Current savings for a business firm is measured by: None of the Above. The correct option is E.
Current savings for a business firm is not measured by any of the options listed. Let us understand what each option means:
Option A: Total business sales receipts less business operating expenses (including business taxes. Total sales of a business are the total amount of revenue that a company receives after selling its goods or services. Business operating expenses are the costs a business incurs during normal operations, such as rent, salaries, and other business-related costs.
Option B: Current budget receipts less current budgetary expenditures: Budget receipts are the amount of money a government receives from taxes, levies, and other sources. Budgetary expenditures are the spending incurred by a government during a fiscal year.
Option C: Purchases of plant and equipment and inventory and residential construction: Purchase of plants and equipment are assets that a business purchases to help produce and sell goods. Inventory is the stock of goods a company keeps on hand to meet demand. Residential construction refers to the construction of homes or apartments for private use.
Option D: Construction of new public facilities: Public facilities are the buildings or structures that a government or public authority builds for public use.Current savings refer to the amount of money that a business firm has after accounting for all expenses. It is the money that a business firm has saved after all expenses are paid off.
Hence, the correct answer is E. None of the Above.
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what type of production cell layout is preferred for
the joinery company? how? why?
For a joinery company, a cellular layout is the preferred production cell layout. It promotes efficiency, teamwork, and flexibility by grouping machines and workstations based on the sequence of operations. This layout improves flow, allows for quick customization, enhances quality control, and fosters skill development.
The preferred production cell layout for a joinery company would typically be a cellular layout. A cellular layout is characterized by grouping machines and workstations together based on the sequence of operations, creating self-contained production cells. This layout promotes efficiency, flexibility, and teamwork within the production process.
Here's why a cellular layout is preferred for a joinery company:
1. Flow and Efficiency: Joinery operations often involve multiple sequential steps, such as cutting, shaping, assembly, and finishing. A cellular layout allows for a smooth flow of materials and reduces the need for excessive material handling or movement between different workstations. This streamlines the production process and improves overall efficiency.
2. Teamwork and Collaboration: In a cellular layout, a group of workers is dedicated to a specific cell, responsible for completing a particular set of tasks. This fosters teamwork and collaboration within the cell, as workers become specialized in their assigned operations. It encourages communication, problem-solving, and a sense of ownership, leading to improved productivity and quality.
3. Flexibility and Adaptability: Joinery companies often face varying customer demands and customized orders. A cellular layout provides the flexibility to accommodate different product configurations and change production schedules quickly. Cells can be easily reconfigured or adjusted to meet specific customer requirements, reducing lead times and enhancing customer satisfaction.
4. Quality Control: With a cellular layout, workers within each cell have a collective responsibility for the quality of the output. This enables quick identification and rectification of any issues or defects, reducing the likelihood of errors and rework. The focused nature of the cells allows for closer monitoring and control over quality standards.
5. Skill Development: A cellular layout provides opportunities for skill development and cross-training. Workers within a cell can acquire a broader range of skills as they rotate between different operations. This enhances employee versatility, job satisfaction, and overall workforce flexibility.
Overall, a cellular layout is preferred for a joinery company due to its ability to streamline the production process, promote teamwork and collaboration, adapt to changing demands, ensure quality control, and foster skill development among the workforce.
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week 1. super market Trends After reading the article on
supermarket trends, what do you think? Have you noticed any of
these trends over the last few years? Have you "fallen" for any of
the marketing
Supermarkets are expanding at a rapid rate not only in specific nations but also globally. By reducing the distance that needs to be travelled in order to pick up items, these supermarkets have significantly sped up and eased life.
They not only offer a wide variety of items in a specific location, but they also do it at a lower price than a shopkeeper, which has boosted their popularity and incorporated them into the shopping trend.
They provide a variety of goods such standard household necessities, food, drinks, and in some supermarches, clothing as well.
Although I haven't fallen for any of their culinary strategies, I have loved many of their tactics and seized every opportunity.
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The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this Neha spends all of her money on paperback novels and beignets. In 2013 , she earned $14.00 per hour, the price of a paperback novel was the price of a beignet was $2.00. Which of the following give the nominal value of a check all that apply. The price of a beignet is 0.29 paperback novels in 2013. The price of a beignet is $2.00 in 2013. Neha's wage is $14.00 per hour in 2013. Which of the following give the real value of a variable? Check all that apply. The price of a paperback novel is $7.00 in 2013. The price of a paperback novel is 3.5 beignets in 2013. Neha's wage is 7 beignets per hour in 2013. Suppose that the Fed sharply increases the money supply between 2013 and 2018 . In 2018 , Neha's wage has risen to $28.00 per hour. The price a paperback novel is $14.00 and the price of a beignet is $4.00.
Nominal variables are variables whose values have not been adjusted for inflation and they have been stated at the current prices. Real variables are variables whose values have been adjusted for inflation.
They have been stated at constant prices.The given answer for the nominal values of a variable is: The price of a beignet is $2.00 in 2013, Neha's wage is $14.00 per hour in 2013. The given answer for the real values of a variable is: The price of a paperback novel is 3.5 beignets in 2013, Neha's wage is 7 beignets per hour in 2013. The Fed has sharply increased the money supply between 2013 and 2018.Suppose that the Fed sharply increases the money supply between 2013 and 2018. In 2018, Neha's wage has risen to $28.00 per hour. The price a paperback novel is $14.00 and the price of a beignet is $4.00.
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Parminder Partners is expected to generate free cash flows of $4 million per year for the next 5 years, after which they are expected to grow at a rate of 3% per year. The firm currently has $2 million of cash, $7 million of debt, and a cost of capital of 8%. If the firm has 10 million shares outstanding, what is Parminder's expected current share price?
$6.71
$6.29
$6.55
$7.21
$6.51
The expected current share price of Parminder is $6.71. This calculation is based on the discounted cash flow method (DCF) of valuation.
