The margin of safety (a) in dollars= $647,500 (b) as a percent of expected sales= 35%.
To compute the margin of safety for Zhao Company, we need to follow these steps:
Step 1: Calculate the contribution margin per unit.
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit
Contribution Margin per Unit = $185 - $121 = $64 per unit
Step 2: Calculate the break-even point in units.
Break-even Point (Units) = Fixed Costs / Contribution Margin per Unit
Break-even Point (Units) = $416,000 / $64 = 6,500 units
Step 3: Calculate the margin of safety in units.
Margin of Safety (Units) = Expected Sales (Units) - Break-even Point (Units)
Margin of Safety (Units) = 10,000 units - 6,500 units = 3,500 units
Step 4: Calculate the margin of safety in dollars (a).
Margin of Safety (Dollars) = Margin of Safety (Units) * Selling Price per Unit
Margin of Safety (Dollars) = 3,500 units * $185 = $647,500
Step 5: Calculate the margin of safety as a percent of expected sales (b).
Margin of Safety (%) = (Margin of Safety (Dollars) / Expected Sales (Dollars)) * 100
Margin of Safety (%) = ($647,500 / ($185 * 10,000 units)) * 100 = 35%
To summarize, the margin of safety for Zhao Company is (a) $647,500 in dollars and (b) 35% as a percent of expected sales.
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When a business's expenses are greater than its revenues, the business is operating at a(n)
When a business's expenses are greater than its revenues, the business is operating at a financial loss. This situation indicates that the company is spending more money on its operations, such as production, marketing, and administration, than it is earning from its sales or other income-generating activities. Operating at a loss can be detrimental to a business, as it can lead to cash flow problems, jeopardize its ability to pay off debts, and negatively impact investor confidence.
There can be several reasons for a business to experience a financial loss, such as a decline in demand, increased competition, or economic downturns. In some cases, it may be a temporary situation, such as when a company is in the initial stages of growth and making significant investments in infrastructure or research and development. In other cases, consistent losses may indicate deeper issues with the company's business model or management.
To address this situation, a business must analyze its operations to identify areas where it can cut costs, increase efficiency, or improve its products or services. This may involve reassessing its pricing strategy, reducing operational expenses, or exploring new revenue streams. Implementing effective cost management and revenue generation strategies can help a business turn around its financial performance and achieve profitability in the long run. It is essential for businesses to monitor their financial health regularly and take proactive measures to ensure they maintain a sustainable balance between expenses and revenues.
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assume a company has two divisions, c and d. the company's overall sales, overall contribution margin
Assuming a company has two divisions, C and D, the company's overall sales can be calculated by adding the sales generated by each division.
Similarly, the overall contribution margin, which represents the revenue remaining after accounting for variable costs, can be determined by adding the contribution margins of divisions C and D.
This information can help the company evaluate the profitability and efficiency of each division and make informed strategic decisions.
One of the key metrics used to evaluate the performance of a division is sales. The sales generated by each division can be used to determine the overall sales of the company.
This is a useful metric for assessing the overall growth of the company and for identifying which divisions are contributing the most to that growth.
Another important metric for evaluating the performance of a division is the contribution margin. This represents the revenue remaining after accounting for variable costs.
The contribution margin can be used to evaluate the profitability of each division and to identify areas where cost savings could be made.
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When researchers divide the population of interest in a study into groups and then arbitrarily choose participants from each group, they are using
a) quota sampling.
b) selective surveying.
c) random sampling.
d) stratified sampling.
e) researcher samples.
The research method described in the question is called stratified sampling. This method involves dividing the population of interest into subgroups or strata based on certain characteristics such as age, gender, or income level, and then selecting participants from each stratum.
The goal of stratified sampling is to ensure that the sample is representative of the population and that each stratum is proportionally represented in the sample. This method is often used when there are important subgroups within the population that may differ in important ways that could affect the outcome of the study. For example, if a study was looking at the effectiveness of a new medication for treating a specific disease, it would be important to ensure that the sample included participants from different age groups, genders, and disease severity levels. This would help to ensure that the results of the study are applicable to the broader population. Stratified sampling is different from random sampling, which involves selecting participants at random from the population without regard to specific characteristics or subgroups.
