BUSINESS COLLEGE

Zap Power Company pays an annual dividend on its preferred stock of $4.54 per share. The investors have an 8% required rate of return. What is the price of the stock

Answers

Answer 1

Answer:

Answer:

The price of the stock is $56.75.

Explanation:

This can be calculated using the following formula:

P = d /r ……………………………………… (1)

Where;

P = price of the stock = ?

d = preferred stock dividend = $4.54

r = required rate of return = 8%, or 0.08

Substituting the values into equation (1), we have:

P = $4.54 / 0.08

P = $56.75

Therefore, the price of the stock is $56.75.

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Suppose GDP in this country is $900 million. Enter the amount for consumption. National Income Account Value (Millions of dollars) Government Purchases ( G ) 250 Taxes minus Transfer Payments ( T ) 325 Consumption ( C ) Investment ( I )
A first-rate SWOT analysis:_______a. is a way to measure whether a company's value chain is longer or shorter than the chains of key rivals. b. reveals whether a company is competitively stronger than its closest rivals. c. is a tool for benchmarking whether a firm's strategy is closely matched to industry key success factors.
Suppose that Spain and Switzerland both produce beer and cheese. Spain's opportunity cost of producing a pound of cheese is 5 barrels of beer while Switzerland's opportunity cost of producing a pound of cheese is 10 barrels of beer. By comparing the opportunity cost of producing cheese in the two countries, you can tell that (Spain/Switzerland) has a comparative advantage in the production of cheese and (Spain/Switzerland) has a comparative advantage in the production of beer. Suppose that Spain and Switzerland consider trading cheese and beer with each other. Spain can gain from specialization and trade as long as it receives more than (1, 1/10, 1/5, 5, 10) barrels of beer for each pound of cheese it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than(1, 1/10, 1/5, 5, 10) pound of cheese for each barrel of beer it exports to Spain. Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of beer) would allow both Switzerland and Spain to gain from trade? Check all that apply. A. 6 barrels of beer per pound of cheese B. 1 barrel of beer per pound of cheese C. 7 barrels of beer per pound of cheese D. 4 barrels of beer per pound of cheese
ABC will purchase a machine that will cost $2,575,000. Required modifications will cost $375,000. ABC will need to invest $75,000 for additional inventory. The machine has an IRS approved useful life of 7 years; it is presumed to have no salvage value. ABC plans to depreciate the machine by using the straight-line method. The machine is expected to increase ABC's sales revenues by $1,890,000 per year; operating costs excluding depreciation are estimated at $454,600 per year. Assume that the firm's tax rate is 40%. What is the annual operating cash flow?

Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands). Age of Receivables A/R Balance Estimated % uncollectible Current $11,000 1% 30-60 days past due 2,400 3% 61-90 days past due 1,700 6% Over 90 days past due 840 10% What bad debt expense should the company report for the current period

Answers

Answer:

$368

Explanation:

Bad debts also known as uncollectible expenses are the portion of the accounts receivable in accrual accounting that have to be written off as they are eventually not paid by the accounts receivable.

One of the ways of estimating bad debt is allowance method , which is expressing a bad expenses as a percentage of credit sales based on experience and past records.

Days past due balance % uncollectible

Current 11,000 1% 110

30-60 days 2,400 3% 72

61-90 days 1,700 6% 102

Over 90 days 840 10% 84

Total 368

Bad debt expenses to be recognized is $368

Final answer:

Heller Corporation should report a bad debt expense of $368,000 for the current period, calculated by adding the products of each A/R balance by its estimated percentage uncollectible.

Explanation:

The bad debt expense that Heller Corporation should report for the current period can be calculated by multiplying each A/R balance by the corresponding estimated percentage uncollectible, and summing these values. Here's a step-by-step process:

For the current: $11,000 * 1% = $110
For 30-60 days past due: $2,400 * 3% = $72
For 61-90 days past due: $1,700 * 6% = $102
For over 90 days past due: $840 * 10% = $84

Add these numbers together to get the total bad debt expense: $110 + $72 + $102 + $84 = $368 (in thousands, so $368,000).

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Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows:Direct materials Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter’s budgeted materials requirements.
Prepare a direct materials budget for the second quarter.

