Consider the following bonds: Bond А B Coupon Rate (annual payments) 0.0% 0.0% 4.2% 8.3% Maturity (years) 15 10 15 10 с D Which of the bonds A to D is most sensitive to a 1% drop in interest rates from 6.2% to 5.2%? Which bond is least sensitive? Bond is most sensitive. (Select from the drop-down menu.)

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Answer 1

Bond A is the most sensitive, and Bond D is the least sensitive to a 1% drop in interest rates.

Considering the given bonds A, B, C, and D, we can determine their sensitivity to a 1% drop in interest rates by analyzing their duration. Duration is a measure of a bond's price sensitivity to changes in interest rates, and it depends on the bond's coupon rate, maturity, and the change in interest rates.

Bond A: 0.0% coupon rate, 15 years maturity
Bond B: 0.0% coupon rate, 10 years maturity
Bond C: 4.2% coupon rate, 15 years maturity
Bond D: 8.3% coupon rate, 10 years maturity

In general, bonds with longer maturities and lower coupon rates are more sensitive to changes in interest rates. Therefore, among these bonds, Bond A, with the longest maturity (15 years) and the lowest coupon rate (0.0%), would be the most sensitive to a 1% drop in interest rates from 6.2% to 5.2%.

On the other hand, bonds with shorter maturities and higher coupon rates are less sensitive to changes in interest rates. In this case, Bond D, with the shortest maturity (10 years) and the highest coupon rate (8.3%), would be the least sensitive to the 1% drop in interest rates.

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Related Questions

What is the promised yield on a corporate bond that is currently priced at $950 and will pay $1,050 in 1 year

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The promised yield on the corporate bond is 10.53%.

To calculate the promised yield on a corporate bond, we can use the following formula:

Promised yield = (Face value - Price)/Price

where the Face value is the amount the bond will pay at maturity.

In this case, the face value of the bond is $1,050 and the current price is $950. Plugging these values into the formula, we get:

Promised yield = (1,050 - 950)/950 = 0.1053 or 10.53%

Therefore, the promised yield on the corporate bond is 10.53%.

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Fran purchased an annuity that provides $6,600 quarterly payments for the next 10 years. The annuity was purchased at a cost of $99,000. How much of the first quarterly payment will Fran include in her gross income

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Fran will include $1,650 of the first quarterly payment in her gross income.


To determine how much of the first quarterly payment Fran will include in her gross income, we first need to calculate the taxable portion of each payment. This is done using the exclusion ratio, which is the original investment divided by the expected return.

In this case, the original investment is $99,000 and the expected return is $26,400 per year (or $6,600 per quarter). Therefore, the exclusion ratio is 99,000 / 26,400 = 3.75.

To calculate the taxable portion of the first quarterly payment, we multiply the payment amount ($6,600) by the exclusion ratio (3.75) and round to the nearest dollar. This gives us:

$6,600 x 3.75 = $24,750
Round to nearest dollar: $24,750 = $24,750

So Fran will include $1,650 ($24,750 / 15) of the first quarterly payment in her gross income.

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Why would three partners who own a small graphic design business fit into what Erik Olin Wright calls contradictory class locations

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Erik Olin Wright's contradictory class locations refer to situations where individuals occupy positions in the class structure that embody conflicting class interests or have a mix of both exploitative and non-exploitative relations with others. In the case of the three partners in a small graphic design business, they may find themselves in contradictory class locations due to the following reasons:

1. As owners of the business, they may be considered capitalists who benefit from the profit generated by their employees' labor. This places them in a higher class position, as they have control over the means of production.

2. However, as partners in a small business, they likely participate in the day-to-day operations of the company, working alongside their employees. This means they also share some characteristics with the working class, as they engage in the direct production of goods and services.

3. Additionally, if the partners have varying levels of ownership or decision-making power within the business, they may occupy different positions within the class structure, leading to contradictory class locations among the partners themselves.

In summary, the three partners who own a small graphic design business can fit into Erik Olin Wright's contradictory class locations due to their dual roles as both owners and workers, as well as potential differences in ownership and decision-making power among them. This unique position within the economic system highlights the complex nature of class relations in contemporary society.

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Money market refers to: a) A collection of highly liquid short term investments b) The market on which different currencies are bought and sold c) The market the Federal Reserve uses to buy up old bills and coins

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The money market refers to a) A collection of highly liquid short-term. This market involves the trading of short-term debt instruments, such as treasury bills and commercial paper, between various financial institutions and investors.

