Answer:
a. Amount to invest in Y
The amount that will be invested in Stock Y should be such that the expected return of the portfolio would equal 12.1%.
This would be determined by the weights of the stock.
Assume the weight to be invested in X is x.
Portfolio return = (weight of X * Return of X) + (weight of Y * Return of Y)
12.1% = (x * 10.28%) + ( (1 - x) * 7.52%)
0.121 = 0.1028x + 0.0752 - 0.0752x
0.121 - 0.0752 = 0.1028x - 0.0752x
0.0458 = 0.0276x
x = 0.0458 / 0.0276
= 1.6594
Weight in stock Y:
= 1 - 1.6594
= -0.6594
Amount to invest in Y:
= -0.6594 * 100,000
= -$65,940
b. Portfolio beta
It will be a weighted average of the betas of the two stocks:
= (Weight of stock X * Stock X Beta) + ( Weight of stock Y * Stock Y beta)
= (1.6594 * 1.20) + (-0.6594 * 0.80)
= 1.46
MC Qu. 160 Webster Corporation's monthly... Webster Corporation's monthly projected general and administrative expenses include $4,300 administrative salaries, $1,700 of other cash administrative expenses, $2,200 of depreciation expense on the administrative equipment, and .5% monthly interest on an outstanding bank loan of $27,000. Compute the total general and administrative expenses to be reported on the general and administrative expense budget per month.
Answer:
the total general and admin expense is $8,200
Explanation:
The computation of the total general and admin expense is given below:
Administrative salaries $4,300
Other cash administrative expenses $1,700
Depreciation $2,200
General and administrative expenses budget $8,200
hence, the total general and admin expense is $8,200
We simply added the above 3 items so that the correct value could come
Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure: Assume that the current sales level is 14,000 dolls. What impact would a 10% increase in sales have on income
Answer: D. Income would increase by about 51%
Explanation:
Income before sales increase:
= Sales - Variable costs - Fixed costs
= (8 * 14,000 units) - ( (1.20 + 0.40) * 14,000 units) - (40,000 + 32,000)
= 112,000 - 22,400 - 72,000
= $17,600
Income after sales increase:
New sales = 14,000 * (1 + 10%) = 15,400 units
= (8 * 15,400) - ( (1.20 + 0.40) * 15,400) - (40,000 + 32,000)
= $26,560
Percentage increase:
= (26,560 - 17,600) / 17,600
= 50.9%
= 51%
Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of 10,000 direct labor-hours. What is the amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours?
a. $2,000.
b. $4,000.
c. $6,000.
d. $10,000.
Answer:
Spartan Corporation
The amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours is:
b. $4,000.
Explanation:
a) Data and Calculations:
Estimated manufacturing overhead = $200,000
Estimated activity level = 10,000 direct labor-hours
Predetermined overhead rate = $20 ($200,000/10,000) per direct labor-hour
Applied overhead to a job that required 200 direct labor-hours = $4,000 (200 * $20)
2
On January 2, Good Sound, Inc. purchased a speaker for sale on account with a listed price of $2,100. On January 15,
Good Sound sold to Sweet Coffee, Inc. a speaker on account for $3,500 with terms of 3/15, n 45. On January 20,
Sweet Coffee paid the invoice in full. What is net amount of Sales Revenue (1.e. Net Sales Revenue) reported to Good
Sound's Income statement?
Answer:
noise pollution
Explanation:
because it is a very good noise
Which of the following is not an action company co-managers can take to help meet or beat the investor-expected increases in the company's stock price in upcoming years?
a. Increasing annual dividend payments to shareholders most every year
b. Pursuing efforts to increase total operating profits in all four geographic regions the resulting growth in operating profits will improve total net profit and help raise the EPS, driving the company's stock price upward
c. Increasing the amount of earnings retained in the business, thereby building a large amount of cash held in the company's retained earnings account on its Balance Sheet
d. Using a portion of cash flows from operations to repurchase shares of common stock on a regular basis
e. Building the company's earnings per share and retrun on equity; it is widely-known that these are important factors that drive the company's stock price
Answer:
c. Increasing the amount of earnings retained in the business, thereby building a large amount of cash held in the company's retained earnings account on its Balance Sheet
Explanation:
In the case when the retained earnings in increased so it created the large amount of cash that should be held in the retained earning account of the company in the balance sheet but the same should not have any kind of impact for beating the expectation of the investor for increase in the stock price in near future
So, the option c is correct
The following data pertain to an investment project (Ignore income taxes.):
Investment required $35,334
Annual savings $6,000
Life of the project 10 years
Determine the appropriate discount factor(s) using the tables provided.
