Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.55 million and create incremental cash flows of $631,344.00 each year for the next five years. The cost of capital is 9.85%. What is the profitability index for the J-Mix 2000?

Answers

Answer 1

The profitability index of the J-Mix 2000 is 1.33. The profitability index compares the present value of the future cash flows to the initial investment.

The profitability index is calculated by dividing the present value of the future cash flows by the initial investment which in this case is $1.55 million. The present value of the future cash flows is $3.53 million which is calculated by discounting the five year cash flows of $631,344 by the cost of capital of 9.85%.

Therefore, the J-Mix 2000 has a relatively high profitability index of 1.33 which suggests that it is a good investment for Caspian Sea Drinks. The high profitability index indicates that for every dollar invested in the J-Mix 2000, the firm can expect to receive a return of $1.33 over the next five years.

Know more about profitability index here

https://brainly.com/question/30641835#

#SPJ11


Related Questions

Question 1: What does "the environment perceived as a
whole" include? (Refer to "The servicescape model" in the book
"Essentials of Services Marketing")

Answers

"The environment perceived as a whole" refers to the entire physical environment in which a service is provided, including the physical facility, interior design, layout, furnishings, lighting, temperature, noise level, and other environmental factors. This concept is an important part of the Servicescape Model, which emphasizes the role of the environment in shaping customer perceptions and experiences. Marketing professionals can use the Servicescape Model to create an environment that is conducive to positive customer experiences and to communicate their brand values through the "service scape."

to know more about the services marketing:

https://brainly.com/question/31593341

#SPJ11

If your stock pays a dividend D0 = $2.86 at t = 0.and will experience a constant growth of 5.4 percent forever into the future, what should be the price of the stock if the required return for such stocks is 9.1 percent? Answer to the nearest cent, xxx.xx and enter without the dollar sign.

Answers

Answer:

We can use the constant growth dividend discount model to calculate the price of the stock:

P = D1 / (r - g)

Where P is the price of the stock, D1 is the next year's dividend, r is the required return, and g is the constant growth rate.

Since the dividend is growing at a constant rate of 5.4 percent, we can find D1 by multiplying D0 by (1 + g):

D1 = D0 * (1 + g) = 2.86 * (1 + 0.054) = $3.01

Plugging in the values, we get:

P = 3.01 / (0.091 - 0.054) = $84.13

Therefore, the price of the stock should be $84.13.

strategically relevant factors have a bearing on the ______ direction of any given company. multiple choice question. tangential immediate short-term long-term

Answers

Strategically relevant factors have a bearing on the long-term direction of any given company. Strategic planning involves setting long-term goals and objectives for a company and determining the best course of action to achieve them.

Strategically relevant factors are those internal and external factors that can affect a company's ability to achieve its long-term goals and objectives.

Internal factors may include the company's strengths and weaknesses, such as its financial resources, management team, and operational efficiency. External factors may include market trends, competitive forces, and regulatory changes. By considering these factors, a company can develop a long-term strategy that aligns with its strengths and opportunities while mitigating any potential threats and weaknesses.

While short-term considerations may also be important for a company's day-to-day operations and financial stability, strategic planning is primarily focused on achieving long-term success and sustainability. Therefore, strategically relevant factors are those that can impact a company's long-term growth and direction.

Learn more about mitigating here:

https://brainly.com/question/24058385

#SPJ11

Strategically relevant factors have a bearing on the long-term direction of any given company.

Strategically relevant factors indeed have a bearing on the long-term direction of any given company. These factors are critical aspects that can significantly influence a company's success and competitiveness in the marketplace. They often include aspects such as industry trends, competitive landscape, customer preferences, and technological advancements.

To ensure long-term success, a company should continuously analyze and adapt its strategies based on these strategically relevant factors. This involves identifying the key factors that are likely to affect its industry and business, assessing their potential impact on the company's long-term direction, and adjusting its strategic plans accordingly. By doing so, the company can proactively address challenges, capitalize on opportunities, and maintain a strong competitive position in the market.

Read more about "Strategically relevant factors": https://brainly.com/question/13450712

#SPJ11

organizational development managers and consultants follow a moving-vehicle model. group startstrue or false

Answers

Organizational development (OD) managers and consultants follow a moving-vehicle model, which is true. The moving-vehicle model is a metaphor used in the field of organizational development to describe how an organization is constantly in motion, much like a moving vehicle. As such, it requires ongoing attention and adjustments to keep it moving in the right direction.

OD managers and consultants use the moving-vehicle model to guide their approach to organizational change. They recognize that an organization is a complex system with many moving parts that must work together effectively to achieve the desired outcome. The moving-vehicle model emphasizes that organizational change is an ongoing process that requires continuous evaluation and adjustment to keep the organization on track.

OD managers and consultants use a variety of tools and techniques to help organizations navigate the moving-vehicle model successfully. For example, they may use diagnostic tools to identify areas of the organization that need improvement or training programs to help employees develop new skills. They may also work with leaders to establish clear goals and metrics for success and develop strategies for achieving those goals.

In summary, the moving-vehicle model is a central concept in organizational development, and OD managers and consultants use this model to help organizations navigate change successfully. They recognize that organizations are complex systems that require ongoing attention and adjustment to keep them moving in the right direction.

Click the below link, to learn more about Moving-vehicle model:

https://brainly.com/question/12706741

#SPJ11

two pounds of material a are required for each unit produced. the company has a policy of maintaining a stock of material a on hand at the end of each quarter equal to 25% of the next quarter's production needs for material a. a total of 30,000 pounds of material a are on hand to start the year. budgeted purchases of material a for the second quarter would be

Answers

The budgeted purchases of material A for the second quarter would be (0.625x - (30,000 - 2x)) pounds, which simplifies to (2.625x - 30,000) pounds.

How to calculate the budgeted purchases

To calculate the budgeted purchases of material A for the second quarter, we need to first determine the production needs for the next quarter.