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The following are methods of determining marketing communications budgets, except:
A) objective and task
B) payout planning
C) sales-response function curve
D) quantitative methods
The following are methods of determining marketing communications budgets, except D) quantitative methods. The other options, A) objective and task, B) payout planning, and C) sales-response function curve, are all valid methods for budget determination in marketing communications.
D) quantitative methods is not a method of determining marketing communications budgets. The other three options listed are methods of determining marketing communications budgets: A) Objective and task method involves setting specific objectives for a marketing campaign and then estimating the costs of achieving those objectives.
B) Payout planning method involves setting a predetermined budget amount and then allocating it among various marketing initiatives based on their expected return on investment. C) Sales-response function curve method involves using statistical analysis to identify the relationship between marketing spending and sales, and then determining an appropriate budget based on that relationship.
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146. There are three types of criteria on which to evaluate training plans: reaction, knowledge and behaviour. True False
here are three types of criteria on which to evaluate training plans: reaction, knowledge and behaviour. True.
These three types of criteria are commonly used to evaluate training plans:
Reaction criteria: This evaluates the learners' immediate response to the training program, such as their satisfaction with the training, their level of engagement, and their interest in the material.
Knowledge criteria: This evaluates the learners' level of understanding of the material presented in the training program. This can be measured through assessments, quizzes, or other forms of testing.
Behaviour criteria: This evaluates the learners' application of the knowledge gained from the training program in their work or daily life. This can be measured through observation, surveys, or performance metrics.
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8. Many people consider knowledge to be a fifth factor of production.
While land, labor, capital, and entrepreneurship are traditionally considered the four factors of production, some economists argue that knowledge should be added as a fifth factor.
Knowledge plays a crucial role in the modern economy, particularly in sectors such as technology, healthcare, and education. It enables individuals and organizations to innovate, adapt, and improve their productivity and efficiency.
Therefore, investing in knowledge creation and dissemination can lead to significant economic growth and development.The concept of knowledge as a factor of production was first proposed by economist Fritz Machlup in the 1960s. Machlup argued that knowledge is a non-rival and non-excludable resource that can be used by multiple individuals and organizations simultaneously. He believed that the production and distribution of knowledge should be treated as a distinct economic activity and emphasized the importance of investing in education and research to promote economic growth.
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Which best describes how the government sanctions technological monopolies? a. by creating the technology itself b. by prohibiting others from entering the market c. by issuing a patent for the technology
d. by authorizing one producer
By issuing a patent for the technology best describes how the government sanctions technological monopolies. The right answer is c.
A monopoly results when a single company has exclusive control of the technology required to create a certain product or the manufacturing processes required to generate it. A technological monopoly happens when one company has complete control over the production processes required to create a given product.
By granting a patent for the technique, the government discourages technological monopolies. The purpose of the patent system is to promote the creation of new innovations, and in particular to promote their disclosure. The finest illustration of how the government punishes technology monopolies is to simply forbid competitors from joining the market.
The correct answer is option c.
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Answer:
C- by issuing a patent for the technology
Explanation:
Got it right
In computing your predetermined overhead rate, you will divide estimated overhead by actual revenue estimated overhead by he estimated driver estimated driver by estimated overheadestimated sales revenue by estimated overhead
In computing your predetermined overhead rate, you will divide the estimated overhead by an estimated driver. The estimated driver could be direct labor hours, machine hours, or any other measure that is expected to have a strong correlation with overhead costs. This approach helps allocate overhead costs more accurately to different products or services.
To calculate the predetermined overhead rate, the formula is:
Predetermined overhead rate = Estimated overhead / Estimated driver
For example, if a company estimates its total overhead costs to be $500,000 for the year and estimates that it will use 10,000 machine hours, the predetermined overhead rate would be:
Predetermined overhead rate = $500,000 / 10,000 machine hours = $50 per machine hour
This rate can then be used to apply overhead costs to products or services based on their actual usage of the estimated driver (in this case, machine hours).
It is important to note that the estimated driver should be based on a reasonable and accurate forecast of the actual usage. Otherwise, the predetermined overhead rate may not reflect the actual overhead costs incurred, leading to inaccurate costing and pricing decisions.
