Pharoah Company compiled the following financial information as of December 31, 2022:
Service revenue $1171000
Common stock 233000
Equipment 319000
Salaries and wages expense 390000
Rent expense 97500
Depreciation expense 487500
Cash 276000
Dividends 83000
Supplies 39000
Accounts payable 155000
Accounts receivable 110000
Retained earnings, 1/1/22 567000
Pharoah's total assets at December 31, 2022 are: _________.
Answers
Answer: $913000
Explanation:
The net income must be calculated first. This will be:
Net income = Service revenue – (Salaries + Rent + Depreciation)
= 1171000 - (390000+97500+487500)
= 1171000 - 975000
= $196000
Now, the retained earnings has to be calculated. This will be:
Retained earnings (31/12/2022) = Beginning + Net income – Dividends
= 567000+196000-83000
= $680000
Now, the tockholders’ equity will be:
Stockholders’ equity= Common stock+Retained earnings(31/12/2022)
= $233000+$680000
= $913000
Related Questions
what are the planning advantages
Answers
Answer: Planning is the process of making or carrying out plans for establishment of goals, policies, and procedures for a social or economic unit. Planning has numerous advantages.
Explanation:
Advantages of Planning:
Planning facilitates management by objectives. Planning begins with determination of objectives. Planning minimizes uncertainties. Business is full of uncertainties.Planning facilitates co-ordination.Planning improves employee’s moral.Planning helps in achieving economies.Planning facilitates controlling.Planning provides competitive edge.Planning encourages innovations.To learn more about planning,
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ADVANTAGES OF PLANNING:
The following are the advantages of Planning:
1. It helps in better utilization of resources.
2. It helps in achieving the objectives.
3. It improves the competitive spirit of the firm
4. Improves effectiveness.
5. It minimizes future uncertainties.
6. It helps in the effective control of business operations.
7. Provides direction and vision.
8. It .monitors the progress.
9. It serves as the basis for controlling.
10. It motivates the employees.
Why are many goods sold in the United States produced
overseas, often in several countries?
Answers
Managers are strictly required to properly understand the role of Information Systems in their organization. Failure to do so might have adversary effects on the existence of their organization. In relation to role of IS in organization, there are practical examples where IS has created a situation to replace roles organizations have assumed for years in Ethiopian business environment. Mention at least two organizations IN Ethiopia whose role has been replaced/ threatened by IS.
Answers
Answer:
Explanation: the most which is
When an interviewer says, “Tell me about yourself,” you should feel free to talk openly about your personal life.
False
True
Answers
Answer:
False
Explanation:
You should tell them about your personality and how others see you. Take for example your strengths and weaknesses as a person, or about your traits. If they ask you about your personal life keep it brief, they don't need too much info about that rather a small aspect of it.
Answer:
TRUE
Explanation:
Joseph and Krystal are part of your social group. They joined Missile’s Financial Services together as middle managers. Each one, reports to a different senior manager. These senior managers report to the Managing Director. Once a month after payday, Joseph, Krystal and other members of the social group all try to have lunch together.
Joseph is very distressed. ‘I’ve had an awful week and this morning was the worst!’ He recounts what happen between himself and Nicholas, his manager.
‘Nicholas and I were to meet with a new supplier to finalize a contract. I have been dealing with the supplier all this time, over two and a half months and we just needed to finalize the costing. We had reached an agreement about the cost that both of us were comfortable with. For the past two weeks, I have been trying to get Nicholas to look at the contract and agree the figures etc. We really need this guy’s company. They are fast and have a great reputation for products and services. The price is good and they are willing to customize the stationary, with no additional cost to us. Anyway, Nicholas was always too busy to meet. I emailed him the contract and my teams thoughts on how we should proceed hoping he would read it.’ My team consists of the Accounts/Finance Manager, Inventory Manger, Legal, Research & Development, Public Relations Manager and I, and we meet at different times and days, whether collectively or selectively.
