Answer:
The answer is below
Explanation:
Considering the available options, the correct statements are:
1. A random variable is a quantitative or qualitative outcome that results from a chance experiment.
2. A probability distribution includes the likelihood of each possible outcome or random variable.
Answer:
Josiah’s results are more likely to be close to the predicted results because he had a smaller number of possible outcomes.
Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $640,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year.
Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $540,000. Scenic reported net income of $350,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $64,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows:
Placid Lake Scenic
Inventory $380,000 $114,000
Land 840,000 440,000
Equipment (net) 640,000 540,000
During 2020, intra-entity sales of $195,000 (original cost of $90,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $330,000 in intra-entity sales were made with an original cost of $83,000. Of this merchandise, 40 percent had not been resold to outside parties by the end of the year.
Required:
a. What is consolidated net income for Placid Lake and its subsidiary?
b. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and interest?
c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and interest?
Answer:
See the attached excel file for all the calculation related parts a, b, and c.
From the attached excel file, we have:
a. Consolidated net income for Placid Lake and its subsidiary is $815,700.
b-1. Noncontrolling interest share of consolidated net income is $27,570.
b-2. Placid Lakes share of consolidated net income is $788,130.
c-1. Noncontrolling interest share of consolidated net income is $34,300.
c-2. Placid Lakes share of consolidated net income is $781,400.
Explanation:
Note: See the attached excel file for all the calculation related parts a, b, and c.
A construction company is considering investing $80,000 in a dump truck. The truck will last 5 years, at which time it will be sold for $15,000. The maintenance cost at the end of the first year is estimated to be $9,000. Maintenance costs for the truck are estimated to increase by $1000 per year over its life. As an alternative, the company may lease the truck from a dealership for $X per year, including maintenance.
Required:
a. Draw a cash flow diagram of both alternatives.
b. For what value of X should the company lease the truck if the company does business with a MARR of 7%. Assume end-of-year lease payments.
Answer:
a) attached below
b) X < 2.7767.8
Explanation:
Working with the information available
a) Diagram of the cash flow of both alternatives ( Buying and leasing alternatives )
attached below
b) Determine the value of X if the company leases the truck
Given that : MARR = 7%
assuming end-of-year lease payments
Note : The company will only lease the truck if the cost of buying the truck is higher than the cost of leasing in the long term
∴ we will calculate for The cost of buying ( equivalent annual cost )
= -8000( A/P, 7%, 5 ) - 9000 - 1000 (A/G, 7%, 5 ) + 15000 (A/F, 7%, 5 )
= - 27767.8
Hence the value of X that the company should lease instead of buying will be : X < 2.7767.8
You are in the top-management team of a growing software company. You joined last month when the company had 60 employees. The company has secured more funding from investors and is preparing to scale up to nearly 500 employees over the next 18 months. What do you think is important to keep in mind as the organization prepares to grow
Answer:
The responses to these question can be described as follows:
Explanation:
The following are a few points that I understand are important to note as the business plans for development:
Learn what you should and shouldn't do:
As an HR professional, becoming able to adequately differentiate items is extremely important. There would not be bills passed that are a hindrance to future relationship progress, but it's critical to understand what should be done and that it shouldn't be done.
Stay Focused:
It the crucial to also be focused upon on strategy which will be implemented later on, while still remembering that its organization must build or create itself. It will develop the association, all energies and initiatives should be channeled into such a single direction.
Hiring the ideal people:
If an affiliation prepares for expansion, it's indeed critical to enlist its best people for the job, as shown by the role as well as the affiliation's launch. People who see it as important and knowledgeable to affiliation should be selected.
Invest in an extraordinary team:
Once their affiliation sets out how to build, it's critical whether you engage in a nice team that operates efficiently and effectively in the relationship to achieve the affiliation's aims and outcomes.
BenjaminCompanyproducesproductsC,J,andRfromajointproductionprocess.Eachproductmaybesold at the split-off point or processed further. Joint production costs of $95,000 per year are allocated to the productsbasedontherelativenumberofunitsproduced.DataforBenjamin'soperationsforlastyearfollow:
Answer:
Product C and J only should processed further.
Explanation:
A project from a joint process should be processed further if additional sales revenue from further processing exceeds further processing cost.