Answers

Answer and Explanation:

The Preparation of direct materials budget for the second quarter is prepared below:-

Rida, Inc.,

Direct materials budget

For the second quarter

Particulars Amount

Production Unit 240,000

Raw material per unit 0.60

Raw material needed for production 144,000

(240,000 × 0.60)

Add: Desired ending inventory 9,450

(52,500 × 0.6 × 30%)

Total amount 153,450

Less: Beginning inventory ($43,200)

Direct material purchase $110,250

Cost per pound $175

Direct material purchase cost $19,293,750

Therefore to reach at direct material purchase cost we simply multiply the direct material purchase cost with cost per pound.

the greatest constraint for a project is the . group of answer choices the schedule for the project the level of quality to be produced availability of the right resources at the right time cash flow for the organization

Answers

The most significant constraint for a project is the availability of the right resources at the right time.

What are Resources?

A resource is an actual thing that people need and appreciate, including air, water, and property. A resource is classified as renewable or nonrenewable when it can replace at the pace it is utilized up, whereas an exhaustible resource seems to have a limited quantity. Timber, wind, and solar power are examples of renewable energy sources, whereas gas and coal are examples of non-renewable resources.

A resource can be Natural and Human-made. Also, natural resources can be .

1. Biotic and Abiotic

2. Renewable and Non-renewable

3. Potential, developed, and stock

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Sarah and Wei have an opportunity to buy a large parcel of land on the Willamette River, just two miles south of Salem. They want to build an amusement park on the land. Sarah approaches you and says, "Hey, I know you took that BA 333 class, so maybe you can help me figure out what to do. Wei and I need a lot of money to start up our amusement park and buy the land we want, and we're a little nervous about getting sued if someone gets thrown out of our roller coaster. What kind of business do you think we should we set up? We were thinking maybe we could just be partners. We'd prefer not to have anything formal written down--we think that might be bad for our friendship. What's your advice?"Draft an answer to Sarah and Wei and include it in your document. Your answer should include: 1) your recommendation for the best entity choice; 2) a complete explanation of why this is the best option; 3) a secondary recommendation, in case Sarah and Wei don't like your first option; 4) an explanation as to why this is your second choice (i.e., compare to your first choice and explain why this is not as good, but still an acceptable option).

Answers

Answer:

Explanation below.

Explanation:

The recommendation that I will give or propose is that the agreement must have a legal backing.

This is the best recommendation that a wise person can proposes. It is a show of height of stupidity when an individual go into conjunction with another person without any written agreement that is backed legally. This because, when there is a problem in the future, the documents will be a way to solve it.

The other secondary option is written and signed agreement with video recording. This is not as good as the one mentioned above, but can still be considered as an alternative.

5) If in the market for apples the supply has decreased, then A) the supply curve for apples has shifted to the right. B) there has been a movement upwards along the supply curve for apples. C) the supply curve for apples has shifted to the left. D) there has been a movement downwards along the supply curve for apples.

Answers

Answer:

The correct answer is letter "C": the supply curve for apples has shifted to the left.

Explanation:

The supply curve plots in a graph the relationship between the price and quantity supplied of a good or service. According to the supply law, that relationship is directly proportional meaning if the price rises the quantity demanded increases -the supply curve moves to the right- but if the prices fall the quantity demanded drops -the supply curve moves to the left.

Yakov is skilled at making both bracelets and necklaces. Yakov has no preference between making bracelets or necklaces since he earns the same amount from the two activities. If the selling price of necklaces increases from $12 to $24, then Yakov's opportunity cost of making bracelets and making bracelets is now profitable than making necklaces. Suppose that the bracelets market consists of several suppliers like Yakov who are skilled at making both bracelets and necklaces. Which of the following is likely to happen to the supply curve of bracelets when the price of a necklaces increases?a. It shifts to the right
b. It shifts to the left
c. It does not change

Answers

Answer:b. It shifts to the left

Explanation:

The supply will increases as price increases and vice versa. When the price increases and supply also increases the supply curves shifts to the right and when the price decreases and supply equally decreases supply curves shifts to the left.

In the above scenario since bracelet and necklace are exclusive products the sellers will be willing to supply more of necklace since the price has increased and less of bracelet since the price has fallen and the fall in price which leads to fall in supply of bracelet will shift bracelet supply curves to the left.

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