Answer:
$177,060.16
Explanation:
The issuance price of the bonds is also known as the current price of bonds and in the bond calculation we refer this as the Present Value or PV.
Using a financial calculator, PV of the Bond is determined as :
FV = $200,000
N = 10 x 2 = 20
P/YR = 2
PMT = ($200,000 x 10%) ÷ 2 = $10,000
I/YR = 12 %
PV = ??
Thus,
The PV is determined as $177,060.16
therefore,
The issuance price of the bonds is $177,060.16
The price of a non-dividend-paying stock is $20, and the price of a 3-month European call option on the stock with a strike price of $22 is $1.50. Assume the risk-free rate is 5% per annum. What is the price of a 3-month European put option with a strike price of $22 on the same stock
Answer:
-$0.23
Explanation:
Using put-call parity equation:
Price of European call option = Current stock price + Price of European put option - Strike price*e^-(risk free rate * time to expiration)
Price of European call option = $20 + $1.50 - $22*e^-(0.05*3/12)
Price of European call option = $20 + $1.50 - $22*0.9875778
Price of European call option = $20 + $1.50 - $21.73
Price of European call option = -$0.23
What are the implications of CIC’s approach to staffing project teams? Is the company using project teams as training grounds for talented fast-trackers, or as dumping grounds for poor performers?
Answer:
CIC's methodology to projects team employment is based on functional structure. It gathers team individuals from several departments. They grant team players very little influence. They are not permitted to review the effectiveness of task team participants however, operational heads are permitted to do so.
Training under this approach is a very positive thing and should be welcomed by the individuals. It gives the the candidates to enhance their skill and become appropriate for the job environment.
The size, sign, and timing of individual cash flows are illustrated by the ____________________, as the basis for engineering economic analysis. Write the word(s) that fill(s) in the blank below.
Answer:
Cash Flow Diagram
Explanation:
The correct statement is that the size, sign and timing of an individual cash flow are illustrated by the cash flow diagrams, as the basis of engineering economic analysis.
Cash flow diagrams are prepared by taking the data from the cash flow statements that are prepared at the end of each accounting period.
Cash FlowCash Flow of a business refers to as a cash that is either a part of income and revenue or expense for the business during a given accounting period.The cash flow diagrams are prepared by taking into account the data obtained from the cash flow statements and can be illustrated into the size of the cash flows and their timings during the financial period.
Hence, the correct statement is that cash flow diagrams are used to illustrate the size, signs and timings of the individual cash flow statements.
Learn more about cash flow here:
https://brainly.com/question/5339442
A perfectly elastic demand curve implies that the firm Select one: a. The demand curve for a purely competitive firm is downsloping, but the demand curve for a purely competitive industry is perfectly elastic. b. The demand curves are perfectly elastic for both a purely competitive firm and a purely competitive industry. c. The demand curves are downsloping for both a purely competitive firm and a purely competitive industry. d. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
Answer: d. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
Explanation:
In a purely competitive market, all the firms are selling the same product so there is a lot of competition. The market sets the price in this industry at the point where quantity demanded equals quantity supplied and the demand curve for the whole industry is downward sloping.
When it comes to the demand curve for the individual firm however, it is elastic because price is not set by the firm. This perfectly elastic demand shows that if the firm tries to sell at a price that is different from the market, quantity demanded from that firm would change by infinity because people would prefer the market price.
The financial statements of an Enterprise fund are prepared using the :_______
Answer:
Accrual Method
Explanation:
I’m not sure if this is what this question is referring to or not, but the Enterprise fund uses the accrual method.
Lynne is responsible for training in a South Brunswick School District. Her job requirements are not associated with any particular management specialty. Lynne is working in what functional area? A) Operations B) Finance C) Production D) Marketing E) Administration
Answer:
E) Administration
Explanation:
An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.
Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).
Hence, while an employer may be the owner of a business firm or company, an employee is a subordinate employed to provide unwavering services to the employer while also, being professional and diligent at all times.
In this scenario, Lynne is saddled with the responsibility of training in a South Brunswick School District.
However, herr job requirements are not associated with any particular management specialty. Thus, Lynne is working in administration.
