:

Explanation:

Risk free rate=2%

Beta = 2

Rm =11%

Risk premium Rm = rm - rf

Fair return= risk free rate + beta *(market return- risk free rate)

= rf+b*(rm-rf)=rf + b * (Risk Premium)

=0.02 + 2 * (0.11 - 0.02)

=0.2

= 20%

A fair return for CBC is 20%.


Related Questions

a. Find the FV of $1,000 invested to earn 10% annually 5 years from now. Answer this question by using a math formula and also by using the Excel function wizard,
Inputs: PV = 1000
I/YR = 10%
N = 5
Formula: FV = PV(1+I)^N =
Wizard (FV): $1,610.51

Answers

Answer:

$1,610.51 (in both calculation)

Explanation:

1. Using Math formula,

We know, Future value, FV = PV × [tex](1 + i)^{n}[/tex]

Given,

Present Value, PV = $1,000

Interest, i = 10% = 0.10

Number of periods, n = 5 years

Putting the values in the formula, we can get,

Future value, FV = PV × [tex](1 + i)^{n}[/tex]

FV = $1,000 × [tex](1 + 0.10)^{5}[/tex]

or, FV = $1,000 × 1.61051

Therefore, FV = $1,610.51

2. Using excel formula,

See the image below:

We have to use present value as negative so that the result should be used as positive.

Answer:=$1,610.51

Explanation:  

PV=$1,000

I=10%

N=5

All of the following are questions an opportunity assessment plan might answer except
What business skills do i have?

Answers

Answer:

A. How much capital do I need?

Explanation:

The question is incomplete with regards to the options.please refer below the complete question:

All of the following are questions an opportunity assessment plan might answer except:

A. How much capital do I need?

B. What market need does it fill?

C. What business skills do I have?

D. Can a patent be obtained?

Review how organizations interact with their external environment (as open systems and complex adaptive systems).
How effective was Wells Fargo as an open system and as a complex adaptive system before the scandal became public?

Answers

Answer:

For an organization to survive, it must exchange information with it's external environment. An organization has no control over it's external environment, hence, it as to use the information of it's external environment for planning.

Explanation:

Wells Fargo, was one of the most valued bank, that operated a successful open system, before the scandal became public. However, it could not survive it's complex external environment, as the scandal had damaged the reputation of the bank, which largely affected the bank's market share.

Final answer:

Wells Fargo effectively interacted with its external environment as an open system by adapting to economic variables and customer demands. However, the scandal revealed inadequacies in its function as a complex adaptive system, marked by a failure to internalize and adapt to ethical standards and regulatory compliance.

Explanation:

Organizations such as Wells Fargo interact with their external environment through open system and complex adaptive system frameworks. Open systems partake in mutual exchange with external environments and are characterized by adaptability and response to external changes. As a complex adaptive system, an organization demonstrates the capacity to evolve its internal structure and behaviors in reaction to the external environment, thereby showcasing resilience and flexibility in the face of systemic pressures and changes. Prior to the public scandal, Wells Fargo was effective as an open system in its ability to engage with and adapt to external economic variables and customer demands. However, its effectiveness as a complex adaptive system was ultimately compromised by internal dysfunctions, leading to the scandal's emergence. These dysfunctions demonstrate a failure in the system's ability to adequately adapt and evolve its internal processes and cultural norms to maintain ethical standards and regulatory compliance, which is critical for the long-term resilience and survival of a complex adaptive system.

A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 100,505 19,600 Labor (hours) 19,550 14,550 Raw materials (currency) $ 20,500 19,550 (FC) Capital equipment (hours) 58,600 4,550 *Foreign Currency unit a.

a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.)
b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.)
c. Calculate raw material productivity figures (units/$ where $1

Answers

Answer:

Part A:

Labur Productivity:

For US=5.14,         LDC=1.35

Capital Productivity:

For US=1.72          LDC=4.31

Part B:(Multi factor productivity)

For US=1.29         LDC=1.03

Part C: (Raw material productivity)

For US=4.90        LDC=10.02

Explanation:

Part A:

Labur Productivity:

For US:

[tex]Partial Labor Productivity=\frac{Sale(units)}{Labour(hours} \\Partial Labor Productivity=\frac{100505}{19550} \\Partial Labor Productivity=5.14[/tex]

For LDC:

[tex]Partial Labor Productivity=\frac{Sale(units)}{Labour(hours} \\Partial Labor Productivity=\frac{19600}{14550} \\Partial Labor Productivity=1.35[/tex]

Capital Productivity:

For US:

[tex]Capital Productivity=\frac{Sale(units)}{Capital Equipment} \\Capital Productivity=\frac{100505}{58600}\\Capital Productivity=1.72[/tex]

For LDC:

[tex]Capital Productivity=\frac{Sale(units)}{Capital Equipment} \\Capital Productivity=\frac{19600}{4550}\\Capital Productivity=4.31[/tex]

Part B:

For US:

[tex]Multifactor Productivity=\frac{Sales(units)}{labour(Hours) + Capital Equipment(hours)}\\ Multifactor Productivity=\frac{100505}{19550+58600} \\Multifactor Productivity=1.29[/tex]

For LDC:

[tex]Multifactor Productivity=\frac{Sales(units)}{labour(Hours) + Capital Equipment(hours)}\\ Multifactor Productivity=\frac{19600}{14550+4550} \\Multifactor Productivity=1.03[/tex]

Part C:

For US:

[tex]Raw material productivity=\frac{Sales(Hour)}{Raw Material} \\ Raw material productivity=\frac{100505}{20500} \\ Raw material productivity=4.90[/tex]

ForLDC:

Converting Raw material FC into $ (1$=10FC)

Raw Material =19550/10=$1955

[tex]Raw material productivity=\frac{Sales(Hour)}{Raw Material} \\ Raw material productivity=\frac{19600}{1955} \\ Raw material productivity=10.02[/tex]

Which costs are correlated with the firm’s sales and include the costs of labor, raw materials, and sales commissions?
a. fixed
b. flotation
c. variable
d. direct

Answers

Answer:

The correct answer is letter "B": direct.

Explanation:

Direct Costs for finished goods refer to the items and services directly used in production. Other costs such as rent and insurance for the production site are indirect costs. Examples of direct costs are direct labor and materials, manufacturing supplies or even commissions out of sales.

When identifying your interests as you prepare to conduct your job search, what questions should you ask yourself? List all that apply

Answers

Answer and explanation:

Job research should be taken seriously if individuals want to match their expectations with what a company may offer. Otherwise, disappointments will arise leading them to start a job and quitting after a short period. In the long run, that scenario will not help professionals to make a path career. So, common questions that must be asked while identifying a personal interest in job research are:

Will I be able to find peers and coworkers that will help me grow professionally and personally? Will I be able to apply the knowledge acquired at school? Will I be allowed to express my personal opinion if there is something I do not like about the company? Will I be able to follow a path career in that company? Will the salary the offer be enough according to my expenses and expectations?

Falconer Company had net (after-tax) income last year of $14,107,956 and total capital employed of $131,869,720. Falconer's actual cost of capital was 12%.
Required:
1. Calculate the EVA for Falconer Company. Enter negative values as negative numbers, if required. Round your answer to the nearest dollar. $
2. Conceptual Connection: Is Falconer creating or destroying wealth?

Answers

Answer:

1. -$1,716,410.40

2. destroying wealth

Explanation:

The formula to compute EVA is shown below:

1. = Net operating income or earnings after taxes - (total capital employed × actual cost of capital)

= $14,107,956 - ($131,869,720 × 12%)

= $14,107,956 - $15,824,366.40

= -$1,716,410.40

2. As we see that the amount comes in negative that represent the wealth is destroyed

Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. a. What is the opportunity cost of producing a car in Canada? What is the opportunity cost of producing a bushel of wheat in Canada? Explain the relationship between the opportunity costs of the two goods. b. Draw Canada’s production possibilities frontier. If Canada chooses to consume 10 million cars, how much wheat can it consume without trade? Label this point on the production possibilities frontier. c. Now suppose that the United States offers to buy 10 million cars from Canada in exchange for 20 bushels of wheat per car. If Canada continues to consume 10 million cars, how much wheat does this deal allow Canada to consume? Label this point on your diagram. Should Canada accept the deal?

Answers

Explanation:

A. Since a Canadian employee can make two cars or 30 cars of wheat each year, a car's opportunity costs 15 cars of wheat. In the same way, the cost of a wheat bushel is one quarter of a vehicle. The cost of the opportunity is the mutual costs.

