Answer:
$76,800
Explanation:
Calculation for the amount of Accounted Receivables on the October 31 budgeted balance sheet
Accounted Receivables on the October 31 budgeted balance sheet=(60% *256,000* 50%)
Accounted Receivables on the October 31 budgeted balance sheet= $76,800
Therefore the Accounted Receivables on the October 31 budgeted balance sheet will be $76,800
Sue now has $490. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?
Answer
a.
$1,148.14
b.
$837.58
c.
$941.10
d.
$1,157.55
e.
$724.64
Answer:
c.$941.10
Explanation:
Calculation for How much would she have after 8 years
Using this formula
FV = PV(1+i)^n
FV represent future value
PV represent present value
i represent interest rate
n represent number of periods
Let plug in the formula
FV = 490(1 + .085)^8
FV= $941.10
Therefore How much would she have after 8 years will be $941.10
Levine Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%. What is the investment's coefficient of variation?
a. 0.67
b. 0.73
c. 0.81
d. 0.89
e. 0.98
Answer:
A)0.67
Explanation:
Coefficient of variation can be regarded as the method that is usually devices in the assessment of the total risk per unit of return in a particular investment.
To calculate the investment's coefficient of variation, we use the expresion below
Coefficient of variation = standard deviation/expected return.
Given:
expected return = 15%
standard deviation = 10%.
Coefficient of variation =10/15
= 0.67
Hence, the investment's coefficient of variation is 0.67
True/ False In Alex Tabarrok’s TED talk, he mentions, "innovative ideas are driving growth within the global economy more than ever before."
Answer:
True
Explanation:
The man Alexander Taborrak is a Canadian/American economist. He is a university professor and also a director of research.
The correct answer to this question is true. As he mentioned the importance of innovation and also the importance of creativity and still on the topic, he went on to make the statement that that the best is yet to come as 'innovation ideas are the driving growth of the economy as a whole'.
If the French euro devalued by 17% against the U.S. dollar, this is equivalent to a revaluation of the dollar against the euro by:________.A) 17%B) 16.31%C) 20.48%D) 17.54%
Answer:
C) 20.48%
Explanation:
I will use an example to show this:
1€ = $1
if the euro depreciates by 17%, then the exchange rate will be 0.83€ = $1
in order for the euro to recover its previous value against the dollar, it needs to increase 0.17€ / 0.83€ = 0.2048 = 20.48%
in other words, a 17% depreciation is equivalent to a 20.48% revaluation.
Which of the following would be most likely associated with the expansionary phase of the economic business cycle?
)
A)
unemployment rate is high
B)
inflation is at its highest level
businesses produce more and hire workers
D)
business profits are on the decline
Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
WACC: 11.00%
Year 0 1 2 3
Cash flows -$800 $350 $350 $350
Answer:
the project's MIRR is 13.50 %.
Explanation:
MODIFIED INTERNAL RATE OF RETURN (MIRR)
-It is the rate that causes the Present Value of the Terminal Value (Future Cash flows at the end of the Project) to equal Present Value of Cash outflows.
-MIRR assumes a reinvestment rate at the end of the project
The First Step is to Calculate the Terminal Value at end of year 3.
Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)
= $350 x (1.11) ^ 2 + $350 x (1.11) ^ 1 + $350 x (1.11) ^ 0
= $431.24 + $388.50 + $350.00
= $1,169.74
The Next Step is to Calculate the MIRR using a Financial Calculator :
(-$800) CFj
0 CFj
0 CFj
$1,169.74 CFj
Shift IRR/Yr 113.50 %
Therefore, the MIRR is 13.50 %
Assume that England and Spain can switch between producing cheese and producing bread at a constant Labor Hours Needed to Make 1 Unit of Number of Units Produced in 24 Hours Cheese Bread Cheese BreadEngland 2 3 12 8Spain 3 6 8 4Assume that England and Spain each has 24 labor hours available. If each country divides its time equally between the production of cheese and bread, then total production is:_________. a. 10 units of cheese and 6 units of bread. b. 25 units of cheese and 7.5 units of bread. c. 20 units of cheese and 12 units of bread. d. 12 units of cheese and 8 units of bread.