‘Anyway we, Nicholas and I, met with the supplier this morning. We are going through the contract, the next thing I know Nicholas says, ‘This won’t work for us. The cost is too high. Where did these calculations come from?’ ‘If the floor had opened up and swallowed me I could have not been more embarrassed. I mean I spent three weeks, working on it with the team Accounting, PR and Legal! Joseph shaking his head continued, ‘he just took over the conversation. I mean we got the contract signed but in the end all that happened was that the figures were rearranged we still end up paying the same.’ ‘I am tired of this foolishness. He stays locked in his office on his cell every day. Only God knows what he does in there.’
1. Do you believe that Nicholas is an unethical manager? Justify your response by choosing one of the ethical decision making concepts outlined in unit 2 to argue/support your writing.
2. From the chosen ethical decision making concept selected by you in question 1, show its relationship to any one of the variables in an analytical tool, outlined in unit 1, read.
Answers
1. Based on the information provided, it is not possible to ascertain whether Nicholas is an unethical manager. However, Joseph’s account of the situation raises some red flags about Nicholas’ behavior.
2. The chosen ethical decision-making concept is fairness, which is one of the key ethical principles in business.
1. Based on the information provided, it is not possible to ascertain whether Nicholas is an unethical manager. However, Joseph’s account of the situation raises some red flags about Nicholas’ behavior. It appears that Nicholas did not take the time to review the contract or the team’s thoughts, but still took over the conversation with the supplier and changed the figures. This behavior could be seen as a violation of the ethical principle of fairness, which involves treating others in a reasonable, equitable, and impartial way. Nicholas’ actions suggest that he did not give due consideration to the team’s input or their efforts to finalize the contract, which could affect their working relationship and trust in him as their manager.
2. The chosen ethical decision-making concept is fairness, which is one of the key ethical principles in business. Fairness is based on the idea of treating all stakeholders equitably and impartially, taking into account their needs, interests, and perspectives. In this case study, Nicholas’ actions appear to violate the principle of fairness by disregarding the efforts of Joseph and his team to finalize the contract, and making unilateral changes without adequate review or discussion.
To analyze this situation using an analytical tool, we can use the Stakeholder Mapping tool, which helps to identify and categorize stakeholders based on their level of interest and power. In this tool, stakeholders are divided into four categories: High power/high interest, High power/low interest, Low power/high interest, and Low power/low interest. In this case, Joseph and his team are the stakeholders with high power and high interest in the situation, as they are responsible for finalizing the contract.
Using the Stakeholder Mapping tool, we can see that Nicholas’ actions have the potential to undermine the trust and collaboration of high power/high-interest stakeholders, who are critical to the success of the project. Specifically, his actions may cause frustration, resentment, and loss of confidence in his management ability. This could result in a breakdown of communication and cooperation, which would ultimately affect the team’s performance and the overall success of the project. Therefore, it is important for Nicholas to consider the perspectives and input of all stakeholders, including those with high power and high interest, when making decisions that affect them. By doing so, he can ensure that his decisions are ethical, fair, and aligned with the needs of all stakeholders.
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what are the objectives of HRM?
Answers
Answer:
Explanation:
The primary objective of HRM is to ensure the availability of competent and willing workforce for an organization. Beyond this, there are other objectives too. Specifically, HRM objectives are four fold: Societal, Organization, Functional and personal
Please Help soon
Reflect on how the money multiplier concept can be an important tool of both expansionary as well as contractionary monetary policy for any central bank such as the U.S. Federal Reserve Bank?
Answers
The money multiplier can be used as an expansionary and also an expansionary tool by a given government.
What is an expansionary tool?As an expansionary tool, the money multiplier may be used to increase the amount of money supply that is in an economy. This would cause the interest rates to be low so that people would not have much benefits from saving their money.
As a contractionary toolThe money multiplier can be used to reduce the amount of money that is in circulation in a given economy. This would make people want to save more money in the bank because the interest rate is going to be raised.
