2.Knapp Bros, LLC is planning to issue new 20-year bonds. The current plan is to make the bonds non-callable, but this may be changed. If the bonds are made callableafter 7 years at a 7% call premium, how would this affect their required rate of return?
Please show the calculations not just the answer. 3. Paris Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.61 per unit ofoutput. The company's flexible budget performance report for last month showed a $6,840 unfavorable spending variance for supplies. During that month, 17,100 unitswere produced. Budgeted activity for the month had been 16,700 units. The actual cost per unit for indirect materials must have been: ???8. The standards for directlabor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were made and the labor efficiency variance was $8,000 F. The actual number ofhours worked during the past period was: ??? 9. Towne Corporation produces large commercial doors for warehouses and other facilities. In the most recent month, thecompany budgeted production of 6,900 doors. Actual production was 7,300 doors. According to standards, each door requires 5.6 machine-hours. The actual machine-hoursfor the month were 40,360 machine-hours. The standard supplies cost, and element of variable manufacturing overhead, is $4.20 per machine-hour. The actual suppliescost for the month was $168,251. The variable overhead efficiency variance for supplies cost is: ???
(Depreciation for Partial Periods–SL, Act., SYD, and DDB)The cost of equipment purchased by Charleston, Inc., on June 1, 2010 is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of itsservice life. Its service life is estimated at 7 years; its total working hours are estimated at 42,000 and its total production is estimated at 525,000 units. During2010 the machine was operated 6,000 hours and produced 55,000 units. During 2011 the machine was operated 5,500 hours and produced 48,000 units.Compute depreciation expense on the machine for the year ending December 31, 2010, and the year ending December 31, 2011, using the following methods.Straight-line2010:2011:Units-of-output2010:2011:Working hours2010:2011:Sum-of-the-years'-digits2010:2011:Declining balance (twice the straight-line rate)2010:2011:
Albatross Airline’s fixed operating costs are $5.8 million and its variable cost ratio is 0.20. The firm has $2 million in bonds outstanding with a coupon interestrate of 8 percent. Albatross has 30,000 shares of preferred stock outstanding, which pays a $2.00 annual dividend. There are 100,000 shares of common stockoutstanding.Revenues for the firm are $8 million and the firm is in the 40 percent corporate income tax bracket. Compute the following for the firm:a. Degree of operating leverageb. Degree of financial leveragec. Degree of combined leverage and interprets this value.Albatross Airline’s fixed operating costs are $5.8 million and its variable cost ratio is 0.20. The firm has $2 million in bonds outstanding with a coupon interestrate of 8 percent. Albatross has 30,000 shares of preferred stock outstanding, which pays a $2.00 annual dividend. There are 100,000 shares of common stockoutstanding.Revenues for the firm are $8 million and the firm is in the 40 percent corporate income tax bracket. Compute the following for the firm:a. Degree of operating leverageb. Degree of financial leveragec. Degree of combined leverage and interprets this value.
What are the tax implications to a holder of a special power of appointment?Choose one answer.a. They are subject to the annual $12,000 (in 2006) de minimus rule.b. They are subject to estate but not gift tax consequences.c. They are subject to estate but not generation skipping transfer tax consequences.d. There are no tax implications
look up for the numbers of the M1, M2 and M3 monetary aggregates in the European central bank euro area statistic for the most recent last-year period since theoutburst of the global financial crisis. have their growth rates been similar? what implications does this have for the conduct of monetary policy?
should monetary policy be used to stabilize asset prices given the volatility of the market in the past couple of years?
a potential benefit that comes from social regulations would bea. higher costsb. a cleaner environmentc. higher tax collectionsd. more layoffs
The historical percentage return for a single financial asset is equal to any dividends received minus the difference between the selling price and the purchase price,all divided by the purchase price.A)TrueB) False
cost estimates on a long-term contract may indicate that a loss will result on completion of the entire contract. in this case, the entire expected loss should be
Assume that XYZ corporation's $1000 face value 9% coupon rate bond matures in 10 years and sells for $1100. If you purchase the bond for $1100 and hold it to maturity,what will be your average annual rate of return on the investment?Please show all workings and calculations. Thanks.