Answer:
a. 10 units of cheese and 6 units of bread.
Explanation:
Total there are 24 labor hours
So, for each there is 12 hours
Now the distribution is as follows
For england
= 12 ÷ 2 + 12 ÷ 3
= 6 units + 4 units
= 10 units
For Spain
= 12 ÷ 3 + 12 ÷ 6
= 4 units + 2 units
= 6 units
Hence, the correct option is a
And, the same is to be considered
All other options are wrong
Lionel works for an energy company interested in drilling for oil off the coast of a small island. The representative for the local fishing industry, Rochelle, says that locals are vigorously opposed to Lionel’s idea. A town meeting is held. Lionel explains how his company is dedicated to practicing the safest drilling techniques. He explains that oil piped from the ocean’s floor is purer and that it can be harvested in a more efficient way than an oil rig on land. Lionel also emphasizes how much the trucks carrying fish to the markets all over the country would save if local oil was able to be used. Rochelle fires back that in the past, serious accidents with offshore oil drilling have been reported. She points out that if there were a spill, the resulting death of fish would cost the local fisherman their livelihood. Local opinion on the issue is split. Before the town agrees to side with Lionel’s energy company or Rochelle’s local fish industry, officials order a report from a biotechnologist. Everyone agrees to go with what the biotechnologist recommends. Which side do you think the biotechnologist will agree with? Why?
hurry please
Answer:
Rochelle:
Rochelle because Because her oil company is safer than Lionel because if there were an oil spill the damage would be huge and it would damage the fish while if they take on Rochelles's idea, they can keep the fish healthy and happy.
The biotechnologist will likely agree with Rochelle's side, as the risks of offshore oil drilling are well-documented.
In the past, there have been many accidents that have resulted in oil spills, which can have devastating consequences for the environment and the people who rely on it for their livelihood.
Even if Lionel's company is committed to using the safest drilling techniques, there is always the possibility of an accident. And even a small spill can have a significant impact on the environment. For example, the Deepwater Horizon oil spill in the Gulf of Mexico in 2010 released millions of gallons of oil into the ocean, causing widespread damage to marine life and coastal communities.
The biotechnologist will also likely consider the economic impact of offshore oil drilling. While Lionel argues that local oil would be more efficient to transport, it is important to consider the potential costs of a spill. If there were an accident, the fishing industry would likely be devastated, and the local economy would suffer as a result.
In conclusion, the biotechnologist is likely to agree with Rochelle's side, as the risks of offshore oil drilling outweigh the potential benefits.
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In its first year of operations Best Corp. had income before tax of $540,000. Best made income tax payments totaling $177,000 during the year and has an income tax rate of 30%. What was Best's net income for the year?
Answer:
$378,000
Explanation:
Best Corp. has income before tax of $540,000.
The tax rate is 30%. the amount of tax will be 30% of $540,000.
= 30/100 x $540,000
=0.3 x 540,000
=$162,000
Tax amount = $162,000.
Net income = Income before tax - tax amount
=$540,000 - $162,000
=$378,000
When benchmarking measures against the best levels of performance, these best levels may be found:A. inside the organization.B. outside the organization.C. inside and outside the organization.D. None of these is correct.
Answer:
C. inside and outside the organization
Explanation:
Benchmarking is the process in which the company compared its products and processes with the other companies to measure its performance.
But for the best performance level here we have to considered it for both internal and outside organization that involves the customers, competitors, suppliers, etc
Therefore the correct option is c
And, the same is to be considered
At the beginning of the current period, Rose Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000 (credit).During the period, it had net credit sales of $800,000 and collections of $763,000.It wrote off as uncollectible accounts receivable of $7,300.However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period.Uncollectible accounts are estimated to total $25,000 at the end of the period.(Omit cost of goods sold entries)Required:(a) Prepare the entries to record sales and collections during the period.(b) Prepare the entry to record the write-off of uncollectible accounts during the period.(c) Prepare the entries to record the recovery of the uncollectible account during the period.(d) Prepare the entry to record bad debt expense for the period.(e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.
Answer:
(a) Prepare the entries to record sales and collections during the period.
