Company B paid dividend in 2021 of 0,8 USD, in line with the expected dividend growth of 3% each year. Company C has announced it expects to pay a 1,3 dividend to common shareholders in 2022, and its cost of equity (CAPM) is of 7,5%. (Company´s C paid dividend in 2021 of 1). Both companies are from the automotive sector where the expected rate of return of the market is of 8%. a. Which company has the most expensive share price ? b. Would you rather buy stocks of Company B or C considering that Company B stock is trading at 15 and Company C stock at 75

Answers

Answer 1

Based on the information provided, it appears that Company C has the most expensive share price.

This is because the dividend growth rate for Company C is significantly higher than Company B and the company's cost of equity (CAPM) is also higher.

Given that Company B's stock is trading at 15 and Company C's stock is trading at 75, it would be more prudent to purchase stocks of Company B. This is because Company B has a lower dividend growth rate and cost of equity, which implies that Company B is more likely to be undervalued compared to Company C.

Additionally, Company B has a much lower stock price than Company C, which further indicates that Company B would offer a better return on investment compared to Company C.

Overall, it seems that investing in Company B would be more advantageous than investing in Company C, as it offers a lower risk and potentially higher returns.

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Related Questions

product mix breadth. corporate stakeholder relations. profitability. brand liability. perceived brand personality.

Answers

Product mix breadth: Product mix breadth refers to the number of product lines or categories offered by a company.

A company with a wide product mix breadth offers a diverse range of products, while a company with a narrow product mix breadth offers a limited range of products. The product mix breadth can affect a company's profitability, as a wider product mix breadth may attract a larger customer base, but may also increase the complexity of operations and distribution.

1.Corporate stakeholder relations: Corporate stakeholder relations refer to the interactions and relationships that a company has with its various stakeholders, including customers, employees, investors, suppliers, and the wider community. Good stakeholder relations can help a company build trust and loyalty among its stakeholders, and can also contribute to the company's reputation and long-term success.

2.Profitability: Profitability refers to a company's ability to generate profits, which is essential for its survival and growth. A company's profitability is influenced by a variety of factors, including its pricing strategy, cost structure, market demand, competition, and overall efficiency and productivity.

3.Brand liability: Brand liability refers to the potential legal and financial risks associated with a company's brand, including issues such as trademark infringement, product liability, and false advertising claims. A company with strong brand liability management practices can minimize these risks and protect its reputation and financial stability.

4.Perceived brand personality: Perceived brand personality refers to the traits, characteristics, and values that customers associate with a company's brand. These perceptions can be shaped by a variety of factors, including advertising, product design, customer service, and social responsibility. A strong and positive brand personality can help a company differentiate itself from competitors, build customer loyalty, and ultimately drive sales and profitability.

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the long run is best defined as a time period during which at least one input cannot be changed. that is longer than two years. during which the prices of other goods change. that is long enough to change all factors of production. one thing that distinguishes the short run from the long run is whether any costs are fixed. explicit costs. the presence of variable costs. the number of months considered.

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The long run is a time period that is longer than two years and during which all factors of production can be changed.

The long run is a time period that is longer than two years and during which all factors of production can be changed. This is in contrast to the short run, where at least one input is fixed and cannot be changed. Another distinguishing factor between the short run and the long run is the presence of fixed costs. In the short run, there are fixed costs, while in the long run, all costs are variable. Additionally, during the long run, the prices of other goods can change, which can impact production decisions.

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which of the following are steps that organizations can take to evolve the organization from boundaries to rewards and culture? (check all that apply.) multiple select question. make sure that managers micromanage employees so that mistakes are caught early. make training an important part of the organization. develop a reward system that is clearly aligned with organizational goals. hire the right people.

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The means that associations can take to develop from limits to prizes and culture are make training an important part of the organization, develop a reward system that is clearly aligned with organizational goals, and hire the right people. Hence, options (B), (C) and (D) are correct.

By putting resources into representative preparation and improvement, associations can upgrade their workers' abilities and capabilities, prompting further developed execution and a more grounded hierarchical culture.

Laying out a distinct prize and acknowledgment framework that lines up with the association's targets rouses workers to accomplish these objectives. It cultivates a positive culture that advances superior execution and commitment.

By recruiting the ideal individuals, associations can construct a strong and cooperative labor force that adds to a positive workplace and in general achievement.

Therefore, options (B), (C) and (D) are correct.

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if an excise tax is imposed on beer and collected from the producers, the ________ curve will shift ________ by the amount of the tax.

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If an excise tax is imposed on beer and collected from the producers, the supply curve will shift left by the amount of the tax.

An excise tax is a tax on a specific good, such as beer, that is usually collected from the producers of that good. When an excise tax is imposed, the producers of the good must pay the tax, which increases their costs of production.

As a result, they are less willing to produce the good at any given price, and the supply of the good decreases.

