calculate the present value of $89,000 to be received in 15 years, assuming an opportunity cost of 14 percent.

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Answer 1

The present value of $89,000 to be received in 15 years, assuming an opportunity cost of 14 percent is $12,468.59.

Present Value= Future Value (1+r)n

Here:

r is the rate per period(time or time period) (in decimals) = 0.14 (14%)

n is the number of periods = 15 year

Future value = $89,000

Present Value = 89,000 (1+0.14) 15

Present value = $12,468.59

The term "present value" describes the market's current estimation of a prospective sum of money. Additionally, when performing the computations to determine the present value, a fair discount rate should be used. In addition, money has a higher worth today than it will in the future, according to present value.

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Related Questions

a taxpayer inherited a vintage car that a deceased relative had purchased for $25,000 in year 1. the fair market value of the car on february 1, year 3, the date of the relative's death, was $40,000, which increased to $50,000 six months later. the executor of the estate elected the alternate valuation date for estate tax purposes. the taxpayer sold the car for $45,000 on june 1, year 3, the date that the executor distributed the car to the taxpayer. what was the taxpayer's recognized gain or loss on the sale of the car in year 3?

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If the taxpayer sold the car for $45,000 on june 1, year 3, the date that the executor distributed the car to the taxpayer, the taxpayer's recognized gain of $5,000 on the sale of the car in year 3.

The taxpayer's recognized gain or loss on the sale of the vintage car will depend on the tax basis of the asset, which is the fair market value of the car at the date of the relative's death, as determined by the alternate valuation date election.

Since the fair market value of the car on the date of the relative's death was $40,000 and the taxpayer sold the car for $45,000, the recognized gain on the sale would be $5,000. This gain would be subject to capital gains tax.

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which of the following statements is true of reliability as a requirement of effective performance-rating systems?which of the following statements is true of reliability as a requirement of effective performance-rating systems?it permits managers to remain anonymous to avoid retribution.it provides a common frame of reference for raters.it refers to consistency of judgment.it reduces the preference of individuals for handling future disagreements.

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The true statement regarding the reliability as a requirement of the effective performance-rating systems is: it refers to the consistency of judgment. Option C is correct.

Reliability in performance-rating systems refers to the extent to which the system generates consistent results or scores when used by different raters. In other words, reliability means that if the same performance is rated by different raters, the ratings will be consistent and reliable. This is important to ensure that the performance ratings are fair, accurate, and useful for decision-making purposes.

It is a crucial requirement of effective performance-rating systems because it ensures that the ratings are trustworthy and that employees are evaluated fairly and accurately. A reliable system provides a common frame of reference for raters, which reduces the likelihood of bias or subjective opinions influencing the evaluation process.

Hence, C. is the correct option.

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--The given question is incomplete, the complete question is

"Which of the following statements is true of reliability as a requirement of effective performance-rating systems? A) it permits managers to remain anonymous to avoid retribution. B) it provides a common frame of reference for raters. C) it refers to consistency of judgment. D) it reduces the preference of individuals for handling future disagreements."--

the table below represents a firm's profit for producing and selling blu ray players. using the marginal costs and marginal revenues provided, at what level of output does the firm maximize profits?

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What are Marginal Costs?The cost of manufacturing an additional unit of a product is referred to as marginal cost (MC).

It's calculated by dividing the shift in total cost by the shift in output. Marginal costs are an important consideration for a business that wishes to increase its output since they assist managers in determining the level of production that will be most profitable for them. What is Marginal Revenue?Marginal revenue is the additional revenue generated by producing and selling one additional unit of a good or service.

In other words, it is the change in total revenue that results from selling one more unit of a product. To maximize profits, a firm should produce at a point where marginal cost is equal to marginal revenue (MC=MR). By analyzing the table, the firm maximizes its profit when it produces 5 blu ray players. At this point, the marginal cost is equal to the marginal revenue ($35).Thus, the firm maximizes profits by producing and selling 5 blu ray players.

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unemployment results when group of answer choices the quantity of labor demanded is less than the quantity of labor supplied at the going wage rate. the quantity of labor demanded is greater than the quantity of labor supplied at the going wage rate. the wage is below the level that balances supply and demand for labor. there is a shortage of workers.

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Unemployment results when the quantity of labor demanded is less than the quantity of labor supplied at the going wage rate.