B. When all 10 million workers are producing two cars each, a total of 20 million cars is produced, which means that the production opportunities are intercepted vertically. For every 10 million employees produce 30 bushels of wheat each, the horizontal interception between output possibilities is a total of 300 million bushels. Although the trade is still the same between cars and wheat, development incentives are a straight line.

C. When Canada continues to import 10 million vehicles in Canada by the US, It will have to manufacture a minimum of 20 million cars. Thus Canada produces the production opportunities at the vertical dispatch. However Canada will be able to consume 200 million bushels of wheat and 10 million cars if its vehicles are 20 bushels of wheat per car. The offer should be accepted by Canada.

Warner Clothing is considering the Introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics:

Sales price $18 per unit
Variable costs 2 per unit
Fixed costs 52,000 per month

Required:

a. What number must Warner sell per month to break even?

b. What number must Warner sell per month to make an operating profit of $40,000?

Answers

Answer:

(a) 3,250 units

(b) 5,750 units

Explanation:

(a) BEP(units):

= fixed cost ÷ contribution margin per unit

= $52,000  ÷ ($18 - $2)

= 3,250 units

Therefore, the 3,250 units must Warner sell per month to break even.

(b) BEP(units):  

= (fixed cost + target profit) ÷ contribution margin per unit

= ($52,000 + $40,000) ÷ $16

= 5,750 units

Therefore, the units must Warner sell per month to make an operating profit of $40,000 is 5,750 units.

Final answer:

Warner Clothing needs to sell 3,250 units per month to break even and 5,750 units per month to generate an operating profit of $40,000. These numbers were calculated using principles of break-even analysis in business.

Explanation:

In the context of business, break-even analysis is a tool to determine how many units of a product must be sold to cover the costs of production. To calculate the break-even point, we use the formula: Fixed Costs ÷ (Selling Price per Unit - Variable Cost per Unit). Given the values: Fixed Costs = $52,000, selling price per unit = $18, variable costs = $2, the calculation would be as follows: $52,000 ÷ ($18 - $2) = 3,250 units. Therefore, Warner Clothing must sell 3,250 baseball hats per month to break even.

To calculate the number of units needed to make a certain profit, you use the formula: (Fixed Costs + Desired Profit) ÷ (Selling Price per Unit - Variable Cost per unit). Thus, for Warner to make an operating profit of $40,000, the calculation is: ($52,000 + $40,000) ÷ ($18 - $2) = 5,750 units. In summary, Warner Clothing needs to sell 5,750 baseball hats per month to make a profit of $40,000.

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Several line items and account titles are listed below. For each, indicate in which of the following financial statement(s) we would likely find the item or account: income statement (IS), balance sheet (BS), statement of stockholders' equity (SE), or statement of cash flows (SCF). (Select all that apply.)
a. Cash asset
b. Expenses
c. Noncash assets
d. Contributed capital
e. Cash outflow for capital expenditures
f. R etained earnings i. N et income
g. Cash inflow for stock issued
h. Cash outflow for dividends

Answers

Answer:

a. Cash Asset (Balance sheet, Statement of cash flow)

b. Expenses (Income Statement)

c. Noncash Assets (Balance sheet)

d. Contributed capital (Balance Sheet, Statement of stockholder's equity)

e. Cash outflow for capital expenditures (Statement of cash flow)

f. Retained earnings (Balance Sheet, Statement of stockholder's equity)

g. Cash inflow for stock issued (Statement of cash flow, Statement of stockholder's equity)

h. Cash outflow for dividends (Statement of cash flow, Statement of stockholder's equity)

i. Net income (Income statement, Statement of stockholder's equity, Statement of cash flow)

Explanation:

Balance sheet: This provides a statement of liabilities, assets, the business capital at any point in time. Its shows the difference between income and expenditure over a period of time.

Statement of Cash flows: This statement breaks down financial analysis into investing, operating and financing activities.

Statement of Stockholders' Equity: A finance document that is issued by a company as a part of the balance sheet. Also shows any increase or decrease in shareholder's equity for an accounting period.

Income Statement: This is a major financial statement that clearly shows how healthy an organization is performing over an accounting period.

Depending on the violation’s severity, repeat or continued violations of organization-wide policies might be grounds for:

A. refusing to pay earned wages.
B. denying overtime assignments.
C. termination of employment.
D. limiting an employee's Internet access.

Answers

Answer:

C. termination of employment.

Explanation:

When someone repeatedly violates an organization policies, or has a severe violation, their contract is terminated.

