Answer:
c. real estate investment trust.
Explanation:
Real estate investment trust are businesses that own real estate that is used to generate revenue.
They include office spaces, apartments, hospitals, hotels, shopping malls and so on.
So when there is fund of real estate holdings that can be privately held or publicly traded on an exchange, it is a real estate investment trust.
REIT provides a long term and stable source of income as real estate properties tend to appreciate over time. They also pay lower corporate tax
4. When the actual price of a good is above its equilibrium market price, competition
among
A. buyers will force the actual price upward.
B. sellers will force the actual price upward.
C. sellers will force the actual price downward.
D. buyers will force the actual price downward.
E none of the above.
Answer:
C.
Explanation:
Because naturally within a market the equilibrium price is trying to be reached, (besides price ceilings and floors imposed by the government), Sellers will naturally push the price downwards because they must compete with each other to make a living. Thus answer C. is correct.
Laura Cervantes is a currency speculator and she sells eight June futures contracts for 500,000 pesos at the futures price of 0.10773 $/MXN.
a) What is the value of her position at maturity if the ending spot rate is $0.12002/MXN?
b) What is the value of her position at maturity if the ending spot rate is $0.09802/MXN?
Answer:
500,000 Pesos (MXN) is the June Futures Contract
Number of Contracts Sold = 8
Initial Exchange Rate = 0.10773$ / MXN
Initial Position Value = 8 x 500000 x 0.10773
Initial Position Value = $430,920
i. Final Exchange Rate = $0.12002 / MXN
Final Position Value = 8 x 500000 x 0.12002 = $480,080
Net Position Value = 430920 - 480080 = - $49,160
ii. Final Exchange Rate = $0.09802 / MXN
Final Position Value = 8 x 500000 x 0.09802 = $392,080
Net Position Value = 430920 - 392080 = $3,884
Raven Company has a target of earning $71,200 pre-tax income. The contribution margin ratio is 16%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $38,400
Answer:
$685,000
Explanation:
First and foremost, the formula for determining the contribution margin ratio can be used to determine the target dollars sales as shown below:
contribution margin ratio=contibution margin/sales revenue
contribution margin ratio=16%
contribution margin required=pretax income+fixed costs
contribution margin required=$71,200+$38,400=$109,600
16%=$109,600/sales revenue
16%*sales revenue=$109,600
sales revenue=$109,600/16%
sales revenue=$685,000
Hello I need help with this question
Classify each statement according to whether it will increase the equilibrium level of human capital investments or decrease the equilibrium level of human capital investments.
Answer:
Congress votes to double the amount of federally subsidized student loans - this will increase the equilibrium level of human capital investments because higher education is one of the most effective ways that people can use to increase their human capital.
There is a decrease in student learning capacities - decrease the equilibrium level of human capital investments because a lower learning capacity will prevent students from reaching their full potential.
Suburban families see a decrease in wealth due to a particularly poor performing sotck market - decrease because suburban families will have less income and wealth to spend, including expenditures in education and training.
The president signs into a law a bill that will reduce discrimination in the labor market - increase because workers that were previously kept from finding employment due to discrimination will now be able to obtain jobs and acquire working experience, this increases their human capital.
The natural talents and abilities of graduating high school students rise - increase because high school graduates have become more naturally skilled and this will help them through college and in their future jobs.
Charlotte's Crochet Shoppe has 10,700 shares of common stock outstanding at a price per share of $63 and a rate of return of 11.13 percent. The company also has 320 bonds outstanding, with a par value of $1,000 per bond. The pretax cost of debt is 5.89 percent and the bonds sell for 93.6 percent of par. What is the firm's WACC if the tax rate is 40 percent?
a. 8.79%
b. 8.49%
c. 9.93%
d. 8.33%
e. 9.52%
Answer:
a. 8.79%
Explanation:
WACC = Weight of debt * Pretax cost * (1 - Tax) + Weight of Equity * Cost of Equity
Value of Equity = 10,700 * $63 = $674,100
Value of debt = 320 * $1000 * 93.6% = $299,520
Weight of Debt = $299,520/($299,520 + $674,000) = 30.76%
Weight of Equity = $674,000/($299,520 + $674,000) = 69.24%
WACC = 30.76% * 5.89% * (1 - 40%) + 69.24% * 11.13%
WACC = 30.76% * 5.89% * 0.60 + 69.24% * 11.13%
WACC = 0.010870584 + 0.07706412
WACC = 0.087934704
WACC = 8.79%
Economies of scale occur when a firm's long-run average total cost curve is ___________________. a. upward sloping.b. vertical.c. downward sloping.d. horizontal.