The answer is the explanation of how to calculate predetermined overhead rate so the correct question to be asked would be how is predetermined overhead rate calculated?
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151. Planning a career guarantees successful employee development. True False
False. While planning is an important aspect of career development, it does not guarantee successful employee development.
Career development is a complex and ongoing process that involves many factors, including education and training, work experience, networking, and personal motivation. Developing a career plan can be helpful in setting goals and identifying strategies for achieving those goals, but it is not a guarantee of success. Success in career development also depends on factors such as the availability of opportunities, the support of employers and mentors, and the ability to adapt to changing circumstances. Additionally, success means different things to different people, and what one person considers successful employee development may not be the same as what another person considers success. Ultimately, career development is a personal journey that requires dedication, hard work, and a willingness to take risks and learn from failures.
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in the presence of profits, firms enter a perfectly competitive market until the market reaches the point at which the firms are generating a profit; then entry stops and the market settles into its -run equilibrium. (make sure to put only one word in each blank.)
In the presence of profits, firms enter a perfectly competitive market until the market reaches the point at which the firms are generating a profit; then entry stops and the market settles into its long-run equilibrium.
In this type of market, firms are motivated by profit maximization. If a firm is earning profits, other firms will notice and be motivated to enter the market to earn those profits themselves.
This entry of new firms into the market increases the supply of the product, which leads to a decrease in the market price. As the market price falls, profits for all firms decrease, and some firms may exit the market if they are no longer able to cover their costs.
This process of entry and exit continues until the market price reaches the point where firms are earning zero economic profit, also known as the long-run equilibrium.
At this point, the market price is equal to the minimum average total cost of production, including a normal rate of return on investment. In this equilibrium, there is no incentive for firms to enter or exit the market, and the number of firms in the market remains constant.
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is a scientist working for a pharmaceutical company. his company was acquired by a rival pharmaceutical company, and now it is involved in downsizing and downscoping. john is concerned about his job security, since he is actively involved in amateur sports in his community and does not wish to disrupt his current lifestyle. john's job will most likely be secure if: john's research is in a non-core activity. the acquisition has been financed by junk bonds. john is in a position to take a poison pill. john is a key employee in the firm's primary business.
Ambrose's job will be most likely to be secure if he: is a key employee in the firm's primary business. The correct option is A.
When a company is involved in downsizing and downscoping, it typically seeks to retain its most valuable and strategically important employees. These are employees who have specialized skills, knowledge, or relationships that are critical to the success of the company's core business.
As a scientist working for a pharmaceutical company, Ambrose's job security will be greatest if he is a key employee in the firm's primary business. This means that his research is directly related to the company's core products and services, and that he has a proven track record of contributing to the company's success.
If Ambrose's research is in a non-core activity, it may be more vulnerable to downsizing, since it is not directly linked to the company's primary revenue streams.
Additionally, the use of junk bonds to finance an acquisition is typically a sign of financial distress and may increase the likelihood of future downsizing or restructuring. Finally, the concept of a poison pill is a defensive strategy used by companies to deter hostile takeovers, and is not directly relevant to Ambrose's job security.
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Complete question:
Ambrose is a scientist working for a pharmaceutical company. His company was acquired by a rival pharmaceutical company, and now it is involved in downsizing and downscoping. Ambrose is concerned about his job security, since he is actively involved in amateur sports in his community and does not wish to disrupt his current lifestyle. Ambrose's job will be most likely to be secure if Select one
a. Ambrose is a key employee in the firm's primary business.
b. Ambrose is in a position to take a poison pin
c. Ambrose's research is in a non-core activity
d the acquisition has been financed by junk bonds.
131. The three basic developmental strategies for organizations are cognitive, behavioural, and environmental. True False
False. The three basic developmental strategies for organizations are managerial, normative, and participative.
Cognitive, behavioral, and environmental strategies are subcategories used within three basic Strategies.The three basic developmental strategies for organizations are managerial, normative, and participative.
Managerial strategy involves training and development programs that focus on the skills and knowledge required for management positions. This strategy is aimed at developing leaders within the organization who can effectively manage people and resources.
Normative strategy involves the development of a set of shared values, beliefs, and norms that guide the behavior of employees within the organization. This strategy is aimed at creating a cohesive culture within the organization.
