A bond has a 7.5% annual coupon rate with 4 years to maturity and pays annual coupon. par value is $1000

1.1 What is the price of the bond if the yield to maturity is 5%

1.2 What is price of the bond if the yield to maturity increases by 0.2%?

1.3 What is the % change in the price of the bond when yield increases by 0.2%?

1.4 What is the bond duration? (YTM 5%)

1.4 What is the modified duration? (prevailing bond yield 5%)

1.5 Using the modified duration, what is the percentage change in the price if the yield increases by 0.2%

1.6 What can you conclude regarding the error-estimate based on the modified duration?

Answers

Answer 1

Answer:

1.1 Inflow (Coupon payment ) = $1000 * 7.5% = $75

  Year     Inflows    Pvf at 5%     Present value

      1            75        0.952381     71.43

      2            75       0.907029    68.03

      3            75       0.863838     64.79

      4            75       0.822702     61.70

      4           1000    0.822702     822.70

   Total                                       1,088.65

Price of Bond, when yield to maturity is 5% = $1088.65

1.2   Year     Inflows    Pvf at 5.2%     Present value

           1            75          0.95057           71.29

          2            75          0.9035839        67.77

          3            75          0.85892             64.42

          4            75          0.816464            61.23  

          4          1000        0.816464            816.46

Total                                                           1,081.18

Price of Bond, when yield to maturity is 5.2% =$1081.18

1.3  Change in price of Bond = (Decrease in price of bond / price of bond ) * 100

= $7.47 / 1088.65 *100

= 0.69%

Change in price of Bond when yield increases by 0.2%( i.e Decrease in price of bond)

= $1088.65 - $ 1081.18

= $7.47

1.4   Year    Inflows    Pvf at 5%       P. value    Year*P. value

        1          75          0.9523809    71.43            71.43

        2         75          0.907029       68.03           136.05

        3         75          0.863838        64.79           194.36

        4         75          0.822702        61.70            246.81

        4        1000       0.822702       822.70         3,290.81

     Total                                           1,088.65        3,939.47

Modified duration = Bond duration / ( 1+YTM)

= 3.6187 / ( 1+0.05)

= 3.446

Bond Duration = Sum of (PV of inflows) / Sum of (Year*PV of inflows)

= $3,939.47 / $1088.65

= $3.6187

1.5 % Change in price of bond = (-1 * Modified duration * % change in YTM in term of basis point)

= ( -1 * 3.446 * 0.2)

= -0.69 %


Related Questions

Two types of multitasking are:
O Competitive tasking and complex tasking
O Task switching and dual tasking
O Task switching and competitive tasking

Answers

The second option is the correct one.

What is a sign of a healthy economy

Answers

Answer:

When there are more jobs, better wages and lower interest rates, spending power rise it can have a strong effect on stock prices.

The sign of the healthy economy is that there is an employment opportunity, lower level of poverty, high rate of literary and  strong effect on stock prices.

What is Economy?

Economy refers to the financial condition of the person or any particular country for the given period of time. It is the method or system through which commodities and services are manufactured, sold, and purchased in a country or area.

The Consumer Confidence Index (CCI) is widely regarded as one of the most precise indicators of consumer sentiment toward the economic system and their individual circumstances. Confidence and spending power rise when there are more jobs, higher wages, and lower interest rates.

Therefore, it can be concluded that When there are more employment, higher incomes, and lower interest rates, spending power increases, which can have a significant impact on stock values.

Learn more about economy here:

https://brainly.com/question/2421251

#SPJ2

Define ATS and describe its use.. Why would large companies
use an ATS ?

Answers

Answer:

An applicant tracking system (ATS) is a human resources software that acts as a database for job applicants.

"Group decision making is better". Do you agree or disagree with the statement? Give 3 reasons why do you say so?​

Answers

Answer:

I agree because it make the group bring out more ideals

sometimes group decision make some people to voice out their problems

group decision help organization and firms to operate in good aims

This chapter is all about trade--imports and exports and the balance of payments.

Answers

I just need for point

What is the MOST effective way to express a communication goal?
Say it out loud but don't write it down.
Write it as a series of bullet points.
Write it as a complete sentence.
Draw a diagram of it.

Answers

Writing it as a complete sentence is the most effective way to express a communication goal. The correct option is C. Effective communication aims to transmit a message that is fully understood by the recipient and has the function of informing, motivating, or posing a question.

What is an effective way you use to communicate?

Make eye contact, speak clearly, and keep your tone consistent. Maintain an open and easygoing body language. Add a summary as a conclusion, then quit. Even if it causes a pause in the conversation, summarize your response before ceasing all further speaking.

Eliminate all ambiguity in communication. Increase the rate of communication response. Create and strengthen relationships. Deliver communications in more different ways. Describe your motivation. Use reinforcement to effect change for the better.

Thus, the ideal selection is option C.

Learn more about communication here:

https://brainly.com/question/22558440

#SPJ5

Thus, the ideal selection is option C.

Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $420,000 on sales of $1,500,000. The company’s average operating assets for the year were $1,700,000 and its minimum required rate of return was 15%.



Required:

Compute the company’s residual income for the year.