Unemployment refers to the number or percentage of individuals who are willing and able to work but cannot find work despite actively seeking employment within a given period. It's determined by the difference between the supply of labor and the demand for it in the market.When the quantity of labor supplied is more than the quantity demanded at the existing wage rate, a labor surplus exists. Firms have an oversupply of labor or a surplus of workers in this situation. As a result, they cut back on production, and unemployment results when they lay off workers.When the quantity of labor demanded exceeds the quantity of labor supplied at the going wage rate, a labor shortage exists. This can lead to a rise in wages, which can entice more individuals to join the labor force, increasing labor supply until labor demand and labor supply are equal. This would lower the number of unemployed individuals.The wage is below the level that balances supply and demand for labor when employers pay less than the equilibrium wage rate. This leads to an oversupply of labor or a labor surplus, which results in unemployment.

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true or false: the same defenses under liability to clients are also available to auditors sued by third parties for fraud.

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Indeed, auditors who are being sued by third parties for fraud have access to the same defenses under liability to clients.

A client is a computer or programmer that, in order to function, depends on making a request to another programmer, another piece of software, or computer hardware that uses a service made available by a server. For instance, web browsers are clients that communicate with web servers to retrieve and display web pages.   Email is retrieved by email clients from mail servers.  Any computer may run a client version of online or multiplayer video games. The term "client" can also refer to users of client software as well as the computers or other hardware that operate it.

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suppose you operate a factory that produces 500 lawn mowers a week. if your weekly variable cost is $40,000 and your weekly total cost is $50,000, the average:

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If your total cost is $50,000 per week, average cost of production is $100. So the option D is correct.

Total cost (TC) = $50000

Weekly variable cost (TVC) = $40000

Lawn mowers in a week (Q) = 500

TFC = TC - TVC

TFC = 50000 - 40000

TFC = 10000

AFC = TFC / Q

AFC = 10000/500

AFC = 20

AVC = TVC/Q

AVC = 40000/500

AVC = 80

The average cost of production is calculated by dividing total cost by output. In this case, total cost is $50,000 per week and output is 500 lawn mowers per week.

Therefore, the average cost of production is $100 per lawn mower ($50,000/500 = $100). This means that, on average, it costs $100 to produce each lawn mower.

The average cost (AC) is:

AC or ATC = TC/Q

AC or ATC = 50000/500

AC or ATC = 100

So, correct answer is option D.

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The complete question is:

Suppose you operate a factory producing lawn mowers. Your current level of output is 500 lawn mowers per week. Your weekly variable cost is $40,000. If your total cost is $50,000 per week,

A. average fixed cost of production is $100.

B. average variable cost of production is $100.

C. average cost of production is $80.

D. average cost of production is $100.

in qualitative research, confirmability refers to rigorous efforts by the researcher to be objective and maintain an audit trail to document the research process. group of answer choices true false flag question: question 64

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The statement that 'in qualitative research, confirmability refers to rigorous efforts by the researcher to be objective and maintain an audit trail to document the research process' is true as it ensures reliability of data.

Qualitative research is a method of research that aims to describe, interpret and understand human behaviour, experiences, and social phenomena.  Confirmability is achieved through a transparent research process that includes clear documentation of the research steps, data collection, and analysis procedures. This enables other researchers to evaluate the objectivity and trustworthiness of the study, as well as to replicate or build upon the research findings.

Hence, in qualitative research, confirmability refers to rigorous efforts by the researcher to be objective and maintain an audit trail to document the research process. This ensures that the findings of the research are reliable and can be verified by others. Hence, the statement is true.

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citi is issuing 5,000 25-year maturity mortgage-backed bonds. each bond has a par value of $10,000 and promises to pay an 8 percent annual coupon. at issue, bond market investors require a 12 percent interest rate on the bond. how much would citi collect upon issuance?

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The amount collected by Citi on 5,000 bonds after 25 years of maturity time period is equal to $29,816,000.

Rate of return (r) is 12%

Number of periods (n) is 25 years

Par value of each bond is $10,000

Annual coupon payment (C) is 8%

C = 0.08 x $10,000

  = $800

The amount that Citi would collect upon issuance of the 5,000 .

25-year maturity mortgage-backed bonds.

Use the present value formula,

PV = C x [1 - (1 + r)^(-n)] / r

Where,

PV = present value of the bond

C = annual coupon payment

r = required rate of return

n = number of periods

Substituting these values into the formula, we get,

PV = $800 x [1 - (1 + 0.12)^(-25)] / 0.12

⇒PV = $800 x [1 - 0.0631] / 0.12

⇒PV = $800 x 7.454

⇒PV = $5,963.20

Citi would collect $5,963.20 for each bond issued,

The total amount collected for the 5,000 bonds would be,

Total amount collected

= $5,963.20 x 5,000

= $29,816,000

Therefore, the total amount collected by Citi upon issuance on the bonds is equal to $29,816,000.

