Answer: A. A.P.R. triggered by a late payment.
Explanation:
It affects the rate of A.P.R the most.
The transaction type which has the highest A.P.R is the "A.P.R. triggered by late payment". A further explanation is below.
As nothing more than a consequence for delayed payment or transactions, the maximum percentage change ratio (APR) of involvement is typically applied.The interest rate on direct deposits seems to be greater than that of the interest rate on initial transactions or settlement systems, but again not better or more than that of the interest rate on overdue installments or charges.
Thus the above response i.e., "option a" is appropriate.
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Paunch Burger has a beta of 1.2 and just paid a dividend of $2.30 that is expected to grow at 3.2%. If the risk-free rate is 3% and the market risk premium is 6%, what should be the price of the stock
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
Buxton Corp. has outstanding borrowings. One of these borrowings is nonconvertible preferred stock (cumulative) with a par value of $85 and an annual dividend rate of 6.20%. This preferred stock is currently selling for $56.50 per share. What is the yield or return (r) on this preferred stock?
a. 9.89%
b. 9.56%
c. 9.32%
d. 9.22%
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
The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?a) $60,000.b) $5,000.c) $100,000.d) $55,000.
Answer:
c) $100,000
Explanation:
Number of shares originally issued 60,000
Less: Number of shares reacquired (10,000)
Outstanding number of shares 50,000
Dividends per share declared $2
Total dividends declares $100,000 (50,000 shares * $2)
In a local NFP elementary school’s statement of cash flows, a contribution restricted for use on a new building project would be reported as:_________.A. A capital and related financing activity. B. A financing activity. C. An investing activity. D. An operating activity.
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.
PackMan Corporation has semiannual bonds outstanding with nine years to maturity and the bonds are currently priced at $754.08. If the bonds have a coupon rate of 7.25 percent, then what is the after-tax cost of d
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%
Discuss about Financial System and its impact on the strategic Financial Management
Answer:
The modern Financial System is based on a central bank that controls the monetary base (but not the money supply), and in fractional reserve banking. The implicaton of this, is that banks loan out some of the money that they obtain as deposits, and in this process they create money.
Explanation:
The Financial System is influenced by this process of money creation, because when the money that circulates in the economy (the money supply) changes, interest rates also change.
Interest rates are the price of investment, and the most important indicator that a financial manager has to take into account when making a financing decision.
Financial managers must also take into account the different types of financial institutions that exist, from hedge funds, to commercial banks, to cooperatives, and the different types of securities, from stocks, to bonds, to derivatives and futures.
Firm B has a 12% ROE. Other things held constant, what would its expected growth rate be if it paid out 25% of its earnings as dividends?
Answer:
the expected growth rate is 9%
Explanation:
The computation of the expected growth rate is shown below:
As we know that
Retention ratio = (1 - dividend payout ratio)
So,
Retention ratio = (1 -0.25) = 0.75
Now
Growth rate = Retention ratio × ROE
= 0.75 × 12
= 9%
hence, the expected growth rate is 9%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Controllable margin is defined as A.sales minus variable costs. B.sales minus contribution margin. C.contribution margin less controllable fixed costs. D.contribution margin less noncontrollable fixed costs.
Answer:
answer d is correct is correct
When offering financial products to clients, you may:
a. Omit collecting client identification documents if they are a prior client.
b. Choose which clients are offered products based on your observations and experience.
c. Refuse to accept product applications from clients who request them.
d. All of the above.
e. None of the above.
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.
The assets for BIZZ0 in 2018 were $187,300; the liabilities for that year were $275,600; and the net income was $17,700. What was the return on income for the year?
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%
Koby, age 16, works after school at FastFood from 4 p.m. until 11 p.m. On Friday night, therestaurant manager sees that Koby is exhausted, but insists that he remain until 4:30 a.m.,cleaning up, then demands that he work Saturday morning from 8 a.m. until 4 p.m. On Saturdayafternoon, as Koby drives home, he falls asleep at the wheel and causes a fatal car accident.Should FastFood be liable? What important values are involved in this issue? How does theGolden Rule apply?
Answer:
find answer in the explanation below
Explanation:
Koby is 16 and that means he is under age for a start. That initial statement makes Fastfood liable.
As it can be seen from the question, the golden rule applies to Koby's case as it is clear he has other things to do with his time.
Primarily, he is a student and that means he has school work to do alongside putting in some hours at Fastfood. But then, he still has the right to be treated right which in this case means him getting some rest. It is therefore safe to say that the manager of Fastfood is trying to take advantage of Koby and should have given him rest.
if he had gotten some rest, he wouldn't have fallen asleep while driving and been in the accident.
Cheers
Mary's Baskets Company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. There are 4,000 baskets in beginning finished goods inventory with target ending inventory of 9.000 baskets. The company keeps no work-in- process inventory. What amount of sales revenue will be reported on the 2019 budgeted income statement? A) $175,000 B) $150,000 C) $125,000 D) $55,000
Answer:
C $125,000
Explanation:
With regards to the above information, we know that the beginning and ending target inventory is the same, hence the units sold by Mary's baskets will remain at 30,000.
Sales in unit = Opening inventory in units + Production - Closing inventory
Sales in unit = 4,000 + 30,000 - 9,000
Sales in unit = 25,000
We do know that revenue is a function of sales multiplied by the selling price, which is given as $5 each.
Sales revenue = Sales in unit × Selling price
Sales revenue = 25,000 × $5
Sales revenue = $125,000
Therefore, the amount of sale revenue that would be reported on the 2019 budget income statement is $125,000
what do you mean by business organisation
Answer:
Business organization, an entity formed for the purpose of carrying on commercial enterprise.Such an organization is predicated on systems of law governing contract and exchange, property rights, and incorporation.
