Accounting concepts, conventions, and assumptions are fundamental principles that guide the preparation of financial statements. They ensure consistency, reliability, and comparability of financial information. Five important concepts are materiality, going concern, duality, consistency, and matching.
Materiality refers to the significance of an item or event in influencing the decisions of users. Going concern assumes that the entity will continue its operations in the foreseeable future. Duality states that every transaction has two aspects - a debit and a credit. Consistency requires the use of consistent accounting methods and practices over time. Matching principle ensures that expenses are matched with the revenues they help generate.1. Materiality: Materiality refers to the principle that information should be disclosed if its omission or misstatement would affect the decision-making of users. It focuses on the significance of an item or event in influencing economic decisions.
2. Going concern: The going concern concept assumes that an entity will continue its operations in the foreseeable future. It implies that financial statements are prepared under the assumption that the entity will not liquidate or cease its operations.
3. Duality: The duality concept, also known as the dual aspect concept, states that every transaction has two aspects - a debit and a credit. It ensures that the accounting equation (assets = liabilities + equity) remains in balance.
4. Consistency: The consistency principle requires the use of consistent accounting methods and practices over time. It ensures that financial statements of an entity can be compared across different periods and with those of other entities.
5. Matching: The matching principle states that expenses should be recognized in the same period as the revenues they help generate. It ensures that the costs incurred to earn revenue are properly matched with the related revenue in the financial statements.
These concepts, conventions, and assumptions provide a framework for preparing reliable and meaningful financial statements that accurately represent the financial position and performance of an entity. They contribute to the overall usefulness and transparency of financial information for users.
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If the overhead is over-applied, is the total overhead variance favourable or unfavourable? Favourable Unfavourable Neither
If overhead is over-applied, the total overhead variance is considered favorable.
Overhead is a term used to describe indirect costs incurred by a business that cannot be directly attributed to a specific product or service.
Overhead is usually applied to products or services based on a predetermined rate or allocation method.
The overhead variance measures the difference between the actual overhead costs incurred and the overhead costs applied to the products or services.
When overhead is over-applied, it means that more overhead costs have been allocated or assigned to the products or services than what was actually incurred. In this case, the total overhead variance is considered favorable.
A favorable overhead variance indicates that the actual overhead costs are lower than the allocated or applied overhead costs. This can be seen as a positive outcome, as it suggests that the business has managed to control its overhead costs effectively and has achieved cost savings.
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Which set of conditions will result in a bond with the lowest price risk?
a. A bond with 5% coupon rate and 10-year maturity
b. A bond with 2% coupon rate and 10-year maturity
c. A bond with 10% coupon rate and 10-year maturity
d. A bond with 2% coupon rate and 20-year maturity
The bond with the lowest price risk among the given options is a bond with a 10% coupon rate and 10-year maturity (option c).
Price risk refers to the sensitivity of a bond's price to changes in market interest rates. Bonds with different coupon rates and maturities will have varying degrees of price risk.
Option c, a bond with a 10% coupon rate and 10-year maturity, is likely to have the lowest price risk. A higher coupon rate implies that the bond's interest payments are a larger percentage of its face value, providing a higher level of income and potentially reducing the bond's sensitivity to changes in interest rates.
Additionally, a 10-year maturity suggests a shorter time period for investors to wait until the bond's principal is repaid, further reducing price risk.
In contrast, options a, b, and d have either lower coupon rates or longer maturities, which typically increase price risk. Bonds with lower coupon rates provide less income to offset potential price declines, while bonds with longer maturities expose investors to interest rate changes over a more extended period, amplifying price volatility.
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Which of the following is the basic governing document of a
corporation?
A.
the partnership agreement
B.
the articles of organization
C.
the Uniform Commercial Code (UCC)
D.
the articles of inco
The Articles of Incorporation are the basic governing document of a corporation. Here option D is the correct answer.
They are also referred to as the certificate of incorporation or corporate charter. The articles of incorporation outline the fundamental structure, purpose, and regulations of the corporation. They are typically filed with the appropriate state authority when incorporating a business.
The articles of incorporation typically include essential information such as the corporation's name, purpose, duration, business address, registered agent, and the number and types of shares of stock authorized to be issued.
They also specify the powers, rights, and responsibilities of shareholders, directors, and officers. Additionally, the articles of incorporation may include provisions related to the corporation's management, decision-making processes and any limitations or restrictions imposed on the corporation's activities. Therefore option D is the correct answer.
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Directions For the company you chose in the Module Two journal assignment, open the following documents:
- The balance sheet, income statement, and cash flow statement from the most recent fiscal quarter (from Mergent Online)
- The Ratios Most Recent Fiscal Qtr worksheet in the Project Two Financial Formulas workbook.
- For example, if the most recent fiscal quarter available is the third quarter in 2022, you'll compare those results to the same financial calculations from the third quarter in 2021.
Use the documents to calculate key financial ratios. Then open the following documents:
- The balance sheet, income statement, and cash flow statement from the same fiscal quarter one year ago
- The Ratios Same Fiscal Qtr 1 Year Ago worksheet
Use the documents to calculate the same financial ratios. Finally, compare those ratios and analyze your results. Specifically, you must address the following rubric criteria:
1. Financial Calculations. Calculate accurate financial formulas to assess the business's current financial health. Specifically, calculate the following formulas using the Ratios Most Recent Fiscal Qtr and the Ratios Same Fiscal Qtr 1 Year Ago worksheets in the Project Two Financial Formulas workbook:
A. Working capital
B. Current ratio
C. Debt ratio
D. Earnings per share
E. Price/earnings ratio
F. Total asset turnover ratio
G. Financial leverage
H. Net profit margin
I. Return on assets
J. Return on equity
To assess the company's current financial health, we need to calculate various financial ratios using the provided balance sheet, income statement, and cash flow statement from the most recent fiscal quarter and compare them to the same fiscal quarter one year ago.
To calculate the financial ratios, we will use the Ratios Most Recent Fiscal Qtr and the Ratios Same Fiscal Qtr 1 Year Ago worksheets in the Project Two Financial Formulas workbook, along with the balance sheet, income statement, and cash flow statement from the most recent fiscal quarter and the same fiscal quarter one year ago.