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If the economy were run with a strictly Keynesian point of view, what would the government's role be in regards to the U.S. economy?
a. The government is responsible for managing the economy.
b. The government is responsible for monitoring the economy but not interfering with it.
c. The government is responsible for managing the economy with a hands-off approach.
Answers
Answer:
A.
Explanation:
The keynesian prescription for stabilizing the economy implies government intervention at macroeconomic level-increasing aggregate demand when private demand falls and decreasing aggregate demand when private demand rises.
help please!
A firm has costs of $1,000,000 for new investment outlays that are subject to an investment tax credit. The stated government purpose of having this investment tax credit is to stimulate the firm's business investments. Suppose the investment tax credit rate is 30%. How much does this reduce the cost of purchasing the assets? Assume an 8% rate of borrowing and a corporate tax rate of 40%.
Answers
ANSWER: The tax credit serves to immediately reduce the costs. The savings is 10% of one million dollars or $100,000r eduction in the purchase.
Al-Baida wants to buy a new machine with special purposes for an amount $ (1) million for the production of a product, and the economic life of the machine is (10) years, bearing in mind that there is no residual value for the machine at the end of its useful life. The company adopts the straight-line method in calculating the depreciation, and it is expected that the annual revenues from operating the machine will be 1,200,000 ID, and the annual expenses excluding taxes, (700,000 ID. If you know that the company adopts a discount rate of 12% The income tax rate is 30% for all years. Required: Calculate the following: .1. payback period. 2. Rate of accounting return on investment.
Answers
1. Payback period will be 2 years.
2. The rate of accounting return on investment for the machine is 35%.
To calculate the payback period, we need to determine the number of years it takes for the company to recover the initial investment of $1 million.
Step 1: Calculate the annual net cash flow.
Annual net cash flow = Annual revenues - Annual expenses excluding taxes
Annual net cash flow = $1,200,000 - $700,000 = $500,000
Step 2: Determine the payback period.
Payback period = Initial investment / Annual net cash flow
Payback period = $1,000,000 / $500,000
Payback period = 2 years
Therefore, the payback period for the investment in the machine is 2 years.
To calculate the rate of accounting return on investment, we need to determine the average annual net income generated by the investment.
Step 1: Calculate the average annual net income.
Average annual net income = (Annual revenues - Annual expenses excluding taxes) * (1 - Tax rate)
Average annual net income = $500,000 * (1 - 0.30)
Average annual net income = $350,000
Step 2: Calculate the rate of accounting return on investment.
Rate of accounting return on investment = Average annual net income / Initial investment * 100
Rate of accounting return on investment = $350,000 / $1,000,000 * 100
Rate of accounting return on investment = 35%
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Why u think the porcentage of tax filers has most dramatically increased for the 65+ age group?
Answers
Answer:
The more people that retire, the more it increased.
Explanation:
Typically when people retire, they get their taxes filed. The percentage of the 65+ age group who have their taxes filed increases the more people who retire, then typically use tax filers.
Answer: The percentage of tax filers has most dramatically increased for the 65+ age group because
more people in the 65+ community are retiring and so, they are getting their taxes filed.
Good luck!
It is ____________ to miss a job opportunity because you are a minority worker.
Answers
Reverse discrimination
When a person is denied an opportunitity because of preferences given to protected-class individuals who may be less qualified.
Which of the following supports a business strategy that incorporates the key
operational capability of flexibility?
O Utilizing specialized, automated equipment for consistent product buildup
O Using electronic tools to improve customer communications
Having high quality standards for suppliers
O Reducing labor and shelving costs
O Maintaining excess production capability
Answers
Business strategy that incorporates the key operational capability of flexibility is utilizing specialized, automated equipment for consistent product buildup.
Thus, the correct option is A.
What is Business strategy?
A business strategy explains the precise methods through which a company intends to position itself, accomplish its short- and long-term objectives, and expand over time.
A plan outlining how a corporation will accomplish its objectives is known as a business strategy. Although there are many distinct business strategies, cost leadership, differentiation, and focus are a few typical examples.