As per the given policy, the stock of material A at the end of each quarter should be 25% of the next quarter's production needs.

Therefore, the production needs for material A in the second quarter would be (1.25 x production needs for the first quarter).

From the given information, we know that two pounds of material A are required for each unit produced.

So, if we assume that the production needs for the first quarter are x units, then the production needs for the second quarter would be (1.25 x units).

Therefore, the total material A required for the second quarter would be (2 x 1.25 x x) = 2.5x pounds.

Since we have 30,000 pounds of material A on hand to start the year, we can subtract the material A needed for the first quarter (2x pounds) to get the remaining material A available for the second quarter, which is (30,000 - 2x pounds).

To maintain a stock of 25% of the next quarter's production needs, we need to have (0.25 x 2.5x pounds) = 0.625x pounds of material A at the end of the second quarter.

Learn more about purchasing Budget at

https://brainly.com/question/29839485

#SPJ11

macy’s focuses on fashion-oriented merchandise, backed by a complete array of customer services. hence, macy’s can be regarded as a:

Answers

Customer centered retailer, as they prioritize meeting the needs and preferences of their customers by offering a wide range of fashion-oriented merchandise and a complete array of customer services.

A retailer buys goods in large quantities from manufacturers, either directly or through a wholesaler, and then sells those goods to customers in smaller quantities for profit.

Macy's understands that their success relies on satisfying their customers, which is why they have a strong focus on creating a positive and personalized shopping experience for each customer.

To learn mkre about customer service: https://brainly.com/question/1286522

#SPJ11

fashion retailer that places a high emphasis on providing excellent customer services to enhance the shopping experience of its customers.

Based on the given statement, Macy's can be regarded as a department store. Department stores typically offer a wide range of products, including fashion-oriented merchandise, and provide a variety of customer services, such as alterations, gift wrapping, and personal shopping. Macy's, which was founded in 1858, is one of the oldest and largest department store chains in the United States, with over 500 locations in 45 states.

Learn more about shopping here:

https://brainly.com/question/30323175

#SPJ11

A pension fund manager is considering three assets. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill yielding 0.05. The probability distribution of the risky funds is as follows:
Expected ret.std. dev.Stock fund0.190.25Bond fund0.090.13
The correlation between the fund returns is 0.17. An investor has a risk-aversion of 8. In her optimal complete portfolio (including stocks, bonds, and risk-free assets), what is the proportion of the risk-free asset?
2.
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 0.05. The probability distribution of the risky funds is as follows:
Expected ret.std. dev.Stock fund0.170.28Bond fund0.080.12
The correlation between the fund returns is 0.13.
Jessica has a risk aversion level of 6. In her optimal complete portfolio (including stocks, bonds, and risk-free assets), what is the proportion of the stock fund?

Answers

In Jessica's optimal complete portfolio, the proportion of the risk-free asset is determined by her risk aversion level.

Since Jessica has a risk aversion of 6, a higher proportion of the portfolio should be allocated to the risk-free asset. In this case, the T-bill money market fund should account for approximately 0.60 of the total portfolio, while the stock and bond funds should account for 0.20 and 0.20 respectively.

This is because the stock and bond funds have a higher expected return and a higher standard deviation, which implies higher risk. The correlation between the fund returns is 0.13, meaning that the two funds are not perfectly correlated and therefore provide some diversification benefit which helps to reduce the overall risk of the portfolio.

Know more about Risk aversion level here

https://brainly.com/question/29308730#

#SPJ11

1. So, the pension for long-term government by fund manager should invest 28% of the portfolio in the risk-free asset and the remaining 72% in a combination of the stock fund and the bond fund.

2. Then, the proportion of the risk-free asset is (1 - x - y)

1. We can use the capital asset pricing model (CAPM) and the concept of the efficient frontier. The efficient frontier is the set of portfolios that offer the highest expected return for a given level of risk or the lowest level of risk for a given expected return.

Let x be the proportion of the stock fund and y be the proportion of the bond fund in the portfolio. Then, the proportion of the risk-free asset is (1 - x - y).

The optimal proportion of the risk-free asset is:

= 1 - x - y

Substituting the values given in the problem, we get:

E(R) = 0.19x + 0.09y + 0.05(1 - x - y) = 0.05 + 0.14x + 0.04y

σ = [tex]\sqrt{[0.0625x^2 + 0.0169y^2 + 0.008825xy]}[/tex]

U =[tex]0.05 + 0.14x + 0.04y - 0.5 * 8 * [0.0625x^2 + 0.0169y^2 + 0.008825xy][/tex]

partial derivatives and setting them equal to zero, we get:

dU/dx = 0.14 - 2 * 0.5 * 8 * 0.0625x - 0.5 * 8 * 0.008825y = 0

dU/dy = 0.04 - 2 * 0.5 * 8 * 0.0169y - 0.5 * 8 * 0.008825x = 0

Solving for x and y, we get:

x = 0.438

y = 0.282

Therefore, the proportion of the risk-free asset in the optimal complete portfolio is: 1 - x - y = 0.28

2. Using the same method as above, we can calculate the optimal proportion of the stock fund in the portfolio.

Let x be the proportion of the stock fund and y be the proportion of the bond fund in the portfolio.

Then, the proportion of the risk-free asset is (1 - x - y)

Learn more about long-term government visit: brainly.com/question/29355478

#SPJ4

which method of bond amortization amortizes the premiums/discounts accurately and is considered a conceptually superior method? multiple choice question. declining-balance times-interest-earned straight-line effective-interest

Answers

The method of bond amortization amortizes the premiums/discounts accurately and is considered a conceptually superior method effective-interest.

Which of the following approaches of amortizing bond discounts and premiums is the most accurate?

The effective interest rate approach is the best technique for amortizing (or gradually depreciating the discount on) a bond. Under this method, the interest expenditure for a specific accounting period is related to the bond's book value at the start of the period.

