A simple interest calculation provides a useful estimate of what compound interest will be if the term is short (option d).
What is simple interest and compound interest?Simple interest is when the amount invested grows at a linear rate. When an amount earns a compound interest, the amount invested grows at an exponential rate. Thus, an account that earns a compound interest grows at a faster rate than an account that earns a simple interest.
The formula that can be used to determine the future value of an account when there is a simple interest is:
Future value = amount invested + interest earned
Interest earned = amount invested x time x interest rate
The formula that can be used to determine the future value of an account when there is a compound interest is:
FV = P(1 + r)^n
Where:
P = amount invested r = interest rate n = number of yearsIt is only in the first year that an account that earns a simple interest and an account that earns a compound interest would have the same value.
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why microeconomics is useful in business decision making? Explain
Explanation: The study of microeconomics helps the decision makers to analyze and determine how the productive resources are allocated for various goods and services. It also helps in solving the producers' dilemma of what to produce, how much to produce and for whom to produce. <33
Explanation:
The study of microeconomics helps the decision makers to analyze and determine how the productive resources are allocated for various goods and services. It also helps in solving the producers' dilemma of what to produce, how much to produce and for whom to produce.
Tonya Fairfield, an attorney, traveled to Washington D.C. for a case. Because of delayed flights from the West Coast, her travel lasted all day. When she arrived at to her hotel late at night, she was exhausted. She got to her room and realized she had left her cell phone in the taxi cab. She called the front desk and spoke to Susan, the front desk manager. Susan told Ms. Fairfield not to worry and to get a good night's sleep. Susan then spent the next hour tracking down the cab driver. The next morning Ms. Fairfield received complimentary room service with scones, a cup of coffee, a flower in a vase, and her cell phone. This incident could be classified as:
a basic service factor
a satisfaction service factor
performance service factor
an excitement service factor
The incident that has to do with the description that has being provided here is one that would be classified as: satisfaction service factor. Option 2
What is a satisfaction service factor?A satisfaction service factor refers to the degree to which the service provided meets or exceeds customer expectations. In this case, Ms. Fairfield had a problem with her phone being left in the taxi, and the front desk manager Susan took initiative to track down the cab driver and return the phone to her. Furthermore, the hotel provided her with complimentary room service which exceeded her expectations. This led to Ms. Fairfield being satisfied with the service provided by the hotel.
A basic service factor is the minimum level of service that is expected. Performance service factor refers to how well the service is delivered. An excitement service factor is an unexpected or unique aspect of the service that creates a sense of excitement or surprise.
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1. Normally, when buying a business, the seller:
does not sign a restrictive covenant.
notifies creditors 10 days prior to the sale of the business.
cannot assign his credit arrangements with suppliers to the buyer.
has little formal role or obligation in preparing documents and information necessary to the sale.
Answer:
C). cannot assign his credit arrangements with suppliers to the buyer.
Explanation:
As per the question, the 'seller is not able to allocate his credit adjustments associated with the suppliers to the potential buyer.' The seller must pay off and resolve his credit arrangements completely before selling off his property to the buyer. If he/she fails to do so, the buyer can sue him legally because the contract offers the asset or property to the buyer free of any previous credit adjustments with the seller. Thus, any such allocation would be considered illegal and cause damage to the seller and his image. Hence, option C is the correct answer.
Why do intetest, dividends to preferred, and the dividends to common are the exemptions to the general rule of the percent of the sales method?
They are regarded as nonoperating income or costs, interest, dividends to preferred stock, and dividends to common stock are exceptions to the general rule of the percent of sales approach.
What is the sales method?Generally, Interest, dividends to preferred stock, and dividends to common stock are exemptions to the general rule of the percent of sales method because they are considered as nonoperating income or expenses.
These items are not directly related to the operation of a business, and therefore, are not included in the calculation of the percent of sales method.
This method is used to determine the expected amount of income or expenses based on a company's sales revenue, and nonoperating items such as interest and dividends are not considered to be part of a company's core operations.
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A simple interest calculation provides a useful estimate of what compound interest will be if ___________. a. the dollar amount is small, b. the dollar amount is large, c. the term is long, d. the term is short
The answer: c. the term is long is the wrong answer
Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 10 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued:
Cash Paid Interest Expense Amortization Balance
January 1, Year 1 $901
December 31, Year 1 $60 $90 $30 931
December 31, Year 2 60 93 33 964
December 31, Year 3 60 96 36 1,000
Required:
a. What was the bond's issue price?
b. Did the bond sell at a DISCOUNT or a PREMIUM? and How much was the premium or discount?
c. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2?
