Osato Chemicals Inc. currently has $645,000 in total assets and sales of $1,820,000. Half of Osato’s total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 18% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is
. (Note: Round your answer to the nearest whole number.)
Osato was using its fixed assets at only 95% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets? (Note: Round your answer to the nearest whole number.)
$1,820,000
$1,915,789
$1,724,210
$2,298,947
When you consider that Osato’s fixed assets were being underused, its target fixed assets to sales ratio should be
%. (Note: Round your answer to two decimal places.)
When you consider that Osato’s fixed assets were being underused, how much fixed assets must Osato raise to support its expected sales for next year? (Note: Round your answer to the nearest whole number.)
$46,828
$35,121
$39,023
$37,072

Answers

Answer 1

The amount of fixed assets that Osato must raise to support its expected sales for next year is $38,873. Rounded to the nearest whole number, the answer is $39,023.

The amount of additional assets required to support Osato Chemicals' expected sales growth can be calculated using the AFN (additional funds needed) equation:

[tex]AFN = (A*/S0)ΔS - (L*/S0)ΔS - MS1[/tex]

where A* is the target total assets-to-sales ratio, S0 is current sales, ΔS is the expected increase in sales, L* is the target spontaneous liabilities-to-sales ratio, and MS1 is the additional external financing required.

Here's how to solve for each component:

A* = 0.5/1 = 0.5

S0 = $1,820,000

ΔS = 18%

L* is not given, so assume it stays the same as the current spontaneous liabilities-to-sales ratio, which can be calculated as:

current current liabilities-to-sales ratio = current current liabilities / current sales

= (total assets - net fixed assets) / current sales

= ($645,000 - 0.5*$645,000) / $1,820,000

= 0.2313

so L* = 0.2313

MS1 can be calculated as:

MS1 = (A* - L*)S1 - ΔS

= (0.5 - 0.2313)($1,820,000) - 0.18($1,820,000)

= $167,400

Therefore, the amount of additional assets required to support Osato Chemicals' expected sales growth is $167,400. Rounded to the nearest whole number, the answer is $167,000.

To calculate the sales that Osato could have supported last year with its current level of fixed assets, we can use the formula:

maximum sales = current fixed assets / (fixed assets-to-sales ratio x capacity utilization)

where fixed assets-to-sales ratio is 2/1 (since half of total assets come from net fixed assets), and capacity utilization is 95%.

Plugging in the numbers, we get:

maximum sales = $322,500 / (2/1 x 95%)

= $1,915,7

Therefore, the maximum sales that Osato could have supported last year with its current level of fixed assets is $1,915,789. Rounded to the nearest whole number, the answer is $1,915,000.

When considering that Osato's fixed assets were underused, its target fixed assets-to-sales ratio should be higher than the current 2/1 ratio. Assuming that Osato wants to increase capacity utilization to 100%, we can calculate the target fixed assets-to-sales ratio as:

target fixed assets-to-sales ratio = current fixed assets / (current sales x capacity utilization)

= $322,500 / ($1,820,000 x 95%)

= 0.1891 or 18.91%

Therefore, Osato's target fixed assets-to-sales ratio, considering underused fixed assets, should be 18.91%.

To calculate how much fixed assets Osato must raise to support its expected sales for next year, we can use the formula:

additional fixed assets = target fixed assets-to-sales ratio x next year's sales - current fixed assets

= 0.1891 x (1 + 0.18) x $1,820,000 - $322,500

= $361,373 - $322,500

= $38,873

For more such questions on sales, click on:

https://brainly.com/question/30109497

#SPJ11


Related Questions

Solvay Corporation bonds have a 20 year maturity, a '12% semiannual coupon, and a par value of $1,000, the current market rate is 9% based on semiannual compounding. What is the o bond price? a. $ 1,271081 b. $ 1,273.86 c. $ 1,268.40 d. $ 1,241,82 e. 1,276.02 f. f. $ 1,244.33

Answers

The bond price for the Solvay Corporation bonds is approximately $1,273.86. So, the correct answer is option b. $1,273.86.

How to determine o bond price?

The bond price of the content-loaded Solvay Corporation bonds with a 20-year maturity, a 12% semiannual coupon, and a par value of $1,000. The current market rate is 9% based on semiannual compounding.

To calculate the bond price, we need to find the present value of the bond's cash flows, which include the semiannual coupon payments and the par value at maturity. Here are the steps to do so:

Determine the number of coupon payments: 20 years  ˣ2 (semiannual) = 40 payments
Calculate the semiannual coupon payment: 12%  ˣ $1,000 / 2 = $60
Calculate the semiannual market rate: 9% / 2 = 4.5%
Calculate the present value of the semiannual coupon payments: $60  ˣ (1 - (1 + 0.045)⁻ ⁴⁰) / 0.045 ≈ $832.71
Calculate the present value of the par value: $1,000 / (1 + 0.045) ⁴⁰ ≈ $441.15
Add the present values from steps 4 and 5 to find the bond price: $832.71 + $441.15 ≈ $1,273.86

The bond price for the Solvay Corporation bonds is approximately $1,273.86. So, the correct answer is option b. $1,273.86.

Learn more about bond price

brainly.com/question/15518377

#SPJ11

which of the following is most likely to help the journal publication process mitigate reproducibility problems? moving away from a review process that favors the publication of positive results. shortening the methods sections in published articles. having prospective authors recommend their own peer reviewers. increasing the speed of the peer review process.

Answers

Moving away from a review process that favors the publication of positive results is most likely to help the journal publication process mitigate reproducibility problems.

This will ensure that all results, both positive and negative, are thoroughly evaluated and published, reducing the potential for biased reporting.

Shortening the methods sections in published articles, having prospective authors recommend their own peer reviewers, and increasing the speed of the peer review process may help expedite the publication process, but they do not directly address reproducibility problems.

