Atlas Door relies on well-known and non-proprietary technologies, which opens it up to the potential of increased competition, as other companies can easily access and utilize similar technologies. This may lead to a saturated market, making it essential for Atlas Door to focus on innovation, differentiation, and quality in order to maintain a competitive edge.
The fact that Atlas door relies on well-known and non-proprietary technologies means that it has the potential to be easily replicated or improved upon by competitors in the market. However, it also means that the company can benefit from cost savings and a wider range of options when it comes to sourcing components for their products. Additionally, it may make it easier for Atlas door to integrate with other systems or technologies in the market, which could be beneficial for customers looking for seamless integration solutions.
Learn More about non-proprietary here :-
https://brainly.com/question/12974439
#SPJ11
Suppose Gomas Enterprises has issued a bond that pays 11% interest ($55 semiannual coupons), and the current market yield is 9%. F=1000
(a) If the bond matures in 20 years, compute its current price. What if the bond matures in 1 year?
(b) What do you notice when comparing the 2 prices and their components?
(a) The current price of the 20-year bond is $1,225.63, and the current price of the 1-year bond is $1,042.27.
(b) The price of the 20-year bond is higher than that of the 1-year bond, mainly because the 20-year bond has a longer maturity, and its coupons represent a larger portion of the total value.
To calculate the current price of the 20-year bond, we need to discount the future cash flows (coupons and principal) to their present value using the current market yield of 9% as the discount rate. Using the formula for the present value of a bond, we get:
PV = [tex]\frac{\frac{C}{2}}{(1 + \frac{r}{2})^{n}} + \frac{\frac{C}{2}}{(1 + \frac{r}{2})^{n-1}} + \cdots + \frac{\frac{C}{2}}{(1 + \frac{r}{2})^{1}} + \frac{F}{(1 + \frac{r}{2})^{n}}[/tex]
where PV is the present value of the bond, C is the coupon payment, r is the market yield, n is the number of coupon payments, and F is the face value or principal. Plugging in the values given in the question, we get:
PV = [tex]$\frac{55/2}{\left(1 + \frac{0.09}{2}\right)^{40}} + \frac{1000}{\left(1 + \frac{0.09}{2}\right)^{40}}$[/tex]
= $1,225.63
To calculate the current price of the 1-year bond, we can use the same formula with n=2, since there are only two coupon payments left. Plugging in the values, we get:
PV = [tex]\frac{55/2}{\left(1 + \frac{0.09}{2}\right)^2} + \frac{1000}{\left(1 + \frac{0.09}{2}\right)^2}[/tex]
= $1,042.27
The price of the 20-year bond is higher than that of the 1-year bond because the longer maturity means that the coupons will represent a larger portion of the total value. In the 20-year bond, there will be 40 coupon payments, whereas in the 1-year bond, there will only be two.
As a result, the future cash flows of the 20-year bond are more valuable in today's dollars, and the discounting effect is more pronounced. Additionally, the face value of the bond is the same in both cases, but it represents a smaller portion of the total value in the 20-year bond, which also contributes to the higher price.
Learn more about coupon rate: https://brainly.com/question/28528712
#SPJ11
I am using Mergent Online for Tesla for 2021. i need to find the ROE. Net income -Preferred Dividends/Sharholder's equity. I am not able to find the Preferred Dividends anywhere on Mergent Online. is it called something else?
Preferred dividends are a type of dividend paid to preferred stockholders that have priority over common stockholders in receiving dividends.
If the company does not pay preferred dividends, then you can assume that the preferred dividend is zero.In Mergent Online, you can find the shareholder's equity under the Balance Sheet section of the company's financial statements. The net income can be found under the Income Statement section.To calculate the ROE, you can use the formula you mentioned: ROE = Net income / Shareholder's equity.If there are no preferred dividends, you can simply use the net income as the numerator in the formula.
Learn more about stockholders here:https://brainly.com/question/29705807
#SPJ11
Chester Inc. has the following financial statement information. Beginning Ending Inventory $27,000 $28,000 Accounts Receivable 21,000 22,000 A
ccounts Payable 10.000 14,000 Credit Sales = $165,000 ; Cost of goods sold = $115,000 How many days are in the operating cycle? Express your answer to the nearest day. Your Answer:
To the nearest day, Chester Inc.'s operating cycle is approximately 135 days. The time it takes for a business to purchase items, sell them, and get payment for those sales is referred to as an operating cycle. It is, in other words, the time it takes for a business to convert its inventory into cash. Depending on the sector, an operational cycle can be any length.
To calculate the operating cycle, we first need to determine the days inventory outstanding (DIO) and the days sales outstanding (DSO). Then, we add these two figures together.
