When the common stock currently sells for $100 a share and there are 5,000,000 shares outstanding with the firm's marginal tax rate is 40 percent, the WACC here is 9.7%.
The cost of each element of the company's capital structure must be determined, and each element must then be given a weight based on how much of the total capital structure it makes up in order to calculate the Weighted Average Cost of Capital (WACC).
The WACC can be determined using the following formula, assuming that the company's capital structure only consists of common stock:
WACC = Cost of Equity x Weight of Equity
The cost of equity should be applied since the company's capital structure only consists of common stock. With the help of the Capital Asset Pricing Model (CAPM), we can calculate the cost of equity:
Cost of Equity= Risk-Free Rate + Beta x (Market Risk Premium)
Assume that the stock's beta is 1.2, the risk-free rate is 2.5 percent, and the market risk premium is 6 percent. These figures allow us to determine the cost of equity at:
Cost of Equity = 2.5% + 1.2 x 6% = 9.7%
Next, we need to determine the weight of equity in the company's capital structure. Since the company has only common stock, the weight of equity is 100%.
Weight of Equity = 100%
Finally, we can calculate the WACC as:
WACC = Cost of Equity x Weight of Equity = 9.7% x 100% = 9.7%
Therefore, the WACC for the company is 9.7%.
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which of the following would cause an increase in gdp? group of answer choices an increase in taxes an increase in imports from foreign nations a decrease in exports to foreign nations an increase in new factory construction
An increase in new factory construction would cause an increase in GDP.
What is GDP?
An increase in new factory construction would cause an increase in GDP.Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced in a country during a given time period. GDP is a measure of a country's economic performance and is used to calculate the total size of the economy.The gross domestic product (GDP) is a measure of a country's economic health.
GDP is determined by a variety of variables, including trade, taxes, consumption, and investment, among others. An increase in GDP is important because it indicates a growing economy and improved living conditions for people.Increasing factory construction is an effective strategy for increasing a country's GDP.
New factory construction aids in the creation of new jobs, as well as the expansion of existing ones. The creation of new factories also helps to produce more products and services for export, which boosts the economy by increasing trade and driving economic growth.
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which of the following highlights a firm's spending plan for the purchase of major assets? a. capital budget b. financial surplus budget c. operating budget d. financial allocation budget
A. A capital budget highlights a firm's spending plan for the purchase of major assets.
A capital budget highlights a firm's spending plan for the purchase of major assets. The primary purpose of a capital budget is to help firms allocate their resources and plan for the acquisition of significant assets over the long term. For example, a manufacturing firm may need to purchase new machinery or upgrade its facilities to remain competitive in the market.
The capital budget can assist management in identifying the financing needed to acquire these assets. By outlining how much they will need and when they will need it, firms can plan to raise funds through various channels, such as selling bonds or equity, bank loans, or other methods.
In addition, the capital budget helps to maintain a balance between the amount of money a company invests in long-term assets and the revenue it generates from its operations. This balance ensures that a company can remain financially stable and continue to grow over time. Therefore the correct option is A
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the portion of a firm's profit paid to the owner of one share of its stock would accurately be characterized as:
The portion of a firm's profit paid to the owner of one share of its stock would accurately be characterized as dividend.
The portion of a firm's profit paid to the owner of one share of its stock is known as a dividend. Dividends represent a distribution of the company's earnings to its shareholders. The amount of dividends paid is usually determined by the company's board of directors, and can be issued in the form of cash or additional shares of stock.
Dividends are a way for companies to share their profits with their shareholders, and they are often seen as a sign of financial strength and stability. Companies that consistently pay dividends are generally considered to be more reliable and financially sound than companies that do not.
Dividends can be an important source of income for investors, especially those who rely on their investment portfolio for passive income. However, it is important to note that not all companies pay dividends, and past performance is not a guarantee of future results.
It is also important for investors to consider the tax implications of receiving dividend income, as it may be subject to different tax rates than other types of investment income.
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exercise 8-12a (algo) effect of the disposal of plant assets on the financial statements lo 8-5un company sold office equipment with a cost of $39,920 and accumulated depreciation of $36,626 for $5,010.requiredwhat is the book value of the asset at the time of sale?what is the amount of gain or loss on the disposal?how would the sale affect net income (increase, decrease, no effect) and by how much?how would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much?how would the event affect the statement of cash flows (increase, decrease, no effect) and in what section?
