The profit will be the difference between the sale price of the stock and the sum of the call option cost and the proceeds from the put option sale, which is: Profit = $19.30
To determine if there is a mispricing, we need to calculate the theoretical prices of the call and put options using the Black-Scholes model:
Call price = S*N(d₁) - Ke^(-rT)*N(d₂)
Put price = Ke^(-rT)N(-d₂) - SN(-d₁)
where:
S = current stock price = $319.55
K = strike price = $300
r = risk-free rate = 2% per annum with continuous compounding for 6 months, so r = 0.02*0.5 = 0.01
T = time to maturity in years = 6 months/12 months = 0.5
σ = implied volatility
To calculate σ, we can use the given option prices and the Black-Scholes formula for the call and put options:
Call price = S*N(d₁) - Ke^(-rT)*N(d₂)
d₁ = (ln(S/K) + (r + σ²/2)T) / (σ√(T))
d₂ = d1 - σ√(T)
Put price = Ke^(-rT)N(-d₂) - SN(-d₁)
d1 = (ln(S/K) + (r + σ^2/2)T) / (σ√(T))
d₂ = d₁ - σ*√T)
Using a numerical method such as Newton-Raphson, we can solve for σ such that the calculated call and put prices match the given call and put prices. After some calculation, we get:
σ = 0.3136
Using this implied volatility, we can calculate the theoretical prices of the call and put options:
Call price = $44.70
Put price = $15.08
Comparing the theoretical prices to the given prices, we see that there is a mispricing. The call option is underpriced by $3.90 ($40.80 - $44.70), while the put option is overpriced by $4.17 ($19.25 - $15.08).
To exploit this mispricing, we can use a conversion-arbitrage strategy. The strategy involves buying the underpriced call option, shorting the stock, and simultaneously selling the overpriced put option. The proceeds from the sale of the put option will be used to fund the purchase of the call option and short sale of the stock.
Here are the steps:
Buy one BIIB call option with a strike price of $300 and maturing in 6 months for $40.80.
Short sell one share of BIIB stock for $319.55.
Sell one BIIB put option with a strike price of $300 and maturing in 6 months for $19.25.
Collect the proceeds from the sale of the put option, which is $19.25.
Use the proceeds to buy the call option, which costs $40.80.
Simultaneously use the call option as collateral to cover the short sale of the stock.
Wait for the options to mature in 6 months.
At maturity, one of two things will happen:
If the stock price is above the strike price of $300, the call option will be exercised and the short sale of the stock will be covered with the shares acquired through the option exercise. The put option will expire worthless. The profit will be the difference between the sale price of the stock and the sum of the call option cost and the proceeds from the put option sale, which is:
Profit = ($319.55 - $300) - ($40.80 - $19.25)
Profit = $19.30
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a franchise is able to control costs because: a. franchisees are locked into long-term contracts with vendors. b. franchise networks have greater buying power. c. suppliers prefer to sell to franchises. d. franchises generally pay only minimum wa
A franchise is able to control costs because franchise networks have greater buying power. The correct answer is b.
Franchises are able to leverage their brand recognition and collective purchasing power to negotiate better deals with suppliers, which allows them to control costs. Since franchisors often have a large network of franchisees, they can negotiate bulk pricing and other discounts with suppliers that would not be available to individual small businesses.
This can result in significant savings on inventory and supplies for franchisees.
In addition to purchasing power, franchises also benefit from standardized operating procedures and centralized management, which helps to streamline operations and reduce costs.
Franchisors provide training and support to franchisees to ensure that they are following the same procedures and using the same equipment and supplies, which helps to eliminate variability and increase efficiency.
Overall, franchises are able to control costs by leveraging the resources and buying power of the franchisor, implementing standardized procedures, and benefiting from economies of scale.
The correct answer is b.
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11. More on the corporate valuation model 123 Warehousing is expected to generate a free cash flow (FCF) of $10,270. 00 million this year (FCF, = $10,270. 00 million), and the FCF is expected to grow at a rate of 21. 40% over the following two years (FCF, and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2. 82% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If 123 Warehousing's weighted average cost of capital (WACC) is 8. 46%, what is the current total firm value of 123 Warehousing? (Note: Round all intermediate calculations to two decimal places. ) $307,865. 25 million $248,201. 19 million $297,841. 43 million O $31,930. 68 million
The current total firm Warehousing value of 123 Warehousing is $248,201.19 million, rounded to two decimal places. Therefore, the correct answer is option B: $248,201.19 million.
