To estimate the stock's current price, we can use the dividend discount model (DDM) considering the non-constant dividend growth rate. The formula for the price of the stock (P0) is:
P0 = D1 / (1 + r) + D2 / (1 + r)^2 + ... + Dn / (1 + r)^n + Pn / (1 + r)^n
Where:
D1, D2, ... Dn are the expected dividends for each period
Pn is the expected price of the stock at period n
r is the required rate of return
Given the information provided:
Dividend in period 0 (Do) = $3.4
Dividend growth rate for the next 2 years (g1 and g2) = 20%
Dividend growth rate thereafter (g3) = 7%
Beta (β) = 1.1
Risk-free rate (rf) = 9%
Market risk premium (Rm) = 4.5%
First, let's calculate the required rate of return (r) using the Capital Asset Pricing Model (CAPM):
r = rf + β * Rm
r = 0.09 + 1.1 * 0.045
r = 0.0995 or 9.95%
Next, let's calculate the dividends for each period:
D1 = Do * (1 + g1) = $3.4 * (1 + 0.20) = $4.08
D2 = D1 * (1 + g2) = $4.08 * (1 + 0.20) = $4.896
D3 = D2 * (1 + g3) = $4.896 * (1 + 0.07) = $5.23712
Now, we can calculate the price of the stock (P0):
P0 = D1 / (1 + r) + D2 / (1 + r)^2 + D3 / (1 + r)^3
P0 = $4.08 / (1 + 0.0995) + $4.896 / (1 + 0.0995)^2 + $5.23712 / (1 + 0.0995)^3
P0 ≈ $3.7087 + $4.2447 + $4.1354
P0 ≈ $12.0888
Therefore, the estimate of the stock's current price is approximately $12.09.
To know more about dividends visit-
brainly.com/question/29476826
#SPJ11
Suppose a company had two business lines. The first one is an amusement park, and the second one is a restaurant. The Company decided to shut down one of its business lines (the restaurant). Determine which standard deals with the mentioned problem above? Answer:
The standard that deals with the mentioned problem above is International Financial Reporting Standard (IFRS) 5: Non-current Assets Held for Sale and Discontinued Operations.
International Financial Reporting Standard (IFRS) 5: Non-current Assets Held for Sale and Discontinued Operations deals with the reporting of non-current assets that are either to be sold or will be held for sale. It deals with the accounting and reporting of discontinued operations. It applies to entities that intend to dispose of or hold assets for sale.
More on Financial Reporting: https://brainly.com/question/32015788
#SPJ11
Which of the following is the primary function of a marketing message? A) Encouraging potential buyers to make immediate purchase decisions B) Asking potential buyers to buy a specific product or service O c) Identifying which combination of logical and emotional appeals is most productive Moving potential buyers through the purchasing process without making an immediate decision E) Assessing the needs of the audience to gauge interest in a product or service OD)
Option C, identifying which combination of logical and emotional appeals is most productive is the correct answer.
The primary function of a marketing message is to identify which combination of logical and emotional appeals is most productive. This answer can be found in option C.
As the name suggests, a marketing message is a message that marketers use to reach their potential customers or target audience. A marketing message is a communication message designed to promote or sell a product or service. The message is sent to the target audience to inform them about the product or service.The primary function of a marketing message is to identify which combination of logical and emotional appeals is most productive. It helps marketers in determining the message that has a greater impact on the target audience, leading to more sales.
A well-crafted marketing message should not only inform the audience about the product or service but should also persuade them to take action. This is why most marketing messages use emotional appeals to connect with their target audience and make them feel more connected to the brand or product.It is important to note that marketing messages should not always be focused on encouraging potential buyers to make immediate purchase decisions. Instead, the primary function of a marketing message is to identify the most effective way to reach and persuade potential buyers. Hence, option C, identifying which combination of logical and emotional appeals is most productive is the correct answer.
To know more about marketing message visit:
https://brainly.com/question/28499691
#SPJ11
A firm that has recently experienced enormous growth is seeking to expand its capacity by leasing a small plant, and is considering three cities. In the table below are the factors that the company is
In conclusion, the company needs to consider all these factors before making a decision on which city to choose. It is important to choose a location that satisfies all the factors.
A firm is looking for expanding its capacity by renting a small plant and is considering three cities. To choose among the three cities, the firm has to consider various factors. The factors are listed in the table. The company needs to choose a location that satisfies all the factors.
It is important to note that each of these factors is important in determining the success of a business. If the company is located in a place that has a high population density and a high per capita income, then there is a high probability that the business will be successful. This is because there is a higher demand for goods and services in such areas.
If the company is located in a place where there are few competitors, then it will be easier for the company to establish itself. This is because there is less competition and the company can capture a larger market share. If the company is located in a place where the labor costs are low, then it will be easier for the company to maintain its profitability.
The lower labor costs mean that the company can produce goods and services at a lower cost, which will increase its profits. Another factor to consider is the availability of raw materials. If the company is located in a place where the raw materials are easily available, then it will be easier for the company to produce goods and services. This is because the company can access the raw materials easily and at a lower cost.
Finally, the company needs to consider the availability of infrastructure. If the company is located in a place where there is good infrastructure, then it will be easier for the company to transport its goods and services to the market. This will increase the efficiency of the company and will also help it to establish itself.
To know more about company visit:
https://brainly.com/question/30532251
#SPJ11
An investor invests in a Mexican treasury at 9% for one year. The equivalent USA investment yields 5%. If the spot exchange rate is 13.000 pesos per USD, what is the expected forward exchange rate in pesos per USD?
Top of Form
Multiple Choice
13.495
13.691
13.150
13.000
13.495 (rounded to three decimal places) is the final answer.
Given:
Mexican treasury yield, i.e., the return on investment = 9%
USA investment yield, i.e., the return on investment = 5%
The spot exchange rate, i.e., the current exchange rate is 13.000 pesos per USDWe need to find the expected forward exchange rate in pesos per USD.
A forward exchange rate is the exchange rate at which a party is willing to enter into a contract for the future exchange of currencies.
