Patterson Brothers recently reported an EBITDA of $11.5 million and net income of $1.725 million. It had $1.5 million of interest expense, and its corporate tax rate was 25%. What was its charge for depreciation and amortization? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest
dollar, if necessary.

Answers

Answer 1

Patterson Brothers' charge for depreciation and amortization was $2.75 million. The company is also investing heavily in its assets.

We can calculate Patterson Brothers' charge for depreciation and amortization by using the following formula:

Depreciation and amortization = EBITDA - EBIT - Interest expense - Taxes

Substituting the values from the question, we get:

Depreciation and amortization = $11.5 million - $9 million - $1.5 million - $437,500 = $2.75 million

Therefore, Patterson Brothers' charge for depreciation and amortization was $2.75 million.

EBITDA is earnings before interest, taxes, depreciation, and amortization. It is a measure of a company's operating performance.

EBIT is earnings before interest and taxes. It is calculated by subtracting interest expense from EBITDA.

Taxes are calculated by multiplying EBIT by the corporate tax rate.

Depreciation and amortization are non-cash expenses that are used to account for the decline in the value of a company's assets over time.

By calculating Patterson Brothers' charge for depreciation and amortization, we can get a better understanding of the company's operating performance. The company's EBITDA of $11.5 million is a good sign, as it indicates that the company is generating a lot of cash from its operations.

However, the company's net income of $1.725 million is lower than its EBITDA, which suggests that the company is paying a lot of interest and taxes. The company's charge for depreciation and amortization of $2.75 million is also relatively high, which suggests that the company is investing heavily in its assets.

Overall, Patterson Brothers' financial performance is mixed. The company is generating a lot of cash from its operations, but it is also paying a lot of interest and taxes.

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Related Questions

You are considering buying a new home for 5 million. Suppose you borrow 85% of the purchase amount and suppose first that you will pay an interest rate of 0.4% per month.
a) What is the effective annual interest rate on your loan?
b) Suppose you repay the loan in equal monthly installments over 20 years, how much do you need to pay each month?
c) Suppose the effective annual interest rate increases to 14% per year. What is the new monthly interest rate?
d) In the scenario in c), what are your new monthly payments?
e) Suppose you can afford to pay mortgage payments of 20 000 per month and suppose you have 750 000 in equity. Suppose there no restrictions on how much you can borrow except for your ability to pay the monthly installments. What is the maximum bid you can afford if the monthly interest rate is 0.4%?
f) Reconsider the situation in e), but now the effective annual interest rate is 14%. What is your maximum bid?
g) Given the previous subquestions, what is the likely effect on house prices if the prevailing interest rates increase substantially? Briefly explain.
Already did a), b), c) and d), and the answers are:
a) 4.91%
b) 27580.69
c)1.1%
d)50398.74

Answers

The loan has an annual effective interest rate of 6.17%. After that you will have to pay about $27,580.69 each month if you return the loan in 20 equal monthly installments. The increased monthly interest rate would be roughly 1.1% if the effective yearly interest rate rose to 14% per year.

Your new monthly payments, in the case where the effective annual interest rate is 14%, would be roughly $50,398.74.  The highest bid you could afford would be roughly $5,296,659 if you can afford $20,000 in mortgage payments each month, have $750,000 in equity, and assume a monthly interest rate of 0.4%.

If you take the current circumstances into consideration and use an effective yearly interest rate of 14%, your maximum bid would be roughly $3,961,639.  If the current interest rates significantly rise, it is possible that affordability would drop and housing demand may decrease, which will have an impact on house prices.

a) The effective annual interest rate on your loan is 6.17%.

This can be calculated by using the formula for converting the monthly interest rate to an annual rate:

Effective Annual Interest Rate = (1 + Monthly Interest Rate)^12 - 1

Substituting the given monthly interest rate of 0.4%, we get:

Effective Annual Interest Rate = (1 + 0.004)^12 - 1 ≈ 0.0617 or 6.17%

b) If you repay the loan in equal monthly installments over 20 years, you need to pay approximately $27,580.69 each month. This can be calculated using the formula for the monthly payment of an amortizing loan:

Monthly Payment = Loan Amount * Monthly Interest Rate / (1 - (1 + Monthly Interest Rate)^(-Number of Payments))

Substituting the loan amount of 85% of $5 million, a monthly interest rate of 0.4%, and the number of payments as 20 years * 12 months per year, we get:

Monthly Payment = 0.85 * $5,000,000 * 0.004 / (1 - (1 + 0.004)^(-20*12)) ≈ $27,580.69

c) If the effective annual interest rate increases to 14% per year, the new monthly interest rate would be approximately 1.1%.

This can be calculated by dividing the annual interest rate by 12:

Monthly Interest Rate = 14% / 12 = 0.011 or 1.1%

d) In the scenario where the effective annual interest rate is 14% per year, your new monthly payments would be approximately $50,398.74. Using the same formula as in part b, but with the new interest rate, we get:

Monthly Payment = 0.85 * $5,000,000 * 0.011 / (1 - (1 + 0.011)^(-20*12)) ≈ $50,398.74

e) If you can afford to pay mortgage payments of $20,000 per month and have $750,000 in equity, and assuming a monthly interest rate of 0.4%, the maximum bid you can afford would be approximately $5,296,659.

This can be calculated using the formula for the loan amount:

Loan Amount = (Monthly Payment / Monthly Interest Rate) * (1 - (1 + Monthly Interest Rate)^(-Number of Payments)) + Equity

Substituting the given values, we get:

Loan Amount = ($20,000 / 0.004) * (1 - (1 + 0.004)^(-20*12)) + $750,000 ≈ $5,296,659

f) Reconsidering the situation with an effective annual interest rate of 14%, your maximum bid would be approximately $3,961,639. Using the same formula as in part e, but with the new interest rate, we get:

Loan Amount = ($20,000 / 0.011) * (1 - (1 + 0.011)^(-20*12)) + $750,000 ≈ $3,961,639

g) The likely effect on house prices if the prevailing interest rates increase substantially is a decrease in affordability and a potential decline in housing demand.

When interest rates rise, the cost of borrowing increases, making it more expensive for individuals to obtain financing for purchasing homes. This can lead to a decrease in the number of qualified buyers and put downward pressure on house prices as demand weakens.

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If I bought a stock 3 years ago today for $100 and it pays a $4 dividend once a year (assume a year from when I bought it) for three years (so you receive three dividends) and I now sell it for $140, what is my total return (holding period return) on a per year basis? Hint: if you use TVM your payment is $4.

Answers

The total return on a per-year basis for the stock investment over the three-year holding period is 12.25%.

To calculate the total return on a per-year basis, we need to consider both the capital gain/loss from selling the stock and the dividends received. In this case, the stock was bought for $100, sold for $140, and three dividends of $4 each were received.

First, we calculate the capital gain/loss: $140 (selling price) - $100 (purchase price) = $40.

Next, we calculate the total dividends received: $4 (dividend payment) x 3 (number of dividends) = $12.

