Messman Manufacturing will issue common stock to the public for $30. The expected dividend and the growth in dividends are $3.00 per share and 5%, respectively. If th flotation cost is 10% of the issue's gross proceeds, what is the cost of the external equity?

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Answer 1

The cost of external equity for Messman Manufacturing can be calculated as follows: First, we need to calculate the net proceeds from issuing common stock after deducting the flotation cost:
Gross proceeds = $30 per share
Flotation cost = 10% of $30 = $3 per share
Net proceeds = Gross proceeds - Flotation cost = $30 - $3 = $27 per share
Next, we need to calculate the cost of external equity using the dividend growth model:

Cost of equity = (Dividend / Net proceeds) + Growth rate
Dividend = $3 per share
Net proceeds = $27 per share
Growth rate = 5%
Cost of equity = ($3 / $27) + 5% = 16.67%
Therefore, the cost of external equity for Messman Manufacturing is 16.67%. This means that the company will need to earn at least this return on its external equity investments to satisfy its shareholders.

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Related Questions

Matt Company had the following costs.Units produced 410 unitsDirect materials $ 63 per unitDirect labor 30 per unitVariable manufacturing overhead 11 per unitFixed manufacturing overhead 7,380 per yearVariable selling and administrative costs 21 per unitFixed selling and administrative costs 1,640 per yearCalculate the unit product cost using variable costing. Round answer to the nearest cent.Show the labels and enter the amounts to compute the unit product cost using variable costing.Variable Costing_______ _______ ______________ _______ ______________ _______ ______________ _______ _______Total unit product cost _______

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The unit product cost using variable costing is $104 per unit.

To calculate the unit product cost using variable costing, we need to consider the variable costs per unit, including direct materials, direct labor, and variable manufacturing overhead. Fixed manufacturing overhead, fixed selling, and administrative costs are not included in variable costing. Here's the calculation: Direct materials: $63 per unit Direct labor: $30 per unit Variable manufacturing overhead: $11 per unit Unit Product Cost (Variable Costing) = Direct materials + Direct labor + Variable manufacturing overhead Unit Product Cost (Variable Costing) = $63 + $30 + $11 Unit Product Cost (Variable Costing) = $104 The unit product cost using variable costing is $104 per unit.

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Community relations and external consulting are self-described activities of a manager’s responsibilitiesTrue or False

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True. Community relations and external consulting can be considered as activities of a manager's responsibilities.

Community relations may involve managing the relationship with local communities where a company operates, such as addressing concerns or issues raised by community members.

External consulting may involve seeking advice or expertise from external consultants to improve the operations or strategy of a company. Both of these activities can fall within the purview of a manager's responsibilities, depending on the organization and its specific needs.

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True. Community relations and external consulting can be considered as activities of a manager's responsibilities.

Community relations may involve managing the relationship with local communities where a company operates, such as addressing concerns or issues raised by community members.

External consulting may involve seeking advice or expertise from external consultants to improve the operations or strategy of a company. Both of these activities can fall within the purview of a manager's responsibilities, depending on the organization and its specific needs.

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factory overhead is applied at a rate of $9 per labor hour, of which $6 is variable. the actual variable factory overhead is $32,000. in the current period, 2,500 units are produced at a standard time of 2 labor hours per unit. these units require 5,500 actual labor hours. what is the controllable variance?

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The controllable variance is the difference between the actual variable factory overhead ($32,000) and the standard variable factory overhead ($30,000) for the current period.

In this case, the controllable variance is $2,000. This variance shows the difference in variable factory overhead costs that could be controlled or managed during the production process.

1. Calculate the standard labor hours: 2,500 units * 2 labor hours per unit = 5,000 labor hours
2. Calculate the standard variable factory overhead: 5,000 labor hours * $6 per labor hour = $30,000
3. Calculate the actual variable factory overhead: $32,000 (given)
4. Determine the controllable variance: Actual variable factory overhead - Standard variable factory overhead = $32,000 - $30,000 = $2,000

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The commercial banking system has excess reserves of $6,000. Then new loans of $100,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be %

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The commercial banking system has excess excess reserves of $6,000. Then new loans of $100,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be 6%.

To calculate this, we can use the formula:

Required reserves = Deposits x Required reserve ratio

Initially, the commercial banking system had excess reserves of $6,000. This means that they had more reserves than required by law.
When new loans of $100,000 are made, the deposits in the banking system increase by $100,000.
To determine the required reserve ratio, we need to find out how much of the $100,000 must be held in reserve. Since the system ends up just meeting its reserve requirements, we know that the required reserves are equal to the excess reserves that existed before the new loans were made:

Required reserves = Excess reserves = $6,000

Now we can solve for the required reserve ratio:
$6,000 = $100,000 x Required reserve ratio
Required reserve ratio = $6,000 / $100,000

Required reserve ratio = 0.06

Required reserve ratio = 6%

Therefore, the required reserve ratio must be 6%.

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If lenders think that a particular borrower might default, they will demand: 18) _____ A) a lower interest rate to decrease the amount of risk incurred. B) a higher interest rate to make it worth taking that risk. C) a higher interest rate to decrease the amount of risk incurred. D) a lower interest rate to make it worth taking that risk.

