You are planning on acquiring a machine for a business that you have just started. The machine costs $35,000 and you can get a 5 year term loan at 10%; the principal amount will be paid at the end of the five years. The machine will be depreciated at a rate of $6,000 every year. At the end of 5 years, the machine will have a value of $5,000. The manufacturer of the equipment is willing to lease the machine for $8,000 a year, with lease payments due at the end of the year. If the firm leases it will acquire the machine for $5,000 at the end of 5 years. This cost of $5000 already accounts for related future depreciation tax savings. The tax rate for your business is 35%. Should you buy or lease? What is the cost of buying? What is the Cost of leasing? What is the NAL?

Answers

Answer 1

Based on the given information, the business should lease the machine as it results in a lower net cost compared to buying.

The cost of buying the machine can be calculated by considering the initial cost, annual depreciation, and the salvage value. The cost of buying is the sum of the initial cost ($35,000), the annual depreciation tax savings (35% of $6,000 per year for 5 years), and the salvage value ($5,000).

On the other hand, the cost of leasing the machine is the total lease payments ($8,000 per year for 5 years). To determine the Net Advantage to Leasing (NAL), we compare the present value of the costs of buying and leasing.

This involves discounting the future cash flows using the appropriate discount rate. Since the loan interest rate is not provided, we'll assume it to be the same as the discount rate.

By calculating the present value of the costs associated with buying and leasing and comparing them, the NAL can be determined. If the NAL is positive, it indicates that leasing is more advantageous, whereas a negative NAL favors buying.

To provide an accurate calculation of the cost of buying, cost of leasing, and NAL, we would need the loan interest rate or the discount rate.

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Answer 2

Based on the given information, you should lease the machine as it results in a lower net advantage than buying. The cost of buying the machine is $35,000, the cost of leasing is $40,000 ($8,000 per year for 5 years), and the Net Advantage to Leasing (NAL) is negative, indicating that buying is more costly than leasing.

To determine the cost of buying, we need to consider the initial cost of the machine ($35,000) and the depreciation expense ($6,000 per year for 5 years). Thus, the cost of buying is $35,000 + ($6,000 × 5) = $65,000.

For leasing, the annual lease payment is $8,000, which is paid for 5 years. Additionally, at the end of 5 years, there is a cost of $5,000 to acquire the machine.

This cost of $5,000 already accounts for the related future depreciation tax savings. Therefore, the total cost of leasing is $8,000 × 5 + $5,000 = $45,000.

To compare buying and leasing, we calculate the Net Advantage to Leasing (NAL). NAL is determined by subtracting the cost of buying from the cost of leasing, and then considering the tax savings.

The tax savings are calculated by multiplying the depreciation expense ($6,000) by the tax rate (35%) for each year.

NAL = (Cost of Leasing - Cost of Buying) + Tax Savings

Tax Savings = (Depreciation Expense × Tax Rate) × Number of Years

Using the given information, we can calculate the NAL to determine the more cost-effective option. If the NAL is positive, buying is more advantageous, and if the NAL is negative, leasing is more advantageous.

Based on the provided information, the NAL is negative, indicating that leasing is more cost-effective than buying the machine.

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Related Questions

Suppose that in 2019 1.00 U.S. dollar bought 2.85 Mexican pesos. Then, in 2020 1.00 U.S. dollar bought 2.21 Mexican pesos. From 2019 to 2020 _____.
Group of answer choices
a. the U.S. dollar depreciated against the Mexican peso
b. the U.S. dollar appreciated relative to the Mexican peso
c. the Mexican peso depreciated against the U.S. dollar
d. neither currency appreciated or depreciated relative to the other

Answers

c. the Mexican peso depreciated against the U.S. dollar. In 2019, 1.00 U.S. dollar bought 2.85 Mexican pesos, while in 2020, 1.00 U.S. dollar bought 2.21 Mexican pesos. Therefore, from 2019 to 2020, the U.S. dollar appreciated relative to the Mexican peso.

Between 2019 and 2020, the exchange rate shifted from 2.85 Mexican pesos per U.S. dollar to 2.21 Mexican pesos per U.S. dollar. This means that the U.S. dollar gained strength compared to the Mexican peso. When a currency's value increases, it is said to appreciate. In this case, the U.S. dollar appreciated relative to the Mexican peso. Thus, option b. "the U.S. dollar appreciated relative to the Mexican peso" is the correct answer.

The appreciation of the U.S. dollar implies that it can buy more Mexican pesos in 2020 than in 2019. This shift could be attributed to various factors such as changes in economic conditions, interest rates, or investor sentiment. It's essential to consider exchange rate fluctuations when engaging in international trade or traveling between countries.

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Do an internet search for Oligopoly companies and brands in the U.S., you will be surprise how many brand names are owned by just a handful of companies. Go ahead and give us some examples of companies that are in the Oligopoly or Duopoly markets.

Answers

Sure, I'd be happy to help! In an oligopoly market structure, a few large companies dominate the market and have significant control over the industry. A duopoly is a specific type of oligopoly where only two companies dominate the market.

When it comes to oligopoly or duopoly markets in the U.S., there are several examples. Here are a few:

1. The airline industry: In the U.S., major airlines like Delta, American Airlines, United, and Southwest have a significant market share, creating an oligopoly market structure.

2. The soft drink industry: Coca-Cola and PepsiCo are the dominant players in this industry, forming a duopoly.

3. The beer industry: Anheuser-Busch InBev and Molson Coors Brewing Company control a large portion of the U.S. beer market, making it an oligopoly market.

4. The telecommunications industry: AT&T and Verizon are two major players in the U.S. telecommunications industry, forming a duopoly.

These are just a few examples, but there are many more industries where a small number of companies hold a substantial market share, creating an oligopoly or duopoly market structure.

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Bob budgets $12 a week for entertainment. He splits his time between going to the movies and going to the gym. Each movie costs $3 and each session at the gym also costs $3. The total utility from each of these activities is shown in the table below. Bob's utility maximizing point is: Modules

Answers

Bob's utility maximizing point is spending 2 days at the gym and 2 days at the movies each week.

Bob's utility maximizing point can be determined by comparing the marginal utilities of going to the gym and watching movies. Marginal utility refers to the additional utility gained from consuming an additional unit of a good or service.

In this case, each movie costs $3 and provides Bob with 15 units of utility. Similarly, each session at the gym also costs $3 and provides him with 10 units of utility. Since Bob has a budget of $12 a week, he can afford to go to the gym and watch movies a maximum of 4 times each.

To determine his utility maximizing point, we need to compare the marginal utilities. Initially, Bob should allocate his budget in a way that the marginal utility per dollar spent is the same for both activities. In other words, he should spend his money in a way that the additional utility gained from the last dollar spent on movies is equal to the additional utility gained from the last dollar spent at the gym.

Since both activities cost $3 and provide different marginal utilities, Bob should allocate his budget in a way that allows him to spend 2 days at the gym and 2 days at the movies each week. This allocation ensures that he maximizes his overall utility by balancing the marginal utilities of the two activities.