Answers

Answer: 165,000

Explanation:

To compute the company’s residual income for the year, we can use the formula:

Residual Income = Net Operating Income – (Minimum Required Rate of Return x Average Operating Assets)

Given: Net Operating Income = $420,000 sales = $1,500,000

Average Operating Assets = $1,700,000

Minimum Required Rate of Return = 15% = 0.15

Residual Income = Net Operating Income – (Minimum Required Rate of Return x Average Operating Assets)

Residual Income = $420,000 – (0.15 x $1,700,000)

Residual Income = $420,000 – $255,000

Residual Income = $165,000

Therefore, the company’s residual income for the year was $165,000.

If leaseplan continues its diversity management activities, as described in the case, select the most closely aligned statistics to ots potential outcome

Answers

Tolerate is Thomas's generic action options for managing diversity is most illustrated in the case. Thus, option D is correct.

What is diversity?

Diversity can be defined as the part of the workforce where there is a significant benefit to having a diverse workforce; this can be based on social or ethnic background; this is the state of the variety of people employed in the company.

The lease plan is satisfied that there is gender diversity, which is supported. As there are various numbers of male as well as female employees that are a part of the lease plan. As the number of women working in the company grows, this will demonstrate how the other gender is treated.

Therefore, option D is correct.

Learn more about diversity, here:

https://brainly.com/question/14696671

#SPJ1

The question is incomplete, Complete question probably will be  is:

Leaseplan Effectively Manages Diversity The term, glass ceiling, was used to represent an absolute barrier or solid roadblock that prevented women from advancing to higher-level positions. The ceiling resulted in women finding themselves stuck in lower-level jobs, ones that did not have profit and loss responsibility, and jobs with less visibility, power, and influence. This scenario is changing. This case illustrates the Leaseplan Effectively Manages Diversity The term, glass ceiling, was used to represent an absolute barrier or solid roadblock that prevented women from advancing to higher-level positions. The ceiling resulted in women finding themselves stuck in lower-level jobs, ones that did not have profit and loss responsibility, and jobs with less visibility, power, and influence. This scenario is changing. This case illustrates the impact motivated leadership and changing company policies can have on gender diversity in the workplace. According to the United States Department of Labor, compared to women comprising 21 percent of the workforce in 1920, women comprised nearly half of the workforce in the United States in 2013, making gender diversity issues more and more important. This activity asks you to identify and apply your knowledge of such aspects of diversity. Read the case below and answer the questions that follow. In 2003, the representatives of LeasePlan USA's top customers were mostly women, as was the majority of the company's employees. However, men represented a large majority of top managers at the company, reflecting the old-boys network type culture that dominated the fleet industry. New leadership decided to change this and provided career counseling to women, revised reward systems to focus on performance instead of seniority, and replaced some existing managers. Two years ago, only one of seven top executives was a woman. Now, three of the top eight executives are women. The company's new chief executive claims that these changes are motivated by strategy rather than political correctness. He says, "LeasePlan doesn't build anything...Our sustainable competitive advantages are people." LeasePlan now also implements a development program catered specifically for female employees. The program includes skills assessments, career guidance, communications, brand building, and panel discussions with female executives from other companies. Which of Thomas's generic action options for managing diversity is most illustrated in the case? Multiple Choice suppress

isolate

deny

include/exclude

tolerate

how will you react to the following destroying or removing information that could hurt your company if it fell into the wrong hands.

Answers

I will say it is crucial to prioritize ethical behavior and transparency. Instead of destroying or removing information, we should focus on implementing robust security measures to safeguard sensitive data.

How can we protect sensitive information from unauthorized access?

Protecting sensitive information from unauthorized access is essential for companies to maintain trust with their stakeholders. Instead of resorting to destroying or removing information, it is more beneficial to invest in robust security measures.

By implementing strong encryption, access controls, and regular security audits, we will significantly reduce the risk of sensitive data falling into the wrong hands. Also, fostering a culture of responsible data handling and training employees on best security practices can further enhance the overall protection of company information.

Read more about Confidentiality

brainly.com/question/29417102

#SPJ1

You are given the following information for Lightning Power Company. Assume the company’s tax rate is 24 percent.

Debt: 9,000 5.8 percent coupon bonds outstanding, $1,000 par value, 24 years to maturity, selling for 106 percent of par; the bonds make semiannual payments.
Common stock: 420,000 shares outstanding, selling for $60 per share; beta is 1.11.
Preferred stock: 18,000 shares of 3.6 percent preferred stock outstanding, a $100 par value, selling for $81 per share.
Market: 5 percent market risk premium and 4.6 percent risk-free rate.
What is the company's WACC?

Answers

The Weighted Average Cost of Capital (WACC) for Lightning Power Company is 9.84%.

To calculate the Weighted Average Cost of Capital (WACC) for Lightning Power Company, we need to determine the cost of each component of its capital structure and their respective weights. The WACC is the weighted average of these costs.

Cost of Debt:

The debt component consists of 9,000 bonds with a 5.8 percent coupon rate, a $1,000 par value, and selling for 106 percent of par. The semiannual coupon payment is calculated as (5.8% * $1,000) / 2 = $29.

The current market price of the bond is 106% of $1,000, which is $1,060. The yield to maturity (YTM) can be calculated using financial calculators or Excel. Let's assume the YTM is 4.5%. Therefore, the cost of debt is 4.5%.

