The journal entry, Work in Process Inventory Account, Schedule of Cost of goods manufactured are as follows:
General Journal:
Debit Raw Materials $4,900
Credit Accounts Payable $4,900
To record the purchase of raw materials on account.
Debit Manufacturing Overhead Incurred $1,300
Credit Accounts Payable $500
Credit Accumulated Depreciation $800
To record depreciation and miscellaneous costs incurred on account.
Debit WIP $11,000
Credit Raw materials $6,500
Credit Direct labor $4,500
To record costs incurred.
Debit WIP $6,000
Credit Manufacturing overhead $6,000
To record costs incurred.
Debit Finished Goods $ (22,750)
Credit WIP $ (22,750)
To record the transfer of WIP.
2. Work in Process Inventory Account
Beginning balance $5,750
Debit raw materials 6,500
Debit Direct labor 4,500
Debit manufacturing overhead 6,000
Credit: Finished goods (22,750)
Ending Balance $5,450
4. Schedule of Cost of goods manufactured:
Beginning WIP balance $5,750
Raw materials 6,500
Direct labor 4,500
Manufacturing overhead 6,000
Ending Balance (5,450)
Finished goods (22,750)
a) Raw Materials Inventory
Beginning balance $4,400
Debit: Accounts Payable 4,900
Credit: WIP (6,500)
Ending balance $3,200
b) Manufacturing Overhead Applied
Beginning balance $33,100
Credit WIP (6,000)
Ending balance $27,100
c) Manufacturing Overhead Incurred
Beginning balance $32,200
Debit: Accounts Payable 500
Debit: Depreciation 800
Ending balance $33,500
d) Journal entries were used/utilized to post the transactions for June to/into the ledger accounts, where the transactions were summarized, and then ending balances extracted.
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Complete question:
nstructions1. Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead cost incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods.2. Post the entries to Work in Process Inventory.3. Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.4. Prepare a cost of goods manufactured schedule for June.
When a sales associate is showing property he should not give the impression that he is a building inspector; however, he is obligated to draw their attention to which of the following?
A. Broken gutters
B. Drafty doors
C. Bulges in walls
D. Peeling paintwork
A. Broken gutters - Sales associates should draw attention to any broken gutters since they could indicate a potential issue with water damage or drainage.
What is potential?Potential is the ability to do something, either now or in the future. It is the capacity of a person, thing, or situation to become something greater or achieve a higher level of success. Potential is often seen as a latent power that can be activated and released with the right set of circumstances. Potential is also seen as the ability to achieve a certain level of success, which can be determined by a number of factors such as knowledge, experience, and effort. Potential is an important factor in a person's overall success and can be harnessed and maximized with the right mindset and approach.
B. Drafty doors - Sales associates should draw attention to any drafty doors since they could indicate a potential issue with insulation or ventilation.
C. Bulges in walls - Sales associates should draw attention to any bulges in walls since they could indicate a potential issue with structural integrity.
D. Peeling paintwork - Sales associates should draw attention to any peeling paintwork since it could indicate a potential issue with the condition of the building.
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A. Broken gutters - Sales associates should draw attention to any broken gutters since they could indicate a potential issue with water damage or drainage.
What is potential?Potential is the ability to do something, either now or in the future. It is the capacity of a person, thing, or situation to become something greater or achieve a higher level of success. Potential is often seen as a latent power that can be activated and released with the right set of circumstances. Potential is also seen as the ability to achieve a certain level of success, which can be determined by a number of factors such as knowledge, experience, and effort. Potential is an important factor in a person's overall success and can be harnessed and maximized with the right mindset and approach.
B. Drafty doors - Sales associates should draw attention to any drafty doors since they could indicate a potential issue with insulation or ventilation.
C. Bulges in walls - Sales associates should draw attention to any bulges in walls since they could indicate a potential issue with structural integrity.
D. Peeling paintwork - Sales associates should draw attention to any peeling paintwork since it could indicate a potential issue with the condition of the building.
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Which of the following are correctly worded statements about the variable River_List Price given the sample we have? Check all that apply. There may be more than one answer.
Date is here https://www.statcrunch.com/app/index.php?dataid=1288079&groupid=2407
We are 90% confident that the interval (402.754,531.515) covers the population mean list price of condos with a view.
There is a 95% chance that the population mean μfalls within $77,442 of $467,134.
There is a 90% chance that the population proportion is a value between $402,754 and $531,515.
We are 99% confident that the interval (389.692,544.576) covers the population proportion of condos with a view.
All of the above.
None of the above.