Cost, quality, distribution, technology, and intellectual property are the only five corporate tactics (IP). These five concepts, or a mixture of them, form the basis of all corporate strategy. Focusing your business on just one thing is generally the simplest to implement.
A strategy is essentially just a hypothesis. For a strategy to be effective, the issue that needs to be resolved must be accurately diagnosed, a guiding policy must be established to handle the issue, and a set of cogent actions must be proposed to carry out the policy.
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For each event listed below, select the appropriate category which describes the effect of the event on a statement of cash flows: a. Cash provided/used by operating activities. b. Cash provided/used by investing activities. c. Cash provided/used by financing activities. d. Not a cash flow. ____ 1. Payment on long-term debt ____ 2. Issuance of bonds at a premium ____ 3. Collection of accounts receivable ____ 4. Cash dividends declared __ 5. Issuance of stock to acquire land ____ 6. Sale of available-for-sale securities (long-term) ____ 7. Payment of employees' wages 8. Issuance of common stock for cash ____ 9. Payment of income tax payable ____ 10. Purchase of equipment ____ 11. Purchase of treasury stock (common) ___ 12. Sale of real estate held as a long-term investment
Answers
Answer:
Selection of appropriate categories of the effects on a statement of cash flows:
1. Payment on long-term debt ____
c. Cash provided/used by financing activities.
2. Issuance of bonds at a premium ____
c. Cash provided/used by financing activities.
3. Collection of accounts receivable ____
a. Cash provided/used by operating activities.
4. Cash dividends declared ____
c. Cash provided/used by financing activities.
5. Issuance of stock to acquire land ____
c. Cash provided/used by financing activities.
b. Cash provided/used by investing activities.
6. Sale of available-for-sale securities (long-term) ____
b. Cash provided/used by investing activities.
7. Payment of employees' wages ____
a. Cash provided/used by operating activities.
8. Issuance of common stock for cash ____
c. Cash provided/used by financing activities.
9. Payment of income tax payable ____
a. Cash provided/used by operating activities.
10. Purchase of equipment ____
b. Cash provided/used by investing activities.
11. Purchase of treasury stock (common) ____
c. Cash provided/used by financing activities.
12. Sale of real estate held as a long-term investment ____
b. Cash provided/used by investing activities.
Explanation:
a) Categories:
a. Cash provided/used by operating activities = normal business activities
b. Cash provided/used by investing activities = investments in assets
c. Cash provided/used by financing activities = funding requirements
d. Not a cash flow.
a. At the beginning of the year, Addison Company's assets are $176,000 and its equity is $132,000. During the year, assets
increase $80,000 and liabilities increase $59,000. What is the equity at year-end?
b. Office Store Company has assets equal to $224,000 and liabilities equal to $194,000 at year-end. What is the equity for
Office Store Company at year-end?
c. At the beginning of the year, Quaker Company's liabilities equal $69,000. During the year, assets increase by $60,000,
and at year-end assets equal $190,000. Liabilities decrease $18,000 during the year. What are the beginning and ending
amounts of equity?
Answers
At the beginning of the year, Addison Company's assets will be:
a. The equity at year-end will be $197,000.
b. The equity for Office Store Company at year-end will be $30,000.
c. The beginning and ending amounts of equity will be $103
What is assets?
Assets are items of value owned by an individual or an organization. Assets are divided into two categories: tangible and intangible. Tangible assets are physical in nature, such as cash, land, buildings, equipment, inventory, and investments. Intangible assets are non-physical, such as intellectual property, goodwill, copyrights, and trademarks. Assets can be used to measure the value of a business and its performance.