So we will compare the net income i.e additional sales revenue minus sales further processing cost less for the three products as follows:
Net income
Product C : (100,000-75,000)-20,000 = $5,000
Product J: (115,000-70,000)-36,000= $9,000
Product R: (55,000-46,500) - 10,000=$(1,500)
Product C and J only should processed further.
Dixie Chicken is about to close one of its fast food franchises. As part of the closing, the firm will sell a refrigeration unit and its cooking units. The book value of the refrigeration unit is currently $18,203.00, while the book value of the cooking unit is $3,713.00. A buyer has offered $12,454.00 for the refrigerator and $6,116.00 for the cooking unit. The tax rate facing the firm is 35.00%. What is the cash flow from selling these assets
Answer:
$19741.10
Explanation:
Cash flow from the sale = salvage value - tax(salvage value - book value)
Salvage value is the price at which the asset is sold
The refrigerator : $12,454.00 -0.35($12,454.00 - $18,203.00) = $14,466.15
$6,116.00 - 0.35($6,116.00 - $3,713.00) = $5274.95
Total cash flow = $5274.95 + $14,466.15 = $19741.10
Peyton sells an office building and the associated land on May 1 of the current year. Under the terms of the sales contract, Peyton is to receive $2,408,400 in cash. The purchaser is to assume Peyton's mortgage of $1,445,040 on the property. To enable the purchaser to obtain adequate financing, Peyton is to pay the $28,901 in points charged by the lender. The broker's commission on the sale is $96,336. What is Peyton's amount realized
Answer:
$3,728,203
Explanation:
Particulars Amount
Cash Received $2,408,400
Add: Mortgage assume by purchaser $1,445,040
Less: Broker's commission ($96,336)
Less: Points paid by Peyton ($28,901)
Amount realized $3,728,203
Suppose that in a given month $51 million is deposited into the banking system while $55 million is withdrawn. Also suppose that the Fed has set the reserve requirement at 25 percent and that banks have no excess reserves at the beginning of the month. What is the maximum amount of new checkable-deposit money that can be created (or removed) by the banking system as a result of these deposits and withdrawals?
Answer and Explanation:
The computation of the maximum amount of new checkable deposit money is given below:
The Net impact represent the decrease in the reserves by
= $55 million - $51 million
= $4 million
Now the
Multiplier = 1 ÷ Reserve requirement
= 1 ÷ 25%
= 4
Now Decrease in money supply is
= $4 million × 4
= -$16 million
One day, Barry the Barber, Inc., collects $400 for haircuts. Over this day, his equipment depreciates in value by $50. Of the remaining $350, Barry sends $30 to the government in sales taxes, takes home $220 in wages, and retains $100 in his business to add new equipment in the future. From the $220 that Barry takes home, he pays $70 in income taxes.
a. gross domestic product
b. net national product
c. national income
d. personal income
e. disposable personal income
Answer: See explanation
Explanation:
a. gross domestic product
The GDP is $400 which is the money that Barry collects for haircut.
b. net national product
Net National Product:
= GDP – Depriciation
= $400 - $50
= $350
c. national income
The national income is the total income that the residents of the country earns and this will be same as Net National Product which is $350
d. personal income
Personal income:
= National income – Retained earnings
= $350 - $100 - $30
= $220
e. disposable personal income
Disposable personal income:
= Personal income – Personal tax
= $220 - $70
= $150
The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $88.71. The variable cost per unit is $18.36, Poseidon Swim has average fixed costs per year of $22,898. What would be the operating profit or loss associated with the production and sale of 485 swim trunks?
Q4) The price of a luxury car increased from 42.000 euros to 44.000 euros. Then the demand for
this car declined from 100 units to 20 units. Calculate the price elasticity of demand for the car.
Answer:
Price elasticity of demand = 28.67 (Approx.)
Explanation:
Given:
Old price of car = 42.000 euros
New price of car = 44.000 euros
Quantity of car old = 100 units
Quantity of car new = 20 units
Find:
Price elasticity of car
Computation:
Price elasticity of demand = (Percentage change in quantity)/(Percentage change in price)
Price elasticity of demand = [{(Q2-Q1)100}/{(Q1+Q2)/2}] / [{(P2-P1)100}/{(P1+P2)/2}]
Price elasticity of demand = [{(20-100)100}/{(20+100)/2}] / [{(44000-42000)100}/{(44000+42000)/2}]
Price elasticity of demand = [{-8000}/{60}] / [{200000}/{(43000}]
Price elasticity of demand = 133.33 / 4.65
Price elasticity of demand = 28.67 (Approx.)
