The statement 'Examples of common preventive control activities include: 1. Segregation of duties. 2. Proper authorization to prevent improper use of organizational resources. 3. Standardized forms. 4. Physical control over assets Computer passwords. 5. Computerized techniques such as transaction limits' is true.
Preventive control activities are activities that are designed to stop undesirable events from occurring. The objective of these control activities is to ensure that the company's systems are running as intended and that data is correct and complete. Preventive control activities may be used to avoid or prevent unauthorized access to systems, unauthorized manipulation of data, and unauthorized transactions.
Preventive controls may be classified into four categories, namely physical controls, administrative controls, technical controls, and detective controls. The examples of common preventive control activities include: segregation of duties, proper authorization to prevent improper use of organizational resources, standardized forms, physical control over assets, computer passwords, and computerized techniques such as transaction limits. Hence, the statement is true.
Note: The question is incomplete. The complete question probably is: Examples of common preventive control activities include: 1. Segregation of duties. 2. Proper authorization to prevent improper use of organizational resources. 3. Standardized forms. 4. Physical control over assets Computer passwords. 5. Computerized techniques such as transaction limits. Select one: True or False.
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ACold Inc is a frozen food distributor with 10 warehouses across the country. Ivan Tory, one of the warehouse managers, wants to make sure that the inventory policies used by the warehouse are minimizing inventory while still maintaining quick delivery to ACold's customers. Since the warehouse carries hundreds of different products, Ivan decided to study one. He picked Caruso's Frozen Pizza (CFP). Average daily demand for CFPS is normally distributed with a mean of 423 and a standard deviation of 156. Since ACold orders at least one truck from their supplier each day. ACold can essentially order any quantity of CFP it wants each day. In fact, ACold's computer system is designed to implement an order-up-to policy for each product. Ivan notes that any order for CFPS arrives 3 days after the order. Suppose an order-up-to level of 2464 is used. What is the expected on-hand inventory?
Note that where the above conditions are given, the expected on-hand inventory for Caruso's Frozen Pizza at ACold Inc's warehouse is approximately 2097 units.
What is the explanation for the above?
To calculate the expected on-hand inventory for Caruso's Frozen Pizza (CFP), we need to consider the average daily demand, the lead time, and the order-up-to level.
Average daily demand for CFP - 423 units
Standard deviation of daily demand - 156 units
Order-up-to level - 2464 units
Lead time - 3 days
First, we need to calculate the safety stock, which is the buffer inventory needed to account for demand variability during the lead time.
Since demand follows a normal distribution, we can use a service level to determine the appropriate safety stock. Let's assume a service level of 95%, which corresponds to a z-value of 1.645.
Safety stock = z * standard deviation of daily demand * square root of lead time
= 1.645 * 156 * √3
= 366.79 units
Next, we can calculate the expected on-hand inventory using the order-up-to level and subtracting the safety stock.
Expected on-hand inventory = Order-up-to level - Safety stock
= 2464 - 366.79
= 2097.21 units
Therefore, the expected on-hand inventory for Caruso's Frozen Pizza at ACold Inc's warehouse is approximately 2097 units.
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6) Kurt is employed by a radio station and is provided with the following benefits under the station's cafeteria plan in the current year: Medical reimbursements not deducted $ 200 1,400 Medical insurance premiums Group-term life insurance premiums (face amount of insurance of $50,000) 225 750 Cash $2.575 Total cafeteria plan How much may Kurt exclude from his current-year gross income? O A $1,825 B $2,575 OC $0 OD $1,400 5) Lisa is a flight attendant for a major airline. Throughout the current year, she received the following benefits from her employer: Salary $30,000 Free travel on planes, when not displacing paying customers 4,000 Most Friendly Flight Attendant Cash Award 150 Free dinners while in flight when working 600 $34,750 How much must Lisa include in her current-year gross income? O A $34,750 O B $30,600 O C $30,750 O D $30,150
Lisa must include $34,750 in her current-year gross income.
For Kurt's situation, under the cafeteria plan, the following benefits may be excluded from his current-year gross income:
Medical reimbursements not deducted: $200
Medical insurance premiums: $1,400
Group-term life insurance premiums: $225
Total exclusion: $200 + $1,400 + $225 = $1,825
Therefore, Kurt may exclude $1,825 from his current-year gross income.
For Lisa's situation, the following benefits must be included in her current-year gross income:
Salary: $30,000
Free travel on planes (non-revenue flights): $4,000
Most Friendly Flight Attendant Cash Award: $150
Free dinners while in flight: $600
Total inclusion: $30,000 + $4,000 + $150 + $600 = $34,750
Therefore, Lisa must include $34,750 in her current-year gross income.
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Assume the following: the investor's required rate of return is 13.5 percent, • the expected level of earnings at the end of this year (E₁) is $6, • the retention ratio is 40 percent, • the return on equity (ROE) is 15 percent (that is, it can earn 15 percent on reinvested earnings), and • similar shares of stock sell at multiples of 8.000 times earnings per share. Questions: a. Determine the expected growth rate for dividends. b. Determine the price earnings ratio (P/E₁). c. What is the stock price using the P/E ratio valuation method? d. What is the stock price using the dividend discount model? e. What would happen to the P/E ratio (P/E₁) and stock price if the company increased its retention rate to 75 percent (holding all else constant)? What would happen to the P/E ratio (P/E₁) and stock price if the company paid out all its earnings in the form of dividends? f. What have you learned about the relationship between the retention rate and the P/E ratios
a. The expected growth rate for dividends: 6%
b. Price earnings ratio (P/E₁): 8.000
c. Stock price using the P/E ratio valuation method: $48
d. Stock price using the dividend discount model: $33.33
e. If the company increased its retention rate to 75%, the P/E ratio and stock price would change accordingly.
f. The retention rate (b) affects the expected growth rate (g), P/E ratios, and stock prices. Higher retention rates generally lead to higher growth rates, P/E ratios, and stock prices,while lower retention rates result in lower growth rates, P/E ratios, and stock prices.