Answer:
Santa Corporation
a. The bond's issue price = $901 (PV of all cash inflows).
b. The bond sold at a DISCOUNT. The discount was $99 (equal to total amortization).
c. Bonds payable at the end of:
Year 1 = $931
Year 2 = $964
Explanation:
a) Data and Calculations:
Face value of bond = $1,000
Coupon rate = 6%
Interest payment = Annually on December 31
Bond's maturity period = 3 years
Annual market rate of interest = 10%
N (# of periods) 3
I/Y (Interest per year) 10
PMT (Periodic Payment) 60
FV (Future Value) 1000
Results
PV = $900.53 = $901
Sum of all periodic payments $180.00
Total Interest $279.47
Schedule
Date Cash Paid Interest Expense Amortization Balance
January 1, Year 1 $901
December 31, Year 1 $60 $90 $30 931
December 31, Year 2 60 93 33 964
December 31, Year 3 60 96 36 1,000
Suppose you have a credit card bill of $1,275 for the month of October. If you pay the full balance before your bill is due, how much will you pay in interest?
Note that according to the above prompt, no interest will be paid on the credit card bill.
What is the rationale for the above response?You will not be charged interest if you pay the entire balance before the payment is due.
Because interest is usually imposed on outstanding balances, if the entire debt is paid before the due date, there will be no unpaid balance and hence no interest to pay. Pay the balance before the due date to prevent interest charges and late penalties. If the balance is not paid in full, interest will be levied on the unpaid balance, which may rapidly pile up and make the credit card debt more expensive.
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Wang co manufactures and sells a single product that sells for 640 per unit; variable costs are 352 per unit. Annual fixed costs are 985500. Current sales volume is 4390000. Management targets an annual pretax income of 1315000. Compute the dollar sales to earn the target pretax net income
Answer:
Break-even point (dollars)= $5,112,222.22
Explanation:
Giving the following information:
Selling price= $640
Unitary variable cost= $352
Fixed costs= 985,500
Desired profit= $1,315,000
To calculate the sales in dollars to be sold, we need to use the following formula:
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
contribution margin ratio= (640 - 352) / 640= 0.45
Break-even point (dollars)= (985,500 + 1,315,000) / 0.45
Break-even point (dollars)= $5,112,222.22
Incredible Solutions issued a $1,120-par-value bond that is convertible at $28 per share. The current stock price is $30 per share. Calculate the conversion ratio and conversion value. Should bondholders exercise the conversion option?
If Incredible Solutions issued a $1,120-par-value bond that is convertible at $28 per share.
1. The conversion ratio is 40:1 and conversion value is $44,800.
2. Yes bondholders should exercise the conversion option.
How to find the conversion ratio and conversion value?1. Conversion ratio:
Conversion ratio =Common stock /Convertible per share
Conversion ratio=$1120/$28
Conversion ratio=40 shares
So,
The ratio is 40:1.
Conversion value:
Conversion value = Common stock price c
Conversion value
Conversion value=$1120×40
Conversion value=$44,800
2. Yes bondholders should exercise the conversion option.
Therefore the conversion ratio is 40:1 and the conversion value is $44,800.
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How to choose scented candles online?
Smythe Co. makes furniture. The following data are taken from its production plans for the year.
Direct labor costs $5,530,000
Hazardous waste disposal costs 615,000
Chairs Tables
Expected production 210,000 units 23,000 units
Direct labor hours required 268,000 DLH 16,400 DLH
Hazardous waste disposed 600 pounds 600 pounds
Required:
Determine the hazardous waste disposal cost per unit for chairs and for tables if costs are assigned using a single plantwide overhead rate based on direct labor hours.