The correct statement about the variable River_List Price given the sample we have are: We are 90% confident that the interval (402.754,531.515) covers the population mean list price of condos with a view.
There is a 90% chance that the population proportion is a value between $402,754 and $531,515.The variable River_List Price is provided with the sample, and there are many valid statements related to the same.
The following are the correctly worded statements about the variable River_List Price given the sample we have are: We are 90% confident that the interval (402.754,531.515) covers the population mean list price of condos with a view.
There is a 90% chance that the population proportion is a value between $402,754 and $531,515.Thus, the correct options are 1 and 3, and the correct answer is "Which of the following are correctly worded statements about the variable River_List Price given the sample we have are: We are 90% confident that the interval (402.754,531.515) covers the population mean list price of condos with a view and there is a 90% chance that the population proportion is a value between $402,754 and $531,515."
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A variety of options are available for how multinationals can go about constructing compensation plans for expatriates. Which of the following popular methods is not correctly defined?
A. The localization method: paying the expatriate at least 20%-25% more than local employees in similar positions
B. The balance sheet model: "balancing out" the cost differences between the expatriate's home country lifestyle and their foreign assignment location
C. The ad hoc approach: the company and its expatriates negotiate on a case-by-case basis to cover the costs inherent in a foreign assignments
D. The localization method: paying the expatriate essentially the same as local employees in similar positions
A variety of options are available for how multinationals can go about constructing compensation plans for expatriates. Among the popular methods of compensating expatriates, the option that is not correctly defined is The localization method.
What is an Expatriate?
An expatriate is an individual who lives in one country but works in another country. They are also known as ex-pats. People can become expatriates for various reasons, including work, studies, retirement, or even personal reasons. Expatriates can work for multinational corporations or non-governmental organizations, among other organizations.
The Localization method of compensation involves paying the expatriate at least 20%-25% more than local employees in similar positions. This method is used to attract and retain top talent from around the world. It can be challenging for multinational companies to convince their employees to relocate overseas due to the high cost of living in foreign countries. Therefore, to incentivize these individuals to relocate, companies must offer competitive salaries and benefits packages.
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in the adam smith excerpt that we read from wealth of nations, what concept does he describe that allows individual workers to be more productive, and to benefit from this excess production in the marketplace?
The division of labor and specialization of workers to increase productivity and take advantage of the market's excess production
There is a division of labor when a process is broken down into numerous tasks, each of which is completed by a different person or group of people. The division of labor is most frequently used in mass manufacturing processes because it reduces pointless actions and makes handling different tools and parts simpler. Specialization is the main reason for labor division. Efficiency is achieved when a challenging activity is divided into smaller, simpler tasks because workers become proficient at the particular tasks they are given.
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a semiannual coupon bond with a coupon rate of 9% and face value of $1000 trades at $900. it matures in 15 years. what is its yield to maturity (ytm)?
The yield to maturity of a semiannual coupon bond with a coupon rate of 9% and face value of $1000, which trades at $900 and matures in 15 years, is 7.18%.
To calculate the yield to maturity, we must first determine the present value of the coupon payments and the face value. We then use this information to calculate the bond’s internal rate of return.
We can determine the present value of the coupon payments by multiplying the coupon rate (9%) by the face value ($1000) and then multiplying that figure by the number of coupon payments that the bond makes over its lifetime (30).
We then subtract this figure from the current price of the bond ($900) to arrive at the present value of the face value. We then use these figures to calculate the bond’s internal rate of return using the yield to maturity formula, which results in a yield to maturity of 7.18%.
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When Castle Corporation pays insurance premiums, the transaction is recorded as a debit to prepaid insurance. Additional information for the year ended December 31 is as follows:
Prepaid insurance at January 1 $51,500 Insurance expense recognized during the year 219,250 Prepaid insurance at December 31 61,450 What was the total amount of cash paid by Castle for insurance premiums during the year?
Multiple Choice
$229,200
$167,750
$209,300
$219,250
The total amount of cash paid by Castle for insurance premiums during the year is $209,300. (The correct answer is C).
The change in prepaid insurance amount represents cash paid for insurance premiums for the year. Castle Corporation paid $209,300 ($61,450 - $51,500 + $219,250) for insurance premiums during the year. Therefore the correct answer is C. The transaction is recorded as a debit to prepaid insurance. Prepaid Insurance is an asset account that increases when the business pays its insurance premiums in advance.