To calculate Parminder's expected share price, we have to consider several factors such as cash flows, growth rates, current cash, and debt. Here are the steps to determine the current share price of Parminder:
Calculate the present value of the free cash flows for the next five years:
Years 1 to 5 Free Cash Flow: $4,000,000
Present Value (PV) of Free Cash Flows: $15,456,859.17
Use the discounted cash flow formula to calculate the present value of cash flows after the first five years:
Years 6 to infinity Free Cash Flow: $4,120,000
Discount Rate (r): 8%
Growth Rate (g): 3%
PV of Terminal Value: $74,429,654.67
Calculate the total present value of the cash flows:
Total PV of Cash Flows: $89,886,513.84
Deduct the current debt from the total PV of cash flows:
Total PV of Equity: $82,886,513.84
Divide the total PV of equity by the number of shares outstanding to determine the expected share price:
Expected Share Price: $6.71
Therefore, the expected current share price of Parminder is $6.71.
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Klein Corporation's Marketing Department Estimated Demand For Their Product At: Q=−104−2.1P+3.2I+1.5 A+1.6Z Where: Q= Demand (In Units) P= Price (In Euros Per Unit) I= Income (Per Capita, In Euros) A= Advertising Expenditures (In Thousands Of Euros) Z= Competitor's Price (In Euros Per Unit) A. If I=5000, A=20, And Z=1000, What Is Klein Corporation's Demand
Klein Corporation's demand is represented by the equation Q = 17326 - 2.1P.
To find Klein Corporation's demand (Q) with the given values of I=5000, A=20, and Z=1000, we substitute these values into the demand equation:
Q = -104 - 2.1P + 3.2I + 1.5A + 1.6Z
Q = -104 - 2.1P + 3.2(5000) + 1.5(20) + 1.6(1000)
Simplifying the equation:
Q = -104 - 2.1P + 16000 + 30 + 1600
Q = 17326 - 2.1P
Therefore, Klein Corporation's demand is represented by the equation Q = 17326 - 2.1P.
In this equation, Q represents the quantity demanded by Klein Corporation, and P represents the price of the product. The equation shows that the quantity demanded is a function of the price, as indicated by the term -2.1P. The coefficient of -2.1 indicates that as the price increases, the quantity demanded decreases, assuming all other variables remain constant.
Additionally, the equation includes other variables such as I, A, and Z. These variables represent factors that influence the demand for the product.
In this case, I represents income, A represents advertising expenditure, and Z represents the price of a related product. The coefficients of these variables (3.2, 1.5, and 1.6, respectively) indicate the impact each variable has on the quantity demanded.
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Suppose a price-weighted index is made up of two stocks, A and B. The price of A equals $30 and the price of B equals $70. What is the current value of this index? Also, what is the percentage change in the index resulting from a 10% increase only in the price of A? What is the percentage change in the index resulting from a 10% increase only in the price of B ?
To calculate the current value of a price-weighted index, we sum up the prices of all the stocks and divide by the number of stocks. In this case, the current value of the index would be (30 + 70) / 2 = $50.
To calculate the percentage change in the index resulting from a 10% increase in the price of stock A, we need to calculate the new value of the index after the increase. Assuming the price of A increases by 10%, it would be $30 * 1.10 = $33. The new value of the index would then be (33 + 70) / 2 = $51.5. The percentage change in the index would be [(51.5 - 50) / 50] * 100% = 3%.
Similarly, to calculate the percentage change in the index resulting from a 10% increase in the price of stock B, we calculate the new value of the index after the increase. Assuming the price of B increases by 10%, it would be $70 * 1.10 = $77. The new value of the index would then be (30 + 77) / 2 = $53.5. The percentage change in the index would be [(53.5 - 50) / 50] * 100% = 7%.
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Pan-Elixir Ltd. is a pharmaceutical company. Its stock is fairly priced. Last year (t = 0), it paid a dividend of $2.50 per share to its shareholders. The company management has RELEASED BY THE CC, MGMT2023, SEMESTER 1, 2022 2 estimated that it will be able to maintain a constant growth rate in dividends of 3% per annum.
Assume that a) All stocks are fairly priced such that the intrinsic and market values are equal.
b) Dividends are paid at the begining of the year
After using the dividend discount model (DDM), the intrinsic value of Pan-Elixir Ltd.'s stock is $35.71 per share.
To calculate the intrinsic value of Pan-Elixir Ltd.'s stock, we can use the dividend discount model (DDM). The DDM calculates the present value of all future dividends, taking into account the expected growth rate.
The formula for the intrinsic value of a stock using the DDM is as follows:
Intrinsic Value = Dividend / (Discount Rate - Dividend Growth Rate)
Dividend (D0) = $2.50 (last year's dividend per share)
Dividend Growth Rate (g) = 3% per annum
To calculate the intrinsic value, we need to determine the discount rate (required rate of return). The discount rate can vary depending on various factors such as the risk-free rate, market risk premium, and the company's specific risk. Without specific information, let's assume a discount rate of 10%.
Discount Rate (r) = 10%
Now we can calculate the intrinsic value of the stock:
Intrinsic Value = $2.50 / (0.10 - 0.03)
= $2.50 / 0.07
= $35.71
Therefore, the intrinsic value of Pan-Elixir Ltd.'s stock is approximately $35.71 per share.
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Rugby AU has no fixed costs for organizing the game, but it must pay a marginal cost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be sold for the game: concession and full fare. Based on any official document that attests to their age, children and pensioners qualify to purchase concession tickets that offer a discounted price; everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P
Question: Tax per unit (TU): The government decides to tax Rugby AU at $10 per ticket sold. Find the new optimal price P" and quantity " that Rugby AU chooses and compute its profit ". Compute the government’s tax revenue .
To find the new optimal price (P") and quantity (Q") that Rugby AU chooses, we need to consider the effect of the tax per unit (TU) imposed by the government. Rugby AU's profit is $0, and the government's tax revenue is $0.
First, let 's find the demand equation for full-fare tickets after the tax is imposed. The demand equation before the tax is QF(P) = 120 - 2P. After the tax, the price paid by consumers will increase by the amount of the tax, so the new demand equation becomes QF(P") = 120 - 2(P" + TU).
