You want to buy a car, and a local bank will lend you 20,000,The loan will be fully amortized over 5 years(60 Months) and thenominal interest rate will be 12% withinterest paid monthly. Whatwill be the monthly loan payment? What will be the loan's EAR?Answer in back of book, I didn't get it right, need to know whatImissed.Also, If you deposit money today in an account that pays 6.5%annual interest, how long will it take to double your money?
Company XX is expected to pay a $2.20 dividend next year and a $2.20 dividend in year 2.You estimate that company XX will be selling for $48 in two years.Your required rate of return for company XX is 12%.What is the intrinsic value of Company XX's stock today based on the above estimates?
A company uses a process cost accounting system and the weighted average method for inventory costs. The following information is available regarding direct labor forthe current year:(a) Calculate the equivalent units of production for direct labor for the year.(b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).
Kalinowski Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennelbudgeted for 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas used in itsbudgeting and its actual results for February:Data used in budgeting:Fixed element per month Variable element per tenant-dayRevenue... NONE $36.30Wages and salaries... $2000 $5.90Expendables... 400 13.80Facility expenses... 8100 4.60Administrative expenses... 6500 0.10Total expenses.. $17000 $24.40Actual results for FebruaryRevenue... $83,306Wages and salaries... $16,338Expendables... $33,446Fcility expenses... $19,212Administrative expenses... $6,602The wages and salaries in the planning budget for February would be closest to?
Seton Company manufactures a single product that sells for $360 per unit and whose total variable costs are $270 per unit. The company targets an annual after-taxincome of $1,620,000. The company is subject to a 20% income tax rate. Assume that fixed costs remain at $1,125,000. Compute the (1) unit sales to earn the targetafter-tax net income and (2) dollar sales to earn the target after-tax net income.
The slope of a long-run average total cost curve exhibiting diseconomies of scale is:Choose one answer.a. positive.b. infinite.c. negative.d. zero.
3. A director of a big bus company said, "For each 1 percent fareincrease,we lose 0.2 percent of our clients." We can conclude that:a. Demand for bus service will go up as fares increase.b. Demand is price elastic.c. A 10 percent fare hike will produce a 20 percent reduction inriders.d. The price elasticity is -5.e. None of the above.
Which of the following statements is CORRECT? A. If one firm has a higher debt ratio than another, we can be certain that the firm with the higher debt ratio will havethe lower TIE ratio, as that ratio depends entirely on the amount of debt a firm uses. B. A firm’s use of debt will have no effect on its profit margin. C. If twofirms differ only in their use of debt--i.e., they have identical assets, sales, operating costs, interest rates on their debt, and tax rates--but one firm has ahigher debt ratio, the firm that uses more debt will have a lower profit margin on sales and a lower return on assets. D. The debt ratio as it is generally calculatedmakes an adjustment for the use of assets leased under operating leases, so the debt ratios of firms that lease different percentages of their assets are stillcomparable. E. If two firms differ only in their use of debt--i.e., they have identical assets, sales, operating costs, and tax rates--but one firm has a higher debtratio, the firm that uses more debt will have a higher operating margin and return on assets.
What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company declare a 100% stock dividend or a 2-for-1split? Assume that either action is feasible.
