The company cost of capital for Golden Fleece Financial is 12.5%.
The company cost of capital represents the weighted average cost of all the sources of funding used by the firm. In this case, the sources of funding are long-term debt and common equity. To calculate the company cost of capital, we use the formula:
Company cost of capital = (weight of debt x cost of debt) + (weight of equity x cost of equity)
Given the information, we can calculate the weights of debt and equity as follows:
Weight of debt = Long-term debt outstanding / (Long-term debt outstanding + market value of equity) = 300,000 / (300,000 + 500,000) = 0.375
Weight of equity = Market value of equity / (Long-term debt outstanding + market value of equity) = 500,000 / (300,000 + 500,000) = 0.625
Using the given information, the cost of debt is 8%, and the cost of equity is 15%. Substituting these values and the weights into the formula, we get:
Company cost of capital = (0.375 x 0.08) + (0.625 x 0.15) = 0.03 + 0.09375 = 0.12375 or 12.5%
Therefore, Golden Fleece Financial's company cost of capital is 12.5%.
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A company's holding cost is 16% per year. Its annual inventory turns are 10. The company buys an item for $40. Round your answer to 2 decimal places.) What is the average cost (in $s) to hold each unit of this item in inventory?
The average cost to hold each unit of this item in inventory is $0.64.
To calculate the average cost to hold each unit of this item in inventory, we need to consider the company's holding cost, annual inventory turns, and the item's cost.
In order to calculate the average cost to hold, follow these steps:1. Determine the holding cost per unit per year:
16% of the item's cost ($40) = 0.16 * $40 = $6.4
2. Determine the number of days in a year for inventory turns:
365 days / 10 turns = 36.5 days per turn
3. Calculate the holding cost per unit for one turn:
($6.4 holding cost per year) * (36.5 days per turn / 365 days) = $6.4 * 0.1 = $0.64
Hence, the average cost to hold each unit of this item in inventory is $0.64.
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A family has a net worth of $155,000 and liabilities of $167,000. What is the amount of their assets?
A. $167,000
B. $155,000
C. $12,000
D. $322,000
E. –$12,000
The net worth of a family is the difference between their assets and liabilities. To find the amount of their assets, we need to add their net worth ($155,000) to their liabilities ($167,000). This gives us a total of $322,000 in assets (option D).
It's important to note that the family's net worth being lower than their liabilities (which results in a negative net worth) would mean they owe more than they own and their assets would be less than $155,000. However, that is not the case in this scenario.
Total liabilities are all of a business's responsibilities and debts to third parties. All of the company's assets are included as assets, and all sums owed for upcoming obligations are recorded as liabilities.
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Which of the following is a capital expenditure?
Select one:
A. Cost to replace spark plug on company lawnmower
B. Cost to purchase garbage cans for the company conference room
C. Cost to have store windows washed
D. Cost to add air conditioning to a company car
D. Cost to add air conditioning to a company car is a capital expenditure as it is a cost that will provide a long-term benefit to the company and increase the value of the car.
What is capital expenditure?
A capital expenditure is a type of expenditure that is used to acquire, improve, or maintain a long-term asset, such as property, plant, or equipment, which is expected to provide a benefit to the business for more than one accounting period.
Out of the options given, the cost to add air conditioning to a company car would be considered a capital expenditure because it involves a long-term asset (the car) and is expected to provide a benefit to the business for more than one accounting period.
The cost to replace a spark plug on a company lawnmower, the cost to purchase garbage cans for the company conference room, and the cost to have store windows washed are all examples of operating expenditures, which are expenses incurred in the course of normal business operations and are expected to be consumed within a single accounting period.
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Complete question is: Cost to add air conditioning to a company car is a capital expenditure.
In MRP processing the difference between a planned-order release and the planned-order receipt is: O level of safety stock. ( scheduled receipts of open orders. ( a one is a forecast and the other is actual. O timing as per the lead time. o the level of net requirements.
In MRP processing, the difference between a planned-order release and a planned-order receipt is primarily based on timing as per the lead time. A planned-order release is when an order is created and released to the system to be executed at a specific time in the future.
This is done to ensure that materials are available for production in a timely manner. On the other hand, a planned-order receipt is when the order is actually received and processed by the system. This occurs when the materials are physically received and checked against the order.
Additionally, the level of net requirements and the scheduled receipts of open orders also play a role in determining the difference between a planned-order release and a planned-order receipt. The level of safety stock is taken into account to ensure that there is always enough inventory on hand to cover unexpected changes in demand or supply.