Answer:
The correct answer is the option C: Downward sloping.
Explanation:
To begin with, the concept known as "Economies of Scale" is a vary famously term in the microeconomics theory due to the fact that it refers to the particular situation that a company achieves when their costs are at the lowest possible point in the long run becuase of the great volumen in production that the organization is starting to handle so that means that the more they start to produce the less the amount that the company will have to spend in the costs. Therefore that the curve in the graphic will be downward sloping due to the decrease of the prices in the costs implicating the amount that the company is handling.
Downing Company issues $4,000,000, 8%, 5-year bonds dated January 1, 2020 on January 1, 2020 (ten periods). The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue?
Answer:
$4,525,123.84
Explanation:
The computation of the proceeds from the issuance of the bond is shown below:
Given that
Face Value of Bonds = $4,000,000
Annual Coupon Rate = 8%
So, Semiannual Coupon Rate = 4%
So, Semiannual Coupon = 4% × $4,000,000
= $160,000
Time to Maturity = 5 years
So, Semiannual Period = 10
And,
Annual Interest Rate = 5%
So, Semiannual Interest Rate = 2.5%
Now the proceeds from the issuance of the bond is
= $160,0000 × PVIFA(2.5%, 10) + $4,000,000 × PVIF(2.5%, 10)
= $160,000 × 8.752064 + $4,000,000 × 0.78120
= $1,400,330.23 + $3,124,793.61
= $4,525,123.84
What is the minimum nominal rate of return that you should accept if you require a 4% real rate of return and the rate of inflation is expected to average 3.5% during the investment period
Answer:
7.5%
Explanation:
real interest rate = nominal interest rate - inflation rate
nominal interest rate = real interest rate + inflation rate = 4% + 3.5% = 7.5%
inflation rate refers to the general increase in the price level while the real rate of return is the rate that investors seek after discounting inflation, i.e. the real gain of taking an investment.
In 2020, Bargain Shop reported net income of $5.7 billion, net sales of $175 billion, and average total assets of $75 billion. What is Bargain shop's return on total assets?
Answer:
7.6%
Explanation:
With regards to the above, the return on total assets is calculated as;
Return on total assets = Net income ÷ Average total assets.
Given that;
Net income = $5.7 billion
Average total assets = $75 billion.
Therefore,
Return on total assets = $5.7 billion ÷ $75 billion
Return on total assets = 7.6%
Bargain's shop return on total assets is 7.6%
Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute the net tax payment or savings if you sell the equipment for $271,400.
Answer: Savings on taxes of -$50,008
Explanation:
Book Value = $450,000
Selling Price = $271,400
Book Value is more than selling price so there is a Capital loss.
Capital gains tax will therefore become a tax saving of;
= 28% * (271,400 - 450,000)
= -$50,008
In a perfectly competitive market, state the condition (clearly) that causes firms to enter the market? When does the entry and exit of firms from the perfectly competitive industry end? (micro economic question)....write it in your own words :)
The price of TSC stock will be either $42 or $46 at the end of the year. Currently, T-bills yield 4.1 percent and TSC sells for $43 a share. What is the per share value of a one-year TSC call option if the exercise price is $45 per share?
a. $1.03
b. $.66
c. $.72
d. $.81
e. $0
Answer:
b. $.66
Explanation:
The computation of the per share value for the one year is
Given that
Current Price = $43
Possible Prices = $42 and $46
Now
u = [($46 - $43) ÷ $43] + 1
= 1.06977
And
d = 1 - [($42 - $43) ÷ $43]
= 0.9767
And,
Risk-Free Rate = T-Bill Rate = Rf = 4.1 %
Now the up move price probability is
= [(1 + Rf) - d] ÷ [u - d]
= [(1.041) - 0.9767] ÷ [1.06977 - 0.9767]
= 0.69088
And,
Exercise Price = $ 45
Now
If the Price is $42, so Payoff = $0
And
if the Price is $46, so Payoff =is
= ($46 - $45)
= $1
Finally the call price is
= [0.69088 × 1 + (1 - 0.69088) × 0] ÷ 1.041
= $0.66367
= $0.66
Assume that today's date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000. How much you will pay for the bond if you purchased the bond today?