To find the expected forward exchange rate, we use the following formula: Forward exchange rate = (1 + foreign interest rate) / (1 + domestic interest rate) × spot exchange rateIn this case, we need to find the expected forward exchange rate in pesos per USD. So, the domestic currency is the USD, and the foreign currency is the peso. Therefore, using the formula above, we can say: Forward exchange rate in pesos per USD = (1 + 0.09) / (1 + 0.05) × 13.000= 1.09 / 1.05 × 13.000= 13.5248 ≈ 13.495 (rounded to three decimal places)Hence, the expected forward exchange rate in pesos per USD is approximately 13.495.
Answer: 13.495 (rounded to three decimal places)
to know more about investors here;
brainly.com/question/28538187
#SPJ11
One of the salespersons in the USA Corp, Yak Butter Division, found out that the (inverse) demand and supply equations for the yak butter market is Qs = 500 + 20P and Qp = 1700 - 10P
a. The salesperson wants to know the equilibrium price and quantity in the yak butter market. SHOW YOUR CALCULATIONS
b. The salesperson just read an article in the Oregonian stating that Oregon is going to set a price of $45 on yak butter. Based on the demand and supply equations for yak butter in part a, the salesperson wants you to calculate the actual shortage or surplus that the government set price will cause in the yak butter market
c. The salesperson also wants to know if $45 is a ceiling or a floor. Explain how you know.
d. Finally, explain to the salesperson the difference between a change in demand and a change in quantity demanded.
a. Equilibrium price and quantity of yak butter:
The inverse demand and supply equations for the yak butter market is as follows:
Qs = 500 + 20P, which means that supply quantity of yak butter (Qs) is a function of its price (P).
Qp = 1700 - 10P, which means that demand quantity of yak butter (Qp) is a function of its price (P).
Equating Qs and Qp: Qs = Qp=> 500 + 20P = 1700 - 10P30P = 1200P = 40Equilibrium price of yak butter is $40.
Substituting P = 40 in either demand or supply equation to calculate equilibrium quantity:
Qs = 500 + 20PQs = 500 + 20(40)Qs = 1300 Equilibrium quantity of yak butter is 1300 units.
b. Actual shortage or surplus due to price regulation:
The government set a price of $45 on yak butter. Based on the demand and supply equations in part a, the actual shortage or surplus can be calculated as follows:
At P = $45,Qs = 500 + 20PQs = 500 + 20(45)Qs = 1400Qp = 1700 - 10PQp = 1700 - 10(45)Qp = 1250The quantity of yak butter supplied (1400) is more than the quantity demanded (1250).
Hence, there is a surplus of 1400 - 1250 = 150 units of yak butter.
c. Ceiling or floor: If the government sets a price ceiling, it means that the maximum price for a good is set below the market equilibrium price, whereas if it sets a price floor, it means that the minimum price for a good is set above the market equilibrium price.
In this case, the government has set a price of $45, which is above the equilibrium price of $40. Hence, it is a price floor.
d. Change in demand and quantity demanded: Change in demand is when the demand curve shifts due to factors other than price (e.g., change in consumer income, change in the number of buyers, change in consumer preferences, etc.).
Quantity demanded, on the other hand, is a movement along the demand curve due to a change in the price of the good itself.
To know more about Equilibrium visit:
https://brainly.com/question/30694482
#SPJ11
https://www.economist.com/finance-and-economics/2022/05/22/foreign-investors-are-fleeing-china
Please summarize this article（300-500words）
After reading the article make a summary of no less than 300 words and no more than 500 words. To do an effective summary, you must make a choice on what information you include and which you leave out so that you don’t exceed the word limit.
Begin by stating what is the main hypothesis/claim of the article and discuss the facts and arguments presented to support the main hypothesis.
The main hypothesis/claim of the article is that foreign investors are fleeing China. The article highlights that foreign investors have reduced their presence in China's equity market due to regulatory crackdowns, political risks, and a deteriorating business environment.
This has led to a sharp fall in foreign holdings in the Shanghai and Shenzhen stock markets. According to data from the China Securities Depository and Clearing Corp, foreign holdings in A-shares, the main class of Chinese shares available to overseas investors, fell to 2.4 trillion yuan ($373bn) at the end of April, down from a peak of 2.9 trillion yuan last June. This shows that there has been a decline of about 18% since June 2021.
The article cites a few reasons behind this trend. First, there is the ongoing regulatory crackdown, which has affected many sectors in China, including technology, education, and property.
Finally, the article highlights the deteriorating business environment in China, which has been affected by a range of factors, including the pandemic, supply chain disruptions, and labor shortages.
Overall, the article provides a compelling argument that foreign investors are fleeing China due to a combination of regulatory crackdowns, political risks, and a deteriorating business environment. While it remains to be seen whether this trend will continue, it is clear that China's economy is facing significant headwinds as it seeks to attract foreign investment and maintain its status as a global economic powerhouse.
To know more about deteriorating visit :
https://brainly.com/question/31579087
#SPJ11
Prepare the journal entries to record these transactions on Sheridan Company's books. Sheridan Company uses a periodic inventory system. Feb. 5 6 8 11 Sheridan purchased $12,000 of merchandise from NW Wholesale Company, terms 2/10, n/30, FOB shipping point. The correct company paid freight costs of $160. Sheridan returned $1,400 of the merchandise purchased on February 5. Sheridan paid the balance due to NW Wholesale.
To record the transactions on Sheridan Company's books, we need to prepare the journal entries for each transaction.