The sale would decrease the amount of total assets shown on the balance sheet by $36,626. The event would affect the statement of cash flows in the investing section.
The book value of the asset at the time of sale is $3,294 ($39,920 - $36,626). The amount of gain on the disposal is $1,716 ($5,010 - $3,294). The sale would increase net income by $1,716. As the proceeds from the sale of the equipment would be reported as a cash inflow, while the equipment's cost and accumulated depreciation would be reported as cash outflows.
The sale of the equipment also decreased the amount of total assets shown on the balance sheet, as the equipment was no longer owned by the company. This would have an impact on the company's financial ratios, such as return on assets, as the denominator (total assets) would decrease.
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if a bond is selling at a discount from its par value, the ytm must be blank the coupon rate. multiple choice question. less than greater than equal to
If a bond is selling at a discount from its par value, the YTM must be blank the coupon rate less than its par value therefore the correct option is A.
In this case, the yield to maturity (YTM) must be less than the coupon rate. This is because the YTM reflects not just the coupon payments but also the capital gains or losses on a bond if held until maturity that result from changes in market interest rates and other factors. In other words, when a bond is selling at a discount,
its coupon rate exceeds its YTM; thus, investors can purchase the discounted bond and earn more income than they would by investing in a comparable investment with similar risk characteristics but with lower coupon payments.
Hence the correct option is A.
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mara raj was hired to serve as chief executive officer of washington retirement home, inc., a corporation that ran the washington retirement home nursing home. when ms. raj took over as ceo, the nursing home had been in financial trouble for decades and only had stayed open because of donations from private foundations and some financial help from the local government. the financial problems became worse while raj was serving as ceo. in addition, the home repeatedly was cited for violations of the state health code at a rate three times the average for the state. billing records and patient medical records were disorganized and financial information was not tracked with the exception of a monthly review of the bank statements. as a result, the home failed to collect over $500,000 owed to it by patients. two patients died under suspicious circumstances and shortly thereafter the nine-member board of directors voted to close the home. several shareholders sued raj, alleging that they would have received more of a payout in the closure of the company if raj had been more diligent as ceo. did raj breach her duties as an officer of the corporation?
It appears that Raj breached her duties as CEO by failing to address the financial and regulatory issues at the nursing home, resulting in harm to patients and loss of potential profits for shareholders.
According to the material given, Mara Raj appears to have violated her responsibilities as CEO of Washington Retirement Home, Inc. She had a responsibility to manage the corporation's business with reasonable care and diligence, including handling funds and assuring compliance with state health codes.
However, financial records were disorganized, patients were not correctly invoiced, and the facility broke state health codes on multiple occasions. The failure to recover over $500,000 due to the home by patients, as well as the suspicious deaths of two patients under her supervision, point to Raj's lack of diligence. Shareholders may be able to sue her for violation of moral obligation.
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consider the following project network and activity times (in weeks): activity a b c d e f g h time 5 3 7 6 7 3 10 8 a. identify the critical path. b. how much time will be needed to complete this project? c. can activity d be delayed without delaying the entire project? if so, by how many weeks? d. can activity c be delayed without delaying the entire project? if so, by how many weeks? e. what is the schedule for activity e?
a) The critical path is A-B-D-F-G-H, which has a total duration of 34 weeks.b) The project will take 35 weeks to complete. C) It cannot be delayed without delaying the project.D) Activity C can be delayed by up to 7 weeks E) The schedule for activity E is week 8-15.
a) The critical path is A-B-D-F-G-H, which has a total duration of 34 weeks. The critical path is the longest path in the project network that includes all the activities that must be completed on time in order for the project to finish on time. In this case, the critical path is A-B-D-F-G-H, which has a total duration of 34 weeks. b) To calculate the total time needed to complete the project, we simply add up the duration of all the activities on the critical path: 5+3+6+3+10+8 = 35 weeks. Therefore, the project will take 35 weeks to complete.
c) Activity D is on the critical path, which means that any delay in this activity will delay the entire project. It cannot be delayed without delaying the project.
d) Activity C is not on the critical path, which means that it can be delayed without delaying the entire project. The maximum delay that can be made on this activity is equal to the slack time, which is the difference between the earliest start time and latest start time of the next activity. In this case, the next activity is D, and its earliest start time is week 8, while its latest start time is week 14. Therefore, activity C can be delayed by up to 7 weeks (14-7) without delaying the entire project.
e) The schedule for activity E can be calculated by finding the earliest start time and earliest finish time for the activity. The earliest start time is equal to the maximum of the earliest finish times of the preceding activities (in this case, activity B), which is week 8. The duration of activity E is 7 weeks, so the earliest finish time is week 15. Therefore, the schedule for activity E is week 8-15.