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4. which recovery support function provides expertise to support continued business operations and/or rebuilding of businesses, and to support the development of other economic opportunities after a disaster? a. the natural and cultural resources rsf b. the economic rsf c. the health and social services rsf d. the housing rsf

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The recovery support function that provides expertise to support continued business operations and/or rebuilding of businesses, and to support the development of other economic opportunities after a disaster is the Economic RSF. Correct answer is option: b.

This function is responsible for coordinating the restoration of the economic infrastructure and addressing the needs of businesses and industries affected by a disaster. It works to identify and assess economic impacts, facilitate access to capital and financial assistance, support job creation and workforce development, and promote community economic development. The Economic RSF is critical for helping to restore local economies and promote long-term recovery and resilience after a disaster. Option b is correct.

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in 2021, the additional child tax credit for a married filing jointly taxpayer with 2 children: a.is completely phased out for married filing jointly taxpayers with agi over $400,000 b.is $1,000 for children under the age of 6 c.is $2,000 per child d.is only available for children under the age of 6

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In 2021, the additional child tax credit for a married filing jointly taxpayer with two children is c. $2,000 per child.

The Additional Child Tax Credit is a non-refundable tax credit that a taxpayer can receive if the amount of the Child Tax Credit (CTC) they qualify for is more than the amount of income tax they owe. If the CTC brings a taxpayer's income tax to zero and there is still money left over, they may be eligible to get a refund for up to 15% of their earned income above $2,500. As a result, the maximum amount of the Additional Child Tax Credit is $1,400 per qualifying child.

However, due to COVID-19 relief legislation, the Additional Child Tax Credit is fully refundable for the 2021 tax year, it is now available to eligible families with incomes that are too low to owe any taxes. A married filing jointly taxpayer with two children can receive an additional child tax credit of $2,000 per child in 2021. As a result, option (c) is the correct answer. In 2021, the additional child tax credit for a married filing jointly taxpayer with two children is $2,000 per child. Therefore, option (c) is the correct answer.

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businesses can employ either workers from city neighborhoods or rural areas. these workers are perfect substitutes and cannot relocate in the short run. the government offers businesses a wage subsidy if they hire workers from city neighborhoods. what is the effect of the subsidy on the equilibrium wage rate of rural workers and on the equilibrium quantity of hours they work?

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The wage subsidy offered by the government to businesses for hiring workers from city neighborhoods would likely decrease the equilibrium wage rate of rural workers and increase the equilibrium quantity of hours they work.

Equilibrium wage rate of rural workers: The wage subsidy for hiring workers from city neighborhoods would likely increase the demand for these workers, leading to higher wages for city workers. As a result, businesses may choose to hire more workers from city neighborhoods, reducing the demand for rural workers. This decrease in demand for rural workers may lead to a decrease in their equilibrium wage rate, as businesses shift their hiring towards city workers who are eligible for the wage subsidy.

Equilibrium quantity of hours worked by rural workers: With the decrease in demand for rural workers due to the wage subsidy, businesses may reduce their hiring of rural workers or cut back on their hours of work. This could result in a decrease in the equilibrium quantity of hours worked by rural workers, as businesses shift their employment towards city workers who are eligible for the wage subsidy.

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contracts that legally bind only one of the parties to future performance are classified as which of the following? a utmost good faith contracts b unilateral contracts c contracts of adhesion d warranties

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Contracts that legally bind only one of the parties to future performance are classified as unilateral contracts. So, correct option is B.

In a unilateral contract, one party makes a promise to do something in exchange for the other party's performance. The offeror expects the offeree to accept the offer by performing the requested action. If the offeree performs the requested action, then the offeror is legally obligated to fulfill their promise.

A common example of a unilateral contract is a reward offer. The offeror promises to pay a certain amount of money to anyone who finds and returns a lost item.

The offeree can accept the offer only by performing the requested action, i.e., finding and returning the lost item. If the offeree performs the requested action, then the offeror is legally obligated to pay the promised reward.

Unilateral contracts are different from bilateral contracts, where both parties make promises to each other. In a bilateral contract, each party is obligated to fulfill their promise to the other party.

Therefore, correct option is B.

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a bona fide occupational blank is necessary discrimination for the performance of a particular job. multiple choice question.

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A bona fide occupational qualification is necessary discrimination for the performance of a particular job. The right answer is a.

A very specific interpretation of the Equal Employment Opportunity (EEO) statutes' exception for bona fide occupational qualifications (BFOQs). A BFOQ enables businesses to make hiring decisions for a specific job based on attributes like sex, religion, or nationality if they can show that these attributes are necessary for carrying out that job.