How is this so ?To answer the questions, we'll use the given information and formulas
a. The expected growth rate for dividends (g) can be calculated using the retention ratio (b) and return on equity (ROE) as follows:
g = b * ROE
g = 0.40 * 0.15
g = 0.06 or 6%
b. The price-earnings ratio (P/E₁) can be calculated by dividing the stock price by the earnings per share (EPS) -
P/E₁ = Price / EPS
P/E₁ = 8.000
c. The stock price using the P/E ratio valuation method can be calculated by multiplying the earnings per share (EPS) by the P/E ratio -
Stock Price = EPS * P/E₁
Stock Price = $6 * 8.000
Stock Price = $48
d. The stock price using the dividend discount model can be calculated as follows -
Stock Price = Dividends / (Required Rate of Return - Growth Rate)
Dividends = E₁ * b = $6 * 0.40 = $2.40
Stock Price = $2.40 / (0.135 - 0.06)
Stock Price ≈ $33.33
e. If the company increases its retention rate to 75% -
- The expected growth rate for dividends (g) would be -
g = 0.75 * 0.15 = 0.1125 or 11.25%
- The new P/E ratio (P/E₁) and stock price using the dividend discount model would change accordingly.
If the company paid out all its earnings in the form of dividends (b = 1):
- The expected growth rate for dividends (g) would be zero.
- The P/E ratio (P/E₁) and stock price using the dividend discount model would also change accordingly.
f. Based on the calculations in part (e),we can observe that the retention rate (b) affects the expected growth rate (g) and, consequently, the P/E ratio (P/E₁) and stock price.
Higher retention rates lead to higher expected growth rates,which can result in higher P/E ratios and stock prices.
Conversely,lower retention rates can lead to lower growth rates and, consequently, lower P/E ratios and stock prices.
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Mrs. Publinsky and her husband, Xander, are planning their dream house. The lot for the house sits high on a hill with a beautiful view of the White Mountains. The plans show the size of the house to be 2,900 square feet. The average price for a lot and house similar to this one has been $150 per square foot. Fortunately, Xander is a retired plumber and feels he can save money by installing the plumbing himself. Mrs. Publinsky feels she can take care of the interior decorating. The following average cost information is available from a local bank that makes loans to local contractors and dispenses progress payments to contractors when specific tasks are verified as complete.
25 % Excavation and framing complete
8 % Roof and fireplace complete
3 % Wiring roughed in
6 % Plumbing roughed in
5 % Siding on
17 % Windows, insulation, walks, plaster, and garage complete
9 % Furnace installed
4 % Plumbing fixtures installed
5 % Exterior painting complete
4 % Light fixtures installed, finish hardware installed
6 % Carpet and trim installed
4 % Interior decorating
4 % Floors laid and finished
Calculate the estimated cost for the Publinskys' house if they use contractors to complete all of the house. (Round the final answer to the nearest dollar.)
Calculate the estimated cost for the Publinskys’s house if they use their talents to do some of the work themselves (all plumbing, painting and interior decoration). (Round the final answer to the nearest dollar.)
The estimated cost of the Publinskys's house if they use their talents to do some of the work themselves (all plumbing, painting, and interior decoration) is $381,450
Mrs. Publinsky and her husband, Xander, are planning their dream house. The plans show the size of the house to be 2,900 square feet, and the lot for the house sits high on a hill with a beautiful view of the White Mountains. The average price for a lot and house similar to this one has been $150 per square foot. Fortunately, Xander is a retired plumber and feels he can save money by installing the plumbing himself. Mrs. Publinsky feels she can take care of the interior decorating. The estimated cost of the Publinskys' house using contractors to complete all of the house is as follows:Firstly, to calculate the total cost, we need to find the average price of the lot and house which will be 2900 square feet × $150/square foot
= $435,000.
The following is the cost breakdown based on the information available from the local bank. 25% Excavation and framing complete, which would cost
$435,000 × 25%
= $108,750.8%
Roof and fireplace complete would cost
$435,000 × 8%
= $34,800.3%
Wiring roughed in would cost
$435,000 × 3%
= $13,050.6%
Plumbing roughed in would cost
$435,000 × 6%
= $26,100.5%
Siding on would cost
$435,000 × 5%
= $21,750.17%
Windows, insulation, walks, plaster, and garage complete would cost
$435,000 × 17%
= $73,950.9%
Furnace installed would cost
$435,000 × 9%
= $39,150.4%
Plumbing fixtures installed would cost
$435,000 × 4%
= $17,400.5%
Exterior painting complete would cost
$435,000 × 5%
= $21,750.4%
Light fixtures installed, finish hardware installed would cost
$435,000 × 4%
= $17,400.6%
Carpet and trim installed would cost
$435,000 × 6%
= $26,100.4%
Interior decorating would cost
$435,000 × 4%
= $17,400.4%
Floors laid and finished would cost
$435,000 × 4%
= $17,400.
Using contractors to complete all of the work would cost
$108,750 + $34,800 + $13,050 + $26,100 + $21,750 + $73,950 + $39,150 + $17,400 + $21,750 + $17,400 + $26,100 + $17,400 + $17,400
= $446,700
.The estimated cost of the Publinskys's house if they use their talents to do some of the work themselves (all plumbing, painting, and interior decoration) is as follows:We can reduce some of the cost since Xander and Mrs. Publinsky will be doing some of the work themselves. For plumbing, painting, and interior decoration, the cost would be reduced by $26,100 + $21,750 + $17,400
= $65,250.
Using Xander and Mrs. Publinsky to do some of the work themselves (all plumbing, painting, and interior decoration) would cost
$446,700 - $65,250
= $381,450
Thus, the estimated cost of the Publinskys' house if they use contractors to complete all of the work is $446,700. The estimated cost of the Publinskys's house if they use their talents to do some of the work themselves (all plumbing, painting, and interior decoration) is $381,450.
