The final balance in Bob's account is approximately $26,356.58.
The total amount of money that Bob has saved in 6 years is:
$315/month × 12 months/year × 6 years = $22,680
To calculate the final balance in Bob's account, we need to take into account the interest earned on his savings. The interest rate per month is 0.33%, or 0.0033 in decimal form.
To calculate the balance after the first month, we multiply the initial balance by (1 + 0.0033), since the interest is added to the account at the end of the month:
Month 1 balance = $22,680 × (1 + 0.0033) = $22,760.44
To calculate the balance after the second month, we multiply the previous balance by (1 + 0.0033) again:
Month 2 balance = $22,760.44 × (1 + 0.0033) = $22,841.02
We can continue this process for each month over the 6-year period. Alternatively, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where A is the final amount, P is the initial principal, r is the interest rate per period (in decimal form), n is the number of compounding periods per year, and t is the number of years.
In this case, P = $22,680, r = 0.0033, n = 12 (since interest is compounded monthly), and t = 6. Substituting these values, we get:
A = $22,680 × (1 + 0.0033/12)^(12×6) = $26,356.58
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for a business needing millions of dollars of capital, wanting only a few owners to manage the business, and expecting to lose money in its early years, what business form would be particularly attractive?
A business form that would be particularly attractive for a business needing millions of dollars of capital, wanting only a few owners to manage the business, and expecting to lose money in its early years is the limited partnership.
A limited partnership is a company in which a general partner manages the company and limited partners contribute cash or property and share in the profits or losses of the business. The general partner is also personally liable for all of the business's debts and obligations, whereas the limited partners are only responsible for debts up to the amount of their investment.
A limited partnership is a form of partnership that is suitable for companies with large amounts of money and that want only a few owners to manage the company, as it allows for a separation of management and ownership. Furthermore, it is appealing to companies that anticipate losing money in their early years because limited partners' financial obligations are limited to the amount of their investment.
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under perfect competition, any profit-maximizing producer faces a market price equal to its group of answer choices variable costs total costs fixed costs marginal costs
The option d. marginal costs is correct.under perfect competition, any profit-maximizing producer faces a market price equal to marginal costs.
By guaranteeing that their incremental or marginal profit rises, producers can maximise their profit. Since the marginal cost must be subtracted from the marginal revenue in order to calculate the marginal profit, the marginal revenue and marginal cost can both be raised.
The additional money that results from raising the quantity is known as the marginal revenue. The additional revenue "at the margin" is another name for this. Profit is therefore maximised when marginal cost equals marginal revenue, or when marginal profit is equal to zero.
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when a firm ignores the opportunity cost of capital when making investment or shutdown decisions, this is a case of
The answer is c. Hidden-cost fallacy. A hidden-cost fallacy occurs when a company decides to invest or close down without considering the potential cost of capital.
The sunk cost fallacy describes our propensity to carry on with a project we've put money, time, or effort into, even if the current costs outweigh the benefits. Even though the phrase sounds like technical jargon, it is a frequent mistake in both personal and professional decision-making.
The Sunk Cost Fallacy describes our propensity to continue with a project after devoting time, money, or effort to it, regardless of whether the current costs outweigh the benefits.
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Note that the full question is :
When a firm ignores the opportunity cost of capital when making investment or shutdown decisions, this is a case of
a. Fixed-cost fallacy
b. Sunk-cost fallacy
c. Hidden-cost fallacy
d. None of the above
when the market interest rate decreases, the bond: group of answer choices maturity period decreases. yield to maturity increases. price increases. current yield increases. coupon rate decreases.
When the market interest rate decreases, the bond price increases.
This is because when the market interest rate decreases, the bond's fixed interest payments become more attractive to investors compared to other investments, causing demand for the bond to increase. As a result, the bond price increases to match the higher demand, and the bond's yield to maturity decreases. The current yield of the bond also decreases because it is based on the bond's fixed coupon rate, which remains the same even as the bond price increases.
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which of the following is not an authoritative pronouncement of international financial reporting standards (ifrss)? group of answer choices international accounting standards issued by the iasc and adopted by the iasb international accounting principles international financial reporting standards issued by the iasb interpretations issued by the standing interpretations committee (sics) and adopted by the iasb interpretations issued by the international financial reporting interpretations committee (ifrics)
"The following is not an authoritative pronouncement of international financial reporting standards (IFRS)- international accounting principles."