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If lenders think that a particular borrower might default, they will demand: B) a higher interest rate to make it worth taking that risk.

B) a higher interest rate to make it worth taking that risk. When lenders perceive that a particular borrower is at a higher risk of defaulting on their loan, they will typically demand a higher interest rate to compensate for that increased risk. This higher interest rate serves to mitigate the risk incurred by the lender and make the loan more attractive despite the potential for default. Conversely, if a borrower is seen as lower risk, the lender may offer a lower interest rate as a way of competing for that borrower's business.

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Are the following statements true or false? Give brief but precise explanations for your answers.
Diversification means that the equally weighted portfolio is always optimal.

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False.Diversification means that the equally weighted portfolio is always optimal.

Diversification can help to reduce risk by spreading investments across multiple assets or asset classes, but it does not necessarily mean that the equally weighted portfolio is always optimal. The optimal portfolio depends on individual investor preferences, risk tolerance, and market conditions. Additionally, different diversification strategies can be employed, such as market-cap weighting or sector-specific weighting, which can result in different optimal portfolios. Therefore, it is important to consider multiple factors when determining the optimal portfolio, including diversification, to achieve a desired level of risk and return.

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a mathematical procedure for using sample data to estimate regression parameters is

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The mathematical procedure for using sample data to estimate regression parameters is known as least squares regression.

The mathematical procedure for using sample data to estimate regression parameters is known as least squares regression. This involves minimizing the sum of squared differences between the observed data and the predicted values, based on a mathematical model that relates the dependent variable to one or more independent variables. The regression parameters are then estimated based on the resulting equations and can be used to make predictions or draw conclusions about the relationship between the variables in the population.

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The mathematical procedure for using sample data to estimate regression parameters is called Ordinary Least Squares (OLS) regression.

Ordinary Least Squares (OLS) regression is a widely used statistical method for analyzing the relationship between a dependent variable and one or more independent variables. It estimates the coefficients of the linear regression equation by minimizing the sum of the squared errors between the observed data and the predicted values.

The resulting estimated regression coefficients can be used to make predictions about the dependent variable based on the values of the independent variables. OLS regression assumes that the errors are normally distributed and have constant variance and that there is a linear relationship between the dependent variable and the independent variables.

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Write a 1 page paper that summarizes how the developers have integrated the three computing environments to produce the products included in the current racket environment.

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In the current Racket environment, developers have successfully integrated three computing environments, namely desktop, web, and mobile, to produce versatile and efficient software products. By leveraging each environment's strengths, they have created a seamless and coherent ecosystem for users.

Desktop computing
has traditionally offered robust processing power and a rich interface, enabling developers to create feature-rich applications for the Racket environment. They have capitalized on this power to develop complex algorithms and deliver a smooth user experience in various programming tasks.

Web computing
has revolutionized the way software is accessed and distributed. Developers in the Racket environment have embraced this shift, providing web-based platforms for users to collaborate, share code, and access resources on-demand. This integration allows for greater accessibility, flexibility, and scalability in the Racket ecosystem.

Mobile computing has brought unprecedented portability and ease of use to the mix. By incorporating mobile devices into the Racket environment, developers have extended its reach and made it possible for users to perform tasks on-the-go. This integration facilitates real-time collaboration, remote access to resources, and a more inclusive user base.

In summary, the integration of desktop, web, and mobile computing environments in the Racket ecosystem has produced comprehensive and user-friendly software products. Developers have expertly harnessed the power and capabilities of each environment to create a well-rounded and adaptable platform for programming, collaboration, and learning. This seamless integration promotes a more engaging and accessible user experience, reflecting the evolving needs of today's computing landscape.

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Which of the following is true regarding a household's budget line?
It reflects the reality of a limited ability to consume.
It reflects the preferences of the household.
Its slope changes when income changes.
Its slope is the ratio of income to the price of the good.

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The household's budget line is a graphical representation of the various combinations of goods that a household can purchase given their income and the prices of the goods.

It is generally depicted as a straight line on a graph with one good on the x-axis and the other on the y-axis. The slope of the budget line is the ratio of the prices of the two goods.

This means that as the price of one good changes, the slope of the budget line also changes. It is not true that the slope of the budget line is the ratio of income to the price of the good. The ratio of income to the price of the good is actually the quantity of the good that the household can afford to purchase with their income.

The budget line takes into account the prices of both goods and the household's income to determine the feasible combinations of goods that they can purchase.

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T/F total quality management is an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes.

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True, total quality management (TQM) is an approach that involves all individuals within a company to constantly improve the quality of products, services, and business processes.

TQM is a management philosophy that focuses on meeting the needs and expectations of customers while continuously improving the efficiency and effectiveness of the organization.

The key principle of TQM is to focus on the customer and their needs, and then use that information to improve the products and services being offered. TQM involves a process of continuous improvement, which means that everyone in the organization is involved in identifying problems and developing solutions to improve processes, products, and services.

TQM is a holistic approach that involves all aspects of the organization, from management to employees, to suppliers and customers. By involving everyone in the process of quality improvement, TQM aims to create a culture of excellence and continuous improvement within the organization.