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Determine the value of z.
Question 9 options:
A)
53°
B)
121°
C)
57°
D)
239°
Explanation:
Let angle y be the unknown angle inside the triangle.
given
y + 87 + 34 = 180 (sum of angles in a triangle)
[tex]y + 87 + 34 = 180 \\ y + 121 = 180 \\ y = 180 - 121 \\ = 59[/tex]
given y + z = 180 (angles on same straight line)
[tex]y + z = 180 \\ 59 + z = 180 \\ z = 180 - 59 \\ = 121[/tex]
The answer should be 121°
Q3. What are the advantages of using SDLC? Start by describing SDLC you studied in this course
The advantages of using SDLC are assurance of quality, risk management, and a structured approach.
Software development is conducted according to the SDLC, which is organised and methodical. It ensures that all required activities are taken and that they are done in a logical order by providing a clear roadmap and rules for each stage of development. This aids in minimising rework, increasing efficiency, and eliminating mistakes. To make sure that the software system satisfies the intended functionality and fulfils user demands, it comprises in-depth requirement collecting and analysis. It aids in early need identification and clarification, lowering the possibility of misunderstandings and expensive revisions in the future.
Potential hazards may be identified and managed during development process with the help of the SDLC. Incorporating risk analysis and mitigation measures aids in spotting and proactively resolving possible problems. By doing this, the likelihood of project failure or delays brought on by unknown risks is decreased. Additionally, quality is emphasised at every stage of the software development process. Testing, code reviews, and user acceptability testing are examples of quality assurance activities that are implemented at different levels. This guarantees that the software system satisfies the specified quality requirements, functions as anticipated, and is devoid of significant flaws.
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Dorian Gray takes out loans with each of Bank 1 (for $10,000), Bank 2 (for $20,000), Bank 3 (for $30,000) and Bank 4 ($40,000) granting an interest in a painting valued at $200,000, to secure each loan. Mr. Gray subsequently defaults on all four of the loans. Bank 1 has first priority, Bank 2 has second priority, Bank three has third priority and Bank 4 has fourth priority. Bank 3 decides to foreclose on the painting.
a. Assuming that the cost of the foreclosure sale is $5,000, and that the sale yields $50,000, how much money will each Bank receive from the sale?
b. At the conclusion of the sale, which bank(s), if any, will still have a security interest in the painting?
The proceeds of the foreclosure sale ($50,000) are applied in the order of priority. Bank 3 has third priority, so it will be paid third. As a result, Banks 1 and 2 must be paid first. The foreclosure sale cost ($5,000) will be paid from the proceeds before any of the banks receive payment.
a. The proceeds of the foreclosure sale ($50,000) are applied in the order of priority. Bank 3 has third priority, so it will be paid third. As a result, Banks 1 and 2 must be paid first. The foreclosure sale cost ($5,000) will be paid from the proceeds before any of the banks receive payment. As a result, the amount of money that each bank receives from the sale is as follows:
Bank 1: $10,000 (original loan) + $5,000 (foreclosure cost) + $15,000 (proceeds from the sale after foreclosure cost) = $30,000
Bank 2: $20,000 (original loan) + $15,000 (proceeds from the sale after foreclosure cost) = $35,000
Bank 3: $30,000 (original loan) - $50,000 (proceeds from the sale) = $0
Bank 4: $40,000 (original loan) - $0 (no proceeds from the sale) = $40,000
b. Bank 4 will still have a security interest in the painting since it has the lowest priority, but the foreclosure sale did not generate enough proceeds to cover its outstanding loan balance. This means that Bank 4 can continue to pursue other legal remedies against Mr. Gray to collect the unpaid debt or attempt to foreclose on the painting at a later time if its value increases.
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Question 11 The cost of land improvements includes fencing, paving, parking areas, and lighting. O True O False
The statement "The cost of land improvements includes fencing, paving, parking areas, and lighting." is true.
The cost of land improvements includes fencing, paving, parking areas, and lighting. Land improvements are enhancements to the property to increase its overall value. They can include items such as landscaping, paving a parking lot, or building a sidewalk. When a company purchases land, it might require further work before the land is usable or productive.
In this case, the cost of those improvements would be added to the cost of the land, which is the purchase price plus other expenses directly related to the acquisition. This category includes all expenses incurred to make the property suitable for its intended use. This category also includes demolition costs of an old building or other structure if the cost of demolition was included in the purchase price of the land.
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"A diplomat's word must have no relation to actions, otherwise what kind of diplomacy is it. Words are one thing, actions another. Good words are a mask for the concealment of bad deeds. Sincere diplomacy is no more possible than dry water and wooden iron."
The above-mentioned quote by Oliver Wendell Holmes, Jr. highlights the importance of action in diplomacy. He argues that if the words spoken by a diplomat are not in accordance with their actions, then the very essence of diplomacy is lost.
Words can be used to mask bad deeds, but true diplomacy requires actions that match the words being spoken.Oliver Wendell Holmes, Jr. believes that sincere diplomacy is impossible because words and actions can often be in conflict with each other. Diplomats can use flowery language and make promises, but unless their actions match their words, they cannot be trusted. Diplomacy is a delicate art that requires both skillful language and careful actions to achieve the desired outcome.
A good diplomat must be able to balance their words and actions to create a strategy that can benefit their country. In conclusion, a diplomat's words must be backed up by actions, or else the very foundation of diplomacy is lost. Diplomats must strive for sincerity in both their words and actions to establish trust and create meaningful relationships.
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Compute interest for the simple interest and the amount on a
P15,000 salary loan at 12% simple for 3years.
The interest on the loan is P5,400, and the total amount to be paid at the end of 3 years is P20,400.
