Answer: b. the necessity to think in the long term rather than the short term
Explanation:
There are policy changes that a company can make that will result in them having lower profits. For this reason, the CEO might face opposition or limitations from certain people or principles in implementing such changes.
The Board of Directors is one such limitation as they owe it to the shareholders to maximise their wealth and if climate change policy might hinder that, they might limit the policy. This reason is the same for any limitation from investor support which is linked directly to profits.
The CEO also has the same fiduciary responsibility to maximise shareholder wealth as well. The only option which is not a limiting factor therefore is the necessity to think in the long term rather than the short term.
The primary focus for financial accounting information is to provide information useful for: Investing decisions Credit decisions a. Yes Yes b. Yes No c. No Yes d. No
Answer:
a. Yes yes
Explanation:
The primary focus for financial accounting information is to provide useful information to investors for decision making. This is to enable both present and potential investors have prior knowledge and state of affairs of the company or business they want to spend their money on.
However, in the long run, the focus for financial accounting would also include providing useful information for credit decisions. The aforementioned would only occur if a company is able to generate profit hence providing rate of returns to their investors.
Answer:
MAYBE
Explanation:
yes + no = maybe
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,600 and will produce cash flows as follows: End of Year Investment A B 1 $ 8,600 $ 0 2 8,600 0 3 8,600 25,800 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is:
Answer:
Net present value $1,363.50
Explanation:
The computation of the net present value of B is shown below:
Year Cash flows PVIFA factor at 15% Present value
0 -$15,600 1 -$15,600
1 0 0.8696 0
2 0 0.7561 0
3 25,800 0.6575 $16,963.50
Net present value $1,363.50
Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring services, and TiX, which can be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results. Toot! TiX Total Users 17,900 24,100 42,000 Revenues $ 2,200,000 $ 2,400,000 $ 4,600,000 Engineering hours 11,500 9,500 21,000 Engineering cost $ 1,096,250 $ 1,213,750 $ 2,310,000 Administrative costs $ 1,848,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the number of users to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service
Answer:
Instructions are below.
Explanation:
Giving the following information:
Toot! TiX Total
Users 17,900 24,100 42,000
Administrative costs $ 1,848,000
We need to allocate administrative costs to each product. First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,848,000/42,000
Predetermined manufacturing overhead rate= $44 per user
Now, we allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Toot!= 44*17,900= 787,600
TiX= 44*24,100= 1,060,400
Finally, the gross profit for each service:
Toot!:
Revenue= 2,200,000
Engineering cost= (1,096,250)
Administrative cost= (787,600)
Profit= $316,150
TiX:
Revenues= 2,400,000
Engineering cost= (1,213,750)
Administrative cost= (1,060,400)
Profit= $125,850
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $425,000 to $445,500 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $1,140,000 and current break-even units are 11,400. If Forrester purchases this new equipment, the revised break-even point in dollars would be:
Answer:
Break-even point (dollars)= $810,000
Explanation:
Giving the following information:
Fixed costs= $445,500
Unitary variable cost= $45
Selling price= $100
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 445,500 / [(100 - 45) / 100]
Break-even point (dollars)= $810,000
Which of the following is an example of internally caused behavior? An employee was laid off because the company was attempting to cut costs by laying off employees. An employee was late for a team meeting because of a heavy downpour. An employee could not come to work because he met with an accident. An employee could not attend an interview because of a delayed flight. An employee was fired from work because he violated a company policy.
Answer:
An employee was fired from work because he violated company policy
Explanation:
One of the factor that determine the behavior of people is the way the event arround them is interpreted. Those that can control things arround them usually take responsibility for what they do compare to set of people believing that situation arround them is beyond their control, which is explained in" attribution theory" by Fritz Heider. Internally caused behavior can be regarded as challenging behavioras a result of internal stimuli such as traits, pain and anxiety.