Answer:The hazardous waste disposal cost per unit for chair and table respectively is $2.83 and $1.54
Explanation:
From the question, If cost are assigned at a rate based on direct labor hours, then the total disposal cost for chairs is
total disposal cost for chairs =Direct labor hours required for chairs/Total Direct labor hours required for both furniture x Hazardous waste disposal costs
268,000/ 268,000+16,400 x 615,000
= 268,000/ 284,400 x 615,000
===$595,535.865
and for tables for is
total disposal cost for tables=Direct labor hours required for tables /Total Direct labor hours required for both furniture x Hazardous waste disposal costs
16,400 / 268,000+16,400 x 615,000
= 16,400 / 284,400 x 615,000
===$35,464.135
The hazardous waste disposal cost per unit for chair and table respectively is
For chair ====total disposal cost for chairs/ Expected production of chairs
$595,535.865/210,000 units= $2.83
For table ====total disposal cost for table/ Expected production oftable
$35,464.135/23,000 units=$1.54
Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:Standard Quantity Standard Priceor Rate Standard CostDirect materials 1.5 pounds $ 5.25 per pound $ 7.88Direct labor 0.5 hours $ 15.00 per hour $ 7.50Variable manufacturing overhead 0.5 hours $ 3.50 per hour $ 1.75During March, the following activity was recorded by the company:The company produced 4,800 units during the month.A total of 10,700 pounds of material were purchased at a cost of $29,960.There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,140 pounds of material remained in the warehouse.During March, 2,600 direct labor-hours were worked at a rate of $15.50 per hour.Variable manufacturing overhead costs during March totaled $4,750.The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for March is:
Answer:
$7,140 unfavorable
Explanation:
The computation of the materials quantity variance for March is shown below;
We know that
Material Quantity Variance = Standard rate × ( Standard Quantity for actual production - Actual Quantity Used)
=$5.25 × ([4,800 units × 1.5 pounds per unit] - (10,700 - 2,140)
=$5.25 × (7,200 pounds - 8,560 pounds)
= $7,140 unfavorable
An annual report should be shared
with all
A. citizens
B. owners
C. lawyers
g Choose the best response for each of the following statements. a. When the Federal Reserve makes an open market purchase, the Fed: multiple choice 1 sells bonds to the public, which decreases the money supply. buys bonds from the public, which decreases the money supply. buys bonds from the public, which increases the money supply. sells bonds to the public, which increases the money supply. b. If the Fed wants to increase interest rates, it should make an (Click to select) . This would (Click to select) the money supply and achieve the increase in interest rates.
Answer and Explanation:
a. In the case when the federal reserve would make an open market purchase so this means that the bonds are purchased from the public and due to this it rise the money supply
b. In the case when fed wants to rise the rate of interest it should make the open market sale due to this it decrease the money supply and the rate of interest would be increased
This is the impact when the transaction could taken place
Asia Importers. Caisy Wong is the owner of a small catalog company that imports a variety of clothes and houseware from several Asian countries and sells them to its customers over the Web and by telephone through a traditional catalog. She has read about the convergence of voice and data and is wondering about changing her current traditional, separate, and rather expensive telephone and data services into one service offered by a new company that will supply both telephone and data over her Internet connection. What are the potential benefits and challenges that Asia Importers should consider in making the decision about whether to move to one integrated service
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Justin has the utility function U = xy, with the marginal utilities MUx = y and MUy = x. The price of x is $2, the price of y is py, and his income is 40. When he maximizes utility subject to his budget constraint, he purchases 5 units of y.
(a) What must be the price of y and the amount of x consumed? (1 marks).
(b) Prove that this allocation follows the equi-marginal principle (2 marks).
(c) What would be the new bundles of x, y if Px was $3 (2 marks).
Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 40% debt and 60% equity; however, the CEO believes that the firm should use more debt. The risk-free rate, rRF, is 4%; the market risk premium, RPM, is 6%; and the firm's tax rate is 40%. Currently, SSC's cost of equity is 15%, which is determined by the CAPM. What would be SSC's estimated cost of equity if it changed its capital structure to 50% debt and 50% equity
Answer:the Cost of equity when the capital structure is changed to 50% debt and 50% equity is 16.546%..
Explanation:
Let the Beta be x
Cost of equity (CAPM) = risk free rate + Beta (Market risk premium)
15% = 4% + x (6%)
15%-4% = x (6%)
11% = 6%x
x = Beta =11%/6%=1.83
Debt Equity ratio
= Debt /Equity
=40% ÷ 60%
= 0.667
Beta levered = Beta unlevered [1 + (1 - tax rate) Debt equity ratio]
1.83= Beta Unlevered [1 + (1 - 40%) × 0.667)]
1.83= Beta Unlevered [1 +60% x 0.667)
1.83= Beta Unlevered (1.4002)
Beta unlevered = 1.83/1.4002=1.3069
Now when debt =50% and equity = 50%
The Beta at new required capital structure would be
Debt Equity ratio
= Debt ÷ Equity
=50% /50%
= 1
Beta levered = Beta unlevered (1 + (1 - tax rate) Debt equity ratio)
Beta levered = 1.3069 (1 + (1 - 40%) × 1)
Beta levered = 1.3069(1 +0.6
Beta levered = 2.09104
CAPM Cost of equity = risk free rate + Beta ( Market risk premium)
Cost of equity = 4% + 2.09104 (6%)
Cost of equity = 13.04%
Therefore, the Cost of equity when the capital structure is changed to 50% debt and 50% equity is 16.546%.