International accounting standards are a set of inter-nationally-agreed principles relating to the way th-at companies pre-sent their accounts. Inter-national Financial Reporting Standards (IFRS) are a set of account-ing standards that govern how part-icular types of trans-actions & events should be reported in financial state-ments. They are main-tained by the International Accounting Standards Board (IASB).
Inter-national Financial Reporting Standards (IFRS) are a set of account-ing rules for the financial state-ments of public companies that are intend-ed to make them consistent, trans-parent, & easily compar-able around the world.
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an investor has a budget of $30 million. he can invest in the projects shown above. if the cost of capital is 5%, what investment or investments should he make?
The investor could choose to invest in both Project B and Project C, as their combined NPVs are equal to or greater than the NPVs of Projects A and D. Correct option is C.
To determine which investment or investments the investor should make, we need to calculate the net present value (NPV) of each project. NPV is a measure of the present value of future cash flows minus the initial investment, discounted by the cost of capital.
Using a 5% cost of capital, we can calculate the NPV of each project as follows:
Project A: NPV = -$35 million + ($14 million / 1.05) + ($14 million / 1.05^2) + ($14 million / 1.05^3) + ($14 million / 1.05^4) = $2.2 million
Project B: NPV = -$21 million + ($7 million / 1.05) + ($7 million / 1.05^2) + ($7 million / 1.05^3) + ($7 million / 1.05^4) + ($7 million / 1.05^5) = $1.6 million
Project C: NPV = -$14 million + ($7 million / 1.05) + ($7 million / 1.05^2) + ($7 million / 1.05^3) + ($7 million / 1.05^4) = $1.6 million
Project D: NPV = -$21 million + ($10.5 million / 1.05) + ($10.5 million / 1.05^2) + ($10.5 million / 1.05^3) = $2.6 million
Therefore, Correct option is C.
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Complete question is:
An investor has a budget of $30 million. he can invest in the projects shown above. if the cost of capital is 5%, what investment or investments should he make?
Initial investment Cashflow
Project A $35 million $14 million per year for four years
Project B $21 million $7 million per year for five years
Project C $14 million $7 million per year for four years
Project D $21 million $10.5 million per year for three years
A) Project A
B) Project B
C) Project B and Project C
D) Project C and Project D
how many shares do the founders hold pre-financing? (a) for trendsetter case study harvard business publishing
According to the Trendsetter case study published by Harvard Business Publishing, the two founders, Parker and Patel, each hold 50,000 shares of common stock, for a total of 100,000 shares held by the founders prior to any financing rounds.
In the Trendsetter case study published by Harvard Business Publishing, the founders Parker and Patel each hold 50,000 shares of common stock, for a total of 100,000 shares prior to any financing rounds. This information is important for understanding the ownership structure of the company, as well as the potential dilution that may occur with future financing rounds.
The total number of shares held by the founders is typically an important factor in determining the initial valuation of a company, and may also impact the decision-making process around future equity issuances or exit strategies.
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--The complete question is, What is the total number of shares held by the founders in the Trendsetter case study published by Harvard Business Publishing, prior to any financing rounds?--
in which antitrust case did the supreme court begin to apply the per se rule to determine whether a firm was in violation of the sherman antitrust act? group of answer choices the standard oil case. the alcoa case. the ibm case. the mit case.
In the Standard Oil case the supreme court begin to apply the per se rule to determine whether a firm was in violation of the Sherman antitrust act. So the option A is correct.
The court found that Standard Oil had engaged in unfair competitive practices and had acquired a monopoly position in the oil industry. This was determined to be a violation of the Sherman Antitrust Act, and Standard Oil was forced to break up into several different companies.
The court's application of the per se rule meant that without any proof of an anti-competitive effect, any practice that unreasonably restrained competition in a particular market was considered to be a violation of the law.
This decision was significant in that it set a precedent for future cases in which the courts would be able to identify and punish anticompetitive practices without having to prove that they caused the market to suffer. So the option A is correct.
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The complete question is:
In which antitrust case did the supreme court begin to apply the per se rule to determine whether a firm was in violation of the Sherman antitrust act?
Group of answer choices
A. the standard oil case.
B. the ALCOA case.
C. the IBM case.
D. the MIT case.
suppose with the pre-2018 corporate tax rate structure a c-corporation business pays 15% tax on its first $50,000 income, 25% tax on income above $50,000 but below $75,000, and 34% tax on income above $75,000. suppose the business earns $75,000 in income this year. its average tax rate is closest to . selected answer: d) 18% answers: a) 22% b) 14% c) 10% d) 18
The average tax rate for the c-corporation business earning $75,000 income under the pre-2018 corporate tax rate structure is d)18.4%.
