the annual per share dividend requirement of a 7%, $90 par value preferred stock that was issued for $85 is:

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Answer 1

The annual per share dividend requirement of a 7%, $90 par value preferred stock that was issued for $85 is $6.30.

What are dividends?

Dividends are payments made to a company's shareholders from its earnings. Dividends are usually paid out in cash or stock, but they may also be distributed in other forms such as property.

The board of directors of a corporation decides the amount of dividend to be paid out to its shareholders.

How to calculate the annual per share dividend requirement of a 7%, $90 par value preferred stock that was issued for $85?

The annual per share dividend requirement of a 7%, $90 par value preferred stock that was issued for $85 is as follows:

First, calculate the annual dividend on the preferred stock by multiplying the par value of the stock by the dividend rate.

7% of the $90 par value = 0.07 x $90 = $6.30 annual dividend per share

Next, divide the annual dividend per share by the purchase price of the preferred stock.

$6.30 / $85 = 0.0741 = 7.41% annual return

Dividend Yield: A stock's dividend yield is the amount of money it pays out in dividends each year relative to its current stock price. It's expressed as a percentage. In other words, it's the annual dividend per share divided by the stock's current market price.

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Answer 2

The annual per share dividend requirement of a 7%, $90 par value preferred stock that was issued for $85 is $6.30.

This dividend requirement can be calculated using the following equation:
Dividend = Par Value x Rate x (Issue Price/Par Value)
Dividend = $90 x 0.07 x ($85/$90)
Dividend = $6.30

In this equation, the par value is the face value of the stock, or the value printed on the stock certificate. The rate is the dividend rate, or the amount that the company must pay the shareholders on an annual basis. The issue price is the amount that the stock was issued for. In this equation, it is the $85 that the preferred stock was issued for.

Using the equation, the dividend is calculated by multiplying the par value, rate, and the ratio of the issue price to the par value. This gives the annual per share dividend requirement of $6.30.
The annual per share dividend requirement of a 7%, $90 par value preferred stock that was issued for $85 is $6.30. This is calculated by multiplying the annual dividend rate (7%) by the par value ($90) and then dividing by the issue price ($85).

Preferred stock is a type of security that gives the holder the right to receive a fixed dividend before any dividends are paid to common stockholders. The dividend is usually expressed as a percentage of the par value of the stock.

In this case, the preferred stock has a par value of $90 and was issued for $85. The annual dividend rate is 7%, so the annual dividend payment per share is 7% x $90 = $6.30.

It's important to note that the dividend rate is based on the par value of the stock, not the issue price. In this case, the stock was issued for less than its par value, so the yield (annual dividend payment divided by issue price) is higher than 7%.

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Related Questions

what is the only real way that the national debt has a chance to be significantly reduced over time, and what are some consequences of so acting to reduce the debt?

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The only real way that the national debt has a chance to be significantly reduced over time is by implementing sound fiscal policies such as decreasing government spending, increasing taxes or a combination of both.

The consequences of reducing the debt can be both positive and negative.National debt refers to the total amount of money that the government owes to its creditors, which may include individuals, banks, or foreign governments. National debt is an accumulation of budget deficits over the years. Debt is different from the budget deficit, which refers to the shortfall between the government’s revenues and expenditures in a given fiscal year.

The only real way to significantly reduce the national debt over time is by implementing sound fiscal policies such as decreasing government spending, increasing taxes or a combination of both. If the government reduces spending and/or increases taxes, it will help to generate revenue that will help to repay the debt. Conversely, if the government does not take steps to reduce debt, it will continue to accumulate, and interest payments will continue to consume a significant portion of the budget.

By reducing debt, the government can free up resources to fund other programs and services that may have been neglected due to budget constraints. Consequences of reducing debt can be both positive and negative. One of the positive consequences is that reduced debt levels can increase investor confidence in the economy, leading to a higher demand for government bonds.

This could help to lower interest rates on borrowing, allowing businesses and individuals to invest and spend more money. However, reducing debt through spending cuts and/or tax increases can lead to economic slowdown, unemployment, and social unrest.