A Bona Fide Occupational Qualification (BFOQ) is a legal restriction that allows businesses to reject hiring someone based on that person's sex, religion, or country of origin.

The correct answer is option a.

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The question seems incomplete. The complete question is:

A bona fide occupational ______ is necessary discrimination for the performance of a particular job.

Multiple choice question.

qualification

ramification

certification

remediation

ken places a $20 value on a cigar, and mark places a $17 value on it. the equilibrium price for this brand of cigar is $15. refer to scenario 12-1. how much total consumer surplus do ken and mark get when each purchases one cigar? question 8 options: $1 $2 $5 $7

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The total consumer surplus do ken and mark get when each purchases one cigar is $7. So, correct option is d.

In economics, consumer surplus refers to the difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay. In this scenario, Ken values the cigar at $20 and Mark values it at $17, but the equilibrium price (where supply and demand intersect) is set at $15.

For Ken, his consumer surplus is the difference between the maximum price he is willing to pay ($20) and the actual price he pays ($15), which is $5. For Mark, his consumer surplus is the difference between the maximum price he is willing to pay ($17) and the actual price he pays ($15), which is $2.

Therefore, the total consumer surplus for Ken and Mark combined is $5 + $2 = $7. This represents the additional value they receive from purchasing the cigar at a lower price than their maximum willingness to pay.

Therefore, correct option is d.

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a partial amortization schedule for a 10-year note payable that mabry company issued on january 1, year 1, is shown as follows. accounting period principal balance january 1 cash payment applied to interest applied to principal year 1 $ 200,000 $ 27,174 $ 12,000 $ 15,174 year 2 184,826 27,174 11,090 16,084 year 3 168,742 27,174 10,125 17,049 required what rate of interest is mabry company paying on the note? using a financial statements model like the one shown, record the appropriate amounts for the following two events: (1) january 1, year 1, issue of the note payable. (2) december 31, year 1, payment on the note payable. if the company earned $62,000 cash revenue and paid $45,000 in cash expenses in addition to the interest in year 1, what is the amount of each of the following? (1) net income for year 1. (2) cash flow from operating activities for year 1. (3) cash flow from financing activities for year 1. what is the amount of interest expense on this loan for year 4?

Answers

Rate of interest: 8%.

Event 1: Debit Note Payable for $200,000.

Event 2: Debit Interest Expense for $15,174. Interest expense for year 4: $17,019.

First and foremost, to decide the loan cost that Mabry Organization is paying on the note, we really want to utilize the data gave in the fractional amortization plan.

We realize that the organization acquired $200,000 on January 1, year 1, and has been making installments more than three years. The complete installments made more than three years are $81,522, which is the amount of the interest installments ($12,000 + $11,090 + $10,125) and the chief installments ($15,174 + $16,084 + $17,049).

Accordingly, the excess total on the note is $118,478 ($200,000 - $81,522). To ascertain the loan cost, we really want to utilize the current worth equation:

PV =[tex]PMT/(1 + r)^n[/tex]

Where PV is the current worth (the leftover equilibrium), PMT is the occasional installment (the absolute installment for every year), r is the loan fee, and n is the quantity of periods. Utilizing the qualities we have, we can settle for r:

[tex]$118,478[/tex] = [tex]$27,174/(1 + r)^1[/tex] + [tex]$27,174/(1 + r)^2[/tex] + [tex]$27,174/(1 + r)^3[/tex] + [tex]$27,174/(1 + r)^4[/tex]+ [tex]$10,726/(1 + r)^4[/tex]

Settling for r, we get a loan cost of around 6%.

To record the fitting sums for the two occasions, we want to utilize a budget summaries model like the one shown. On January 1, year 1, Mabry Organization would record the accompanying:

Charge Money: $200,000

Credit Note Payable: $200,000

On December 31, year 1, when Mabry Organization makes an installment on the note, the accompanying passage would be recorded:

Charge Note Payable: $15,174

Charge Interest Cost: $12,000

Credit Money: $27,174

To ascertain the net gain for year 1, we really want to take away the all out costs from the all out income. The all out income is $62,000, and the absolute costs (counting the interest cost) are $57,174 ($45,000 + $12,000). Thusly, the overall gain for year 1 is $4,826.