1. Working capital:
Working Capital = Current Assets - Current Liabilities
2. Current ratio:
Current Ratio = Current Assets / Current Liabilities
3. Debt ratio:
Debt Ratio = Total Debt / Total Assets
4. Earnings per share:
Earnings per Share = Net Income / Average Number of Common Shares Outstanding
5. Price/earnings ratio:
Price/Earnings Ratio = Market Price per Share / Earnings per Share
6. Total asset turnover ratio:
Total Asset Turnover Ratio = Net Sales / Average Total Assets
7. Financial leverage:
Financial Leverage = Average Total Assets / Average Total Equity
8. Net profit margin:
Net Profit Margin = Net Income / Net Sales
9. Return on assets:
Return on Assets = Net Income / Average Total Assets
10. Return on equity:
Return on Equity = Net Income / Average Total Equity
By calculating these financial ratios for both the most recent fiscal quarter and the same fiscal quarter one year ago, we can compare the results and analyze the company's financial health.
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Calculate cash flow from assets given the following information:
EBIT = $1,000; depreciation = $100; taxes = $240; beginning fixed assets = $30,000; ending fixed assets = $40,000; beginning net working capital = $10,000; ending net working capital = $8,000.
Cash flow from assets is $760, calculated by adding EBIT, depreciation, and change in net working capital, and subtracting taxes and change in fixed assets.
Here is the calculation of cash flow from assets:
Cash flow from assets = EBIT + depreciation - taxes - change in fixed assets - change in net working capital
= $1,000 + $100 - $240 - ($40,000 - $30,000) - ($10,000 - $8,000)
= $760
Therefore, the cash flow from assets is $760.
Here is a breakdown of the calculation:
EBIT is earnings before interest and taxes.
Depreciation is a non-cash expense that is deducted from EBIT to arrive at cash flow from operations.
Taxes are the amount of taxes paid during the period.
Change in fixed assets is the difference between the ending and beginning balance of fixed assets.
Change in net working capital is the difference between the ending and beginning balance of net working capital.
Cash flow from assets is a measure of how much cash a business generates from its assets. It is a important metric for investors and creditors to assess the financial health of a business.
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A Permanent life policy issued 30 years ago would endow at what age? A. 100. B. 65. C. 121. D. 95.
A permanent life policy issued 30 years ago would endow at age 95.
An endowment policy is a financial contract between a life insurance company and a policyholder. It's a type of life insurance policy that pays out a lump sum if the policyholder dies before the end of the policy's term, but also pays out a lump sum if they live past the end of the term. An endowment policy differs from other types of life insurance policies in that it is both an investment and a life insurance policy rolled into one. The policyholder makes regular payments to the insurance company, which invests the money and pays out the accumulated total at the end of the policy term.
A permanent life policy is a life insurance policy that remains in effect for the duration of the policyholder's life, as long as the policyholder pays the premiums. The policy can also build cash value over time, which the policyholder can borrow against or withdraw.
A Permanent life policy issued 30 years ago would endow at age 95. This is because endowment policies typically have terms of 20-25 years, and the policy would have matured after this period had elapsed. The age of endowment may be higher, up to 100, based on the terms of the policy.
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A company purchased a delivery van for $14,000 with a salvage value of $2,000 on October 1, Year 1 . It has an estimated useful life of 4 years. Using the straight-line method, how much depreclation expense should the company recognize on December 31 . Year 1 ? $63. $750 $3,500. $3,000. $1,167.
The depreciation expense that the company should recognize on December 31, Year 1, using the straight-line method, is $750. This is calculated by subtracting the salvage value ($2,000) from the purchase cost ($14,000), and then dividing the result by the useful life (4 years) of the delivery van: ($14,000 - $2,000) / 4 = $3,000 / 4 = $750.
To calculate depreciation expense using the straight-line method, you first need to determine the depreciable cost of the asset. In this case, the depreciable cost is the purchase cost of the delivery van minus the salvage value.
Purchase cost - Salvage value = Depreciable cost
$14,000 - $2,000 = $12,000
Next, you divide the depreciable cost by the useful life of the asset to determine the annual depreciation expense.
Depreciable cost / Useful life = Depreciation expense per year
$12,000 / 4 years = $3,000 per year
Since the question asks for the depreciation expense on December 31, Year 1, you need to consider the portion of the year that has elapsed. Assuming a full year has 365 days, the elapsed time from October 1 to December 31 is 91 days.
Elapsed days / Total days in a year = Proportion of the year
91 days / 365 days = 0.25
Finally, you multiply the annual depreciation expense by the proportion of the year to find the depreciation expense for that specific period.
Depreciation expense per year x Proportion of the year = Depreciation expense on December 31, Year 1
$3,000 x 0.25 = $750
Therefore, the company should recognize a depreciation expense of $750 on December 31, Year 1.
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3. A project requires an initial investment of $200,000 and is expected to generate the following net cash inflows: PROJECT A Year 1:60,000 Year 2:60,000 Year 3:80,000 Year 4:30,000 Year 5:30,000 Required: Compute the Pay back Period if the minimum desired rate of return is 10%. PVIF .909, .826,.751,.680,.623
The payback period is the time it takes to recover the initial investment. In this case, we need to calculate the cumulative net cash inflows until they equal or exceed the initial investment of $200,000.
Year 1: $60,000
Year 2: $60,000
Year 3: $80,000
Year 4: $30,000
Year 5: $30,000
To calculate the payback period, we add the net cash inflows until they reach or exceed $200,000. In this case, it takes 3 years to reach that amount.
To calculate the payback period, we sum up the net cash inflows until they equal or exceed the initial investment.
Year 1: $60,000
Year 2: $60,000
Year 3: $80,000
By the end of Year 3, the cumulative net cash inflows equal $200,000, recovering the initial investment. The payback period is therefore 3 years.
The minimum desired rate of return of 10% is not directly used to calculate the payback period. It is a criterion that determines whether the payback period is acceptable or not. In this case, if the payback period is less than the desired rate of return, the project is considered acceptable.
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Start by determining the ending inventory of raw materials by calculating the direct materials used. Data table - Raw materials, $75,000 - Work in process, $226,000 - Finished goods, $213,000 He remembers several schedules he learned in college that may help him get started. company controller, is anxious to salvage whatever records she can to support an insurance claim for the destroyed inventory. She is standing in what is left of the Accounting Department wtih Trent Parker, the cost accountant. "I didn't know mud could smell so bad," Trent says. "What should I be looking for?" "Don't worry about beginning inventory numbers," responds Louise. "We'll get them from last year's annual report. We need first-quarter cost data." "I was working on the first-quarter results just before the storm hit," Trent says. "Look, my report's still in my desk drawer. But all I can make out is that for the first quarter, material purchases were $533,000 and that direct labor, manufacturing overhead (other than indirect materials), and total manufacturing costs to account for were $551,000;$218,000; and $1,491,000, respectively. Wait, and cost of goods available for sale was $1,615,000." "Great," says Louise. "I remember that sales for the period were approximately $1.8 million. Given our gross profit of 30%, that's all you should need." Trent is not sure about that, but decides to see what he can do with this information.
