Pablo owns a record store. His total costs are $1.2 million per year, his variable costs are $750,000, and his fixed costs are $450,000 per year. Last year, Pablo sold 1,200 records. If Pablo sells 1,250 records this year (50 more than last year) and his average total cost increases to $1.28 million, we know that the: ________

a. average variable cost of selling records has decreased.
b. marginal cost of those 50 records is $80,000.
c. average fixed cost of selling records is unchanged.
d. marginal cost of those 50 records is $1.28 million.
e. average total cost of selling 1.250 records is $1,000.

Answer:

EBITDA margin is 55.58%

Explanation:

EBITDA margin is computed as;

= EBITDA / Total revenue

Where,

EBITDA = Earnings before interest and taxes + depreciation + amortization

EBITDA margin = ($18,112 + $5,000 + $1,422) / $44,140

EBITDA margin = $24,534 / $44,140

EBITDA margin = 55.58%

Answer:

c. 9.32%

Explanation:

The computation of the yield or return on the preferred stock is shown below:

= (Annual dividend rate × par value ) ÷ current stock price

= (6.20% × $ 85 ) ÷ $56.50

= 9.32%

Hence, the  yield or return on the preferred stock is %

Therefore the correct option is c.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Answer:

(a) in the primary market by an investment bank.

Multiple -choice options

(a) in the primary market by an investment bank.

(b) in the primary market by a stock exchange broker.

(c) in the secondary market by a securities dealer.

(d) in the secondary market by a commercial bank.

Explanation:

The securities exchange has both primary markets and secondary markets. The primary market deals with new shares or securities that corporations offer to investors. Once the securities have been issued, they become available for trading at the secondary market.

If a corporation wishes to raise additional funds, it issues new shares to investors. It contracts an investment banker who assists in planning, organizing, and facilitating the entire process. Since the corporation is offering new shares, they are issued in the primary market.

Answer:

C. $5,691,151

Explanation:

At what lump-sum payment amount would she be indifferent between the two alternatives?

Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $420,000

$420,000 x 13.55036* = $5,691,151

*PVAD of $1: n = 25; i = 6%

Answer:

b. $80,600

Explanation:

The computation of the bond carrying amount is shown below:

= Balance in the bond payable + premium on bond payable

= $79,000 + $1,600

= $80,600

Hence, the bond carrying amount is $80,600

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Therefore the correct option is b.

Answer:

0.26

Explanation:

Given that :

Value of debt = $1.1 million

Value of preferred stock = $1 million

Value of common equity = $2.2 million

Total value of company's funds :

(value of debt + value of Preffered stock + value of common equity)

(1.1 + 1 + 2.2) million

= $4.3 million

Hence, weight of debt :

Value of debt / total value of company's funds

$1.1 million / $4.3 million

= 0.2558

= 0.26

Answer: 9.45%

Explanation:

From the question, we are informed that the assets for BIZZ0 in 2018 were $187,300, the liabilities for that year were $275,600; and the net income was $17,700.

The return on income for the year will be:

= ( Net Income / Total Assets ) × 100

= ($17,700 / $187,300) × 100

= 0.0945

= 9.45%

Answer:

P0 = $33.9085 rounded off to $33.91

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g) / (r - g)

Where,  

D0 is the dividend paid  recently

D0 * (1+g) is dividend expected for the next period /year

g is the growth rate

r is the required rate of return or cost of equity

First we need to calculate the required rate of return or r using the CAPM.

Using the CAPM, we can calculate the required/expected 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 * rpM

Where,  

rRF is the risk free rate

rpM is the market risk premium

r = 0.03 + 1.2 * 0.06

r = 0.102 or 10.2%

Now using the formula for P0 under the constant dividend growth model,

P0 = 2.3 * (1+0.032)  /  (0.102 - 0.032)

P0 = $33.9085 rounded off to $33.91

Answer:

the net proceeds from the sale is $32,000

Explanation:

The computation of the net proceeds from the sale is shown below:

Net Proceeds = Sale Price - Tax × (Sale price - purchase price)

=  $40,000 - 40% × ($40,000  - $20,000)

= $40,000 - $8,000

= $32,000

Hence, the net proceeds from the sale is $32,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Answer:

B). Great Britain

Explanation:

The first nation expanded due to the use of hand tools and power equipment was Great Britain. Its industries of handtools played a great role in flourishing the trade industries of Britain and gave a new significance to agricultural raw materials and craftsmen. The Great Britain's idea also gained from its rule of India as the Indian products suddenly raised demand in the market which compelled the state to bring a handmade craft revolution. Thus, option B is the correct answer.

Answer:

a. 0%

Explanation:

The first line of the schumer box had it on

The answer to the prompt that "People who download unlicensed music tend not buy legal digital music" is False.

Judging from the passage above, the answer to this prompt is false.

The passage makes it clear that those who regularly downloaded unlicensed music also "spent an average of £5.52 a month on legal digital music."