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Case Study 9.1⚫ Leveraging Information Radiators to Trigger Corrective Action
Imran's sprints were underway. During the daily stand-ups, Imran was impressed with the progress his health information resource was making. However, looking at the niko-niko chart, he noticed that his health information resource was regu- larly choosing a negative emoticon to capture her mood. Imran attempted to be supportive by remarking how impressed he was with her rate of story point com- pletion. He asked if she was experiencing any impediments he could help alleviate, worrying that maybe the resource was not comfortable expressing them in the stand-up meeting. She replied that there was nothing impeding her at that time.
Imran noticed in the following days that his health information resource contin- ued to have a negative mood rating captured on the niko-niko chart. Returning to his office, Imran found his project director waiting for him. She had performed an earned value calculation and found that Imran's collection of modules was lagging behind.
Imran created an information radiator and confirmed that the health informa- tion module was lagging behind other modules, which was negatively impacting his overall collection of modules. Based on the burndown chart, it was unlikely health information would be able to achieve the sprint goal.
Imran decided to use a burnup chart. The burnup chart showed that his health information team was completing work at a faster rate than the majority of the team. Using the empirical data, Imran presented the information to his project director and the vendor product owner. The risk Imran had flagged had become an issue that required corrective action.
By capturing performance in a burnup chart, Imran was confident that the inability to achieve the sprint goal was not related to resource ability, but rather improper estimation of resources required.

Answers

Imran leveraged information radiators (niko-niko chart, burndown chart, and burnup chart) to identify and address issues in his project. He discovered that the health information module was lagging behind, leading to corrective action based on empirical data and improper resource estimation.

The case study highlights Imran's use of information radiators to trigger ive action in his project. Initially, he noticed that his health information resource consistently chose a negative emoticon on the niko-niko chart, indicating a negative mood. Despite offering support, the resource did not express any impediments during stand-up meetings. Imran then observed that the health information module was lagging behind other modules, impacting the overall progress.

Imran created an information radiator and confirmed the lagging status of the health information module using a burndown chart. However, he also discovered that the team assigned to this module was completing work at a faster rate than the majority of the team, as indicated by a burnup chart. Armed with this empirical data, Imran presented the information to his project director and the vendor product owner, highlighting the risk and the need for ive action.

Imran's use of the burnup chart provided clarity that the inability to achieve the sprint goal was not due to resource ability but rather improper estimation of required resources. This insight enabled Imran to address the issue effectively and work towards resolving the lagging module in order to meet project goals. By leveraging information radiators, Imran proactively identified and addressed performance issues, leading to improved project outcomes.

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Consider the R&D game being played by Huawei and Samsung. Huawei can choose to develop a new camera for its phone (C) or not (N). Samsung observes the choice of Huawei, then can make its own choice of C or N. The payoffs are as follows. If Huawei opted for C and Samsung likewise chose C, the payoffs are (100, 80) for Huawei and Samsung, respectively. If the choices are C by Huawei and N for Samsung, the payoffs are (120, 60). If Huawei opts for N and Samsung C, the payoffs that ensue are (80 120). If Huawei chooses N and Samsung N the payoffs are (140, 100). What are the actions we observe in the credible (subgame perfect) equilibrium?
C by Huawei and C by Samsung.
C by Huawei and N by Samsung
N by Huawei followed by C chosen by Samsung
N by Huawei followed by N by Samsung
Either C by Huawei followed by C by Samsung AND N by Huawei and N by Samsung

Answers

The credible (subgame perfect) equilibrium actions observed are C by Huawei and C by Samsung.

In this R&D game, both Huawei and Samsung have two choices: develop a new camera (C) or not develop a new camera (N). The payoffs for each combination of choices are given.

To find the credible (subgame perfect) equilibrium, we need to consider the players' best responses to each other's actions.

If Huawei chooses C, Samsung's best response is also to choose C because it leads to a payoff of 80, which is higher than the payoff of 60 when Samsung chooses N.

If Huawei chooses N, Samsung's best response is again to choose C because it leads to a payoff of 120, which is higher than the payoff of 100 when Samsung chooses N.

Given these best responses, the only outcome that satisfies the condition of credible (subgame perfect) equilibrium is when Huawei chooses C and Samsung also chooses C.

This outcome yields payoffs of (100, 80) for Huawei and Samsung, respectively, which are the highest possible payoffs for both players in this game.

Therefore, in the credible (subgame perfect) equilibrium, we observe C by Huawei and C by Samsung.

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Prompt: The LIBOR is expected to be higher than the rate covered on T-bills. The government subsidizes rate meaningfully affects both of these rates, however interbank loaning rates likewise affect the LIBOR. Different trades and other global exchanges utilize the London Interbank Offered Rate (LIBOR). T-bill rates are expected to be lower than LIBOR. This is on the grounds that the LIBOR is the rate that banks use while loaning cash to one another, and banks are generally able to loan cash to one another at a more prominent rate than the rate at which the public authority gets cash.
Q: Is the assumption that the US Treasury has less risk than banks?

Answers

No, the assumption that the US Treasury has less risk than banks is generally true.

The US Treasury is considered to have lower risk compared to banks for several reasons:

1. Government Backing: The US Treasury is backed by the full faith and credit of the US government. It is highly unlikely that the US government would default on its obligations, making Treasury securities a relatively safe investment.

2. Sovereign Risk: Banks, on the other hand, are subject to various risks such as credit risk, liquidity risk, and operational risk. These risks arise from the nature of banking activities, including lending, investment, and management of assets and liabilities.

3. Regulatory Oversight: Banks are heavily regulated and supervised by regulatory authorities to ensure their safety and soundness. However, even with regulation in place, there is still a certain level of risk associated with banking operations.

4. Market Perception: Due to the perceived lower risk of US Treasury securities, they are often considered a benchmark for risk-free investments. This perception is reflected in the interest rates offered on T-bills, which are typically lower than rates such as LIBOR.

While it is important to note that no investment is entirely risk-free, the US Treasury is generally considered to have lower risk compared to banks. This is due to the government backing, lower likelihood of default, and the perception of US Treasury securities as relatively safe investments.

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The cross-over point for two types of machine-producing widgets is 25,000 units. Machine A has a fixed cost of P100,000 and a variable cost of P8 per widget. Machine B has a fixed cost of P250,000. What is the variable cost of Machine B?
Group of answer choices
P10.00
P4.00
P2.00
P20.00
P12.00

Answers

The cross-over point for two types of machine-producing widgets is 25,000 units. Machine A has a fixed cost of P100,000 and a variable cost of P8 per widget.  

Machine B has a fixed cost of P250,000. What is the variable cost of Machine B? The variable cost of Machine B is P12.00. Variable cost refers to the costs that are incurred by a company during the production of goods or services, which can fluctuate depending on the volume of production. The formula for calculating the variable cost is:

Variable cost = (Total cost – Fixed cost) / Number of units produced From the given information, we know that the cross-over point for the two types of machine-producing widgets is 25,000 units. Let's find the total cost of both machines and then use the formula to calculate the variable cost of Machine B. The total cost of Machine A is:

Total cost of Machine A = Fixed cost of Machine A + Variable cost of Machine A × Number of units produced

Total cost of Machine A = 100,000 + 8 × 25,000

Total cost of Machine A = 300,000

The total cost of Machine B is:

Total cost of Machine B = Fixed cost of Machine B + Variable cost of Machine B × Number of units produced

Total cost of Machine B = 250,000 + Variable cost of Machine B × 25,000

We know that the cross-over point for both machines is 25,000 units, so we can set the total cost of Machine A equal to the total cost of Machine B:

Total cost of Machine A = Total cost of Machine B 300,000 = 250,000 + Variable cost of Machine B × 25,000

Variable cost of Machine B = (300,000 - 250,000) / 25,000 Variable cost of Machine B = 50,000 / 25,000Variable cost of Machine B = P12.00. Therefore, the variable cost of Machine B is P12.00.

