If a corporation repurchases its debt, which of the following statements are TRUE? I The corporation's capitalization will increase
II The corporation's capitalization will decrease
III The market value of the common stock will increase
IV The market value of the common stock will decrease

Answers

Answer 1

Answer:

II and III

Explanation:

The best answer is ii and iii. If a corporation repurchases its debt, then its capitalization will decrease. Corporations repurchase debt to refinance at smaller interest rates so as to To increase the market value of the corporation's common stock. If corporation has less debt, the common stock would have more value and to reduce the corporation's earnings fluctuation's due to cyclical conditions. Corporate sales fall because of cyclical conditions, but fixed interest charges do not. This causes earnings for common shareholders to reduce in period of falling sales. To reduce this possibility, a corporation can repurchase its debt.

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TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product.Standard Quantity Standard Price Standard CostDirect Materials 10 pounds $ 1.90 per pound $ 19.00 Direct Labor 0.30 hour $ 6.80 per hour 2.04 $ 21.04 During November, TaskMaster purchased 200,000 pounds of direct materials at a total cost of $440,000. The total factory wages for November were $48,000, 80% of which were for direct labor. TaskMaster manufactured 19,000 units of product during November using 175,000 pounds of direct materials and 6,000 direct labor hours.What is the direct labor price (rate) variance for November?
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Audra owns a rental house. She makes mortgage payments of $1,060 per month, which include insurance, and pays $2,700 per year in property taxes and maintenance. Utilities are paid by the renter. What should Audra charge for monthly rent to make $4,500 profit each year?

Answers

Answer:

A $740 cable bill for them to be able to watch shows and have internet.

Explanation:

When a company has become proficient in modifying, upgrading, or deepening the company's resources and capabilities in response to its changing environment and market opportunities, it is called a dynamic capability. core competence. distinct competence. strategic assessment. competitive strength matrix.

Answers

Answer:

Dynamic capability

Explanation:

Dynamic capability is a situation when a company has the ability to use all environmental factors effectively to meet the current changing world.

It is a situation where company has become proficient in modifying, upgrading, or deepening the company's resources and capabilities in response to its changing environment and market opportunities.

The firm uses both the internal and external factors to its benefit while suiting the changing environment.

An analyst gathers the following information about Meyer, Inc.: Meyer has 1,000 shares of 8% cumulative preferred stock outstanding, with a par value of $100 and liquidation value of $110. Meyer has 20,000 shares of common stock outstanding, with a par value of $20. Meyer had retained earnings at the beginning of the year of $5,000,000. Net income for the year was $70,000. This year, for the first time in its history, Meyer paid no dividends on preferred or common stock.What is the book value per share of Mayer's common stock?

Answers

Answer:

common stock book value: 273.5 dollars

Explanation:

(equity - preferred stock) / outstanding shares

In this case:

(common stock + RE) divide over shares outstanding

20,000 shares x $ 20 = 400,000

Retained Earnings:

5,000,000 + 70,000 = 5,070,000

Total Common Equity: 5,470,000

Common stock: 20,000

5,470,000 / 20,000 = 273.5

Final answer:

The book value per share of Meyer's common stock is $253.5. This is calculated by dividing the total equity ($5,070,000) by the number of common shares outstanding (20,000).

Explanation:

The book value per share is the value of a company's equity divided by the total number of common shares outstanding. It is a financial ratio that investors use to assess whether a company's stock is overpriced or underpriced.

In this case, the total equity of Meyer, Inc. is calculated by adding its retained earnings to its net income for the year. This totals to $5,070,000. Since there are 20,000 shares of common stock, the book value per share of Meyer's common stock would be $5,070,000 divided by 20,000, which equals to $253.5.

This represents the intrinsic value of a company, which could be significantly different from its market price depending on numerous factors such as the company's earnings potential and risk profile.

Learn more about Book Value per Share here:

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E9-14 Computing and Interpreting the Fixed Asset Turnover Ratio from a Financial Analysts Perspective [LO 9-7] The following data were included in a recent Papaya Inc. annual report (in millions): 2013 2014 2015 2016 Net revenue $ 82,225 $ 120,119 $ 163,500 $ 167,910 Net property, plant, and equipment 4,960 9,380 15,620 17,000 Required: Compute Papaya's fixed asset turnover ratio for 2014, 2015, and 2016. (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Answers

Answer:

2014 Fixed Assets TO: 11.47

2015 Fixed Assets TO: 13.08

2106 Fixed Assets TO: 10.29

Explanation:

Fixed turnover ratio:

$(Profit)/(Avg FA) = $FA Turnover$

where:

$$$Average FA =(Beginning FA + Ending FA)/2$

2014 DATA

Profit: 120,119

Beginning 4960

Ending 9380

Average 7170

$(120,119)/(7170) = $FA Turnover$

Inventory TO 16.75299861

2015 data

Profit: 163,500

Beginning 9380

Ending 15,620

$(163,500)/(12,500) = $FA Turnover$

FA TO 13.08

2016

Profit: 167,910

Beginning 15,620

Ending 17,000

$(167,910)/(16,310) = $Inventory Turnover$

Inventory TO 10.2949111

Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.Estimated manufacturing overhead $ 351,960
Estimated machine-hours 8,400
Actual manufacturing overhead $ 352,960
Actual machine-hours 8,460
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
The applied manufacturing overhead for the year is closest to:_________.
A. $357,012
B. $354,474
C. $355,489
D. $352,951

Answers

Answer:

B. $354,474

Explanation:

The Overheads that are initially included in Work In Process before determination of Actual Overheads are called Applied Overheads.

Applied Overheads = Predetermined overhead rate × Actual level of Activity.

Thus said we need to first determine the Predetermined overhead rate :

Predetermined overhead rate = Budgeted Overheads / Budgeted Activity

= $ 351,960 / 8,400 machine hours

= $41.90 per machine hour

Therefore,

Applied Overheads = $41.90 × 8,460 machine hours

= $354,474

Conclusion :

The applied manufacturing overhead for the year is closest to: $354,474

The Callie Company has provided the following information: Operating expenses were $244,000; Cost of goods sold was $378,000; Net sales were $940,000; Interest expense was $47,000; Gain on sale of a building was $84,000; Income tax expense was $142,000. What was Callie's gross profit

Answers

Answer:

Callie's Gross Profit is $562000

Explanation:

Gross profit is the profit earned by a business after deducting the costs associated with producing or selling its goods (for manufacturing and trading businesses) or the costs associated with providing the services (for service businesses) from the net revenue.

It is the profit from the trading section of the business before deducting the operating and financing expenses of the business and before adding any other income.

The gross profit is simply calculated as follows,

Gross Profit = Net Revenue - Cost of Goods Sold

Callie's gross profit = 940000 - 378000

Callie's Gross Profit = 562000

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