To see how the excise tax affects the supply curve, we can look at the following steps:

1. Draw the initial supply and demand curves for beer without the tax. The point where the supply and demand curves intersect is the equilibrium point, which determines the market price and quantity of beer.

2. Draw a horizontal line representing the amount of the excise tax imposed on beer. This line shows the additional cost per unit that the producers must pay to the government.

3. Shift the supply curve left by the amount of the tax. The shift in the supply curve represents the decrease in supply that results from the producers having to pay the tax.

The new equilibrium point will be at a higher price and lower quantity than the original equilibrium point.

Overall, the imposition of the excise tax reduces the supply of beer and increases the price that consumers must pay.

The shift in the supply curve reflects the increased cost of production for the producers, and the higher price reflects the increased cost passed on to the consumers.

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1. Next year’s expected firm earnings are $8,000, shares outstanding 2000, ROE=16% required rate of return k= 9%, your plowback ratio b=17% and assuming constant growth dividends. Calculate the PVGO
Please use 5 decimal places in your response
2. Next year’s expected firm earnings are $6,000, shares outstanding 1000, ROE=13% required rate of return k= 10%, your plowback ratio b=20% and assuming constant growth dividends. Calculate todays price P0
Please use 4 decimal places in your response

Answers

1. To calculate the PVGO with given values, first, find the dividend payout ratio (1 - b) which is 1 - 0.17 = 0.83. Next, calculate the earnings per share (EPS) by dividing the expected firm earnings by the number of shares outstanding, which is $8,000 / 2,000 = $4.

Then, determine the dividend per share (DPS) by multiplying EPS by the dividend payout ratio, which is $4 * 0.83 = $3.32. Now, calculate the growth rate (g) by multiplying the plow back ratio by the ROE, which is 0.17 * 0.16 = 0.0272.

Finally, calculate the PVGO using the formula PVGO = (DPS / (kg)) - (EPS / k), which is ($3.32 / (0.09 - 0.0272)) - ($4 / 0.09) = 48.50617 - 44.44444 = 4.06173.

2. To calculate today's price P0, follow similar steps as in the first calculation. Find the EPS, which is $6,000 / 1,000 = $6.

Calculate the DPS using the payout ratio (1 - b) = 1 - 0.20 = 0.80, resulting in a DPS of $6 * 0.80 = $4.80. Calculate the growth rate (g) as 0.20 * 0.13 = 0.026. Lastly, use the Gordon growth model to find P0: P0 = DPS / (kg), which is $4.80 / (0.10 - 0.026) = $64.0000.

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the governance mechanism most closely connected with deterring unethical behaviours by holding top management accountable for the corporate culture is a. ownership concentration. b. the market for corporate control. c. executive compensation systems. d. the board of directors.

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The governance mechanism most closely connected with deterring unethical behaviors by holding top management accountable for the corporate culture is the board of directors.

The correct option is :-  D

The board of directors is responsible for overseeing the company's management and ensuring that it operates in an ethical and responsible manner. This includes setting and enforcing a strong corporate culture, and holding top management accountable for maintaining it.

Executive compensation systems may also play a role in promoting ethical behavior, but they are not directly connected to holding top management accountable for the corporate culture.

Ownership concentration and the market for corporate control are not governance mechanisms that are directly connected to promoting ethical behavior or holding top management accountable for the corporate culture.

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the future value of an ordinary annuity table is used when calculating multiple choice question. the present value of a series of payments. the present value of a single amount. the future value of a series of payments.

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The future value of an ordinary annuity table is a tool used to calculate the future value of a series of payments made at the end of each period over a certain number of periods.

This table helps individuals determine the amount they will have in the future based on their current investment or savings plan. By using the table, investors can estimate the value of their investment at the end of the investment period, assuming they make regular, equal payments.

The table is also useful in calculating the present value of a series of payments. By taking the future value of these payments and discounting it back to the present, individuals can determine the amount they would need to invest today to achieve their desired future value. This is known as the present value of an ordinary annuity.

The present value of a single amount is also important to consider when investing. This refers to the value of a lump sum payment today that will grow over time, assuming a certain rate of return. By understanding the present value of a single amount, investors can better determine how much they need to invest to reach their financial goals.

In summary, the future value of an ordinary annuity table is a valuable tool for investors to determine the future value of their investments and savings plans. It can also be used to calculate the present value of a series of payments and a single lump sum payment.

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select the two highlighted examples that best demonstrate what truman thinks joseph mccarthy and the republicans are doing.

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The following was a result of Joseph McCarthy s attacks on President Truman in the early 1950s: Dwight Eisenhower became president in 1952.  The correct option is B.

President Truman  played a significant role in shaping post-World War II policies, including the decision to drop atomic bombs on Hiroshima and Nagasaki, the implementation of the Marshall Plan, and the establishment of NATO.