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3. with the aid of a graph, explain why marginal costs will necessarily interest average total cost whenever average total lost reaches a minimum for "wall behound" Cost Curve. ( Can you show this mathematically? Hint: Think of properties must be satified at minimum.)

Answers

At the minimum point of the "U-shaped" cost curve, marginal costs intersect the average total cost, ensuring any deviation increases the average total cost.

To understand why marginal costs (MC) intersect average total cost (ATC) at the minimum point of the "U-shaped" cost curve, we can analyze it graphically and mathematically.

Graphically, the "U-shaped" cost curve represents the typical shape of the average total cost (ATC) curve. At the minimum point of the ATC curve, the curve is at its lowest value. The MC curve intersects the ATC curve at this minimum point.

Mathematically, the relationship between MC and ATC can be understood by examining their respective formulas:

ATC = TC/Q (where TC is total cost and Q is quantity)

MC = ΔTC/ΔQ (where Δ represents change)

At the minimum point of the ATC curve, two important properties must be satisfied:

1. MC must be equal to ATC: When MC is below ATC, it pulls the ATC down. When MC is above ATC, it pushes the ATC up. At the minimum point, MC intersects ATC, indicating that any further increase or decrease in quantity will impact ATC in the same way, keeping it at its minimum value.

2. MC must be equal to or rising above the minimum point: If MC is falling below the minimum point, it would cause ATC to decrease further. This would contradict the minimum point of the ATC curve. Therefore, MC must be equal to or rise above the minimum point to maintain the minimum value of ATC.

In summary, graphically and mathematically, the intersection of MC and ATC at the minimum point of the "U-shaped" cost curve ensures that any deviations from the minimum quantity will result in an increase in average total cost.

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Bob owns 1000 shares of UGI stock. The annualized dividend is
$1.44. What would he receive?

Answers

Bob owns 1000 shares of UGI stock and the annualized dividend is $1.44.

Therefore, he will receive $1,440 as dividend per year.

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Which of the following has the highest effective annual interest rate?
a. 8.10 percent compounded quarterly
b. 8.30 percent compounded annually
c. 8.30 percent compounded semiannually
d. 8.30 percent compounded monthely

Answers

8.30 percent compounded monthly has the highest effective annual interest rate. Option (d)

To determine which option has the highest effective annual interest rate, we need to compare the compounding periods and calculate the effective annual interest rate for each option.

Option (a) offers an interest rate of 8.10 percent compounded quarterly. This means that interest is calculated and added to the account balance every three months. The compounding frequency is lower compared to monthly compounding, which results in a lower effective annual interest rate.

Option (b) provides an interest rate of 8.30 percent compounded annually. With annual compounding, interest is added to the account balance once per year. While this option has a slightly higher interest rate than option (a), the compounding frequency is lower, resulting in a lower effective annual interest rate as well.

Option (c) also offers an interest rate of 8.30 percent, but it is compounded semiannually. This means that interest is added to the account balance twice a year. The compounding frequency is higher than that of options (a) and (b), resulting in a higher effective annual interest rate.

Option (d) has an interest rate of 8.30 percent compounded monthly. With monthly compounding, interest is added to the account balance every month. The compounding frequency is the highest among the given options, resulting in the highest effective annual interest rate.

Therefore, option (d) with 8.30 percent compounded monthly has the highest effective annual interest rate among the provided choices.

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Read the Harvard Business Review article "What Kind of Thinker are You?" by Mark Bonchek and Elisa Steele. Write a one page report, approximately 250-500 words (1-2 typed pages, single-spaced), briefly identifying your own thinking style and the strengths and weaknesses of that style (give brief, personal examples). Include a discussion of how you can best play to your style’s strengths and how you minimize its weaknesses.

Answers

I can offer general guidance on identifying thinking styles and discussing their strengths and weaknesses based on your personal experiences.

To identify your thinking style, reflect on your cognitive preferences and tendencies in problem-solving, decision-making, and information processing. Consider whether you lean towards analytical thinking, creative thinking, strategic thinking, or a combination of different styles.

Once you've identified your thinking style, you can explore its strengths and weaknesses. For example, if you have a preference for analytical thinking, your strengths may include attention to detail, logical reasoning, and data-driven insights. However, potential weaknesses might include over-analysis or difficulty seeing the big picture.

To play to your thinking style's strengths, you can:

1. Emphasize your preferred thinking style in tasks and projects that align with it. This allows you to leverage your natural abilities and excel in areas where your style shines.

2. Seek opportunities to collaborate with individuals who possess complementary thinking styles. This enables you to benefit from different perspectives and approaches, leading to more well-rounded outcomes.

To minimize the weaknesses of your thinking style, you can:

1. Be aware of potential biases or blind spots associated with your style. Actively seek alternative viewpoints and challenge your own assumptions to avoid tunnel vision.

2. Engage in activities that encourage the development of other thinking styles. This can include participating in workshops or training programs that promote creativity, strategic thinking, or other cognitive approaches.

Remember, understanding your thinking style is a starting point for self-awareness and personal growth. By capitalizing on your strengths and addressing your weaknesses, you can enhance your overall effectiveness as a thinker and problem solver.

Please note that the guidance provided is general in nature and may not directly address the specifics of the "What Kind of Thinker Are You?" article by Mark Bonchek and Elisa Steele. If you have access to the article, I recommend reading it to gain more insights and apply the concepts mentioned in your report.

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Brief down in atleast 1000 words about hospital planning
concept. Also explain in detail the roles of government in health
insurance.

Answers

Hospital Planning is the practice of defining and fulfilling the objectives of healthcare facilities. The development of comprehensive medical care services depends on effective planning, which considers various factors like the population, the burden of diseases, and the available resources. In general, hospital planning should aim to ensure that patients receive the care they need promptly, affordably, and efficiently.

There are several essential elements to consider when planning a hospital, such as the location of the facility, the size of the hospital, the medical equipment required, the availability of skilled healthcare providers, and the financial resources needed. In most cases, hospital planning requires significant collaboration between government health officials, healthcare providers, and the community.

Roles of the Government in Health InsuranceThe government plays a vital role in healthcare insurance, as it is responsible for regulating the health insurance industry to ensure that patients can access affordable and quality care. Some of the primary roles of the government in health insurance include.

1. Regulating Insurance ProvidersThe government regulates health insurance providers to ensure that patients get access to affordable and quality health care. The government achieves this by setting standards for insurance providers and by monitoring their compliance with the set standards.

2. Developing Healthcare PoliciesThe government is responsible for developing healthcare policies that help regulate the health care sector. Healthcare policies can affect various aspects of health insurance, such as the coverage of medical treatments, eligibility criteria, premiums, and other aspects.

3. Providing Financial SupportThe government can provide financial support for patients who cannot afford to pay for health insurance. This financial aid can take the form of tax subsidies, grants, or direct payments.

4. Regulating PremiumsThe government regulates the premiums charged by insurance providers to ensure that patients can afford to pay for their health care. This regulation helps to keep the costs of healthcare insurance low, making it more accessible to the majority of patients.

5. Providing Healthcare ServicesThe government can provide healthcare services to the public directly.

For example: the government can establish public hospitals, clinics, and other healthcare facilities to provide medical services to the public.