a. Equity at year-end = $176,000 + $80,000 - $59,000 = $197,000
b. Equity for Office Store Company at year-end = $224,000 - $194,000 = $30,000
c. Beginning equity = $69,000; Ending equity = $190,000 - $69,000 - $18,000 = $103
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The Consumer Division lost $28,000 and the Industrial Division had operating income of $58,000. Management has analyzed the situation and wants you to do a differential analysis to determine the increase or decrease in overall operating income based on the following:
Expected decrease in revenues $280,000
Expected decrease in total variable costs $200,000
Expected decrease in fixed costs $102,000
a. $2,000 increase in operating income
b. $80,000 decrease in operating income
c. $22,000 increase in operating income
d. $80,000 decrease in operating income
Answers
Answer: c. $22,000 increase in operating income
Explanation:
Expected decrease in revenues -$280,000
Expected decrease in total variable costs (-$200,000)
Expected decrease in fixed costs (-$102,000)
Expected increase(decrease) in operating income $22,000
Costs are to be deducted from revenues so if the costs are decreasing, the mathematical treatment would be to add the decrease to the revenues which is how the above was calculated.
The incomes of consumers goes up. If higher incomes lead to greater demand, you are assuming tennis rackets are a ____________ good
Answers
Tennis rackets are a normal good.
What is a normal good?
A normal good is a good that has a positive relationship with income. When income increases, the demand for the good increases and when income declines, the demand for the good declines.
On the other hand, an inferior good is a good that has a negative relationship with income. When income increases, the demand for the good decreases and when income declines, the demand for the good increases.
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A conceptual framework is an analytical tool with several variations and contexts. It can be applied in different categories of work where an overall picture is needed. It is used to make conceptual distinctions and organize ideas.
Answers
Incomplete question. I inferred you want to know if it is true or false.
Answer:
True
Explanation:
This term is often used in research by researchers to explain the reason for the hypotheses and conclusions made their work, etc. In other words, the conceptual framework paints a clearer/overall explanation of an idea.
For example, if an invention is made of a Car that uses water as fuel; such an invention must have a conceptual framework document explaining the idea behind that.
You are given the following information for Lightning Power Company. Assume the company’s tax rate is 24 percent.
Debt: 9,000 5.8 percent coupon bonds outstanding, $1,000 par value, 24 years to maturity, selling for 106 percent of par; the bonds make semiannual payments.
Common stock: 420,000 shares outstanding, selling for $60 per share; beta is 1.11.
Preferred stock: 18,000 shares of 3.6 percent preferred stock outstanding, a $100 par value, selling for $81 per share.
Market: 5 percent market risk premium and 4.6 percent risk-free rate.
What is the company's WACC?
Answers
The Weighted Average Cost of Capital (WACC) for Lightning Power Company is 9.84%.
To calculate the Weighted Average Cost of Capital (WACC) for Lightning Power Company, we need to determine the cost of each component of its capital structure and their respective weights. The WACC is the weighted average of these costs.
Cost of Debt:
The debt component consists of 9,000 bonds with a 5.8 percent coupon rate, a $1,000 par value, and selling for 106 percent of par. The semiannual coupon payment is calculated as (5.8% * $1,000) / 2 = $29.
The current market price of the bond is 106% of $1,000, which is $1,060. The yield to maturity (YTM) can be calculated using financial calculators or Excel. Let's assume the YTM is 4.5%. Therefore, the cost of debt is 4.5%.
Cost of Common Stock:
The cost of common stock is determined using the Capital Asset Pricing Model (CAPM). The risk-free rate is given as 4.6%, and the market risk premium is 5%. The beta for Lightning Power Company's common stock is 1.11.
Using the CAPM formula: Cost of equity = Risk-free rate + Beta * Market risk premium. Therefore, the cost of equity is 4.6% + 1.11 * 5% = 9.71%.
Cost of Preferred Stock:
The cost of preferred stock is the dividend yield, which is the preferred dividend divided by the market price per share. The preferred stock has a 3.6% dividend yield, and it is selling for $81 per share. Therefore, the cost of preferred stock is 3.6% / $81 = 4.44%.
Next, we need to determine the weights of each component based on their market values. The market value of debt is 9,000 * $1,060 = $9,540,000. The market value of common stock is 420,000 * $60 = $25,200,000.
The market value of preferred stock is 18,000 * $81 = $1,458,000. The total market value of the company's capital structure is $36,198,000.