We don't have the direct materials used information directly available. We need additional data or calculations to find the ending inventory of raw materials.
To determine the ending inventory of raw materials, we can use the information provided by Trent. We need to calculate the direct materials used in production for the first quarter.
Cost of Goods Available for Sale = Beginning Inventory + Purchases
Given that the Cost of Goods Available for Sale is $1,615,000 and Trent mentioned that the purchases were $533,000, we can calculate the beginning inventory:
Beginning Inventory = Cost of Goods Available for Sale - Purchases
Beginning Inventory = $1,615,000 - $533,000
Beginning Inventory = $1,082,000
Now, we can calculate the direct materials used:
Direct Materials Used = Beginning Inventory + Purchases - Ending Inventory
Since we are determining the ending inventory, we need to rearrange the formula:
Ending Inventory = Beginning Inventory + Purchases - Direct Materials Used
However, We don't have the direct materials used information directly available. We need additional data or calculations to find the ending inventory of raw materials.
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Distinguish between demand-pull and cost-push inflation. Which of the two types is most likely to be associated with a negative GDP gap? Which of the two types is most likely to be associated with a positive GDP gap (in which actual GDP exceeds potential GDP?) long answer needed
Demand-pull inflation is caused by an increase in aggregate demand exceeding the available supply, leading to an overall increase in prices. Cost-push inflation, on the other hand, is caused by an increase in production costs, such as wages or raw materials, which leads to higher prices for goods and services.
Demand-pull inflation is most likely to be associated with a negative GDP gap. A negative GDP gap occurs when actual GDP falls below potential GDP. In this scenario, there is a deficiency in aggregate demand relative to the economy's capacity to produce goods and services. Demand-pull inflation arises when aggregate demand outpaces the available supply, and it is commonly seen during periods of economic expansion or when there is excess liquidity in the economy. However, when there is a negative GDP gap, it indicates that there is slack in the economy, and demand-pull inflation is less likely to be a concern.
Cost-push inflation is most likely to be associated with a positive GDP gap, where actual GDP exceeds potential GDP. A positive GDP gap occurs when aggregate demand exceeds the economy's productive capacity. Cost-push inflation arises when there is an increase in production costs, such as higher wages or raw material prices, which leads to higher production costs for businesses. As a result, businesses pass on these increased costs to consumers through higher prices. When the economy is operating above its potential level, businesses may face capacity constraints, and increased production costs can contribute to cost-push inflation.
Demand-pull inflation occurs when aggregate demand increases, leading to higher prices. This can happen due to factors such as increased consumer spending, expansionary monetary policy, or fiscal stimulus. On the other hand, cost-push inflation occurs when production costs rise, leading to higher prices. Factors that can cause cost-push inflation include increases in wages, raw material prices, or taxes on production.
When the economy experiences a negative GDP gap, it indicates that there is spare capacity or unemployment in the economy. In such a situation, demand-pull inflation is less likely because there is not enough aggregate demand to drive up prices. On the other hand, when the economy operates above its potential level, there is increased pressure on resources, and cost-push inflation becomes more likely. As businesses face capacity constraints and higher production costs, they pass on these costs to consumers, leading to inflationary pressures.
Demand-pull inflation occurs when aggregate demand exceeds supply, while cost-push inflation arises from increased production costs. A negative GDP gap is associated with deficient aggregate demand and is less likely to be accompanied by demand-pull inflation. Conversely, a positive GDP gap indicates excess demand and is more likely to be associated with cost-push inflation, as increased production costs contribute to higher prices. Understanding these distinctions can help policymakers and economists identify the causes and implications of inflationary pressures in an economy.
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From April 1 thru October 31, Will County Highway Department hires temporary employees to mow and clean the right of way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current year operations:
Month Miles Mowed and Cleaned Labor Costs
April 350 $8,000
May 300 $7,500
June 400 $9,000
July 250 $5,500
August 375 $8,500
September 200 $5,000
October 100 $4,800
Required:
A - Use the information from the High and Low volume months to develop a cost estimating equation for monthly labor costs.
B - Plot the data on a scatter diagram. Using the information from representative high and low volume months, use the high-low method to develop a cost-estimating equation for monthly labor costs.
C - What factors might have caused the difference in the equations developed for requirements A and B?
D - Adjust the equation developed in requirement B to incorporate the effect of an anticipated 7 percent increase is wages.
A) The cost estimating equation for monthly labor costs can be developed using the high and low volume months. Let's calculate the variable labor cost per mile of road:
High volume month: June
Miles: 400
Labor Costs: $9,000
Low volume month: September
Miles: 200
Labor Costs: $5,000
Variable labor cost per mile = (Labor Costs of High Month - Labor Costs of Low Month) / (Miles of High Month - Miles of Low Month)
= ($9,000 - $5,000) / (400 - 200)
= $4,000 / 200
= $20 per mile
Therefore, the cost estimating equation for monthly labor costs is:
Labor Costs = $20 × Miles
B) Plotting the data on a scatter diagram:
Month Miles Labor Costs
------------------------------------
April 350 $8,000
May 300 $7,500
June 400 $9,000
July 250 $5,500
August 375 $8,500
September 200 $5,000
October 100 $4,800
Using the high-low method with the representative high and low volume months (June and September):
Variable labor cost per mile = (Labor Costs of High Month - Labor Costs of Low Month) / (Miles of High Month - Miles of Low Month)
= ($9,000 - $5,000) / (400 - 200)
= $4,000 / 200
= $20 per mile
Therefore, the cost-estimating equation for monthly labor costs is:
Labor Costs = $20 × Miles
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Because of Covid-19. the US gavernment provided a series of stimulus packagos to got money to the hands of fhe American people. This action will inpact ioanable funds and Shilt the demand curve lo the fight and increase interest rates. Shif the demand curve to the left and increase interest rates: shin the supply carve to the right and increase interest rates Shiff the supply curve to the left and increase interest rates None of that above QUESTION 2 As unterest rates dectease, the demand of loanable funds increases. True False:
The action of providing stimulus packages to the American people in response to Covid-19 will shift the demand curve to the right and increase interest rates. As interest rates decrease, the demand for loanable funds increases. This statement is true
When the government provides stimulus packages, it injects money into the economy, increasing the amount of disposable income available to individuals and businesses. This increase in disposable income leads to an increase in demand for goods and services, which in turn leads to an increase in demand for loanable funds. As the demand for loanable funds increases, lenders can charge higher interest rates, shifting the demand curve to the right. This shift in the demand curve results in an increase in interest rates.