Participative strategy involves involving employees in decision-making processes, problem-solving, and goal setting. This strategy is aimed at developing the skills and abilities of employees and creating a sense of ownership and commitment to the organization.
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According to lan Redpath and Verne McGough, how many days does a party to a like-kind exchange transaction have to identify potential properties to exchange? O A. 15 0 B. 45 O c. 90 10 O D. 180
According to Lan Redpath and Verne McGough, a party to a like-kind exchange transaction has 45 days to identify potential properties to exchange.
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The following extract of Balance Sheet of Gaurav Ltd. Was obtained: Balance Sheet (Extract) as on 31st March, 2018 Liabilities Rs. Authorised capital: 90,000, 14% preference shares of Rs.100 90,00,0009,00,000 Equity shares of Rs.100 each 9,00,00,000 9,90,00,000 Issued and subscribed capital:67,500, 14% preference shares of Rs.100 each fully 67,50,000 paid 5,40,000 Equity shares of Rs.100 each, Rs.80 paid- 4,32,00,000 up Share suspense account 90,00,000 Reserves and surplus Capital reserves (Rs.6,75,000 is revaluation reserve) 8,77,500 Securities premium 2,25,000Secured loans: 5,92,500 15% Debentures2,92,50,000 Unsecured loans: Public deposits16,65,000Cash credit loan from SBI (short term) Current Liabilities:Trade Payables 15,52,500Assets: Investment in shares, debentures, etc. 3,37,50,000 Profit and Loss account (Dr. balance) 68,62,500 Share suspense account represents application money received on shares, the allotment of which is not yet made. You are required to compute effective capital as per the provisions of Schedule V. Would your answer differ if Gaurav Ltd. is an investment company?
The answer would not differ, and the effective capital would still be Rs. 5,04,77,500.
According to Schedule V of the Companies Act, the effective capital of Gaurav Ltd. can be calculated using the given information:
Effective Capital = Issued and Subscribed Capital + Reserves and Surplus - Revaluation Reserve + Securities Premium
1. Issued and Subscribed Capital:
- 14% Preference Shares: 67,500 shares x Rs. 100 = Rs. 67,50,000
- Equity Shares: 5,40,000 shares x Rs. 80 = Rs. 4,32,00,000
2. Reserves and Surplus (excluding Revaluation Reserve):
- Total Reserves: Rs. 8,77,500
- Revaluation Reserve: Rs. 6,75,000
- Reserves and Surplus (excluding Revaluation Reserve): Rs. 8,77,500 - Rs. 6,75,000 = Rs. 2,02,500
3. Securities Premium: Rs. 2,25,000
Now, we can calculate the effective capital:
Effective Capital = (Rs. 67,50,000 + Rs. 4,32,00,000) + Rs. 2,02,500 + Rs. 2,25,000
Effective Capital = Rs. 5,04,77,500
If Gaurav Ltd. is an investment company, the method of calculating the effective capital remains the same. Therefore, the answer would not differ, and the effective capital would still be Rs. 5,04,77,500.
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Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?
a. Proximity to customers
b. Corporate policy
c. Competitor's locations
d. Competitive advantage
e. Host-community politics
A: Proximity to customers is a criterion that influences manufacturing plant or warehouse facility location decisions.
The location of a facility should be close to its customers to reduce transportation costs and improve delivery time. This proximity can also help companies to better understand their customers' needs and preferences, which can lead to more effective production and marketing strategies. Other criteria that may influence facility location decisions include access to transportation infrastructure, availability of skilled labor, cost of utilities, and government incentives.
Option A is answer.
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which is the most widely used political and economic system in the world today?
a.) socialsim
b.)capitalism
c.)command
d.)communism
While there are certainly criticisms and drawbacks to capitalism, it remains the dominant economic system in the world today. Its emphasis on competition, innovation, and individual freedoms has proven attractive to many countries and individuals seeking economic growth and prosperity.
The most widely used political and economic system in the world today is capitalism. This system is based on private ownership of property and the means of production, with the goal of generating profit and promoting economic growth. Capitalism allows for competition among individuals and businesses, which is believed to encourage innovation and efficiency. It also allows for individuals to accumulate wealth and invest in new ventures, further fueling economic growth.