Truman also oversaw the early stages of the Cold War, including the Korean War. He is known for his leadership during challenging times and his commitment to the principles of democracy and international cooperation.

Thus, the ideal selection is option B.

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The complete question might be:

Which of the following was a result of Joseph McCarthy s attacks on President Truman in the early 1950s?

a. Truman defeated McCarthy in the election of 1952.

b. Dwight Eisenhower became president in 1952.

c. McCarthy decided not to run for reelection.

d. Truman was revealed to be a communist.

Sally receives the following information on her project: PV=100, AC=75, EV=100. How well is the project doing in terms of budget? A) Twenty five (25) dollars over budget B) Fifty dollars (50) over budget OC) Twenty five (25) dollars under budget D) Fifty (50) dollars under budget

Answers

Using the earned value and actual cost, the cost variance is 25 dollars under budget,

How well is the project doing in terms of budget?

To determine how well Sally's project is doing in terms of budget, we need to calculate the cost variance (CV), which is the difference between the earned value (EV) and the actual cost (AC).

CV = EV - AC

CV = 100 - 75

CV = 25

A positive CV indicates that the project is under budget, while a negative CV indicates that the project is over budget. In this case, the CV is positive, so the project is under budget.

Therefore, the correct answer is C) Twenty five (25) dollars under budget.

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the degree to which people believe a person has their best interests in mind is known as:

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The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived trustworthiness.

People's perceptions of someone's goodness or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly concerned about their welfare.

Building and sustaining healthy relationships, both personally and professionally, might depend on this degree of trust.

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The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived trustworthiness. People's perceptions of someone's goodness.

or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived benevolence trustworthiness. People's perceptions of someone's goodness or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly concerned about their welfare.  concerned about their welfare. Building and sustaining healthy relationships, both personally and professionally, might depend on this degree of trust.

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Apocalyptica Corp. pays a constant $22 dividend on its stock. The company will maintain this dividend for the next 14 years and will then cease paying dividends forever. Required: If the required return on this stock is 15 percent, what is the current share price?

Answers

The current share price of Apocalyptica Corp. is $70.62.

Since the company will maintain the constant dividend for 14 years and then cease paying dividends forever, this is an example of a perpetuity followed by a lump sum payment.

We can use the formula for the present value of a perpetuity followed by a lump sum payment to calculate the current share price:

Current Share Price = (Annual Dividend / Required Return) x (1 - (1 + g)⁻ᴺ) + (Lump Sum Payment / (1 + Required Return)ⁿ)

Where:

Annual Dividend = $22

Required Return = 15%

g = 0% (since the dividend is constant)

N = 14 years

Lump Sum Payment = Present Value of the perpetuity after year 14 = (Annual Dividend / (Required Return - g)) x (1 - (1 + g)⁻ᴺ) = ($22 / (0.15 - 0)) x (1 - (1 + 0)⁻¹⁴) = $253.42

n = 14 years

Plugging in the values, we get:

Current Share Price = ($22 / 0.15) x (1 - (1 + 0)⁻¹⁴) + ($253.42 / (1 + 0.15)¹⁴) = $70.62 (rounded to the nearest cent)

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you are a project manager of a technical team. which approach would you take to help the team members balance their perfectionism and creativity so they are within scope?

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As a project manager of a technical team, it is crucial to help your team balance their perfectionism and creativity by providing clear expectations, feedback, and resources. This approach will enable them to complete their work efficiently while ensuring that it is within scope.

Firstly, I would encourage the team members to understand the project's scope, timelines and deliverables so they can manage their time and efforts more effectively.

It is crucial to establish clear expectations regarding what is expected in terms of quality, functionality and deadlines. This clarity will help the team members to prioritize their tasks and keep them focused.

Secondly, I would encourage the team members to be open to feedback, critiques, and suggestions from their colleagues. This collaborative approach can enhance their creativity and give them a chance to work on their perfectionism by refining their work according to the team's feedback.

Finally, I would ensure that the team has access to relevant tools, resources and training to help them complete their work within the scope. This will help them to create a balance between their perfectionism and creativity while meeting the project's objectives.

In conclusion, as a project manager, it is crucial to help your team balance their perfectionism and creativity by providing clear expectations, feedback and resources. This approach will enable them to complete their work efficiently while ensuring that it is within scope.

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a physical inventory taken on december 31, 2020, resulted in an ending inventory of $1,050,000. jep's markup on cost has remained constant at 32% in recent years. jep suspects that an unusual amount of inventory may have been damaged and disposed of without appropriate tracking. at december 31, 2020, what is the estimated cost of missing inventory?

Answers

The estimated cost of missing inventory is $538,235.30. However, it's important to note that this is just an estimate and further investigation would be necessary to determine the actual cost of missing inventory.

To calculate the estimated cost of missing inventory, we need to use the retail inventory method. The retail inventory method is a way to estimate the cost of inventory by using the ratio of the cost of goods available for sale to the retail price of goods available for sale.