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premier corporation has an roe of 13 percent and a payout ratio of 15 percent. what is its sustainable growth rate? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Premier corporation has an roe of 13 percent and a payout ratio of 15 percent. Its sustainable growth rate is 11.05%

The highest rate of growth that a business or social enterprise may sustain without using more equity or debt to fund expansion is known as the sustainable growth rate (SGR).

The sustainable growth rate (g) of a company can be calculated using the following formula:

g = (ROE x Retention Ratio)

where ROE is the return on equity and the retention ratio is (1 - payout ratio)

Plugging in the given values, we get:

g = (0.13 x (1 - 0.15))

g = 0.1105

Therefore, the sustainable growth rate of Premier Corporation is 11.05% (rounded to two decimal places).

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is the study of how customers derive utility from products or services. a. management b. operations c. economics d. marketing

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The study of how customers derive utility from products or service is Marketing.

Marketing is a business activity that aims to create, promote, and distribute goods and services to satisfy customer needs and desires. Marketing aims to create value for customers through the development of innovative products, effective pricing strategies, and efficient distribution channels.

Marketing involves studying customers' needs and desires, as well as the market and the competition, in order to create products and services that meet those needs and desires.

It also involves promoting those products and services to potential customers through advertising, sales promotions, and personal selling.

Marketing is a critical business activity because it helps businesses understand their customers' needs and desires and develop products and services that meet those needs and desires. It also helps businesses create relationships with customers that can lead to long-term loyalty and profitability.

Marketing is a dynamic field that is constantly evolving as customers' needs and desires change, and businesses must be able to adapt quickly to stay competitive in today's fast-paced business environment.

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THIS IS FOR ECONOMICS (please help)

What is the United States' current status in this business cycle if you were what tools or policies would you implement to bring the economy back into a growth cycle?

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Answer:

CAN YOU RESEATE THIS  QUESTION PSL

Explanation:

payback is frequently used to analyze independent projects because: group of answer choices it considers the time value of money. it produces better decisions than those made using either npv or irr. it is easy and quick to calculate. it is the most desirable of all the available analytical methods from a financial perspective. all relevant cash flows are included in the analysis.

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Payback is frequently used to analyze independent projects because it is easy and quick to calculate.

The payback method is the length of time it takes for a project's net cash inflows to recuperate the initial investment outlay. It is used to assess the length of time it takes for an investment to recoup its original cost.Payback is frequently used to analyze independent projects because it is easy and quick to calculate. It is a simple and easy method to calculate. It involves simply adding up the cash flows and dividing by the initial outflow.

Net present value (NPV) is a financial metric that assesses the current value of future cash flows using a particular discount rate. NPV is utilized in capital budgeting to examine whether a project or investment is feasible depending on its net cash flow. NPV is also used to calculate a company's return on investment (ROI).The given statement 'it produces better decisions than those made using either NPV or IRR.' is not true.

It's one of the cons of the Payback method. IRR is the abbreviation of the Internal rate of return. It is a formula used to estimate an investment's potential profitability. It is frequently used in capital budgeting, investment planning, and other monetary decision-making disciplines to rank investments. The higher the internal rate of return, the more appealing an investment will be.

However, the payback method is still preferred for independent projects because it is easy to calculate and quicker to use. The payback method is frequently used in financial analysis because it considers the time value of money, and it includes all relevant cash flows in the analysis.

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suppose cip holds, the us interest rate is 4%, and the uk interest rate is 6%. which currency has a positive forward premium?

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The currency with a positive forward premium in this scenario is the US dollar.

This is because when CIP holds, the expected future spot rate is equal to the current spot rate. Thus, the current spot rate for the US dollar is 4%, which is lower than the UK interest rate of 6%. As a result, the US dollar will have a positive forward premium.

Covered interest parity (CIP) is an arbitrage relationship between the spot rate, the forward rate, and the interest rates of two different currencies.

It states that if the spot rate and interest rates of two different currencies remain the same, then the forward rate will be the same as the spot rate. In other words, if CIP holds, the expected future spot rate will be equal to the current spot rate.