Sara is about to graduate high school. She has saved money the last few years while working a part-time job. Her parents bought her a car when she turned 16, but her younger brother is about to turn 16 and her parents have promised him the car when he turns 16. This means Sara must buy a car on her own. She has about $6,000 saved, and she received another $1,000 in graduation gifts. She wants to buy a reliable car that will last her throughout college. She has spotted a Honda Accord with low miles, but the asking price is $15,000.
Required:
Which banking service is Sara most interested in?
Answer:
Loan services
Explanation:
Based on the information given in a situation where She has the saved amount of $6,000 as well as the amount of $1,000 she received in graduation gifts which means that she will have $7,000 ($6,000+$1,000), Now if She wants to buy a car that is reliable in which the asking price of the car is the amount of $15,000 which means that Sara still need the amount of $8,000 ($15,000-$7,000) to balance the already saved amount of $7,000. Based on this the banking service that she most interested in is LOAN SERVICE reason been that this banking service will enable her to acquire the loan amount of $8,000 ($15,000-$7,000) in order for her to buy the Honda Accord she spotted.
Therefore the banking service that Sara is most interested in is LOAN SERVICES
Think about a financial decision you made regarding the purchase of a big-ticket item or investment within the last five years. Provide a summary on the discussion thread, answering the following questions:What decision did you make?How prepared were you to make the decision?What was your thought process as you were making the decision?What financial information did you need to make the decision and why?What lessons have you learned that you will apply to future financial decisions?
Aslam wants to create multiple worksheet containing common formatting styles for his team members. Which file extension helps him to save these worksheets?
(Templates),(Workbooks),(Files) help Aslam to create multiple worksheets with common styles.
He needs to save them with the (xlsb),(xltx),(xls),(xlsm).
Answer:
1. Excel file extensions, using XLS or XLSX, help him to save worksheets.
2. (Files) help Aslam to create multiple worksheets with common styles.
3. He needs to save them with the (xls).
Explanation:
The file extension (also called the filename extension) is the ending of a file that identifies the type of file in an operating system, for example, Microsoft Windows. The filename extension starts with a period, followed by one, two, three, or four characters, especially in Microsoft Windows. The filename extension helps the computer to open the correct program whenever one wants to use the file.
Super Clinics offers one service that has the following annual cost and utilization estimates: Variable cost per visit $ 10 Annual direct fixed costs $50,000 Allocation of overhead costs $20,000 Expected utilization 1,000 visits What price per visit must be set if the clinic wants to make an annual profit of $10,000 on the service? A. $ 70 B. $ 80 C. $ 90 D. $100 E. $110
Answer:
C. $ 90
Explanation:
Number of visits = 1,000
Variable cost = $10 × 1,000 = $10,000
Fixed cost = $50,000
Overhead cost = $20,000
Required profit = $10,000
So,Total Cost = Variable Cost+ Fixed Cost+ Overhead Cost
= $10,000 + $50,000 + $20,000
= $80,000
Now, Price per Visit = (Total Cost+ Required Profit) ÷ Number of visits
= ($80,000 + $10,000) ÷ 1,000
= $90,000 ÷ 1,000
= $90
The Laramie Factory produces expensive boots. It has two departments, tanning and finishing departments, that process all the items. During January, the beginning work in process in the tanning department was 40% complete as to conversion and 100% complete as to direct materials. The beginning inventory included $6,000 for materials and $18,000 for conversion costs. Ending work-in-process inventory in the tanning department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was 60% complete as to conversion. Beginning inventories included $7,000 for transferred-in costs and $11,000 for conversion costs. Ending inventory was 30% complete. Additional information about the two departments follows: Tanning Finishing Beginning work-in-process units 5,000 4,000 Units started this period 14,000 Units transferred out this period 16,000 18,000 Ending work-in-process units 2,000 Material costs added $18,000 Conversion costs $32,000 $18,630 Transferred-out cost $50,400 Required: Complete the production cost worksheet below using FIFO costing for the finishing department.