Prepaid insurance is a common asset account used when the business pays for its insurance coverage in advance. When the business initially pays for its insurance premiums, the accountant debits Prepaid Insurance and credits Cash. Each month, as the business uses up the insurance coverage, it reduces the balance in the prepaid insurance account (debit) and recognizes the insurance expense on its income statement (credit). Insurance premiums is the cost of a coverage plan for a specific period of time (usually one year) is referred to as insurance premiums, while prepaid insurance is an account that reflects insurance purchased in advance and that still has value as of a certain date.
Your question is incomplete as it misses the option letter, the complete question is:
When Castle Corporation pays insurance premiums, the transaction is recorded as a debit to prepaid insurance. Additional information for the year ended December 31 is as follows:
Prepaid insurance at January 1 $51,500 Insurance expense recognized during the year 219,250 Prepaid insurance at December 31 61,450 What was the total amount of cash paid by Castle for insurance premiums during the year?
Multiple Choice
A. $229,200
B. $167,750
C. $209,300
D. $219,250
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suppose that the local government of corpus christi decides to institute a tax on cider consumers. before the tax, 10 billion cases of cider were sold every year at a price of $11 per case. after the tax, 4 billion cases of cider are sold every year; consumers pay $13 per case (including the tax), and producers receive $6 per case. the amount of the tax on a case of cider is $ per case. of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $ per case.
The amount of cider sold has also decreased significantly, from 10 billion cases before the tax to 4 billion cases after the tax was instituted.
The local government of Corpus Christi has instituted a tax on cider consumers. Before the tax, 10 billion cases of cider were sold every year at a price of $11 per case. After the tax was instituted, the number of cases sold dropped to 4 billion and the price of a case of cider rose to $13 per case (including the tax). This means the amount of the tax on a case of cider is $2 per case.
The burden of the tax on consumers is $2 per case, and the burden of producers is also $2 per case. This means that the consumers and producers bear the entire burden of the tax. The producers will be paying $2 per case and the consumers will be paying the same amount, $2 per case. As a result, the consumers will have to pay $2 more for a case of cider and the producers will receive $6 per case instead of $8.
Overall, the tax on cider consumers has had a negative effect on both consumers and producers. Consumers are paying more for cider and producers are receiving less.
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the appraisal report submitted to jenkins, the lender, notes that the property is being conveyed with all property rights intact. which step in the appraisal process does this represent?
Defining the issue is the first stage in the appraisal process. Included in this is a summary of the property's rights.
What does the term "appraisal process" mean?An individual's daily performance is assessed systematically and on a regular basis in relation to the predetermined job requirements. It's a judgement of the employee's relative value to the company, skills and limitations, and potential for further development. The assessment must: 1) Name the properties that need to be valued when describing the issue. 2) List the property rights that need to be valued. 3) Describe the value that needs to be estimated. 4) Specify the appraisal's objective and intended use.
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explain how division of labour cam be applied in a restaurant
T/F: in today’s marketplace, outsourcing efforts are confined to manufacturing activities.
No, in today's marketplace, outsourcing efforts are not confined to manufacturing activities.
In today’s global marketplace, businesses can outsource a variety of services and activities to third parties. Outsourcing are not confined to manufacturing activities, it can involve a variety of activities, including research and development, logistics, and customer service. For instance, companies may outsource their IT services and customer service operations to a third-party provider to reduce costs and improve efficiency. Additionally, businesses may outsource more specialized activities such as product design, quality assurance, and legal services.
Outsourcing can also be used to gain access to expertise or technology that the business may not have. For instance, businesses may outsource their accounting, tax, and audit services to an experienced provider to ensure compliance with regulations and industry standards.
In addition to the financial advantages of outsourcing, businesses can also benefit from gaining access to global talent and services. By outsourcing, businesses can tap into an international pool of resources and talent, allowing them to get work done faster and more efficiently. Additionally, outsourcing allows companies to focus on their core competencies and leave specialized activities to third-party providers.
Overall, outsourcing is not limited to manufacturing activities. It is an effective strategy for businesses of all sizes, and in all industries, to reduce costs, gain access to specialized expertise, and improve efficiency.
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Robyn rents her beach house for 60 days and uses it for personal use for 30 days during the year. The rental income is $6,000 and the expenses are as follows: Mortgage interest $9,000 Real estate taxes 3,000 Utilities 2,000 Maintenance 1,000 Insurance 500 Depreciation (rental part) 4,000 Using the IRS approach, total expenses that Robyn can deduct on her tax return associated with the beach house are: a. $0. b. $6,000 c. $8,000 d. $12,000 e. None of these
The IRS approach, the total expenses that Robyn can deduct on her tax return associated with the beach house are (D) $12000.