Money market refers to a) A collection of highly liquid short term investments. This includes financial instruments such as Treasury bills, commercial paper, and certificates of deposit that have maturities of less than one year. These investments are considered low-risk and provide investors with a way to earn a modest return on their money while maintaining high levels of liquidity. Money market funds, which invest in these types of instruments, are a popular choice for investors who want to earn a competitive return on their cash reserves without taking on significant risk. In contrast, the market on which different currencies are bought and sold is known as the foreign exchange market, while the market the Federal Reserve uses to buy up old bills and coins is called the open market. I hope this provides a thorough and long answer to your question.

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Sparkling fragrances wants to place an advertisement in a magazine geared toward women. There are many women's magazines the firm can choose from and the particular magazine the firm selects is the

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Sparkling Fragrances wants to place an advertisement in a magazine geared toward women.

When it comes to advertising in women's magazines, there are many options for Sparkling fragrances to choose from. The firm should consider the target demographic of the magazine and whether it aligns with their brand image and product offerings. Some popular options include fashion magazines such as Vogue and Elle, lifestyle magazines such as Cosmopolitan and Glamour, and beauty magazines such as Allure and Harper's Bazaar. Additionally, the firm may want to consider the circulation and readership of each magazine, as well as the cost of advertising in each publication. Ultimately, the magazine that Sparkling fragrances selects should be one that reaches their desired audience and provides a strong return on investment.

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Your friend has a business she wants you to value. The business will not generate any money for the next three years, but in the fourth year it will start turning a profit and will make a payment (the first cash flow) of $150,000 to the owners at the end of the fourth year. Your friend expects to be able to grow the business, and the payments made to the owners, by 4% per year for 5 years, and the owners will receive their payments at year end. After this 5-year period, the business will shut down If the appropriate discount rate is 14%, what is the value of the business today?

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To value the business today, we need to calculate the present value of all future cash flows. We have only one cash flow in the fourth year, which is $150,000. To calculate the present value of this cash flow, we need to use the formula PV = CF/(1+r)^n, where PV is the present value, CF is the future cash flow, r is the discount rate, and n is the number of years until the cash flow is received. So, the present value of the cash flow in the fourth year is:

PV = 150,000/(1+0.14)^4
PV = $85,518.10

Next, we need to calculate the present value of the annual payments for the next five years, which are growing at a rate of 4% per year. We can use the formula for a growing perpetuity, which is PV = CF/(r-g), where g is the growth rate. The cash flows in this case are the annual payments, which are $150,000 growing at a rate of 4% per year. So, the present value of the annual payments is:

PV = 150,000/(0.14-0.04) * (1-(1.04/1.14)^5)
PV = $1,022,664.78

Finally, we add the present values of the cash flows in the fourth year and the annual payments for the next five years to get the total present value of the business today:

Total PV = $85,518.10 + $1,022,664.78
Total PV = $1,108,182.88

Therefore, the value of the business today, given the assumptions provided, is $1,108,182.88.

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The currency of Hamsterville is the snark. The central bank of Hamsterville recently engaged in expansionary monetary policy. What effect will expansionary monetary policy have on interest rates, the price level, and the exchange rate of the snark

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Expansionary monetary policy in Hamsterville is likely to have the following effects:

1. Interest Rates: Expansionary monetary policy involves increasing the money supply, which typically leads to a decrease in interest rates. By injecting more money into the economy, the central bank aims to stimulate borrowing and spending, which can lower interest rates and make credit more accessible. Lower interest rates encourage investment and consumption, thereby promoting economic activity.

2. Price Level: Expansionary monetary policy can contribute to an increase in the price level or inflation. By increasing the money supply, there is more money available for spending, which can lead to higher demand for goods and services. When demand exceeds supply, prices tend to rise. Therefore, expansionary monetary policy can put upward pressure on the price level.

3. Exchange Rate: Expansionary monetary policy may result in a depreciation of the snark's exchange rate relative to other currencies. When the central bank increases the money supply, it can create an oversupply of the currency, reducing its value. A lower value of the snark relative to other currencies means that it will take more snarks to buy the same amount of foreign currency. As a result, the exchange rate of the snark may weaken.

