You will need to deposit $18,600.78 today in order to have $25,000 for a down payment on a house in 7 years, assuming an annual interest rate of 4.3%.
To calculate the present value of the amount you need to save, you can use the formula for future value of a present sum with compound interest:
FV = PV x (1 + r)
Where:
FV = Future value of the deposit (in this case, $25,000)
PV = Present value of the deposit (what we're trying to find)
r = Annual interest rate (4.3% in this case)
n = Number of years (7 in this case
Plugging in the numbers we get:i
$25,000 = PV x (1 + 0.043)
Simplifying:
$25,000 = PV x 1.3439
PV = $25,000 / 1.3439
PV = $18,600.78
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the expense recorded from allocating the cost of equipment to the periods in which it is used is called: a deferred revenue. depreciation expense. cash basis accounting. an accrued expense. an accrued asset.
The expense recorded from allocating the cost of equipment to the periods in which it is used is called depreciation expense.
This is because equipment, like other fixed assets, loses value over time due to wear and tear, obsolescence, or other factors. Depreciation is the method of allocating the cost of equipment to the periods in which it contributes to revenue generation. It is a non-cash expense that reduces net income but does not involve any actual cash outflows.
Depreciation expense is important because it reflects the true economic cost of using equipment and helps to match expenses with revenues in the accounting period. This is in contrast to cash basis accounting, where revenue and expenses are recognized only when cash is received or paid. Deferred revenue, accrued expense, and accrued asset are all accounting concepts related to the recognition and timing of revenues and expenses, but they are not directly related to the allocation of equipment costs.
In summary, depreciation expense is the appropriate term for the expense recorded from allocating the cost of equipment to the periods in which it is used.
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centralization of decision making will be used in a blank strategy because the dispersed global activities of the firm that create value need to be tightly coordinated. multiple choice question.
Centralization of decision making will be used in a global standardization strategy because the dispersed global activities of the firm that create value need to be tightly coordinated.
It is tightly coordinated in order to ensure consistency and efficiency in operations and product offerings across all locations. This approach involves standardizing products, services, and processes across different markets and regions to reduce costs, increase efficiency, and achieve economies of scale. A global strategy involves offering standardized products or services across different markets, which requires a high level of coordination and control.
The dispersed global activities of the firm, such as production, marketing, and logistics, need to be tightly coordinated to ensure consistency in quality, branding, and customer experience. Centralization of decision making enables top management to make strategic decisions that align with the company's overall goals and ensure that all the dispersed activities are working towards a common objective.
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The complete question is:
Centralization of decision making will be used in a ______ strategy because the dispersed global activities of the firm that create value need to be tightly coordinated.
quail co. can further process product b to produce product c. product b is currently selling for $60 per pound and costs $42 per pound to produce. product c would sell for $92 per pound and would require an additional cost of $13 per pound to produce. what is the differential revenue of producing and selling product c?
The differential revenue of producing and selling product C is $19 per pound.
To calculate the differential revenue of producing and selling product C, we need to compare the revenue earned by selling product C to the revenue earned by selling product B.
Product B sells for $60 per pound, and its cost of production is $42 per pound, so it generates a contribution margin of $18 per pound.
Product C would sell for $92 per pound, and its total cost of production would be the sum of the cost of producing product B ($42 per pound) and the additional cost of processing it into product C ($13 per pound), which is $55 per pound. Therefore, product C would generate a contribution margin of $37 per pound ($92 selling price - $55 total cost).
The differential revenue of producing and selling product C is the difference between the contribution margins of product C and product B, which is $37 - $18 = $19 per pound.
In other words, by further processing product B into product C, Quail Co. would earn an additional $19 of revenue per pound sold compared to selling product B directly.
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apple tree electronics is planning to offer its stock on the primary securities market. investors are excited as apple tree has never sold shares of their stock before. apple tree is most likely having a(n) multiple choice initial public offering. callable stock funding. institutional investment sale. stock split. open auction.\
Apple Tree Electronics is most likely having an initial public offering (IPO).
An IPO is the first time a company issues shares of its stock to the public on a primary securities market. This means that the shares will be available to individual and institutional investors to purchase for the first time. An IPO can generate a lot of excitement and attention from investors, as it provides an opportunity to invest in a company that was previously privately held. Callable stock funding, institutional investment sale, stock split, and open auction are not relevant to the context of Apple Tree Electronics going public.