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a situation in which an employee expresses organizationally desired emotions during interpersonal transactions at work is known as .
A situation in which an employee expresses organizationally desired emotions during interpersonal transactions at work is known as emotional labor.
Emotional labor refers to the effort, planning, and control required to display certain emotions that are appropriate for a particular job or organizational setting.
It involves regulating one's own emotions to meet the expectations of the job and the organization, regardless of how one actually feels.
Employees in a wide range of professions may be required to perform emotional labor, such as customer service representatives, nurses, flight attendants, and hospitality workers.
For example, a customer service representative who is trained to maintain a friendly and helpful demeanor when interacting with customers, even when faced with difficult or unpleasant situations, is performing emotional labor.
Emotional labor can have both positive and negative effects on employees. On the one hand, successfully performing emotional labor can lead to increased job satisfaction, customer satisfaction, and organizational success.
On the other hand, the strain of consistently regulating one's emotions can lead to burnout, emotional exhaustion, and decreased job performance.
Organizations have a responsibility to recognize and support employees who perform emotional labor.
This may include providing training and resources to help employees manage the emotional demands of their jobs, creating a supportive and respectful work environment, and compensating employees fairly for their emotional labor.
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note receivable prefix supply company received a 120-day, 8% note for $84,000, dated april 12 from a customer on account. assume 360-days in a year. question content area a. determine the due date of the note. b. determine the maturity value of the note. fill in the blank 1 of 1$ question content area c. journalize the entry to record the receipt of the payment of the note at maturity. if an amount box does not require an entry, leave it blank. blankaccountdebitcredit blank - select - - select - - select - - select - - select - - select -
A note, also known as a promissory note, is a written pledge to pay a specific sum of money on a future date. A future date is called a maturity date.
What do you mean by maturity of a note?
The maturity date of the paper is the date and time when interest and capital must be paid in full.
The calculation of the maturity date is shown below:
(A) The payment is due 120 days after April 12th. We calculate the delivery date by adding 120 days to April 12:
August 10 =April 12+120 days
As a result, the note's due date is August 10.
( B) The maturity value of the note includes both the principal and the interest. The formula to calculate the interest on a 120-day note at 8% is:
Interest = Principal x Rate x Time
where Rate = 8% / 360 days per year
and Time = 120 days / 360 days per year
Rate = 0.0002222
Time = 0.3333
Interest = $84,000 x 0.0002222 x 0.3333 = $744
The maturity value is the sum of the principal and the interest:
Maturity Value = Principal + Interest = $84,000 + $744 = $84,744
(C) When the note is paid at maturity, we need to record the receipt of the payment. The entry to record the payment would be:
Account Debit Credit
Cash $84,744
Notes Receivable $84,000
Interest Revenue $744
The cash received is equivalent to the note's expiration value, which contains both the principle and interest. To delete the note from the company's records, the notes payable account is debited. Finally, interest collected on the note is credited to the interest income account.
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a company had the following accounts and amounts on december 31. using this information, compute total assets for the company. cash $ 16,400 total equity 31,200 accounts receivable 14,900 services revenue 37,400 equipment 20,900 rent expense 7,400 accounts payable 10,400 wages expense 19,400 $31,300. $35,800. $56,800. $52,200. $37,300.
The total assets of the company are $52,200, using the Cash, Accounts receivable, and Equipment. Thus, option d is correct.
Amount = $ 16,400
Total equity = 31,200
Accounts receivable = 14,900
Services revenue = 37,400
Equipment = 20,900
Rent expense = 7,400
Accounts payable = 10,400
Wages expense = 19,400
To estimate the total assets of the business, we need to add all the assets from the given data. Mathematically,
The total assets = Cash+ Accounts receivable + Equipment
The total assets = $16,400 + $14,900 + $20,900
The total assets = $52,200
Therefore, we can conclude that the total assets of the company are $52,200.