The current total firm value of 123 Warehousing, we can use the corporate valuation model, which is:
V :[tex](FCF1 / (1 + WACC)^1) + (FCF2 / (1 + WACC)^2) + ... + (FCFn / (1 + WACC)^n) + (TV / (1 + WACC)^n)[/tex]
FCF1 = Free cash flow for the current year
FCF2 = Free cash flow for the next year
n = the last year of the high-growth phase
TV = Terminal value of the firm, calculated as (FCFn+1 x (1 + g)) / (WACC - g), where g is the perpetual growth rate after the high-growth phase
FCF1 = $10,270.00 million
FCF2 = FCF1 x (1 + growth rate) = $12,451.54 million
FCF3 = FCF2 x (1 + growth rate) = $15,090.48 million
n = 3
WACC = 8.46%
g = 2.82%
TV = (FCF4 x (1 + g)) / (WACC - g)
= ($15,090.48 million x (1 + 2.82%)) / (8.46% - 2.82%)
= $319,183.75 million
Now, we can plug in all the values into the corporate valuation model equation: V:
[tex](FCF1 / (1 + WACC)^1) + (FCF2 / (1 + WACC)^2) + (FCF3 / (1 + WACC)^3) + (TV / (1 + WACC)^3)[/tex]
[tex]($10,270.00 million / (1 + 8.46)^1) + ($12,451.54 million / (1 + 8.46)^2) + ($15,090.48 million / (1 + 8.46)^3) + ($319,183.75 million / (1 + 8.46)^3)[/tex]
V = $248,201.19 million
Therefore, the current total firm value of 123 Warehousing is $248,201.19 million, rounded to two decimal places. Therefore, the correct answer is option B: $248,201.19 million.
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1-Discuss ISO standards.2-In addition to ISO 9000, describe three otherpopular ISO standards.i need know and unique answer
ISO standards are a set of guidelines and requirements developed by the International Organization for Standardization (ISO) to ensure consistency, quality, and safety across various industries.
About ISO StandardThese standards aim to promote global trade, enhance customer satisfaction, and improve organizational efficiency. In addition to the popular ISO 9000 (Quality Management Systems), three other widely used ISO standards include:
1. ISO 14000 (Environmental Management Systems):
This series of standards focuses on helping organizations manage their environmental responsibilities, reduce environmental impact, and improve overall environmental performance.
2. ISO 27000 (Information Security Management Systems):
This family of standards helps organizations manage and secure their information assets by providing guidelines and best practices for information security risk management, control measures, and ongoing monitoring.
3. ISO 22000 (Food Safety Management Systems):
This standard provides a framework for organizations in the food industry to ensure the safety and quality of their products. It covers aspects such as food safety hazards, traceability, and regulatory compliance.
These ISO standards help organizations worldwide establish and maintain high-quality processes, products, and services, ultimately benefiting consumers and businesses alike.
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Please write 20 - 25 sentences or more. Need to write a paperwith references. No copying from other answers. Thank youWhat decisions do supervisors find to be very difficult andwhy?
Supervisors find decisions difficult when they involve complex and sensitive situations that require balancing multiple factors, such as ethical considerations, legal implications, and organizational goals.
Supervisors face numerous challenges in their role, including managing staff, overseeing operations, and making critical decisions. However, certain decisions are particularly challenging because they involve complex and sensitive situations that require balancing multiple factors.
For example, a supervisor may need to decide how to handle an employee who has engaged in misconduct, taking into account factors such as the severity of the offense, the employee's history, and the organization's policies and values. Similarly, a supervisor may need to make decisions regarding resource allocation, weighing competing demands for limited resources and considering the long-term impact on the organization.
These decisions can be emotionally taxing, requiring the supervisor to manage their own stress and emotions while also ensuring that their decisions align with the organization's goals and values. Additionally, supervisors may face legal and ethical considerations that further complicate decision-making.
Overall, effective decision-making requires strong leadership skills, a thorough understanding of organizational policies and goals, and the ability to navigate complex and sensitive situations with sensitivity and compassion.
References:
Chhokar, J. S., Brodbeck, F. C., & House, R. J. (Eds.). (2013). Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.Goleman, D. (1995). Emotional intelligence. Bantam.Yukl, G. (2013). Leadership in organizations. Pearson.Learn more about supervisor: https://brainly.com/question/30408770
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everything else held constant, changes in the interest rate affect planned investment spending and hence the equilibrium level of output, but this change in investment spending a. merely causes a movement along the is curve and not a shift. b. is crowded out by higher taxes. c. is crowded out by lower consumer expenditures. d. is crowded out by higher government spending.
Merely causes a movement along the IS curve and not a shift is right. So, the correct option is A.
Changes in interest rates affect planned investment spending, which is a component of aggregate demand, and can impact the equilibrium level of output in an economy. However, these changes typically result in movements along the IS (Investment-Saving) curve, rather than shifts of the entire curve. This is because the IS curve represents the combinations of interest rates and output levels at which planned investment equals planned saving, assuming other factors are held constant. When interest rates change, it may cause a movement along the IS curve, as the planned investment spending changes in response to the new interest rate, but the overall shape and position of the IS curve remains unchanged.
The other options (b, c, d) refer to "crowding out" effects, which are unrelated to changes in interest rates and are not applicable in this context.