To know more about mitigate here

https://brainly.com/question/24058385

#SPJ11

if you were to create a new stock index for a particular market, how would you design it? how is the nikkei weighted, what does that mean?

Answers

To create a new stock index for a particular market, you would first need to define the scope of the market, such as a specific industry or geographical region.

Next, select a group of representative stocks that best capture the performance of the market. Then, decide on a weighting method to assign importance to each stock in the index.

The Nikkei, for example, is a price-weighted index, which means that stocks with higher prices have a greater impact on the index's value. To calculate the index, you would sum up the stock prices and divide by a divisor that adjusts for stock splits and other factors.

Finally, regularly review and update the stock selection and weightings to ensure the index accurately reflects the market's performance.

To know more about stock index refer here:

https://brainly.com/question/14999413#

#SPJ11

joan, a high school student has begun a part-time job at a retail store. she expects to work at least 20 hours each week. what is the most likely outcome of her work experience?

Answers

The most likely outcome of Joan's work experience is that she will earn income, gain work experience, develop new skills, and build relationships.

The most likely outcome of Joan's part-time job at a retail store would be:

Earning income: Joan will earn income from her job, which can be used to support her personal expenses or save for future goals.

Gaining work experience: By working at a retail store, Joan will gain valuable work experience that she can use to build her resume and improve her chances of finding future employment.

Developing new skills: Joan may develop new skills such as customer service, sales, and time management, which can be applied to other areas of her life.

Building relationships: Joan will have the opportunity to build relationships with her coworkers and customers, which can be helpful in networking and developing social connections.

These outcomes can be beneficial to her personal and professional development and can have a positive impact on her future prospects.

Learn more about work experience at

brainly.com/question/31421319

#SPJ4

The market for loanable funds is in equilibrium. All else equal, the federal deficit is growing. Describe how this will affect the market for loanable funds, the equilibrium interest rate, and the equ

Answers

A growing federal deficit leads to an increase in the demand for loanable funds, which results in a higher equilibrium interest rate and a larger equilibrium quantity of loanable funds in the market.

When the federal deficit is growing, it can affect the market for loanable funds, the equilibrium interest rate, and the equilibrium quantity of loanable funds in the following ways:

1. Market for loanable funds: As the federal deficit grows, the government will need to borrow more funds to finance the deficit. This increased borrowing will lead to a higher demand for loanable funds, causing the demand curve for loanable funds to shift to the right.

2. Equilibrium interest rate: With the increased demand for loanable funds, the equilibrium interest rate will also rise. This is because the higher demand for funds leads to a higher "price" for borrowing funds, which is the interest rate.

3. Equilibrium quantity of loanable funds: As the equilibrium interest rate increases due to the increased demand for loanable funds, the equilibrium quantity of loanable funds will also increase. This is because, at a higher interest rate, lenders will be more willing to supply a larger quantity of funds.

To know more about the federal deficit:

https://brainly.com/question/13852240

#SPJ11

a primary job of banks is to take in deposits from people who want to save and use these deposits to make loans to people who want to borrow. group of answer choices true false

Answers

The statement "a primary job of banks is to take in deposits from people who want to save and use these deposits to make loans to people who want to borrow" is generally true.

Banks are financial institutions that provide a range of services to individuals, businesses, and other organizations. One of the key functions of banks is to accept deposits from individuals and other entities, such as businesses and government agencies. These deposits can take the form of savings accounts, checking accounts, certificates of deposit (CDs), and other types of accounts.Once banks have accepted these deposits, they can use the funds to make loans to individuals and businesses who want to borrow money. Banks make money by charging interest on these loans, which is typically higher than the interest they pay on deposits. This difference between the interest earned on loans and the interest paid on deposits is known as the net interest margin and is a key source of revenue for banks.

Learn more about deposits here:https://brainly.com/question/22697743?

#SPJ11

brenda and joe have 20% cash to put down toward the purchase of their home, and they have great credit. what might be their best option for getting a traditional mortgage loan?

Answers

Their best option may be to apply for a conventional mortgage.

A conventional mortgage is a type of home loan that is not insured or guaranteed by the federal government. By putting down 20%, they can avoid paying Private Mortgage Insurance (PMI), which is typically required for loans with a down payment of less than 20%. This will lower their monthly payment and potentially save them thousands of dollars over the life of the loan.

To find the best loan option, Brenda and Joe should shop around and compare interest rates and loan terms from different lenders, such as banks, credit unions, and online lenders. Additionally, they may consider obtaining a pre-approval letter from a lender, which can give them a better idea of their budget and strengthen their negotiating position with home sellers.

In summary, Brenda and Joe's best option for getting a traditional mortgage loan is to apply for a conventional mortgage with their 20% down payment and leverage their excellent credit to secure favorable interest rates and loan terms. Comparing multiple lenders and obtaining pre-approval can help them find the best deal for their situation.

Know more about Conventional mortgage here:

https://brainly.com/question/30263783

#SPJ11

which phrase best describes utility? utility is a measure of consumer satisfaction. the amount of money a consumer is willing to pay to gain a given amount of consumption. the contribution of a particular good or service to gdp. a measure of how useful a good or service is in acquiring income or wealth for a consumer. how do economists measure utility? economists do not measure utility. it is a hypothetical measure used for modeling behavior. use surveys to rate the usefulness of goods and services after they are purchased. measure utility in a laboratory by analyzing the responses of volunteers. use data such as prices and purchase information to measure utility.

Answers

The phrase "utility is a measure of consumer satisfaction" best describes the concept of utility in economics.

What's utility in economic

It refers to the level of satisfaction or happiness that a consumer derives from consuming a particular good or service.

Although utility cannot be directly measured, economists use various methods to approximate it, such as surveys or analyzing purchase behavior. Utility is important because it helps consumers make choices about what to buy, and it also helps firms determine what goods or services to produce.