Let's look at some National Football League(NFL) examples.

In case of repeated violations, you have Antonio Brown on the Raiders. He was released(fired) with no pay.

In case of a severe violation, you have the Patriots releasing(firing) Aaron Hernandez when he was arrested for the murder of Odin Lloyd.

In a daily job, if you arrive repeatedly late, or assault other employee, you are also going to be fired.

So the correct answer is:

C. termination of employment.

Pompeii, Inc., has sales of $53,500, costs of $24,400, depreciation expense of $2,600, and interest expense of $2,350. If the tax rate is 25 percent, what is the operating cash flow, or OCF?

Answers

Final answer:

The operating cash flow for Pompeii, Inc. can be calculated by first determining earnings before tax, calculating the tax payment, and then using the formula OCF = (Sales - Costs) + Depreciation - Taxes. This results in an OCF of $25,662.50.

Explanation:

The question involves calculating the operating cash flow (OCF) for Pompeii, Inc. To determine OCF, we apply the following formula:

OCF = (Sales - Costs) + Depreciation - Taxes

First, we need to calculate the company's earnings before tax and the tax payment:

  Earnings before tax (EBT) = Sales - Costs - Depreciation - Interest expense   Earnings before tax (EBT) = $53,500 - $24,400 - $2,600 - $2,350   Earnings before tax (EBT) = $24,150   Tax payment = EBT × Tax rate   Tax payment = $24,150 × 25%   Tax payment = $6,037.50

Now, we can calculate the operating cash flow (OCF):

  OCF = (Sales - Costs) + Depreciation - Taxes   OCF = ($53,500 - $24,400) + $2,600 - $6,037.50   OCF = $25,662.50

Therefore, the operating cash flow for Pompeii, Inc. is $25,662.50.

Selected data from a February payroll register for Coronado Company are presented below. Some amounts are intentionally omitted. Gross earnings: State income taxes $(3) Regular $9,000 Union dues 190 Overtime (1) Total deductions (4) Total (2) Net pay $7,517 DeductionsAccount debited: FICA taxes $ 765 Salaries and wages expense (5) Federal income taxes 1,128 FICA taxes are 7.65%. State income taxes are 4% of gross earnings.

Answers

Answer:

1. Overtime= $1,000

2. Gross Pay= $10,000

3. State Income Taxes = $400

4. Total Deductions= $2,483

5/ Salaries and wages expenses = $10,000 (Gross Pay)

Explanation:

The question says to find the following:

1. Overtime

2. Total

3. State Income Taxes

4. Total Deductions

5. Salaries and Wages Expense

1. Overtime

Overtime is derived after calculating the total Gross Pay (2nd question)

Total Gross Pay= Regular + Overtime

$10,000= $9,000 + Overtime

Therefore, Overtime = $10,000-$9,000

Overtime= $1,000

2. Total Gross Pay (this should be treated before the 1st which is overtime)

= Gross Pay =

= calculated as FICA tax expense /the percentage of FICA taxes

FICA tax expense = $765

% of FICA taxes = 7.65

Gross Pay= $765 / 7.65% (0.0765)

= $10,000

3. State Income Tax

The state Income Taxes is derived as follows

Gross Pay x the given percentage (4%)

State Income taxes = $10,000 x 0.04

State Income taxes = $400

4. Calculate the total deductions

Total Deductions are the sum of the following

FICA taxes + federal Income taxes + State Income taxes + Union dues

= $765+ $1,128+$400+$190

= $2,483

5. Salaries and Wages Expense

The answer to this is simply the derived total gross pay (regular + overtime) Calculated in step 2

Gross pay= salaries and wages expense= $10,000

Inventory records for Dunbar Incorporated revealed the following:Date Transaction Number of units Unit CostApr. 1 Beginning inventory 450 $2.19 Apr. 20 Purchase 410 2.69 Dunbar sold 590 units of inventory during the month. Ending inventory assuming LIFO would be (Do not round your intermediate calculations. Round your answer to the nearest dollar amount):a. $726.b. $591.c. $1,103.d. $986.

Answers

Answer:

Explanation:

1. Calculate ending inventory        Rate per unit       Total cost

                         number of units        ($)                          ($)

Beg bal (April1)  450                         2.19                       985.50

Add:purchases  

April 20             410                            2.69                      1102.90

-----------------------------------------------------------------------------

Total goods

av for sale         860                                                          2088.40

Less: Sales:

During April       590

--------------------------------

Ending inventory 270

2. Cost of ending inventory = 270*2.19=$591.3

Exercise 16 describes a regression model that uses a car’s engine displacement to estimate its fuel econ- omy. In this context, what does it mean to say that a certain car has a positive residual?