Administration is typically associated with the smooth tasks of a running a business
A portfolio consists of $15,000 in Stock M and $22,900 invested in Stock N. The expected return on these stocks is 8.80 percent and 12.40 percent, respectively. What is the expected return on the portfolio
Answer:
the expected return on the portfolio is 10.98%
Explanation:
The computation of the expected return is shown below;
Return on Stock M = $15,000 × 8.8% = $1,320
Return on Stock N = $22,900 × 12.40% = $2,840
Now
Portfolio return is
= ($1,320 + $2,840 ) ÷ ($37,900)
= 10.98%
The $37,900 comes from
= $15,000 + $22,900
= $37,900
hence, the expected return on the portfolio is 10.98%
During November, TaskMaster purchased 208,000 pounds of direct materials at a total cost of $436,800. The total factory wages for November were $54,000, 90% of which were for direct labor. TaskMaster manufactured 24,000 units of product during November using 182,000 pounds of direct materials and 5,000 direct labor hours. TaskMaster computes direct material variances at the time of purchase. What is the direct materials price variance for November
Answer:
See below
Explanation:
Given the above information,
Direct material price variance is computed as;
= (Actual price - Standard price) × Actual quantity
Actual price = $436,800/208,000
Standard price = $436,800/182,000
Actual quantity = 208,000
Direct material price variance
=[ ($436,800 / 208,000) - ($436,800 / 182,000 ] × 208,000
= ($2.1 - $2.4) × 208,000
= $62,400 unfavourable
Jammer Company uses a weighted average perpetual inventory system that reports the following August 2 purchase 19 units at $16 per unit August 18 purchase 21 units at $15 per unit August 29 sale 38 units August 31 purchase 24 units at $19 per unit what was the per-unit value of ending inventory on August 31
Answer:
$23.19
Explanation:
The the weighted average perpetual inventory system recalculates a new unit cost whenever a new purchase is made. This unit cost is used to value cost of sales and inventory balance.
Unit Cost = Total Cost of units available for sale ÷ Total units available for sale
August 18
Unit Cost = [(19 units x $16) + (21 units x $15)] ÷ 40 units
= $15.475
August 31
Unit Cost = [(2 units x $15.475 ) + (24 units x $19)] ÷ 21 units
= $23.1880 or $23.19
therefore,
The per-unit value of ending inventory on August 31 is $23.19.
ou were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is Quigley's WACC
Answer:
the weighted average cost of capital is 9.25%
Explanation:
The computation of the weighted average cost of capital is shown below;
= Cost of debt × weight of debt × (1 - tax rate) + cost of equity × weight of equity + cost of preferred stock × weight of preferred stock
= 35% × 6.50% × (1 - 0.40) + 11.25% × 55% + 6% × 10%
= 1.365% + 7.288% + 0.6%
= 9.25%
Hence, the weighted average cost of capital is 9.25%
The same would be considered and relevant
Clabber Company has bonds outstanding with a par value of $119,000 and a carrying value of $108,700. If the company calls these bonds at a price of $104,500, the gain or loss on retirement is:
Answer:
Gain on retirement $4,200.00
Explanation:
The computation of the gain or loss on retirement is given below;
Carrying value of Bond $108,700.00
Less; Price at which bond is called $104,500.00
Gain on retirement $4,200.00
Simply subtracted the called price of the bond from the carrying value of the bond so that the gain on retirement is recorded
Calculating Standard Quantities for Actual Production Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 30 minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 940 oil changes. Required: 1. Calculate the number of quarts of oil that should have been used (SQ) for 940 oil changes. fill in the blank 1 quarts 2. Calculate the hours of direct labor that should have been used (SH) for 940 oil changes. fill in the blank 2 direct labor hours 3. What if there had been 930 oil changes in June
Answer:
Guillermo's Oil and Lube Company
1. The number of quarts of oil that should have been used (Standard Quantity) for 940 changes is:
= 6,204 quarts.
2. The hours of direct labor that should have been used (Standard Hours) for 940 oil changes is:
= 470 hours.
Explanation:
a) Data and Calculations:
Time taken for a typical oil change = 30 minutes or 0.5 hours (30/60)
Standard quarts of oil for a typical oil change = 6.6 quarts
Total oil changes in June = 940
1. The number of quarts of oil that should have been used (Standard Quantity) for 940 changes = 6,204 (940 * 6.6) quarts
2. The hours of direct labor that should have been used (Standard Hours) for 940 oil changes = 470 (0.5 * 940) hours
On September 30, 2021, Bricker Enterprises purchased a machine for $203,000. The estimated service life is 10 years with a $19,000 residual value. Bricker records partial-year depreciation based on the number of months in service. Depreciation for 2021, using the double-declining-balance method, would be: (Do not round intermediate calculations.) Multiple Choice
Answer:
Bricker Enterprises
Depreciation for 2021, using the double-declining-balance method, would be:
= $9,200.