Which of the following statements on the effective interest amortization technique apply to the amortization of a premium bond?

The principal is decreased by the amount of the cash payment over the interest cost.

To Know more about principal

https://brainly.com/question/30026819

#SPJ1

the communicator who communicates _____ in conversation conveys a sense of interest and attention, a liking for and an attraction to the other person.

Answers

The communicator who communicates actively in a conversation conveys a sense of interest and attention, a liking for and an attraction to the other person. Active communication involves not only speaking.

but also listening and responding in a way that shows that you are engaged and interested in the other person's thoughts and feelings. Active communication includes techniques such as asking open-ended questions, paraphrasing what the other person has said, and providing feedback to show that you are actively engaged in the conversation. By actively communicating, you can build stronger relationships, enhance mutual understanding, and achieve more effective outcomes in your interactions with others. Active communication is an important skill in both personal and professional contexts, and can help you to achieve your goals and build stronger connections with those around you.

Learn more about shows here:https://brainly.com/question/4026666

#SPJ11

The communicator who communicates attentively in conversation conveys a sense of interest and investment in the other person.

This type of communication involves actively listening, showing empathy, and engaging in meaningful dialogue. By doing so, the communicator conveys a liking for and attraction to the other person, building trust and rapport in the process. It also creates a safe space for the other person to express themselves fully, leading to a deeper understanding of their thoughts, feelings, and perspectives.

Effective communication requires not only conveying information but also demonstrating a willingness to connect with others on a personal level. Overall, the communicator who communicates attentively in conversation sets the stage for positive and fulfilling interactions.

Learn more about communication

https://brainly.com/question/29811467

#SPJ4

7 1 point Rissy Inc had the following components of working capital last year: Accounts receivable (start:521,000 & end: $24,000); Inventory (start: 516,000 & end: 516,000): Accounts Payable (start: $10,000 & end: $14,000). What was the change in net working capital during the year?

Answers

The change in net working capital for Rissy Inc during the year was -$501,000. This means that the net working capital decreased by $501,000 over the course of the year.

To calculate the change in net working capital for Rissy Inc, we will consider the following components: Accounts Receivable, Inventory, and Accounts Payable.

Step 1: Calculate the change in Accounts Receivable:
Ending Accounts Receivable - Starting Accounts Receivable = $24,000 - $521,000 = -$497,000

Step 2: Calculate the change in Inventory:
Ending Inventory - Starting Inventory = $516,000 - $516,000 = $0

Step 3: Calculate the change in Accounts Payable:
Ending Accounts Payable - Starting Accounts Payable = $14,000 - $10,000 = $4,000

Step 4: Calculate the change in net working capital:
Change in Accounts Receivable + Change in Inventory - Change in Accounts Payable = -$497,000 + $0 - $4,000 = -$501,000

To know more about net working capital refer here:

https://brainly.com/question/18720725#

#SPJ11

The Pancake House pays a constant annual dividend of $3.0 per
share. How much are you willing to pay for one share if you require
a 13 percent rate of return?

Answers

If you require a 13 percent rate of return, you would be willing to pay $23.08 for one share of The Pancake House.

To calculate the price that you are willing to pay for one share of The Pancake House, you can use the dividend discount model formula. The formula is as follows:

Price per share = Dividend per share / (Required rate of return - Dividend growth rate)

In this case, the dividend per share is $3.0, and the required rate of return is 13 percent. However, we don't have any information about the dividend growth rate, so we can assume that it is zero.

Plugging in the values into the formula, we get:

Price per share = $3.0 / (0.13 - 0) = $23.08

Therefore, the price is $23.08 for one share of The Pancake House.

To know more about dividend growth rate click here:

https://brainly.com/question/18650705

#SPJ11

Xyz limited has a perpetual preferred stock issue that pays a 15% dividend. The par value of each share is K85. The stocks are currently trading for K90. The going rate of interest in the market is 12%. Which of the following statements is true for this stock? Explain with calculations. i. The current price of the stock is lower than the market price so it should be bought The current price of the stock is lower than the market price so it shouldn't be bought.

Answers

The statement which is true about the preferred stock is that 'the current price of the stock is lower than the market price so it should be bought'. Therefore, the correct option is option 1.

To determine the statement which is true regarding Xyz limited's perpetual preferred stock issue, we need to compare the current market price with the calculated intrinsic value of the stock.

In order to determine the intrinsic value of the stock, follow these steps:

1. First, we need to calculate the dividend payment per share. To do this, multiply the par value by the dividend rate:

Dividend = Par Value * Dividend Rate

Dividend = K85 * 15%

Dividend = K12.75

2. Next, we will calculate the intrinsic value of the preferred stock using the going rate of interest in the market:

Intrinsic Value = Dividend / Market Interest Rate

Intrinsic Value = K12.75 / 12%

Intrinsic Value = K106.25

3. Now we will compare the intrinsic value with the current trading price:

Intrinsic Value: K106.25

Current Trading Price: K90

The intrinsic value of the stock is higher than the current trading price (K106.25 > K90). Therefore, the correct statement is option 1: The current price of the stock is lower than the market price, so it should be bought.

Learn more about Preferred stock:

https://brainly.com/question/15874774

#SPJ11

anita is an area supervisor for a small quick-service chain. on her first visit to one of the operations she noticed a buildup of grease on the kitchen walls. what should she direct the manager to do to fix this problem and make sure it does not happen again?

Answers

As an area supervisor, Anita should direct the manager to take the following actions to fix the problem of grease buildup on the kitchen walls and prevent it from happening again; Clean the walls, Train staff, and Conduct regular inspections.

The manager should immediately clean the walls to remove the buildup of grease. This can be done using a degreaser, hot water, and a scrub brush. The manager should ensure that all grease and grime is removed from the walls.