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as the price of a good or service increases, consumers will purchase a lower quantity of that good or service due, in part, to the fact that consumers cannot afford the same quantity of a good or service at a higher price. this concept is known as the .(1 point)
The Law of Demand explains relationship between price and the quantity demanded of a product. And states that there exists an inverse relationship between the price of a product and the quantity demanded.
It is one of the most fundamental concepts in micro-economics. It works with the law of supply which attempts to explain how different economies allocate resources and determine the prices of various goods and services. Demand is derived from the law of diminishing marginal utility, which explains the use goods and services to satisfy consumers urgent needs.
However, by adding combined units of a good that consumer is willing to purchase at any given price, a market demand curve is constructed which slopes downward.
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which is not an ethical obligation of a statistician? group of answer choices to support client wishes in drawing conclusions from the data to know and follow accepted procedures to acknowledge sources of financial support to ensure data integrity and accurate calculations
The statement that is not an an ethical obligation of a statistician is option (b) To support client wishes in drawing conclusions from the data
A statistician's primary ethical obligation is to provide objective and accurate analysis of data without bias or manipulation, and to ensure that the data is interpreted and reported correctly. While a statistician may work with clients to understand their needs and objectives,
They must never compromise their ethical obligation to provide accurate and objective analysis of data. Therefore, it is not ethical for a statistician to support client wishes if those wishes compromise the integrity and accuracy of the analysis or if they are not supported by the data.
Therefore, the correct option is (b) To support client wishes in drawing conclusions from the data
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The given question is incomplete, the complete question is:
Which is not an ethical obligation of a statistician?
(a) To know and follow accepted procedures.
(b) To support client wishes in drawing conclusions from the data.
(c) To ensure data integrity and accurate calculations.
(e) To acknowledge sources of financial support.
a dealer in swiss francs who thinks that the pound is about to depreciate a. all of the options b. may want to lower both his bid price and his ask price c. may want to widen his bid-ask spread by raising his ask price and lowering his bid d. may want to lower his ask price while raising his bid
A dealer in Swiss francs who thinks that the pound is about to depreciate may want to lower his ask price while raising his bid. The correct answer is option d.
What is foreign exchange?Foreign exchange refers to the process of converting one currency into another currency for a variety of reasons, usually for trade, tourism, or commerce.
Foreign exchange transactions account for a significant portion of international trade. Forex trading, currency trading, and forex trading are all terms used to describe the process of trading one currency for another in the foreign exchange market.
In foreign exchange trading, the dealer is the individual or firm that mediates between buyers and sellers.
The dealer earns money by purchasing currency at a lower price than the selling price and then reselling it at a higher price. The bid and ask prices are two critical values that the dealer employs when quoting currency rates.
The bid is the price that the dealer is willing to pay for a currency, while the ask is the price that the dealer is willing to sell the currency for. The difference between the bid price and the ask price is known as the bid-ask spread.
The correct answer is option d.
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a hypothetical bank has $630 in loans, $700 in deposits, $500 in investments, $70 in cash and reserves, and $300 in debt. what is the leverage ratio o
The leverage ratio of a hypothetical bank is calculated as the ratio of its total assets to its equity. In this case, the total assets are the sum of loans, deposits, investments, and cash and reserves, while equity can be calculated as total assets minus debt.
Total Assets = $630 (loans) + $700 (deposits) + $500 (investments) + $70 (cash and reserves) = $1,900Equity = Total Assets - Debt = $1,900 - $300 = $1,600Leverage Ratio = Total Assets / Equity = $1,900 / $1,600 = 1.19
A hypothetical bank has $630 in loans, $700 in deposits, $500 in investments, $70 in cash and reserves, and $300 in debt. The leverage ratio of the hypothetical bank is 1.
1. The leverage ratio is the ratio between a bank's total debt and its capital. The formula for the leverage ratio is given by the total debt divided by the bank's capital. Therefore, the leverage ratio of the hypothetical bank is calculated as follows:
Leverage ratio = Total debt / CapitalLet's find the capital of the hypothetical bank: Capital = Deposits + Cash and reserves + InvestmentsCapital = $700 + $70 + $500Capital = $1270
Now, let's find the total debt of the hypothetical bank:
Total debt = Loans + DebtTotal debt = $630 + $300Total debt = $930
Now, substitute the values in the formula:
Leverage ratio = Total debt / CapitalLeverage ratio = $930 / $1270Leverage ratio = 0.7322Thus, the leverage ratio of the hypothetical bank is 0.7322 or 1.1.
