Answer:
The stock price today is $58.50
Explanation:
First, we need to determine the dividends for each year
Year _____Working _________ Dividend
0________________________ $2.80 per share
1________$2.80 x ( 1 + 40% )___$3.92 per share
2________$3.92 x ( 1 + 10% )___$4.312 per share
3________$4.312 x ( 1 + 5% )___$4.5276 per share
Now we need to calculate the present value of each years dividend to calculate the value of stock
Year _____Working ___________________ PV of Dividend
1________$3.92/( 1 + 12% )^1_____________ $3.50
2________$4.312/( 1 + 12% )^2____________$3.4375
3________[$4.5276/(12%-5%)]/( 1 + 12% )^2__ $51.5625
Now sum all of the present vlue of dividend to calculate the stock price
Stock Price today = $3.50 + $3.4375 + $51.5625 = $58.50
Examples of imperfections in the financial system which allow banks to exist include which of the following? A. Informational asymmetry B. Efficiency of markets C. Divisibility of assets D. Adequate liquidity E. All of the examples are of the imperfections that exist.
Answer: A. Informational asymmetry
Explanation:
There exists an information asymmetry in the financial markets that rises from people being unable to adequately analyse the riskiness of various business endeavours.
Banks overcome this information asymmetry by having experience and well trained personnel that are capable of adequately assigning risk to ventures and charging them the appropriate interest rate to make a return on that venture.
The velocity of money increases if:
Select one:
a.
Each unit of money is used more frequently.
b.
Money is constant
c.
Each unit of money is used less frequently.
d.
None of the above
= Each unit of money is used more frequently.
Answer:
= negative relationship = negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment. inflation and unemployment.
Explanation:
= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.
Select the correct answer.
Diversity awareness is the ability to understand and respect other cultures. Which interpersonal skill might be affected by a lack of diversity
awareness?
ОА
teamwork
OB
time management
OC goal-setting
OD self-representation
Answer:
Teamwork
Explanation:
George owns a custom pottery business where he makes all types of mugs and drinkware. Which of the following products would dramatically affect his profit margins if the price were to decrease for that product?
a. glass coffee mugs
b. coffee beans
c. silverware
d. clay
Answer:
a. glass coffee mugs
Explanation:
As we know that the glass coffee mugs and the pottery mugs are the subsitutes goods. In the case when the price of glass coffee mugs would decline so it would more consume due to which the demand of the pottery mugs would reduced
Therefore as per the given situation, the product that impact the profit margin is option a
hence, the correct option is a.
Which of the following is an advantage of a small business?
Greater adaptability to changing market demands
High success rates
Diverse and large workforce
OLow levels of stress in managing the business
Highly trained and competent staff
After Lynda's initial client assessment, she has noted that her client will require inventory management to avoid out-of-stock situations for their merchandise.
What business industry type does this best describe?
1) Professional services
2) Appointment-based services
3) Contractor/Field Services
4) Retail and e-commerce
Answer:
4) Retail and e-commerce
Explanation:
The retail industry comprises businesses that sell to the final consumers of goods and services. Examples of firms in the retail industry retail stores, supermarkets, banks, gas stations are all other businesses that sell to end consumers. The retail business requires inventory to sell to customers. Out-of-stock is a situation where a retail outlet has run out of a particular product or products to sell to customers. It results in customers being turned away and lost revenues.
eCommerce is business done via the internet. The retail industry has incorporated eCommerce in its operations.