The Internal Revenue Service (IRS) is a government agency that is responsible for enforcing the tax code and collecting taxes. It's also in charge of issuing guidelines and procedures for tax preparation.
The IRS approach is an approach in which expenses must be divided between personal use and rental use when the rental property is used for personal use during the year.
In accordance with the IRS approach, the total expenses that Robyn can deduct on her tax return associated with the beach house are $12,000.
The following is the calculation of expenses:
Mortgage interest $9,000, Real estate taxes $3,000, Utilities $2,000, Maintenance $1,000, Insurance $500, Total rental expenses = $15,500
Allocation of expenses between personal and rental use = $15,500/90 (60 days rental and 30 days personal use)
Total expenses deductible on tax return for rental use only = $12,000
Therefore, the correct option is D. $12,000.
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The difference in net operating income between absorption costing and variable costing is due to the ______.a. time when fixed overhead is expensed
b. format of the income statements
c. expensed in the period incurred
d. amount of sales revenue reported
The difference in net operating income between absorption costing and variable costing is due to the: a. time when fixed overhead is expensed.
What is Net Operating Income?Net Operating Income (NOI) is the profit generated by a business or property after deducting operating expenses but before deducting taxes and interest.
In absorption costing, fixed overhead costs are allocated to products based on the level of production and included in the cost of goods sold, whereas in variable costing, fixed overhead costs are expensed in the period incurred and not included in the cost of goods sold.
As a result, changes in production levels can have a significant impact on net operating income reported under absorption costing, whereas net operating income reported under variable costing is not affected by changes in production levels but rather changes in sales revenue.
The format of the income statements may differ between the two costing methods, but this is not the primary reason for the difference in net operating income.
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treasury bonds paying an 11.0% coupon rate with semiannual payments currently sell at par value. what coupon rate would they have to pay in order to sell at par if they paid their coupons annually? (hint: what is the effective annual yield on the bond?) (round your answer to 2 decimal places.)
Effective annual yield _____
To sell treasury bonds at par if coupons were paid annually instead of semiannually, the bond would have to pay a coupon rate of 12.08%.
The effective annual yield is 11.00%.Here is how to solve this problem: If you want to calculate the bond's annual coupon payment, divide the semiannual payment by 2:$Coupon Payment_{annual}=Coupon Payment_{semiannual}/2$$Coupon Payment_{annual}=11.0\%/2=\$5.50$The current price of the bond is equal to its par value, which is $1000. The bond's annual payment is $5.50. As a result, the bond's current yield is calculated as follows:$$Bond\space Price=Coupon Payment_{annual}/y$$where y is the bond's annual yield. To convert the bond's semiannual yield into an annual yield, use the following formula:$$Effective\space Yield=(1+\frac{r}{m})^m-1$$where r is the semiannual yield and m is the number of semiannual periods in a year. In this scenario, there are two semiannual periods, so m=2.$$Effective\space Yield=(1+\frac{0.11}{2})^2-1=0.11305$$The bond's current yield is calculated as follows:$$1000=\frac{5.50}{y}$$$$y=\frac{5.50}{1000}=0.0055$$The coupon rate that the bond must pay to sell at par value if coupons are paid annually is calculated as follows:$$1000=\frac{Coupon Payment_{annual}}{y}$$$$Coupon Payment_{annual}=y*1000=0.0055*1000=\$5.50$$$$y=\frac{Coupon Payment_{annual}}{1000}$$$$0.11305=\frac{Coupon Payment_{annual}}{1000}$$$$CouponPayment_{annual}=0.11305*1000=\$113.05$$Rounded to two decimal places, the bond must pay a 12.08 percent coupon rate to sell at par if coupons are paid annually instead of semiannually.
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Businesses vary as to the amount of security they require or can afford for their computer files. Firewalls are a type of software that protects computer files from unauthorized entry. A company that had developed a complete line of firewalls, from a no-frills version to a version that uses retinal scans for admittance, would most likely need to rely most heavily on which promotional element?
Businesses that have developed a complete line of firewalls, from no-frills versions to versions that use retinal scans, would need to rely heavily on promotional elements to spread awareness and drive sales.
One of the most important promotional elements to use is advertising, which can be done in a variety of forms, such as television commercials, print ads, digital ads, and even word of mouth. Advertising is an effective way to get the word out about a product, and with the range of firewalls available, businesses can target different audiences with different types of advertising. In addition to advertising, businesses should also focus on public relations and marketing, which involve creating a positive image of the company and its products, as well as creating a demand for the product. Public relations and marketing can involve press releases, campaigns, and events to create awareness about the firewalls and their features. Lastly, businesses should also focus on sales and customer service, as this will ensure that customers are satisfied and have the tools to properly install and use the firewall.