While socialism, command, and communism have been implemented in various countries around the world, they have not gained as widespread adoption as capitalism. Socialism and communism prioritize the collective good over individual interests, while command economies are centrally planned by the government. These systems have faced criticism for limiting individual freedoms and stifling economic growth.
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Which of the following BEST describes empathetic design?
A. Research that uses empathy with consumers when conducting depth interviews
B. Research that uses focus groups composed of people from different cultures to gain deep consumer insights
C. Quantitative technique that explores what the respondent's friends and family members think
D. Research that requires respondents to "think out loud" so the researcher can understand the respondent's reaction in more depth
E. Relatively new research approach that uses observations of consumers as they conduct routine activities looking for "pain points" and frustrations
Empathetic design is a design approach that involves understanding and addressing the needs and emotions of the end-users.
It goes beyond simply gathering data or conducting research to gain insights into consumer behavior, as it involves the active participation and engagement of users throughout the design process. Empathetic design requires designers to put themselves in the shoes of their users, to understand their needs, aspirations, and pain points. Of the options presented, option E best describes empathetic design as it involves observing consumers as they conduct routine activities to identify areas where they experience pain or frustration. This approach allows designers to gain a deeper understanding of the user's needs and emotions, which can inform the design of products and services that are more tailored to the user's preferences. Empathetic design is an important approach as it helps to create more meaningful and satisfying user experiences that can enhance user satisfaction, engagement, and loyalty. By designing with empathy, designers can create products and services that are more human-centered, intuitive, and effective in meeting the needs of users.
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The Overnight Construction Company has just signed a collective hargaining contract wherein it agrees that all workers it hires must be unice members in good standing at the time they are hired. This provision reflects: a. a closed shop b. a union shop c. an open shopd. an agency shop
The provision that all workers hired by The Overnight Construction Company must be union members in good standing at the time of hiring reflects a closed shop.
A closed shop is a workplace where only union members can be hired and all employees are required to maintain their union membership in good standing throughout their employment. This means that even if an employee chooses to leave the union, they must still pay union dues and fees as a condition of employment.
A union shop, on the other hand, allows non-union employees to be hired, but they must become union members within a certain timeframe. An open shop does not require union membership as a condition of employment, but employees can choose to join the union if they wish. An agency shop is a type of union security agreement where employees are not required to join the union, but they must pay union dues or a fee equivalent to union dues.
In this case, the provision in the collective bargaining agreement clearly states that all workers hired by The Overnight Construction Company must be union members in good standing. This means that the company operates as a closed shop, which can provide job security for union members and strengthen the union's bargaining power.
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you are evaluating a product for your company. you estimate the sales price of the product to be $300 per unit and sales volume to be 8,000 units in year 1; 10,000 units in year 2; and 2,000 units in year 3. the project has a three-year life. variable costs amount to $125 per unit and fixed costs are $150,000 per year. the project requires an initial investment of $225,000 in assets that will be depreciated straight-line to zero over the three-year project life. the actual market value of these assets at the end of year 3 is expected to be $25,000. nwc requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. the tax rate is 21 percent and the required return on the project is 14 percent. what will the year 2 free cash flow for this project be? multiple choice $1,279,750 $940,710 $961,500 $1,759,750
The year 2 free cash flow for this project is $695,500. None of the multiple-choice options provided match this value, so none of the options are correct.