Cost of Common Stock:

The cost of common stock is determined using the Capital Asset Pricing Model (CAPM). The risk-free rate is given as 4.6%, and the market risk premium is 5%. The beta for Lightning Power Company's common stock is 1.11.

Using the CAPM formula: Cost of equity = Risk-free rate + Beta * Market risk premium. Therefore, the cost of equity is 4.6% + 1.11 * 5% = 9.71%.

Cost of Preferred Stock:

The cost of preferred stock is the dividend yield, which is the preferred dividend divided by the market price per share. The preferred stock has a 3.6% dividend yield, and it is selling for $81 per share. Therefore, the cost of preferred stock is 3.6% / $81 = 4.44%.

Next, we need to determine the weights of each component based on their market values. The market value of debt is 9,000 * $1,060 = $9,540,000. The market value of common stock is 420,000 * $60 = $25,200,000.

The market value of preferred stock is 18,000 * $81 = $1,458,000. The total market value of the company's capital structure is $36,198,000.

Now we can calculate the WACC using the formula:

WACC = (Weight of Debt * Cost of Debt) + (Weight of Equity * Cost of Equity) + (Weight of Preferred Stock * Cost of Preferred Stock).

Weight of Debt = $9,540,000 / $36,198,000 = 0.2639 (26.39%)

Weight of Equity = $25,200,000 / $36,198,000 = 0.6961 (69.61%)

Weight of Preferred Stock = $1,458,000 / $36,198,000 = 0.0401 (4.01%)

Plugging in the values, we get:

WACC = (0.2639 * 4.5%) + (0.6961 * 9.71%) + (0.0401 * 4.44%) = 2.88% + 6.78% + 0.18% = 9.84%.

For more such question on Cost. visit :

https://brainly.com/question/28147009

#SPJ8

Which of the following is a sign that you have a budget deficit?

Answers

When liabilities outweigh assets, imports outweigh exports, or expenses over revenues, a deficit results. The national debt is increased by federal budget deficits. Government spending and tax policies are used by fiscal policy to affect macroeconomic factors such as inflation, employment, and total demand.

What are liabilities?

The term "liability" can refer to both being held accountable for something as well as owing someone money or services. A homeowner's tax liability, for instance, may be determined by how much in property taxes he must pay to the city or in income taxes to the federal government. Financial accounting defines liabilities as the obligations a company has to its customers. Money owing to suppliers, or accounts payable, is a typical liability for small firms. On a company's balance sheet, a typical financial statement produced by financial accounting software, you can see liabilities.

To learn more about  liabilities click,

https://brainly.com/question/14921529

#SPJ1

Most people in the US own stocks or bonds primarily through

Answers

Answer:

There 401k or other retirement accounts

Explanation:

most people are provided these through there jobs and are provided so they do not have to do any research themselves

ratio analysis is important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and interpreting numbers. qualitative factors also need to be considered.

Answers

Qualitative factors include the company's management team, competitive position, industry trends, and economic outlook. these factors provide a more complete picture of the company's financial performance and outlook.

Qualitative factors help to determine whether or not a company is a good investment. They can also influence a company's stock price. For example, a company's management team is important in determining the overall success of a company.

If the management team is experienced and knowledgeable, the company may have a better chance of achieving its goals and thus, have a higher stock price.

Similarly, if the competitive position of a company is strong, it may be more attractive to investors, resulting in a higher stock price. Similarly, industry trends and economic outlook can also influence a company's stock price.

To learn more about Qualitative factors link is here

brainly.com/question/14265131

#SPJ4

provide 2 examples from the news of firms in perfectly competitive markets. Discuss how costs impact these firms' profitability.

Answers

A theoretical market structure known as pure or perfect competition occurs when several requirements, including perfect information and resource mobility, are met.

What are some instances of markets that are completely competitive?

Take into account a farmers market where every seller is selling the same brand of jam. Since they all use the same recipe and charge the same price for their products, there is little difference between them. Price is determined by the forces of supply and demand in a market with perfect competition. Both the supply of goods from suppliers and the demand for goods from consumers affect prices .

To know more about  competitive  markets click on the link below:

https://brainly.com/question/28267513

#SPJ1

Coronado, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.

Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity
Designing $452,925 13,500 designer hours
Sizing and cutting 4,250,150 167,000 machine hours
Stitching and trimming 1,400,525 75,500 labor hours
Wrapping and packing 339,450 31,000 finished units

Required:
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools.

Answers

Answer:

Activity Cost Pools   Est. Overhead   Est. Use      Rate             Per

Designing                    $452,925         $13,500     $33.55   Designer hours

Sizing and cutting      $4,250,150       $167,000   $25.45   Machine hours

Stitching & trimming   $1,400,525       $75,500     $18.55    Labor hours

Wrapping & packing   $339,450         $31,000      $10.95    Finished units

At the end of its annual accounting period, the company must make three adjusting entries.
a. Accrue salaries expense.
b. Adjust the Unearned Revenue account to recognize earned services revenue.
c. Record services revenue earned for which cash will be received the following period.
For each of these adjusting entries, indicate the account to be debited and the account to be credited.
a. Debit
a. Credit
b. Debit
b. Credit
c. Debit
c. Credit

Answers

There are four different sorts of accounts that require adjusting. They are deferred revenues and expenses as well as accumulated revenues and expenses. Money earned during one accounting period but not received until another is referred to as accrued revenue.