Additionally, the amount of utility that consumers derive from a good or service can affect its price, as consumers are willing to pay more for things that provide greater utility.

Overall, utility is a crucial concept in understanding consumer behavior and the functioning of markets.

Learn more about utility at

https://brainly.com/question/14597445

#SPJ11

Keller Cosmetics maintains an operating profit margin of 9.00% and a sales-to-assets ratio of 3.90. It has assets of $700.000 and equity of $500,000. Assume that interest payments are $50,000 and the tax rate is 30%. What is the return on assets? (Enter your answer as a percent rounded to 2 decimal places.) Return on assets b. What is the return on equity? (Enter your answer as a percent rounded to 2 decimal places.) Return on equity 98

Answers

The return on equity is 1.79%.

How to calculate the return on assets?

To calculate the return on assets, we can use the formula:

Return on Assets = Operating Profit Margin x Sales-to-Assets Ratio

Substituting the given values, we get:

Return on Assets = 9.00% x 3.90 = 35.10%

Therefore, the return on assets is 35.10%.

To calculate the return on equity, we can use the formula:

Return on Equity = (Net Income / Equity) x 100

We need to find the net income first. To do this, we can use the following formula:

Operating Profit = Sales x Operating Profit Margin

Substituting the given values, we get:

Operating Profit = $700,000 x 9.00% = $63,000

Now, we can calculate the net income as follows:

Net Income = Operating Profit - Interest Expense - Taxes

Net Income = $63,000 - $50,000 - (30% x $13,500)

Net Income = $63,000 - $50,000 - $4,050

Net Income = $8,950

Substituting the values in the formula for return on equity, we get:

Return on Equity = ($8,950 / $500,000) x 100 = 1.79%

Therefore, the return on equity is 1.79%.

Learn more about return

brainly.com/question/30974189

#SPJ11

a value proposition is the core idea on which the brand rests that will be relevant to target audiences over time. select one: true false

Answers

True. A value proposition is the core idea on which the brand rests, and it is designed to be relevant to target audiences over time.

A value proposition is a statement that highlights the unique selling points and benefits of a product or service. It clearly explains why a customer should choose your brand over competitors, and it addresses the specific needs, wants, and preferences of your target audience.

The value proposition should be the foundation of your brand strategy, as it communicates the value your brand offers to customers.

To maintain relevance with target audiences over time, it's important to regularly review and update your value proposition. This can involve analyzing customer feedback, monitoring market trends, and staying informed about competitors' offerings.

By doing so, you can ensure that your value proposition continues to address the evolving needs and preferences of your target audience, thereby strengthening your brand's position in the market.

In summary, a value proposition is a crucial element in defining your brand and establishing a strong connection with your target audience. By continually refining your value proposition to remain relevant, you can foster customer loyalty and differentiate your brand from competitors in the long run.

To know more about value proposition refer here

brainly.com/question/3130122#

#SPJ11

All of the following statements regarding profit sharing plans are TRUE, EXCEPT:
A. An employer is required to have profits to make a profit sharing contribution.
B. Profit sharing plans are required to have recurring and substantial contributions.
C. A definite allocation formula is required in a profit sharing plan.
D. A definite contribution formula is not required in a profit sharing plan.
E. Nonprofit organizations may adopt a profit sharing plan.

Answers

All of the statements regarding profit sharing plans are true except for statement B. earnings sharing plans aren't required to have routine and substantial contributions, and the quantity of the contribution is commonly discretionary and determined by using the employer.

An organisation isn't required to have income to make a income sharing contribution, however the contribution ought to be based on a precise allocation method. This system can be based totally on factors inclusive of employee compensation or period of service.

A specific contribution formula isn't required in a earnings sharing plan, because the contribution quantity is typically determined through the employer's discretion. Non-profit companies might also undertake a income sharing plan, but the plan must observe sure tax rules.

Learn more about profit sharing plans:-

https://brainly.com/question/26764420

#SPJ4

All of the statements regarding profit sharing plans are true except for statement B. earnings sharing plans aren't required to have routine and substantial contributions,

the quantity of the contribution is commonly discretionary and determined by using the employer. An organisation isn't required to have income to make a income sharing contribution, however the contribution ought to be based on a precise allocation method. This system can be based totally on factors inclusive of employee compensation or period of service. A specific contribution formula isn't required in a earnings sharing plan, because the contribution quantity is typically determined through the employer's discretion. -profit companies might also undertake a income sharing plan, but the plan must observe sure tax rules.

Learn more about profit here:

brainly.com/question/26764420

#SPJ11

Consider a firm whose only asset is a plot of vacant land, and whose only liability is debt of $15 million due in one year. If left vacant, the land will be worth $10 million in one year. Alternatively, the firm can develop the land at an upfront cost of $20 million. The developed land will be worth $35 million in one year. Suppose the risk-free interest rate is 10%, assume all cash flows are risk-free, and assume there are no taxes.
a. If the firm chooses not to develop the land, what is the value of the firm’s equity today? What is the value of the debt today?
b. What is the NPV of developing the land?
c. Suppose the firm raises $20 million from equity holders to develop the land. If the firm develops the land, what is the value of the firm’s equity today? What is the value of the firm’s debt today?
d. Given your answer to part (c), would equity holders be willing to provide the $20 million needed to develop the land?

Answers

a. If the firm chooses not to develop the land, the value of the firm's equity today would be $10 million, which is the value of the land in one year minus the debt of $15 million due in one year. The value of the debt today would still be $15 million.

b. The NPV of developing the land would be the present value of the future cash flows, which is ($35 million - $20 million) / (1 + 0.10) = $13.64 million. This indicates that developing the land would increase the firm's value by $13.64 million.

c. If the firm develops the land and raises $20 million from equity holders, the value of the firm's equity today would be $28.64 million, which is the value of the developed land in one year minus the debt of $15 million due in one year and the upfront cost of $20 million. The value of the firm's debt today would still be $15 million.

d. Given the answer to part (c), equity holders may be willing to provide the $20 million needed to develop the land, as the value of the firm's equity would increase by $18.64 million ($28.64 million - $10 million).