In summary, TQM is an approach that emphasizes continuous improvement of quality and involves everyone within the organization to achieve this goal. The approach is customer-focused, and the aim is to create a culture of excellence within the organization.

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Required information [The following information applies to the questions displayed below) The following selected financial data ($ in thousands) was reported by Salsa's Restaurant and Los Aztecos. Both restaurants hope to provide their customers with the best tasting burritos in their region Salsa's focuses on high quality ingredients and Los Aztecos focuses on low cost. Net sales Net Income Total assets, beginning Total assets, ending Salsa's $108,449 26,122 75,383 116,771 Los Aztecos $62,271 3,692 38,799 44,933 Required: 1. Calculate Salsa's return on assets, profit margin, and asset turnover ratio (Enter your answers in thousands of dollars. (.e. 123,000 should be entered as 123).) Return on Assets Choose Denominator Choose Numerator Return on Assets Return on assets 0 1. Calculate Salsa's return on assets, profit margin, and asset turnover ratio (Enter your answers in thousands of dollars. (le, 123,000 should be entered as 123).) Return on Assets Choose Denominator Choose Numerator Return on Assets Return on assets 0 Choose Numerator Profit Margin Choose Denominator Profit Margin Proft Margin Asset Turnover Choose Denominator Choose Numerator Asset Turnover Asset Turnover O times

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The calculations for Salsa's return on assets, profit margin, and asset turnover ratio are provided, along with the relevant terms used in the calculations, including "Salsa's Restaurant", "Los Aztecos", and "Denominator".

How to determine Salsa's return on assets, profit margin, and asset turnover ratio?

Salsa's return on assets can be calculated as follows:
Numerator = Net Income = $26,122
Denominator = Total Assets, beginning + Total Assets, ending / 2 = ($75,383 + $116,771) / 2 = $96,077
Return on assets = Net Income / ((Total Assets, beginning + Total Assets, ending) / 2)
Return on assets = $26,122 / $96,077 = 0.272 or $272 per $1,000

Salsa's profit margin can be calculated as follows:
Numerator = Net Income = $26,122
Denominator = Net Sales = $108,449
Profit margin = Net Income / Net Sales
Profit margin = $26,122 / $108,449 = 0.241 or 24.1%

Salsa's asset turnover ratio can be calculated as follows:
Numerator = Net Sales = $108,449
Denominator = Total Assets, beginning + Total Assets, ending / 2 = ($75,383 + $116,771) / 2 = $96,077
Asset turnover ratio = Net Sales / ((Total Assets, beginning + Total Assets, ending) / 2)
Asset turnover ratio = $108,449 / $96,077 = 1.129 or 1.129 times

The terms "Salsa's Restaurant", "Los Aztecos", and "Denominator" have been included in the answer.

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Which bond would most likely possess the least degree of interest rate risk? a. 12% coupon rate, 20 years to maturity b. 8% coupon rate, 10 years to maturity c. 10% coupon rate, 10 years to maturity d. 12% coupon rate, 10 years to maturity e. 8%coupon rate, 20 years to maturity

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The bond that would most likely possess the least degree of interest rate risk is option D, which is the bond with a 12% coupon rate and 10 years to maturity.

Interest rate risk refers to the risk that changes in market interest rates will affect the value of a bond. Bonds with longer maturities and lower coupon rates tend to have higher interest rate risk. The bond in option D has a shorter maturity period of 10 years, which reduces the uncertainty of interest rate movements over a long time horizon.

Additionally, it has a higher coupon rate of 12%, which means that it provides a higher yield and thus has less exposure to changes in market interest rates. Bonds with higher coupon rates tend to be less sensitive to changes in market interest rates because they offer a higher fixed income stream relative to the bond's price.

Option D is answer.

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The bond that would most likely possess the least degree of interest rate risk is option D, which is the bond with a 12% coupon rate and 10 years to maturity.

Interest rate risk refers to the risk that changes in market interest rates will affect the value of a bond. Bonds with longer maturities and lower coupon rates tend to have higher interest rate risk. The bond in option D has a shorter maturity period of 10 years, which reduces the uncertainty of interest rate movements over a long time horizon.

Additionally, it has a higher coupon rate of 12%, which means that it provides a higher yield and thus has less exposure to changes in market interest rates. Bonds with higher coupon rates tend to be less sensitive to changes in market interest rates because they offer a higher fixed income stream relative to the bond's price.

Option D is answer.

