Answer:
a) 7.2%
b) 7.46%
Explanation:
the loan's principal = $3,200,000 x 80% = $2,560,000
first monthly payment = $17,300 x 360 payments = $6,228,000
total interests charged = $6,228,000 - $2,560,000 = $3,668,000
using a financial calculator:
n = 360
payment = -17,300
present value = 2,560,000
monthly APR = 0.6% x 12 months = 7.2%
effective annual rate = (1 + i/n)ⁿ - 1 = (1 + 0.072/30)³⁰ - 1 = 7.46%
Suppose a farmer is expecting that her crop of oranges will be ready for harvest and sale as 150,000150,000 pounds of orange juice in 33 months time. Suppose each orange juice futures contract is for 15,00015,000 pounds of orange juice, and the current futures price is F_0 = 118.65F 0 =118.65 cents-per-pound. Assuming that the farmer has enough cash liquidity to fund any margin calls, what is the risk-free price that she can guarantee herself.
Answer:
Explanation:
The risk-free rate is the interest that an investor will typically expect from an investment over a period of time.
From the question, the risk free price will be the current futures price which has been given as 118.65 cents per pound.
Therefore, since the farmer is ready for harvest and sale as 150,000 pounds of orange juice in 33 months time, he will have a price of:
= 150,000 × $118.65
= $17,797.5
Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a ________ that gives the management group control over his shares.
Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock currently is valued at $47.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $37.60 per share. Larry worries about the value of his investment.
Larry's current investment in the company is_______. If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth_______.
This scenario is an example of_______. Larry could be protected if the firm's corporate charter includes a ________ provision.
If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become________.
Answer:
Larry must have signed a PROXY AGREEMENT that gives the management group control over his shares.
A proxy agreement is generally used for stockholders voting procedures, they basically grant another person the right to vote on behalf of another stockholder.
Larry's current investment in the company is $94,000.
= 2,000 stocks x $47 = $94,000
If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth $90,240.
company's new market value = (20,000 x $47) + (5,000 x $37.60) = $1,128,000
new stock price = $1,128,000 / 25,000 stocks = $45.12
= $45.12 x 2,000 = $90,240
This scenario is an example of STOCK DILUTION.
The stock price will lower because the increase in the company's value is less than proportional to the increase in the number of stocks.
Larry could be protected if the firm's corporate charter includes a PREEMPTIVE provision.
Preemptive rights give current stockholders the right to purchase more stocks (in case the company issues more stocks) before any outside investors.
If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become $112,800.
= [(5,000 / 10) x $37.60] + $94,000 = $18,800 + $94,000 = $112,800
he Heinz and Kraft merger Group of answer choices may be allowed by the FAA may be allowed by the NEA may be allowed by the NRA may be allowed by the FTC
Answer:
Heinz and Kraft Merger:
may be allowed by the FTC.
Explanation:
The FTC is the Federal Trade Commission. It is the federal government agency charged with the responsibility of ensuring fair market practices, creating, and enforcing rules to guide businesses with respect to advertising, marketing, consumer credit, antitrust, and other fair practises.
The FTC was created by the FTC Act of 1914 and prevents antitrust agreements and develops rules for achieving a vibrant and fair marketplace, where consumers and businesses understand their rights and obligations in the marketplace.
The Heinz and Kraft merger was concluded successfully in 2015 enabling the two companies to become known as the Kraft Heinz Company and one of the largest food and beverage companies in the world.
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $22,500 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $600. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer: Please see explanation column
Explanation:
The adusting journal entry should be :
Accounts Debit Credit
Bad Debts Expense $23,100
Allowance for Doubtful Accounts $23,100
Explanation
Estimated balance in allowance account =$22,500
Allowance for Doubtful Accounts = debit of 600
adjustment to allowance= 22,500 +600 = $23,100
For each scenario, identify which argument is being used to justify trade protectionism.
Argument:
1. Job creation argument
2. National Security argument
3. Infant industry argument
a. Politicians in a small nation want to impose tariffs on foreign food because they believe the nation is too dependent on foreign producers.
b. Lobbyists argue that by prohibiting the importation of manufactured goods, the domestic manufacturing industry will create thousands more jobs.
c. Brazil imposes high tariffs for computer imports so small, domestic manufacturers can develop the technology needed to compete with foreign competitors.
d. Lobbyists argue that raising import tariffs on foreign oil will lead to more domestic jobs in the domestic energy industry.