First, we need to determine the cost of goods available for sale. We know the ending inventory at cost is $1,050,000, but we don't have information on the cost of goods sold. However, we can use the retail inventory method to estimate the cost of goods sold.

Let's assume that the total cost of goods available for sale is $3,000,000 (this includes the ending inventory at cost plus the cost of goods sold). We also know that Jep's markup on cost is 32%, which means that the cost of goods is 68% of the selling price.

Using this information, we can calculate the total selling price of goods available for sale as follows:

Selling price = Cost / (1 - Markup on cost)

Selling price = $3,000,000 / (1 - 0.32)

Selling price = $4,411,765.96

Next, we need to calculate the cost of goods sold:

Cost of goods sold = Selling price x (1 - Gross margin ratio)

Cost of goods sold = $4,411,765.96 x (1 - 0.68)

Cost of goods sold = $1,411,764.70

Now we can calculate the estimated cost of missing inventory:

Estimated cost of missing inventory = Cost of goods available for sale - Ending inventory at cost - Cost of goods sold

Estimated cost of missing inventory = $3,000,000 - $1,050,000 - $1,411,764.70

Estimated cost of missing inventory = $538,235.30

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Company A is a AAA-rated firm desiring to issue five-year FRNs. It finds that it can issue FRNs at six-month LIBOR + .150 percent or at three-month LIBOR + .150 percent. Given its asset structure, three-month LIBOR is the preferred index. Company B is an A-rated firm that also desires to issue five-year FRNs. It finds it can issue at six-month LIBOR + 1.150 percent or at three-month LIBOR + 1.00 percent. Given its asset structure, six-month LIBOR is the preferred index. Assume a notional principal of $15,000,000. What is the quality spread differential (QSD)?
a 0.125 percent
b 0.375 percent
c 0.150 percent
d 0.625 percent

Answers

The quality spread differential (QSD) is 0.375 percent. The answer is b.

The QSD is the difference in credit spread between two fixed-income securities with similar characteristics, but different credit ratings.

In this case, the QSD is calculated as the difference between the spread of Company A's FRNs (three-month LIBOR + 0.150 percent) and the spread of Company B's FRNs (six-month LIBOR + 1.150 percent), which is 1.0 percent.

However, since the preferred index for Company A is three-month LIBOR and for Company B is six-month LIBOR, we must adjust for the difference in index tenors.

Assuming a linear relationship between the two indices, the adjustment is 0.625 percent (1.0 percent spread difference divided by the two-year difference between the indices).

Thus, the QSD is 0.150 percent (0.625 percent minus 0.475 percent), which is the difference in credit spread after adjusting for the difference in index tenors.

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which of the following is a political risk faced by organizations such as fifa that operate in multiple countries? group of answer choices a. challenges implementing the world trade organization agreements b. uncertain prices for critical commodities c. potential nationalization of invested assets d. failure of countries to pay debt obligations

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The correct answer to your question is: c. potential nationalization of invested assets. This is a political risk faced by organizations like FIFA that operate in multiple countries, as it involves the possibility of a government taking control of their assets within that country .

The political risk faced by organizations such as FIFA that operate in multiple countries is the potential nationalization of invested assets. Nationalization refers to the process in which a government takes over private assets and makes them publicly owned. This can happen when a government feels that foreign investments are threatening their national security or when they want to take control of a strategic industry. Nationalization can lead to significant financial losses for organizations operating in multiple countries as they may lose their assets and investments in the affected countries.

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In many nonindustrial societies, adolescence is considered to be either nonexistent or NON existant or growth leading too Sexual maturityq (true or false)

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False. In many nonindustrial societies, adolescence is considered to be a distinct period of life, characterized by physical, cognitive, and social changes, although the concept and experience of adolescence may differ from that of industrial societies.

In many nonindustrial societies, adolescence is seen as a transitional period between childhood and adulthood, marked by physical changes such as growth spurts and the onset of puberty, as well as social and cultural changes such as increased responsibilities, initiation rites, and gender roles.

However, the experience of adolescence may vary greatly across different nonindustrial societies, depending on factors such as cultural values, economic conditions, and religious beliefs. For example, some societies may emphasize the importance of marriage and childbearing for adolescent girls, while others may encourage exploration and experimentation before settling into adult roles.

Overall, while the concept of adolescence may not be universal or static, it remains an important period of development and transition in many nonindustrial societies.

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Your stock has a β = 2.77, the expected return on the stock
market is 16.67%, and the yield on T-bills is 6%. What is the
expected return on your stock?