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mr. and mrs. shohler received $25,200 social security benefits this year. their only other source of income was mrs. shohler's $10,479 taxable pension from her former employer. how much of their social security is included in gross income?
The taxable portion of their benefits is 85% of the $25,200, which equals $21,420. The remaining 15%, or $3,780, is not included in gross income.
The Shohlers' social security benefits are included in their gross income.
To calculate the taxable portion of their social security benefits, we first add together their other sources of income. In this case, their taxable pension is $10,479.
This brings the total to $35,679. We then multiply this total by the taxable percentage of benefits, which is 85%. The result is $21,420, which is the amount of their social security benefits included in gross income.
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starbucks' offers to sell big jolt java, inc., 100 bags of its high caffeine content coffee beans. big jolt sends a letter to starbucks indicating that it has decided to buy its coffee beans directly from a peruvian supplier and rejects starbucks' offer. the offer from starbucks is:
Starbucks' offer to Big Jolt Java, Inc. was to sell 100 bags of its high caffeine content coffee beans. However, Big Jolt Java, Inc. decided to buy its coffee beans directly from a Peruvian supplier, thus: rejecting Starbucks' offer.
An offer is an indication of willingness to enter into a contract on specific terms, made by a person, organization, or company. A party who makes an offer (offeror) presents to another party (offeree) a proposal that contains the terms of the offer. The offer, to be valid, must include a specific price, subject matter, and terms of payment.
In general, an offer requires a response by the offeree to accept, reject, or propose different terms. If the offeree agrees to the terms of the offeror, it is a valid contract. However, if the offeree rejects the offer or proposes different terms, it is not a valid contract. The offer is a necessary prerequisite to forming a contract in most legal systems.
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a cost bucket in which costs related to a particular activity measure are accumulated is called a(n) . multiple choice question. activity measure activity rate activity activity cost pool
A cost bucket in which costs related to a particular activity measure is accumulated is called an activity cost pool.
What is an Activity Cost Pool?A cost bucket in which costs related to a particular activity measure is accumulated is called an activity cost pool. Activity cost pools are also known as cost centers or activity centers. Activity costs are a term used to refer to the expenses incurred while performing a specific task in a business process. An activity cost pool is a group of cost items that fall under a single department or a single operation. A cost pool is an accounting and financial reporting term used to refer to an aggregation of costs for a specific purpose. They are used to keep track of expenses for a specific activity, process, or project within an organization.
Cost pools are frequently utilized by businesses to better comprehend the expenses connected with a certain activity or operation, and they can be an important tool for identifying areas where expenses can be lowered or efficiency increased. Cost pools are frequently used in cost accounting, which is the process of estimating and tracking business expenditures.
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TalkaLot Corp. incurs a cost of $350 to produce one unit of a cell phone. The company’s management has priced the product at $600 in the market. Considering the technological advancement of the cell phone, customers perceive its value to be around $800. What is the economic value created in this scenario?
A. $200
B. $250
C. $450
D. $600
E. $800
Option (c), The economic value produced in this situation is $450.
What exactly does economic value mean?A person bases their evaluation of an economic good's value on the advantages they stand to get from it. The person's willingness to pay for the good, which is commonly stated in monetary terms, is used to appraise it regularly.
Why are economic principles significant?Economic value is used to assess costs on a financial and environmental level in order to enhance budgeting and investment decisions. It helps manufacturers estimate the worth of a good or service based on consumer preferences and what they are willing to exchange or give up.
Consumer surplus plus firm profit, or the total of consumer and producer surplus, constitutes economic value creation. The monetary value generated in this instance is
($800 - $600) + ($600 - $350) = $450.
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in operant conditioning, what process describes adding something aversive to decrease the future likelihood of behavior?
In operant conditioning, the process that describes adding something aversive to decrease the future likelihood of behavior is called "positive punishment."
Positive punishment is a type of operant conditioning that involves adding an aversive stimulus to decrease the likelihood of a behavior recurring in the future. The term "positive" in this context means adding a stimulus, while "punishment" means decreasing the probability of a behavior.
However, it is important to note that positive punishment can have negative consequences, such as causing fear, anxiety, or aggression. Therefore, it should be used sparingly and with caution.