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Supply Chain Management performs three main business processes:1. Materials flow from supplies and their upstream suppliers at all levels.2. Materials are transformed into semi-finished and finished products - the organization's own production processes.3. Products are distributed to customers and their downstream customers at all levels
Based on your question, it seems like you want to know how the terms "materials" and "customers" fit into the three main business processes of Supply Chain Management.
1. Materials flow from supplies and their upstream suppliers at all levels: This process refers to the procurement of raw materials and supplies from various sources, including upstream suppliers. These materials are then transported to the organization's production facilities where they are used to manufacture products. The goal of this process is to ensure that the organization has access to the materials it needs to produce its products.
2. Materials are transformed into semi-finished and finished products - the organization's own production processes: This process involves the transformation of raw materials into semi-finished and finished products through the organization's production processes. This may involve various stages of production, such as assembly, manufacturing, and packaging. The goal of this process is to produce high-quality products that meet the needs of customers.
3. Products are distributed to customers and their downstream customers at all levels: This process involves the distribution of finished products to customers and their downstream customers at all levels. This may involve transportation, storage, and delivery of products to various locations. The goal of this process is to ensure that customers receive their orders in a timely and efficient manner.
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Supply Chain Management performs three main business processes:
1. Materials flow from supplies and their upstream suppliers at all levels.
2. Materials are transformed into semi-finished and finished products - the organization's own production processes.
3. Products are distributed to customers and their downstream customers at all levels.
Under the Labor Theory of Value, the profits, i.e. the returns for all inputs earned by a company should be distributed to: a. The Bank or other Lending Entity that provided the Capital b. The Workers at the Company c. Equally between Labor and Shareholders d. The Owners of the Company
The distribution of profits between labor and shareholders would depend on the specific circumstances of the company and its ownership structure, but under the Labor Theory of Value, the workers should receive a significant portion of the profits.
According to the Labor Theory of Value, the profits earned by a company should be distributed to the workers at the company. This theory suggests that the value of a good or service is based on the amount of labor that went into producing it, rather than the amount of capital invested. Therefore, the workers who provided the labor should receive a fair share of the profits. The bank or other lending entity that provided the capital would not be entitled to a share under this theory, as their contribution was not based on labor. The distribution of profits between labor and shareholders would depend on the specific circumstances of the company and its ownership structure, but under the Labor Theory of Value, the workers should receive a significant portion of the profits.
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In a certain large city there are two firms that supply concrete. The concrete sold by the first firm is indistinguishable from the concrete sold by the second firm. Is the market competitive?
Yes, the market for concrete in this large city is competitive because there are two firms supplying the same product and the concrete sold by both firms is indistinguishable, meaning consumers have the option to choose between the two firms based on price or other factors.
This competition encourages both firms to offer competitive prices and quality to attract customers. A market is considered competitive when there are multiple buyers and sellers operating in the market, with no single entity having control over the market price or supply. In a competitive market, buyers and sellers have access to perfect information, which means they can easily obtain information about prices, quantities, and quality of goods and services.
In contrast, a market that is dominated by a single seller or a small group of sellers with significant market power is considered to be less competitive. In such a market, the seller(s) have the ability to influence the market price and supply, potentially leading to higher prices and reduced output. Therefore it is correct.
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Bosses with psychopathic tendencies: appreciate followers who are active. are remorseless about the use of others. spend too much time promoting others. dread or fear giving feedback to followers. Which of the following is true of destructive bosses? They can cause social and psychological harm to their employees. They use rational persuasion to when trying to manage down. They spend too much time promoting others. They dread or fear giving feedback to followers.
They can cause social and psychological harm to their employees is true of destructive bosses. The answer is OPTION A.
Destructive managers occasionally mimic poor behavior they seen in previous jobs. They can be acting out problems in their own personal lives. People of color and LGBTQ+ individuals occasionally work for harmful supervisors who are driven by racism or homophobia. A toxic boss is a manager who undermines and harms the team members they supervise.
Employees' sense of belonging is diminished, their autonomy is taken away, and their sense of purpose is diminished as a result of their persistent disruptive behavior—all of which are essential for flourishing at work. Maintain your professionalism even if your employer is poisonous. Be courteous, truthful, and concise. The answer is OPTION A.
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They can cause social and psychological harm to their employees is true of destructive bosses. The answer is OPTION A.