Answers

To calculate the expected return on your stock, we can use the following formula: Expected return = risk-free rate + β * (market return - risk-free rate)Plugging in the given values, we get:
Expected return = 6% + 2.77 * (16.67% - 6%)
Expected return = 6% + 2.77 * 10.67%
Expected return = 6% + 29.50%
Expected return = 35.50%
Therefore, the expected return on your stock is 35.50%.The expected return on the stock can be calculated using the Capital Asset Pricing Model (CAPM):Expected return on stock = Risk-free rate + Beta*(Expected market return - Risk-free rate)

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Anil currently lives in San Marcos and are considering moving to take a new job in northern California. There are three work periods (years) remaining for Anil. Anil will earn $20,000 per year in each of the three periods (years) in San Marcos and will earn $22,000 in each of the three periods (years) in northern California. Suppose the annual discount rate of 10 percent and other than the earnings, there are no differences between the jobs or preference on where Anil lives. a. Assume there are no costs to moving. Should Anil move to northern California or stay in San Marcos? (Hint: Compare the present value of each alternative). b. Now suppose that Anil would incurs some costs to move. What is the highest cost of moving that Anil is willing to incur and still move to northern California? 2. (4 points) CSUSM offers you an option to pay your remaining balance of $1,800 tuition today or pay $2000 for the tuition balance in one year. The interest rate you can earn (adjusted for inflation) is 15%. What should you do to save the most money? Show you calculation. 3. (5 points) Your pizza restaurant plans to invest $20,000 in a new oven that will generates $4.000 net revenues annually beginning the end year 1 through end of year 5. At the end of year 6, the annual net revenue and sale of the oven brings in $2,000. The interest rate to use in the calculation is 6 percent. What is the net present value of the investment? 4. (4 points) An investment in a company pays a guaranteed annual return in dividends (return) of $200 indefinitely (ie, forever, into perpetuity). Suppose the interest is 5 percent. How much would an investor be willing to pay for this dividend? (Calculate the present value of the investment.)

Answers

a. Debt has a lower required rate of return than equity because it is considered less risky. Bondholders receive a fixed payment (interest) and have priority over equity holders in the event of bankruptcy.

In contrast, equity holders have no guaranteed payment and are last in line for assets in case of liquidation, which makes equity riskier and requires a higher rate of return.

b. The Weighted Average Cost of Capital (WACC) for the company is 9.22%. To calculate WACC, we need to take a weighted average of the required rates of return for each component of the capital structure. The weights are determined by the proportion of each component in the capital structure.

The calculation is: WACC = (0.50 x 9.5%) + (0.40 x 7% x (1 - 20%)) + (0.10 x 7.5%) = 9.22%.

The weight of debt is adjusted for the tax shield of interest payments. The tax shield reduces the cost of debt to the company and makes it a cheaper source of financing compared to equity or preferred shares.

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r = required reserve ratio = 0.10 c = {C/D} = currency ratio = 0.45 e = {ER/D} = excess reserve ratio = 0.01 MB = the monetary base = $3,000 billion Given that the formula for the money multiplier is (1+c / r+e+c) find the value for M, the money supply, The money supply is $ ___ billion. (Round your response to the nearest whole number.) Use the money multiplier to find the new value for the money supply if open market operations increase the monetary base by $200 billion The money supply is now $ ___ billion. (Round your response to the nearest whole number.)

Answers

Initially the money supply is $7,770 billion, and after the open market operations, the money supply increases to $8,288 billion.

To find the value of M (the money supply), we first need to calculate the money multiplier using the given formula and values.

Formula for the money multiplier is:

Money Multiplier = (1 + c) / (r + e + c)

Plugging in the given values:

Money Multiplier = (1 + 0.45) / (0.10 + 0.01 + 0.45)
Money Multiplier = 1.45 / 0.56
Money Multiplier ≈ 2.59

Now that we have the money multiplier, we can find the initial money supply (M) by multiplying it with the monetary base (MB).

M = Money Multiplier × MB
M = 2.59 × $3,000 billion
M ≈ $7,770 billion (rounded to the nearest whole number)

Now let's find the new value for the money supply if open market operations increase the monetary base by $200 billion.

New Monetary Base = $3,000 billion + $200 billion
New Monetary Base = $3,200 billion

New Money Supply = Money Multiplier × New Monetary Base
New Money Supply = 2.59 × $3,200 billion
New Money Supply ≈ $8,288 billion (rounded to the nearest whole number)

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7. Nestle products Ltd includes in its account system a

purchase and sales ledger control account. The firms' trial

balance as at 31 March, 2018 includes the following

entries.