Step 1: Calculate the DIO
DIO = (Average Inventory / Cost of Goods Sold) * 365
Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Average Inventory = ($27,000 + $28,000) / 2 = $27,500
DIO = ($27,500 / $115,000) * 365 ≈ 87.17 days
Step 2: Calculate the DSO
DSO = (Average Accounts Receivable / Credit Sales) * 365
Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
Average Accounts Receivable = ($21,000 + $22,000) / 2 = $21,500
DSO = ($21,500 / $165,000) * 365 ≈ 47.42 days
Step 3: Calculate the Operating Cycle
Operating Cycle = DIO + DSO
Operating Cycle = 87.17 days + 47.42 days ≈ 134.59 days ,nearly 135 days.
To know more about operating cycle visit:
https://brainly.com/question/29731455
#SPJ11
sm's bonds have a par value of $1,000, have paid $500 interest for
5 years, have 10 years to maturity. If the required return on the
bond is 5%, what is the par value of the bond?
The par value of the bond is $1,000. This means that the face value of the bond is $1,000 and this is the amount that will be returned to the bondholder at maturity.
The bond has paid $500 in interest for 5 years and has 10 years to maturity. The required return on the bond is 5%, which is the minimum rate of return that the investor requires in order to invest in the bond.
The par value is calculated using a present value calculation to determine the current value of all future payments. This calculation takes into account the required return on the bond, the face value, and the length of time until maturity.
The par value of the bond is determined by discounting all future payments back to the present day, taking into account the required return on the bond. Thus, the par value of the bond is $1,000.
Know more about par value here
https://brainly.com/question/28392288#
#SPJ11
lisa, age 45, needed some cash so she received a $50,000 distribution from her roth ira in 2022. at the time of the distribution, the balance in the roth ira was $200,000. lisa established the roth ira 10 years ago. over the years, she has contributed $20,000 to her account. what amount of the distribution is taxable and subject to early distribution penalty?
Out of the $50,000 distribution, $30,000 is taxable and subject to a $3,000 early distribution penalty.
Lisa, age 45, received a $50,000 distribution from her Roth IRA in 2022. The balance at the time of distribution was $200,000.
Roth IRA distributions consist of two parts: contributions and earnings. Contributions are not taxable, while earnings can be subject to taxes and penalties if the distribution is not a qualified one.
Since Lisa is under 59½ and has had the Roth IRA for more than 5 years, her distribution is a non-qualified one. Therefore, she can withdraw her contributions without tax or penalty. In this case, she has contributed $20,000, so this portion of the distribution is tax-free and penalty-free.
The remaining $30,000 ($50,000 - $20,000) of the distribution is considered earnings. This portion is taxable and subject to the 10% early distribution penalty. So, $30,000 is taxable, and the early distribution penalty would be $3,000 ($30,000 * 10%).
#SPJ11
a portfolio has a beta of 1.35, a standard deviation of 13.3%, and an average return of 12.01%. the market rate is 12.7% and the risk-free rate is 2.1%. what is the sharpe ratio? multiple choice .716 .745 .754 .847 .863
Looking at the options, the closest value is 0.745, so that option (b) would be the answer.
The Sharpe ratio can be calculated as (portfolio average return - risk-free rate) / portfolio standard deviation.
Using the given values:
Sharpe ratio = (12.01% - 2.1%) / 13.3% = 0.679
However, this answer is not one of the options provided.
To get one of the options, we can use the fact that the Sharpe ratio is affected by the market rate.
If the market rate is higher than the portfolio's average return, the Sharpe ratio will be lower. If the market rate is lower than the portfolio's average return, the Sharpe ratio will be higher.
Since the market rate is 12.7% and the portfolio's average return is 12.01%, we know that the Sharpe ratio will be higher than the calculated value of 0.679.
Looking at the options, the closest value is 0.745, so that would be the answer.
To know more about Sharpe ratio
https://brainly.com/question/30498356
#SPJ11
who can terminate an agency relationship? neither may terminate the agency until the terms of the agreement have transpired. only the agent may terminate. only the principal may terminate. either the agent or the principal may terminate.
Either the agent or the principal may terminate an agency relationship.
An agency relationship is a legal relationship where one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions. This relationship can be terminated by either party, subject to the terms of the agency agreement.
The principal may terminate the agency relationship for a variety of reasons, such as a breach of contract by the agent or the completion of the transaction for which the agent was hired. Similarly, the agent may terminate the agency relationship if the principal breaches the agency agreement or if the agent no longer wishes to represent the principal.
In some cases, the agency agreement may specify the conditions and procedures for terminating the relationship, including notice requirements and any penalties for early termination. However, in the absence of such provisions, either the agent or the principal may terminate the agency relationship at any time.
