Answer:7
Explanation:14
Answer:
The purpose of the closing entry is to reset the temporary account balances to zero on the general ledger, the record-keeping system for a company's financial data. Temporary accounts are used to record accounting activity during a specific period.
Explanation:
should i be the manager of burger king or subway?
Answer:
you should be the manager of subway, theres way more options and you can eat fresh ;)
The Pierce Co. just issued a dividend of $2.35 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $44 a share, what is the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity__________ %
Answer:
r = 0.106079 or 10.6079% rounded off to 10.61%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend paid recently
D0 * (1+g) is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
To calculate the cost of equity (r), we will plug in the values for P0, D0 and g in the formula,
44 = 2.35 * (1+0.05) / (r - 0.05)
44 * (r - 0.05) = 2.4675
44r - 2.2 = 2.4675
44r = 2.4675 + 2.2
r = 4.6675 / 44
r = 0.106079 or 10.6079% rounded off to 10.61%
The company's cost of equity is 10.61%.
The formula that can be used to determine the cost of equity is:
r = [tex]\frac{D_{1} }{P}[/tex] - g
Where:
[tex]D_{1}[/tex] = dividend next year = $2.35 x (1.05) = $2.47g = growth rate P = value of the stock = $44r = [tex]\frac{2.47}{44} + 0.05[/tex] = 10.61%
A similar question was answered here: https://brainly.com/question/13745120
Suppose the real gross domestic product (GDP) grows by 2% and inflation is equal to 3%, but there is no change in the velocity of money. based on the equation of exchange, by how much does the quantity of money change?
Answer:
the quantity of money growed to be 5%
Explanation:
The computation of the expected change in the quantity of money is shown below:
As we know that
Growth rate of money supply = Real GDP growth rate + inflation rate
= 2% + 3%
= 5%
Keeping the velocity be constant
Hence, the quantity of money growed to be 5%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Assuming that the price elasticity of demand for slinkys (slinkys are a metal spring-like children's toy) is 2, an increase in the price of slinkys of 15% would result in (for slinkys) ___________a. an increase in the quantity supplied of 30%b. a decrease in demand of 30%c. a decrease in the quantity demanded of 7.5%d. a decrease in the quantity demanded of 30%
Answer: d. a decrease in the quantity demanded of 30%
Explanation:
Price elasticity of a good is used to measure the magnitude of change in the quantity demanded of the good as a result of a change in price.
Price elasticity = Change in Quantity demanded / Change in Price
2 = Change in quantity demanded / 15%
Change in Quantity demanded = 2 * 15% = 30%
The elasticity is listed as positive but is supposed to be negative even though this can cause confusion. Normal goods are assumed to have a negative elasticity so unless stated otherwise, assume elasticity is negative.
This is why the change is a decrease in quantity demanded.
Your local T-Spirit store is having a sale on the latest i-razpod cell phone. The store is also offering financing to those who
qualify. The new cell phone is on sale for $150.00 with a two year contract. The sales associate informs you that the
closed-end installment loan offered by the store is a 24 month installment plan with monthly payments of $8.44.
Determine the finance charge (interest) of the installment loan.
a $52.00
C. $54.30
b. $52.56
d. $56.10
Answer:
$52.56 on edge 2020
Explanation:
Answer:
b
Explanation:
yep
Are employees more likely to favor defined contribution plans over defined benefit plans? How about employers? Explain your answers.
Answer: the contribution plan favours the employer while the defined benefit plan favours the employee
Explanation:
Defined contribution plans is described as a type of retirement plan where the employer, employee or both make contributions on a regular basis. While the defined benefit plan, the employer is responsible for all of the planning and investment risk, where employees are paid benefit based on length of employment and salary history. The employees are more likely to prefer the benefit plan, while the employer would prefer the contribution plan which favours him because of the contribution the employees make
True/ False In Alex Tabarrok’s TED talk, he mentions, "innovative ideas are driving growth within the global economy more than ever before."
Answer:
True
Explanation:
The man Alexander Taborrak is a Canadian/American economist. He is a university professor and also a director of research.
The correct answer to this question is true. As he mentioned the importance of innovation and also the importance of creativity and still on the topic, he went on to make the statement that that the best is yet to come as 'innovation ideas are the driving growth of the economy as a whole'.
The just meaningful difference (JMD) refers to: A. The process by which consumers give humanlike characteristics to inanimate objects. B. The smallest amount of change in a stimulus that would influence consumer consumption and choice. C. A situation where a stimulus is sufficiently stronger than another so that someone can actually notice that the two are not the same. D. The way in which consumers interpret information in ways that are biased by their previously held beliefs. E. The process of screening out certain stimuli and purposely exposing oneself to other stimuli.