What is accounting?

Accounting is the activity of keeping records of a company's financial transactions. Journal entries are how the accountants condense the transactions. In bookkeeping, these entries are utilized.

According to the rules set forth by the auditors and other governing agencies, the accountants create the books of accounts. The accountants may adhere to IFRS (International Financial Reporting Standards) or generally accepted accounting principles (GAAP)

An analyst can gain a good picture of the company's financial status by reading the book of accounts. Therefore, the book of accounts is required to determine the firm valuation for publicly traded corporations.

The financial statements of a big company provide an overview of its operations, financial situation, and cash flows during a specific time period.

Learn more about accounting, here

https://brainly.com/question/22917325

#SPJ1

WHAT IS OPERANT CONDITIONG

Answers

Operant conditioning is a type of associative learning process through which the strength of a behavior is modified by reinforcement or punishment. It is also a procedure that is used to bring about such learning.

Answer:

Operant conditioning is a type of associative learning process through which the strength of a behavior is modified by reinforcement or punishment. It is also a procedure that is used to bring about such learning.

Operant conditioning refers to the conditioning of behaviours and responses that are under the control of animals and human beings and are emitted voluntarily by them. The behaviour is learned, maintained or changed through its consequences called reinforcers.

You decide to attend college next fall. List 3 or more opportunity costs and 3 or more opportunity benefits of ading college next fall.​

Answers

Answer:

Explanation:

Opportunity Costs for going to college

1. Cost of college tuition

2. Loss of income for getting a job right away instead of going to college

3. Time spend at college could be used of something else such as a hobby

Benefits for going to College

1. Getting a job with a higher salary

2. More job opportunities being available (i.e. jobs that require you be attending college or already have college degree)

3. Life experience you may gain attending college (such as mentoring from professors, joining clubs, etc.)

Discuss bureaucracy as a reason to public sector failure

Answers

Bureaucracy is often cited as a reason for public sector failure. Here are some steps to understand how bureaucracy can contribute to public sector failure:

Definition of bureaucracy: Bureaucracy refers to the complex administrative structure of government organizations, which can involve numerous layers of decision-making and approval processes.Impact on decision-making: Bureaucratic processes can often slow down decision-making, as multiple levels of approval may be required for even simple actions. This can make it difficult for public sector organizations to respond quickly to changing circumstances or to take decisive action.Lack of innovation: Bureaucratic structures can be resistant to change, which can make it difficult to implement new ideas or to innovate. This can lead to stagnation and a lack of progress within public sector organizations.Inefficient use of resources: Bureaucratic processes can lead to inefficiencies in the use of resources, as decisions may be delayed or resources may be misallocated. This can result in wasted time and money, which can contribute to public sector failure.Lack of accountability: Bureaucratic structures can make it difficult to assign responsibility for failures or to hold individuals or departments accountable for their actions. This can create a culture of complacency within public sector organizations, where individuals feel that they can avoid blame or consequences for their actions.Lack of transparency: Bureaucratic processes can be opaque and difficult to understand, which can make it difficult for members of the public to hold public sector organizations accountable for their actions. This lack of transparency can contribute to a lack of trust in government institutions and can further undermine their effectiveness.

Bureaucracy can be a significant factor in public sector failure. By slowing down decision-making, stifling innovation, wasting resources, and creating a culture of complacency and opacity, bureaucratic structures can impede the effectiveness of government organizations and erode public trust in their ability to deliver essential services.

Match each term in Column A with its definition in Column B. (Column A)
1. excise tax
2. sales tax
3. indirect tax
4. protective tariff
5. ability-to-pay
6. regressive tax
7. payroll tax
8. personal income
tax
9. progressive tax
10. corporate
income tax
11. property tax
(Column B)
a. a tax that takes a larger percentage of a low
income than of a high income
b. the principle that those who can best afford to
pay taxes should do so
c. a tax on the manufacture or sale of a specific
good or service
d. a tax paid by homeowners
e. a tax on the earnings of corporations
f. a local or state tax levied on a wide range of
consumer items
g. an income tax on the earnings of individuals
h. a high tax on foreign-made goods to discourage
their purchase
i. a hidden tax
j. a tax that takes a larger percentage of a high
income than of a low income
k. a tax that finances the nation's Social Security
program.

Answers

Answer:

1. c

2. f

3. i

4. h

5. b

6. a

7. k

8. g

9. j

10.e

11. d

Explanation:

took the quiz and made a 100

1. Excise tax ⇒c). a tax on the manufacture or sale of a specific good or service,

2. sales tax ⇒ f). a local or state tax levied on a wide range of consumer items,

3. indirect tax ⇒ i). a hidden tax,

4. protective tariff ⇒ h). a high tax on foreign-made goods to discourage their purchase,

5. ability-to-pay ⇒b). the principle that those who can best afford to pay taxes should do so,

6. regressive tax ⇒ a. a tax that takes a larger percentage of a low income than of a high income,

7. payroll tax ⇒ k. a tax that finances the nation's Social Security program,

8. personal income tax ⇒ g. an income tax on the earnings of individuals,

9. progressive tax ⇒ j. a tax that takes a larger percentage of a high income than of a low income,

10. corporate income tax ⇒ e. a tax on the earnings of corporations,

11. property tax ⇒d. a tax paid by homeowners

What is a tax?