In this example, the US interest rate is 4% and the UK interest rate is 6%. As the US interest rate is lower than the UK interest rate, the US dollar is expected to appreciate in value compared to the UK pound.

Thus, if CIP holds, the US dollar is expected to have a higher spot rate in the future than it does now, making it a more desirable investment. As a result, the US dollar has a positive forward premium.

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an employee who is angry with the boss but takes the anger out on a coworker instead is exhibiting the defense mechanism sublimation. true false

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An employee who is angry with the boss but takes the anger out on a coworker instead is exhibiting the defense mechanism sublimation" is a false statement.

Defense mechanisms are a mechanism that our brains use to deal with unpleasant or challenging emotions or situations. These systems help us to cope with everyday pressures in a positive and productive way.

Sublimation is a kind of protection mechanism that involves transforming negative emotions or impulses into more socially appropriate and effective behavior. It's an adaptive and mature reaction, and it's typically regarded as a healthier method of dealing with negative emotions.

So, taking out anger on a coworker in the above statement would not be sublimation as it would not involve the transformation of negative emotions into more socially appropriate and effective behavior. It might be an instance of displacement, which is a defense mechanism that involves shifting or transferring one's feelings, desires, or impulses from one person or thing to another person or thing.

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suppose that in the market for new furniture, sales are allocated to the sellers who are willing and able to produce the good at the lowest cost. the market would thereby maximize: group of answer choices producer surplus. consumer surplus. total surplus. deadweight loss.

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The market would thereby maximize consumer surplus as we can see in the second option in the question above.

What is consumer surplus?

Consumer surplus is the difference between the highest amount a consumer is willing to pay for a good and the price of the good. If sales are allocated to sellers who produce the goods at a low price, it would mean that price would be really low.

This would make the difference between the price of the good and the highest price the consumer is willing to pay for the good large. Consumer surplus = willingness to pay – price of the good.

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product.

Total surplus is the sum of consumer surplus and producer surplus.

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THIS IS FOR ECONOMICS (please help)

Michelle promised her niece that she would take her to the movies Friday night after work. At lunch the boss informs Michelle that she needs to stay late and complete and post reports that evening. What are the opportunity costs and trade-offs of Michelle using that evening to complete that report for her boss? What ultimately is the deciding factor?

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Opportunity costs, one of the most crucial ideas in economics, are produced through trade-offs. Your opportunity cost is the choice you do not make when you make a trade-off.

What is the cost of that decision's recognized trade-off?

Every time they spend their resources in one manner and not another, they are forced to make trade-offs. The expense of making a trade-off is known as the opportunity cost.

What does it mean to consider opportunity costs and decision-making trade-offs?

The trade-off is a term used to characterize the courses of action given up in order to undertake the chosen course of action. On the other side, the opportunity cost is the price associated with selecting a particular course of action.

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the statistical reorder point is calculated as the average demand during the delivery lead time plus the desired safety stock. true false

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The given statement "The statistical reorder point is calculated as the average demand during the delivery lead time plus the desired safety stock  is true.

What is Statistical Reorder Point?

The statistical reorder point (ROP) is a solution for identifying how much inventory you'll need to stock in order to avoid a stock out,

ensuring that you have enough stock on hand to fulfill customer orders while minimizing costs.

It incorporates delivery lead time and the amount of stock that should be held in reserve to deal with market variations, which are commonly known as safety stock.

Statistical ROP is calculated by adding the average demand during the delivery lead time plus the desired safety stock.

It is a more sophisticated alternative to traditional reorder point calculations because it considers lead time variability and the probability of stock outs.

The act of using a material handling device to place products or raw materials on storage areas such as racks or shelves.

On a conveyor belt, a robot arm or a human operator might assist in material handling.

Statistical Reorder Point (ROP) is a powerful tool for reducing stock shortages, lowering supply chain expenditures, and boosting operational efficiency.

Therefore, the statement "The statistical reorder point is calculated as the average demand during the delivery lead time plus the desired safety stock." is True.

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the lease term includes a bargain purchase option that is reasonably expected to be exercised, when does the lease term end for accounting purposes?

