Astro Mile & Co. Owns Vast Amounts Of Corporate Bonds. Suppose Astro Mile Buys $ 1,400,000 Of BitterCo (2024)

Answer:

0.0678

Explanation:

Given:

Profit margin = 6% = 0.06

Dividend payout ratio = 37% = 0.37

Total asset turnover = 1.2

Equity multiplier = 1.4

Required:

Find the sustainable rate of growth.

First find the return on equity using the formula: Equity Multiplier × Assets turnover × Profit margin

= 1.4 * 1.2 * 0.06

= 0.1008

Return on equity = 0.1008

To find the sustainable growth, we have the following:

[tex]= \frac{0.1008 (1 - 0.37)}{1 - (0.1008 (1 - 0.37))}[/tex]

[tex]= \frac{0.063504}{1 - 0.063504} = 0.0678[/tex]

Therefore, sustainable growth = 0.0678

Answer:

Process A= from 10,001 to 19,999

Process B= 20,001 to infinity

Process C= from 0 to 9,999

Explanation:

Giving the following information:

Process A has a fixed cost of $200,000 and a variable cost of $40 per unit.

Process B has a fixed cost of $600,000 and a variable cost of $20 per unit.

Process C has no fixed cost since the item is purchased. It's variable cost is the purchase price of $60 per unit.

The general rule is that the lower the fixed costs, the fewer units are required to cover for costs. To determine the number of units for each process, we will compare process C to A, and then A to B.

Process C and A:

Process A= 200,000 + 40x

Process C= 60x

x= number of units

200,000 + 40x= 60x

200,000= 20x

10,000 = number of units

The indifference point is 10,000 units. From 0 to 9,999; process C is more convenient.

Process A and B:

Process A= 200,000 + 40x

Process B= 600,000 + 20x

200,000 + 40x = 600,000 + 20x

20x= 400,000

x= 20,000

The indifference point is 20,000 units. From 10,001 to 19,999; process A is more convenient.

Answer:

Total wealth = $7,500

Explanation:

The primary goal of financial management is to increase and maximize the wealth of the shareholders of the corporation.

This wealth is measured and represented by the share price, which is the measured of how much the company is worth at any time.

The higher the share price , hence the higher the value of the company and the higher the wealth of the shareholder.

Wilson's total wealth will be equal to the share price multiplied by the number of units

Total wealth = $37.50 per share × 200

= $7,500

Total wealth = $7,500

Answer:

year cash flows

0 -$21,500,000

1 $4,400,000

2 $4,400,000

3 $4,400,000

4 -$5,400,000

5 $2,300,000

6 $2,300,000

7 $2,300,000

8 $2,300,000

9 $2,300,000

10 $2,300,000

I used an excel spreadsheet to calculate the project's NPV, IRR and MIRR.

a. Calculate the project's NPV and IRR where the discount rate is 11 percent. Is the project a worthwhile investment based on these two measures? Why or why not?

NPV = -$7,895,194IRR = 0.09%Since the NPV is negative, the company should not invest in this project.

b. Calculate the project's MIRR. Is the project a worthwhile investment based on this measure? Why or why not?

Since we are not given any financing rate nor WACC, we must assume that the company's discount rate is equal to its financing rate and WACC:

MIRR = 6.88%Since the MIRR is too low (lower than the company's WACC), the company should not invest in this project.

When you calculate MIRR, you must assume that the company will invest the cash inflows at their normal WACC while the outflows are financed at a different rate.

Answer:

is less than the average product of labor when the average product of labor is decreasing.

is negative when adding another unit of labor decreases output.

Explanation:

The marginal product of labor refers to the change in the output with respect to adding additional or extra units of labor keeping other factors constant.

The formula for computing the marginal product of labor is

= Total product ÷ Change in labor

By dividing the total product from the change in labor we can get the marginal product of labor

It is always less than the average product of labor in the case when it is declined i.e average product labor

And it would be negative when extra or other units is added that result into a decrease in an output

Answer:

A) $11,978.10

B) 9%

C) 15 years

D) 6%

E) $78,866.84

Explanation:

Present Value Annuity Amount i = n =

A 3000 8% 5

242980 75000 B 4

161214 20000 9% C

500000 80518 D 8

250000 E 10% 4

A = $3,000 x 3.9927 = $11,978.10

B: annuity factor = $242,980 / $75,000 = 3.23973

using the annuity table, a 9% annuity for 4 years has a factor = 3.2397

C: annuity factor = $161,214 / $20,000 = 8.0607

using the annuity table, a 9% annuity for 15 years has a factor = 8.0607

D: annuity factor = $500,000 / $80,518 = 6.20979

using the annuity table, a 6% annuity for 8 years has a factor = 6.2098

E: annuity payment = present value / annuity factor = $250,000 / 3.1699 (annuity factor 10%, 4 years) = $78,866.84

Answer:

Four Factors for Successful Venture

The most important among them is Entrepreneur.