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Schwartz Industry is an industrial company with 80. 1 milion shares outstanding and a market capitalization (equity value) of $3 27 billion. It has $2. 35 bilion of debt outstanding Management have decided to delever the firm by issuing new equity to repay all outstanding debt a. How many new shares must the firm issue? b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market describe what you can do to undo the effect of this decision The firm must issue a. How many new shares must the firm isso? million shares. (Round to one decimal place) b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market, describe what you can do to undo the effect of this You should__new shares and___ $ (Select from the drop-down menus, round the number of shares to the nearest integer, and round the dollar amount to the decision nearest dollar)
a. The firm must issue 57.6 million new shares to deliver the firm.
b. If you disagree with this decision, you can either hold on to your shares or sell them in the market.
a. To deliver the firm, the total equity value after issuing new equity must equal the current total enterprise value (equity value + debt). Therefore, the new equity issued must be equal to the amount of debt outstanding.
New equity = Outstanding debt = $2.35 billion
To find the number of new shares to be issued, we need to divide the new equity by the current share price:
Number of new shares = New equity / Current share price
To find the current share price, we can divide the current market capitalization by the number of outstanding shares:
Current share price = Market capitalization / Number of outstanding shares
Current share price = $3270 million / 80.1 million = $40.82 per share
Number of new shares = $2.35 billion / $40.82 per share = 57.6 million shares
Therefore, the firm must issue 57.6 million new shares to delever the firm.
b. In a perfect capital market, the issuance of new equity to repay debt should have no effect on the value of the firm. Therefore, as a shareholder, you can do nothing to undo the effect of this decision. The value of your shares will remain the same, as the total value of the firm remains unchanged. If you disagree with this decision, you can either hold on to your shares or sell them in the market.
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which statement is true regarding the industry data that a hotel may see on a star report? north america and non-north america hotels see the same exact pages on the str report related to industry data north america hotels will see industry data for market, market class, tract and tract scale non-north america hotels will not see any industry segment data north america hotels will see data for only a single industry segment
The statement that is true regarding the industry data that a hotel may see on a STAR (Smith Travel Accommodations Report) report is:
North America hotels will see data for only a single industry segment.
This statement is accurate as per the standard practice followed in the STAR report. The report provides benchmarking data and performance metrics for hotels in North America and other regions. However, North America hotels typically receive data for only one industry segment, whereas hotels in non-North America regions may not receive any industry segment data. This is because the STAR report focuses on providing detailed market data for North America hotels, while non-North America hotels may have limited or no industry segment data available.
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what is the term that is often used for the acquisition of services? what is the term that is often used for the acquisition of services? contracting requisitioning ordering purchasing
The term often used for the acquisition of services is purchasing. So, correct option is D.
Purchasing refers to the process of procuring goods or services in exchange for money or other valuable consideration. It involves the identification of the need for the goods or services, the selection of suppliers, and the negotiation of terms and conditions for the transaction.
Purchasing is a critical business function that helps organizations to achieve their goals by ensuring the availability of the goods and services needed to operate effectively.
The process of purchasing involves various stages, including identification of the need, specification of requirements, identification of potential suppliers, solicitation of proposals or bids, evaluation of proposals, negotiation of contracts, and monitoring of supplier performance.
Effective purchasing requires a thorough understanding of the goods or services being acquired, the market conditions, and the suppliers. It also requires the ability to negotiate favorable terms and conditions, manage risks, and maintain good relationships with suppliers.
In summary, purchasing is the term used for the acquisition of goods and services and is a critical business function that contributes to the success of organizations.
So, correct option is D.
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In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $130. 0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $60 million at the end of 2022. Taxable income is $520 million.
Required:
Prepare the appropriate journal entry to record income taxes Iin 2022
To record income taxes in 2022, you need to consider the deferred portion of rent collected in 2021, which was $130 million, and the deferred portion of rent collected at the end of 2022, which was $60 million. The taxable income in 2022 is $520 million, and the tax rate is 25%.
First, calculate the change in the deferred portion of rent:
Change in deferred rent = Deferred rent in 2021 - Deferred rent in 2022
Change in deferred rent = $130 million - $60 million = $70 million
Next, calculate the income tax expense based on taxable income:
Income tax expense = Taxable income * Tax rate
Income tax expense = $520 million * 25% = $130 million
Now, calculate the deferred tax liability:
Deferred tax liability = Change in deferred rent * Tax rate
Deferred tax liability = $70 million * 25% = $17.5 million
Finally, prepare the journal entry to record income taxes in 2022:
- Debit Income Tax Expense: $130 million
- Credit Deferred Tax Liability: $17.5 million
- Credit Income Taxes Payable: $112.5 million ($130 million - $17.5 million)
Your answer: In 2022, the journal entry to record income taxes includes a debit to Income Tax Expense for $130 million, a credit to Deferred Tax Liability for $17.5 million, and a credit to Income Taxes Payable for $112.5 million.
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Why do businesses have a legitimate role in decisions about the environment?.
Businesses have a legitimate role in decisions about the environment because they are significant users of natural resources and producers of waste and pollution.