To calculate the average tax rate, we first need to calculate the total tax paid by the business. For the first $50,000 of income, the tax paid is 0.1550,000 = $7,500. For the remaining $25,000 of income ($75,000 - $50,000), the tax paid is 0.2525,000 = $6,250.
So, the total tax paid is $7,500 + $6,250 = $13,750. The average tax rate is then calculated by dividing the total tax paid by the total income earned, which is $13,750/$75,000 = 0.184, or 18.4%. Rounded to the nearest whole number, the average tax rate is 18.4%.
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private equity fields include a. leveraged buyouts (lbos) b. all of the options c. hedge funds d. venture capital
All of the options listed in the answer choices are private equity fields. B is the correct option .
In general , Private equity is known as the investments made in private companies and these are not publicly traded on a stock exchange. Private equity firms typically invest in companies those are having high growth potential.
LBOs involve acquiring a company using a significant amount of borrowed funds, that focus on improving the company's operations and selling it for a profit. Hedge funds are investment funds that use a range of strategies, including private equity investments, to generate high returns for investors. Venture capital involves investing in startup companies with high growth potential.
Hence, B is the correct option
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edward bought a new car for 35000 us dollars (usd). the value of the car depreciates by 17 % each year. how much is the car worth after 5 years?
After 5 years, the car would be worth approximately $13,791.13 in the given case.
After the first year, the value of the car would be:
$35,000 - (17% x $35,000) = $29,050
After the second year, the value of the car would be:
$29,050 - (17% x $29,050) = $24,129.50
After the third year, the value of the car would be:
$24,129.50 - (17% x $24,129.50) = $20,042.77
After the fourth year, the value of the car would be:
$20,042.77 - (17% x $20,042.77) = $16,635.95
After the fifth year, the value of the car would be:
$16,635.95 - (17% x $16,635.95) = $13,791.13
Therefore, after 5 years, the car would be worth approximately $13,791.13.
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the justification that presents the economic, technical, operational, schedule, legal and contractual, and political factors influencing a proposed information systems project is called:
A project proposal is a document that outlines the details of a proposed information systems project. It justifies the project and presents the economic, technical, operational, schedule, legal and contractual, and political factors that can influence the project's success.
Operational factors refer to the impact of the project on the organization's operations. The proposal should explain how the project will improve or change the organization's processes and procedures.
Schedule factors refer to the timeline of the project. The proposal should outline the project's milestones and deliverables and provide a timeline for completing the project.
Legal and contractual factors refer to the legal and contractual obligations associated with the project. The proposal should outline any legal or contractual requirements that must be met to complete the project.
Political factors refer to the impact of the project on the organization's stakeholders. The proposal should explain how the project will affect the organization's stakeholders and how the organization plans to manage any potential conflicts.
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a venture's common equity account increased by $100,000 the past year and ended the year at $500,000. what was its sustainable sales growth rate?
The sustainable sales growth rate of a venture is the percentage of increase in sales that the venture can continue to maintain without incurring additional debt or issuing more equity shares.
A venture's sustainable sales growth rate is the percentage of sales growth it can maintain without borrowing or issuing more stock.
Divide the venture's retention rate by one minus it, then multiply by the return on equity (ROE).
A venture's sustainable sales growth rate is:
Retention rate x ROE / (1 - Retention rate)
After payouts, the venture retains the retention rate.
Change in common equity divided by venture net income calculates it.
If common equity increases, the enterprise retained more earnings than it dispersed to shareholders.
If common equity decreases, the venture dispersed more money than it retained.
The enterprise retained $100,000 more earnings than it distributed to stockholders, increasing its common equity by $100,000.
We cannot assess retention or sustainable sales growth without the venture's net income.
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internal service funds select one: a. should be presented in the proprietary fund statements in a single column. b. should be presented in the governmental fund statements in a single column. c. should be presented in multiple columns (one for each major fund) in a separate set of fund statements. d. need not be reported in the fund statements.
Internal service funds should be presented in multiple columns (one for each major fund) in a separate set of fund statements. The correct option is C.