Purchases ledger control account

Sales ledger control account

The following is a summary of the firms' transactions with its suppliers:

1. Goods purchased and received from suppliers

(a) Gross invoice value before trade discount

(b) Net invoice price after trade discount

2. Goods returned to suppliers

(a) Gross invoice value before trade discount

(b) Gross invoice/price after trade discount

3. Amount due to suppliers

(a) Total amount

(b) Settled by payment of

4. Goods sold to customers:

(a) gross invoice value price before discount

(b) Net invoice value price after discount

5. Goods returned from customers:

(a) Gross invoice value before trade discount

(b)Net invoice price after trade discount

6. Amount due from customers:

GH¢'000

Dr 1,242

Cr 24,647

Dr 39,650

Cr

941

210,756

176,410

16,476

15,113

163,300

159,400

344,700

310,690

7,600

6,764

(a) Full amount

(b) Settle by receipts of

7. Customers debt written off

Additional information:

• It has been decided to create a provision for doubtful debt at

31/3/18 of 12%2% of the total amount due from customers

indebted to the firm. There was no provision for doubtful debt

in the trial Balance at 31 March, 2019

307,610

306,540

970

• At 31st March, 2019 both the purchases and sales ledgers

included accounts with K. M, purchases ledger GH¢1,630,000

(credit), sales ledger GH¢1,268,000 (debit).

• It has been decided to set off K. M's sales ledger balances

against the balance in purchases ledger. The purchases ledger

at 31st March, 2019 included the following account with debit

balances G. G GH¢930,000, L. B GH/420,000.

• The sales ledger at 31st March, 2019 included the following

accounts with credit balances P. H GH¢230,000, H. P

GH¢83,000, K. B GH¢500,000.

You are required to prepare the following account for the year

ended 31st March 2019 in the books of Nestle products Ltd.

(a) Payables ledger control account

(b) Receivables ledger control account

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The required accounts to be prepared for the year ended 31st March 2019 in the books of Nestle products Ltd are:

(a) Payables ledger control account(b) Receivables ledger control account

To prepare these accounts, the given information regarding the transactions with suppliers and customers is used. The purchases ledger control account and sales ledger control account balances are also considered. The provision for doubtful debts is accounted for in the receivables ledger control account.

The accounts with K. M are set off against each other. The debit balances in the purchases ledger accounts of G. G and L. B are adjusted, and the credit balances in the sales ledger accounts of P. H, H. P, and K. B are adjusted.

The payables ledger control account is prepared to show the balance owed to suppliers, while the receivables ledger control account is prepared to show the balance owed by customers. These accounts help in determining the total payables and receivables of the company at the end of the financial year.

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gilbert company made an ordinary repair to a delivery truck during 2022 at a cost of $500 and capitalized the repair cost. what is the effect on the 2022 financial statements as a result of the incorrect capitalization?

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If Gilbert Company made an ordinary repair to a delivery truck during 2022 at a cost of $500 and capitalized the repair cost, the effect on the 2022 financial statements would be that assets and net income are both overstated.  

Assets and net income are both overstated:

If Gilbert Company made an ordinary repair to a delivery truck during 2022 at a cost of $500 and capitalized the repair cost, the effect on the 2022 financial statements would be that assets and net income are both overstated. This is because the repair cost should have been expensed as a repair and maintenance expense, rather than being capitalized and added to the value of the delivery truck.

By incorrectly capitalizing the repair cost, the company has increased the value of its assets on the balance sheet, which in turn will result in an inflated net income on the income statement due to depreciation expense being lower than it should be. This overstatement can lead to a misrepresentation of the company's financial health and profitability.  

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Watters Umbrella Corp. issued 15-year bonds 2 years ago at a coupon rate of 8 percent. The bonds make semiannual payments. If these bonds currently sell for 115 percent of par value, what is the YTM?

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The yield to maturity (YTM) on the 15-year bonds issued by Watters Umbrella Corp. can be calculated by using the current market price of the bonds and the coupon rate. Since the bonds make semiannual payments, the coupon rate can be divided by two to get the semiannual coupon payment.

First, we need to calculate the semiannual coupon payment which is 8% / 2 = 4%. Next, we need to find the present value of the semiannual coupon payments and the principal payment using the YTM.

Since the bonds are currently selling at 115% of par value, the price of each bond would be 1.15 x $1,000 = $1,150. We can use this price to calculate the YTM using a financial calculator or Excel's RATE function.

Assuming a face value of $1,000, a coupon rate of 4%, 30 payments (15 years x 2 payments per year), and a present value of -$1,150 (since it's the cash outflow), we get a YTM of approximately 3.5%. Therefore, the YTM for Watters Umbrella Corp.'s 15-year bonds is approximately 3.5%.

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Indicate how each event in the following table would affect M1 and M2. Event Effect on M1 Effect on M2 A shift of funds from interest-earning checking deposits to money market mutual funds ___ (decrease/increase/no change) ___ (increase/decrease/no change)A shift of funds from money market mutual funds ___ (decrease/increase/no change) ___ (no change/increase/decrease)because fees required to invest in the latter have declined

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Impact of Event on M1 Impact on M2 a transfer of money from money market mutual funds to interest-bearing checking accounts with a loss in value. All the blanks are explained below.

Please indicate the impact of each event on M1 and M2 in the accompanying table.

At M1: Money market mutual funds are losing money at an increasing rate since there are decrease expenses associated with investing in them.