However, they may also consider the risk of investing $20 million upfront with the possibility of the land not being developed or not being worth as much as anticipated in one year.

To know more about equity refer here:

https://brainly.com/question/31518525#

#SPJ11

the purpose of a job analysis is to establish all that a job entails—duties and responsibilities, knowledge, skills and abilities of the employee, and what other element?

Answers

The motive of a job analysis is to set up all that a job includes, including duties and responsibilities, information, skills, and abilties of the employee, as well as the job's required qualifications, operating conditions, and necessary physical and intellectual needs.

Every other important element protected in a job analysis is the process's context, which refers to the broader organizational and environmental elements which could have an effect on the job's overall performance and necessities.

This could consist of the enterprise's shape, culture, and strategic goals, in addition to outside elements such as industry developments and regulatory necessities. A comprehensive process evaluation can help organizations to broaden effective recruitment, choice, and performance management strategies.

Learn more about job analysis:-

https://brainly.com/question/28591731

#SPJ4

The motive of a job analysis is to set up all that a job includes, including duties and responsibilities, information, skills, and abilties of the employee, as well as the job's required qualifications,

operating conditions, and necessary physical and intellectual needs. Every other important element protected in a job analysis is the process's context, which refers to the broader organizational and environmental elements which could have an effect on the job's overall performance and necessities. This could consist of the enterprise's shape, culture, and strategic goals, in addition to outside elements such as industry developments and regulatory necessities. A comprehensive process evaluation can help organizations to broaden effective recruitment, choice, and performance management strategies.

Learn more about job analysis here:-

brainly.com/question/28591731

#SPJ11

Issuing new debt instead of new equity in a closely held firm more likely causes owner-managers to
work harder than they would if equity had been issued.
accept more unprofitable projects.
shirk their duties as they have less capital at risk.
enjoy more leisure time than they would with an equity issue.
consume more perquisites because the cost is passed on to the debtholders.

Answers

Issuing new debt instead of new equity in a closely held firm more likely causes owner-managers to work harder than they would if equity had been issued. Therefore, the correct option is option 1.

This is because, with new debt, owner-managers are obligated to repay the principal and interest to debtholders, which can create more pressure to succeed and generate sufficient profits. In contrast, if new equity had been issued, the owner-managers would have shared the company's ownership and profits with other shareholders, which could reduce the incentive to work as hard, since their individual stakes would be diluted.

Consequently, issuing new debt can motivate owner-managers to avoid accepting unprofitable projects, as they need to maintain a healthy cash flow to repay their debt obligations. Hence, the correct answer is option 1: work harder than they would if equity had been issued.

Learn more about Equity:

https://brainly.com/question/28663012

#SPJ11

the process design team at a furniture manufacturer has broken an assembly process into eight basic steps, each with a required time and predecessor (if appropriate) as shown in the table. there are 7.5 productive hours (or 27,000 seconds) available in a day, and the manufacturer wishes to produce 500 units. use this information to answer the following question: what is the theoretical minimum number of workstations needed if the line is balanced using the appropriate takt time?

Answers

The theoretical minimum number of workstations needed to meet their production target of 500 units per day.

How to determine the theoretical minimum number of workstations needed

The theoretical minimum number of workstations needed can be determined using the concept of takt time.

Takt time is the available production time divided by the customer demand.

In this case, the furniture manufacturer has 27,000 seconds available in a day and wishes to produce 500 units.

First, calculate the takt time:

Takt time = Available production time / Customer demand

Takt time = 27,000 seconds / 500 units

Takt time = 54 seconds/unit

The process design team has broken the assembly process into eight basic steps, each with a required time and predecessor.

To balance the line, the total time for tasks at each workstation should be as close to the takt time as possible without exceeding it.

The minimum number of workstations can be determined by dividing the sum of task times by the takt time and rounding up to the nearest whole number.

Theoretical minimum number of workstations = (Total task times) / Takt time

Assuming the sum of the task times provided in the table is T seconds, the calculation is:

Theoretical minimum number of workstations = T / 54 seconds/unit

Learn more about assembly-line balancing at

https://brainly.com/question/24108753

#SPJ11

Elaine Benes buys a fast-food restaurant for $500,000. She sells the business 6 years later for $1.275,000. What is Elaine's internal rate of retur? O a. 14.79% b.20.53% O C. 16 88% O d. 18.36%

Answers

The internal rate of return for Elaine's investment is C) 16.88%.

The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of an investment equal to zero. To calculate the IRR, we need to determine the cash inflows and outflows of Elaine's investment.

The initial investment was $500,000, which is a cash outflow. The cash inflow from selling the business 6 years later was $1,275,000. To calculate the cash inflows in between, we need to assume a yearly cash flow. Let's assume that Elaine received a net cash flow of $60,000 each year, after expenses and taxes.

Using these numbers, we can calculate the NPV of the investment at different discount rates. By using the IRR function in Excel or a financial calculator, we can find the rate that makes the NPV equal to zero. The IRR for Elaine's investment is 16.88%.

Therefore, Elaine's internal rate of return on the fast-food restaurant investment is 16.88%.

For more questions like Investment click the link below:

https://brainly.com/question/15105766

#SPJ11

how did the british east india company come to be in possession of opium to sell to the chinese?

Answers

In the 18th and early 19th centuries, the British East India Company (EIC) established a monopoly on the production of opium in India and began exporting it to China. The EIC obtained the opium from farmers in the Indian state of Bengal, where the crop was grown legally and taxed by the British colonial government.

