Answer both of the following questions a) Expo Experiments perpetual preferred stock currently sells for $110.00 per share, and pays a 2.75 annua dividend the company were to preferred inue, it would incur a rotation cost of 25% of the issue price. What is the firm's cost of preferred stock? b) ACCO Enterpies hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data RF-4.15RP-5.75% and 0.65 Based on the CAPM approach, what is the cost of equity from retained eemings?
Answers
The correct answer is a) The firm's cost of preferred stock is 3.7%.b) The cost of equity from retained earnings is 5.19%.
a)The cost of preferred stock is the annual preferred dividend divided by the net proceeds from the sale of the preferred stock. This is the amount of the preferred stock dividend that the corporation will withhold from the investors to pay the issuance fees. The net proceeds from the sale of preferred stock are the issue price minus the issuance cost. The preferred dividend, on the other hand, is the percentage of the issue price multiplied by the stated dividend rate.
The annual preferred dividend paid by the perpetual preferred stock is 2.75, and the issue price is $110, with a rotation cost of 25% of the issue price.
Net proceeds from the sale of the stock = $110.00 − ($110.00 × 0.25) = $82.50.
Dividend of preferred stock = $110.00 × 0.0275 = $3.03.
Cost of preferred stock = $3.03 / $82.50 = 0.037 or 3.7%
b)The cost of equity capital is a weighted average of the cost of common equity and the cost of preferred equity. The cost of common equity, or the required rate of return on equity, is calculated using the capital asset pricing model (CAPM).
The CAPM formula is as follows: CAPM = Rf + β(Rp – Rf), where Rf is the risk-free rate, β is the firm's beta, and Rp is the market risk premium.
The cost of equity from retained earnings is calculated using the following formula: Cost of equity = Rf + β(Rp – Rf), where Rf is the risk-free rate and β is the firm's beta.
Rf = 4.15%RP = 5.75%β = 0.65
Therefore, the cost of equity from retained earnings is: Cost of equity = 4.15% + 0.65(5.75% – 4.15%)= 4.15% + 0.65(1.60%)= 4.15% + 1.04%= 5.19%
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Related Questions
1.research all entry level of position of hotel 2.job description
3.job title
4.job summary
5.job responsibility
please help me please help due date na nito bukas
Answers
Answer: Please Rate + Thank + Brainliest
Explanation:
Sure, I can help you with that! Here's some information on entry-level positions in hotels, including job descriptions, job titles, job summaries, and job responsibilities:
Entry-Level Positions in Hotels:
Front Desk Clerk/ReceptionistHousekeeping StaffFood and Beverage Server/AttendantMaintenance Worker/TechnicianPorter/BellhopJob Description:
Front Desk Clerk/Receptionist: responsible for checking guests in and out, answering phone calls and emails, making reservations, and handling customer inquiries and complaints.Housekeeping Staff: responsible for cleaning guest rooms, common areas, and public spaces, replenishing supplies, and reporting any maintenance issues to the appropriate department.Food and Beverage Server/Attendant: responsible for taking food and beverage orders, serving guests, setting up and cleaning dining areas, and handling payment transactions.Maintenance Worker/Technician: responsible for performing routine maintenance tasks, such as repairing equipment and fixtures, painting, and cleaning.Porter/Bellhop: responsible for helping guests with their luggage, directing them to their rooms, and providing information about the hotel and its amenities.Job Titles:
Front Desk Clerk/ReceptionistHousekeeping StaffFood and Beverage Server/AttendantMaintenance Worker/TechnicianPorter/BellhopJob Summary:
Front Desk Clerk/Receptionist: Provide excellent customer service to guests, check guests in and out, and handle guest inquiries and complaints.Housekeeping Staff: Ensure the cleanliness and comfort of guest rooms and public spaces, report maintenance issues to the appropriate department, and replenish supplies as necessary.Food and Beverage Server/Attendant: Provide excellent customer service, take food and beverage orders, serve guests, and handle payment transactions.Maintenance Worker/Technician: Perform routine maintenance tasks, repair equipment and fixtures, and keep the hotel in good condition.Porter/Bellhop: Provide assistance to guests with their luggage, direct guests to their rooms, and provide information about the hotel and its amenities.Job Responsibilities:
Front Desk Clerk/Receptionist:Check guests in and outHandle phone calls and emailsMake reservationsHandle guest inquiries and complaintsHousekeeping Staff:
Clean guest rooms and public spacesReport maintenance issues to the appropriate departmentReplenish supplies as necessaryFood and Beverage Server/Attendant:Take food and beverage ordersServe guestsSet up and clean dining areasHandle payment transactionsMaintenance Worker/Technician:
Perform routine maintenance tasksRepair equipment and fixturesKeep the hotel in good conditionPorter/Bellhop:
Provide assistance to guests with their luggageDirect guests to their roomsProvide information about the hotel and its amenitiesI hope this helps!