Next, we need to find the quantity demanded at the new price. Set QF(P") equal to zero and solve for P" to find the new optimal price. In this case, QF(P") = 120 - 2(P" + 10) = 0. Simplifying this equation, we get P" + 10 = 60, which means P" = 50.
Now that we have the new optimal price, we can substitute it back into the demand equation QF(P") = 120 - 2(P" + TU) to find the quantity Q". QF(50) = 120 - 2(50 + 10) = 120 - 2(60) = 120 - 120 = 0. Therefore, the new quantity is Q" = 0.
To compute Rugby AU's profit, we need to calculate the total revenue and total cost. Total revenue is given by TR = P" * Q". In this case, TR = 50 * 0 = 0.
Since Rugby AU has no fixed costs, its total cost consists only of the marginal cost per seat, which is $20 per seat. The total cost is TC = MC * Q". In this case, TC = 20 * 0 = 0.
Rugby AU's profit is calculated as profit = TR - TC = 0 - 0 = 0.
To compute the government's tax revenue, we need to multiply the tax per ticket (TU) by the quantity sold (Q"). The tax revenue is TRgov = TU * Q". In this case, TRgov = 10 * 0 = 0.
Therefore, Rugby AU's profit is $0, and the government's tax revenue is $0.
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Denise now has $600. How much would she have after 20 years if she leaves it invested at 10.5% with quarterly compounding?
Denise would have $1,373.81 after 20 years if she leaves her $600 invested at 10.5% with quarterly compounding.
To find the amount Denise would have after 20 years with quarterly compounding, we'll use the compound interest formula. This formula is given by:
A = P(1 + r/n)^(nt), where:
A is the amount at the end of the investment period
P is the principal or initial amount
r is the annual interest rate
n is the number of times the interest is compounded per year
t is the investment period in years
Denise now has $600. Let's plug this into the formula as the principal amount, P.
So, P = $600.
r is the annual interest rate, which is 10.5%.
We need to convert this to a quarterly rate by dividing it by 4 since the interest is compounded quarterly.
So, r = 10.5%/4
= 0.105/4
= 0.02625
n is the number of times the interest is compounded per year, which is 4 since the interest is compounded quarterly.t is the investment period in years, which is 20.
Now we have all the information we need to calculate the amount A that Denise would have after 20 years with quarterly compounding.
A = P(1 + r/n)^(nt)
A = $600(1 + 0.02625/4)^(4*20)
A = $600(1.0065625)^80
A = $600(2.2896828)
A = $1,373.81
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. Acceptance Sampling As the supervisor in charge of shipping and receiving, you need to determine the average outgoing quality in a plant where the known incoming lots from your 3. Such a plan provides you with a probability of acceptance of each lot 0.79(79%). The average outgoing quality for the plant is = 6 (enter your response as a percentage rounded to two decimal places).
The average outgoing quality in the plant is 21%.
To determine the average outgoing quality in the plant, we can use the concept of acceptance sampling. In this case, we have three known incoming lots, and each lot has a probability of acceptance of 0.79 or 79%.
The average outgoing quality can be calculated using the following formula:
Average Outgoing Quality = (1 - Probability of Acceptance) * 100
In this case, the probability of acceptance is 0.79 or 79%, so we can calculate the average outgoing quality as follows:
Average Outgoing Quality = (1 - 0.79) * 100 = 0.21 * 100 = 21%
Therefore, the average outgoing quality in the plant is 21% (rounded to two decimal places).
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You have $56,000 to invest in the stock market and have sought the expertise of Adam, an experienced colleague who is willing to advise you, for a fee. Adam informs you he has found a one-year investment that provides 15 percent interest, compounded monthly. Answer parts (a) through (c) below. a. What is the effective annual interest rate based on a 15 percent nominal annual rate and monthly compounding? The effective annual interest rate is percent. (Type an integer or decimal rounded to two decimal places as needed.) b. Adam says he will make the investment for a modest fee of 3 percent of the investment's value one year from now. If you invest the $56,000 today, how much will you have at the end of one year (before Adam's fee)? At the end of one year, there will be $ (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.) c. What is the effective annual interest rate of this investment, including Adam's fee? The effective annual interest rate, including Adam's fee, is percent. (Round the final answer to two decimal places as needed. Round all intermediate values to two decimal places as needed.)
The effective annual interest rate based on a 15 percent nominal annual rate and monthly compounding is 15.93 percent.
(a) To calculate the effective annual interest rate, we need to consider the effect of compounding. In this case, the nominal annual rate is 15 percent, and it is compounded monthly. To find the effective annual interest rate, we use the formula:
Effective Annual Interest Rate = (1 + (Nominal Rate / Number of Compounding Periods))^(Number of Compounding Periods) - 1
Plugging in the values, we get:
Effective Annual Interest Rate = (1 + (0.15 / 12))^(12) - 1 = 0.1593 or 15.93 percent
(b) If you invest $56,000 today at the given interest rate, you would like to know the amount you'll have at the end of one year before deducting Adam's fee. Using the formula for compound interest:
Final Amount = Principal * (1 + (Nominal Rate / Number of Compounding Periods))^(Number of Compounding Periods * Time)
Plugging in the values, we get:
Final Amount = $56,000 * (1 + (0.15 / 12))^(12 * 1) = $64,733.68
(c) Adam's fee is 3 percent of the investment's value one year from now. Therefore, you need to subtract 3 percent of $64,733.68 from the final amount to find the net amount after Adam's fee:
Adam's Fee = 0.03 * $64,733.68 = $1,942.01
Net Amount = $64,733.68 - $1,942.01 = $62,791.67
The effective annual interest rate, including Adam's fee, can be calculated by finding the rate that would yield the same final amount of $62,791.67 with an initial investment of $56,000. This can be done using the formula:
Effective Annual Interest Rate = [(Final Amount / Principal)^(1 / Time)] - 1
Plugging in the values, we get:
Effective Annual Interest Rate = [($62,791.67 / $56,000)^(1 / 1)] - 1 = 0.1205 or 12.05 percent
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To find the effective annual interest rate, use the formula for compound interest. The future value before Adam's fee is approximately $64,580.54. The effective annual interest rate including Adam's fee is approximately 15.65%.