Out of the options given in the question only "An employee was fired from work because he violated a company policy" is an example of internally caused behavior, since the violation is on the path of the employee which is as a result of internal behavior known to him.
you are planning to organize a get together for alumni. as an organizer send an invitation letter to all alumni
Answer:
hehe
Explanation:
hehe
Parent Corporation acquired 100% of Sub Corporation on January 1, 2020 for $285,000. The trial balances for the two companies on December 31, 2020, included the following amounts: Other information: 1. Out of the total purchase price, $60,000 is paid for the goodwill. However, the manager assess the reporting division and estimated that 50% of the goodwill has impaired. 2. The rest of the differential is split between the building and equipment (40%) and inventory (60%). By the end of the year, Sub Corp sold 50% of all the inventories acquired. The building and equipment has five years of remaining economic life and the company uses the straight line depreciation. 3. Sub Corp owed Parent Corp $20,000 in the form of accounts of payable as of December 31, 2020. Task 1a: Calculate the amount of differential? Task 1b: What is the amount of excess value (i.e., fair value above the book value)? Task 1c: What is the book value of Sub’s net asset? Task 2: Give all journal entries recorded by Parent with regard to its investment in Sub during 2020.
Answer:
Note: The full question is attached as picture
Task 1
a. Net Assets of Company = Common Stock + Retained Earning = $25,000 + $115,000 = $140,000
Amount of Differential on purchase of Company = Purchase price - Net Assets
Amount of Differential on purchase of Company = $285,000 - $140,000
Amount of Differential on purchase of Company = $145,000
b. Excess Value = $145,000 - $60,000 = $85,000
c . Book Value of Sub's Net Assets = $140,000
Task 2
Journal entries recorded by Parent with regard to its investment in Sub during 2020.
Date Description and Explanation Debit Credit
Investment in Sub Corp $285,000
To Bank $285,000
(Being purchase consideration paid)
The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 4.40%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity?
Interest Rates
Nominal rate 4.40%
Periodic rate 1.10%
Effective annual rate 4.47%
Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. He particularly likes his local bank because he is being offered a nominal rate of 4%. But the bank is compounding daily. What is the effective interest rate that Rahul would pay for the loan?
a. 4.081%
b. 4.202%
c. 3.959%
d. 4.395%
Another bank is also offering favorable terms, so Rahul decides to take a loan of $22,000 from this bank. He signs the loan contract at 9% compounded daily for nine months. Based on a 365-day year, what is the total amount that Rahul owes the bank at the end of the loan's term? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.)
a. $24,477.81
b. $24,948.54
c. $23,536.36
d. $24,007.09
Answer:
1. a. 4.081%
2. c. $23,536.36
Explanation:
1. Periodic rate=(4.4%/4) = 1.1%
EAR=(1+APR/m)^m-1
where m=compounding periods
= (1+0.044/4)^4-1
= 1.011^4 - 1
= 1.04473133864 - 1
= 0.04473133864
= 4.47%
EAR=(1+APR/m)^m-1
where m=compounding periods
=(1+0.04/365)^365-1
= (1+0.00010958904)^365 - 1
= 1.00010958904^365 - 1
= 1.04080849272 - 1
= 0.04080849272
= 4.081%
2. A=P(1+r/365)^365*n
where A=future value, P=present value, r=rate of interest, n=time period.
= 22000*(1+9%/365)^(9/12*365)
= $23,536.36
A company offers ID theft protection using leads obtained from client banks. Three employees each work 40 hours a week on the leads. These employees are each paid $25 per hour. Each employee identifies an average of 3,000 potential leads a week. There are no duplications in these three lists. Material costs are $1,000 per week, and overhead costs are $9,000 per week. An average of 4 percent of the potential leads actually sign up for the service, paying a one-time fee of $70. Consider the output as the fees generated. a) What are the labor hours productivity and the multifactor productivity for this operation
Answer:
Output = 4%*3000 * $70 * 3
Output = $25,200
Labor hours productivity = Output / Labor hour
Where Labor hour = 3 * 40 hours = 120 hours
Labor hours productivity = $25,200 / 120 hours
Labor hours productivity = $210 per labor hour
Multi factor productivity for this operation = Output / Multi factor input
Where Multi factor input = 120*$25 + $1,000 + $9,000 = $13,000
Multi factor productivity for this operation = $25,200 / $13,000
Multi factor productivity for this operation = 1.938462
Multi factor productivity for this operation = 1.94
You and your best friend watch the same television commercial together. You think that thespokesperson in the ad is quite humorous. Your friend thinks that the spokesperson is just plain stupid. This is an example of:
Answer:
the creation of different meanings based on social and cultural context.