Answers

Answer:

From the information, observe that there is a relationship between the fuel economy and engine size.

The regression model is,

Mpg = 36.25 – 3.867 Engine size

The residual is the difference between the actual value and predicted value.

Residual = y - ŷ

Here, y is the actual value and ŷ is the predicted value.

The car gets positive residual, if the actual value is greater than the predicted value.

Therefore, in this context, a certain car has a positive residual means that the actual mileage of that particular car is greater than the predicted mileage.

Final answer:

A positive residual in a regression model measuring fuel economy based on engine displacement means the car's actual fuel economy is better than predicted. This can be confirmed by a residual plot showing data points above the zero line. Residuals need to be random, and patterns may indicate model issues.

Explanation:

If a regression model is predicting the fuel economy of a car based on its engine displacement, a positive residual indicates that the actual fuel economy of the car is better than what the model predicted. In more technical terms, the residual is the difference between the observed value, which is the actual fuel economy, and the predicted value, given by the regression equation (ŷ = bo + b₁x).

The presence of a positive residual suggests that the car is more fuel-efficient than its engine displacement would suggest according to the model. This can be visualized in a residual plot, where a positive residual is represented by a data point above the horizontal line at zero, which denotes no deviation from the predicted value.

When analyzing a residual plot, it is important to ensure that there is no pattern indicating systematic errors. Residuals should appear randomly distributed around the zero line, with no clear trends or patterns. If a trend is observed, this may indicate an issue with the model's assumptions such as non-linearity or heteroscedasticity.

The following is the adjusted trial balance of Wilson Trucking Company.
Account Title Debit Credit
Cash $ 5,500
Accounts receivable 16,500
Office supplies 2,000
Trucks 196,000
Accumulated depreciation—Trucks $40,376
Land 75,000
Accounts payable 9,500
Interest payable 3,000
Long-term notes payable 52,000
K. Wilson, Capital 193,270
K. Wilson, Withdrawals 19,000
Trucking fees earned 115,500
Depreciation expense—Trucks 26,043
Salaries expense 54,170
Office supplies expense 9,500
Repairs expense—Trucks 9,933
Totals $ 413,646 $ 413,646
The K. Wilson, Capital account balance is $193,270 at December 31, 2016.
Required:
(1) Prepare the income statement for the year ended December 31, 2017.
(2) Prepare the statement of owner’s equity for the year ended December 31, 2017.

Answers

Answer:

PART 1: Wilson Trucking Company reported Net Income of $15,854  for the year ended December 31, 2017.

PART 2: As per the statement of changes in equity, K. Wilson Capital Account Balance as at December 31, 2017 is $190,124

* Please note that figures in brackets represent negative values.

Explanation:

PART 1    

                                           Wilson Trucking Company

                     Income Statement for the year ended December 31, 2017

Revenue

Trucking Fees                                                         $115,500  

Less Expenses:  

Depreciation expense of Trucks                                  $(26,043)

Salaries expense                                                          $(54,170)

Office supplies expense                                          $(9,500)

Repairs expense -Trucks                                          $(9,933)

 

Net Income                                                                 $15,854  

 

PART 2  

                                        Wilson Trucking Company

     Statement of changes in Equity for the year ended December 31, 2017

K. Wilson Capital Account Balance as at December 31, 2016  $193,270  

Add: Net Income for the year                                                          $15,854  

Less: K. Wilson withdrawals during the year                                  $(19,000)

K. Wilson Capital Account Balance as at December 31, 2017  $190,124  

Final answer:

To prepare the income statement, subtract the total expenses from the revenue to calculate the net income. For the statement of owner’s equity, start with the beginning balance of capital, add the net income, and subtract withdrawals to find the ending balance of Capital.

Explanation:

To prepare the income statement first you need to calculate the net income which is the total revenue minus total expenses. In this case, trucking fees earned ($115,500) is the revenue. The total expenses are the sum of all expenses which include salaries expense ($54,170), office supplies expense ($9,500), repairs expense - trucks ($9,933), and depreciation expense - trucks ($26,043). When you subtract the total expenses from the revenue, you get the net income.

