Answer:
answer d is correct is correct
Explain why the consideration of opportunity costs may be very relevant to a firm. How can opportunity costs affect a business decision?
Answer:
Importance : Opportunity cost is lost Contribution
Effect : Opportunity cost increases the variable costs of the decision that has been chosen
Explanation:
Opportunity Cost is a lost contribution. Contribution is calculated as Sales less Variable Costs.
Considering opportunity costs is very relevant to a firm because it constitutes part of the money lost that cold have been earned when another alternative course of action is chosen over another. The opportunity cost would have been the revenue for the disregarded option.
So opportunity cost increases the variable costs of the decision that has been chosen.
Question Help A company purchased mineral assets holding approximately 240,000 tons of ore for $960,000. The estimated residual value of the assets is zero. During the first year, 40,000 tons are extracted and sold. What is the amount of depletion for the first year?
Answer: $160,000
Explanation:
First calculate the Depletion rate per ton which is;
= ( Cost - residual value) / Capacity in tons
= (960,000 - 0) / 240,000
= $4 per ton
In first year, 40,000 tons were used. Amount of depletion is therefore;
= 40,000 * 4
= $160,000
The amount of depletion for the first year did by the company in purchasing the mineral assets were as below :
And will do Cost less the residual value and divide by capacity :
= 960000 - 0 / 240000
= $4 per ton.
In the first year the company acquired 40,000 extract .
= 40,000 x 4
= $160,000 amount of depletion happens in the first year .
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Compare the flow (in the most recent year) and stock of FDI from your country in China versus the flow and stock of FDI from China in your country. Which is bigger?
Answer:
Foreign Direct Investment refers to investments that citizens or businesses of a country make in another country by either investing or acquiring businesses in the other country.
In 2019, FDI from China to the USA was estimated to be $37.7 billion.
In the same year, FDI from the USA to China was estimated to be $116.2 billion.
FDI from the US to China is therefore bigger than FDI from China to the US.
If the European subsidiary of a U.S. firm has net exposed assets of 750,000 Euros, and the euro drops in value from $1.30/euro to $1.20/ Euro the U.S. firm has a translation:__________
a. gain of $75,000
b. loss of $75,000
c. gain of $65,000
d. loss of 546,923
If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will:____________
a) increase
b) decline
c) not be affected
d) none of the above
Answer:
b) decline
Explanation:
If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will decline. This happens because people lost trust and hastily withdrawn their money deposited with the bank.
Joe just completed his engineering degree and started to work for an engineering firm. Joe wants to retire early after 30 years working. He plans to invest $5,000 at the end of every year for a 30-year career. If Joe needs $3,954,750 in savings at retirement, what interest rate must the investment earn?A. 10%B. 12.16%C. 18%D. 20%
Answer:
Joe will need to save at an interest rate of:
C. 18%
Explanation:
a) Data and Calculations:
Working life = 30 years
Annual investment = $5,000
Future expected savings = $3,954,750
Joe will need an annual return rate of 18.000% to reach the future value of $3,954,750.00.
FV (Future Value) $3,954,752.25
PV (Present Value) $27,584.01
N (Number of Periods) 30.000
I/Y (Interest Rate) 18.000%
PMT (Periodic Payment) $5,000.00
Starting Investment $0.00
Total Principal $150,000.00
Total Interest $3,804,752.25
4. Which of the following is a liability?
a. Machinery
b. Creditors for goods
C. Motor Vehicles
d. Cash at Bank
Answer:
Maybe C.
Explanation:
Answer:
Answer is B
Explanation:
Products bought using a loan creates lenders in the books of record. Various leasers are viewed as current liability.
How you will gather and formulate your data
Answer:
1.Identify issues and/or opportunities for collecting data. ...2.Select issue(s) and/or opportunity(ies) and set goals.3.Plan an approach and methods. ...4.Collect data. ...5.Analyze and interpret data. ...6.Act on results.
Loki, Inc. and Thor, Inc. have entered into a stock-swap merger agreement whereby Loki will pay a 39% premium over Thor's pre-merger price. If Thor's pre-merger price per share was $42 and Loki's was $51, what exchange ratio will Loki need to offer?
Answer: 1.15
Explanation:
Premium = 39%
Thor's share price = $42
The compensation to shareholders will be:
= $42 + ($42 × 0.39)
= $42 + $16.38
= $58.38
Loki's share price = $51
We then calculate the exchange ratio which will be:
= $58.38 / $51
= 1.15
Loki will need to offer an exchange rate of 1.15.
Amazon Corporation has preferred stock outstanding that pays a $12.80 annual dividend. It price is $158. What is the required rate of return (yield) on the preferred stock?