Answer:
11%
Explanation:
Here is the complete question :
The following data pertain to an investment project (Ignore income taxes.):
Investment required $35,334
Annual savings $6,000
Life of the project 10 years
Determine the appropriate discount factor(s) using the tables provided.
Determine the IRR
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = -$35,334
Cash flow in year 1 = 6000
IRR = 11%
To determine IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $5,150,000 and will be sold for $1,575,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset
Answer:
$1,424,282.40
Explanation:
Missing word "Refer to Table 5 YEAR :20%,32%,19.2%,11.52%"
Book value as on date of sale = Cost - Accumulated Depreciation
Book value as on date of sale = $5,150,000*(1 - 0.2 - 0.32 - 0.192 - 0.1152)
Book value as on date of sale = $5,150,000*0.1728
Book value as on date of sale = $889,920
Gain on sale = $1,575,000 - $889,920
Gain on sale = $685,080
After-tax salvage value = Sale proceeds - (Gain on sale*Tax rate)
After-tax salvage value = $1,575,000 - ($685,080*22%)
After-tax salvage value = $1,575,000 - $150,717.60
After-tax salvage value = $1,424,282.40
How do you determined the levels of management in your company?
Answer:
The three levels of management typically found in an organization are low-level management, middle-level management, and top-level management. Low-level managers focus on controlling and directing. They serve as role models for the employees they supervise.
Answer:
This is my Opinion.
I think the answer is The three levels of management typically found in an organization are low-level management, middle-level management, and top-level management. Low-level managers focus on controlling and directing. They serve as role models for the employees they supervise.
Hope this helps you ^^
Genius Professor Mullen Co. is using the Target Cost approach on a new product. Information gathered so far reveals: Expected annual sales (Market Sales) 400,000 units Desired profit per unit (DP) $0.25 Target cost (TC) $168,000 What is the Market Price (MP) per unit
Answer: $0.67 per unit
Explanation:
Find the target cost per unit:
= 168,000 / 400,000
= $0.42 per unit
If the desired profit is $0.25 and the target cost is $0.42, the market price per unit is:
= Desired profit + Target cost
= 0.25 + 0.42
= $0.67 per unit
Why is the Dutch disease also called "a wolf in sheep's clothing"?
PLS HELP :(
Answer:
"A wolf in sheep's clothing" refers to a situation where something that in first glance seems to be good or helpful, ends being bad.
Dutch disease refers to the pernicious effects caused by a significant increase in a country's foreign exchange earnings.
For example, suppose that there is good news like the finding of a lot of a given resource (like gold). Now, if the country's economy depends largely on the trade of gold, the news that a large reserve of gold has been found will likely decrease the price of gold, affecting in this way the economics of that country.
Then, something that at first glance looked nice (finding large quantities of the resource) ended being harmful to the country's economics.
This why there is a parallelism between the Dutch disease and the phrase "a wolf in sheep's clothing"
If labor productivities were exactly proportional to wage levels internationally, this would A) not negate the logical basis for trade in the Ricardian model. B) render the Ricardian model theoretically correct but practically useless. C) negate the logical basis for trade in the Ricardian model. D) negate the applicability of the Ricardian model if the number of products were greater than the number of trading partners. E) demonstrate the validity of the Ricardian model.
Answer:
A)not negate the logical basis for trade in the Ricardian model.
Explanation:
Trade can be regarded as basic economic concept which involves the buying as well as selling of goods and services, having a compensation that is been paid by a buyer to a seller.
The Ricardian model can be regarded as model that incorporates the standard assumptions of a perfect competition. This model in it's simplest form give assumption of two countries that are producing two goods, but uses one factor of production, the goods here are usually assumed to be identical, or to be homogeneous, within as well as across countries. It should be noted that when there is higher wage, there will be greater number of workers that are willing to work and vice versa, which defined the relationship between wages and productivity. productivity gives the
measurement of how efficiently labor
is been utilized when producing goods and services.
It should be noted that If labor productivities were exactly proportional to wage levels internationally, this would not negate the logical basis for trade in the Ricardian model.
Motors are assembled in a process with two resources. The first resource has a capacity of 2 motors per hour. The capacity of the second resource is 4.5 motors per hour. Demand for this process is 2.3 motors per hour.
Instruction: Round your answer to three decimal places.
What is the cycle time of this process (in minutes)? _______minutes
Answer: 26.1 minutes
Explanation:
The cycle time is calculated by the formula:
= Production time available / Desired output
Production time available = 1 hour as production is per hour.