Answer:
a. Politicians in a small nation want to impose tariffs on foreign food because they believe the nation is too dependent on foreign producers.
2. National Security argumentThis argument is generally used on high tech products, but it is sometimes used to support other industries that are considered essential and very important for a country. The problem is that it always results in higher domestic prices benefiting only a few.
b. Lobbyists argue that by prohibiting the importation of manufactured goods, the domestic manufacturing industry will create thousands more jobs.
1. Job creation argumentUnder this policy, politicians think that they can substitute imports by local products which would favor the trade balance and also generate jobs. The problem is that domestic prices might be very high and consumers will be forced to pay those high prices. Also, other economies can retaliate and the country's exports might be negatively affected.
c. Brazil imposes high tariffs for computer imports so small, domestic manufacturers can develop the technology needed to compete with foreign competitors.
3. Infant industry argumentThis argument is used by politicians that claim that infant industries (or recent, new industries) need to be protected in order to be able to function, prosper and grow. The problem with this argument is that industries operate under a bubble and consumers are charged very high prices for obsolete technology.
d. Lobbyists argue that raising import tariffs on foreign oil will lead to more domestic jobs in the domestic energy industry.
1. Job creation argumentAgain, under this policy, politicians think that they can substitute imports by local products which would favor the trade balance and also generate jobs. The problem is that domestic prices might be very high and consumers will be forced to pay those high prices.
Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.18 every year in perpetuity. If the required return is 4.19 percent, what is the current stock price?
Answer:
The current price of the stock is $99.76
Explanation:
The price of a stock which pays a constant dividend throughout for an indefinite period of time can be calculated using the present value of perpetuity formula. The stock qualifies as a perpetuity as it pays a constant cash flow after equal intervals of time and for indefinite time period.
The formula for the present value of perpetuity is,
Present Value = Cash Flow or Dividend / r
Where,
r is the discount ratePresent value = 4.18 / 0.0419
Present value = $99.76
So, the current price of the stock is $99.76
Based on predicted production of 28,000 units, a company anticipates $574,000 of fixed costs and $511,000 of variable costs. The flexible budget amounts of fixed and variable costs for 26,000 units are
Answer:
$574,000 fixed costs and $474,500 variable cost
Explanation:
According to the predicted production of 28,000 units, a company has a fixed cost of $574,000
The variable costs is $511,000
Therefore the flexible budget amount for the fixed and variable costs when 26,000 units are produced can be calculated as follows
The fixed costs still remains constant at $574,000
Variable cost = 511,000/28,000×26,000
= 18.25×26,000
= $474,500
Hence the fixed cost is $574,000 and the variable cost is $474,500
You would like to have extra spending money, so you decide to work part time at the local gym. The job pays you $15 per hour and you work 20 hours per week. Your employer withholds 10% of your gross pay for federal taxes, 7.65% for FICA taxes and 3% for state taxes.
a. What is your weekly gross pay?
b. How much is withheld per week for federal tax?
c. How much is withheld per week for FICA taxes?
d. How much is withheld per week for state taxes?
e. What is your weekly net pay?
f. What percentage of your gross net pay is withheld for taxes?
Answer:
Gross Pay 300 dollar
Federal Income Tax $ 30
FICA $ 22.95
SUTA $ 9
Net Pay: 238.05
As a percentage of gross pay: 79.35%
Explanation:
Gross pay:
20 hours x $15 each = $ 300
Taxes:
income tax: 300 x 10% = 30
FICA 300 x 7.65% = 22.95
SUTA taxes 300 x 3% = 9
Net pay 300 - 30 - 22.95 - 9 = 238.05
Net pay as a percentage of gross pay:
238.05 / 300 = 0.7935 = 79.35%
Arianna's personal residence has an adjusted basis of $308,150 and a fair market value of $277,335. Arianna converts the personal residence to rental property. What is Arianna's gain basis? What is her loss basis? Arianna's basis for gain is $ and her basis for loss is $
Answer:
Arianna's basis for loss $277,335
Arianna's basis for gain $308,,150
Explanation:
Calculation for Arianna's gain basis and loss basis
Since the original basis for loss on personal use assets that is been converted to either the business or the income producing use is the lower or lesser of the property's adjusted basis or fair market value on the date of conversion which means that the gain basis for the converted property will tend to be the property's adjusted basis on the date of conversion.
Arianna's basis for loss will be $277,335 (lower of $308,150 adjusted basis and fair market value of $277,335).