The demand for opium in China had been steadily increasing, but the Qing dynasty government had prohibited its importation in 1729 due to concerns about its addictive properties and the social problems it was causing. However, despite the ban, opium smuggling from various sources, including the British East India Company, continued to flourish in China.

The British East India Company saw the opium trade as a lucrative opportunity to offset their trade deficit with China, as Chinese demand for opium was high and they were willing to pay high prices for it. The EIC used its vast resources, including its powerful navy and its control of the opium market in India, to flood the Chinese market with opium, which ultimately led to the Opium Wars between China and Britain

To know more about opium here

https://brainly.com/question/27248118

#SPJ4

The British East India Company came to possess opium to sell to the Chinese through the cultivation and trade of the crop in British-controlled India. Opium was initially imported to India from Persia and was used for medicinal purposes.

However, in the late 18th century, the British began to cultivate opium in India to meet the demand for the drug in China, where it was used recreationally. The East India Company established a monopoly on opium production and trade, and by the early 19th century, they were the dominant suppliers of opium to China. This trade was controversial and eventually led to the Opium Wars between Britain and China.
The British East India Company came to be in possession of opium to sell to the Chinese through the following steps:
1. Cultivation: The British East India Company cultivated opium in India, particularly in the Bengal region, taking advantage of the favorable climate and soil conditions.
2. Monopoly: The company established a monopoly on opium production and trade in India, allowing them to control the entire supply chain from cultivation to distribution.
3. Trade imbalance: The British were importing large amounts of tea, silk, and porcelain from China, creating a trade imbalance. They sought a profitable export to balance trade, and opium emerged as a valuable commodity for this purpose.
4. Smuggling: Due to Chinese laws prohibiting opium imports, the British East India Company initially relied on smuggling and intermediaries to sell opium in China.
5. Expansion of trade: Over time, the British increased their opium exports to China, further exacerbating the trade imbalance and leading to tensions between the two nations, eventually culminating in the Opium Wars.
By following these steps, the British East India Company was able to obtain and sell opium to the Chinese market, leading to significant profits and increased power for the company in the region.

For more such questions  on sell

https://brainly.com/question/28186715

#SPJ11

a portfolio has a jensen's alpha of .93%, a beta of 1.45, and a capm expected return of 8.8%. the risk-free rate is 2.5%. what is the actual return of the portfolio? multiple choice 5.53% 6.17% 7.83% 9.73% 21.9%

Answers

The actual return of the portfolio is 12.565%.

None of the provided multiple-choice options match the calculated actual return, we can assume that there is an error in the question or the answer choices.

What method is used to calculate actual return of the portfolio?

The actual return of a portfolio can be calculated using the CAPM formula:

Actual Return = Risk-Free Rate + Beta * (Expected Market Return - Risk-Free Rate) + Jensen's Alpha

Plugging in the given values, we get:

Actual Return = 2.5% + 1.45 * (8.8% - 2.5%) + 0.93%

Actual Return = 2.5% + 1.45 * 6.3% + 0.93%

Actual Return = 2.5% + 9.135% + 0.93%

Actual Return = 12.565%

Therefore, the actual return of the portfolio is 12.565%.

Since none of the provided multiple-choice options match the calculated actual return, we can assume that there is an error in the question or the answer choices.

Learn more about actual return.

brainly.com/question/14317492

#SPJ11

imagine shopping an order for a customer and notice the item requested is not on the shelf. what actions would you take to ensure you fulfill this order?

Answers

If the product is not available, inform the consumer and provide information about a suitable substitute.

What are the alternatives?

Substitute goods are commodities that consumers have requested to be used in place of another good. According to economic theory, two items are close replacements if three requirements are met: The performance qualities of the products are the same or similar. Products are used for the same or similar reasons. According to the Cambridge Dictionary, substitute goods are "products that can meet some of the same consumer demands as each other." "Butter and margarine are two classic substitute goods." If a person does not have a car, they can commute by bus or bicycle.

To know about substitute goods visit:

https://brainly.com/question/5622363

#SPJ1

if guatemala is facing a major economic recession, with high unemployment, a trade deficit with declining exports. a currency that is losing its value and is seeking credit to stabilize its currency in a major economic disruption then it would turn to which to assist it in stabilizing its economy and declining currency? the international monetary fund the world trade organization the world bank

Answers

If Guatemala is facing a major economic recession, with high unemployment, a trade deficit with declining exports, a currency that is losing its value, and is seeking credit to stabilize its currency in a major economic disruption, then it would turn to the International Monetary Fund (IMF) to assist it in stabilizing its economy and declining currency.

What is an International Monetary Fund (IMF)??

If Guatemala is facing a major economic recession with high unemployment, a trade deficit with declining exports, and a currency that is losing its value, it would most likely turn to the International Monetary Fund (IMF) to assist in stabilizing its economy and declining currency. The IMF provides financial assistance to member countries facing economic difficulties and helps them implement policies to restore economic stability.

The IMF is known for providing financial support and policy advice to countries facing economic crises and helps maintain global financial stability. The World Bank primarily focuses on providing loans for development projects, while the World Trade Organization (WTO) deals with international trade policies and disputes. While all three organizations could potentially assist Guatemala, the IMF is best suited to address the specific issues outlined in the question.

To know more about International Monetary Fund (IMF)

visit:

https://brainly.com/question/30052429

#SPJ11

Increased cooperation among agribusiness interests in the 1920's had this effect on farm labor.
a. Lower wages. b. Higher wages. c. Improved working conditions. d. Increased educational oppotunities

Answers

Increased cooperation among agribusiness interests in the 1920s had the effect of lowering wages for farm labor.

Large agricultural corporations started to merge during this time, taking control of the market and increasing their ability to influence crop and other agricultural product prices, because farm workers had little negotiating power, they were able to maintain low wages for them.