The interest and the total amount on a simple interest loan, you can use the following formulas:
Interest (I) = Principal (P) * Rate (R) * Time (T)
Amount (A) = Principal (P) + Interest (I)
Given:
Principal (P) = P15,000
Rate (R) = 12% or 0.12 (in decimal form)
Time (T) = 3 years
Using the formulas, let's calculate the interest and the amount:
Interest (I) = P * R * T
= 15,000 * 0.12 * 3
= 5,400
Amount (A) = P + I
= 15,000 + 5,400
= 20,400
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A futures contract on a 30-day Eurodollar time deposit is currently selling at an IMM index of 95.75 percent. The IMM index on a 30-day Eurodollar time deposit for immediate delivery is 95.10 percent. What is the basis?
please show work
The basis is calculated by subtracting the spot price (IMM index) from the futures contract price. In this case, the basis is 0.65% (95.75% - 95.10%).
The basis is the difference between the futures price and the spot price. The spot price is the price of the underlying asset for immediate delivery, in this case, a 30-day Eurodollar time deposit.
The futures price is the price of the futures contract, which is a contract to buy or sell the underlying asset at a future date. In this case, the futures price is the price of the futures contract on a 30-day Eurodollar time deposit.
To calculate the basis, we can use the following formula:
Basis = Futures price - Spot price
Plugging in the given values, we get:
Basis = 95.75% - 95.10% = 0.65%
Therefore, the basis is 0.65%.
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To maximize profits the business shown on the graph below should produce at MC Price OO qo $5 0 90 91 Quantity of Wheat (bushels per year) q2 they should produce 0, since they are making a loss O We c
In the given graph, the quantity of wheat produced per year (q) is shown on the x-axis and the price of wheat (P) is shown on the y-axis.
The Marginal Cost (MC) curve and the Marginal Revenue (MR) curve are shown in blue and red, respectively. The MC curve intersects the MR curve at point E, which is the profit-maximizing level of output.Point E occurs at a quantity of q1, where the price is $4.50 per bushel. At this quantity, the total cost is $405, total revenue is $450, and profit is $45.
Therefore, to maximize profits, the business shown on the graph below should produce q1, which is 91 bushels of wheat per year. They should not produce 0 since there is a point where the MR=MC which shows the profit-maximizing level of output. At this output level, the firm can maximize profits. At 0 output, there will be no revenue and they will be making a loss. Hence, producing zero quantity of wheat is not the solution to maximize profits.
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Ann buys a property that costs $1,000,000. She finances the purchase with a 70% LTV mortgage. She gets a 20 year interest only fixed rate mortgage at an annual interest rate of 5%, with annual compounding and annual payments. Ann must pay 2 points upfront in mortgage closing costs (as a % of the loan amount). The loan has a 5/4/3/2/1 prepayment penalty structure (she must pay a 5% penalty if she prepays at any time in the first year, 4% penalty in the second year, etc). Suppose Ann will sell the property during year 3, after she makes the 3rd year’s mortgage payment and pays off the balance when she sells. What is Ann’s annualized IRR for the loan ? A. 5.00% B. 5.74% C. 6.69% D. 5.10%
The correct answer is B. 5.74%.To calculate Ann's annualized IRR for the loan, the following formula will be used:PV = -$700,000PMT = $35,000FV = $0N = 20
The formula to calculate IRR is:N = 20PMT = $35,000PV = -$700,000IRR = 5.74%Using the annualized IRR formula:End of year 1: She paid for the loan's interests only: $700,000 * 5% = $35,000End of year 2: Remaining balance is $700,000 after making 2 years' payments; she still owes $700,000 x 0.3 = $210,000. If she prepays, she must pay 5% of the outstanding balance as a penalty, so if she prepays at the end of year 2, the penalty is 5% x $210,000 = $10,500; her remaining balance is $210,000 + $10,500 = $220,500.End of year 3: Remaining balance is $220,500 after making 3 years' payments; she still owes $220,500. If she prepays, she must pay 4% of the outstanding balance as a penalty, so if she prepays at the end of year 3, the penalty is 4% x $220,500 = $8,820; her remaining balance is $220,500 + $8,820 = $229,320.Ann received $1,000,000 * 0.7 = $700,000 in the loan, and she paid 2% upfront mortgage closing costs. Therefore, she received only $700,000 x (1 - 0.02) = $686,000 in net proceeds. After 3 years, she has to pay off $229,320, so she will receive $1,000,000 - $229,320 = $770,680. Her profit is $770,680 - $686,000 = $84,680.IRR = [(Ending amount / Beginning amount)^(1/years passed)] - 1IRR = [($84,680/$686,000)^(1/3)] - 1IRR = 5.74%Therefore, Ann’s annualized IRR for the loan is 5.74%.
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Interest expense on a note payable is only recorded at maturity
a- True
(b- False
The statement "Interest expense on a note payable is only recorded at maturity" is false.
Interest expense is the amount paid for borrowing money or the amount earned by lending money. It is the amount that a borrower pays to a lender for using their funds for a particular time frame. It is considered a cost of borrowing because the borrower needs to pay interest in addition to the amount borrowed. A note payable is a promissory note that outlines the terms and conditions of the loan and the amount to be repaid. It is a written promise to pay a specific amount of money at a particular date in the future. The borrower must pay the interest and principal amounts to the lender as per the terms and conditions of the note payable.
The statement "Interest expense on a note payable is only recorded at maturity" is false. Interest expense on a note payable is recorded throughout the life of the note payable. It is recorded in the borrower's income statement as an interest expense and in the lender's income statement as an interest income. The amount of interest expense that is recorded depends on the terms of the note payable, such as the interest rate, the principal amount, and the maturity date. Therefore, the given statement is false.
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When a firm produces 600 widgets with total cost of $1,300 and
fixed cost of $800, what is the average variable cost?
The average variable cost is $0.83 per widget.