Explanation:
a) Data and Calculations:
September 30, 2021:
Cost of purchased machine = $203,000
Estimated residual value = 19,000
Depreciable amount = $184,000
Estimated service life = 10 years
Depreciation rate using the double-declining-balance method = 20% (100/10 * 2)
Depreciation expense for the first year based on the double-declining-balance method:
= $36,800 ($184,000 * 20%)
Prorated depreciation expense for 2021 = $9,200 (($184,000 * 20%) * 3/12))
Liu, the owner of Mortgage Source, a sole proprietorship, wants to obtain additional business capital. For this enterprise, the opportunity is most likely limited to
Answer:
borrowing funds.
Explanation:
From the question we are informed about Liu, the owner of Mortgage Source, a sole proprietorship, wants to obtain additional business capital. In this case, For this enterprise, the opportunity is most likely limited to borrowing funds. Sole proprietorship who is regarded as as a sole tradership or individual is that that the enterprise is owned and run with a person, sourcing of fund could be through fund borrowing. Money that is been one received from another party having agreement that the money will be repaid is a borrowed funds Most borrowed funds are been paid back with interest,i.e borrower will agrees to pays a certain percentage of the borrowed principal amount back to the lender which will serve as as compensation for borrowing the fund.
*A product cost is Group of answer choices expensed in the period in which the product is manufactured shown with current liabilities on the balance sheet shown with operating expenses on the income statement expensed in the period the product is sold
Answer:
expensed in the period in which the product is manufactured.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods. Manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.
Generally, a product cost or the cost associated with the manufacturing of a particular product is expensed within the period in which it was manufactured by the firm.
Following is information from Best Industries for Year 1. Total Year 1 revenue $1,977,040 Projected revenue growth rate, for next five years 3% Terminal revenue growth rate, after year 5 1% Net operating profit margin (NPM) 6.4% Net operating asset turnover (NOAT) 2.35 Projected Year 3 total revenue would be Select one:
Answer: $2,097,442.2
Explanation:
Projected Year 3 total revenue would be calculated thus:
Since the revenue will increase at the rate of 3% for every year and year 3, there'll be 2 years from year 1, this will then be expressed as:
= Total Year 1 revenue × (1 + 3%)²
= $1,977,040 × (1 + 0.03)²
= $1,977,040 × 1.03²
= $1,977,040 × 1.0609
= $2,097,442.2
A(n) _________ refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it.
Answer:
A touch point refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it.
Explanation:
A touch point can be described as any way through which a customer can interact with a company, whether it is through a website, a person-to-person interaction, an app, or any other kind of communication.
A touch point simply refers to a point of contact or connection, particularly between a company and its clients or customers.
Therefore, the correct answer to fill in the gap is a touch point.
What is external factor
Answer:
External factors are those influences, circumstances or situations that a business cannot control that affect the business decisions that the business owner and stakeholders make. The are a large number of external factors can have a direct impact on the ability of your business to achieve its strategic objectives.
The Tingey Company has 500 obsolete microcomputers that are carried in inventory at a total cost of $720,000. If these microcomputers are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. As an alternative, the microcomputers can be sold in their present condition for $50,000. The sunk cost in this situation is: g
Answer: $720000
Explanation:
Sunk cos simply refers to a coat which a company has already incurred and can't be recovered. They're not relevant to future decisions if the company has they already happened in the past.
In this case, the sink cost will be $720,000 which is the total cost of the obsolete microcomputers, Other coat such as $100,000, $160,000, and $50,000 are relevant cost.
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $305,000, variable expenses of $153,600, and traceable fixed expenses of $70,800. The Alpha Division has sales of $615,000, variable expenses of $337,800, and traceable fixed expenses of $132,700. The total amount of common fixed expenses not traceable to the individual divisions is $134,200. What is the company's net operating income
Answer:
$2,000
Explanation:
net operating income = total contribution - common fixed expenses
. True / False. The hedonic property value method can be used to estimate lost non-use value associated with oil pollution at remote, uninhabited locations. Explain. (3 points)
Answer:
False.