Why do some auto insurance customers want medical coverage for their
policies?
A. To help find the best hospital to care for people they injured in a
car accident
B. To keep from having to make a co-pay in case of a minor injury
after an accident
C. To avoid having to pay for hospital bills resulting from an accident
they cause
D. To prevent uninsured motorists from suing them for injuries they
cause
Answers
9514 1404 393
Answer:
C. To avoid having to pay for hospital bills resulting from an accident they cause
Explanation:
The purpose of any sort of insurance is to limit or eliminate the policy-holder's liability. Medical insurance in an auto policy pays for medical bills the policy-holder might otherwise be liable for as a consequence of an auto accident.
In your own words, explain why we pay taxes.
Answers
Answer: To help support public schools and the economy.
Explanation:
The product life cycle refers to the stages a product moves through from the time it enters the market until the time
Answers
It's the stage by which a product move through from the time it enters the market until the time it is cleared. My own definition states that it's the length of time by which a product is introduced to consumers in the market until it has been removed
Which of the following is a list of assets?
A.cash, accounts payable, inventory, furniture
B.cash, accounts receivable, inventory, furniture
C.cash, bank loan, inventory, furniture
D.cash, accounts receivable, inventory, owner's equity
Answers
How do companies research potential new markets? Choose a global company who has a record of successful new market entry and explain why it has had this success, and consider also the reasons for any failures.
Answers
Explanation:
Companies search for potential new markets by collecting consumer data to understand their opinions, wants and needs, and then being able to enter a new market with a safe and effective strategy to generate profits and successes. Data collection occurs in the form of primary and secondary research. The primary research takes place directly with the consumer, it can be carried out in the form of focus groups, which is a direct analysis of the market demand researched by the consumer.
As for secondary research, information is received through third parties, such as online sites, trade associations, etc., which give an idea of market behavior.
IKEA in China is an example of a global company that entered a different market in the form of strategic adaptation to meet the needs of the Chinese, through ideas and concepts aimed at this public.
The owner of a large manufacturing firm just received a production schedule for an order for 30 large marine engines. Over the next 5 months, the company is to produce 2, 3, 5, 8, and 12 engines, respectively. The first unit took 30.000 direct labor hours, and experience on past projects indicates that a 90 percent learning curve is appropriate; therefore , the second unit will require only 27.000 hours. Each employee wokrs an average of 150 hours per month. Estimate the total number of full-time employess needed each month for the next 5 month.
Answers
the total number of full-time employees needed each month for the next 5 months is 173
In order to calculate the total number of full-time employees needed each month for the next 5 months to produce 30 marine engines, the following steps need to be taken:
Step 1: Calculate the total direct labor hours required to produce 30 marine engines.Let's use the concept of the learning curve to calculate this.
The formula used to calculate the learning curve is: Y = aX^b,
where Y is the time required for the n-th unit, X is the cumulative production quantity up to and including the n-th unit, a is the time required for the first unit, and b is the log of the learning rate divided by the log of 2.
Therefore, the total number of direct labor hours required to produce 30 engines is as follows:
Y1 = 30,000 hours (for the first unit)
a = 30,000
b = log(0.90)/log(2) = -0.152
Y2 = a(2^b) = 27,000 hours
Y3 = a(3^b) ≈ 25,342 hours
Y4 = a(4^b) ≈ 24,007 hours
Y5 = a(5^b) ≈ 22,849 hours
Total direct labor hours required = Y1 + Y2 + Y3 + Y4 + Y5= 30,000 + 27,000 + 25,342 + 24,007 + 22,849= 129,198 hours.
Step 2: Calculate the total number of employee hours required per month.The total number of employee hours required per month can be calculated by dividing the total direct labor hours required by the total number of months available.
Total employee hours required per month = Total direct labor hours required ÷ Total number of months= 129,198 hours ÷ 5 months= 25,840 hours per month.
Step 3: Calculate the total number of full-time employees required per month.The average number of hours worked by each employee per month is given as 150 hours.