To ascertain the income from working exercises for year 1, we want to begin with the overall gain and adapt for non-cash things and changes in working capital. Accepting there are no non-cash things, we want to adapt to the progressions in working capital. How about we accept that the organization's records receivable and creditor liabilities didn't change during the year. Then, the income from working exercises for year 1 would be:

Overall gain: $4,826

Changes for Changes in Working Capital: $0

Income from Working Exercises: $4,826

To ascertain the income from funding exercises for year 1, we really want to check out at the progressions in the organization's supporting exercises during the year. Since the organization just gave the note payable on January 1, year 1, and made an installment on December 31, year 1, the income from supporting exercises for year 1 is:

Income from Supporting Exercises: - $200,000 + $15,174 = - $184,826

At long last, to decide the interest cost on this credit for year 4, we would require more data about the installments made in year 4. The fractional amortization plan just gives data to the initial three years.

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quinn is a licensed salesperson in kansas who wants to get her license in arkansas, as well, to expand her business opportunities. she may request a waiver of which portion of the salesperson licensing exam?

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Quinn may request a waiver of the national portion of the salesperson licensing exam.

Each state has its own specific requirements for obtaining a real estate salesperson license. Some states have reciprocity agreements with other states, allowing licensed agents from one state to become licensed in another state without having to take the full licensing exam.

In the case of Quinn, if she is already licensed in Kansas and wants to obtain a license in Arkansas, she may be eligible for reciprocity. Arkansas requires that out-of-state licensees take only the state-specific portion of the licensing exam, and may waive the national portion if the applicant has already passed that portion in their home state.

Therefore, Quinn can request a waiver of the national portion of the licensing exam in Arkansas. However, it's important for her to check with the Arkansas Real Estate Commission to confirm the exact requirements and application process for obtaining a license through reciprocity.

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many retailers want to sell apple products in their stores because they feel it boosts their reputation to be associated with such a popular luxury brand. this illustrates what kind of power? multiple choice question.

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When many retailers want to sell apple products in their stores because they feel it boosts their reputation to be associated with such a popular luxury brand, this illustrates referent power. Therefore, the correct option is A.

Referent power occurs when one party gains influence or power due to their association with a respected or admired individual or brand.  In this case, retailers seek to gain power and reputation by being associated with the Apple brand.

When retailers associate themselves with Apple, they benefit from the positive reputation and brand image that Apple has cultivated over the years. This, in turn, helps to boost their own reputation and enhance their brand image. As a result, they are able to exert a certain amount of influence over their customers, who are attracted to their stores due to their association with a popular brand like Apple. Hence, the correct answer is option A: referent power.

Note: The question is incomplete. The complete question probably is: Many retailers want to sell apple products in their stores because they feel it boosts their reputation to be associated with such a popular luxury brand. This illustrates what kind of power? multiple choice question. A) Referent power B) Reward power C) Expertise power D) Legitimate power.

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you deposit $100 each month into an account earning 5% interest compounded monthly. round to the nearest cent as needed. a) how much will you have in the account in 30 years? $ 446.77 b) how much total money will you put into the account? $ c) how much total interest will you earn? $

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a) After 30 years, you will have approximately $446.77 in the account.

b) The total amount of money you will put into the account is $36,000.

c) The total interest earned over the 30-year period is approximately $410.77.

To solve this problem, we can use the formula for compound interest

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

where:

A = the final amount in the account

P = the initial deposit

r = the annual interest rate (as a decimal)

n = the number of times the interest is compounded per year

t = the number of years

a)In this case, we have P = $100, r = 0.05, n = 12 (compounded monthly), and t = 30. Plugging in these values into the formula, we get

A = 100(1 + 0.05/12)^(12*30)

A ≈ $446.77

Therefore, you will have approximately $446.77 in the account after 30 years.

b) You are depositing $100 each month for 30 years, so the total amount of money you will put into the account is

Total Deposits = 1230$100 = $36,000

c) The total interest earned can be calculated by subtracting the total amount deposited from the final amount in the account

Total Interest = A - Total Deposits

Total Interest ≈ $410.77

Therefore, the total interest earned over the 30-year period is approximately $410.77.

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a bond is a straight fixed-rate bond issued in one currency that pays coupon interest in that same currency, then at maturity, the principal is repaid in another currency a. dual-currency b. warrant-convertible c. bonds with equity warrants d. exchange-convertible

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A dual-currency bond is a straight fixed-rate bond that is issued in one currency, pays coupon interest in that currency, and then repaid in a different currency when it matures.

Bonds known as dual currency bonds are those for which capital is raised in one currency but redemption occurs in a different one. A dual currency bond has two different currencies as its principal and coupon rate. A rise in the issue of dual currency bonds during the low interest rate years of 1995 and 1996 was mostly caused by Japanese investors looking for income options that were not accessible domestically. Among the oldest and most successful currency-linked fixed income securities, dual currency bonds have endured in popularity. In the late 1980s, the securities were issued through a private placement, with Japanese insurers providing funds to American and European issuers.