Now we can calculate the WACC using the formula:
WACC = (Weight of Debt * Cost of Debt) + (Weight of Equity * Cost of Equity) + (Weight of Preferred Stock * Cost of Preferred Stock).
Weight of Debt = $9,540,000 / $36,198,000 = 0.2639 (26.39%)
Weight of Equity = $25,200,000 / $36,198,000 = 0.6961 (69.61%)
Weight of Preferred Stock = $1,458,000 / $36,198,000 = 0.0401 (4.01%)
Plugging in the values, we get:
WACC = (0.2639 * 4.5%) + (0.6961 * 9.71%) + (0.0401 * 4.44%) = 2.88% + 6.78% + 0.18% = 9.84%.
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Ben and jane have been approved for a $220,000, 30-year mortgage with an apr of 5. 82%. What will be their total interest for the 30 years?.
Answers
The total interest for a 30-year mortgage with APR of 5.82% is calculated by multiplying the total loan amount of $220,000 by the APR (5.82%).Total interest for Ben and Jane's mortgage would be $321,880.
What is interest?Interest is the cost of borrowing money, or the return earned on money invested. It is expressed as a percentage of the principal, and can be calculated in various ways depending on the type of loan or investment. Interest is typically paid on a regular basis, such as monthly or annually. When borrowing money, interest is the fee paid for using someone else's money. When investing money, interest is the return earned on that investment.
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Please help!! URGENT! Question & answers in photo
Answers
Answer:
its black? or is it just mine
Explanation:
Answer the following questions on the basis of the monopolist's situation is illustrated in the following graph.
a. At what output rate and price does the monopolist operate?
b. In the equilibrium, approximately what is the firm's total cost and total revenue?
c. What is the firm's economic profit or loss in equilibrium?
Answers
The following answers are based on a monopoly economy.
The output rate and the price at which the monopolist operates based on the graph is 100 quantities at $10.In the market equilibrium, the firm's total cost and total revenues are $750 and $1000 respectively. The firm's economic profit in the equilibrium is $250.What is a monopoly?A monopoly, as defined by Irving Fisher, is a market with "no competition," resulting in a scenario in which a certain individual or organization is the exclusive supplier of a given product.
To arrive at answer a, we need to recall that the equilibrium of a monopolist is when the Marginal Cost equals the Marginal Revenue and the Marginal Cost Curve (MC) cuts the Marginal Revenue Curve (MR ) from below.
At this point, the equilibrium output is 100, and the equilibrium price is $ 10 for every unit of production.
For the answer is b, given that the firm is producing 100 units of goods at an average total cost of $7.5 (derived from the point that aligns with MR = MC), therefore,
Total Cost = Equilibrium Output * ATC (Average Total Cost)
= 7.5 * 100
= $750
To arrive at answer c,
Recall that Economic profit is the difference between the money collected from the sale of a product and the expenses of all inputs utilized, as well as any opportunity costs, is the economic profit or loss.
Hence, Economic Profit = Total Revenue (TR) Less Total Cost (TC)
= $1000 - $ 750
= $250
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q Conflict Consequences 2 Difference between critical and Creative thinking. 3. Positive Use & Teisure time 41m Portance & Self Identity Svalues associated with creative Thinking
Answers
Critical thinking involves analyzing and evaluating information, while creative thinking involves generating new ideas and solutions. Positive use of leisure time includes engaging in activities that promote personal well-being, learning, self-improvement, socializing, and exploring new experiences.
Difference between critical and creative thinking:
Critical thinking is a cognitive process that involves analyzing and evaluating information or arguments in a logical and systematic manner. It focuses on objective analysis, reasoning, and problem-solving. Critical thinking requires the ability to question assumptions, recognize biases, and assess evidence to form well-reasoned judgments or decisions.
On the other hand, creative thinking involves generating new ideas, insights, or solutions. It is a process of divergent thinking, breaking away from conventional thoughts and exploring alternative perspectives.
Creative thinking often involves combining different ideas, making connections, and thinking outside the box. It encourages imagination, flexibility, and the ability to embrace uncertainty.