Answer:
8.10%
Explanation:
The required rate of return (yield) on the preferred stock = Dividend / Price
= $12.80 / $158 = 0.0810126582278481 = 8.10%
The business judgment rule protects corporate officers and directors when: _________
a. they have a financial self-interest in the disputed transaction.
b. they are unaware of some of the material aspects of a decision.
c. they set up a committee to establish a decision-making procedure that serves the best interests of the corporation.
d. the liability stemmed from a breach of duty.
The business judgment rule protects corporate officers and directors when option c. they set up a committee to establish a decision-making procedure.
What is the business judgment rule:It is considered as the legal principle that protected the board of directors from breach of the liability of fiduciary duty since the directors should be acted in good faith of the shareholders and assure the logical and well-informed decision-making process
So based on this, we can say that the option c is correct.
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1. You have a portfolio that is invested 21% in Stock A, 34% in Stock B, and 45% in Stock C. The betas of the stocks are .66, 1.21, and 1.50, respectively. What is the beta of the portfolio? a. 1.17.b. 1.12.c. 1.38.d. 1.00.e. 1.23.2. The risk-free rate is 3.7% and the market expected return is 11.6%. What is the expected return of a stock that has a beta of 1.22?
Answer:
1.
Portfolio Beta = 1.225 rounded off to 1.23
Option e is the correct answer.
2.
r = 0.13338 or 13.338% rounded off to 13.34%
Explanation:
1.
The portfolio beta is a function of the weighted average of the individual stocks' betas that form up the portfolio. To calculate the beta of a portfolio, we use the following formula,
Portfolio Beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
w is the weight of each stock
Portfolio Beta = 0.21 * 0.66 + 0.34 * 1.21 + 0.45 * 1.5
Portfolio Beta = 1.225 rounded off to 1.23
2.
Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free rate
rM is the market return
r = 0.037 + 1.22 * (0.116 - 0.037)
r = 0.13338 or 13.338% rounded off to 13.34%
A stock has the following returns over three consecutive years: 85%, 58%, and 128%. What is the arithmetic average?
Answer:
The stock's arithmetic average is:
90.33%.
Explanation:
a) Data and Calculations:
Returns over three consecutive years:
Year 1 = 85%
Year 2 = 58%
Year 3 = 128%
Total returns = 271%
Average = Total returns divided by number of years
= 271/3
= 90.333
=90.33%
b) The arithmetic average is the total returns divided by the number of years involved. This implies that we find the average or the mean by adding up some pieces of data together and dividing by the number of the pieces of data.
Match the word to the correct definition. 1. alignment the horizontal placement of text on the page 2. shortcut a special combination of keys that tells the computer to perform a command 3. columns using your mouse to drag across text; this causes the text and background to change color and become selected 4. highlight vertical sections of text separated by blank space
Answer:
1432 is the order
Explanation:
hope this helps
Answer: 1432 is the order.
Hope this helps you! :^}
Outstanding debt of Home Depot trades with a yield to maturity of 5%. The tax rate of Home Depot is 40%. What is the effective cost of debt of Home Depot
Answer:
3.00%
Explanation:
The effective cost of debt of Home Depot = 5%*(1 - 0.40)
The effective cost of debt of Home Depot = 0.05*0.60
The effective cost of debt of Home Depot = 0.03
The effective cost of debt of Home Depot = 3.00%
Novak Corporation amended its pension plan on January 1, 2020, and granted $152,280 of prior service costs to its employees. The employees are expected to provide 1,880 service years in the future, with 330 service years in 2020. Compute prior service cost amortization for 2020. Prior service cost amortization for 2020
Answer:
26762.74
Explanation:
Prior service cost amortization for 2020 can be calculated by first calculating the average time until the employee's retirement. After calculating the average time until retirement we will divide the service cost at that time
Workings
average time until retirment = 1880/330
average time until retirment = 5.69 years
prior service cost amortization for 2020 = $152,280/5.69
prior service cost amortization for 2020 = $26762.74
The _____________ define(s) what the system does.
A. mission of the system
B. RA
C. operational characteristics
D. previous findings
2- What may occur if you do NOT include the scope of the RA when defining it?
A. Attacks
B. exploited threats
C. Losses
D. missed deadlines
3- __________ define(s) how the system operates in your environment.
A. The mission of the system
B. Operational characteristics
C. RAs
D. Previous findings
ABC company had 8,000 in accounts receivable on Dec. 31, 2019. However, the company estimated that 2,000 of them would become bad debt. The company recorded the 2,000 as bad debt. What is the impact on the financial statement?