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an electronics manufacturer prides itself on its ethical standards. job candidates are screened based on their past behaviors, top managers work hard to set a good example for employees, and the company has rewards in place for employees who live up to the company's ethical codes. however, after an exceptionally busy year, customers begin to complain that customer service representatives no longer respond to product failures. based on this scenario, how did the organization fail to foster high ethical standards?
The organization failed to foster the high ethical standards as they did not happen to provide regular ethics training.
Ethics trainings are basically designed in order to teach the people how to properly make decisions in some situations where there is an involvement of some ethical component. These include situations in which there are some behaviors, decisions, or some outcomes which can basically be evaluated as right or wrong.
Regular ethical training in companies help ensure that the supervisors and the employees in a proper way. Even though initially good examples were set by the employees of the companies but customer complaints were raised after an year as there were no regular ethical training conducted by the company.
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the possibility that errors in projected cash flows will lead to incorrect decisions is known as .
The possibility that errors in projected cash flows will lead to incorrect decisions is known as forecasting risk.
What is Forecasting risk? Forecasting risk refers to the possibility that errors in projected cash flows will lead to incorrect decisions. A company's ability to predict its future financial position is critical to its success, and the financial forecasting process is often used to evaluate the expected future cash inflows and outflows of a business over a specified time period.
A company's projected cash flows may include sales revenues, expenses, cash inflows, and outflows, among other things. The accuracy of this information is critical because it helps investors and creditors make informed decisions about whether or not to invest in the company or lend it money.
To conclude, forecasting risk refers to the possibility of incorrect decisions resulting from errors in projected cash flows. As a result, it is critical to ensure that a company's financial projections are as accurate as possible.
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what is the present value of a bond that offers a coupon payment of $10 after a year, has a face value of $100 that is also paid after a year, assuming interest rate is 10 percent?
The present value of the given bond is $100.
It is given that a bond offers a coupon payment of $10 after a year, has a face value of $100 that is also paid after a year, and assumes an interest rate of 10 percent.
The present value of a bond can be calculated using the following steps:1. Calculate the present value of the coupon payment:
PV (Coupon) = Coupon Payment / (1 + Interest Rate)
PV (Coupon) = $10 / (1 + 0.10)
PV (Coupon) = $10 / 1.10
PV (Coupon) = $9.09
2. Calculate the present value of the face value:
PV (Face Value) = Face Value / (1 + Interest Rate)
PV (Face Value) = $100 / (1 + 0.10)
PV (Face Value) = $100 / 1.10
PV (Face Value) = $90.91
3. Add the present values of the coupon and face value to find the total present value of the bond:
Total Present Value = PV (Coupon) + PV (Face Value)
Total Present Value = $9.09 + $90.91
Total Present Value = $100
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you purchase a $1000 par value bond with 15 years to maturity, paying a semiannual coupon of 7.5%. the yield to maturity (annual yield) on bonds with comparable risk is 7%. you hold this bond and sell it 5 years later when the yield to maturity (annual yield) on bonds with comparable risk is 10%. what is the change in bond price over the five years?
The answer to this question is that the bond price will decrease by $54.24 over the five years.
A bond is a fixed-income security that pays a fixed amount of interest to the investor every year. These interest payments are commonly known as "coupons." The face value of a bond is the sum that the bond issuer agrees to pay the bondholder on the bond's maturity date.The bond price calculation is based on the coupon rate, yield to maturity, face value, and years to maturity of the bond. You may use these variables to determine the bond's price. If the yield to maturity on bonds with equivalent risk is 7%, and you hold this bond and sell it five years later when the yield to maturity on bonds with comparable risk is 10%, the change in bond price over five years is as follows:Bond price today = (1000/2)/ (1 + 0.07/2)^30 + 1000/(1 + 0.07/2)^30 = $893.94Bond price after 5 years = (1000/2)/ (1 + 0.10/2)^20 + 1000/(1 + 0.10/2)^20 = $839.70Bond price change over 5 years = $893.94 - $839.70 = $54.24Since the yield to maturity rises, the bond's price drops. Therefore, the bond price will decrease by $54.24 over the five years.
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on june 1, 2024, dirty harry company borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $500,000 and a discount rate of 6%. assuming straight-line amortization of the discount, what is the carrying value of the note as of september 30, 2024?