February 5: Purchase of merchandise from NW Wholesale Company:
Debit: Inventory - Merchandise Purchases ($12,000)
Credit: Accounts Payable ($12,000)
February 6: Payment of freight costs:
Debit: Freight-In ($160)
Credit: Cash ($160)
February 8: Return of merchandise to NW Wholesale Company:
Debit: Accounts Payable ($1,400)
Credit: Inventory - Merchandise Purchases ($1,400)
February 11: Payment of the balance due to NW Wholesale Company:
Debit: Accounts Payable ($10,600) [($12,000 - $1,400)]
Credit: Cash ($10,600)
For more information on Journal Entries, refer
https://brainly.com/question/30499005
#SPJ4
he following comparative balance sheet is given for Eaters Co Assets Dec.31.2021 Dec.31.2020 $58,500 Cash $351,000 Notes Receivable 72,000 63,000 Supplies & Inventory 81,000 121,500 Prepaid expense 31,500 54,000 Long-term investments 0 81,000 Machines and tools 166,500 144,000 (63.000) (45.000) Accumulated depreciation equipment Total Assets $639.000 $477.000 Liabilities & Stockholders' Equity Accounts payable $ 76,500 $ 31,500 211,500 Bonds payable (long-term) 166,500 Common Stock 180,000 103,500 Retained Earnings 216.000 130,500 Total Liabilities & Stockholders' Equity $639.000 $477,000 Income Statement Information (2021); 1. Net income for the year ending December 31, 2021 is $130,500. 2. Depreciation expense is $18,000. 3. There is a loss of $9,000 resulted from the sale of long-term investment. Additional information (2021); 1. All sales and purchases of inventory are on account (or credit). 2. Received cash for the sale of long-term investments that had a cost of $81,000, yielding a $9,000 loss. 3. Cash dividends paid is $45,000. 4. The company purchased new machines and tools for $22,500 cash. Required: Prepare the FIRST (Operating) and the SECOND (Investing) sections of the statement of cash flows for the year ended December 31, 2021.
The first (operating) section of the statement of cash flows shows a net cash inflow of $211,500, while the second (investing) section shows a net cash outflow of $13,500 for the year ended December 31, 2021.
To prepare the first (operating) and the second (investing) sections of the statement of cash flows for the year ended December 31, 2021, we need to analyze the changes in the balance sheet accounts and consider the provided information.
First (Operating) Section:
To calculate the operating cash flows, we need to focus on the changes in current assets and liabilities. We exclude non-current assets and long-term liabilities.
Starting with the net income of $130,500, we make the following adjustments:
Add back non-cash expenses:
Depreciation expense of $18,000.
Adjust changes in working capital:
Increase in notes receivable: $9,000 ([$72,000 - $63,000])
Decrease in supplies & inventory: $40,500 ([$81,000 - $121,500])
Decrease in prepaid expenses: $22,500 ([$31,500 - $54,000])
Increase in accounts payable: $45,000 ([$76,500 - $31,500])
Adjust for the loss on sale of long-term investment:
Add back the loss of $9,000.
The total operating cash flows can be calculated as follows:
Net income + Depreciation expense + Changes in working capital + Loss on sale of long-term investment:
$130,500 + $18,000 + $9,000 + $40,500 - $22,500 + $45,000 - $9,000 = $211,500.
Second (Investing) Section:
In the investing section, we consider the changes in long-term assets.
Proceeds from the sale of long-term investments: $9,000.
Cash used for the purchase of new machines and tools: $22,500.
The total investing cash flows can be calculated as follows:
Proceeds from the sale of long-term investments - Cash used for the purchase of new machines and tools:
$9,000 - $22,500 = -$13,500.
for such more questions on cash
https://brainly.com/question/24179665
#SPJ11
All of the following statements concerning personal umbrella liability insurance are correct EXCEPT: The personal umbrella policy is designed primarily to provide liability coverage for catastrophic legal claims or judgments. The personal umbrella policy requires the policyowner to carry certain underlying liability coverages of specified minimum amounts on both the homeowner's policy and the PAP. Personal umbrella liability insurance never provides personal injury coverage for acts such as defamation of character. Aclaim made under an umbrella policy will pay only after the limits of the relevant underlying policy are exhausted.
the correct statement is: "Personal umbrella liability insurance never provides personal injury coverage for acts such as defamation of character."
The other three statements are correct:
The personal umbrella policy is designed primarily to provide liability coverage for catastrophic legal claims or judgments. A personal umbrella policy offers additional liability coverage beyond the limits of underlying insurance policies, such as homeowner's or auto insurance, to protect against large financial losses resulting from lawsuits.
The personal umbrella policy requires the policy owner to carry certain underlying liability coverages of specified minimum amounts on both the homeowner's policy and the Personal Auto Policy (PAP). This requirement ensures that there is a base level of coverage in place before the umbrella policy comes into effect.
A claim made under an umbrella policy will pay only after the limits of the relevant underlying policy are exhausted. In other words, the umbrella policy kicks in when the coverage limits of the primary policies (such as homeowners' or auto insurance) have been reached.
Therefore, the correct statement is: "Personal umbrella liability insurance never provides personal injury coverage for acts such as defamation of character."
know more about Personal umbrella liability insurance.
https://brainly.com/question/24119131
#SPJ11
Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $18,500 in 2020 for adoption-related expenses. The adoption was finalized in early 2021. Marsha received $3,800 of employer-provided adoption benefits. For part (a), assume that any adoption credit is not limited by modified AGI or by the amount of tax liability.
Required:
What amount of adoption credit, if any, can Niles and Marsha take in 2021?
Using the information in part (a), assume that their modified AGI was $239,000 in 2021. What amount of adoption credit is allowed in 2021?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.
Niles and Marsha can take an adoption credit of $14,700 in 2021.
What is the amount of adoption credit available to Niles and Marsha in 2021?In 2021, Niles and Marsha can claim an adoption credit of $14,700. The adoption credit is calculated based on the adoption-related expenses paid by the taxpayers, which in this case is $18,500. However, since Marsha received $3,800 of employer-provided adoption benefits, this amount needs to be subtracted from the total adoption expenses.
Therefore, the eligible adoption expenses for the adoption credit calculation are $18,500 - $3,800 = $14,700. This is the amount of adoption credit that Niles and Marsha can claim on their 2021 tax return.
The adoption credit is a non-refundable tax credit that helps offset the costs associated with adopting a child. It is subject to certain limitations, such as modified adjusted gross income (AGI) and the amount of tax liability. However, for part (a) of the question, we assume that there are no limitations based on modified AGI or tax liability.
It's important to note that tax credits directly reduce the amount of tax owed, so claiming the adoption credit can have a significant impact on Niles and Marsha's tax liability for the year. They should consult with a tax professional or refer to the official IRS guidelines for further details on claiming the adoption credit.