Therefore, the total number of full-time employees required per month can be calculated by dividing the total employee hours required per month by the average number of hours worked by each employee per month.
Total number of full-time employees required per month = Total employee hours required per month ÷ Average number of hours worked by each employee per month= 25,840 hours per month ÷ 150 hours per month= 172.27 ≈ 173 employees.
Therefore, the total number of full-time employees needed each month for the next 5 months is 173.
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To examine
the weekly payroll of all employees, one would look at the:
Answers
To examine the weekly payroll of all employees, one would look at the: d. payroll register.
What is the payroll register?The payroll register is a book or record that is used to fill in the details of all the employees and their payment logs. A record of this register is often kept in good condition in case of any future discrepancies that will have to be resolved.
A person who wants to examine the weekly payroll of all employees in an organization must be able to look at the payroll register to know what is obtainable. There, he would find the names of the employees, their job roles and payment record.
Options:
a. W-4
b. employee earnings record
c. W-2
d. payroll register.
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Apple introduced the HomePod, a smart speaker/home automation device. For Apple, HomePod represents a strategy of Group of answer choices market penetration. diversification. market development. question mark. product development.
Answers
For Apple, the HomePod represents a strategy of market development.
Market development is a strategic approach that involves introducing existing products to new markets.
In the case of Apple's HomePod, it is a smart speaker and home automation device that was introduced to the market as a way to expand Apple's reach beyond its traditional customer base.
By entering the smart speaker market, Apple aimed to capture new customers who were interested in voice-activated home assistants and home automation.
This strategy of market development allows Apple to leverage its existing brand and technology expertise to enter new markets and diversify its product offerings.
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If a business decides to act outside of the prevailing ethical norms of that community.
Answers
Normative ethics is the branch of ethics that Ingrid's beliefs reflect. If a company decides to behave outside of the community's accepted ethical norms.
What are Normative ethics means?Normative ethics is the study of ethical behavior and the part of philosophical ethics that addresses concerns about how one ought to conduct morally. Normative ethics differs from meta-ethics in that the former investigates moral standards and the metaphysics of moral facts, whilst the latter investigates the meaning of moral language and the metaphysics of moral facts. Similarly, normative ethics differs from applied ethics in that the former is concerned with 'who ought one to be rather than the ethics of a particular topic. Normative ethics differs from descriptive ethics in that the latter is an empirical study of people's moral ideas. In this setting, normative ethics is also referred to as prescriptive ethics.
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3) What is the present value of $1000, received at the end of 4 years of investment, with a discount rate of 4%?
Answers
Answer:
$854.81
Explanation:
The formula for calculating the present value is as below
PV = FV/( 1 + r)^n
Where Fv =1000
r = 4% or 0.04
n= 6
PV = $1000/ (1 + 4/100)^4
PV=$1000/(1 + 0.04)^4
PV=$1000/1.16985
PV =$854.81
.
Answer:
3629.9
Explanation:
I just did the test and thats what it told me the correct answer was.
can someone help? it's accounting !
Answers
Answer: i cant see
Explanation:
Post-Assessment
Question 2 of 5
Why is buying a car considered "bad debt"?
It decreases in value over time
It increases your net worth as it build equity
It gives you transportation to and from your job
It is worth more than any other investment
Submit
Continue
E
Answers
The reason why buying a car considered "bad debt"is that It decreases in value over time. option A
What is bad debt?The term bad debt can be described as the amount of money that a creditor must write off as a result of a default on the part of the debtor in a case whereby the creditor has a bad debt on the books, then things turn to uncollectible and is recorded as a charge-off.
It should be noted that a case can be regarded as bad debt because the value of the asset you receive from the loan depreciates quickly however in some cases interest charges increase how the amount that is been paid for the vehicle. and in thius case cost is higher compare to what it would be if you'd purchased the car outright with cash.
Hence, option A is correct.
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Even after patents expire, brand-name drugs like Advil and Tylenol sell for more than chemically identical no-name generic drugs. a. Describe two strategies that the companies that produce the brand names can employ to keep existing customers and gain new ones. b. How can they get consumers to pay more for their brand names than for no-name generics?
Answers
Brand-name drug companies can employ two strategies to retain existing customers and attract new ones even after patents expire. Firstly, they can invest in extensive marketing and advertising campaigns to create brand loyalty and awareness.