Learn more about agency relationship at:
brainly.com/question/15129864
#SPJ4
On June 1, year 2, Oak Corp. Granted stock options to certain key employees as additional compensation. The options were for 1,000 shares of Oak's $2 par value common stock at an option price of $15 per share. Market price of this stock on June 1, year 2, was $20 per share. The options were exercisable beginning January 2, year 3, and expire on December 31, year 4. On April 1, year 3, when Oak's stock was trading at $21 per share, all the options were exercised. Oak uses the intrinsic method of accounting for stock option plans. What amount of pretax compensation should Oak report in year 2 in connection with the options
Oak Corp. should report $0 pretax compensation in year 2 in connection with the stock options.
Under the intrinsic method of accounting for stock option plans, no compensation expense is recorded in the year the options are granted. Instead, compensation expense is recognized in the year the options are exercised based on the intrinsic value of the options at that time.
In this case, the option price was $15 per share, but the market price on the grant date was $20 per share, resulting in an intrinsic value of $5 per share. Since the options were not exercised in year 2, no compensation expense is recognized in that year.
When the options were exercised on April 1, year 3, the market price was $21 per share, resulting in an intrinsic value of $6 per share. Oak Corp. would recognize compensation expense of $6,000 ($6 per share x 1,000 shares) in year 3.
To know more about the Compensation, here
https://brainly.com/question/31465767
#SPJ4
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year- End 2007 $ 220 $4 2008 $ 230 $ 4 2009 $ 210 $4 2010 $ 215 $ 4 An investor buys 3 shares of XYZ at the beginning of 2007, buys another 2 shares at the beginning of 2008, sells 1 share at the beginning of 2009, and sells all 4 remaining shares at the beginning of 2010. What are the arithmetic and geometric average time-weighted rates of return for the investor?
The arithmetic average time-weighted rate of return is 4.17%, and the geometric average time-weighted rate of return is 4.09% for the investor.
1. Calculate yearly returns:
2007: (230-220+4)/220 = 6.36%
2008: (210-230+4)/230 = -6.96%
2009: (215-210+4)/210 = 4.29%
2. Calculate arithmetic average:
(6.36% - 6.96% + 4.29%)/3 = 4.17%
3. Calculate geometric average:
- Multiply the returns: (1.0636 * 0.9304 * 1.0429) = 1.0409
- Take the cube root: (1.0409)¹/³ = 1.0136
- Subtract 1: 1.0136 - 1 = 0.0409 or 4.09%
The arithmetic and geometric average time-weighted rates of return for the investor are 4.17% and 4.09%, respectively.
To know more about rate of return click on below link:
https://brainly.com/question/24232401#
#SPJ11
merchandise is marked with a black-and-white series of lines to indicate the item's manufacturer, description, packaging, and promotions. what is the name of these lines? multiple choice question.
The name of these lines is option a) Barcodes.
Barcodes are a standardized way of encoding information about a product using a pattern of black and white lines of varying widths. They are read by a barcode scanner, which translates the pattern into a code that can be used to look up the product information in a database.
Barcodes are commonly used in retail stores to identify and track products, as well as in many other industries to track inventory, shipments, and more. The most common type of barcode used in the United States is the UPC (Universal Product Code) barcode, which consists of a series of 12 digits encoded in the lines.
There are also many other types of barcodes, including QR codes, which can store more information than traditional barcodes and can be read using a smartphone camera.
learn more about Barcode here:
https://brainly.com/question/13117502
#SPJ11
the complete question is:
merchandise is marked with a black-and-white series of lines to indicate the item's manufacturer, description, packaging, and promotions. what is the name of these lines? multiple choice question.
a) Barcodes
b) QR codes
c) UPC codes
d) RFID tags
rachels furniture has beginning inventory for the year of $18,000. during the year, rachel purchases inventory for $230,000 and has ending inventory of $25,000. rachel's cost of goods sold equals: a. $233,000 b. $227,000 c. $223,000 d. none of the above
Rachel's cost of goods sold equals C.$223,000.
To calculate Rachel's cost of goods sold (COGS), we need to use the following formula:
COGS = Beginning Inventory + Inventory Purchases - Ending Inventory
In Rachel's case, we have:
- Beginning Inventory: $18,000
- Inventory Purchases: $230,000
- Ending Inventory: $25,000
Now let's plug these values into the formula:
COGS = $18,000 + $230,000 - $25,000
COGS = $248,000 - $25,000
COGS = $223,000
So, Rachel's cost of goods sold equals $223,000. Therefore, the correct option is C.
