Answer:
d)Tier 2
Explanation:
from the question we are informed about jones Manufacturing sells a part to Lear Corporation.Lear puts this part into a radio,which Lear then sells to Ford.From Ford's point of view, in this case Jones Manufacturing is tier 2. Tier 2 capital can be regarded as second layer of capital which serve as a required reserves of a bankIt contains revaluation reserves as well as hybrid capital instruments
You are considering a project with an initial cost of $4,600. What is the payback period for this project if the cash inflows are $450, $970, $2,800, and $500 a year for Years 1 to 4, respectively?a. 1.03 years.
b. 2.36 years.
c. 2.89 years.
d. 3.76 years.
e. 3.81 years.
If we compare the betas of various investment opportunities, why do the assets that have higher betas also have higher average expected rates of return
Answer:
Because they are more riskier and have higher rates of return.
Explanation:
Magee Company's stock has a beta of 1.20, the risk-free rate is 4.50%, and the market risk premium is 5.00%. What is Magee's required return
Answer:
10.50%
Explanation:
Calculation for Magee's required return
Using this formula
Required return=Risk-free rate+Beta(Market risk premium)
Let plug in the formula
Required return= 4.50% + 1.20(5.00%) .
Required return=4.50%+6%
Required return= 10.50%
Therefore Magee's required return will beb10.50%
Consider a firm with a daily demand of 100 units, a production rate per day of 500 units, a setup cost of $200, and an annual holding cost per unit of $10. Suppose that the firm operates 300 days per year. How many units of inventory must their storage area be able to hold? A. 1095 B. 9798 C. 980 D. 1081 E. 1225 F. 876
Answer: 980
Explanation:
The number of units of inventory that the storage area must be able to hold will be calculated as:
Demand = 100 × 300 = 30000
Production rate per day = 500
Setup cost = $200
Annual holding cost = $10
We then use the economic order quantity formula to solve and the answer will be gotten as 1225
The maximum inventory will now be:
= EQQ × (1-d/p)
= 1225 × (1-100/500)
= 1225 × ( 1 - 0.2)
= 1225 × 0.8
= 980
If Revere Company expects to sell 1,250 units of its product at $12 per unit, and break-even sales for the product are $13,200, what is the margin of safety ratio?
Answer:
Margin of safety ratio= 0.12
Explanation:
Giving the following information:
Sales= 1,250 units
Break-even point in sales= $13,200
Selling price= $12
First, we need to determine the current sales in dollars:
Sales in dollars= 1,250*12= $15,000
Now, the margin of safety ratio:
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= (15,000 - 13,200) / 15,000
Margin of safety ratio= 0.12
An example of a start of a start up cost
Answer:
what
Explanation:
please write the question properly I can't understand it
Claudia, a legal assistant, has been vested by her employer after having worked with the employer for ten years. This implies that she __________.
a. she can transfer her entire pension fund balances to a new employer’s plan if she moves to a new company
b. she will receive the amounts contributed by both the employer and herself when she retires
c. she will receive the maximum amount of pension available under her company’s retirement plan when she retires
d. she will receive the funds her employer has contributed to the retirement plan only if she is a member of the company while retiring
Answer: b. she will receive the amounts contributed by both the employer and herself when she retires
Explanation:
Since Claudia, has been vested by her employer after having worked with the employer for ten years, she will receive the amounts contributed by both the employer and herself when she retires
In this case, Claudia is vested and has the right to claim her funds in the retirement plan since she has worked for ten years.
Calculate the gross profit ratio and the inventory turnover ratio for the fiscal year ended February 3, 2018. Compare Target’s ratios with the industry averages of 24.5% and 7.1 times. Determine whether Target’s ratios indicate the company is more/less profitable and sells its inventory more/less frequently compared to the industry average.
Answer:
Target Corporation
a) Gross profit ratio = 28.4%
b) Inventory turnover ratio = 5.9 times
c) Indication: Target Corporation is more profitable at 28.4% gross margin ratio than the industry average of 24.5%. But, it sells its inventory, 5.9 times in a year, which is less frequently than the industry average of 7.1 times.
Explanation:
a) Data and Calculations:
Target Corporation Financials for 2018:
Sales = $74,433 million
Cost of Sales = $53,299 million
Gross profit = $21,134 million ($74,433 - $53,299)
Beginning Inventory = $8,597 million
Ending Inventory = $9,497 million
b) Gross profit ratio = Gross profit/Sales * 100
= $21,134/$74,433 * 100
= 28.4%
c) Inventory turnover ratio = Cost of Sales/Average Inventory
= $53,299/$9,047
= 5.89
= 5.9 times
d) Average Inventory = (Beginning Inventory + Ending Inventory)/2
= ($8,597 + 9,497)/2
= $9,047 million
Monopolies can earn positive economic profits in the long run while monopolistically competitive firms cannot due to
Answer:
barriers to entry in monopoly but not in monopolistic competition.