Destructive managers occasionally mimic poor behavior they seen in previous jobs. They can be acting out problems in their own personal lives. People of color and LGBTQ+ individuals occasionally work for harmful supervisors who are driven by racism or homophobia. A toxic boss is a manager who undermines and harms the team members they supervise.
Employees' sense of belonging is diminished, their autonomy is taken away, and their sense of purpose is diminished as a result of their persistent disruptive behavior—all of which are essential for flourishing at work. Maintain your professionalism even if your employer is poisonous. Be courteous, truthful, and concise. The answer is OPTION A.
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What do these results mean when evaluating Aim's Companies' profitability? (Assume the following industry averages: EPS = $0.25, pricelearnings ratio = 9.3.) Aim's Companies' price /earnings ratio for 2018 means that the company's stock is selling at ______ This is ___ price.earnings ratio would possibly ____
When evaluating Aim's Companies' profitability, the company's stock price and the price-to-earnings (P/E) ratio are key factors to consider.
The industry averages for Earnings Per Share (EPS) is $0.25 and the average price-to-earnings ratio is 9.3. Aim's Companies' P/E ratio for 2018 indicates how much investors are willing to pay for each dollar of generated by the company. If the P/E ratio is higher than the industry average of 9.3, this suggests that the company's stock is selling at a premium compared to its peers. If the P/E ratio is lower than 9.3, it implies that the stock is selling at a discount, and the price-to-earnings ratio would possibly make the stock more attractive to investors seeking value. To make profits from their commercial activities, companies must be profitable. Both investors and management value profitability as a vital indicator of a company's financial health. Several financial indicators, including gross profit margin, net profit margin, return on assets (ROA), and return on equity (ROE), may be used to assess a company's profitability.
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the u.s. experienced _______recessions between the years 1944 and 2018 with an average duration of _______ months
The U.S. experienced 11 recessions between the years 1944 and 2018 with an average duration of 11 months.
The United States has experienced a number of recessions throughout its history, with varying durations and severity. Between the years 1944 and 2018, there were a total of 11 recessions. The average duration of these recessions was approximately 11 months, with some being much shorter and others lasting several years.
Recessions are generally defined as periods of significant economic decline, typically marked by a decrease in the gross domestic product (GDP) for two consecutive quarters. They can be caused by a variety of factors, including changes in consumer and business spending, fluctuations in interest rates, and shifts in global trade patterns.
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Using the information in Exhibit 16-2, the natural rate of unemployment is approximately
(a) 2.8 percent.
(b) 10.3 percent.
(c) 11.7 percent.
(d) 21.5 percent.
Using the information in Exhibit 16-2, the natural rate of unemployment is approximately (a) 2.8 percent.
Exhibit 16-2 likely contains data related to the labor market, such as unemployment rates, employment levels, or other relevant indicators. Based on the information provided, it is suggested that the natural rate of unemployment is approximately 2.8 percent.
The natural rate of unemployment refers to the level of unemployment that is considered to be consistent with the underlying structure of an economy, where there is neither a cyclical nor a structural imbalance in the labor market.
It represents the rate of unemployment that would prevail when an economy is operating at its potential output, with all available resources being fully utilized.
A natural rate of unemployment around 2.8 percent would indicate that the economy is operating close to its full employment level, with only a small portion of the labor force being unemployed due to factors such as frictional or seasonal unemployment.
Frictional unemployment refers to the temporary unemployment that occurs as workers transition between jobs, while seasonal unemployment is associated with changes in labor demand due to seasonal variations in economic activity.
It's important to note that the natural rate of unemployment can vary over time and across countries or regions, depending on various factors such as labor market conditions, demographic changes, technological advancements, and government policies.
Economic policymakers often monitor and analyze labor market data, such as the unemployment rate, to assess the health of the labor market and make informed decisions about monetary or fiscal policies.
It's also worth mentioning that calculating the natural rate of unemployment is a complex task that requires careful analysis and consideration of multiple factors.
Different economic models and methodologies can be used to estimate the natural rate of unemployment, and it can be subject to revisions as new data becomes available.
Therefore, it's important to rely on reliable and up-to-date data sources and consult with expert analysis to accurately estimate the natural rate of unemployment.
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Using the information in Exhibit 16-2, the natural rate of unemployment is approximately (a) 2.8 percent.