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when a factory is operating in the short run, question 19 options: average fixed cost rises as output increases. total cost and variable cost are usually the same. it cannot alter variable costs. it cannot adjust the quantity of fixed inputs.
When a factory is operating in the short run, it cannot adjust the quantity of fixed inputs. So the option D is correct.
A factory cannot change the volume of fixed inputs while it is running in the short term. This means it can only vary the quantity of variable inputs, such as labor or raw materials, in order to produce goods and services.
The factory's output level is limited by the quantity of fixed inputs, and the cost of production is determined by the level of output. As such, a factory operating in the short run is unable to expand its production capacity or lower production costs.
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The complete question is:
When a factory is operating in the short run,
A. average fixed cost rises as output increases.
B. total cost and variable cost are usually the same.
C. it cannot alter variable costs.
D. it cannot adjust the quantity of fixed inputs.
in a store-within-a-store format, the host retailer manages both the merchandise inventory and personnel for the smaller store. true false
In a store-within-a-store format, the host retailer manages both the merchandise inventory and personnel for the smaller store. true
In a store-within-a-store format, a smaller retail store operates within the physical space of a larger host retailer. The smaller store, also known as a shop-in-shop, is typically managed by a third-party retailer that specializes in a specific product line or brand. However, in some cases, the host retailer may manage both the merchandise inventory and personnel for the smaller store.
This allows the host retailer to have more control over the operations of the store-within-a-store and ensure consistency with their overall branding and customer experience. Therefore, the statement "the host retailer manages both the merchandise inventory and personnel for the smaller store" can be true in some cases.
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ECON QUESTION !!
What is the overall objective of a business raising financial capital?(1 point)
A) decrease operating costs and increase the number of investors
B) increase revenues and the number of investors
C) reducing financial obligations and increase revenue
D) grow and increase profit
chapter 5 test, banking and finance...if you have all the answers that would be greatly appreciated
The main goal is to increase shareholder value as much as possible.
Businesses frequently make decisions that include spending money now while planning to turn a profit later. Examples are when a business purchases a machine with a 10-year lifespan, constructs a new facility with a 30-year lifespan, or launches a research and development initiative. Four basic methods exist for businesses to obtain the funding they require to fund these initiatives: (1) early-stage investors; (2) profit reinvestment; (3) bank or bond borrowing; and (4) stock sales. Business owners decide how to pay for financial capital sources when they select those sources.
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in the short run, a profit-maximizing firm's decision to produce should be guided by whether a. its marginal profit is maximized. b. it makes a profit. c. its total revenue covers its variable cost. d. its total revenue exceeds its fixed cost.
Businesses must choose the price-output combination that results in total revenue exceeding total cost by the greatest amount possible in order to maximise profits. This means that any given output level must be generated at least cost in order for businesses to maximise profits.
A company chooses to produce at the level where its marginal income and cost are equal in order to maximise profits. When marginal revenue is higher than marginal cost, the firm can increase output and make more money. The firm is in the red and must lower its output when marginal revenue is less than marginal cost. As a result, the firm's profits are maximized when it selects an output level where its marginal revenue and marginal cost are identical.
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you observe that the current interest rate on short-term u.s. treasury bills is 2.27 percent. you also read in the newspaper that the gdp deflator, which is a common macroeconomic indicator used by market analysts to gauge the inflation rate, currently implies that inflation is 1.5 percent. what is the approximate real rate of interest on short-term treasury bills? (enter your answer as a percent rounded to 2 decimal places.)
The approximate real rate of interest on short-term treasury bills is 0.77%.
The real interest rate is the nominal interest rate minus the inflation rate. In this case, the nominal interest rate is 2.27% and the inflation rate is 1.5%. Therefore, the approximate real rate of interest on short-term treasury bills is:
Real interest rate = Nominal interest rate - Inflation rate
Real interest rate = 2.27% - 1.5%
Real interest rate = 0.77%
So the approximate real rate of interest on short-term treasury bills is 0.77%.