Explanation:
In our daily interactions with others, we tend to come across people whose values are different from ours. The difference can be attributed to different cultural and social backgrounds. Culture is a people's way of life. This embraces their beliefs, values, religion.
When people have different values, they tend to see things differently. That can account for the reason why a friend would view an ad as humorous, while another would view it as plain stupid.
Doreen has preferences represented by the utility function U(x, y) = 10x + 5y. She consumes 10 units of good x and 9 units of good y. If her consumption of good x is lowered to 1, how many units of y must she have in order to be exactly as well off as before?
Answer:
she must consume 11 units of good Y
Explanation:
Doreen's current utility = (10 x 10) + (5 x 9) = 145 utils
if she consumes only 9 goods of X, her utility will be:
90 + 5Y
the amount of good Y that makes both equations equal is:
90 + 5Y = 145
5Y = 55
Y = 55 / 5 = 11 units
What features of the 100 Yen Sushi House service delivery system differentiate it from the competition, and what competitive advantages do they offer?
Answer:
The summary and as per the query is defined in the following portion of the clarification.
Explanation:
The key characteristics including its 100 yen sushi management of service distribution system are its approaches to meal preparation and facilities on the manufacturing process. The client is also involved throughout the supply chain. The regular price, the conveyor belt mechanism throughout the location, which passes across the commercial counter, is three to four chefs on the floor.
The benefits of this are the people that follow:
High-tech independence including the use of clear methods. The positions that their operation involves repetition throughout their manufacturing method there might be other providers that could follow 100 yen sushi household operational efficiency. The distribution system used for the 100 yen sushi household delivery of services may also be regarded for car production. By only using throughout time method, the location uses freshly delivered food. The position has always had to estimate the volume of food purchased as well as cook it regularly according to the purchase request.In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures to a market value basis. KJM Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par) $10,000,000 Preferred stock 2,000,000 Common stock ($10 par) 10,000,000 Retained earnings 4,000,000 Total debt and equity $26,000,000 The bonds have a 4.0% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt
Answer:
$5,412,000
Explanation:
The semi annual interest = $20
Periods (n) till maturity are 10*2 = 20
Discounting rate is 12%/2 = 6%
Principal amount is $1,000
Market Value = 20 * PVIFA (20,6%) + 1,000 * PVIF (20,6%)
Market Value = 20 * 11.4699 + 1,000 * 0.3118
Market Value = 229.398 + 311.8
Market Value = 541.198
Market value = $541.20
Number of bonds = 10,000,000/1,000
Number of bonds = 10,000
Current market value = Number of bonds * Market value
Current market value = 10,000 * 541.20
Current market value = $5,412,000
Cutting flights and declaring bankruptcy are long-run decisions. What impact would you predict these actions would have on the airlines remaining in business?
Answer:
Follows are the solution to this question:
Explanation:
The declaration of bankruptcy as well as flight cutting reduces the amount for flights and also the flight sin operation leading to both a supply reduction. While the business continued, its other airlines will have an increased engagement and thus higher prices and will be seeing recovery for both the airline industry over an amount of time.
Bob has been investing $4,000 in stock at the end of every year for the past 8 years. If the account is currently worth $45,000, what was his annual return on this investment?a. 10.61%b. 10.91%c. 8.81%d. 9.55%e. 9.07%
Answer:
d. 9.55%
Explanation:
we can use the future value of an annuity formula to calculate Bob's annual return:
future value = annual contribution x FV annuity factor
future value = $45,000
annual contribution = $4,000
FV annuity factor = ?
FV annuity factor = future value / annual contribution = $45,000 / $4,000 = 11.25
FV annuity factor = [(1 + i)ⁿ - 1] / i
11.25 = [(1 + i)⁸ - 1] / i
11.25i = (1 + i)⁸ - 1
solving this problem is really complicated, but there is a much simple way to do it:
e) 11.25 x 0.0907 = (1 + 0.0907)⁸ - 1
1.020375 ≠ 1.0028
d) 11.25 x 0.0955 = (1 + 0.0955)⁸ - 1
1.0744 = 1.0744 ⇒ this option is correct
Which of the following statements is the most accurate? Sole proprietorships are well suited for people who want to own a business and share in its profits without taking an active role in management. Sole proprietorships are the least risky form of business ownership. Sole proprietorships must receive a state charter before they can legally conduct business. Sole proprietorships are taxed at the owner's personal tax rate.