A seller (or provider) of goods or services to a business organization is known as a:
A Vendor.
B Payee.
C Vendee.
D Creditor.
E Debtor.
Answer:
A. Vendor.
Explanation:
This individual or company would be known as a vendor. These individual/company offer others a specific good or service for their own personal or commercial use. These individuals/companies make money by manufacturing the product and selling them to others and making a profit in the process. Usually they also sell these products in bulk which still nets them good profit and provides a cheaper price to the buyer.
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on The Jackson-Timberlake Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years?
Answer:
If investors require a return of 10.5 percent on The Jackson-Timberlake Wardrobe Co. stock, what is the current price?
P₀ = Div₁ / (Re - g)
Div₁ = $2.028Re = 10.5%g = 4%P₀ = $2.028 / (10.5% - 4%) = $31.20
What will the price be in three years?
P₃ = Div₄ / (Re - g)
Div₄ = $2.281Re = 10.5%g = 4%P₃ = $2.281 / (10.5% - 4%) = $35.37
In 15 years?
P₁₅ = Div₁₆ / (Re - g)
Div₁₆ = $3.652Re = 10.5%g = 4%P₁₅ = $3.652 / (10.5% - 4%) = $56.19
) A corporation acquires new funds only when its securities are sold in the
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.
An increase in income:________. A. changes relative prices of goods the consumer buys. B. shifts the budget constraint outward. C. shifts the budget constraint inward. D. leads to the substitution effect.
Answer: B. shifts the budget constraint outward
Explanation:
An increase in the income of a consumer will bring about an outward shift of the budget constraint. This is because when the income of a consumer rises, such consumer can buy more goods and services.
Also, a decrease in income will result into an inward shift of the budget constraint. This is because lesser goods are purchased.
A company had total sales of $610,000, net sales of $566,400, and an average accounts receivable of $96,000. Its accounts receivable turnover equals:
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
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 per year for 25 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 6% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided and round final answer to nearest whole dollar amount.)A. $5,369,011B. $6,111,151C. $5,691,151D. $10,500,000
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%
Avery Co. has $1.1 million of debt, $1 million of preferred stock, and $2.2 million of common equity. What would be its weight on debt
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
Colors of cars in a mall parking lot is?
Categorical
Numerical; discrete
Numerical; continuous
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.
Define uncertainty. What are some of the basic causes of uncertainty in engineering economy studies?
Answer:
A decision under uncertainty is a decisional problem.
Using emails to communicate asynchronously is not a good idea for all of the reasons below except ________.
a) email threads are organized.
b) too much freedom.
c) difficult to find particular emails.
d) it is easy to hide from email.
e) difficulty in finding attachments.
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.
What is the equity beta for a firm with asset beta equal to 0.9, and D/E ratio of 0.4, and tax rate equal to 35%?
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
HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of ________.
A) product line pricing
B) captive pricing
C) price bundling
D) reference pricing
E) prestige pricing
Answer:
B)) captive pricing
Explanation:
From the question, we are informed about how HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of captive pricing. Pricing is essential in business because production process isn't complete until goods reach to the consumer. pricing strategy utilize the strategy of using advantage over a product so that large volume of customers can be drawn to patronize the product. Captive product pricing can be regarded as the pricing of goods which can be described as goods that posses a “core product” as well as number of “accessory products.”
Carnes Electronics sells consumer electronics that carry a 90-day manufacturer’s warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes received $412,000 for these extended warranties (approximately evenly throughout the year). Required: 1-a. Does this situation represent a loss contingency? 1-b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warranties and any aspects of the warranty that should be recorded during the year.
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)
Joan has the following assets and liabilities: Credit card balance $1,000 Cash $200 Government bonds $3,000 Checking $300 Car loan balance $10,000 Car $15,000 What is Joan's money demand?A) $200 B) $300 C) $500 D) $1,000 E) $11,000
Answer:
C. $500
Explanation:
Money demand can be defined as the part of an assets in which a person is ready to hold as cash . The money can however be used to purchase goods or services.
Money demand can be denoted as
= Cash balance + Checking account balance.
Given that;
Cash balance = $200
Checking account balance = $300
Money demand = $200 + $300
Money demand = $500
Therefore, Joan's money demand is $500.
At December 31 year-end Connor Company has a $9,500 note from a customer. Interest of 12% has accrued for 8 months on the note. What will Connor's income statement for the year ended December 31, report for this situation? a. Nothing because the company has not received the cash yet. b. Interest Revenue of $760 c. Note Receivable of $9,500 d. Both B and C
Answer:
b. Interest Revenue of $760
Explanation:
The computation is shown below:
= Note amount × rate of interest × number of months ÷ total number of months
= $9,500 × 12% × 8 months ÷ 12 months
= $760
This amount would be represented as an interest revenue.
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.
I purchased my home for $297,000 in 2015. Today it is worth approximately $520,000. What has my compounded annual rate of return been on this investment over the five years that I have owned my home?
a. 68.35%
b. 13.67%
c. 10.98%
d. 54.9%
Answer:
A because Brainly is here for kids to cheat on.
Explanation:
Which factor would influence the premiums of health insurance?
Building size
Deductible
Elimination period
Profession
Answer:
Deductible
Explanation
The correct option is B. Plan category, the plan covers dependents, and deductibility is the factor that influences the premiums of health insurance.
What is Health Insurance?Medical and health-related costs are covered by a specific type of insurance called health insurance. Routine care, emergency care, and treatment for long-term illnesses are all partially or fully covered by health insurance.
Thus, there are many other factors that influence the health insurance premiums such as age, smoking status, region, type of plan, and if dependents are covered by the policy.
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