To calculate the average variable cost, we need to understand the concept of variable costs and how they relate to the production of widgets. Variable costs are expenses that change in direct proportion to the level of production or output. They include costs such as labor, raw materials, and utilities, which increase as the firm produces more widgets.
In this scenario, the firm produces 600 widgets with a total cost of $1,300 and fixed costs of $800. Fixed costs are expenses that do not change with the level of production and remain constant regardless of the number of widgets produced. In this case, the fixed costs are incurred regardless of whether the firm produces 600 widgets or any other quantity.
To find the average variable cost, we need to calculate the total variable cost. Total variable cost can be obtained by subtracting the fixed costs from the total costs. In this case, the total variable cost is $1,300 - $800 = $500.
Next, we divide the total variable cost by the quantity of widgets produced to find the average variable cost. In this case, the average variable cost is $500 / 600 = $0.83 per widget.
The average variable cost represents the variable cost incurred per unit of output. It indicates how much the firm is spending on variable inputs, such as labor and materials, to produce each widget. In this case, the firm incurs an average variable cost of $0.83 for each of the 600 widgets produced.
Understanding the average variable cost is essential for firms to make informed decisions about their production levels and pricing strategies. By analyzing the relationship between the cost of producing each unit and the market price of the product, firms can assess their profitability and make adjustments to optimize their operations.
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Find the exact meaning of each Then: Defire each term in Arabic. term in Arabic. 1. Stock 2. Bond 3. Pent up demand 4 Dow Jones Industrial 5. Financial Market
1. Stock (سهم): It refers to a share or ownership interest in a company. When someone owns stocks, they are considered a shareholder in that company.
2. Bond (سند): It refers to a fixed-income investment where an investor lends money to an entity, typically a government or corporation, in return for periodic interest payments and the repayment of the principal amount at maturity.
3. Pent up demand (الطلب المكبوت): It refers to a situation where there is a significant and unmet demand for a product or service due to various factors such as limited supply, restrictions, or economic conditions. Once the barriers are lifted or conditions change, the demand is released or "pent up."
4. Dow Jones Industrial (داو جونز الصناعي): It is a stock market index that represents the performance of 30 large, publicly traded companies in the United States. The Dow Jones Industrial Average (DJIA) is often used as an indicator of the overall health of the U.S. stock market.
5. Financial Market (السوق المالية): It refers to a marketplace where various financial instruments such as stocks, bonds, currencies, and derivatives are traded. It provides a platform for buyers and sellers to engage in transactions related to these financial assets. The financial market plays a crucial role in facilitating the flow of capital and determining prices for these assets.
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6. Using the one-period valuation model, assuming a year-end dividend of $5.00, an expected sales price of $100, and a required rate of return of 5 percent, the current price of the stock would be A.
Using the one-period valuation model, assuming a year-end dividend of $5.00, an expected sales price of $100, and a required rate of return of 5 percent, the current price of the stock would be $100.50.The one-period valuation model is one of the most straightforward and basic models used to determine the price of a stock or other financial instrument.
According to this model, the current price of a stock can be determined by calculating the present value of all future cash flows associated with the stock.In this case, the cash flows include the year-end dividend of $5.00 and the expected sales price of $100.
Assuming a required rate of return of 5 percent, we can calculate the present value of these cash flows as follows:Present Value = (Dividend + Expected Sales Price) / (1 + Required Rate of Return)Present Value = ($5.00 + $100) / (1 + 0.05)Present Value = $105.00 / 1.05Present Value = $100.00Therefore, the current price of the stock would be $100.50, which is the present value of the year-end dividend and the expected sales price.
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Assume that the inverse demand function is given by P = 240 − Q. The discount factor is 0.9. Marginal production costs are initially £120.
(a) Calculate the market equilibrium price, output, and profits on the assumption that the market is currently: (i) monopolized, and (ii) a Bertrand duopoly with homogeneous products. Note that in the duopoly case with identical marginal costs, if firms charge the same price, they share the market equally.
(b) Suppose that a research institute develops and obtains a patent for a new technology that reduces the marginal costs to £60. Calculate the new market equilibrium price, output, and profits for (i) the monopolist, and (ii) each duopolist. Note that in the duopoly case, the innovation is made available to only one firm, and if both firms charge the same price, consumers always buy from the most efficient firm.
(a) (i) Monopoly pricing:Equation of the inverse demand curve:P = 240 - QIn order to calculate the equilibrium price and output for a monopolist, we need to begin with the firm's marginal revenue (MR) curve. In a competitive market, MR is equal to price (P), but for a monopolist, this is not true.
The firm must lower the price to sell more output, thus reducing the revenue per unit on all units sold. Therefore, MR is less than P for a monopolist.MR = dTR/dQ = P + Q * dP/dQ = P - Q * (1/240)The firm's profit-maximizing output is determined by the condition MR = MC.120 = P - Q * (1/240) ⇒ Q = 120 * 240 / 481 ⇒ Q = 59.68Price = P = 240 - Q = 240 - 59.68 = 180.32Profit = π = TR - TC = PQ - MC * Q = 180.32 * 59.68 - 120 * 59.68 = £6,460.90
(ii) Bertrand duopoly: If the two firms charge different prices, the one that charges the lowest price will win the entire market. Thus, each firm will choose to charge the lowest price it can while still making zero profits. Under this pricing strategy, each firm will charge a price equal to its marginal cost of production, and the market will be shared equally between the two firms.MC1 = MC2 = 120MR1 = MR2 = P We use the market demand function to determine the output for each firm. P = 240 - Q1 - Q2Q1 + Q2 = Q *P = 240 - QQ = 240 - P Q1 = (240 - P)/2Q2 = (240 - P)/2Price = P = MC = 120Quantity = 60 each Profit = π = TR - TC = PQ - MC * Q = 60 * (180 - 120) = £3,600(b) (i) Monopoly pricing: With the new technology, the firm's marginal cost of production falls from £120 to £60. The firm's marginal revenue curve is the same as before (MR = P - Q/240).