Murphy Corporation manufactures two models of ultra-high fidelity speakers, the X200 model and the X99 model. Data regarding the two products follow:Direct Labor-Hours per UnitAnnual ProductionTotal DirectLabor-HoursModel X2002.51,000 units2,500Model X991.210,000 units12,00014,500Additional information about the company follows:a.Model X200 requires $100 in direct materials per unit, and Model X99 requires $60.b.The direct labor wage rate is $20 per hour.c.The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products.d.Model X200 is more complex to manufacture than Model X99 and requires the use of special equipment. Consequently, the company is considering theuse of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows:Activity Cost PoolActivityMeasureEstimatedOverhead CostMachine setupsNumber of setups$50,000Special processingMachine-hours95,000General factoryDirect labor-hours290,000$435,000Expected ActivityActivity MeasureModel X200Model X99TotalNumber of setups100400500Machine-hours47,500047,500Direct labor-hours2,50012,00014,500ebook &resourceseBook: USING ACTIVITY-BASED COSTING – LO 2eBook: USING ACTIVITY-BASED COSTING – LO 3eBook: USING ACTIVITY-BASED COSTING – LO 46.value:10.00 pointsRequired:1.Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products.a.Compute the predetermined overhead rate.Predetermined overhead rate$ per DLHb.Compute the unit product cost of each model.Model X200$ Model X99$ check my workreferencesebook &resourceseBook: USING ACTIVITY-BASED COSTING – LO 2eBook: USING ACTIVITY-BASED COSTING – LO 3eBook: USING ACTIVITY-BASED COSTING – LO 4WorksheetLearning Objective: 03-02 Compute activity rates for an activity-based costing system.Learning Objective: 03-04 Contrast the product costs computed under activity-based costing and conventional costing methods.Difficulty: HardLearning Objective: 03-03 Compute product costs using activity-based costing.7.value:10.00 points2.Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products.a.Compute the activity rate for each activity cost pool.Machine setup$ per setupSpecial processing$ per MHGeneral factory$ per DLHb.Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system.Model X200Model X99Overhead cost per unit$ $ c.Compute the unit product cost of each model.Model X200Model X99Unit product cost$ $
Osbourne Corporation has bonds on the market with 11.5 years to maturity, a YTM of 9.6 percent, and a current price of $947. The bonds make semiannual payments.Required: What must the coupon rate be on the bonds? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers inintermediate calculations. Round your answer to 2 decimal places
Zellar’s, Inc. Is considering two mutually exclusive projects, A and B. Project A costs $75,000 and is expected to generate $48,000 in year one and $45,000 in yeartwo. Project B costs $80,000 and is expected to generate $34,000 on year one, $37,000 in year two, $26,000 in year three, and $25,000 in year four. Zellar, Inc.’srequired rate of return for these projects is 10%. The internal rate of return for Project A is ________<BR><BR>A) 11.43%<BR>B) 13.87%<BR>C)15.81%<BR>D) 17.45%
Ralph has decided to put $2,400 a year (at the end of each year) into an IRA over his 40 year working life and then retire. What will Ralph have at retirement if theaccount earns 10 percent compounded annually?
The ALG Manufacturing Company has gathered the following information for the month of September:• 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs)• 60,000 units were started into production• 50,000 units were completed and transferred to the next department• The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.What are the equivalent units of production (EUP) for materials in the month of September assuming ALG uses weighted-average process costing?Answera. 52,000 b. 64,500 c. 66,000 d. 61,500
if there are higher levels of education for women, would opportunity cost increase or decrease?
A firm has 20,000,000 shares of stock outstanding at a price of $40 per share. They gave each shareholder the right to buy .2 shares of stock for $7 (5 rightswould give them the right to buy one share for $35. How much is each right worth?a) $.7b) $.83c) $.94d) $1.07e) $1.2
Lori, who is single, purchased five-year class property for $150,000 and seven-year class property for $400,000 on May 20, 2011. Lori expects the taxable incomederived from her business (without regard to the amount expensed under § 179) to be about $800,000. Lori wants to elect immediate § 179 expensing, but she doesn’t knowwhich asset she should expense under § 179. She elects not to take additional first-year depreciationa. Determine Lori’s total deduction if the § 179 expense is first taken with respect to the five-year class asset.b. Determine Lori’s total deduction if the § 179 expense is first taken with respect to the seven-year class asset.c. What is your advice to Lori?Please show calculations.
Our economy is in long run and short run equilibrium, Then...a-There is a strong expansion in the world economyb- Business expect huge profits in the near futurec- the government cuts spendingExplain seperately the effects of each of these events on real GDP and the price level
A local market research firm has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past, the firm hasassigned each project to a single member of its highly trained professional staff. This person would both gather and analyze the data. Using this approach, anexperienced person can complete an average of 10 such projects in an eight-hour day.The firm's management is thinking of assigning two people to each project in order to allow them to specialize and become more efficient. The process would require thedata gatherer to fill out a matrix on the computer, check it, and transmit it to the statistical analysis program for the analyst to complete. Data can be gathered onone project while the analysis is being completed on another, but he anslysis must be complete before the statistical analysis program can accept the new data. Aftersome proactice, the new process can be completed with a standard time of 20 minutes for the data gathering and 30 minutes for the analysis.How long would it take to complete 1,000 projects with each alternative? What would be the labor content (total numer of labor hours) for 1,000 projects for eachalternative?
"Management in action chapter" 7 page 229-230?