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what will happen if the current market price for oil rises to $120 per barrel, while the user cost remains at $50 per barrel? how many barrels will ss pump?

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If the current market price for oil rises to $120 per barrel while the user cost remains at $50 per barrel, the quantity demanded of oil will decrease.

This is because the higher market price makes it more expensive for consumers to purchase the same quantity of oil, which leads to a decrease in demand. On the other hand, the quantity supplied of oil will increase as the higher market price incentivizes suppliers to produce and sell more oil to take advantage of the higher profit margins.

As for how many barrels SS will pump, it depends on the equilibrium point between the quantity supplied and quantity demanded. If the quantity supplied is greater than the quantity demanded at the higher price, then there will be excess supply and SS may need to adjust their output to avoid a surplus of unsold oil. If the quantity demanded is greater than the quantity supplied, then there will be excess demand and SS may need to increase their output to meet the higher demand.

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netflix common stock has a beta of 0.8. the risk-free rate is 3%, and the expected market return is 10%. calculate cost of common equity for netflix using capm. 5.6% 9.3% 8.6% 7.9%

Answers

Answer:

8.6%

Explanation:

CAPM = Risk-free rate + Beta * (Market return- Risk-free rate).

CAPM = 3% + 0.8 * (10% - 3%).

= 8.6%

The capital asset pricing model - or CAPM - is a financial model that calculates the expected rate of return for an asset or investment. CAPM does this by using the expected return on both the market and a risk-free asset, and the asset's correlation or sensitivity to the market (beta).

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The cost of common equity for Netflix using CAPM is 9.3%.

CAPM (Capital Asset Pricing Model) can be used to calculate the cost of common equity for Netflix. The formula to calculate the cost of equity using CAPM is:Cost of equity = Risk-free rate + Beta (Market rate of return - Risk-free rate)Where,Risk-free rate = 3%Beta of Netflix = 0.8Expected market return = 10%Using the given values in the above formula,Cost of equity = 3% + 0.8(10% - 3%)Cost of equity = 3% + 0.8(7%)Cost of equity = 3% + 5.6%Cost of equity = 8.6%Hence, the cost of common equity for Netflix using CAPM is 8.6%. Therefore, the correct option is C) 8.6%.

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to carry out a stock redemption, sabre corporation distributes land (basis of $100,000, fair market value of $250,000) to a shareholder. if the land is subject to a liability of $300,000, sabre has:

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Sabre Corporation has a liability of $300,000 which is more than the fair market value of the distributed land ($250,000). In this case, Sabre would recognize a loss on the distribution of the land.

To calculate the loss, Sabre would subtract the fair market value of the land ($250,000) from its adjusted basis ($100,000), which results in a loss of $150,000. This loss would be recognized by Sabre for tax purposes in the year of the distribution.

In addition to the loss, Sabre would also reduce its liability by the amount of the distributed property ($250,000). Therefore, the liability would be reduced to $50,000 after the distribution.

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wayman corporation reports the following amounts in its december 31, 2024, income statement. sales revenue $453,000 income tax expense $59,000 interest expense 29,000 cost of goods sold 139,000 salaries expense 49,000 advertising expense 39,000 utilities expense 59,000 required: prepare a multiple-step income statement.

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The multiple-step income statement for Wayman Corporation for the year ended December 31, 2024 shows sales revenue of $453,000, cost of goods sold of $139,000, gross profit of $314,000, total operating expenses of $176,000,  and net income of $79,000.

Wayman Corporation Income Statement

For the Year Ended December 31, 2024

Sales revenue $453,000

Cost of goods sold 139,000

Gross profit 314,000

Expenses

Salaries expense 49,000

Advertising expense 39,000

Utilities expense 59,000

Interest expense 29,000

Total operating expenses 176,000

Operating income 138,000

Other expenses

Income tax expense 59,000

Net income $79,000

The above is a multiple-step income statement as it calculates the gross profit, operating income and net income separately.

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a company buys an oil rig for $1,500,000 on january 1, 2014. the life of the rig is 10 years and the expected cost to dismantle the rig at the end of 10 years is $400,000 (present value at 10% is $154,220). 10% is an appropriate interest rate for this company. what expense should be recorded for 2014 as a result of these events?

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The expense that should be recorded for 2014 is $134,578.

The straight-line method is a common method of calculating depreciation for financial reporting purposes. It assumes that the asset depreciates by an equal amount each year over its useful life. To calculate annual depreciation using the straight-line method, the cost of the asset is divided by its useful life in years.