Now, we must determine the new profit-maximizing output level by equating MR with MC.MC = £60MR = £240 - Q/240The firm's profit-maximizing output level is determined by setting MR = MC.60 = 240 - Q/240Q = 3 * 240 / 4 ⇒ Q = 180Price = P = 240 - Q = 240 - 180 = £60Profit = π = PQ - MC * Q = 60 * 180 - 60 * 180 = £6,480(ii) Bertrand duopoly: If the two firms charge different prices, the one that charges the lowest price will win the entire market. Thus, each firm will choose to charge the lowest price it can while still making zero profits.MC1 = MC2 = £60MR1 = MR2 = P We use the market demand function to determine the output for each firm. P = 240 - Q1 - Q2Q1 + Q2 = Q *P = 240 - QQ = 240 - P Q1 = (240 - P)/2Q2 = (240 - P)/2Price = P = MC = £60Quantity = 90 each Profit = π = TR - TC = PQ - MC * Q = 90 * (180 - 60) = £10,800.
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Question 10 What is true when economic profit is negative? Accounting profit must be negative. Accounting profit must be positive. Accounting profit must be equal to 0. None of the above. 1 pts
When the economic profit is negative, accounting profit must be positive. The given statement "When economic profit is negative, accounting profit must be positive" is True. What is the economic profit?
The economic profit is the profit which is measured by considering the opportunity. of the inputs that are being used in production. It is obtained by subtracting explicit costs from the revenue, minus the implicit costs of the inputs. It is an indication of how efficiently resources are being allocated. The formula for calculating the economic profit is given by: Economic Profit = Total Revenue − Explicit Costs − Implicit Costs What is the accounting profit? Accounting profit is defined as the profit calculated by deducting explicit costs from total revenue.
Explicit costs are the costs that the firm incurs in the production process. This includes expenses like wages, rent, salaries, raw materials, depreciation, and other expenses. It does not account for implicit costs like the opportunity cost of the inputs used in the production process. The formula for accounting profit is given by: Accounting Profit = Total Revenue − Explicit Costs When the economic profit is negative, accounting profit must be positive because the implicit cost is not considered while calculating the accounting profit.
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In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the terminal stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.70. The dividends are expected to grow at 20 percent over the next five years. In five years, the estimated payout ratio is 34 percent and the benchmark PE ratio is 32. a. What is the target stock price in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the stock price today assuming a required return of 11 percent on this stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price in 5 years b. Stock price today
a. Target stock price in five years Dividend growth rate = 20% Dividend payment this year = $1.70 Dividend paid at the end of 1st year = $1.70 × (1 + 20%) = $2.04
Dividend paid at the end of 2nd year = $2.04 × (1 + 20%) = $2.45 Dividend paid at the end of 3rd year = $2.45 × (1 + 20%) = $2.94 Dividend paid at the end of 4th year = $2.94 × (1 + 20%) = $3.53
Dividend paid at the end of 5th year = $3.53 × (1 + 20%) = $4.24
Dividend payout ratio after 5 years = 34%
Benchmark PE ratio = 32
Expected price-to-earnings ratio (P/E) = 1 / (0.11 - 0.20) = -12.50
Ending stock price (in 5 years) = $4.24 × (1 + 34%) / (0.11 - 0.34)
= -$97.94
Given that the expected price-to-earnings ratio is negative, it indicates that the share price is expected to fall. Therefore, we cannot use the above formula for this question.
b. Stock price today
Dividend payment this year = $1.70
Dividend paid at the end of 1st year = $2.04
Dividend paid at the end of 2nd year = $2.45
Dividend paid at the end of 3rd year = $2.94
Dividend paid at the end of 4th year = $3.53
Dividend paid at the end of 5th year = $4.24
Dividend payout ratio after 5 years = 34%
Benchmark PE ratio = 32
Expected price-to-earnings ratio (P/E) = 1 / (0.11 - 0.20) = -12.50
Ending stock price (in 5 years) = $4.24 × (1 + 34%) / (0.11 - 0.34)
= -$97.94
Present value of expected future dividends
= $2.04 / (1 + 0.11) + $2.45 / (1 + 0.11)² + $2.94 / (1 + 0.11)³ + $3.53 / (1 + 0.11)⁴ + $4.24 / (1 + 0.11)⁵
= $10.94
Present value of the ending stock price
= $97.94 / (1 + 0.11)⁵
= $49.26
Present value of the stock
= $10.94 + $49.26
= $60.20
Therefore, the stock price today assuming a required return of 11 percent on this stock is $60.20.
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Question 3 of 7 < > View Policies Current Attempt in Progress At December 31, 2021, Cullumber Company had a five-month, 5%, $74,400 note receivable that was issued on October 1, 2021. Interest and principal are payable at maturity on March 1, 2022. Prepare the December 31, 2021, adjusting entry for accrued interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Dec. 31 -17 E (To accrue interest at year-end) Debit Credit
The adjusting entry for accrued interest on the note receivable is as follows:
Debit Interest Receivable for $930Credit Interest Revenue for $930What is the December 31, 2021, adjusting entry for accrued interest on the note receivable?An adjusting entries refers to journal entries usually made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred
Days between October 1, 2021, and December 31, 2021:
= 3 months * 30 days/month
= 90 days
Accrued Interest = Principal * Interest Rate * (Days / 360)
Accrued Interest = $74,400 * 5% * (90/360)
Accrued Interest = $930
Adjusting Entry:
Date | Account | Debit | Credit
December 31, 2021 | Interest Receivable | $930 |
| Interest Revenue | | $930.