It's important to note that the exact impact of expansionary monetary policy on interest rates, the price level, and the exchange rate can vary depending on various factors such as the overall economic conditions, market expectations, and the effectiveness of the policy implementation by the central bank.

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The poverty line: Group of answer choices separates those on welfare from those not on welfare. equals the median income level. all of these. equals three times an economy food budget.

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The poverty line is a level of income used to determine the minimum amount of money required to meet basic needs.

It is defined as the amount of income that is necessary for a person or household to be able to afford basic necessities such as food, housing, and healthcare. The poverty line varies by country and is typically calculated as a percentage of the median income level. In the United States, the poverty line is determined by the federal government and is updated annually. It is currently calculated as three times the cost of a minimum food budget. The poverty line is an important metric used to assess the economic well-being of individuals and families and to determine eligibility for government assistance programs.

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If a Super Meal costs $1.00 more than a Regular Meal, economic analysis would argue that a customer should buy the Super Meal if:

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If the additional benefits provided by the Super Meal (such as larger portion sizes or additional menu items) are worth more than the extra $1.00 cost.

If a Super Meal costs $1.00 more than a Regular Meal, economic analysis would argue that a customer should buy the Super Meal If the additional benefits provided by the Super Meal (such as larger portion sizes or additional menu items) are worth more than the extra $1.00 cost.

This decision should be based on the customer's individual preferences and budget constraints. Additionally, if the Super Meal offers a better value in terms of cost per unit (such as cost per ounce or cost per calorie), it may also be a more economically efficient choice.

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Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm. If the two firms collude to maximize joint profits, the total profits for the two firms will be

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Based on the payoff matrix for a duopoly, If the two firms collude to maximize joint profits, the total profits for the two firms will be $525 million.

D is the correct answer.

If both the firms choose the high price strategy, Firm 1 will earn $325 million and Firm 2 will earn $200 million resulting in the total profit of $525 million for the two firms. This is the highest possible profit they can achieve by cooperating with each other.

A duopoly is defined as two dominant firms that produce the same or comparable goods and services in a market or industry. The main factors that make up a duopoly are the interactions and effects that the firms have on one another.

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The complete question is:

Firm A: High price A = $250A = $325; High price B = $250B = $200

Firm B: Low price A = $200A = $175; Low price B = $325B = $175

Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm. If the two firms collude to maximize joint profits, the total profits for the two firms will be:

A. $350 million

B. $400 million

C. $500 million

D. $525 million

The performance measurement system that combines information from most or all of the possible sources is known as ___________________. Select one: a. The behavioral observation scale b. A 360-degree performance appraisal c. The critical incidents technique d. Management by objectives e. Upward feedback

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The performance measurement system that combines information from most or all possible sources is known as a 360-degree performance appraisal. This type of appraisal gathers feedback from multiple sources including the employee, their peers, subordinates, and subordinates, providing a comprehensive view of the employee's performance.

This measurement system is particularly useful for identifying areas for improvement, as well as recognizing employee strengths. One of the techniques used within the 360-degree performance appraisal is the critical incidents technique. This involves collecting specific examples of an employee's behavior that demonstrate exceptional performance or areas for improvement. These incidents are then used as the basis for discussion during the appraisal process. Utilizing a measurement system that incorporates various sources of feedback provides a more accurate and comprehensive assessment of employee performance, enabling organizations to make more informed decisions regarding promotions, training, and development.

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Investco issued $30,000 of 6.25% bonds on January 1 at a discount of $2,107. Interest expense reported during the year totaled $1,875, while amortization amounted to $132. How much is the book value of the bonds on December 31

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Interest expense reported during the year totaled $1,875, while amortization amounted to $132.  The book value of the bond on December 31 is $30,000 - $1,975 = $28,025.

Investco issued $30,000 of 6.25% bonds at a discount of $2,107 on January 1. The discount is the difference between the face value of the bond and the amount actually received by the issuer. In this case, the amount actually received by Investco was $30,000 - $2,107 = $27,893. The annual interest payment on the bond is calculated as $30,000 x 6.25% = $1,875. The bond discount of $2,107 is amortized over the life of the bond, which is 10 years. The amortization amount is calculated as $2,107 / 10 = $211 per year. Therefore, the interest expense reported during the year is $1,875 and the amortization amount is $132. The total expense for the year is $1,875 + $132 = $2,007. The book value of the bond on December 31 is calculated as the face value of the bond minus the unamortized discount. The unamortized discount at the end of the year is calculated as the total discount minus the amount of discount that has been amortized, which is $2,107 - $132 = $1,975. Therefore, the book value of the bond on December 31 is $30,000 - $1,975 = $28,025.