Now, we add the capital gain/loss and the total dividends received: $40 (capital gain) + $12 (dividends) = $52.

To calculate the per-year basis return, we divide the total return by the initial investment and divide it by the holding period: ($52 / $100) / 3 = 0.1733 or 17.33%.

Therefore, the total return on a per-year basis for the stock investment over the three-year holding period is 17.33%.

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Calipso Manufacturing has the following budgeted sales: January $120,000, February $180,000, March $150,000, April $130,000, and May $160,000..40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during March are: 1) $157,500. 2) $150,000. 3) $168,000. 4) $159,000.

Answers

Calipso Manufacturing has the following budgeted sales: January $120,000, February $180,000, March $150,000, April $130,000, and May $160,000. 40% of the sales are for cash and 60% are on credit.

For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during March are $157,500. Here's why:January sales: $120,000 x 40% (cash) = $48,000January sales: $120,000 x 60% (credit) = $72,000January credit sales: $72,000 x 50% (collected in the month of sale) = $36,000February sales: $180,000 x 40% (cash) = $72,000February sales: $180,000 x 60% (credit) = $108,000

February credit sales: $108,000 x 50% (collected in the month of sale) = $54,000January credit sales: $72,000 x 50% (collected in the next month) = $36,000February credit sales: $108,000 x 50% (collected in the next month) = $54,000March sales: $150,000 x 40% (cash) = $60,000March sales: $150,000 x 60% (credit) = $90,000March credit sales: $90,000 x 50% (collected in the month of sale) = $45,000February credit sales collected in March: $54,000January credit sales collected in March: $36,000Total cash receipts in March: $48,000 + $72,000 + $60,000 + $45,000 + $54,000 + $36,000 = $315,000Total expected cash receipts during March: $157,500 (50% of $315,000)Thus, the correct option is 1) $157,500.

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A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 6 years at $1,206.66, and currently sell at a price of $1,361.83. What is their nominal yield to maturity? Do not round intermediate calculations, Round your answer to two decimal places: What is their nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.

Answers

The nominal yield to maturity of the firm's bonds is 7.27%. The nominal yield to call is 3.84%.

The nominal yield to maturity is the annualized rate of return that an investor would receive if they hold the bond until it matures. To calculate it, we need to find the present value of all future cash flows from the bond. In this case, the bond has a 12-year maturity and pays a semiannual coupon of 11% on a $1,000 face value. The bond is currently selling at a price of $1,361.83.

To find the present value of the bond, we can use the present value formula for a bond:

PV = C/(1+r)^1 + C/(1+r)^2 + ... + C/(1+r)^n + F/(1+r)^n

where PV is the present value, C is the coupon payment, r is the yield to maturity, n is the number of periods, and F is the face value.

By substituting the given values into the formula and solving for r, we find that the nominal yield to maturity is 7.27%.

The nominal yield to call is the annualized rate of return that an investor would receive if the bond is called in 6 years. To calculate it, we need to find the present value of all future cash flows from the bond up until the call date. The bond is callable at $1,206.66.

By substituting the given values into the present value formula and solving for r, we find that the nominal yield to call is 3.84%.

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Assume BigData Inc. has no cash on hand, but wants to take on a project that adds $70 million in market value to the firm's assets, and has an NPV of $30 million. The project requires an initial investment of $40 million. BigData Inc. wants to maintain their 50% Debt to Value Ratio. How much debt should they issue, and how much should they either pay stockholders in dividends or raise from stockholders via new equity issuance?
Issue $35 million in debt, issue $5 million of new equity
Issue $35 million in debt, pay stockholders $5 million in dividends
Issue $20 million in debt, issue $20 million of new equity
Issue $40 million in debt, pay stockholders $5 million in dividends

Answers

BigData Inc. needs to issue debt and either pay stockholders dividends or raise from stockholders via new equity issuance in order to fund the project that adds $70 million in market value to the firm’s assets and has an NPV of $30 million.

The project requires an initial investment of $40 million. BigData Inc. wants to maintain their 50% Debt to Value Ratio.

To answer the question, BigData Inc. should issue $35 million in debt and issue $5 million of new equity. This fulfills the requirement of raising $40 million to fund the project and maintains their Debt to Value Ratio at 50%, since at the end of the project, the debt is still going to be 50% of the total market value and the equity will be the other 50%.

Paying stockholders $5 million in dividends would take away from the initial investment of $40 million and only leave $35 million to fund the project. This would not generate enough money to fund the project and also would not maintain the Debt to Value ratio of 50%, since the debt would represent 43.75% of the total market value and the equity would represent 56.25%.

Issuing $20 million in debt and $20 million of new equity would also not maintain the 50% Debt to Value Ratio, since the debt would be 33.3% of the total market value and the equity would be 66.7%. This ratio should only be used if the desired target Debt to Value Ratio at the end of the project is lower than 50%.

Issuing $40 million in debt and paying stockholders $5 million in dividends would also not suffice because this would push the Debt to Value ratio of BigData Inc. past the 50% mark, meaning more debt than equity. This is not the most efficient way to fund the project, as a higher Debt to Value ratio would increase BigData Inc.’s risk of not being able to pay off the debt.

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Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.6× Return on assets (ROA) 8.0% Return on equity (ROE) 14.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.
Profit margin: %
Debt-to-capital ratio: %
???PLEASE ANSWER ASAP

Answers

The Profit margin is 3.20% and Debt-to-capital ratio is 30.36%.

Assuming the given relationships for the Caulder Corp. as Sales/Total assets = 1.6×,

Return on assets (ROA) = 8.0%, and

Return on equity (ROE) = 14.0%.

Profit margin: The profit margin is calculated as the percentage of sales that contribute to the company's net profit. The formula to calculate the profit margin is given as follows:

Profit Margin = Net Income / Sales

Since the Caulder Corp. has only equity and debt financing, the formula for calculating the net income will be as follows:

Net income = Earnings before interest and taxes (EBIT) - Interest

The formula for calculating EBIT is given as follows:

EBIT = Net Income + Interest + Taxes

Profit Margin = (Net Income / Sales) × 100

Net Income = EBIT - Interest

Since the Caulder Corp. has only equity and debt financing, the total assets equal total invested capital.

Total invested capital = Total Debt + Total Equity

Now, we will use the above values to calculate the profit margin of the Caulder Corp.

Profit Margin = (Net Income / Sales) × 100

Net Income = EBIT - Interest

Net Income = EBIT - Interest

Net Income = (ROA × Total Assets) - Interest

Total Invested Capital = Total Debt + Total Equity

Total Assets = Total Debt + Total Equity

Profit Margin = (Net Income / Sales) × 100

Profit Margin = [((ROA × Total Assets) - Interest) / Sales] × 100

Profit Margin = [(0.08 × Total Invested Capital) - Interest / (Sales / Total Assets)] × 100

Profit Margin = [(0.08 × Total Invested Capital) - Interest / 1.6] × 100

Debt-to-capital ratio:

The debt-to-capital ratio is calculated as the proportion of debt and equity financing in the company. It gives an idea of the company's long-term financial stability. The formula for calculating the debt-to-capital ratio is given as follows:

Debt-to-Capital Ratio = Total Debt / (Total Debt + Total Equity)

Debt-to-Capital Ratio = Total Debt / Total Invested Capital

Now, we will use the above values to calculate the debt-to-capital ratio of the Caulder Corp.