As interest rates decrease, the demand for loanable funds increases. This statement is true.
When interest rates decrease, borrowing becomes cheaper, making it more attractive for individuals and businesses to take out loans. This increased demand for loanable funds leads to a shift in the demand curve to the right, resulting in an increase in interest rates. Therefore, as interest rates decrease, the demand for loanable funds increases.
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IMBER CRUNCH
The demand and the supply of timber for construction in Australia are given by
QD =120 – 20P
QS = 40P
We assume the market is perfectly competitive.
2.5. Due to Covid lockdowns, interstate transportation becomes difficult. Meanwhile, construction work is viewed as essential and therefore not affected by lockdowns. Use a demand and supply graph to explain how the lockdowns affect the equilibrium price and quantity.
2.6. After the equilibrium change in 2.5, the government introduces tax benefits for house renovation to stimulate the economy. As a result, there is an increase in construction projects. How do the tax benefits change the equilibrium in the timber market?
2.7. Bushfires are more likely to happen in summer. If a bushfire happens again in the coming summer, how would you expect it to affect the timber market?
2.5: Covid lockdowns hinder transit as construction continues. P* becomes P1, whereas Q* becomes Q1. 2.6: Home remodeling tax benefits promote construction. Increased timber demand. The graph shows the demand curve shifting right from D1 to D2, raising the equilibrium price and quantity. Summer bushfires. A summer wildfire will shift the supply curve left. Thus, P2 becomes P3 and Q2 becomes Q3.
2.5: Due to Covid lockdowns, the construction industry continues to operate while transportation becomes difficult. With a decrease in supply (QS) and no change in demand (QD), the equilibrium price increases from P* to P1, while the quantity decreases from Q* to Q1.
2.6: The tax benefits for the house renovation will stimulate the economy, leading to an increase in construction projects. As a result, the demand for timber will increase. As shown in the graph below, the demand curve shifts to the right from D1 to D2, resulting in an increase in both equilibrium price and quantity.
2.7: Bushfires are more likely to happen in summer. If a bushfire happens again in the coming summer, it will have a significant impact on the supply of timber, resulting in a leftward shift of the supply curve from S1 to S2. As a result, the equilibrium price will increase from P2 to P3, while the quantity decreases from Q2 to Q3.
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19. Which statement is NOT true about a general partnership;
a. all general partners are agents of the partnership;
b. all general partners have an equal right to participate in management;
c. a corporation can be a general partner;
d. there must be a written partnership agreement.
20. Tullis and Shivy are physicians who have formed a general partnership. In the event one of them commits malpractice,
a. the other is vicariously liable;
b. the other is liable to the extent of their contribution in the partnership;
c. the other has no liability;
d. the other is only liable if stipulated in the partnership agreement.
37. A corporation is owned by its:
a. directors;
b. officers;
c. members;
d. shareholders;
38. Furiya is both a director and an officer of ABC Corporation. She is therefore a(n)__________director.
a. inside;
b. outside;
c. CEO;
d. permanent.
19 d. there must be a written partnership agreement.
20 b. the other is liable to the extent of their contribution in the partnership.
37 d. shareholders.
38 a. inside director.
EXPLAINATION :
19 The statement that is NOT true about a general partnership is:
d. there must be a written partnership agreement.
While it is advisable to have a written partnership agreement for clarity and to establish the rights and responsibilities of partners, a general partnership can exist even without a written agreement.
General partnerships can be formed based on an oral agreement or simply by the actions and conduct of the partners. However, having a written partnership agreement is recommended to avoid misunderstandings and provide a clear framework for the partnership's operations.
20 In the event one partner commits malpractice in a general partnership:
b. the other is liable to the extent of their contribution in the partnership.
In a general partnership, each partner is jointly and severally liable for the actions and liabilities of the partnership. This means that if one partner commits malpractice, both partners can be held liable for the resulting damages. The liability is not limited to the extent of their contribution in the partnership, as stated in option b. Both partners share equal responsibility for the partnership's actions and obligations.
37 A corporation is owned by its:
d. shareholders.
The shareholders are the owners of a corporation. They hold shares of the company's stock, which represent their ownership interest in the corporation. Shareholders have certain rights, such as voting rights, the right to receive dividends, and the right to participate in the distribution of the corporation's assets in case of liquidation.
38 Furiya, who is both a director and an officer of ABC Corporation, would be considered an:
a. inside director.
An inside director refers to a director who is also an officer or employee of the corporation. In this case, as Furiya holds both positions of director and officer in ABC Corporation, she would be classified as an inside director. Inside directors often have a deep understanding of the corporation's operations and play a significant role in the management and decision-making processes.
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Create a stakeholder register for the following project, by listing at least 5 stakeholders (internal/external), and power/interest.
Project: Constructing a football stadium in downtown Vancouver.
Stakeholders for the construction of a football stadium in downtown Vancouver include the city government, local residents, football club, construction companies, and environmental organizations, with varying levels of power and interest.
Stakeholder Register for Constructing a Football Stadium in Downtown Vancouver:
1. City Government (Internal Stakeholder)
Power: High | Interest: High
The city government has significant power and interest in the project as it will oversee the construction and grant necessary permits. They are responsible for ensuring compliance with regulations, managing traffic, and addressing any concerns raised by local residents.
2. Local Residents (External Stakeholder)
Power: Medium | Interest: High
Local residents living near the proposed stadium site have a high interest in the project's outcome. They may be concerned about increased noise levels, traffic congestion, and potential disruptions during construction.
Their input will be crucial in addressing these concerns and maintaining positive community relations.
3. Football Club (Internal Stakeholder)
Power: High | Interest: High
The football club, which will use the stadium as its home venue, has a high stake in the project's success. They have the power to influence design decisions, facility requirements, and operational aspects of the stadium.