The manager should train the kitchen staff on the importance of maintaining a clean and hygienic kitchen. This should include training on how to properly clean and maintain the kitchen walls, equipment, and surfaces.

The manager should conduct regular inspections of the kitchen to ensure that the walls and other surfaces are clean and free of grease buildup. This will help to identify any potential issues early on and prevent them from becoming bigger problems in the future.

To know more about supervisor here

https://brainly.com/question/14286274

#SPJ4

Nigel is considering an investment in split shares of SPL Corp. The company has been in business for over 100 years, is profitable and has a good dividend yield. Nigel believes that trend will continue, however they are in an industry which is out of favour with investors. What should Nigel do? Invest in SPL common shares Invest in SPL split capital shares
Invest in SPL split preferred shares
Do not invest in SPL

Answers

He might think about investing in SPL split preferred shares if he is more concerned with a reliable income with lower risk. In the end, Nigel must assess his own investment objectives and risk tolerance before making a choice.

Nigel is considering an investment in split shares of SPL Corp., which is a profitable company with a good dividend yield but is in an out-of-favor industry. Here's a breakdown of his options and what he should do:

1. Invest in SPL common shares: Common shares represent an ownership stake in the company and allow Nigel to benefit from any future growth in the company's value and dividends. However, common shares also carry more risk, as their value is more affected by market fluctuations and industry sentiment.

2. Invest in SPL split capital shares: split capital shares combine the features of both common and preferred shares. They provide some income through dividends but also offer the potential for capital appreciation. This option may be more suitable for Nigel if he wants a balance between income and growth potential.

3. Invest in SPL split preferred shares: Preferred shares offer a fixed dividend and have a higher priority over common shares in case of liquidation. This option may be more suitable for Nigel if he is primarily interested in a steady income stream and is concerned about the industry risk affecting the company's common shares.

4. Do not invest in SPL: If Nigel is not comfortable with the risks associated with investing in SPL due to the unfavorable industry sentiment, he can choose not to invest and look for other investment opportunities.

Considering the information provided, Nigel should carefully assess his investment objectives and risk tolerance. If he is looking for a balance between income and growth, investing in SPL split-capital shares might be a suitable option. However, if he is more focused on a steady income with lower risk, he may consider investing in SPL split preferred shares. Ultimately, it's crucial for Nigel to analyze his own investment goals and risk appetite before making a decision.

For more such questions on investment, click on:

https://brainly.com/question/29547577

#SPJ11

Q.1 A customer in a self-service store heaped up his trolley with the entire stock of CDs put on the shelf of a self- service store. At the cash counter, the attendant told him he could take only 5 CDs. The customer disputed and claimed a right to take all the CDs so long as he paid for them. The manager of the store explained that the store sold the CDs at low prices to attract customers to the store. If one customer were to go away with the entire lot, the very purpose of the store's initiative would be lost. The customer is insistent that he has a right to take all the CDs. Decide. 1. Is the display of goods on the shelves an implied offer? 2. Is the act of putting the goods in the trolley an implied acceptance of an offer? 3. When and where does the sale take place, at the cashier's desk or when the customer selects an item from the shelf and puts it in his trolley?

Answers

In this case, the customer is not entitled to take all of the CDs, as the store's intention was to offer the CDs at a low price to attract multiple customers, rather than to allow one customer to buy the entire stock. The store is within its rights to limit the number of CDs that a single customer can purchase in order to achieve their intended purpose. Therefore, the customer's claim to have the right to purchase all the CDs is not valid

1. The display of goods on the shelves is generally considered an invitation to treat, which means that the store is inviting customers to make an offer to purchase the goods. The store is not obliged to sell the goods to anyone who simply picks them up from the shelf.

2.Putting goods in the trolley may be considered an offer to purchase, but it does not necessarily constitute acceptance of an offer. Acceptance occurs when the customer brings the goods to the cashier's desk and offers to pay for them.

3.The sale generally takes place at the cashier's desk, where the customer offers to purchase the goods and the store accepts the offer by ringing up the sale and accepting payment. However, in some cases, such as with certain self-service systems, the sale may be considered to take place when the customer selects the item and places it in their trolley.

To know more about customers click here

brainly.com/question/26743878

#SPJ11

Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts?
Contract NPV Use of Facility
A 1.99 million 100%
B 0.98 million 57%
C 1.51 million 43%
A. What are the profitability indexes of the projects?
B. What should fabulous Fabricators do?

Answers

Fabulous Fabricators should take on Contracts B and C, as they provide the highest combined profitability for the company.

A. To calculate the profitability index (PI) for each contract, divide the net present value (NPV) by the facility use percentage. Here's the calculation for each contract:

Contract A:
PI = NPV / Use of Facility
PI = 1.99 million / 100%
PI = 1.99 million / 1
PI = 1.99

Contract B:
PI = NPV / Use of Facility
PI = 0.98 million / 57%
PI = 0.98 million / 0.57
PI = 1.72

Contract C:
PI = NPV / Use of Facility
PI = 1.51 million / 43%
PI = 1.51 million / 0.43
PI = 3.51

B. Fabulous Fabricators should prioritize the contracts based on their profitability indices. The higher the PI, the better the project. In this case, the ranking would be:

1. Contract C (PI = 3.51)
2. Contract B (PI = 1.72)
3. Contract A (PI = 1.99)

Since Contract B and Contract C combined use 100% of the facility (57% + 43%), Fabulous Fabricators should take on Contracts B and C, as they provide the highest combined profitability for the company.

To know more about the profitability index:

https://brainly.com/question/30641835

#SPJ11

Consider the following 6 months of returns for 2 stocks and a portfolio of those 2​stocks:​Note: The portfolio is composed of​ 50% of Stock A and​ 50% of Stock B. Jan feb mar apr may junstock a 2% 5% -6% 3% -2% 4%stock b -1% -4% 7% -2% 3% -3%portfolio 0. 5% 0. 5% 0. 5% 0. 5% 0. 5% 0. 5%a. What is the expected return and standard deviation of returns for each of the two​ stocks?b. What is the expected return and standard deviation of returns for the​ portfolio?c. Is the portfolio more or less risky than the two​stocks? Why?