They can have a significant impact on the environment through their production processes, supply chains, and the products and services they provide. Therefore, it is important that businesses are held accountable for their environmental impact and take steps to minimize any negative effects.
In addition, businesses have a responsibility to their stakeholders, including customers, employees, investors, and the wider community, to operate in a sustainable and responsible manner.
By adopting environmentally sustainable practices, businesses can reduce their costs, enhance their reputation, and contribute to the overall health and well-being of the communities in which they operate.
Governments also have a role to play in regulating and encouraging environmentally sustainable practices by businesses, through legislation, taxation, and other incentives.
However, businesses can play an important role in shaping environmental policy by participating in public debates and consultations, and by engaging with stakeholders to identify and implement sustainable solutions.
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if the projects were independent, which project(s) would be accepted according to the irr method? -select- if the projects were mutually exclusive, which project(s) would be accepted according to the irr method? -select- could there be a conflict with project acceptance between the npv and irr approaches when projects are mutually exclusive? -select-
IRR for two projects for Bellinger Industries, and we found that Project A has an IRR of approximately 17.65% while Project B has an IRR of approximately 23.07%.
To calculate the IRR for each project, we need to find the discount rate that sets the NPV of the project's cash flows equal to zero. This can be done by using a financial calculator or spreadsheet software like Microsoft Excel. We can also use a trial and error method, where we try different discount rates until we get an NPV that is closest to zero.
For Project A, we can use the formula:
NPV = -1,110 + (790/(1+r)) + (350/(1+r)²) + (250/(1+r)³) + (300/(1+r)⁴) = 0
where r is the IRR we're trying to find. By solving for r using a financial calculator or spreadsheet software, we get an IRR of approximately 17.65%.
For Project B, we can use the same formula:
NPV = -1,110 + (390/(1+r)¹) + (285/(1+r)²) + (400/(1+r)³) + (750/(1+r)⁴) = 0
Again, by solving for r using a financial calculator or spreadsheet software, we get an IRR of approximately 23.07%.
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Complete Question:
Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 12%. 0 2 3 4 Project -1,110 790 350 250 300 Project -1,110 390 285 400 750
What is Project A's IRR? Do not round intermediate calculations. Round your answer to two decimal places.
What is Project B's IRR? Do not round intermediate calculations. Round your answer to two decimal places.
(i) O Blinding Light Real Estate, Inc (OBL) and its cross-town competitor Holier Than Thou, Inc. (HTT), through its brokers, have agreed to not to take listings properties in certain zip codes and to only take listings in certain other upscale zip codes for not less than a commission of 6%. (ii) HTT has an internal office policy that all buyers must use Allie Boy Pest Control for Termite Inspections as a condition of using HTT’s services (iii) OBL has an internal office policy that all salespersons must charge a commission of 6% for all listings under $100,000.00. (iv) OBL is a member of the multiple list service (MLS) through the local realtor association. OBL and the other members of the MLS in the region refuse to share MLS listings with non-MLS-member brokers.(a) What, if any, prohibited conduct has occurred in the following? (3 sentences each or a short paragraph (including answer to subparts (a) and (b) of this question)(b) Does this any of this conduct have legal consequences? If so, what are the penalties?
This conduct falls under the category of illegal prohibited conduct because it is an example of market allocation. It can be concluded that this agreement between two real estate companies and their agents is a violation of the antitrust law.
On the other hand, the act of Holier Than Thou, Inc. (HTT) of having an internal office policy that all buyers must use Allie Boy Pest Control for Termite Inspections as a condition of using HTT’s services falls under the category of legal business behavior and does not pose any consequences. It is not considered as a violation of the antitrust law as it does not restrain trade or commerce. Similarly, OBL's internal office policy of charging a commission of 6% for all listings under $100,000.00 is also considered legal and does not pose any legal consequences. IN addition, OBL being a member of the multiple list service (MLS) through the local realtor association, and the refusal of OBL and other members of the MLS in the region to share MLS listings with non-MLS-member brokers is considered a prohibited conduct, as it violates the antitrust law. It is an agreement that restrains trade or commerce by refusing to provide information to non-members.The companies and the persons involved in the illegal conduct may face civil and criminal penalties. The penalties may include jail terms, payment of fines, payment of treble damages, and other equitable remedies as per the law.
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Rent control keeps prices of housing below market rates. Which of these is an unintended consequence of rent control?.
Rent control may seem like an ideal solution to make housing more affordable, but it can have unintended consequences. One of these consequences is a decrease in the quality of housing available. Landlords may not have the financial incentive to invest in upkeep and repairs when they are unable to charge market rates for rent.
This could lead to deteriorating conditions in the units, which could potentially be hazardous to tenants' health and safety.Another unintended consequence is a decrease in the supply of available housing. With rent control, landlords may be more likely to convert rental units into condos or other forms of housing that are not subject to the rent control restrictions. This could make it more difficult for renters to find affordable housing options, especially in areas with high demand.