The amount of $30,815 that was been decline in value is a personal loss whichncan never be recognized for tax purposes this means that Arianna's basis for gain is $308,,150 (adjusted basis).
holdy Inc's bonds currently sell for $1,275. They pay a $120 annual coupon and have a 20-year maturity, but they can be called in 5 years at $1,120. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between the bond's YTM and its YTC?
Answer:
Yield to maturity (YTM) is 1.91% higher than yield to call (YTC).
Explanation:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {$120 + [($1,000 - $1,275)/20]} / [($1,000 + $1,275)/2] = $106.25 / $1,137.50 = 9.34%
YTC = {coupon + [(call price - market value)/n]} / [(call price + market value)/2]
YTC = {$120 + [($1,120 - $1,275)/5]} / [($1,120 + $1,275)/2] = $89 / $1,197.50 = 7.43%
9.34% - 7.43% = 1.91%
Aladdin Jets is attempting to build an airplane that is made by welding the skin (outside layer) of the plane. The technique is much less expensive than an alternative riveting technology. The firm is also using a new type of jet engine with superior efficiency. The new entrant is entering a market that is realizing a substantial increase in competition. Which of the following would be strategies that the firm is attempting?
a. Cost reduction
b. Product differentiation
c. reduction in competitive intensity
d. a and b
e. all of the above.
Answer: Option D( a and b)
Explanation:
From the question, we are informed that Aladdin Jets wants to build an airplane that is made by welding the skin of the plane and that the technique is much less expensive than an alternative riveting technology.
We are further informed that the firm is also using a new type of jet engine with superior efficiency. The above analysis shows that the firm is using a product differentiation strategy and also reducing costs. While the company is trying out new things, it's also trying to minimize cost.
A university bookstore buys mechanical pencils from a wholesaler. The wholesaler offers discount for large order quantity per shipment according to the following price schedule:
Order Quantity Price Per Unit
1 to 200 $4.00
201 to 1,000 $3.60
1,001 to 2,000 $3.40
2,001 and greater $3.25
The bookstore expects an annual demand of 2,500 units. It costs $10 to place an order, and the annual cost of holding a unit in stock is 30% of the unit’s procurement price. Determine the best order quantity.
Answer:
226 units
Explanation:
Formula : [tex]\sqrt{\frac{2 * Annual Demand * Ordering Cost}{Holding Cost}[/tex]
[tex]\sqrt{\frac{2*2500*10}{0.3*3.25} }[/tex] = 226
The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The reorder point is the inventory management system in which a certain level of inventory is set as a trigger for reordering the stock. Ordering cost is determined by the number of order placed.
Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 41% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $24 Direct labor 20 Factory overhead (41% of direct labor) 8.2 Total cost per unit $52.2 If Somerset Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 15% of the direct labor costs. a. Prepare a differential analysis dated April 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If required, round your answers to two decimal places. If an amount is zero, enter "0". Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) April 30 Make Carrying Case (Alternative 1) Buy Carrying Case (Alternative 2) Differential Effects (Alternative 2) Unit costs: Purchase price $ $ $ Direct materials Direct labor Variable factory overhead Fixed factory overhead Total unit costs $ $ $ b. Assuming there were no better alternative uses for the spare capacity, it would to manufacture the carrying cases. Fixed factory overhead is to this decision.
Answer:
A. Total units cost for Make =$47
Total units cost for Buy=$57
B) I would advice that Decision Somerset Computer Company should manufacture because the Total units cost for Make which is Alternative 1 is cheaper or lesser than that of Buy which is Alternative 2.
Explanation:
A. Preparation of the differential analysis to determine whether the company should make (Alternative 1) or (Alternative 2)
DIFFERENTIAL ANALYSIS for Decision Somerset Computer Company
Particulars Make Buy Difference
Purchase price $0 $57 $57
Direct material $24 $0 ($24)
Direct labor $20 $0 ($20)
Variable factory overhead (15% of Labor) $3.00 $0 ($3.00)
Fixed factory overhead $0 $0 $0
Total unit costs $47.00 $57 $10.00
B) I would advice that Decision Somerset Computer Company should manufacture because the Total units cost for Make which is Alternative 1 is cheaper or lesser than that of Buy which is Alternative 2.