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evaluate the 4 adjustments bank of america leaders must make when expanding internationally. recommend 1 specific leadership action for each adjustment such as developming a global mindset developing sensitivity to cultural differences , decetralizing , deciding on the level of involvement, etc
recommend whether the organization shoukd expand into the chosen country and explain your retionale

Answers

Bank of America has gained experience expanding globally through a combination of acquisitions and organic growth. The company's International Growth and Strategy team assists senior leaders in deciding where and how to expand. Bank of America leaders must make four adjustments when expanding internationally; develop a global mindset, develop sensitivity to cultural differences, decentralize,

and determine the level of involvement. These are the adjustments leaders need to make to expand globally:1. Developing a global mindsetThe Bank of America leaders must have a global mindset when expanding internationally, which means they must think globally and act locally.

This entails understanding the complexities of various cultures, political systems, and economic structures around the world. It also entails keeping up with emerging trends and the needs of diverse customer segments. Leaders must build and foster strong local partnerships with governments, regulators, and community organizations in every market to be successful. They should establish a comprehensive understanding of the region's competitive landscape and the customer base's preferences.

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When faced with an ethical dilemma, ________.
Select one:
A.
assume you are viewing the situation fairly and objectively
B.
identify and consider only the most important issues and questions
C.
assume others think the way you do
D.
treat people the way you would wish to be treated
E.
consider the rights of all parties who might be affected by your decision'

Answers

When faced with an ethical dilemma, it is important to consider the rights of all parties who might be affected by your decision. Ethical dilemmas are situations in which the right course of action is not always clear or in which it may be difficult to determine which option is morally right.

In these situations, it is important to consider all of the facts and circumstances of the situation and to take into account the perspectives of all parties who may be involved. One way to do this is to consider the rights of all parties who might be affected by your decision. This means thinking about how your actions will impact others and taking steps to ensure that everyone's rights are respected and protected.

It also means being willing to listen to and learn from others, even if their perspectives differ from your own. Ultimately, making ethical decisions requires careful thought and consideration, and a willingness to put the needs of others ahead of your own.

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The bonds of Zhi Controls have an annual rate of return of 9.47 percent and a face value of $1,000. The rate of inflation is 3.52 percent. What is the real rate of return on these bonds? Multiple Choice 13.32% −1.09% 4.18% 9.46% 5.75%

Answers

The real rate of return on these bonds can be calculated using the formula below :Real rate of return = [(1 + nominal rate of return) / (1 + inflation rate)] - 1Where nominal rate of return is the annual rate of return on the bond, and inflation rate is the rate of inflation .

For the given problem, the nominal rate of return is 9.47 percent and the inflation rate is 3.52 percent.

Therefore, the real rate of return on these bonds is: Real rate of return = [(1 + 9.47 / 100) / (1 + 3.52 / 100)] - 1

= [(1.0947) / (1.0352)] - 1≈ 0.0569 or 5.69% (rounded to two decimal places)Therefore, the correct option is 5.75%.

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Gilmore Company has 20,000 authorized shares of common stock, $2 par, and also 20,000 authorized shares of preferred stock, $10 par. Required Record journal entries for the following separate transactions. Analyze and record each transaction separately. a. On January 1, 2020, Gilmore sold 320 shares of common stock and 160 shares of preferred stock for a lump sum of $9,840. The common stock had been selling during the current week at $25 per share, and the preferred at $12 per share. Round amounts to the nearest dollar. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. b. On January 1, 2020, Gilmore issued 144 shares of preferred stock for used equipment. The equipment had been appraised at $1,920, and the book value recorded by the seller was $960. A reliable determinable fair value on the preferred stock has not been established. c. Assume that the 16,000 shares of preferred stock are callable for $12 per share at the option of the issuer, Gilmore. After issuing 400 shares of callable preferred stock on January 1, 2020, for $12, Gilmore recalled 80 shares of preferred stock on June 30, 2020, for $12. Record the entries for Gilmore on January 1 , 2020 , and on June 30,2020 d. Assume that each of the 16,000 shares of preferred stock is convertible into 2 shares of common stock at the option of the stockholder. After issuing 400 shares of convertible preferred stock on January 1,2020 , for $12,80 shares of preferred stock were converted into common stock on June 30 , 2020 . Record the entries for Gilmore on January 1,2020 , and on June 30,2020 , assuming that the fair value of the preferred stock was $16 per share on June 30 , 2020 . Cash Equipment Investment in Stock Dividends Payable Property Dividends Payable Preferred Stock Common Stock Common Stock Dividends Distributable Paid-in Capital in Excess of Par-Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital-Retired Stock Paid-in Capital-Treasury Stock Retained Earnings Treasury Stock Legal Expense Unrealized Gain or Loss-Income N/A

Answers

we debit Preferred Stock for $1,280, credit Common Stock for $160, and credit Paid-in Capital in Excess of Par-Preferred Stock for $1,120.

The journal entries for each transaction are as follows:

a.
Debit: Cash $9,840
Credit: Common Stock $8,000
       Preferred Stock $1,920

b.
Debit: Equipment $1,920
Credit: Preferred Stock $1,920

c.
Debit: Cash $4,800
Credit: Preferred Stock $4,800

d.
Debit: Cash $4,800
Credit: Preferred Stock $4,800

On June 30, 2020:
d.
Debit: Preferred Stock $1,280
Credit: Common Stock $160
        Paid-in Capital in Excess of Par-Preferred Stock $1,120

On January 1, 2020:

a. Gilmore sold 320 shares of common stock and 160 shares of preferred stock for a lump sum of $9,840. To record this transaction, we need to determine the fair value of the stock and allocate the total consideration based on their relative fair values.

The fair value of the common stock is $25 per share, and the fair value of the preferred stock is $12 per share. The total fair value of the common stock is 320 shares × $25 = $8,000, and the total fair value of the preferred stock is 160 shares × $12 = $1,920.

To record the transaction, we debit Cash for $9,840 and credit Common Stock for $8,000 and Preferred Stock for $1,920.

b. Gilmore issued 144 shares of preferred stock in exchange for used equipment. The equipment's appraised value is $1,920, and its book value recorded by the seller is $960. To record this transaction, we debit Equipment for $1,920 and credit Preferred Stock for $1,920.

c. Gilmore issued 400 shares of callable preferred stock on January 1, 2020, for $12 per share. To record this transaction, we debit Cash for $4,800 and credit Preferred Stock for $4,800.

On June 30, 2020, Gilmore recalled 80 shares of preferred stock for $12 per share. To record this transaction, we debit Preferred Stock for $960 and credit Cash for $960.

d. Gilmore issued 400 shares of convertible preferred stock on January 1, 2020, for $12 per share. To record this transaction, we debit Cash for $4,800 and credit Preferred Stock for $4,800.

On June 30, 2020, 80 shares of preferred stock were converted into common stock. The fair value of the preferred stock on June 30, 2020, is $16 per share. To record this conversion, we debit Preferred Stock for $1,280, credit Common Stock for $160, and credit Paid-in Capital in Excess of Par-Preferred Stock for $1,120.

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A While Ago An Investor Entered Into A Long Forward Contract On A Non-Dividend-Paying Stock At A Forward Price Of $58.00. Today The Contract Has One Year To Maturity And The Price Of The Stock Is $60.00. If The Risk-Free Rate Is 5%CC Per Annum, What Is The Value Of The Forward Contract? A. $1.90 B. $2.00 C. $2.10 D. $4.83

Answers

The future value of Dr. Nick Riviera's retirement fund, considering semiannual deposits of $500 over 35 years and an 11% compounded interest rate, is approximately $2,150,539.76.