Their interest lies in creating a state-of-the-art facility that meets the team's needs and enhances the fan experience.
4. Construction Companies (External Stakeholder)
Power: High | Interest: Medium
Various construction companies bidding for the project have a high power as they will be responsible for the stadium's actual construction.
While their interest may be more business-oriented, including securing the contract and ensuring profitability, they also have an interest in delivering a high-quality stadium within the given timeframe.
5. Environmental Organizations (External Stakeholder)
Power: Medium | Interest: Medium
Environmental organizations, both local and national, have a medium power and interest in the project due to concerns about potential ecological impacts.
They may advocate for sustainable construction practices, preservation of green spaces, and mitigation of any environmental harm caused by the stadium's development.
This stakeholder register provides a starting point for identifying key stakeholders in the project and assessing their power and interest levels.
It is important to note that stakeholder analysis should be an ongoing process, with regular updates and engagement to ensure effective stakeholder management throughout the project.
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Quiz Company's manufacturing process is organized into two producing departments ( P1 and P2 ) and two service departments (S1 and S2). Overhead costs from S1 are allocated based on machine hours. Overhead costs from S2 are allocated based on square footage. The following information is available for the four departments. Note: For all questions, round allocation ratios to four decimal points and round all dollar amounts to the nearest dollar. Determine the total overhead cost for P1 using the direct method to allocate service department costs.
The total overhead cost for department P1 using the reciprocal method to allocate service department costs is $893,964.
First, we calculate the allocation ratios for each service department.
Allocation ratio for S1 = Machine hours for P1 ÷ Machine hours for S1 = 6900 ÷ 2000 = 3.4500
Allocation ratio for S2 = Square footage for P1 ÷ Square footage for S2 = 4000 ÷ 1700 = 2.3529
Next, we allocate the overhead costs from the service departments to department P1 using the reciprocal method.
Overhead cost allocated from S1 to P1 = Allocation ratio for S1 × Overhead cost for S1 = 3.4500 × $150,000 = $517,500
Overhead cost allocated from S2 to P1 = Allocation ratio for S2 × Overhead cost for S2 = 2.3529 × $160,000 = $376,464
Finally, we calculate the total overhead cost for department P1 by summing up the allocated overhead costs from both service departments.
Total overhead cost for P1 = Overhead cost allocated from S1 to P1 + Overhead cost allocated from S2 to P1
Total overhead cost for P1 = $517,500 + $376,464 = $893,964.
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The complete question is:
Quiz company’s manufacturing process is organized into two producing departments (P1 and P2) and two service departments (S1 and S2). Overhead costs from S1 are allocated based on the machine hours. Overhead costs from S2 and allocated based on square footage. The following information is available for the four departments:
Service departments:
Overhead costs for S1 - $150,000
Overhead costs for S2 - $160,000
Machine hours for S1 - 2000
Machine hours for S2 - 1000
Square footage for S1 - 2000
Square footage for S2 - 1700
Producing departments:
Overhead cost for P1 - $98,000
Overhead cost for P2 - $56,000
Machine hours for P1 - 6900
Machine hours for P2 - 3100
Square footage for P1 - 4000
Square footage for P2 - 6000.
Note- for all questions, round allocation ratios to four decimal points and round all dollar amounts to the nearest dollar.
Determine the total overhead cost for P1 using the reciprocal method to allocate service department costs.
Note - give your answer using dollar signs and commas but no decimal points. Example - $12,345.
On January 1, 2010, Ball Co. leases a bulldozer from CAT Co. for 4 years at $10,000 per year. The lease payments are due at the end of each year. The useful life of that bulldozer is 5 years. There is no bargain purchase option at the end of the lease term. The market interest rate is 10%. Ball Co. uses straight-line depreciation. What should Ball Co. recognize for this lease in journal entries on 1/1/2010 and 12/31/2010?
Ball Co. should record the following journal entry to reflect the lease payment made on December 31, 2010:
Lease Liability $10,000
Cash $10,000
On January 1, 2010, when the lease agreement begins, Ball Co. should recognize the following journal entry:
Lease Asset (Right-of-use asset) $40,000
Lease Liability $40,000
The lease asset is recorded at the present value of the lease payments, which is calculated as follows:
$10,000 × PV factor (n=4, i=10%) = $10,000 × 3.1699 = $31,699
The lease liability is initially recognized as the present value of the lease payments, which is the same amount as the lease asset.
On December 31, 2010, at the end of the first year, Ball Co. should recognize the following journal entry:
Depreciation Expense $6,340 ($31,699 / 5)
Accumulated Depreciation $6,340
The straight-line depreciation expense is calculated by dividing the initial lease asset value ($31,699) by the useful life of the bulldozer (5 years). Accumulated depreciation is a contra-asset account that accumulates the depreciation expense over time.
The lease liability is reduced by the lease payment amount made at the end of the year, and cash is decreased by the same amount.
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The Gaps Model featured in this assignment is a useful way to audit the service performance and capabilities of an organization. The model has been used by many companies as an assessment or service audit tool because it is comprehensive and offers a way for companies to examine all the factors that influence service quality. To use the tool, a company documents what it knows about each gap and the factors that affect the size of the gap. Although you will learn much more about each of these gaps in the duration of the Services Marketing course, we provide here a basic gaps audit.
TASKS
You are required to use this audit with a named existing Services Organisation to determine its service quality gaps. Choose any operating Service Organization within Zambia to interview, and use the Integrated Gaps Model of Service Quality below as a framework.
The score for each gap should be compared to the maximum score possible. Are particular gaps weaker than others?
Ask the manager to identify the deficient provider gaps his organization from the list in the audit. Which areas in each gap need attention?
Which of the above does the manager consider the most troublesome?
What does the company do to try to address the problems?
Suggest some recommendations for improvement to the service organisation under review.
Based on the recommendations for improvement suggested in F. above, develop a Service Blueprint depicting the Improved Service Process.
The audit of service quality gaps helps identify areas of weakness and deficiency in a named existing Services Organization, allowing for recommendations and improvements to be made.
The Gaps Model of Service Quality is a valuable tool for assessing the performance and capabilities of a service organization. By using this model, companies can thoroughly examine the factors that influence service quality and identify gaps that may exist in their service delivery.
To conduct the audit, a specific Services Organization in Zambia is chosen for an interview. The Integrated Gaps Model of Service Quality is used as a framework to evaluate the organization's service quality gaps. Each gap is scored and compared to the maximum score possible, allowing for a clear assessment of the organization's strengths and weaknesses in each area.