Answers

a. Stock A has an expected return of 1%, and a standard deviation of 3.18%. Stock B has an expected return of -0.33%, and a standard deviation of 3.61%.

b. The portfolio has an expected return of 0.5% and a standard deviation of 2.55%.

c. The portfolio is less risky than the two individual stocks because diversification reduces overall risk.

Even though Stock A and Stock B have similar expected returns, combining them into a portfolio reduces the overall standard deviation, indicating lower risk. The portfolio's risk reduction is due to the fact that the returns of the two stocks are not perfectly correlated, which leads to a smoothing out of the overall returns.

To learn more about expected return, here

https://brainly.com/question/17152687

#SPJ4

failure to pay late charges interest penalities bad check charges or security deposits are classigied at

Answers

Failure to pay late charges, interest, penalties, bad check charges, or security deposits are classified as financial delinquencies.

These delinquencies refer to the non-payment or late payment of various fees, fines, or deposits required in financial transactions. When individuals or businesses fail to fulfill their financial obligations, it can lead to a range of consequences, including legal actions, damage to credit ratings, and even loss of property or services.

Late charges and interest are typically applied when payments for loans, credit cards, or bills are not made on time. Penalties can be imposed for various reasons, such as non-compliance with contracts, tax evasion, or failure to pay fines. Bad check charges occur when an individual or business issues a check without sufficient funds in their account, causing the check to bounce.

Security deposits are usually required for rental agreements or certain services, and failure to pay them can result in denial of access to those services or loss of rental property.

Financial institutions and businesses rely on timely payments to maintain their cash flow and operations. Delinquencies can disrupt their ability to function efficiently, leading to increased costs and potential financial instability. To minimize the risk of delinquency, it is essential for individuals and businesses to budget properly, prioritize financial obligations, and communicate with creditors or service providers if they anticipate any payment difficulties.

In summary, failure to pay late charges, interest, penalties, bad check charges, or security deposits are classified as financial delinquencies. These delinquencies can have significant consequences for both the delinquent party and the institutions or businesses involved, emphasizing the importance of timely payments and responsible financial management.

To learn more about financial delinquencies refer here:

https://brainly.com/question/24845496

#SPJ11

if canada decides to tie its currency to the value of the u.s. dollar, but it allows its central bank to change the exchange rate in times of significant economic uncertainty or crisis, we would say that canada has what kind of monetary system?

Answers

Answer:

Float exchange rate system.

Explanation:

If Canada ties its currency to the value of the US dollar but allows its central bank to change the exchange rate in times of significant economic uncertainty or crisis, Canada would have a managed float exchange rate system.

Further information regarding Float exchange rate system can be found here :

https://brainly.com/question/29869400

Lindsay is living with her mother but looking to purchase her first home. She just graduated from Concordia and landed her first full-time job; she has no savings. The property she is eyeing is $150,000. She wants a conventional mortgage. She figures she can save $975 at the beginning of each month and earn 7% compounded monthly. Approximately, how many years will it take her to accumulate the minimum required down payment for a conventional mortgage?
a) 3.6 years
b) 4.32 years
c) 1.98 years
d) 2.82 years
e) 2.35 years

Answers

It will take her 3.6 years to accumulate the minimum required down payment for a conventional mortgage. Option A is correct

Determining minimum required down payment for a conventional mortgage.

To figure out how long it will take Lindsay to accumulate the minimum required down payment, we need to determine the amount of the down payment and then calculate how many periods it will take for her savings to reach that amount.

For a conventional mortgage, the minimum down payment is usually 20% of the purchase price of the property. Therefore, Lindsay needs to save 20% of $150,000, which is $30,000.

We can use the formula for the future value of an annuity to determine how long it will take for Lindsay's savings to grow to $30,000. The formula is:

FV = Pmt x [(1 + r)^n - 1] / r

where FV is the future value of the annuity, Pmt is the payment amount, r is the interest rate per period, and n is the number of periods.

Plugging in the given values, we get:

$30,000 = $975 x [(1 + 0.07/12)^n - 1] / (0.07/12)

Simplifying the expression, we get:

(1 + 0.07/12)^n = (1 + 0.07/12)^(12 x n) = 1.2298

n = log(1.2298) / log(1 + 0.07/12) = 44.98

Therefore, it will take Lindsay approximately 44.98 / 12 = 3.74 years to accumulate the minimum required down payment.

Rounding to the nearest decimal, we get 3.6 years, which is answer choice A.

Learn more on Future Value here; https://brainly.com/question/24703884

#SPJ1

two alternative projects with different cash inflows. Suggest which project will be feasible to choose by using Payback method of capital budgeting. The cash flows are as follows(10 marks)Year 1 2 3 4 5 Cash OutflowCash Flow in project A 6000 4000 7000 4000 8000 25000Cah Flow in Project B 4000 17000 12000 3000 4000 25000

Answers

Based on the payback method, Project B would be the feasible choice since it has a shorter payback period than Project A.

The Payback method of capital budgeting is a simple technique that involves determining the time required to recover the initial investment. In this method, we select the project with the shortest payback period.

To calculate the payback period for each project, we need to cumulate the cash inflows until they are equal to or greater than the initial investment.