Explanation:

An Entrepreneur is the person or entity which galvanizes the other factors. He or she captures the opportunity with the resources he can mobilize within an organizational setting that he arranges. So, success depends on him or her and not the others.

Opportunity cannot seize itself, though it is important for success. Without opportunity to deploy resources, the best entrepreneur will be engaging in an exercise in futility. One cannot capture opportunities without deploying some resources, human, financial, and knowledge. To make a success of the whole venture, there must be a kind of organization. It is organization that organizes resources to seize opportunities. But, organization cannot operate on itself. It must be led by somebody, who is called the Entrepreneur. He or she is the mover and shaker of these factors and therefore, the most important.

Answer:

100

Explanation:

hope this helps

Answer:

B. Elsa must receive her job back

Explanation:

The National Labor Relations Act protects the right of workers to strike and stops employers from terminating employees for exercising this right. But this law only offers protection for lawful strikes. Since strike is lawful, Elsa must get her job back when the strike is resolved and cannot be terminated from the company

Employees use strikes as a medium to demand for better wages, benefits and better working conditions. workers cannot be fired for going on lawful strikes.

Answer and Explanation:

The computation of the official unemployment rate is shown below:

Official unemployment rate is

= Unemployed workers ÷ (Unemployed + employed) × 100

= 13,863,000 ÷ (13,863,000 + 139,323,000) × 100

= 9.05%

Now for the U-4 is

= (Unemployed workers + discouraged workers) ÷ (Unemployed + employed + discouraged workers) × 100

= (13,863,000 + $993,000) ÷ (13,863,000 + 139,323,000 + $993,000) × 100

= 9.64%

Therefore for exclduing the discouraged workers it may cause the offical rate to understate the underemployment true extent

Answer: 1. To Evaluate

2. To Summarize

3. To Synthesize

4. To Analyze

Explanation:

1. When evaluating a work the main goal is to determine its worth and this is usually done based on previous perceptions as well as set standards. The person is statement 1 gives their opinion of the movie basing it off of the director being too ambitious. They give the film a low value because people were sleeping through it and then offer their opinion that the book should be read and the movie avoided.

2. When summarising the main purpose is to convert the large amount of information available to a smaller and more concise format from which the main idea of the work can be discovered immediately. The owner of the second statement made you as the reader know what happened in the film in not too many words so you get the main idea.

3. When works are synthesized, the author makes note of different things and then brings them together to form something entirely new. The author of this statement notes how the various elements were used to entice the viewer such as the music, the actions of the actors, and the tight camera angles. These are things were not central to the movie but the author made note of them and created a whole new narrative of why the movie was so successful.

4. When analyzing, the work is broken down into its composite parts to see how and if the parts go together. The author of the statement breaks the film down into a composite part which was when the prisoners helped the guards in shutting down the riots. The author then proceeded to explain how this part is not logical and then related this to the entire movie showing that the author also dissected other parts of the film and saw similar behavior.

After reading the following paragraphs about four films and then identifying the purpose of each paragraph the conclusion made is:

1. To Evaluate

2. To Summarize

3. To Synthesize

4. To Analyze

The explanation for the following answers are:

1. The fundamental purpose of evaluating a work is to determine its value, which is usually done based on previous perceptions as well as established standards.

Statement 1 expresses their assessment of the film, citing the director's overabundance as a reason. They give the film a low rating because people were sleeping through it, and then recommend that people read the book instead of watching the movie.

2. The fundamental goal of summarizing is to reduce the enormous amount of material provided to a smaller, more concise format from which the work's key point may be discovered quickly.

The owner of the second statement made you, the reader, aware of what occurred in the film in a few words, allowing you to grasp the key point.

3. When a piece is synthesized, the creator takes notes on several elements and then combines them to create something altogether new. The author of this statement discusses how numerous components, such as music, actor actions, and tight camera angles, were utilised to lure the audience.

These were not crucial to the film, but the author took note of them and built a whole new story about why the film was so popular.