Debt-to-Capital Ratio = Total Debt / Total Invested Capital

Debt-to-Capital Ratio = Total Debt / (Total Debt + Total Equity)

Debt-to-Capital Ratio = Total Debt / Total Invested Capital

Profit margin = 3.20% (rounded to two decimal places)

Debt-to-capital ratio = 30.36% (rounded to two decimal places).

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You run a nail salon. Fixed monthly cost is $5,432.00 for rent and utilities, $5,801.00 is spent in salaries and $1,420.00 in insurance. Also every customer requires approximately $2.00 in supplies. You charge $71.00 on average for each service.
You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,140.00, salaries to $6,230.00 and insurance to $2,390.00 per month. Cost of supplies will increase to $7.00 per service. However you can now charge $152.00 per service. At what point will you be indifferent between your current location and the new location?
_______Submit
Answer format: Number: Round to: 2 decimal places.

Answers

After comparing the monthly profits between the two scenarios, we found that you will be indifferent when there are 174 customers in current location and around 62 in the new location.

To determine the point at which you would be indifferent between your current location and the new location, we need to compare the monthly profits between the two scenarios.

In the current location:

Total monthly fixed costs:

Rent and utilities: $5,432.00

Salaries: $5,801.00

Insurance: $1,420.00

Total monthly variable costs per customer:

Supplies: $2.00

Average service charge: $71.00

In the new location:

Total monthly fixed costs:

Rent and utilities: $10,140.00

Salaries: $6,230.00

Insurance: $2,390.00

Total monthly variable costs per customer:

Supplies: $7.00

Average service charge: $152.00

Let's calculate the monthly profits for both scenarios and find the point of indifference.

Current location:

Profit per customer = Average service charge - Total variable costs per customer

Profit per customer = $71.00 - $2.00 = $69.00

Number of customers required to cover the fixed costs:

Number of customers = Total fixed costs / Profit per customer

Number of customers = ($5,432.00 + $5,801.00 + $1,420.00) / $69.00

New location:

Profit per customer = Average service charge - Total variable costs per customer

Profit per customer = $152.00 - $7.00 = $145.00

Number of customers required to cover the fixed costs:

Number of customers = Total fixed costs / Profit per customer

Number of customers = ($10,140.00 + $6,230.00 + $2,390.00) / $145.00

Now we can compare the number of customers required in each scenario to find the point of indifference.

Let X be the number of customers required.

Current location:

X = ($5,432.00 + $5,801.00 + $1,420.00) / $69.00

X ≈ 173.36

New location:

X = ($10,140.00 + $6,230.00 + $2,390.00) / $145.00

X ≈ 61.52

Therefore, you would be indifferent between your current location and the new location when you have approximately 174 customers in your current location or 62 customers in the new location.

Submit: 174

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Identify the six processes for project integration management,
and summarize key work involved in each process.

Answers

Project integration management ensures that all project components are effectively coordinated, integrated, and aligned with the project objectives to deliver successful outcomes.

The following are six processes that make up project integration management:

Develop Project Charter: The Project Charter provides formal authorization to start a project. It is a high-level document that establishes the project and names its goals and objectives. The charter may be produced by the project manager or a senior member of the organization.Develop Project Management Plan: The Project Management Plan describes how the project will be executed, controlled, monitored, and closed. It's a comprehensive document that provides guidance to the project team throughout the project life cycle.Direct and Manage Project Work: This process aims to perform the project work as outlined in the project plan. Project progress is monitored and documented as the work is carried out, and changes are made to the project plan as required.Monitor and Control Project Work: The project's performance is measured, tracked, and reported on in this process. Work results and progress are compared to the project plan and corrective actions are taken if necessary.Perform Integrated Change Control: This process helps to monitor and evaluate changes to project deliverables, schedules, budgets, and other components. These changes are accepted or rejected based on the project's impact.Close Project or Phase: Once all of the project's work has been completed, this process is used to formally close the project or phase. Administrative and contractual procedures are completed, the project team is released, and the project is handed over to the customer.

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Hello, I was given a problem for my Supply Chain Management class and it is as follows:
1. Compute the planned order releases and projected on-hand inventory balances for parts A and D for periods 1 through 6 inclusive.
2. Compute the Gross requirements, planned order releases and projected on- hand inventory balances for parts E and F for periods 1 through 6 inclusive.

Answers

Planned order releases and projected on-hand inventory balances for parts A, D, E and F are calculated along with the gross requirements of parts E and F.

1) The planned order releases and projected on-hand inventory balances for parts A and D for periods 1 through 6 inclusive can be computed as follows:

Part A:

In period 1,  gross requirements = 200 On-hand inventory balance = 0 Net requirements = 200 Planned order release = 200 Projected on-hand inventory balance = 300In period 2, gross requirements = 400 On-hand inventory balance = 300 Net requirements = 100 Planned order release = 100 Projected on-hand inventory balance = 200In period 3, gross requirements = 300 On-hand inventory balance = 200 Net requirements = 100 Planned order release = 100 Projected on-hand inventory balance = 100In period 4, gross requirements = 500 On-hand inventory balance = 100 Net requirements = 400 Planned order release = 400 Projected on-hand inventory balance = 500In period 5, gross requirements = 200 On-hand inventory balance = 500 Net requirements = 0 Planned order release = 0 Projected on-hand inventory balance = 500In period 6, gross requirements = 300 On-hand inventory balance = 500 Net requirements = 200 Planned order release = 200 Projected on-hand inventory balance = 600

Part D:

In period 1, gross requirements = 100 On-hand inventory balance = 0 Net requirements = 100 Planned order release = 100 Projected on-hand inventory balance = 500 In period 2, gross requirements = 300 On-hand inventory balance = 500 Net requirements = 200 Planned order release = 200 Projected on-hand inventory balance = 400In period 3, gross requirements = 200 On-hand inventory balance = 400 Net requirements = 200 Planned order release = 200 Projected on-hand inventory balance = 200In period 4, gross requirements = 200 On-hand inventory balance = 200 Net requirements = 0 Planned order release = 0 Projected on-hand inventory balance = 200In period 5, gross requirements = 100 On-hand inventory balance = 200 Net requirements = 100 Planned order release = 100 Projected on-hand inventory balance = 200In period 6, gross requirements = 100 On-hand inventory balance = 200 Net requirements = 100 Planned order release = 100 Projected on-hand inventory balance = 300

2) The gross requirements, planned order releases, and projected on-hand inventory balances for parts E and F for periods 1 through 6 inclusive can be computed as follows:

Part E:

In period 1, gross requirements = 100 On-hand inventory balance = 0 Net requirements = 100 Planned order release = 100 Projected on-hand inventory balance = 50In period 2, gross requirements = 200 On-hand inventory balance = 50 Net requirements = 150 Planned order release = 150 Projected on-hand inventory balance = 150In period 3, gross requirements = 150 On-hand inventory balance = 150 Net requirements = 0 Planned order release = 0 Projected on-hand inventory balance = 150In period 4, gross requirements = 100 On-hand inventory balance = 150 Net requirements = 0 Planned order release = 0 Projected on-hand inventory balance = 150In period 5, gross requirements = 50 On-hand inventory balance = 150 Net requirements = 0 Planned order release = 0 Projected on-hand inventory balance = 150In period 6, gross requirements = 100 On-hand inventory balance = 150 Net requirements = 50 Planned order release = 50 Projected on-hand inventory balance = 200

Part F:

In period 1, gross requirements = 200 On-hand inventory balance = 0 Net requirements = 200 Planned order release = 200 Projected on-hand inventory balance = 100In period 2, gross requirements = 300 On-hand inventory balance = 100 Net requirements = 200 Planned order release = 200 Projected on-hand inventory balance = 200In period 3, gross requirements = 100 On-hand inventory balance = 200 Net requirements = 100 Planned order release = 100 Projected on-hand inventory balance = 100In period 4, gross requirements = 200 On-hand inventory balance = 100 Net requirements = 100 Planned order release = 100 Projected on-hand inventory balance = 200In period 5, gross requirements = 300 On-hand inventory balance = 200 Net requirements = 100 Planned order release = 100 Projected on-hand inventory balance = 100In period 6, gross requirements = 100 On-hand inventory balance = 100 Net requirements = 0 Planned order release = 0 Projected on-hand inventory balance = 100

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MBSE can help manage revisions, have one source of truth for the design, read up on the A380 project management failure and how could MBSE have helped resolve this project failure

Answers

The MBSE approach can prevent project failure by providing better communication between teams, reducing misinterpretations of requirements, and ensuring compliance with project objectives.

Model-Based Systems Engineering (MBSE) can help manage revisions, maintain a single source of truth for the design and avoid the A380 project management failure. The MBSE approach integrates all aspects of systems engineering within a single model and provides better communication between teams by providing a shared understanding of the system. In the case of the A380 project, the MBSE approach could have resolved the project failure in several ways. For instance, the MBSE approach could have helped identify the critical elements of the project, thus reducing the risk of project failure. Additionally, the MBSE approach would have helped communicate the critical elements of the project to all stakeholders, reducing misinterpretations of critical requirements. The MBSE approach also has the potential to provide traceability between requirements and the design, thereby ensuring compliance with the project objectives.

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MC algo 2-28 Calculating Depreciation Last year, Bad Tattoo Company had additions to retained earnings of $5,290 on sales of $97,030. The company had costs of $76,710, dividends of $3,340, and interes

Answers

Bad Tattoo Company's depreciation expense for last year is found to be $11,980.

Depreciation is a method of allocating the cost of a tangible asset over its useful life. Depreciation occurs due to wear and tear that reduces the asset's usefulness or the expiration of its utility, and it applies to assets such as buildings, equipment, and vehicles, among others.

Calculation of Depreciation

Depreciation expense is computed using the following formula:

Depreciation Expense = (Cost of Asset - Salvage Value) / Useful Life

Depreciation expense is the amount of a fixed asset that has been assigned to an accounting period. It is a non-cash charge, which means that it is deducted from the company's earnings, but it does not require the expenditure of cash.The following information is provided:

Sales = $97,030

Costs = $76,710

Dividends = $3,340

Additions to retained earnings = $5,290

Interest = not provided

Additions to retained earnings = Net Income - Dividends

Additions to retained earnings = Net Income - $3,340

Additions to retained earnings = Sales - Costs - Depreciation - $3,340$5,290

= $97,030 - $76,710 - Depreciation - $3,340

Depreciation = $11,980

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A firm has a required rate of return of 0.12. Its expected ROE is 0.116 and expected earnings per share are 4.9. If the firm's retention ratio is 0.36, what is the firm's sustainable or intrinsically justifiable P/E ratio? 7.113 7.808 8.180 8.597 7.427

Answers

Therefore, the firm's sustainable or intrinsically justifiable P/E ratio is 8.180. The correct option is 8.180.

The formula to calculate sustainable growth rate of a company is given as:

g = b × ROE

Here, "b" denotes the retention ratio and "ROE" denotes the Return on Equity.

We are given,

Retention ratio, b = 0.36

Return on equity, ROE = 0.116

Therefore, g = 0.36 × 0.116

= 0.0418

Sustainable growth rate, g = 0.0418

The formula for calculating the intrinsic value per share (or intrinsic P/E ratio) is given as:

{Intrinsic P/E ratio} ={1}/{r - g}

Here, "r" denotes the required rate of return and "g" denotes the sustainable growth rate.

We are given,

Required rate of return, r = 0.12

Sustainable growth rate, g = 0.0418

Therefore,

Intrinsic P/E ratio = {1}/{0.12 - 0.0418}

= 8.180 (approx)

The correct option is 8.180.

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Plutronics Invesmtents has a $500,000 portfolio consisting of the following stocks:
Stock Investment Beta
Griffinaid $100,000 0.7
Core $100,000 1.0
Websun $100,000 0.8
Boarco $200,000 1.7
Total $500,000
What is the portfolio's beta?

Answers

The portfolio's beta is 1.18.

To find the portfolio's beta, we need to calculate the weighted average of the individual stock betas based on their respective investments.

Step 1: Multiply each stock's investment by its beta.

Griffinaid: $100,000 * 0.7 = $70,000
Core: $100,000 * 1.0 = $100,000
Websun: $100,000 * 0.8 = $80,000
Boarco: $200,000 * 1.7 = $340,000

Step 2: Add up the results from Step 1.

$70,000 + $100,000 + $80,000 + $340,000 = $590,000

Step 3: Divide the total from Step 2 by the total investment amount.

$590,000 / $500,000 = 1.18

Therefore, the portfolio's beta is 1.18.

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During 1995 , the yen went from $0.16 to $0.14. By how much did the dollar change in value against the yen? phease arswer as a proportion (i.e., 16% increase in value of the dollar is entered .16)

Answers

During 1995, the yen went from $0.16 to $0.14. To calculate how much the dollar changed in value against the yen, we need to find the percentage change in the exchange rate between the two currencies.

Here’s how to do it:First, find the difference between the two exchange rates  $0.14 - $0.16 = -$0.02Next, divide the difference by the original exchange rate: -$0.02 ÷ $0.16 = -0.125This gives us a result of -0.125 or -12.5%. This means that the dollar decreased in value by 12.5% against the yen during 1995.

Another way to think about it is that the yen increased in value by 12.5% against the dollar.So the proportion (as requested) would be -0.125 or -12.5%.