Explanation:
Imagine a situation where a monopolistically competitive firm is doing very well and is able to earn economic profit (profits higher than normal) in the short run. Since this company is earning higher than normal profits, other companies will enter the market and start competing against them hoping to get a piece of that abnormally high gain. As more competitors enter the market, economic profits will start to decrease until finally they are eliminated.
Since monopolies do not face competition, they can earn economic profits in the long run.
A buyer borrows money at 6% interest to pay a $10100 invoice with terms 1/10, n/30 on the 10th day of the discount period. The loan is repaid on the 30th day of the invoice. What is the buyer’s net savings for these two transactions?
Answer:
$67
Explanation:
Calculation for the buyer's net savings for the two transaction
Buyer's net savings=($10,100 × .01) − ($10,100 × .06 × 20 days/360)
Buyer's net savings=$101-$34
Buyer's net savings=$67
Note that 10th day of the discount period less 30th day of the invoice will gives 20 days while 360 days represent the number of days in a year
Therefore the buyer's net savings for the two transaction will be $67
Anthony currently earns $25 an hour and works 40 hours a week. When his boss offers to pay him $29 per hour, Anthony decides to accept the offer, but decides to keep working 40 hours. What is the effect of Anthony's decision on the labor supply curve?
Answer:
substitution and income effects will counteract each other totally
Explanation:
A labor supply curve is an economic analysis tool that shows the number or workers that are available to work or that can work at various wage rates.
The labor supply curve can either be bending backwards or sloping downwards or upward curving but it shows the relationship between labour and wage rates.
A labor supply curve can be affected by factors such as population, changes in social behaviour, opportunities in other markets, among other things.
From the above question, it is seen that a change in wage rate for Anthony from $25 to $29 does not affect his work hours positively of negatively. His work hours is the same despite the increase in hourly wage.
The effect of the Anthony sticking to 40 hours of work despite an increase in wage, which could have served as some motivation for him to put in more hours is his labor curve remains same. An increase in wage has done noting to affect the number of hours he works and as such his income vs work rate counters each other.
Cheers.
The S&P 500 stock index is at 1300. The annualized interest rate is 4.0 percent, and the annualized dividend is 2 percent. You are currently considering purchasing a two-month futures contract for your portfolio Refer to Exhibit 15.12. Calculate the current price of the futures contract.
Answer: $1,304.30
Explanation:
Current price can be calculated by the formula:
= 1,300 * ( 1 + (4% - 2%)) ^ 2/12 months
= 1,300 * 1.0033058903246372019414946658385
= $1,304.29
= $1,304.30
Machine X has an initial cost of $10,000. It is expected to last 12 years, to cost $200 per year to maintain and to have a salvage value of $1,000 at the end of its useful life. The equivalent uniform annual cost of the machine at 8% interest is most nearly ___________.A. 51,547.B. $1,000.C. 51.475.D. 51,160.E. $1,750.
Answer:
C. $1.475
Explanation:
Initial cost of Machine X = $10,000
Annual maintenance cost = $200
Salvage value = $1,000
Interest rate = 8%
Useful life = 12 years
Calculation of the equivalent uniform annual cost
EUAC = Initial cost of the machine X (A/P, i, n) + Annual maintenance cost - salvage value(A/F, i, n)
EUAC = 10,000(A/P, 8%, 12) + 200 - 1,000(A/F, 8%, 12)
EUAC = [10,000 * 0.1327] + 200 - [1,000 * 0.0527]
EUAC = 1,327 + 200 - 52.7
EUAC = 1,474.30
List Corporation reported pretax accounting income of $90,000, but due to temporary differences, taxable income is only $50,000. Assuming a tax rate of 40%, the income statement should report net income of:
a) $20,000
b) $36,000
c) $54,000
d) $16,000
The Meduri fruit company is using the brand asset valuator tool from Young & Rubicam. Meduri has surveyed a wide segment of consumers to discover their perspectives of its brand. After all four of the perspective dimensions are plotted on the graph, Meduri discovers that its brand has plenty of unused potential and is an aspiring brand . Which dimensions of the company are being used to arrive at that conclusion?
The correct answer to this open question is the following.