For the statement of owner’s equity, you start with the beginning balance of K. Wilson, Capital ($193,270), then add the net income and subtract withdrawals made by K. Wilson ($19,000) within the year to reach the ending balance of K. Wilson, Capital.

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A company purchased office equipment and office supplies on credit from Doug Equipment Company. What is the entry?

Answers

Answer:

                                                       $         $

Office Equipment                            5,000  

Office Supplies                           10,000  

Doug Equipment Company                    15,000  

                                                     15,000    15,000  

Explanation:

The entry for a company that purchased office equipment and office supplies on credit from Doug Equipment Company is:

Debit Office Equipment (or Office Supplies)

Credit Accounts Payable.

When a company purchases office equipment or supplies on credit, it acquires an asset and incurs a liability. The office equipment or office supplies account is debited to reflect the increase in assets. This entry records the cost of the equipment or supplies as an asset on the balance sheet, indicating that the company now owns these items.

Simultaneously, the accounts payable account is credited to record the liability incurred from purchasing the items on credit. This reflects the company's obligation to pay Doug Equipment Company in the future. The credit entry to accounts payable ensures that the liability is recognized and will be settled when payment is made. This accounting treatment maintains the balance in the company’s financial statements, accurately reflecting the acquisition of assets and the associated liability.

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:Total machine-hours 30,400Total fixed manufacturing overhead cost $425,600Variable manufacturing overhead per machine-hour $5Recently, Job T687 was completed with the following characteristics:Number of units in the job 10Total machine-hours 20Direct materials $590Direct labor cost $1,180The unit product cost for is closest to:a. $415b. $218c. $118d. $109

Answers

Answer:

$218

Explanation:

Should stockholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action increases a firm’s stock price from a current level of $20 to $25 in 6 months and then to $30 in 5 years, but another action keeps the stock at $20 for several years but then increases it to $40 in 5 years, which action would be better? Think of some specific corporate actions that have these general tendencies.

Answers

Answer:

Stockholder wealth growth should continuously be supposed of long term goal. It is in notice of shareholder or depositor that his prosperity continues to grow with smallest risk. Action which keeps stock at 20$ for numerous year and then increased to 40$ in year 5 is desirable as the wealth of the stockholder increases.

Sometime company capitalize in building dimensions so that it can yield more units of its product thus growing the sale. When the corporation is doing capex, stock price will remain stationary and as soon as its capex ends stock price will rise at fast pace.

The second course of action that keeps the stock at $20 for many years and then rises to $40 in the 5th year is better as the wealth of the stockholder maximizes at a steady rate.

What do you mean by wealth maximization?

Wealth Maximization is the concept of ​​increasing the value of a business in order to increase the number of shares held by shareholders.

The growth of shareholders' wealth should continue to be a long-term goal. It is up to the shareholder or investor to determine if his or her fortune will continue to grow at a very small risk.

Sometimes a company makes money by building size so that it can produce more units of its product and thus increase sales. When a company makes a capital expenditure the stock price will remain stagnant and as soon as the capital expenditure ends the stock price will rise sharply.

Thus, the second course of action is better as it slowly and steadily increases the value of stock price from $20 to $40 in 5 years.

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In terms of dollars, the marginal benefit of working five days a week instead of four days a week is A) the wages received for 4 days of work. B) the wages received for the fifth day of work. C) the wages received for 5 days of work. D) None of the above answers is correct.

Answers

Answer:

B) the wages received for the fifth day of work.

Explanation:

Marginal benefit is the increment in benefit generated by an increase by one unit of output. In this situation, the marginal benefit is given by difference in wage of working five days a week from the wage of working four days a week. Therefore, the marginal benefit is the wage received for the fifth day of work.

The answer is alternative B)

Cole Co. began constructing a building for its own use in January 2016. During 2016, Cole incurred interest of $50,000 on specific construction debt, and $20,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during 2016 was $40,000. What amount of interest should Cole capitalize? Multiple Choice $20,000 $40,000 $50,000 $70,000

Answers

Answer:

The correct answer is 'Option (b)  

Explanation:    

Cole co. should compare between actual interest incurred on all the debts and the calculated interest on weighted average accumulated expenditure and lower of these two should be capitalized.

Actual interest incurred =$50,000+20,000 = $70,000

Calculated interest = $40,000

Lower of these two to be capitalized for the building during 2011= $40,000

If textbooks and study guides are complements, then an increase in the price of textbooks will result in

Answers

Answer:

Fewer study guides being sold.