Internal service funds are a type of proprietary fund that is used to account for services provided by one department or agency to other departments or agencies within the same government entity. Since these funds are used for internal purposes only, they are not reported in the governmental fund statements. Instead, they are reported in a separate set of fund statements known as the proprietary fund statements, where they should be presented in multiple columns for each major fund to provide more detailed information about their financial activities.
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you want a seat on the board of directors of four keys, incorporated. the company has 255,000 shares of stock outstanding and the stock sells for $48 per share. there are currently 3 seats up for election. if the company uses cumulative voting, how many shares do you need to guarantee that you will be elected to the board?
In guarantee election to the board of directors of Four Keys, Incorporated, you will need to acquire a specific number of shares of stock. Determine the total votes available, we need to know the number of shares of stock outstanding, which is 255,000, and each share has one vote.
Thus, the total votes available are 255,000.
In cumulative voting, each shareholder can allocate their votes to one candidate or distribute them among the candidates.
Since there are three seats up for election, the total number of votes for the seats is calculated by multiplying the total votes available (255,000) by the number of seats (3), which equals 765,000.
Guarantee your election to the board, you need to secure more than 1/3 of the total votes, which is required for each seat.
Calculate this, divide the total votes for the seats (765,000) by 4 to find the 1/4th share, which is required to ensure you have more votes than the other three candidates combined. This equals 191,250 votes.
Secure your election, you need to add one vote to the 1/4th share, which will give you a total of 191,251 votes. This will guarantee your election to the board.
Since each share represents one vote, you will need to purchase 191,251 shares of Four Keys, Incorporated's stock to guarantee your election to the board of directors.
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if we suffer from stagflation, which of the following is true? the correct policy could involve either increasing or decreasing the demand we always combat inflation the economy can adjust by shifting the supply curve to the left prices are higher but the gdp is now above the full employment rate
If we suffer from stagflation, the correct statement is: the correct policy could involve either increasing or decreasing the demand. In stagflation, prices are higher, but the GDP is not above the full employment rate.
Stagflation is a situation characterized by stagnant economic growth, high unemployment, and high inflation. To combat stagflation, policymakers may consider either increasing or decreasing demand.
Increasing demand could help stimulate economic growth and reduce unemployment, while decreasing demand could help reduce inflation. It is essential to find the right balance between these policies, as focusing on only one aspect might worsen the other.
Additionally, it's important to note that the economy cannot adjust to stagflation by merely shifting the supply curve to the left, as it may exacerbate the existing problems. Overall, addressing stagflation requires a mix of carefully crafted monetary and fiscal policies.
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coleman manufacturing co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $6,000 for electric power. total fixed costs are $20,000. at 12,000 units of production, a flexible budget would show a.variable and fixed costs totaling $79,200. b.variable costs of $55,200 and $24,000 of fixed costs. c.variable costs of $46,000 and $20,000 of fixed costs. d.variable costs of $55,200 and $20,000 of fixed costs.
The budget for variable costs is then $12,000 units (12,000 x $4.60), or $55,200 and Fixed cost is $20000.The variable costs and fixed costs are calculated to find the cost of production. Thus,option d is correct
The variable cost per unit is used in a flexible budget, and the actual units are multiplied by this variable cost per unit. Direct labour costs of $40,000 and electric costs of $6,000 make up the variable expenditures.
As a result, the total variable costs are $46,000. These costs are then divided by 10,000 units to yield a variable cost per unit of $4.60. The budget for variable costs is then $12,000 units (12,000 x $4.60), or $55,200. By definition, fixed costs remain constant across all levels of production.
Direct labour costs of $40,000 and electric costs of $6,000 make up the variable expenditures. Variable cost is equal to 4.6 times $12,000.
$2000 is the total fixed cost.
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18) regulation of the financial system a) occurs only in the united states. b) protects the jobs of employees of financial institutions. c) protects the wealth of owners of financial institutions. d) ensures the stability of the financial system.
The security of the financial system is ensured by control of the industry. Here option D is the correct answer.
The regulation of the financial system refers to the set of rules and regulations imposed by the government or other regulatory authorities to monitor and control the functioning of financial institutions and markets. The main objective of financial regulation is to maintain the stability of the financial system, which is crucial for the overall health of the economy.
Financial regulation is essential to ensure that financial institutions operate safely and soundly and that they are adequately capitalized and able to meet their financial obligations. It also seeks to protect consumers and investors by promoting fair and transparent practices in financial transactions and by providing safeguards against fraud and abuse.