Dr Accounts receivable 800,000
Cr Sales revenue 800,000
Dr Cash 763,000
Cr Accounts receivable 763,000
(b) Prepare the entry to record the write-off of uncollectible accounts during the period.
Dr Allowance for doubtful accounts 7,300
Cr Accounts receivable 7,300
(c) Prepare the entries to record the recovery of the uncollectible account during the period.
Dr Accounts receivable 3,100
Cr Allowance for doubtful accounts 3,100
Dr Cash 3,100
Cr Accounts receivable 3,100
(d) Prepare the entry to record bad debt expense for the period.
Dr Bad debt expense 20,200
Cr Allowance for doubtful accounts 20,200
(e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.
Accounts receivable ending balance = $200,000 + $800,000 - $763,000 -$7,300 + $3,100 - $3,100 = $229,700
Allowance for doubtful accounts ending balance = $25,000
Allowance for doubtful accounts is a contra asset account that decreases the net balance of accounts receivable: accounts receivable = $229,700 - $25,000 = $204,700
Journal entries are the entries that record and maintain the financial transactions of the firm whether credit or cash. All the transactions that take place in the firm whether be it incoming or outgoing are recorded in the book of entries as the credit and the debit account.
The answers for the subparts a, b, c, d, d, and e are attached below.
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Customer groups represent different segments if: ___________.a. Their needs require different products/services or different prices. b. Other elements of the canvas need to change in order to reach them. c. They can be categorized into different groups. d. Distinctions only matter if tailoring parts of the business to reach some customers makes it more difficult to reach other customers.
Answer:
a. Their needs require different products/services or different prices
Explanation:
A customer segment is a term in business that is used to describe a group of consumers with identical or related needs, behaviors, or other characteristics. For example Mass Market, Niche Market, etc.
However, customer groups represent separate segments based on the following:
1. their needs mandate and justify a distinct offer
2. they are sold through various distribution means.
3. they need different types of connection or arrangement.
4. they are ready to pay for various items of the offer
Which displays the data while retaining all the properties of the charts?
Answer:
The appropriate answer is "Pivot table and the straight table".
Explanation:
Without statements, a pivot table could be described, creating a perspective vision to navigate several dimensional depths or rates. This same straight table distinguishes again from pivot table format throughout that this was not capable of showing subclasses and because the definition classification would be displayed throughout the form of such a document, although each row includes the qualities and quantities of the domain.Consider the following probability distribution of returns for Alpha Corporation:________. Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR $25 $35 40% 25% $25 0% 50% $20 -20% 25% The standard deviation of the return on Alpha Corporation is closest to:_______. a. 22.4% b. 19.0% c. 21.8% d. 19.4%
Answer:
c. 21.8%
Explanation:
Note: B = Year beginning stock, C = Year end stock price, D = Dividend, E = Holding Period return, F= Holding Period return*Probability, G = (Holding Period return - Expected return)^2, H= Probability * (Holding Period return - Expected return)^2
Probability B C D E F G H
25% $25 $35 - 40% 10% 0.12250 0.03063
50% $25 $25 - 0% 0% 0.00250 0.00125
25% $25 $20 - -20% -5% 0.06250 0.01563
Expected return = 5% 4.75%
Holding period return = (Price at year end +dividend -Price at year beginning)/Price at year beginning
Variance = 4.75%
Standard deviation = √(variance)
Standard deviation = √4.75%
Standard deviation = 21.8%
with relavant examples discuss the intangible business property that is protected by law and which an entrepreneur should consider when starting up a business
Answer:
While intangible assets have no physical shape or size, they pack lots of power for your business. If you and your employees have worked hard to create trademarks, patents, or copyrights, for example, you can use these assets in several ways to grow your business or increase business profit.
BUSINESS LAW & TAXES GLOSSARY
Making Intangible Assets Work For Your Business
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BY JEAN MURRAY
Updated October 27, 2018
While intangible assets have no physical shape or size, they pack lots of power for your business. If you and your employees have worked hard to create trademarks, patents, or copyrights, for example, you can use these assets in several ways to grow your business or increase business profit.