4. When examining a piece of work, it is disassembled into its component components to see how and if they fit together. The statement's author divides the film into a composite section during which the inmates assisted the guards in putting an end to the rioting.

The author then went on to explain why this aspect isn't rational, and then connected it to the rest of the movie, demonstrating that he deconstructed other parts of the movie and noticed similar behavior.

For more information about films refer to the link:

https://brainly.com/question/21733698

Answer:

Increase; raise

Explanation:

A closed economy is a self sufficient economy. The goal of a closed economy is to provide domestic consumers with everything they need from within the country's borders.

If federal government increases spending without also increasing increasing taxes, real GDP will increase and raise price level in the short run.

Answer:

Cash flows from investing activities is $1,900

Explanation:

Cash flow from Investing Activities involves movements in the purchase and / or sell of capital expenditures.

Prepare the Cash flow from Investing Activities Section as follows :

Cash flow from Investing Activities

Proceeds from Sale of short-term stock investments $ 8,500

Purchase of Equipment -$6,600

Net Cash flow from Investing Activities $1,900

Conclusion :

Cash flows from investing activities is $1,900

Answer: Reflexivity

Explanation:

Here is the complete question:

A year​ ago, the IT team earned​ corporate-wide recognition for its performance. More​ recently, it has begun to experience some declines in its performance. They have missed the last three project deadlines and have experienced budget overruns. The team leader has encouraged the team members to reflect on and adjust their purpose. To turn around the​ team's performance, the team lead is encouraging the team to show​ __________.

a. creativity

b. adherence to norms

c. OCBs

d. reflexivity

e. cohesion

Reflexivity simply means when individuals examine their own judgements, beliefs, and practices during a project or a research process and how their judgements, practices or beliefs may have influenced or impacted the research.

From the question, we are told that a year​ ago, the IT team earned​ corporate-wide recognition for its performance but recently, it has begun to experience some declines in its performance which has led to them missing the last three project deadlines and having experienced budget overruns.

To turn around the​ team's performance, the team lead is encouraging the team to show reflexivity. He wants them to look at what they've been doing earlier and what they're doing presently and make necessary adjustments regarding their judgements for the goals of the organization to be achieved.

Answer:

JUST DEW IT CORPORATION

Balance Sheet

For 2017 and 2018

2017 2018 Cash

source / use

Assets:

Current assets

Cash $12,157 $14,105 source

Accounts receivable $29,382 $32,815 use

Inventory $54,632 $57,204 use

Total current assets $96,171 $104,124

Non-current assets

Net plant and equip. $367,241 $375,830 use

Total assets $463,412 $479,954

Liabilities and stockholders' equity:

Current liabilities

Accounts payable $46,382 $49,276 source

Notes payable $18,246 $19,784 source

Total current liabilities $64,628 $69,060

Long term debt

Long-term debt $49,000 $45,000 use

Owners’ equity

Common stock and

paid-in surplus $50,000 $50,000 -

Retained earnings $299,784 $315,894 source

Total owners' equity $349,784 $365,894

Total liabilities and

stockholders' equity: $463,412 $479,954

Answer and Explanation:

The journal entry is shown below:

On April 1, 2020

Cash$315,016

Finance charge ($524,600 × 4%)$20,984

To Notes payable $336,000

(Being the cash and finance charge is recorded)

Fo recording this we debited the cash and finance charge as it increased the assets and expenses and credited the note payable as it also increased the liabilities

Answer:

12.18%

Explanation:

From the question the next dividend payment that will be made by Halestorm Inc. will be $1.76 per share

This dividend payment is expected to have a growth rate of 7% forever

= 7/100

= 0.07

Since the current stock sells for $34 per share then the required rate of return can be calculated as follows

R= (D1/Po) + g

R= required rate of return

D1= dividend payment

Po= Current price of stock

R= ($1.76/$34) + 0.07

R= 0.05176 + 0.07

R= 0.1218×100

R= 12.18%

Hence the required rate of return is 12.18%

Answer:

Gross profit from the month of December is $238000

Explanation:

Question is incomplete but the missing part is:

Cash received from customer during december 2017 - 387,000

Cash paid to supplier for inventory during december 2017 - 131,000

Accrual basis revenues

Particulars Amount $

Cash received from customer 387000

during December 2017

Cash received in December for -139000

November accounts receivable

December sales made on account 141000

collected in January

Accrual basis revenues 389000

Accrual basis expenses

Particulars Amount $

Cash paid to suppliers for inventory 131000

during December 2017

Payments for inventory purchased -19000

and used in November

Inventory purchased in November 39000

but not used in December

Accrual basis expenses 151000

Gross profit from the month of December= Accrual basis revenues - Accrual basis expenses