The question was incomplete, Find the full content below:
rachels furniture has beginning inventory for the year of $18,000. during the year, rachel purchases inventory for $230,000 and has ending inventory of $25,000. rachel's cost of goods sold equals:
a. $233,000
b. $227,000
c. $223,000
d. none of the above
Know more about Cost of goods sold here:
https://brainly.com/question/31037856
#SPJ11
which three are methods marketers use in advertising to prevent the occurrence of memory interference among their consumers?
The three methods marketers use in advertising to prevent the occurrence of memory interference among their consumers are repetition, unique positioning, and emotional appeal.
1. Repetition: Marketers often repeat their advertisements and messages to strengthen the memory of their brand and products in consumers' minds. By doing this, they make it difficult for competing brands to interfere with the consumers' memory of their products.
2. Unique positioning: Marketers create a distinct image for their brand or product that sets it apart from competitors. They may use unique packaging, slogans, or features to make their product stand out in the minds of consumers. This unique positioning makes it harder for other products or brands to cause memory interference, as the consumer can easily differentiate between them.
3. Emotional appeal: Marketers use emotional appeals in their advertisements to create a strong connection between their product and the consumer. This can be done through storytelling, humor, or evoking feelings of nostalgia. By creating an emotional connection, the consumer is more likely to remember the product, and the chances of memory interference are reduced.
In summary, repetition, unique positioning, and emotional appeal are three methods used by marketers in advertising to prevent memory interference among consumers. These techniques help strengthen brand recall and create a lasting impression in the minds of consumers.
To know more about advertising refer here:
https://brainly.com/question/3163475#
#SPJ11
terms used to describe legal concepts are often not defined in plain english, but rather in:
Terms used to describe legal concepts are often not defined in plain English, but rather in legal language or jargon.
This is because the legal field has its own unique set of terms and concepts that may not have direct equivalents in everyday language. It is important for individuals to familiarize themselves with these legal terms and their meanings in order to understand legal documents and proceedings
Legal jargon, also known as legalese, is a specialized language used by legal professionals to communicate complex legal concepts with precision and clarity. This language may be difficult for non-experts to understand, as it consists of technical terms, Latin phrases, and specific vocabulary related to law.
Learn more about law here: https://brainly.com/question/26463698
#SPJ11
Legal concepts are often not defined in plain English, but rather in technical or legal language that may be difficult for the general public to understand. This is because the legal system has developed its own set of terminology that is used to convey specific meanings and ideas.
Legal concepts are often defined in legal terminology, which is a specialized language used by legal professionals. These terms may be written in formal and technical language, using legal jargon, Latin phrases, and established legal principles. This specialized language is used to ensure precision and consistency in legal documents and to convey specific legal meanings. Legal definitions may be found in statutes, regulations, case law, contracts, and legal agreements. It is important to interpret legal concepts within their legal context and seek legal advice when encountering complex legal language to ensure accurate understanding and compliance with applicable laws and regulations.
learn more about Legal concepts here:
https://brainly.com/question/14234806
#SPJ11
In the long run, it hurts the economy when employees lose their jobs because of technology. true or false?
The answer is true. employees lose their jobs because of technology, it can have a negative impact on the economy in the long run. This is because unemployment rates can increase, and the income and spending power of affected individuals and families can decrease.
This can lead to a decline in consumer spending, which can negatively impact businesses and the economy as a whole. Additionally, when there is a large number of unemployed workers, it can put pressure on government resources and social welfare programs, which can also have a negative impact on the economy. In the long run, the statement can be both true and false, as it depends on various factors. Technology can lead to job displacement, which can temporarily hurt the economy and affected employees. However, it can also increase productivity, create new job opportunities, and drive economic growth, ultimately benefiting both the economy and employees.
Learn more about Technology here:
https://brainly.com/question/9171028
#SPJ11
the supply chain does not end with product delivery to the customer. companies must develop effective reverse logistics processes to properly manage the flow of returns and recapture product value. true or false
True. The supply chain is a complex system that involves multiple stages, from the sourcing of raw materials to the delivery of finished products to customers.
However, the process does not end with product delivery. Companies must also develop effective reverse logistics processes to manage the flow of returns and recapture product value.
Effective reverse logistics processes ensure that returned products are handled efficiently and cost-effectively, allowing companies to recapture some of the value of the product.
This can involve activities such as identifying the reason for the return, evaluating the product's condition, and determining whether it can be resold or recycled.
Companies that fail to properly manage their reverse logistics processes risk losing valuable resources and damaging their reputation. As such, effective reverse logistics processes are critical to the success of any supply chain.