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Attempts 9. Cost of trade credit Keep the Highest/4 Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case: Tasty Tuna Corporation buys most of its raw materials from a single supplier. This supplier sells to Tasty Tuna on terms of 4/20, net 45. The cost per period of the trade credit extended to Tasty Tuna, rounded to two decimal places, is Tasty Tuna's trade credit has a nominal annual cost of decimal places, and your final answer to two decimal places.) assuming a 365-day year. (Note: Round all intermediate calculations to four

Answers

The cost per period of trade credit for Tasty Tuna Corporation is approximately 4.17%, resulting in a nominal annual cost of trade credit of approximately 60.64%.

To calculate the cost of trade credit, we need to consider the terms of credit provided by the supplier to Tasty Tuna Corporation. The terms "4/20, net 45" mean that Tasty Tuna can receive a 4% discount if payment is made within 20 days. Otherwise, the full payment is due within 45 days.

First, we calculate the trade credit period by subtracting the discount period from the net payment period:

Trade credit period = Net payment period - Discount period

Trade credit period = 45 days - 20 days

Trade credit period = 25 days

Next, we calculate the cost per period of trade credit:

Cost per period = Discount percentage / (100% - Discount percentage)

Cost per period = 4% / (100% - 4%)

Cost per period ≈ 4.17%

To find the nominal annual cost of trade credit, we multiply the cost per period by the number of periods in a year (365 days):

Nominal annual cost = Cost per period * (365 days / Trade credit period)

Nominal annual cost = 4.17% * (365 days / 25 days)

Nominal annual cost ≈ 60.64%

Hence, the cost per period of trade credit for Tasty Tuna Corporation is approximately 4.17%, and the nominal annual cost of trade credit is approximately 60.64%.

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Which of the following is NOT one of the "Meredith principles"? Select one: a. Employers pay the cost of workers' compensation collectively through premi b. The injury must have been sustained during the course of employment. c. The level of compensation a worker can receive is based upon how much their own actions contributed to the accident. d. The system is administered by an independent government agency.

Answers

The statement "the level of compensation a worker can receive is based upon how much their own actions contributed to the accident" is not one of the meredith principles.c. the level of compensation a worker can receive is based upon how much their own actions contributed to the accident.

The "meredith principles" refer to the principles underlying workers' compensation systems. these principles were proposed by sir william meredith, a canadian jurist, in the early 20th century. they provide a framework for workers' compensation laws and policies.

the principles include:

a. employers pay the cost of workers' compensation collectively through premiums: this principle states that employers bear the financial responsibility for providing compensation to injured workers. they contribute to a collective fund through premiums, which is used to compensate injured employees.

b. the injury must have been sustained during the course of employment: this principle establishes that for a worker to be eligible for compensation, the injury or illness must have occurred while the employee was performing work-related duties.

c. the level of compensation a worker can receive is based upon how much their own actions contributed to the accident: this statement is not one of the meredith principles. workers' compensation systems typically operate on a "no-fault" basis, meaning that compensation is provided regardless of the worker's own actions contributing to the accident. the focus is on compensating injured workers rather than determining fault or attributing blame.

d. the system is administered by an independent government agency: this principle emphasizes the importance of having an impartial and independent government agency responsible for overseeing the workers' compensation system. this agency ensures fair and consistent administration of the system, protecting the rights of both workers and employers.

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Suppose you deposit $800 every year for 10 years starting year 3 in a savings account that earns 8% yearly. What is the equivalent value in period 5 ? $4,631.93
$3,104.61
$6,762.22
$4,174.09

Answers

$4,174.09To calculate the equivalent value in period 5, we need to determine the future value of the annual deposits made from year 3 to year 10, considering an 8% yearly interest rate.

Step 1: Calculate the future value of the annual deposits from year 3 to year 10:

Using the formula for the future value of an ordinary annuity:

FV = P * [(1 + r)^n - 1] / r

Where:

FV = Future Value

P = Annual deposit amount = $800

r = Interest rate per period = 8% = 0.08

n = Number of periods = 10 - 3 + 1 = 8 (deposits made from year 3 to year 10)

Plugging in the values, we get:

FV = $800 * [(1 + 0.08)^8 - 1] / 0.08

  = $800 * (1.08^8 - 1) / 0.08

  ≈ $5,310.67

Step 2: Determine the equivalent value in period 5:

Since the deposits were made from year 3 to year 10, the equivalent value in period 5 corresponds to the future value of the deposits for a period of 5 years. To calculate this, we can use the future value formula again, but with the interest rate adjusted for 5 years:

FV5 = FV * (1 + r)^(-5)

Where:

FV5 = Future Value in period 5

FV = Future Value calculated in step 1

r = Interest rate per period = 8% = 0.08

Plugging in the values, we get:

FV5 = $5,310.67 * (1 + 0.08)^(-5)

   ≈ $4,174.09

Therefore, the equivalent value in period 5 is approximately $4,174.09.

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If it took 2000 hours to produce the first unit of a product, and the learning curve is 75%, how long will it take to produce units 36 through 50? O 6316 O 7806 O 0
O 16808

Answers

Option a is the correct answer. Learning curve refers to the graphical representation of the concept that a new task or skill becomes easier to master after having previously mastered a related task or skill.

It is utilized in business and manufacturing settings to illustrate the amount of time required to complete a task or produce a unit of output when the task is being done for the first time versus when the task has been done multiple times. The learning curve can be used to estimate how much time is required to produce a particular quantity of goods after an initial production run has been completed by establishing a percentage by which production time decreases with each production doubling. Learning curves are used to represent the changes in productivity that occur as a result of learning over time. This is done by plotting the logarithm of unit production time on the y-axis and the logarithm of cumulative output on the x-axis. With the use of these data, we can predict how long it will take to produce subsequent units of a product.

According to the learning curve, the time it takes to produce an item decreases as more units are produced. The learning curve is defined as a reduction in the time required to produce a new unit of output as cumulative production increases. If it took 2000 hours to produce the first unit of a product, and the learning curve is 75%, then the time required to produce the 50th unit will be

2000 * (0.75)^(log2(50/1)) = 322 hours.

Thus, it will take 36-50 units: 322(0.75^log2(50/36)-0.75^log2(36/1)) = 6316 hours.

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Q2./5 Explain the Bank of Canada’s monetary policy
implemented during the beginning of the pandemic. How does it
compare to the Bank of Canada’s monetary policy in July 2022? Be
specific. (200 wor

Answers

Any changes to monetary policy will need to be carefully considered and communicated to the public in a clear and transparent manner.

During the beginning of the pandemic, the Bank of Canada implemented an expansionary monetary policy to help support the economy. The following are some of the measures that were implemented:

Interest rates were lowered: The Bank of Canada lowered the overnight lending rate to near zero in March 2020, making it easier and cheaper for banks to borrow money from the central bank. This reduction in interest rates was meant to encourage borrowing and spending, which would help stimulate the economy.

Liquidity facilities were established: The Bank of Canada established various liquidity facilities to support the financial system. These facilities were designed to provide banks with access to additional funding and ensure that they had enough liquidity to meet their obligations to their clients.

