True. Face-to-face communication is the richest form of communication because the receiver observes multiple cues in the message.
Face-to-face communication is indeed the richest form of communication because it allows for both parties to observe multiple cues in the message. These cues can include facial expressions, body language, vocal tones, and other nonverbal forms of communication.
This type of communication allows for a more complete understanding of the message being sent, as the receiver has multiple sources of information from which to interpret the message. This can help ensure that the message is properly understood and that any potential misunderstandings are quickly identified.
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"Group decision making is better". Do you agree or disagree with the statement? Give 3 reasons why do you say so?
Answer:
I agree because it make the group bring out more ideals
sometimes group decision make some people to voice out their problems
group decision help organization and firms to operate in good aims
A military organization is very structured. Ranks are very clear, defining who can give and who must take orders. This is an example of
Answer:
vertical management
Explanation:
The flow of information that takes flows from the top management to the subordinates is said to be vertical management. The information is passed from the managers to the employees at the lower levels. Primarily the feedback are communicated in this form of management. The control of the higher authority is high and strong.
The given excerpt is an example of vertical management that flows in the military organization.
AMD offers 5 percent coupon bonds with semiannual payments and a yield to maturity of 8 percent. The bonds mature in 20 years. What is the market price per bond if the face value is $1,000?
The above calculations, the market price of the bond is $996.92, calculated as follows are Market Price = $1,000 x (1 - $3.08/$118.17) = $996.92.
What is Market Price?Market price is the current price at which a particular good or service can be bought or sold. It is determined by the forces of supply and demand in the market, and it is constantly changing. Market price reflects the overall sentiment of buyers and sellers in the market, and it can be affected by a variety of factors such as economic conditions, competition, and even emotions. Market price is used in many different industries, including commodities, stocks, and currencies, to determine the value of goods and services.
The market price of the bond is calculated using the following formula:
Market Price = Face Value x (1 - Present Value of Coupons/Present Value of Par Value)
Using the given information, we can calculate the present value of the coupon payments and the present value of the par value:
Present Value of Coupons = 5% x ($1,000/2) x (1/(1.04)^40) = $3.08
Present Value of Par Value = $1,000/(1.04)^40 = $118.17
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is your instructor a manager ?discuss in terms of the four functions of management.
Since he is in charge of providing the employees' training, the course instructor is a manager.
Briefing:-The objectives are carried out and the resources are managed by the course instructor. When it comes to planning, the course teacher establishes a goal and makes a strategy to reach it. He also assigns the program, the cost, and the time.
What do managers do in terms of roles, responsibilities, and abilities?The five fundamental management tasks of staffing, leading, managing, organizing, and planning are the skills that good managers learn to master. Planning entails outlining precisely how to carry out a specific objective. Say, for instance, that the corporation wants to increase sales.
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X buys goods on credit from Y. what is the name for the document used by X to settle the liability to Y?
A. Cheque
B. Credit note
C. Receipt
D. Statement of account
Correct answers will be mark as BRAINLIEST
Credit note
X buys goods from Yhere X is buying means debitingY is getting means crediting So Y should take credit note and X should take receiptOption B
Answer:
b) Credit note
Explanation:
Credit note is the name for the document used by X to settle the liability to Y. Hence, option (b) is the correct answer.
Which type of bond is sold at face value?
SEP
CD
Series I Savings Bond
Series EE Savings Bonds
The type of bond sold at face value are Series I savings bond and Series EE savings Bonds.
An IOU-like debt security is called a bond. Borrowers issue bonds to attract capital from investors ready to extend a loan to them for a specific period of time. When you purchase a bond, you are making a loan to the issuer, a corporation, a government, or a municipality.
Governments and businesses both issue bonds to raise money. By purchasing a bond, you are making a loan to the issuer, who agrees to repay the face value of the loan on a specific date and you pay along the way, you will receive periodic interest payments—typically twice a year.
The correct answer are both "3rd and 4th" option.
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For each transaction below, calculate the amount of revenue to be recorded in the current period using accrual-basis accounting:
a. Performed $29,000 of services during the month and received full cash payment from customers at the time of service.
b. Performed $10,000 of services during the month and billed customers. Customers are expected to pay next month.
c. Received $11,000 cash from customers for services to be provided next month.
The accrual accounting for the current period in all of these would be
Amount of revenue to be recorded is $29000Amount of revenue to be recorded is $ 10,000.Amount of revenue to be recognized is $ 0.What is accrual accounting?This is the term that is used to refer to the method of accounting that is concerned with the recording of revenue first before there would be a payment for the goods that were sold or for the services that were rendered.
A) The amount for the services that were performed is said to be $29000 in the month and the full payment for the services was received. Therefore all of the sum is what has to be recognized as the amount in that period.
B) The services performed here is $10000, but the payment for the job would have to be recorded in the next year. Hence the entry would be the 10000 although it would be gotten next year.