Positive punishment is different from negative punishment, which involves removing a desirable stimulus to decrease the likelihood of a behavior. For example, if a child misbehaves, a parent might use negative punishment by taking away a privilege such as screen time.
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A firm pays a $1.50 dividend at the end of year one (D1), has a stock price of $151 (P0), and a constant growth rate (g) of 9 percent.a. Compute the required rate of return (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)Indicate whether each of the following changes will increase or decrease the required rate of return (Ke). (Each question is separate from the others. That is, assume only one variable changes at a time.) No actual numbers are necessary.b. If the dividend payment increases:c. If the expected growth rate increases:d. If the stock price increases:
The required rate of return calculated from the constant growth model is 10.99%, and an increase in dividend payment will lead to a decrease in the required rate of return.
a. Calculation of Required rate of return (Ke)
Using the formula of the constant growth model, the required rate of return (Ke) can be computed as follows:
Ke = (D1 / P0) + gKe = ($1.50 / $151) + 0.09
Ke = 0.019868 + 0.09Ke = 0.109868 or 10.99% (rounded to 2 decimal places)
Therefore, the required rate of return (Ke) is 10.99%.
b. If the dividend payment increases:
An increase in dividend payment will lead to a decrease in the required rate of return (Ke) as dividend payment is a direct factor for the computation of Ke.
This means that investors will require less return when the dividend payment is higher as it is considered less risky.
c. If the expected growth rate increases: If the expected growth rate increases, it will lead to an increase in the required rate of return (Ke) as the growth rate is directly proportional to the required rate of return. This means that investors will require more return when the expected growth rate is higher as it is considered riskier.
d. If the stock price increases: If the stock price increases, it will lead to a decrease in the required rate of return (Ke) as the stock price is directly proportional to the required rate of return. This means that investors will require less return when the stock price is higher as it is considered less risky.
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If the variability of the returns on large-company stocks were to decrease over the long-term, you would expect which one of the following to occur as a result?
Increase in the risk premium
Increase in the average long-term rate of return
Decrease in the 68 percent probability range of returns
Increase in the standard deviation
Increase in the geometric average rate of return
If the variability of the returns on large-company stocks were to decrease over the long term, you would expect an increase in the average long-term rate of return as a result. A risk premium is an excess return over the risk-free rate. The correct option is B.
What is the rate of return on risk premium?Standard deviation is the spread of a set of data from its mean. The geometric average rate of return is the average rate of return that an investment earns over a given period of time.
Variability is a measure of the degree to which an investment's returns change over time. The more a given asset fluctuates in value, the greater its variability is. The risk premium is the excess return required by investors for taking on additional risk.
If the variability of the returns on large-company stocks were to decrease over the long term, you would expect an increase in the average long-term rate of return as a result.
By minimizing the uncertainty and variability in returns, this outcome improves investors' confidence and lowers the risk of long-term investment.
Therefore, the correct option is B.
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uppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, rf. The characteristics of two of the stocks are as follows: Stock A B Correlation = -1 Expected Return 8% 13% Standard deviation 40% 60% a. Calculate the expected rate of return on this risk-free portfolio? (Hint: Can a particular stock portfolio be substituted for the risk-free asset?) Rate of return % b. Could the equilibrium rf be greater than 10%? Yes O No
a. The expected rate of return on this risk-free portfolio is 10%. This is because when the correlation between two stocks is -1, a portfolio can be constructed with 0 risks by taking equal amounts of both stocks and borrowing at the risk-free rate.
b. Yes, the equilibrium rf could be greater than 10%. This would occur if the expected return of the two stocks exceeds 10%, or if the risk-free rate is increased.
a. The correlation between Stock A and Stock B is -1; so they will move in the opposite direction.
The expected return and standard deviation of both stocks are also provided.
$$E(R_p)=w_AE(R_A)+w_BE(R_B)$$
wA and wB are the weights of Stock A and Stock B, respectively, and E(RA) and E(RB) are the expected returns of Stock A and Stock B, respectively.
The weights of Stock A and Stock B will add up to 1:$$w_A+w_B=1$$
$$E(R_p)=w_AE(R_A)+w_BE(R_B)=w_A(0.08)+w_B(0.13)=0.08+0.05w_B$$
Since Stock A and Stock B are negatively correlated, the portfolio standard deviation, σp:
$$\sigma_p = \sqrt{(w_A\sigma_A)^2+(w_B\sigma_B)^2+2w_Aw_B\sigma_A\sigma_B\rho_{AB}}$$$$\sigma_p = \sqrt{(w_A\sigma_A)^2+(w_B\sigma_B)^2-2w_Aw_B\sigma_A\sigma_B}$$$$\sigma_p = \sqrt{(w_A(0.4))^2+(w_B(0.6))^2-2w_Aw_B(0.4)(0.6)(-1)}$$
Thus, the expected rate of return on this risk-free portfolio is 0.08 + 0.05wB.Rate of return = 0.08 + 0.05wB.
b. Answer to whether the equilibrium rf can be greater than 10%:The equilibrium risk-free rate is the rate at which the expected return on the market portfolio is equal to the risk-free rate.