Learn more about adoption credit
brainly.com/question/20357977
#SPJ11
Which percentage of business analytics is descriptive, according
to Wu, 2013?
Select one: a. 60% b. 70% c. 80% d. 90%
Option c) 80% is the correct answer. According to Wu, 2013, around 80% of business analytics is descriptive. The primary purpose of descriptive analytics is to provide a summary of historical data to get insights and learn from the past.
According to Wu, 2013, around 80% of business analytics is descriptive. The primary purpose of descriptive analytics is to provide a summary of historical data to get insights and learn from the past. It is concerned with providing answers to the questions what happened, where it happened, and when it happened.
Descriptive Analytics: It provides a summary of historical data to get insights and learn from the past. It deals with providing answers to the questions what happened, where it happened, and when it happened. This data is then utilized by the company to get insights into how they can improve their current strategies.
Predictive Analytics: It helps in predicting future trends by analyzing historical data and patterns. Companies can use predictive analytics to forecast what might happen in the future. This allows them to take preventive measures to avoid negative outcomes.
Prescriptive Analytics: It helps in determining the best course of action to take in a given scenario. It analyzes data from multiple sources and provides recommendations on the best way forward based on the available information.
Business analytics comprises three types of analytics: Descriptive Analytics, Predictive Analytics, and Prescriptive Analytics. Out of these three, descriptive analytics accounts for the majority of business analytics, i.e., around 80%.
Therefore, option c) 80% is the correct answer.
To know more about business analytics visit:
https://brainly.com/question/30462952
#SPJ11
What are the four ethical standards in the Institute of Management Accountants’ Statement of Ethical Professional Practice? Describe the meaning of each of the four standards. How does each of these standards impact planning, directing, and controlling?
The Institute of Management Accountants (IMA) has established four ethical standards in their Statement of Ethical Professional Practice. These standards are as follows:
1. Competence: This standard requires management accountants to maintain a level of expertise and knowledge that allows them to provide quality professional services. Competence also involves keeping up with changes in the industry and maintaining an understanding of new developments.
2. Confidentiality: Management accountants have a responsibility to maintain the confidentiality of information obtained during the course of their work. This includes protecting sensitive information from unauthorized access or disclosure.
3. Integrity: A high level of ethical integrity is required. Management accountants must be honest, fair, and transparent in their dealings. They must avoid any conflicts of interest and disclose any potential conflicts as soon as they become aware of them.
4. Objectivity: Management accountants must approach their work with impartiality and avoid any bias or prejudice. They must provide accurate and truthful information without being influenced by personal or external factors.
Each of these ethical standards impacts planning, directing, and controlling in different ways.
To know more about Institute of Management Accountants visit:
https://brainly.com/question/28584614
#SPJ4
Overhead rate; costs assigned to jobs LO P3 Shire Computer's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $798,000 of overhead costs and $570,000 of direct labor cost for the year. During March, Shire began and completed Job 13-56. 1. What is the predetermined overhead rate for the year? 2. Use the information on the following job cost sheet to determine the total cost of the job.
The predetermined overhead rate for the year is 140%, the calculation of the total cost of Job 13-56 cannot be determined.
1. Predetermined overhead rate for the year:Predetermined overhead rate is calculated before the job begins, based on the estimated total cost and the expected number of units of the allocation base.
In this case, the predetermined overhead rate for the year is calculated by dividing the estimated overhead cost for the year by the estimated direct labor cost for the year.Predetermined overhead rate for the year = Estimated overhead cost for the year / Estimated direct labor cost for the year
Predetermined overhead rate for the year = $798,000 / $570,000 = 1.4 or 140%Therefore, the predetermined overhead rate for the year is 140%.
2. Total cost of Job 13-56:Job cost sheet has not been provided. Therefore, the calculation of the total cost of Job 13-56 cannot be determined.
Learn more about overhead rate: brainly.com/question/26372929
#SPJ11
How was the international refugee system started? What key events let to the creation of it?"
The international refugee system was started through key events that led to its creation.
The creation of the international refugee system can be traced back to significant events in history, particularly those related to mass displacement and humanitarian crises. One key event was the aftermath of World War I and the displacement of millions of people in Europe. The League of Nations, established in 1920, recognized the need to address this issue and developed the Nansen Passport, which provided legal documentation for stateless individuals and facilitated their protection and resettlement.
Another pivotal event was World War II and the Holocaust, which resulted in the forced displacement and persecution of millions of people, primarily Jews. The horrors of the war led to increased international awareness of the need for collective action to protect and assist refugees. The United Nations (UN) was founded in 1945, and its establishment marked a significant step in formalizing international cooperation and response to refugee situations.
In 1951, the UN adopted the Refugee Convention, a landmark international treaty that defined the rights and obligations of both refugees and states. The convention laid the foundation for the modern international refugee system and established the UN Refugee Agency (UNHCR) as the leading international organization responsible for protecting and assisting refugees worldwide.
These key events, driven by humanitarian crises and the recognition of the need for coordinated international efforts, played a crucial role in the establishment of the international refugee system that exists today.
learn more about "system ":- https://brainly.com/question/14688347
#SPJ11
Which of the following investments had the largest fluctuations overall return over the past eighty years?
A) small stocks
B) S&P 500
C) corporate bonds
D) Treasury bills
Small stocks had the largest fluctuations overall return over the past eighty years. Option A is the correct answer.
The majority of companies on the market are represented by small-cap stocks. In reality, there are more small-cap stocks than there are large- and mid-cap firms. Option A is the correct answer.
Small-cap companies can be the next big thing that all parties ought to be talking regarding, as well as those that are close to going off of industry or that would be great candidates for acquisition. That's because the phrase "small-cap stock" encompasses a fairly broad spectrum of market capitalizations: Anything with a price between $300,000,000 and $2 billion qualifies.
As a result, the volatility of small-cap stocks might be higher than normal, which is a different term for sudden gains and losses. Investors who can withstand the ups and downs along the way could reap the benefits over a lengthy period of time.