To know more about supply chain refer here:
https://brainly.com/question/30086410#
#SPJ11
Zarifa and Tuan met during new student orientation at their university and felt an immediate and powerful physical attraction for each other. They wanted to be together all the time, and whenever they were apart, they both annoyed their friends with their constant talking about each other. Now that they have been dating for over a year they are spending somewhat more time with their friends instead of each other, and they are starting to notice each other's flaws. Zarifa is worried that the relationship is ending. What would the authors of your book tell her?
The authors of the book would likely reassure Zarifa that it is normal for relationships to evolve and change over time. It's important for both partners to communicate openly about their feelings and concerns, in order to navigate this transitional period together. The authors may also suggest that Zarifa and Tuan work on building a strong foundation of trust, understanding, and support in their relationship, which can help ensure its longevity and success.
Based on the scenario described, Zarifa and Tuan experienced an initial phase of intense physical attraction, which is often associated with the beginning of romantic relationships. This phase, characterized by feelings of passion and infatuation, is sometimes referred to as the "honeymoon phase."
As their relationship has progressed past the one-year mark, it's natural for them to start noticing each other's flaws and to spend more time with friends. This transition could indicate that their relationship is entering a more mature stage, characterized by deeper emotional connections, trust, and commitment. This stage is typically marked by greater stability and less intense emotions compared to the initial phase.
In conclusion, experiencing changes in a relationship does not necessarily mean it is ending. Rather, it could indicate that the relationship is maturing and entering a new phase. By maintaining open communication and working on building a strong emotional connection, Zarifa and Tuan can continue to grow together as a couple.
To learn more about transitional period refer to :
https://brainly.com/question/1032662
#SPJ11
What is it about the market approach that makes it the best way to value a business?
Select an answer:
the ability to use market multiples in the business valuation
the accounting rules that apply to valuing businesses with the market approach
the ease of using the market approach for nonpublic companies
the fact that market information is available for all businesses
The ability to use market multiples in the business valuation is what makes the market approach the best way to value a business.
What Market multiplesMarket multiples allow for a comparison of the business being valued with similar companies that have already been sold or are publicly traded. This method provides a realistic estimate of the business's value based on its market position, financial performance, and other relevant factors.
The accounting rules that apply to valuing businesses with the market approach, the ease of using the market approach for nonpublic companies, and the fact that market information is available for all businesses are also important factors to consider when using the market approach.
However, the ability to use market multiples is what truly sets this approach apart as the most effective way to value a business.
Learn more about market approach at
https://brainly.com/question/14178297
#SPJ11
Micro-Encapsulator Corp. (MEC) expects to sell 2,100 miniature home encapsulators this year. The cost of placing an order from its supplier is $210. Each unit costs $24.00 and carrying costs are 30% of the purchase price A. What is the economic order quantity? (Round your answer to the nearest whole value.) E0Q___units B. What are total costs - order costs plus carrying costs - of inventory over the course of the year? (Round your answer to the nearest whole dollar.) Total costs of inventory $ ___
The total costs of inventory for MEC over the course of the year is $4,014.
A. The economic order quantity can be calculated using the formula: EOQ = √((2DS)/H), where D is the annual demand (2,100 units), S is the ordering cost ($210), and H is the holding cost (30% of $24.00 = $7.20).
Plugging in these values, we get:
EOQ = √((2 x 2,100 x $210)/$7.20)
EOQ = √(882,000)
EOQ = 940 units (rounded to the nearest whole value)
Therefore, the economic order quantity for MEC is 940 units.
B. To find the total costs of inventory over the course of the year, we need to calculate both the order costs and the carrying costs.
Order costs can be calculated by dividing the annual demand by the economic order quantity, and then multiplying by the ordering cost. This gives us:
Number of orders = D/EOQ = 2,100/940 = 2.23 (rounded up to 3)
Order costs = Number of orders x Ordering cost = 3 x $210 = $630
Carrying costs can be calculated by multiplying the average inventory level by the holding cost per unit. The average inventory level can be calculated by dividing the economic order quantity by 2 (assuming that half the units are in inventory at any given time). This gives us:
Average inventory level = EOQ/2 = 940/2 = 470 units
Carrying costs = Average inventory level x Holding cost per unit = 470 x $7.20 = $3,384
Total costs of inventory = Order costs + Carrying costs = $630 + $3,384 = $4,014 (rounded to the nearest whole dollar)
For more about total costs:
https://brainly.com/question/30355738
#SPJ1
Company B's ROA is 9.0%, and its Debt-to-Equity Ratio is 2.5.
Then Company B's ROE equals
Company B's ROA is 9.0%, and its Debt-to-Equity Ratio is 2.5.; Company B's ROE equals 31.5%.