To calculate the future value of the retirement fund, we can use the formula for the future value of an annuity:

FV = P × [(1 + r)^n - 1] / r

Where:

FV = Future Value

P = Periodic deposit amount

r = Interest rate per period

n = Total number of periods

In this case, the periodic deposit amount is $500, the interest rate per period is 11% divided by 2 (since deposits are made semiannually), and the total number of periods is 35 years multiplied by 2 (to account for semiannual deposits).

FV = $500 × [(1 + 0.11/2)^(35*2) - 1] / (0.11/2)

FV ≈ $2,150,539.76

After 35 years of semiannual deposits of $500 into a retirement fund with an 11% compounded interest rate, Dr. Nick Riviera can expect a future value of approximately $2,150,539.76 for his retirement.

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Countries use trade policies in a wide range of industries,
including agriculture,
mining, aircraft, and high technology.
s?
Why do governments support their high-technology industries?
Please explain

Answers

Countries use trade policies in a wide range of industries such as agriculture, mining, aircraft, and high technology. Governments support their high-technology industries for several reasons.Technology is an integral part of modern economies, particularly those that are driven by innovation.

It has been observed that high-technology firms are major job creators in the economy. Such firms attract large investments, employ highly skilled workers and have long-lasting economic and social impacts on the economy.Governments are increasingly using trade policies to promote their high-technology industries by investing in research and development (R&D) and setting up institutions to develop new technologies.

For instance, governments use intellectual property rights to provide incentives for innovators to invest in R&D. They also use trade policies to provide subsidies and tax incentives to encourage high-technology firms to invest in R&D. These policies are often used to protect domestic industries from foreign competition.Governments also use trade policies to encourage the growth of their high-technology industries by promoting exports.

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Which statement is true?
AFC declines with output ATC declines with output AFC – AVC =
ATC Output divided by fixed cost = AFC

Answers

The true statement is that ATC declines with output.Average Fixed Cost (AFC) refers to the cost that does not change with a change in production output.

As production increases, total fixed costs remain the same while the fixed cost per unit decreases, causing the average fixed cost to decrease.Average Variable Cost (AVC) refers to the cost that varies with the change in production output. As production increases, variable costs increase, and vice versa, resulting in an average variable cost that is constant for a certain production volume or quantity. The average variable cost starts to increase after a certain point because of diminishing marginal returns.

Marginal costs (MC) rise as output increases since they reflect the change in total costs caused by the change in production output.Average Total Cost (ATC) is the sum of all the costs of production per unit. The sum is obtained by adding the average fixed cost (AFC) and the average variable cost (AVC) for a given output.ATC = AFC + AVCAFC declines with the increase in output, while AVC remains constant throughout the production process.ATC will initially decline with output due to spreading fixed costs across more units of production, but it will eventually rise because the diminishing marginal returns start to outweigh the benefits of spreading fixed costs. Therefore, the true statement is that ATC declines with output.

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Common stock versus warrant investment Personal Finance Problem Tom Baldwin can invest $9,000 in the common stock or the warrants of Lexington Life Insurance. The common stock is currently selling for $65 per share. Its warrants, which provide for the purchase of 4 shares of common stock at $61 per share, are currently selling for $18. The stock is expected to rise to a market price of $70 within the next year, so the expected theoretical value of a warrant over the next year is $36. The expiration date of the warrant is 1 year from the present.
a. If Mr. Baldwin purchases the stock, holds it for 1 year, and then sells it for $70, what is his total gain? (Ignore brokerage fees and taxes.) b. If Mr. Baldwin purchases the warrants and converts them to common stock in 1 year, what is his total gain if the market price of common shares is actually $70? (Ignore brokerage fees and taxes.) c. Repeat parts a and b, assuming that the market price of the stock in 1 year is $66 d. Discuss the two alternatives and the trade-offs associated with them

Answers

The decision between the two alternatives depends on Mr. Baldwin's risk tolerance, investment objectives, and expectations for the future price movement of the stock.

a. If Mr. Baldwin purchases the stock at $65 per share, holds it for 1 year, and sells it for $70, his total gain can be calculated as follows:

Total gain = (Selling Price - Buying Price) * Number of Shares

Total gain = ($70 - $65) * Number of Shares

Total gain = $5 * Number of Shares

To determine the number of shares Mr. Baldwin can purchase with his $9,000 investment, we divide the investment amount by the price per share:

Number of Shares = Investment Amount / Price per Share

Number of Shares = $9,000 / $65

Number of Shares ≈ 138.46

Total gain = $5 * 138.46

Total gain ≈ $692.30

Therefore, Mr. Baldwin's total gain from purchasing the stock and selling it after 1 year would be approximately $692.30.

b. If Mr. Baldwin purchases the warrants at $18 each and converts them to common stock in 1 year when the market price of common shares is $70, his total gain can be calculated as follows:

Total gain = (Market Price - Conversion Price) * Number of Shares - Warrant Cost

Total gain = ($70 - $61) * Number of Shares - Warrant Cost

Since each warrant allows the purchase of 4 shares of common stock, the number of shares obtained would be:

Number of Shares = Number of Warrants * Conversion Ratio

Number of Shares = 1 * 4

Number of Shares = 4

Total gain = ($70 - $61) * 4 - $18

Total gain = $36 - $18

Total gain = $18

Therefore, Mr. Baldwin's total gain from purchasing the warrants and converting them to common stock after 1 year would be $18.

c. Repeating parts a and b with a market price of $66 in 1 year would yield different results. However, the calculations can be done in a similar manner by substituting $66 as the market price in the respective formulas.

d. The two alternatives, investing in the common stock and investing in the warrants, offer different trade-offs.

Investing in the common stock provides a direct ownership stake in the company. The gain or loss depends on the price movement of the stock. The potential for gain is straightforward, but there is a higher initial investment required compared to the warrants. Investing in warrants allows leverage by providing the right to purchase more shares at a predetermined price. However, the warrants have an expiration date, and if the market price doesn't reach the conversion price, they may expire worthless. Warrants can offer higher potential returns if the stock price rises significantly, but they also carry higher risk.

Ultimately, the decision between the two alternatives depends on Mr. Baldwin's risk tolerance, investment objectives, and expectations for the future price movement of the stock. It's important for him to carefully consider the potential gains, associated risks, and expiration dates before making a decision.

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Explain with examples, ANY THREE (3) effective methods in which
a manager can improve the ethical performance of a firm. Answer
should be long and in detail

Answers

Here are three effective methods in which a manager can improve the ethical performance of a firm:

1. Setting a strong ethical tone: A manager can lead by example and establish a culture of ethics within the organization.

This can be done by clearly communicating the company's values, expectations, and ethical standards to all employees.

For example, the manager can hold regular ethics training sessions, share real-life case studies, and provide guidance on ethical decision-making.

2. Implementing an ethics hotline or reporting system: A manager can create a safe and confidential channel for employees to report unethical behavior or concerns.

This encourages transparency and accountability within the organization. For instance, the manager can establish an anonymous reporting system where employees can raise ethical issues without fear of retaliation.

3. Rewarding ethical behavior: A manager can create incentives and recognition programs to reward employees who consistently demonstrate ethical behavior.