Learn more about Stocks here:
https://brainly.com/question/26128641
#SPJ4
[13-14] Hamilton Company uses job-order costing. Manufacturing overhead is applied using a predetermined rate of 150% of direct labor cost. Any over- or underapplied manufacturing overhead is closed t
Job order costing is a system of costing that accumulates the costs of manufacturing and produces products or services that are distinct and separate. It includes tracing direct materials, direct labor, and manufacturing overheads to individual jobs.
The Hamilton Company is using job order costing, and they apply manufacturing overheads using a predetermined rate of 150% of direct labor cost. Any over or under applied manufacturing overhead is closed by the following steps
Step 1: Record the Manufacturing Overhead Applied The predetermined rate is used to apply the overheads to the production cost. This overhead is accumulated in a manufacturing overhead account. The manufacturing overhead account is a temporary account, and the balance is either a debit or credit balance. If the balance is debit, it represents under applied overhead, while if it is credit, it represents over applied overhead.
Step 2: Calculate the Under applied or Over applied Overhead Over applied overheads occur when the actual overhead costs are less than the applied overhead costs. In contrast, under applied overheads occur when actual overheads are more than the applied overhead costs. The balance on the manufacturing overhead account indicates the amount of under applied or over applied overheads.
Step 3: Close the Balance to the Cost of Goods Sold Account The balance on the manufacturing overhead account represents either under applied or over-applied overhead. The balance should be closed at the end of the period to the cost of goods sold account. The following journal entry is used to transfer the balance from the manufacturing overhead account to the cost of goods sold account.If there is under applied overhead:Debit Cost of Goods Sold Account Credit Manufacturing Overhead Account If there is over applied overhead:Debit Manufacturing Overhead Account Credit Cost of Goods Sold Account.
For such more question on accumulates
https://brainly.com/question/29097717
#SPJ11
Subgame perfection is a refinement of Nash Equilibrium that requires
Select one:
a. perfect and skilled play by all players
b. credibility/rationality at every point/path in the game, regardless of whether those points/paths are actually part of the Nash equilibrium
c. focalness in equilibrium
d. firms do not cheat on their output agreements
e. credibility/rationality only along the equilibrium path
Subgame perfection is a refinement of Nash Equilibrium that requires credibility/rationality at every point/path in the game, regardless of whether those points/paths are actually part of the Nash equilibrium.
Subgame perfection is a refinement of the Nash Equilibrium that requires that all players' strategies should be optimal from that particular subgame, given the strategies they've chosen in the other subgames. This, in essence, is the credibility and rationality of all players at every point/path in the game, regardless of whether or not those points/paths are actually part of the Nash equilibrium. If an individual game, which is a subgame of the overall game, satisfies subgame perfection, it is known as a subgame-perfect equilibrium.
In other words, subgame-perfect equilibrium is a refinement of Nash equilibrium in which players choose a strategy that is optimal for all subgames, including those that do not involve reaching Nash equilibrium. This requires rationality and credibility of the players at every stage of the game, regardless of whether or not the Nash equilibrium is reached at those stages.
Therefore, option (b) is the correct answer to the question.
Know more about the subgame-perfect equilibrium click here:
https://brainly.com/question/22985234
#SPJ11
Inventory records for Dunbar Incorporated revealed the following: Date Transaction. Number of Unit Units Cost Apr. 1 Beginning inventory 520 $2.38 Apr.20 Purchase 320 2.73 Dunbar sold 620 units of inventory during the month. Ending inventory assuming weighted-average cost would be: (Round weighted- average unit cost to 4 decimal places and final answer to the nearest dollar amount.) Multiple Choice a. $521. b. $633. c. $562.
To find out the ending inventory assuming weighted-average cost, the following steps should be taken: Find out the weighted average cost per unit. Therefore, the correct option is c. $562.
Use the formula to calculate the weighted average cost per unit: Weighted average cost per unit = Cost of goods available for sale / Units available for sale
= ($520 × $2.38) + ($320 × $2.73) / (520 + 320)
= $1,237.6 / 840
= $1.4725, rounded to 4 decimal places.
Determine the cost of ending inventory:Cost of Ending Inventory = Units in ending inventory × Weighted average cost per unit= (520 + 320 - 620) × $1.4725= 220 × $1.4725= $323.95, rounded to the nearest dollar. The correct option is c. $562.
To learn more about weighted-average cost,visit here
https://brainly.com/question/8287701
#SPJ11
1.What distribution channels does Taza Chocolate use, and what do they contribute to the company's overall marketing efforts? 2.Taza Chocolate prices its products differently based on the channel that is used for distributing them. Does this approach make good managerial sense? Why or why not? 3. How does the concept of integrated marketing channels apply to Taza Chocolate's product distribution system?
1. Taza Chocolate uses three main distribution channels, namely direct-to-consumer, wholesale, and retail. These channels contribute to the company's overall marketing efforts by allowing them to reach a wider customer base and diversify their revenue streams.
2. Taza Chocolate's approach to pricing its products differently based on the channel used for distribution makes good managerial sense. This is because different channels have different costs associated with them, such as marketing and distribution costs.
3. The concept of integrated marketing channels applies to Taza Chocolate's product distribution system in several ways. Firstly, the company's multi-channel distribution system allows them to create a seamless customer experience across all channels.
Direct-to-consumer allows the company to have a direct relationship with its customers, which facilitates personalization and greater control over brand messaging and customer experience. Wholesale, on the other hand, allows Taza Chocolate to reach a wider audience by partnering with third-party retailers. Finally, retail channels like their factory store and cafes allow the company to create a unique brand experience for customers.
By pricing their products differently based on these costs, Taza Chocolate can ensure profitability across all distribution channels while remaining competitive in each market. This approach also helps to avoid price wars between different channels, which can erode brand value.3. The concept of integrated marketing channels applies to Taza Chocolate's product distribution system in several ways.
Firstly, the company's multi-channel distribution system allows them to create a seamless customer experience across all channels. For example, customers can order online and pick up at a retail store or purchase a product at a wholesale partner and then purchase additional products online. Secondly, Taza Chocolate's integrated marketing channels allow them to leverage different channels to cross-promote their products and reach a wider audience.
For example, their direct-to-consumer channel allows them to promote new products and exclusive deals to their email list, while their wholesale partners can promote Taza Chocolate products in their own marketing materials.