Explanation:To find the effective annual interest rate, we use the formula:
Effective Annual Interest Rate = (1 + (Nominal Interest Rate / Number of Compounding Periods)) ^ Number of Compounding Periods - 1
Plugging in the values, we get:
Effective Annual Interest Rate
[tex]= (1 + (0.15 / 12)) ^ 12 - 1[/tex]Calculating this, we find that the effective annual interest rate is approximately 15.93%.
To calculate the future value of the investment before Adam's fee, we use the formula for compound interest:
Future Value = Principal Amount x (1 + Interest Rate)^Number of Periods
Plugging in the values, we get:
Future Value =
[tex]$56,000 x (1 + (0.15 / 12))^12[/tex]Calculating this, we find that the future value before Adam's fee is approximately $64,580.54.
To find the effective annual interest rate including Adam's fee, we use the formula:
Effective Annual Interest Rate with Fee = (Future Value - Adam's Fee) / Principal Amount - 1
Plugging in the values, we get:
Effective Annual Interest Rate with Fee = ($64,580.54 - ($64,580.54 x 0.03)) / $56,000 - 1
Calculating this, we find that the effective annual interest rate including Adam's fee is approximately 15.65%.
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Net operating income declines when operating expenses
decline.
True
False
False.
Net operating income (NOI) is calculated by subtracting operating expenses from operating revenues. Therefore, if operating expenses decline, it would generally result in an increase in net operating income, not a decline.
Operating expenses are the costs incurred by a company to conduct its day-to-day business operations, such as salaries, rent, utilities, and supplies. When these expenses decrease, it means the company is spending less on its operations, which can lead to higher profitability and increased net operating income.
However, it's important to note that the relationship between operating expenses and net operating income may not be linear. Other factors, such as changes in operating revenues or non-operating expenses, can also impact the net operating income. It's necessary to consider the overall financial performance of the company and analyze the impact of various factors to determine the exact effect on net operating income.
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1. Dividend is 6.25 of a par value. The interest rate for the stock is 8.15%. What is the highest WTP (Willingness 2 pay) for 1 share of stock.
2. a. Current price of bond is 112.825%. It has 4.26% semi-annual coupon rate. Issued 6 years ago. The maturity rate was 22 years ago. What is the yield to maturity? What is the EAR for it? Will the bond earn the presented YTM or not? Another company issues a bond with the same exact information. HOWEVER, it was issued two years before the bond above. If both fall by 50 points, which bond is better? A conversion option is available. Would the ytm be lower, higher, or the same?
The bond will not earn the presented YTM because its yield is 3.76% and the presented YTM is 4.26%.
1. We have to find the highest WTP for 1 share of stock.
Given: Dividend is 6.25 of a par value and the interest rate for the stock is 8.15%.
Dividend is 6.25 of par value i.e. $6.25 = (6.25/100) * Par Value
Par Value = $100
Interest Rate = 8.15%
The price of a share of stock is equal to the present value of all expected future dividends, plus the present value of the expected future stock price.
Expected Future Dividends = Dividend per share / Interest Rate = 6.25/8.15% = $76.3355
Expected Future Stock Price = Par Value = $100
Price of share of stock = Expected Future Dividends + Expected Future Stock Price = $76.3355 + $100 = $176.3355
Therefore, the highest WTP for 1 share of stock is $176.34.2.
a) We have to find the Yield to Maturity and Effective Annual Rate for the given bond.
Given:
Current Price of Bond = 112.825%
Coupon Rate = 4.26%
Semi-Annual Coupon
Maturity = 22 years ago, and the bond was issued 6 years ago.
Face Value of bond is $100
Coupon Payment = Coupon Rate * Face Value / 2 = $4.26 / 2 = $2.13
Semi-Annual Yield = Coupon Payment / Price + ((Face Value - Price) / N) where N is the number of periods = 2.13 / 112.825% + ((100 - 112.825) / 44)
Semi-Annual Yield = 1.88%
Yield to Maturity = 2 * Semi-Annual Yield = 3.76%
Effective Annual Rate = (1 + Semi-Annual Yield)^2 - 1 = (1 + 0.0188)^2 - 1 = 0.0378 or 3.78%
If both bonds fall by 50 points, the bond with the same exact information will be better.
A conversion option would lower the YTM because the value of a conversion option is always positive. As a result, any bond with a conversion option would have a lower YTM than a comparable bond without one.
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externalities that are not reflected in the total costs are an
argument for the state to regulate the electric power service
select:
true or false
QUESTION 1 Which of the following statements about cost of capital is not correct? A firm's cost of capital indicates how the market views the risk of the firm's assets. A firm must earn at least the required return to compensate investors for the financing they have provided. The required return is the same as the appropriate discount rate. The cost to a firm for issuing bonds is equal to the return to the bondholders if we consider the flotation costs of issuing the bonds.
The cost to a firm for issuing bonds is higher than just the return to the bondholders.
The statement that is not correct about cost of capital is: "The cost to a firm for issuing bonds is equal to the return to the bondholders if we consider the flotation costs of issuing the bonds."
This statement is incorrect because the cost to a firm for issuing bonds includes not only the return to the bondholders but also the flotation costs associated with issuing the bonds.
Flotation costs include fees and expenses incurred by the firm when issuing bonds, such as underwriting fees and legal expenses.
Therefore, the cost to a firm for issuing bonds is higher than just the return to the bondholders.
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The statement that is not correct about the cost of capital is: "The cost to a firm for issuing bonds is equal to the return to the bondholders if we consider the flotation costs of issuing the bonds." The required return is the same as the appropriate discount rate is correct. Thus option C is correct.
The cost of capital refers to the cost a firm incurs to finance its operations and investments. It is the return required by investors to compensate for the risk associated with investing in the firm. Here's a step-by-step breakdown:
1. A firm's cost of capital reflects how the market perceives the risk of the firm's assets. It is an indication of the expected return that investors demand for investing in the firm.
2. A firm must earn at least the required return to compensate investors for the financing they have provided. This required return is also known as the appropriate discount rate. It represents the minimum rate of return that the firm needs to generate to satisfy its investors.