Company Price Coupon Rate Maturity Date YTM Current Yield Rating
Robin Hood 134.569 5.253 2-15-2040 - - D
Answer: $1,345.69
Explanation:
The price of the bond today can be calculated by multiplying the Par Value of the bond with the quoted percentage price of the bond today.
Quoted Percentage price = 134.569%
Price of bond = 1,000 * 134.569%
= $1,345.69
If a central bank wishes to reduce inflation, it should announce its intentions and follow through with them, thereby using _________ monetary policy.
A. visible
B. integral
C. credible
D. authoritative
Answer:
C. credible
Explanation:
A credible monetary policy is the policy where the problem of inconsistency of time can be avoided also the biasness of the inflation also it keeps the inflation under a control.
Therefore in the case when the central bank wants to decrease the inflation so they are using the credible monetary policy
Hence, the correct option is C.
From the list of universality skills,gey the aspects which you think you have embody.
Answer:
i didn't got ur question..
Nellie Raysan’s monthly budget allows her to spend $150 for entertainment. In February she spent $27. How much more or less did she spend than budgeted?
Right Hand inc.'s company structure is designed to provide focus to each distinct industry the company serves. This is an example of a __ structure.
Answer:
Product
Explanation:
The product structure is a structure that gives an overview of the product to the customers and according to the customer needs and wants the product could be customized. Also the company have to see the customer taste and preferences and modify there products from time to time so that the company could able to accomplish its sales target
Here in the question, the company focused on each and every different industry that the company serves
So this represents the product structure
The purpose of using a balanced scorecard is for:_______.a. companies to keep track of their wins and losses. b. companies to keep track of their assets and their debits. c. companies to get a better understanding of their balance sheet. d. companies to make sure their business activities align with strategy. e. companies to compare themselves with their competitors.
Answer:
a. companies to keep track of their wins and losses.
Explanation:
Blue Spruce Corp. incurs the following expenditures in purchasing a truck:
Cash price $53,000
Accident insurance $3,800
Sales taxes $3,400
Motor vehicle license $100
Painting and lettering $400.
What is the cost of the truck?
Answer:
$56,800
Explanation:
The cost of the truck is calculated as;
= Cash price + Sales tax + Painting and lettering
Given that;
Cash price = $53,000
Sales tax = $3,400
Painting and lettering = $400
= $53,000 + $3,400 + $400
= $56,800
Therefore, cost of the truck is $56,800.
* Note
The expenditures for accident insurance and motor vehicle license will not be added to the cost of the truck.
Organizations must use software tools to process data into meaningful information to make _____ useful.
Answer:
data warehouses
Explanation:
In the science of computing, we can also call a data warehouse, to be an enterprise data warehouse, this is a system that is used for reporting and also analysing data, a data warehouse is known to be a very central part of business intelligence.
Organizations must use software tools to process data into meaningful information to make data warehouses useful.
Summarize how you are feeling about your progress in this course.
State what your expectations are from me going forward.
Answer:
The definition becomes outlined throughout the clarification subsection according to the particular circumstance.
Explanation:
I gained a lot of knowledge mostly during courses on how computer networks work. So what were the fundamental things that drive methodologies? Everything just feels nice because according to a certain design, we were also tasked with making our same algorithms, especially considering that the running time would be much less. I want the assignment to concentrate a little bit on professionals so that we can understand how well these algorithms work in practice experiences.A company is experiencing accessibility issues reaching services on a cloud-based system. What monitoring tools should be used to locate possible outages
A network analyzer is a useful tool, helping you do things like track traffic and malicious usage on the network.
Lon's GPS, Inc., orders 500 Class A widgets to be installed in GPS units it is manufacturing. When delivery is made on Monday, the widgets delivered are Class B. Lon's signs a receipt accepting the nonconforming shipment. The next day, Lon's installs some of the Class B widgets and finds that they perform with half the accuracy of the Class A widgets. What, if any, options does Lon's have?
Answer and Explanation:
In the most cases when a shipment of goods are accepted i.e. not confirmed so here the buyer could adjust the prices also he has the right to reject the goods.