Answer:
D. Sole proprietorships are taxed at the owner's personal tax rate
Explanation:
Sole Proprietorship can be defined as a simplest form of owning and starting any business. As the term suggests, this business is onwed by an individual only or shared by married couples.
Sole properietorship is easy to set up because the owner need not to register itself to state government, therefore, because of absence of governmental involvement, it is easy to set up or deconstruct sole proprietorship.
From the given options, the statement which is most accurate about a sole proprietorship is option D. The owner of sole proprietorship pays personal taxes on the profits earned by his/her business.
Therefore, option D is correct.
The difference between total factory overhead cost incurred during a period and the total standard factory overhead cost assigned to production of the period is the:______________.
A) Flexible-budget variance.
B) Production-volume variance.
C) Total factory overhead variance.
D) Overhead efficiency variance.
E) Total overhead spending variance.
Answer: C. Total factory overhead variance
Explanation:
The difference between total factory overhead cost incurred during a period and the total standard factory overhead cost assigned to production of the period is the total factory overhead variance.
Flexible budget variance is the difference that occurs between the results that are gotten by the flexible budget model and the actual results gotten.
Production volume variance is the difference that occurs between the budgeted production volume for a particular company and the actual volume of goods produced.
The correct option is C.
4. Give two reasons why GDP is often not seen as the best measure of living standards.
Answer:
Different factors account to it.
Explanation:
Because many factors that contribute to people's happiness are not bought and sold, GDP is a limited tool for measuring standard of living. To understand it's limitations better, let's take a look at several factors that are not accounted for in GDP.
GDP does not account for leisure time. The US GDP per capita is larger than the GDP per capita of Germany, but does this prove that the standard of living in the United States is higher? Not necessarily since it is also true that the average US worker works several hundred hours more per year more than the average German worker. The calculation of GDP does not take German workers extra weeks of vacation into account.
GDP includes what is spent on environmental protection, healthcare, and education, but it does not include actual levels of environmental cleanliness, health, and learning. GDP includes the cost of buying pollution-control equipment, but it does not address whether the air and water are actually cleaner or dirtier. GDP includes spending on medical care, but it does not address whether life expectancy or infant mortality have risen or fallen. Similarly, GDP counts spending on education, but it does not address directly how much of the population can read, write, or do basic mathematics.
a. Consumption schedule The variable on the vertical (y) axis is (Click to select) and the variable on the horizontal (x) axis is (Click to select) . These variables are (Click to select) related. b. Saving schedule The variable on the vertical (y) axis is (Click to select) and the variable on the horizontal (x) axis is (Click to select) . These variables are (Click to select) related. c. What is the fundamental reason that the levels of consumption and saving in the United States are each higher today than they were a decade ago
Answer:
a. Consumption schedule
The variable on the vertical (y) axis is Consumption and the variable on the horizontal (x) axis is disposable income .
These variables are directly related.
On the Consumption schedule, the variables on the y axis are the different levels of consumption whilst the variables on the x are amounts of disposable income.
Consumption and disposable income are directly related because when the amount of disposable income increases, the amount that consumers can spend will increase as well as it comes from the disposable income that a consumer has.
b. Saving schedule
The variable on the vertical (y) axis is Saving and the variable on the horizontal (x) axis is disposable income .
These variables are directly related.
On the Saving schedule the x axis which is for the independent variable is the Disposable income whilst the dependent variable on the y axis is for Savings.
Savings and Disposable income are directly relate because when a person has more money after taxes (disposable income), they will be able to save more money.
c. Real GDP and disposable income are higher.
The Real GDP of the United States as well as disposable income have increased over the past decade which means that people are able to both consume and save more s shown above.
You are thinking of opening a Broadway play, I Love You, You’re Mediocre, Now Get Better! It will cost $5 million to develop the show. There are 8 shows per week, and you project the show will run for 100 weeks. It costs $1000 to open the theater each night. Tickets sell for $50.00, and you earn an average of $1.50 profit per ticket holder from concessions. The theater holds 800, and you expect 80% of the seats to be full. a. Given your other assumptions, how many weeks will the play have to run for you to earn a 100%
Answer:
39 weeks
Explanation:
initial investment = $5 million
Your goal is to a better person and get rich by doubling your development costs. You want to earn $10 million in profits, so you will need to sell a lot of seats.