The next dividend payment by Hot Wings, Inc., will be $4.25 per share. The dividends are anticipated to maintain a 3 percent growth rate forever. Required:If the stock currently sells for $59 per share, what is the required return
Answer:
10.20%
Explanation:
According to the Gordon constant growth model :
value = D1 / r - g
D1 = next dividend = $4.25
r = required return
g = growth rate = 3%
value = $59
$59 = $4.25 / r - 0.03
4.25 / 59 = r - 0.03
0.072034 = r - 0.03
r = 0.102034
r = 10.20%
The scenarios each illustrate a principle of economics. Classify each scenario according to the principle that best fits it.
a. On Black Friday, there are huge sales for electronics at many retail stores. David must decide between buying a camera at one store or a flat screen TV at another store, and buying one means losing out on the ability to purchase the other.
b. An educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. The company compares how much adding another worker will improve the product to the additional cost.
c. Ava finds that there is not enough time after work to have dinner, exercise, and watch TV, and she must make choices about how to use her limited time.
1. Marginal Decisions
2. Resource Scarcity
3. Opportunity Cost
Answer:
3. Opportunity Cost
1. Marginal Decisions
2. Resource Scarcity
Explanation:
Opportunity cost or implicit is the cost of the next best option forgone when one alternative is chosen over other alternatives.
If David buys the camera he would forgo the opportunity to buy a tv and if he buys a tv, he forgoes the opportunity to buy a camera.
Marginal decisions look at the benefit of increasing or decreasing an input by little units. Here, the educational company is considering the marginal benefit of increasing the numbers of economist by one unit.
Ava has limited time to do all she would like to do. Time here is a scarce resource. Her wants her limited but the resources are scarce.
The following Is a list of well-known companies.
1. Alcoa Inc.
2. Boeing
3. Caterpillar
4. Citigroup Inc.
5. CVS
6. Dow Chemkal Company
7. eBay Inc.
8. FedEx
9. Ford Motor Company
10. Gap Inc.
11. Block
12. Hilton Hospitality, Inc
13. Procter & Gamble
14. SunTrust
15. Walmart Stores, Inc.
Required:
Indicate whether each of the above companies are primarily a service, merchandise, or manufacturing business.
Answer:
The companies Indication
1. Alcoa Inc. Manufacturing business
2. Boeing Manufacturing business
3. Caterpillar Manufacturing business
4. Citigroup Inc. Service business
5. CVS Merchandising business
6. Dow Chemkal Company Manufacturing business
7. eBay Inc. Service business
8. FedEx Service business
9. Ford Motor Company Manufacturing business
10. Gap Inc. Merchandising business
11. H&R Block Service business
12. Hilton Hospitality, Inc Service business
13. Procter & Gamble Manufacturing business
14. SunTrust Service business
15. Walmart Stores, Inc. Merchandising business
Season tickets for the Dingos are priced at $340 and include 17 home games. An equal amount of revenue is recognized after each game is played. When the season began, the amount credited to Unearned Ticket Revenue was $1,819,000. By the end of October, $1,284,000 of the Unearned Ticket Revenue had been recognized as revenue.
Required:
a. How many season tickets did the Dingos sell?
b. How many home games had the Dingos played by the end of October?
c. Prepare the entry to recognize the revenue after the first home game had been played.
Answer:
Season tickets sold = $1,819,000 / $340
Season tickets sold = 5,350 tickets
Games played by the end of October = [$1,284,000 / ($1,819,000 / 17 games)]
Games played by the end of October = $1,284,000 / 107,000
Games played by the end of October = 12 games
Journal Entry to record initial sale of ticket
Accounts title Debit Credit
Cash $1,819,000
Unearned Ticket revenue $1,819,000
Journal Entry to record first home game revenue
Accounts title Debit Credit
Unearned Ticket revenue $107,000
Ticket revenue (earned) $107,000
Marginal cost A) is the increase in total cost resulting from producing one more unit. B) is the average cost of production divided by output. C) equals the increase in AVC resulting from producing one more unit. D) always equals average cost.
Answer: A) is the increase in total cost resulting from producing one more unit.
Explanation:
Marginal cost is the increase in total cost that a company incurs from producing one more unit of the good being produced. It includes both fixed and variable cost and can be calculated by dividing the change in cost by the change in quantity.
Marginal cost is an important metric in profit maximisation because it tells the point where profit is maximised when it equals Marginal revenue.