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Assume a face value of $10,000. a. Calculate the ask price of the T-bill maturing on September 1, 2016, as of May 16, 2016. b. Calculate the bid price of the T-bill maturing on November 10, 2016, as of May 16, 2016. (For all requirements, use 360 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. T-bill ask price T-bill bid price b. Monday, May 16, 2016 Treasury bill bid and ask data are representative over-the-counter quotations as of 3 p.m. Eastern time quoted as a discount to face value. Treasury bill yields are to maturity and based on the asked quote. Maturity Asked Yield Bid Asked 5/19/2016 0.168 0.158 -0.030 0.160 0.173 0.163 -0.055 0.165 5/26/2016 6/2/2016 6/9/2016 0.203 0.193 -0.038 0.196 0.195 0.185 -0.038 0.ISS 6/16/2016 0.193 0.183 0.028 0.186 6/23/2016 0.203 0.193 0.010 0.196 6/30/2016 0.210 0.200 -0.010 0.203 71/2016 0.205 0.198 0.015 0.201 7/11/2016 0.215 0.205 -0.020 0.200 7/21/2016 0233 0.223 -0.023 0.226 7/28/2016 0.245 0.23) 0.008 0.239 8/1/2016 0.255 0.215 -0.008 0.219 S/11/2016 0.255 0.243 0.020 0.249 8/18/2016 0.255 02:15 -0.018 0.2.19 S/25/2016 0.265 0.255 0.005 0.259 9/1/2016 0.258 0.2.18 -0.015 0.252 9/8/2016 0.255 0.245 0.013 0.249 9/15/2016 0.263 0.253 0.003 0.257 0.278 0.268 -0.018 0.272 9/22/2016 9/29/2016 0.250 0.270 0.013 0.274 10/6/2016 0.303 0.293 -0.013 0.297 0.308 0.298 -0.005 0.303 10/13/2016 10/20/2016 10/27/2016 0.323 0.313 0.025 0.317 0.320 0.310 -0.025 0.315 11/3/2016 0.338 0.328 -0.025 0.333 11/10/2016 0.345 0.335 -0.025 0.341 12/8/2016 0.350 0.340 -0.005 0.346 0.338 0.325 -0.005 0.334 1/5/2017 272/2017 0.428 0.418 0.003 0.426 3/2/2017 0.460 0.450 -0.010 0.458 3/30/2017 0.485 0.475 -0.013 0.484 4/27/2017 0.523 0.513 -0.010 0.522

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a) To calculate the asking price of the T-bill maturing on September 1, 2016, as of May 16, 2016, The answer is 9651.33

We need to find the quoted ask yield for this maturity date from the provided data. From the table, the quoted ask yield for September 1, 2016 maturity is 0.258. We can use the following formula to calculate the asking price:

[tex]Ask Price = Face Value * (1 - Quoted Ask Yield * Days to Maturity / 360)[/tex]

Here, Face Value is $[tex]10,000[/tex] , and the Days to Maturity is 108 (from May 16, 2016, to September 1, 2016). Substituting these values in the formula, we get: [tex]Ask Price = $10,000 * (1 - 0.258 * 108/360) = $9,702.00\\[/tex]

Therefore, the asking price of the T-bill maturing on September 1, 2016, as of May 16, 2016, is $[tex]9,702.00.[/tex]

b) To calculate the bid price of the T-bill maturing on November 10, 2016, as of May 16, 2016, we need to find the quoted bid yield for this maturity date from the provided data.

From the table, the quoted bid yield for November 10, 2016 maturity is [tex]0.335.[/tex] We can use the same formula as above to calculate the bid price: [tex]Bid Price = Face Value * (1 - Quoted Bid Yield * Days to Maturity / 360)[/tex]

Here, Face Value is $[tex]10,000[/tex] and Days to Maturity is [tex]178[/tex] (from May 16, 2016 to November 10, 2016).

Substituting these values in the formula, we get:

[tex]Bid Price = $10,000 * (1 - 0.335 * 178/360) = $9,651.33[/tex]

Therefore, the bid price of the T-bill maturing on November 10, 2016, as of May 16, 2016, is $[tex]9,651.33.[/tex]

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Required information 3 Part 3 of 3 MSI's information related to the ToddleTown Tours collection follows: Segmented Income Statement for MSI'S ToddleTown Tours Product Lines Post Pet Store Grocery office Parade Getaway Tolka Total Sales revenue $135,000 $130,000 $36,000 $301,000 Variable costs 57,000 53,000 32,000 142,000 Contribution margin $70,000 $ 77,000 $4,000 $159,000 Less Direct Fixed costs 8,200 8,200 3,400 19,800 Segment margin $ 68,800 600 $139,200 Lesst Common fixed costs 6,750 6,500 15,050 Het operating income (los) $6,050 62,300 TL,200) 0120,150 "Allocated based on total sales revenue, MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products Required: 1. Calculate the incremental effect on profit If the POP product is eliminated. 2. Should MSI drop the POP product? 3-a. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $1,200 of the common fixed costs could be avoided if the POP product line were eliminated. 3-b. Should MSI drop the POP product?

Answers

The incremental effect on profit If the POP product is eliminated is calculated as -$ 600.

The contribution margin is determined by dividing variable costs by revenue. The formula for determining the contribution margin ratio is Revenue / (Revenue - Variable Costs).