At M2: Money market accounts provide variable interest rates have no change, thus the return on investment for customers may change over time with increase. These accounts frequently offer tier rates, which means that bigger balances are rewarded with a higher annual percentage interest (APY). When compared to other mutual funds and the majority of other investments, money market funds are a form of mutual fund that have comparatively minimal risks.

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Correct Question:

Indicate how each event in the following table would affect M1 and M2. Event Effect on M1 Effect on M2 A shift of funds from interest-earning checking deposits to money market mutual funds ___ (decrease/increase/no change) ___ (increase/decrease/no change)A shift of funds from money market mutual funds ___ (decrease/increase/no change) ___ (no change/increase/decrease)because fees required to invest in the latter have declined.

A shift of funds from interest-earning checking deposits to money market mutual funds would result in a decrease in M1 as interest-earning checking deposits are included in M1, but money market mutual funds are not. On the other hand, this event would result in an increase in M2 as money market mutual funds are included in M2 but interest-earning checking deposits are not.

Event B: A shift of funds from money market mutual funds because fees required to invest in the latter have declined would result in no change in M1 as money market mutual funds are not included in M1. However, this event would result in an increase in M2 as money market mutual funds are included in M2.Overall, changes in M1 and M2 are influenced by shifts in funds between different types of accounts.

When funds are shifted from one type of account to another, the impact on M1 and M2 depends on whether the account type is included in each monetary aggregate. Therefore, it is essential to understand the components of M1 and M2 to predict the effect of changes in financial behavior on these aggregates.

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Suppose you came into some money and looking for a bond to invest in. You found a $1,000, with 15 years left to maturity bond. If the bond has a 6% coupon rate but pays interest semi-annually and you require a 13% return on your investment, how much are you willing to pay for the bond? (Round your answer to two decimal point)

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To calculate the price you are willing to pay for the bond, you need to use the present value formula:


PV = C[(1 - (1 + r)^-{n})/r] + FV/(1 + r)^{n}



Where:


PV = Present value (what you are willing to pay for the bond)


C = Coupon payment (in this case, half the coupon rate or 3%)


r = Required rate of return (13%/2 or 6.5%)


n = Number of periods (15 years x 2 since the bond pays semi-annually or 30)



Plugging in the values:

PV = 30[(1 - (1 + 0.065)^{-30})/0.065] + 1000/(1 + 0.065)^{30}


PV = $707.20

Therefore, you are willing to pay $707.20 for the bond if you require a 13% return on your investment.

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although a firm's existing mix of financing sources may reflect its target capital structure, it is ultimately . group of answer choices the internal rate of return that is relevant for evaluating the firm's future investment opportunities the marginal cost of capital that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future financing opportunities

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While a firm's existing mix of financing sources and target capital structure are important considerations, they are ultimately less relevant than the marginal cost of capital when evaluating the firm's future investment opportunities.

The most important factor to consider when evaluating a firm's future investment opportunities is the marginal cost of capital. The marginal cost of capital refers to the cost of obtaining additional funds to finance a new project or investment. It takes into account the various sources of financing available to the firm, including debt, equity, and other forms of financing.

When a firm is considering a new investment opportunity, it will typically need to raise additional funds to finance the project. The cost of these funds will depend on the firm's existing financing mix, as well as the current market conditions for different types of financing. For example, if interest rates are low, the cost of debt financing may be relatively cheap, while equity financing may be more expensive.

To evaluate the potential return on a new investment opportunity, it is important to compare the expected return on the investment to the marginal cost of capital. If the expected return on the investment is greater than the marginal cost of capital, then the investment is likely to be profitable for the firm. However, if the expected return is lower than the marginal cost of capital, then the investment is unlikely to generate a positive return for the firm.

It is worth noting that the risk-free rate of return can also be relevant when evaluating a firm's future investment opportunities. The risk-free rate of return refers to the rate of return on a risk-free investment, such as a government bond. This rate can be used as a benchmark for comparing the expected return on a new investment opportunity. If the expected return on the investment is significantly higher than the risk-free rate of return, then the investment may be worth considering.

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actions an employer can take to work toward inclusion of those historically underrepresented in the workplace include all of the following except: group of answer choices hiring and training groups that have been underrepresented recruiting from groups the employer hasn't previously made an attempt to recruit from mentoring, management training, and other development hiring individuals from underrepresented groups, even if not fully qualified

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The actions an employer can take to work toward inclusion of those historically underrepresented in the workplace include all of the following except hiring individuals from underrepresented groups, even if not fully qualified.

The other options, such as hiring and training groups that have been underrepresented, recruiting from groups the employer hasn't previously made an attempt to recruit from, and providing mentoring, management training, and other development, are all positive steps toward promoting workplace diversity and inclusion.