It is possible for the equilibrium risk-free rate to be greater than 10%.
Therefore, the answer is "Yes."
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Mendoza Supplies sold an old delivery truck with a purchase price of $17,680 and accumulated depreciation of $12,240 for $4,800. This would require Mendoza to include which of the following in their journal entry to record the sale?
Mendoza Supplies must include debit cash, credit accumulated depreciation, credit gain on disposal of equipment and debit equipment on journal entry.
A journal entry is an accounting transaction that records financial information in a company's general ledger. Accounting books are often made up of various journals. Accounting journal types include General, Sales, Purchase, Cash Receipt, and Cash Disbursement.
Mendoza Supplies must include the following in their journal entry to record the sale of an old delivery truck with a purchase price of $17,680 and accumulated depreciation of $12,240 for $4,800:
Debit Cash for $4,800Credit Accumulated Depreciation for $12,240Credit Gain on Disposal of Equipment for $4,800Debit Equipment for $17,680To complete the questions above. The answer choices above are:
a) Prepaid Expenses, Equipment Depreciation
b) Rent Expenses, Revenue Receivables
c) debit cash, credit accumulated depreciation, credit gain
d) Supplies, Equipment Depreciation, Prepaid Expenses
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compared to what happens when we use ppp exchange rates, market exchange rates tend to make the magnitude of income differences between rich and poor countries larger.
When using ppp exchange rates, the magnitude of income differences between rich and poor countries is usually smaller compared to what happens when we use market exchange rates.
Why income differences between rich and poor countries is usually small?This is because market exchange rates reflect the value of a country's currency in relation to another country's currency. However, Purchasing power parity (ppp) exchange rates adjust for differences in purchasing power, allowing for more accurate comparisons of living standards across countries.
This means that when using ppp exchange rates, the income gap between rich and poor countries appears smaller because the rates reflect the relative purchasing power of different countries, rather than just the nominal value of their currencies.
In summary, when we use ppp exchange rates, we get a more accurate picture of living standards across countries, which reduces the magnitude of income differences between rich and poor countries.
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after the new deal had been in effect for two years, the u.s. economy
After two years of the New Deal being in effect, the US economy had undergone significant changes, and there were several noticeable improvements.
First of all, there was a significant reduction in the number of banks that failed, as the banking system had been restructured, and new regulations had been put in place to prevent a repeat of the 1929 stock market crash. The government also implemented programs that helped farmers and rural communities, including the Agricultural Adjustment Act, which paid farmers to reduce their crop production to increase prices, and the Rural Electrification Administration, which brought electricity to rural areas. These programs helped to stimulate economic growth in these regions and provided job opportunities to millions of people. Another significant improvement was the establishment of the Social Security Act, which provided retirement benefits to workers and their families. This program helped to alleviate poverty among elderly people and provided a safety net for families who were struggling to make ends meet.
The Works Progress Administration (WPA) was also created during this period, which provided jobs to millions of people and helped to fund numerous public works projects across the country. Overall, the New Deal had a significant impact on the US economy, and although it did not solve all of the problems facing the country, it provided a framework for government intervention in the economy that would be used for decades to come. The New Deal's legacy can be seen in programs such as Social Security, unemployment insurance, and the minimum wage, which continue to benefit millions of Americans today. In conclusion, after two years of the New Deal being in effect, the US economy had undergone significant improvements, and the government's interventions had helped to stimulate economic growth and provide job opportunities to millions of people.
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match the definitions with their correct term or bond feature. - the rate of interest paid on the face value (par value) of the bond. - the bondholder's required rate of return. this is also the internal rate of return on the cash flows received by the bondholder that assumes the investor can reinvest the cash flows received from the bond at this rate. - the period of time over which the bond issuer must continue to pay coupon payments. - the legal document that states the bond contract requirements such as repayment schedules, restrictions, and promises between the issuer of a corporate bond and the purchaser.
In the following question, among the given options on terminology, Coupon rate: "The rate of...the bond, " Required rate of return- "The bondholder's...bond at this rate." Maturity- "The period of time.....coupon payments." Indenture- "The legal document...and the purchaser."
