Suppose that Alex's benefit to the game is $128. Suppose further that Alex already bought a ticket (price of $80). Finally, suppose his non-refundable ticket has no resale value. Suppose that Alex's boss is considering paying a raise to Alex if he goes to work. Which of the following is true? (select all that apply)
Q: I followed the excel calculation but in the end, I couldn't solve it, I would like for it to be…
A:
Q: a. What are earnings per share? (Do not round intermediate calculations and round your answer to 2…
A: Information Provided: Addition to retained earnings = $298,000 Cash dividend = $178,000 Total…
Q: Gilberto opened a savings account for his daughter and deposited $1000 on the day she was born. Each…
A: Value of account at the end of year 12 is calculated using following equation Future value=…
Q: XYZ, Inc. declared on January 1, 2015, that it will pay a cash dividend of $1.00 per share at the…
A: Given: Expected dividend = $1 2016 growth rate = 20% 2017 growth rate = 20% Constant growth rate =…
Q: Draw the timeline presenting discount factor in Net present value in 5 years.
A: With discount factor you can forecast future cash flows that could arise from a project. It is more…
Q: a. If the tax rate is 22 percent, what is the project's Year 0 net cash flow? Year 1? Year 2? Year…
A: Information Provided: Initial fixed asset = $2.31 million Annual sales = $1,770,000 Costs =…
Q: entering the workforce plans to make monthly contributions to a retirement account in the amount of…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: Find the future value of a 15-year annuity due with payments of $2,700 and an annual compound…
A: To Find: Future Value
Q: Why is the historical investor risk premium so much higher than the implied investor risk premium in…
A: Risk premium refers to the return on the investment that is expected by an asset as a yield that…
Q: describe in detail credit unions
A: Financial institutions: A corporation engaged in the business of handling financial and monetary…
Q: Jerry Rice and Grain Stores has $4,780,000 in yearly sales. The firm earns 4.5 percent on each…
A: Given, Sales $4,780,000 Net profit margin is 4.5%
Q: A new employee charged $4710 on his credit card to relocate for his first job. After noticing that…
A: Data given: PV= $4710 r=27% compounded monthly n= 2 years Working Note #1 Calculation of monthly…
Q: What is your Excel RATE of an investment that earns 12% compounded quarterly? 1% 12%…
A: Quarter comprise of 3 months In a year they are 4 quarters
Q: Are you agree with the phrase (sentence): "In the following case, A risk aversion person will not…
A: A person is said to be a risk averse person, when he prefers lower returns with known risk in…
Q: What the benefits of the DuPont analysis to deconstruct a firms ROE?
A: Duopoint analysis With the help of the DuPont Analysis, researchers can identify a company's areas…
Q: What is the effective rate of a credit card whose Annual Interest Rate is 28.99% and compounds…
A: Annual interest rate = 0.2899 or 28.99% Number of compounding in a year = 365 Effective rate = ?…
Q: AVC firm is willing to invest $40 million in a startup, which is expected to generate $150 million…
A: To Find: % of Ownership in startup
Q: For each account on this company’s balance sheet, show the change in the account during 2021 and…
A: Use & Source of Cash: The use of cash represents the decline in current liabilities, the…
Q: A trader buys a call option on a share for K2. The stock price is K25 and the strike price is K20.…
A: Future contracts are those agreements or contracts which are entered today but these are for future…
Q: Find the future value of a 6-year annuity due with payments of $4,300 and an annually compounded…
A: An annuity is a contract that pays a periodic sum for a predetermined period for a lump-sum amount…
Q: B. Z Corporation has 1,000 shares of K20 par value common stock outstanding. The company is…
A: The stock split is a component of financial restructuring in which the corporation makes decisions…
Q: (a) If the interest rate is 6% per year compounded quarterly, what is the effective annual interest…
A: Information Provided: Interest rate = 6% compounded quarterly NOTE: As per our policy, we only…
Q: An investment banking client is considering issuing a ten-year bond to finance an acquisition and…
A: Z spread of a bond is the zero volatility spread of that bond. It is added to each year treasury…
Q: annuity that pays $800 each year? If this was an annuity due, what would its future value be?
A: Annuity due is annuity that pay the payment in beginning of period but ordinary annuity payments are…
Q: Denver, Incorporated, has sales of $18 million, total assets of $16.7 million, and total debt of…
A: Calculation of company's net income: Net Income = Sales * Profit margin = 18,000,000 * 0.05=…
Q: How Net present value, interest rate, and benefit change if cost increases.
A: Net present value means difference between present value of the cash inflows and present value of…
Q: Countries within the Caribbean continue to grapple with debt issues. Many have resorted to seeking…
A: The Caribbean is a part of the Americas that includes the nearby countries in Caribbean Sea, its…
Q: What is the five firm concentration ratio?