John is evaluating which investment would be best for his company. He wants to determine the future value of a certain investment that has the following information:
PV = $200
INT = 0.1 or 10%
N = 1 (years)
According to this information, what would be the future value of this investment?
a) $110.67
b) $200.50
c) $220
d) None of the above
Answer: $220
Explanation:
The following information can be derived from the question:
PV = $200
INT = 0.1 or 10%
N = 1 (years)
To calculate the future value of this investment, we will use the formula:
FV = PV( 1 + i)^n
FV = $200(1 + 0.1)
FV = $200(1.1)
FV = $220
The future value of this investment would be $220.
From an AIDA model perspective, ________ advertising seeks to gain awareness and initial interest and is used mostly in the early growth stages of a product.
Answer:
Pioneering advertising
Explanation:
In this question, the term that is being mentioned is known as Pioneering advertising. This type of advertising refers to the launch campaign of a new product category, instead of actually marketing for a single specific product in an existing marketplace. This is used in the early growth stages of a product when it initially launches in order to make customers aware of its arrival and explain what the product can offer.
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,100 units) $ 227,200 $ 32.00 Variable expenses 134,900 19.00 Contribution margin 92,300 $ 13.00 Fixed expenses 54,800 Net operating income $ 37,500 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 6,100 units?
Answer:
1. $38,540
2. $37,500
3. $24,500
Explanation:
1. The computation of revised net operating income per month if the sales volume increases by 80 units is shown below:-
Net operating income = Sales - Variable expenses - Fixed expenses
= (71,80 × $32) - (7,180 × $19) - $54,800
= $229,760 - $136,420 - $54,800
= $38,540
2. The computation of revised net operating income per month if the sales volume decreases by 80 units is shown below:-
Net operating income = Sales - Variable expenses - Fixed expenses
= (71,00 × $32) - (7,100 × $19) - $54,800
= $227,200 - $134,900 - $54,800
= $37,500
3. The computation of revised net operating income per month if the sales volume is 6,100 units is shown below:-
Net operating income = Sales - Variable expenses - Fixed expenses
= (61,00 × $32) - (6,100 × $19) - $54,800
= $195,200 - $115,900 - $54,800
= $24,500
You have $256,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.1 percent, and Stock L, with an expected return of 10.7 percent. If your goal is to create a portfolio with an expected return of 12.3 percent, how much money will you invest in Stock H and in Stock L
Answer: Investment in H = .4706($256,000)
Investment in H = $120,470.59
Investment in L = .5294($256,000)
Investment in L = $135,529.41
Explanation:
Investment in Stock H
Investment in Stock L
Here, the expected return of the portfolio and the expected return of the assets in the portfolio have been given and we're to calculate the dollar amount of each asset in the portfolio. So, we need to find the weight of each asset in the portfolio. Since the total weight of the assets in the portfolio must equal 1 (or 100%), we can find the weight of each asset as:
E[Rp] = .1230 = .141xH + .107(1 - xH)
xH = .4706
xL = 1 - xH
xL = 1 - .4706
xL = .5294
So, the dollar investment in each asset is the weight of the asset times the value of the portfolio, so the dollar investment in each asset must be:
Investment in H = .4706($256,000)
Investment in H = $120,470.59
Investment in L = .5294($256,000)
Investment in L = $135,529.41
Suppose that on Valentine's Day, the demand for both roses and greeting cards increases by the same percentage amount. However, the price of roses increases by more than the price of greeting cards. Based on this information, you can conclude that the supply of Valentine's card:_______.
Answer:
The correct answer is: the supply of the greeting cards is less elastic than the one of the roses.
Explanation:
To begin with, the elasticity show how much the price and the quantity are related by indicating the variation that happens to one of them when the other changes. Therefore that the supply of the greeting cards is less sensitive to price because when the quantity demanded increased the price did not change as much as the roses due to the fact that the sellers were not encourage as much as the sellers of the roses to produce more and therefore to increase the price of the cards. So to sum up, when the price changed the sellers were not encourage to increase the production of the cards as much as the production of the roses because of its elasticity.
Answer:
the supply of the greeting cards is less elastic than the one of the roses.
Explanation:
Data concerning Farm Corporation's single product appear below: Selling price per unit $ 320.00 Variable expense per unit $ 76.80 Fixed expense per month $ 170,240 The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
$224,000
Explanation:
Contribution margin = Selling price - Variable cost
= $320 - $76.8
= $243.2
Contribution margin ratio = Contribution margin / Sales
= $243.2 / $320
= $0.76 × 100
= 76%
Break even point = Fixed cost / Contribution margin ratio
= $170,240 / 76%
= $224,000
Stan Slickum has a used car that can be bought for $8 comma 500 cash or for a $1 comma 000 down payment and $770 per month for 12 months. What is the effective annual interest rate on the monthly payment plan?