Explanation:

The textbook and the study guides are the material or the books which help the student in order to gain knowledge by going through or study the textbook as well as the guide.

The study guide and the textbooks are complements means that the study guide is the supplement the textbooks as the study guide has the solutions for the questions of the textbooks.

But when there is increase in the price of the textbooks, the demand for the study guides will be decrease as the textbooks will not be purchased by the students which result in fewer study guides being sold in the market.

If textbooks and study guides are complements, then an increase in the price of textbooks will result in B. A decrease in the demand for study guides.

When textbooks and study guides are complements, it means that they are typically used together or are consumed together in some way.

For example, students often purchase study guides to supplement their learning from textbooks.

When the price of textbooks increases, it becomes more expensive for students to purchase textbooks.

As a result, students may be less inclined to spend additional money on study guides, especially if they are already facing higher costs for textbooks. This leads to a decrease in the demand for study guides because students are less willing to purchase them at the higher price.

In economic terms, the increase in the price of textbooks leads to a decrease in the demand for study guides, as the two goods are complements and their consumption patterns are interrelated.

Full question

If textbooks and study guides are complements, then an increase in the price of textbooks will result in:

A. An increase in the demand for study guides.

B. A decrease in the demand for study guides.

C. No change in the demand for study guides.

D. An increase in the price of study guides.

The advantages of a data warehouse over a data mart include all of the following EXCEPT one. Select the one that is not an advantage.
Data Mart allows faster access of Data.
Data Mart is easy to use as it is specifically designed for the needs of its users. Thus a data mart can accelerate business processes.
Many a times enterprises create too many disparate and unrelated data marts without much benefit. It can become a big hurdle to maintain.

Answers

Answer:

Many a times enterprises create too many disparate and unrelated data marts without much benefit. It can become a big hurdle to maintain.

Explanation:

A data mart is an Information technology structure or pattern specific to data warehouse environments.

Data mart is an element of data warehouse. It is used to retrieve data related to client-facing activities and is usually designed specifically for the needs of its users.

Based on the options given, the disadvantage of data mart is that many a times enterprises create too many disparate and unrelated data marts without much benefit. It can become a big hurdle to maintain.

It should be noted that statement that doesn't belong to advantages of a data warehouse over a data mart is

Many a times enterprises create too many disparate and unrelated data marts without much benefit. It can become a big hurdle to maintain.

A data mart can be regarded as structure  which is been to data warehouse environments, and it act as avenue for retrieving client-facing data.

with data Mart there us usually  faster access of Data and easy use of it because it is specifically designed for the needs of its users.

Therefore,  one disadvantages of a data warehouse over a data mart is many a times enterprises create too many disparate and unrelated data marts without much benefit.

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_____ (rapid execution, response, and delivery of results) often separates the winners from the losers.

A. Service
B. Quality
C. Innovation
D. Speed
E. Competitiveness

Answers

Answer:

The correct answer is letter "D": Speed.

Explanation:

The speed at which companies perform their activities is vital and can take a big role in determining the profits or losses of the business. Firms must be one step ahead in their production process to make sure deadlines are met and to predict failures to solve the issues immediately minimizing the output damages.

Answer:

D. Speed

Explanation:

Procrastination destroys human personal life as well as business. It separates the serious-minded and hardworking from the slothful and lazy, it separates the successful from the failure and separates the winners from the losers

Martinez Manufacturing Inc. showed the following costs for last month:

Direct materials $7,000
Direct labor $3,000
Manufacturing overhead $2,000
Selling expense $8,000
Last month 4,000 units were produced and sold.

What is total product cost for last month?

Answers

Answer:

 $12,000  

Explanation:

The total product cost for artinez Manufacturing Inc. can be determined using the following formula:

Direct materials                                                             $7,000

Direct labor                                                                   $3,000

Manufacturing overhead                                             $2,000

Total product cost for last month                               $12,000                          

Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $10 million in invested capital, has $1.5 million of EBIT, and is in the 25% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 55% and pays 11% interest on its debt, whereas LL has a 30% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure. Calculate the return on invested capital (ROIC) for each firm.