Answer:
B. The smallest amount of change in a stimulus that would influence consumer consumption and choice.
Explanation:
The just meaningful difference (JMD) refers to the smallest amount of change in a stimulus that would influence consumer consumption and choice.
For instance, when the price of a particular product rises from $5.0 to $6.5, consumers wouldn't be motivated to buy such a product again and may choose to go for its close substitutes.
Hence, in marketing it is important to introduce a stimulus plan that will significantly increase consumer consumption and choice in order to increase sales and make profit.
Lower wages in the U.S. auto industry would ______ the prices of autos and ______ the quantity exchanged.
Answer:
Lower wages in the U.S. auto industry would DECREASE the prices of autos and INCREASE the quantity exchanged.
Explanation:
When the price of key inputs decreases, the supply curve shifts to the right, increasing the total quantity supplied and at the same time decreasing the equilibrium price. The same would happen if the price of steel, plastics (oil) or any other key input decreased.
On the other hand, an increase int he price of key inputs will shift the supply curve to the left, decreasing the total quantity supplied and increasing equilibrium price.
Arthur, the ruler of Avalon, has asked for your help with the economy of his country. Arthur's economic minister provides you with the following information:Work-eligible population: 30 million Labor force: 24 million Employed people: 21 million Frictionally unemployed people: 2 million Structurally unemployed people: 1.5 million Arthur would like to know whether his kingdom is enjoying an expansion or suffering a recession. See if you can advise him. Give all numeric answers to two decimals.King Arthur, right now Avalon's unemployment rate is _____%, but Avalon's natural rate of unemployment is ___%. Therefore, the Avalon economy is currently in a(an) (enter expansion or recession).
Answer:
King Arthur, right now Avalon's unemployment rate is 12.5% but Avalon's natural rate of unemployment is 14.58%. Therefore, the Avalon economy is currently in a expansion.
Explanation:
Number of Unemployed = Labor force - Employed
Number of Unemployed = 24 - 21
Number of Unemployed = 3
The unemployment rate = (3/24)*100
The unemployment rate = 12.5%
The Natural unemployment rate = Frictional Rate + Structural unemployment Rate
The Natural unemployment rate = [(2+1.5)/24]*100
The Natural unemployment rate = (3.5/24) * 100
The Natural unemployment rate = 14.58%
From the solution, the current unemployment rate less than natural rate, thus the Avalon economy is currently in a expansion
Firm A has increased its EPS (Earnings per share) by increasing the weighting of debt in its capital structure, compared to competitor Firm B, which finances mainly through increased stock offerings. Firm A's EPS, relative to competitor firm B has improved because:________. A. Its value as a firm is greater B. Its number of shares outstanding is lower C. Its number of shares outstanding are lower, and its earnings after tax is higher D. Its net income is higher
Answer:
B. Its number of shares outstanding is lower
Explanation:
Earnings per share (EPS) = (net income - preferred dividends) / weighted average shares outstanding
there are two ways in which a company's EPS can be higher:
increase the numerator: increase net income, which is unlikely due to higher interest expensedecrease the denominator: firm A has fewer stocks outstanding. This is more likely to occur.Major areas in business decision making
Answer:
it is investment decision, financing decision and dividend decision
Explanation:
The major areas in business decision making are:
1 Investment decision
2. Financial decision
3.Dividend decision
When an employee reaches a $200,000 income level, they are required to pay a supplementary percentage to their _______________________ tax deduction?A. Social SecurityB. MedicareC. FederalD. Local
Answer:
B. Medicare
Explanation:
given data
employee reaches income level = $200,000
so they are require to pay a supplementary percentage to their Medicare tax because at an income level above than the each and every employee are required to pay their additional percentage of income as FICA Medicare tax.
and current rate for Medicare is approx 1.45% for the employee and employer.
If the risk-free rate is 6 percent, the return on an average stock is 10 percent, and the beta of a capital budgeting project is 1.50, the project's required rate of return from the project is _____. a. 19% b. 21% c. 24% d. 12% e. 4%
Answer:
r = 0.12 or 12%
Option d is the correct answer.
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free rate rM is the market return
We assume that the return on an average stock in the market is the return on market or rM.
r = 0.06 + 1.5 * (0.1 - 0.06)
r = 0.12 or 12%
What is the purpose of the FASFA4CASTER
Why do the marketing, operations, HR management, and IT functions need to be closely coordinated in service organization?
Answer:
Explanation:
All of these needs to be closely coordinated because each department needs the other in order to efficiently fulfill their roles and help the organization grow. Marketing makes sure that a population becomes aware of the organization's products/services but need operations to provide the product. HR management makes sure that all the employees are happy and efficient in order for operations to have the manpower to create the products/services for the organization. Lastly, all of the departments need IT functions in order to receive and input data into the organization's system and communicate with one another.