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The lease term ends for accounting purposes when the bargain purchase option is reasonably expected to be exercised.

The lessee must make an economic decision of either exercising the option or renewing the lease. If the lessee is expected to exercise the option, the lease is considered to have reached its expected termination point and the lease term ends for accounting purposes.

A bargain purchase option is a feature of some lease agreements that allows the lessee to purchase the leased asset at a predetermined price at the end of the lease term.

The lease term ends for accounting purposes when the bargain purchase option is reasonably expected to be exercised. If the lessee is expected to exercise the option, the lease is considered to have reached its expected termination point and the lease term ends for accounting purposes.

This is because the lessee has the right to exercise the option and purchase the asset, which would terminate the lease. If the lessee is not expected to exercise the option, the lease term continues until it is terminated. In that case, the lessee would have to negotiate with the lessor to either renew the lease or terminate it.

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A Keynesian would say that the economy self-corrects so slowly in a recessionary gap in moving the __________ that an activist monetary policy is called for. (hint: how would the economy self-correct from a recession?)group of answer choicesthe ad curve to the leftthe ad curve to the rightthe sras curve to the leftthe sras curve to the right

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A Keynesian would say that the economy self-corrects so slowly in a recessionary gap in moving the AD curve to the right that an activist monetary policy is called for.

A recessionary gap refers to a condition in which an economy's real Gross Domestic Product (GDP) is lower than its long-term potential level. As a result, the economy experiences high unemployment rates and decreased consumption and investment, which are typically associated with recession.

The activist monetary policy: As a result, Keynesian economists argue that the government should take an activist monetary policy in order to stabilize the economy. The objective of this policy is to increase aggregate demand (AD) through a variety of measures that are intended to increase consumption and investment in the economy. Therefore, A Keynesian would say that the economy self-corrects so slowly in a recessionary gap in moving the AD curve to the right that an activist monetary policy is called for.

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would marx agree that higher wages (such as those brought about by a minimum wage) would solve the issues he is discussing? give evidence.

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Marx may not agree that higher wages like those created by a minimum wage would resolve the issues he is discussing.

This is because Marx believed that the working class would never attain true freedom or justice without a radical change in society, such as the overthrow of the capitalist system. He argued that workers were exploited because they were forced to sell their labor to capitalists in order to survive, and that capitalists appropriated the surplus value created by workers.

Marx also believed that the existence of the working class depended on the perpetuation of capitalism, which was ultimately a contradiction because capitalism depended on the exploitation of workers. Marx's solution to this was to abolish capitalism and establish a socialist system in which the means of production were owned and controlled by the working class, and workers received the full value of their labor. In this system, the working class would be able to realize their full potential and achieve true freedom and justice.

Therefore, it is unlikely that Marx would support the idea that higher wages like those brought about by a minimum wage would resolve the issues he is discussing, as they would not fundamentally change the nature of the capitalist system.


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lenders that do not securitize the mortgage loans they originate but retain the loans on their books are referred to as

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Lenders that do not securitize the mortgage loans they originate but retain the loans on their books are referred to as portfolio lenders.

What are Portfolio lenders?

A portfolio lender is a lender who offers loans that are kept on the lender's balance sheet rather than being sold to the secondary market. This type of lender typically lends only to individuals who fit a certain set of criteria, such as those with excellent credit or a low loan-to-value (LTV) ratio on their property.

In other words, Portfolio lenders hold the mortgage loans they issue rather than selling them to a third party, thereby generating a consistent flow of interest income for themselves. Lenders that hold onto loans as part of their investment portfolio are called portfolio lenders.

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which of the following is not essential for the successful implementation of an abc system? multiple choice question. a cross-functional team should be created to design and implement the abc system. top managers must support the abc system. top managers must design the abc system. top managers should ensure that abc data is linked to how employees are evaluated and rewarded.

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The option that is not essential for the successful implementation of an ABC system is that "top managers must design the ABC system."

This is because while top management support is critical in implementing an ABC system, they do not have to be the ones to design it. This question is a multiple-choice question, and the options include:A cross-functional team should be created to design and implement the ABC system.

