Emily Lim owns and runs an ice cream parlor in San Diego. Last year, she had sales of S460 ,000 and an average tax rate of 27%. She spent S46.000 on ingredients, $23,000 on utilities, and $82,800 to rent the premises. Emily has a few employees and paid them $92,000 in wages in total. She also paid herself a salary of $69,000 and spent $46,000 to pay for employee benefits. A few years ago, Emily borrowed money to buy the ice making equipment. Last year, she paid $23,000 in interest on that loan. Depreciation for the equipment was $13,800 . What was operating income (EBIT) for the year? What was net income for the year?

Answers

Answer 1

The net income for the year is $101,246.

To calculate the operating income (EBIT) for the year, we need to subtract all the operating expenses from the sales revenue.

Operating Income (EBIT) = Sales Revenue - Operating Expenses

Given:

Sales Revenue = $460,000

Operating Expenses = Ingredients + Utilities + Rent + Wages + Employee Benefits

Ingredients = $46,000

Utilities = $23,000

Rent = $82,800

Wages = $92,000

Employee Benefits = $46,000

Operating Expenses = $46,000 + $23,000 + $82,800 + $92,000 + $46,000 = $289,800

Operating Income (EBIT) = $460,000 - $289,800 = $170,200

Therefore, the operating income (EBIT) for the year is $170,200.

To calculate the net income for the year, we need to deduct the interest expense and taxes from the operating income.

Net Income = EBIT - Interest Expense - Taxes

Given:

Interest Expense = $23,000

Average Tax Rate = 27%

Taxes = Average Tax Rate * EBIT

Taxes = 27% * $170,200 = $45,954

Net Income = $170,200 - $23,000 - $45,954 = $101,246

Therefore, the net income for the year is $101,246.

learn more about "income ":- https://brainly.com/question/30157678

#SPJ11


Related Questions

a 6.4 percent corporate coupon bond is callable in five years for a call premium of one year of coupon payments. assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?

Answers

Amount paid to a bondholder in the event that the issuer calls the bond is $1060.

Call Premium:

Call premium is the amount paid in excess of the par value when the bond is recalled by the company. This premium is usually expressed in percent of the par value. For example, a call premium of 10% results in a call price that is 110% of the par.

We have the information from the question is:

Principal value = $1000

call premium = 6 years

We have to find the price paid to the bondholder if the issuer calls the bond.

Now, According to the question is:

The price paid to the bondholder = Principal Value + call premium

Price paid to bondholder = $1000+ 6%

                                          = $1060

Learn more about Call premium at:

https://brainly.com/question/30038914

#SPJ4

                                       

Sandy's uncompensated demand for candy is given by the equation Q = 15/p, where Q is the quantity of candy and p is the price. When the price of candy rises from $1 to $4, the change in consumer surplus is (in absolute value)

Answers

The change in consumer surplus (in absolute value) is $22.50 is the answer.

Consumer Surplus is the difference between what a customer is willing to pay and what they actually pay for a good. It is the benefit that consumers receive when they purchase goods at a price lower than what they were willing to pay. In this case, we will calculate the change in consumer surplus when the price of candy rises from $1 to $4. We will use the given demand equation Q = 15/p, where Q is the quantity of candy and p is the price.

At a price of $1, Sandy's demand for candy is Q = 15/1 = 15.

Consumer Surplus = (1/2) x (Price difference) x (Quantity)

Consumer Surplus at $1 = (1/2) x (4-1) x (15) = $22.50

At a price of $4, Sandy's demand for candy is Q = 15/4 = 3.75.

Consumer Surplus = (1/2) x (Price difference) x (Quantity)

Consumer Surplus at $4 = (1/2) x (4-4) x (3.75) = $0

Thus, the absolute change in Consumer Surplus = |$22.50 - $0| = $22.50.

Therefore, the change in consumer surplus (in absolute value) is $22.50.

know more about consumer surplus

https://brainly.com/question/15415230

#SPJ11

Personal accounting is a system to identify, measure and communicate all the financial activities of an individual. Select one: O True O False Example of expenses in your personal life include: Select one: a. Rent, Food, and Insurance expense b. Rent, House, and Food c. Rent, Food, and Automobile d. Automobile, House, and Insurance expense

Answers

True. Personal accounting is indeed a system that helps individuals identify, measure, and communicate their financial activities. It involves managing personal income, expenses, assets, and liabilities to achieve financial goals and maintain financial well-being.

Expenses in personal life can vary depending on individual circumstances, but an example of common expenses typically includes rent, food, and insurance expense. Rent refers to the cost of housing, whether it's an apartment, house, or other living arrangement. Food expenses encompass groceries and dining out. Insurance expense covers the cost of various types of insurance, such as health insurance, auto insurance, or homeowner's insurance. These expenses are essential for maintaining a comfortable and secure lifestyle.

While other options like a, b, and d may include some valid expenses, option a (Rent, Food, and Insurance expense) is the most comprehensive and accurate representation of typical expenses in personal life. It covers the basic necessities of shelter and sustenance, along with the important aspect of protecting oneself through insurance coverage.

Learn more about insurance

https://brainly.com/question/32233665

#SPJ11

Louis Florence is the sole owner of Vision Management. He can sell or transfer his ownership to another person without affecting the operations of the business. What is the type of business organization of Vision Management?

Answers

Vision Management is an example of a Sole Proprietorship. If the owner dies or is incapacitated, the business will come to an end unless there is a plan in place to transfer the business ownership to someone else.

Louis Florence, the sole proprietor, is the sole owner of Vision Management. A sole proprietorship is a type of business entity that is owned and operated by a single person who has complete control over the company's activities. It is the most straightforward business organization in which the owner is in complete charge of the company's operations.Sole proprietorships are the simplest and most common type of business organization.

Louis Florence is the sole owner of Vision Management. Since Louis Florence is the sole owner of Vision Management and has complete control over the company's activities, it is classified as a sole proprietorship. A sole proprietorship is the simplest and most common form of business organization in which a single individual owns and operates the company. This type of business entity does not have a separate legal personality, which means that the owner is responsible for all aspects of the company.A sole proprietorship's owner is solely responsible for the business's financial and legal obligations. The primary benefit of a sole proprietorship is that the owner has complete control over the company's operations. The primary drawback of a sole proprietorship is that the owner is personally liable for the company's debts and obligations.

To know more about Vision Management visit :-

https://brainly.com/question/17063668

#SPJ11

Imagine that you are proposed to conduct a focus group about the ""consumer evaluation of automobile industry in Azerbaijan"". Please explain how you will do it. Use focus group process to answer the question

Answers

As a researcher, conducting a focus group is essential to understand the consumer evaluation of the automobile industry in Azerbaijan. The focus group process has several stages.

They are explained below:

1. Planning and Preparation: At this stage, the researcher should develop a plan of action and prepare for the focus group. The plan should include research questions, an outline of the discussion topics, the selection criteria of participants, the number of participants, and the timing and location of the focus group.

2. Recruiting Participants: After planning, the researcher should select and recruit participants that fit the selection criteria. Participants should be representatives of the target audience. They should have an interest and knowledge of the topic to have a productive discussion.

3. Conducting the Focus Group: At this stage, the researcher will conduct the focus group discussion, usually in a comfortable and neutral location. During the discussion, the researcher should facilitate the discussion, ensuring that the group stays on the topic. The researcher should also ask open-ended questions and encourage participants to share their opinions and experiences.

4. Analysis of Data: After completing the focus group discussion, the researcher should analyze the data collected. The data is usually recorded, transcribed, and analyzed. The researcher should use the results to identify the patterns, themes, and opinions that emerged from the discussion.

5. Reporting Results: The researcher should report the findings of the focus group research. The report should include the study's objectives, the methods used, the data collected, and the results of the analysis.

In conclusion, conducting a focus group is an effective way to understand the consumer evaluation of the automobile industry in Azerbaijan. Researchers should follow the focus group process to ensure a successful discussion and analysis of data.

To know more about consumer visit:

https://brainly.com/question/27773546

#SPJ11

Swanson, Inc. bonds have a 12% coupon rate with semi-annual coupon payments. They have 15 years to maturity and a par value of $1,000. Your required rate of return is 14%. Suppose you decide to buy the bond, and immediately afterwards interest rates increase by 1.0%. How much value has the bond gained or lost? (Hint: find the price of the bond before and after the change in interest rates.)
a. Loss of $42.36
b. Gain of $42.36
c. Loss of $53.07
d. Gain of $53.07

Answers

The bond has gained $42.36 in value after the interest rates increased by 1.0%. Therefore, the correct option is B.

The price of a bond is calculated using the formula:

PV = C[1/r − 1/r(1 + r)^t] + FV/(1 + r)^t

PV = Present Value, C = Coupon payment, r = Required rate of return, FV = Face Value or par value, T = Time or maturity period of the bond.

Given that the bond has a coupon rate of 12%, semi-annual coupon payments, 15 years to maturity, and a par value of $1,000. The required rate of return is 14%.

To calculate the bond price before the change in interest rates, we use the above formula.

PV = 60[1/0.07 − 1/0.07(1 + 0.07)^30] + 1000/(1 + 0.07)^30= $911.92

Now, to calculate the bond price after the change in interest rates, we will increase the required rate of return by 1.0% to 15%.

PV = 60[1/0.075 − 1/0.075(1 + 0.075)^30] + 1000/(1 + 0.075)^30= $869.56

Change in Bond Value = Price Before - Price After= $911.92 - $869.56= $42.36

Therefore, the bond has gained $42.36 in value. The correct answer is B: Gain of $42.36.

Learn more about Bond:

https://brainly.com/question/25596583

#SPJ11

Question 17:) The dean of the University of Scranton, PA of Business must plan the school's course offerings for the fall semester. Student demands make it necessary to offer at least 30 undergraduate and 25 graduate courses in the term. Faculty contracts also dictate that at least 60 courses be offered in total. Each undergraduate course taught costs the college an average of $2,500 in faculty wages, and each graduate course costs $3,000. (Hint: 3 constraints) a) State problem mathematically (Formulate) and identify constraints. b) How many undergraduate and graduate courses should be taught in the fall so that total faculty salaries are kept to a minimum? c) Explain dual meaning for undergraduate, Graduate students and total

Answers

a. The problem can be formulated with mathematical expression as Minimize:2500x+3000y.

Subject to:

x + y ≥ 60 (total number of courses)

x ≥ 30 (minimum number of undergraduate courses)

y ≥ 25 (minimum number of graduate courses)

b.30 undergraduate courses and 30 graduate courses to keep total faculty salaries to a minimum.

c. The terms "undergraduate" and "graduate" refer to the levels of education that students have attained. Undergraduate students are those who are pursuing their first degree,  graduate students are those who pursuing a higher degree (e.g., a master's or doctoral degree).The term "total" refers to the combined number of undergraduate and graduate courses offered.

b) To find the minimum total faculty salaries, we need to solve the above optimization problem. Using the constraints, we can rewrite the problem as:

Minimize: 2500x + 3000y

Subject to:

y ≥ 60 - x

x ≥ 30

Graphing the feasible region, we find that the minimum occurs at the intersection of the two lines x = 30 and y = 30, where x = 30 and y = 30. Therefore, the dean should offer 30 undergraduate courses and 30 graduate courses to keep total faculty salaries to a minimum.

To know more about mathematical expression here

https://brainly.com/question/30350742

#SPJ4

We have formulated the problem mathematically with the objective and constraints stated. The objective is to minimize the cost of faculty wages while satisfying the constraints of student demand, faculty contracts, and the total course requirement.

To formulate the problem mathematically, let's define the variables:

U = Number of undergraduate courses offered in the fall semester.

G = Number of graduate courses offered in the fall semester.

Now, let's state the objective and constraints:

Objective: The objective is to minimize the cost of faculty wages for the courses offered in the fall semester.

Constraints:

Student Demand Constraint: At least 30 undergraduate courses and 25 graduate courses must be offered.

U ≥ 30 (Minimum undergraduate course requirement)

G ≥ 25 (Minimum graduate course requirement)

Faculty Contract Constraint: At least 60 courses in total must be offered.

U + G ≥ 60 (Total course requirement)

Cost Constraint: The total cost of faculty wages should be minimized.

Cost = (Number of undergraduate courses * Cost per undergraduate course) + (Number of graduate courses * Cost per graduate course)

Cost = (U * $2,500) + (G * $3,000)

To know more about constraints stated please refer:

https://brainly.com/question/30591474

#SPJ11

Perpetuity. Monsters University is considering starting an endowment that would help fund one of its colleges. If it can earn a 10% return on its investments and wants to withdraw $10,000 a year, how large does the endowment need to be?

Answers

If it can earn a 10% return on its investments and wants to withdraw $10,000 a year, the large the endowment need to be would be $100,000.

Explanation: A perpetuity is a type of financial instrument in which a fixed payment is made at regular intervals, with no predetermined end date. It is also known as a perpetuity bond or an annuity. For example, if you invest $100,000 in a perpetuity that pays 5% per year, you would receive $5,000 per year for as long as the perpetuity exists. Perpetuities are commonly used in finance to value stocks, bonds, and other financial instruments. Monsters University is considering starting an endowment that would help fund one of its colleges.

If it can earn a 10% return on its investments and wants to withdraw $10,000 a year, how large does the endowment need to be?The formula for calculating the value of a perpetuity is:PV = PMT / rWhere,PV is the present value of the perpetuityPMT is the payment made at regular intervalsr is the interest rateGiven,Payment made at regular intervals = $10,000Interest rate = 10%The present value of a perpetuity with a payment of $10,000 per year and an interest rate of 10% is:PV = PMT / r= $10,000 / 10%= $100,000Therefore, the Monsters University would need an endowment of $100,000 to withdraw $10,000 per year indefinitely.

Read more about investments here;https://brainly.com/question/29547577

#SPJ11

Imagine we can only form the portfolios of risky stocks (correlation of one stock to any other stock is less than 1) and cannot include risk-free assets. Which of the following will be true?
a. Number of available efficient portfolios will depend on the covariance among the risky stocks.
b. There will be infinite efficient portfolios.
c. Number of available efficient portfolios will depend on the correlations among the risky stocks.
d. There will be no efficient portfolio.
e. There will be only one efficient portfolio

Answers

The true statement is: There will be no efficient portfolio. An efficient portfolio is a portfolio that provides the highest possible expected return with the lowest possible risk. Efficient portfolios have the highest returns for their level of risk or the lowest possible risk for their level of returns. The correct option is d.

Correlation refers to the relationship between two or more variables and how they move in relation to each other. The correlation between the two variables can range from -1 to 1. If the correlation between two variables is 1, then they move perfectly in sync with each other. If the correlation is -1, then they move perfectly opposite to each other and if the correlation is 0, then they do not move in relation to each other. It is a statistical measure that is used to measure the degree of association between two variables.

Covariance is a measure of the degree to which two variables vary together. Covariance is a statistical measure that is used to measure the degree of association between two variables. In this case, since the correlation of one stock to any other stock is less than 1, there will be no efficient portfolio available. This is because efficient portfolios are formed by combining risk-free assets and risky assets that have a positive correlation.

Therefore, in the absence of a risk-free asset and the presence of a correlation of less than 1, an efficient portfolio cannot be formed. The correct answer is d. There will be no efficient portfolio.

The correct option is d.

Learn more about Portfolio: https://brainly.com/question/25929259

#SPJ11

Problem 5.07 (Present and Future Values of a Cash Flow Stream) eBook Problem Walk-Through An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $550 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $ Future value: $

Answers

Present value: $816.13we need to discount each cash flow back to its present value using the 8% annual interest rate.

Future value: $1,335.87

To calculate the present value of the cash flow stream, we need to discount each cash flow back to its present value using the 8% annual interest rate. Then we sum up all the present values of the cash flows.
To calculate the future value of the cash flow stream, we need to compound each cash flow forward to the end of Year 6 using the 8% annual interest rate. Then we sum up all the future values of the cash flows.
- Present value: The present value is the current worth of a future cash flow stream, determined by discounting future cash flows to their equivalent value in today's dollars.
- Future value: The future value is the value that a cash flow stream will grow to at a future point in time, considering the effect of compounding or earning interest over time.

Learn more about present value and future value here:

https://brainly.com/question/30193964

#SPJ11

Munson? Manufacturing, in? Gainesville, Florida, wants to arrange its four work centers so as to minimize interdepartmental parts handling costs. The flows and existing facility layout are shown in the figures below.

Answers

The current layout has a movement cost of 2,935 feet. To improve it, Upper C should be placed between A and D, forming the configuration A - C - D. The distance for this improved layout can be calculated based on the distances between A and C, and C and D.

a) For the existing layout, the cumulative "load times x distance" or "movement cost" equals 2,935 feet. This is calculated by summing up the product of the flow values and the respective distances between the work centers, as shown in Figure 1.

b) Based on the flows shown in the matrix, one should expect that the centers A and Upper C will be next to each other as they have the highest number of moves between each other (600 moves).

c) Based on the flows shown in the matrix, one should expect that the centers C and Upper A will be next to each other as they have the second highest number of moves between each other (450 moves).

d) To improve the layout and reduce the total movement cost, the work center that should be located between A and D is Upper C. This configuration would result in the following layout: A - C - D.

The cumulative distance based on the overall movement of parts between work centers for this layout would need to be calculated based on the distances between A and C, and C and D.

To know more about layout refer here:

https://brainly.com/question/29742034#

#SPJ11

Complete Question:

Munson Manufacturing, in Gainesville, Florida, wants to arrange its four work centers so as to minimize interdepartmental parts handling costs.

The flows and existing facility layout are shown in the table below.

Figure 1: Parts moved between work centers

Upper A Upper B Upper C Upper D

Upper A        -           450             600           60    

Upper B    325          -          200         0

Upper C     0        0          750

Upper D      0        0          0         -

Figure 2: Existing layout.

A              B               C                D                  

    30'               30'                  30'

a) For the existing? layout, the cumulative "load times x distance" or "movement cost" equals _____ feet.

b) Based on the flows showns in the matrix, one should expect that the centers A and _____ will be next to each other as they have the highest number of moves between each other.

c) Based on the flows shown in the matrix, one should expect that the centers C and _____ will be next to each other as they have the second highest number of moves between each other.

d)The aim is to improve the layout so that the total "movement cost" can be reduced. Functional locations from A and D have been fixed. In the improved layout work center should be located between them is:

__ A __ D

  30' 30' 30'

The cumulative distance based on the overall movement of parts on the overall movement of parts between work centers for this layout = _____ feet.

The sooner the better, please help
Contract liability, deferred revenue and unearned revenue are all ways to describe a liability that the seller recognizes for unsatisfied performance obligations for which the seller has already been

Answers

Contract liability, deferred revenue, and unearned revenue are all ways to describe a liability that the seller recognizes for unsatisfied performance obligations for which the seller has already been paid.

The terms Contract liability, deferred revenue, and unearned revenue all describe a liability that the seller recognizes for unsatisfied performance obligations for which the seller has already been paid. These three terms refer to the same concept in accounting: the liability that arises from an obligation to provide goods or services that have been paid for in advance but haven't yet been delivered or performed.

The amount received is recorded as a liability and is reduced only when the performance obligation is met. So, all these terms are interrelated with each other to describe a liability that the seller recognizes for unsatisfied performance obligations.

You can learn more about revenue at: brainly.com/question/14952769

#SPJ11

A balance sheet represents the assets, liabilities, and owner's equity of a company at a given point in time. True/False

Answers

True. A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, typically at the end of an accounting period.

It presents the company's assets, liabilities, and owner's equity. Assets represent the resources owned by the company, such as cash, inventory, property, and equipment. Liabilities are the company's obligations or debts, including loans, accounts payable, and accrued expenses.

Owner's equity, also known as shareholders' equity or net worth, represents the residual interest in the company's assets after deducting liabilities. It reflects the owner's investment and retained earnings. By presenting the assets, liabilities, and owner's equity, the balance sheet provides a snapshot of the company's financial health and the relationship between its resources and obligations.

Learn more about balance sheet here:

https://brainly.com/question/28446946

#SPJ11

last year, big w company reported earnings per share of $3.10 when its stock was selling for $62.00. if its earnings this year increase by 10 percent and the p/e ratio remains constant, what will be the price of its stock? (do not round intermediate calculations. round your final answer to 2 decimal places.)

Answers

The price of the stock will be $68.20.

To find the price of the stock this year, we can use the P/E ratio formula:

P/E ratio = Stock price / Earnings per share

Earnings per share last year = $3.10

Stock price last year = $62.00

Earnings growth rate = 10%

First, we calculate the earnings per share for this year:

Earnings per share this year = Earnings per share last year * (1 + Earnings growth rate)

Earnings per share this year = $3.10 * (1 + 0.10)

Earnings per share this year = $3.41

Next, we can use the P/E ratio formula to find the stock price this year:

P/E ratio = Stock price this year / Earnings per share this year

Since the problem states that the P/E ratio remains constant, we can rearrange the formula to solve for the stock price this year:

Stock price this year = P/E ratio * Earnings per share this year

Given that the P/E ratio remains constant, we can use the P/E ratio from last year:

P/E ratio = Stock price last year / Earnings per share last year

Substituting the values:

P/E ratio = $62.00 / $3.10

P/E ratio = 20.00

Now we can calculate the stock price this year:

Stock price this year = P/E ratio * Earnings per share this year

Stock price this year = 20.00 * $3.41

Stock price this year = $68.20

If the earnings of Big W Company increase by 10% and the P/E ratio remains constant, the price of its stock will be $68.20.

To learn more about price of the stock visit;

https://brainly.com/app/ask?q=PRICE+OF+THE+STOCK

#SPJ11

This is an Assignment it has to be very long and detailed !
Define the five Process groups and explain what Knowledge areas apply to each process group. Discuss a typical project and apply the five process areas to a project. The project can be a past or current work project or a project that you discovered from your research. Be specific and include our text and additional references other than the text to support your views.

Answers

The five process groups in project management are Initiating, Planning, Executing, Monitoring and Controlling, and Closing. Each process group involves specific activities and knowledge areas.

It includes activities such as project charter development, stakeholder identification, and initial scope definition. The knowledge areas that apply to the initiating process group are Integration Management, Stakeholder Management, and Scope Management.

2. Planning Process Group: This group involves the processes required to establish the scope, define the objectives, and develop the course of action to achieve the project goals. It includes activities such as developing the project management plan, defining project activities, estimating resources, and creating a schedule. The knowledge areas that apply to the planning process group are Integration Management, Scope Management, Time Management, Cost Management, Quality Management, Human Resource Management, Communications Management, Risk Management, and Procurement Management.

3. Executing Process Group: This group involves the processes required to complete the work defined in the project management plan and effectively manage project resources. It includes activities such as performing project activities, managing stakeholders, and ensuring project quality. The knowledge areas that apply to the executing process group are Integration Management, Scope Management, Time Management, Cost Management, Quality Management, Human Resource Management, Communications Management, Risk Management, and Procurement Management.

4. Monitoring and Controlling Process Group: This group involves the processes required to track, review, and regulate the progress and performance of the project. It includes activities such as monitoring project activities, managing changes, and controlling project risks. The knowledge areas that apply to the monitoring and controlling process group are Integration Management, Scope Management, Time Management, Cost Management, Quality Management, Human Resource Management, Communications Management, Risk Management, and Procurement Management.

5. Closing Process Group: This group involves the processes required to finalize all activities across all process groups to formally close the project or phase. It includes activities such as obtaining final acceptance, archiving project records, and documenting lessons learned. The knowledge areas that apply to the closing process group are Integration Management, Scope Management, and Procurement Management.

Applying these process groups to a typical project, let's consider the construction of a new office building. In the initiating process group, the project charter would be developed, stakeholders would be identified, and the initial scope of the project would be defined. During the planning process group, the project management plan would be created, project activities would be defined, and resources would be estimated. The executing process group would involve the actual construction work, managing the project team, and ensuring quality control. The monitoring and controlling process group would involve tracking the progress of construction, managing any changes or risks, and ensuring that the project stays on schedule and within budget. Finally, in the closing process group, the project would be formally closed, final acceptance would be obtained, and project records would be archived.

References:- Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Project Management

Learn more about progress here:

https://brainly.com/question/22899420

#SPJ11

You are planning to retire in 30 years and are planning a 20 year retirement. Prior to retirement, you will save $1,200 at the end of each year. If your investment can earn 8% per year over the entire time, how much can you withdraw at the end of each year during retirement?

Answers

At the end of the year, he can earn $20,000 during retirement .

Solution: Use the formula of the future value of an annuity: FVA = C × [((1 + r)n - 1) / r]

Where

FVA = future value of the annuity

C = contribution amount per period

r = interest rate

n = number of periods

Now, we have to find the future value of your contributions to use that amount to determine how much you can withdraw at the end of each year during retirement.FVA = 1,200 × [((1 + 0.08)30 - 1) / 0.08]= 1,200 × [(19.1342) / 0.08]= 1,200 × 239.1765= 287,011.8

Now, we have to calculate the amount that you can withdraw each year during your retirement of 20 years. We will be using the formula of the present value of an annuity for that: PVA = C × [(1 - (1 / (1 + r)n)) / r]Where

PVA = present value of the annuity

C = contribution amount per period

r = interest rate

n = number of periods

Now, we can substitute the values:

PVA = C × [(1 - (1 / (1 + r)n)) / r]= C × [(1 - (1 / (1 + r)n)) / r]= C × [(1 - (1 / (1 + 0.08)20)) / 0.08]= C × [(1 - (1 / 4.66)) / 0.08]= C × [(1 - 0.2146) / 0.08]= C × 12.2079=PVA

The value we have is for the entire retirement period. Since we need to calculate the amount that you can withdraw at the end of each year during retirement, we need to divide this amount by 20 years

.PVA / 20 = C × 12.2079 / 20=C × 0.6104

Now, we can substitute the value of PVA in the equation above to calculate C (contribution per year) that you would need in order to be able to withdraw $20,000 every year:

C × 0.6104 = 287,011.8

C = 287,011.8 / 0.6104

C = 470,712.96

So, if you invest your money and earn an 8% return on your investment every year for the next 30 years and save $470,712.96 at the end of each year, then you would be able to withdraw $20,000 at the end of each year during the 20-year retirement period.

For further information on Retirement earnings visit :

https://brainly.com/question/15711836

#SPJ11

sales revenue is $250,000, fixed costs are $90,000, profit is $50,000, and sales price per unit is $25.00. variable cost per unit is:

Answers

The variable cost per unit is $13.00.

To calculate the variable cost per unit, we can use the formula:

Variable Cost Per Unit = (Sales Price Per Unit - Profit) / (1 + (Fixed Costs / Sales Revenue))

First, let's calculate the contribution margin, which is the amount that sales revenue contributes towards covering the fixed costs and generating a profit.

Contribution Margin = Sales Price Per Unit - Variable Cost Per Unit

Contribution Margin = $25.00 - Variable Cost Per Unit

Now, we can calculate the contribution margin ratio, which is the percentage of each dollar of sales revenue that is available to cover the fixed costs and generate a profit.

Contribution Margin Ratio = Contribution Margin / Sales Price Per Unit

Contribution Margin Ratio = (25.00 - Variable Cost Per Unit) / $25.00

Now, we can use the contribution margin ratio to calculate the break-even sales volume.

Break-Even Sales Volume = Fixed Costs / Contribution Margin Ratio

Break-Even Sales Volume = $90,000 / ((25.00 - Variable Cost Per Unit) / $25.00)

Now, we can use the break-even sales volume to calculate the break-even sales revenue.

Break-Even Sales Revenue = Break-Even Sales Volume * Sales Price Per Unit

Break-Even Sales Revenue = Break-Even Sales Volume * $25.00

Finally, we can use the break-even sales revenue to calculate the variable cost per unit.

Variable Cost Per Unit = (Sales Price Per Unit - Profit) / (1 + (Fixed Costs / Sales Revenue))

Variable Cost Per Unit = ($25.00 - $50,000) / (1 + ($90,000 / $250,000))

Variable Cost Per Unit = $13.00

Learn more about variable costs at https://brainly.com/question/28481161

#SPJ11

Which of the following is a potential limitation when an organization practises promotion from within? Select one: O a. increased employee turnover O b. increased cost-per-hire by using the firm's job posting system O c. reduced employee morale O d. "inbreeding"

Answers

When an organization practices promotion from within, "inbreeding" is a possible limitation. Organizations can turn to internal candidates for job openings in promotion from within.

It means that the individuals in the organization are groomed for higher-level positions. It helps to boost employee morale and reduce employee turnover rates. However, internal promotions can lead to the issue of inbreeding. Inbreeding refers to the fact that hiring a person from within can stifle diversity. It implies that an organization may not recruit new perspectives or strategies. It can lead to a narrow-minded and homogenous leadership group.The drawback of hiring from within is that the organization misses out on the opportunity to bring new concepts and innovative ideas from the external market. Therefore, organizations must use an equal mix of internal and external recruitment and development to maintain diversity and reduce inbreeding in its leadership.

To know more about inbreeding visit:

https://brainly.com/question/14104389

#SPJ11

at december 31 2021 take a break travel has an accounts receivalbe balance of 96,000. allowance for uncollectible accounts has a credit balance of 800 before year end adjusments service revenue all on account for 2021 was 500,000 take a break estimates that its uncollectibke expense for the year is 4% of service revenue what is rhe journal entry and record on the balance sheet

Answers

A journal entry of $20,000 will be made to debit Uncollectible Expense and credit Allowance for Uncollectible Accounts. The balance sheet will show Accounts Receivable as $96,000 and Allowance for Uncollectible Accounts as $20,000.

To record the estimated uncollectible expense for the year, Take a Break Travel needs to make an adjusting journal entry. First, we need to calculate the uncollectible expense:

Uncollectible Expense = Service Revenue * Uncollectible Percentage

Uncollectible Expense = $500,000 * 4% = $20,000

The journal entry will be as follows:

Debit: Uncollectible Expense ($20,000)

Credit: Allowance for Uncollectible Accounts ($20,000)

The Allowance for Uncollectible Accounts is increased by $20,000 to reflect the estimated uncollectible expense. The balance sheet will show the updated allowance for uncollectible accounts balance, which will now be $20,000.

Balance Sheet:

Accounts Receivable: $96,000

Allowance for Uncollectible Accounts: $20,000

The journal entry and balance sheet update reflect Take a Break Travel's recognition of the estimated uncollectible expense and the corresponding increase in the allowance for uncollectible accounts.

This adjustment allows the company to match the estimated expense with the revenue earned in the same period and presents a more accurate representation of the accounts receivable's net realizable value.

To know more about journal entry refer here:

https://brainly.com/question/31192384#

#SPJ11

ASSIGNMENT DETAILS: Select a product that you have recently purchased for personal use. The items should have been purchased in the last 3 months. It can be any product from a beverage or food item, a household or apparel item or a large purchase such as a vehicle. The only item that cannot be selected is a laptop or mobile phone/device. The product I choose Oreo Cookies Answer the following Questions: Product Name 1.2) Describe the item in your own words: What is it, what does it do? 1.3) Why did you purchase this item? What was your use/need? 1.4) Where did you purchase the item? Why? 1.5) Provide 2 Pictures of item (You may copy and paste pictures to the Assignment, provide link to web-based images and/or attach or email images to the assignment): a) Picture of actual product b) Picture of product packaging 1.6) Provide the Purchase Date, and Price 2.1) List 2 Competitive Items that you might have purchased instead of this item. Describe the items and note the 4ps for each. (Competitive items are items that are similar in use and product features but differ in Marketing Mix details – 4p’s). For example, if you purchased a 2-door compact vehicle, a competitive item would be a vehicle similar in size or if you purchased a chocolate bar, a competitive item would be another chocolate bar. 2.2) Why did you select the item you purchased instead of the other 2 options? 2.3) What part of the Marketing Mix offered the advantage that you caused you to purchase the item instead of the Competitive Item? Price, Product, Promotion or Place? Approximately 250 words, one page double spaced) 3.1) List 2 Alternative/Substitute Items that you might have purchased instead of this item and note the 4ps for each. (Alternative items are items that differ in product details but solve the same use case/need). For example, if you purchased a 2-door compact vehicle, an alternative/substitute item might be a Motorized Scooter or Bike if your use case/need is for transportation of 1 person. If your purchase was a chocolate bar, an alternative item might be a candy snack if your use case/need is for a sweet treat. 3.2) Why did you select the item you purchased instead of the other 2 options? 3.3) What part of the Marketing Mix offered the advantage that you caused you to purchase the item instead of the Alternative item? Price, Product, Promotion or Place? 4.1) Now that you have reflected on both the Marketing Mix of the item and its competitive advantage, describe who you think might be the Target Customer for your product. Provide 4 reasons why you think this might be the target audience based each of the 4ps: Product, Price, Promotion, Place.

Answers

Product Name: Oreo Cookies

1.2) Oreo Cookies are a popular snack consisting of two chocolate-flavored cookies with a sweet vanilla cream filling in between. They are known for their distinctive black and white sandwich design.

1.3) I purchased Oreo Cookies because I enjoy having a sweet treat as a snack. They satisfy my craving for something sweet and provide a tasty and convenient snack option.

1.4) I purchased the Oreo Cookies from a local grocery store. The store is conveniently located near my home, making it easily accessible for me to purchase the item whenever I want.

1.5)

a) Picture of actual product:

[Insert picture of Oreo Cookies]

b) Picture of product packaging:

[Insert picture of Oreo Cookies packaging]

1.6) Purchase Date: [Insert purchase date]

Price: [Insert price]

2.1) Competitive Items:

a) Chocolate Chip Cookies:

Product: Chocolate chip cookies made with chunks of chocolate and a soft texture.

Price: Similar price range as Oreo Cookies.

Promotion: Different packaging and branding, highlighting the use of real chocolate chips.

Place: Available in grocery stores and bakery sections.

b) Digestive Biscuits:

Product: Plain, semi-sweet biscuits with a slightly crumbly texture.

Price: Similar price range as Oreo Cookies.

Promotion: Emphasis on digestive benefits and healthy ingredients.

Place: Available in grocery stores and health food sections.

2.2) I selected Oreo Cookies because I prefer their unique taste and texture compared to the other two options. The combination of the chocolate-flavored cookies and the creamy filling is a distinct feature that I enjoy.

2.3) The advantage that caused me to purchase Oreo Cookies instead of the competitive items lies in the product aspect of the marketing mix. The taste, texture, and the specific combination of chocolate cookies with a creamy filling are key factors that set Oreo Cookies apart and make them appealing to me.

3.1) Alternative/Substitute Items:

a) Chocolate Wafer Bars:

Product: Wafer bars coated in chocolate, with layers of crispy wafer and chocolate cream.

Price: Similar price range as Oreo Cookies.

Promotion: Highlighting the layers of wafer and chocolate for a crunchy and indulgent snack.

Place: Available in grocery stores and confectionery sections.

b) Chocolate-covered Pretzels:

Product: Pretzel sticks coated in chocolate for a combination of sweet and salty flavors.

Price: Similar price range as Oreo Cookies.

Promotion: Emphasizing the contrast of sweet chocolate and salty pretzels as a satisfying snack.

Place: Available in grocery stores and snack aisles.

3.2) I selected Oreo Cookies because I enjoy the taste of the chocolate cookies with the creamy filling, which is different from the alternatives. The combination of the cookie and cream provides a unique experience.

3.3) The advantage that caused me to choose Oreo Cookies over the alternative items lies in the product aspect of the marketing mix. The specific taste and texture of Oreo Cookies, with the chocolate cookies and creamy filling, offer a distinct flavor profile that I prefer.

4.1) Target Customer for Oreo Cookies:

Product: Individuals who enjoy sweet snacks and have a preference for chocolate-flavored treats.

Price: Consumers looking for affordable snack options within a moderate price range.

Promotion: Individuals who are influenced by nostalgic branding and enjoy fun and creative advertisements.

Place: Consumers who frequently visit grocery stores and convenience stores for their snack purchases.

Reasons:

Product: The target customers are those who appreciate the unique taste and texture combination

learn more about Oreo Cookies here:

https://brainly.com/question/13492091

#SPJ11

business plan of Nanostar Technologies inc
Create a distribution channel for the business
Do you agree on the strategy in the paper? If no what strategies can you recommend for the business? If you agree why?

Answers

Yes, I agree with the strategy outlined in the paper for creating a distribution channel for the business.

The strategy outlined in the paper suggests a multi-channel distribution approach, utilizing both online and offline channels to reach a wider customer base and maximize sales potential. This approach is supported by the following reasons:

Online presence: Establishing an online distribution channel allows the business to tap into the growing trend of e-commerce and reach customers who prefer to shop online. This can be achieved through the development of a user-friendly website or an online marketplace presence.

Offline presence: Maintaining a physical presence through brick-and-mortar stores or partnerships with existing retailers enables the business to connect with customers who prefer in-person shopping experiences or have limited access to online platforms. This approach helps to build trust and credibility.

Omnichannel integration: Integrating the online and offline channels allows for a seamless shopping experience for customers. For example, customers can order products online and choose to either have them delivered or pick them up in-store. This integration enhances convenience and customer satisfaction.

Targeted marketing: By utilizing both online and offline channels, the business can employ targeted marketing strategies. Online channels provide opportunities for digital marketing, such as social media advertising and email campaigns, while offline channels allow for localized marketing efforts, such as flyers and local event sponsorships.

The multi-channel distribution strategy outlined in the paper is a sound approach for the business. It leverages the advantages of both online and offline channels, allowing the business to reach a wider customer base, provide a seamless shopping experience, and implement targeted marketing strategies. By embracing this strategy, the business can maximize its sales potential and adapt to the evolving consumer preferences in the marketplace.

To know more about business, visit;

https://brainly.com/question/18307610

#SPJ11

You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. Your mortgage bank will lend you the money at a 5.85% APR (semi-annual) for this 360-month loan. However, you can afford monthly

Answers

The monthly mortgage payment for a 30-year, fixed-rate mortgage of $290,000 with a 5.85% APR (semi-annual) would be approximately $1,721.69.

To calculate the monthly mortgage payment, the semi-annual APR of 5.85% is divided by 2 to get the monthly interest rate of 2.925%. Using the loan amount, interest rate, and loan term in months, the monthly payment is calculated using the formula for a fixed-rate mortgage. Plugging in the values, the monthly payment is estimated to be $1,721.69.  The process of calculating the monthly mortgage payment for a 30-year, fixed-rate mortgage of $290,000 with a 5.85% APR (semi-annual). It highlights that the semi-annual APR is divided by 2 to obtain the monthly interest rate. The formula for a fixed-rate mortgage is then used, considering the loan amount, interest rate, and loan term in months. By plugging in the values, the estimated monthly payment of $1,721.69 is obtained.

Learn more about mortgage payment : brainly.com/question/31110884
#SPJ11

QUESTION 6 Geneva Re, company has an ROE of 36%, an equity multiplier of 1.2 and a total asset turnover of 0.54. Using the following information calculate the company's profit margin.
O a. 55.56%
O b. 23.12%
O c. 8.90%
O d. 72.38%

Answers

The profit margin for Geneva Re, given an ROE of 36%, an equity multiplier of 1.2, and a total asset turnover of 0.54, is 8.90%.

The profit margin is a financial ratio that indicates the percentage of each dollar of revenue that results in profit. It is calculated by dividing the net income by the net sales (revenue).

To calculate the profit margin, we can use the DuPont formula, which decomposes the return on equity (ROE) into its components: profit margin, total asset turnover, and equity multiplier.

The formula for ROE is ROE = Profit Margin x Total Asset Turnover x Equity Multiplier.

Given that the ROE is 36% and the equity multiplier is 1.2, we can rearrange the formula to solve for the profit margin.

Profit Margin = ROE / (Total Asset Turnover x Equity Multiplier).

Substituting the given values, we have Profit Margin = 36% / (0.54 x 1.2).

Calculating this, we find that the profit margin is approximately 8.90%, which corresponds to option c. Therefore, Geneva Re's profit margin is 8.90%.

Learn more about profit margin here

https://brainly.com/question/19865598

#SPJ11

BNR Ltd is a listed company with 500,000 shares currently trading at $20 on the ASX. The company announces a one-for-five renounceable rights issue with a subscription price of $19.00.
(a) How many new shares will be issued if the right is fully subscribed to. (b) Calculate the theoretical ex-rights share price. (c) Calculate value of the right.

Answers

BNR Ltd, a listed company, has announced a one-for-five renounceable rights issue with a subscription price of $19. This prompts three calculations: (a) determining the number of new shares to be issued if the right is fully subscribed to.

(a) To calculate the number of new shares that will be issued if the right is fully subscribed to, we need to divide the total number of existing shares by the subscription ratio. In this case, the existing number of shares is 500,000 and the subscription ratio is one-for-five. So, the calculation would be: 500,000 / 5 = 100,000 new shares will be issued.

(b) The theoretical ex-rights share price is the expected price of the company's shares after the rights issue. To calculate this, we need to determine the theoretical market value of the company before and after the rights issue.

Before the rights issue, the market value is calculated by multiplying the current share price by the total number of existing shares: $20 * 500,000 = $10,000,000.

After the rights issue, the market value is the sum of the market value of the existing shares and the market value of the new shares. The market value of the existing shares is calculated by multiplying the current share price by the total number of existing shares: $20 * 500,000 = $10,000,000. The market value of the new shares is calculated by multiplying the subscription price by the number of new shares: $19 * 100,000 = $1,900,000.

The total market value after the rights issue is the sum of the market value of the existing shares and the market value of the new shares: $10,000,000 + $1,900,000 = $11,900,000.

To calculate the theoretical ex-rights share price, we divide the total market value after the rights issue by the total number of shares after the rights issue: $11,900,000 / (500,000 + 100,000) = $19.

To learn more about BNR - brainly.com/question/31778739

#spj11

The stock of Microsoft Corp. traded for $280.35 with current dividend of $2.19 per share, growth rate of 5%, and P/E of 30.76. The stock beta is 0.91, the risk-free rate is 1.7% and the S&P500 index return is 6.5%.
REQUIRED
a. Calculate the required return for the stock according to CAPM.
b. Use the dividend discount model to value the stock. What is the purpose of stock valuation?
c. Calculate the implied expected return. What does this imply for stock valuation?
d. Due to sharp competition in the computer industry, the market revised the estimate of the growth rate to 4%. What should be the effect on the stock price?

Answers

a. the required return for the stock according to CAPM is 6.068%

b.The purpose of stock valuation using the dividend discount model (DDM) is to estimate the intrinsic value of a stock based on its future dividend payments.

c.  the implied expected return. What does this imply for stock valuation is 5.78%.

d.  since the specific time frame for the expected dividends is not provided, we cannot determine the exact impact on the stock price without more information.

a. To calculate the required return for the stock according to the Capital Asset Pricing Model (CAPM), we use the formula:

Required Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)

Given:

Risk-Free Rate = 1.7%

Beta = 0.91

Market Return (S&P500 index return) = 6.5%

Required Return = 1.7% + 0.91 * (6.5% - 1.7%)

Required Return = 1.7% + 0.91 * 4.8%

Required Return = 1.7% + 4.368%

Required Return = 6.068%

Therefore, the required return for the stock according to CAPM is 6.068%.

b. The purpose of stock valuation using the dividend discount model (DDM) is to estimate the intrinsic value of a stock based on its future dividend payments. The DDM assumes that the value of a stock is the present value of all its expected future dividends. By discounting the expected dividends back to the present using an appropriate discount rate, the DDM provides an estimate of the fair value of a stock.

c. To calculate the implied expected return using the dividend discount model (DDM), we use the formula:

Implied Expected Return = Dividend / Stock Price + Growth Rate

Given:

Dividend = $2.19 per share

Stock Price = $280.35

Growth Rate = 5%

Implied Expected Return = $2.19 / $280.35 + 5%

Implied Expected Return = 0.0078 + 0.05

Implied Expected Return = 0.0578 or 5.78%

The implied expected return for the stock is 5.78%. This implies that, based on the current stock price and dividend, investors would expect an annual return of 5.78% from holding the stock.

d. If the market revises the estimate of the growth rate to 4%, it would affect the stock price. In the dividend discount model (DDM), the stock price is directly influenced by the growth rate. A higher growth rate generally leads to a higher stock price, assuming all other factors remain constant.

In this case, if the growth rate is revised down to 4%, it would imply a lower expected future dividend growth for Microsoft. As a result, the stock price would likely decrease since the DDM values future dividends less when the growth rate is lower.

To calculate the new stock price, we need to recalculate the present value of expected future dividends using the revised growth rate. However, since the specific time frame for the expected dividends is not provided, we cannot determine the exact impact on the stock price without more information.

To learn more about dividend discount model visit-

https://brainly.com/question/15798462

#SPJ11

Question 6 (8 marks) ABC Corporation, which is an Australian firm, consists of two business sectors, food and casino, and the information of them is tabulated below: Business Levered Beta Average D/E ratio Market Value ($ million) Revenue ($ million) Food 150 120 0.7 40% Casino 80 25 1.1 30% The firm plans to sell 50% of Casino business and use the proceeds to invest in a new business, Steel, which has an unlevered beta of 1.2. The D/E ratio is stable at 0.25, and tax rate is 40%. a) What is the levered beta for ABC Corporation after the investment. (5 marks) b) What type of beta is estimated in question a)? Specify its advantages compared with the historical beta. (3 marks)

Answers

a) The levered beta for ABC Corporation after the investment is 1.025.
b) The beta estimated in question a) is the levered beta.

a)Levered beta is a measure of systematic risk that takes into account the capital structure of a company. To calculate the levered beta after the investment, we need to consider the existing levered betas, D/E ratios, and market values of the business sectors.
For the food sector, the levered beta is 150, and the D/E ratio is 0.7. The market value weight for the food sector is 40%.
For the casino sector, which is being sold, the levered beta is 80, and the D/E ratio is 1.1. The market value weight for the casino sector is 30%.
For the new business, Steel, the unlevered beta is 1.2, and the D/E ratio is 0.25. The market value weight for Steel is 50%.
To calculate the levered beta for ABC Corporation after the investment, we use the weighted average formula:
Levered Beta = (Weight of Food * Levered Beta of Food) + (Weight of Casino * Levered Beta of Casino) + (Weight of Steel * Unlevered Beta of Steel * (1 + (1 - Tax Rate) * D/E ratio of Steel))

b)The levered beta takes into account the capital structure of a company, including its debt level. It measures the sensitivity of a company's stock price to changes in the overall market. The advantage of using the levered beta compared to the historical beta is that it reflects the specific risk associated with a company's capital structure. By incorporating the D/E ratios and the tax rate, the levered beta provides a more accurate measure of the systematic risk faced by investors. This is particularly useful when evaluating investments or analyzing the impact of capital structure changes on the overall risk profile of a company.

Learn more about levered beta here:

https://brainly.com/question/15540259

#SPJ11

Which law prohibits harmful practices in the production of beef meant for human​ consumption?

A. Fair Packaging and Labeling Act

B. Child Protection and Toy Safety Act

C. Federal Trade Commission Act

D. Food and Drug Act

E. Prescription Drug Marketing Act

Answers

The law that specifically prohibits harmful practices in the production of beef meant for human consumption is the Food and Drug Act.

The law that prohibits harmful practices in the production of beef meant for human consumption is the Food and Drug Act.

The Food and Drug Act is a federal law in the United States that regulates the safety and labeling of food, drugs, cosmetics, and medical devices. It is enforced by the Food and Drug Administration (FDA) and sets standards for the production, handling, and distribution of food products to ensure their safety for human consumption.

While the other options mentioned have their own significance in consumer protection and regulation, they are not specifically related to the production of beef meant for human consumption:

A. Fair Packaging and Labeling Act: This law requires proper labeling and packaging of consumer products to provide accurate information to consumers.

B. Child Protection and Toy Safety Act: This law focuses on the safety standards and regulations for children's products and toys.

C. Federal Trade Commission Act: This law establishes the Federal Trade Commission (FTC) and addresses unfair and deceptive trade practices in commerce.

E. Prescription Drug Marketing Act: This law regulates the distribution and marketing of prescription drugs to ensure their safety and prevent counterfeit or illegal distribution.

This law sets standards and regulations to ensure the safety and labeling of food products, including beef, in the United States.

To know more about Drug Act, visit

https://brainly.com/question/12577883

#SPJ11

5. Assume there are three potential outcomes in the market, high, normal, and low. The probabilities of these three outcomes are 0.30, 0.40, and 0.30, respectively. In the three outcomes stock X has returns of 48%, 22%, and -24%, respectively; stock Y has returns of 24%, 12%, and -5%, respectively. 3 pts a. Compute the expected return for stock Y b. Compute the standard deviation for stock X. 5. Assume there are three potential outcomes in the market, high, normal, and low. The probabilities of these three outcomes are 0.30, 0.40, and 0.30, respectively. In the three outcomes stock X has returns of 48%, 22%, and -24%, respectively; stock Y has returns of 24%, 12%, and -5%, respectively. 3 pts a. Compute the expected return for stock Y b. Compute the standard deviation for stock X.

Answers

Expected return is a measure of the average return an investment is expected to generate. It is calculated by multiplying each possible return by its corresponding probability and summing them up. Standard deviation, on the other hand, quantifies the volatility or risk associated with an investment.

a. The expected return for stock Y can be calculated by multiplying each return by its corresponding probability and summing them up. (0.30 * 24%) + (0.40 * 12%) + (0.30 * -5%) = 7.5%.
b. The standard deviation for stock X measures the volatility or dispersion of its returns. First, calculate the expected return for stock X using the same method as above. Then, calculate the squared difference between each return and the expected return, multiply it by its corresponding probability, sum them up, and take the square root of the result. The expected return for stock X is (0.30 * 48%) + (0.40 * 22%) + (0.30 * -24%) = 20.2%. The standard deviation is √[(0.30 * (48% - 20.2%)²) + (0.40 * (22% - 20.2%)²) + (0.30 * (-24% - 20.2%)²)] = 27.8%.
It measures how much the returns vary from the expected return. It is calculated by taking the square root of the weighted sum of the squared differences between each return and the expected return, where the weights are the probabilities of each outcome

Learn more about expected returns here:

https://brainly.com/question/32133392

#SPJ11

PART A:
PART B:
I need help with Part B. Please indicate
your full solution and regarding "Reporting and Analyzing
Inventory" in Accounting.
Blossom Company purchased equipment on March 31, 2021, at a cost of $272,000. Management is considering the merits of using the diminishing-balance or units-of-production method of depreciation instea

Answers

The depreciation schedule using the straight-line method is given as:

Year Units Produced Depreciation Expense Accumulated Depreciation Book Value

1 15,000 $76,000 $76,000 $236,000

2 20,600 $76,000 $152,000 $160,000

3 19,400 $76,000 $228,000 $84,000

4 20,000 $76,000 $304,000 $8,000

5 5,000 $76,000 $380,000 ($70,000)

Straight-line method of depreciation is used to allocate the cost of a fixed asset over its useful life in a systematic and rational manner. In this method, the depreciation expense is the same amount for every year. The formula to calculate straight-line depreciation is:

Depreciation expense = (cost of asset - salvage value) / useful life of asset.

Book Value = Cost - Accumulated Depreciation.