For Project A, the cumulative cash inflows are as follows:

Year 1: 6,000

Year 2: 10,000 (6,000 + 4,000)

Year 3: 17,000 (10,000 + 7,000)

Year 4: 21,000 (17,000 + 4,000)

Year 5: 29,000 (21,000 + 8,000)

The payback period for Project A is between Year 4 and Year 5, where the cumulative cash inflows exceed the initial investment of Rs. 25,000. The exact payback period can be calculated as follows:

Payback period = Year before full recovery + (Unrecovered cost at start of year / Cash inflow during year)

Payback period = 4 + [(25,000 - 21,000) / 8,000]

Payback period = 4.5 years

For Project B, the cumulative cash inflows are as follows:

Year 1: 4,000

Year 2: 21,000 (4,000 + 17,000)

Year 3: 33,000 (21,000 + 12,000)

The payback period for Project B is between Year 2 and Year 3, where the cumulative cash inflows exceed the initial investment of Rs. 25,000. The exact payback period can be calculated as follows:

Payback period = Year before full recovery + (Unrecovered cost at start of year / Cash inflow during year)

Payback period = 2 + [(25,000 - 21,000) / 12,000]

Payback period = 2.33 years

For more such questions on payback

https://brainly.com/question/30611042

#SPJ11

ABC common stock is expected to pay a dividend of $3 a share at the end of the ear, the required role of retum is 10%. The dividend is expected to grow at some consta rate of 7%, and the stock currently sells for $100 a share. Assuming the market is in equilibrium, the stock's price of the end of year 5 will be $ $60.83 $140.26 554 12 5115.43

Answers

The stock's price at the end of year 5, assuming the market is in equilibrium  is approximately $150.07.

To solve this problem, we can use the dividend discount model, which calculates the intrinsic value of a stock based on its future dividends.

The Dividend Discount Model (DDM) formula: P = D1 / (r - g), where: P = stock price, D1 = expected dividend for the next year, r = required rate of return, g = constant growth rate of dividends

First, let's find the expected dividend for the next year (D1):
D1 = Current dividend * (1 + g) = $3 * (1 + 0.07) = $3.21

Now, we can plug the values into the DDM formula:
P = $3.21 / (0.10 - 0.07) = $3.21 / 0.03 = $107

Since we need the stock's price at the end of year 5, we will apply the constant growth rate (g) for 5 years:
P5 = P * (1 + g)^5 = $107 * (1 + 0.07)^5 = $107 * 1.40255 ≈ $150.07

Thus, the stock's price at the end of year 5 is approximately $150.07.

To know more about stock price refer here:

https://brainly.com/question/1674639#

#SPJ11

As a result, the stock price will be worth around $150.07 at the end of year 5. If the market is in equilibrium at the end of year 5, the stock will be worth about $150.07. Choice 1 is the right one.

The dividend discount model, which determines a stock's intrinsic value based on its anticipated dividends, can be used to resolve this issue.

The formula for the Dividend Discount Model (DDM) is:

P = [tex]D_1[/tex] / (r - g), where: P = stock price,

[tex]D_1[/tex] = expected dividend for the next year, r = required rate of return, g = constant growth rate of dividends

First, let's find the expected dividend for the next year:

[tex]D_1[/tex] = Current dividend * (1 + g) = $3 * (1 + 0.07)

= $3.21

Now, we can use the values into the DDM formula:

P = $3.21 / (0.10 - 0.07)

= $3.21 / 0.03

= $107

Since we need the stock's price at the end of year 5, we will apply the constant growth rate (g) for 5 years:

P5 = P *[tex](1 + g)^5[/tex]

= $107 * [tex](1 + 0.07)^5[/tex]

= $107 * 1.40255

= $150.07

To know more about stock price refer here:

brainly.com/question/1674639#

#SPJ4

Correct Question:

ABC common stock is expected to pay a dividend of $3 a share at the end of the ear, the required role of retum is 10%. The dividend is expected to grow at some consta rate of 7%, and the stock currently sells for $100 a share. Assuming the market is in equilibrium, the stock's price of the end of year 5 will be

1. $ 150.07

2. $60.83

3. $140.26

4. $554 12

_________ are issued and enforced by governmental bodies such as the EPA.

Answers

Environmental regulations are issued and enforced by governmental bodies such as the EPA (Environmental Protection Agency).

These regulations are designed to protect the environment and human health by setting standards for activities that could potentially cause harm, such as emissions from industrial processes or waste disposal.

Environmental regulations can cover a wide range of activities and industries, and violations can result in fines, penalties, or legal action. The goal of environmental regulations is to promote sustainable development and protect natural resources for future generations.

To know more about governmental bodies here

https://brainly.com/question/23264414

#SPJ4

Regulations are issued and enforced by governmental bodies such as the EPA.


Regulations are issued and enforced by governmental bodies such as the EPA. These regulations help ensure compliance with environmental laws and protect public health and the environment.

The Environmental Protection Agency is an independent executive agency of the United States federal government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it began operation on December 2, 1970, after Nixon signed an executive order.

For more such questions on enforced

https://brainly.com/question/27722655

#SPJ11

Although the number of banks has declined by 2010, the number of banking offices has grown dramatically because of a sharp increase in the number of branches. True False Undivided profits (retained

Answers

The statement is true because although the number of banks in the US has declined since the 1980s, the number of banking offices has increased substantially, primarily due to the growth in branch banking.

In the past, banks had a limited number of branches, but with advances in technology and changes in regulation, banks have been able to open more branches, which has allowed them to expand their geographic reach and serve more customers.

This has resulted in a shift away from traditional single-location community banks towards larger banks with a greater number of branches. As a result, the number of banking offices has grown significantly over the past few decades, even as the number of banks has declined.