Answer:
48.8%
Explanation:
We can use the rate formula to determine the monthly rate as follows:
=rate(nper,pmt,-pv,fv)
nper is the number of monthly payments which is 12
pmt is the amount of monthly payment which is $770
pv is the cash price of the minus downpayment i.e $8500-$1000=$7500
fv is the balance after all payments have been made i.e $0
=rate(12,770,-7500,0)=3.37%
effective monthly rate=(1+3.37% )^12-1=48.8%
Provide an example that shows variable costing is divided among different activities, and that each activity has its own predetermined variable overhead criterion. Explain your example in detail and provide in-text citations.
Answer:
Variable Expense - Cost driver
Machine setup cost - Number of Setups
Machine running cost - Machine hours used
Ordering Cost - No of orders placed
Labor Cost - Labor hours worked
Raw Material - Material usage rate
Transportation Cost - No of Orders delivered.
Explanation:
An organizational structure in one in which certain activities are aligned to achieve the ultimate goal of the organization. Similar types of set of machines together to get particular output product. The cost drivers in organizational structure can influence the output of a company.To determine the product cost per unit using the absorption costing we find the per unit rate for Variable Overheads for the activity by diving the total variable cost by its cost driver.
Linda and Richard are married and file a joint return for 2019. During the year, Linda, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; Richard used the same amount. Linda and Richard also used $850 worth of employee discount coupons for hotel rooms at the hotel chain that is also owned by the airline. Richard is employed at State University as an accounting clerk. Under a tuition reduction plan, Richard saved $4,000 in tuition fees during 2019. He is studying for a master's degree in business at night while still working full-time. Richard also had $30 worth of personal typing done by his administrative assistant at the University.
Required:
What is the amount of fringe benefits that should be included in Linda and Richard's gross income on their 2018 tax return?
Answer:
$4,850
Explanation:
The free passes are customer discounts and does not qualifies for taxable in kind benefits. The $850 is an in-kind benefits and thus must be included in the gross income. Furthermore, the $4,000 fee reduction is all because of the university employment and thus must be included in the gross income.
The $30 worth of personal typing done by Richard's administrative assistant is a third party favor and this favor was not from the employer so it has nothing to do with tax.
The increase in taxable gross income will be as under:
Increase in Taxable Gross Income = $850 + $4,000 = $4,850
Your portfolio is comprised of 40 percent of stock X, 15 percent of stock Y, and 45 percent of stock Z. Stock X has a beta of 1.24, stock Y has a beta of 1.49, and stock Z has a beta of 0.41. What is the beta of your portfolio?
Answer:
Portfolio beta = 0.904
Explanation:
The portfolio beta is the weighted average of all the beta associated with each of the different stock making up the portfolio. The betas are weighted using the probability associated with each of the stock.
Portfolio beta = WaRa + Wb+Rb + Wn+Rn
W- weight of the beta, R- Stock beta -
W- Probability of the beta, R- stock beta
Note that the sum of the probability of different outcomes should equal to one. Hence, the probability of economy being normal is
Portfolio beta = (0.4 × 1.24) + (0.15 × 1.49) + ( 0.45 ×0.41) =0.904
Portfolio beta = 0.904
To create a budget: Multiple Choice From the Banking Menu, select Planning & Budgets > Budgets From the Company Menu, select Planning & Budgeting > Set Up Budgets From the Company Center, select Company & Financials > Budgets From the Edit Menu, select Preferences > Set Up Budgets
Answer: From the Company Menu, select Planning & Budgeting > Set Up Budgets
Explanation:
Quickbooks is a very popular and effective accounting software that is mainly used by Small to Medium Scale Businesses to manage their Accounting affairs with its myriad of functions including on-premises and online cloud functions for ease of operations.
When setting up a new budget with Quickbooks, from the Company menu, click on Planning and Budgeting and then click on Set Up Budgets. After that you should click on Create New Budget and then continue from there.
Which of these would most likely be funded through a Community Facilities District?
Answer:
what ones there's only the question not the answers
The goal of collaborative planning, forecasting, and replenishment (CPFR) is to improve operational efficiency and manage inventory.
a. True
b. False
Answer:
Option "a" = true.
Explanation:
"The goal of collaborative planning, forecasting, and replenishment (CPFR) is to improve operational efficiency and manage inventory"
The statement given above is right or CORRECT and TRUE(option a).