Top managers must support the ABC system.Top managers must design the ABC system.Top managers should ensure that ABC data is linked to how employees are evaluated and rewarded.The implementation of an ABC system requires teamwork, and so the cross-functional team should be created to design and implement the ABC system.

The team will include members from different departments who will work together to develop the system.Top management support is essential in implementing the ABC system. Their support shows that the project is a priority and can help convince other employees to adopt the new system.

The option stating that "top managers should ensure that ABC data is linked to how employees are evaluated and rewarded" is necessary since the ABC system allows for more accurate cost accounting and should impact how employees are evaluated and rewarded.

Therefore, the option that is not essential for the successful implementation of an ABC system is that "top managers must design the ABC system."

jamal earns $160,000 per year and josephina earns $80,000 per year. they both pay the same price to buy the identical automobile and each pays $1,600 in sales tax. in relation to their relative incomes, this is an example of a

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As Jamal and Josephina have different income but pays the same amount of sales tax for the identical automobiles, in relation to their relative incomes, this is an example of a regressive tax. Therefore, the correct option is C.

Jamal earns $160,000 per year and Josephina earns $80,000 per year. They both pay the same price to buy the identical automobile and each pays $1,600 in sales tax. In relation to their relative incomes, this is an example of a regressive tax. This is an example of a regressive tax because they both pay the same amount of sales tax ($1,600), regardless of their income.

A regressive tax is a tax system in which the tax rate falls as the taxable amount rises. It is a tax system in which the proportion of income that people of lower incomes pay in taxes is higher than the proportion of income that people of higher incomes pay in taxes.The sales tax system is usually regressive because it is the same percentage regardless of the taxpayer's income level. For example, if two individuals, one making $100,000 per year and the other making $50,000 per year, buy a car for $20,000, each will pay the same amount of sales tax.

As both Jamal and Josephina pay the same sales tax irrespective of their income, therefore, sales tax is regarded as regressive tax. Option C is the correct answer.

Note: The question is incomplete. The complete question probably is: Jamal earns $160,000 per year and Josephina earns $80,000 per year. They both pay the same price to buy the identical automobile and each pays $1,600 in sales tax. In relation to their relative incomes, this is an example of a a) marginal tax. b) proportional tax. c) regressive tax. d) progressive tax.

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Government's role in a market economy is ____

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to stabilize the economy and provide public goods and services etc

The government's role in a market economy is to regulate, promote competition, and provide public goods and services.

What is a market economy?A market economy is a system in which businesses, consumers, and the government work together to determine the prices and production of goods and services. The government's role in a market economy is to establish laws, regulations, and standards that provide for consumer protection and ensure the proper functioning of markets.

Markets are allowed to function freely in a market economy, and prices are determined by supply and demand. The government is responsible for ensuring that the market system operates efficiently and effectively by enforcing laws and regulations that prohibit anticompetitive activities such as price-fixing, collusion, and monopolization.

What are some examples of the government's role in a market economy?The government's role in a market economy includes the following:

Establishing laws and regulations that protect consumers, workers, and the environmentProviding public goods and services such as roads, schools, and parksPromoting competition by regulating monopolies and anticompetitive activitiesProviding subsidies and tax incentives to encourage economic growth and developmentRegulating markets to ensure that they are functioning effectively and efficiently

The government's role in a market economy is critical because it ensures that businesses operate fairly, consumers are protected, and markets are efficient. The government's role in a market economy varies by country, and it is up to the government to determine what level of involvement is necessary to ensure that markets operate efficiently and effectively.

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which of the following drivers simultaneously increases value while lowering cost? multiple choice availability of complements economies of scale innovation superior customer service

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Answer: The answer is economies of scale.

Explanation:

Economies of scale are the driver that simultaneously increases value while lowering cost. When a business increases production, it can spread its fixed costs over a larger number of units, reducing the average cost per unit. This results in economies of scale, which can lead to increased value for customers (in the form of lower prices or better quality) while also reducing costs for the business. The other drivers listed - availability of complements, innovation, and superior customer service - can increase value for customers, but they may not necessarily lower costs for the business.