The company can use either the straight-line method or the units-of-production method to calculate the annual depreciation expense. Let's assume that the company will use the straight-line method.

First, we need to calculate the depreciable cost of the oil rig, which is the original cost minus the expected salvage value:

Depreciable cost = $1,500,000 - $154,220 = $1,345,780

Next, we divide the depreciable cost by the expected life of the oil rig to get the annual depreciation expense;

Annual depreciation expense = $1,345,780 / 10

= $134,578

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suppose margie decides to lease a photocopier and open up a black-and-white photocopying service in her dorm room for use by faculty and students. her total cost, as a function of the number of copies she produces per month, is given in the table. number of photocopies per month total cost fixed cost variable cost total revenue profit 0 $100 $100 $0 $0 -$100 1,000 $110 $100 $10 $60 -$50 2,000 $125 $100 $25 $120 -$5 3,000 $145 $100 $45 $180 $35 4,000 $175 $100 $75 $240 $65 5,000 $215 $100 $115 $300 $85 6,000 $285 $100 $185 $360 $75 b. how many copies per month should margie sell? she should sell 0 1,000 2,000 3,000 4,000 5,000 6,000

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Margie should sell 5,000 copies per month to maximize her profit.

We can find that level of output by finding the point where Margie's total revenue is equal to her total cost. At that level of output, her profit will be maximized.To find the optimal level of output, we can use the following

steps:1. Calculate Margie's total revenue for each level of output by multiplying the number of photocopies by the price per photocopy

.2. Calculate Margie's total cost for each level of output by adding the fixed cost to the variable cost.

3. Calculate Margie's profit for each level of output by subtracting her total cost from her total revenue

.4. Find the level of output where Margie's profit is maximized by looking for the output level with the highest profit.Margie's total cost, as a function of the number of copies she produces per month, is given in the table:| Number of photocopies per month | Total cost | Fixed cost | Variable cost | Total revenue | Profit | | ---------------------------------- | ------------ | ----------- | -------------- | -------------- | --------- | | 0 | $100 | $100 | $0 | $0 | -$100 | | 1,000 | $110 | $100 | $10 | $60 | -$50 | | 2,000 | $125 | $100 | $25 | $120 | -$5 | | 3,000 | $145 | $100 | $45 | $180 | $35 | | 4,000 | $175 | $100 | $75 | $240 | $65 | | 5,000 | $215 | $100 | $115 | $300 | $85 | | 6,000 | $285 | $100 | $185 | $360 | $75 |The formula to calculate total cost is:Total cost = Fixed cost + (Variable cost per unit x Number of units)

The formula to calculate total revenue is:Total revenue = Price per unit x Number of unitsThe formula to calculate profit is:Profit = Total revenue - Total costLet's fill in the table:| Number of photocopies per month | Total cost | Fixed cost | Variable cost | Total revenue | Profit | | ---------------------------------- | ------------ | ----------- | -------------- | -------------- | --------- | | 0 | $100 | $100 | $0 | $0 | -$100 | | 1,000 | $110 | $100 | $10 | $60 | -$50 | | 2,000 | $125 | $100 | $25 | $120 | -$5 | | 3,000 | $145 | $100 | $45 | $180 | $35 | | 4,000 | $175 | $100 | $75 | $240 | $65 | | 5,000 | $215 | $100 | $115 | $300 | $85 | | 6,000 | $285 | $100 | $185 | $360 | $75 |

To find the level of output where Margie's profit is maximized, we need to look for the output level with the highest profit. We can see from the table that Margie's profit is maximized at 5,000 copies per month, where her profit is $85.  

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suppose you purchase a $100 three-year, 5-percent coupon bond at par and hold it for two years. during that time, the interest rate falls to 4 percent. calculate your annual holding period return.

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The annual holding period return of the bond is 5.48%.

To calculate your annual holding period return follow these steps:

1. Determine the coupon payment:

The bond has a 5% coupon, so the annual coupon payment would be $100 x 0.05 = $5.

2. Calculate the price of the bond after two years:

Since the interest rate fell to 4%, the bond price will increase. To calculate the new price, first find the present value of the remaining coupon payments and the face value. There is one remaining coupon payment of $5 and the face value of $100. Using the new interest rate of 4%, the present value of these cash flows is:

PV_coupon = $5 / (1+0.04)^1 = $4.81

PV_face value = $100 / (1+0.04)^1 = $96.15

The new bond price = PV_coupon + PV_face value = $4.81 + $96.15 = $100.96

3. Calculate the total return:

The total return includes the coupon payments received during the two years and the capital gain from the bond price increase. The coupon payments sum up to $5 x 2 = $10. The capital gain is the difference between the new bond price and the initial purchase price, which is $100.96 - $100 = $0.96.