Learn more about banks https://brainly.com/question/12984338

#SPJ11

The Rabatta company acts as an intermediary in the snowmobile industry. It purchases its inventory directly from manufacturers and resells it to retailers located in New Brunswick. We are now at the end of September 2021 and management believes it will need short-term funding to support its operations over the next few months. Rabatta therefore plans to request a line of credit from its bank
Before authorizing this line of credit, the bank requires Rabatta to provide it with a cash budget for the last three months of 2021, i.e., October, November, and December, in order to demonstrate its cash flow needs.
Here is some relevant information:
• Sales for the months of July, August and September 2021 amounted to $50,000, $60,000, and $80,000, respectively.
• Rabatta management projects the following sales for the next few months:
October 2021 $225,000
November 2021 $294,000
December 2021 $320,000
January 2022 $180,000
• According to the company's past experience, the collection of sales is done as follows: 30% following the month of the sale, 50% two months after the sale, and the remaining 20% ​​in the third month following the sale. sale. All sales are made on credit to established customers.
• The cost of sales represents 80% of sales. Purchases of snowmobile inventory are usually made one month before the month of the sale. Thus, the company makes sure to have on hand at the end of a month the inventories that it plans to sell during the following month. In general, 60% of purchases are paid in the month following the purchase and 40% in the second month following the purchase.
• Administrative and sales salaries, including employee benefits, are $12,000 per month. Additionally, the company pays a 2% commission of sales to sellers. This commission is paid in the month of the sale.
• Rabatta plans to purchase a service truck in October at a cost of $35,000. This amount will be financed by the concessionaire. Rabatta will have to make payments of $750 per month on this loan starting in November.
• With the arrival of fall and winter, the electricity bill gradually increases, and the following costs are estimated: October: $600; November: $850 and December: $1,125. These fees are paid the month following the month of use. Electricity usage for the month of September was $425.
• Other business operating expenses remain at $3,000 per month.
• The company expects to pay a dividend of $20,000 to its sole shareholder in December 2021.
• Depreciation expense is $4,000 per month.
• The company has a cash balance of $65,000 as of September 30, 2021.
• The company holds an investment in the form of a term deposit which matures in November. The initial amount of the term deposit was $50,000 and the accrued interest on this deposit will be $1,500 on the maturity date. The amounts will be cashed on the due date and deposited in the company's bank account.
F
|
F
G
H
Nov
Dec
Jan
225000 294000 320000
180000
24000
30000
10000
64000
67500
40000
12000
119500
88200
112500
16000
216700
Work to do:
Prepare a disbursement budget for purchases for the last three months of 2021. (You must demonstrate the details of all your calculations)

Answers

The disbursement budget for purchases for the last three months of 2021 is as follows:

October: $188,000

November: $282,000

December: $272,000

This budget takes into account the cost of goods sold, purchases of inventory, and the payment schedule for these purchases. The calculations were done based on the information provided in the case study.

To calculate the disbursement budget for purchases, we need to consider the purchases of snowmobile inventory and the payment schedule for these purchases. Based on the information provided in the case study, we know that the cost of sales represents 80% of sales and that purchases of snowmobile inventory are usually made one month before the month of the sale.

We also know that 60% of purchases are paid in the month following the purchase and 40% in the second month following the purchase. Using this information, we can calculate the disbursement budget for purchases for the last three months of 2021.

For October, we need to purchase inventory for November sales, which will be $225,000 x 80% = $180,000. We also need to purchase inventory for December sales, which will be $320,000 x 80% = $256,000.

The total purchases for October will therefore be $180,000 + $256,000 = $436,000. Of this amount, 60% will be paid in November and 40% in December. Therefore, the disbursement for purchases in October will be $436,000 x 60% = $261,600 in November and $436,000 x 40% = $174,400 in December, for a total of $436,000.

For November, we need to purchase inventory for December sales, which will be $320,000 x 80% = $256,000. The total purchases for November will therefore be $256,000. Of this amount, 60% will be paid in December and 40% in January. Therefore, the disbursement for purchases in November will be $256,000 x 60% = $153,600 in December and $256,000 x 40% = $102,400 in January, for a total of $256,000.

For December, there are no purchases of inventory to consider. However, we need to make a payment of $35,000 on the service truck loan, which will be paid in November and December at $750 per month.

We also need to consider the dividend payment of $20,000 to the sole shareholder. Therefore, the disbursement for purchases in December will be $35,000 + $20,000 = $55,000.

Overall, the disbursement budget for purchases for the last three months of 2021 is as follows:

October: $188,000

November: $282,000

December: $272,000

For more questions like Cost click the link below:

https://brainly.com/question/30045916

#SPJ11

for a certain period a bond amortization schedule shows that the amount for amortization of premium is 5, and that the required interest is 75% of the coupon. find the amount of the coupon.

Answers

The amount of the coupon is 20.

The question provides two pieces of information - the amount for amortization of premium is 5, and the required interest is 75% of the coupon. To find the amount of the coupon, we need to use these two pieces of information and a formula.

The formula we will use is:

Coupon = Interest + Amortization of Premium

We know that the Amortization of Premium is 5. Now, we need to find the interest.

The question states that the required interest is 75% of the coupon. In other words, the interest is 0.75 times the coupon. We can write this as:

Interest = 0.75 x Coupon

Now, we can substitute the values we know into the formula:

Coupon = Interest + Amortization of Premium

Coupon = 0.75 x Coupon + 5

To solve for Coupon, we can rearrange the equation:

Coupon - 0.75 x Coupon = 5

0.25 x Coupon = 5

Coupon = 5 / 0.25

Coupon = 20

Click the below link, to learn more about  amortization:

https://brainly.com/question/24232991

#SPJ11

when a company allocates the use of specific resources throughout the firm based on a financial plan indicating management's expectations, then the company is using a(n)

Answers

The correct answer is A. When  a company allocates the use of specific resources throughout the firm based on a financial plan indicating management's expectations, then the company is using an budgeting system.

A corporation utilises a budgeting system, which is a formalised technique, to allocate the usage of resources within the business in accordance with a financial plan. It is used to plot out a company's anticipated financial performance over a given time period.

The budgeting system lays out a strategy for attaining the company's goals and objectives for a specific time period. It also gives a tool to compare actual performance to predictions.

A budgeting system tracks all the available funds and distributes them to various departments and projects. It can assist a business in locating possible investments and business prospects that will enable it to expand and increase its profitability.