This sends a strong message that ethical conduct is valued and encouraged.

For instance, the manager can implement a bonus structure that takes into account ethical considerations, publicly acknowledge ethical actions in team meetings, or provide career advancement opportunities for individuals who consistently demonstrate ethical behavior.

Remember, these are just three examples of effective methods to improve ethical performance.

There are many other strategies that a manager can adopt depending on the specific needs and challenges of their organization.

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Several factors impact the WACC. Which of the following factors does not fall under a firm's control? Capital structure Dividend policy Capital budgeting policy Market risk premium policy Investment policy,

Answers

Among the factors you mentioned, the Market Risk Premium Policy is the one that does not fall under a firm's control. The Market Risk Premium is determined by market conditions and investor expectations, which are external factors beyond the control of a specific firm.

Capital structure, dividend policy, capital budgeting policy, and investment policy are all factors that a firm can control to some extent.

The slope of the securities market line (SML), a graphical depiction of the capital asset pricing model (CAPM), is equal to the market risk premium. CAPM is a crucial component of discounted cash flow (DCF) valuation and modern portfolio theory (MPT), which calculates the needed rate of return on equity investments.

The correlation between the returns from a portfolio of assets and the yields on treasury bonds is known as the market risk premium. The needed returns, historical returns, and anticipated returns are reflected in the risk premium. For all investors, the historical market risk premium will be the same. However, depending on risk tolerance and investment preferences, the necessary and projected market premiums will vary from investor to investor.

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Employment law is the collection of
laws and rules that regulate relationships between employers and
employees.
True or False

Answers

True.

Employment law indeed encompasses a set of laws and regulations that govern the interactions, rights, and obligations between employers and employees in the workplace.

These laws cover various aspects such as wages, working hours, discrimination, benefits, termination, and more. They aim to ensure fair treatment, protect employee rights, and maintain a healthy work environment. Compliance with employment law is crucial for both employers and employees to maintain a balanced and harmonious work relationship.Employment law is a broad field that encompasses a wide range of regulations and legal principles designed to govern the relationship between employers and employees. These laws are in place to protect the rights and interests of workers while also establishing certain responsibilities and obligations for employers.

Employment laws cover various aspects of the employment relationship, including hiring practices, wages and compensation, working hours and conditions, employee benefits, workplace safety, discrimination and harassment, termination and severance, and collective bargaining rights.

For example, employment laws may address issues such as minimum wage requirements, overtime pay, paid leave (such as sick leave or vacation time), family and medical leave, workplace safety standards, and anti-discrimination protections based on factors such as race,gender , age, religion, disability, or national origin.

Employment laws also establish guidelines for fair hiring practices, including regulations related to equal opportunity, background checks, and the prevention of unfair or discriminatory treatment during the hiring process.

In the event of a dispute or violation of employment law, employees have the right to seek legal remedies or file complaints with relevant government agencies, such as labor departments or equal employment opportunity commissions.

Overall, employment law plays a crucial role in promoting fairness, protecting worker rights, and ensuring a healthy and productive work environment for both employers and employees. Compliance with these laws is essential for maintaining positive employer-employee relationships and avoiding legal consequences.

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By the beginning of 2000, 27 European Union (EU) countries have adopted the euro as their national currency and are termed the Eurozone. According this union, these European countries have uniform their economic and political regulations and standards. Euro currency sharing to operate as a single and an internal market which allows free movement of goods, capital, services. Additionally, people between country members sharing a single currency. The using of this single currency between the European country members eliminates exchange fluctuations and simplifies trade in Europe. Eurozone firms had to make numerous operational changes, especially regarding finance and accounting, but generally prefer dealing in the euro. The European Central Bank (ECB) views the Eurozone as one region and must apply the same monetary policy to all EU members, but this is problematic at times. The United Kingdom determined not to join the monetary union, keeping the British pound as its currency.
a. Analyze the extent to which you agree with the construction of European Union with clarifying the changes did firms make once the euro became the new currency.
b. Analyze the extent to which adopting the euro was worth for adopting countries. With clarifying how this union affect the international trade volume.
c. Analyze the extent to which you agree with the decision of The United Kingdom to be not join with the monetary union and keeping the British pound as its currency.
d. After the global financial crisis, specifically In 2016, UK decide to withdraw from the EU (Brexit). Analyze the extent to which you agree with this decision.

Answers

a. The construction of the European Union and the adoption of the euro as the common currency have brought several changes for firms. One significant change is the need to adjust their finance and accounting operations to comply with euro-based standards. Firms in the Eurozone had to convert their financial reporting systems to use the euro, which involved considerable effort and cost.

Additionally, firms had to adapt their pricing strategies, as exchange rate fluctuations within the Eurozone were eliminated. Overall, these changes aimed to simplify trade and reduce barriers among member countries.

b. The adoption of the euro has been beneficial for adopting countries in terms of international trade volume. By sharing a single currency, the Eurozone countries eliminated exchange rate fluctuations, making trade within the Eurozone more efficient and predictable.

This has facilitated increased trade among member countries, leading to a growth in international trade volume. Moreover, the euro's stability and wide acceptance as a global currency have boosted confidence in Eurozone economies, attracting foreign investors and further stimulating trade.

c. The decision of the United Kingdom not to join the monetary union and keep the British pound as its currency is a matter of national sovereignty and economic considerations. While being part of the Eurozone could provide benefits such as easier trade within the Eurozone, the United Kingdom made the decision to maintain control over its monetary policy and exchange rate.

This decision allows the United Kingdom to tailor its economic policies to its specific needs, independent of the Eurozone's monetary policies.

d. The decision of the United Kingdom to withdraw from the European Union (Brexit) in 2016 is a complex issue with various opinions. It is important to note that there are different perspectives on this matter, and opinions on whether it was the right decision vary. Some argue that Brexit allows the United Kingdom to have more control over its regulations and trade policies.

On the other hand, there are concerns about the potential negative impact on the UK economy, such as increased trade barriers and reduced access to the EU market. The long-term effects of Brexit on the UK and its relationship with the EU are still unfolding, and the extent to which this decision is agreed upon depends on individual perspectives and priorities.

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If a company has a high degree of financial flexibility, then which of the following statement is false?
A. The company can better survive economic downturn
B. The company can more easily recover from unexpected setbacks
C. The company can better take advantage of unexpected investment opportunities
D. None of the above is false (i.e., all true)

Answers

The statement "None of the above is false (i.e., all true)" is false. Option D.

Financial flexibility refers to a company's ability to respond and adapt to changing financial circumstances or opportunities. It is generally associated with having sufficient financial resources, a strong balance sheet, and access to capital markets.

A high degree of financial flexibility enables a company to navigate through economic downturns, recover from setbacks, and take advantage of investment opportunities. Therefore, statements A, B, and C are generally true and aligned with the concept of financial flexibility.

However, it is important to note that while financial flexibility provides advantages, it does not guarantee success or immunity from all challenges. Even with a high degree of financial flexibility, a company may still face difficulties in certain situations.

Economic downturns can have widespread impacts that may affect even financially flexible companies.

Unexpected setbacks may pose significant challenges that require additional actions beyond financial resources alone. Similarly, the ability to take advantage of unexpected investment opportunities depends on various factors, including market conditions and the company's strategic alignment.