Explanation:
The hedonic property value method determines the extent that environmental or ecosystem factors affect the price of a home. This implies that the method cannot be used to estimate lost, non-use value associated with oil pollution at remote, uninhabited locations, as stated in the question. Since the hedonic property value method is used to estimate the housing prices that reflect the value of local environmental attributes, it is not useful for uninhabited, remote locations and properties.
Blue Lite manufactures decorative weather vanes that have a standard materials cost of two pounds of raw materials at $2 per pound. During November 500 pounds of raw materials costing $4 per pound were used in making 450 weather vanes. The materials price and quantity variance are: Group of answer choices
Answer: See explanation
Explanation:
The material price variance will be calculated as:
= (Standard price - Actual price) × Actual quantity of material used
= ($2 - $4) × 500
= -$2 × 500
= $-1000
= $1000 Unfavourable
The material quantity variance will be:
= Standard quantity - Actual quantity) × Standard price
=[(450 × 2) -500] × $2.00
= (900 - 500) × $2.00
= 400 × $2.00
= $800 Favorable
On January 1, 2020, Blue Inc. issued stock options for 290,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 6% in four years. Blue initially estimates that it is not probable the goal will be achieved, but in 2022, after three years, Blue estimates that it is probable that divisional revenue will increase by 6% by the end of 2023. Ignoring taxes, what is the increase in expense in 2022
Answer: $1,305,000
Explanation:
Blue initially estimated that the goal would not be achieved so had not catered for the expense in the case that it would.
In 2022, when Blue estimates that the target will be reached, they will have to account for the expenses for the three years for the option because the options value is to be amortized over the period in question which is 4 years.
Options value = 290,000 * 6
= $1,740,000
Over 4 years:
= 1,740,000 / 4
= $435,000
Over the three years:
= 435,000 * 3
= $1,305,000
Expenses will increase by 1,305,000 for the year.
HairNet, a cosmetology trade publication, utilizes people and resources from other organizations as needed. Business relationships are temporary and flexible. HairNet is a networked organization made up of replaceable firms that join the network and leave it as needed. This unique organization is an example of:
Answer:
a virtual corporation
Explanation:
Virtual corporations are made up of companies that come together as a network to share skills, cost, and access to their various markets.
It is a permanent or temporary network or individuals or groups that have electronic linkage from effective communication.
In the given instance it is a virtual corporation where HairNet is a networked organization made up of replaceable firms that join the network and leave it as needed.
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 479,232 (b) 399,360 Bal. 79,872 Work in Process Bal. 13,640 (c) 742,000 288,000 89,000 (b) 399,360 Bal. 48,000 Finished Goods Bal. 42,000 (d) 656,000 (c) 742,000 Bal. 128,000 Cost of Goods Sold (d) 656,000 The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending $ 23,040 Finished Goods, ending 61,440 Cost of Goods Sold 314,880 Overhead applied $ 399,360 For example, of the $48,000 ending balance in work in process, $23,040 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Answer:
Part 1:
a) We see that the actual Mfg OH is being debited with the amount incurred.
b) Work in Process Inventory Debit (b) 399,360
Mfg OH ( applied) Credit (b) 399,360
c) CGS debit (c) 742,000
WIP Credit (c) 742,000
d) CGS debit (d) 656,000
Finished Goods credit (d) 656,000
Part 2:
The journal entry is
Cost of Goods Sold $79872 Debit
Factory Overhead $ 79 872 Credit
Part 3:
Journal Entry
Work in Process, $ 24960 debit
Finished Goods, 66560 debit
Cost of Goods Sold (11648) credit
Manufacturing Overheads $ 79872 credit
Explanation:
The given accounts are
Manufacturing OverheadDebit Credit
(a) 479,232 (b) 399,360
Bal. 79,872
Work in ProcessDebit Credit
Bal. 13,640 (c) 742,000
288,000
89,000
(b) 399,360
Bal. 48,000
Finished GoodsDebit Credit
Bal. 42,000 (d) 656,000
(c) 742,000
Bal. 128,000
Cost of Goods Sold(d) 656,000
Part 1:
a) Actual manufacturing overhead
We see that the actual Mfg OH is being debited with the amount incurred.
b) Manufacturing overhead applied to Work in Process Inventory
Work in Process Inventory Debit (b) 399,360
Mfg OH ( applied) Credit (b) 399,360
c) Cost of Goods Manufactured
CGS debit (c) 742,000
WIP Credit (c) 742,000
d) Cost of Goods Sold
CGS debit (d) 656,000
Finished Goods credit (d) 656,000
Part 2:
The actual overhead is $ 479232 and applied overhead is $399,360 which is less than actual overhead.