This shows that this crop of individuals are willing to purchase legal digital music.

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Answer: d. coupon bond that pays a fixed coupon rate and does not mature.

$3250

Explanation:

A consol is a coupon bond that pays a fixed coupon rate and does not mature. Consols are consolidated annuities that are perpetual. A steady amount of interest is paid for a consol even though they're not redeemable

Price of a consol will be gotten as fixed coupon amount divided by the rate of return. Let's assume that the fixed coupon amount is $65, then the price will be:

= 65/2%

= $3250

Answer:

The correct answer is A. Using emails to communicate asynchronously is not a good idea for all of the reasons below except email threads are organized.

Explanation:

Communication via email is very efficient for exchanging non-instantaneous messages, that is, in those in which information is transmitted that does not require constant exchange, such as a chat or a phone call. Therefore, in the case of asynchronous communication, the exchange of emails can cause some part of the communication to be lost, or the messages may be misinterpreted because they are out of order. This provided that the thread of the messages is not ordered, otherwise this misunderstanding could be avoided.

Answer:

d. 9.31 %

Explanation:

in order to solve this question you cannot use the approximate yield to maturity since it will yield an approximation, but not an exact answer:

approximate YTM = {70 + [(1,000 - 788)/4]} / [(1,000 - 788)/2] = 13.76%

after tax cost of debt = 13.76% x 0.65 = 8.94%, but that is not an option

we must determine the exact yield to maturity which is determined by the following formula:

$788 = $70/(1 + i) + $70/(1 + i)² + $70/(1 + i)³ + $1,070/(1 + i)⁴

the simplest way to solve this is by using a financial calculator since the math is complicated. The exact yield to maturity = 14.324%

after tax cost of debt = 14.324% x (1 - tax rate) = 14.324% x 0.65 = 9.31%

Answer:

b. 26,000 units

Explanation:

We will calculate break even point as;

Break even point = Fixed expenses ÷ Contribution margin per unit

Where,

Fixed costs = $525,000 + $125,000 = $650,000

Also, Contribution margin per unit = Selling price per unit - Variable expense per unit

Selling price per unit = $50

Variable expense per unit

= 50% × $50

= $25

Contribution margin per unit

= $50 - $25

= $25

Therefore, the break even point in units

= $650,000 ÷ $25

= 26,000 units

Answer:

The after-tax cost of debt is 8.22%

Explanation:

The cost of debt is the actual cost of a business to raise debt finance. Yield to maturity is the cost of debt of a bond.

calculate the YTM as follow

Coupon = $1000 x 7.25% x 6/12 = $36.25

Number of periods = 9 yeas x 12/6 = 18 periods

Use the financial calculator as below

2nd I/Y 2, FV 1000, PMT 36.25, PV -754.08, N 18, CPT I/Y

Yield to maturity = 11.7499%

Now calculate the after tax YTM

YTM ( after tax ) = 11.7499% x ( 1 - 30% )

YTM ( after tax ) = 8.22%

Answer:

The answer should be D, a ban of deceptive advertisements.

Explanation:

In the 90s the government cracked down on deceptive advertising more than ever and more laws on the matter were added. The only other option that was actually ever banned was A, none of the other choices were ever banned. The ban on tobacco happened in the 70s under Nixon, that makes D the only possible answer. Hope this helps! :)

Answer:

D

Explanation:

The Tobacco Master Settlement Agreement reached in 1997 bans outdoor, billboard and public transportation advertising of cigarettes in 46 states. Restrictions on cigarette were further tightened in 2010 with passage of the Family Smoking Prevention and Tobacco Control Act.

Answer:

the equity beta of the firm is 1.134

Explanation:

The computation of the equity beta is shown below:

Equity beta is

= Asset beta × [1 + (1 - tax rate) × Debt-equity ratio]

= 0.9 × [1 + (1 - 0.35) × 0.4]

= 0 9 × 1.26

= 1.134

Hence, the equity beta of the firm is 1.134

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Answer:

$1,140(A)

Explanation:

The labor price variance is computed as;

= (SP - AP) × AH

Where:

SP = Standard price hour = $18 per hour

AP = Actual price per hour = $18.30 per hour

AH = Actual hours used = 3,800

Labor price variance = ($18 - $18.30) × 3,800 hours

Labor price variance = $1,140 (A)

Therefore, the labor price variance was $1,140(A)

Answer:

5.9

Explanation:

Calculation for It's accounts receivable turnover using this formula

Accounts Receivable Turnover = Net Sales amount /Average Accounts Receivable amount

Let plug in the formula

Accounts Receivable Turnover =$566,400/$96,000

Accounts Receivable Turnover = 5.9

Therefore Its accounts receivable turnover equals: 5.9

Answer:

required return 16%

risk/reward  8%

portfolio return 13.60%

Explanation:

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

risk-free rate=4%

beta=1.5

market return=12%

required return=4%+1.5*(12%-4%)=16.00%

Reward/risk ratio=market return-risk free rate

reward/risk ratio=12%-4%=8%

Portfolio return=weight of the asset* required return on asset+weight of the rest of the portfolio*market return

weight of the asset=40%

required return=16%

weight of the rest of the portfolio=1-40%=60%

market return=12%

portfolio return=(40%*16%)+(60%*12%)=13.60%

The risk-free rate is termed as the return that is associated with the investment with zero or no risk. It represents the number of investors that would expect a higher return from no-risk investment over a specified period of time.