While critical thinking aims to assess and evaluate existing information or arguments, creative thinking aims to generate new possibilities or approaches. Critical thinking seeks to analyze and deconstruct, while creative thinking seeks to synthesize and construct.
Positive use of leisure time:
Leisure time refers to the period when individuals are free from work or other obligations and can engage in activities of their choice. Positive use of leisure time involves engaging in activities that contribute to personal well-being, growth, and fulfillment. Here are some examples:
Pursuing hobbies and interests: Engaging in activities such as painting, playing a musical instrument, gardening, or sports can provide relaxation, personal enjoyment, and a sense of accomplishment.
Learning and self-improvement: Using leisure time to learn new skills, read books, take online courses, or engage in personal development activities can enhance knowledge, broaden perspectives, and foster personal growth.
Physical and mental well-being: Allocating leisure time for exercise, meditation, yoga, or other wellness activities promotes physical fitness, reduces stress, and enhances overall well-being.
Socializing and building relationships: Spending leisure time with family, friends, or participating in community activities helps foster social connections, build relationships, and strengthen support networks.
Exploring new experiences: Traveling, visiting museums, attending cultural events, or trying new cuisines broadens horizons, provides exposure to different cultures, and creates memorable experiences.
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10.EX.19.09 NPV and IRR
Each of the following scenarios is independent. All cash flows are after-tax cash flows.
Required:
1. Patz Corporation is considering the purchase of a computer-aided manufacturing system. The cash benefits will be $727,000 per year. The system costs $2,738,000 and will last six years. Compute the NPV assuming a discount rate of 12 percent.
Should the company buy the new system?
2. Sterling Wetzel has just invested $309,000 in a restaurant specializing in German food. He expects to receive $49,464 per year for the next nine years. His cost of capital is 7.40 percent. Compute the internal rate of return. Round your answers to whole percentage value (for example, 16% should be entered as "16" in the answer BOX).
%
Answers
1. To compute the NPV for the purchase of the computer-aided manufacturing system, we need to discount the cash benefits at the given discount rate and subtract the initial cost. The cash benefits are $727,000 per year for 6 years.
NPV = Cash benefits / (1 + discount rate)^n - Initial cost
NPV = $727,000 / (1 + 0.12)^6 - $2,738,000
Using a calculator, the NPV is approximately -$527,592.78 (rounded to the nearest dollar).
Since the NPV is negative, it indicates that the present value of cash benefits is less than the initial cost. Therefore, based on the NPV criterion, the company should not buy the new system.
2. To compute the internal rate of return (IRR) for Sterling Wetzel's investment in the restaurant, we need to find the discount rate that makes the present value of cash flows equal to the initial investment.
IRR is the rate at which the NPV equals zero.
IRR = Cost of capital
In this case, the initial investment is $309,000 and the cash flows are $49,464 per year for 9 years.
Using a financial calculator or Excel's IRR function, the IRR is approximately 9% (rounded to the nearest whole percentage value).
Therefore, the internal rate of return for Sterling Wetzel's investment is 9%.
Yield to maturity: Serengeti Corp. has five-year bonds outstanding that pay a coupon of 8.8 percent. If these bonds are priced at $1,064.86, what is the yield to maturity on these bonds? Assume semiannual coupon payments. What is the effective annual yield?
Answers
The yield to maturity on the bonds is 3.939% and the effective annual yield is 17.01%.
What are bonds?Bonds are debt securities that are issued by corporations, governments, and other organizations to raise capital. Essentially, when an organization issues a bond, it is borrowing money from investors.
First, we need to calculate the present value of each cash flow. The bond pays a semiannual coupon of 8.8%/2 = 4.4%. It will pay this coupon for ten semiannual periods (5 years x 2 semiannual periods per year). At the end of the ten periods, it will also pay back the face value of the bond, which is $1,000.
The present value of each semiannual coupon payment can be calculated using the following formula:
PV = C / (1 + r/2)^n
Where C is the coupon payment, r is the semiannual yield to maturity, and n is the number of semiannual periods until the payment.