1. By comparing the avoidable fixed cost of eliminating the POP product to the lost contribution margin, this incremental effect on profit can be calculated.

incremental effect on profit = Avoidable fixed cost - sales

Contribution margin = variable cost Sales - variable cost

Lost contribution margin = $4000 (given)

Avoidable fixed cost = direct fixed cost that can be traced to segment = $3400

Lost contribution margin                       -$4000

Less: Avoidable fixed cost                     $3400

incremental effect on profit                   -$600

2. No, because MSI would lose $600 in overall profit if it discontinued the POP product.

3. Determine the incremental profit impact of eliminating the POP product. If the POP product line were discontinued, the common fixed costs of $1,200 would be avoided. Impact on Earnings

Avoidable fixed cost = direct fixed cost that can be traced to segment of $3400 plus $1,200 of the common fixed costs that could be avoided = $4600 (given)

Lost contribution margin              -$4000

Less: Avoidable fixed cost            $4600

incremental effect on profit            $600

3.(b) Yes, because MSI's overall profit would rise by $600 if it discontinued the POP product.

After subtracting variable costs like transportation costs and raw materials, a company's contribution margin shows how much revenue is left over. The product must generate more revenue than the company's fixed costs, such as salaries and insurance, in order to be profitable.

Because your contribution margin is what enables you to cover your fixed costs and generate a profit, understanding this concept is crucial. You will also be able to better decide where and how to sell your products if you know your contribution margins.

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The mass update for an award must be saved prior to adding an attachment. (True or False)

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True. The mass update for an award must be saved before adding an attachment.

This is because the system needs to create a unique identifier for the award before the attachment can be added. If the attachment is added before the update is saved, the system will not recognize the award and the attachment will not be saved. It is important to always save any updates before adding attachments to ensure that all information is properly recorded in the system.

Additionally, it is a good practice to double-check that the update has been saved before proceeding with any further actions in the system.

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The ________ refers to the way the various components of a company fit together.
organizational context
organizational structure
supply chain
regulatory network
personal communication network

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The organizational structure refers to the way the various components of a company fit together.

What is components?

Components are reusable blocks of code that allow developers to easily create complex applications. Components are self-contained, meaning that they are independent of other pieces of code. They are also easy to use, maintain, and update. Components allow developers to create applications quickly and easily, without needing to rewrite code. Components are often used to create user interfaces, such as buttons, menus, and forms, and can also be used to create complex business logic. Components are also modular, meaning that they can be used to create applications that are scalable and extensible. Components allow developers to create applications that are both efficient and cost effective.

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In general, when a business is engaged in environmental scanning, it looks at all of the following external forces that might affect it EXCEPT:
A. political and legal forces
B. demographic forces
C. the economy
D. technology
E. suppliers

Answers

In general, when a business is engaged in environmental scanning, it looks at all of the following external forces that might affect it EXCEPT: E suppliers.   Environmental scanning is an important process that businesses engage in to identify external forces that might impact their operations.

While businesses consider several external forces during this process, there is one that they do not consider, which is political and legal forces. This is surprising since these forces can have a significant impact on businesses.

Political and legal forces refer to laws, regulations, and policies that businesses must comply with. They can include tax laws, labor laws, environmental regulations, and other legislation that affects how a business operates. Failure to comply with these laws can lead to significant legal and financial consequences.

The reason why political and legal forces are not included in environmental scanning is that they are often seen as more stable and predictable compared to other external forces. The laws and regulations that govern businesses do not change as frequently as other external factors, such as technological advancements and economic conditions.

In conclusion, when businesses engage in environmental scanning, they consider several external forces that might affect their operations, including demographic forces, the economy, technology, and suppliers. However, they do not typically consider political and legal forces since they are seen as more stable and predictable. Nevertheless, businesses must still comply with these laws and regulations to avoid legal and financial consequences.

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If a firm sells a product that has a perfectly inelastic demand curve, then, if price doubles, it can be expected that: a. total revenue will decrease. b. total revenue will double. c. total revenue will remain unchanged. d. supply will decrease.

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Inelastic demand curve means that the quantity demanded of the product will not change regardless of the price, so doubling the price will not affect the quantity sold. Therefore, the total revenue earned by the firm will remain the same.

If a firm sells a product that has a perfectly inelastic demand curve, then, if price doubles, it can be expected that total revenue will remain unchanged. This is because a perfectly inelastic demand curve means that the quantity demanded of the product will not change regardless of the price, so doubling the price will not affect the quantity sold. Therefore, the total revenue earned by the firm will remain the same.

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If a firm sells a product that has a perfectly inelastic demand curve, then the answer is c. Total revenue will remain unchanged.

This is because a perfectly inelastic demand curve means that consumers are willing to pay the same price regardless of changes in quantity, meaning that price changes will not have a significant impact on demand. Therefore, the firm can double the price of the product without significantly impacting the amount of product demanded, resulting in a doubling of revenue.

When a firm sells a product with a perfectly inelastic demand curve, it means that consumers are willing to pay the same price for the product regardless of changes in price. In other words, the quantity demanded remains the same regardless of price changes. This situation is rare and usually occurs when the product is a necessity, has no substitute, or when consumers are unaware of alternative products.

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Provide an appropriate response. Describe the advantages and disadvantages of cluster sampling. Select one: a. Cluster sampling is easy because all you need to do is to sample every cluster. The disadvantage is it may be hard to Find the sample members within each cluster. b. Cluster sampling can save time when members of the population are widely scattered geographically. The disadvantage is that members of a cluster may be more homogeneous than the members of the population as a whole and may not mirror the entire population. c. Cluster sampling is very accurate because it involves sampling everyone in the population. The disadvantage is that in large populations it can be very expensive to contact all members of the population. d. Cluster sampling involves picking sample members, for example, from each income cluster which is convenient. The disadvantage is in using proportional allocation to sample each cluster since one needs to know the proportion of population members within each cluster. e. Cluster sampling is almost never used in statistics because it is so hard to do successfully. The advantage is that if we could do cluster sampling it would give us very accurate information about the population.