In summary, while a high degree of financial flexibility improves a company's ability to navigate through economic downturns, recover from setbacks, and capitalize on investment opportunities, it does not provide absolute protection or guarantee success in all circumstances. Option D is correct.

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You are buying a house and you are financing the purchase with a mortgage of $180,000. The mortgage has a 30 year term and requires monthly payments. The mortgage charges an interest rate of 0.5% every month. What is the monthly payment?

Answers

The monthly payment for the mortgage is $912.98. This amount will be paid monthly by the borrower for 30 years to finance the purchase of the house. The mortgage has an interest rate of 0.5% per month.

Given: That the mortgage amount is $180,000 and has a term of 30 years, we can calculate the monthly payment using the formula: PV = PMT × [(1 – (1 / (1 + r)n)) / r]Where, PV = Present value of loan. PMT = Monthly payment.  r = Rate of interest. n = Number of payments. PV = $180,000r = 0.5% per month or 0.005n = 30 years × 12 months/year = 360 months. Plugging in the values, we get: PMT = PV / [(1 – (1 / (1 + r)n)) / r]PMT = $180,000 / [(1 – (1 / (1 + 0.005)360)) / 0.005]PMT = $912.98 (approx.)

When buying a house and financing the purchase with a mortgage of $180,000, we can calculate the monthly payment by using the formula PV = PMT × [(1 – (1 / (1 + r)n)) / r]. The mortgage has a term of 30 years and requires monthly payments. It charges an interest rate of 0.5% every month.

Plugging in the given values, we get the monthly payment as $912.98. This amount will be paid monthly by the borrower for 30 years to finance the purchase of the house.

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Jill wants to make a few deposits so that she can withdraw $5000 per year at the end of each year for the next 15 years. A deposit of X is made a year from now, a second deposit of 2X is made at the end of year 4, and a deposit of (X/2) is made at the end of year 8. What is the amount of X if the goal is to empty the account? Use 6% interest.

Answers

The amount of X, if the goal is to empty the account, is $14,882.11. The problem can be solved with the help of the time value of money. If Jill's account is emptied after fifteen years, the present value of the account should be zero. Let's use this approach to solve the problem.

Let's use the formula for the present value of an annuity to solve the problem:

PV of Annuity = Pmt [1 - 1/(1+i)^n] / i

PV of Annuity = $5000 [1 - 1/(1+6%)^15] / 6%

We can solve for Pmt by rearranging the formula above:

Pmt = PV of Annuity x i / [1 - 1/(1+i)^n]

Pmt = $5000 x 6% / [1 - 1/(1+6%)^15]

Pmt = $5000 x 6% / 0.649935

Pmt = $76,942.98

Now that we have the present value of the annuity, we can solve for X. The easiest way to do this is to work backwards from the end of the annuity. The final withdrawal of $5000 can be treated as a single payment made at the end of year 15, so its present value is simply:

$5000 / (1+6%)^15 = $2,052.12

This means that the remaining present value of the annuity is:

$76,942.98 - $2,052.12 = $74,890.86

Now we can use the present value formula for a lump sum to solve for X. We have three payments: X at the end of year 1, 2X at the end of year 4, and X/2 at the end of year 8. Using the present value formula, we get:

PV = X / (1+6%) + 2X / (1+6%)^4 + (X/2) / (1+6%)^8

PV = $74,890.86

Solving for X:

74,890.86 = X / 1.06 + 2X / 1.2625 + (X/2) / 1.4851

X = $14,882.11

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Required information M & M Proposition I, with Taxes Lollipop Corp.provides the following information: EBIT = $286.50,Tax (TC )= 35%Debt= $810,Cost of debt capital = 10%,RU = 15% What is the value of the firm? $1,241.53,$1,050.72,$1,784.03,$1,525.03$1,654.91.

Answers

The  Taxes Lollipop Corp company’s value (V) is  found to be  $1,525.03.

The formula for the WACC is expressed as follows:

WACC = (E/V × Re) + [(D/V × Rd) × (1 − TC)]

Where:E = market value of the firm’s equity

D = market value of the firm’s debt

V = E + D

Re = cost of equity

Rd = cost of debt

TC = corporate tax rate

The market value of the firm (V) can be calculated using the following formula:

V = E + D

Here,EBIT = $286.50,

Tax (TC )= 35%

Debt= $810,

Cost of debt capital = 10%,

RU = 15%

Given values:

Debt (D) = $810

Cost of debt capital (Rd) = 10%

Tax rate (TC) = 35%

Cost of equity (Re) = 15%

Here,V = E + D,

therefore

E = V - DEBIT = $286.50,

Therefore,

Net operating income (EBIT) = $286.50

Tax (TC )= 35%

Therefore,After-tax operating income (EBIT (1 - TC)) = $186.23

The company’s value (V) can now be calculated using the following formula:

V = E + D = EBIT (1 - TC) / WACC

V = (EBIT (1 - TC) / WACC) + D

Now, we need to calculate WACC

WACC = (E/V × Re) + [(D/V × Rd) × (1 − TC)]

WACC = [($715.03 / $1,525.03) × 0.15] + [($810.00 / $1,525.03) × 0.10 × (1 - 0.35)]

WACC = 0.0989 or 9.89%

V = (EBIT (1 - TC) / WACC) + D

= [($286.50 × (1 - 0.35)) / 0.0989] + $810.00

V = $1,525.03

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Yellow Bank borrows $25,000 through a loan with Purple Bank (transaction A ) and issues $10,000 bonds to Dr Orange (transaction B). Dr Orange is a rich widow who paid for the Yellow Bank bonds with the money of the rents she earned from her property investments in Sydney, money that was sitting in her transactional bank account in Purple Bank. Yellow Bank buys $400,000 shares just issued by Winnie Company, a honey producer that needs funding to renew its stock of beehives (transaction C). Winnie Company has its transactional bank account in Yellow Bank. a) Draw the changes in Yellow Bank's balance sheet and in Purple Bank's balance sheets resulting from transactions A, B ano C. [Clearly indicate the name of the item affected in the balance, the change in the value and between brackets the letter of the transaction.] No explanation is required. Only draw the two balance sheets.

Answers

Yellow Bank's balance sheet is affected by an increase in liabilities due to a loan from Purple Bank (Transaction A) and an increase in assets and liabilities resulting from the purchase of shares in Winnie Company (Transaction C). Purple Bank's balance sheet is impacted by a decrease in assets from the purchase of Yellow Bank bonds by Dr Orange (Transaction B).

Yellow Bank's Balance Sheet:

Transaction A:

Increase in liabilities: +$25,000 (Loan from Purple Bank)

Transaction C:

Increase in assets: +$400,000 (Shares in Winnie Company)

Increase in liabilities: +$400,000 (Funds borrowed to purchase shares)

Purple Bank's Balance Sheet:

Transaction B:

Decrease in assets: -$10,000 (Yellow Bank bonds purchased by Dr Orange)

Please note that this is a simplified representation of the changes, and there may be other items on the balance sheets that are not mentioned in the given information.

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Nike Corporation has bonds on the market with 8 years to maturity, a YTM of 7.3 percent, a par value of $1,000, and a current price of $995. The bonds make semiannual payments.
What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Coupon rate
%

Answers

To calculate the coupon rate on the bonds, we can use the present value formula:

Price = (Coupon Payment / (1 + YTM/2)^n) + (Coupon Payment / (1 + YTM/2)^(n-1)) + ... + (Coupon Payment / (1 + YTM/2)^2) + (Coupon Payment / (1 + YTM/2)) + (Par Value / (1 + YTM/2)^n)

Where:

Price = $995 (current price)

Coupon Payment = ?