A: Concentration ratio- It is defined as the collective market share of the largest firm in an…
Q: John wishes to have $100,000 saved for his new-born baby daughter when she turns 20. If the interest…
A: Future Value = $100,000 Interest Rate = 9% Time Period = 20 Years
Q: A new antitheft system incorporating MEMS technology is being separately evaluated economically by…
A: Initial Investment $ 85,000.00 MARR 8% Time Period Years 6 Salvage Value $…
Q: What amount could be withdrawn at t=10? b. What uniform annual series deposits (n=10) would result…
A: An annuity is a set of periodic payments that occur for a predetermined time. The future value of an…
Q: What are the five variables that affect the value of an option, and how do changes in each of these…
A: Option price refers to the price at which buyers purchase the stock or have the right to buy or sell…
Q: 1. Which entry strategy has the least risk and why?
A: When a company is looking to enter a new market especially a new foreign market (i.e. a market in…
Q: oblem 3-2 Equity Multiplier and Return on Equity Kodi Company has a debt-equity ratio of .86. Return…
A: a) The equity multiplier is 1.14 b) The return on equity is 10.53%. c) The net income is…
Q: When would I use the arithmetic average risk premium (as opposed to the geometric risk premium)?
A: Your answer: The arithmetic average risk premium is used when the returns are not reinvested and…
Q: swap and an ma Australia and U.S. Use the information provided below and suggest a portfolio to…
A: We have information regarding spot and future rate. We have interest rate for the two currencies. We…
Q: oïc is planning to purchase a Treasury bond paying a (j2) coupon rate of 4.94% p.a. The face value…
A: Price of bond is the present value of coupon payment and present value of par value of bond taken on…
Q: a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round…
A: Labor Productivity : (sales / labor hours) US : 90,000 / 20,105 = 4.48 units per labor hour LDC :…
Q: Case, Part 2: Suppose you decide that you will not submit an application for an ARM due to Velma’s…
A: Adjustable rate mortgage or ARM is also known by the name variable rate mortgages. Under the…
Q: Find the amount of each payment to be made into a sinking fund earning 9% compounded monthly to…
A: Data given: A=Amount to be accumulated = $86,000 P= Payment to be made = ? i=interest rate…
Q: Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This…
A: Initial cash outlay $ 55,00,000.00 Net cash inflows $ 9,00,000.00 Time Period (Years) 9…
Q: The base period for an index number refers to the first period in the series of measurements.
A: As per the honor code of Bartleby we are bound to give the answer of first question only, please…
Q: All of the following is a source of cash except: Group of answer choices decrease in inventory…
A: There are many sources of cash available in the company but some time money comes from one source…
Q: 5-21 EVALUATING LUMP SUMS AND ANNUITIES. Kristina just won the lottery, and she must choose among…
A: As per Bartleby guidelines,If a question with multiple sub-parts are posted, first 3 sub-parts will…
Q: ears Bank Total Asset 2018 STANBIC 6,205,018 2019.…
A: Concentration ratio gives us an idea of the market structure and the competitiveness of the…
Q: You want to have $300,000 in 15 years. You want to know how much you need to invest each month at…
A: Amount required or accumulated value (AV) = $300,000 Monthly interest rate (r) = 0.00416666666666667…
Q: Assume that you purchase a property for $200,000 and it generates annual cash flows of $30,000 in…
A: Solution:- Internal Rate of Return (IRR) means the rate of return earned by a project by investing…
Q: At the beginning of the year, the balance sheet of The Outlet showed $8 in the common stock account…
A: Cash flow to stockholder includes the following Money received on account of shares issued Dividend…
Q: Y3K, Incorporated, has sales of $6,389, total assets of $3,005, and a debt-equity ratio of 1.60. If…
A: Information Provided: Sales = $6,389 Total assets = $3,005 Debt-equity ratio = 1.60 Return on…
Q: According to a Jan. 19, 2015 article in the New York Times, a typical payday loan for $500 is paid…
A: The concept of TVM states that money inherently has interest-earning capacity because of which an…
Step by step
Solved in 2 steps
- Wu would like to win the bid on the Worthington job because of the potential for lucrative future business. Assume that Wu cancels the contract in requirement 1 with the lowest opportunity cost, and assume that the three currently available cars would go unrented if the company does not win the bid. What is the lowest amount he should bid on the Worthington job?Jessica's utility of income is represented by: U(I) = V(241) where I represents annual income. She is offered a job that has a 0.3 chance of earning $21970 and a 0.7 chance of earning $62150 a year. How much would Jessica be willing to pay to insure against the risky income? Answer: $ (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS.)Required: (1) Determine whether Grealish will accept the contract. Show calculations of his utility to two decimal places. Also, indicate whether Grealish will work hard or shirk. (include all steps of calculation) (2) Calculate Jack's utility. Jack is risk-neutral and his utility for money is equal to the cash received. (include all steps of calculation) (3)Jack's business has publicly traded shares. Explain whether you would recommend a compensation contract based on both net income and share price performance under the following conditions; a- Net income is calculated based on historical cost. b- Net income is calculated based on fair value accounting.