In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households. We would expect this to:_______. A. affect neither aggregate supply nor aggregate demand. B. increase aggregate demand. C. reduce aggregate demand. D. reduce aggregate supply.
Answer:
B. increase aggregate demand.
Explanation:
A recession can be defined as a period of significant fall in the economic performance such as employment, production, income level, sales of goods and services etc, of a particular country lasting over a few months.
In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households. Thus, we would expect this to increase aggregate demand.
Aggregate demand (AD) can be defined as the total quantity of output (final goods and services) that is demanded by consumers at all possible price levels in an economy at a particular time.
On a standard Aggregate demand (AD)-Aggregate supply (AS) curve, the y axis denotes the Price (P) of goods and services while the x axis typically denotes the Output (Q) of final goods and services.
In the short-run, a rightward shift in the aggregate supply (AS) curve causes output to increase and result in a price fall (lower price) while a rightward shift in the aggregate demand (AD) curve also cause output to increase and rise in prices.
The short-run nominal fluctuations basically cause a change in the level of production. In the short-run, as a result of a shift in the aggregate supply; an increase in money consequently to result in increase the level of production (output).
Hence, more goods are produced as a result of the increased output (supply) and more goods would be purchased as a result of their lower prices.
Emphasizing personal selling rather than mass media advertising is an example of a __________ strategy.
Answer: personal selling rather than mass media advertising in the promotional mix the firm is using a Standardized strategy
Explanation:
Hope this helps <3
The common stock of Contemporary Interiors has a beta of 1.13 and a standard deviation of 21.4 percent. The market rate of return is 12.7 percent and the risk-free rate is 4.1 percent. What is the cost of equity for this firm?
A. 11.76 percent
B. 14.40 percent
C. 12.08 percent
D. 13.05 percent
E. 13.82 percent
Answer:
E. 13.82 percent
Explanation:
Calculation for the cost of equity for this firm
Cost of equity= .041 + 1.13 × (.127-.041)
Cost of equity= .1382*100
Cost of equity=13.82
Therefore the Cost of equity for this firm will be 13.82%
A country's currency is said to be _____ when the country's government allows both residents and nonresidents to purchase unlimited amounts of a foreign currency with it.
A) externally convertible
B) nonconvertible
C) internally convertible
D) freely convertible
Answer:
D) freely convertible
Explanation:
Since in the question it is mentioned that the country government permits to both residents and non-residents for acquiring the non-limited values of the foreign currency so this represents the freely convertible.
As in the case of freely convertible the currency should be traded without having any kind of limitations that are imposed by the monetary authorties
Hence, the correct option is D.
Which of the following would be most likely associated with the expansionary phase of the economic business cycle?
)
A)
unemployment rate is high
B)
inflation is at its highest level
businesses produce more and hire workers
D)
business profits are on the decline
Companies often use features to differentiate themselves from competitors. However, a company must balance the features customers want with ________.
A) what the competition offers
B) the ability to manufacture the feature in a timely way
C) what customers will pay
D) the configurations that make a positive brand look stylish
E) the resources available for production
Answer:
C)what customers will pay
Explanation:
A firm has 72 units of product A on hand. Forecasts of demand are for 10 units per week. A Master Production Schedule (MPS) quantity of 150 units is planned to arrive in period 4. Customer orders are 17 for period 1, 12 for period 2, 8 for period 3, and 4 for period 4.
Required:
What quantity is available for commitment (available to promise) to new customers in weeks 1, 2, and 3?
Answer:
35 units
Explanation:
72 units are on hand:
customer orders for periods 1, 2 and 3 = 17 + 12 + 8 = 37 units
units available for commitment to new customers = 72 - 37 = 35 units
these units can be committed either at week 1, 2, or 3.
Customer orders for period 4 will be covered with the 150 units that should arrive during period 4.
A factory worker really wants to move up in the corporation. He does his work, stays late, and is always looking for extra ways to help. He gets denied a promotion after promotion. This will most likely affect his ________.a. equityb. valencec. expectancyd. instrumentality
Answer:
equity
Explanation:
when your mom is spanking you what should you do? A.put her in a lock B.call her parents C.tell jamall to calm down D.take the hits
Answer: Take the hits bro. Then call her parents
Explanation: Memes that slap harder than my dads belt!!!! Lol
Cynthia Ogago is planning to make investment in a scheme
earning 10% interest rate and expects to receive ksh. 50,000
after 3 years. Advise her on how much she needs to invest now
in order to achieve these
O a. Ksh. 50,000
O b. Ksh. 66,550
O c. Ksh. 35,656
O d. Ksh. 37,566
Answer:
d. Ksh. 37,566
Explanation:
The $50,000 represent the future amount expected after 3 years.
the interest rate is 10%.