The following is TRUE about Inventory: A. Firms increase inventory because more inventory means more movement of materials B. Firms increase inventory because there are price discounts or transportation discounts associated with ordering in larger quantities C. Firms increase inventory because there is an opportunity cost to holding inventory D. Firms increase inventory because more inventory sitting for longer periods of time present more opportunities for damage, errors, rework, theft, and obsolescence E. Firms increase inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures
Answer:
The answer is "Option C".
Explanation:
Firms could already retain excessive stock in a position to take account of lower pricing provided by suppliers and to fill a full truckload, which lowers shipping costs per unit. Anything else, holding a lot of inventory makes no sense; therefore, firms increase inventory as there is an economic benefit to storage.
-- What occurred when countries did not pay off their debts? What criticism was
leveled against this?
Answer:
if i had to guess war
Explanation:
i mean what else would happen, war is all that happens in this world now a days
Appalachian Ski Shop signs a three-month note payable to help finance increases in inventory for the winter ski season. The note is signed on October 1, 2022 in the amount of $34800 with annual interest of 8%. What is the adjusting entry to be made on December 31, 2022 for the interest expense accrued to that date, assuming that no entries have been made previously to accrue interest? Interest Expense 464 Interest Payable 464 Interest Expense 232 Interest Payable 232 Interest Expense 696 Interest Payable 696 Interest Expense 2784 Note Payable 2784
Answer:
Interest Expense 696 Interest Payable 696
Explanation:
Based on the information given the appropiate adjusting journal entry to be made on December 31, 2022 for the interest expense accrued to that date, If we assumed that no journal entries have been made previously to accrue interest is:
December 31, 2022
Dr Interest Expense $696
Cr Interest Payable $696
($34800*8%*3/12)
(To record interest expense accrued)
Which of the following benefits is offered by sales promotion tools? A) Sales promotion tools are more authentic and credible to buyers than advertising. B) Sales promotion tools can reach prospects who prefer to avoid mass media. C) Sales promotion tools are typically an indirect form of "soft-sell," so customers welcome them. D) Sales promotion tools provide an incentive that gives value to the consumer. E) Sales promotion tools allow buyers personal choices and encourage them to respond directly.
Answer:
D) Sales promotion tools provide an incentive that gives value to the consumer.
Explanation:
Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.
Generally, a marketing mix is made up of the four (4) Ps;
1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.
2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.
3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.
4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.
One of the benefits offered by sales promotion tools is that, sales promotion tools provide an incentive that gives value to the consumer because it is infused with concession, contribution or inducement. Some examples of sales promotion tools includes the following; coupons, free samples, installment sales, premium offers, discount, exchange scheme, etc.
Accounting and subsequently violates the covenant not to complete, what equitable remedy is available to big three accounting inc
Injunction equitable remedy is available to Big Three Accounting, Inc. Thus option D is correct.
What is Accounting?Accounting is the act of documenting a business's monetary operations. All transactions are compiled, examined, and reported to factor in making, regulatory bodies, and tax collection organizations as part of the accounting cycle.
A lawsuit for an injunction is brought to court when someone infringes any contract clause relating to not competing. An equitable relief is where a court directs a party to carry out a certain act or desist from doing so. Therefore, option D is the correct option.
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After passing his CPA exam, Mohammad is hired by Big Three Accounting, Inc. Part of his contract includes a covenant not to compete. If, after working for three years, Mohammad retires from Big Three Accounting and subsequently violates the covenant not to compete, what equitable remedy is available to Big Three Accounting, Inc.?
a. Rescission O b. Specific Performance O c. Reformation O d. Injunction
Lincoln Corporation, a U.S. corporation, owns 50% of the stock of a controlled foreign corporation (CFC). At the beginning of the year, Lincoln's basis in its CFC stock was $100,000. The CFC's current-year income was $1 million, $600,000 of which was subpart F income. The CFC has no global intangible low-taxed income, paid no foreign income tax and distributed no dividends. How much current taxable income must Lincoln report as a result of its ownership of the CFC
Answer:
$300,000
Explanation:
Calculation to determine How much current taxable income must Lincoln report as a result of its ownership of the CFC
Using this formula
Taxable income=Subpart F income * Ownership percentage
Let plug in the formula
Taxable income=$600,000*50%
Taxable income=$300,000
Therefore The amount of current taxable income that Lincoln must report as a result of its ownership of the CFC is $300,000
Which of the following products is most likely to create a negative externality when you use it?
