1. No, a standard costing system would not be beneficial in this situation since changes happen daily.
What is costing system?Costing system is an important tool for identifying and measuring the costs associated with a given product, project or service. It is an important part of the overall budgeting process for an organization.
2. No, a standard costing system would not be beneficial in this situation since inventory is trying to be eliminated.
3. No, a standard costing system would not be beneficial in this situation due to lack of timeliness.
4. Yes, a standard costing system would be beneficial in this situation since product costs are entered into GL inventory accounts at standard cost, rather than actual cost.
5. No, a standard costing system would not be beneficial in this situation since robot likely not having the variance that humans would.
6. No, a standard costing system would not be beneficial in this situation since the company is using real time operating performance metrics.
7. No, a standard costing system would not be beneficial in this situation since there are unintended behavioral consequences.
8. Yes, a standard costing system would be beneficial in this situation since it can be useful in budgeting.
9. Yes, a standard costing system would be beneficial in this situation since variances would be identified as soon as they occur.
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By the property of "more is better," the consumer views the products under consideration as:
A.goods.
B.bads.
C.inferior goods.
D.normal.
The property of "more is better" indicates that the consumer views the products under consideration as goods. Option b is answer.
This means that the consumer values the product positively and desires more of it, given that other factors like price and availability remain constant. This is the basic assumption of consumer behavior in economics, which states that consumers are rational and strive to maximize their utility by choosing the best combination of goods that meet their preferences and budget constraints.
Option b is answer.
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research evidence shows that targets of hostile bids have higher debt and inside ownership and lower liquidity and debt capacity.
The given statement "research evidence shows that targets of hostile bids have higher debt and inside ownership and lower liquidity and debt capacity." is true becaue research evidence shows that targets of hostile bids tend to have higher debt levels and inside ownership,
It means that managers and insiders hold a greater percentage of the company's stock. This can make the company less attractive to potential bidders as insiders may be less willing to sell their shares. Additionally, targets of hostile bids tend to have lower liquidity, which means that their shares may be harder to buy and sell quickly. Finally, targets of hostile bids tend to have lower debt capacity, which means that they may have difficulty raising funds to defend against the bid.
"
Complete question
Research evidence shows that targets of hostile bids have higher debt and inside ownership and lower liquidity and debt capacity.
True
False
"
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In 2019, Mary had the following items:
Salary $30,000
Personal use casualty gain 10,000
Personal use casualty loss (after $100 floor)
Business Casualty Loss 17,000
4,000
Other itemized deductions 21,000
Assuming that Mary files as head of household (has one dependent child), determine her taxable income for 2019. None of the casualty items relate to a Federally declared disaster area. What is Mary’s casualty loss deduction?
Mary's taxable income for 2019 can be calculated as follows below steps: Therefore, Mary's casualty loss deduction for 2019 is $2,890.
Here Total income = Salary + Personal use casualty gain = $30,000 + $10,000 = $40,000
Adjusted gross income (AGI) = Total income - Personal use casualty loss = $40,000 - ($4,000 + $100) = $35,900
Itemized deductions = Business Casualty Loss + Other itemized deductions = $17,000 + $21,000 = $38,000
Since Mary is filing as head of household, her standard deduction for 2019 is $18,350.
Taxable income = AGI - Itemized deductions - Standard deduction = $35,900 - $38,000 - $18,350 = -$20,450
Mary's taxable income is negative, which means that she has a tax loss for the year. However, since tax losses cannot be used to offset non-business income, Mary's taxable income is considered to be zero for the year.
Mary's casualty loss deduction can be calculated as follows:
Casualty loss deduction = Personal use casualty loss - 10% AGI = ($4,000 - $100) - (10% x $35,900) = $2,890
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Question: Which of these categories describes the largest group of liabilities for banks—by far? a. Demand and long-term deposits b. Trading c. Borrowing.
The largest group of liabilities for banks by far is generally a) demand and long-term deposits.
These deposits represent the funds that customers have entrusted to the bank, often in the form of checking or savings accounts. Banks use these deposits to make loans and investments, which generate income for the bank. While trading and borrowing can also be significant sources of liabilities for banks, they typically represent a smaller portion of a bank's total liabilities compared to deposits.
Option a) is the correct answer.
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If you deposit a $50 check in the bank, the immediate impact on your bank's balance sheet will be a
$50 decrease in reserves and a $50 increase in checkable deposits.
$50 increase in reserves and a $50 increase in checkable deposits.
$50 increase in reserves and a $50 decrease in checkable deposits.
$50 decrease in liabilities and a $50 increase in checkable deposits.
The impact will be a $50 increase in reserves and a $50 increase in checkable deposits.
When you deposit a check in the bank, the bank adds the amount to your account balance, increasing the checkable deposits. At the same time, the bank increases its reserves, which is the portion of deposits that the bank holds in cash or deposits at the Federal Reserve. This helps the bank meet its reserve requirements and enables it to make loans and invest in securities.
Therefore, the immediate impact on the bank's balance sheet is a $50 increase in reserves and a $50 increase in checkable deposits.
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based on the following information: Assume the six-month European call option has a striking price of $0.95/CHF. Assume the option premium is $0.02/CHF What is the breakeven price of this call option? $0.95/CHF $0.93/CHF o $0.97/CHF o cannot be determined
Based on the given information, the breakeven price of this call option can be calculated by adding the option premium to the striking price. In this case, the striking price is $0.95/CHF and the option premium is $0.02/CHF. Breakeven price = Striking price + Option premium Breakeven price = $0.95/CHF + $0.02/CHF Breakeven price = $0.97/CHF, So, the breakeven price of this call option is $0.97/CHF.
The price at which sales precisely cover all related expenses is known as the break-even point for a good or service. This indicates that at the break-even pricing, a business is neither making a profit nor suffering a loss. By taking into account both fixed costs (like rent and equipment) and variable costs (like labor and raw materials) incurred during the creation and sale of the good or service, the break-even price is calculated.
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Which performance appraisal system is best suited for an organization pursuing a differentiation strategy? a. A parity-based system with forced distribution. b. A merit-based system with forced distribution. c. A parity-based system with free distribution. d. A merit-based system with free distribution.
The best performance appraisal system for an organization pursuing a differentiation strategy would be a merit-based system with free distribution. Option d is answer.
This is because in a differentiation strategy, the organization seeks to distinguish itself from competitors by providing unique and high-quality products or services. Therefore, it is important to identify and reward top performers who contribute to this differentiation. A merit-based system allows for individual performance to be evaluated and rewarded accordingly, while free distribution ensures that there are no limitations on the number of high performers who can receive recognition and rewards.
A parity-based system, on the other hand, may not effectively differentiate top performers and could discourage high performers from continuing to strive for excellence. A forced distribution system, whether parity-based or merit-based, may also limit the number of employees who can be recognized as high performers, which could hinder the organization's differentiation efforts.
Thus, option d is answer.
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ebit is another term for blank . multiple choice question. income after taxes residual income net operating income operating assets
The correct answer is "net operating income." EBIT stands for "earnings before interest and taxes," which is another term for net operating income.
EBIT is an acronym for Earnings Before Interest and Taxes. It is a measure of a company's profitability that looks at operating earnings before the deductions of interest expenses and taxes. EBIT is often used by analysts and investors as a way to evaluate a company's operating performance without the impact of financing and tax decisions. It can also be helpful in comparing the profitability of different companies within the same industry.
EBIT is not the same as net operating income, which is a measure of a company's operating income after all operating expenses, including taxes and interest, have been deducted. Residual income, on the other hand, is the amount of income that remains after all expenses have been paid, including financing and capital costs. Operating assets are the assets that a company uses in its core business operations.
Overall, EBIT is an important financial metric that can provide valuable insight into a company's financial health and performance, particularly when used in conjunction with other measures of profitability and financial analysis tools.
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How can Sue create context in which Candace will support Bow Wow's strategic objectives? Check all that apply. If certaln employees who tend to be short with customers do not Improve, Sue can give Candace a written reprimand. whenever Sue sees Candace being impatient with a staff member because she is busy and stressed out, Sue can sympathize with Candace to try to help her feel better. Sue can work with Candace to develop measures of how frequently she gives her employees feedback and the response to that feed back Sue can respectfully coach Candace on the impact her impatience has on employee morale and performance
In order for Sue to create a context in which Candace will support Bow Wow's strategic objectives, she can take several approaches.
One approach is to work with Candace to develop measures of how frequently she gives her employees feedback and the response to that feedback. This will help Candace to be more effective in her role as a leader and to understand the impact that her actions have on employee morale and performance.
Another approach is to respectfully coach Candace on the impact her impatience has on employee morale and performance. By doing so, Sue can help Candace to be more mindful of her behavior and to make positive changes that will benefit the organization.
Additionally, whenever Sue sees Candace being impatient with a staff member because she is busy and stressed out, Sue can sympathize with Candace to try to help her feel better. This will help Candace to feel supported and valued, which can increase her motivation to support Bow Wow's strategic objectives.
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1. Small enterprises that have a strictly cash-based operation sometimes just use the to record all transactions.
A. Reports B. Invoice form C. Purchase Order form D. check Register
2. One way to use QuickBooks Online to record money coming in to a company is
A. purchase order B. sales reciept C. Bank withdrawl D. none
3. Which transaction types should be recorded using the Bank Deposit form ? A. Cash received from loans. B. Other income . C. Interest earned . D. All of the choices are correct
1. Small enterprises that have a strictly cash-based operation sometimes just use the check Register to record all transactions. 2. One way to use QuickBooks Online to record money coming in to a company is sales receipt. 3. All of the choices are correct (Cash received from loans, Other income, and Interest earned) should be recorded using the Bank Deposit form
Small businesses that run entirely on cash may keep track of all transactions, including cash and check payments, in a check register. Businesses can monitor their cash inputs and outflows by using a check register, a document or ledger. Popular accounting program QuickBooks Online can be used to track and manage a business's financial activities. A sales receipt is one way to utilize QuickBooks Online to record money coming into a business. Regardless of the source of the cash, any deposit made to a company's bank account must be documented using the Bank Deposit form. This covers any other sort of deposit as well as funds received through loans (option A), other income (option B), and interest earned (option C). Businesses may precisely record and track their deposits using the bank deposit form, which is crucial for maintaining accurate financial records and controlling cash flow.
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true or false: technical, fundamental, and market-based forecasting typically yield similar exchange rate forecasts.
Technical, fundamental, and market-based forecasting typically yield similar exchange rate forecasts. This, statement is false. Thus, option (b) is correct.
The effectiveness of the forecast is influenced by a number of variables, including the time horizon, the currency pair, and the market conditions, and each technique has strengths and shortcomings of its own.
In order to calculate exchange rates, fundamental analysis concentrates on factors related to the economy, such as inflation, interest rates, and trade balances, whereas technical analysis makes use of historical price and volume data to spot trends and patterns.
Therefore, option (b) is correct.
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Dubon Consultants works with businesses to identify inefficiencies in their filing and computer system to enhance customer support. Dubon Consultants is an example of a ________ company.
A. marketing
B. manufacturing
C. merchandising
D. service
Dubon Consultants is an example of a service company. A service company provides services rather than physical goods.
In this case, Dubon Consultants provides consulting services to businesses to improve their filing and computer systems, with the goal of enhancing customer support. They do not manufacture or sell physical goods, but instead provide expertise and guidance to help their clients improve their operations. Dubon Consultants is an example of a D. service company. They work with businesses to identify inefficiencies in their filing and computer system to enhance customer support, which falls under the category of providing services to their clients.
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Identify the correct statement. Select one: a. Savings is not necessary for production because the opportunity cost of production is zero. b. Savings reduces the current production of only consumer goods. c. Savings reduces the current production of only capital goods. d. Savings is necessary for production because production takes time. e. Savings is necessary for production because production is expensive.
The correct statement is e. Savings are necessary for production because production is expensive
Savings is the amount of money left over after spending and other obligations are deducted from earnings. Savings represent money that is otherwise idle and not being put at risk with investments or spent on consumption.
There are different types of savings accounts to choose from, and they're not all alike. The options include traditional savings accounts, high-yield savings accounts, money market accounts, certificates of deposit, cash management accounts and speciality savings accounts.
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f it is critical that your staff buy into the strategy the team will use in selling the company’s services t
Yes, It is critical that your staff buy into the strategy the team will use in selling the company's services.
Is it critical that your staff buy into the strategy?Yes, It is critical that your staff buy into the strategy the team will use in selling the company's services because:
Alignment with goals: When staff understand and support the strategy, they are more likely to work towards achieving the company's objectives.
Increased motivation:
Staff will feel more motivated and engaged when they see the value in the company's services and the strategy being used to sell them.
Effective communication: Staff who are on board with the strategy can better communicate its benefits to potential clients, improving sales success.
Enhanced teamwork: When all team members are committed to the same strategy, collaboration and teamwork will be more effective.
Adaptability: Staff who are familiar with and support the strategy will be better equipped to adapt to any changes or challenges that may arise.
To achieve staff buy-in, it's essential to communicate the strategy clearly, provide training and support, and involve team members in the decision-making process where appropriate. This will help ensure your company's services are successfully marketed and sold.
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Edwards and Everett, Inc. had the following items in its capital structure at December 31, 2020:
Common stock options, issued in 2019, exercisable for 22,000 shares, beginning in 2022, at a "strike" price of $20 per share. The cash that would be received from the option-holders from a hypothetical exercise of the options at December 31, 2020 would be sufficient for Edwards & Everett to acquire 13,400 shares of its own common stock (as treasury stock).
Treasury stock, common, 20,000 shares, acquired on November 30, 2019 …...
$
280,000
Additional paid-in-capital ....................................................................................
760,000
Common stock, $10 stated value, issued January 2, 2019
(current market value, $17 per share) ..................................................................
1,200,000
Preferred stock, 10%, $8 par value, convertible into 146,000 common
shares no earlier than 2020, issued at par value on July 1, 2020
(current market value, $8 per share) ....................................................................
1,660,000
Stock warrants, issued in 2019 in exchange for legal services at the company’s formation, convertible into 1,300 shares of common stock at the
discretion of the warrant-holders, but not earlier than 2022. A
hypothetical conversion of the warrants at December 31, 2020 would
require a $14,000 cash payment from the warrant-holders, which would
be sufficient for Edwards & Everett to acquire 300 shares of its own
common stock (as treasury stock)........................................................................
20,000
Edwards & Everett’s net income for 2020 was $783,000; the company’s Board of Directors has not yet declared a dividend for 2020 for the preferred shareholders.
What earnings per share did Edwards and Everett, Inc. report for the year ended December 31, 2020? Prepare a schedule to support your answer.
For the year ending December 31, 2020, Edwards and Everett, Inc. reported earnings per share of $6.04.
To calculate the earnings per share (EPS) for Edwards and Everett, Inc. for the year ended December 31, 2020, we need to first determine the weighted average number of common shares outstanding.
Common stock outstanding on January 2, 2019 (issued) = $1,200,000 / $10 = 120,000 shares
Common stock options exercisable = 22,000 shares
Treasury stock acquired on November 30, 2019 = (20,000) shares (negative because it is a reduction in outstanding shares)
Weighted average number of common shares outstanding = (120,000 + 22,000 - 20,000) / 2 = 61,000 shares
Next, we need to calculate the net income available to common shareholders. Since there are no dividends declared for the preferred shareholders, we can assume that the entire net income is available to the common shareholders.
Net income available to common shareholders = $783,000
Finally, we can calculate the earnings per share:
EPS = Net income available to common shareholders / Weighted average number of common shares outstanding
EPS = $783,000 / 61,000 shares
EPS = $12.84 per share
Therefore, Edwards and Everett, Inc. reported earnings per share of $12.84 for the year ended December 31, 2020.
To calculate the earnings per share (EPS) for Edwards and Everett, Inc. for the year ended December 31, 2020, we need to calculate.
1. Calculate the weighted average number of common shares outstanding.
2. Calculate the diluted shares due to stock options and warrants.
3. Calculate the net income available for common stockholders.
4. Divide the net income by the weighted average number of shares outstanding (including diluted shares).
1: Calculate the weighted average number of common shares outstanding.
Common stock: $1,200,000 / $10 (stated value) = 120,000 shares
2: Calculate the diluted shares due to stock options and warrants.
Stock options: 22,000 shares (exercise) - 13,400 shares (buyback) = 8,600 shares
Stock warrants: 1,300 shares (conversion) - 300 shares (buyback) = 1,000 shares
Total diluted shares: 8,600 (options) + 1,000 (warrants) = 9,600 shares
3: Calculate the net income available for common stockholders.
Net income for 2020: $783,000
No preferred dividends declared, so no adjustment needed.
4: Divide the net income by the weighted average number of shares outstanding (including diluted shares).
Total shares outstanding: 120,000 (common stock) + 9,600 (diluted shares) = 129,600 shares
Earnings per share (EPS): $783,000 (net income) / 129,600 (total shares outstanding) = $6.04 per share
Answer: Edwards and Everett, Inc. reported earnings per share of $6.04 for the year ended December 31, 2020.
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Northern Telecom markets telephone equipment to businesses throughout North America. In contrast to consumer markets for telephones, one would expect Northern Telecom’s customers:
Question 1 options:
A) to be fewer in number, but make larger purchases.
B) to buy exclusively from a single vendor.
C) to be more widely scattered geographically.
D) to maintain impersonal relationships with suppliers.
E) to seek bundling options with other telecom service providers.
D) to maintain impersonal relationships with suppliers. This is because business-to-business transactions in the telecom industry tend to be more professional and focused on meeting specific needs rather than building personal relationships.
Northern Telecom is likely to have many customers across different regions, so their relationships with customers are likely to be impersonal rather than intimate.
A) to be fewer in number, but make larger purchases. This is because businesses require a higher volume of telephone equipment to accommodate their employees, departments, and different locations. Additionally, business customers often make larger purchases in order to take advantage of economies of scale and negotiate better prices.
B) It is less likely that businesses will buy exclusively from a single vendor since they have more complex needs that may require multiple vendors to fulfill.
C) Northern Telecom's business customers are likely to be more widely scattered geographically since businesses operate in different locations and regions.
D) Maintaining personal relationships with suppliers is important for businesses to ensure that they receive quality products and services, as well as good prices and delivery times.
E) Businesses may seek bundling options with other telecom service providers to reduce costs and simplify their procurement processes.
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27, Gwen is n unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Giwen as A unemployed and not in the labor force B. unemployed and in the labor force. C. employed and in the labor Sorce. D. employed and not in the labor force
Gwen would be classified as option D: employed and not in the labor force.
This is because she is working for her family's restaurant but is not receiving a wage or salary. Therefore, she is not considered to be actively seeking employment and is not part of the labor force.
The labor force, or currently active population, comprises all persons who fulfil the requirements for inclusion among the employed (civilian employment plus the armed forces) or the unemployed. The employed are defined as those who work for pay or profit for at least one hour a week, or who have a job but are temporarily not at work due to illness, leave or industrial action. The armed forces cover personnel from the metropolitan territory drawn from the total available labor force who served in the armed forces during the period under consideration, whether stationed in the metropolitan territory or elsewhere. The unemployed are defined as people without work but actively seeking employment and currently available to start work. This indicator is seasonally adjusted, and it is measured in persons.Therefore, the correct answer is option D. employed and not in the labor force.
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which individual is out of the labor force? ashley is working 2 hours per week. joshua is working 40 hours per week. william is without a job, is able to work, but is not actively looking for work. sandra is without a job, is able to work, and is actively looking for work.
William is out of the labor force because he is able to work but is not actively looking for work.
Out of the four individuals mentioned, William is the one who is out of the labor force. This is because he is without a job, able to work, but not actively looking for work. The other individuals (Ashley, Joshua, and Sandra) are considered part of the labor force as they are either working or actively seeking employment.
Labor force refers to the group of people who are either employed or not employed who are in search of work. They are important part of the country and play a major role in increasing the economic growth of the country.
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why was the civilian conservation corps established? * 1 point to aid farmers/agricultural workers to create employment opportunities to protect industrial workers to secure the safety of the banks
The Civilian Conservation Corps (CCC) was established to create employment opportunities. Although it did not directly focus on industrial workers, banks, or agriculture, its primary goal was to provide jobs and engage in environmental conservation projects during the Great Depression.
The civilian conservation corps was established to aid unemployed young men during the Great Depression. The program aimed to create employment opportunities by focusing on conservation and natural resource management projects. The primary goal was to protect and restore the nation's natural resources while simultaneously providing work for those who were struggling financially. The program did not directly target farmers or agricultural workers, but it did provide employment opportunities for them. The program's primary focus was on improving parks, forests, and other public lands. It did not directly aim to protect industrial workers or secure the safety of banks.
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Assume a $65,000 investment and the following cash flows for two alternatives.
Year Investment X Investment Y
1 $20,000 $25,000 2 10,000 20,000 3 15,000 25,000 4 40,000 — 5 25,000 — a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Investment X= __?__ years
Investment Y= __?__ years
The payback period for Investment X is 3 years and the payback period for Investment Y is 2 years.
What is payback period ?
Payback period is a financial metric used to measure the length of time it takes for an investment to generate enough cash flows to recover its initial cost. It is calculated by dividing the initial investment by the expected annual cash inflows.
To calculate the payback period for each investment, we need to determine how long it will take for the initial investment to be recovered by the cash inflows.
For Investment X:
Year 1 cash flow = $20,000
Year 2 cash flow = $10,000
Year 3 cash flow = $15,000
Year 4 cash flow = $40,000
Year 5 cash flow = $25,000
Cumulative cash flow after Year 1 = $20,000
Cumulative cash flow after Year 2 = $30,000
Cumulative cash flow after Year 3 = $45,000
Cumulative cash flow after Year 4 = $85,000
Cumulative cash flow after Year 5 = $110,000
Since the initial investment of $65,000 is recovered in Year 3, the payback period for Investment X is 3 years.
For Investment Y:
Year 1 cash flow = $25,000
Year 2 cash flow = $20,000
Year 3 cash flow = $25,000
Cumulative cash flow after Year 1 = $25,000
Cumulative cash flow after Year 2 = $45,000
Cumulative cash flow after Year 3 = $70,000
Since the initial investment of $65,000 is recovered in Year 2, the payback period for Investment Y is 2 years.
Therefore, the payback period for Investment X is 3 years and the payback period for Investment Y is 2 years.
The payback period indicates how long it will take for the investment to pay for itself and become profitable. A shorter payback period is generally preferred, as it means the investment is generating positive cash flows sooner and is less risky. However, payback period does not take into account the time value of money or the cash flows that occur after the payback period, which may result in a less accurate assessment of the investment's profitability.
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The following table displays uncertainties in John's monthly income:State Probability(θ) Income (Y) Utility(U)Sick 0.4 2,500 U(2,500)Healthy 0.6 4,900 U(4,900) a. What is John's expected income (expected value of income)?b. Let John's utility function be U-Yas, where Y is John's monthly income. Cal- culate John's expected utility of income (expected value of utility of income). c. Compare the utility of John's expected income and the expected utility of his income. Is John risk averse or not (refer to John's utility function given above)? Explain your answer using a graph, with income on the horizontal axis and utility on the vertical axis. d. Calculate the maximum amount that John is willing to pay to avoid the risk of income loss resulting from becoming sick.
,John would be willing to pay up to $160 to avoid the risk of income loss resulting from becoming sick.
John's expected income is the weighted average of his income in each state:
(0.4 x 2,500) + (0.6 x 4,900) = 3,540
Therefore, John's expected income is $3,540 per month.
b. To calculate John's expected utility of income, we first need to calculate the utility of income in each state using his utility function:
U(2,500) = 2,500
U(4,900) = 1,900
Next, we can calculate the expected utility of income by taking the weighted average of the utility in each state:
(0.4 x 2,500) + (0.6 x 1,900) = 2,260
Therefroe, John's expected utility of income is 2,260.
c. To compare the utility of John's expected income and the expected utility of his income, we can calculate the utility of his expected income:
U(3,540) = 1,040
Comparing this to his expected utility of income (2,260), we can see that John is risk averse. This is because his utility function is concave, meaning that he values additional income less and less as his income increases. A graph of his utility function would show a curve that starts out steep and then flattens out as income increases.
d. The aximum amount that John is willing to pay to avoid the risk of income loss resulting from becoming sick is equal to the difference between the expected utility of income in the healthy state and the expected utility of income in the sick state:
(0.6 x 1900) - (0.4 x 2,500) = -160
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You just purchased a home and agreed to a mortgage payment of $1,264 a month for 30 years at 7.5 percent interest, compounded monthly. how much was the mortgage?
The original mortgage amount was approximately $175,409.49.
To determine the original mortgage amount, we will use the mortgage payment formula:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where M is the monthly mortgage payment, P is the original mortgage amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (loan term in years multiplied by 12).
You provided the following information:
- Monthly mortgage payment (M) = $1,264
- Loan term = 30 years
- Annual interest rate = 7.5%
Let's break down the steps to find the original mortgage amount (P).
Step 1: Convert the annual interest rate to a monthly interest rate.
r = (7.5% / 100) / 12 = 0.075 / 12 = 0.00625
Step 2: Calculate the total number of payments.
n = 30 years * 12 payments/year = 360 payments
Step 3: Calculate (1 + r)^n.
(1 + 0.00625)^360 ≈ 7.7449
Step 4: Plug the values into the mortgage payment formula and solve for P.
$1,264 = P * (0.00625 * 7.7449) / (7.7449 - 1)
$1,264 = P * (0.048392) / (6.7449)
Now, we solve for P:
P ≈ $1,264 * (6.7449) / 0.048392 ≈ $175,409.49
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scott and eric each have a good credit history. they work at the same company and make approximately the same salary. scott has borrowed $6000 to take a foreign vacation. eric has borrowed $6000 to buy a car. who is likely to pay the lowest finance charge?
It is impossible to determine who is likely to pay the lowest finance charge based solely on the information provided. The finance charge will depend on various factors, such as the interest rate, the loan terms, and the borrower's credit score.
Additionally, the finance charge for a car loan may be different from a personal loan for a vacation. Therefore, more information is needed to provide a definitive answer. Who is likely to pay the lowest finance charge between Scott and Eric, given that both have a good credit history, work at the same company, make approximately the same salary, and have borrowed $6000. Scott borrowed the money for a foreign vacation, while Eric borrowed it to buy a car.
In general, auto loans tend to have lower interest rates compared to personal loans, which are typically used for vacations. This is because auto loans are secured loans, meaning the car serves as collateral, whereas personal loans are unsecured and pose a higher risk to lenders. Based on this information, it is likely that Eric, who borrowed $6000 to buy a car, will pay the lowest finance charge compared to Scott, who borrowed the same amount for a foreign vacation.
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Which of the following is not an assumption of perfect competition?
A. many firms
B. many buyers
C. restrictions on entry into the market
D. each firm sells an identical product
The right response is C. barriers to entry into the market. Businesses operating in monopolistic markets or monopolies must contend with a downward-sloping demand curve.
Are there numerous enterprises in ideal competition?A market with perfect competition is one with many enterprises and no dominant player. No market is entirely monopolistic or completely competitive in the actual world.
What qualities define the ideal competition firm?Perfect competition is characterised by three key factors: (1) the absence of any significant market dominance; (2) standardisation of industry output; and (3) freedom of entry and exit. If there is perfect competition, the efficient market equilibrium occurs when marginal revenue and marginal cost are equal.
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You can change your PivotTable's configuration so that subtotals Select an answer: appear below each subgroup all of these answers are not displayed at all appear above each subgroup
I understand that you need help with configuring subtotals in a PivotTable. You can change your PivotTable's configuration so that subtotals:
1. Appear above each subgroup
2. Appear below each subgroup
3. Are not displayed at all
To do this, follow these steps:
1. Click on your PivotTable to activate the PivotTable tools.
2. Go to the "Design" tab under "PivotTable Tools" in the Excel toolbar.
3. Click the "Subtotals" button in the "Layout" group.
4. Choose one of the following options:
a. "Show all Subtotals at Top of Group" to have subtotals appear above each subgroup.
b. "Show all Subtotals at Bottom of Group" to have subtotals appear below each subgroup.
c. "Do Not Show Subtotals" to remove subtotals entirely from the PivotTable.
I hope this helps you with configuring your PivotTable subtotals!
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When there is more than one sign change in the net cash flow, there may be more than one real-number root to the ROR equation, resulting in multiple i* values. (True or False)
When there is more than one sign change in the net cash flow, there may be more than one real-number investment root to the ROR equation, resulting in multiple. This statement is False.
A different name for it is the internal rate of return.The internal rate of return, i, is calculated using the real-number root that is obtained by solving the ROR equation using the net cash flow from the investment.The IRR is the interest rate at which all cash flows (inflows and outflows) have a present worth (PW) of zero. Simple cash flows, sometimes referred to as conventional cash flows, are cash flows where the algebraic signs do not change more than once. Cash flows that have multiple algebraic sign changes are considered non-conventional cash flows. When the net cash flow exhibits several sign changes.
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If a company has plenty of capacity, it should accept a special order at a discounted sales price if the sales price exceeds the ____A. variable costs B. gross profit C. fixed costs D. contribution margin
If a company has plenty of capacity, it should accept a special order at a discounted sales price if the sales price exceeds the variable costs.
What is variable cost?
Variable costs are expenses that change in proportion to the level of activity or output of a business. In other words, as the volume of production or sales increases, variable costs also increase, and as the volume decreases, variable costs decrease as well. Examples of variable costs include direct materials, direct labor, and sales commissions.
If a company has plenty of capacity, accepting a special order can be a good decision as long as the incremental revenue from the order exceeds the incremental cost of producing and delivering the order. Therefore, the company should accept the special order if the sales price exceeds the variable costs, as this is the minimum incremental cost that the company would incur to produce and deliver the additional units.
Gross profit and fixed costs are not relevant for this decision since they do not consider the incremental costs of the special order. Contribution margin, on the other hand, is relevant but only if it exceeds the variable costs. Therefore, the correct answer is A. variable costs.
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Complete question is: If a company has plenty of capacity, it should accept a special order at a discounted sales price if the sales price exceeds the variable costs.
a project that provides annual cash flows of $2,620 for eight years costs $9,430 today.
a. At a required return of 8 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. At a required return of 24 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. At what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The question is related to the concept of net present value (NPV) in finance, which is the difference between the present value of cash inflows and the present value of cash outflows over a specified period of time. NPV will be $539.72 in option (a).
a. To calculate the NPV of the project at a required return of 8 percent, we need to discount each of the annual cash flows and subtract the initial cost of the project:
NPV = -9,430 + (2,620/1.08) + (2,620/1.08²) + ... + (2,620/1.08⁸)
NPV = -9,430 + 2,418.52 + 2,236.56 + ... + 837.52
NPV = $539.71
Therefore, the NPV of the project at a required return of 8 percent is $539.71.
b. To calculate the NPV of the project at a required return of 24 percent, we use the same formula:
NPV = -9,430 + (2,620/1.24) + (2,620/1.24²) + ... + (2,620/1.24⁸)
NPV = -9,430 + 1,466.94 + 1,077.98 + ... - 2,000.61
NPV = -$1,610.53
Therefore, the NPV of the project at a required return of 24 percent is -$1,610.53.
c. To find the discount rate at which we would be indifferent between accepting and rejecting the project, we need to solve for the discount rate that makes the NPV equal to zero:
0 = -9,430 + (2,620/1+r) + (2,620/1+r²) + ... + (2,620/1+r⁸)
Using a financial calculator or spreadsheet, we can find that the discount rate that satisfies this equation is approximately 16.04 percent.
Therefore, we would be indifferent between accepting and rejecting the project at a discount rate of 16.04 percent.
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There is a choice to buy a car worth $28,000 with 100% financing at 4.99% APR for 60 month or lease at $450 per month. The car will need maintenance in the 3rd year worth $525 and $825 in the 4th year. The car will have 35% residual value in the 5th year. Sales tax on new car is 6% and required rate of return is 5%.
a) Calculate the Ownership Operating Advantage in year 5.
b) Calculate the Ownership Operating Advantage in year 4.
c) Which option is better?
There is a choice to buy a car worth $28,000 with depreciation 100% financing at 4.99% APR for 60 month or lease at $450 per month. The correct answer is b) Calculate the Ownership Operating Advantage in year 4.
The car will be worth $7340 after six years.
The formula A = P(1- r/100)n can be used to compute the depreciation, where A is the amount, P is the principal, r is the rate of depreciation, and n is the duration.
The answer to the question states that the car's worth (P) is $28,000.
Depreciation rate (r) is 20% per year for a duration (t) of six years.
the values in the depreciation formula are substituted, and we obtain,
Amount is equal to 28000*
(1 - 20/100)°,
28000*(80/100)°,
28000*(0.80)°,
28000*0.26214,
which equals 7339.92 7340.
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which approach to motivation is based on the premise that managers know more about the job than workers and therefore should be paid more?
a. Traditional approach b. Content perspective c. Human relations approach d. Human resources approach e. Scientific management
The approach to motivation that is based on the premise that managers know more about the job than workers and therefore should be paid more is the traditional approach. Option (A) is correct answer.
The traditional approach to motivation is a perspective that has been widely used in the field of management and psychology to understand how people are motivated to behave in certain ways. This approach emphasizes the role of external rewards and punishments in shaping behavior and assumes that individuals are primarily motivated by economic and social incentives.
According to this approach, people are motivated by a desire to maximize their rewards and minimize their costs. This can be achieved through various strategies, such as seeking high-paying jobs, achieving status and recognition, or avoiding unpleasant tasks and punishments. Therefore option (A) is correct.
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