C) The services here has not been rendered it would be done in the next year. The company is in a liability at the point because the money is not for the month, it is to be earned in the next month, hence the accrual accounting is 0
Hence in summary we would have the accrual accounting as:
Amount of revenue to be recorded is $29000Amount of revenue to be recorded is $ 10,000.Amount of revenue to be recognized is $ 0.Read more on accrual accounting here:
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Customers might sometimes describe contradictory needs
Customers might sometimes describe contradictory needs which means Option C. Customers sometimes describe needs that oppose each other.
When customers require two different things that cannot be addressed by the same product, it is referred to as a conflicting requirement. There are many reasons why customers may have conflicting needs. Some customers might have a requirement for a product to be both inexpensive and of high quality, for example. Others may desire a product that is both small and powerful. Customers may sometimes find it difficult to articulate what they want, which might result in vague descriptions.
This might make it more difficult for the supplier to provide a solution that satisfies the customer’s needs. Customer service staff must be trained to engage with customers and listen actively to their concerns. They must also be able to identify when there is a contradictory requirement and provide solutions that address the customer's needs in a way that satisfies the customer's expectations while also meeting the supplier's operational needs. Understanding customer needs is an important part of the customer service profession, and it may take some time and effort to develop the necessary skills.
Some customers are very detailed in describing their needs, which can be beneficial for suppliers because it allows them to provide an appropriate solution for the customer. Overall, being aware of conflicting customer requirements is essential in the customer service sector to provide an effective solution. Therefore, the correct option is C.
The question was incomplete, Find the full content below:
Customers might sometimes describe contradictory needs.
A. A customer's needs can sometimes be confusing.
B. Customers might sometimes give vague descriptions.
C. Customers sometimes describe needs that oppose each other.
D. Some customers are extremely thorough in describing their needs.
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Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mattel builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mattel's sales are on credit. As a result, Mattel often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mattel borrowed $6 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 8.0 percent payable at maturity. The accounting period ends December 31.
Required:
1, 2 & 3. Prepare the required journal entries to record the note on November 1, 2018, interest on the maturity date, April 30, 2019, assuming that interest has not been recorded since December 31, 2018
Answer:
1. Nov 1, 2018
Cash 6,000,000
Notes Payable (short-term) 6,000,000
2. Dec 31, 2018
Interest Expense 80,000
Interest Payable 80,000
3. Apr 30, 2019
Notes payable (short-term) 6,000,000
Interest Payable 80,000
Interest Expense 160,000
Cash 6,240,000
Explanation:
1. $6,000,000 cash Mattel acquired from Metropolitan Bank for signing a short-term note (matures in six months).
2. 6,000,000 x .08 x 2/12 = 80,000
2 months (Nov and Dec) time that Mattel accrued $80,000 worth of interest.
3. The note was signed for 6,000,000.
Interest payable is the amount that was accrued from the last year, but hasn't been paid yet for $80,000.
Interest expense is the interest amount that is from the current year and is being repaid for $160,000.
Cash is the total (the principal payment and the interest) that Mattel is paying the bank back for borrowing for $6,240,000.
The journal entries of the given case are given in the image below.
What is journal entry?Journal entry is the systematic record of the accounting transactions that is commenced under the usual business in cash. It is the financial transactions.
It is also referred to as the primary accounting procedure, means the financial statement is prepared on the basis of journal entry.
Computation of the amount of journal entry:
On November 2018, the amount of $6,000,000 cash Mattel grown from Metropolitan Bank for signing a short-term note that matures in 6 months.
On December 31, 2018, Mattel accrued $80,000 worth of interest, means :
\(= \$6,000,000 \times .08 \times \dfrac{2}{12} \\= \$80,000\)
Then the amount of Cash is the total, means the principal payment and the interest is that Mattel is paying the bank back for borrowing for $6,240,000 ( \(\$6,000,000 + \$80,000 + \$160,000\)).
Therefore, the journal entries of the above transactions are given in the image below.
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Along with the amount of financial aid, which is the most important to pay attention to when trying to determine financial aid costs in relation to your personal budget? The actual cost of attendance The terms and conditions of subsidized loans The amount of money and hours you can earn through work-study The cost of tuition
What should be paid attention to as regards financial aid costs is the amount of money and hours you can earn through work-study.
What is Financial aid?Financial aid serves as a monetary help that can be received by a student from an organization or government.
This aid can help students for their college or career school, which can be inform of a Grants or work-study for academic success.
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1.4.2 Test (CST): Fundamental Principles of Economics
Question 18 of 20
Which statement best summarizes the relationship between investments and
productivity?
OA. Companies must choose between high levels of productivity and
large investments.
OB. Companies with high levels of productivity are the most likely to
need investment.
OC. Companies use investments to avoid the need to increase overall
productivity.
OD. Companies use investments to pay for services that improve their
productivity.
Statement first-class summarizes the connection between investments and productiveness: corporations use investments to pay for offerings that improve their productivity.