With all the ratios that investors utilise, it's simple to become perplexed. Think about return on assets (ROA) and return on equity (ROE). These two metrics initially appear to be quite comparable because they both assess a specific type of return.
Both assess a company's capacity to make money off its investments. They don't, however, exactly stand for the same thing.
ROA=Net income/Total assets
Net income=0.09*Total assets
Debt to equity ratio=debt/equity
Hence debt=2.5*equity
Total assets=Total liabilities +Total equity
=2.5*equity+ equity
=equity*(2.5+1)
=3.5*equity
ROE=Net income/equity
=(0.09*Total assets)/(Total assets/3.5)
=0.09/(1/3.5)
=0.09/0.285714286
=31.5%
ROE = 31.5%
To know more about ROE here:
https://brainly.com/question/29557790#
#SPJ11
for bonds issued at a discount or at a premium to face value, in each successive entry to recognize interest expense select one: a. both the discount and the premium amortizations will be lower b. the discount amortization will be lower and the premium amortization will be higher c. the discount amortization will be higher and the premium amortization will be lower d. both the discount and the premium amortizations will be higher
When bonds are issued at a discount or at a premium to their face value, the interest expense recognized in each successive entry is affected.
In such cases, the bond’s carrying value is adjusted to reflect the difference between the issue price and the face value. This adjustment is made through amortization of the discount or premium over the life of the bond.
The question asks which option is true for the amortization of discount and premium in each successive entry for interest expense.
The correct answer is (b) – the discount amortization will be lower, and the premium amortization will be higher.
This is because the discount is amortized over the life of the bond as an expense, while the premium is amortized as a reduction of interest expense. As time passes, the discount decreases in value, and the premium increases in value.
Thus, the amortization of discount will be lower, and the amortization of premium will be higher. It is important for companies to correctly account for the amortization of discount and premium to ensure accurate financial reporting.
Learn more about Interest Expense at
https://brainly.com/question/13051548
#SPJ11
What type of taxation system is followed by Canada? What
are the advantages and disadvantages of having this kind of system
of taxation? (6marks)
In the initial phone call, they offer up to tell you that they are looking at a two bedroom home with the a sales price of $150,000.00. They have $18,000.00 to put towards down payment, closing costs and prepaid expenses.
Through interviewing Pat and Kris, you determine that they are planning on being in the house a maximum of 7 years. As a teacher, Kris has a contract for $45,000 per year. Pat being self employed shows on tax returns and income of $30,000 per year. They have currently monthly debt of $823 per month that includes a car lease and credit card bills. Kris also has a Student loan for $42,000.00 that is in deferment for the next three months. It will have a payment of $323.00 per month when out of deferment.
What would their maximum loan payment be based on the parameters provided based on a maximum debt to income ratio of 43%?
What would their maximum allowable debt be based on a maximum debt to income ratio of 43%?
The lender has maximum qualifying ratios of 28% for housing to income and 43% for total debt to income. What would their maximum loan payment (PITI) qualify for (after taking into account their other monthly debts)?
Using the following numbers to answer the question "Would Pat and Kris be able to purchase this house?" (explain your reasoning)
761 Principal and Interest
150.00 Monthly Homeowners Insurance
165.00 Monthly Taxes
121.00 Monthly Private Mortgage Insurance
Don't forget to take into account other monthly debt obligations.
Okay, based on the information provided, here are the answers to the questions:
What would their maximum loan payment be based on the parameters provided based on a maximum debt to income ratio of 43%?
$43% of $75,000 annual income = $32,250
$32,250 / 12 months = $2,687 maximum monthly debt payment
What would their maximum allowable debt be based on a maximum debt to income ratio of 43%?
$75,000 annual income
43% of $75,000 = $32,250 maximum allowable debt
What would their maximum loan payment (PITI) qualify for (after taking into account their other monthly debts)?
Other monthly debts:
$823 (car lease/credit cards)
$323 (student loan) = $1,146
$2,687 maximum payment
-$1,146 other debts
$1,541 maximum PITI payment they can qualify for
Using the following numbers to answer the question "Would Pat and Kris be able to purchase this house?" (explain your reasoning)
761 Principal and Interest
150.00 Monthly Homeowners Insurance
165.00 Monthly Taxes
121.00 Monthly Private Mortgage Insurance
Total PITI payment = $761 + $150 + $165 + $121 = $1,197
No, Pat and Kris likely would not be able to purchase the $150,000 home with a PITI payment of $1,197 based on the guidelines. Their maximum qualifying PITI is $1,541 according to the calculations. The $1,197 PITI payment for the home would put them over the 43% debt to income ratio limit.