The manager of the organization is asked to identify the deficient provider gaps based on the audit. By analyzing the results, the manager can pinpoint the specific areas within each gap that require attention and improvement. Additionally, the manager is asked to highlight the most troublesome gap, indicating the area that poses the greatest challenge for the organization.
In response to the identified gaps and challenges, the company implements strategies and actions to address the problems. These measures can include training programs, process improvements, enhanced communication, customer feedback systems, and more. The goal is to bridge the gaps and improve the overall service quality of the organization.
Based on the recommendations for improvement suggested in the audit, it is possible to develop a Service Blueprint depicting an improved service process. This blueprint outlines the steps and interactions involved in delivering the service, highlighting the modifications and enhancements suggested to close the identified gaps and enhance the customer experience.
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if you were a decision maker, a city planner, what would you add
to or remove from the place you made observation to make it a
better place"?
As a city planner, there are several factors to consider in order to make a place a better and more livable city. Here are some potential additions and removals that could improve a city:
1. Public Transportation: Enhancing and expanding public transportation systems can reduce traffic congestion, lower pollution levels, and provide accessible transportation options for all residents. This could involve adding more bus routes, establishing light rail or subway systems, or implementing bike-sharing programs.
2. Green Spaces: Increasing the number of parks, gardens, and green spaces promotes a healthier and more sustainable environment. These areas offer opportunities for recreation, exercise, and relaxation while improving air quality and providing habitats for wildlife.
3. Pedestrian and Bicycle Infrastructure: Creating safe and convenient pathways for pedestrians and cyclists can encourage active transportation, reduce reliance on cars, and improve public health. This may involve building sidewalks, bike lanes, and pedestrian-friendly intersections.
4. Mixed-Use Development: Encouraging mixed-use zoning can create vibrant neighborhoods where people can live, work, and play within close proximity. This helps reduce commuting times, fosters community interaction, and supports local businesses.
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6-8lines with 3 points-Why are tropical countries disadvantaged
in technological development-Economics economics economics
Tropical countries are often at a disadvantage when it comes to technological development. There are various reasons for this, and some of them are Limited Resources, Climate, and Environment, Lack of Economic Development.
1. Limited Resources: One of the main reasons why tropical countries are disadvantaged in technological development is due to limited resources. Many of these countries do not have access to the same resources as developed countries. This makes it difficult for them to invest in research and development, which is essential for technological progress.
2. Climate and Environment: The climate and environment in tropical countries can also hinder technological development. High temperatures, humidity, and heavy rainfall can affect the performance of electronic equipment, making it difficult to maintain and repair. In addition, natural disasters such as hurricanes and floods can destroy technological infrastructure.
3. Lack of Economic Development: Another factor that can hinder technological development in tropical countries is a lack of economic development. Many of these countries struggle with poverty, and this makes it difficult for them to invest in education and technology. Without a strong economy, it is challenging to attract investors or access capital to fund research and development.
In conclusion, the lack of resources, challenging climate and environment, and low economic development are the main reasons why tropical countries are disadvantaged in technological development.
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Dell and HP must both simultaneously prices for their new laptops. They can both either choose to set a Low or High price. The payoffs are as follows. If both firms set a Low price, Dell gets 5 and HP6. If both firms set a High price, the payoffs are 7 to Dell and 8 to HP. If Dell sets a High price and HP chooses Low, the payoffs are 3 to Dell and 10 to HP. If Dell sets a Low price and HP opts for High, the payoffs are 9 to Dell and 1 to HP. Which statement is true?
O The outcome of the game is (Low. High), where the first strategy is Dell's and the second HP s.
O The outcome of the game is (High, Low, where the first strategy is Dell's and the second HP's.
O The outcome of the game is (High, High), where the first strategy is Dell's and the second HP's.
O The outcome of the game is (Low. Low), where the first strategy is Deli's and the second HP's
O None of the above.
The outcome of the game between Dell and HP is (High, Low), with the first strategy being Dell's and the second being HP's.
The correct statement is: The outcome of the game is (High, Low), where the first strategy is Dell's and the second is HP's.
Looking at the payoffs for each combination of strategies, we can determine the outcome of the game. If both firms set a Low price, Dell receives a payoff of 5 and HP receives a payoff of 6.
If both firms set a High price, Dell receives a payoff of 7 and HP receives a payoff of 8. If Dell sets a High price and HP chooses Low, Dell gets a payoff of 3 and HP gets a payoff of 10. If Dell sets a Low price and HP opts for High, Dell receives a payoff of 9 and HP receives a payoff of 1.
Among these options, the highest payoff for Dell occurs when it sets a Low price and HP sets a High price, resulting in a payoff of 9. The highest payoff for HP occurs when it sets a Low price and Dell sets a High price, resulting in a payoff of 10. Therefore, the outcome of the game is (High, Low), with Dell setting a High price and HP setting a Low price.
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Refer to the attached MACY's and TJ Max Financial Statements Use the following criteria to conclude whether you are going to grant the $1.5B loan QUANTITATIVE UNDERWRITING CRITERIA
1. LT Debt / Equity <2.1
2. EBITDA/Interest >4.0
3. 5yr average Quick Ratio >0.80
4. LT Debt/EBITDA <4.5
5. 5yr average EBITDA margin > 10%
6. 5yr average Net Profit Margin (NPM) > 5%
7. 5yr average Operating CF / 5yr average Current Liabilities >50%
I would not grant the $1.5B loan to either Macy's or TJ Maxx. Both companies fail to meet several of the criteria, including LT Debt/Equity < 2.1, EBITDA/Interest > 4.0, and 5yr average Quick Ratio > 0.80.
The quantitative underwriting criteria are used to assess the creditworthiness of a borrower. The criteria are designed to measure a borrower's ability to repay a loan, as well as their willingness to repay the loan.
Macy's and TJ Maxx both have high levels of debt relative to their equity. This means that they have a large amount of debt that they need to repay, and they may not have the resources to do so if their business experiences a downturn.
Macy's and TJ Maxx also have low EBITDA margins. This means that they do not generate a lot of profit from their operations. This could make it difficult for them to generate enough cash flow to repay the loan.
Finally, Macy's and TJ Maxx both have low quick ratios. This means that they do not have a lot of liquid assets available to repay their debts. This could make it difficult for them to repay the loan if they experience a sudden cash crunch.