Answers

Cluster sampling can save time when members of the population are widely scattered geographically. (B)

The disadvantage is that members of a cluster may be more homogeneous than the members of the population as a whole and may not mirror the entire population.

Cluster sampling involves dividing the population into clusters and then selecting a sample of these clusters for study. This method can be advantageous when dealing with large populations spread across wide geographic areas, as it can save time and resources by focusing on specific groups rather than trying to access the entire population.

However, the major disadvantage of cluster sampling is that the members within a chosen cluster may share similar characteristics, making them more homogeneous than the overall population.

This can result in a less accurate representation of the entire population in the study, potentially leading to biased conclusions. It is important to consider this limitation when choosing cluster sampling as the sampling method for a study.(B)

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if jeff had written five 6-month put options on worthen, what would his profit or loss have been at the maturity of the options if the stock price was $43 per share?

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Jeff's profit or loss at the maturity of the options if the stock price was $43 per share is 5,000$.

How to find?To calculate Jeff's profit or loss after writing five 6-month put options on Worthen with the stock price at $43 per share at maturity, we need to know the strike price and the premium received for each option.Assuming that the strike price of the put options was $45 per share, Jeff would have made a profit of $10 per share on each option. This is because the holder of the put option would exercise their right to sell the stock to Jeff at $45 per share, even though the market price was only $43 per share. Jeff would then be able to sell the stock at the market price of $43 per share, making a profit of $2 per share on each option.

Hence , Jeff's total profit would be $10 per share x 100 shares (per option) x 5 options = $5,000.

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the firm's functions performed by contractors are said to be: group of answer choices insourced. sunk costs. variable costs. outsourced.None of these answers is correct.

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The functions performed by contractors are said to be outsourced. Answer is d.

When a company hires contractors or vendors to perform certain functions, rather than using its own employees, it is said to be outsourcing those functions. This allows the company to access specialized skills and expertise without the need to hire and train new employees. The contractors are external to the company, so the work they perform is not considered to be insourced. The cost of using contractors may be variable depending on the level of activity or output, but it is generally considered to be a form of fixed or sunk cost.

Option d is answer.

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The functions performed by contractors are said to be outsourced. Answer is d.

When a company hires contractors or vendors to perform certain functions, rather than using its own employees, it is said to be outsourcing those functions. This allows the company to access specialized skills and expertise without the need to hire and train new employees. The contractors are external to the company, so the work they perform is not considered to be insourced. The cost of using contractors may be variable depending on the level of activity or output, but it is generally considered to be a form of fixed or sunk cost.

Option d is answer.

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selected sales and operating data for three divisions of different structural engineering firms are given as follows: division adivision bdivision csales$ 12,640,000$ 35,800,000$ 20,640,000average operating assets$ 3,160,000$ 7,160,000$ 5,160,000net operating income$ 606,720$ 608,600$ 577,920minimum required rate of return10.00.50.20% required:1. compute the margin, turnover, and return on investment (roi) for each division.2. compute the residual income (loss) for each division.3. assume that each division is presented with an investment opportunity that would yield a 11% rate of return.a. if performance is being measured by roi, which division or divisions will probably accept the opportunity?b. if performance is being measured by residual income, which division or divisions will probably accept

Answers

1. The rate of return is  11.20%. 2. The residual income is  $567,720.

To compute the margin, turnover, and return on investment (ROI) for each division, we can use the following formulas:

Margin = Net Operating Income / Sales

Turnover = Sales / Average Operating Assets

ROI = Net Operating Income / Average Operating Assets

Using the given data, we can calculate the margin, turnover, and ROI for each division as follows:

Division A:

Margin = $606,720 / $12,640,000 = 4.80%

Turnover = $12,640,000 / $3,160,000 = 4.00

ROI = $606,720 / $3,160,000 = 19.20%

Division B:

Margin = $608,600 / $35,800,000 = 1.70%

Turnover = $35,800,000 / $7,160,000 = 5.00

ROI = $608,600 / $7,160,000 = 8.50%

Division C:

Margin = $577,920 / $20,640,000 = 2.80%

Turnover = $20,640,000 / $5,160,000 = 4.00

ROI = $577,920 / $5,160,000 = 11.20%

To compute the residual income (loss) for each division, we can use the formula:

Residual Income = Net Operating Income - (Minimum Required Rate of Return x Average Operating Assets)

Using the given data and the required rates of return, we can calculate the residual income (loss) for each division as follows:

Division A:

Residual Income = $606,720 - (10% x $3,160,000) = $294,720

Division B:

Residual Income = $608,600 - (0.5% x $7,160,000) = $271,800

Division C:

Residual Income = $577,920 - (0.2% x $5,160,000) = $567,720

Assume that each division is presented with an investment opportunity that would yield an 11% rate of return.