Let's recalculate the year 2 free cash flow for the project using the correct formula and information:
Sales revenue in year 2:Sales volume in year 2 = 10,000 unitsSales price per unit = $300Sales revenue in year 2 = Sales volume in year 2 * Sales price per unitSales revenue in year 2 = 10,000 × $300 = $3,000,000
Variable costs in year 2:
Variable cost per unit = $125Variable costs in year 2 = Variable cost per unit * Sales volume in year 2Variable costs in year 2 = $125 × 10,000 = $1,250,000
Fixed costs in year 2:
Fixed costs in year 2 = $150,000Depreciation expense in year 2:
Depreciation expense per year = Initial investment / Project lifeDepreciation expense in year 2 = Depreciation expense per year * 2 (since it's year 2)Initial investment = $225,000
Project life = 3 years
Depreciation expense per year = $225,000 / 3 = $75,000
Depreciation expense in year 2 = $75,000 × 2 = $150,000
Net working capital (NWC) in year 2:
NWC requirement in year 2 = 20% of projected sales in year 2Projected sales in year 2 = 10,000 units (given)
NWC requirement in year 2 = 20% × $3,000,000 (sales revenue in year 2)NWC requirement in year 2 = $600,000
Now, let's calculate the year 2 free cash flow:
Year 2 Free Cash Flow = (Sales revenue in year 2 - Variable costs in year 2 - Fixed costs in year 2 - Depreciation expense in year 2) × (1 - Tax rate) + Depreciation expense in year 2 - Change in NWC
Year 2 Free Cash Flow = ($3,000,000 - $1,250,000 - $150,000 - $150,000) × (1 - 0.21) + $150,000 - $600,000
Year 2 Free Cash Flow = $1,450,000 × 0.79 + $150,000 - $600,000Year 2 Free Cash Flow = $1,145,500 + $150,000 - $600,000Year 2 Free Cash Flow = $1,295,500 - $600,000Year 2 Free Cash Flow = $695,500Therefore, the year 2 free cash flow for this project is $695,500.
None of the multiple-choice options provided match this value, so none of the options are correct.
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A. Either P or Q. If P then R. If Q then R. Therefore, R. What deductive form is this? B. If P then Q. If Q then R. Therefore, if P then R. What deductive form is this? C. Either P or Q. Not P. Therefore, Q. What deductive form is this?
A. The deductive form of this argument is called Disjunction Elimination (also known as the Constructive Dilemma). It has the following form:
1. Either P or Q
2. If P, then R
3. If Q, then R
Conclusion: Therefore, R
B. The deductive form of this argument is called Hypothetical Syllogism. It has the following form:
1. If P, then Q
2. If Q, then R
Conclusion: Therefore, if P, then R
C. The deductive form of this argument is called Disjunctive Syllogism. It has the following form:
1. Either P or Q
2. Not P
Conclusion: Therefore, Q
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need answer as soon as possibleJennifer owns 140 shares of Suncor common stocks. Assume that Suncor's quarterly dividend is $0.90 per share. What is the amount of the dividend Jennifer will receive for this quarter? (Omit the "S" s
Jennifer will receive a total dividend of $126 for this quarter.
A dividend is a payment made by a corporation to its shareholders as a distribution of its profits or earnings. Dividends are typically paid in cash, but they can also be paid in the form of additional shares of stock or other property.
Dividends are usually paid out on a regular basis, such as quarterly or annually, and they are typically declared by the corporation's board of directors. The amount of the dividend per share is determined by the board of directors, and it can vary based on the company's financial performance and other factors.
To calculate the amount of the dividend Jennifer will receive, we need to multiply the number of shares she owns by the dividend per share.
140 shares x $0.90 per share = $126
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Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1, and an acid-test ratio of 1.10:1 During the month, it completed the following transactions (the company uses a perpetual inventory system)May 2 Purchased $50,000 of merchandise inventory on credit8 Sold merchandise inventory that cost $55,000 for $110,000 cash10 Collected $20,000 cash on an account receivable.17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account22 Declared a 1 per share cash dividend on its 50,000 shares of outstanding common stock.26 Paid the dividend declared on May 22.27 Borrowed $100,000 cash by giving the bank a 30-day, 10% note.28 Borrowed $80,000 cash by signing a long-term secured note.29 Used the $180,000 cash proceeds from the notes to buy new machinery.Required:Complete a table showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital after each transaction. (Do not round intermediate calculations. Round your ratios to 2 decimal places and the working capitals to nearest dollar amount Subtracted amount should be indicated with a minus sign.)
1. Current Ratio = current assests/current liablities
2.5 = $700000/ current liablities
current liablities= $280000
2. Acid test ratio = quick assets/ current liablities
1.1 = quick assets/ $280000
quick assets = $308000
3. $325000 is the working capital. The gap between a company's current assets and current liabilities is known as its working capital. Working capital is a financial indicator that aids in predicting future requirements and ensuring that the business has enough cash and cash equivalents to cover immediate obligations like unpaid taxes and short-term debt.