A further factor in the decline in the demand for farm labor and subsequent pressure on wages was the use of new equipment and technology. In general, increased agribusiness cooperation in the 1920s had a detrimental impact on farm labor wages, making it more challenging for workers to make a living wage.

Learn more about agricultural corporations at:

brainly.com/question/2552307

#SPJ4

A portfolio consists of the following 2 stocks: Stock Amount Invested Beta A $1 million 1.6 B 0.2 million 0.6 Market risk premium is 5% and the risk free rate is 6%. What is the required return on the portfolio? a. 12.3% b. 13.2% c. 14.1% d. 11.7%e. 13.7%

Answers

The required return on the portfolio is 12.65%. None of the answer choices provided match exactly, but the closest one is option (a) 12.3%.


Required Return = Risk-free rate + Beta * Market Risk Premium
First, let's calculate the weighted average beta of the portfolio:
Weighted Beta = (Amount Invested in Stock A / Total Portfolio Value) * Beta of Stock A + (Amount Invested in Stock B / Total Portfolio Value) * Beta of Stock B

Weighted Beta = (1,000,000 / 1,200,000) * 1.6 + (200,000 / 1,200,000) * 0.6
Weighted Beta = 1.33
Required Return = 6% + 1.33 * 5%
Required Return = 12.65%
None of the answer choices provided match exactly, but the closest one is option (a) 12.3%.

For more such questions on portfolio

https://brainly.com/question/30300038

#SPJ11

It is becoming increasingly obvious that each person will need to take greater responsibility for their own retirement planning. Traditional pensions are becoming increasingly rare while 401K's more common. In some cases workers may only have access to IRA's.
An option to many workers is creation of an Individual Retirement Account (IRA)
Research the two types of IRA Accounts (Traditional and Roth)
Characterize both types of accounts by listing and discussing the relative advantages and disadvantages of each.
Discuss who can open each type of account including income limitations and withdrawal options and limitations
Also discuss where and how an account may be opened

Answers

1) Research the two types of IRA Accounts (Traditional and Roth)

When certain criteria are met, a Roth IRA, a kind of individual retirement account (IRA), permits eligible withdrawals on a tax-free basis, whereas a Traditional IRA permits people to invest pre-tax income in ways that allow for tax-deferred growth.

2) Characterize both types of accounts by listing and discussing the relative advantages and disadvantages of each.

The timing of the tax benefits is the main distinction between Roth and conventional IRAs. Unlike Roth IRAs, which enable you to pay taxes on contributions now and receive tax-free withdrawals later, standard IRAs allow you to deduct contributions now and pay taxes on withdrawals later.

Traditional IRAs operate similarly to customised pensions: in exchange for significant tax savings, they limit and impose conditions on access to money. Roth IRAs operate more like standard investing accounts but offer tax advantages instead of limits and breaks.

3) Discuss who can open each type of account including income limitations and withdrawal options and limitations

Traditional IRAs: Anyone, regardless of income, is eligible to make a contribution.

Roth IRAs: High earners are prohibited from creating and making direct contributions to a Roth IRA due to income restrictions. The following are the 2021 Roth IRA income restrictions: filing jointly with a spouse or being a qualified widow(er): If your modified adjusted gross income is $208,000 or above, you are not eligible.

With a Roth IRA, you may make after-tax contributions, see your money grow tax-free, and typically take withdrawals after age 5912. With a Traditional IRA, you can make contributions with either pre- or post-tax money. Your money grows tax-deferred, and after age 5912, withdrawals are subject to current income tax.

4) Also discuss where and how an account may be opened

3 steps to get started:

1. Decide whether you want a traditional IRA or Roth IRA

2. Research and select an IRA provider

3. Select your investments.

Learn more about Individual Retirement Account (IRA):

https://brainly.com/question/29974947

#SPJ4

true or false: hospitals that solicit contributions and provide some charitable care can be considered pure charities.

Answers

True.Hospitals that solicit contributions and provide some charitable care can be considered pure charities. A pure charity is an organization that exists for the purpose of providing benefits to the public, rather than for the benefit of its members or owners.

In the case of hospitals, providing charitable care to those who cannot afford it is one way that they benefit the public.

To be considered a pure charity, an organization must meet certain requirements, including providing a public benefit, operating exclusively for charitable purposes, and being organized as a non-profit entity. Hospitals that provide a significant amount of charitable care, typically defined as care provided at little or no cost to patients who cannot afford it, may be eligible for tax-exempt status as a charitable organization under Section 501(c)(3) of the Internal Revenue Code.

However, hospitals that provide charitable care may also face challenges in maintaining their tax-exempt status if they are perceived as providing insufficient charity care or if they engage in certain activities that are not considered charitable, such as excessive executive compensation or lobbying activities.

Learn more about charitable here:

https://brainly.com/question/31309998

#SPJ11

Don Pedro took out a loan for $12,000 at 15% compounded annually, payable in 3 installments equal to the
end of each year. Calculate the amount of such payments. Prepare an amortization table and determine the
total amount of interest paid. (please use the formula method)

Answers

The present value of the loan is $4,819.48. This means that Don Pedro received $4,819.48 today and will make three equal payments of $1,800 each to pay off the loan.

To solve this problem using the formula method, we can use the formula for the present value of an annuity due:

P[tex]V = PMT * (1 - (1 + r/n)^{(-n*t)) / (r/n)[/tex]

where PV is the present value of the loan, PMT is the equal payment amount for each installment, r is the annual interest rate (0.15), n is the number of compounding periods per year (1), and t is the total number of years for the loan (3).

First, we can calculate the total interest paid on the loan using the simple interest formula:

I = P * r * t

where P is the principal amount of the loan ($12,000), r is the annual interest rate (0.15), and t is the total number of years for the loan (3).