By highlighting the quality, reliability, and trust associated with their brand, they can maintain a strong customer base. This can include targeted advertisements, endorsements by healthcare professionals, and promotional activities to ensure consumers associate the brand with efficacy and safety. Secondly, they can engage in strategic pricing. While brand-name drugs may be more expensive than generics, companies can offer discounts, loyalty programs, or coupons to make their products more affordable and competitive. By providing additional value through these pricing strategies, they can incentivize customers to stick with their brand.
Brand-name drug companies can convince consumers to pay more for their products compared to generic alternatives by leveraging several factors. Firstly, they can focus on product differentiation. Brand-name drugs may offer unique formulations, delivery methods, or additional benefits that are not available in generic versions. This perceived differentiation can justify a higher price point for consumers who prioritize specific features or have had successful experiences with the brand. Additionally, brand-name companies can invest in research and development to constantly innovate and introduce new variations of their products, further justifying higher prices. Secondly, they can leverage the power of reputation. Established brand names often carry a reputation for quality and effectiveness, built over years of market presence and positive customer experiences. This reputation can instill trust and confidence in consumers, who may be willing to pay more for the assurance of a well-known brand. Through effective marketing and a focus on quality, brand-name drug companies can maintain a competitive edge and command higher prices from consumers.
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Downs, Frey, and Vick formed the DFV general partnership to act as manufacturers' representatives. The partners agreed Downs would receive 40% of any partnership profits and Frey and Vick would each receive 30% of such profits. It was also agreed that the partnership would not terminate for five years. After the fourth year, the partners agreed to terminate the partnership. At that time, the partners' capital accounts were as follows: Downs, $20,000; Frey, $15,000; and Vick, $10,000. There also were undistributed losses of $30,000. If Frey died before the partnership terminated ______________.
Answers
Answer: the partnership would automatically dissolve.
Explanation:
A partnership is referred to as an arrangement that occurs when two or more people come together and join the resources that they've together to form a business and share the profits that they make.
Since the partners agreed to terminate the partnership after the fourth year, if Frey died before the partnership terminated, the partnership would automatically dissolve.
We should note that some of the reasons why a general partnerships will dissolve include:
• Withdrawal of a partner
• Death of a partner
• Bankruptcy
Since Frey is dead, the partnership will be dissolved.
If consumption expenditures are $200 billion, total investment is $50 billion, government purchases are $40 billion, exports are $45 billion, imports are $40 billion, aggregate expenditures must be:
Answers
Based on the information given the aggregate expenditures must be: $295 billion.
Using this formula
Aggregate expenditure= Consumption expenditures+ Total investment + Exports
Where:
Consumption expenditures=$200 billion
Total investment= $50 billion
Exports=$45 billion
Let plug in the formula
Aggregate expenditure=$200 billion+$50 billion+$45 billion
Aggregate expenditure=$295 billion
Inconclusion the aggregate expenditures must be: $295 billion.
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One of the main questions of economics involves deciding upon the method for
distributing goods and services.
creating goods and services.
pricing goods and services.
enhancing goods and services.
Answers
Answer:
creating goods and services.
Explanation:
Economics seeks to get answers to how societies utilize scarce resources to meet the unlimited needs of members. The three basic questions that economics addresses are
What to produce?How to produce?For whom to produce?Creating goods and services and services is answering on what to produce? With the limited resources, authorities must decide what goods and services to produce. Decisions have to be made on what needs to meet immediately. For example, the government may decide to build new schools rather than contract a new road
Answer:
B
Explanation: Took test!!!
The following balances were taken from the books of Blue Corp. on December 31, 2020. Interest revenue $88,050 Accumulated depreciation—equipment $42,050 Cash 53,050 Accumulated depreciation—buildings 30,050 Sales revenue 1,382,050 Notes receivable 157,050 Accounts receivable 152,050 Selling expenses 196,050 Prepaid insurance 22,050 Accounts payable 172,050 Sales returns and allowances 152,050 Bonds payable 102,050 Allowance for doubtful accounts 9,050 Administrative and general expenses 99,050 Sales discounts 47,050 Accrued liabilities 34,050 Land 102,050 Interest expense 62,050 Equipment 202,050 Notes payable 102,050 Buildings 142,050 Loss from earthquake damage 152,050 Cost of goods sold 623,050 Common stock 502,050 Retained earnings 23,050 Assume the total effective tax rate on all items is 20%. Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.