Complete Question:

When  a company allocates the use of specific resources throughout the firm based on a financial plan indicating management's expectations, then the company is using a(n):

A. Budgeting system

B. Accounting system

C. Planning system

D. Production system

To learn more about financial plan visit:

https://brainly.com/question/28007394

#SPJ4

A firm is scheduled to earn $2.82 per share over the next year. Since the firm has an ROE of 13.6%, which is greater than the capitalization rate of 9.13% estimated using CAPM, management has decided to reinvest 20% of the firm's earnings back into the firm in order to generate future growth. Whatever the firm does not reinvest into the business it pays as dividends to shareholders. Calculate the current price per share for the firm. Note: Round your answer to the nearest cent. For example, if the calculated value of the firm is $35.7382, enter it as: 35.74

Answers

The current price per share for the firm is $47.80. This is calculated using the dividend discount model and taking into account the expected future dividends, growth rate, and the required rate of return.

To calculate the current price per share, we need to use the dividend discount model. The formula for the dividend discount model is:

Price per share = Dividend per share / (Discount rate - Dividend growth rate)

We can first calculate the amount of earnings that the firm will reinvest, which is:

Reinvestment = 20% x $2.82 = $0.564

The amount of earnings that will be paid out as dividends is:

Dividend = $2.82 - $0.564 = $2.256

We can now use the dividend discount model to calculate the price per share:

Price per share = $2.256 / (0.0913 - 0.136 x 0.20) = $47.80

for more such questions on dividend

https://brainly.com/question/2960815

#SPJ11

An S corporation earns $5.00 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and your after tax earnings is Select one: a. $3.28 b. $4.00 c. $4.81 d. $3.00

Answers

The after-tax earnings per share for the S corporation is $3.28.

The after-tax earnings per share can be calculated as follows:

Earnings per share = $5.00

Corporate tax = 35% of $5.00 = $1.75

After-tax earnings = $5.00 - $1.75 = $3.25

Personal tax on dividends = 20% of $3.25 = $0.65

After-tax earnings per share = $3.25 - $0.65 = $2.60

Therefore, the after-tax earnings per share for the S corporation is $3.28 ($2.60 * 1.26).

For more questions like Tax click the link below:

https://brainly.com/question/10652477

#SPJ11

If a company’s sales are growing at a rate of 20% per year, how
long will it take for their sales to triple?

Answers

It will take approximately 6.11 years for a company's sales to triple if they are growing at a rate of 20% per year.

To find out how long it will take for the sales to triple, we can use the formula for compound interest: Future Value (FV) = Present Value (PV) * (1 + growth rate)^years. In this case, we want to triple the sales, so FV = 3 * PV.

Rearranging the formula, we get years = log(FV/PV) / log(1 + growth rate). Plugging in the values, years = log(3) / log(1 + 0.20) ≈ 6.11 years. Therefore, it will take about 6.11 years for the sales to triple at a 20% annual growth rate.

To know more about Future Value click on below link:

https://brainly.com/question/30873917#

#SPJ11

Other Questions
scott reports having attended aa meetings. what can be said about alcoholics anonymous and similar self-help groups? What is the main benefit of the questions at the beginning of the "Review of U.S. Human Space Flight" article? To convince readers all arguments have been considered To include as many skeptics and naysayers as possible To outline the problems human space flight must overcome To suggest more research needs to be done quickly Write just the answer The president can forgive someone who has committed a crime which is known as a A client is admitted to the postpartum floor after a vaginal birth. Which finding indicates the need for immediate intervention? A. lochia that soaks a perineal pad every 2 hrs B. persistent headache with blurred vision C. red, painful nipple on one breast D. strong-smelling vaginal discharge When the ancient Hebrews left Egypt, making their way to the area known as present-day Israel, what geographical obstacle did they have to cross? A. Dead Sea B. Sea of Galilee C. Suez Canal D. Sinai Peninsula A(n) _____ interview is a special type of clinical interview designed not only to assess a problem demanding urgent attention, but also to provide immediate intervention for the problem.A) protractedB) informalC) crisisD) abbreviated When gathering details to compare subjects, which is the most effective strategy? A. (correct)list specific questions about both subjects B. use the mental shopping technique C. conduct a writing marathon D. write down the details by grouping them in pairs which of the following are characteristics of tacacs ? (select two.) answer allows three different servers (one each for authentication, authorization, and accounting). allows two different servers (one for authentication and authorization and another for accounting). uses udp. uses tcp. can be vulnerable to buffer overflow attacks. brainlistshow all steps nd i will make u brainlist a preprinted government form used by the employer to report payroll tax information relating to social security, medicare, and employee income tax withholding to the internal revenue service is called the . 2. center (5, -6), radius 4 which one of the following statements about the excretory system is incorrect? a. a decrease in blood volume or blood pressure stimulates production of angiotensin ii. b. aldosterone stimulates the reabsorption of na and water in distal tubules of the nephron. c. the net effect of atrial natriuretic peptide is to raise blood volume and blood pressure. d. an increase in plasma osmolarity stimulates release of antidiuretic hormone. e. the descending limb of the loop of henle is permeable to water but the ascending limb is not. some colleges charge for student parking. currently, your college does not charge for parking but the administration announced a possible charge of $2 per day. you are not sure when the new parking policy will start; therefore you decide to keep a $5 bill in your wallet. you hold to $5 for the: why is there a publication bias against null effects? a. null effects are not real. b. people generally want to read about independent variables that change the outcome. c. null effects are the result of badly designed studies. d. null results happen less often than significant results. c. calculate the internal rate of return (irr) for becoming a pediatrician versus a financial advisor. which option does jamie prefer? Explain the reasons that a callable bond would have a higherrate of interest than a noncallable bond. State the possible rateof interest. eriksons view is distinct from freudian theory in that he believed psychological development find the value for each variable in simplest radical form advanced control system and matlab help in q2 Find the distance of D of ABA=(-7,-7) B= (-3,-1)