A tax is a compulsory financial charge or a kind of levy that is imposed on a taxpayer by a governmental organization.

It is an amount that an individual has to pay according to their income, the value of their property, etc.

Tax is used to pay for the things done by the government.

Learn more about tax here:-

https://brainly.com/question/16423331

#SPJ2

Ellen earns 12 dollars for walking the neighbor's dog. Last month, she walked the dog w times. Choose the expression that shows the number of dollars Ellen earned last month.

Answers

The expression that would help to show the amount that Ellen earned for the job that she did in the month is p = 12w

How to find the pay

We have the following information to solve the problem with.

The amount that is paid and time that she walks this dog is 12 dollars.

In the month that we have here, she is said to have walked the dog for a total of w times.

That is to get the amount that she would be paid, we are to multiply w with 12

P = 12 * w

p = 12w

Hence the amount that Ellen is paid would be p = 12w for the work that she did last week.

Read more on amount paid here: https://brainly.com/question/26670496

#SPJ1

Valerie set up a social organization

Answers

Valerie promoted her non-profit organization by means of public service announcements. These are not used to promote a product or service but rather to raise public awareness of a cause or mission.

What are the various types of social organization?

There are two broad categories of social organizations: those that originate from members' free and voluntary associations and those that originate from members' kinship. It is possible to provide a brief analysis of a few of these organizations.

Why is social organization important?

For professionals working in the fields of prevention, intervention, and program development, social organization serves as a number of compass points. Social networks, social capital, and community capacity the three main components of social organization—represent adaptable aspects of family and individual life.

Question is incomplete

Valerie set up a social organization (non-profit) to help people who had suffered losses because of hurricanes. She decided to release a series of television advertisements to create awareness about her cause and to request donations for helping the victims. What kind of marketing did Valerie use for her NGO? Valerie used to spread awareness about her NGO.

Learn more about social organisation:

brainly.com/question/10578687

#SPJ1

discuss the 8-point socioeconomic agenda of the marcos administration

Answers

President Ferdinand "Bongbong" Marcos Jr.'s economic team unveiled his administration's eight-point economic program on Monday.

What exactly did Bongbong Marcos do?

From 1992 until 1995, Marcos served as the Representative of Ilocos Norte's 2nd congressional district. In 1998, he was re-elected Governor of Ilocos Norte. He returned to his old post as Congressman from 2007 to 2010, then as Senator for the Nacionalista Party from 2010 to 2016.

Marcos, who governed by decree after that, restricted press freedom and other civil freedoms, disbanded Congress, controlled media outlets, and ordered the imprisonment of opposition leaders and militant activists, including his staunchest adversaries, Senators Benigno Aquino Jr. and Juan Ponce Enrile.

To know more about administration's visit:-

https://brainly.com/question/29994801

#SPJ9

the legal affairs attorney working at AMD would most likely occupy an

Answers

The legal affairs attorney working at AMD would most likely occupy an in-house counsel position.

What is inhouse counsel

An in-house counsel is a lawyer who is employed by a company or organization to provide legal advice and representation on a range of legal issues related to the company's operations, contracts, intellectual property, compliance, and litigation.

The role of an in-house counsel is to ensure that the company's actions and policies comply with relevant laws and regulations and to represent the company in legal proceedings when necessary. The in-house counsel works closely with the company's executives and employees to provide legal guidance and to identify and mitigate potential legal risks.

Read more on legal affairs here:https://brainly.com/question/1922718

#SPJ1

a. The Marketing Department has estimated sales as follows for the remainder of the year (in units):
July
August
30,000 October
70,000
November
September 50,000
December
The selling price of the beach umbrellas is $12 per unit.
b. All sales are on account. Based on past experience, sales are collected in the following pattern:
20,000
10,000
10,000
30% in the month of sale
65% in the month following sale
5% uncollectible
Sales for June totaled $300,000.
c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requ
end of June.
d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, th
the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory
beginning and end of the quarter will be:

a. The Marketing Department has estimated sales as follows for the remainder of the year (in units):JulyAugust30,000

Answers

The Marketing Department projects the following sales for the remaining months of the year (in units): 30,000 in July, 50,000 in August, 70,000 in September, 30,000 in October, and 10,000 in December. The remaining sales for the year will total $1,080,000 at a selling price of $12 per unit.

b. According to prior sales data, 20% of June's sales will be collected in the month of the sale, 65% of sales will be collected in the month after the sale, and 5% of sales will be uncollectible. Thus, $240,000 will be the entire amount collected in June.

c. The business keeps completed products inventories equivalent to 15% of the sales for the following month. As a result, the final completed products inventory for June will be $90,000.

Learn more about Marketing   at:

https://brainly.com/question/14083500

#SPJ1

Your friend Stan owns a coffee shop in a monopolistically competitive industry. One day, Stan tells you (an economist) that he is earning an economic profit and is setting his price equal to his marginal cost. Is Stan producing the profit-maximizing amount of coffee? What should he do?