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A bill of material is desired for a bracket (Z 100) that is made up of a base (A springs (B 11) and four clamps (C 20). The base is assembled from one clamp (C two housings (D 21). Each clamp has one handle (E 30) and each housing bearings (F 31) and one shaft (G 32). (a) Design a product structure tree that includes the level coding information. (b) Show the data in the form of an indented bill of material. 1. A bill of material is desired for a bracket (Z 100) that is made up of a base (A 10), two springs (B 11) and four clamps (C 20). The base is assembled from one clamp (C 20) and two housings (D 21). Each clamp has one handle (E 30) and each housing has two bearings (F 31) and one shaft (G 32). (a) Design a product structure tree that includes the level coding information. (b) Show the data in the form of an indented bill of material.
a) Product Structure Tree starts from level 0: Bracket (Z 100) and ends at Level 4: Shaft (G 32). b) The data shows a row of an indented bill of material starting from Z 100A ending at 32.
a) Product Structure Tree with Level Coding Information of a bracket (Z 100):
Level 0: Bracket (Z 100)
Level 1: Base (A 10)
Level 2: Clamp (C 20)
Level 3: Handle (E 30)
Level 3: Housing (D 21)
Level 4: Bearing (F 31)
Level 4: Shaft (G 32)
Level 1: Spring (B 11)
Level 1: Spring (B 11)
Level 1: Clamp (C 20)
Level 3: Handle (E 30)
Level 3: Housing (D 21)
Level 4: Bearing (F 31)
Level 4: Shaft (G 32)
b) Indented Bill of Material:
Z 100A 10C 20E 30D 21F 31G 32B 11B 11C 20E 30D 21F 31G 32C 20E 30D 21F 31G 32C 20E 30D 21F 31G 32C 20E 30D 21F 31G 32
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Bolton Industries has provided the following information:
Operating expenses were $690,000, Income from operations was $830,000,
Interest expense was $142,000,
Net sales were $2,200,000, Income tax expense was $116,000
Loss from sale of investments was $174,000,
What was Bolton's net income?
Multiple Choice
A. $312.000
B. $656,000
C. $398.000
D. $746,000
The net income of Bolton Industries is $398,000. Option C
To calculate Bolton Industries' net income, we need to subtract the relevant expenses from the income generated.
Given information:
Operating expenses: $690,000
Income from operations: $830,000
Interest expense: $142,000
Net sales: $2,200,000
Income tax expense: $116,000
Loss from sale of investments: $174,000
To calculate net income, we follow the formula:
Net Income = Income from operations - Interest expense +/- Other gains/losses - Income tax expense
Substituting the given values:
Net Income = $830,000 - $142,000 - $174,000 - $116,000
Net Income = $398,000
Therefore, the net income of Bolton Industries is $398,000.
The correct answer is:
C. $398,000
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Which of the below questions does corporate finance not address?
a. What long-term investments should the firm choose?
b. How should the firm raise funds for the selected investment?
c. How to best price a new product?
d. How should short-term assets be managed and financed?
The correct option for the question is (c).Corporate finance is a branch of finance that focuses on how companies use their capital to create value. It involves making decisions about long-term investments, funding sources, and managing short-term assets.
However, there are certain questions that corporate finance does not address.
Below are the answers to the question:The correct answer is option (c) How to best price a new product. Corporate finance does not address questions related to pricing products.
Instead, it focuses on the following questions:a. What long-term investments should the firm choose?This involves deciding which projects or investments to undertake. Corporate finance evaluates each project's risks and returns to determine which one would create the most value for the firm.
b.Corporate finance deals with finding the best sources of funding for the selected investment. This involves deciding between equity and debt financing or a combination of both.
c. Corporate finance determines the best way to manage and finance short-term assets like inventory, accounts receivable, and cash. It focuses on maintaining liquidity to meet the company's day-to-day financial obligations.
Therefore, the correct option for the question is (c) How to best price a new product. Corporate finance is not concerned with pricing decisions.
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1) When considering the impact of external economies of scale on trade, we should expect that they would lead to:
A) an expansion of trade because more firms would be supported in the relevant industry, and this would be conducive to more trade globally.
B) higher prices for the exporting country because this country could take advantage of its comparative advantage and reap at least some of the benefits from this advantage.
C) trade dominance by the country best able to utilise these economies.
D) a collapse of trade because they would drive prices so low that no firms would be able to make any profit.
E) none of the above.
When considering the impact of external economies of scale on trade, we should expect that they would lead to an expansion of trade because more firms would be supported in the relevant industry, and this would be conducive to more trade globally. This is the correct option.Explanation:External economies of scale are the economies of scale that are spread across an entire industry, not just a single firm.
The cost of manufacturing the product decreases as a result of economies of scale, resulting in lower costs for the firm, increased productivity, and ultimately increased revenue. External economies of scale influence not only the firm but also the entire industry. They occur when the production cost of a good or service decreases as the number of firms in the industry grows. As a result, the entire industry benefits from the reduced cost of production.
Because the cost of production has decreased, this might lead to an increase in the amount of goods produced and exported. It is also likely that firms in other countries will join the industry, resulting in increased global trade. As a result, when considering the impact of external economies of scale on trade, we should expect that they would lead to an expansion of trade because more firms would be supported in the relevant industry, and this would be conducive to more trade globally. Therefore, option A is correct.
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asset tracking in one potential application of the internet of things.
Asset tracking is indeed one of the key applications of the Internet of Things (IoT). With the proliferation of connected devices, sensors, and data networks, organizations can track and monitor their assets in real-time, leading to enhanced operational efficiency and improved asset management.
The IoT enables businesses to deploy sensors and tags on assets such as equipment, vehicles, inventory, or even personnel. These devices collect and transmit data about the asset's location, status, condition, and other relevant information. This real-time visibility allows organizations to optimize their asset utilization, streamline workflows, and reduce costs.
Asset tracking through IoT can provide several benefits. It helps prevent loss or theft of assets by providing continuous monitoring and alerts in case of unauthorized movement or tampering. It also enables predictive maintenance by collecting data on asset performance and triggering maintenance actions before failures occur. Additionally, it facilitates efficient inventory management, ensuring optimal stock levels and reducing wastage.