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select the sentence that is concise and clear. group of answer choices customers can request a refund within 30 days of receiving defective merchandise. there is a rule that states that customers can request a refund within 30 days of receiving merchandise that is defective. there is a rule that allows customers to request a refund for defective merchandise.
The sentence that is concise and clear is: Customers can request a refund within 30 days of receiving defective merchandise.
Why concise and clear?A sentence that is concise and clear conveys information effectively and efficiently. Concise writing uses the fewest words necessary to convey meaning, while clear writing uses language that is easy to understand. Concise and clear writing makes it easier for the reader to understand the intended message.
What is concise?Concise means using as few words as possible to express an idea or thought. It means that you avoid using unnecessary words or repeating yourself. A concise sentence is brief and to the point.
The given sentence "Customers can request a refund within 30 days of receiving defective merchandise" is the correct answer to this question. It is the most concise and clear sentence among the given options. This sentence clearly states the rule that customers can request a refund within 30 days of receiving defective merchandise. The sentence is concise because it is brief and to the point, using the fewest words necessary to convey the message. It is clear because it is easy to understand and conveys the information effectively.
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jasper makes a $32,000, 90-day, 7.0% cash loan to clayborn company. jasper's entry to record the collection of the note and interest at maturity should be:
Jasper's entry to record the collection of the note and interest at maturity should be Dr. Notes Receivable for $32,000, Dr. Interest Receivable for $560, and Cr. Cash for $32,560.
To record the collection of the $32,000, 90-day, 7.0% cash loan to Clayborn Company and the interest at maturity, Jasper should follow these steps:1. Calculate the interest on the loan:
Interest = Principal x Rate x Time
Interest = $32,000 x 7.0% x (90/360)
Interest = $32,000 x 0.07 x (1/4)
Interest = $32,000 x 0.07 x 0.25
Interest = $560
2. Determine the total amount to be collected at maturity, which includes both the principal and the interest:
Total amount = Principal + Interest
Total amount = $32,000 + $560
Total amount = $32,560
3. Record the collection of the loan and interest in Jasper's general journal:
Debit: Notes Receivable - $32,000 (to reduce the notes receivable account)
Debit: Interest Receivable - $560 (to record the interest income)
Credit: Cash - $32,560 (to increase the cash account)
So, Jasper's entry to record the collection of the $32,000, 90-day, 7.0% cash loan to Clayborn Company and the interest at maturity should be: Debit Notes Receivable for $32,000, Debit Interest Receivable for $560, and Credit Cash for $32,560.
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which of the following is not acceptable when advertising group health insurance? a)clearly outlining policy exclusions or limitations b)not being misleading or obscure c)clearly outlining policy benefits d)providing a summary of benefits that fails to list coverage limitations
It is not acceptable when it fails to list coverage limitations.(Option d)
When advertising group health insurance, it is not acceptable to provide a summary of benefits that fails to list coverage limitations.Group health insurance is an insurance policy that covers a group of people who are usually employees of the same company or members of the same organization.
This insurance policy may also cover family members of the employees or members of the organization.The following are some of the things that should be done when advertising group health insurance
:Clearly outlining policy benefits.
Clearly outlining policy exclusions or limitations.Not being misleading or obscure.
Providing a summary of benefits that lists coverage limitations.
These are acceptable ways of advertising group health insurance, but it is not acceptable to provide a summary of benefits that fails to list coverage limitations. A summary of benefits is supposed to be an outline of the policy benefits and its coverage limitations.
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in which of the following situations will occupancy increase? supply increases 5% and demand decreases 5% supply increases 10% and demand increases 5% supply decreases 5% and demand decreases 10% supply decreases 10% and demand decreases 5%
The following situations will occupancy increase by b. 10% and demand increases by 5%.
Occupancy is a measure of how many rooms in a hotel or apartments are currently rented out to guests. When supply and demand shift, it affects the occupancy rate. Occupancy rate can be calculated by dividing the number of rooms currently rented out by the total number of rooms available.Supply refers to the number of rooms available for rent, while demand refers to the number of people who want to rent those rooms.
When supply and demand change, they can affect occupancy. When supply increases by 10% and demand increases by 5%, occupancy increases as well because there are more rooms available, and more people want to rent them. Conversely, when supply decreases by 10% and demand decreases by 5%, occupancy decreases because there are fewer rooms available, and fewer people want to rent them.