Answers

In a monopolistically competitive industry, each firm has some control over the price it sets due to product differentiation.

Stan mentioned that he is earning an economic profit and setting his price equal to his marginal cost. To determine whether he is producing the profit-maximizing amount of coffee, we need to consider a few factors.
1. First, let's understand the relationship between price, marginal cost, and profit maximization. In a competitive market, profit maximization occurs where marginal cost equals marginal revenue. However, in monopolistic competition, firms have some market power, so the profit-maximizing quantity occurs where marginal cost equals marginal revenue, not price.
2. Setting the price equal to marginal cost does not necessarily guarantee profit maximization. If Stan's price is equal to marginal cost, it means that he is covering his variable costs, but it does not take into account his fixed costs. To maximize profit, Stan should set his price above marginal cost, considering both variable and fixed costs.
3. If Stan is currently earning an economic profit, it suggests that he may not be producing the profit-maximizing amount of coffee. In monopolistic competition, firms tend to have excess capacity, meaning they produce less than the quantity that would minimize average total cost. By increasing his output, Stan may be able to reduce his costs and increase his profit.

Considering these factors, here are a few suggestions for Stan:
- Conduct a cost analysis: Stan should evaluate his fixed and variable costs to understand the full picture of his expenses. By knowing his costs, he can set a more informed price and determine the profit-maximizing quantity.
- Consider demand elasticity: Stan should also assess the price elasticity of demand for his coffee. If demand is relatively elastic, a small price increase may result in a significant decrease in quantity demanded, potentially reducing his profits. On the other hand, if demand is inelastic, Stan may be able to increase his price without a significant drop in sales.
- Experiment with pricing: Stan could consider experimenting with different prices to find the optimal point that maximizes his profit. By monitoring customer response to different prices, he can identify the price that generates the most revenue while covering his costs.

By taking these steps and considering the unique characteristics of monopolistic competition, Stan can better position his coffee shop for long-term success and profitability.

For more such questions on monopolistically competitive industry

https://brainly.com/question/25717627

#SPJ8

Required Materials
Word processing software
Imagine you and a friend are in college. You decide you want to open a coffee shop on campus next to the university’s dining room. You make your appeal to the administration by expressing how having a coffee shop on university grounds will help fellow students save time and money since they will not have to go off campus to purchase their favorite hot beverages and baked goods. The administration is open to the idea and praises your entrepreneurial spirit. They ask you to research the business ownership structure that would be most appropriate by comparing and contrasting the structures, and report back to them in two weeks.

Follow these steps to complete this activity. You will create a chart, a Venn diagram, and a report based on the directions below.

Step 1: Compare and Contrast Chart
Create a compare and contrast chart of the following business structures:
sole proprietorship
partnership
limited liability corporation
Include at least three advantages and disadvantages of each structure, including the legal implications of each ownership structure.
Step 2: Create a Venn diagram
Create a Venn diagram transferring the details from the chart.
Identify those characteristics that are similar in the cross section.
Place contrasting characteristics in the outer rings.
Step 3: Compile a Report
Determine which structure would be most appropriate for the coffee shop.
Compile a report identifying the structure you chose.
Provide three reasons explaining your choice.

Answers

The steps are given below

Step 1: Compare and Contrast Chart

Business Structure Advantages Disadvantages

Sole Proprietorship Easy to start and manage Unlimited personal liability

Full control over business operations Limited access to capital and credit

Profits are taxed as personal income Difficulty attracting top talent

Partnership Shared management and financial responsibility Unlimited personal liability

Ability to share risk and expertise Potential for disputes between partners

Flexibility in decision making Profits are taxed as personal income

Limited Liability Company Limited personal liability for owners More complex and expensive to set up than other structures

Flexible taxation options Less flexibility in ownership and management structure

Enhanced credibility and access to funding Compliance requirements and ongoing administrative tasks

Step 3: Compile a Report

After considering the advantages and disadvantages of each business structure, we recommend the limited liability company (LLC) for the coffee shop.

First, an LLC provides limited personal liability for owners, meaning that personal assets are protected from business liabilities.

Second, an LLC offers flexibility in taxation options, allowing the business to choose between being taxed as a partnership or a corporation. Lastly, an LLC can enhance the credibility of the business, making it easier to attract funding from investors or lenders.

Overall, an LLC provides the necessary protection and flexibility for the coffee shop to operate successfully while minimizing personal risk.

Read more about reports here:

https://brainly.com/question/29985480

#SPJ1

Can someone explain this to me?

Since inflation is already factored into the data, what is the most likely reason that the costs of a doctorate degree rise to such a high level?

Can someone explain this to me? Since inflation is already factored into the data, what is the most likely

Answers

The rate at which prices increase over a specific time period is known as inflation.

What is the meaning of Inflation?

Inflation is often measured in broad terms, such as the general rise in prices or the rise in a nation's cost of living.

Although low inflation might be detrimental, both levels can hurt the economy. The Fed will adopt the opposite strategy when the economy is having trouble or inflation is too low by cutting interest rates or purchasing assets to boost cash flow.

The main cost of inflation is the erosion of real income, which occurs when prices rise unevenly and cause some customers' purchasing power to decline. For both those who receive and pay fixed interest rates, inflation might over time affect their ability to make purchases.