YTM = 7.3% (Yield to Maturity)

n = 8 years (number of periods)

We know that the bonds make semiannual payments, so the number of periods will be 8 years * 2 = 16.

Using this formula, we can solve for the Coupon Payment:

$995 = (Coupon Payment / (1 + 7.3%/2)^16) + (Coupon Payment / (1 + 7.3%/2)^15) + ... + (Coupon Payment / (1 + 7.3%/2)^2) + (Coupon Payment / (1 + 7.3%/2)) + ($1,000 / (1 + 7.3%/2)^16)

By solving this equation, we find that the Coupon Payment is approximately $72.14.

To calculate the coupon rate, we divide the Coupon Payment by the Par Value and multiply by 100:

Coupon Rate = ($72.14 / $1,000) * 100 ≈ 7.21%

Therefore, the coupon rate on the bonds is approximately 7.21%.

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solve the initial value problem 9y'' + 12y' + 4y=0 y(0)=-3,y'(0)=3thank you Which of the following are best practices when communicating information about medicine for a sick child?a)Write or type the instructions on the label.b)Email the parent two to four hours after medication has been picked up.c)Spend extra time explaining the directions.d)Offer the pharmacists time for questions. what is the self, and How does the self change over time?explain everyday forms of resistance, Define the concept, and then, also share an experience about how someone engaged in an everyday form of resistance within a social institution apart of your life--family, work, religion, education, media, government, etc. and Why did they do this and what was the outcome for their self?Theorizing about how everyday forms of resistance (and transcripts) can lead to more macro-level (social/structural) changes Do so by bringing in ideas identity negotiations, etc. ( Suggest the business and revenue model Boo.com could haveconsidered and assess the potential for profitability quizlet: Which of the following manifestations is least likely to effect the MS patient's ability to ambulate A charge contains 55% hematite and 42% coke by mass. In the blast furnace, The percent conversion based on the limiting reactant is 80%. If the steel production requires 100 tons/day of iron. determine the mass of the charge required. Give your answer in tons per day in two decimal places. Fe=55.85 Consider the vectors u = (3,-4,-1) and v = (0,5,2). Find u v and determine the angle between u and v. [4] 1.2) Determine if the three vectors u = (1,4,-7), v = (2,-1, 4) and w = (0, -9, 18) lie in the same plane or not. [6] 1.3) Determine if the line that passes through the point (0, -3, -8) and is parallel to the line given by x = 10 + 3t, y = 12t and z=-3-t passes through the xz-plane. If it does give the coordinates of the point. [9] 1.4) Determine the equation of the plane that contains the points P = (1, -2,0), Q = (3, 1, 4) and Q = (0,-1,2) [8] pls help asap if you can!!!!!!!! 3. (8 points) Name and describe the two main forms of mechanical waves. A voltmeter connected across the teminals of a tungsten-fliament Iight bulb measures 114 V when an ammeter in line with the bulb registers a current of 0.658 A. (a) Find the resistance of the light bulb. (Enter your answer in ohms.) a (b) Find the resistivity of tungsten ( in 0m) at the bulb's operating temperature if the filament has an uncolied fength of 0.593 m and a radius of 2.4310 ^5 m. Question 6 of 12 < - 71 : View Policies Current Attempt in Progress In the figure, four long straight wires are perpendicular to the page, and their cross sections form a square of edge length a = 25 cm. The currents are out of the page in wires 1 and 4 and into the page in wires 2 and 3, and each wire carries 26 A. What is the magnitude of the net magnetic field at the square's center? Number i Units e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Taking into consideration what Phil Borges says about Shamans and Seers and how they are treated within our society and the thoughts of Dr. Einstein:How do you feel we are treating those in our own society who might see things differently?Research and post a link to an example in another religion that you think is crazy/odd/wrong/weird. Explain your reasons behind that conclusion.Looking at your OWN religion or spirituality, can you think of any examples that might be similar to the messages these people listen to from their seers? Be honest!!DO you think this is all crazy and you would never believe in something as odd as someone hearing voices in their head telling them what to do? Euthanasia"Some people's lives are not worth living, so society should be able to kill them, or let them die, "for their own good", or the good of society .Please not more than 300 wordsTHANKS What is customer loyalty & why is it important?Share two (2) specific examples of your loyalty as a customer &why to complete this discussion assignment. at least 150 wds.Marketing class (M A cylinder of 10cm radius has a thread wound at its edge. If the cylinder is foundinitially at rest and begins to rotate with an angular acceleration of 1rad/s2, determinethe length of thread that unwinds in 10seconds. II. PESILAD and Group Project WorkThis is the last PESILAD. Your clinical case is on "Did Franklin Roosevelt really have Polio?"P = Franklin Roosevelt, 39 years old, at that time (Aug. 10, 1921), went to bed, tired and complaining of back pain, fever and chills.Vital SignsHeart Rate = 88 per minuteRespiratory Rate = 24 per minuteBlood Pressure = 120/80Temperature - 38.5CE = Extrinsic?S = weakness, back pain, fever, chills, abnormal sensations of his upper extremities and face, inability to voluntarily urinate and defecate.I = Viral Infections (Poliomyelitis)?L = CBC, urinalysisA = nerve studiesD = _______________________Group Project Work2- identify the four general regions of a neuron using a color-coded diagram.3-Describe the dendrites, cell body, axon, and telodendria with evolutionary medicine concepts. in a consecutive sample of patients referred to a treatment program for substance abuse after TBI, nearly 20% of patients had been light drinkers or abstainers prior to the injury, and showed heavy use after injuryZ.M. Weil et al. / Neuroscience and Biobehavioral Reviews 62 (2016) 8999 91Please help to formulate a well-sculpted statement/point. 3. Renal Artery Stenosis results in a decreased volume ofblood reaching one (or both) kidneys.Outline how this condition can lead to hypertension. It is year 2120 and we have figure out a propulsion system that allows spaceships travel at velocities as high as v = 0.87c. A first expedition to Alpha Centauri (the nearest planetary system) is being planned. Alpha Centauri is 4.3 ly away. Answer the following 5 questions below asking you about the details of this expedition. Question 10 2 pts Assuming a constant velocity of v=0.87c, how long would the trip to Alpha Centauri take as observed by the ground control team here on Earth? Give your answer in years Question 11 2 pts How long would the trip to Alpha Centauri take as observed by the astronauts in the spaceship? Give your answer in years. Question 12 2 pts What would be the distance between Earth and Alpha Centauri as observed by the astronauts in the spaceship? Give your answer in ly. Question 13 2 pts If the mass of the spaceship (including the astronauts) is m = 10^4 kg, what would be its rest energy. 3 x 10^12 Joules O 9 x 10^9 Joules O 3 x 10^20 Joules O 9 x 10^20 Joules O 3x 10^9 Joules 09x 10^12 Joules Question 14 2 pts What would be the total energy of the spaceship (m = 10^4 kg) when moving at v = 0.75c as observed by Earth? O 18 x 10^12 Joules 18 x 10^20 Joules 1.5 x 10^20 Joules O 4.5 x 10^12 Joules O 4.5 x 10^20 Joules O 9 x 10^9 Joules Harry and ross were passing thorugh a dense forest at night suddenly the stillness of the forest was broken