Economies of scale occur when a company is able to increase its production and efficiency, which simultaneously increases value while lowering cost.

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which scheduling method ensures the development of a regular and continuous pattern without gaps or nonadvertising periods?

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The flighting method of scheduling ensures that a regular and continuous pattern is developed without gaps or non advertising periods.

Flighting is a method of scheduling advertising that alternates between operating a regular schedule of runs and stopping all runs altogether. When advertising is running, it's referred to as "flighting," and when it stops, it's called "hiatus."

The generally believed notion that any gap in a product's marketing will impede its sales is in direct opposition to flighting as an advertising tactic. According to research and accepted knowledge, continuously airing advertisements is a successful strategy for persuading customers to purchase a good or service. Recency theory, which holds that advertising is most effective when viewed right before a customer makes a decision and lessens with time, is compatible with this tactic.

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last year, julie johnson bought one share of common stock for $950. during the year, julie received a $47.50 dividend. earlier today, she sold the stock for $988. what rate of return did julie earn on her investment?

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Julie's total return on her investment can be calculated as the sum of the dividend received and the difference between the sale price and the purchase price of the stock:

Total return = Dividend + (Sale price - Purchase price)

Total return = $47.50 + ($988 - $950)

Total return = $47.50 + $38

Total return = $85.50

Julie's rate of return can be calculated by dividing her total return by her initial investment and expressing it as a percentage:

Rate of return = (Total return / Initial investment) x 100%

Rate of return = ($85.50 / $950) x 100%

Rate of return = 0.09 x 100%

Rate of return = 9%

Therefore, Julie earned a rate of return of 9% on her investment.

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true or false: if the auditor does not receive a confirmation letter from a client customer after requesting a response, she can call the customer to follow up on the confirmation.

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True, if the auditor does not receive a confirmation letter from a client customer after requesting a response, she can call the customer to follow up on the confirmation.

Confirmation is a written or oral statement issued by an auditor or other authorized personnel of a company or a client's client (such as a customer, vendor, or lender) verifying the authenticity of a financial or non-financial transaction. Confirmations are most commonly used in the context of an audit engagement to confirm accounts receivable or accounts payable balances, loans or other liabilities, inventory, and the like.

The auditor should be proactive in seeking confirmation from third parties. If the auditor does not receive confirmation from a client's customer, vendor, or other third parties, she must follow up with the third party to obtain the information necessary to complete the audit work. A follow-up request should be made, in writing or by telephone, if the auditor does not receive a reply from a third party within a reasonable time frame.

If the auditor cannot obtain the confirmation after diligent follow-up attempts, she must consider the possibility of a misstatement in the related account balance, transaction, or disclosure when evaluating the financial statements' fairness.

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you observe a one-year discount us treasury bond in the market with the following characteristics: face value of $100 and price of $91. what is the implied one-year interest rate?

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The one-year interest rate implied by a one-year discount U.S. Treasury bond with a face value of $100 and a price of $91 is 9%.

Treasury bonds are a form of government debt security that is issued by the United States Department of the Treasury. Treasury bonds are an example of debt financing. The U.S. government provides a bond with a fixed interest rate for a specific period of time to raise funds for various projects.

Face value is the amount that the bond will be worth when it reaches maturity.

The price of the bond, on the other hand, is the amount of money that an investor is willing to pay for it before it reaches maturity.

It is determined by market forces of demand and supply.

Implied interest rate = (face value – bond price)/bond price* 100

= (100-91)/91 * 100

= 9.89,  which is equal to 9% after rounding.

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janet receives $100 with the stipulation that she must split it any way she wants with her friend evelyn. what is the smallest amount of money evelyn must receive such that she will judge the transaction to be fair and not reject the offer?

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As per the stipulation, the smallest amount of money Evelyn must receive such that she will judge the transaction to be fair and not reject the offer is $50.

When there is a stipulation like this, it's important to consider the perspective of the person who is receiving the smaller portion of the money. In this case, that person is Evelyn.