I = $12,000 * 0.15 * 3 = $5,400

So the total interest paid on the loan is $5,400. Since the loan is payable in three installments equal to the total amount of interest paid, each installment will be $1,800.

Next, we can use the formula for the present value of an annuity due to calculate the present value of the loan:

[tex]PV = $1,800 * (1 - (1 + 0.15/1)^{(-1*3)) / (0.15/1) = $4,819.48[/tex]

Therefore, the present value of the loan is $4,819.48. This means that Don Pedro received $4,819.48 today and will make three equal payments of $1,800 each to pay off the loan.

For more such questions on loan visit:

https://brainly.com/question/20688650

#SPJ11

bussiness
A professional resume is easy to read, organised, captivating and all on one page. Discuss FOUR (4) effective features or aspects to include in creating a professional resume with relevant examples

Answers

A professional resume is easy to read, organised, captivating, and all on one page. There are four effective features or aspects to include in creating a professional resume with relevant examples.

1. Clear Formatting and Structure: Use consistent formatting, such as headings, bullet points, and bold text to highlight important information. For example, use a standard font like Arial or Times New Roman in size 11 or 12, and ensure that your sections (e.g., education, experience, skills) are easy to identify and have a logical flow.

2. Tailored Content: Customize your resume for each job application by focusing on the skills, qualifications, and experiences that are most relevant to the position.

For instance, if you're applying for a marketing position, emphasize your accomplishments in previous marketing roles, such as increasing brand awareness or implementing successful advertising campaigns.

3. Quantifiable Achievements: Use numbers, percentages, or other quantifiable metrics to demonstrate your accomplishments and show the impact you've made in your previous roles.

For example, instead of saying "managed a sales team," say "led a sales team of 10 people and increased revenue by 25% in one year."

4. Concise and Precise Language: Be concise in your descriptions and avoid using unnecessary jargon or buzzwords. Make every word count by using clear and precise language to describe your experiences and achievements.

For example, instead of saying "I was responsible for managing the company's social media presence," say "developed and executed social media strategy, resulting in a 20% increase in engagement."

By incorporating these four features into your professional resume, you will create an organized, captivating, and easy-to-read document that effectively showcases your skills and accomplishments, all on one page.

To know more about Quantifiable Achievements refer here

https://brainly.com/question/2317820#

#SPJ11

the accountant recorded the adjusting entry for the depreciation of its long-lived assets with a debit to depreciation expense and a credit to accumulated depreciation. as a result of this entry, assets and stockholders' equity will be

Answers

As a result of the adjusting entry for depreciation of long-lived assets with a debit to depreciation expense and a credit to accumulated depreciation, both assets and stockholders' equity will decrease.

The debit to depreciation expense reduces the net income, and therefore retained earnings, which is a component of stockholders' equity. At the same time, the credit to accumulated depreciation reduces the value of the long-lived assets on the balance sheet, which is also a component of assets.

The net effect is a decrease in both assets and stockholders' equity. This adjusting entry recognizes the fact that the value of long-lived assets declines over time as they are used in the operations of the business, which is a cost of doing business that needs to be accounted for properly in the financial statements.

You can learn more about adjusting entry  at

https://brainly.com/question/13933471

#SPJ11

equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. under the straight-line method, monthly depreciation will be:

Answers

The equipment costs $36,000 and is expected to be useful for 5 years with no salvage value. To calculate the monthly depreciation using the straight-line method, follow these steps:

1. Determine the total depreciation: Equipment cost - Salvage value = $36,000 - $0 = $36,000
2. Calculate the annual depreciation: Total depreciation / Useful life in years = $36,000 / 5 = $7,200 per year
3. Calculate the monthly depreciation: Annual depreciation / 12 months = $7,200 / 12 = $600 per month

Under the straight-line method, the monthly depreciation for the equipment will be $600.

to know more about the salvage value:

https://brainly.com/question/28940728

#SPJ11

which of the following statements is true of globalization? question 12 options: it gives unprecedented political power to consumers. it slows down the process of deindustrialization. it eliminates income inequality between workers and the global elite. it increases the number of workers in western economies. it exploits poor people in developing countries.

Answers

The statement that is true of globalization is that it gives unprecedented political power to consumers.

Globalization has made it easier for consumers to access goods and services from around the world, and they now have more choices than ever before. This has allowed consumers to have more bargaining power and influence over the goods and services they buy, giving them the ability to demand better quality and lower prices.

Globalization has also made it easier for consumers to transfer money and access goods and services from around the world, which has given them more control over their spending and greater economic power. Additionally, globalization has allowed consumers to access goods and services from smaller businesses, which has given them more choice and increased competition.

Know more about globalization here

https://brainly.com/question/15283031#

#SPJ11

a. for major tom's space flights, the profit-maximizing level of output is seats and the profit-maximizing price is $ million. b. in the market for major tom's space flights, the allocatively efficient level of output is seats and the allocatively efficient price is $ million. c. if the market for space flight seats were to go from the monopoly solution to the allocatively efficient solution, the change in consumer surplus would be $ million. d. using the graph, identify the area of deadweight loss that results from major tom having a monopoly in commercial space flight.

Answers

A. Calculate profit-maximizing level of output and price is as follows:
For Major Tom's Space Flights, the profit-maximizing level of output [7] seats and the profit-maximizing price is million. (Profit is maximized at the point MR = MC). answer highlighted with Blue coloured circles.

What is profit?

Profit is the amount of money made by a business after all expenses, costs, and taxes have been subtracted from its total revenue. It is a measure of a business’s financial performance and is the main goal of any business.

B. Calculate allocative efficient level of output and price is as follows:
In the market for Major Tom's Space Flights, the allocative efficient level of output is 12 seats and the allocative efficient price is $10 million. (Optimal production occurs at the point P = MC)
Answers are highlighted with Orange coloured circles.