Total return = Coupon payments + Capital gain = $10 + $0.96 = $10.96

4. Calculate the annual holding period return: Divide the total return by the initial investment and the holding period (2 years) to get the annual holding period return.

Annual Holding Period Return = Total return / (Initial investment x Holding period) = $10.96 / ($100 x 2) = 0.0548, or 5.48%.

So, your annual holding period return on this bond is 5.48%.

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an auditor who decides not to rely on controls should perform more tests of controls. document the further audit procedures performed. document controls more extensively. perform fewer tests of details.

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The right response is to run fewer tests on the details.Less detail checks should be conducted by an auditor who decides not to depend on controls.

An auditor is a professional who examines and evaluates the financial statements of a company to ensure that they are true and fair representations of the company's financial position. The audit is carried out to assess the company's accounting records and financial statements, with the goal of determining whether they comply with generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS).

The aim of an audit is to offer a high degree of assurance that the financial statements are accurate, and free from material errors or fraud. The auditor must ensure that the financial statements are free of misstatements, that the company's internal controls are functioning effectively, and that the company is in compliance with the relevant laws and regulations. Therefore, an auditor who decides not to rely on controls should perform fewer tests of details.

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mckerley corporation has preferred stock outstanding that will pay an annual dividend of $5.20 per share with the first dividend exactly 12 years from today. if the required return is 3.9 percent, what is the current price of the stock?

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The current price of the stock is $59.28.

To calculate the current price of the preferred stock, we need to use the formula for the present value of a perpetuity:

PV = D / r

Where PV is the present value, D is the annual dividend, and r is the required return.

In this case, D = $5.20 and r = 3.9% = 0.039. However, the first dividend will be paid 12 years from today, so we need to discount the dividend back to its present value using the formula:

PV = D / (1 + r)^n

Where n is the number of years until the first dividend is paid. In this case, n = 12.

PV = $5.20 / (1 + 0.039)^12 = $2.57

Therefore, the current price of the preferred stock is:

PV = $2.57 / 0.039 = $59.28

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conner ash from research has provided you with the demand curve for the side table. at a price of $100, 1,500 tables could be sold. at a price of $125, 1,000 could be sold. what price point do you recommend to the product strategy team? select an option from the choices below and click submit.

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The product strategy team should set the price at $100 or lower, where the demand is more elastic and the revenue will be maximum. Thus, the recommended price point is $100.

Price elasticity of demand = (Percentage change in quantity demanded) / (Percentage change in price)Let's calculate the percentage change in quantity demanded:(1,500 - 1,000) / 1,500 x 100% = 33.33%Let's calculate the percentage change in price:(125 - 100) / 125 x 100% = 20%Now, substituting the values in the formula of price elasticity of demand:Price elasticity of demand = 33.33% / 20%Price elasticity of demand = 1.67

Since the price elasticity of demand is greater than 1, the demand for the side table is elastic. This implies that a decrease in price will lead to an increase in the quantity demanded. Similarly, an increase in price will lead to a decrease in the quantity demanded.The product strategy team should recommend a price point that will maximize their revenue. This can be achieved by setting the price point where the price elasticity of demand equals 1

. Therefore, we need to set the price such that the percentage change in quantity demanded is equal to the percentage change in price.Let's consider a price point of $118.75:$100 to $118.75 represents a 18.75% increase in price1,500 to 1,125 represents a 25% decrease in quantity demandedSince the percentage change in quantity demanded is less than the percentage change in price, this implies that the revenue will decrease if the price is set at $118.75 or higher.

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question 20 mobile advertising is a great tool for marketers, but all that good work could be undone if your website isn't what?

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Mobile advertising is a great tool for marketers, but all that good work could be undone if the company's website is not mobile-friendly.

Mobile-friendly websites are designed to be easily navigable on mobile devices, with responsive design that adapts to different screen sizes and user interfaces. Without a mobile-friendly website, potential customers who click on mobile ads may struggle to navigate the website, leading to frustration and a high bounce rate.

In addition, mobile-friendliness is also a key factor in search engine optimization (SEO), with mobile-friendly websites ranking higher in search results than those that are not optimized for mobile devices.

This means that a lack of mobile-friendliness could not only impact the effectiveness of mobile advertising campaigns but also the overall visibility and reach of the company's website.

Therefore, it is crucial for companies to ensure that their website is mobile-friendly and optimized for mobile devices, in order to maximize the impact of their mobile advertising campaigns and enhance their overall online presence.

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