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in june, wayne enterprises announced a 3-for-1 stock split. on the split date, newcastle had about 14.56 million shares outstanding. after the split, the number of shares outstanding was:
On the split date, Newcastle had about 14.56 million shares outstanding. after the split, the number of shares outstanding was 43.68 million shares.
The quantity of a company's shares that are traded on the secondary market and thus accessible to investors is known as outstanding shares.
According to the company's articles of incorporation, authorized shares are the most shares that can be issued to investors. The actual shares issued or sold to investors out of the total number of authorized shares are referred to as outstanding shares.
After a 3-for-1 stock split, the number of shares outstanding would triple. Therefore, the number of shares outstanding for Newcastle after the split would be:
14.56 million x 3 = 43.68 million shares
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the dollar has just appreciated. what will be one result? multiple choice question. imports will do down. aggregate demand will decline. net exports will increase. exports will go up.
When imports decrease, net exports will increase. When net exports increase, it will lead to an increase in the aggregate demand. Thus, the correct option would be option (C) net exports will increase.
As the dollar appreciates, one result will be that exports will go up. An increase in the value of the dollar makes American-made goods more expensive for foreign buyers, which means fewer foreign buyers are likely to purchase these goods. Because exports have become more expensive, foreign buyers will look elsewhere for cheaper goods, and they will not buy from America. However, this increased demand for American goods will cause their prices to rise, which will result in an increase in exports.
It will be easier for American companies to sell products and services to foreign markets, and thus the demand for American products will increase, as a result of an increase in exports.As exports rise, it will lead to an increase in net exports. The net exports are exports minus imports. The dollar's appreciation causes exports to increase, and imports to decrease. When imports decrease, net exports will increase. When net exports increase, it will lead to an increase in the aggregate demand. Thus, the correct option would be option (C) net exports will increase.
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you have a credit card with a balance of $11,800 and an apr of 17.4 percent compounded monthly. you have been making monthly payments of $230 per month, but you have received a substantial raise and will increase your monthly payments to $280 per month. how many months quicker will you be able to pay off the account?
You will be able to pay off your credit card balance approximately 18 months quicker by increasing your monthly payment to $280.
To determine how many months quicker you will be able to pay off your credit card balance, we need to calculate how many months it will take to pay off the balance with the current payment of $230 per month, and then how many months it will take with the increased payment of $280 per month.
First, we can calculate the minimum payment required by the credit card issuer each month. This is typically the greater of a fixed amount or a percentage of the balance. Assuming the minimum payment is 2.5% of the balance, the minimum payment for the initial balance of $11,800 would be $295.
Using the current payment of $230 per month, we can calculate the number of months it will take to pay off the balance as follows:
11,800 x (1 + 0.174/12)^(n) = 230[(1 + 0.174/12)^(n) - 1]/(0.174/12)
Solving for n, we get n = 77.4 months.
Next, using the increased payment of $280 per month, we can calculate the number of months it will take to pay off the balance as follows:
11,800 x (1 + 0.174/12)^(n) = 280[(1 + 0.174/12)^(n) - 1]/(0.174/12)
Solving for n, we get n = 59.4 months.
The difference is = 18 months.
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which of the following statements is false? the yield curve is a potential leading indicator of future economic growth. real interest rates indicate the rate at which your money will grow if invested for a certain period. the shape of the yield curve will be strongly influenced by interest rate expectations. the relationship between the investment term and the interest rate is called the term structure of interest rates.
The following statement is false: "Real interest rates indicate the rate at which your money will grow if invested for a certain period."
Real interest rates reflect the purchasing power of the interest rate, meaning how much goods or services you can buy with a certain amount of money.
Real interest rates consider inflation, which is the rate at which prices increase over time, to indicate the rate at which your money will grow if invested for a specific period.
The yield curve, which plots the interest rates of bonds with different maturities, has the potential to predict future economic growth.
The shape of the yield curve depends heavily on expectations about interest rates.
The relationship between the interest rate and the investment term is known as the term structure of interest rates.
Therefore, the following statement is false: "Real interest rates indicate the rate at which your money will grow if invested for a certain period."