2. If you deposit $450 per quarter at5% interest per year Compounded quarterly for 4 years how much willyouhave4,3015,9086,8887,916
Problem 1: For each of the following claims, please state if it is true, false or uncertain. Provide a brief written justification for your answer (a sentence or twowill suffice). (1) When the price of tomato sauce increases by 5%, the quantity demanded drops by 10%. Then, demand of for tomato sauce is elastic. (2) Notebooks havean inelastic demand. When the price of notebooks drops by 1%, the quantity demanded demand increases by 2%. (3) The quantity of coffee demanded drops by 5% after thatthe price increase by 5%. It means that the demand for coffee is unit elastic. (4) Demand a farmer’s wheat is inelastic. When the price of wheat increases by 20%, therevenue of the farmer increase by 5%. (5) If my income increases by 10%, then quantity of public transportation demanded drops by 5%. I can say that income elasticityof my demand for public transportation is negative and that public transportation is a normal good. (6) If the demand for cheese in France is perfectly inelastic, anincrease in the price of cheese will reduce the quantity demanded.
Problem 6The Death Star Business is considering the manufacture of a newtype of tennis ball. Each tennis ball would sell for $3.75 andwould require $1.75 in variablecosts. In addition, annualfixed costs associated with the project would total$64,000.Part aCalculate the break even point in unitsPart bCalculate the break even point in sales dollars.Part cCalculate the operating income or loss at a sales volume of30,000 tennis balls.Part dCalculate the number of tennis balls that must be sold to earn aprofit of $80,000.
At the beginningof 2012, the management of Patrick's Practice Sets has decided to begin a small manufacturing process that will print the practice sets and then bind them. Themanufacturing process begins with the printing of the practice sets. The practice sets are then collated and bound. After they are inspected, they are transferredto finished goods. This is a process costs system and the company elects to use the FIFIO method of accounting for product costs. Assume there are no significantmaterial or labor variances.DIrect materialsPaper is added 100% at the beginning of the processBinding is added 100% as the last step in the manufacturing processConversion costsDirect labor and factory overhead are added equally throughout the processAt the beginning of the accounting period, it is estimated that production will be 60,000 practice sets. Estimated factory overhead for the period is $30,000. Thisinformation is to be used to determine rate for the factory overhead.Direct materialsPurchase of paper 12,000 reams @ $3.00 a reamEach ream contains 500 sheets of paper and each practice set contains 100 sheets of paper.The company starts printing of 55,000 practice setsPurchase of 60,000 units of binding @ $.15Used 46,000 units of bindings this periodEstimated and actual direct labor costs totaled $96,500Actual factory overhead costs totaled $27,000Ending work in process is 100% complete as to paper25% complete as to conversion costs0% complete as to bindingThe finished good inventory at January 1, 2012 had a balance of 30,000 practice sets and at December 31, 2012 had an ending balance of 40,000 practice sets.The selling price of each practice set is $10.00Assume all material purchases and sales were made on account.Assume all other transactions were on the cash basisOperating expense this period totaled $80,000Prepare an equivalent units schedule. The schedule should have a minimum of the following information. (XXX represents a number)Whole Units Direct Materials Direct Materials Conversion CostsPaper BindingBeginning XXX XXX XXX XXXStart/Comp XXX XXX XXX XXXEnding XXX XXX XXX XXXCalculate the cost per equivalent unit for the direct materials (paper) direct materials (bindings) and conversion costs. (Do not round your numbers)
A downward sloping demand curve means _________.you have to lower your price to sell moredemand falls as output risesdemand rises as output risestotal revenue declines as price is lowered
In the table given below the Distribution Manager is expected to service these DCs as per the demands placed. If the actual sales after completing week one is asfollows, what would be the quantities that would need amendment as far as Distribution Manager is concerned to service for week two and onwards?After week one the actual sales to Forecasted sales for week one ratio is as under: Mumbai did 80 % of forecast , Lucknow did 75 % of forecast Kolkata did 60 % of weekone forecast Chennai did 125 % of forecast and Delhi did 150 % of week one forecastNote : Kolkata will receive transit stocks in week 2 .
Atlas Insurance wants to sell you an annuity, which will pay you $3,200 per quarter for 25 years. You want to earn a minimum rate of return of 6.5 percent. What is themost you are willing to pay as a lump sum today to buy this annuity? please show all workAnswer$151,008.24$157,636.81$167,489.11$173,008.80$179,827.59