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Under SEC Rule 605 of Regulation NMS, market centers, in their monthly reports on order execution, must disclose all of the following information EXCEPT: A trading volumes B speed of executions C rates of price improvement D fill rates

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Under SEC Rule 605 of Regulation NMS, market centers are required to provide monthly reports on their order execution practices. These reports must include information such as fill rates, rates of price improvement, and the speed of executions. However,  A. trading volumes are not a required piece of information that market centers must disclose.

Fill rates refer to the percentage of customer orders that are filled in their entirety, while price improvement rates refer to the percentage of orders that receive a better price than the national best bid or offer. The speed of executions refers to the time it takes for an order to be filled from the moment it is received by the market center.

Market centers must disclose this information to ensure that investors have a clear understanding of the market's execution quality and how their orders are being executed. By providing this information, investors can make informed decisions about which market centers to use for their trades.

While trading volumes are an important piece of information to consider when evaluating a market center, they are not required to be disclosed under SEC Rule 605. Nevertheless, investors may still consider this information when selecting a market center, as higher trading volumes may indicate greater liquidity and tighter bid-ask spreads.            

Therefore the correct option is A.

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amra went to a restaurant and had an unpleasant experience that sent her to the hospital. The problems at the restaurant should be handled by: Multiple Choice Mediation. The doctor who treated her. Arbitration. The county health department. A lawsuit.

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The problems Amra experienced at the restaurant, which sent her to the hospital, should be handled by the county health department.

The county health department is responsible for ensuring that restaurants and other food establishments comply with health and safety regulations. This includes conducting inspections of restaurants and investigating complaints related to food safety and hygiene.

In this case, if Amra had an unpleasant experience at the restaurant that resulted in her being sent to the hospital, it is likely that there was a violation of health and safety regulations. Amra should file a complaint with the county health department, which would then investigate the matter and take appropriate action, such as issuing a citation or closing the restaurant if necessary.

While mediation and arbitration can be used to resolve disputes between parties, they may not be appropriate in this situation as the primary concern is public health and safety. Similarly, while a doctor who treated Amra may be able to provide medical assistance, they would not be responsible for handling the problems at the restaurant. Finally, a lawsuit may be an option, but it would likely be more effective to first file a complaint with the county health department, which has the authority to take action to ensure public health and safety.

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A lump-sum deposit of $8,000 left in a bank for 12 years at 9%, compounded annually, will result in an ending balance of: (Select the closest answer.)

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The closest answer to the ending balance after 12 years is $21,334.97.

Given a lump-sum deposit of $8,000 left in a bank for 12 years at an interest rate of 9% compounded annually, you can calculate the ending balance using the formula for compound interest, which is:

A = P(1 + r/n)^(nt)

In this formula, A is the ending balance, P is the principal amount ($8,000), r is the annual interest rate (0.09), n is the number of times the interest is compounded per year (1), and t is the number of years (12).

Plugging the values into the formula, you get:

A = 8000(1 + 0.09/1)^(1*12)
A = 8000(1.09)^12
A ≈ 21,334.97



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Complete question: A lump sum deposit of $8,000 left in the bank for 12 years at 9% compounded annually will result in an ending balance of (select the closest answer)

$11,600.

$16,640.

$21,334.

$52,938.

Which of the following metrics would give you the best idea of how much your company is spending on benefits? Benefit costs by employee group Benefits as a percent of payroll Paid time-off utilization Retirement plan participation rate

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Of the three metrics provided, the benefit costs by employee group would give you the best idea of how much your company is spending on benefits. This is because it provides a breakdown of the costs associated with each employee group, allowing you to see how much is being spent on benefits for each group. The correct option is a.

Benefits as a percent of payroll can also be a useful metric, as it gives you an idea of how much of your company's payroll is being spent on benefits. However, it doesn't provide a breakdown of costs by employee group, so it may not be as useful if you have different benefit plans for different groups. Paid time-off utilization and retirement plan participation rate are both important metrics, but they don't provide information about the overall cost of benefits.