Answer:
The Laramie Factory
Cost Worksheet for the Finishing Department, using FIFO Costing
Finishing Department
Cost assigned to: Materials Conversion Total
Units transferred out $45,360 $18,000 $63,360
Ending work in process 5,040 600 5,640
Total cost accounted for $50,400 $18,600 $69,000
Explanation:
a) Data and Calculations:
Materials Conversion
Tanning Finishing Tanning Finishing
Beginning work in process 100% 100% 40% 60%
Cost of beginning WIP $6,000 $7,000 $18,000 $11,000
Ending work in process 100% 100% 40% 30%
Additional information:
Tanning Finishing
Beginning work-in-process units 5,000 4,000
Units started this period 14,000 16,000
Units transferred out this period 16,000 18,000
Ending work-in-process units 3,000 2,000
Materials Conversion
Tanning Finishing Tanning Finishing
Beginning work in process 100% 100% 40% 60%
Beginning work in process done this period 60% 40%
Ending work in process 100% 100% 40% 30%
Cost of beginning WIP $6,000 $7,000 $18,000 $11,000
Costs added 18,000 $54,255 32,000 18,630
Total costs of production $24,000 $61,255 $50,000 $29,630
Transferred-out cost $50,400
Equivalent units
Materials Conversion
Tanning Finishing Tanning Finishing
Beginning work-in-process units 0 0 3,000 1,600
Units started and completed 16,000 18,000 13,000 16,400
Ending work-in-process units 3,000 2,000 1,200 600
Equivalent units of production 19,000 20,000 17,200 18,600
Cost per equivalent units Materials Conversion
Tanning Finishing Tanning Finishing
Costs added/transferred in $18,000 $50,400 $32,000 $18,630
Equivalent units of production 19,000 20,000 17,200 18,600
Cost per equivalent unit $0.95 $2.52 $1.86 $1.00
Tanning Department
Cost assigned to: Materials Conversion Total
Units transferred out $15,200 $29,760 $44,960
Ending work in process 2,850 2,232 5,082
Total costs $18,050 $31,992 $50,042
Finishing Department
Cost assigned to: Materials Conversion Total
Units transferred out $45,360 $18,000 $63,360
Ending work in process 5,040 600 5,640
Total cost accounted for $50,400 $18,600 $69,000
Explanation:
50,400
18,600
69,000
BRAINILIEST PLEASEEcoFabrics has budgeted overhead costs of $1,039,500. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 495,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $396,000 and $643,500 is allocated to the design cost pool. Additional information related to these pools is as follows.
Wool Cotton Total
Machine hours 110,000 110,000 220,000
Number of setups 1,100 550 1,650
1. Calculate the overhead rate using activity based costing.
2. Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing.
3. Calculate the overhead rate using traditional approach.
4. What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton?
Answer:
1. Cutting $1.80 per machine hour
Design $390 per setup
2. Wool product line $627,000
Cotton Product line $412,500
3. Overhead rate $2.10
4. Wool Product line $519,750
Cotton Product line $519,750
Explanation:
1. Calculation to determine the overhead rate using activity based costing.
Overhead rate using the activity based costing
Cutting = Overhead / Total Machine hours
= $396,000 / 220,000
= $1.80 per machine hour
Design = Overhead / Number of setups
= $643,500 / 1,650
= $390 per setup
2. Calculation to determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing
Overhead allocated to the wool product line and the cotton product line
Wool product line = (110,000 * $1.80) + (1,100 * $390)
Wool product line= $198,000 + $429,000
Wool product line= $627,000
Cotton Product line = (110,000 * $1.80) + (550 * $390)
Cotton Product line= $198,000 + $214,500
Cotton Product line= $412,500
3.Calculation to determine the overhead rate using traditional approach.
Overhead rate using traditional approach
Overhead rate = Total Overhead / Direct labor hours
Overhead rate= $1,039,500 / 495,000
Overhead rate= $2.10
4. Calculation to determine What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach
Overhead allocated using the traditional method
Wool Product line = $1,039,500 / 2
Wool Product line= $519,750
Cotton Product line = $1,039,500 / 2
Cotton Product line= $519,750
Stella, age 38, is single with no dependents. The following information was obtained from her personal records for the 2020 year. Salary $30,000 Interest income 7,000 Alimony received 12,000 Individual retirement account contribution 2,000 Home mortgage interest expense 4,000 Property taxes 2,000 Personal casualty loss in a Federal disaster area (after the $100 floor) 38,000 Stolen investment property 16,000
Unreimbursed employee business loss 3,000
Based on the above information, what is Stella’s net operating loss for 2015?