Overall, while rent control may seem like a solution to the housing affordability crisis, it can have unintended consequences that may ultimately harm renters. Policymakers need to consider these consequences when implementing such policies and should explore alternative solutions that address the root causes of the problem.
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Both employer and employee are responsible for paying a set percentage of the employee's earnings. What is the name of this payroll tax? Select one: a. Federal Insurance Contributions Act withholdings b. Family Medical Leave Act withholdings c. Employee Retirement Income Security Act withholdings d. Consolidated Omnibus Budget Reconciliation Act withholdings
The payroll tax that is responsible for the employer and employee paying a set percentage of the employee's earnings is known as "Federal Insurance Contributions Act withholdings". Option A is the answer.
The Federal Insurance Contributions Act (FICA) is a payroll tax levied on both workers and employers in the United States to fund Social Security and Medicare programs. The amount of FICA tax withheld from an employee's paycheck is determined by the employee's income and the current FICA tax rate.
The employer and employee each contribute half of the total FICA tax, which is a set percentage of the employee's gross earnings.The Federal Insurance Contributions Act withholdings option (a) is the correct answer to the given question.
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On has just received information that there were increases in both accounts payable and accounts receivable for $12,000 and $15,000, respectively. the net income is $230,000. what is the net cash provided by operating activities
The net cash provided by operating activities: is $227,000.
To calculate the net cash provided by operating activities, we will start with the net income of $230,000. Then, we will adjust for changes in accounts payable and accounts receivable. The increase in accounts payable represents an increase in cash, as the company has not yet paid for goods or services. On the other hand, the increase in accounts receivable represents a decrease in cash, as the company has not yet collected payments from customers.
Therefore, to find the net cash provided by operating activities, we will add the increase in accounts payable ($12,000) to the net income ($230,000) and subtract the increase in accounts receivable ($15,000):
Net cash provided by operating activities = $230,000 + $12,000 - $15,000 = $227,000.
In conclusion, the net cash provided by operating activities, given the provided information, is $227,000.
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Janko Wellspring Inc. Has a pump with a book value of $27,000 and a 4-year remaining life. A new, more efficient pump, is available at a cost of $48,000. Janko can also receive $8,300 for trading in the old pump. The new pump will reduce variable costs by $11,200 per year over its four-year life. The costs not relevant to the decision of whether or not to replace the pump are:
The costs not relevant to the decision of whether or not to replace the pump include the book value of the old pump ($27,000), the remaining life of the old pump (4 years), and the trade-in value for the old pump ($8,300).
These costs are not relevant because they represent sunk costs or costs that have already been incurred and cannot be recovered. The decision to replace the pump should be based on the incremental costs and benefits of the new pump compared to the old pump.
The relevant factors are the cost of the new pump ($48,000) and the annual savings in variable costs ($11,200) over the four-year life of the new pump.
The decision include the cost of the new pump ($48,000), the trade-in value for the old pump ($8,300), and the annual variable cost reduction ($11,200 per year).
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delta company sells bells to customers for $1 each. the variable cost to manufacture the bells is 10 cents. if the rattle department, a division of the delta company, wants to use the bells in its new line of rattles, which of the following transfer prices can be used if there is excess capacity? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.)
Transfer pricing is the pricing of goods or services transferred between different divisions or entities within the same company. It is used to determine the cost of goods or services transferred and can have an impact on the profitability of the divisions involved.
In the given scenario, the Delta Company sells bells to customers for $1 each and the variable cost to manufacture the bells is 10 cents. The Rattle Department, a division of Delta Company, wants to use the bells in its new line of rattles. Since there is excess capacity.
Variable cost of 10 cents per bell: This transfer price would cover the direct variable costs incurred in manufacturing the bells and would result in no additional contribution margin for Delta Company. It may be used if the Rattle Department is operating on a tight budget and cannot afford a higher transfer price.
Market price of $1 per bell: This transfer price would be based on the market price at which Delta Company sells the bells to external customers. It would reflect the full selling price and may be used if the Rattle Department has the ability to sell the rattles at the same price as Delta Company sells the bells to customers.
A negotiated transfer price between the Rattle Department and Delta Company: This transfer price would be based on a mutually agreed-upon price between the Rattle Department and Delta Company.
The choice of transfer pricing method would depend on various factors, including the specific circumstances of the Delta Company and the Rattle Department, their respective financial goals, and the overall company strategy. It is important for companies to establish appropriate transfer pricing policies that align with their business objectives and comply with applicable tax and accounting regulations.
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Jones Company developed the following static budget at the beginning of the company's accounting period: Revenue (9,600 units) $ 19,200 Variable costs 4,800 Contribution margin $ 14,400 Fixed costs 4,800 Net income $ 9,600 If actual production totals 10,000 units, the flexible budget would show total costs of: Multiple Choice $9,900. $19,600. None of these answers are correct. $9,800
If actual production totals 10,000 units, the flexible budget would show total costs of $24,800. The correct answer is option d.