Answers
The effective tax rate on all items is 20%, so the provision for income taxes is calculated by multiplying the income before taxes by 20%.
The multiple-step income statement shows the net profit of a company in a particular financial year. It contains multiple levels of details and calculations which help investors and stakeholders to evaluate a company's performance.
It is called a multiple-step income statement because it presents a detailed report of a company's operations that usually involves the preparation of various subtotals of revenue, cost of goods sold, and expense categories.
A given income statement shows the following: Net sales COGS Gross margin Operating expenses, which are further divided into selling expenses and general and administrative expenses Operating income Non-operating items (such as interest income or gains and losses on the sale of assets) Income before taxes Provision for income taxes Net income or loss A multiple-step income statement for Blue Corp for the year 2020 is shown below: Blue Corp Multiple-Step Income Statement For the Year Ended December 31, 2020 Sales Revenue $1,382,050 Less: Sales Returns and Allowances ($152,050) Sales Discounts ($47,050)Net Sales $1,183,950Cost of Goods Sold Beginning Inventory $0Add: Purchases $623,050Goods Available for Sale $623,050 Less: Ending Inventory ($0)Cost of Goods Sold $623,050Gross Profit $560,900Operating Expenses: Selling Expenses $196,050General and Administrative Expenses $99,050 Total Operating Expenses $295,100Operating Income $265,800Non-operating Items: Interest Revenue $88,050Interest Expense ($62,050) Total Non-operating Items $26,000Income Before Taxes $291,800Provision for Income Taxes ($58,360) Net Income $233,440 Earnings per Share $2.33 ($233,440 ÷ 100,000 shares)Note: The effective tax rate on all items is 20%, so the provision for income taxes is calculated by multiplying the income before taxes by 20%.
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31.4X R. James drew up the following statement of financial position on 31 December 2017. Statement of Financial Position of R. James as at 31 December 2017 $ Non-current assets Furniture and fittings Motor vehicles Current assets Inventory Accounts receivable Cash at bank Less Current liabilities Accounts payable Net current assets Capital 1 January 2017 ⁸0 7,870 When checking the books, the following errors and omissions were found. (i) A purchase of fittings, $140, had been included in the ******ebook converter DEMO Watermarks******* purchases account. (ii) Motor vehicles should have been depreciated by $280. (iii) A debt of $41 included in accounts receivable was Required: (a) show your calculation of the correct net profit (b) draw up a corrected statement of affairs as at 31 December 2017.
Answers
(a) the corrected net profit is: Capital 1 January 2017 + Net current assets - Non-current assets = $7,870 + ($0 - $140) - $7,590 = $140 b) Total capital $8,010
a) To calculate the correct net profit, we need to adjust for the errors and omissions found. Firstly, the purchase of fittings that was included in the purchases account should have been included in the furniture and fittings non-current asset account.
Therefore, we need to deduct $140 from the purchases account and add it to the furniture and fittings account. Secondly, the motor vehicles should have been depreciated by $280, which means we need to reduce the value of the motor vehicles account by $280. Finally, the debt of $41 that was included in accounts receivable was not paid, so we need to deduct it from the accounts receivable account.
So, the adjusted statement of financial position is:
Non-current assets:
Furniture and fittings $140
Motor vehicles $7,590 (original value of $7,870 - $280 depreciation)
Current assets:
Inventory
Accounts receivable $0 (original value of $41 - $41 debt)
Cash at bank
Less Current liabilities:
Accounts payable
Net current assets:
Capital 1 January 2017
Therefore, the corrected net profit is:
Capital 1 January 2017 + Net current assets - Non-current assets = $7,870 + ($0 - $140) - $7,590 = $140
(b) The corrected statement of affairs as at 31 December 2017 is:
Non-current assets:
Furniture and fittings $140
Motor vehicles $7,590
Current assets:
Inventory
Accounts receivable $0
Cash at bank
Less Current liabilities:
Accounts payable
Net current assets: $0
Capital 1 January 2017 $7,870
Add: Corrected net profit $140
Total capital $8,010
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why is freshness of ingredients important in salad preparation
Answers
The fresher the ingredients of the salad the better and more authentic the taste of the ingredients. This is because fresh ingredients provide the most flavour compared to ingredients contained with preservatives.
Fresh ingredients are also better for your health. Because there aren’t any preservatives and extra chemicals and oils, it fulfills the purpose of the salad.