Answer:
Net income is reduced by 2,000 and the net value of receivables on balance sheet reduced by 2,000
Explanation:
Since it is given that there is $8,000 in account receivable out of which $2,000 would be estimated and recorded as a bad debt
So here the bad debt expense is recorded that means the expenses are increased that ultimately reduced the net income also at the same time the amount of receivable would also decreased by $2,000
Therefore the same is to be considered
6. Explain why a movement from a point inside a production possibilities frontier to the production possibilities frontier can be described as a free lunch and a movement along a production possibilities frontier is described as a tradeoff
Answer: Moving down along the PPF will produce more goods but less quality
Explanation:
On the production possibilities frontier, every choice along involves a trade-off, moving down along the PPF, production of capital goods is more but this will result in less quality for to consumers goods, when analysed with the opportunity cost, it is realized that the value of customer good o gone
have to produce less quantity of consumer goods. The opportunity cost of a capital good is the value of consumer good forgone.
When a company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society's long-run interests, it is most likely practicing ________ marketing.A. valueB. societalC. sense-of-missionD. consumer-orientedE. customer value
Answer:
Option B: Societal
Explanation:
Societal Marketing was coined from the marketing concept. Marketers and consumers are collecting stocks of what is good for themselves, their family, their country, and the planet.
It involves means by which marketing looks for ways amd means to provide products and services to help consumers reach their goals and Target while also making profitable decisions for their companies.
It is useful to consumers' long-run best interest and help promoting good corporate citizenship.
Discuss how structural dimensions of the firm, including formalization, standardization, and centralization, can affect the firm’s propensity to innovate and its effectiveness at innovation
Explanation:
A company's organizational structure can be defined as the organization of the company's activities so that it operates more efficiently and effectively and achieves its objectives and goals.
Therefore, the structural dimensions of a company including formalization, standardization and centralization will directly influence the innovation of an organization in relation to several variables such as its internal environment, processes, products and services, as there are organizational structures that are more focused on innovation than others, such as the horizontal structure in relation to the vertical, since the vertical structure is the most rigid and with a higher hierarchy, while in the horizontal structure there is greater autonomy of employees and greater participation in the decision-making process, which is a more flexible environment open to innovation.
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situations: (You will have 3 graphs)
The government borrows money to fund a war.
Private investors become more optimistic about the economy.
The government raises personal income taxes (do not consider the change in consumer saving).
In the text box provided, enter the time and date you sent your graphs to your instructor. Please specify if you e-mailed or faxed the graph. Make sure your name and the assignment number are on your paper and that each graph is clearly marked with an a, b, or c. (30 points)
Answer:
1. a) War increases demand for loanable funds, demand curve shifts RIGHT. (Increase in real interest rate)
b) Private investors are optimistic about the economy (i.e. investment opportunities). Demand for loanable funds increases, demand curve shifts RIGHT. (Increase in real interest rate)
c) Tax increase means a decrease in the supply about loanable funds. Supply curve shifts LEFT. (Increase in real interest rate)
2. would most likely increase the supply of loanable funds. If Americans are saving more, then they are spending less money and investing more of it. Remember--saving does not mean "not using it". It means investing it instead of consuming.
3. The interest rate will fall. There is a surplus of loanable funds and the real interest rate will reflect this surplus by falling.
4. decrease in the demand for loanable funds. When output decreases, the return on investment for new projects decreases and investors are less in need of money to fund their ventures.
5. decrease the supply for loanable funds. If they are consuming more, they are saving less.
6. Increase / Decrease. When interest rates increase, growth is reduced because funding economic ventures is now more costly. Sometimes the fed will increase interest rates when it anticipates inflation to increase in order to mitigate economic growth.
Hope this was helpful!
Explanation:
When operating in a constrained environment, which products should be produced? a. products with the highest contribution margin per unit b. products with the highest contribution margin per unit of the constrained process c. products with the highest selling price d. products with the lowest allocated joint cost
Answer: B. products with the highest contribution margin per unit of the constrained process.
Explanation:
When operating in a constrained environment, the products that should be produced are the products with the highest contribution margin per unit of the constrained process.
This is essential for the company to maximize its total contribution margin. This in turn will help the company in realizing revenue and also maximizing profit.