However, hiring individuals who are not fully qualified for a position could potentially undermine the objective of achieving a diverse and inclusive workplace, as it might result in lowered performance or negative perceptions from other employees. Instead, focusing on hiring qualified candidates and providing opportunities for growth and development can create a more equitable and inclusive environment for all employees.

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The common stock of NCP paid 1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years.
a. If NCP's current market price is $23.50 per share, what is the stock's expected rate of return?
b. If your required rate of return is 10.5 %, what is the value of the stock for that investor?
c. Should you make the investment?

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Given that your required rate of return is 10.5% and the stock value ($57.024) is higher than the current market price ($23.50), it is clear that the stock is undervalued and would be a wise investment.

We'll be using the Dividend Discount Model (DDM) to solve the problem.

a. To calculate the stock's expected rate of return, we'll use the following formula:
Expected Rate of Return = (Dividend1 / Current Market Price) + Dividend growth rate

First, we need to find Dividend1, which is the dividend for the next year. We have:
Dividend0 = $1.32 (last year's dividend)
Dividend Growth Rate = 8%

Dividend1 = Dividend0 * (1 + Dividend Growth Rate)
Dividend1 = $1.32 * (1 + 0.08)
Dividend1 = $1.4256

Now, we can calculate the expected rate of return:
Expected Rate of Return = ($1.4256 / $23.50) + 0.08
Expected Rate of Return = 0.06066 + 0.08
Expected Rate of Return = 0.14066 or 14.066%

b. To find the value of the stock for an investor with a required rate of return of 10.5%, we'll use the DDM formula:
Stock Value = Dividend1 / (Required Rate of Return - Dividend Growth Rate)

Stock Value = $1.4256 / (0.105 - 0.08)
Stock Value = $1.4256 / 0.025
Stock Value = $57.024

c. To determine if you should make the investment, compare the stock value with the current market price. In this case:
Stock Value = $57.024
Current Market Price = $23.50

Since the stock value ($57.024) is greater than the current market price ($23.50), it indicates that the stock is undervalued, and it would be a good investment based on your required rate of return of 10.5%.

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select all that apply marketers strive for efficient operations to provide their customers with which of the following? (choose every correct answer.) multiple select question. the products they want low-quality merchandise the correct quantity of merchandise products with lower costs than those of competitors'

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Marketers strive for efficient operations to provide their customers with a: "the products they want" and c: "the correct quantity of merchandise", while also offering d: "products with lower costs than those of competitors'".

Efficient operations are essential for marketers to meet customer needs by providing the right products in the correct quantities, while also maintaining low costs. This allows businesses to compete with other companies by offering similar products at lower prices, while still making a profit. By streamlining their operations and reducing waste, marketers can optimize their production processes, minimize costs, and improve overall efficiency. Ultimately, these efforts benefit customers by providing them with high-quality products at affordable prices.

Options a, c and d are answers.

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Conclude an entry barriers essay

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Entry barriers refer to the obstacles that prevent new companies from entering a particular market or industry. The goal of implementing entry barriers is to create a competitive advantage for existing companies, which makes it difficult for new players to enter and compete in the market.

There are many different types of entry barriers, including economies of scale, access to distribution channels, regulatory hurdles, intellectual property rights, and brand recognition. It's important to note that entry barriers can have both positive and negative effects on competition and consumer welfare.

In conclusion, entry barriers can be an effective way for companies to maintain their competitive edge and protect their market share. However, policymakers and regulators must also consider the potential negative consequences of entry barriers, such as reduced innovation and higher prices for consumers. Ultimately, finding the right balance between promoting competition and protecting existing companies is key to maintaining a healthy and dynamic economy.

8. Determine the beta of a portfolio formed by 30% risk-free asset, 25% stocks of UBS with a volatility of 15% and with a beta of 0.8; 65% in Unilever stocks with a variance of 0.0012 and a beta equal to 0,6 and a short selling position equal to 20% in corporate bonds of Eon with a beta of 0,3. A) Beta between 0, 45 and 0,55 B) Beta between 0,6 and 0,7 C) Beta between 0,33 and 0,43 D) None of the above

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The beta of the given portfolio is beta between 0.45 and 0.55 Therefore, the correct option is A.

To determine the beta of a portfolio, we need to calculate the weighted average of the betas of each component in the portfolio. Given the information in your question, we have:

1. 30% risk-free asset (beta = 0)

2. 25% UBS stocks (beta = 0.8)

3. 65% Unilever stocks (beta = 0.6)

4. -20% Eon corporate bonds (short selling, beta = 0.3)

Now, we'll calculate the weighted average beta:

Portfolio beta = (0.30 * 0) + (0.25 * 0.8) + (0.65 * 0.6) + (-0.20 * 0.3)

Portfolio beta = (0) + (0.2) + (0.39) + (-0.06)

Portfolio beta = 0.53

Based on the calculated portfolio beta of 0.53, the correct answer is A) Beta between 0.45 and 0.55.

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