Financial regulation is not limited to the United States and is a global phenomenon, with many countries having their regulatory bodies and regulations to ensure the stability of their financial systems. While financial regulation may benefit the employees and owners of financial institutions, its primary purpose is to protect the overall health of the financial system and the broader economy.
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according to the table above, which of the following is true? motorcyclesfishgermany50010greece5100according to the table above, which of the following is true?germany has an absolute advantage in motorcycles and fish.germany has an absolute and comparative advantage in motorcyles.no country has a comparative advantage in motorcycles or fish.greece has an absolute and comparative advantage in motorcycles.
According to the table above, it can be observed that Germany produces 500 motorcycles and 10 fish, while Greece produces 5 motorcycles and 100 fish.
To determine which country has an absolute and comparative advantage, we need to compare their production efficiencies. Germany has an absolute advantage in producing motorcycles since it produces more motorcycles than Greece, and Greece has an absolute advantage in producing fish as it produces more fish than Germany. However, no country has a comparative advantage in producing motorcycles or fish since the opportunity cost of producing one good over another is the same in both countries. Therefore, the correct answer is "no country has a comparative advantage in motorcycles or fish."
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the purchase is generally recorded in the financial statements when which of the following activities takes place? multiple choice send payment. receive items. place purchase order. request prices and availability.
When the purchase order is placed, the purchase is generally recorded in the financial statements.
Purchasing is the activity of acquiring products or services from an external source to support the company's operations. This is usually done by creating a purchase order (PO), which is a document that includes the item, amount, delivery date, and other terms of the purchase.
How do you record purchases in financial statements?The following steps will help you record purchases in financial statements:
You need to choose a method of inventory accounting, such as First In First Out (FIFO), Last In First Out (LIFO), or Weighted Average.
Creating a purchase order is the next step. Purchases are made by creating purchase orders, which are documents that contain the details of the goods or services ordered. The order includes the item, amount, delivery date, and other terms of the purchase. The purchaser prepares the purchase order, which is then submitted to the supplier.
After that, you should receive the goods or services ordered. The purchaser receives the goods or services ordered once the order has been completed. This also includes double-checking the details of the order received with the details on the purchase order. Invoice processing is the next step. The invoice is then sent to the purchaser by the supplier. The invoice specifies the goods or services received, as well as their price and any taxes, shipping, and handling costs.
Once you have received the invoice, make a payment. The purchaser prepares and sends the payment to the supplier once they have received the invoice. After that, the purchaser enters the transaction in their accounting system.The recording of purchases involves recording purchases in the financial statements. Purchases are recorded in financial statements when the purchase order is placed.
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which of the following could be a component of other comprehensive income (loss)? a.gains or losses on extraordinary items b.realized gains or losses from sale of investments in available-for-sale securities c.translation adjustments from converting the financials statements of a company's foreign operations into u.s. dollars d.warranty liability adjustments
Relevant component of other comprehensive income: Realized gains or losses from the sale of investments in available-for-sale securities could be a component of other comprehensive income (loss). Option B
Comprehensive income is the total change in equity that comes from the transactions, events, and circumstances that are not from owner's investment or dividend. It includes items of revenue, expenses, gains, and losses that are excluded from net income.Gains or losses on extraordinary items can't be a component of other comprehensive income (loss). An extraordinary item is an item that is considered to be unusual and infrequent in occurrence.
A warranty liability adjustment is a component of expense and not comprehensive income.Translation adjustments from converting the financial statements of a company's foreign operations into US dollars are a component of cumulative translation adjustment (CTA), which is a component of comprehensive income but not a component of other comprehensive income (loss).Hence, Realized gains or losses from the sale of investments in available-for-sale securities is a relevant component of other comprehensive income (loss). Option B
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in the case of kase v. french and french, as reported by our textbook, the property at the heart of the dispute was a
In the case of kase v. french and french, as reported by our textbook, When france was forced to cede lands to Britain in 1763, it was in Paris. At first, both in America and elsewhere, things did not go well for the English.
After driving General Edward Braddock's force away from the Duquesne Fort by a distance of many miles, the entire frontier became vulnerable to long-lasting attacks by French and Native Americans.
The English did not appear to have any overarching plans, and the colonies could not be coerced into making loyal and enthusiastic contributions to the war effort.Benjamin Franklin's visionary plan for inter-colonial defence and unity was approved by representatives from the eight colonies who gathered at the so-called Albany Congress in 1754. However, that initial plan for voluntary unification was rejected by both the king and the colonial assemblies. Future rebel generations, however, did not disregard his preferences and would once more explore plans for a stronger union.