Learn more about Inflation here:

https://brainly.com/question/30112292

#SPJ1

Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7)
The following information applies to the questions displayed below. The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:
Accounts Debits Credits
Cash $ 4,000
Accounts Receivable 9,000
Supplies 3,000
Equipment 26,000
Accumulated Depreciation$ 6,000
Accounts Payable 4,000
Utilities Payable 5,000
Deferred Revenue 0
Common Stock 18,000
Retained Earnings 9,000
Totals $ 42,000 $ 42,000
The following is a summary of the transactions for the year:
1. January 24 Provide plumbing services for cash, $15,000, and on account, $60,000.
2. March 13 Collect on accounts receivable, $48,000.
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
4. June 30 Pay salaries for the current year, $32,000.
5. September 15 Pay utilities of $5,000 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $8,000.
7. December 30 Pay $2,000 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $6,000.
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Of the $8,000 paid in advance by customers, $6,000 of the work has been completed by the end of the year.
Accrued utilities at year-end amounted to $7,000.
Prepare the income statement for the year ended December 31 2021.
Prepare an adjusting trial balance.

Answers

Answer:

Pipers Plumbing

a. Adjusted Trial Balance:

Cash                                  $46,000

Accounts Receivable          21,000

Supplies                                 1,000

Equipment                          26,000

Accumulated Depreciation                  $12,000

Accounts Payable                                    4,000

Utilities Payable                                       7,000

Deferred Revenue                                  2,000

Service Revenue                                   81,000

Common Stock                                    28,000

Retained Earnings                                 9,000

Salaries Expense               32,000

Dividends                             2,000

Depreciation Expense        6,000

Supplies Expense               2,000

Utilities Expense                 7,000

Totals                            $143,000 $143,000

Income Statement

For the year ended December 31, 2021

Service Revenue                                  $81,000

Salaries Expense               32,000

Depreciation Expense        6,000

Supplies Expense               2,000

Utilities Expense                 7,000        47,000

Net Income                                         $34,000

Retained Earnings                                  9,000

Dividends                                                2,000

Retained Earnings, Dec. 31, 2021      $41,000

Explanation:

a) Data and Calculations:

Account balances:

Accounts                     Debits     Credits

Cash                        $ 4,000

Accounts Receivable 9,000

Supplies                     3,000

Equipment               26,000

Accumulated Depreciation     $ 6,000

Accounts Payable                       4,000

Utilities Payable                          5,000

Deferred Revenue                     0

Common Stock                         18,000

Retained Earnings                     9,000

Totals                  $ 42,000  $ 42,000

T-accounts:

Cash

Date       Accounts              Debits     Credits

Jan. 1     Balance                $ 4,000

Jan. 24  Service Revenue   15,000

Mar. 13   Accts Receivable 48,000

May 6    Common Stock     10,000

June 30 Salaries                                $32,000

Sept. 15 Utilities                                     5,000

Nov. 24 Deferred Revenue 8,000

Dec. 30 Dividends                                 2,000

Dec. 31  Balance                               $46,000

Accounts Receivable

Date       Accounts                Debits     Credits

Jan. 1      Balance                $ 9,000

Jan. 24   Service Revenue 60,000

Mar. 13   Cash Account                       $48,000

Dec. 31  Balance                                  $21,000

Supplies

Date       Accounts              Debits     Credits

Jan. 1      Balance              $ 3,000

Dec. 31   Supplies Expense                $2,000

Dec. 31   Balance                                 $1,000

Equipment

Date       Accounts              Debits     Credits

Jan. 1      Balance            $ 26,000

Accumulated Depreciation

Date       Accounts              Debits     Credits

Jan. 1      Balance                               $ 6,000

Dec. 31   Depreciation                          6,000

Dec. 31   Balance              $12,000

Accounts Payable

Date       Accounts              Debits     Credits

Jan. 1      Balance                               $ 4,000

Utilities Payable

Date       Accounts              Debits     Credits

Jan. 1      Balance                               $ 5,000

Sept. 15  Cash                   $5,000

Dec. 31   Utilities Expense                    7,000

Dec. 31   Balance              $7,000

Deferred Revenue

Date       Accounts              Debits     Credits

Jan. 1      Balance                                 $ 0

Nov. 24  Cash                                       8,000

Dec. 31   Service Revenue $6,000

Dec. 31  Balance                   2,000

Service Revenue

Date       Accounts              Debits     Credits

Jan. 24   Cash Account                    $15,000

Jan. 24   Accounts Receivable          60,000

Dec. 31   Deferred Revenue                6,000

Dec. 31   Income Statement $81,000

Common Stock

Date       Accounts              Debits     Credits

Jan. 1   Balance                                 $ 18,000

May 6  Cash                                        10,000

Dec. 31 Balance               $28,000

Retained Earnings

Date       Accounts              Debits     Credits

Jan. 1   Balance                                 $ 9,000

Salaries Expense

Date       Accounts              Debits     Credits

June 30 Cash                   $32,000

Dividends

Date       Accounts              Debits     Credits

Dec. 30  Cash                   $2,000

Depreciation Expense

Date       Accounts              Debits     Credits

Dec 31   Acc Depreciation $6,000

Supplies Expense

Date       Accounts              Debits     Credits

Dec 31    Supplies             $2,000

Utilities Expense

Date       Accounts              Debits     Credits

Dec 31    Utilities Payable $7,000

the standard time required per unit of a product is 20 minutes. in a day of 8 working hours a worker gives an output of 30 units. if he gets a time rate of ` 20 per hour his total earning under halsey bonus scheme is

Answers

The bonus earned by the worker would be 30% of 2 hours, which is equal to 0.3 * 2 * $20 = $12.