Although there are no options attached, we can comment on the following,
The dimensions of the company that are being used to arrive at that conclusion are the dimension of Marketing and the dimension of Strategy. The other two dimensions, Operations and Finances, are important two but are not really considered in the statement.
So it is positive that the Meduri fruit company is using a form of evaluation to find its place in the market and discover new opportunities that are being missed by some "corporative blindness." The brand asset valuator tool from Young & Rubicam is a recommended tool to find new things about your brand and see future possibilities, opportunities, and challenges. After finding its results, Meduri has to develop a marketing and brand strategy to fulfill those potentials and to reposition the brand in the mind of consumers.
Consider a 10-year corporate bond issued by a BB-rated firm and a 10-year municipal bond issued by a BBB-rated municipality. Which would you expect to have a higher yield-to-maturity?
a. BB-rated corporate bond
b. BBB-rated municipal bond
Answer:
I'd say a BBB bond is better
The BBB-rated municipal bond will have a higher yield-to-maturity. The appropriate response is BBB-rated municipal bond .
What is BBB-rated municipal bond ?BBB-rated bonds are regarded as medium-grade debt. They are neither poorly secured nor well protected. Interest payments and principal security seem sufficient at this time, but some protective components may not exist or may prove unreliable in the future.
For less hazardous bonds, investment grade ratings are typically BBB- or higher; ratings below BBB- are non-investment grade ratings (for riskier bonds). Non-investment grade may be substituted with the terms "speculative" or "high yield".
When capital preservation is the main goal, bonds rated "BBB," "Baa," or better are typically thought of as appropriate investments. Many municipal bonds are backed by insurance plans that ensure repayment in the case of default to allay investor concerns.
To learn more about municipal bond
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Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their adjusted gross income for 2019 is $415,300. What is Russ and Linda's total child and other dependent credit for 2019?
a. $500
b. 2,500
c. 3,700
d. 4,500
e. 4,700
Suppose Mexico wishes to fix its exchange rate relative to the US dollar. If the Federal Reserve raises interest rates, what would happen to the peso-dollar exchange rate in the absence of any change in Mexican interest rates?
Answer:
In this scenario, if the Fed raises the interest rates, the demand for U.S. dollars will rise, because investment in U.S. dollars will now be cheaper. This will in turn lower the demand for Mexican Pesos, putting pressure on the Mexican currency to depreciate (to lose value against the U.S. dollar).
Inventory records help determine how many items of material, components, and subassemblies need to be ordered to make the final product. Group startsTrue or False
Answer:
True
Explanation:
An accurate inventory of the record helps us to ensure that you always have the high-demand items on-hand, so that you would never come up short. An accurate inventory record also allows you to follow the sales trends, so that you can differentiate between the fast-moving and the slow-moving products. Keeping reports of the monthly inventory record helps us understand what stocks are doing well, and versus which are just taking up the shelf space. The lack of the right inventory can mean back orders and excess inventory which consequently drive up the costs. Thus, Inventory records help determine how many items of material, components, and sub-assemblies need to be ordered to make the final product.
An agency's power to determine whether the activity of a regulated entity is acceptable or not is an example of:______.a. rate-making power.b. licensing power.c. power over business practices.d. liability power.
Answer:
c. power over business practices
Explanation:
Regulatory agencies are formed to monitor and checkmate adverse activities of a certain sector of an economy.
They have various powers that can be used to control activities in a economic sector:
- Licencing power is the ability to give access to the players in a particular business sector.
- Rate making power is the ability of regulatory agency to determine price of commodities
- Power over business practices is regulatory agency's power to determine whether the activity of a regulated entity is acceptable or not.
For example if regulatory agency in communication notices the process for registering new clients is too cumbersome, they can enforce a more simple and streamlined process
Causes of low economic growth
Answer:
Effect on living standards. ...
Pressure on public services and government borrowing.
increase in aggregate demand (AD).
A $20,000, 90-day, 8% note payable was issued on November 1, 2015. Using a 360-day year, what is the amount of accrued interest on December 31, 2015?