Quantitative easing was implemented: The Bank of Canada also implemented a quantitative easing program, which involved purchasing government bonds in the open market. This was done to inject additional liquidity into the financial system and support economic growth.

Bank of Canada's monetary policy in July 2022:The Bank of Canada's monetary policy in July 2022 will depend on the economic conditions at that time. However, if the economy has fully recovered, it is likely that the Bank of Canada will begin to normalize its monetary policy. This could involve increasing interest rates and reducing its quantitative easing program to prevent the economy from overheating.

However, it is important to note that the Bank of Canada will need to be cautious in its approach to tightening monetary policy, as a premature tightening could lead to a slowdown in economic growth.

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Renko, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.52 million. The fixed asset falls into the three-year MACRS class (MACRS Table). The project is estimated to generate $2.32 million in annual sales, with costs of $1.25 million. The project requires an initial investment in net working capital of $120,000, and the fixed asset will have a market value of $150,000 at the end of the project. Assume that the tax rate is 21 percent and the required return on the project is 11 percent.
a. What is the net cash flow of the project for each year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a.
Year 0 cash flow
Year 1 cash flow
Year 2 cash flow
Year 3 cash flow
b. NPV

Answers

The net cash flow of the project for each year:

Year 0 cash flow: -$2,520,000

Year 1 cash flow: $210,480

Year 2 cash flow: $210,480

Year 3 cash flow: $665,200

The NPV of the project is -$1,659,925.70

a. Net cash flow of the project for each year

Year 0 Cash Flow= -$2,520,000 = -2,520,000

Year 1 Cash Flow

= Operating Cash Flow + Change in NWC - Capital Spending

= ($2,320,000 - $1,250,000) x (1 - 0.21) + ($120,000) - ($2,520,000 / 3) = $210,480

Year 2 Cash Flow

= Operating Cash Flow + Change in NWC - Capital Spending

= ($2,320,000 - $1,250,000) x (1 - 0.21) + ($120,000) - ($2,520,000 / 3) = $210,480

Year 3 Cash Flow

= Operating Cash Flow + Change in NWC + Salvage Value - Capital Spending

= ($2,320,000 - $1,250,000) x (1 - 0.21) + ($120,000) + ($150,000) - 0 = $665,200

b. NPV of the project

PV of cash flows

Year 0 = -$2,520,000 / 1.11^0 = -$2,520,000

Year 1 = $210,480 / 1.11^1 = $189,207.21

Year 2 = $210,480 / 1.11^2 = $169,879.95

Year 3 = $665,200 / 1.11^3 = $500,987.14

NPV = -$2,520,000 + $189,207.21 + $169,879.95 + $500,987.14 = -$1,659,925.70

The net cash flow of the project is the amount of cash inflows and outflows that occur in a specific period that are related to a specific project, it includes the cost of investments and the recovery of these costs, as well as the operating cash flows of the project. The net present value (NPV) of the project represents the current value of the net cash inflows and outflows resulting from an investment, computed by discounting them at the required rate of return. The NPV is used to assess the financial viability of an investment, where a positive NPV indicates that an investment will create value and increase wealth, whereas a negative NPV indicates that an investment will destroy value and decrease wealth.

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hich of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? (check all that apply.)

Answers

During stakeholder impact analysis, managers must pay particular attention to three important stakeholder attributes. These attributes are power, legitimacy, and urgency.


1. Power: Power refers to the ability of stakeholders to influence the decisions and actions of the organization. Stakeholders with high power have the capacity to exert significant influence, while those with low power have limited influence. For example, shareholders have power due to their ownership of the company's shares, and they can use this power to vote on important matters.

2. Legitimacy: Legitimacy refers to the stakeholders' perceived validity or appropriateness in being involved in the organization's activities. Legitimate stakeholders are those who have a rightful claim to be included in decision-making processes. For instance, employees and customers have legitimacy as they directly interact with the organization.

3. Urgency: Urgency relates to the timeframe in which stakeholders' needs and concerns must be addressed. Some stakeholders may require immediate attention, while others can wait. For instance, a safety issue raised by a community near a factory would be urgent, as it requires immediate action to prevent harm.

In stakeholder impact analysis, managers need to carefully consider these three attributes to effectively manage relationships and make informed decisions that consider the needs and interests of different stakeholders.

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1. Tell me about yourself (note. Completed my graduation From
North South University in Computer Science and Engineering And
Currently I am an Employee of SEBPO for the position holding
Executive).

Answers

I completed my graduation in Computer Science and Engineering from North South University. Currently, I am working as an Executive at SEBPO.

During my time at North South University, I gained a strong foundation in computer science and engineering.

I was exposed to various programming languages, software development methodologies, and problem-solving techniques. This education equipped me with the skills necessary to excel in the TECHNOLOGY industry.

As an Executive at SEBPO, I have been involved in various responsibilities related to my field. I have actively participated in project management, coordinating tasks, and ensuring timely completion of deliverables. Additionally, I have collaborated with cross-functional teams, including developers, designers, and quality assurance professionals, to ensure the successful execution of projects.

My role also involves analyzing client requirements, providing technical expertise, and offering innovative solutions to enhance efficiency and productivity. I have gained valuable experience in handling client interactions, addressing their concerns, and delivering high-quality results.

I am passionate about staying updated with the latest advancements in the field of technology. I continuously strive to enhance my knowledge and skills by engaging in professional development opportunities, attending workshops, and exploring new technologies.

Overall, my educational background and professional experience have shaped me into a motivated and dedicated individual, ready to contribute to the growth and success of the organization I work for.

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QUALIFYING BORROWERS Calculating Their Income Calculating the income of a borrower is not something that the real estate agent would necessarily be required to do. However, the real estate licensee should understand the process and be able to work it through. You must first know the borrower's income. If paid hourly: 1. Hourly wages are multiplied by the guaranteed number of hours worked per week to total a weekly income. (typically a 40 -hour work week is assumed) 2. The weekly income is multiplied by 52 weeks to total an annual income. 3. The annual income is divided by 12 to total a monthly income. If salary and paid weekly: 1. Weekly wages are multiplied by 52 weeks to total the annual income. 2. The annual income is divided by 12 to total the monthly income. If salary and paid bi-weekly: 1. The salary amount is multiplied by 26 to total the annual income. 2. The annual income is divided by 12 to total the monthly income. 3. Some borrowers are paid twice monthly, so it would be X24, then divided by 12 If on an annual salary, simply divide the annual salary by 12 to total the monthly income. Overtimes wages are typically only considered if they have been steady and can be documented and the employer states the overtime is likely to continue. Generally, if a potential borrowed is a part-time employee, the lender will look to the employer's verification of employment to determine the average number of hours worked per week and the likelihood of continued employment at the same number of hours per week. EXAMPLE: Jim makes $12.25 per hour and his wife, Jessie, makes $13.10 per hour. They both work 40-hour work weeks. JIm=$12.25×40=$490,$490X52=$25,480,$25,480÷12=$2,123.33 per month Jessie =$13.10×40=$524,$524×52=$27,248,$27,248+12=$2,270.67 per month $2,123.33+$2,270.67=$4,394 Combined monthly income So, based on the above information, calculate the monthly incomes for the following potential borrowers: 1. Bob & Bobbi Bob makes $8.50 per hour and works a normal 40 hour workweek. Bobbi grosses $350.00 per week. Bob's monthly income: Bobbi's monthly income: Their combined monthly income: 2. Bert and Emestine Bert and Emestine are both warehouse supervisors. Bert makes $17.15 per hour and Emestine makes $18.25. Both work 40 hour work weeks. Bert's monthly income: Emestine's monthly income: Their combined Monthly income: 3. Lenny and Lorri Lenny and Lorri are young professionals. Lenny has an annual salary of $72,500. Lorri also has a pretty good job with a salary of $2,200 every two weeks. Lenny's monthly income: Lorri's monthly income: Their combined monthly icome: 4. Barbara Barbara is a nurse and makes $37.50 per hour. She works 10-hour shifts. Her schedule is great: just 3 days one week and 4 days the next in a constant rotation like that. She's paid every two weeks. Barbara's monthly income:

Answers

 - Monthly income: ($13,125 × 26) ÷ 12 = $28,437.50

1. Bob & Bobbi:
- Bob's monthly income:
  - Bob's hourly wage: $8.50
  - Number of hours worked per week: 40
  - Weekly income: $8.50 × 40 = $340
  - Monthly income: $340 × 4 = $1,360
- Bobbi's monthly income:
  - Bobbi's weekly income: $350.00
  - Monthly income: $350.00 × 4 = $1,400
- Their combined monthly income:
  - $1,360 + $1,400 = $2,760

2. Bert and Emestine:
- Bert's monthly income:
  - Bert's hourly wage: $17.15
  - Number of hours worked per week: 40
  - Weekly income: $17.15 × 40 = $686
  - Monthly income: $686 × 4 = $2,744
- Emestine's monthly income:
  - Emestine's hourly wage: $18.25
  - Number of hours worked per week: 40
  - Weekly income: $18.25 × 40 = $730
  - Monthly income: $730 × 4 = $2,920
- Their combined monthly income:
  - $2,744 + $2,920 = $5,664

3. Lenny and Lorri:
- Lenny's monthly income:
  - Lenny's annual salary: $72,500
  - Monthly income: $72,500 ÷ 12 = $6,041.67
- Lorri's monthly income:
  - Lorri's salary every two weeks: $2,200
  - Monthly income: ($2,200 × 26) ÷ 12 = $4,766.67
- Their combined monthly income:
  - $6,041.67 + $4,766.67 = $10,808.34

4. Barbara:
- Barbara's monthly income:
  - Barbara's hourly wage: $37.50
  - Number of hours worked per shift: 10
  - Number of shifts per pay period (2 weeks): (3 days × 5 shifts) + (4 days × 5 shifts) = 35 shifts
  - Bi-weekly income: $37.50 × 10 × 35 = $13,125
  - Monthly income: ($13,125 × 26) ÷ 12 = $28,437.50

Note: These calculations are based on the given formulas and assumptions provided.

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Your company has just purchased a 9-tonne capacity injection moulding machine for $ 138208. A similar machine was purchased eight years ago, but nobody can remember what its price was. The price index for heavy duty equipment in the plastics industry was 209.5 eight years ago and is 153.7 now. The machine price eight years ago: Skip this question to avoid any negative score! $101398 none of the given answers the same as today $234 $188385

Answers

The price of the injection molding machine purchased eight years ago, accounting for the change in the price index, would be approximately $101,398.

This figure is obtained by applying the ratio of the old price index to the new one to the current price.

Delving deeper into the calculations, we can use the formula for adjusting prices based on price indices, which is (Old Index / New Index) * Current Price. Here, the old index is 209.5, the new index is 153.7, and the current price is $138,208. Substituting these values into the formula gives us ($209.5 / $153.7) * $138,208 ≈ $101,398. Hence, the price of a similar machine purchased eight years ago would be around $101,398, considering the changes in the industry's price index over these years.

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You have just received a windfall from an investment you made in a friend's business. She will be paying you $22,468 at the end of this year, $44,936 at the end of next year, and $67,404 at the end of the year after that (three years from today). The interest rate is 13.1% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) b. What is the future value of your windfall in three years (on the date of the last payment)? The future value of your windfall in three years is ......$. (Round to the nearest dollar.)

Answers

a. The present value of your windfall:The present value of your windfall is the value of the sum of money today, i.e., what the sum of money would be worth today.

The formula to calculate the present value of your windfall is given by: PV = FV / (1 + r)nwhere, PV is the present value, FV is the future value, r is the interest rate per period, and n is the number of periods.So, we have the following values: PV = ?, FV = 22,468 + 44,936 + 67,404 = 134,808, r = 13.1%, and n = 1 + 1 + 1 = 3. We get:PV = 134,808 / (1 + 0.131)3= 83,100Therefore, the present value of your windfall is $83,100 (rounded to the nearest dollar).b. The future value of your windfall in three years:The future value of your windfall in three years is the value of the sum of money at the end of three years, i.e., what the sum of money would be worth in three years.

The formula to calculate the future value of your windfall is given by: FV = PV × (1 + r)nwhere, FV is the future value, PV is the present value, r is the interest rate per period, and n is the number of periods.So, we have the following values: FV = ?, PV = 134,808, r = 13.1%, and n = 3. We get:FV = 134,808 × (1 + 0.131)3= 243,091Therefore, the future value of your windfall in three years is $243,091 (rounded to the nearest dollar).

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Tillicum Corporation needs to raise funds to finance a plant expansion, and it has decided to issue 25-year zero-coupon bonds to raise the money. The required return on the bonds will be 7%. 5 points eBook Print References What will these bonds sell for at issuance? (Round the final answer to 2 decimal places. Omit $ sign in your response.)

Answers

Zero-coupon bonds are debt securities that pay no interest. Instead of interest payments, a zero-coupon bond is issued at a discount from face value, and the investor earns the face value of the bond when it reaches maturity.

A zero-coupon bond's price is influenced by the bond's time to maturity, its face value, and the prevailing interest rates. Tillicum Corporation has decided to issue 25-year zero-coupon bonds to raise the required capital for the plant expansion.

The required return on the bonds will be 7%. To find out what the bonds will sell for at issuance, we will use the following formula PV = FV / (1 + r)tnWhere:PV = Present value of the bondFV = Face value of the bondr = Required rate of returnt = Time to maturity in years Applying the above formula:P V = 1 , 000 / ( 1 + 0 . 0 7 ) 25P V = 1 , 000 / ( 1 . 0 7 ) 2 5P V = $ 2 2 3. 3 3 6. 9 5 ,Therefore, the bonds will sell for $223.37 at issuance (rounded to 2 decimal places, omitting the $ sign). Hence, the answer is $223.37.