What are Intangible Assets?
An Intangible Asset is a business asset which has no material substance. Intangible assets can be found in all areas of a business. For example:
Technology, like technical manuals, engineering processes, computer software
Customer relationships,
Contracts, franchises, licenses, and permits
Trained and competent workers (called workforce in place)
Some intangible assets are intellectual property. That is, they are specifically created by individuals and protected by laws from being stolen. Examples of intellectual property are trademarks, service marks, copyrights, and patents.
Customer relationships, including goodwill (the value of customer relationships),
Trade secrets, brand recognition, and proprietary business processes ("the way we do things in this company")
Marketing and advertising campaigns and materials
Location-related assets like land, water, and mineral rights.
How to Use Intangible Assets
Selling Intangible Assets
Some general intangibles, like business processes, can be packaged and sold. Create and sell a book on "the way we do things at XYZ company," with examples of how you did it. You don't have to give away all of your trade secrets, though. Just those that can be translated into other types of businesses.
You can also sell a copyright. Musicians often sell a music copyright, but more often they license the rights. These licenses are called Creative Commons Licenses.
Use Them to Increase Value in the Sale of Your Business
Goodwill is an important asset in the sale of a business. In a business sale, particularly one in which you are selling the business as a going concern, goodwill is the difference between the fair market price or book value of all the business assets and the sale price.
Other general intangible assets and intellectual property may also be valued and included in the selling price of a business.
License or Assign Assets Like Patents, Copyrights, and Trademarks
If your business has patents or trademarks, you can license the patent rights to someone, who can produce products from them. You can receive royalties on a continuing basis and set up criteria for use of the products made from these assets.
You may also want to consider assigning an asset, as a permanent sale.
Amortize Intangible Assets
Amortization is a calculation which allows you to spread out the expense of an intangible asset over its useful life, instead of capitalizing it in just one year. Amortization works like depreciation. Having expenses in several years allows you to reduce your business income during these years, thus reducing your business tax bill.
Under Section 197 of the Internal Revenue Code, the IRS designates certain intangible assets that can be amortized over 15 years and other intangible assets which cannot be amortized. The complete list is on Section 197 Intangible Assets.
Getting Help from an Intellectual Property Attorney
For most of these ways to use your intangible assets, you will need to hire a special attorney called an intellectual property lawyer, who can help you navigate the tricky world of selling and licensing.
Disclaimer: The information in this article, and on this site, is general in nature and is not intended to be tax or legal advice. Every business is unique, and intellectual property laws and regulations change frequently. Seek legal and tax advice before making decisions that might affect your business.
Answer:
Explanation:
Give the three benefits of using ms powerpoint presentation write your answer on your notebook
XYZ company is analyzing a proposed project. The company expects to sell 1,500 units, ±3 percent. The expected variable cost per unit is $220 and the expected fixed costs are $438,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, ±2 percent. What is the sales revenue under the worst-case scenario?
Answer:
$922,557.30
Explanation:
Sales revenue = Quantity sold * Price
a. Worst case quantity = 1500*97% = 1455
b. Worst case price = 647*98% = $634.06
Sales revenue under worst case = 1455*$634.06
Sales revenue under worst case = $922,557.3
A shirt manufacturer buys cloth by the 100 yard roll from a supplier. For setting up a control chart to manage the irregularities (e.g., loose threads and tears) the following data was collected from a sample provided by the supplier.
a. Determine the c¯ , Sp, UCL and LCL for a c -chart with z = 2. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)
Answer: see attachments
Explanation:
For a c -chart with z = 2 (irregularities in 10 samples) ; c¯ = 4.3, SP = 2.07, UCL = 8.45, LCL = 0.15.
What do you mean by Sample?A sample is a condensed, controllable representation of a larger group. It is a subgroup of people with traits from a wider population.
Calculate the average irregularities per sample
Total irregularities in 10 samples = 43
No of samples = 10
Average irregularities / sample c¯ =43/10 = 4.3
This is the center line of the control chart denoted by
Sp = sqrt(4.3) = 2.07
Assuming Z value for control chart = 2; Since this is not mentioned here
UCL = 4.3 + z
UCL = 4.3 + 2*
UCL = 8.45
LCL = - z
LCL = 4.3 - 2*
LCL = 0.15
Therefore, c¯ = 4.3, SP = 2.07, UCL = 8.45, LCL = 0.15.