Answers

Answer:

0.1125 or 11.25% for each firm

Explanation:

Given that,

Each has $10 million in invested capital,

$1.5 million of EBIT

25% federal-plus-state tax bracket

ROIC for LL:

= [EBIT × (1 - tax rate)] ÷ invested capital

= [1.5 × (1 - 25%)] ÷ 10

= 0.1125 or 11.25%

ROIC for HL

= [EBIT × (1 - tax rate)] ÷ invested capital

= [1.5 × (1 - 25%)] ÷ 10

= 0.1125 or 11.25%

Therefore, the return on invested capital (ROIC) for each firm is 11.25%

The balance in accounts receivable at the beginning of 2016 was $600. During 2016, $3,200 of credit sales were recorded. If the ending balance in accounts receivable was $500 and $200 in accounts receivable were written off during the year, the amount of cash collected from customers was

$2,700.

$3,120.

$3,320.

$3,400.

Answers

Answer:

$3,100

Explanation:

Step 1: Draw up the Accounts Receivable Account

Opening Balance  $600          Allowance for Doubtful debt   $200

Sales                       $3,200       Cash Collected                        $3,100

                                                   Closing Balance                       $500

                                $3,800                                                         $3,800    

To calculate the cash collected from customers

first, add the debit side of the accounts receivable which is a sum of the opening balance and sales= 3,800

Secondly, add the figures in the credit side including allowance for doubtful debt and closing balance= $700

Thirdly, Subtract the lesser side from the greater, $3,800 - $700 = $3,100

$3,100 was cash collected from the customers in 2016

Major Co. reported 2016 income of $315,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $63,000. All income is subject to a 40% tax rate. In the 2016 income statement, Major Co. would show the following line-item amounts for income tax expense and net income:

Answers

Answer: The income tax expense $100,800, net income $252,000

Explanation:

To calculate net income

Income from continuing operation before income tax - income before tax-loss on discontinued operation

= 315,000 - 63,000

= 252,000

To calculate line item amount for income tax expense ,we use the formula

Income tax expense = Taxable income × tax rate

Taxable income = $252,000 , Tax rate = 40% ( 40 ÷ 100) = 0.4

= 252,000 × 0.4

= $100,800

Page(s) 47-49 2.4. What is the trade-off between having more now and having more later? Fill in the blanks to complete the passage about trade-offs. It is characteristic of – goods that they are not used up in the short run. A society can choose to – some quality of life now—fewer consumer goods—in order to build up its stock of capital goods. This will lead to a –—and more consumer goods—later on.

Answers

Final answer:

The trade-off between having more now and having more later involves sacrificing current consumption to invest in capital goods, which can increase future production and consumption.

Explanation:

The trade-off between having more now and having more later is one central to economics, involving current consumption versus future wealth. It is characteristic of capital goods that they are not used up in the short run. A society can choose to sacrifice some quality of life now—fewer consumer goods—in order to build up its stock of capital goods. This will lead to an increase in production—and more consumer goods—later on. This is because capital goods, like machinery and factories, are used to produce consumer goods. By sacrificing immediate consumption and investing in these capital goods instead, a society can increase its future production capacity.

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The trade-off between immediate consumption and future benefits is a decision-making process where present luxuries are sacrificed to improve future living standards through investments in capital goods and human capital.

The trade-off between having more now and having more later involves decision-making where present consumption is sacrificed to enhance future production. It is characteristic of capital goods that they are not used up in the short run. A society can choose to forego some quality of life now—fewer consumer goods—in order to build up its stock of capital goods. This will lead to a higher standard of living—and more consumer goods—later on.

By investing in capital goods and education, which increases human capital, societies make a conscious choice to delay immediate gratification for a potentially more prosperous future. This concept highlights the importance of resource allocation between current consumption and future growth opportunities. For individuals, like college students, investing time and money in education can mean short-term sacrifices for the prospect of a higher income and thus greater consumption in the future.

What is the overall change in cash resulting from: $248 increase in inventories, $186 increase in accounts payable, $139 decrease in accounts receivable, $61 decrease in other current assets, $84 decrease in other current liabilities?

Answers

Answer:

An increase of $54

Explanation:

Any increase in current assets will decrease in cash. On the other hand, any decrease in current assets will increase cash balance.

Inversely, any increase in current liabilities will increase cash and any decrease in current liabilities will decrease cash balance of the period.

Increase in inventories ($248)

Increase in accounts payable $186

Decrease in accounts receivable $139

Decrease in other current asset $61

Decrease in other current liabilities ($84)

Total change $54 - an increase in cash

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