Robin Company has the following balances for the current month: Direct materials used $ 19,000 Direct labor $ 21,750 Sales salaries $ 11,250 Indirect labor $ 1,900 Production manager's salary $ 6,050 Marketing costs $ 8,350 Factory lease $ 4,020 What is Robin's total manufacturing overhead
Answer:
$30,750
Explanation:
Given that;
Direct materials used = 19,000
Direct labor = 21,750
Sales salaries = $11,250
Indirect labor = $1,900
Production manager's salaries = $6,050
Marketing costs = $8,350
Factory lease = $4,020
Total manufacturing overhead = Direct materials + Direct labor
= $19,000 + $21,750
= $30,750
Therefore,
Total manufacturing overhead is $30,750
At the end of the prior year, Doubtful Inc. had a deferred tax asset of $14,500,000 attributable to its only timing difference, a temporary difference of $58,000,000 in a liability for estimated expenses. At that time, a valuation allowance of $4,720,000 was established. At the end of the current year, the temporary difference is $53,000,000, and Doubtful determines that the balance in the valuation account should now be $5,000,000. Taxable income is $15,800,000 and the tax rate is 25% for all years. Required: Prepare journal entries to record Doubtful's income tax expense for the current year.
Answer:
S/N Account Titles and Explanation Debit Credit
1 Income tax expense (balance) $6,780,000
Deferred tax asset $1,250,000
(53,000,000*25%) - 14,500,000
Income taxes payable $5,530,000
(15,800,000 *35%)
(To record tax expenses)
2 Income tax expense $280,000
Valuation allowance - deferred tax asset $280,000
(4,720,000 - 5,000,000)
(To record valuation allowance)
Select the correct answer.
Delegating means being responsible for all the work.
A True
B. False
Answer:
B. False
Explanation:
Delegating is using one's authority to assign some responsibilities to team members. Usually, delegations stem from a senior officer to a junior officer but can also be between co-workers. It is authorizing and empowering someone else to execute some of your responsibilities on your behalf.
In delegation, the delegating authority must provide clear guidance on how the assigned duties are discharged. Some level of supervision is still required as delegating does not take away the accountability element from the delegating authority.
How does a proportional taxation system work?
A. It makes wealthier citizens pay a higher percentage of their
income in taxes.
B. It makes less wealthy citizens pay a higher percentage of their
income in taxes.
C. It requires all citizens to pay all of their income in taxes for
redistribution.
D. It makes all citizens pay the same percentage of their income in
taxes.
Answer:
D. It makes all citizens pay the same percentage of their income in
taxes.
Explanation:
A proportional tax system imposes the same tax rate for all individuals regardless of the level of income. For example, if the tax rate is set at 5%, all taxpayers will be taxed at that rate. A person earning $10,000 will pay $500 (5% of 10,000) while the one earning $100,000 ( 5% of 5000)will pay $5,000.
A proportion tax system is also known as the Flat rate system. It is easy to compute and implement. The propositional tax system may appear to be fair because it treats all taxpayers equally and encourages people to earn more. However, it places a heavy tax burden on low-income earners.
Supervisor: "I need you to work on your team retention."
OK, I will work on improving my team's attitude.
OK, I will work on keeping my employees longer.
OK, I will tell my team they need to work overtime.
OK, I will work on improving my team's performance.
OK, I will tell my team they cannot take a vacation right now.
Answer: OK, I will work on keeping my employees longer.
Explanation:
Retention in business refers to keeping things longer and it is usually used in terms of employees. When therefore concepts like Team and Employee retention are said, they are referring to keeping employees and team members in a company for longer.
Team retention reduces the cost of labor because it means that less money will be spent on getting new employees and having to train them afresh every time. More seasoned employees also know how the business works and so will make fewer mistakes.
How does QuickBooks Online use machine learning in its reconciliation tool to help find any hidden transactions
Answer: b. It can identify transactions where the transaction date is in a future period and the cleared date is in the statement period .