Overall, IoT-based asset tracking empowers businesses to make data-driven decisions, improve asset utilization, and enhance operational effectiveness, ultimately leading to increased productivity and customer satisfaction.
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the entry to record the issuance of 9,000 shares of $5 par value common stock at $9 per share includes a: select one: a. credit to common stock for $81,000 b. credit to common stock for $45,000 c. credit to paid-in capital in excess of par value-common for $45,000 d. debit to paid-in capital in excess of par value-common for $36,000
The entry to record the issuance of 9,000 shares of $5 par value common stock at $9 per share includes "D: debit to paid-in capital in excess of par value-common for $36,000.
When shares of common stock are issued, the entry includes a debit to the cash or accounts receivable account for the total cash received from the issuance. In this case, since 9,000 shares are issued at $9 per share, the total cash received is $81,000 (9,000 shares * $9).
The par value of the common stock is $5 per share, which represents the minimum legal capital that must be maintained. Any amount received above the par value is considered as paid-in capital in excess of par value.
To record the issuance of the shares, we debit the cash or accounts receivable account for $81,000 and credit the common stock account for the par value of the shares issued. In this case, the par value of each share is $5, so the credit to the common stock account is $45,000 (9,000 shares * $5).
The remaining amount of $36,000 ($81,000 - $45,000) represents the excess of the issuance price over the par value. This excess is recorded as a credit to the paid-in capital in excess of par value-common account.
Therefore, the correct entry to record the issuance of 9,000 shares of $5 par value common stock at $9 per share includes D: a debit to paid-in capital in excess of par value-common for $36,000.
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What are 4 reasons why you should print, save, or make a copy of your job application???
Answer:
Be Prepared. Make sure you know the correct names, dates, places and other information you will need
(a) Using relevant examples, explain four characteristics of services.
(b) Using examples, evaluate importance of people, process and physical evidence being integrated with other elements of the marketing mix.
A. Any action or advantage that one party can provide to another that is fundamentally intangible and does not lead to the ownership of something is referred to as a service. The nature of services is intangible. It means that until a service is purchased, it cannot be seen, tasted, touched, heard.
Services have the important quality of inseparability. It indicates that whether provided by humans or computers, services are created and used concurrently and cannot be isolated from their suppliers. Another crucial aspect of services is variability, which indicates that the quality of such services can vary substantially depending on who offers them and when, where, and how they are supplied. Services cannot be preserved for sale or use at a later time since they are perishable.
B. As a part of a broad marketing strategy, a marketing mix involves many areas of interest. The term typically references to the categorization known as the four Ps, which originally stood for product, pricing, placement, and promotion. A product is an item or service created to fulfill the requirements and desires of customers. The product's sale price indicates the price that customers are willing to pay for it.
The kind of goods offered should be taken into account while choosing distribution zones. Advertising, marketing for sales, personal selling, and relations with the public are a few examples of promotion activities. The money designated for the marketing mix is an important factor.
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A zero-coupon bond with face value $1,000 and maturity of six years sells for $745.22. a. What is its yield to maturity? (Round your answer to 2 decimal places.) Yield to maturity % b. What will the yield to maturity be if the price falls to $729? (Round your answer to 2 decimal places.) Yield to maturity % A coupon bond paying semiannual interest is reported as having an ask price of 121% of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 7%, what is the invoice price of the bond? Assume that the month has 30 days. (Do not round intermediate calculations. Round your answer to 2 decimal places.) You buy a ten-year bond that has a 7.50% current yield and a 7.50% coupon (paid annually). In one year, promised yields to maturity have risen to 8.50%. What is your holding-period return? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding-period return %
The holding-period return for the ten-year bond is 7%.
To calculate the yield to maturity of the zero-coupon bond, we can use the formula:
Yield to maturity = ((Face value / Price) ^ (1 / Number of years)) - 1
In this case, the face value is $1,000, the price is $745.22, and the number of years is 6. Plugging in these values into the formula:
Yield to maturity = (($1,000 / $745.22) ^ (1 / 6)) - 1 ≈ 0.0646 or 6.46%
Therefore, the yield to maturity of the zero-coupon bond is approximately 6.46%.
b. To calculate the yield to maturity if the price falls to $729, we can use the same formula as above:
Yield to maturity = ((Face value / Price) ^ (1 / Number of years)) - 1
In this case, the face value is $1,000 and the price is $729. Plugging in these values into the formula:
Yield to maturity = (($1,000 / $729) ^ (1 / 6)) - 1 ≈ 0.0825 or 8.25%
Therefore, if the price falls to $729, the yield to maturity of the zero-coupon bond would be approximately 8.25%.
c. To calculate the invoice price of the coupon bond, we need to consider the accrued interest since the last interest payment. Since one month has passed since the last payment and the coupon rate is 7%, the accrued interest can be calculated as follows:
Accrued interest = (Coupon rate / Number of days in a year) * Number of days since last payment
In this case, the coupon rate is 7% and the number of days since the last payment is 30. Plugging in these values:
Accrued interest = (0.07 / 365) * 30 ≈ 0.00575 or 0.575%
The invoice price is calculated by adding the accrued interest to the ask price:
Invoice price = Ask price + Accrued interest = 1.21 * $1,000 + 0.575 ≈ $1,210.58
Therefore, the invoice price of the bond is approximately $1,210.58.
d. The holding-period return can be calculated using the formula:
Holding-period return = (Coupon payment + (Face value - Purchase price) / Purchase price) * 100
In this case, the coupon payment is 7% of the face value ($1,000), the purchase price is the face value ($1,000), and the promised yield to maturity after one year is 8.50%. Plugging in these values into the formula:
Holding-period return = (0.07 + ($1,000 - $1,000) / $1,000) * 100 = 7%
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