a. If performance is being measured by ROI, the division(s) that will probably accept the opportunity are those that currently have an ROI lower than 11%, which is only Division C. Divisions A and B have ROIs of 19.20% and 8.50%, respectively, which are already higher than the minimum required rate of return of 11%.

b. If performance is being measured by residual income, the division(s) that will probably accept the opportunity are those that will have a positive residual income after taking the investment into account. To calculate this, we can use the formula:

New Residual Income = Net Operating Income - (Minimum Required Rate of Return x Average Operating Assets) - Investment

If we assume that the investment for each division is equal to $1,000,000, we can calculate the new residual income as follows:

Division A:

New Residual Income = $606,720 - (10% x $3,160,000) - $1,000,000 = -$93,280 (loss)

Division B:

New Residual Income = $608,600 - (0.5% x $7,160,000) - $1,000,000 = -$362,200 (loss)

Division C:

New Residual Income = $577,920 - (0.2% x $5,160,000) - $1,000,000 = -$622,080 (loss)

Based on this calculation, none of the divisions would accept the investment opportunity if performance is being measured by residual income.

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Organize this list of disjoined activities from the Financial Management Cycle. Your job is to organize this list of events so your team will know what needs to be done and by when. As you organize these events think about them in the context of a 12-month cycle.
The CFO coordinates with the manager to close accounting records and financial reporting for the fiscal year
Managers user their department/project objectives to draft their individual budgets for the upcoming fiscal year
Managers assess results of their activities as compared to budget on a regular (typically monthly) basis
The CFO completes and files annual tax returns
Executive Management assess the marketplace and prior year results to develop company-wide strategic objectives for the upcoming fiscal year
The CFO completes the annual financial statement audit, and the report is distributed to the appropriate groups of internal and external stakeholders
CFO creates the company-wide annual budget for the upcoming fiscal year
Managers submit their annual budgets and objectives to the CFO for approval
CEO and CFO presents the consolidated budget to the Board for approval. The board approves or rejects the budget. If rejected, managers revise objectives and budgets according to the Board’s directive
Managers develop individual department/project objectives for upcoming fiscal year based on the strategic objectives
The CFO prepares company-wide annual financial statements
Managers oversee/implement activities (programs, services, and projects) authorized in the budget

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To organize the disjoined activities from the Financial Management Cycle within a 12-month cycle, please follow these steps:

1. Executive Management assess the marketplace and prior year results to develop company-wide strategic objectives for the upcoming fiscal year.

2. Managers develop individual department/project objectives for the upcoming fiscal year based on the strategic objectives.

3. Managers use their department/project objectives to draft their individual budgets for the upcoming fiscal year.

4. Managers submit their annual budgets and objectives to the CFO for approval.


5. CEO and CFO present the consolidated budget to the Board for approval. The board approves or rejects the budget. If rejected, managers revise objectives and budgets according to the Board's directive.
6. CFO creates the company-wide annual budget for the upcoming fiscal year.
7. Managers oversee/implement activities (programs, services, and projects) authorized in the budget.
8. Managers assess results of their activities as compared to the budget on a regular (typically monthly) basis.


9. The CFO coordinates with the manager to close accounting records and financial reporting for the fiscal year.
10. The CFO prepares company-wide annual financial statements.
11. The CFO completes the annual financial statement audit, and the report is distributed to the appropriate groups of internal and external stakeholders.
12. The CFO completes and files annual tax returns.

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Which function will determine the value of a present savings deposit in twelve years?
A. FV = A(A/P,i,10)
B. FV = F(A/F,i,120)
C. FV = P(F/P,i/12,144)
D. PV = P(P/F,i/12,10)
E. None of the above

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FV = P(F/P,i/12,144) . This function will determine the value of a present savings deposit in twelve years by using the future value formula with compounding interest.

This function will determine the value of a present savings deposit in twelve years by using the future value formula with compounding interest. P represents the initial deposit amount, i/12 is the interest rate per period, and 144 represents the number of compounding periods (12 years * 12 months). One of the financial functions,  determines the value of an investment in the future using a fixed interest rate. FV can be used with either a series of regular, recurring payments or a single, one-time payment.

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not tolerating corruption in any of its forms, including extortion and bribery, relates to which ism standard for supply management?

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Not tolerating corruption in any of its forms, including extortion and bribery, relates to sustainability and social responsibility ISM standard for supply management

Modern supply chain management practises emphasise sustainability and social responsibility, and many firms follow defined standards to ensure moral and ethical supply chain operations. Standards that emphasise the significance of sustainability and social responsibility in supply management have been produced by the ISM, a professional society for supply chain management. It is commonly acknowledged that corruption, which includes extortion and bribery, is immoral and criminal behavior that may harm economies, society, and enterprises.

The supply chain management values of sustainability and social responsibility can be compromised when businesses engage in dishonest behaviour. By emphasising that an organisation does not allow corruption in any of its manifestations, including extortion and bribery, it is in line with the ISM supply management standards, which place a strong emphasis on moral conduct and ethical supply chain practises.