Implementing the formula A = P x ( 1+ r) ^n
A= $50,000
P= amount to invest
R=10% or 0.10
n=3 years
Ksh.50,000 = P x (1 + 0.10) ^ 3
Kshs.50,000 = P x (1.1) ^3
Kshs.50,000 = P x 1.331
P= Kshs50,000 / 1.331
P=Kshs.37,565.74
= Kshs. 37,566
NTR Corporation has offices in both Los Angeles and San Francisco. In the Los Angeles office, the account number for cash is 1.101. In San Francisco, the account number for cash is 2.101. What type of coding system does NTR Corporation use?
Answer:
Faceted Coding
Explanation:
Faceted coding system is basically a type of sequential coding. The main difference is that the first letters or numbers of the accounting codes represent different locations, departments, business units, stores, etc.
In this case, the first 1 in 1.101 denotes the Los Angeles office, while the 2 in 2.101 denotes the San Francisco office. Each period (or underscore, etc.) represents a different cost field or category. In this example, the .101 represents cash account.
You expect KT Industries (KTI) will have earnings per share of $3 this year and expect that they will pay out $1.50 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 15% and their equity cost of capital is 12% The expected growth rate for KTI's dividends is:_________
a. $12.50
b. $39.25
c. $33.35
d. $20.00
Answer:
Growth rate = 7.50%
Explanation:
Given:
Return on investment = 15%
Retention ratio = [1.5 / 3] 100 = 50%
Find:
Growth rate
Computation:
Growth rate = Return on investment*Retention ratio
Growth rate = 15% x 50%
Growth rate = 7.50%
An assumption of CAPM is that investors do not face transaction costs. In particular, CAPM assumes that markets are liquid in the sense that you can always trade any number of shares you would like to any time. In reality, the overall market may become more illiquid in certain times and less illiquid in other times. When the market is illiquid, investors are more hindered from trading by frictions in the market. Suppose that the price of a certain security tends to go up when the overall market becomes more illiquid. Would you expect this security to have a higher or lower expected return than what the CAPM predicts?
Answer: Higher return than CAPM
Explanation:
CAPM assumes that markets are liquid and that there are no transaction costs. This means that when it gives the expected return of a security, it does so without accounting for illiquidity.
If the security is therefore affected by illiquidity such that the price goes up in such a situation, CAPM would not have accounted for this which means that the expected return of the security should be higher than what CAPM predicts to cater for this price increase.
The Backwoods American company in Problem 2.1 produces approximately 20,000 parkas annually. The quality management program the company implemented was able to improve the average percentage of good parkas produced by 2% each year, beginning with 83% good-quality parkas in 2012. Only about 20% of poor-quality parkas can be reworked.
Total (not per parka) direct manufacturing cost is given below:
Year 2003 2004 2005 2006 2007
Direct Manufacturing Cost $420,900 $423,400 $424,700 $436,100 $435,500
A) Compute the product yield for each of the five years.
B) Using a rework cost of $12 per parka, determine the manufacturing cost per good parka for each of the five years. What you can you conclude about the improvement process?
Answer:
a. 2003 product yield = 20,000(0.83) + 20,000 (1 - 0.83)(0.20)
= 16,600 + 680
= 17,280 parkas
2004 product yield = 20,000*(0.85) + 20,000*(0.15)(0.20)
= 17,000 + 600
= 17,600 parkas
2005 product yield = 20,000*(0.87) + 20,000*(0.13)(0.20)
= 17,400 + 520
= 17,920 parkas
2006 product yield = 20,000*(0.89) + 20,000*(0.11)(0.20)
= 17,800 + 440
= 18,240 parkas
2007 product yield = 20,000*(0.91) + 20,000*(0.09)(0.20)
= 18,200 + 360
= 18,560 parkas
b. 2003 manufacturing cost per good parka = 420,900 + 12*(20,000)(0.17)(0.20) /17,280
= 420,900 + 12 (680) / 17,280
= 429,060 /17,280
= $24.83
2004 manufacturing cost per good parka = 423,400 + 12*(600) /17,600
= 430,600 /17,600
= $24.47
2005 manufacturing cost per good parka = 424,700 + 12*(520) / 17,920
= 430,940 /17,920
= $24.05
2006 manufacturing cost per good parka = 436,100 + 12*(440) / 18,240
= 441,380 /18,240
= $24.20
2007 manufacturing cost per good parka = 435,500 + 12 *(360) /18,560
= 439,820 / 18,560
= $23.70