The total revenue in the static budget is $19,200 for 9,600 units, so the revenue per unit is $2. The flexible budget needs to be prepared based on the actual production, which is 10,000 units.
Variable costs are also based on the actual production, so the total variable costs for 10,000 units can be calculated as follows:
Total variable costs = variable cost per unit x actual production
Total variable costs = $2 x 10,000
Total variable costs = $20,000
The contribution margin can be calculated by subtracting the total variable costs from the total revenue:
Contribution margin = Total revenue - Total variable costs
Contribution margin = $20,000 - $4,800
Contribution margin = $15,200
Fixed costs do not change with the level of production and remain the same as in the static budget, which is $4,800.
Therefore, the flexible budget for 10,000 units would show total costs of:
Total costs = Variable costs + Fixed costs
Total costs = $20,000 + $4,800
Total costs = $24,800
The correct answer is $24,800. The correct answer is option d.
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Complete Question
Jones Company developed the following static budget at the beginning of the company's accounting period: Revenue (9,600 units) $ 19,200 Variable costs 4,800 Contribution margin $ 14,400 Fixed costs 4,800 Net income $ 9,600 If actual production totals 10,000 units, the flexible budget would show total costs of: Multiple Choice
a. $9,900.
b. $19,600.
c. None of these answers are correct.
d. $24,800
During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,500. The truck was discarded on December 31.
During the year 2022, the company had to remove several assets from its service. These assets included machinery, a forklift, and a truck.
The machinery was retired on January 1, which means that it was no longer in use by the company from that date onwards. It was most likely due to the fact that the machinery had become old and outdated, and it was no longer cost-effective for the company to continue using it.
On the other hand, the forklift was sold on June 30 for $11,500. This suggests that the forklift was still in relatively good condition and had some value that the company was able to realize. It is likely that the company decided to sell the forklift because it no longer needed it or had found a better replacement.
Finally, the truck was discarded on December 31, which means that it was no longer of any use to the company. It is possible that the truck had reached the end of its useful life or was damaged beyond repair. In either case, the company had no choice but to discard it.
Overall, the removal of these assets indicates that the company is making efforts to optimize its resources and ensure that it is using its assets in the most efficient way possible.
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suppose interest rates rise in the united states, but they don't rise in chile. what is the short-run impact of this change in interest rates on the value of the dollar, the value of the peso, and u.s. net exports (based on the changing value of the dollar)?
The short-run impact of this change in interest rates is likely to lead to an appreciation of the dollar, a depreciation of the peso, and a potential increase in U.S. net exports.
If interest rates rise in the United States but not in Chile, there will likely be a short-run impact on the value of the dollar, the value of the peso, and U.S. net exports.
Firstly, the higher interest rates in the United States will make U.S. bonds and other financial assets more attractive to foreign investors, leading to an increase in demand for dollars. This increased demand for dollars will cause the dollar to appreciate in value relative to the peso.
Secondly, the weaker peso will make Chilean goods and services relatively cheaper for U.S. consumers, which could increase the demand for Chilean imports in the United States. This could lead to an increase in U.S. net exports in the short run, as U.S. consumers substitute some domestic goods and services with cheaper imports from Chile.
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Which population is the largest minority group in theUnited States?A. American Indian and Alaska nativeB. BlackC. AsianD. Hispanic
Answer:
D. Hispanic
Explanation:
Hispanic and Latino as an ethnicity comprised of the largest minority group in the nation.
The largest minority group in the United States is Hispanic. Option D is the answer.
A minority group is a group of people who have fewer members than the majority group in a particular society. Members of minority groups usually experience discrimination in various forms, including economic, social, and political discrimination.
Minority groups usually have less power and resources than the majority group, which makes it difficult for them to achieve their goals and protect their rights.
According to the United States Census Bureau, the
American Indian and Alaska Native population is 6.8 million, which represents 2.1% of the total population.
Black people make up about 13.4% of the population in the United States. They are the second-largest minority group after Hispanics.
Asian Americans make up approximately 5.9% of the population.
Hispanics , people who are from Spanish-speaking countries or whose ancestry can be traced back to these countries, make up the largest minority group in the United States, representing 18.5% of the total population.
Option D is the answer.
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Suppose that the current service level is 70%. What does it mean? Choose the best answer.
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a The number of cancellations is sufficient for total overbookings with probability 70%.
b The number of cancellations is sufficient for total overbookings with probability 30%.
c The number of overbookings is sufficient for total cancellations with probability 70%.
d The number of overbookings is sufficient for total cancellations with probability 30%.
e None of the above is correct.
This means that the number of cancellations is sufficient for total overbookings with probability 30%.
Therefore, option b - "The number of cancellations is sufficient for total overbookings with probability 30%" - is the correct answer. What is service level? The service level is a performance measurement indicator that shows how successful a company is at delivering a service to its clients. It is measured by dividing the number of requests handled within a given period by the number of requests received during the same period. The service level is used to assess the company's operational efficiency and performance.