The concept of "Collaborative Planning, Forecasting and Replenishment" was first brought into limelight in the year 1995. Collaborative Planning, Forecasting & Replenishment make sure that a terminology or say a concept in commerce which is know as "Integration of supply chain" is improving greatly.
The collaborative planning, forecasting, and replenishment (CPFR) helps to improve operational efficiency by reducing costs such as that of logistics, transportation and many more.
A growing population encourages economic growth as it creates a larger workforce. Suppose a surge in immigration increases a country's total population and its overall economic output increases. As a result, the country's real GDP increases from $304,000 to $316,500. What is the percent change in real GDP
Answer:
4.11%
Explanation:
the percentage change in real GDP = [(new real GDP - old real GDP) / old real GDP] x 100 = [($316,500 - $304,000) / $304,000] x 100 = 4.11%
Generally a surge in immigration will result in both higher nominal and real GDP, but what should be more important is how real GDP per capita changes. If real GDP per capita increases, then the inflow was positive and made the economy grow for better. If real GDP per capita decreases, even if total real GDP increases, then the economy is not doing better.
Creating own dividend policy. Carmen owns shares of Wiseguy Entertainment. Wiseguy has just declared a per share dividend on a stock selling at $. What must Carmen do if she wants no cash dividends at this time, worth of dividends, or $ worth of dividends? Show her wealth in paper and cash under each scenario. Assume a world of no taxes. First, if Carmen does not want an annual "dividend income" from his stock holdings, what must she do to get this level of income? (Select the best response.)
Answer:
Hello your question has some missing figures here is the complete question with the missing figures
Creating own dividend policy. Carmen owns shares of Wiseguy Entertainment. Wiseguy has just declared a $0.30 per share dividend on a stock selling at $24.3. What must Carmen do if she wants no cash dividends at this time, $82000 worth of dividends, or $107000 worth of dividends? Show her wealth in paper and cash under each scenario. Assume a world of no taxes. First, if Carmen does not want an annual "dividend income" from his stock holdings, what must she do to get this level of income? (Select the best response.)
Answer: Wealth in cash = $107000 , wealth in paper = $8160000
since her annual dividend received = ($102000) Carmen needs to purchase 4250 more shares of stock to get to this level of income
Explanation:
Given data
shares held = 340000
dividend = $0.3
stock price = $24.3
Stock price - dividend = $24 ( dividend price )
A) what Carmen must do if she doesn't want cash dividends
Based on shares held the annual dividend of Carmen = 340000 * 0.3 = $102000
If Carmen doesn't want the cash dividend she can use it to purchase more shares for Wiseguy entertainment which will be = dividend received / dividend price = 102000 / 24 = 4250 shares
when the Annual dividend required is $82000
she can buy shares worth = $20000 ( 102000 - 82000 )
= 20000 / 24 = 833.33
when the Annual dividend required is $107000
Carmen can sell shares worth = $5000 ( 107000 - 102000 )
= 5000 / 24 = 208.33
therefore wealth in cash would be
= $107000
wealth in paper would be
= dividend price * number of shares held
= $24 * 340000 = $8160000
If a small electric automobile manufacturer is able to gain the social return generated by its electric motor, its demand for financial capital would Group of answer choices
Answer: shift to the left
Explanation:
When a small electric automobile manufacturer is able to gain the social return generated by its electric motor, then its demand for financial capital will shift to the left.
This means that since the financial capital shift to the left, there will be a reduction in the demand for financial capital.
A pound of steak costs $10 in the U.S. and 56.25 riyals (the currency of Saudi Arabia) in Saudi Arabia. If the real exchange rate is 2/3, what is the nominal exchange rate
Answer: 3.75 Riyals / USD
Explanation:
The Real Exchange rate is different from the Nominal exchange rate as it takes into account, the differences between the 2 nations being compared in terms of prices of goods and services.
As such it can be used to calculate the Nominal rate;
Real Exchange Rate = (Cost in U.S. x Nominal Exchange Rate) / Cost in Saudi Arabia
2/3 = (10 x Nominal Exchange Rate) / 56.25
2/3 x 56.25 = 10 x Nominal Exchange Rate
10 x Nominal Exchange Rate = 37.50
Nominal Exchange Rate = 37.50 / 10
Nominal Exchange Rate = 3.75 Riyals / USD
The nominal exchange rate is 3.75 Riyals for every $1.