1 hour = 60 minutes
Desired output is the demand per hour from the process
Cycle time = 60 / 2.3
= 26.1 minutes
Sheffield Corp. has old inventory on hand that cost $21000. Its scrap value is $30000. The inventory could be sold for $70000 if manufactured further at an additional cost of $21000. What should Sheffield do?
Answer:
Sell the inventory for $30000 scrap value
Explanation:
In the first place, if the old inventory is disposed of at $30,000 and cash inflow of $30,000 would be received
However, if manufactured by further by incurring an additional cost of $21,000,the incremental income is computed thus:
incremental income=sales value-scrap value-additional cost
Remember scrap value is a lost benefit if the inventory is processed further and not sold in its current state.
incremental income=$70,000-$30,000-$21000
incremental income=$19,000(less than cash flow when disposed of at scrap value, hence, the inventory should be sold at $30,000)
a granary allocates the cost of unprocessed wheat to the production of feed flour and starch 100000. how much of the 120000 cost should be allocated to feed if the value basis is used
Question is incomplete : Find complete version in the comment section:
Answer:
$42,000
Explanation:
Product __ pound ___ price/pound ____ value
Feed ___ 100000 ____ 0.70 ________ 70000
Flour ___ 50000 _____ 2.20 ________ 110000
Starch __ 20000 _____ 1.00 ________ 20000
Total value _____________________ 200000
In value basis :
Feed's percentage of total value :
(Feed value / total value) * 100%
(70000 / 200000) * 100%
0.35 * 100% = 35%
Feed percentage * joint cost
35% * 120,000 = 42,000
If an organization desires to conduct research with more active control over who participates and has a large budget to pay for research, which combination of research methods would best suit its situation
Answer: in-person research and mail research
Explanation:
Since the organization desires to conduct research with more active control over who participates and has a large budget to pay for research, then the combination of research methods that would best suit its situation is the in-person research and the mail research.
The in-person research is vital in engaging customers more deeply on the areas of interest and also observe how they interact with the products of the company. This is vital in gaining insights which will help in growing the business. Also, the mail research can be used to ask the customers questions relating to a particular topic.
Bailey Corporation purchased a building on December 31, 2003 for $2,500,000. The building was placed in service on January 1, 2004 and was assumed to have an estimated useful life of 50 years and a zero salvage value. Bailey uses the straight line method for computing depreciation, and all applicable depreciation has been recorded through December 31, 2017. During 2018, an examination of the building by an engineering firm revealed that the remaining estimated useful life is now 15 years. What amount should Bailey record for building depreciation expense in 2018
Answer: $120,000
Explanation:
The annual depreciation will be calculated as:
= Cost/Estimated Life
= 2500000/50
= 50000
The depreciation up to 2017 will be:
= 50000 × 14
= 700000
The book value at the end of 2017 will be:
= Cost - Depreciation up to 2017
= 2500000 - 700000
= 1800000
Then, the annual depreciation with the revised life will be:
= Book Value at the End of 2017/Remaining Life
= 1800000/15
= 120000
Therefore, the amount of depreciation for 2018 will be $120000
MC Qu. 93 A company has established... A company has established 5 pounds of Material J at $3 per pound as the standard for the material in its Product Z. The company has just produced 1,500 units of this product, using 7,700 pounds of Material J that cost $21,780.The direct materials price variance is:
Answer:
$255 Favorable
Explanation:
Direct material price variance = (Actual price - Budgeted price) * Actual quantity
Direct material price variance = ($21,780/7,700 - $3) * 7,700
Direct material price variance = ($2.83 - $3) * 1,500
Direct material price variance = $0.17 * 1,500
Direct material price variance = $255 Favorable
Ejercicios para la actividad 7.
1. Contrastar que, con el cambio de modelo de una máquina, el proceso se ha hecho más
variable. La varianza con el modelo anterior fue de 23.15. Se realizan 25 observaciones con el
nuevo modelo obteniéndose una varianza muestral
2. de 40.5. Utilice un 99% de confianza para realizar el contraste. (Contraste bilateral)
Answer:
i hope all are safe and gappy in this time take care of youreself also health first thsn any work
A partial list of Waterways' accounts and their balances for the month of November 2016 follows:
Accounts Receivable $ 275,000
Advertising Expenses 54,000
Cash 260,000
Depreciation-Factory Equipment 16,800
Depreciation-Office Equipment 2,400
Direct Labor 42,000
Factory Supplies Used 16,800
Factory Utilities 10,200
Finished Goods Inventory, November 30 68,800
Finished Goods Inventory, October 31 72,550
Indirect Labor 48,000
Office Supplies Expense 1,600
Other Administrative Expenses 72,000
Prepaid Expenses 41,250
Raw Materials Inventory, November 30 52,700
Raw Materials Inventory, October 31 38,000
Raw Materials Purchases 184,500
Rent Factory Equipment 47,000
Repairs-Factory Equipment 4,500
Salaries 325,000
A list of accounts and their values are given above. From this information, prepare a partial balance sheet for Waterways Corporation for the month of November. (List Current Assets in order of liquidity.)