Complete question:
In the case of kase v. french and french, as reported by our textbook, the property at the heart of the dispute. how and When did the English and French settle their dispute in Canada?
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how much would you pay for a u.s. treasury bill with 106 days to maturity quoted at a discount yield of 2.30 percent? assume a $1 million face value. (enter your answer in dollars not in millions. do not round intermediate calculations. round your answer to 2 decimal places.)
The amount that will be paid on the US treasury bill is $993227.78
A Treasury Bill (T-Bill) is a short-term U.S. government financial commitment with a maturity of one year or less and is supported by the Treasury Department. Treasury bills are usually sold in denominations of $1,000. However, some can reach a maximum denomination of $5 million in non-competitive bids. These securities are widely regarded as low-risk and secure investments.
Face value = $10000000
Interest = 2.3%*1000000*106/360
= $6772.22
Amount = face value - interest
= $1000000 - $6772.22
= $993227.78.
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please do the capm estimation: what is the cost of equity for a firm if the beta equals 1.5, and you find the risk-free interest rate is 6% and the expected return on the market portfolio is 15%?
The cost of equity for a firm if the beta equals 1.5 and the expected return on the market portfolio is 15% is also 19.5%.
Here, the beta is a measure of the firm's sensitivity to market movements. A beta of 1.5 implies that the stock's return will move 1.5 times the market's return, either positively or negatively.
The risk-free rate is the return on an investment that is considered to have no risk, such as a government bond. In this case, the risk-free rate is given as 6%.
The expected return on the market portfolio is the return that investors expect to earn from investing in a diversified portfolio of stocks. It reflects the overall level of risk and return in the market. Here, the expected return on the market portfolio is given as 15%.
Using the CAPM formula, we can calculate the cost of equity for the firm as follows:
Cost of equity = 6% + 1.5 * (15% - 6%)
Cost of equity = 6% + 1.5 * 9%
Cost of equity = 6% + 13.5%
Cost of equity = 19.5%
Therefore, the cost of equity for the firm is 19.5%. This implies that investors require a 19.5% rate of return to invest in the firm's stock, given its level of risk as measured by its beta.
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the emergence of global financial markets is due in no small part to a. advances in computer and telecommunications technology b. none of the options c. enforcement of the soviet system of state ownership of resources of production d. government regulation and protection of infant industries
The emergence of global financial markets is due in no small part to advances in computer and telecommunications technology. The correct option is a.
What are global financial markets?Global financial markets are the markets where the trade of assets, which include stocks, bonds, currencies, commodities, and derivatives, occurs between multiple regions across the globe.
Global financial markets also enable capital to flow between nations, providing access to more significant pools of investment capital and more extensive markets for issuers.
What is the emergence of global financial markets due to?Advances in computer and telecommunications technology are responsible for the emergence of global financial markets. With the advent of computers and the internet, it became possible for traders to connect and trade with one another, regardless of their geographical locations, thus resulting in the creation of global financial markets.
Because of technology, global financial markets have become more efficient and transparent. It allows for instantaneous transactions and real-time data analysis. As a result, it has attracted an increasingly large number of investors and traders, which has contributed to the growth and development of global financial markets.
In summary, the emergence of global financial markets is due to advances in computer and telecommunications technology.
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the value today of the following cash flows is $6,049.30 at an interest rate of 3.6 percent. what is the value of the year 3 cash flow?
The value of the Year 3 cash flow is $1097.62
Cash flows is $6,423.71.
An interest rate is 5.8 percent.
We have to determine the value of the Year 3 cash flow.
Compound interest is interest that is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.
Year Cash Flow PV 3.6% Discounted Cash Flows
1 $1,665 0.9653 $1491.31
2 $1,845 0.9317 $1569.93
3 0 0.8993 $0
4 $2,505 0.8681 $2000.93
Present Value without year 3 cash flow $5062.17
Present value of $5062.17 = $5062.17/1.036⁴
Present value of $5062.17 = 6049.3
Let year 3 cash flow be x.
x × 0.8993 + 5062.17 = 6049.30
x = 1097.62
So the missing cash flow is $1097.62.
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The complete question is:
The value today of the following cash flows is $6,423.71 at an interest rate of 5.8 percent. What is the value of the Year 3 cash flow?