Gross profit = 389000 - 151000

Gross profit = $238000

Answer and Explanation:

The journal entries are shown below:

1. Cash Dr $2,600,000

To Note payable $2,600,000

(Being the issuance of the note is recorded)

For recording this we debited the cash as it increased the assets and credited the note payable as it also increased the liabilities

2. Interest expense $26,000

To interest payable $26,000

(Being the interest expense is recorded)

For recording this we debited the interest expense as it increased the expenses and credited the note payable as it also increased the liabilities

The computation is shown below:

= $2,600,000 × 6% × 2 months ÷ 12 months

= $26,000

Answer:

A low load variable annuity separate account with a growth objective

Explanation:

The customer's aim is to take retirement when he is around 60 years old, because he does not have a portfolio, a large stock fund mutual funds does not provide a lot of income, resulting in a higher risk and high risk.

A low load variable annuity separate account with a growth objective is the best suggestion for this customer to invest his money, because variable annuity will pay till the customer passes that better matches his objective

Complete Question:

The Giant Machinery has the current capital structure of 65% equity and 35% debt. Its net income in the current year is $250 000. The company is planning to launch a project that will requires an investment of $175 000 next year. Currently the share of Giant machinery is $25/share. Required: a. How much dividend Giant Machinery can pay its shareholders this year and what is dividend payout ratio of the company. Assume the Residual Dividend Payout Policy applies? b. If the company is paying a dividend of $2.50/share and tomorrow the stock will go ex-dividend. Calculate the ex-dividend price tomorrow morning. Assuming the tax on dividend is 15%? c. Little Equipment for Hire is a subsidiary in the Giant Machinery and currently under the liquidation plan due to the severe contraction of operation due to corona virus. The company plans to pay total dividend of $2.5 million now and $ 7.5 million one year from now as a liquidating dividend. The required rate of return for shareholders is 12%. Calculate the current value of the firm’s equity in total and per share if the firm has 1.5 million shares outstanding?

Answer:

A.) $136,250 ; 54.5%

B.) $22.875

C.) 7.27

Explanation:

Given the following :

Investment plan = $175,000

Capital structure:

Equity = 65%, Debt = 35%

Income = $250,000

Capital project takes priority before the residual income is shared as Dividend, according to the residual Dividend payout policy.

DEBT component of investment :

35% × 175,000 = $61,250

Equity component = 65% × 175000 = $113,750

Dividend = Income - Equity

Equity here is the amount to be reinvested.

Dividend = $(250,000 - 113,750) = $136,250

Dividend payout ratio = Dividend / income

= $136,250 / 250,000 = 0.545 = 54.5%

B.) current price = $25/share

Dividend = 2.50/share

Tax rate = 15% = 0.15

Outstanding shares = 1,500,000

E-Dividend price :

[current price - (Dividend(1 - tax rate)]

[$25 -($2.50(1-0.15)]

$25 - ($2.50(0.85)

$25 - $2.125 = $22.875

C.)

Payment now (D0) = $2.5 million

Payment after 1 year = $7.5 million

Rate of return = 12% = 112% = 1.12

current value per share is calculated by:

(Current value of shares / shares outstanding)

Current value : (D0 + (D1 × 1.12))

$2,500,000 + ($7,500,000 × 1.12)

= 2500000 + 8400000 = 10900000

Current value per share:

10900000 / 1500000 = 7.27

Answer:

The answer is 5%

Explanation:

Solution

Given that:

A stock with a beta =2.0

The expected rate of return =21%

Market return turnout = 8%

Now,

Rf = risk free return

Rp = risk premium =Rm -Rf

β = 2.0

Thus

The expected return R = Rf +β *Rp

= Rf +β * (Rm -Rf)

R = Rf +2.0 (Rm -Rf)

=Rf + 2 times risk premium

So,

The market turns by 8%

R = Rf +2.0 (Rm -8%-Rf)

=Rf + 2 Rm-16%-2Rf

Then

The expected return is reduced by 16%

Hence,

21% -16% =5%

Therefore the expected rate of return on the stock is 5%

Answer:

Direct material price variance $ 21,000 unfavorable

Explanation:

A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite.