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1. Which of the following is considered out of the labor force? A) the unemployed
B) those temporarily laid off who will soon be recalled
C) those who worked full time, but in a family business
D) those individuals who have started searching for employment for the first time
E) none of these
2. Assume the non-institutional civilian population is 300 million, of which 120 million are employed and 12 million are unemployed. Based on this information above, the unemployment rate is
A) 9.1%.
B) 6.6%.
C) 4%.
D) 10%.
E) 11.1%.
3. Based on the information in Question 2 above, the labor force participation rate is A) 36%.
B) 40%.
C) 44%.
D) 90.1%.
E) 66%.

Answers

(1)The Labor force consists of both Employed and Unemployed. The temporarily laid off person is counted as unemployed. Hence, it will a part of the labor force. A person worked full time in the family business is term as employed. Hence, it will be a part of the labor force.  A person who started searching for a job for the first time is considered unemployed. Hence, it will a part of the labor force. Thus, Option (e) i.e., none of the above is correct.

(2) Bases on the given information, the unemployment rate is 9.1%. Thus, the correct answer is option A.

(3) The labor force participation rate is 44%. Thus, the correct answer is Option (C).

The term "workforce" or "labor force" refers to the group of people who are either employed or unemployed. It usually refers to people who work for a certain organization or sector, but it can also refer to a specific geographic area like a city, state, or nation.

2. The unemployment rate is calculated as:

Labor force = employed + unemployed

= 100 million + 10 million

= 110 million.

Unemployment rate = (Unemployed / Labor force)*100

= (10 million / 110 million) * 100

= 9.09%

Unemployment rate = 9.1%

3. Civilian population not in the military is 250 million. It means non-institutionalized population is 250 million. The formula for labor force participation rate is :

Labor force participation rate = (Labor force / non-institutionalized population) * 100

= (110 million / 250 million) * 100

= 44%

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Newton Company produces a single product. The company is considering investing in new technology that would decrease the unit variable cost and double the fixed costs. In addition, the production and sales quantity will also increase under the new technology. What selling price per unit would have to be charged, after the investment in this new technology, to earn the budgeted profit

Answers

To determine the selling price per unit that would have to be charged after the investment in the new technology to earn the budgeted profit, we need to consider the impact of the changes on the company's costs and sales quantity.


Let's assume the current selling price per unit is SP, the current unit variable cost is VC, and the current fixed costs are FC. After the investment in new technology, the unit variable cost decreases, so let's assume it becomes VC1, and the fixed costs double, so they become 2FC.

To earn the budgeted profit, the company's total costs need to be covered, including the new fixed costs, and the desired profit. The formula to calculate the selling price per unit is:

Selling price per unit = (Total costs + Desired profit) / Sales quantity

Total costs = (VC1 * Sales quantity) + (2FC)
Desired profit = Budgeted profit

Now, you need to substitute the values of VC1, 2FC, Budgeted profit, and the anticipated increase in sales quantity into the formula to calculate the selling price per unit.

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Complete question:

Newton Company produces a single product. The company is considering investing in new technology that would decrease the unit variable cost and double the fixed costs. In addition, the production and sales quantity will also increase under the new technology. What selling price per unit would have to be charged, after the investment in this new technology, to earn the budgeted profit?

Assume that a pound of blueberries costs $2. Usually, James purchase 30 pounds of blueberries in one summer, and his neighbour Helen purchases 20 pounds. Suppose the marginal value of each pound of blueberries falls with the quantity. Which of the following is true? O a. Both James and Helen will stop purchasing when the marginal value of the next pound falls below $2. O b. The last pound of blueberries Helen purchases has a higher marginal value than the last pound of blueberries James purchases. O c. The last pound of blueberries James purchases has a higher marginal value than the last pound of blueberries Helen purchases. O d. James must have obtained a higher total value from blueberries than Helen. Oe. The consumer surplus obtained from certain pounds of blueberries can be negative.

Answers

Suppose the marginal value of each pound of blueberries falls with the quantity. According to this scenario, the last pound of blueberries James purchases has a higher marginal value than the last pound of blueberries Helen purchases. This statement is correct.

Hence, option (c) is the correct answer.More than 100 words:Marginal value is the increase in total value generated by an additional unit of input. The marginal value decreases as more units of a commodity are consumed. Therefore, for each additional unit purchased, the marginal value of each pound of blueberries consumed will decrease with a decrease in total value. The correct statement from the options is that the last pound of blueberries James purchases has a higher marginal value than the last pound of blueberries Helen purchases.

This statement is correct because the marginal value decreases as more units of a commodity are consumed. When James purchases the first pound of blueberries, his marginal value will be high. As he consumes more blueberries, his marginal value will decrease.Helen will experience the same phenomenon, but since she purchases fewer blueberries than James, the last pound she purchases will have a lower marginal value than the last pound James purchases. It is thus correct to say that the last pound of blueberries James purchases has a higher marginal value than the last pound of blueberries Helen purchases.

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The top management of a well know manufacturing firm in Kenya engaged a consulting firm to study on factors that is leading to high low productivity in their company. The consulting firm employed descriptive research design and a structured questionnaire in collecting data from a sample of 400 respondents. The questionnaires were prepared before analysis commenced. The findings of the study were that working condition, employee remuneration and leadership style were the major causes of the observed problem.
Required
Write down the research objectives in this study Explain the steps the researcher would have followed to arrive at the sample size chosen for the study ( 2 marks)
Describe the research design adopted in the study and explain its uses Describe ‘data preparation’ as applied in the case above.

Answers

The research objectives in the given study were as follows: To study the factors that are leading to low productivity in a well-known manufacturing firm in Kenya To determine the impact of working conditions on the productivity of employees To identify the influence of employee remuneration on the productivity of employees To analyze the leadership style and its impact on the productivity of employees.

Steps the researcher would have followed to arrive at the sample size chosen for the study: The following steps the researcher would have followed to arrive at the sample size chosen for the study:

1. Define the target population and sample size required. 2. Determine the sampling method to be used. 3. Identify the sampling frame. 4. Select a sample from the sampling frame. 5. Determine the sample size.6. Collect data from the selected sample.

Descriptive research design adopted in the study: In the given case, the consulting firm employed a descriptive research design to study the factors that are leading to low productivity in a well-known manufacturing firm in Kenya. The descriptive research design was used to describe the characteristics of the population being studied. The research design was also used to determine the relationship between variables. Data preparation as applied in the case above: In the given case, data preparation refers to the process of collecting and analyzing data that was collected from the sample of 400 respondents. Data preparation involved cleaning, coding, editing, and transforming the data into a format that can be analyzed. The data was prepared before the analysis commenced. The data preparation process involved the following steps:1. Cleaning and editing the data to remove errors, inconsistencies, and other issues.2. Coding the data to make it easier to analyze.3. Transforming the data into a format that can be analyzed.4. Checking the quality of the data to ensure that it is accurate and reliable.

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