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The following are budgeted data: January February March Sales in units 15,000 20,000 18,000 Production in units 18,000 19,000 16,000 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:______.A) 20,400 pounds.B) 19,600 pounds.C) 18,600 pounds.D) 18,400 pounds.
Answer: 18400 pounds
Explanation:
Based on the information given in the question, the purchase of raw material for February would be budgeted to be:
= (19000 × 1) + (16000 × 1 × 20%) - (19000 × 1 × 20%)
= 19000 + 3200 - 3800
= 18400 pounds
Therefore, purchases of raw materials for February would be budgeted to be 18400 pounds.
Identify and explain the dimensions of Iqra University’s culture, ranging from high level to low level for each dimension of culture.
The correct answer to this open question is the following,
The dimensions of Iqra University’s culture are the following.
Iqra University is a private university in Pakistan, and one of the most prominent colleges in the Pakistan education system.
The most important dimension of its culture is to provide high-quality education to its students. This university tries to match the graduates with the always-changing market necessities in Pakistan.
Another important aspect is that school teachers instill critical thinking abilities in each of their students because as part of its culture, they want to help students think wisely in a complicated world in order to choose the best decision and action.
One key aspect of its culture is ethics. The University put emphasis on moral values as a way to make good decisions, not only in business but in life.
Stock Y has a beta of 1.10 and an expected return of 13.15 percent. Stock Z has a beta of .80 and an expected return of 6 percent. If the risk-free rate is 5.0 percent and the market risk premium is 7.6 percent, what are the reward-to-risk ratios of Y and Z?
Answer:
For Y = 7.31%
For Z = 1.25%
Explanation:
The computation of reward-to-risk ratios of Y and Z is shown below:-
Reward to Risk Ratio = (Expected Return of Security - Risk free Return) ÷ Beta of Security
Reward to Risk Ratio Y = (13.05% - 5%) ÷ 1.10
= 7.31%
Reward to Risk Ratio Z = (6% - 5%) ÷ 0.80
= 1.25%
hence, the same is to be considered
Please write at least 400 word reply.
British grocery retailer Tesco isnât accustomed to failure, but after spending five years and about $1.61 billion, Tesco managers began preparing to sell or close the companyâs 199 Fresh & Easy markets and get out of the United States for good. Fresh & Easy was a novel format for Americansâstores that were larger than convenience stores but smaller than supermarkets and that focused on selling fresh foods. As it turned out, Americans found the format neither fresh nor easy. Managers imported British favorites instead of adapting to American tastes, and each store carried the same selection of prepackaged meals and other products, no matter its location. There was no deli section where food could be made to order. Prepackaged sandwiches are commonplace to the British, but to American shoppers they seemed like something from a vending machine. The timing didnât help either. Fresh & Easy opened in the United States just before the recession devastated many of the areas in California, Arizona, and Nevada where it located its earliest stores. The chain never turned a profit.
Case Question
Based on this caselet and the concepts learned in this topic, which kind of international strategy do you think Tesco was applying in America? Tesco has now decided to open its stores in India. As a manager at Tesco, how will you do things differently this time to save the company from being a failure in India?
Answer:
1. Tesco was applying a standardization strategy in America. It treated the US domestic market as if it were the same as the British domestic market. It failed to recognize that American shoppers' tastes are different. Again, it preferred to deal with prepackaged food, an offering that is not very agreeable to the American shoppers. It also failed to domesticate the sources of its supply of grocery, preferring to import from Britain. Tesco should have purchased the grocery from the local market to make them fresh and agreeable to the local taste.
2. I will advise that the stores that are opened in India should not be patterned on the failed American strategy. Tesco should deploy a multidomestic international strategy by customizing its products, stores, and processes to the Indian market. The aim is to meet the taste of Indian shoppers. Tesco must understand that Indians prefer cooking their meals.As a result, the company must not delve into prepackaged food, but concentrate on selling Indian grocery and spices.