The answers are:

required return 16%

risk/reward  8%

portfolio return 13.60%

[tex]\begin{aligned}\text{Required return}=\text{risk-free rate}+\text{beta}\times(\text{market return-risk free rate})\end{aligned}[/tex]

risk-free rate=4%

beta=1.5

market return=12%

[tex]\begin{aligned}\text{required return}=4\%+1.5\times(12\%-4\%)=16.00\%\end{aligned}[/tex]

[tex]\begin{aligned}\frac{Reward}{risk}\end{aligned}[/tex] ratio=market return-risk free rate

[tex]\begin{aligned}\frac{\text{reward}}{\text{risk ratio}}=12\%-4\%=8\%\end{aligned}[/tex]

Hence the [tex]\begin{aligned}\frac{Reward}{risk}\end{aligned}[/tex]  ratio is 8%

Portfolio return=[tex]\text{weight of the asset}\times\text{ required return on asset}+\text{weight of the rest of the portfolio}\times{\text{market return}}[/tex]

weight of the asset=40%

required return=16%

weight of the rest of the portfolio=1-40%=60%

market return=12%

portfolio return=[tex](40\%*16\%)+(60\%\times12\%)=13.60\%[/tex]

Therefore the required return on a portfolio is 13.60%.

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Answer:

3.73%

Explanation:

The computation of the rate of interest that makes the equivalent is shown below:

As we know that

Present value=Cash flow × Present value discounting factor ( interest rate% , time period)

Let us assume the interest rate be x

where,

Present value of $400,000 is

= $400,000 ÷ 1.0x ^5

And,

Present value of $1,000,000 be

= $1,000,000 ÷ 1.0x^30

Now eqaute these two equations

$400,000 ÷ 1.0x^5 = $1,000,000 ÷ 1.0x^30

(1.0x^30) ÷ (1.0x^5) = $1,000,000 ÷ $400,000

1.0x^(30 - 5)=2.5

1.0x^25=2.5

1.0x = (2.5)^(1 ÷ 25)

x =1.03733158 - 1

= 3.73%

Answer:

d. All of the above.

Explanation:

All the three actions are appropriate actions for when offering financial products to clients.

a) is appropriate because prior clients are likely to have most of the information in the company's records.

b) is appropriate because as you gain experience, you become more knowledgeabe and intuitive about which clients should be offered a determined product.

c) is appropriate because as a financial worker, it is your duty to decline requests for financial products from clients who do not meet the given criteria.

Answer:

Collaborative Planning, Forecasting and Replenishment (CPFR)

Explanation:

Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers. Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.

The fundamental principle of supply chain management is basically a collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing, a wholesaler, and a retailer who typically sells the products to the customers or consumers.

Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.

Collaborative Planning, Forecasting and Replenishment (CPFR) is a type of supply chain collaboration which includes collaborative processes across the supply chain using a set of processes and technology models including a joint business plan, sales forecasting, order planning and forecasting, order generation, and order fulfillment.

Answer: B. A financing activity.

Explanation:

A Financing activity is one that involves the provision of capital to the company or project being built which is why long term liabilities and equity will fall under this category.

This contribution that has been earmarked for use on the construction of a new building will therefore be treated as a financing activity because it represents capital being provided for the elementary school.

Had it been the Elementary school providing the funds itself then this would have been an Investing activity.

Answer:

1.is a secured loan

the second one is an unsecured loan

and the third is a secured loan

The correct words to complete the given sentences would be as follows:

- Secured

- Unsecured loan

- Secured loan

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Answer: Categorical

Explanation:

Categorical data refers to data that enables variables to be grouped into categories but in such a way that there is no ordering to the categories.

In this scenario, the cars will be grouped by their colors but these colors cannot be ordered by saying that red is higher than blue or yellow is higher than white. It is therefore Categorical data.

Answer: See explanation

Explanation:

a. This is not a loss contingency. A loss contingency occurs when the value of an asset is reduced because of an occurence on the future. This isn't the case here as a separate sales transaction occured.

b. To account for it, we have to defer the revenue as a liability and then we will use the straight line basis to calculate the warranty expense.

2. Dr Cash $412,000

Cr Unearned revenue - extended warranties $ 412,000

(To record the sale of extended warranty)

Dr Unearned revenue - extended warranties. $57937.50

Cr. Revenue - Extended Warranties $57937.50

(To record revenue earned on extended warranty)

Answer:

I believe the answer to that would be B.

Explanation:

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