Answer:
Total current assets = $697,750
Explanation:
The partial balance sheet is as follows:
Waterways Corporation
Balance Sheet (Partial)
For the month of November 2016
Details $ $
Current Assets
Cash 260,000
Accounts Receivable 275,000
Finished Goods Inventory, November 68,800
Raw Materials Inventory, November 52,700
Prepaid Expenses 41,250
Total current assets 697,750
Note:
Cash is the most liquid of assets.
Accounts receivable which should be collected within 30 to 60 days are less liquid than cash, but more liquid than inventory.
Finished Goods Inventory which is expected to be sold and converted to cash within one year, and Raw Materials Inventory which is expected to be converted to finished good within one year are more liquid than Prepaid expense.
Therefore, the least liquid among current assets’ item above is the Prepaid Expense as it is cash paid for services not yet received..
Use the cost information below for Laurels Company to determine the manufacturing costs added during the current year:
Direct materials used $5,000
Direct labor used 7,000
Total factory overhead 5,100
Beginning work in process inventory 3,000
Ending work in process inventory 4,000
Answer:
$17,100
Explanation:
Calculation to determine the manufacturing costs added during the current year
Direct materials used $5,000
Add Direct Labor $7,000
Add Total Factory overhead $5,100
Total manufacturing $17,100
($5,000+$7,000+$5,100)
Therefore the manufacturing costs added during the current year is $17,100
Read the opening story about Dunkin Donuts and identify at least three types of marketing research that Dunkin used. Fully explain if it is qualitative or quantitative research?
Answer:
Dunkin Donuts has always tried to maintain its currents customers and attract potential customer through their marketing strategies. Since the company has limited products to offer it has to be very keen on their marketing strategies to make their product successful. The company uses undifferentiated target marketing strategies so that its simple menu is available globally.
Explanation:
The old name of Dunkin Donuts was Open kettle. The company mainly focused on Donuts and Coffee. It has simple yet attractive menu since it specializes in Donuts and none of the competitors have been successful till date to offer Donuts with exact taste like Dunkin Donuts. The company struggles to promote its brand globally. The company has been successful to serve its customers in 40+ countries.
Futures contracts differ from forward contracts in that a. futures contracts are between the individual hedger and speculator. b. futures contracts are personalized, unique contracts; forwards are standardized. c. futures contracts are marked to market daily with changes in value added to or subtracted from the accounts of the buyer and the seller. d. forward contracts always require a margin deposit.
Answer:
c. futures contracts are marked to market daily with changes in value added to or subtracted from the accounts of the buyer and the seller.
Explanation:
The future cost should be different from the forward contract in the case when the future contract are considered to be marked on the daily market along the value change that are added or deducted from the buyer and seller accounts
So as per the given situation, the option c is correct
McKean Corporation authorized 500,000 shares of common stock in its articles of incorporation. On May 1, 2019, 100,000 shares were sold to the company's founders. However, on October 15, 2019, McKean repurchased 20,000 shares to settle a dispute among the founders. At this date, how many shares were issued and outstanding, respectively?
Answer:
100,000 shares and 80,000 shares
Explanation:
Calculation to determine how many shares were issued and outstanding, respectively
The shares that were issued will be 100,000 shares that were sold to the company's founders while the shares outstanding will be 80,000 shares Calculated as :
Shares outstanding=Shares issued -Shares repurchased
Shares outstanding=100,000 shares-80,000 shares
Shares outstanding =80,000 shares
Therefore the Number of shares that were issued and outstanding, respectively are:100,000 shares and 80,000 shares
A portfolio manager believes interest rates will drop and decides to sell short-duration bonds and buy long-duration bonds. This is an example of _____________ swap.
a. a pure yield pickup
b. a substitution
c. a rate anticipation
d. an intermarket spread
Answer:
C) a rate anticipation
Explanation:
A rate anticipation swap can be regarded as a bond trading strategy that is used whereby there is exchange of exchanges of bond portfolio by trader in anticipation of expected interest rate movements.
Rate anticipation swap can be regarded as trading strategy involving
bonds swapping on the basis of varying maturity dates. this bond swapping are done according to their present period as well as their movement rate prediction.