Explanation:
Companies employ a standardization strategy by treating the whole world as one market with little meaningful variation with the assumption of meeting people’s needs with one product. This strategy is best for some standardized products like equipment. Here, there is high global integration of markets with low local responsiveness.
On the other hand, multidomestic strategy is employed by companies to customize products or processes to the specific conditions in each country and to meet local customer tastes. For grocery shops that require the products to be fresh, a multidomestic strategy would be preferred. This strategy employs high local responsiveness with high global integration.
A change in which of the following will cause the aggregate demand curve to shift?
A)
energy costs
B)
productivity of workers
C)
regulations
D)
consumer spending
Answer:
D) consumer spending
Explanation:
The aggregate demand is the total of all goods and services that consumers are willing and able to buy in the economy in a given period. It is the demand for all goods and services in the entire country per period. Price variation usually causes movements along the demand curve.
Other factors that influence governments, firms, and household expenditures cause the aggregate demand curve to shift. A change in consumer spending will reduce the number of goods demanded. The aggregate demand will shift inwards.
What is the minimum number of integers that you must pick between 0 and 9 (inclusive), such that two of them add up to 9?
Answer:
6
Explanation:
there are 5 different possible combinations of two integers that equal 9 when you add them together:
(0,9)(1,8)(2,7) (3,6)(4,5)The worst case scenario is that you choose 0, 1, 2, 3, and 4, and adding any pair will not result in 9. So you will need to choose a sixth number and whichever that number is (either 5, 6, 7, 8 or 9), you will be able to add it to another one to get 9.
The best case scenario is that you choose only two and you are lucky enough to get a combination that works.
Which statement best compares these two loans?
Loan A
Loan B
O The annual percentage rate for loan A is higher
than the rate for loan B
Loan
amount
$15,000
$10,000
O The interest for loans A and B will cost the borrower
the same amount over time.
APR
17%
19%
O The interest is about half the principal for A and
almost equal to the principal for B.
The total payment for A is higher than for B, even
though the principal is actually lower
Loan
repayment
term
5 years
5 years
Total
interest
paid
$7,367.32
$9,857.02
) Intro
Done
Based on the given information, it seems that Loan A has a lower principal amount ($15,000) compared to Loan B ($10,000). However, Loan A has a higher annual percentage rate (APR) of 17% compared to Loan B's 19% APR.
What are the basis of Loan comparison ?This means that over the course of the loan term, the borrower will end up paying more interest for Loan B, making the total payment for Loan B higher than Loan A.
In terms of the interest, it appears that for Loan A, the interest is about half the principal amount, whereas for Loan B, the interest is almost equal to the principal amount. This indicates that Loan B may be more expensive in terms of interest costs.
Despite Loan A having a lower principal amount, the total interest paid for Loan A is $7,367.32, which is lower than the total interest of $9,857.02 for Loan B. This suggests that Loan A may be a better option for the borrower, as it would result in lower overall costs over the loan term.
Overall, the comparison between Loan A and Loan B highlights the importance of considering both the interest rate and the principal amount when evaluating loan options.
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Mason is assigning work to the different employees of his company. He wants his workers to perform well in their respective work. Which factor should Mason consider while assigning this work?
A.
relations with each employee
B.
living conditions of each employee
C.
age of each individual employee
D.
individual ability of each employee
Answer:
answer letter D
individually ability to each employee
Answer:
d) individual ability of each employee
Explanation:
When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a _____________________ .a. riskb. hazard riskc. moral hazardd. moral risk
Answer:
C. moral hazard
Explanation:
moral hazard in can be explained as an hazard that occur when there are more exposure to hazards by entity simply because he/she doesn't responsible for the cost of the exposed risk.
It should be noted that moral hazard occur when people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring .
Escalation bias refers to the situation in which:_______. a. investors put more money into a failure rather than into a success. b. investors tend to follow the herd. c. investors have a propensity to sell winners too soon and hang on to losers too long. d. investors ignore bad news and overemphasize good news. e. investors are all noise traders.
Answer:
a. investors put more money into a failure rather than into a success.