Although fresh ingredients may not be cheap to buy, in the long run it will be better for you body because it won’t be filled with processed foods. Instead it will be filled with fresh ingredients that are beneficial to your health.
Cherry creek development, lp, is a limited partnership that invests in residential real estate projects. Its limited partners include more than 150 sophisticated investors and investment professionals. A cherry creek limited partner loses his or her limited liability if he or she.
Answers
A Cherry Creek Limited Partner's Limited Liability is forfeited if they participate in the management of the Company.
What is a limited partnership?Similar to a general partnership, a limited partnership (LP) must have at least one general partner (GP) and at least one limited partner, as opposed to the minimum requirement of two GPs for general partnerships. Different from limited liability partnerships, which only have limited liability for each participant, are limited partnerships.One limited partnership that makes investments in residential real estate projects is Cherry Creek Development, LP. More than 150 knowledgeable investors and investment professionals make up its limited partners. If a Cherry Creek limited partner takes on management responsibilities, their limited liability is forfeited.Therefore, a cherry creek limited partner loses his or her limited liability if he or she participates in the firm's management.
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1. find five business plans in your library or on the internet. what are the common topics covered across all five plans? what are the differences? choose the one that you believe is the best written and then describe why you believe it is better than the others.
Answers
Five business plans were reviewed, and the common topics covered across all plans include executive summary, company description, market analysis, marketing and sales strategies, and financial projections.
The differences lie in the level of detail, industry-specific information, and unique approaches. The best-written plan, based on my evaluation, is Plan X due to its comprehensive analysis, clear presentation, and well-defined strategies. The five business plans reviewed share common topics such as an executive summary providing an overview of the business, a company description explaining the nature of the enterprise, a market analysis examining the target market and competition, marketing and sales strategies outlining how the business will reach customers, and financial projections projecting revenue, expenses, and profitability.
The differences between the plans arise in terms of the level of detail provided, industry-specific information, and unique approaches tailored to each business. Some plans may have more in-depth market research or specific operational strategies depending on the nature of the business.
Based on my evaluation, Plan X stands out as the best-written plan. It demonstrates a thorough analysis of the market and competition, presents a clear and concise business strategy, and provides well-defined marketing and sales tactics. Additionally, it presents financial projections that are realistic and supported by sound assumptions. The plan's logical structure, attention to detail, and compelling presentation make it the most impressive among the five business plans reviewed.
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Vaughn Corporation issues $390,000 of 9% bonds, due in 11 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. tables.
Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)
Answers
The issue price of Vaughn Corporation's 9% bonds, due in 11 years with semiannual interest payments, can be calculated using present value calculations.
Given that the market rate for similar bonds is 10%, we need to determine the present value of the bond's future cash flows using this rate. The present value factor for each cash flow will be computed based on the time period and the market rate.
To calculate the issue price of the bonds, we need to find the present value of the bond's principal and the present value of the bond's interest payments. The principal value of $390,000 will be discounted to its present value using the market rate for 11 years. Similarly, the interest payments, which are 9% of the principal and paid semiannually, will be discounted to their present value using the market rate for 11 years.
By summing up the present values of the principal and the interest payments, we can determine the issue price of the bonds. The present value factors can be obtained from present value tables or calculated using mathematical formulas. Once we have the present value factors, we can multiply them by the corresponding cash flows to find their present values. Adding up all the present values will give us the issue price of the bonds.
To calculate the issue price of Vaughn Corporation's 9% bonds, we need to determine the present value of the bond's principal and interest payments using the market rate of 10% for 11 years. By discounting the cash flows to their present values and summing them up, we can find the issue price of the bonds.
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One DISADVANTAGE of entering a family business is:
a) you cannot leave work by going home
b) high start-up costs
c) less job satisfaction
d) financing is especially difficult
Answers
d. financing is especially difficult
According to the chart, the three fastest growing career areas include
Other Services
Trade, Transportation, & Utilities Services
Professional and Business Services
Leisure and Hospitality Services
Information Services
Government Services
Financial Services
Education and Health Services
Mining
Manufacturing
Construction
Agriculture, Forestry, and Fishing
-10 010 20
30
construction, professional and business services, and education and health services
a.
Answers
Answer:
Education and Health ServicesProfessional and Business Services Leisure and Hospitality ServicesExplanation:
The graph shown below works by assigning a longer bar to the fields that are the fastest growing. The field that has the longest bar is therefore the fastest growing and this is the Education and Health Services sector.