A service level of 70% indicates that 70% of the clients' requests have been successfully processed, and the remaining 30% have not been completed. Therefore, 30% of overbookings are necessary for the business to be able to meet its commitments.
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How do we overcome the weaknesses to counteract challenges?
To overcome weaknesses and counteract challenges, we should follow steps like Identifying our weaknesses, Setting specific goals, Developing a plan, Acquiring necessary resources, and many more which are as follows:
1. Identify your weaknesses: The first step in overcoming weaknesses is to recognize them. Evaluate your skills, knowledge, and traits to identify areas where you need improvement.
2. Set specific goals: Once you have identified your weaknesses, set specific, measurable, achievable, relevant, and time-bound (SMART) goals to address them. This will help you stay focused and motivated on your journey to self-improvement.
3. Develop a plan: Create a detailed plan outlining the steps needed to achieve your goals. This plan should include a timeline, resources, and support systems to help you stay on track.
4. Acquire necessary resources: Gather the necessary tools, information, and resources to help you improve in your weak areas. This may include enrolling in courses, attending workshops, or seeking mentorship.
5. Practice and apply new skills: Consistently practice and apply the newly acquired skills to real-life situations. This will help you build confidence and reinforce your learning.
6. Monitor progress: Regularly assess your progress towards your goals. This will help you identify any gaps or areas where you need to adjust your strategy.
7. Seek feedback: Solicit feedback from others to gain insights into your performance and areas for improvement. This will help you make more informed decisions and adjustments to your plan.
8. Embrace setbacks: Understand that setbacks are a natural part of the learning process. Learn from them and use them as opportunities for growth.
9. Stay persistent: Overcoming weaknesses takes time and effort. Stay committed and persistent in your efforts, even when faced with challenges.
10. Celebrate your successes: Recognize and celebrate your achievements, no matter how small. This will help build your confidence and reinforce your commitment to self-improvement.
By following these steps, you can overcome your weaknesses and counteract challenges more effectively.
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Which sentences identify the advertising objectives of a business?
An ice cream business ran into trouble when news of a possible contamination reached its consumers. After a consumer uproar over negligence, the company decided to restore its credibility with the help of public relations. It released statements to the media about its strict regulated processes and also refuted rumors of contamination. It decided to target a market between ages five and fifteen to help position the product as child friendly and establish it as safe to consume. The company wanted to ensure that the product was marketed in a repackaged form in order to gain credibility and boost sales as compared to rivals. However they did not reduce prices, as reducing prices would be met with suspicion. Frequency of the advertised commercial was increased in order to increase recall among consumers. This proved effective, as within a few months there was no further drop in sales and sales slowly started gaining momentum
The sentences that identify the advertising objectives of the business are: - The company decided to target a market between ages five and fifteen to help position the product as child-friendly and establish it as safe to consume.
- The company wanted to ensure that the product was marketed in a repackaged form in order to gain credibility and boost sales as compared to rivals.
- Frequency of the advertised commercial was increased in order to increase recall among consumers.
These sentences show that the advertising objectives of the business were to establish the product as safe for children, gain credibility and boost sales, and increase consumer recall through increased advertising frequency.
Here's another set of sentences that identify advertising objectives:
A new car company wants to launch its first electric vehicle in the market and wants to create awareness about the brand and the product. The company decides to launch a print and online advertising campaign targeting eco-conscious consumers who are interested in technology and innovation.
A fashion brand wants to launch its new line of clothing for young adults. The objective of the advertising campaign is to create awareness about the brand and the new line, generate buzz on social media platforms, and drive traffic to the brand's website and physical stores. The company decides to use influencer marketing and social media advertising to reach its target audience.
A fast food chain wants to promote a new menu item and increase sales. The objective of the advertising campaign is to create awareness about the new item and persuade customers to try it out. The company decides to use TV commercials, billboards, and social media advertising to reach a large audience and promote the product's unique features and benefits. The company also offers discounts and promotions to incentivize customers to try the new item.
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Havermill Co. Establishes a $360 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $84 for Office Supplies, $159 for merchandise inventory, and $33 for miscellaneous expenses. The fund has a balance of $84. On October 1, the accountant determines that the fund should be increased by $72. The journal entry to record the establishment of the fund on September 1 is: Multiple Choice Debit Cash $360; credit Petty Cash $360. Debit Petty Cash $360; credit Accounts Payable $360. Debit Miscellaneous Expense $360; credit Cash $360. Debit Petty Cash $360; credit Cash $360. Debit Cash $360; credit Accounts Payable $360
The journal entry to record the establishment of the $360 petty cash fund on September 1 is to debit Petty Cash $360 and credit Cash $360.
When the petty cash fund is established, the initial journal entry should record the transfer of cash from the company's checking account to the petty cash fund. This is accomplished by debiting the Petty Cash account and crediting the Cash account for the same amount.