In the given case, UCC provides that the goods that are non confirmed is accepted and these goods want to impair so the buyer has the right to revoke the acceptance this can be done with the reasonable time
A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are in parentheses):Cash $ 33,000 Liabilities $ 50,000Other assets 100,000 Playa, capital (40%) 24,000Bahia, capital (30%) 29,000Arco, capital (30%) 30,000Total $ 133,000 Total $ 133,000During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. What amount of cash does each partner receive as a result of this liquidation?Multiple ChoicePlaya, $16,000; Bahia, $23,000; Arco, $24,000.Playa, $19,200; Bahia, $14,400; Arco, $14,400.Playa, $6,000; Bahia, $4,500; Arco, $4,500.Playa, $10,000; Bahia, $18,500; Arco, $19,500.
Answer:
Playa, $10,000; Bahia, $18,500; Arco, $19,500.
Explanation:
Cash $33,000
Other assets $100,000
Total $133,000
Liabilities $50,000
Playa, capital (40%) $24,000
Bahia, capital (30%) $29,000
Arco, capital (30%) $30,000
Total $133,000
other assets sold for $80,000 resulting in a $20,000 loss
cash = $33,000 + $80,000 = $113,000
- liabilities ($50,000)
$63,000
- liquidation expenses ($15,000)
remaining cash $48,000
total loss = $20,000 + $15,000 = $35,000
partners' share of loss:
Playa = $14,000
Bahia = $10,500
Arco = $10,500
remaining capital accounts:
Playa = $24,000 - $14,000 = $10,000
Bahia = $29,000 - $10,500 = $18,500
Arco = $30,000 - $10,500 = $19,500
To this day, many companies believe that service is a cost rather than a revenue producer. Why might they hold this view? How would you argue the opposite view?
Answer: Difficulty involved in tracing the link between service and financial returns.
Explanation:
Many companies believe that service is a cost rather than a revenue producer due to the following reasons;
- There is this difficulty in tracing the link between service and financial returns.
- Profits are not directly linked to service provided most times, so it seems as though the service rendered was a cost rather than a revenue
- When service is rendeded most times, the results are not seen immediately, as it would require time to get tvalue and profit for what was done.
When evaluating an investment, the MNC should consider the ____________ cash flows generated by the project.
a. total
b. variable
c. incremental
d. fixed
Answer: c. Incremental
Explanation:
Simply put incremental cashflow is the additional cashflow that accrues to a company when it takes on a new project. The Multinational company should therefore consider this when they are accepting a project.
If the new project has a positive incremental cashflow, it will add to the cashflows of the company and so should be initiated as opposed to those with negative incremental cashflows.
Use the graph to answer the following:
As the supply shifts from $1 to S2, what can be inferred about the quantity demanded?
es =)
A)
The quantity demanded will increase.
B)
The quantity demanded will decrease.
0)
The quantity demanded will not be affected.
D)
The quantity demanded can not be determined.
Answer: I assume C
Explanation: Supply curve is the supplier’s willingness and ability to supply whereas demand is to do with consumers. So a change in supply affects the supplier not the consumer, so really Quantity supplied should change, not quantity demanded.
Because nonprofit organizations do not have a conventional __________, managers may struggle with the question of what constitutes results and effectiveness.
Answer:
bottom line
Explanation:
In simple words, a bottom line refers to the net income that appears on the bottom of the income statement of the year. Since the non profit organisation works for the betterment of the society they do no possess it.
The lack of bottom line results in difficulties for the managers to handle the operations and to take decisions regarding operations that results in operational effectiveness as there is no parameter to judge the current process.
Jackie is considering obtaining a mortgage of $333,000.A lower APR is available,but she must pay 1.75 points to buy the rate down.How much must Jackie pay in dollars?
A) $1,357
B) $3,300
C) $5,828
D) $8,333
The current carrying value of Marigold’s $811000 face value bonds is $806000. If the bonds are retired at 105, what would be the amount Marigold would pay its bondholders?
Answer:
$846,300
Explanation:
since the face value of the bonds is $806,000 and they are retired at 105, the company will pay $806,000 x 1.05 = $846,300
the journal entry to record this transaction would be:
Dr Bonds payable 806,000
Dr Premium on bonds payable 5,000
Dr Loss on redemption of bonds 35,300
Cr Cash 846,300