- Assume that A values his house at $90,000. B is willing to pay $110,000 for A’s house in order torelocate closer to work. After signing a contract, B’s employer announces that the company will moveto another city. In view of this fact, the value of the house to B is reduced to $75,000. From anefficiency viewpoint, who should own the house, A or B?How will the parties achieve efficiency in allocating the house if the court enforces the contract?Greg Jones lives in Augusta, Georgia, and has the opportunity to rent his condominium, during the next Masters golf tournament. He has two offers-one to rent for 10 days at $500 per day and the other to rent for 16 days at $400 per day. Rental expenses will be negligible. What is your advice to Greg?Would Qualifying an Indorsement Be Ethical? Suppose you have taken a promissory note for $3,500 payable in 12 months with interest at 10 percent as payment for some carpentry work you did for a friend. You have some reason to believe the maker of the note is in financial difficulty and may not be able to pay the note when it is due. You discuss with an elderly neighbor the possibility of her buying the note from you as an investment, and she agrees to buy it from you for $3,000. Would it be ethical for you to indorse the note with a qualified indorsement ("without recourse")?
- Bill is cleaning his basement and finds an old vase. Believing the vase is worthless he sells it for $50.00. Later he discovers that the vase was really worth $25,000. Bill will be able to: A) recover $25,000. B) not recover anything because mistakes in judgement as to value do not permit you to avoid a contract. C) rescind the contract D) all of the aboveT wins a door prize as the one-thousandth customer walking through the door of his favoritecoffee shop. He is given a choice of $1,000 in cash or a cappuccino machine(which cost the shop $1,000, but has a retail value of $1,500). T chooses the machine.a. T has realized at least $1,000 of income.b. T will recognize income only if and when he sells the machine.c. Both (a) and (b) are correct.d. None of the above. T bought an antique desk and chair from her employer for $50 in Year 1 when the firmbought all new office furniture. The desk and chair had a fair market value of $500.The property increases in value to $700 in Year 2, and T sells it for $900 in Year 3.a. T has realized income of $450 in Year 1 only if the difference between thevalue of the items and their price was intended as compensation.b. T will realize income of $450 in Year 1 regardless of her employer’s motive.c. T will realize income in Year 2 because the property has increased in value.d. None of the aboveLorenzo, the owner of a local poster shop, comes to you for help. While his shop has been breaking even for the past two years, it has not been able to generate a profit. For him to keep the shop open, he needs to earn at least $12,000 in operating income next year. You agree to help Lorenzo and ask him for some current information about his products' selling price and costs. You tell him you will work through some possible scenarios that might involve changing his sales price to generate the number of units sold needed to reach his target profit. Lorenzo shares the following information with you as you ponder different scenarios to help your client. Selling price $7.50 Cost for paper, per unit $0.70 Cost for printing, per unit $1.10 Cost for film, per unit $0.60 Staff salaries $48,000.00 Other operating costs $12,120.00 Using Lorenzo's data and proper Excel formulas, first, plan to get an understanding of Lorenzo's financial situation based on breakeven. Then look at…
- John Covington, a college student, wants to start a small-scale painting business during his off-school hours. To economize the start-up business, he decides to purchase some used painting equipment. He has two mutually exclusive options: (B1) Do most of the painting by himself by limiting his business to only residential painting jobs or (B2) purchase more painting equipment and hire some helpers to do both residential and commercial painting jobs. He expects option B2 will have a higherequipment cost but provide higher revenues as well. In either case, he expects to fold the business in three years when he graduates from college.The cash flows for the two mutually exclusive alternatives are given as follows: With the knowledge that both alternatives are revenue projects, which project would John select al MARR = 10%? (Nole that both projects are profitable at 10%.)(Consider This) Mason, a professional house painter, needs his tax return prepared; in which situation below would he choose to hire Madison, the CPA, rather than sacrifice time (and income) from house painting? The CPA can prepare the tax return in 2 hours and would charge $50 per hour, Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. The CPA can prepare the tax return in 10 hours and would charge $50 per hour, Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. The CPA can prepare the tax return in 2 hours and charge $100 per hour; Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. Mason would not hire Madison in any of these situations described.Pick only one option: The owner of Tommy's Technicians has found that his shop is losing money and he is in jeopardy of going out of business. Sales have remained constant for quite some time and now he is looking at ways to cut expenses to stay in business. Which of the following expenses is his best choice to try to immediately reduce and save him meaningful dollars so he can remain in business? (Hint: First consider which ones he has ultimate control over?) Rent expense Utilities expense Payroll expense Shop insurance expense Advertising expense