We need to find the minimum amount of money that Evelyn would consider fair, so that she does not reject the offer.

One way to approach this is to use the concept of "equal shares." If Janet and Evelyn were to split the $100 equally, they would each receive $50. If Janet were to offer Evelyn anything less than $50, it would likely be perceived as unfair and may result in Evelyn rejecting the offer.

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a $25,000 increase in consumer spending affects gdp by multiple choice question. $25,000. less than $25,000. more than $25,000.

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A $25,000 increase in consumer spending affects GDP by "more than $25,000

Consumer spending, government spending, investments, and net exports are all factors that contribute to GDP.A $25,000 increase in consumer spending affects GDP by more than $25,000. This is due to the multiplier effect, which is a macroeconomic concept that refers to the impact that an initial change in spending has on overall economic activity. It's essentially a way of estimating how much of an impact a single dollar of spending will have on the broader economy.

When people or firms spend money, the person or firm who received that money spends some of it, and that person or firm who received the money in turn spends some of it. As a result, the initial spending creates a ripple effect that leads to more spending and higher GDP.

Therefore, the correct option is that "more than $25,000" is the correct answer.

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an industry whose average total cost curve shifts upward as the industry expands and shifts downward as the industry contracts is known as a(n) industry.

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An industry whose average total cost curve shifts upward as the industry expands and shifts downward as the industry contracts is known as a "decreasing-cost industry."

What is a decreasing-cost industry.?

In a decreasing-cost industry, as the industry expands and the total output increases, the per-unit cost of production decreases due to various factors such as economies of scale, lower input costs, and better technology.

This makes it easier for firms to enter the industry and compete, which leads to further expansion and a downward shift in the average total cost curve. On the other hand, if the industry contracts, the per-unit cost of production increases, which leads to a shift upward in the average total cost curve, making it more difficult for firms to operate and compete in the industry.

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who does the board ultimately hold responsible for establishing an erm framework and for managing risks faced by the organizatio

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The board ultimately holds the Chief Executive Officer (CEO) responsible for establishing an Enterprise Risk Management (ERM) framework and for managing risks faced by the organization.

Enterprise Risk Management (ERM) Framework is the systematized methodology that organizations use to manage risk. The ERM Framework entails a thorough understanding of the organization's goals and objectives, as well as the risks that could impede their achievement. It involves evaluating the organization's internal and external environment, identifying possible events that may influence the organization's success, and addressing those risks in a structured and coordinated manner through a risk management program.

ERM's goal is to help an organization achieve its objectives by putting in place an efficient risk management system that protects it from unexpected losses or events that could harm it. As a result, the board of directors of an organization is held responsible for establishing the ERM Framework and managing the risks that the organization faces. The chief executive officer (CEO) is also responsible for ensuring that the organization's operations adhere to the ERM Framework and that the organization's risk management policies and practices align with its goals and objectives.

A CEO, or Chief Executive Officer, is the senior executive of an organization, corporation, or agency. They are in charge of managing the company's operations and making strategic decisions. The CEO serves as the company's public face and primary spokesperson. They are ultimately responsible for the company's performance and must work with the board of directors to ensure that the company's vision and goals are achieved.

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on january 1, year 1, milton manufacturing company purchased equipment with a list price of $28,000. a total of $2,200 was paid for installation and testing. during the first year, milton paid $3,300 for insurance on the equipment and another $610 for routine maintenance and repairs. milton uses the units-of-production method of depreciation. useful life is estimated at 100,000 units, and estimated salvage value is $4,400. during year 1, the equipment produced 12,000 units. what is closest to the amount of depreciation for the year? (do not round intermediate calculations.) multiple choice $3,096 $3,565 $4,020 $3,492

Answers

Answer:

$3,096

Explanation:

To calculate the depreciation for the year using the units-of-production method, we need to first calculate the depreciation rate per unit of production.