Using the given numbers, we get:
PV of each coupon payment = $44 / (1 + r/2)^n
The present value of the face value payment can be calculated as:
PV of face value payment = $1,000 / (1 + r/2)^10
Now we can calculate the present value of all the cash flows by adding up the present values of each coupon payment and the face value payment:
Bond price = PV of coupon payments + PV of face value payment
$1,064.86 = $44 / (1 + r/2)^1 + $44 / (1 + r/2)^2 + ... + $44 / (1 + r/2)^10 + $1,000 / (1 + r/2)^10
To solve for r, we can use a financial calculator or a spreadsheet program. Using a financial calculator, we get a semiannual yield to maturity of 3.939%.
To calculate the effective annual yield, we first calculate the semiannual effective yield:
Effective semiannual yield = (1 + 3.939%)² - 1 = 8.149%
Then we can calculate the effective annual yield by compounding the semiannual effective yield:
Effective annual yield = (1 + 8.149%)² - 1 = 17.01%
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What would likely be involved in an equity release?
Group of answer choices
non-profit investments
high-performing employees
delivery trucks
shares of stock of a company
Answers
Answer: delivery trucks
Explanation: I took the test
A taxpayer tells you that they had health insurance coverage for the entire year, but they did not bring proof of the coverage.This information along with all other inforÂmation gathered during your interview does not seem unusual or questionable.As a tax preparer, you should:
a. Send the taxpayer home to get their insurance card
b. Prepare the return using the information without seeing any proof of insurance coverage
c. Prepare their return without giving them credit for having health insurance coverage24
Answers
As a tax preparer, you should prepare return using information without seeing any proof of the insurance coverage.
What is tax?To ensure that taxpayers are paying proper amount of tax at the proper time and obtaining the proper tax allowances and tax reliefs, policy actions and individual conduct are referred to as tax compliance. A tax is a mandatory financial charge or other sort of levy that is placed on a taxpayer by an administrative body to pay for certain public expenditures and administrative costs. While most tax rates are progressive and based on annual income levels, other taxes are flat percentage rates based on an individual's yearly income. Taxation is the economic process of transferring funds from people or businesses to the government. On economic wellbeing and growth, this may have either favorable or unfavorable impacts (known as the fiscal multiplier).
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Generally, a loan obtained from a bank will be a _____ loan.
A. Taxed
B. Term
C. Variable
D. Collateral-free
Answers
Answer:
Term
Explanation:
Bettina Amman is a sales consultant. She travels all over the country selling her company’s products. Her total monthly expenses for June, July, and August were $4,356.01, $9,011.20, and $8,780.00. What was her average monthly expenditure?
a
$7,382.40
b
$22,147.21
c
$8,090.25
d
$6,565.00
Answers
Answer:
a. $7,382.40
Explanation:
With regards to the above,
Bettina Amman 's average monthly expenditure calculation is shown below;
= Total monthly expenses / Number of months
= $4,356.01 + $9,011.20 + $8,780 / 3
= $7,382.40
Therefore, Bettina Amman's average monthly expenditure is $7,382.40
Which examples demonstrate common education and qualifications for Counseling and Mental Health Services careers? Check all that apply.
1. Soo uses leadership skills to guide a group of people in religious worship.
2. Jacqueline stays calm even when counseling patients who are angry or upset.
3. Brent uses math skills to help people fill out financial paperwork.
4. Nakisha provides therapy to families and has a master’s degree in Psychology.
5. Tao pays close attention to what patients say and how they behave during counseling sessions.
6. Adam lifts and carries young children while playing with them outdoors.
Answers
Answer:
Jacqueline, Nakisha, Tao or B, D, E
Explanation:
got it right
Answer:
B. Jacqueline stays calm even when counseling patients who are angry or upset.
D. Nakisha provides therapy to families and has a master’s degree in Psychology.
E. Tao pays close attention to what patients say and how they behave during counseling sessions.
Explanation:
edge 2021 :)
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