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assume the sales budget for april and may is 30,000 units and 32,000 units, respectively. the production budget for the same two months is 27,000 units and 28,800 units, respectively. each unit of finished goods required 4 pounds of raw materials. the company always maintains raw materials inventory equal to 15% of the following months production needs. if the company pays $2.50 per pound of raw material, then what is the estimated cost of raw material purchases for april?
The estimated cost of raw material purchases for April is $313,200.
To estimate the cost of raw material purchases for April, we first need to calculate the raw material needed for production in April.
Since each unit of finished goods requires 4 pounds of raw materials, and the production budget for April is 27,000 units
the raw material needed for April's production would be: 27,000 units * 4 pounds per unit = 108,000 pounds of raw materials.
Next, we need to determine the amount of raw materials the company needs to maintain in inventory for May's production needs.
Since the company always maintains raw materials inventory equal to 15% of the following month's production needs, the raw material inventory needed for May would be: 28,800 units * 4 pounds per unit * 15% = 17,280 pounds of raw materials.
Therefore, the total raw material needed for April and May would be: April raw materials needed + May raw materials inventory = 108,000 pounds + 17,280 pounds = 125,280 pounds.
Finally, to calculate the estimated cost of raw material purchases for April, we multiply the total raw material needed by the cost per pound of raw materials: 125,280 pounds * $2.50 per pound = $313,200.
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on september 1, a customer's account balance of $2,300 was deemed to be uncollectible. what entry should be recorded on september 1 to record the write-off assuming the company uses the allowance method?
The entry to record the write-off of the uncollectible account on September 1 under the allowance method is to debit the allowance for doubtful accounts and credit accounts receivable for $2,300.
The allowance method is a method of accounting for bad debts that involves estimating the amount of uncollectible accounts and recording an allowance for that amount. When an account is deemed to be uncollectible, it is written off by debiting the allowance for doubtful accounts and crediting accounts receivable.
This reduces the accounts receivable balance on the balance sheet and recognizes the expense on the income statement. Writing off an uncollectible account does not affect the net realizable value of accounts receivable, which is the total amount of accounts receivable less the estimated amount of uncollectible accounts.
In this case, the write-off of $2,300 reduces the net realizable value of accounts receivable by the same amount.
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how much should you pay for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for $36.01 one year from now?
You should pay $60 for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for $36.01 one year from now.
To determine how much you should pay for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for $36.01 one year from now, you can use the Gordon growth model.
The Gordon growth model is:
P = D / (r - g)
Where:
P = current price of the stock
D = expected dividend payment
r = required rate of return
g = expected growth rate of dividends
In this case, we know that the expected growth rate of dividends is 10%, the required rate of return is 16%, and the expected selling price one year from now is $36.01. We need to find the expected dividend payment.
To do this, we can use the formula for the expected dividend payment, which is:
D = D0 x (1 + g)
Where:
D0 = current dividend payment
Since the stock is expected to have a constant growth rate of 10%, we can assume that the current dividend payment is equal to the dividend payment one year from now. Therefore, we can rewrite the formula as:
D = $36.01 x 10% = $3.60
Now we can plug in the values into the Gordon growth model:
P = $3.60 / (16% - 10%) = $60
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which unique skill does a product champion usually possess? a.where to secure resources for successful development b.understanding technological aspects of an idea c.managing organizational politics d.the ability to conceive and develop new ideas
Where to secure resources for successful development is a unique skill the product champion usually possess. Option A.
A product champion is described by the American Marketing Association as "a person who takes an excessive interest in seeing that a particular process or product is fully developed and marketed." The power of product champions to make or break a product should be mentioned even though this definition is superb.
A dedicated product champion can be an excellent resource for product creation and can have an impact on a product's success. Product champions are frequently renowned business idea leaders.
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many firms choose to transfer insurable risk to the capital markets through the creation of a financial instrument is called
One financial instrument that firms use to transfer insurable risk to the capital markets is called a "catastrophe bond," or "cat bond" for short.
The basic idea behind a cat bond is that a firm issues a bond that is tied to a specific risk, such as the occurrence of a hurricane or earthquake. Investors buy the bond, and if the specified risk event does not occur, the investors receive a return on their investment in the form of interest payments.