Commercial banks, savings and loan associations, and credit unions: Group of answer choices deposit their excess funds with the U.S. Treasury. accept deposits and make loans. specialize solely in loaning money for home mortgages.
Answer:
accept deposits and make loans.
Explanation:
Credit union is a form of financial institution owned by members of the union. The union provides financial services similar to the services provided by commercial banks
A commercial bank is a financial institution that accepts deposits from customers, provide loans to customers and provide financial products t costumers. Only commercial banks. deposit their excess funds with the U.S. Treasury.
A savings and loan associations is a financial institution that specializes in helping customers get residential mortgages.
The characteristic that these three financial institutions share is that they accept deposits and make loans
Why should you think of your résumé as a marketing document?
Explanation:
A résumé is a marketing document that represents you when you are not there. A résumé quantifies your accomplishments and proves your worth to your future employer by proving your worth to your previous employer.
The strategy underlying price discrimination is Group of answer choices to charge higher prices to customers who have good substitutes available to them and lower prices to customers without many substitutes available to them.. to charge everyone the same price but limit the quantity they are allowed to buy. to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand. to reduce per-unit cost by charging higher prices to those with the most inelastic demand and lower prices to those with the most elastic demand.
Answer:
to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
Requirements to practice successful price discrimination
1. The firm must have market power. If the firm does not have market power and attempts to price discriminate they would lose customers
2. The firm must have different elasticities of demand for their product in different markets. the firm should charge the higher price in the market with the less elastic demand.
3. The firm must be able to segment the market for their products
4. the firm's product should have a lot of close substitutes.
A firm's market-to-book ratio might be greater than 1.0 due to accounting reasons. An example of an accounting reason that would cause the market-to-book ratio to increase is
Answer: off-balance-sheet assets arising from investments in successful research and development programs that are expensed according to conservative accounting principles.
Explanation:
The market to book ratio refers to the financial valuation metric that is used in the evaluation of the current market value of a company relative to the book value of the company.
It should be noted that there'll be an increase in the market price of a company when there are investments which are made by the company in successful research and development programs which entails the use of the conservative accounting principles.
Payroll Entries
The payroll register for D. Salah Company for the week ended May 18 indicated the following:
Salaries $615,000
Federal income tax withheld 165,000
The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $45,000 of salaries.
For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Journalize the entry to record the payroll for the week of May 18.
May 18 Salaries Expense
Social Security Tax Payable
Medicare Tax Payable
Employees Federal Income Tax Payable
Salaries Payable
Feedback
Gross pay is the amount that employees have earned before taxes and deductions. A portion of employees' earnings are owed for such items as state and federal taxes. Net pay is also known as take-home pay.
b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.
May 18 Payroll Tax Expense
Social Security Tax Payable
Medicare Tax Payable
State Unemployment Tax Payable
Federal Unemployment Tax Payable
Answer:
A. Dr Salaries expense 615000
Cr Social security tax payable 36900
Cr Medicare tax payable 9225
Cr Employment federal income tax payable
165000
Cr Salaries payable 403875
B. Dr Payroll tax expenses 48915
Cr Social security tax payable 36900
Cr Medicare tax payable 9225
Cr State unemployment taxes payable 2430
Cr Federal unemployment taxes payable 360
Explanation:
A. Preparation of the journal entry to record the payroll for the week of May 18.
May 18
Dr Salaries expense 615000
Cr Social security tax payable 36900
(615000*6%)
Cr Medicare tax payable 9225
(615000*1.5%)
Cr Employment federal income tax payable
165000
Cr Salaries payable 403875
(615000-36900-9225-165000)
(To record the payroll for the week of May 18)
B. Preparation of the journal entry to record the payroll tax expense incurred for the week of May 18
May 18
Dr Payroll tax expenses 48915
(36900+9225+2430+360)
Cr Social security tax payable 36900
(615000*6%)
Cr Medicare tax payable 9225
(615000*1.5%)
Cr State unemployment taxes payable 2430
(45000*5.4%)
Cr Federal unemployment taxes payable 360
(45000*0.8%)
(To record the payroll tax expense incurred )
Unilever has a subsidiary in Japan. The valuation of this MNC should
rise when an event causes the expected cash flows from Japan to ____
and when JPY is expected to ____.
Answer: increase; appreciate.
Explanation:
A multinational firm is regarded as a firm that's located in different countries. It should be noted that the valuation of this multinational company should
rise when there's an event that causes the expected cash flows from Japan to increase and also when the currency JPY is expected to appreciate. Appreciate her simply means when there's an increase in the value of JPY.