Depreciation schedule using the straight-line method:

Year  Units Produced  Depreciation Expense Accumulated Depreciation  Book Value

1  15,000  ($312,000 - $8,000) / 4 = $76,000  $76,000   $236,000

2  20,600 ($312,000 - $8,000) / 4 = $76,000  $152,000  $160,000

3  19,400  ($312,000 - $8,000) / 4 = $76,000   $228,000  $84,000

4  20,000 ($312,000 - $8,000) / 4 = $76,000   $304,000  $8,000

5  5,000  ($312,000 - $8,000) / 4 = $76,000    $380,000  ($70,000)

Note: The question is incomplete. The complete question probably is: Blossom Company purchased equipment on March 31, 2021, at a cost of $312,000.  The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 15,000 units in 2021; 20,600 units in 2022; 19,400 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Blossom has a December 31 year end. Prepare separate depreciation schedules for the life of the equipment using Straight-line method.

Learn more about Depreciation:

https://brainly.com/question/27971176

#SPJ11

Discuss the key components of a quality management system to be
considered at a project launch meeting to be held by a main
contractor.

Answers

At a project launch meeting, a main contractor should consider the key components of a quality management system to ensure the successful implementation of the project.

Quality Policy: Establish a clear and concise quality policy that outlines the organization's commitment to delivering a high standard of quality in all project activities. The policy should align with the project's objectives and reflect the contractor's commitment to meeting client requirements. Quality Objectives: Define measurable quality objectives that support the overall project goals. These objectives should be specific, achievable, and aligned with the project's scope, schedule, and budget.

Learn more about management here;

https://brainly.com/question/32216947

#SPJ11

Other Questions
Is "falling efficacy scale (FES)" non-parametric or parametric(if it is, is it nominal, ordinal, interval or ratio)? Abigail is a workaholic and often fails to keep the promises she makes to her friends. Her behavior shows that she has a-A. A strong tendency toward stimulus enhancement.B. A weak tendency toward say-do correspondence.C. A weak tendency toward stimulus enhancement On January 1, 2020, Bramble Corporation acquired the following properties: 1. Investment property consisting of land and an apartment building in Toronto for $1.5 million. To finance this transaction, Bramble Corporation issued a five-year interest-free promissory note to repay $2,307,941 on January 1, 2025. 2. Vacant land in Rome, Italy for $4 million. To finance this transaction, Bramble Corporation obtained a 7% mortgage for the full purchase price, secured by the land, with a maturity date of January 1, 2030. The Federal Emergency Management Agency (FEMA) states that group shelters "require complex planning and coordination between state, local and voluntary agencies."Which element of an effective body paragraph is in bold?a. Elaborative detailb. Signal word or phrasec. Topic sentenced. Transition word or phrase 4) Why do rain shadows exist on the leeward side of mountains? 3. Graph the equations and shade the area of theregion between the curves. Determine its area by integrating overthe x-axis. y = e, y = ex, and y = e-x First answer to this question receives There is only one question to answer from a 9 page document. Please use your own word. The length of the response shouldn't be less than 200 words. Here is the question: Discuss the following theme in the "Acount Of My Hut" The feeling of mappo ("end of dharma"/"End time") The open interest on silver futures at a particular time is the number of __________.Multiple Choicea. silver futures contracts traded the previous dayb. all outstanding silver futures contractsc. long and short silver futures positions counted separately on a particular trading dayd. silver futures contracts traded during the day If you invest $178,571 in a project that generates a $25,000perpetual annual cash flow, its required return on capital isA. 14.0%B. 714.3%C. 7.14%D. 0.14% Which taxpayer has property that is depreciable?a. amanda purchased a new stove for personal use in her homeb. james, a calendar-year taxpayer, purchased a new camera on March 2, 2021, for his photography business. Later, he had buyer's remorse and sold the camera on December 5, 2021c. vera purchased a residence and immediately rented it to othersd. zack purchased a lot of land that he held for investment What is debris flow? What are the characteristics of flow anddeposition of a debris flow? How to monitor and reduce the risk ofa stream with potential debris flow? 1. (Measurement error with a binary regressor) The true population regression model is y = Bo+B + u. Let Assumptions MLR. 1-MLR.4 hold for this model, and in particular E[ur] = 0. z is binary (taking values of 0 and 1 only), but it is unobserved. Suppose that we have a (possibly) noisy measurement of r*, denoted by 2, which is also binary. Assume Elur, x] = E[ur*]. (a) Show that Elyr = 1] = (30 +3)P(r = 1r = 1) + BoP(x* = 0x = 1), Elyr=0]= (30 +3)P(x = 1|r=0) + P(x* = 0 = 0). Hint: Use law of iterated expectation, e.g., Elyr = 1] = E[y|zx = 1,2* = 1] x P(x* = 1|x = 1) + Ey|x = 1,2* = 0] x P(r = 0x = 1). (b) Let 3 be the OLS estimator of 3 from regressing y on z. Show that 3 +3 (P(2* = 0x = 0) - P(z* = 0r = 1)) Hint: Use part (a) above, law of large numbers and the conclusion of Question 1, part (b) in Problem Set 1. That is, the OLS estimator 3 = 1-0 where is the average of y, over the part of the sample with 2 = 1, and yo is the average of y, over the part of the sample with z; = 0. (c) Suppose the probability of the observed measurement z being misclassified is zero. That is, P(r = 0|z = 1) = P(x = 1|x = 0) = 0. What is the probability limit of 3 in this case? Explain the intuition for your result. (d) Suppose the probability of the observed measurement z being misclassified is one. That is, P(r = 0|r= 1)=P(r = 1 r = 0) = 1. What is the probability limit of 3 in this case? Explain the intuition for your result. (e) Suppose the probability of the observed measurement z being misclassified is 0.5. That is, P(r=0x = 1) = P(z* = 1x = 0) = 0.5. What is the probability limit of 3, in this case? Explain the intuition for your result. Which of the following statements would a modern psychoanalyst most likely agree with?A. Most behavior is the result of unconscious conflict.B. The unconscious plays an important role in human functioning.C. Childhood sexuality is more important than childhood relationships.D. Childhood is unimportant in development. Choose the correct answer without explanationQuestion 7 Not yet answered Marked out of 2.00 Flag question This decision-making aid is used for decision situations that occur in sequence; it consists of a pictorial representation of decision alte A journal article is a scholarly paper that presents the current knowledge including substantive findings as well as theoretical and methodological contributions to a particular topic. In this assignment, students are at first required to review three (3) journal articles that have been published from 2018 to the recent with the topic related to the focus as listed below: AppleBanana, Inc. has no debt outstanding and a total market value of 5 million baht. EBIT are projected to be 1 million baht if the economic conditions are normal. If there is a strong expansion in the economy, then EBIT will be 10 percent higher. If there is a recession, then EBIT will be 10 percent lower. The company is considering a 2 million baht debt issue at an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 100,000 shares outstanding. The company has a tax rate of 33 percent. What is the EPS under a strong expansion if the company goes through with recapitalisation? (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16) The manager of a garden shop mixes grass seed that is 60% rye grass with 70 lb of grass seed that is 80% rye grass to make a mixture that is 74% rye grass. How much of the 60% rye grass is used? An object emits radiation at a wavelength of 671.1 nm, but weobserve the wavelength of emission to be 673.1 nm. How fast is theobject moving away from us? armonic motion has a frequency of 22.7 cps and its maximum velocity is 6.81 m/sec. determine its maximum acceleration in m/s2. write your answer to 2 decimal places. Consider the following theories of motivation: Maslow Hierarchy of Needs, ERG Theory, Two Factor Theory, and Acquired Needs Theory. Which ONE do you believe relates best to you and why? Give an example of how you have used this theory