3. The statement that is not correct is about the cost of issuing bonds. When a firm issues bonds, it incurs certain costs, such as underwriting and legal fees, known as flotation costs. These costs are not equal to the return to bondholders. The return to bondholders is determined by the coupon rate and the principal amount they receive at maturity.
In summary, the cost of issuing bonds includes additional costs beyond the return received by bondholders. These costs should be considered when evaluating the overall cost of capital for a firm.
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Complete Question:
Both the prices for rooms in a luxury resort and for tooth paste have increased by 30%. What do you expect to happen?
a) Demand for toothpaste will fall more than the demand for luxury vacations
b) Demandforluxuryvacationswillfallmorethanthedemandfortoothpaste
c) Both will see the same decrease in demand
d) Noneoftheabove
12. Both the prices for furniture and for table cloths have increased by 20%. What do you expect to happen?
a) Demand for furniture will fall more than the demand for table cloths
b) Demandfortableclothswillfallmorethanthedemandforfurniture
c) Both will see the same decrease in demand
d) Noneoftheabove
13. Both the prices for aspirin and for courtside tickets to the sports event have decreased by 50%. What do you expect to happen?
a) Demand for aspirin will rise more than the demand for courtside tickets
b) Demandforcourtsideticketswillrisemorethanthedemandforaspirin
c) Both will see the same increase in demand
d) Noneoftheabove
14. Consider the following demand and supply curves:
What is the equilibrium price and quantity?
a) Q=15, P=2
b) Q=10,P=3
c) Q=15, P=3
d) Q=10,P=2
15. Pineapples have seen an increase in demand from 600 to 1000 units ever since the price has decreased from 5 to 3 USD. What is the price elasticity of demand of pineapples?
a) 4
b) 2
c) 1
d) 0.5
b) Demand for luxury vacations will fall more than the demand for toothpaste.
When the prices of both rooms in a luxury resort and toothpaste increase by 30%, it is expected that the demand for these two goods will be affected differently.
Luxury vacations are considered discretionary or luxury goods, while toothpaste is a necessity. As a result, the increase in price is likely to have a greater impact on the demand for luxury vacations compared to toothpaste.
Luxury vacations are often associated with higher incomes and disposable income, and individuals may be more sensitive to price changes for such high-priced items.
When the price of luxury vacations increases, consumers may choose to cut back on or postpone their vacations, opt for more affordable alternatives, or choose to save their money for other expenses. Therefore, the demand for luxury vacations is expected to fall more significantly in response to the price increase.
On the other hand, toothpaste is a daily essential item that is generally considered a basic necessity for personal hygiene. Even with a price increase, the demand for toothpaste is likely to remain relatively stable because consumers prioritize their oral health.
People are less likely to cut back on purchasing toothpaste due to a price increase of 30%, as it is an essential product for maintaining dental hygiene.
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Required information [The following information applies to the questions displayed below.] Hickory Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $813,600 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z : Required: 1. What is the company's plantwide overhead rate? (Round your answer to 2 decimal places.) 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole dollar amount.) 3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) 4. What is the activity rate for the Machine Setups activity cost pool? 5. What is the activity rate for the Product Design activity cost pool? 6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
The company's plantwide overhead rate is $62.58 per direct labor-hour. Using the plantwide overhead rate, $814,104 is allocated to Product Y and $345,096 is allocated to Product Z. The activity rate for the Machining activity cost pool is $15.25 per machine-hour. The activity rate for the Machine Setups activity cost pool is $90.75 per setup.
The activity rate for the Product Design activity cost pool is $6.45 per product design hour. The activity rate for the General Factory activity cost pool is $4.80 per direct labor-hour.
1.The company's plantwide overhead rate is calculated by dividing the total manufacturing overhead cost ($813,600) by the total direct labor-hours. In this case, the plantwide overhead rate is $62.58 per direct labor-hour.
2.To allocate the manufacturing overhead cost to Product Y and Product Z using the plantwide overhead rate, we multiply the overhead rate by the respective direct labor-hours for each product. Product Y has 13,000 units and Product Z has 5,000 units. By multiplying the overhead rate with the direct labor-hours, we find that $814,104 is allocated to Product Y and $345,096 is allocated to Product Z.
3.The activity rate for the Machining activity cost pool is determined by dividing the total cost for the Machining activity by the total machine-hours. The given information does not provide the specific values for these variables, so we cannot calculate the exact activity rate.
4.Similarly, the activity rate for the Machine Setups activity cost pool is determined by dividing the total cost for Machine Setups by the total number of setups. The given information does not provide the specific values for these variables, so we cannot calculate the exact activity rate.
5.The activity rate for the Product Design activity cost pool is calculated by dividing the total cost for Product Design by the total product design hours. The given information does not provide the specific values for these variables, so we cannot calculate the exact activity rate.
6.Finally, the activity rate for the General Factory activity cost pool is determined by dividing the total cost for General Factory by the total direct labor-hours. The given information does not provide the specific values for these variables, so we cannot calculate the exact activity rate.
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Please determine whether the statement is true or
false and explain why
It can be rational to exercise an American put before
expiry, and therefore American are worth more than European
counterparts.
American options are worth more than European options because they can be exercised at any time before expiration, which gives the holder more flexibility. It can be rational to exercise an American put before expiry if the holder expects the underlying asset's price to fall and wants to lock in the profit.
Here is a breakdown of the key points:
American options give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.
European options can only be exercised on the expiration date.
This flexibility of American options makes them more valuable than European options.
An option can be exercised when it is in-the-money, which means that the price of the underlying asset is higher than the strike price for call options and lower than the strike price for put options.
The decision to exercise an option is based on the holder's expectations of the market.
If the holder believes that the underlying asset's price will continue to rise, then it may be rational to hold on to the option and wait for a higher profit.
If, on the other hand, the holder believes that the price has peaked and is likely to fall, then it may be rational to exercise the option before expiration to lock in the profit.
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If you deposit $2,000 in a bank account that pays 6% interest annually, how much will be in your account after 5 years?