The Halsey bonus scheme is a productivity-based incentive system that provides workers with a bonus based on the time saved in completing their assigned tasks. Under the Halsey bonus scheme, the worker receives a percentage of the time saved as a bonus.

In this scenario, the standard time required per unit of a product is 20 minutes, which is equivalent to 1/3 of an hour (20/60). The worker is able to produce 30 units in a day of 8 working hours, which means the total time taken for production is 30 units * 1/3 hour per unit = 10 hours.

Since the worker works for 8 hours in a day, the time saved is 10 hours - 8 hours = 2 hours. According to the Halsey bonus scheme, the worker is entitled to a percentage of the time saved as a bonus. The Halsey system typically allocates 30% of the time saved as a bonus.

Therefore, the bonus earned by the worker would be 30% of 2 hours, which is equal to 0.3 * 2 * $20 = $12.

In summary, under the Halsey bonus scheme, the worker's total earning would include the regular wages for 8 hours of work, which is 8 * $20 = $160, along with the bonus earned, which is $12. Hence, the worker's total earning under the Halsey bonus scheme would be $160 + $12 = $172.

For more such questions on bonus visit:

https://brainly.com/question/23424814

#SPJ8

Other Questions
Solve for X. Help please Which word best completes the sentence?She had a clear Choose... because she told the truth.answersconsciencecomposurehypothesisrepetition two blue and three red marbles are in a bag. you draw one marble at a time. what are the chances of getting two blue marbles? Give your views on how the law, the citizens and the community are victims of can support and protect human rights violations. This figure it made from part of a square and part of a circle. 10 5 10 5 The perimeter of this figure, rounded to the nearest whole number, is units. The area of this figure, rounded to the nearest whole number, is 40 SOuare units. List the USAF organizational structure from president to flight level Suppose you learned that the ZPA forms after the AER, leading you to develop the hypothesis that the AER is necessary for formation of the ZPA. If you removed the AER and looked for expression of Sonic hedgehog, how would that test your hypothesis? Division A of XYZ Co. produces units that can either be sold to outside customers or transferred to XYZs Division B. The following data are available from the last year: Division A Production capacity in units 20,000 Selling price per unit to outside customers $25 Variable cost per unit $15 Total fixed production and selling costs $80,000 Division B Number of units needed annually 4,000 Price per unit paid to an outside supplier $18 Suppose that the Division A can only sell 16,000 units annually to outside customers. If 4,000 units are transferred internally at a transfer price of $17, how much better off or worse off would the company as a whole be? A. $12,000 better off B. $12,000 worse off C. $4,000 worse off D. $4,000 better off 4. What combination of carbonyl compound and phosphorus ylide could you use to prepare the following alkenes? a) ch3ch2ch(ch3)ch=chch3 b) (ch3)2c=chc6h5 The portion of the mass that remains the same in every celebration of the service is called? Calculate Bank Discount (Interest), Proceeds, and Effective RateC. Face value =$4,000Rate=9%Term=1 Year hat other characteristics do biomes that are classified as "high latitude" share? Why? (4 points) How many solutions does the system of equations have?a. no solutionb. one solution x=0, y=5c. One solution x=1, y=4d. Infinitely many solutions Even at rest, the human body generates heat. The heat arises because of the body's metabolism - that is, the chemical reactions that are always occurring in the body to generate energy. In rooms designed for use by large groups, adequate ventilation or air conditioning must be provided to remove this heat. Consider a classroom containing 138 students. Assume that the metabolic rate of generating heat is 128 W for each student and that the heat accumulates during a 60-minute lecture. In addition, assume that the air has a molar specific heat of CV = 5/2R and that the room (volume = 1190 m^3, initial pressure = 1.01 x 10^5 Pa, and initial temperature = 21.0 C) is sealed shut. If all the heat generated by the students were absorbed by the air, by how much would the air temperature rise? which file is used to track the point up to which transactions in the log file have been committed? Sherry will mail a squarephoto to her grandma.The area of the photo isabout 71.4 square inches.All of Sherry's envelopesare perfect squares.What's the length of oneside of the smallestenvelope she can use? 9. The acceleration (a)-time (t) graph of a particle moving in a straight line is as shown in figure. At time t = 0, the velocity of particle is 10 m/s. What is the velocity at t = 8 s?(1) 2 m/s (2) 4 m/s (3) 10 m/s(4) 12 m/s Cancer is the uncontrolled growth of cells which of the following would be most likely to cause cancer in a baseball game, a batter hits the 0.150-kgkg ball straight back at the pitcher at 180 km/hkm/h . part a if the ball is traveling at 160 km/hkm/h just before it reaches the bat, what is the magnitude of the average force exerted by the bat on it if the collision lasts 3.0 msms ? express your answer with the appropriate units. What is the value of -6? 12 -12 36 -36