Paid time-off utilization can give you an idea of how much time employees are taking off, while retirement plan participation rate can give you an idea of how many employees are participating in the plan. However, neither of these metrics provides information about the actual cost of benefits. The correct option is a.
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When the long-run average cost (LRAC) _________ as output increases, a firm is experiencing ________ of scale.

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When the long-run average cost (LRAC) decreases as output increases, a firm is experiencing economies of scale.

This is because fixed costs, such as machinery and infrastructure, can be spread over a larger output. In addition, there may be lower input costs due to bulk discounts and the ability to negotiate better prices with suppliers. Technical economies of scale result from the use of more efficient technology, which allows firms to produce more output with fewer resources.

Managerial economies of scale occur when firms can reduce management costs by managing larger volumes of output. They allow firms to lower their costs, increase their profit margins, and gain a larger market share. After a certain point, the increasing output may lead to diseconomies of scale, where the LRAC begins to increase as output increases due to issues such as congestion and coordination problems.

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Suppose a project plan had three distinct paths through the network. The first path consisted of activities A (3 days), B (4 days), and C (2 days). The second path consisted of activities D (4 days), E (5 days), and F (5 days). The third path consisted of activities G (2 days), H (3 days) and I (10 days). Which is the critical path

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Path 3 is the critical path as it is the longest path, taking 15 days to complete. Any delays in the activities on this path will delay the entire project.

The critical path is the longest path through the network, which is determined by adding up the durations of all the activities on each path.

In this case, the durations of the three paths are as follows:

Path 1: 3 days + 4 days + 2 days = 9 days

Path 2: 4 days + 5 days + 5 days = 14 days

Path 3: 2 days + 3 days + 10 days = 15 days

Therefore, Path 3 is the critical path as it is the longest path, taking 15 days to complete. Any delays in the activities on this path will delay the entire project.

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Finn Company projects cost of goods sold to be $250,000 in October and $400,000 in November. Finn maintains an ending inventory equal to 10% of the next month's projected cost of goods sold. Calculate Finn's desired ending inventory for October.

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Finn's desired ending inventory for October is $40,000.

To calculate Finn Company's desired ending inventory for October, we need to consider the projected cost of goods sold for November and the 10% requirement for ending inventory.

Finn Company projects the cost of goods sold to be $400,000 in November.

To find the desired ending inventory for October, we need to calculate 10% of this projected amount.

Ending inventory for October = 10% of November's projected cost of goods sold

Ending inventory for October = 10% x $400,000

Ending inventory for October = 0.1 x $400,000

Ending inventory for October = $40,000

So, Finn's desired ending inventory for October is $40,000. This amount ensures that the company maintains a stock level equal to 10% of the next month's projected cost of goods sold, which is important for meeting customer demand and managing inventory effectively.

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A TPS supports the monitoring, collecting, storage, and processing of ________ from the organization's basic business transactions.

Answers

Answer:

the answer is:

Explanation:

Data

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Gerald Wilkins owns a home worth $330,000, a car worth $19,750, various investments worth $650,000 and other personal assets worth $34,000. He still owes $160,000 on his mortgage and $5,700 on a car loan. What is his net taxable estate

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Gerald Wilkins owns home worth $330,000, a car worth $19,750, some investments worth $650,000 and the personal assets worth is $34,000. He still owes $160,000 on mortgage and $5,700 car loan. Then, the net taxable estate is $868,050.

To calculate Gerald Wilkins' net taxable estate, we need to first calculate the value of his total assets and then subtract his debts and any allowable deductions.

Value of Total Assets;

Home = $330,000

Car = $19,750

Investments = $650,000

Other Personal Assets = $34,000

Total Assets = $330,000 + $19,750 + $650,000 + $34,000

= $1,033,750

Debts;

Mortgage = $160,000

Car Loan = $5,700

Total Debts = $160,000 + $5,700 = $165,700

Net Taxable Estate'

Net Taxable Estate = Total Assets - Total Debts - Allowable Deductions

Assuming there are no additional deductions, we can calculate the net taxable estate as;

Net Taxable Estate = $1,033,750 - $165,700

= $868,050

Therefore, net taxable estate is $868,050.

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A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 88 percent of capacity; actual usage was 89.6 percent of capacity. A smoothing constant of 0.1 is used. a. Prepare a forecast for September. (Round your answer to 2 decimal places.) b. Assuming actual September usage of 92 percent, prepare a forecast for October usage. (Round your answer to 2 decimal places.)

