Challenging Business Problems with Detailed Answers

Hunter is the founder and CEO of a Web site development firm. Clients are typically small to midsized companies that are seeking an offbeat, innovative approach to their online design, as well as functionality that offers customers surprising ways to interact with the site. What is the more appropriate style of leadership, given the type of work Hunter wants his Web site designers to do
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Preferred stock that has the right to prior periods' unpaid dividends even if they were not declared is called:
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to beter take into account the differential impact of fixed and variable costs, marketing managers canuse ____ pricing
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Roger owns some farmland that he rents to a tenant. The tenant lives in an old farmhouse on the property and raises crops on the land. Roger is concerned about legal liability if the tenant injures someone. Roger requires the tenant to have liability insurance and to add himself to the liability coverage through an endorsement. Under the tenant's liability insurance, Roger is a(n)
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Gillespie enterprises inc. Issued $26 million in new common stock.b. Cal state university received $20,000,000 cash for 80,000 five-game-season football tickets. None of the games have been played.c. Cal state played the first football game referred to in (b).d. Hall construction company signed a contract with a customer for the construction of a new $500,000 warehouse. At the signing, hall received a check for $50,000 as a deposit to be applied against amounts earned during the first phase of construction. Answer from hall's standpoint.e. A popular snowboarding magazine company received a total of $1,800 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. F. T-mobile sold a $100 cell phone plan for service in september to a customer who charged the sale on his credit card. Answer from the standpoint of t-mobile.
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During 20x1, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted-average method. Inventory balances under each method were as follows:________. FIFO Weighted-averageJanuary 1, 20x1 $71,000 $77,000December 31, 20x1 $79,000 $83,000Orca's income tax rate is 30%.In its 2005 financial statements, what amount should Orca report as the cumulative effect of this accounting change?a) $2,800b) $4,000c) $4,200d) $6,000
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Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 1,000,000 units, the company pays $700,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $320,000, of which $70,000 are fixed costs. What is the amount of contribution margin per unit
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Four key marketing decision options are price (P), advertising (A), transportation (T), and product quality (Q). Consumer demand (D) is influenced by these variables. The simplest model for describing demand in terms of these variables is
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e market for iPhones, the following two changes take place: (1) the cost of making iPhones rises, and (2) customers begin to prefer Android-platform smartphones over iPhones. What happens to equilibrium price and equilibrium quantity
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Hlleym762 Inc. is a merchandising company. Last month the company's cost of goods sold was $62,600. The company's beginning merchandise inventory was $16,600 and its ending merchandise inventory was $25,200. What was the total amount of the company's merchandise purchases for the month?
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If invests $12,672.32 now and she will receive $30,000 at the end of 10 years, what annual rate of interest will she be earning on her investment
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A machine with a cost of $150,000 and accumulated depreciation of $95,000 is sold for $70,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:
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A share of Lash Inc.'s common stock just paid a dividend of $2.10. If the expected long-run growth rate for this stock is 5%, and if investors' required rate of return is 18.5%, what is the stock price
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What is the profit margin for a firm with the following: dividend payout ratio of 55 percent, capital intensity ratio of 1.4, debt-equity ratio of .68, and sustainable growth rate of 6.2 percent
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At a sales volume of 44,000 units, Thoma Corporation's sales commissions (a cost that is variable with respect to sales volume) total $585,200. To the nearest whole cent, what should be the total sales commission per unit at a sales volume of 46,300 units
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You invested $1,400 in an account that pays 7 percent simple interest. How much more could you have earned over a 20-year period if the interest had compounded annually
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The government sets a minimum wage above the current equilibrium wage. What effect does the minimum wage have on equilibrium in the labor market? What are its effects on consumer surplus, producer surplus, and total surplus in the labor market? (Hint: in the labor market, workers are 'producers' and firms are 'consumers'.)
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Aggregate supply will shift when there is a change in all or any of the following EXCEPT __________.
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At the current year-end, Simply Company found that its overhead was underapplied by $2,500, and this amount was not considered material. Based on this information, Simply should:
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Last year Janet purchased a $1,000 face value corporate bond with an 11% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.21%. If Janet sold the bond today for $993.14, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.
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A bank estimates that their average balance on demand deposit accounts is $3,500, net of float. Each account costs the bank $250 per year in processing costs. The bank collects an average of $10 per month on each account in service charges. Assume reserve requirements are 10%. What is the net cost of an average demand deposit
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Pitkins Company collects 20% of a month's sales in the month of sale, 70% in the month following sale, and 6% in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are: Cash collections in April are budgeted to be:January February March April$200,000 $300,000 $350,000 $250,000Required:What are the budgeted Cash collections for April?
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"You decide to purchase a building for $30,000 by paying $5,000 down and assuming a mortgage of $25,000. The bank offers you a 15-year mortgage requiring annual end-of-year payments of $3,188 each. The bank also requires you to pay a 3 percent loan origination fee, which will reduce the effective amount the bank lends to you. Compute the annual percentage rate of interest of this loan."
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Leno Company sells goods to the Fallon Company for $11,000. It offers credit terms of 3/10, n/30. If Fallon Company pays the invoice within the discount period, Leno Company will record a debit to Cash in the amount of:
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