Answer:
Net operating loss -$10,360
Explanation:
The computation of the net operating loss for the year 2015 is as follows:
Salary $30,000
Interest income 7,000
Alimony received 12,000
Less Individual retirement account contribution 2,000
Adjusted gross income $47,000
Home mortgage interest expense -$4,000
Property taxes -$2,000
Personal casualty loss ($38,000) - ($47,000 × 0.10) -$33,300
Stolen investment property -$16,000
Unreimbursed employee business loss ($3,000) - ($47,000 × 0.02) -$2,060
Net operating loss -$10,360
For a business owner, insurance is a cost just like any other expenses. How does buying business
insurance and offering insurance to employees affect the business's profit and success?
Answer:
It adds an additional expense which means a percentage of profits are depleted. However, it contributes to the wellbeing of the employees showing that they are cherished and have the opportunity to earn benefits which can play a role in motivating them. Due to this it is more likely the workforce would be more comfortable working for the organisation thus leading to a higher chance at success.
The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookbook Travel Book Classics Total Sales $63,000 $179,000 $60,000 $302,000 Cost of goods sold 37,000 70,000 23,000 130,000 Contribution margin 26,000 109,000 37,000 172,000 Order and delivery processing 19,000 26,000 9,000 54,000 Rent (per sq. foot used) 3,000 3,000 3,000 9,000 Allocated corporate costs 10,000 10,000 10,000 30,000 Corporate profit $ (6,000) $70,000 $15,000 $79,000 If the cookbook product line had been discontinued prior to this year, the company would have reported ________. the same amount of corporate profits less corporate profits greater corporate profits resulting profits cannot be determined
Answer:
the company would have reported loss
Last year, Valley Manufacturing reported sales of $800,000, net operating income of $40,000, and average operating assets of $400,000. The company is considering the purchase of equipment that will reduce expenses by $20,000. The equipment will increase average operating assets by $100,000 and be purchased by issuing a notes payable. Sales will remain unchanged. If Valley accepts the project, its return on investment (ROI) after the purchase is projected to
Answer:increase, 10%, 12%
Explanation:
You are analyzing two assets: collectible LEGO sets, and stock of Apple. In the last 5 years, LEGOs have had an annual volatility of 5%, annual return of 6%, and a CAPM beta (the correlation coefficient between the asset and the market risk-premium) of 1.6. Apple has had an annual volatility of 10%, an annual return of 8%, and a CAPM beta of 1.2. Is the following statement true or false?
According to CAPM, Apple has a higher expected return than LEGO.
Answer:
No, Apple has lower rate of return than LEGOs.
Explanation:
Risk free rate is 2% and Market risk is 9%
Expected return can be calculated by :
E(r) = Rf + beta * (Rm - Rf)
E(r) LEGOs = 2 + 1.6 * (9 - 2)
E(r) LEGOs = 13.2%
E(r) Apple = 2 + 1.2 * (9 - 2)
E(r) Apple = 10.4%
One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers, Alpha, Beta, and Charlie, have targeted Milltown's population. To get a donation, they must call Milltown's residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. Beta's manager has decided that the best time to call is 7:00 p.m. because it is exactly halfway between 5:00 p.m. and bedtime. Which of the following is true?
a. Alpha and Charlie will also make calls at 7:00 p.m.
b. Beta's manager did not choose wisely.
c. Alpha and Charlie will divide up the rest of the market, with one choosing to call at 6:00 p.m. and the other at 8:00 p.m.
d. Beta is certain to generate the most donations.
Answer:
b. Beta's manager did not choose wisely.
Explanation:
If you know that you are competing with identical charities, calling later will only result in fewer donations. The calls should start at 5 PM, and probably the three fundraisers will start calling at the same time. The only advantage that they can have depends on reaching the adults first, so the time of the calls is important.
Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Digby to pull the product Daze entirely off the market this year. Assume Digby scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Digby or other companies. Without Digby's product Daze how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands
8,464
4,630
8,635
7,485
4,047
9,614
9,260
Answer:
The total capacity of the market in core products less the Digby's Deft is 10860 thousand units.
Explanation:
In order to completely answer the question, the complete question is found online. This question was missing some table attachments which are attached with it.