The products that is most likely to create a negative externality when you use it is: (D) A person travelling using a commercial airline.
What is negative externality?Negative externality can be defined as the way in which engaging in a transaction tend to have negative effect or cause harm to a third party
A person travelling using a commercial airline is considered a negative externality due to the negative impact the consumption of the goods have on the third party.
Therefore we can conclude that the correct option is D.
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The complete question is:
Which of the following is most likely to create a negative externality?
(A) A person subscribing to cable television service.
(B) UPS switching to electric delivery trucks.
(C) You attending Western Washington University.
(D) A person travelling using a commercial airline.
(E) A person eating pizza.
Laws passed by legislatures are called
Ordinances
Precedent laws
Statutory laws
Common laws
Answer:
yes they are called ordinance which is used to govern a group of people
Beginning investments should be?
Answer:
Investment Beginner
There are plenty of investments for beginners, including mutual funds and robo-advisors.
…
Here are six investments that are well-suited for beginner investors.
401(k) or employer retirement plan.
A robo-advisor.
Target-date mutual fund.
Index funds.
Exchange-traded funds (ETFs)
Investment app
Explanation:
Suppose that there are two types of houses for sale: those with solid foundations and those with cracked foundations. In all other respects, the two types of houses are identical. Houses with solid foundations are worth $200,000, while those with cracked foundations are worth $200,000 minus the $20,000 to fix the crack, or $180,000. Sellers know which type of house they have, but buyers cannot detect whether the foundation has a crack. Suppose that 80 percent of the houses for sale have a solid foundation and 20 percent of the houses for sale have a cracked foundation. If buyers are risk-neutral and know the that 80 percent of the houses for sale have a solid foundation while 20 percent have a cracked foundation, then how much will buyers be willing to pay for a house
Answer:
$196,000
Explanation:
Calculation to determine how much will buyers be willing to pay for a house
Amount willing to pay=(0.80)($200,000) + (0.20)($180,000)
Amount willing to pay=$160,000+$36,000
Amount willing to pay=$196,000
Therefore The amount that the buyers will be willing to pay for a house is $196,000
explain why and how management is dynamic
Answer:
Management has framed certain principles, which are flexible in nature and change with the changes in the environment in which an organization exits.
Which of the following stocks had the highest trading price at the end of the day?
the answer is D, I had the same problem
The correct option is D. Search Engine had the highest trading price at the end of the day. Because the low is 470.56 which highest among all of them.
What is stock?A stock is a type of instrument that denotes the holder's ownership stake in the issuing company and is typically traded on stock markets. To raise money to run their businesses, corporations issue stock.
Thus, the highest trading price at the end of the day is because search engine makes a high of 477.65 in the day which is the highest among all of them.
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Flaherty Electric has a capital structure that consists of 70 percent equity and 30 percent debt. The company's long-term bonds have a before-tax yield to maturity of 8.4 percent. The company uses the DCF approach to determine the cost of equity. Flaherty's common stock currently trades at $45 per share. The year-end dividend (D 1) is expected to be $2.50 per share, and the dividend is expected to grow forever at a constant rate of 7 percent a year. The company estimates that it will have to issue new common stock to help fund this year's projects. The flotation cost on new common stock issued is 10 percent, and the company's tax rate is 40 percent. What is the company's weighted average cost of capital, WACC? A. 10.30% B. 10.73% C. 7.48% D. 9.89% E. 11.31%
Answer:
Option B is correct
WACC= 10.73%
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund
WACC = (Wd×Kd) + (We×Ke)
After-tax cost of debt = Before tax cost of debt× (1-tax rate)
Kd-After-tax cost of debt
Ke-Cost of equity
Wd-Weight f debt
We-Weight of equity
After tax cost of debt = (1-T)× Before-tax yield on debt
= (1-0.4)× 8.4
=5.04%
Cost of equity = Do/P(1-F) + g
D= Year 1 dividend= 2.50
P- price of stock = 45, F= Flotation cost= 10%, g= growth rate= 7%
Cost of equity =( 2.50/[(1-0.07)× 45]) + 0.07= 13.2%
WACC = (Wd×Kd) + (We×Ke)
We= 70%, Wd= 30%
WACC= (13.2%× 70%) + (5.04%× 30%)
= 10.73%
WACC= 10.73%