As of September 30, 2024, the carrying value of the note is $493,333.33.
The first step is to calculate the discount on the note, which is the difference between the maturity value and the amount received by the borrower
Discount = Maturity Value x Discount Rate x Time
Discount = $500,000 x 6% x (4/12) = $10,000
The discount is amortized over the life of the note using straight-line amortization. Straight-line amortization means that the same amount of discount is amortized each month.
Monthly amortization = Discount / Number of months
Monthly amortization = $10,000 / 6 = $1,666.67
To calculate the carrying value of the note as of September 30, 2024, we need to subtract the accumulated amortization from the face value of the note
Carrying Value = Face Value - Accumulated Amortization
Carrying Value = $500,000 - ($1,666.67 x 4) = $493,333.33
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the length of time until a bond matures is called the question 10 options: perpetuity. term. maturity. intermediation.
The length of time until a bond matures is called perpetual bonds are comparable to no-growth stocks and shares of preferred stock. The correct answer is A. perpetuity.
A perpetual bond is one that has an indefinite maturity date. Issuers always pay coupons on them. This is an illustration of cash inflows. A similar vein, a share of preferred stock and a no-growth stock both get their values on a stream of inflows of cash known as dividends.
A bond with a perpetual maturity date has no set end date. Coupons are always paid for by the issuer. This serves as an example of cash inflows. In a similar spirit, the dividends, a sequence of cash inflows that give preferred stock and no-growth stocks their valuations. A perpetual bond is one that will soon continue to generate a specific amount of interest income.The issuer may not always be required to redeem the loan in accordance with the terms of the loan arrangement.The price of a perpetual bond may be determined from the present value of a perpetuity.
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assume that one worker in argentina can produce either 20 units of cloth or 2 units of wine, while in chile one worker can produce either 24 units of cloth or 12 units of wine. if argentina transfers 2 workers from wine to cloth and chile transfers 1 worker from cloth to wine, the increase in combined output by those two workers will be
Assuming that one worker in Argentina can produce either 20 units of cloth or 2 units of wine while in Chile one worker can produce either 24 units of cloth or 12 units of wine.
Production Possibility Frontier (PPF) is a curve showing the maximum output rate of two goods that can be generated by an economy if the resources are utilized effectively. In an economy that produces only two goods, every point on the curve represents the highest possible production output of one good for a given production output of the other one. The model presupposes that both goods are generated with a set of fixed resources.
In other words, production possibility frontier is a graphical representation of the combinations of output of two goods that an economy can produce using all its resources effectively. It is the boundary between the combination of goods that can be produced and those that cannot be produced.
In this case, the combined output will be increased by the two workers as follows:Argentina transfers 2 workers from wine to cloth. Thus, the total output in cloth in Argentina will be: 20 × 2 = 40 unitsChile transfers 1 worker from cloth to wine. Thus, the total output in wine in Chile will be: 12 × 1 = 12 unitsThe combined output is therefore: 40 + 12 = 52 unitsTherefore, the increase in combined output by those two workers will be 52 - 0 = 52 units.
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the following profit information was taken from eastside hospital's budget data: static budget $1,200,000 flexible budget $1,000,000 actual results $500,000 what is the total profit variance? (hint: an unfavorable variance is identified by a minus sign.)
In either case, the total profit variance is an unfavorable variance of -$500,000 or -$200,000. The total profit variance can be calculated as the difference between the actual results and the flexible budget, or the difference between the flexible budget and the static budget:
Total Profit Variance = Actual Results - Flexible Budget
Total Profit Variance = $500,000 - $1,000,000
Total Profit Variance = -$500,000
Alternatively:
Total Profit Variance = Flexible Budget - Static Budget
Total Profit Variance = $1,000,000 - $1,200,000
Total Profit Variance = -$200,000
In either case, the total profit variance is an unfavorable variance of -$500,000 or -$200,000.
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a(n) is a certificate signed by a principal and a third party promising to pay in the event the assured suffered damages because an employee fails to perform as agreed.
A Surety bond is a certificate signed by a principal and a third party promising to pay in the event the assured suffered damages because an employee fails to perform as agreed.
Three parties—the principal, the obligee, and the surety—sign a binding contract known as a surety bond. A surety bond is required by the obligee, who is frequently a government agency, as a guarantee against future work performance by the principal, who is typically a business owner or contractor.