Explanation:
QuickBooks online uses machine learning based on the transactions that it conducts with its millions of users so that it provides a better experience for those same users.
One way machine learning is used is in reconciliation where it identifies transactions that may have a future date but by virtue of their clearing dates should be in the current period and so may have been hidden.
Assume Clarks cannot estimate the standalone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry to record revenue for the sale of 1,000 pairs of SunBoots.
Answer and Explanation:
The journal entry is shown below:
Cash Dr (1,000 × $65) $65,000
To Sales revenue $59,000
To Deferred Revenue -Discount coupon $6,000
(1,000 × $100 × 30% × 20%)
(Being the sales revenue is recorded)
here the cash is debited as it increased the assets and credited the sales revenue and deferred revenue as it increased the revenue and liabilities
Determine the beta coefficient for a stock with a return of 10%, risk free rate of 3% and the market return of 9%.
Answer: 1.167
Explanation:
From the question, we are informed to calculate the beta coefficient for a stock with a return of 10%, risk free rate of 3% and the market return of 9%. This would go thus:
Beta = (stock return - riskfree rate) / (market return - riskfree rate)
= (10% - 3%) / (9% - 3%)
= 7% / 6%
= 0.07 / 0.06
=1.167
ccording to the U.S. Bureau of Labor Statistics, there were chefs/head cooks employed in the United States in and food service managers. Those numbers were projected to decrease to and by . Which job was facing the larger percent decrease? By how much? Round your answer to two decimal places, if necessary.
Answer:
Food service managers are facing a larger percent decrease at 3.31%Explanation:
The percentage decrease in chefs/head cooks is:
= (100,600 - 99,800) / 100,600
= 0.795%
= 0.8%
Percentage decrease for food service managers is:
= (320,600 - 310,000) / 320,600
= 3.31%
What is the interest if principal is $1000, with an interest rate of 5% for a
term of 1 year. *
5000
50
500
5
0.50
Answer:
$50
Explanation:
Interest is calculated using the formula
I = p x r x t
where I = interest
p = the principal amount: $1000
r = interest rate: 5% or 0.05
t = time in years: 1
I = $1000 x 0.05 x 1
I = $50
Interest = $50
'
Lifesaver Inc., a producer of personal protective equipment, trades on the TSX Venture stock exchange at an EV/EBITDA multiple of 4.0x. From performing a precedent transaction analysis, you note that recent acquisitions of similar companies have transacted at an EV/EBITDA multiple of 6.0x. The following is not a valid potential reason for this discrepancy:
a. Special purchaser considerations, such as synergies, being inherent in the precedent transaction multiples.
b. Multiples implied by precedent transactions are not relevant when considering publicly traded companies.
c. The presence of a control premium within the EV/EBITDA multiple implied by the acquisitions.
d. The presence of an implied minority discount (a discount due to a lack of control in the company when purchasing shares in the open market in the 4.0X EV/EBITDA trading multiple
Answer:
b. Multiples implied by precedent transactions are not relevant when considering publicly traded companies.
Explanation:
The following options are the valid reasons
1. Option c is valid as the lacking of control would generate the valuation that creates the difference compared with the purchase route.
2 Option a is valid as at the time of purchased made, synergies this would become a big factor for incorporation the valuation
3. OPtion d is valid as the control premium would push up the valuation in the previous transactions
But the option b is not valid as the discounted cash flow and the previous transaction would be considered as important for the valuation purpose
When you compare prices for high definition televisions at various stores, you are using money as a(n)medium of exchange.standard of value.store of value.payment method.unit of currency.
Answer:
standard of value
Explanation:
The standard of the value permits all types of merchants and the economic entities to set the fix price for the goods and services in order to stable the economy
So as per the given situation since it is mentioned that in the case when you do the comparision for HD television so you are using the money via standard of value
So the same is relevant
The Saturn Company records all collections from customers (including 5% sales tax) in the Sales Revenue Account. The account balance for 2025 is $100,000. Saturn's 12/31/25 Sales Tax Payable will be:
Answer:
$5,000
Explanation:
Calculation for what the Sales Tax Payable will be:
Sales Tax Payable=5% sales tax*Account balance $100,000
Sales Tax Payable=$5,000
Therefore the Sales Tax Payable will be: $5,000
Which of the following traits is most likely to be associated with the “A” in RIASEC?
A.
Problem solving
B.
Creative
C.
Good communicator
D.
Concerned with helping others
Answer:
B, Creative
Explanation:
Present Value of $200,000 that is expected to be received at the end of one year at a discount rate of 25% per year is:
Answer:
PV= $160,000
Explanation:
Giving the following information:
Future Value (FV)= $200,000
Discount rate (i)= 25%
Number fo periods (n)= 1 year
To calculate the present value (PV), we need to use the following formula:
PV= FV / (1+i)^n
PV= 200,000 / 1.25^1
PV= 200,000/1.25
PV= $160,000
Experience with capitation suggests that few providers have the administrative skills demanded by it. few providers have the data systems demanded by it. its financial risks for providers can be substantial. all of the above.
Answer: its financial risks for providers can be substantial.
Explanation:
Capitation is a type of payment plan that is used in the healthcare industry. It works by paying the healthcare provider a certain amount of money for a person in a specific period of time even if the person does not take advantage of this by coming to the provider.
This can pose substantial financial risk to the provider because a situation might arise where the person who was paid for comes in so many times for care that the provider spends more taking care of the person than if the person had paid for every visit.
There is a 10 percent chance that you will have healthcare bills of $200,000; a 20 percent chance that you will have bills of $10,000; a 59 percent chance that you will have bills of $1,000; and an 11 percent chance of having bills of $0. Your expected healthcare bills are Group of answer choices $22,590. $22,000. $20,590. $19,590.
Answer:
Expected value of healthcare bills = $22590
Explanation:
The expected value of the healthcare bills can be calculated by multiplying the probability of the a healthcare bill by the amount in case of that probability situation.
Expected value = pA * Amount in case of A + pB * Amount in case of B + ... + pN * Amount in case of N
Where,
p represents the probability of each scenario
Expected value of healthcare bills = 0.1 * 200000 + 0.2 * 10000 + 0.59 * 1000 + 0.11 * 0
Expected value of healthcare bills = $22590
The use of one’s official position for what always raises moral concerns and questions?
Answer:
The use of one’s official position for self-interest always raises moral concerns and questions. It is called corruption.
Explanation:
Corruption is the abuse of entrusted power for private gain. It erodes public confidence and breeds a culture of patronage. All forms of dishonest behavior by those in positions of power and authority are corrupt practices. It may also entail the giving and receiving of bribes for contract fronting. Many nations have experienced economic upheavals due to the corrupt practices perpetrated by those who should know better.
Kara Fashions uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. Three years after its purchase, one of Kara’s buildings has a book value of $400,000 and a tax basis of $300,000. There were no other temporary differences and no permanent differences. Taxable income was $4 million and Kara’s tax rate is 25%. What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $20,000 the previous year, prepare the appropriate journal entry to record income taxes this year.
Answer:
A. Credit $5,000
B. Dr Income tax expense $1,005,000
Cr Income tax pay$1,000,000
Cr Deferred tax liability $5,000
Explanation:
Calculation for What is the deferred tax liability to be reported in the balance sheet
Deferred tax liability=[ (400,000-300,000)*.25]-20,000
Deferred tax liability=($100,000*.25)-$20,000
Deferred tax liability=$25,000-$20,000
Deferred tax liability=$5,000 Credit
Therefore the deferred tax liability to be reported in the balance sheet will be $5,000 Credit
B. Preparation of the appropriate journal entry to record income taxes this year.
Dr Income tax expense $1,005,000
Cr Income tax pay$1,000,000
(4million *.25)
Cr Deferred tax liability $5,000