The journal entry is
Cost of Goods Sold $79872 Debit
Factory Overhead $ 79 872 Credit
To transfer under applied overhead to cost of goods sold.
Part 3:
We find the differences between actual and applied overheads and then pass the journal entry.
Work in Process, ending $ 23,040
Finished Goods, ending 61,440
Cost of Goods Sold 314,880
Overhead applied $ 399,360
Work in Process, ending $ 48,000
Finished Goods, ending 128,000
Cost of Goods Sold 303,232
Actual Overhead $ 479,232
Work in Process, ending =$ 48,000 -$ 23,040 =$ 24960
Finished Goods, ending= 128,000-61,440 = 66560
Cost of Goods Sold = 303,232 -314,880 = (11648)
Journal Entry
Work in Process, $ 24960 debit
Finished Goods, 66560 debit
Cost of Goods Sold (11648) credit
Manufacturing Overheads $ 79872 credit
. Costs that the manager has the power to determine or at least strongly influence are called: Question 5 options: A. Uncontrollable costs. B. Controllable costs. C. Joint costs. D. Direct costs. E. Indirect costs.
Answer:
B. Controllable costs
Explanation:
There are some costs that are expended by a company during the cost of carrying out their business operations. These costs such as labor costs and marketing budgets are incurred because the company has full authority over them. They are costs that can be altered in short term based on a business decision.
In other words, controllable costs are those costs or expenses that can be influenced by those who are saddled with the responsibilities of incurring them.
Retro Rides, Incorporated, operates two divisions: (1) a Management Division that owns and manages classic automobile rentals in Miami, Florida and (2) a Repair Division that restores classic automobiles in Clearwater, Florida. The Repair Division works on classic motorcycles, as well as other classic automobiles. The Repair Division has an estimated variable cost of $60.50 per labor-hour and has a backlog of work for automobile restoration. They charge $80.00 per hour for labor, which is standard for this type of work. The Management Division complained that it could hire its own repair workers for $62.00 per hour, including leasing an adequate work area. What is the minimum transfer price per hour that the Repair Division should obtain for its services, assuming it is operating at capacity?
A) $28.50.
B) $30.00.
C) $39.00.
D) $48.00.
Answer:
D) $48
Explanation:
The minimum transfer price for the Repair division will be the variable cost which is standard for the same type of work. In the given scenario the price is $80 which is the maximum transfer price while $48 will be the minimum transfer price for Repair division.
Sue purchased a stock for 45 a share, held it for one year received a 2.34 divided and sold the stock for 46.45. what nominal rate of return did she earn?
Answer:
8.4
Explanation:
nominal return - price return + dividend yield
price return = 46.45 /45 - 1 = 3.2%
dividend yield = 2.34 / 45 = 5.2%
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $64 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes:
Wildwoood Corp Underlying Stock price: $64.00
Expiration Strike Call Put
June 59.00 9.90 3.40
June 64.00 5.20 4.40
June 69.00 2.70 8.90
Suppose you establish a bullish spread with the puts. In June the stock's price turns out to be $58. Ignoring commissions, the net profit on your position is__________.a. $100.b. $185.c. $628.d. $528.
Answer:
a. $100.
Explanation:
The wildwood Corp will consider the spot price to find the difference in call and put. The maximum price for profit is either 0 or $58 - $64
Profit = [ $58 - $64 - $69 - $64 ] * 100
Bronks Co. had pension plan assets and PBO of $160,000 on 1/1/19. Service cost for the year was $40,000. It contributed $30,000 during the year and paid benefits of $20,000. The interest rate was 10%. The actual return was $15,000. Compute pension expense, PBO and PA at the end of the year.
Answer:
Pension expense:
= Service cost + Interest on PBO - actual return
= 40,000 + (10% * 160,000) - 15,000
= $41,000
PBO at end of year:
= Beginning PBO+ Service cost + Interest on PBO - Benefits paid
= 160,000 + 40,000 + (10% * 160,000) - 20,000
= $196,000
Pension Assets at end of year:
= Beginning PBO + Return + Contribution - Benefits
= 160,000 + 15,000 + 30,000 - 20,000
= $185,000