The company that extends a credit line to ensure the payment of any claim is known as the guarantor. They offer the obligee a monetary guarantee that the principal will complete their obligations.
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companies use virtualization to do all of the following except: group of answer choices reduce the amount of datacenter floor space used reduce the amount of electricity they consume in their datacenters. reduce the number of applications in corporate datacenters. reduce the number of servers in the datacenters.
Companies use virtualization to do all of the following except: reduce the number of applications in corporate datacenters.
Virtualization is a technology that allows multiple operating systems to run simultaneously on a single machine. By using virtualization, companies can reduce the number of physical servers needed in their data centers, saving on floor space and electricity consumption.Virtualization allows companies to create virtual servers, storage devices, networks, and other IT resources that can be accessed from anywhere, at any time, by any device. It is also used to consolidate applications and reduce the amount of data center floor space used. However, virtualization does not reduce the number of applications in corporate data centers.
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foucault company owns 40000 of the 100000 outstanding shares of mango inc. common stock. during 2018, mango earns 640000 and pays cash dividends of 480000. if the beginning balance in foucaults investment account was 430000, the balance at december 31, 2018 should be
The balance in Foucault's investment account at December 31, 2018, should be $494,000. To determine the balance in Foucault's investment account at December 31, 2018, we need to calculate the amount of income earned and dividends received during the year and adjust the beginning balance accordingly.
The percentage of ownership that Foucault Company holds in Mango Inc. can be calculated as follows:
Percentage ownership = Number of shares owned / Total number of outstanding shares
Percentage ownership = 40,000 / 100,000
Percentage ownership = 40%
Mango Inc.'s net income of $640,000 for the year would be allocated to Foucault Company based on its ownership percentage:
Foucault's share of Mango's net income = Net income x Percentage ownership
Foucault's share of Mango's net income = $640,000 x 40%
Foucault's share of Mango's net income = $256,000
In addition to the net income earned, Foucault Company would have received dividends from Mango Inc.:
Dividends received = Dividends per share x Number of shares owned
Dividends received = $4.80 x 40,000
Dividends received = $192,000
To calculate the balance in Foucault's investment account at December 31, 2018, we can use the following formula:
Ending balance = Beginning balance + Net income - Dividends received
Plugging in the numbers, we get:
Ending balance = $430,000 + $256,000 - $192,000
Ending balance = $494,000
Therefore, the balance in Foucault's investment account at December 31, 2018, should be $494,000.
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rory threatens physical harm to force suki to sell her business, toney tours, inc., to rory for a below-market price. this is group of answer choices a legitimate business tactic. duress. fraud. undue influence.
Rory threatening physical harm to force suki to sell her business, toney tours, inc, to rory for a below-market price is an example of duress.
Duress is a situation in which one party uses threats or coercion to force another party to enter into a contract or take a particular action. In this case, Rory is using physical harm as a threat to force Suki to sell her business to him for a below-market price.
This is clearly a form of duress and is illegal. In business, it is important to engage in fair and ethical practices, and using threats or coercion to gain an advantage is not acceptable. Suki may have legal recourse if she can prove that she was forced to sell her business under duress.
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true or false: retailers sell physical goods produced by someone else and do not offer services, such as dry cleaning, tourist attractions, online bank accounts, or one-hour photo processing.
Retail alludes to the offer of labor and products by an individual or business to an end customer. It is true.
The majority of physical goods are sold by retailers. However, the retailer is typically the manufacturer for retail services like dry cleaning, fast food, tourist attractions, online banking accounts, and hair salons.
In contrast to wholesale, which is the sale of goods and services to corporate or institutional customers, retail is the sale of goods and services directly to consumers without any extra interference. A retailer resells goods in smaller quantities to customers at a profit after purchasing large quantities from manufacturers either directly or through a wholesaler.
Retailers resell goods to customers at a profit after purchasing them from wholesalers, manufacturers, or other retailers.
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which of the following is an example of nonprogrammed decision making? a. kai issues a written reprimand to an employee who routinely arrives late for work. b. robert orders inventory as the stock has reached the reorder point. c. after a fire in her office building, maritza works to find nearby rental space to accommodate her employees. d. jazmine schedules an employee's 12-week maternity leave as per company policies.