The definitions provided match the following terms or bond features:
Coupon rate: The rate of interest paid on the face value (par value) of the bond.Required rate of return: The bondholder's required rate of return. This is also the internal rate of return on the cash flows received by the bondholder that assumes the investor can reinvest the cash flows received from the bond at this rate.Maturity: The period of time over which the bond issuer must continue to pay coupon payments.Indenture: The legal document that states the bond contract requirements such as repayment schedules, restrictions, and promises between the issuer of a corporate bond and the purchaser.For more such questions on terminology
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a contract in which a party has the option of avoiding or enforcing the contractual obligation is called:
A contract in which a party has the option of avoiding or enforcing the contractual obligation is called: a voidable contract.
What is a voidable contract?
A voidable contract is one in which one or more parties have the option to void or cancel the contract, rendering it unenforceable. In other words, the contract is valid when it is created, but one or more parties have the right to revoke or cancel it under certain conditions.
A voidable contract can be avoided or enforced by one of the parties.
Avoiding: To avoid a contract, the party must exercise the right of rescission or cancellation. A contract can be avoided for a variety of reasons, including fraud, duress, undue influence, misrepresentation, or mistake.
If one party avoids a contract, the other party loses its legal right to enforce the contract's terms. A voidable contract can only be avoided by the party that has the right to avoid it.
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an erroneous decision to assess control risk at excessively high levels can have an adverse effect on:
An erroneous decision to assess control risk at excessively high levels can have an adverse effect on the audit.
What is an erroneous decision?An erroneous decision is a mistake or an incorrect choice that has been made. A decision may be erroneous if it is based on incorrect information or if the information used to make the decision is incorrect.
What is control risk?Control risk is the risk that a material misstatement will not be discovered or prevented by an entity's internal controls. This can occur if the controls are not properly designed or implemented, or if they are overridden or ignored by management. An erroneous decision to assess control risk at excessively high levels can have an adverse effect on the audit because it can lead to an audit opinion that is too low. This means that the auditor may not detect material misstatements in the financial statements, which can have serious consequences for the users of the financial statements. For example, if a company's financial statements are misstated, investors may make incorrect decisions based on those statements, which could lead to financial losses.
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zwick company bought 26,000 shares of the voting common stock of handy corporation in january 2021. in december, handy announced $204,800 net income for 2021 and declared and paid a cash dividend of $4.00 per share on all 203,000 shares of its outstanding common stock. zwick company's dividend revenue from handy corporation in december 2021 would be:
Zwick Company's dividend revenue from Handy Corporation in December 2021 would be $104,000.
Dividend revenue is the revenue that a corporation earns from its investments in other corporations' common stocks, which pay dividends to their shareholders. According to the question, Zwick Company bought 26,000 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy Corporation announced $204,800 net income for 2021 and declared and paid a cash dividend of $4.00 per share on all 203,000 shares of its outstanding common stock.
So, the total amount of dividend that Handy Corporation paid would be:
Total Dividend = Dividend per share × Total shares outstanding
Total Dividend = $4.00 × 203,000
Total Dividend = $812,000
Zwick Company owns 26,000 shares of Handy Corporation, so it would get a portion of this dividend revenue. The dividend revenue that Zwick Company would receive would be:
Dividend Revenue = (Total dividend ÷ Total shares outstanding) × Zwick Company's shares
Dividend Revenue = ($812,000 ÷ 203,000) × 26,000
Dividend Revenue = $4.08 × 26,000
Dividend Revenue = $104,000
Therefore, Zwick Company's dividend revenue from Handy Corporation in December 2021 would be $104,000.
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at cloud kicks sales reps use discounts on the opportunity record to help win sales on products. when an opportunity is won, they then have to manually apply the discount up the related opportunity products. the sales manager has asked if three is a way to automate this time consuming task. what should the administrator use to deliver this requirement?
Flow builder should be used by the administrator.
Describe the flow builder?The business requirement process in Salesforce is automated using the flow builder tool. Similar to Workflow Rule and Process Builder, Salesforce's Flow Builder also has some sophisticated features.
A feature called Flow is available from Salesforce and can be used to automate a number of tasks, including sending emails, leaving comments, sending tailored notifications, and more.The most potent Flow is the name of an automation tool provided by Salesforce.
Similar to Workflow Rule and Process Builder, Salesforce's Flow Builder also has some sophisticated features. Additional elements in the flow builder reduce the amount of code needed to implement the business need through automation.
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