From the table, it is first noted that the core products are listed which are as below:
AxeBoltBuzzDeft DimNow as mentioned in the question, deft is to be ignored so the remaining options are:
AxeBoltBuzzDimNow the capacities of these are included which are found from the table and are as follow:
Axe=2050
Bolt=1040
Buzz=1040
Dim=1300
So the total capacity of 1 shift is
Axe+Bolt+Buzz+Dim=2050+1040+1040+1300=5430 units
As there are two shifts running so the total capacity is 5430x2=10860
So the total capacity of market in core products less the Digby's Deft is 10860 thousand units.
Charise is considering how much to charge for her small business’s products. Charise is involved in
Group of answer choices
Answer:
charity
Explanation:
In 1999, the Federal Trade Commission allowed Exxon and Mobil to merge. At the time, Exxon and Mobil were the top two firms in their industry, and their merger created the largest corporation in the world. To allow the merger, Exxon and Mobil agreed to sell 2,431 gas stations. Of these, 1,740 were in the mid-Atlantic states, 360 were in California, 319 were in Texas, and 12 were in Guam.
Why would the U.S. government require Exxon and Mobil to divest themselves of so many gas stations in localized parts of the country to be willing to allow the merger to occur?
a. Because these geographic regions had too many gas stations.
b. To protect consumers from inappropriate price decreases.
c. To ensure competition in these regions and protect consumers from unwarranted price increases.
d. To ensure that Exxon-Mobil would earn fair profits in these geographic areas.
Answer:
1999 Merger of Exxon and Mobil
The reason that made the U.S. government to require Exxon and Mobil to divest themselves of so many gas stations in localized parts of the country to be willing to allow the merger to occur is:
c. To ensure competition in these regions and protect consumers from unwarranted price increases.
Explanation:
The agreement to sell so many gas stations in localized parts of the country was to forestall antitrust lawsuits. It was also made to protect consumers from unwarranted price increases, allowing more competition in the affected areas, where ExxonMobil owed too many gas stations.
The reason why the US would require these two companies to divest themselves is because to ensure competition in these regions and protect consumers from unwarranted price increases.
The answer to this question is option c. Sometimes when two companies merge into one, they could become too powerful. When this is the case, they may end up driving out all their competitors from the market.
At this point, a monopoly may arise from the companies. When a monopoly arises, they would be able to set the price to any amount that they want. This divest option by the government was to ensure the protection of consumers from a situation of price hikes.
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You have just been elected to public office and you have been informed that the government does not have money to pay all of its bills.
You have been told that if you were to cut the marginal tax rate, tax revenue would actually increase. Is this true and if so, what would
be the reason for this?
Choose one
Answer:
Yes. But I actually don't know the reason
please if you get the answer, pleasetext me. sorry for bothering you
A company acquired a copyright that now has a remaining legal life of 30 years. In the hands of the previous owner, the copyright had a 38-year useful life assigned to it. An analysis of market trends and consumer habits indicated that the copyrighted material will generate positive cash flows for approximately 25 years. What is the remaining useful life, if any, over which the company can amortize the copyright for accounting purposes
Answer:
25 years
Explanation:
the useful life that would be used for accounting proposes is the number of years a positive cash flow can be earned from the copyright
Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the expected dividend per share in one year is $0.50. CCN has just paid a dividend, so the next dividend is the $0.50 to be paid one year from now. Calculate the expected price per share 14 years from now. Assume that a dividend has just been paid.
Answer:
P14 = $55.69545045394 rounded off to $55.70
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D1 / (r - g)
Where,
D1 is the dividend expected in Year 1 or next year g is the constant growth rate in dividends r is the discount rate or required rate of return
To calculate the price of the share today, we use the dividend that is expected next year or in Year 1. Thus, to calculate the price of the share 14 years from now, we use use D15. The D15 can be calculated as follows,
D15 = D1 * (1+g)^14
D15 = 0.50 * (1+0.09)^14
D15 = $1.67086351362 rounded off to $1.67
Now using the equation for Price as provided by the DDM model,
P14 = 1.67086351362 / (0.12 - 0.09)
P14 = $55.69545045394 rounded off to $55.70
You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF 14 million. The cash flows from the project would be SF 4.0 million per year for the next five years. The dollar required return is 14 percent per year, and the current exchange rate is SF 1.05. The going rate on Eurodollars is 6 percent per year. It is 4 percent per year on Swiss francs.
a. Convert the projected franc flows into dollar flows and calculate the NPV.
b-1. What is the required return on franc flows?
b-2. What is the NPV of the project in Swiss francs?
b-3. What is the NPV in dollars if you convert the franc NPV to dollars?