Explanation:
The escalation bias is a part of behavioral finance. In this the investor is not accepting their mistake if they had done any kind of mistake. Rather accepting it they put more money in the asset that performed poorly also at the same time the bad news is ignored by them, they only focused to invest more and more in the stocks
hence, the correct option is a
Four people each have a different willingness to pay for one unit of a good: George will pay $15, Glen will pay $12, Tom will pay $10, and Peter will pay $8. If price decreases from $9 to $8 then the consumer surplus from this unit will increase by___. The consumer surplus is calculated as the marginal benefit or the value of the good minus its price, then summed over the quantity bought. If the price is $9, there are only 3 people (George, Glen, and Tom) who would buy the goods. Since Peter wants to pay $8, he will not buy this good since its price ($9) is higher than his willingness to pay. The consumer surpluses for George, Glen, and Tom are $6 (=15 - 9), $3 (=12 - 9), and $1 (=10 - 9), respectively. The total consumer surplus would be $10 (= 6 + 3 + 1). If the price is $8, all of them would be willing to buy the goods. The consumer surpluses for George, Glen, Tom, and Peter are $7 (=15 - 8) $4 (=12 - 8), $2 (=10 - 8), and $0 (=8 - 8), respectively. The total consumer surplus would be $13 (= 7 + 4 + 2). Thus, if price decreases from $9 to $8 then the consumer surplus from this unit will increase by $3. If the price increases from $9 to $11, what would be the decrease in consumer surplus?
Answer:
If price decreases from $9 to $8 then the consumer surplus from this unit will increase by $3.
Explanation:
total consumer surplus = ($15 + $12 + $10 + $8) - (4 x $8) = $45 - $32 = $13. Consumer surplus is the difference between the maximum amount that consumers are willing to pay for a good or service, and its actual price.
when the price was $9 per unit, total consumer surplus = ($15 + $12 + $10) - (3 x $9) = $37 - $27 = $10.
that means that consumer surplus increased by $13 - $10 = $3
Rajiv lives in Houston and runs a business that sells pianos. In an average year, he receives $851,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Rajiv does not operate this piano business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. No other costs are incurred in running this piano business.
a. What are Rajiv's explicit costs of selling pianos?
1. The salary Rajiv could earn if he worked in an accounting firm.
2. The wages and unitilty bills that Rajiv pays.
3. The wholesale cost for pianos that Rajiv pays the manufacturer.
4. The rental income Rajiv could receive per year if he chose to rent his showroom out.
b. What is the accounting profit of Rajiv's piano business?
1. $780,000
2. $65,000
3. $40,000
4. $-40,000 ($40,000 accounting loss)
5. $110,000
c. What is the economic profit of Rajiv's piano business?
a. $65,000
b. $40,000
c. $780,000
d. $-40,000 ($40,000 economic loss)
e. $110,000
Answer and Explanation:
The computation is shown below:
a. The explicit cost of selling pianos would involve the wages & salaries expense and the wholesale cost that he pays the manufactured. These are considered as actual and would be added in the accounting
b. The accounting profit would be
Accounting profit is
= revenue - explicit cost
= $851,000 - $476,000 - $281,000
= $94,000
this is the answer and the options that are given are wrong
c. The economic profit would be
= Accounting profit - opportunity cost
= $94,000 - $34,000 - $71,000
= -$11,000
this is the answer and the options that are given are wrong
On February 1, Tory began a service proprietorship with an initial cash investment of $2,000. The proprietorship provided $5,000 of services in February and received full payment in March. The proprietorship incurred expenses of $3,000 in February, which were paid in April. During March, Tory drew $1,000 against the capital account. In the proprietorship's financial statements for the two months ended March 31, prepared under the cash basis method of accounting, what amount should be reported as capital
The amount that should be reported as the capital is $6,000
Calculation of the capital amount:The following formula should be used.
= Initial cash investment + Investments made + Income received - Drawings
= $2,000 + $0 + $5,000 - $1,000
= $6,000
As per the cash basis accounting method, the cash revenues is more than the cash expenses so the same should be considered as an income
Hence, the amount reported as capital is $6,000.
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