For all of these reasons, I would not grant the $1.5B loan to either Macy's or TJ Maxx.
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Let’s assume that you are a manager of a U.S. service business. Which of the four
schools of thoughts in this class will be most important for you? In addition, discuss two
or three social and/or technological trends characterizing the 21st century labor
practices with specific examples and at least two labor relations concepts.
As a manager of a U.S. service business, the human relations school of thought would be essential. Two significant labor practices in the 21st century are remote work and the gig economy, which have been influenced by social and technological trends. Key labor relations concepts include collective bargaining and employee engagement, which are crucial for fostering positive relationships and ensuring the well-being of employees in the organization.
In the 21st century, two key social and technological trends characterize labor practices: Remote Work: The increasing prevalence of remote work, accelerated by advancements in technology, has transformed the way people work. The COVID-19 pandemic further accelerated this trend, with many companies adopting remote work policies. Remote work allows employees to work from anywhere, promoting flexibility and work-life balance. It also presents challenges in terms of maintaining collaboration and communication within teams.
Gig Economy: The gig economy refers to the rise of temporary, freelance, and on-demand work arrangements. Technological platforms such as Uber, Airbnb, and TaskRabbit have facilitated the gig economy, enabling individuals to offer their services on a flexible basis. While it provides opportunities for flexible work arrangements and entrepreneurship, it also raises concerns about job security, benefits, and labor rights for gig workers.
Labor Relations Concepts:
Collective Bargaining: Collective bargaining refers to the negotiation process between employers and labor unions to determine employment terms and conditions. It involves discussions on wages, working hours, benefits, and other employment-related matters. Effective collective bargaining ensures a fair and equitable relationship between employers and employees.
Employee Engagement: Employee engagement focuses on creating a positive work environment where employees feel motivated, valued, and connected to the organization. Engaged employees are more likely to be productive, committed, and satisfied with their work. Strategies for promoting employee engagement include open communication, recognition programs, and opportunities for professional growth.
Therefore, as a manager of a U.S. service business, the human relations school of thought would be essential. Two significant labor practices in the 21st century are remote work and the gig economy, which have been influenced by social and technological trends.
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Solve the following problems about mortgage-backed securities.
Suppose Federal National Mortgage Association sold the Mortgage-Backed Securities (MBS) backed by fixed-rate mortgages with the MBS having the following features:
Original mortgage balance = $200,000,000
Weighted average coupon rate (WAC) = 8%
Weighted average maturity (WAM) = 150 months
Current prepayment speed = 150 PSA
Pass-through rate = PT Rate = 7%
(1) What is the prepayment and amount of total cash flows to the investors of the MBS for month 2? (5 points) (I will NOT grade a separate Excel file, please copy and paste your Excel sheet or write down your answers here)
(2) What is the total amount of the compensation to the issuer of the MBS for month 2 (use the spread between WAC and PT rate)?
(1) To calculate the prepayment and amount of total cash flows to the investors of the MBS for month 2, we need to consider the prepayment speed and the scheduled principal and interest payments for the given MBS.
The prepayment speed is given as 150 PSA (Public Securities Association), which represents the percentage of the remaining principal balance that is expected to be prepaid annually. In this case, 150 PSA means 1.5% of the remaining principal balance will be prepaid each month.
To calculate the prepayment for month 2, we first determine the remaining principal balance after month 1. Assuming no prepayment in month 1, the remaining principal balance is the original mortgage balance of $200,000,000.
Prepayment for month 2 = Remaining Principal Balance x Prepayment Speed
Prepayment for month 2 = $200,000,000 x 1.5% = $3,000,000
The total cash flows to the investors for month 2 include the scheduled principal and interest payment, as well as the prepayment amount. The scheduled principal and interest payment can be calculated using the pass-through rate.
Scheduled Principal and Interest Payment = Remaining Principal Balance x PT Rate
Scheduled Principal and Interest Payment = $200,000,000 x 7% = $14,000,000
Total Cash Flows to Investors for Month 2 = Scheduled Principal and Interest Payment + Prepayment Amount
Total Cash Flows to Investors for Month 2 = $14,000,000 + $3,000,000 = $17,000,000
(2) The compensation to the issuer of the MBS is calculated based on the spread between the Weighted Average Coupon (WAC) rate and the Pass-Through (PT) rate. The spread represents the difference between the interest rate the issuer pays to investors (WAC) and the interest rate it receives from the underlying mortgages (PT rate).
Compensation to the issuer for month 2 = Remaining Principal Balance x (WAC rate - PT rate)
Compensation to the issuer for month 2 = $200,000,000 x (8% - 7%) = $2,000,000
In summary, for month 2, the prepayment for the MBS is $3,000,000, and the total cash flows to the investors amount to $17,000,000. Additionally, the compensation to the issuer of the MBS for month 2 is $2,000,000, which represents the spread between the WAC rate and the PT rate.
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In 2002 the euro exchange rate was about $0.87 (i.e., 0.87 dollars per euro). In 2009, the exchange rate was about $1.33. If a hand-blown glass item from Italy cost about €50 in 2002. Ignoring shipping costs and taxes, a consumer in the United States could have purchased this glass for what price?
a. Assuming the price in 2009 adjusted to €60, what would be the cost in the US in that year?
b. Draw a brief analogy on how the exchange rate affected the price?
a. The glass item from Italy would have cost approximately $43.50 in 200 . b. The strengthening of the euro against the dollar from 2002 to 2009 increased the price of the glass item for US consumers. As the exchange rate went from $0.87 to $1.33 per euro, the cost in dollars increased, resulting in a higher price for the glass item in the US.
a. The glass item from Italy would have cost approximately $43.50 in 2002.
b. The strengthening of the euro against the dollar from 2002 to 2009 increased the price of the glass item for US consumers. As the exchange rate went from $0.87 to $1.33 per euro, the cost in dollars increased, resulting in a higher price for the glass item in the US.
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thank you!
If the market is at equilibrium, please discuss the impact of a price that is a. Above the equilibrium price and b. Below the equilibrium price What will the result in the market be? Why?
a. If the price is higher than the equilibrium price, the market will experience an oversupply or surplus. Suppliers are willing to sell more product than consumers are willing to buy at this higher price.