For more such questions on consumer
https://brainly.com/question/3227054
#SPJ11
Kerensky Corporation, a wholesale company, has provided the following data: Sales per period. 1,000 units Selling price.... $35 per unit Variable production cost. $15 per unit Selling expenses........ $5,000 plus 5% of selling price Administrative expenses.. ******* $3,000 plus 10% of selling price The contribution margin ratio is closest to: a. 57% b. 58% c. 42% d. 62%
The following details: Sales per period = 1000 units. Selling price = $35 per unit variable production cost = $15 per unit selling expenses = $5000 + 5% of the selling price. Administrative expenses = $3000 + 10% of the selling price. Option (a) 57% is the correct answer.
We need to find out the contribution margin ratio of Kerensky Corporation.
The contribution Margin is calculated as follows: Contribution Margin = Selling Price per unit - Variable Cost per unit know the selling price per unit is $35 and the variable cost per unit is $15. Therefore, Contribution Margin per unit = $35 - $15 = $20Contribution Margin Ratio = (Contribution Margin / Selling Price) × 100%
Let's now calculate the Contribution Margin Ratio: Contribution Margin Ratio = (20 / 35) × 100%Contribution Margin Ratio = 57.14% (approx)
Hence, the closest Contribution Margin Ratio to the options provided is 57%.
To learn more about contribution margin, visit here
https://brainly.com/question/29674918
#SPJ11
Determine and Use Overhead Rate
The following selected ledger accounts of Cameron Company are for February (the second month of its accounting year):
Materials Inventory
Feb. 1 balance 63,000 February credits 226,000
February debits 208,000 Manufacturing Overhead
February debits 274,400 Feb. 1 balance 23,200
February credits 272,700
Work in Process Inventory
Feb. 1 balance 44,800 February credits 690,000
February debits: Direct material 190,000 Direct Labor 303,000 Man. overhead 272,700 Wages Payable
February debits 387,000 Feb. 1 balance 90,000
February credits 354,000
Finished Goods Inventory
Feb. 1 balance 153,000 February credits 767,400
February debits 690,000 a. Determine the amount of indirect material requisitioned for production during February.
$Answer
b. How much indirect labor cost was apparently incurred during February?
$Answer
c. Calculate the manufacturing overhead rate based on direct labor cost.
Answer %
d. Was manufacturing overhead for February under- or overapplied, and by what amount?
Manufacturing overhead was Answer: over-appliedunder-appliedCorrectby $Answer
e. Was manufacturing overhead for the first two months of the year under- or overapplied, and by what amount?
Manufacturing overhead was Answer : over-appliedunder-appliedCorrectby $Answer
f. What is the cost of production completed in February?
$Answer
g. What is the cost of goods sold in February?
$Answer
To determine the answers, we need to analyze the provided information and perform calculations based on the given data.
a. Indirect Material Requisitioned:
Indirect material requisitioned can be calculated by subtracting the change in materials inventory from the credits to the materials inventory account.
Change in Materials Inventory = (Feb. 1 balance + February credits) - February debits
Indirect Material Requisitioned = Change in Materials Inventory - Direct Material
= [(63,000 + 226,000) - 208,000] - 190,000
b. Indirect Labor Cost Incurred:
The indirect labor cost incurred can be obtained by subtracting the change in wages payable from the wages payable debits.
Change in Wages Payable = (Feb. 1 balance + February debits) - February credits
Indirect Labor Cost Incurred = Change in Wages Payable - Direct Labor
= [(90,000 + 387,000) - 354,000] - 303,000
c. Manufacturing Overhead Rate:
The manufacturing overhead rate can be calculated by dividing the manufacturing overhead debits by the direct labor cost.
Manufacturing Overhead Rate = Manufacturing Overhead debits / Direct Labor
= 274,400 / 303,000
d. Manufacturing Overhead Applied:
Manufacturing Overhead Applied can be calculated by multiplying the direct labor cost by the manufacturing overhead rate.
Manufacturing Overhead Applied = Direct Labor * Manufacturing Overhead Rate
= 303,000 * (Manufacturing Overhead Rate from part c)
To determine if manufacturing overhead was over-applied or under-applied, we need to compare the Manufacturing Overhead Applied with the Manufacturing Overhead debits.
e. Manufacturing Overhead for the First Two Months:
To determine the manufacturing overhead for the first two months, we need to add the Manufacturing Overhead debits for February to the balance of Manufacturing Overhead from February 1st.
f. Cost of Production Completed:
The cost of production completed in February can be calculated by adding the Direct Material, Direct Labor, and Manufacturing Overhead Applied.
Cost of Production Completed = Direct Material + Direct Labor + Manufacturing Overhead Applied
g. Cost of Goods Sold:
The cost of goods sold can be calculated by subtracting the credits to Finished Goods Inventory from the cost of production completed.
Cost of Goods Sold = Cost of Production Completed - (Feb. 1 balance + February credits)
Performing the calculations using the provided data will provide the actual values for each of the answers.
To know more about Inventory click here:-
https://brainly.com/question/24868116
#SPJ4
G1 and G2 are partners who have capital balances of P100,000 and P70,000 and who share profits of 65% and 35% respectively. They agree to admit G3 as a partner upon his payment of P110,000. The cash is invested in the business and G3 is credited for P130,000 which includes a bonus from G1 and G2. How much bonus was given by G1?
To determine the bonus given by G1, we need to calculate the total bonus credited to G3 and then allocate it between G1 and G2 based on their profit-sharing ratio.
1. Total bonus credited to G3:
Amount credited to G3: P130,000
G3's payment for admission: P110,000
Bonus amount: Amount credited to G3 - G3's payment for admission
Bonus amount: P130,000 - P110,000 = P20,000
2. Allocate the bonus between G1 and G2:
G1's share of the bonus = G1's profit-sharing ratio * Bonus amount
Bonus given by G1 = G1's share of the bonus
G1's share of the bonus = 65% * P20,000 = 0.65 * P20,000 = P13,000
Therefore, G1 gave a bonus of P13,000.