8 shows per week x 100 weeks = 800 shows
revenue per ticket = $50 + $1.50 = $51.50
tickets sold per show = 800 x 80% = 640
total revenue per show = 640 x $51.50 = $32,960
variable cost per show (assuming 7 nights per week) = $7,000 / 8 = $875
contribution margin per show = $32,960 - $875 = $32,085
number of shows needed to earn $10 million in profits = $10,000,000 / $32,085 = 311.67 shows
number of weeks = 311.67 / 8 = 38.96 ≈ 39 weeks
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian ________ and the South Korean ________
Answer: GNP; GDP
Explanation:
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian GNP and the South Korean GDP.
Gross National Product refers to the total amount of domestic production and foreign production that can be attributed to the residents of a nation.
This means that GNP includes the GDP and income earned by residents of the country in other countries but less the income earned by foreigners in the country. For Canada therefore, the value of goods produced by the Canadian company in South Korea will be added to the GNP.
Gross Domestic Product (GDP) on the other hand is simply the total final value of goods and services produced in a country regardless of if it was foreigners or residents doing the production. The value of what a Canadian-owned Tim Hortons produces in South Korea is therefore included in South Korea's GDP.
ACE Co. stock is not paying a dividend today, but has announced it will start paying a dividend in year 4 of $2.00 per share, and that will increase 5% per year forever. What is an estimate of the price of the stock today if r
Answer:
$77.22
Explanation:
the question is incomplete, so I looked for a similar question and found that Re = 9%
Div₀ = 0
Div₁ = 0
Div₂ = 0
Div₃ = 0
Div₄ = $2
the terminal value at year 3 = Div₄ / (Re - g) = $4 / (9% - 5%) = $100
in order to determine the current stock price we must discount $100 by 9% for 3 periods = $100 / 1.09³ = $77.22
A customer buys 1 XYZ Dec 30 call at 7 and sells 1 XYZ Dec 40 call at 1. Two months later, if the customer closes the positions when the spread is trading at 9 points, the customer has
Answer:
Gain of $300
Explanation:
Based on the information given the investor have a debit spread and Since the investor paid a net premium of the amount of $600 which is calculated as : (7 − 1) in which the spread had widened to 9 which means the investor will have a profit or gain of the amount of $300 calculated as :(9 − 6) due to the spread .
Therefore the customer has a gain of the amount of $300 reason been that it is a Debit spreads and secondly Debit spread are often profitable.
A semiannual coupon bond with face value of $1,000 has a coupon rate of 6% and matures in 16 years. The market-determined discount rate on this bond is 14%. What is the price of the bond?
Answer:
$1,125.30
Explanation:
The Price of the Bond is its Current/Trading price also known as the Present Value (PV). This is determined as follows :
Fv = $1,000
Pmt = $1,000 × 6% = $160
P/yr = 1
n = 16
i = 14%
PV = ?
Using the Financial calculator to enter the values as above, the Pv is $1,125.30.
Thus, the price of the bond is $1,125.30.
