Gunther earned a 62.5 percent return on a stock that he purchased one year ago. The stock is now worth $12, and he received a dividend of $1 during the year. How much did Gunther originally pay for the stock?

Answers

Answer 1
Answer:

Answer:

Originally pay for the stock = $8

Explanation:

Given:

Total return = 62.5%

Value of stock (after 1 year) = $12

Dividend during the year = $1

Originally pay for the stock = ?

Computation:

Total\ return = [(Dividend + (Value\ of\ stock\ after\ 1\ year - Purchase\ Value))/(Purchase\ Value) ]* 100

62.5 = [(1 + (12 - Purchase\ Value))/(Purchase\ Value) ]* 100\n\n0.625 Purchase\ Value = 1 + 12 - Purchase\ Value\n\n1.625 Purchase\ Value = 13\n\nPurchase\ Value = 8

Originally pay for the stock = $8


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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 50,000 units of RX5 follows. Direct materials $ 5.00 Direct labor 9.00 Overhead 10.00 Total costs per unit 24.00 Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 50,000 units of RX5 for $19.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5.

Answers

Answer:

The incremental costs of making and buying component RX5 is $100,000

Explanation:

For computing the increment cost of making and buying component RX5, first we have to compute the cost of making and buying component RX5 separately.

Cost of making includes:

Direct Material = 50,000 × $5 = $250,000

Direct Labor = 50,000 × 9 = $450,000

Variable Overhead cost = 50,000 × 10 × 30% = $150,000

So, total cost of making = Direct material cost + direct labor cost + variable overhead cost

= $250,000 + $450,000 + $150,000

= $850,000

Now, the cost of buying component is equals to

=  units × RX5 per unit

= 50,000 × $19

= $950,000

So, the incremental costs of making and buying component RX5 is equals to

= cost of making - cost of buying component

= $950,000 - $850,000

= $100,000

Hence,  the incremental costs of making and buying component RX5 is $100,000

Final answer:

The incremental cost of making component RX5 is $5.00 per unit.

Explanation:

To calculate the incremental costs of making and buying component RX5, we need to compare the cost of making the component in-house versus buying it from an outside supplier. The incremental cost of making the component is the difference between the current cost per unit to manufacture and the cost offered by the supplier. Here's how to calculate it:

  1. Incremental cost of making = Total costs per unit - Cost offered by the supplier
  2. Incremental cost of making = $24.00 - $19.00
  3. Incremental cost of making = $5.00 per unit

The incremental cost of making component RX5 is $5.00 per unit.

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A company advertises that its products are environmentally friendly in order to sell to climate-conscious consumers at a higher price. What is this practice called?

Answers

Answer: Greenwashing

Explanation:

Greenwashing is the process of giving out a false impression or misleading the public about how the product of a company are more environmentally friendly. Companies have used greenwashing in commercials and press releases emphasizing their pollution minimization efforts and clean energy but in reality, the firm may not have a genuine commitment to environmental friendliness. Companies that make such claims are embroiled in greenwashing.

For example, a company might claim that their goods are made from recycled materials and this may be false. This is greenwashing.

Of the following, what actions would be most helpful as Andrew develops his own brand? Check all that apply. Emphasis his degree and G.P.A. Talk about his three summer internshipsEmphasize his leadership position in an on-campus organization Include information on classes he took List referrals

Answers

Answer:

The correct answers are letters "B" and "C": Talk about his three summer internships; Emphasize his leadership position in an on-campus organization.

Explanation:

Employers tend to look for relevant information on resumes. Usually, applicants that go further in selection processes are those whose resumes highlighted outstanding, unique information that shows the applicants have skills not easy no find for recruiters.  

Thus, Andrew should include his core competencies on his resume but pointing out capabilities that employees might be interested in such as leadership and teamwork. In case he has remarkable experiences such as cultural exchanges or internships, they must be added to his curriculum vitae as well.

Final answer:

When developing his brand, Andrew should emphasize his three summer internships, and his leadership role in an on-campus organization, and include referrals. These factors demonstrate practical experience, leadership skills, and personal recommendations which are highly valued by potential employers.

Explanation:

As Andrew works on developing his brand, all the options presented should be utilized to a certain extent as they each provide valuable information about his experiences and qualifications. However, some aspects may carry more weight than others. Firstly, mentioning his three summer internships, where he gained practical experience, will go a long way. Employers value hands-on experience since it shows a candidate's initiative to learn and thrive in a real-world environment.