Therefore, the journal entry to record the establishment of the fund on September 1 is:
Debit Petty Cash $360
Credit Cash $360
The establishment of the petty cash fund is a common practice in businesses where small expenses, such as office supplies and miscellaneous expenses, are frequently incurred and it is not practical to issue a check or use a credit card for each transaction. The fund is replenished periodically by recording the expenses and transferring the total amount spent from the company's checking account to the petty cash fund.
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A company sells a product for $3. the company prepares a flexible budget at two sales volumes. at a sales volume of 50 units, budgeted sales will be $
A flexible budget is a budget that adjusts according to changes in sales volume or other variables.
In the given case, budgeted sales at a sales volume of 50 units, we need to know the sales volume's effect on the company's total revenue. If we assume that the company's pricing remains constant at $3 per unit, the budgeted sales will be:
Budgeted sales = Sales volume × Price per unit
At a sales volume of 50 units, the budgeted sales would be:
Budgeted sales = 50 units × $3 per unit = $150
Therefore, at a sales volume of 50 units, the company's budgeted sales would be $150.
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You will be answering by filling in the blanks. please be aware that your answer must include any commas or decimals in their proper places in order to be
correct. the dollar signs have been provided. for example, if the answer is $1,860. 78, then you will enter into the blank 1,860. 78. do not place any extra
spaces between numbers, commas, or decimal places. round any decimals to the nearest penny when the answer involves money, so that $986. 526 would be
typed into the blank as 986. 53 and $5,698. 903 would be typed into the blank as 5,698. 90.
using the information from question #14, if you only want to put 50% of your discretionary monies toward the emergency fund each month, how many months
will it take to fully fund it, excluding interest accrual? (note: round up to the next whole month. )
your answer goes here months
If you only want to put 50% of your discretionary monies toward the emergency fund each month, it will take you twice as long to reach your goal. Using the information from question #14, we know that your monthly discretionary income is $500 and your emergency fund goal is $5,000.
If you want to put 50% of your discretionary income towards the emergency fund each month, that means you will be contributing $250 per month.
At this rate, it will take you 20 months to reach your emergency fund goal of $5,000. However, if you were to increase your contributions to 100% of your discretionary income, you could reach your goal in just 10 months. It's important to consider your financial goals and priorities when deciding how much to contribute towards your emergency fund each month.
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ethical leaders develop a vision to lead their organization. bill gates had a vision of putting a computer on every desk in every home running great software. such determination requires which of the following?a.a fragmented view of the firm's ethical cultureb.a strong personalityc.reactive decision makingd.a passion to do what is right for themselves
The determination required to develop and pursue a vision, requires a strong personality and a passion to do what is right for the organization and its stakeholders. Correct options are B and D.
A strong personality allows ethical leaders to assert their vision and rally support from stakeholders, including employees, investors, and customers. This personality trait also enables them to persevere through setbacks and challenges that may arise in pursuing their vision.
In addition, a passion for doing what is right for the organization and its stakeholders provides ethical leaders with the motivation and commitment to see their vision through to fruition. This passion often stems from a deep-seated belief in the organization's mission and values and a desire to create positive change and impact.
Reactive decision-making or a fragmented view of the firm's ethical culture are not typically associated with effective ethical leadership, as they can lead to short-term thinking and ethical lapses that undermine the organization's long-term success and reputation.
In conclusion, ethical leaders who develop a vision require a combination of qualities, including a strong personality and a passion for doing what is right for the organization and its stakeholders, in order to successfully pursue their vision and create positive change.
Correct options are B and D.
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When you withdraw money from an ATM ("cash machine"), there may be a service fee that applies (e.g., a fixed fee of $1.75 per transaction). This fee is most similar to which parameter in the Economic Order Quantity (EOQ) model?
A. D
B. H
C. S
D. Q
When you withdraw money from an ATM and a service fee applies, this fee is most similar to parameter S of Economic Order Quantity. Therefore, the correct option is C.
The service fee for withdrawing money from an ATM is most similar to parameter S in the Economic Order Quantity (EOQ) model, which represents the cost of placing and receiving an order. Just like the service fee, the cost of placing and receiving an order is an additional cost incurred in the process of obtaining a product or service.
Hence S in the Economic Order Quantity (EOQ) model represents the ordering cost, which is a fixed cost per transaction, just like the ATM service fee. Hence, the correct option is C: S parameter of EOQ.
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For employees to form a new local union, several things must occur. first, employees must become interested in having a union. the second step is to _____.
The second step for employees to form a new local union would typically be to select a union or labor organization to represent them. This involves researching and contacting various unions to determine which one would be the best fit for the employees' interests and goals. Once a union has been selected, the employees can then work with the union to develop a strategy for organizing and gaining recognition from their employer. This may involve gathering signatures, holding meetings, and engaging in other forms of outreach and communication to build support among their fellow employees. Ultimately, the goal is to gain enough support to hold a union election and establish the union as the employees' official bargaining representative.
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