Depreciation rate per unit = (Cost - Salvage value) / Estimated total units of production

= ($28,000 + $2,200 - $4,400) / 100,000

= $25.80 per unit

Then, we can calculate the depreciation expense for the year by multiplying the depreciation rate per unit by the actual units produced during the year:

Depreciation expense = Depreciation rate per unit x Units produced during the year

= $25.80 x 12,000

= $309,600

However, we need to adjust this amount for the other expenses incurred during the year. The total expenses incurred during the year were:

Installation and testing: $2,200

Insurance: $3,300

Maintenance and repairs: $610

Total expenses = $2,200 + $3,300 + $610 = $6,110

Adjusted depreciation expense = Depreciation expense - Total expenses

= $309,600 - $6,110

= $303,490

Therefore, the closest answer choice to the amount of depreciation for the year is $3,096.

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one way of achieving cost savings by sharing activities among business units is to apply economies of

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One way of achieving cost savings by sharing activities among business units is to apply economies of scale.

What is economies of scale?

Economies of scale is a concept that refers to the cost advantages that companies can achieve when they produce goods or services on a larger scale, resulting in a reduction in the cost per unit of production. The term is widely utilized in microeconomics and managerial accounting, and it has significant implications for businesses of all sizes.

For instance, businesses may reap significant benefits when they adopt economies of scale. They may achieve cost reductions, which will translate into a lower cost per unit of production, allowing them to generate more profit or sell their products at a lower price to consumers.

Economies of scale is one way of achieving cost savings by sharing activities among business units.

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if the financial statements cannot be relied upon because they contain one or more material departures from gaap, what type of opinion will the auditor issue?multiple choicequalified opiniondisclaimer of opinionadverse opinionunqualified opinion

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The correct option is A, if the financial statements cannot be relied upon because they contain one or more material departures from gaap, qualified opinion.

Financial statements are formal documents that provide a summary of a company's financial activities and performance over a specific period of time. These statements are typically prepared by accountants or financial professionals and are intended to provide shareholders, investors, creditors, and other interested parties with a clear understanding of the company's financial health.

The three main types of financial statements are the balance sheet, income statement, and cash flow statement. The balance sheet provides a snapshot of a company's financial position at a specific point in time, including its assets, liabilities, and equity. The income statement summarizes a company's revenues and expenses over a specific period of time, and the cash flow statement provides information about the company's cash inflows and outflows.

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Complete Question:

if the financial statements cannot be relied upon because they contain one or more material departures from gaap, what type of opinion will the auditor issue?multiple choice

A). qualified opinion

B). disclaimer of opinion

C). adverse opinion

D). unqualified opinion

manny, a single taxpayer, earns $65,400 per year in taxable income and an additional $12,040 per year in city of boston bonds. what is manny's current marginal tax rate for 2022

Answers

Manny's current marginal tax rate for 2022 is 22%.

The marginal tax rate depends on the tax bracket in which Manny's taxable income falls. For the year 2022, the tax brackets and rates for single taxpayers are:

10% on taxable income from $0 to $10,27512% on taxable income from $10,275 to $41,77522% on taxable income from $41,775 to $91,57524% on taxable income from $91,575 to $191,45032% on taxable income from $191,450 to $416,70035% on taxable income from $416,700 to $418,85037% on taxable income over $418,850

Manny's taxable income is $65,400, which falls in the 22% tax bracket. However, we also need to take into account the $12,040 he earns in city of Boston bonds. Municipal bond interest is generally tax-exempt at the federal level, but it may be taxable at the state and local level. Since Manny lives in Boston, we need to check if the city of Boston imposes a tax on municipal bond interest.

According to the City of Boston website, interest on bonds issued by the City of Boston is exempt from Boston income tax. Therefore, Manny's taxable income for Boston purposes remains at $65,400.

Using the tax brackets and rates for federal income tax, we can calculate Manny's marginal tax rate as follows:

The first $10,275 of taxable income is taxed at 10%, for a tax of $1,027.50.The next $31,500 of taxable income ($41,775 - $10,275) is taxed at 12%, for a tax of $3,780.The remaining $23,625 of taxable income ($65,400 - $41,775) is taxed at 22%, for a tax of $5,197.50.Manny's total federal income tax liability is $9,005.

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