"After a fire in her office building, Maritza works to find nearby rental space to accommodate her employees", is an example of nonprogrammed decision making. The right answer is c.
A nonprogrammed decision is one that does not adhere to a predetermined process, and the grounds for such decisions are not clearly stated. The information on which a decision is based is typically inadequate or ambiguous, which is one of an unprogrammed decision's key characteristics.
When dealing with a non-programmed decision-making process, the decision-maker must exercise creativity and good judgement. Since non-programmed decisions need a lot of the decision-participation, maker's they are also known as high-involvement decisions or nonroutine decisions.
The correct answer is option c.
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the european central bank makes a public announcement guaranteeing all coupon payments on outstanding greek government debt and thus reassuring international bond markets. how do you expect the rate of return and price of greek government bonds to respond to this news
The European Central Bank (ECB) is responsible for monetary policy in the Eurozone. Its decision to guarantee all coupon payments on outstanding Greek government debt will reassure the international bond market. As a result, the rate of return and price of Greek government bonds are expected to rise.
A public announcement by the ECB guaranteeing all coupon payments on outstanding Greek government debt will reassure international bond markets. This means that investors who hold Greek government bonds will not have to worry about their payments being defaulted on. As a result, the demand for Greek government bonds is likely to increase, which will cause the price to rise.The rate of return is also likely to rise in response to this announcement.
This is because as demand for Greek government bonds increases, the yield on these bonds will decrease. The yield is the interest rate paid by the government to investors who hold its bonds. When the price of the bond goes up, the yield goes down. This means that investors who buy Greek government bonds after the announcement will earn a lower rate of return than those who bought the bonds before the announcement.
In conclusion, the announcement by the European Central Bank guaranteeing all coupon payments on outstanding Greek government debt will have a positive impact on the rate of return and price of Greek government bonds. The announcement will reassure international bond markets, increasing the demand for Greek government bonds, causing the price to rise and yield to decrease.
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you have just purchased a 5-year frn with a face value of 100 that pays sorf. the interest rate is 2% right now. two years later interest rates have increased to 4%. what is the value of the frn?
The value of the FRN after two years would be $105.82, assuming annual payments, a 4% discount rate, and SOFR.
A drifting rate note (FRN) is an obligation security that has a variable loan cost in light of a basic benchmark rate, like the LIBOR or SOFR. In this situation, you have bought a 5-year FRN with a presumptive worth of $100 that pays SOFR. At the point when you purchased the FRN, the loan fee was 2%.After two years, loan costs have expanded to 4%.
Since the FRN's loan cost is attached to SOFR, its loan fee has likewise expanded. Accordingly, the worth of the FRN will have changed.To decide the worth of the FRN, we really want to work out the current worth of its future incomes utilizing a rebate rate that mirrors the ongoing loan fee climate. We can utilize a monetary mini-computer or bookkeeping sheet program to work out the current worth.
Accepting yearly installments, the FRN would pay $2 each year in interest for the leftover three years. Utilizing a rebate pace of 4%, the current worth of these future incomes is roughly $5.82. Hence, the worth of the FRN following two years would be $105.82.
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lebron james is extremely tall and athletic and, therefore, can clean his house faster than any other one person. however, whenever he spends time cleaning his house he gives up hundreds of thousands of dollars in foregone earnings and so he hires a cleaning service to clean his house for him. which of the following economic principles does this best reflect? group of answer choices the exchange maximum principle the law of absolute advantage the law of comparative advantage this violates all basic economic principles, you should never hire someone to do something that you can do for yourself
The best economic principle that this scenario reflects is the Law of Comparative Advantage.
LeBron James is a professional basketball player with extreme height and athletic ability. He can clean his house more quickly than anyone else on his own. However, when he spends time cleaning his house, he gives up hundreds of thousands of dollars in foregone earnings. As a result, he hires a cleaning service to clean his house. Comparative advantage is a concept in economics that refers to the ability of one entity to produce a good or service at a lower opportunity cost than another entity.
In this scenario, LeBron James can clean his house quickly and efficiently, but he would have to sacrifice hundreds of thousands of dollars in lost earnings to do so. Instead, he hires a cleaning service, which can clean his house at a lower opportunity cost than LeBron would. He can use the time he would have spent cleaning to earn more money in his profession.
Therefore, the scenario reflects the Law of Comparative Advantage.