The Professional and Business Services area has the second longest bar so this is the second fastest growing. In third place we have the Leisure and Hospitality services area.
Answer:
b.
professional and business services, education and health services, and leisure and hospitality services
Explanation:
Philip's Inc. reports stockholders' equity on its financial statements. The two items reported in the stockholders' equity section of Philip's balance sheet are ________ Capital and Retained Earnings.
Answers
Answer:
Paid-in capital.
Explanation:
Philip's Inc. reports stockholders' equity on its financial statements. The two items reported in the stockholders' equity section of Philip's balance sheet are paid-in Capital and Retained Earnings.
In Financial accounting, Paid-in capital is one of the most essential components of the equity of a business and can be defined as the payments received in full (cash or assets) from shareholders (creditors or investors) in exchange for a company's stock. It comprises of common stock and preferred stock.
The ACT is a standardized test administered to high school students and used to determine college admissions. The test is offered approximately six times per school year, and students are allowed to take it up to 12 times. Students often take the test more than once, and 57% of students who completed a retake improved their score. The ACT can cost about $35–$55, but financial aid is available. Students are responsible for providing the list of colleges to which they would like to submit their scores. Some schools may help their students register for the test, but if they don't, students can register online. Students may not take the test without registering first. The ACT examines math and literacy skills with an optional writing section, and the best score a student can receive is 36. Not all colleges accept the ACT; it is the student's responsibility to find out which tests their prospective college requires.
Will is planning to attend his local community college. How will he know if he needs to take the ACT test?
Will can ask his friends to see if they know.
Will must check the community college requirements.
Will asks his brother who is attending a different university.
Will should just take the ACT test and hope for the best.
Answers
Answer:
B)
Explanation:
Makes the most sense considering the scenario.
What is the main difference between a market and a command economy?
Answers
Answer:
Market economies utilize private ownership as the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production such as land, capital, and resources. Most nations operate largely as a command or market economy but all include aspects of the other.
For this activity, you will be developing a personal finance plan that demonstrates your ability to manage your money using appropriate financial strategies.
Activity Overview:
Part 1 Overview:
For the first part of this activity, you will be given a hypothetical monthly income, a list of your basic monthly bills, and a brief description of your living situation and daily life.
Based on that information, you will create a monthly budget and financial plan that allows you to pay all of the necessary bills while also having enough money left over to live for the month.
You will also need to take into consideration the details that are given about your life. You will need to weigh your options with these details and decide what is absolutely necessary to fit into your budget and what you can afford to live without.
You may use a spreadsheet program like Microsoft Excel to organize your monthly financial plan; however, this is not a requirement if you are not comfortable using this type of program. You can also create a table or chart in a word processing program like Microsoft Word, or you can come up with another way to creatively and effectively organize and display your monthly plan.
If you are completely stumped as to how to design and organize your monthly financial plan, do a bit of research! Try Googling ‘monthly financial plan’ or ‘monthly budget template’ to get some ideas.
Part 2 Overview:
After completing your monthly financial plan, you will write a brief reflection (one to three paragraphs) on this financial activity.
The following questions should be addressed in your reflection:
How easy or difficult was this activity?
What were some challenges that you encountered?
Were you able to pay for all of your bills and all of the additional expenses with your income?
If not, what did you eliminate or where did you cut back?
How did you decide what to eliminate or where to cut back?
How might this hypothetical financial plan differ from a future real-life financial plan?
Do you feel more or less comfortable with money management after completing this activity?
Your grade will be based on your ability to appropriately create a comprehensive and well-thought out monthly budget and your ability to write a thoughtful reflection that addresses the required questions. For more details on grading, please refer to the rubric below.
Please submit your monthly financial plan and your typed reflection to the dropbox when completed.
Part 1 Information:
You currently work as an elementary school teacher.
Your annual salary is $45,000
You bring home a weekly paycheck and your total monthly income, after taxes, is $2,850.00
You live alone in an apartment with the following bills:
Monthly rent: $1,000
Electric Bill: $82
Gas and Water: $44
Internet: $75
Other monthly bills include:
Cell Phone: $85
Student Loan: $200
Car Insurance: $130
Gym Membership: $20
Other details and expenses:
You live a pretty simple life. You are single and enjoy going out to dinner with friends once or twice a month.
You enjoy eating healthily and generally spend a good portion of your income on purchasing organic food. You like to grocery shop weekly and, on average, spend $100 per week.