Year Cash Flow
1 $1,665
2 $1,845
3 ?
4 $2,505
creek company uses the percentage of credit sales method in determining its bad debt expense. the following information comes from the accounting records of creek company: cash sales$ 280,000 credit sales720,000 total sales1,000,000 credit balance in the allowance for doubtful accounts2,000 bad debt loss rate3% what is the estimated bad debt expense?
Based on the data given by Creek Company, the estimated bad debt expense is $21,600.
The estimated bad debt expense using the percentage of credit sales method can be calculated by multiplying the total credit sales by the bad debt loss rate.
Cash sales $280,000
Credit sales $720,000
Total sales $1,000,000
Credit balance in the allowance for doubtful accounts $2,000
Bad debt loss rate 3%
The bad debt expense is the amount of the total sales that the company does not expect to collect from customers. The company uses the percentage of credit sales method to estimate the bad debt expense.
The estimated bad debt expense can be calculated by multiplying the total credit sales by the bad debt loss rate.
Bad debt expense = Total credit sales × Bad debt loss rate
Using the given values, Total credit sales = Credit sales = $720,000
Bad debt loss rate = 3%
Bad debt expense = $720,000 × 3% = $21,600
Therefore, the estimated bad debt expense is $21,600.
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what is a company's functional currency? group of answer choices the reporting currency of its parent for a subsidiary. the currency of the primary economic environment in which it operates. the currency of the country where it has its headquarters. the currency in which it prepares its financial statements. the currency it chooses to designate as such.
A company's functional currency is the currency of the primary economic environment in which it operates. it is the currency in which the company prepares its financial statements. Options B and D are correct responses.
The functional currency of a company is the primary currency in which the company operates. It is the currency in which the company conducts its business activities, generates revenue, and incurs expenses. A company's functional currency may be different from its reporting currency.
A company's functional currency is the currency that best reflects the economic reality of the company's operations. It is determined by evaluating various factors such as the location of the company's customers, suppliers, and competitors, the currency of the country in which the company's operations are primarily conducted, and the currency in which the company's financial transactions are denominated.
A company's financial statements are prepared in its functional currency. The functional currency of a company may change if there is a change in the primary economic environment in which the company operates. The change in functional currency must be accounted for in the company's financial statements.
Option B and option D are correct answers.
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your pharmaceutical company delivered the wrong shipment of medication to a chain of pharmacies. you need to write to the pharmacies to acknowledge the mistake. what tips should you remember when writing the letter? check all that apply. explain how you will rectify the situation. apologize with sincerity. avoid responsibility. make misleading promises.
It is important to remember to explain how you will rectify the situation and apologize with sincerity. You should avoid shifting responsibility or making misleading promises.
Check all that apply when writing the letter to acknowledge a mistake made by a pharmaceutical company that delivered the wrong shipment of medication to a chain of pharmacies: Explain how you will rectify the situation. Apologize with sincerity. Avoid responsibility. Make misleading promises. In situations like these, it is important to take responsibility for the mistake and express a willingness to correct it. The letter should include an explanation of the mistake, an apology for the inconvenience it may have caused, and a clear plan of action for how the situation will be rectified.
It is also important to avoid making any misleading promises that cannot be fulfilled, as this can damage the trust between the pharmaceutical company and the chain of pharmacies.
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burger heaven, inc., conducts a chain-style franchise. this involves the transfer to chester, one of its franchisees, of a license. a trade name. the formula to make a product. the ownership of the business.
Burger Heaven, Inc. conducts a chain-style franchise, which means that they allow others to use their successful business model, brand name, and product formula.
In this case, Burger Heaven, Inc. has transferred a license and trade name to Chester, who has become one of their franchisees. This means that Chester can now use the Burger Heaven name and formula to create and sell their own version of the product.
Furthermore, Burger Heaven has also transferred ownership of the business to Chester, meaning that Chester is now responsible for managing and operating the franchise. Burger Heaven, Inc. may provide support and guidance to Chester to ensure that the franchise operates successfully and maintains the standards of the brand.
Overall, a chain-style franchise is a popular business model that allows companies like Burger Heaven, Inc. to expand their brand and reach more customers through the use of franchisees. It allows for growth and success for both the franchisor and franchisee when executed properly.
QUES: burger heaven, inc., conducts a chain-style franchise. this involves the transfer to chester, one of its franchisees, of a license. a trade name. the formula to make a product. the ownership of the business
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