Answers

Forecast for September = Smoothing constant x (Actual usage for August) + (1 - Smoothing constant) x (Forecast for August)

Forecast for September = 0.1 x 89.6 + 0.9 x 88

Forecast for September = 88.64

Rounded to two decimal places, the forecast for September is 88.64 percent of capacity.

b. To prepare a forecast for October usage, we need to first update the smoothing parameters using the actual usage for September:

Updated forecast for September = 0.1 x 92 + 0.9 x 88.64

Updated forecast for September = 89.78

Now we can use this updated forecast to calculate the forecast for October:

Forecast for October = Smoothing constant x (Actual usage for September) + (1 - Smoothing constant) x (Forecast for September)

Forecast for October = 0.1 x 92 + 0.9 x 89.78

Forecast for October = 90.35

Rounded to two decimal places, the forecast for October is 90.35 percent of capacity.

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If fixed costs are $850,000 and variable costs are 61% of sales, what is the break-even point in sales dollars

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To calculate the break-even point in sales dollars, we need to use the following formula:
Break-even point = Fixed costs / (1 - Variable cost percentage). The break-even point in sales dollars is $2,179,487.18.

Plugging in the given values, we get:
Break-even point = $850,000 / (1 - 0.61)
Simplifying the denominator, we get:
Break-even point = $850,000 / 0.39
Calculating the numerator, we get:
Break-even point = $2,179,487.18
In simple terms, the break-even point is the level of sales at which a business generates enough revenue to cover its fixed and variable costs. Fixed costs are expenses that do not change regardless of the level of production or sales, such as rent, salaries, and insurance. Variable costs, on the other hand, are expenses that vary based on the level of production or sales, such as raw materials and commissions.

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A firm should only undertake a project if its expected return is ______ that of a financial asset of comparable risk.

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A firm should only undertake a project if its expected return is greater than or equal to that of a financial asset of comparable risk.

A financial asset is a tradable financial instrument that represents ownership of a financial claim or contractual right to receive money or another asset. Financial assets can take various forms, such as stocks, bonds, options, futures, currencies, and commodities. They are typically bought and sold in financial markets, such as stock exchanges and over-the-counter markets, and are used for various purposes, such as investment, speculation, hedging, and financing.

Financial assets are distinguished from real assets, which are tangible or intangible assets that have intrinsic value, such as real estate, machinery, and intellectual property. Unlike real assets, financial assets do not have inherent value but derive their value from the underlying assets or contracts they represent. For example, a stock represents ownership in a company, and its value reflects the company's profitability and growth prospects. A bond represents a loan to a borrower, and its value reflects the borrower's creditworthiness and the prevailing interest rates.

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One of the primary characteristics of advertising is that advertising is a ______ form of mass communication.

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One of the primary characteristics of advertising is that advertising is a paid form of mass communication.

This means that advertisers pay for space or time in a media platform, such as television, radio, print, or online, to deliver their message to a large audience. Unlike other forms of communication, such as public relations or publicity, advertising requires the advertiser to pay for the message to be delivered. This payment is usually based on the amount of space or time used, the size of the audience reached, or the number of clicks or impressions the ad generates online.

Advertising can take many forms, including print ads in newspapers and magazines, radio and television commercials, outdoor billboards and signs, online banners and pop-up ads, sponsored content, influencer marketing, and social media advertising. Each type of advertising has its own unique characteristics, advantages, and limitations, and advertisers must carefully choose the most appropriate format to reach their target audience effectively.

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Sheridan Company shows the following balances in selected accounts of its adjusted trial balance.Supplies $24,320Supplies Expense 4,560Accounts Receivable 9,120Dividends 16,720Retained Earnings 53,200Service Revenue 82,080Salaries and Wages Expense 30,400Utilities Expense 6,080Rent Expense 13,680Prepare the remaining closing entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditDec. 3112(To close revenue to income summary)Dec. 3112345(To close expenses to income summary)Dec. 3112(To close net income to retained earnings)Dec. 3112(To close dividends to retained earnings)

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On December 31, Sheridan Company needs to prepare the remaining closing entries to close its temporary accounts and transfer the balances to the permanent account.