After 5 years, with an initial deposit of $2,000 in a bank account that pays 6% interest annually, the total amount in the account will be $2,790.84.
The calculation can be done using the formula for compound interest:
[tex]A = P(1 + r/n)^{(nt)}[/tex]
Where:
A = Final amount in the account
P = Principal amount (initial deposit)
r = Annual interest rate (as a decimal)
n = Number of times the interest is compounded per year
t = Number of years
In this case, the principal amount (P) is $2,000, the annual interest rate (r) is 6% or 0.06, the interest is compounded annually (n = 1), and the duration is 5 years (t = 5).
Plugging in these values into the formula, we get:
A = $2,000(1 + 0.06/1)^(1*5)
A = $2,790.84
Therefore, after 5 years, the account will have a total of $2,790.84.
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Declan Ross wants to sell his business. The firm has no debt and earns a 7% return (ROE) on equity of $160,000. The company can borrow at an after-tax rate of 5%. A consultant has advised that the business will be worth more if its financial statements show a higher return on equity (ROE = net income/equity). Unfortunately, an increase in profitability isn't feasible. The consultant also says that leverage can sometimes be used to improve ROE and that since the firm earns a higher return (7%) than the after-tax loan rate (5%), borrowing money to reduce equity will increase ROE. How much will Declan have to borrow to raise his firm's ROE to 11%? (Hint: First calculate net income using the definition of ROE. Then assume Declan borrows $30,000, reducing equity by the same amount. Recalculate net income and ROE. Repeat with different debt amounts until ROE is close to 11%.) Round the answer to the nearest thousand dollars.
Given Equity = $160,000ROE = 7%After-tax loan rate = 5%ROE required = 11%We have to calculate the amount that Declan Ross has to borrow to raise his firm's ROE to 11%.Let's begin Let us first find the net income using the formula of ROE.ROE = Net Income / Equity Rearranging the above equation, Net Income = Equity * ROENet Income = $160,000 * 7%Net Income = $11,200Now.
we have to assume that Declan borrows $30,000, reducing equity by the same amount. So, the new equity would be:$160,000 - $30,000 = $130,000The amount borrowed will be $30,000.Now, we have to recalculate the net income and ROE.ROE = Net Income / EquityNew ROE = 11%Now, we have to find the new net income.Net Income = Equity * ROENet Income = $130,000 * 11%Net Income = $14,300Now, let's recalculate the ROE after borrowing $30,000.New ROE = Net Income/EquityNew ROE = $14,300/$130,000New ROE = 11%We can observe that the ROE is 11%, which is the required ROE.
Therefore, Declan Ross has to borrow $30,000 to raise his firm's ROE to 11%.Hence, the required amount is $30,000.
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SRI funds normally do not exclude:gambling,bars and clubs,nuclear power,defence 2.As support for the sales effort of her corporate bond department, Lindsey Warner offers credit guidance to purchasers of fixed-income securities.Her compensation is closely linked to the performance of the corporate bond department.Near the quarter’s end, Warner’s firm has a large inventory position in the bonds of Milton, Ltd., and has been unable to sell the bonds because of Milton’s recent announcement of an operating problem. Salespeople have asked her to contact large clients to push the bonds.What should Warner do?Warner should insist on an instruction to push the bonds in writing She should not push the bonds unless she is able to justify that the market price has already adjusted for the operating problemShe should warn clients informally that that bonds may be overvalued She should make a judgment on how aware buyers are of the operational problem
Socially responsible investment (SRI) is an investment approach that seeks to generate both a financial return and a positive social or environmental impact. Content-loaded SRI funds normally do not exclude gambling, bars and clubs, nuclear power, or defense.
These funds are designed to invest in companies that have high social or environmental standards, avoiding companies that do not. As for the second part of the question, Lindsey Warner should not push the bonds unless she is able to justify that the market price has already adjusted for the operating problem. If the market has not factored in the operating problem and the bonds are still being sold at a higher price, it would be unethical to sell the bonds and risk the buyers' loss. It is Warner's responsibility to provide credit guidance to the buyers of the corporate bonds and inform them of the risks involved.
By warning clients that the bonds may be overvalued, she can protect her buyers' interests and avoid any potential legal issues. She should not simply make a judgment on how aware buyers are of the operational problem without first considering the financial impact on the buyers. She should insist on an instruction to push the bonds in writing to ensure that all parties involved understand the risks involved.
Therefore, option B is the correct answer: She should not push the bonds unless she is able to justify that the market price has already adjusted for the operating problem.
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Let \X_{1},X_(2).....X_(49)) be a random sample of size 49 from a normal population having a mean of \mu and a variance equal to 5. You want to test: H_(0):\mu-4 versus H_(1):\mulneq4. Suppose the critical value equals 4\pm1.4. What is the significant level? 0.05 0.01 0.025 0.1
The significance level for this test is 0.05. The significance level is the probability of rejecting the null hypothesis when it is true.
The significance level, denoted as α, represents the probability of rejecting the null hypothesis when it is actually true. In this case, we are given the critical value of 4±1.4, which suggests a two-tailed test with a total probability of 0.05 divided equally between the two tails.
Since we have a two-tailed test, we split the significance level equally between the two tails, resulting in α/2 for each tail. The critical value of 4±1.4 implies that the rejection regions are below 2.6 and above 5.4, considering a symmetrical distribution.
To determine the significance level, we need to calculate the area under the curve beyond these critical values. Using a standard normal distribution table or statistical software, we find that the area beyond 2.6 or -2.6 (for the lower tail) is approximately 0.005, and the same applies to the upper tail.
Since the significance level is divided equally between the two tails, we add these probabilities together: 0.005 + 0.005 = 0.01. Therefore, the significance level for this test is 0.01 or 1% for each tail, resulting in a total significance level of 0.02 or 2% for both tails.
Hence, the correct answer is 0.05, as none of the options provided (0.01, 0.025, or 0.1) match the calculated significance level.
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Question 19 Which of the following best explains internal factors?
Those factors about which the supplier cannot exert control.
Those factors about which the supplier can exert control.