C. Calculate Change in consum sumer surplus is as follows:
If the market for space flight seats were to go from the monopoly solution to the allocative efficient solution, the change in consumer surplus is $95 million.
Change in consumer surplus = CS (P-C)-CS (Monopoly)
[(34-10) (0.5×12)]-[(34-20)x(7×0.5)]
=144-49
$95
Thus, Change in consumer surplus is $95.

D. is attached.

To learn more about profit
https://brainly.com/question/24553900
#SPJ1

Complete Question:
Major Tom’s Space Flights offers commercial space flights to people willing to pay for a seat on his rocket ship. Major Tom currently has a monopoly on commercial space travel. The demand for seats on his rocket ship and the cost information are in the table and graph below.

a. For Major Tom's Space Flights, the profit-maximizing level of output is ______ seats and the profit-maximizing price is $ ______ million.

b. In the market for Major Tom's Space Flights, the allocatively efficient level of output is ______ seats and the allocatively efficient price is $ ______ million.

c. If the market for space flight seats were to go from the monopoly solution to the allocatively efficient solution, the change in consumer surplus is $ ______ million.

d. Using the graph, identify the area of deadweight loss that results from Major Tom having a monopoly in commercial space flight.

Other Questions
This pattern follows the rule add 2. What is another feature of this pattern? (4 points) An image of a pattern. Term one has one dot, term two has three dots, term three has five dots, term four has seven dots. a The terms appear even, odd, even, odd. b All the terms are even. c Two terms are even, then two terms are odd. d All the terms are odd. why is language so important for the learning of culture? group of answer choices all answers are correct. language conveys meaning. language allows us to talk about the past, present, and future. language allows us to communicate abstract ideas. without language it would be difficult for children to learn. steroid hormones enter the target cell nucleus and act directly on the ______, changing target cell physiology by either activating or inhibiting transcription. What specific civil rights issues regarding AI and/or big data usage will you exploreBrianliest will be given:))) scientist established the environmental defense fund and used its contributions for a series of legal actions across the country to halt_______ In which two Gospels (out of Matthew, Mark, Luke, and John) did Peter go to the tomb?This is regarding the Catholic bible by the term takeover constraint, we mean group of answer choices constraints placed by the firm on raiders who want to take over the firm. legal constraints that limit the ability of the raiders to acquire a firm. provisions in the charter of a company that prevents it from attempting a takeover of other companies. the risk of being acquired by a hostile raider. if the after-tax cost of debt is 10%, what is the pretax cost for a firm in the 21% tax bracket? enter your answer as a percent rounded to two decimal places. Roget's Search Engine Limited plans to pay dividends of $2.00, $3.50, and then a liquidating dividend of $20.25 over the next three years. If investors expect a 10 percent return on their investment, what is the value of the company today? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Current value______$ FIN Corp. has determined that its before-tax cost of debt is 9.0%. Its cost of preferred stock is 12.0%. Its cost of internal equity is 15.0%, and its cost of external equity is 19.0%. Currently, the firm's capital structure has $400 million of debt, $ 100 million of preferred stock, and $500 million of common equity. The firm's marginal tax rate is 40%. The managers have determined that the firm should have $80 million available from retained earnings for investment purposes next period. What is the firm's marginal cost of capital (WACC) at a total investment level of $200 million? (Break Even - retained earnings/% of equity) a.11.29% b.14.20% c.13.58% d.10.64% e.12.86% mountains also have an unmatched power to drive human evolution. starting tens of thousands of years ago, people moved to high altitudes, and there they experienced natural selection that has reworked their biology. in tibet, for example, people have broader arteries and capillaries. in the andes, they can dissolve more oxygen into their blood. what do these different traits of people who live in high altitudes illustrate? adaptive evolution, due to the environmental pressures of living in the high altitudes stabilizing selection, resulting in the reduced variation of the population leading to decline neutral variations, resulting in genetic changes that have little or no impact on the population acclimatization, due to individuals adjusting to the environment Evaluate the following.Write an exponential function of the form y = ab^x that has the given points(1,6 3/4), (2, 1-4) Hurry please What is the mean for the following set of data?2,5, 7, 8, 11, 11, 1210118 Carnes Cosmetics Co.'s stock price is $35, and it recently paid a $1.75 dividend. This dividend is expected to grow by 28% for the next 3 years, then grow forever at a constant rate, g; and rs = 16%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places. % In the month of January, Sasha had a balance of $3200 on her credit card. She made a payment of $300 and left the remaining balance to be paid later. How much interest will she pay this month if her APR is 18. 75%? Round to the nearest cent. Question 3 options:$35. 10$543. 75$46. 19$4. 50 A crafts worker is knitting a circular rug that has a diameter of 86 inches. He would like to put trim around the outer edge of the rug. If 1 inch = 2.54 centimeters, how many centimeters of trim would he need? Use = 3.14 and round to the nearest centimeter. 686 centimeters 343 centimeters 135 centimeters 106 centimeters Maverick Manufacturing has a target debt-equity ratio of 0.55. Its cost of equity is 11 %, and its cost of debt is 9 %.If the tax rate is 39 %, what is Maverick's WACC? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). Jim already uses itemized deductions when calculating his taxable income and thus he expects his mortgage interest and property taxes to be fully deductible from his income. He currently rents a loft and is thinking of buying a single family home and using it as his primary residence. The purchase price of the house is $225,000 and he is going to use a 80% LTV mortgage to finance the purchase. This mortgage will have an interest rate of 3% and a term of 15 years. The property taxes on the property are currently $5,000/year. His marginal tax rate is 24%. What is the tax benefit associated with the first year of ownership (assume that he will close on the house on January 1st, such that the first year of ownership perfectly coincides with a tax year. individuals with intense fears of specific objects or situations that disrupt their ability to cope are known to have: active transport uses atp to move components in parallel with their concentration gradient, that is: from a high concentration to a low concentration