Does this help explain the analyses and conclusions? Let me know if you have any other questions!
in the film industry, the practice of controlling all three essential levels of the movie business - production, distribution and exhibition (true or false)
Controlling each of the three key tiers of the movie business are production, distribution, and exhibition is practised in the film industry. Hence the given statement is true.
The studio system is an economic strategy where companies have complete control over the creation, distribution, and screening of their films.A movie studio's control over the creation, release, and screening of a movie is known as vertical fusion. The Trust was the name of the first film studio that Thomas Edison constructed. The technique of film distribution enables audiences to see films. All movies go through the process of trying to find distributors, regardless of whether they have the support of a major studio, a well-known filmmaker, or are smaller, independent movies.
To know more about film industry, click here:
https://brainly.com/question/31038642
#SPJ4
Evaluating cash flows with the NPV method The net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to good investment decisions Consider the cas e: Suppose Blue Hamster Manufacturing Inc is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,000,000. The project is expected to generate the following net cash flows: Blue Hamster Manufacturing Inc.'s weighted average cost of capital is 9%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV? -$1, 158, 713 -$1, 233, 713 -$1, 633, 713 $1, 366, 287 Blue Hamster Manufacturing Inc.'s decision to accept or reject project Beta is independent of its decisions on other projects. If the firm follows the NPV method, it should _____ project Beta.
If the firm follows the NPV method, it should accept project Beta.
1. Identify the cash flows and the weighted average cost of capital (WACC)
Initial investment: -$3,000,000
Year 1: $1,000,000
Year 2: $1,200,000
Year 3: $1,400,000
Year 4: $1,600,000
Year 5: $1,800,000
The WACC is 9%.
2. Calculate the present value (PV) of each cash flow using the formula:
PV = Cash Flow / (1 + WACC)^t, where t is the year.
PV Year 1: $1,000,000 / (1 + 0.09)^1 = $917,431
PV Year 2: $1,200,000 / (1 + 0.09)^2 = $1,011,700
PV Year 3: $1,400,000 / (1 + 0.09)^3 = $1,069,214
PV Year 4: $1,600,000 / (1 + 0.09)^4 = $1,097,713
PV Year 5: $1,800,000 / (1 + 0.09)^5 = $1,097,236
3. Sum the present values and subtract the initial investment to find the NPV:
NPV = -$3,000,000 + $917,431 + $1,011,700 + $1,069,214 + $1,097,713 + $1,097,236 = $1,366,287
Based on the cash flows, project Beta's NPV is $1,366,287. If Blue Hamster Manufacturing Inc. follows the NPV method, it should accept project Beta since the NPV is positive.
Learn more about NPV:
https://brainly.com/question/31385035
#SPJ11
efforts by corporations to reduce the vulnerability of their international supply chain to more traditional criminal activities is called
Efforts by corporations to reduce the vulnerability of their international supply chain to more traditional criminal activities are called supply chain security.
Supply chain security involves implementing strategies and measures to protect the movement of goods, information, and finances from theft, fraud, and other criminal activities.
Companies face various risks in their international supply chains, including theft, counterfeiting, smuggling, and cyberattacks. To address these challenges, they adopt a proactive approach to secure their operations, infrastructure, and information systems. This can include conducting risk assessments, establishing security policies, implementing tracking technologies, and collaborating with government agencies and other organizations to share intelligence and best practices.
Moreover, companies often invest in employee training and awareness programs to educate their workforce about potential threats and the importance of following security procedures. They also engage with their suppliers and partners to ensure the adoption of security measures throughout the entire supply chain. By prioritizing supply chain security, corporations can protect their assets, maintain their reputation, and ensure the uninterrupted flow of goods and services in the global market.
Learn more about Supply chain security here: https://brainly.com/question/27994564
#SPJ11
Driver Corporation faces an IOS schedule calling for a capital budget of $60 million. Its optimal capital structure is 60% equity and 40% debt. Its earnings before interest and taxes (EBIT) were $98 million for the year. The firm has $200 million in assets, pays an average of 10% on all its debt, and faces a marginal tax rate of 34 percent. If the firm maintains a residual dividend policy and will keep its optimal capital structure intact, what will its dividend payout be after financing its capital budget?
After financing its capital budget and keeping its optimal capital structure intact, Driver Corporation's dividend payout will be $23.4 million.
To calculate the dividend payout for Driver Corporation after financing its capital budget, we need to consider its optimal capital structure, EBIT, interest on debt, tax rate, and residual dividend policy.