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27) When a stockholder contributes a building to a corporation in exchange for stock, 12... on... A) assets increase and stockholders' equity increases B) assets increase and stockholders' equity decr
When a stockholder contributes a building to a corporation in exchange for stock, assets increase and stockholders' equity increases.
This is because the building is now considered an asset of the corporation, and the stock issued to the stockholder represents their ownership interest in the corporation, which increases their equity stake.
1. The stockholder contributes a building to the corporation, which increases the corporation's assets (specifically, property, plant, and equipment).
2. In exchange for the building, the corporation issues stock to the stockholder. This increases the stockholders' equity, as the corporation now has more outstanding shares.
So, the correct answer is that both assets and stockholders' equity increase when a stockholder contributes a building to a corporation in exchange for stock.
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]classify the following transactions as taking place in the secondary markets: check all that apply. the magellan fund buys $100 million of previously issued ibm bonds. prudential insurance co. sells $10 million of gm common stock. choice 2 ibm issues $200 million of new common stock. choice 3 the new company issues $50 million of common stock in an ipo. ibm sells $5 million of gm preferred stock out of its marketable securities portfolio.
The transactions that take place in the secondary markets are:
A: The Magellan Fund buys $100 million of previously issued IBM bonds.
B: Prudential Insurance Co. sells $10 million of GM common stock.
E: IBM sells $5 million of GM preferred stock out of its marketable securities portfolio.
The transactions that take place in the primary markets are:
C: IBM issues $200 million of new common stock.
D :The new company issues $50 million of common stock in an IPO.
Secondary markets refer to financial markets where securities that have already been issued are bought and sold by investors. In these markets, investors trade previously issued securities amongst themselves, without any involvement from the issuing companies. The most common secondary markets include stock exchanges, bond markets, and futures markets. These markets offer liquidity and transparency to investors, as well as an opportunity to buy or sell securities at market prices.
Secondary markets also play a crucial role in capital formation, as they allow companies to raise additional funds by issuing securities in the primary markets, knowing that investors can later trade those securities in the secondary markets.
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salvia company recently purchased a truck. the price negotiated with the dealer was $40,000. salvia also paid sales tax of $2,000 on the purchase, shipping and preparation costs of $3,000, and insurance for the first year of operation of $4,000. at what amount should the truck be recorded on the balance sheet prior to recording depreciation expense?group of answer choices$45,000.$43,000.$40,000.$42,000.
The truck should be recorded on the balance sheet at an amount of $45,000 prior to recording depreciation expense.
To determine the amount at which the truck should be recorded on the balance sheet prior to recording depreciation expense, we need to consider the price negotiated with the dealer, sales tax, shipping and preparation costs, and insurance for the first year of operation.
The price negotiated with the dealer was $40,000. Salvia also paid sales tax of $2,000, shipping and preparation costs of $3,000, and insurance for the first year of operation of $4,000.
However, the insurance cost of $4,000 is not considered part of the truck's initial value, as it is an operating expense, not a cost directly related to acquiring the asset.
So, we add the price, sales tax, and shipping and preparation costs:
$40,000 + $2,000 + $3,000 = $45,000.
Therefore, the truck should be recorded on the balance sheet at an amount of $45,000 prior to recording depreciation expense. Your answer: $45,000.
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the systematic risk principal says that the expected return on a risky asset depends only on that asset's total risk risk there is a reward for bearing risk, but there is not a reward for bearing risk unnecessarily the expected return on any asset is not related to that asset's risk the expected return on an investment depends on how smart the investor is none of the above
The correct answer is "there is a reward for bearing risk, but there is not a reward for bearing risk unnecessarily". This is the central principle of modern portfolio theory, which states that an investor can increase their expected return by taking on more risk, but only up to a point. After that point, the additional risk does not result in a commensurate increase in expected return. Systematic risk (also known as market risk) is the risk that cannot be diversified away, while unsystematic risk (also known as specific risk) can be eliminated by diversification.
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For which of the following products or services is the seller most likely to use life-cycle value pricing?
A) shampoo
B) a car
C) lottery tickets
D) a meal at a restaurant
E) a hotel reservation
The seller is most likely to use life-cycle value pricing for a car. The correct option is b) a car.