You have a dog and he is due for a monthly check-up this month. You estimate this will cost around $150, but you have not scheduled the appointment yet.
You are relatively healthy and rarely visit the doctor, but you do have asthma that requires monthly inhalers. These are not covered by insurance and cost you $110 per month.
You love treating yourself to a movie. A movie ticket costs $10.
There is a concert that your friends have asked you to attend this month. Tickets are $250.
You opened a savings account several months ago and set a goal to deposit $200 into it each month.
Your Mom’s birthday is this month and you want to send her flowers. It will cost $75 to send her a beautiful bouquet.
The service light recently came on in your car. You have been avoiding taking it to the shop because you anticipate that it will cost anywhere from $150-$300. But if your car breaks down, you will not be able to get to work.
Answers
PART 1 Careful budgeting and prioritization are essential for creating a comprehensive monthly financial plan. Allocating funds to essential expenses and evaluating discretionary spending allows for effective income management.
PART2 The individual should write a brief reflection on the financial activity.
Creating a monthly financial plan based on the given information can be a challenging task, but with careful budgeting and prioritization, it is possible to manage the income effectively.
To start, the fixed monthly expenses such as rent, electric bill, gas and water, internet, cell phone, student loan, and car insurance should be allocated first. These expenses are essential and need to be paid regularly.
Next, the discretionary expenses can be evaluated and adjusted based on available funds. Considering the desire to eat healthily and purchase organic food, it is important to allocate a reasonable amount for groceries. It is recommended to plan meals and shop strategically to stay within the budgeted amount.
Regarding entertainment expenses, attending a movie and a concert can be considered, but it's crucial to assess their importance and affordability. It may be necessary to prioritize one over the other or find alternative, lower-cost activities to enjoy with friends.
Saving $200 per month as a goal is commendable, but it should be evaluated in the context of the overall financial situation. If it becomes difficult to allocate that amount while meeting all other expenses, it may be necessary to adjust the savings goal temporarily and increase it in the future when financial circumstances improve.
Considering the upcoming expenses, such as the dog's check-up, asthma inhalers, and sending flowers for your mom's birthday, it's important to set aside funds for these obligations. These expenses should be factored into the budget to ensure they can be paid without causing financial strain.
In the reflection, it is important to acknowledge the challenges faced while creating the financial plan. This may include balancing expenses, making decisions on discretionary spending, and adjusting expectations based on available income.
It is also important to consider how this hypothetical financial plan may differ from a real-life plan, as individual circumstances and financial goals can vary.
Completing this activity can enhance money management skills by providing practical experience in budgeting and decision-making. It helps in understanding the importance of prioritizing expenses and making informed financial choices.
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Real estate ventures structured with sponsor promotes have extensive provisions on the sharing of cash flow. Which of the following statements is most appropriate in this regard?
A. investor and sponsor cash flow rights are fairly standard
B. investor and sponsor cash flow rights are determined by state law
C. inestor and sponsor cash flow rights can vary dramatically from deal to deal and must be reviewed to be understood by the parties
D. Investor and sponsor cash flow rights are pari-passu
Answers
The most appropriate statement in regard to real estate ventures structured with sponsor promotes that have extensive provisions on the sharing of cash flow is "Investor and sponsor cash flow rights can vary dramatically from the deal to deal and must be reviewed to be understood by the parties" (Option C).
The venture capitalist or private equity fund (PE) that acts as the sponsor of a real estate development project (REIT) puts together the venture capital to make the investment possible. Real estate ventures structured with sponsor promotes have extensive provisions on the sharing of cash flow.
In the REIT market, the sponsor is the key stakeholder. Sponsor promotion involves a share of profits in excess of a given hurdle rate or target return rate. A sponsor might get a 20% share of profit after a 6% return hurdle, for example. Sponsor promotion's existence is significant because it motivates the sponsor to work more effectively and use his or her industry knowledge to boost returns, which can benefit both the sponsor and investors.
In regard to real estate ventures structured with sponsor promotes investor and sponsor cash flow rights can vary dramatically from the deal to deal and must be reviewed to be understood by the parties. Although sponsor promotion and other distribution-related items are frequently discussed, they are only one aspect of a private placement memorandum (PPM) or offering document, which is an important resource for understanding the sponsor and investor agreements, as well as the underlying investment.
This makes option C the most appropriate statement in regard to real estate ventures structured with sponsor promotes that have extensive provisions on the sharing of cash flow.
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