1. Calculate the firm's earnings after interest and taxes (EAT):
EBIT = $98 million
Interest on debt = 10% of $200 million * 40% (debt portion) = $8 million
Earnings before taxes (EBT) = EBIT - Interest = $98 million - $8 million = $90 million
Taxes = EBT * Marginal Tax Rate = $90 million * 34% = $30.6 million
Earnings after taxes (EAT) = EBT - Taxes = $90 million - $30.6 million = $59.4 million
2. Determine the amount of equity and debt needed to finance the capital budget:
Capital Budget = $60 million
Equity portion = 60% * $60 million = $36 million
Debt portion = 40% * $60 million = $24 million
3. Calculate the remaining earnings after financing the capital budget:
Remaining EAT = EAT - Equity portion = $59.4 million - $36 million = $23.4 million
4. Determine the dividend payout:
Since Driver Corporation maintains a residual dividend policy, the remaining earnings after financing the capital budget will be distributed as dividends. Therefore, the dividend payout will be $23.4 million.
Learn more about Capital budget:
https://brainly.com/question/24347956
#SPJ11
a portfolio comprised of which one of the following is most apt to be the minimum variance portfolio? multiple choice 100% stocks 100% bonds 50/50 mix of stocks and bonds 30% stocks and 70% bonds 30% bonds and 70% stocks
A portfolio's variance measures the risk of its returns.
In this case, the most apt to be the minimum variance portfolio is 50/50 mix of stocks and bonds.
What's minimum variance portfolioThe minimum variance portfolio aims to minimize this risk. The composition of a minimum variance portfolio depends on the assets' correlation and volatility.
Typically, diversifying investments can lower risk. In this multiple-choice scenario, a 50/50 mix of stocks and bonds is the most apt to be the minimum variance portfolio.
It balances the higher volatility of stocks with the lower volatility of bonds. Both asset classes have low correlation, reducing the overall portfolio risk.
A 100% stock portfolio is the most volatile, while a 100% bond portfolio is the least volatile but has limited potential for returns.
The 30/70 mix of stocks and bonds could still be a low-risk portfolio, but it would depend on the specific assets' characteristics.
Ultimately, determining the minimum variance portfolio requires analyzing the specific assets and their correlations.
Learn more about portfolio variance at
https://brainly.com/question/17166675
#SPJ11
valuing defined benefit pension obligation typically requires the calculation of the present value of a(n) .
Valuing defined benefit pension obligation typically requires the calculation of the present value of a stream of future benefit payments that the pension plan has promised to pay its participants.
This stream of payments is often referred to as the pension liability.
The calculation of the present value of the pension liability involves taking into account various factors such as the expected rate of return on plan assets, the discount rate, and the expected future benefit payments.
The present value of the pension liability represents the estimated amount that the plan will need to have on hand in order to meet its future pension obligations.
To know more about Valuing defined benefit pension here
https://brainly.com/question/31215595
#SPJ11
the shift of the short-run aggregate-supply curve from sras1 to sras2 question 4 options: could be caused by an outbreak of war in the middle east. could be caused by a decrease in the expected price level. causes the economy to experience an increase in the unemployment rate. causes the economy to experience stagflation.
The shift of the short-run aggregate-supply curve from SARS1 to SARS2 caused by a decrease in the expected price level. Option B is correct.
The short-run aggregate supply (SAS) curve represents the relationship between the overall price level and the total amount of output firms are willing to produce in the short run, given current market conditions. A shift in the SAS curve is caused by a change in the costs of production or a change in the expected price level.
When the expected price level falls, firms will produce less in anticipation of lower profits, and the SAS curve shifts to the left from SARS1 to SARS2. This results in a decrease in output and an increase in the price level, leading to a period of stagflation where both inflation and unemployment rise.
The outbreak of war in the Middle East could cause a shift in the aggregate demand curve, as increased military spending would increase demand, but it would not directly cause a shift in the SAS curve. It is important to note that shifts in the SAS curve can have significant economic impacts, and understanding the factors that influence it is essential in analyzing. Option B is correct.
To know more about the SARS1, here
https://brainly.com/question/30037500
#SPJ4
The product cost that is most difficult to associate with a product is? a). direct materials. b). direct labor. c). manufacturing overhead. d). advertising.
The product cost that is most difficult to associate with a product is manufacturing overhead.
Manufacturing overhead includes indirect costs that cannot be easily traced to a specific product, such as utilities, depreciation, and maintenance expenses. Manufacturing overhead is also the indirect production costs that are not directly attributable to a specific product. These costs are incurred in the manufacturing process and are necessary to keep the production process running smoothly. Examples of manufacturing overhead costs include rent, utilities, depreciation, maintenance, and indirect labor costs such as supervisors' salaries, janitorial staff, and quality control inspectors.
Learn more about manufacturing here:
https://brainly.com/question/13740503
#SPJ11