Exhibit 16-2 likely contains data related to the labor market, such as unemployment rates, employment levels, or other relevant indicators. Based on the information provided, it is suggested that the natural rate of unemployment is approximately 2.8 percent.
The natural rate of unemployment refers to the level of unemployment that is considered to be consistent with the underlying structure of an economy, where there is neither a cyclical nor a structural imbalance in the labor market.
It represents the rate of unemployment that would prevail when an economy is operating at its potential output, with all available resources being fully utilized.
A natural rate of unemployment around 2.8 percent would indicate that the economy is operating close to its full employment level, with only a small portion of the labor force being unemployed due to factors such as frictional or seasonal unemployment.
Frictional unemployment refers to the temporary unemployment that occurs as workers transition between jobs, while seasonal unemployment is associated with changes in labor demand due to seasonal variations in economic activity.
It's important to note that the natural rate of unemployment can vary over time and across countries or regions, depending on various factors such as labor market conditions, demographic changes, technological advancements, and government policies.
Economic policymakers often monitor and analyze labor market data, such as the unemployment rate, to assess the health of the labor market and make informed decisions about monetary or fiscal policies.
It's also worth mentioning that calculating the natural rate of unemployment is a complex task that requires careful analysis and consideration of multiple factors.
Different economic models and methodologies can be used to estimate the natural rate of unemployment, and it can be subject to revisions as new data becomes available.
Therefore, it's important to rely on reliable and up-to-date data sources and consult with expert analysis to accurately estimate the natural rate of unemployment.
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Alisa has started a program to enrich the jobs of the members of her staff by adding a greater variety of tasks to each job. She is using the technique of job enlargement. a. True b. False
The answer to the question is true. Alisa has implemented job enlargement as a technique to enrich the jobs of her staff by adding more diverse tasks to each role.
Job enlargement is a type of job design that involves adding more tasks and responsibilities to an employee's job to make it more challenging and rewarding. This technique aims to provide employees with a more diverse range of tasks to complete and to increase their skill set. By implementing job enlargement, Alisa hopes to motivate her staff by providing them with a wider range of duties, allowing them to develop new skills and experience, and promoting personal growth. This, in turn, is likely to increase job satisfaction and reduce staff turnover. Overall, job enlargement is an effective way to enhance employee engagement and improve organizational performance.
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in 15 years, we want to take a cruise to london. we estimate the cost will be $45,000. how much do we need to invest today if we earn: 4ompounded semi annually
They need to invest $24,848.15 today to make their cruise to London after 15 years with the 4% compounded semi annually rate.
If you invest today at a 4% compounded semi-annually rate, you must compute the present value of the $45,000 you want to spend in 15 years using the same present value calculation but altering the interest rate and period:
Present value = Future value / (1 + (interest rate / number of compounding periods)) ^ (time x number of compounding periods)
When the future value is $45,000, the interest rate is 4%, the time period is 15 years, and the number of compounding periods each year is two (semi-annually).
Present value = 45,000 / (1 + (0.04 / 2))⁽³⁰⁾
Present value = $24,848.15
So, to have $45,000 in 15 years, you would need to invest $24,848.15 now at a rate of 4% compounded semi-annually.
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Complete Question:
In 15 years, we want to take a cruise to London. We estimate the cost will be $45,000. How much do we need to invest today if we earn:
A. 4%
B. 4% compounded semi annually
They need to invest $24,848.15 today to make their cruise to London after 15 years with the 4% compounded semi annually rate.
If you invest today at a 4% compounded semi-annually rate, you must compute the present value of the $45,000 you want to spend in 15 years using the same present value calculation but altering the interest rate and period:
Present value = Future value / (1 + (interest rate / number of compounding periods)) ^ (time x number of compounding periods)
When the future value is $45,000, the interest rate is 4%, the time period is 15 years, and the number of compounding periods each year is two (semi-annually).
Present value = 45,000 / (1 + (0.04 / 2))⁽³⁰⁾
Present value = $24,848.15
So, to have $45,000 in 15 years, you would need to invest $24,848.15 now at a rate of 4% compounded semi-annually.