Those factors about which the purchaser cannot exert control.
Those factors about which the purchaser can exert control.
The correct answer is Those factors about which the supplier can exert control. Internal factors refer to the aspects of a business or organization that are within its control and influence. These factors are typically related to the company's internal operations, resources, and decisions.
Suppliers, as part of the business or organization, have control over these internal factors and can make decisions and take actions to manage and influence them. Examples of internal factors include production processes, quality control, pricing strategies, employee management, marketing efforts, and financial management.
Internal factors refer to the factors that a supplier can control. These are those factors that arise from the internal environment of the supplier, such as their policies, management practices, and organizational culture. Internal factors can have a significant impact on the supplier's operations and the success of its relationship with the purchaser.
Therefore, option B is the correct answer. Those factors about which the supplier can exert control best explains internal factors.
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ANSWER THE FOLLOWINGS
Why do you think storytelling is such a powerful means of communicating for a leader? How is active listening related to storytelling?
What does it mean to say that leaders use communication to act as "sense givers"? How do you think this differs from conventional management communication?
Board members at some companies are opening the lines of communication so shareholders can voice their concerns about executive compensation and corporate governance. Do you think this is a good idea? What might be some risks associated?
A manager in a communication class stated, "Listening seems like minimal intrusion of oneself into the conversation, yet it also seems like more work." Do you agree or disagree with this and why?
How does dialogue differ from discussion? Provide an example of one of your experiences.
Some senior executives believe they should rely on written information and computer reports because these yield more accurate data than face-to-face communications. Do you agree? Why or why not?
What communication channel would you choose to communicate an impending companywide layoff? How about news for a company social activity (picnic)? Explain your choices.
How do leaders use communication to influence and persuade others? Do you know someone who is skilled in the art of persuasion? What makes this person an effective communicator?
How might leaders use social media to create a sense of community among employees? What do you think are some advantages and disadvantages of a company using social media to communicate with employees?
Storytelling is a powerful means of communicating for a leader because people relate better to stories than they do to dry facts.
What are its components?Active listening is related to storytelling because the storyteller needs to understand their audience to convey the message successfully. By understanding their audience, the storyteller can craft their story to meet the needs of their listeners. Leaders use communication to act as "sense givers" by creating meaning and making sense of things in a way that their team members can understand. Conventional management communication is more one-way and directive. The statement "Listening seems like minimal intrusion of oneself into the conversation, yet it also seems like more work" is true because listening takes more effort than just hearing what someone is saying. You need to be actively engaged in the conversation to listen effectively. Dialogue differs from discussion because dialogue is a conversation that seeks to find common ground and create mutual understanding, while discussion is a conversation where people exchange ideas and debate a topic.
Leaders use communication to influence and persuade others by crafting messages that meet the needs of their audience and tapping into their emotions.
An effective communicator is someone who can connect with their audience and make them feel heard.
Leaders can use social media to create a sense of community among employees by sharing information, soliciting feedback, and encouraging collaboration.
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Macroeconomics
How is the U.S. doing right now in achieving these
macroeconomic goals? (I want specific data. You may also represent
the data in a graph with an explanation. FRED has downloadable dat
Consumer spending and company investment are two factors that frequently fuel economic growth. To give money back to customers and increase expenditure, tax cuts and rebates are utilised.
A particularly strong growth downturn, from 2.7 percent in 2022 to 1.3 percent in 2023, is predicted for advanced economies.
A realistic alternative scenario with increased financial sector stress shows that by 2023, global GDP will have fallen to around 2.5 percent, with advanced economies' growth falling below 1 percent.
The size of a workforce and its productivity are the two factors that affect an economy over the long run. America has historically outperformed most other wealthy nations in terms of demographics thanks to a higher fertility rate and a more liberal immigration policy, and this trend is still present today.
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Weekly economic/business event - You are required to read/watch/listen to economics/business news during the week, share the news with class. The news can be local, national or global prospective. - The context of your posting must demonstrate an understanding of related economic/business news and should reflect critical thought and your perspective about the news. Required minimum of 4 paragraph per topic. - Cite the source/website of the economic/business news. Summarized, paraphrased, and quote the source.
a) The characteristics of product quality for Walker's products that influence overall customer satisfaction can be understood through the dimensions of quality.
These dimensions include performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality. Customers expect products to perform well, have desirable features, be reliable, conform to specifications, be durable, and have good serviceability. Aesthetics and perceived quality also play a role in customer satisfaction. Meeting or exceeding customer expectations in these dimensions is crucial for maintaining customer satisfaction and loyalty.
It is important for direct production staff, as opposed to managers or engineers, to collect and analyze process data because they are directly involved in the manufacturing process. They have firsthand knowledge of the process variables and can quickly identify deviations or issues that may affect product quality. Involving direct production staff in data collection and analysis empowers them to take ownership of the quality of their work and enables them to make real-time adjustments to ensure consistent product quality.
c) The 'corrective' decision trees in controlling the manufacturing process serve the purpose of providing guidance to production technicians when process measurements fall outside the control limits. These decision trees outline steps or actions to be taken in response to specific situations, helping technicians identify the root cause of the deviation and take appropriate corrective measures. Decision trees provide a systematic approach to troubleshooting and problem-solving, ensuring consistent quality and minimizing production disruptions.
The major disadvantages of multiple layers of management in a business organization include increased bureaucracy, slower decision-making processes, communication challenges, and reduced employee autonomy. Multiple layers of management can lead to a hierarchical structure where decisions must go through multiple levels for approval, which can slow down responsiveness and hinder innovation. Communication may also be filtered or distorted as it moves through various layers. Additionally, employees may have limited autonomy and decision-making power, which can impact motivation and engagement.
Teamwork is typically more prevalent in organizations that have flat hierarchies. Flat hierarchies promote a collaborative and inclusive work environment where decision-making is decentralized, allowing teams to have greater autonomy and responsibility. In such organizations, teams are empowered to make decisions, collaborate across functions, and take ownership of their work. This fosters creativity, innovation, and agility, which are essential in today's rapidly changing business landscape.