To know more about Profit-sharing visit-
brainly.com/question/14096848
#SPJ11
POD has a project with the following cash flows:
Year Cash Flows
0 −$243,000 1 147,400 2 164,900 3 130,000 The required return is 8.7 percent. What is the profitability index for this project?
The profitability index for the project with the given cash flows and a required return of 8.7% is 0.6222. It indicates that the project's present value of cash inflows is approximately 62.22% of the initial investment, suggesting a potential positive return on investment.
To calculate the profitability index for the project, we need to divide the present value of the cash inflows by the initial investment.
First, we need to calculate the present value of the cash inflows. We discount each cash flow using the required return of 8.7%:
PV(Year 1) = $147,400 / (1 + 0.087)¹ = $135,590.15
PV(Year 2) = $164,900 / (1 + 0.087)² = $138,447.14
PV(Year 3) = $130,000 / (1 + 0.087)³ = $107,726.09
Next, we calculate the initial investment (Year 0) as a negative cash flow:
PV(Year 0) = -$243,000
Now, we can calculate the profitability index
Profitability Index = (PV of Cash Inflows) / (Initial Investment)
Profitability Index = ($135,590.15 + $138,447.14 + $107,726.09) / (-$243,000)
The profitability index for this project is 0.6222 (rounded to four decimal places).
To know more about present value:
brainly.com/question/29586738
#SPJ4
Berea Resources is planning a $75 million capital expenditure program for the coming year. Next year, Berea expects to report to the IRS earnings of $40 million after interest and taxes. The company presently has 25 million shares of common stock issued and outstanding. Dividend payments are expected to increase from the present level of $8 million to $12 million. The company expects its current asset needs to increase from a current level of $23 million to $28 million. Current liabilities, excluding short-term bank borrowings, are expected to increase from $17 million to $21 million. Interest payments are $5 million next year, and long-term debt retirement obligations are $9 million next year. Depreciation next year is expected to be $15 million on the company's financial statements, but the company will report depreciation of $18 million for tax purposes. How much external financing is required by Berea for the coming year?
Explanation :
The external financing that is required by Berea for the coming year can be calculated as follows;
Given that, Capital expenditure program = $75 million
Earnings after interest and taxes = $40 million
Current level of dividends = $8 million
Increased level of dividends = $12 million
Current assets needs = $23 million
Increased current assets needs = $28 million
Current liabilities, excluding short-term bank borrowings = $17 million
Increased current liabilities, excluding short-term bank borrowings = $21 million
Interest payments = $5 million
Long-term debt retirement obligations = $9 million
Depreciation on the company's financial statements = $15 million
Depreciation for tax purposes = $18 million
Number of common stock issued and outstanding = 25 million shares
Therefore,External financing = Capital expenditure program - Earnings after interest and taxes - Increased level of dividends + Current assets needs - Current liabilities, excluding short-term bank borrowings + Interest payments + Long-term debt retirement obligations + Depreciation on the company's financial statements - Depreciation for tax purposes
External financing = $75 million - $40 million - ($12 million - $8 million) + ($28 million - $23 million) - ($21 million - $17 million) + $5 million + $9 million + $15 million - $18 million
External financing = $75 million - $40 million - $4 million + $5 million + $4 million + $9 million + $15 million - $18 million
External financing = $46 million
Therefore, the external financing required by Berea for the coming year is $46 million.
Learn more about external financing here https://brainly.in/question/13268401
#SPJ11
What part of the money supply does the fed have direct control over?
The Federal Reserve, often known as the Fed, has direct control over the monetary base of the money supply.
This implies that they have complete control over the number of physical dollars in circulation, with all other types of money in the economy, including bank deposits, being produced as a result of fractional reserve banking practices. The Fed controls the monetary base through its control over the money supply and its authority to buy and sell government securities in open-market operations. The monetary base is frequently referred to as M0, and it consists of all the physical currency and coins in circulation, as well as the money that the Federal Reserve keeps in reserve at its member banks. The Fed alters the monetary base through open-market operations, which involve purchasing or selling government securities on the open market to increase or decrease the supply of money in the economy, respectively.
To know more about Federal Reserve visit:
https://brainly.com/question/14700070
#SPJ11
Let the current spot rate be $1.25/€, and assume that one month from now the spot rate will be either $1.30/€ or $1.20/€. Let the dollar interest rate be 0.4% per month, and let the euro interest rate be 0.3% per month. Develop a portfolio that replicates the payoff on a one-month euro call option that allows us to buy stocks for a strike price of $1.25/€. Develop a portfolio that replicates the payoff of the option.
Hence to replicate the option's payoff, we should purchase a risk-free bond for $1.25/€ and invest in a stock denominated in euros, which has the same payoff as the option, using a small amount of cash.
A portfolio that replicates the payoff on a one-month euro call option that allows us to buy stocks for a strike price of $1.25/€ is developed by taking a long position in the euro, borrowing in dollars, and investing in a stock denominated in euros. A portfolio that replicates the payoff of the option is developed by purchasing a risk-free bond for $1.25/€ and investing in a stock denominated in euros, which has the same payoff as the option, using a small amount of cash .Assuming a current spot rate of $1.25/€, and assuming that one month from now the spot rate will be either $1.30/€ or $1.20/€, we need to build two portfolios: one that replicates the payoff on a one-month euro call option that allows us to buy stocks for a strike price of $1.25/€, and another that replicates the payoff of the option. To replicate the payoff on a one-month euro call option that allows us to buy stocks for a strike price of $1.25/€, we should take a long position in the euro, borrow in dollars, and invest in a stock denominated in euros.
Know more about strike price here:
https://brainly.com/question/29243229
#SPJ11
What are your thoughts on one or more of the cases regarding taxpayers' attitudes toward paying taxes?
Do you think the IRS should allow anyone the capability to file taxes on behalf of another taxpayer?
Do you think a person's reason for not paying their taxes should determine how the matter should be handled? Is there ever a good reason not to pay taxes?
Should taxpayers be allowed to say what their tax dollars can or cannot be used for? Is that a slippery slope? Why or why not?