CF Manufacturing purchased inventory for $5,300 and also paid a $280 freight in bill 2/10, net 30. CF Manufacturing returned 60% of the goods to the seller and paid the bill within the discount period. What is the final inventory cost
Answer: $2357.6
Explanation:
Purchased Inventory = $5300
Less: purchase return = 60% × $5300 = 0.6 × $5300 = $3180
Amount = $2120
Less: purchase discount = 2% × $2120 = 0.02 × $2120 = $42.4
Amount = $2077.6
Add: Freight in: $280
Final Inventory cost = $2357.6
Preston Corp. is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sells for $1,100. The firm could sell, at par, $100 preferred stock which pays a 5.52 percent annual dividend, but flotation costs of 5 percent would be incurred. Preston's beta is 1.2, the risk-free rate is 3 percent, and the market risk premium is 5 percent. The firm's marginal tax rate is 40 percent. What is Preston's WACC
Answer:
Follows are the solution to this question:
Explanation:
[tex]\text{Equity expense = free risk rate+beta} \times \text{market risk premium}[/tex]
[tex]=3 \% + 1.2 \times 5 \% \\\\= 0.03 + 1.2 \times 0.05 \\\\= 0.03 +0.06 \\\\= 0.09\\\\=9 \%[/tex]
[tex]\text{Preferred inventory cost} = \frac{\text{annual dividend}}{( price - floation \ rate)}[/tex]
[tex]= \frac{(100 \times 5.46 \%)}{(100-100 \times 5 \%)}\\\\=5.75 \%[/tex]
[tex]\text{Excel feature = RATE(nper, PMT, PV, FV)}[/tex]
[tex]=(RATE( \frac{20 \times 2,1000 \times 12 \%}{2,-1100,1000})) \times 2 \\\\=10.77 \%[/tex]
[tex]\text{Debt expense after tax}= 10.77 \% \times (1-40 \%)[/tex]
WACC from Preston = Capital weight [tex]\times[/tex] Capital equity costs+cost of common stock [tex]\times[/tex] cost of common shares [tex]\times[/tex] debt cost [tex]\times[/tex] (1-tax rate)
[tex]=60 \% \times 9 \%+20 \% \times 5.75 \%+20 \% \times 6.46 \% \\\\=7.84 \%[/tex]
What is the present value of the following cash-flow stream if the interest rate is 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Year Cash Flow
1 $250
2 450
3 350
Answer:
Total PV= $948.6
Explanation:
Giving the following information:
Year Cash Flow
1 $250
2 450
3 350
Interest rate= 5%
To calculate the present value, we need to use the following formula on each cash flow:
PV = Cf/(1+i)^n
PV1= 250/1.05= 238.1
PV2= 450/1.05^2= 408.16
PV3= 350/1.05^3= 302.34
Total PV= $948.6
Suppose you won a $77,000 after-tax cash prize in the lottery. You want to start a new business that you think will lose money for a while, after which it will be up and running and bringing in big bucks. You plan to invest the funds immediately in securities that are expected to earn 8% per year. Suppose you would need only $19,000 per year during the start-up period. How long could you operate before you would require cash from the new business, i.e., how long could you receive payments of $19,000 per year? The first withdrawal will be made a year from today, and your answer will contain a fraction of a year.
Answer:
The right solution is "5.09 years".
Explanation:
The given values are:
Lottery amount
= $77,000
Withdrawal
= $19,000
Rate
= 8%
The number of withdrawal will be:
⇒ [tex]NPER(Rate,-withdrawal,lottery \ amount)[/tex]
On putting the values, we get
⇒ [tex]NPER(8 \ percent,-19000,77000)[/tex]
⇒ [tex]5.09 \ years[/tex]
If there was a 24% chance of having a contract signed to purchase a home in any one month and there were 55 homes on the market, what would be the probability that exactly 15 of them would have a contract signed during this month?
a. 10.3%
b. 24.0%
c. 66.7%
d. 23.0%
Answer:
a. 10.3%
Explanation:
P∝F of Binomial distribution is given as Pr.(x=x) = nCxP^x(1-p)^(n-x)
P = 0.24, n= 55, x =15 Note: C = Combination
Pr.(x = 15) = 55"C"15(0.24)^15(0.76)(55-15)
Pr.(x = 15) = 55"C"15(0.24)^15(0.76)^40
Pr.(x = 15) = 0.1026
Pr.(x = 15) = 10.26%
Pr.(x = 15) = 10.3%
Bean Brewers, Inc., a manufacturer of coffee makers, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) hours Account billing (lines) lines Account verification (accounts) accounts Correspondence (letters) letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) hours hours Account billing (lines) lines lines Account verification (accounts) accounts accounts Correspondence (letters) letters letters How much of the correspondence cost will be assigned to the Northeast Office? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
Answer: B. $438
Explanation:
Correspondence Cost = Number of letters * Predetermined cost of correspondence
Predetermined cost of correspondence = Allocated cost/ Allocated base
= 14,000/1,600 letters
= $8.75 per letter
Northeast Office used 50 letters for correspondence.
Cost = 8.75 * 50
= $437.50
= $438