In conclusion, the Law of Comparative Advantage is the economic principle that best reflects LeBron James hiring a cleaning service to clean his house. It is a concept that highlights the efficiency gains that can be achieved through specialization and trade based on opportunity cost.
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all of the following types of groups are eligible for group life insurance except a)a group of creditors b)labor union groups c)employer group plans d)trade association groups
All of the following types of groups are eligible for group life insurance except a group of creditors. Group life insurance is typically offered to employer group plans, labor union groups, and trade association groups. Option A.
Group life insurance is a type of insurance policy that covers a group of people, usually employees or members of an organization, under a single contract. The coverage is generally provided at a lower cost than individual life insurance policies and is often a part of employee benefits packages.A group of creditors is not eligible for group life insurance because they do not fall under the usual categories of employer groups, labor unions, or trade associations. Creditors are individuals or institutions that lend money, and their relationships with borrowers do not typically involve the provision of employee benefits like group life insurance.
Labor union groups are eligible for group life insurance. These are groups of workers who have organized to protect their rights, negotiate wages, and improve working conditions. Life insurance is often provided as part of the benefits negotiated by labor unions for their members.Employer group plans are eligible for group life insurance. This type of coverage is often offered by employers as a benefit to their employees. The cost is usually lower than individual life insurance policies, making it an attractive option for both employers and employees.
Trade association groups are eligible for group life insurance. These are organizations made up of businesses in a specific industry or trade that come together to advocate for common interests and provide support to their members. Life insurance can be a valuable benefit offered to the members of trade associations. In summary, groups eligible for group life insurance include labor union groups, employer group plans, and trade association groups, while a group of creditors is not eligible for this type of coverage. Option A
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the following are explanations on the resource-based view of the firm. which one is not true? group of answer choices path dependence and complex nature of resources are potential sources that make imitation costly. in the digital information era, generally productive resources of firms can be transferred across companies without cost. resources are distributed heterogeneously across companies. individual resources alone do not confer sustainable competitive advantage.
"In the digital information era, generally productive resources of firms can be transferred across companies without cost" is not true in the resource-based view of the firm. So, correct option is B.
The resource-based view of the firm is a management theory that suggests that a firm's resources and capabilities are the primary source of its competitive advantage.
According to this theory, resources are defined as anything that a firm possesses or controls, which can be used to create value and provide a competitive advantage in the marketplace.
These resources are distributed heterogeneously across companies, meaning that different firms have different resources, capabilities, and competencies, which can lead to competitive advantages.
In addition, the resource-based view of the firm also suggests that not all resources are equally valuable, and individual resources alone do not confer sustainable competitive advantage. To achieve sustainable competitive advantage, a firm's resources must be valuable, rare, inimitable, and non-substitutable.
Furthermore, path dependence and the complex nature of resources are potential sources that make imitation costly. This means that firms with unique and valuable resources can sustain a competitive advantage for a longer time as it would be difficult for their competitors to imitate them.
Therefore, Option B is not true in the resource-based view of the firm as it assumes that productive resources can be transferred across companies without cost, whereas in reality, resources that provide a sustainable competitive advantage are costly to imitate and transfer.
Therefore, option b is correct answer.
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the system of standardized parts made possible the replacing of broken or worn parts instead of replacing the whole product. true false
The given statement "The system of standardized parts made possible the replacing of broken or worn parts instead of replacing the whole product." is true as this system, known as "interchangeable parts," revolutionized manufacturing and production processes.
The concept of interchangeable parts was first introduced in the late 18th century, primarily in the context of firearms production. Prior to this, products were typically made by skilled craftsmen, who would create each part individually, ensuring that they fit together properly. However, this method was time-consuming and expensive, as each part had to be custom-made.The introduction of standardized, interchangeable parts allowed manufacturers to produce components that could be easily swapped out if they became damaged or worn.
The benefits of this system are numerous. First, it allows for more efficient production, as factories can mass-produce standardized components at a lower cost which in turn, leads to more affordable products for consumers. Second, it simplifies the repair process, as customers can replace individual parts without needing to purchase an entirely new product. This not only saves money but also reduces waste, as fewer products are discarded due to irreparable damage.Finally, the system of standardized parts also facilitates innovation, as manufacturers can easily modify or improve upon existing designs by swapping out specific components.
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Answer:
true
Explanation: