Answer:
The answer is =5.91%
Explanation:
N(Number of periods) = 7 years
I/Y(Yield to maturity) = 6.6percent
PV(present value or market price) = $962
PMT( coupon payment) = ?
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 7; I/Y = 6.6; PV = -962; FV= $1,000; CPT PMT= $59.05
Therefore, the coupon rate of the bond is of the bond is $59.05/1000
=5.91%
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following.
Fixed Budget
Sales (14,000 units) $3,024,000
Cost of goods sold
Direct materials $336,000
Direct labor 588,000
Production supplies 364,000
Plant manager salary 136,000 1,424,000
Gross profit 1,600,000
Selling expenses
Sales commissions 98,000
Packaging 224,000
Advertising 100,000 422,000
Administrative expenses
Administrative salaries 186,000
Depreciation—office equip. 156,000
Insurance 126,000
Office rent 136,000 604,000
Income from operations $574,000
Complete the following flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units. (Round cost per unit to 2 decimal places.)
a. Using the starting point formula, what is the price elasticity of demand for going from a price of $160 per unit to a price of $140 per unit
Answer:
Price Elasticity of Demand is -4
Explanation:
We can see the graph and easily calculate the Q1 which is 120 units at P1 $140 and Q2 which is 80 units at P2 $160 price.
The starting point formula for calculating price elasticity of demand is given as under:
Price Elasticity of Demand = (ΔQ / Q2) / (ΔP / P2)
Here
ΔQ = Q1 - Q2 = 120 - 80 = 40 units
ΔP = P1 - P2 = 140 - 160 = - $20
By putting value in the above equation, we have:
Price Elasticity of Demand = (40 Units / 80 Units) / (-$20 / $160)
Price Elasticity of Demand = -4
Price Elasticity of Demand is -4
Calculation of the price elasticity of demand:Since in the graph it is mentioned that Q1 which is 120 units at P1 $140 and Q2 which is 80 units at P2 $160 price.
So we know that
Price Elasticity of Demand = (ΔQ / Q2) / (ΔP / P2)
where
ΔQ = Q1 - Q2 = 120 - 80 = 40 units
ΔP = P1 - P2 = 140 - 160 = - $20
Now
Price Elasticity of Demand
= (40 Units / 80 Units) / (-$20 / $160)
= -4
Learn more about demand here: https://brainly.com/question/24557026
During the ____________step in activity-based costing, overhead costs in each activity cost pool are assigned to products.
a. first
b. second
c. third
d. fourth
Answer:
d. fourth
Explanation:
Activity-based costing involves the following steps:
-First step: establish the activities that use resources and assign the costs to them.
-Second step: identify what causes the costs in each activity and this would be the allocation base.
-Third step: find an activity rate.
-Fourth step: assign costs to the products according to the activity usage by the product.
According to this, the answer is that during the fourth step in activity-based costing, overhead costs in each activity cost pool are assigned to products.
ou have a $4 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4. What will the portfolio’s new beta be after these transactions? Show your work
Answer: 1.108
Explanation:
You have $4 million invested.
You would like to divest $100,000 from a stock with beta 0.9 to the tune of $100,000.
The entire portfolio has a beta of 1.1.
This beta is an average of all the betas in the portfolio.
Proportion of Portfolio to be divested = [tex]\frac{100,000}{4,000,000}[/tex]
= 0.025
Beta of stock to be divested expressed as;
= 0.025 * 1.1
= 0.0275
This will be reinvested in a stock with beta 1.4
Beta of stock to be bought expressed as;
= 0.025 * 1.4
= 0.035
New beta
= 1.1 - 0.0275 + 0.035
= 1.108
Department Y started 675 units during the accounting period. They had a beginning balance in goods in process inventory of 225 units and an ending balance of 150 units. _____ units were completed and transferred out.
a. 750
b. 620
c. 650
d. None of above
Answer:
a. 750
Explanation:
units completed and transferred out = beginning work in process + units started - ending work in progress = 225 units + 675 units - 150 units = 750 units
The number of units completed and transferred out refer to the total number of finished units during a certain period and their cost is referred to as cost of goods manufactured.
A machine costs $600000 and is expected to yield an after tax net income of $23000 each year. Managment predicts this machine has a 10 year service life and a $120000 salvage value, and it uses straight line depreciation. Compute this machine's accounting rate of return
Answer:
6.39%
Explanation:
The cost of the machine is $600,000
The net income is $23,000
The management predict a that it has a 10 years service life
The salvage value is $120,000
The first step is to calculate the average investment
Average investment= (Cost of machine+Salvage value)/2
= $600,000+$120,000/2
= $720,000/2
= $360,000
Therefore, the accounting rate of return can be calculated as follows
= Annual net income/Average investment
= $23,000/$360,000
= 0.0639×100
= 6.39%
Hence the accounting rate of return is 6.39%
Portfolio managers pick stocks for their clients’ portfolios based on the investment objective of the portfolio and several other factors. One key consideration is each stock’s contribution to portfolio risk and its statistical relationship with the portfolio’s other stocks. Based on your understanding of portfolio risk, identify whether each statement is true or false.
Answer:
False True True FalseExplanation:
First one is false because diversification reduces risk because it divides the risk amongst different securities. The portfolio risk will therefore be lower than the average of all stocks' standard deviations.
Second one is true because unsystematic risk is risk that will come with the type of stock or security purchased. It is usually referred to as diversifiable risk because using negatively correlated stocks can help diversify this risk.
Third one is True because the portfolio's risk when diversified is indeed likely to be smaller than the average of all stocks' standard deviation.
Fourth one is false because portfolio risk is reduced if stock that are negatively correlated are put into a portfolio because it means that when one stock is not doing so well, the other being negatively correlated, will be doing fine.
Jack and Jill need to save $6100 toward a new car. How long will it take them if they save $200 a month earning interest at 4.7% per year
Answer:
2 years 5 months.
Explanation:
Use the Time Value of Money techniques to find n (period it takes to save for required amount)
Using a financial calculator enter the following data
Fv = $6,100
Pmt = - $ 200 × 12 = - $2,400
P/y = 1
r = 4.7 %
Pv = 0
n = 2.4569
Thus it takes 2 years 5 months to save $6100 toward a new car under the given circumstances.
Journalize the following transactions (assume a 360-day year when calculating interest):
Mar. 1 Received a 90-day, 10% note for $24,000, dated March 1, from Batson Co. on account.
May 30 The note of March 1 was dishonored.
Answer:
Mar. 1 Received a 90-day, 10% note for $24,000, dated March 1, from Batson Co. on account.
Dr Notes receivable 24,000
Cr Accounts receivable 24,000
May 30 The note of March 1 was dishonored.
Dr Accounts receivable 24,600
Cr Notes receivable 24,000
Cr Interest revenue 600
If the note would have been collected (paid by Batson Co.), the journal entry would have been:
May 30, note collected from Batson Co.
Dr Cash 24,600
Cr Notes receivable 24,000
Cr Interest revenue 600
The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n):
Answer:
Opportunity costs
Explanation:
The potential benefits lost by taking a specific action when two or more alternative choices are available is known as opportunity costs.
Opportunity cost has to do with losing other alternatives by chosing to go with one alternative. Hence it is also called foregone alternative. It has to do with making a decision or choice to give up something in order to get something else which may be of more value.
What are the most challenging concepts for you to understand? Have you found any supplemental resources or websites that have helped you to better comprehend the material? T- Accounts
Answer:
finding every form of verbs is difficult. spanishdict is very helpful
Explanation:
www.spanishdict.com
Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Budgeted Activity Cost Activity Base Casting $282,600 Machine hours Assembly 150,360 Direct labor hours Inspecting 20,790 Number of inspections Setup 52,150 Number of setups Materials handling 42,770 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 4,990 4,430 9,420 Direct labor hours 4,300 6,440 10,740 Number of inspections 1,440 450 1,890 Number of setups 280 70 350 Number of loads 720 190 910 Units produced 10,000 5,000 15,000 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.
Answer:
Casting = $ 30 per machine hour
Assembly = $ 14 per labor hour
Inspecting = $ 11 per inspection
Setup = $ 149 per setup
Materials handling = $ 47per load
Explanation:
Garfield Inc. Manufacturers
Activity Budgeted Activity Cost Activity Base
Casting $282,600 Machine hours
Assembly 150,360 Direct labor hours
Inspecting 20,790 Number of inspections
Setup 52,150 Number of setups
Materials handling 42,770 Number of loads
Activity Base Entry Dining Total
Machine hours 4,990 4,430 9,420
Direct labor hours 4,300 6,440 10,740
Number of inspections 1,440 450 1,890
Number of setups 280 70 350
Number of loads 720 190 910
Units produced 10,000 5,000 15,000
Activity Budgeted Activity Cost Activity Rate
Casting $282,600 $282,600/9420= $ 30 per machine hour
Assembly 150,360 150,360 / 10,740 = $ 14 per labor hour
Inspecting 20,790 20,790/1890= $ 11 per inspection
Setup 52,150 52,150 /350= $ 149 per setup
Materials handling 42,770 42,770/910= $ 47per load
The formula for Activity rate = Activity Cost/ Activity Base Cost
Baseball Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $19,100. Budgeted cash receipts total $188,500 and budgeted cash disbursements total $190,200. The desired ending cash balance is $31,100. To attain its desired ending cash balance for January, the company should borro
Answer: $13,700
Explanation:
From the question, we are informed that Baseball Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $19,100. Budgeted cash receipts total $188,500 and budgeted cash disbursements total $190,200. The desired ending cash balance is $31,100.
To attain its desired ending cash balance for January, the company should borrow $13,700.
The solution has been attached.
A stock has a beta of 1.15, the expected return on the market is 10.3 percent, and the risk-free rate is 3.8 percent. What must the expected return on this stock be
Answer:
11.28%
Explanation:
A stock has a beta of 1.15
The expected return on the market is 10.3%
The risk-free rate is 3.8%
Therefore, the expected return on the stock can be calculated as follows
Expected return= Risk-free rate+beta(expected return on the market-risk-free rate)
= 3.8%+1.15(10.3%-3.8%)
= 3.8%+(1.15×6.5)
= 3.8%+7.475
= 11.28%
Hence the expected return on the stock is 11.28%
Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:
Answer:
Paul Hyatt is fully liable for all business debts
Explanation:
Unlimited liability in this scenario, means that Paul Hyatt is fully liable for all business debts. That is because unlimited liability is defined as the full legal responsibility that business owners and partners assume for all business debts, and since Paul Hyatt is a sole proprietor which means that he both owns and runs DeepCleans and there is no legal distinction between him and the business entity, then he is fully liable for debts and profits of DeepClean.
The owner of Kat Motel wants to develop a time standard for the task of cleaning a cat cage. In a preliminary study, she observed one of her workers perform this task six times, with the following results:Observation 1 2 3 4 5 6Time (secs) 109 117 117 128 125 129Required:What is the normal time for this task if the employee worked at a 32 percent slower pace than average and an allowance of 14 percent of job time is used?
Answer:
Standard Time = 206.6 secs
Explanation:
In order to calculate the time for this task if the employee worked at a 32 percent slower pace than average, we need to calculate the normal time first by using the following formula
Normal Time = Average element-time / performance rating
Average element time = Sum of observations / No. of observations
Average element time = 109 +117 +117 +128 +125 +129 / 6
Average element time = 725/6 = 120.83
Performance rating = 100 - 32 = 68%
Normal Time = 120.83 / 0.68 = 177.7 secs
Standard Time = Normal Time / (1-Allowance)
Standard Time = 177.7 / (1-0.14)
Standard Time = 206.6 secs
Identify the number of fims present, the type of product, and the appropriate market model in the following scenario.
In a small town, there are four providers of broadband Internet access: a cable company the phone company, and two satellite companies. The Internet access offered by all four providers is of the same speed. Almost everyone in the city already has broadband, so any potential new company would have to engage in a price war with the existing companies and would be unlikely to cover its costs for years, if ever.
Answer:
No of Firms Present - 4 firms / few firms
Type of Product - Standadized Product
All the companies are offering a standadized product of broadband Internet access of the same speed.
Appropriate Market Model - Oligopoly
An Oligopoly is a concentrated market structure where a few firms dominate the market and offer the same products. Gaining entrance into this type of market is considered hard as the existing firms are already very entrenched and dislodging them will require a huge cash outlay. The Broadband internet market in this town is therefore an Oligopoly.
Take It All Away has a cost of equity of 10.81 percent, a pretax cost of debt of 5.45 percent, and a tax rate of 35 percent. The company's capital structure consists of 77 percent debt on a book value basis, but debt is 37 percent of the company's value on a market value basis. What is the company's WACC
Answer:
8.12%
Explanation:
The computation of the weighted average cost of capital is shown below:
= Cost of equity × weight of equity + pretax cost of debt × (1 - tax rate) × weight of debt
= 10.81% × 0.63 + 5.45% × (1 - 0.35) × 0.37
= 6.81% + 1.31%
= 8.12%
We simply applied the above formula by considerin the capital structure with its weight so that the correct percentage could come
Cooley Company's stock has a beta of 1.40, the risk-free rate is 25%, and the market risk premium is 5.50%. What is the firm's required rate of return
Answer: 12.2%
Explanation:
Given the variables available, the required rate of return can be computed using the Capital Asset Pricing Model with the formula;
Required Return = Risk-free rate + beta ( Market risk premium)
Required return = 4.25% + 1.4 * 5.5%
Required return = 4.25% + 7.7%
Required return = 12.2%
Note; The actual question says the Risk-free rate is 4.25%.
In terms of the global value system, when Kodak shifted manufacturing to China, what position did China then take in the system, relative to the U.S.
Answer: b. Upstream
Explanation:
The Upstream part of a company's value chain is the part closest to the suppliers and the raw materials they supply to the firm while the downstream relates to how the goods are distributed and sold after produced.
As such, the firm's manufacturing plants are closer to its Upstream value chain portion. When Kodak therefore shifted manufacturing to China, it made China more upstream than the United States as China now dealt more with Kodak suppliers and inputs than the US, who were now more downstream as the consumers.
Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 37,600 machine-hours. The estimated variable manufacturing overhead was $4.38 per machine-hour and the estimated total fixed manufacturing overhead was $1,026,856. The predetermined overhead rate for the recently completed year was closest to:
Answer:
Predetermined OH rate = $ 31.69 per machine hour
Explanation:
Predetermined Fixed OH rate = Estimated Fixed Overhead / Estimated machine hours = $1,026,856 / 37,600
Predetermined Fixed OH rate = $27.31 per machine hour
Predetermined OH rate = Predetermined Fixed OH rate + Predetermined variable OH rate = $ 27.31 + $ 4.38
Predetermined OH rate = $ 31.69 per machine hour
The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals in the manufacture of craft papers. Some financial statement values for each company follow .
Item Pelican Paper, Inc. Timberland Forest, Inc.
Total assets $10,900,000 $10,900,000
Total equity (all common) 9900000 5400000
Total debt 1000000 5500000
Annual interest 100000 550000
Total sales 23000000 23000000
EBIT 5750000 5750000
Earnings available for
common stockholders 3394800 3174000
Use them in a ratio analysis that compares the firms' financial leverage and profitability.
The debt ratio for Pelican is %.
(Round to one decimal place.)
The debt ratio for Timberland is %.
(Round to one decimal place.)
The times interest earned ratio for Pelican is.
(Round to one decimal place.)
The times interest earned ratio for Timberland is.
(Round to one decimal place.)
Discuss their financial risk and ability to cover the costs in relation to each other. (Select all the answers that apply.)
A. Pelican has a much higher degree of financial leverage than does Timberland. As a result, Pelican's earnings will be morevolatile, causing the common stock owners to face greater risk.
B. Pelican's earnings will be more volatile. This additional risk is supported by the significantly lower times interest earned ratio of Pelican. Timberland can face a very large reduction in net income and still be able to cover its interest expense.
C. Timberland's earnings will be more volatile. This additional risk is supported by the significantly lower times interest earned ratio of Timberland. Pelican can face a very large reduction in net income and still be able to cover its interest expense.
D. Timberland has a much higher degree of financial leverage than does Pelican. As a result, Timberland's earnings will be morevolatile, causing the common stock owners to face greater risk.
Answer:
Pelican Paper, Inc., and Timberland Forest, Inc.
Financial leverage and profitability ratios:
a) Debt Ratio = Total liabilities divided by Total assets x 100
Pelican = $1,000,000/$10,900,000 x 100
= 9.2%
Timberland = $5,500,000/$10,900,000 x 100
= 50%
Times Interest Earned Ratio = EBIT/Interest Expense
Pelican = $5,750,000/$100,000
= 57.5 times
Timberland = $5,750,000/$550,000
= 10.4 times
A discussion of their financial risk and ability to cover the costs in relation to each other:
C. Timberland's earnings will be more volatile. This additional risk is supported by the significantly lower times interest earned ratio of Timberland. Pelican can face a very large reduction in net income and still be able to cover its interest expense.
D. Timberland has a much higher degree of financial leverage than does Pelican. As a result, Timberland's earnings will be morevolatile, causing the common stock owners to face greater risk.
Explanation:
a) Data
Financial Statement Values:
Item Pelican Paper, Inc. Timberland Forest, Inc.
Total assets $10,900,000 $10,900,000
Total equity (all common) 9,900.000 5,400,000
Total debt 1,000,000 5,500,000
Annual interest 100,000 550,000
Total sales 23,000,000 23,000,000
EBIT 5,750,000 5,750,000
Earnings available for
common stockholders 3,394,800 3,174,000
b) Creditors provide half of the finances and effectively own 50% of Timberland. This contrasts with the debt ratio of Pelican, where creditors can lay claim to only 9.2% of the assets of the firm. Furthermore, Pelican can settle its debts with current earnings 57.5 times, compared to Timberland's interest coverage of 10.4 times.
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $70,000 or $200,000 with equal probabilities of .5. The alternative risk-free investment in T-bills pays 6% per year. a. If you require a risk premium of 8%, how much will you be willing to pay for the portfolio?
Answer:
$118,421
Explanation:
first we must calculate the expected value of the risky portfolio = ($70,000 x 0.5) + ($200,000 x 0.5) = $135,000
since your risk premium is 8% and the risk free rate is 6%m then you should discount the expected value by 8% + 6% = 14% to determine its current market price
= $135,000 / (1 + 14%) = $118,421
ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. Here, ExxonMobil is using which segmentation variable?
Answer:
Behavioral
Explanation:
Behavioral segmentation is a type of segmentation where consumers are divided into segments based on specific behaviours.
the behaviour with which consumers are been segmented with here are the type of credit cards used to fill up their gas tanks
The total payroll of trolley company for the month of october was 960000 of which 180000 represented amounts paid to certain employees in excess of 137000 maximum subject ot social security tax $180,000 of federal income taxes and $18,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. What amount should Trolley record as payroll tax expense?
Answer:
$68,760
Explanation:
The computation of the payroll expense is shown below:
FICA taxes ($960,000 - $180,000) × (7.65% - 1.45%) $48,360
Medicare ($960,000 × 1.45%) $13,920
State unemployment tax {($960,000 - $600,000) × 1%} $3,600
Federal unemployment tax {($960,000 - $600,000) × 0.80%} $2,880
Total $68,760
Indus Corporation pays $100,000 for the trademark rights to a line of soda equipment. After several years, sales for this line of soda equipment are disappointing, and the company estimates the total future cash flows from sales will be only $110,000. The estimated fair value of the trademark is now $60,000. What is the amount of the impairment loss to be recorded
Answer:
impairment loss = $40,000
Explanation:
In accounting, impairment loss refers to the decrease of an asset's carrying value. In order to calculate the impairment loss, you need to subtract the current market value of the asset from its original carrying value.
impairment loss = carrying value - current market value = $100,000 - $60,000 = $40,000
Purple Corporation acquired 75 percent of Socks Corporation’s common stock on January 1, 20X8, for $435,000. At that date, Socks reported common stock outstanding of $300,000 and retained earnings of $200,000, and the fair value of the noncontrolling interest was $145,000. The book values and fair values of Socks's assets and liabilities were equal, except for other intangible assets, which had a fair value $80,000 more than book value and a 10-year remaining life. Purple and Socks reported the following data for 20X8 and 20X9
Socks Corporation Purple Corporation
Year Net Income Comprehensive income Dividends paid Operating income Dividens paid
20X8 $40,000 50,000 15,000 $120,000 $70,000
20X9 60,000 65,000 30,000 140,000 70,000
Required:
Compute consolidated comprehensive income for 20X8 and 20X9.
20X8 20X9
Consolidated comprehensive income
Answer:
20X8 = 162,000
20X9 = $197,000
Explanation:
The calculation of the consolidated comprehensive income for the year 2008 and 2009 is shown below:
Consolidated comprehensive income
Particulars 20X8 20X9
Purple Corporation
Operating Income $120,000 $140,000
Add: Net Income
from Socks Corporation $40,000 $60,000
Less: Amortization of differential
($80,000 ÷ 10 Years) ($8,000) (8,000)
Consolidated net income $152,000 $192,000
Add: Comprehensive income
reported by Socks Corporation $10,000 $5,000
Consolidated
comprehensive income $162,000 $197,000
On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months
Answer:
interest expense per coupon payment (every 6 months) = $153,000
Explanation:
In this case, since the bonds were sold at par, the interest expense and the actual cash payments are the same (no premium or discount would be amortized). To calculate the interest payment we just multiply the bonds' face value x annual interest rate x 1/2 (semiannual coupons) = $3,400,000 x 9% x 1/2 = $153,000
a. Equipment with a book value of $79500 and an original cost of $169000 was sold at a loss of $33000.
b. Paid $106000 cash for a new truck.
c. Sold land costing $310000 for $420000 cash yielding a gainof $11000.
d. Long term investments in stock were sold for $95600 cash yielding a gain of $17000.
Required:
Use the above information to determine this company's cash flows from investing activities.
Answer:
Cash flow from Investing activities refers to cash transactions related to Fixed Assets as well as transactions related to the ownership of other company securities.
Cash-flow from Investing Activities
Sale of equipment (79,500 - 33,000).......................... $46,500
Purchase of New Truck ................................................... ($106,000)
Sale of Land.........................................................................$420,000
Sale of Long-term investments.......................................$95,600
Net cash provided by investing activities ...................$456,100
The marketing staff wants to supply pens with attached USB drives to clients. In the past this client has been victimized by social engineering attacks that led to a loss of sensitive data. The security administrator instructs the marketing staff not to supply the USB pens due to which of the following?
A. The cost associated with distributing a large volume of the USB pens
B. The security costs associated with securing the USB drives over time
C. The security risks associated with combining USB drives and cell phones on a network
D. The risks associated with the large capacity of USB drives and their concealable nature
Answer: C. The security risks associated with combining USB drives and cell phones on a network
D. The risks associated with the large capacity of USB drives and their concealable nature
Explanation:
Based on the scenario that has been discussed in the question, the security administrator will instructs the marketing staff not to supply the USB pens based on the security risks that are associated with combining USB drives and cell phones on a network.
Another reason is due to the risks that are associated with the large capacity of USB drives and their concealable nature.
Since the client has been victimized by social engineering attacks that led to a loss of sensitive data in the past, they'll be extra careful this time around.