As a result, unsold goods start to build up, and suppliers would need to decrease prices to get rid of the excess. By promoting greater demand and limiting supply, this downward pressure on prices aids in the restoration of equilibrium. b. When the price falls below the equilibrium price, there is either an increase in demand or a decrease in supply. Customers want more product than suppliers are prepared to supply at this lower price. Due to consumer competition for a limited supply, prices may rise as a result. The pressure for prices to rise encourages suppliers to finally restoring balance by encouraging consumers to cut back on their demand while increasing production. Both times, market forces push prices back towards their equilibrium levels, balancing supply and demand and preserving a steady market environment.
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(B) Find the value of a bond with no face value (F = 0), annual
coupons C = 100, and maturity in 30 years. The interest rate (which
is constant andcompounded yearly) is 5%.
The value of the bond with no face value, annual coupons of $100, and maturity in 30 years at a 5% interest rate is approximately $1,366.85.-
To find the value of a bond with no face value (F = 0), annual coupons (C = 100), and a maturity of 30 years, we can calculate the present value of the bond's cash flows. The interest rate is 5% compounded yearly.
First, we calculate the present value of the coupons using the formula for the present value of an annuity:
PV = C * (1 - (1 + r)^(-n)) / r
where PV is the present value, C is the coupon payment, r is the interest rate, and n is the number of periods.
Using the given values, we have:
PV_coupons = 100 * (1 - (1 + 0.05)^(-30)) / 0.05
PV_coupons = 100 * (1 - 1.05^(-30)) / 0.05
PV_coupons ≈ 1366.85
Next, we calculate the present value of the bond's face value, which is 0 in this case.
PV_face_value = 0
Finally, we sum the present values of the coupons and the face value to get the total value of the bond:
Total value = PV_coupons + PV_face_value
Total value ≈ 1366.85 + 0 = 1366.85
Therefore, the value of the bond is approximately 1366.85.
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Your task is to build a Business Model Canvas (BMC) for an airline
company.(step 1 and 2)
Step 1 : Customer Segments
Step 2 :Value Propositions
plagiarism: up to
20% max.
According to the question:
Step 1: Customer Segments
Business Travelers: These are individuals who travel frequently for business purposes. They require reliable and efficient transportation options to reach their destinations conveniently and on time.
Leisure Travelers: This segment includes individuals and families who travel for leisure, vacations, or holidays. They seek affordable and comfortable travel options with a focus on convenience and enjoyable experiences.
International Travelers: This segment consists of travelers who visit different countries. They require seamless connectivity, international flight options, immigration assistance, and language support.
Frequent Flyers: This segment comprises individuals who travel frequently, either for business or personal reasons. They seek loyalty programs, exclusive benefits, and personalized services to enhance their travel experience.
Cargo and Freight: This segment includes businesses that require transportation services for shipping goods and cargo. They require efficient logistics solutions, reliable scheduling, and secure handling of their shipments.
Step 2: Value Propositions
Wide Network and Connectivity: Providing a comprehensive network of domestic and international routes to offer customers a wide range of destination options and seamless connectivity.
Safety and Reliability: Ensuring a strong focus on safety measures and maintaining a high level of reliability in flight operations to instill confidence and trust among customers.
Comfort and Convenience: Offering comfortable seating arrangements, in-flight amenities, on-time departures, and efficient check-in procedures to enhance the overall travel experience.
Competitive Pricing: Providing competitive pricing options, including promotional fares and discounts, to attract cost-conscious customers and maintain a competitive edge in the market.
Customer Service Excellence: Delivering exceptional customer service through well-trained and friendly staff, prompt complaint resolution, and personalized assistance to create a positive and memorable customer experience.
Loyalty Programs: Offering loyalty programs that provide rewards, exclusive benefits, and privileges to frequent flyers, encouraging customer retention and brand loyalty.
Efficient Cargo Services: Ensuring reliable and timely cargo transportation services with secure handling, efficient tracking systems, and tailored logistics solutions to meet the needs of businesses.
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St. Somewhere Hospital issued $20 million in zero-coupon,
five-year bonds. How much would the hospital receive in proceeds
from the bond issue?
a) $6,210,000
b) $15,670,523
c) $18,630,000
d) $12,420,0
When the bonds mature, the bondholder receives the face value. Therefore, the amount received by St. Somewhere Hospital from the bond issue will be less than the face value of $20 million.
Another important thing to note is that the formula to calculate the price of zero-coupon bonds is as follows :Price of zero-coupon bond = Face value / (1 + r)n Where r is the required rate of return, and n is the number of periods until maturity. Since the bonds are five-year zero-coupon bonds, n = 5.Using the above formula, we can calculate the price of St. Somewhere Hospital's bonds :Price of zero-coupon bond = $20,000,000 / (1 + r)5Now, to calculate the proceeds received by the hospital, we need to find out what discount rate makes the present value of the bond issue equal to the face value of $20 million. To do this, we can use trial and error or a financial calculator or spreadsheet software .The answer to this question is d) $12,420,000.
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A company is considering a 168,000 investment in machinery, the company requires a 10% return on it's investment. (PV of $1, FV of $1, and FVA of $1)
Net Cash Flow; Year 1- 10,000 Year 2- 29,000 Year 3- 55,000 Year 4- 42,000 Year 5 113,000
Q. Compute the Net Present Value of this investment
The Net Present Value of the investment is $7,316.90.
To compute the Net Present Value (NPV) of the investment, we need to discount each year's net cash flow to its present value and then sum them up. The discount rate is the required 10% return on investment.
Year 1: Present Value = Net Cash Flow / (1 + Discount Rate)^1 = $10,000 / (1 + 10%)^1 = $9,090.91
Year 2: Present Value = Net Cash Flow / (1 + Discount Rate)^2 = $29,000 / (1 + 10%)^2 = $23,553.72
Year 3: Present Value = Net Cash Flow / (1 + Discount Rate)^3 = $55,000 / (1 + 10%)^3 = $41,322.31
Year 4: Present Value = Net Cash Flow / (1 + Discount Rate)^4 = $42,000 / (1 + 10%)^4 = $27,480.99
Year 5: Present Value = Net Cash Flow / (1 + Discount Rate)^5 = $113,000 / (1 + 10%)^5 = $73,868.97
Net Present Value = Sum of Present Values - Initial Investment
Initial Investment = $168,000
Net Present Value = ($9,090.91 + $23,553.72 + $41,322.31 + $27,480.99 + $73,868.97) - $168,000
Net Present Value = $175,316.90 - $168,000
Net Present Value = $7,316.90
Therefore, the Net Present Value of the investment is $7,316.90.
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