There are many variations of cat bonds, including those that cover different types of risks, such as terrorism or pandemics, and those that have different trigger levels, such as a specific dollar amount of losses or a certain number of deaths.
Overall, the use of financial instruments such as cat bonds allows firms to transfer insurable risk to the capital markets in a way that can be more cost-effective than traditional insurance, while also providing investors with an opportunity for potentially higher returns.
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this year, barney and betty sold their home (sales price $750,000; cost $200,000). all closing costs were paid by the buyer. barney and betty owned and lived in their home for the last 18 months. how much of the gain is included in gross income?
The purchaser covered all closing expenses. For the previous 18 months, Barney and Betty owned and resided in their house. $412,500 of the gain from the sale of Barney and Betty's home is included in their gross income.
The gain from the sale of a primary residence can be excluded from gross income for tax purposes, up to a certain limit, if the homeowner meets certain ownership and use tests. According to the IRS, to qualify for the exclusion, the homeowner must have owned and used the home as their primary residence for at least two out of the five years before the sale.
In this case, Barney and Betty owned and lived in their home for the last 18 months, which is less than the two-year requirement. Therefore, they do not qualify for the exclusion, and the gain from the sale of their home must be included in their gross income.
To calculate the amount of gain that is included in gross income, we first need to calculate their capital gain.
Capital gain = Sales Price - Cost
Capital gain = $750,000 - $200,000
Capital gain = $550,000
Next, we need to prorate the capital gain based on the portion of time that they owned and lived in the home.
Prorated capital gain = Capital gain x (Time lived-in home / Total time owned home)
Prorated capital gain = $550,000 x (18/24)
Prorated capital gain = $412,500
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6. using the labor market, production function. and as/ad graphs of the classical model, show the effects of immigration (an increase in labor supply). what are the effects on real wages, the quantity of labor, real gdp, and prices? explain and show graphically
A decline in the labor supply would cause the supply curve to shift to the left, resulting in a labor shortage at the starting wage. As a result, the equilibrium wage will be under pressure to rise, which will reduce the amount of labor required.
The labor market and the manufacturing system are in close proximity to one another. One of the key production elements is labor. Without labor, manufacturing cannot exist. Production is more efficient the more competent the labor force.
There is an upward slope to the worker supply curve. This is a reflection of the law of supply, which states that, ceteris paribus, there will be a larger number of workers who are ready to work at a high wage and a lower number at a low wage.
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true or false: the discounted cash flow (dcf) valuation estimates future value as the difference between the market price and the cost of the investment.
The difference between the market price and the cost of the investment is what is estimated as future value using the discounted cash flow (dcf) valuation method. True.
Once the time value of money has been taken into account, DCF analysis calculates the value of return that an investment will provide. Any investments or initiatives with the expectation of producing future cash flows can use it. The original investment is frequently contrasted with the DCF.
A sort of financial model called discounted cash flow (DCF) valuation assesses the value of an investment by estimating how much money will be generated in the future. A DCF model is predicated on the notion that a company's value is defined by how successfully it will be able to provide cash flows for its investors in the future.
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according to the theory of comparative advantage, a country will export a good only if group of answer choices it can produce it using less labor than other countries its productivity is higher in producing the good than the productivity of other countries in producing it. its wage rate in producing the good is lower than in other countries. its cost of producing the good, relative to other goods, is at least as low as in other countries. all of the above.
According to the comparative advantage theory, a nation will only export a commodity if its production costs are at least as cheap as those in other nations when compared to other goods. So, C is the right response.
According to the idea of comparative advantage, nations should focus on creating commodities for which they have lower opportunity costs than other nations. This implies that a nation ought to create and export goods that it can make more affordably than other nations, compared to other goods.
This theory is based on the idea that countries have different resources and capabilities, and that by specializing in certain goods and trading with other countries, they can achieve greater economic efficiency and higher standards of living.
By exporting goods for which it has a comparative advantage, a country can earn foreign exchange that can be used to import other goods that it cannot produce as efficiently.
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Complete question:
According to the theory of comparative advantage, a country will export a good only if group of answer choices
A - it can produce it using less labor than other countries its productivity is higher in producing the good than the productivity of other countries in producing it.
B - its wage rate in producing the good is lower than in other countries.
C - its cost of producing the good, relative to other goods, is at least as low as in other countries.
D - all of the above.