Life-cycle value pricing is a pricing strategy where the seller considers the entire life cycle of the product or service. This includes the initial purchase, maintenance, and eventual disposal or replacement. Cars are a good example of a product that can benefit from this type of pricing strategy. Cars require regular maintenance and may need to be replaced every few years. By considering the entire life cycle of the car, the seller can price it appropriately to maximize profits over time.
Shampoo, lottery tickets, a meal at a restaurant, and a hotel reservation are all products or services that do not typically require regular maintenance or replacement. These products are consumed or used once and then replaced or disposed of. While the seller may still consider the value to the customer when setting the price, life-cycle value pricing is not typically used for these types of products or services. Overall, the seller should use the pricing strategy that best aligns with the unique characteristics of the product or service being offered to maximize profits. The correct option is b) a car.
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g which of the following is not a right of shareholders? receive an annual dividend vote on major issues trade shares of the company sue for wrongful acts inspect the company's books
Based on the terms provided, the option that is NOT a right of shareholders is "receive an annual dividend." The correct option is to receive an annual dividend.
Receive an annual dividend as not all companies necessarily pay dividends, and the decision to do so is typically at the discretion of the board of directors. In some cases, a company may choose to reinvest profits back into the business rather than pay dividends to shareholders.
Receive an annual dividend: Shareholders have the right to receive a portion of the company's profits, known as a dividend, if and when the company's board of directors decides to pay them. However, not all companies pay dividends, and the amount of the dividend can vary based on the company's financial performance and other factors.
Therefore, the correct option is to receive an annual dividend.
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Assume that the real interest rate in both the United States and the European Union equals 4.5 percent. (a). Assume that the real interest rate in the United States falls to 3.75 percent. (). How will the flow of financial capital between the United States and the European Union be affected? Explain. (it) Using a correctly labeled graph of the foreign exchange market for the Euro, show how the value of the Euro would change relative to the United States dollar in a flexible exchange rate system. (b). Explain how the change in the value of the euro in part (a)(ii) would affect the European Union's nst exports.
The decrease in the U.S. real interest rate can have implications for both financial capital flows and trade between the United States and the European Union.
Interest RateWhen the real interest rate in the United States falls while remaining unchanged in the European Union, it can lead to a shift in the flow of financial capital between the two regions.
With a lower real interest rate in the United States, investors may find it less attractive to hold their funds in U.S. assets, leading to a decrease in demand for U.S. assets and an increase in demand for European Union assets. This shift in capital flows can result in an appreciation of the Euro relative to the U.S. dollar.
The change in the value of the Euro, in turn, can impact the European Union's net exports. A stronger Euro makes European goods relatively more expensive for U.S. consumers, potentially leading to a decrease in exports from the European Union to the United States.
Conversely, it makes imports from the United States relatively cheaper for European consumers, which could increase imports from the United States.
Overall, the decrease in the U.S. real interest rate can have implications for both financial capital flows and trade between the United States and the European Union, with potential effects on exchange rates and net exports.
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a purchase occurs when a package of assets are acquired for a single purchase price amount.
A purchase occurs when a package of assets, which may include tangible and intangible items such as property, equipment, or intellectual property, is acquired for a single purchase price amount.
1. Identifying the package of assets: Determine which assets are included in the package that will be acquired.
2. Negotiating the purchase price: Both the buyer and seller negotiate a single purchase price amount for the entire package of assets.
3. Agreeing on terms and conditions: The buyer and seller agree on the terms and conditions of the transaction, such as payment terms, warranties, and potential liabilities.
4. Preparing necessary documentation: The parties draft and review any legal documents required for the transaction, such as purchase agreements, contracts, and title transfers.
5. Completing payment: The buyer transfers the agreed-upon purchase price amount to the seller, often through a secure method such as a wire transfer or certified check.
6. Transferring ownership: The seller transfers ownership of the assets to the buyer, including any necessary documentation such as deeds or patents.
7. Recording the transaction: Both parties maintain records of the transaction for accounting, legal, and tax purposes.
In summary, a purchase involving a package of assets takes place when multiple assets are acquired together for a single purchase price amount, with both parties following a series of steps to ensure a smooth and legally binding transaction.
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