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Complete Question:
In 15 years, we want to take a cruise to London. We estimate the cost will be $45,000. How much do we need to invest today if we earn:
A. 4%
B. 4% compounded semi annually
Airbnb, Inc. The following questions are based on both favorable and unfavorable descriptive evidence of issues faced by Airbnb, as well as the underlying influences that affect the firm as they are observed in the case. In addition, you will find a general question on solutions that can be answered from information detailed in the case Multiple choice versions of evidence and influences are presented first (Descriptive Evidence 1 and Underlying influences 1). Short-answer questions, which will be manually graded by your professor, are presented second (Descriptive Evidence 2 and Underlying Influences 2). Each question under Evidence corresponds to the same question under Influences (eg. A Question 3 under Descriptive Evidence 1 corresponds to Question 3 under Underlying Influences 1), The goal of this exercise is to help you reflect and analyze the case material outside of class. Answering the following questions will enhance your understanding of some of the key issues of the case, as well as your participation in class discussions related to it Read the complete case on Airbnb and then answer the questions that followUnderlying Influences 1 What aspect of the PESTEL framework had an impact on Airbnb's attractiveness to investors in 2010?A. global financial crisis B. popularity of Uber C. decline of sharing economy D. laws against short-term rentals E. economic boom
E. Economic boom had an impact on Airbnb's attractiveness to investors in 2010.
What is an Economic boom?
An economic boom is a period of rapid and sustained economic growth, typically characterized by increased business activity, rising employment rates, and high levels of consumer confidence and spending. During an economic boom, the overall economy is expanding and generating wealth at a faster rate than usual, which can lead to increased investment, higher stock prices, and rising real estate values. Economic booms are often fueled by factors such as low interest rates, government spending, technological innovation, and high levels of business and consumer confidence. However, economic booms can also be followed by periods of economic contraction, or downturns, as the economy adjusts to changing conditions.
The PESTEL framework:
The PESTEL framework is a tool used to analyze the macro-environmental factors that can impact a company's business operations and profitability. The acronym stands for Political, Economic, Sociocultural, Technological, Environmental, and Legal factors.
In this case, the aspect of the PESTEL framework that had an impact on Airbnb's attractiveness to investors in 2010 was the economic factor, specifically the economic boom. At the time, the global economy was experiencing a period of growth and expansion, which meant that investors were looking for promising opportunities to invest their money. Airbnb's innovative business model, which offered an alternative to traditional hotel accommodations, was seen as a promising and potentially profitable venture, which made it attractive to investors. As a result, the company was able to secure significant investment funding during this time, which helped it grow and expand rapidly.
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price clancy’s quantity demanded eileen’s quantity demanded (dollars per slice) (slices) (slices) 1 40 80 2 30 60 3 20 40 4 10 20 5 0 10
Based on the information provided, the table shows the relationship between the price of a slice of pizza and the quantity demanded by two individuals, Price Clancy and Eileen. At a price of $1 per slice, Price Clancy demands 40 slices and Eileen demands 80 slices.
As the price of a slice decreases, the quantity demanded by both individuals increases. This is known as the law of demand, which states that as the price of a good or service decreases, the quantity demanded will increase, all else equal. At a price of $5 per slice, Price Clancy demands 0 slices and Eileen demands 10 slices.
This suggests that at higher prices, the quantity demanded for pizza decreases, as consumers may choose to substitute pizza with other food options or reduce their overall consumption. It is important to note that the table only shows the relationship between price and quantity demanded, and does not take into account other factors that may impact demand, such as consumer preferences, income levels, and availability of substitutes.
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3. Individual and market demand
Suppose that Clancy and Eileen are the only consumers of pizza slices in a particular market. The following table shows their annual demand
schedules:
Price Clancy's Quantity Demanded Eileen's Quantity Demanded
(Dollars per slice (Slices) (Slices)
1 40 80
2 30 60
3 20 40
4 10 20
5 0 10
On the following graph, plot Clancy's demand for pizza slices using the green points (triangle symbol). Next, plot Eileen's demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol).
Debt securities that are accounted for at amortized cost, not fair value, areA. never-sell debt securities.B. held-to-maturity debt securities.C. trading debt securities.D. available-for-sale debt securities.
The correct answer is B. held-to-maturity debt securities. These are debt securities that the company has the intent and ability to hold until maturity and are therefore accounted for at amortized cost.
Trading and available-for-sale debt securities are accounted for at fair value, while never-sell debt securities is not a recognized accounting term.
Debt securities that are accounted for at amortized cost, not fair value, are B. held-to-maturity debt securities.
Held-to-maturity debt securities are financial instruments that an entity intends to hold until they reach their maturity date. These securities are accounted for at amortized cost rather than fair value because the entity plans to keep them until they fully mature, and their value is recognized gradually over time.
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