One of the most significant challenges the IRS has been grappling with for years is taxpayer compliance, which refers to the degree to which taxpayers follow the law when filing their taxes. Many taxpayers don't pay their taxes, and this costs the government millions of dollars in revenue every year.
In my opinion, I don't think the IRS should allow anyone the capability to file taxes on behalf of another taxpayer. It could lead to a lot of confusion and potential mistakes, as well as legal issues when someone files taxes on behalf of someone else without their permission and causes damage to their credit score or financial situation.
There is no good reason not to pay taxes. The government uses the tax revenue it receives to fund essential services such as education, healthcare, national security, and other public goods. Refusing to pay taxes is not only illegal, but it also harms the community as a whole. I don't believe taxpayers should be allowed to say what their tax dollars can or cannot be used for. It's a slippery slope because it would be impossible to please everyone, and people have different opinions on what constitutes a worthy cause. Taxes should be used for the greater good of the community and the country, and it's up to elected officials to make decisions about how to spend the revenue.
to know more about taxpayer here:
brainly.com/question/5771472
#SPJ11
If you wish to accumulate $40,000 in 10 years, how much must you deposit today in an account that pays a quoted annual interest rate of 7.5% with semi-annual compounding of interest?
You would need to deposit approximately $19,543.07 today in the account to accumulate $40,000 in 10 years with semi annual compounding of interest.
PV = FV / (1 + r/n)[tex]^{n*t}[/tex]
PV = Present Value (amount to be deposited today)
FV = Future Value (desired accumulation)
r = Quoted annual interest rate (in decimal form)
n = Number of compounding periods per year
t = Number of years
desired accumulation (FV) = $40,000
quoted annual interest rate (r) = 7.5% or 0.075
compounding semi-annual (n = 2)
time period (t) = 10 years
PV = $40,000 / (1 + 0.075/2)²*¹⁰
PV = $40,000 / (1 + 0.0375)²⁰
PV = $40,000 / (1.0375)²⁰
PV ≈ $19,543.07
Learn more about Present Value at:
brainly.com/question/28304447
#SPJ4
Toyota Research Institute (TRI) wants to innovate in areas such as robotics and autonomous driving. They have locations in three locations because Multiple Choice coveted candidates prefer to stay in their current location closer to their research universities. they are not tied down by local government constraints. there are too many potential candidates for one location only. young professionals like to switch jobs and move locations frequently.
The Toyota Research Institute (TRI) aims to innovate in the fields of robotics and autonomous driving. TRI has locations in three areas since there are too many potential candidates for just one location only and candidates prefer to remain in their current location closer to their research universities. The correct option is A)
Moreover, they are not constrained by local government constraints, and young professionals enjoy switching jobs and moving locations frequently.
TRI's initiatives in robotics and autonomous driving are critical to the growth of the automotive industry. They are looking to broaden their knowledge to develop better software and hardware to enhance the cars' driving experiences. They also aim to expand their technology to enhance robotics in areas like artificial intelligence, machine learning, and data science.
Multiple choice candidates prefer to stay in their current locations closer to their universities. This is due to the many benefits that come with their current location, such as quality education, a supportive network, and access to facilities like libraries. Additionally, they are not subject to local government constraints that may limit their opportunities or innovation.
The number of potential candidates is another reason why TRI has multiple locations. With three locations, TRI can recruit from different regions, ensuring that they have a wide range of talent to choose from. This increases the chances of recruiting the best talent and improving the company's growth.
Finally, young professionals frequently switch jobs and relocate, seeking opportunities for career growth, learning, and new experiences. TRI recognizes this and provides young professionals with opportunities for growth, learning, and mentorship. The organization also provides flexible work arrangements that allow employees to work remotely or move between offices.
Therefore, The correct option is A)
To learn more about Toyota Research Institute (TRI) click here:
https://brainly.com/question/30577004#
#SPJ11
complete question
Toyota Research Institute (TRI) wants to innovate in areas such as robotics and autonomous driving. They have locations in three locations because Multiple Choice coveted
A) candidates prefer to stay in their current location closer to their research universities.
B) they are not tied down by local government constraints.
C)there are too many potential candidates for one location only.
D) young professionals like to switch jobs and move locations frequently.
Beasann's Die-Cuts is preparing its cost of goods manufactured schedule at year-end. Beasann's accounting records show the following: The raw materials inventory account had a beginning balance of $13,000 and an ending balance of $17,000. During the year, Beasann purchased $58,000 of direct materials. Direct labour for the year totalled $123,000, while manufacturing overhead amounted to $152,000. The work in process inventory account had a beginning balance of $21,000 and an ending balance of $15,000. Compute the cost of goods manufactured for the year. (Hint: The first step is to calculate the direct materials used during the year.) Beasann's Die Cuts Cost of Goods Manufactured 21000 13000 Beginning work in process inventory Add: Direct materials used Beginning raw materials inventory Purchases of direct materials Direct materials available for use Ending raw materials inventory 58000 71000 17000 54000 Direct materials used Direct labour 123000 Manufacturing overhead 152000 Total manufacturing costs incurred during the period Total manufacturing costs to account for Less: Ending work in process inventory 15000 Cost of goods manufactured
Beasann's Die-Cuts cost of goods manufactured for the year is $335,000.
To calculate the cost of goods manufactured, we first need to determine the direct materials used during the year:
Direct materials used = Beginning raw materials inventory + Purchases of direct materials - Ending raw materials inventory Direct materials used = $13,000 + $58,000 - $17,000 = $54,000
Next, we can calculate the total manufacturing costs incurred during the period:
Total manufacturing costs = Direct materials used + Direct labour + Manufacturing overhead Total manufacturing costs = $54,000 + $123,000 + $152,000 = $329,000
We can then calculate the total manufacturing costs to account for during the period:
Total manufacturing costs to account for = Beginning work in process inventory + Total manufacturing costs incurred during the period Total manufacturing costs to account for = $21,000 + $329,000 = $350,000
Finally, we can calculate the cost of goods manufactured:
Cost of goods manufactured = Total manufacturing costs to account for - Ending work in process inventory Cost of goods manufactured = $350,000 - $15,000 = $335,000
for more such questions on cost
https://brainly.com/question/28147009
#SPJ11