Answer:
a-The net present value in dollars is 494939.0687.
b-1-The required return on franc flows is 11.72%.
b-2-The net present value in Francs is 519686.02.
b-3-The NPV in dollars as calculated from NPV in Francs is $494939.07
Explanation:
a
In order to find the solution, firstly the exchange rate for the 5 years is calculated. It is calculated using the formula:
[tex]EER=CER*(1-GRD+GRF)^t[/tex]
Here
EER is the expected exchange rate which is to be calculatedCER is the current exchange rate which is 1.05GRD is the going rate of dollars which is 6% or 0.06GRF is the going rate of Francs which is 4% or 0.04t is the time in years.From this exchange rate, the PV factor is calculated which is than used to find the present value and similarly net present value in total. The solution is provided in the attached Excel Sheet.
The net present value in dollars is 494939.07
b-1
The required rate on the Franc return is given as:
[tex]FRR=(1+DR)(1-GRD+GRF)-1[/tex]
Here
FRR is the franc return rate which is to be calculatedDR is the dollar rate which is 14% or 0.14GRD is the going rate of dollar which is 6% or 0.06GRF is the going rate of Franc which is 4% or 0.04So the value becomes:
[tex]FRR=(1+DR)(1-GRD+GRF)-1\\FRR=(1+0.14)(1-0.06+0.04)-1\\FRR=0.1172\text{ or }11.72\%[/tex]
The required return on franc flows is 11.72%.
b-2
Similar to part a, the solution is found for the return rate of 11.72 and the exchange rate is not required. The values are as indicated in the excel sheet attached.
The net present value in Francs is 519686.02.
b-3
In order to convert the Franc NPV to dollars, the exchange rate of 1.05SF is used which gives
[tex]NPV_{dollars}=\dfrac{NPV_{Francs}}{ER}[/tex]
Here
NPV_dollars is the value of NPV which is to be calculated.NPV_francs is the value of NPV calculated in previous step which is 510686.02.ER is the exchange rate whose value is 1.05So the equation becomes:
[tex]NPV_{dollars}=\dfrac{NPV_{Francs}}{ER}\\NPV_{dollars}=\dfrac{519686.02}{1.05}\\NPV_{dollars}=494939.0666=\$494939.07[/tex]
The NPV in dollars as calculated from NPV in Francs is $494939.07
On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $671,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $579,500 and is expected to last another 19 years with no salvage value. The land is valued at $1,799,500. The company also incurs the following additional costs.
Cost to demolish Building 1 $345,000
Cost of additional land grading 195,000
Cost to construct new building (Building 3), having a useful life of 25 years and a $402,000 salvage value 2,242,000
Cost of new land improvement (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 173,000
Allocate the costs incurred by Mitzu to the appropriate columns and total each column.
Allocation of Purchase Price Appraised Value Percent of Total x Total Cost of Acquisition = Apportioned Cost
Land $1,952,000 x $2,750,000 =
Building 2 $732,000 x $2,750,000 =
Land Improvements 1 $366,000 12% x $2,750,000 = 330,000
Totals $1,952,000 12% x = 330,000
Question Completion:
2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1.
Answer:
Mitzu Co.
1. Allocation of Appraised Value Percent x Total Cost = Apportioned
Purchase Price of Total of Acquisition Cost
Land $1,799,500 59% x $2,750,000 = $1,622,500
Building 2 $671,000 22% x $2,750,000 = 605,000
Land Improve-
ments 1 $579,500 19% x $2,750,000 = 522,500
Totals $3,050,000 100% = $2750,000
2. Journal Entry:
January 1:
Debit Land (demolishing Building 1) $345,000
Debit Land (additional land grading) $195,000
Debit Building 3 $2,242,000
Debit Land Improvements 2 $173,000
Credit Cash $2,955,000
To record the payment of additional costs incurred.
Explanation:
a) Data and Calculations:
Lump-sum amount paid $2,750,000
Additional costs incurred:
Land (demolishing Building 1) $345,000
Land (additional land grading) $195,000
Building 3 $2,242,000, having a useful life of 25 years and a $402,000 salvage value
Land Improvements 2 $173,000 near Building 2 having a 20-year useful life and no salvage value