Secondly, his leadership position in an on-campus organization should be highlighted. Leadership roles demonstrate skills such as teamwork, management, and the ability to overcome challenges, which are valuable in any job role.

Lastly, providing referrals or recommendations can be another great asset. Referrals act as testimonials of his abilities, work ethic, and accomplishments.

His GPA and the classes he took might be less influential, depending on the specific job or industry he is interested in.

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Private saving refers to ________. A) disposable income minus consumption expenditure B) total expenditure minus purchases of capital goods C) taxes plus consumption minus income D) consumption expenditure divided by disposable income E) none of the above

Answers

Answer:

disposable income minus consumption expenditure

Explanation:

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 860,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company’s common stock at the end of the year was $21. All of the company’s sales are on account.Weller Corporation
Comparative Balance Sheet
(dollars in thousands)
This Year Last Year
Assets
Current assets:
Cash $ 976 $ 1,920
Accounts receivable, net 15,000 10,050
Inventory 10,000 8,440
Prepaid expenses 1,860 2,220
Total current assets 27,836 22,630
Property and equipment:
Land 6,600 6,600
Buildings and equipment, net 19,800 19,600
Total property and equipment 26,400 26,200
Total assets $ 54,236 $ 48,830
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 10,100 $ 8,600
Accrued liabilities 720 1,000
Notes payable, short term 360 360
Total current liabilities 11,180 9,960
Long-term liabilities:
Bonds payable 6,250 6,250
Total liabilities 17,430 16,210
Stockholders' equity:
Common stock 860 860
Additional paid-in capital 4,500 4,500
Total paid-in capital 5,360 5,360
Retained earnings 31,446 27,260
Total stockholders' equity 36,806 32,620
Total liabilities and stockholders' equity $ 54,236 $ 48,830
Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
Sales $ 85,000 $ 80,000
Cost of goods sold 55,000 51,000
Gross margin 30,000 29,000
Selling and administrative expenses:
Selling expenses 9,100 8,600
Administrative expenses 12,600 11,600
Total selling and administrative expenses 21,700 20,200
Net operating income 8,300 8,800
Interest expense 750 750
Net income before taxes 7,550 8,050
Income taxes 3,020 3,220
Net income 4,530 4,830
Dividends to common stockholders 344 645
Net income added to retained earnings 4,186 4,185
Beginning retained earnings 27,260 23,075
Ending retained earnings $ 31,446 $ 27,260
Required: Compute the following financial data for this year:

1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

4. Return on equity. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

Answers

Answer:

A.

This year $30,000/$85,000 = 35.3%

Last Year $29,000/$80,000 = 36.3%

B.

This year $4,186/$85,000 = 4.9%

Last Year $4,185/$80,000 = 5.2%

C.

This year $4,186/$54,236 = 7.7%

Last Year $4,185/$48,830 = 8.6%

D.

This year $4,186/$36,806 = 11.4%

Last Year $4,185/$32,620 = 12.8%

Explanation:

A. Gross Margin % measures the profitability of a Business based on its direct input costs (that is having not considered its indirect costs which includes the selling , general and administrative costs)

It is derived as Gross Margin divided by Net sales x 100%

B. Net profit % = is a measure of profitability of a business in relation to its sales. All relevant costs (except dividend payable to common stock holders) would have been considered in arriving at the applied profit

It is derived as Net Income divided by Net sales x 100%

C. return on total Assets. This is a measure of a business profitability in relation to its investments in Assets. The higher the rate the better a firm is said to be in its conversion process

It is derived as Net income divided by Total Assets x 100%

D. Return on Equity is a measure of profitability in relation to common stock holders investment in shares in a business. The higher the rate, the better the adjudged performance of the business by the shareholders.

It is derived as Net income divided by total shareholders equity x 100%

Which relationship BEST illustrates a comparison of absolute advantage and comparative advantage? A) A country with an absolute advantage will always have a comparative advantage in producing products. B) A country with a comparative advantage can produce a greater output of a products than a country with an absolute advantage. C) A country with an absolute advantage can produce a product at a lower opportunity cost than a country with a comparative advantage in producing all products. D) A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.

Answers

Answer:

D) A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.

Explanation:

Comparative advantage is when a country produces a product at a lower opportunity cost when compared with a country.

An absolute advantage is when a country produces greater quantities of a product when compared with another country.

I hope my answer helps you

Answer: D

Explanation: UsaTestPrep