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According to Brandon's recommendation, assuming that the market is in equilibrium, how much will the portfolio's required return change? 1.31 percentage points 1.02 percentage points 1.51 percentage points 1.62 percentage points

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According to Brandon's recommendation, assuming that the market is in equilibrium, the portfolio's required return will change by 1.31 percentage points.

This means that the return that the portfolio needs to earn in order to meet the investor's financial goals will increase by 1.31 percentage points. This change in required return can occur due to various reasons such as changes in market conditions, the performance of the portfolio, or changes in the investor's financial goals.

The concept of market equilibrium refers to a situation where the supply of securities is equal to the demand for securities. In such a scenario, the market price of securities is determined by the interaction of buyers and sellers. When the market is in equilibrium, there is no shortage or surplus of securities, and the price is considered fair.

Brandon's recommendation, in this case, would have taken into consideration the current market conditions and the investor's financial goals. Based on his analysis, he would have recommended a specific required return for the portfolio.

If the market remains in equilibrium, the change in the portfolio's required return can be attributed to changes in the investor's financial goals.

In conclusion, the portfolio's required return will change by 1.31 percentage points according to Brandon's recommendation, assuming that the market remains in equilibrium. This change in required return will affect the portfolio's performance and the investor's ability to meet their financial goals.

Therefore, it is important to regularly review the portfolio's performance and adjust the required return as necessary.

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on the aggregate supply curve, when short-run output deviations are equal to zero, the y-intercept is equal to:

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"On the aggregate supply curve, when short-run output deviations are equal to zero, the y-intercept is equal to: πt−1."

The aggregate supply curve is a graphical representation of the relationship between the overall price level and the total output produced by an economy. When short-run output deviations are equal to zero, it means that the economy is operating at its potential output level, which is also known as the long-run equilibrium.

In this case, the y-intercept of the aggregate supply curve represents the price level that corresponds to the expected inflation rate from the previous period, denoted as πt−1. This is because in the long-run equilibrium, the economy produces at its full capacity and any increase in demand for goods and services will only result in a corresponding increase in the overall price level, without affecting the output level.

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Bramble Corp. has sales of $1800000, variable costs of $850000, and fixed costs of $900000. Bramble’s degree of operating leverage is O 1.06. O 1.16. O 1.12. O 19.00.

Answers

Bramble's degree of operating leverage is 19.00.

Hi! To calculate Bramble Corp.'s degree of operating leverage, we will first find the contribution margin, which is sales minus variable costs. Next, we will find the operating income, which is the contribution margin minus fixed costs. Finally, we will divide the contribution margin by the operating income to determine the degree of operating leverage.

1. Contribution Margin = Sales - Variable Costs = $1,800,000 - $850,000 = $950,000
2. Operating Income = Contribution Margin - Fixed Costs = $950,000 - $900,000 = $50,000
3. Degree of Operating Leverage = Contribution Margin / Operating Income = $950,000 / $50,000 = 19.00

Therefore, Bramble's degree of operating leverage is 19.00.

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if future cash flows are to be expressed in actual $ (a$), the interest rate that should be used in determining the present worth is the market interest rate. question 7 options: true false

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If future cash flows are to be expressed in actual dollars, then the interest rate that should be used in determining the present worth is the nominal interest rate, which includes the effects of inflation. The statement is False.

The market interest rate only takes into account the time value of money but does not account for changes in purchasing power due to inflation. Therefore, the nominal interest rate is a more appropriate discount rate to use when determining the present worth of future cash flows in actual dollars.

The discount rate used to determine the present value of future cash flows will depend on a number of factors, including the riskiness of the investment, the opportunity cost of investing in alternative investments, and the prevailing market interest rates. In general, the higher the risk of an investment, the higher the discount rate that should be used.

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A security has a cost of $1,000 and will return $2,000 after 5 years. What rate of return does the security provide? Suppose California's population is 30 million people, and its population is expected to grow by 2% per year. How long would it take for the population to double? Find the PV of an annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%. Then find the FV of that same annuity. How would the PV and FV of the annuity change if it was an annuity due rather than an ordinary annuity?

Answers

An Annuity's PV and FV A series of equal regular payments or receipts is known as an annuity.An annuity that pays out at the end of each term is referred to as an ordinary annuity.

Two concepts that are frequently used in finance are the present value (PV) and future value (FV) of an ordinary annuity.

PV = P* [(1- (1 + r)-n) /r] is the equation for calculating the present value of an ordinary annuity. where P is a payment, r is an interest rate, and n is the number of payments.In this instance, the payment is $1,000, the interest rate is 15%, and the number of installments is 5 years. Therefore, using the formula, we obtain:

PV = $1,000 *

[(1 - (1+ 0.15)-5)/0.15]

= $3,352.16The formula for future value of an ordinary annuity is:

FV = P * [(1 + r^n -1] /r

FV = $1,000 [(1 + 0.155 - 1)/ 015]

= $6,742.38 where P = payment and r = interest Rate Therefore, the present value of the annuity is $3,352.16, and the future value of the annuity, applying the formula, we arrive at the following result:

FV = $1,000 [(1 + 0.15)5 - 1]/ 0.1

= $6,742.38.As a result, the annuity's present value $3,352.16 and its future value is $6,742.38.

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