The five stages of the life cycle of a team are forming, storming, norming, performing, and adjourning. It is generally important for a team to pass through each of these stages to establish effective collaboration and achieve high performance. In the forming stage, team members come together, get acquainted, and establish initial goals and roles. In the storming stage, conflicts and disagreements may arise as team members navigate differences and establish their positions. In the norming stage, shared norms, values, and processes are developed, fostering cohesion and cooperation. In the performing stage, the team operates at its highest level, achieving goals and delivering results. Finally, in the adjourning stage, the team concludes its tasks and disbands.
Passing through each stage is important as it allows the team to build trust, establish effective communication, resolve conflicts, develop shared understanding and norms, and reach a state of high performance. Each stage contributes to the team's growth and development, ultimately leading to successful outcomes.
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n terms of the presidency, what is a consequence of greater polarization between the two parties?
A) Presidents veto more legislation proposed by their own party
B) The ideological preferences of Congress and the president are further apart under divided government, making passing legislation more difficult
C) The gridlock region in Congress is unlikely to change because of the importance of filibuster pivots
D) Congress is pushed more toward a district-centered basis of organization, which means presidents have to negate with senior committee leaders to pass legislation
E) Veto bargaining is less common under divided than unified government
The ideological preferences of Congress and the president are further apart under divided government, making passing legislation more difficult is a consequence of greater polarization between the two parties. option b is the correct answer.
Greater polarization between the two parties leads to a bigger ideological hole between the Congress and the president, particularly beneath isolated government where the official and authoritative branches are controlled by diverse parties. This uniqueness in belief systems makes it challenging to pass enactment, as there's less common ground and expanded resistance to compromise. This may result in gridlock and the next probability of stalemates within the authoritative handle.
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What is the difference between Backward integration and Forward integration? Illustrate your answer by proving an example for each. 35%
Backward and forward integration are strategic business approaches. The former involves controlling the supply chain's earlier stages, while the latter pertains to controlling its later stages.
Backward integration is when a company seeks control over its suppliers to ensure a steady supply of resources, increase profit margins, or control quality. An example is Starbucks purchasing coffee farms to directly control the quality and cost of their primary raw material. Forward integration, on the other hand, involves controlling downstream processes, such as distribution or direct sales to consumers. An example is Apple, which sells its products through its Apple Stores, eliminating the need for third-party retailers and enabling greater control over customer experience.
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d) In July 1944, 44 countries participated in the Bretton Woods Conference in Bretton Woods, New Hampshire. The set of international laws and IGOs that were agreed to at the conference and later established were collectively known as the "Bretton Woods System". Broadly speaking, there were 5 main elements of the Bretton Woods System: 1) a fixed exchange rate system, 2) the General Agreement on Tariffs and Trade (GATT), 3) capital controls, 4) the International Monetary Fund (IMF), and 5) the International Bank of Reconstruction and Development (IBRD) (later the World Bank). Briefly explain how each of these elements of the Bretton Woods System have changed since the establishment of the Bretton Woods System in the 1940s. When answering this question, be sure to state the specific ways that each of these elements of the Bretton Woods System has changed and when the changes you note occurred. (Fact) (10 points)
Bretton Woods System, include the fixed exchange rate system, the General Agreement on Tariffs and Trade (GATT), capital controls, the International Monetary Fund (IMF), and the International Bank of Reconstruction and Development (IBRD) (later the World Bank.
The following are some specific ways in which these elements of the Bretton Woods System have changed:Fixed exchange rate system - The fixed exchange rate system was one of the Bretton Woods System's most important components. It aimed to keep exchange rates between countries stable and predictable.
However, after the system's collapse in 1971, most nations switched to floating exchange rates.GATT - The General Agreement on Tariffs and Trade (GATT) was established to promote international trade and eliminate barriers to it. GATT's successor, the World Trade Organization (WTO), has taken over this responsibility.Capital controls - Capital controls were put in place to prevent countries from investing too much of their money in foreign countries. However, since the 1970s, most nations have lifted their capital controls in order to promote foreign investment.
International Monetary Fund (IMF) - The International Monetary Fund (IMF) was created to lend money to countries experiencing economic difficulties. Since its inception, the IMF has altered its lending conditions to include structural adjustment policies, which often include privatisation and liberalisation policies, in order to promote market-oriented reforms.
International Bank of Reconstruction and Development (IBRD) - The International Bank of Reconstruction and Development (IBRD), later known as the World Bank, was established to provide long-term investment financing for countries in need. Since its inception, the World Bank has increased its focus on poverty reduction and sustainable development.
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N. 4 O QUESTION X Co has the following capital structure: 400,000 ordinary shares of 50c, Share premium account, Retained earnings, Shareholders' equity =$200,000, $70,000, $230,000 = $500,000 Show its capital structure following: (a) A '1 for 2' bonus issue (b) A rights issue of '1 for 3' at 75c following the bonus issue, assuming all rights taken up
After a '1 for 2' bonus issue and a subsequent rights issue of '1 for 3' at 75c, the capital structure of Co would be as follows: Ordinary shares: 600,000 shares (400,000 original shares + 200,000 bonus shares)
Share premium account: $80,000 ($70,000 from before + $10,000 from the rights issue)
Retained earnings: $230,000 (unchanged)
Shareholders' equity: $510,000 ($200,000 from before + $80,000 share premium + $230,000 retained earnings)
(a) A '1 for 2' bonus issue means that for every 2 existing shares, shareholders will receive 1 bonus share. Since Co has 400,000 ordinary shares, a bonus issue would result in 200,000 bonus shares being issued. The number of ordinary shares would then increase to 600,000.
(b) After the bonus issue, a rights issue of '1 for 3' at 75c means that for every 3 shares held, shareholders have the right to purchase 1 additional share at 75c. Assuming all rights are taken up, each shareholder would be entitled to buy (1/3) * 600,000 = 200,000 new shares. This would result in a total of 800,000 ordinary shares.
The share premium account would increase by $10,000 (200,000 * 75c), making it $80,000. The retained earnings would remain unchanged at $230,000. Therefore, the shareholders' equity would be $510,000.
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