Answer:
$267
Explanation:
Calculation for the amount of accrued interest on December 31, 2015
Accrued interest=20,000 x 8% x 60 days/360 days
Accrued interest= $267
Note that November 1, 2015 to December 31, 2015 will gives us 60 days while 360 days represent the number of days in a year
Therefore the amount of accrued interest on December 31, 2015 will be $267
Atlanta Spokane
Total liabilities $610,000 $466,200
Total equity 630,000 1,648,000
Compute the debt-to-equity ratio for each of the above companies. Which company appears to have a riskier financing structure
Answer:
Debt to Equity = Total liabilities / Total Equity
Atlanta
= 610,000/630,000
= 0.9682
= 0.97
Spokane
= 466,200/1,648,000
= 0.28
Atlanta appears to have the riskier financing structure because a higher debt to equity ratio signifies less capacity to be able to pay off debt with the equity which means there is a greater chance of default.
funds at an interest rate of 11.10% for a period of eight years. Its marginal federal-plus-state tax rate is 25%. PRC’s after-tax cost of debt is (rounded to two decimal places)
Answer:
8.33%
Explanation:
After tax cost of debt = Pretax cost of debt*(1-T)
After tax cost of debt = 0.1110* (1 - 0.25)
After tax cost of debt = 0.1110 * 0.75
After tax cost of debt = 0.08325
After tax cost of debt = 8.33%
what is globalization ?
Answer:
the process by which businesses or other organizations develop international influence or start operating on an international scale.
Explanation:
Yeah
Year Year Forward Rate 1 4.6% 2 4.9% 3 5.2% 4 5.5% 5 6.8% What should the purchase price of a 3-year zero-coupon bond be if it is purchased today and has face value of $1,000?A. $966.87.B. $911.37.C. $950.21.D. $956.02.E. $945.51.
Answer:
no option is correct, since the market value of the bond is $866.32
if the bond matured in 2 years instead of 3, then option B. $911.37 would be correct = $1,000 / [(1.046)x(1.052)] = $911.366 = $911.37
Explanation:
in order to determine the market value of the bond we need to determine the present value of its face value:
market value = PV = future value / [(1 + i₁) x (1 + i₂) x (1 + i₃)]
future value = $1,000
[(1 + i₁) x (1 + i₂) x (1 + i₃)] = [(1 + 4.6%) x (1 + 4.9%) x (1 + 5.2%)] = 1.154311
PV = $1,000 / 1.154311 = $866.32
The market rate of return is 12 percent and the risk-free rate of return is 3 percent. Lexant stock has 3 percent less systematic risk than the market and has an actual return of 12 percent. This stock:______
a. Is underpriced.
b. Is correctly priced.
c. Will plot below the security market line.
d. Will plot to the right of the overall market on a security market line graph.
e. Will plot on the security market line.
Answer:
a
Explanation:
The market rate of return is 12 percent and the risk-free rate of return is 3 percent. Lexant stock has 3 percent less systematic risk than the market and has an actual return of 12 percent. This stock is underpriced
Miller Nwagi will not ride in elevators because he perceives them to be confining boxes that could fall. He refused to visit a store, which was selling his favorite brand of pipe tobacco, because the store could only be reached with an elevator. This would be an example of how _____ influences determine consumer buying decisions
Answer:
Psychological influence
Explanation:
During consumption people sometimes experience Internal influences that are basically stemmed from their own lifestyle and also their way of thinking. These influences arise out of their personal thoughts, their self-concepts, their feelings and also attitudes, lifestyles, motivation and memory. We refer to these internal influences as psychological influences.
Psychological influences is why miller would not ride in elevators due to the perception he has formed internally about elevators. And hence the reason he wouldn't use one.
Calculate the federal income tax liability of a worker who earned $522,503 in 2019, and who takes the standard deduction of $12,200. Keep in mind that calculations of federal income tax drop any numbers after the decimal point.
Answer:
Tax liability = $157,611 (Approx)
Explanation:
Taxable Income = Gross Income – Standard Deduction
Taxable Income = $522,503 - $12,200
Taxable Income = $510,303
Calculation of tax liability:
Tax liability = ($9,700 x 10%) + [($39,475 - $9700) x 12%] + [($84,200 - $39,475) x 22%] + [($160,725 - $84,200) x 24%] + [($204,100 - $160,725) x 32%] + [($510,300 - $204,100) x 35%] + [($510,303 - $500,000) x 37%]
Tax liability = $157,611 (Approx)
The unemployment rate is the percentage of the: Group of answer choices population that is unemployed. adult population that is unemployed. adult population that is in the labor force. labor force that is unemployed. labor force that is employed. g
Answer:
labor force that is unemployed.
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed.
The unemployment rate is divided into various types, these include;
1. Cyclical unemployment rate (CU).
2. Frictional unemployment rate (FU),
3. Structural unemployment rate (SU).
4. Actual unemployment rate (AU).
5. Natural Rate of Unemployment (NU).
Hence, the unemployment rate is the percentage of the labor force that is unemployed.
Answer: the answer is true
Explanation: i just did it on edgnuity