$

6,5000 pounds should have cost (6500× $12) 78,000

but did cost 99,600

Direct material price variance 21,000 unfavorable

Answer:

Net Cash Flows from Operating Activities for 2012 will be $2,082

Explanation:

Prepare the Cash flow from Operating Activities Section to determine the Net Cash Flows from Operating Activities.

Cash flow from Operating Activities :

Net income 3,382

Adjustment for Non-Cash items :

Depreciation 810

Adjustment for Changes in Working Capital items :

Decrease in Accounts Receivables 200

Increase in Inventory -500

Decrease in Notes payable -400

Decrease in Accounts payable -1,000

Increase in Accruals 400

Net Cash Flows from Operating Activities 2,082

Conclusion :

Net Cash Flows from Operating Activities for 2012 will be $2,082

Answer: $7464

Explanation:

From the question, we are told that a

company bought $8,100 of merchandise on June 15 with terms of 3/10, n/45, on June 20, it returned $405 of that merchandise and on June 24, it paid the balance owed for the merchandise taking any discount it was entitled to.

The cash paid on June 24 goes thus:

Net purchase of returns will be:

= $8100 - $405

= $7695

The discount is 3% when made within 10days. Since there is a 4 days difference from June 20th to June 24th, the 3% discount is applicable, therefore the cash paid on June 24 will be:

= $7695 × (100% - 3%)

= $7695 × 97%

= $7695 × 0.97

= $7464

Answer:

b.extract maximum profits from its investments.

Explanation:

A harvest strategy is when companies reduce the investment they have in a product that is in the end of its life cycle to be able to get the highest profits possible so the investors can get their money. According to this, the answer is that in a declining industry, a company may utilize a harvest strategy and extract maximum profits from its investments.

The other options are not right because in a harvest strategy companies decrease thir investment, they don't go to a new market and as they are trying to get the maximum profit possible, they are not interested in increasing the advertising expenditure.

Answer and Explanation:

The computation is shown below:

Marcus’s original Consumer surplus is

= Willing to pay - customer actually pay

= $45 - $35

= $10

Marcus’s producer surplus from the resale is

= Amount received by producer - the minimum amount to accept

= $55 - $45

= $10

Starling’s consumer surplus from the resale is

Willing to pay - customer actually pay

= $80 - $55

= $25

And, the Total surplus generated from the resale is

= Producer surplus + consumer surplus

= $10 + $25

= $35

Answer:

Reduced by $4000

Explanation:

Your account will be reduced by $4000 this is how it will happen

You sell at $40 and again bought it back at $40

And at the end of the day, it was back to $42

You will lose value as it was $50 before and $42 at the end of the day

Difference = $50 - $42 = $8

loss = $8 x 500 = $4,000

NOTE: However number of shares remain same.

Answer:

Total Overhead Cost is $ 510,000 for 78,000 direct labor hours

Explanation:

Corrington Manufacturing Company

Fixed Budget 80,000 direct labor hours

Variable Overhead $400,000

Fixed Overhead $120,000

Flexible Budget 78,000 direct labor hours

Variable Over head = $ 400,000/ 80,000 * 78,000= $ 390,000

Fixed Overhead $120,000

Total Overhead Cost is $ 510,000 for 78,000 direct labor hours

First we divide the variable overhead with the budgeted number of direct labor hours and then multiply it with the flexible labour hours to get the variable overhead at this activity level . The fixed overhead does not change.

Answer: $3,250,000

Explanation:

The Current Ratio is used to calculate if the company's current assets can pay off it's current Liabilities.

It is calculated by dividing Current Assets by Current Liabilities.

The company plans to increase it's note payable to enable it but more Inventory. We can therefore assume that the increase in notes Payable (current Liability) will be the same as the increase in inventory (current asset) since the former is funding the latter.

The company does not want the current Ratio dropping below 1.2 so 1.2 is the ideal ratio.

The formula will therefore be;

1.2 = (Current Assets + Change in Notes Payable ) / Current Liabilities + Change in Notes Payable

1.2 = (1,250,000 + Change in Notes Payable) / 500,000 + Change in Notes Payable

600,000 + 1.2(Change in Notes Payable) = 1,250,000 + Change in Notes Payable

1.2( Change in Notes Payable) - Change in Notes Payable = 1,250,000 - 600,000

0.2 (Change in Notes Payable) = 650,000

Change in Notes Payable = $3,250,000