The temporary accounts to be closed include Service Revenue, Supplies Expense, Salaries and Wages Expense, Utilities Expense, and Rent Expense.
To close the revenue account, Sheridan Company should debit Service Revenue and credit Income Summary for the total revenue earned during the period, which is $82,080.
To close the expense accounts, Sheridan Company should debit Income Summary for the total expenses incurred during the period, which is $54,720 ($4,560 Supplies Expense + $30,400 Salaries and Wages Expense + $6,080 Utilities Expense + $13,680 Rent Expense). Sheridan Company should credit each individual expense account for their respective balances.
Next, Sheridan Company should transfer the net income or loss for the period to the retained earnings account. Since Sheridan Company earned a net income of $27,360 ($82,080 - $54,720), the Income Summary account should be debited and the Retained Earnings account should be credited for the same amount.
Finally, Sheridan Company should close the Dividends account by debiting Retained Earnings and crediting Dividends for the total amount paid out during the period, which is $16,720.
The closing entries for Sheridan Company are as follows:
Date     Account Titles and Explanation      Debit   Credit
Dec. 31  Service Revenue                      82,080
        Income Summary                                   82,080
Dec. 31  Income Summary                       54,720
        Supplies Expense                     4,560
        Salaries and Wages Expense           30,400
        Utilities Expense                    6,080
        Rent Expense                         13,680
Dec. 31  Income Summary                                   27,360
        Retained Earnings                                27,360
Dec. 31  Retained Earnings                    16,720
        Dividends                                         16,720

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Total estimated manufacturing overhead is $900,000 and total estimated activity is 30,000 machine-hours. The plantwide overhead rate is $

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Total estimated manufacturing overhead is $900,000 and total estimated activity is 30,000 machine-hours. The plantwide overhead rate is $ 30 per machine-hour.

To calculate the plantwide overhead rate, we divide the total estimated manufacturing overhead by the total estimated activity level.

Plantwide overhead rate = Total estimated manufacturing overhead / Total estimated activity level

Plantwide overhead rate = $900,000 / 30,000 machine-hours

Plantwide overhead rate = $30 per machine-hour

Therefore, the plantwide overhead rate is $30 per machine-hour.

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An employee carrying documents detailing his employer's trade secrets is assaulted and robbed of the documents on his way to a meeting. Which Commercial Crime insuring agreement would cover the loss

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The Commercial Crime insuring agreement that would cover the loss in this scenario is the Employee Theft insuring agreement.

The Employee Theft insuring agreement provides coverage for losses caused by dishonest acts committed by an employee, including theft of property. In this case, the employee was carrying documents detailing trade secrets and was robbed of them, which would be considered a theft of property.

It's important to note that the Employee Theft insuring agreement typically requires that the theft be committed by an employee with the intent to cause a loss, and the loss must be discovered within a certain time period.

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Determining which products should be produced when the plant is operating at full capacity is referred to as a(n):

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Determining which products should be produced when the plant is operating at full capacity is referred to as a(n) "capacity utilization decision" or "production planning decision."

This involves selecting the most profitable combination of products to produce, considering the available resources and the demand for the products. Determining which products should be produced when the plant is operating at full capacity is referred to as production planning. Production planning involves analyzing demand, available resources, and production capabilities to determine the most efficient and effective use of resources to produce products at full capacity. This includes determining which products should be prioritized based on demand, production costs, and profitability, and ensuring that the production process is optimized to produce the desired products at full capacity.

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Suppose that you have just purchased a share of stock for $40. The most recent dividend was $2 and dividends are expected to grow at a rate of 7% indefinitely. What must your required return be on the stock

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The required return on the stock is 12%. This means that an investor would expect to earn a return of at least 12% on their investment in order to justify paying $40 for a share of stock that pays $2 in dividends and is expected to grow at a rate of 7% indefinitely.

This model takes into account the current stock price, the expected dividends, and the required return.
First, the expected dividend for the next year. Since the most recent dividend was $2, we can assume that the next dividend will also be $2.

However, since dividends are expected to grow at a rate of 7%, we can calculate the dividend for the following year by multiplying the current dividend by 1.07. So, the expected dividend for year two would be $2 x 1.07 = $2.14.
Next, we the present value of these future dividends.

To do this, we divide the expected dividend for year one by the required return minus the dividend growth rate. In this case, the required return is unknown, so we'll call it "r." The formula would be:
Present value of future dividends = expected dividend / (r - dividend growth rate)
$40 = $2 / (r - 0.07)
$40r - $2.80 = $2
$40r = $4.80
r = 12%
So, the required return on the stock is 12%

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