On October 1, Sam's Painting Service borrows $164000 from National Bank on a 3-month, $164000, 4% note. What entry must Sam's Painting Service make on December 31 before financial statements are prepared?A. Interest Expense 500 Interest Payable 500B. Interest Payable 500 Interest Expense 500C. Interest Expense 2,000 Interest Payable 2,000D. Interest Expense 500 Notes Payable 500
Answer:
{Debit] Interest expense $1,640
[Credit] Interest payable $1,640
Explanation:
Annual 12 month interest = $164,000 * 4% = $6,560
No of months from 1 Oct to 31 Dec = 3 months
Interest expense to be recorded as ‘payable’ for 3 months = $6,560 * 3 months/12 months = $6,560 * 0.25 = $1,640
Entry will include:
{Debit] Interest expense $1,640
[Credit] Interest payable $1,640
According to Gardner, intelligence can be measure by a person having
a. the ability to create or find solutions to problems by gathering new knowledge
b. the ability to create a valued product or service
C. Skills that allow them to solve problems in life
d. all of the above
Answer: D. All of the above.
Explanation:
Answer:
its d
Explanation:
hope this helps
A production system in which there is little or no delay time and idle-in process and finished goods inventory is called a__________.
Answer:
Just in time inventory system
Explanation:
Just in time inventory system is on that ensures that the amount of a product needed is available to the consumer and no more is stockpiled.
For this inventory style to be successful the business will need to forecast accurately the demand of customers.
Just in time inventory system is aimed at increasing efficiency and reducing cost such as storage cost.
There is little or no delay time and idle-in process and finished goods inventory
Answer:
Just-In-Time Production System.
Explanation:
Just-In-Time Production System stands in direct contrast with Just-In-Case (JIC) production methodology where goods are manufactured and held in stock with the intention to prevent a situation where there is no inventory for that product. One of the key reasons why some companies may practice the traditional Just-In-Case system is to prevent the loss of key suppliers and or key buyers for that product. Other factors that lead owners of manufacturing concerns to practice JIC is may be due to the existing inefficiencies of the system such as poor quality control, bad roads, and other uncertainties in the system which can contribute to a break in supply.
In the absence of these factors, Just-In-Time (JIT) production system becomes very preferred. The JIT (also known as the Toyota Production System was designed to remove waste of various categories, thus leading to lower production costs.
According to the philosophy of Toyota, the various types of wastage which can occur are:
MovementStaff UnderutilizationExcessive InventoryProcessing Unwanted goodsTransporting unwanted goodsExcessive productionTime taken to execute the process andDefective productionIt is interesting to note that the TPS was refined by Kiichiro Toyoda, based on an idea gotten from an American supermarket.
Cheers!
In the __________________ manufacturing environment, order acceptance occurs before the production lead time. Fill in the blanks.
Answer:
Make to order (MTO)
Explanation:
A Make to order (MTO) can be defined as a manufacturing technique which typically involves the production of goods only when an order has been placed by a customer. Thus, no product would be manufactured under this production technique or approach until a confirm order is received.
In the Make to order (MTO) manufacturing environment, order acceptance occurs before the production lead time.
Based on the information just given, what will be Robert’s forecast of PAMC’s growth rate? 7.75% 0.02% 4.50% 3.00%
Answer:
the growth rate is 3%
Explanation:
The computation of the PAMC growth rate is shown below:
Price of the stock = Current year dividend ÷ (required rate of return - growth rate)
$16.25 = $0.78 ÷ (0.078 - growth rate)
0.078 - growth rate = 0.048
So, the growth rate is 3%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
A company purchased a new delivery van at a cost of $58,000 on July 1. The delivery van is estimated to have a useful life of 4 years and a salvage value of $4,600. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?a. $13,350.
b. $6,260.
c. $6,675.
d. $7,250.
e. $5,750.
Answer:
a. $13,350
Explanation:
Using straight-line method of depreciation the depreciable value of an assets is expensed over the useful life of the asset equally each year.
Use following formula to calculate the depreciable value
Depreciable value = Cost of asset - Salvage value
Placing values in the formula
Depreciable value = $58,000 - $4,600
Depreciable value = $53,400
Now use following formula to calculate the depreciation value of each year
Depreciation expense = Depreciable value of the asset / Useful life of the asset
Placing values in the formula
Depreciation expense = $53,400 / 4 years
Depreciation expense = $13,350
Hiring one more worker for a station ___ design capacity and ___ utilization. (Hint: Relate to the problem set.)A. may increase or decrease, always increasesB. always increases, may increase or decreaseC. always increases, always increasesD. may increase or decrease, may increase or decrease
Answer:
B. always increases, may increase or decrease
Explanation:
Each worker being added is going to complete some job or assemble some units hence the design capacity after addition of worker will always be greater than the design capacity before addition. But utilization = actual output * 100 / theoretical design capacity.
Hence, if actual output after addition of worker increases more in proportion than that of proportional increase in number of worker, then the utilization of workstation will increase else it is likely to decrease. If both proportion are equal then the utilization is likely to remain same.