Investments definition is an asset acquired or invested in to assemble wealth and keep cash from the difficult-earned income or appreciation. funding which means essentially to achieve an extra delivery of profits or advantage and make the most of the investment over a particular time period.
Investments are the determination of an asset to obtain an increase in price over a time period. investment requires a sacrifice of a few gift properties, along with time, cash, or a try. In finance, the motive of making funding is to generate a move back from the invested asset.
In a funding outlook, investment is the acquisition of products that are not fed nowadays but are used inside the destiny to generate wealth. In finance, an investment is an economic asset bought with the idea that the asset will provide earnings similarly or will later be bought at a better cost rate for earnings.
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THE FOLLOWING INFO IS AVAILABLE FOR BERLIN CORPORATION FOR THE YEAR ENDING 12/31/20. OTHER REVENUE/GAINS= 12700, OTHER EXPENSES/LOSSES=13300, COST OF GOODS SOLD= 156000SALES 592000, OPERATING EXPENSES= 186000, SALES RETURNS= 40000. PREPARE A STEP-BY-STEP INCOME STATEMENT. TAX RATE IS 30 PERCENT
Based on the information available for Berlin Corporation, the step - by - step income statement would be:
Berlin Corporation.
Income Statement
Sales Revenue $592,000
Less: Sales Return $40, 000
Net Sales $552, 000
Less : Cost of Goods sold ($156, 000)
Gross Profit $396, 000
Less Operating expenses: (186, 000)
Income from operations $210, 000
Other Revenue /Gains 12, 700
Other Expenses /Losses (13, 300) ( 600 )
Income before income taxes $209 ,400
Less: Income tax expense ($62, 820)
Net Income / (Loss) $146,580
What goes into an income statement?An income statement is the financial document that is used to find the amount of net income or loss that a company made in a certain period of time which is often a year or a quarter.
The main components of a net income statement are the revenue, the cost of goods sold, the gross profit, the operating expenses, and the net income.
To find the net income, subtract cost of goods sold and the operating expenses from the sales revenue.
In this case, you need to find the taxes to Berlin Corporation as well:
= Income before taxes x Income tax rate
= 209, 400 x 30%
= $62, 820
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High Step Shoes had annual revenues of $185,000, expenses of $103,700, and dividends of $18,000 during the current year. The retained earnings account before closing had a balance of $297,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Multiple Choice Debit Retained Earnings $297,000; credit Income Summary $297,000 Debit Retained Earnings $63,300; credit Income Summary $63,300 Debit Income Summary $63,300; credit Retained Earnings $63,300 Debit Income Summary $81,300, credit Retained Earnings $81,300 Debit Retained Earnings $81,300; credit Income Summary $81,300
The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Debit Income Summary $81,300, credit Retained earnings $81,300.
Income Summary accountFirst step is to find the net income
Annual revenues $ 185,000
Less: Expenses ($ 103,700 )
Net Income $ 81,300
Second step is to prepare the journal entry
Debit Income Summary $ 81,300
Credit Retained earnings $ 81,300
(To close the income summary account to Retained earnings)
Inconclusion the entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Debit Income Summary $81,300, credit Retained earnings $81,300.
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To download your presentation as pictures, choose this option. Download a Copy Download as Images Download as ODP Download as PDF Question 4(Multiple Choice Worth 5 points) (04.07 LC) What is the name of the spelling checker in PowerPoint Online that can be used to check the spelling in the entire presentation? Check Slide Proof Check Review Slide Slide Check Question 5(Multiple Choice Worth 5 points) (04.07 MC) Ava is at her first job interview, and the interviewer asks her a difficult question she hasn't prepared to answer. What should Ava do? Just start talking. She'll eventually get to an answer. Ask the interviewer for an easier question. Take a deep breath and gather her thoughts. Tell an unrelated story that makes her look smart. You must check the box below prior to submitting your exam! Check this box to indicate you are ready to submit your exam FDK71.10 Previous QuestionNext Question
Answer: Its choose a pdf
Explanation:
when you download a pic it goes to a pdf
Answer:
download a pdf
Explanation:
Prepare the journal entries to record the following transactions of Wildhorse Company's books under a perpetual inventory system. Clarify which are debit and which are credit.
(a) On March 2nd, Windsor Company sold $854,200 of merchandise to Wildhorse Company on account, terms 2/10, n/30. The cost of merchandise sold was $517800.
(b) On March 6th, Wildhorse Company returned $109800 of the merchandise purchased on March 2nd. The cost of the merchandise returned was $66800.
(c) On March 12th, Windsor Company received the balance due from Wildhorse Company.
a) Credit Inventory for $517,800
b) Debit Inventory for $66,800
c) Credit Accounts Receivable (or Trade Receivables) for the same amount
(a) The journal entry to record the sale of merchandise from Windsor Company to Wildhorse Company on March 2nd would be:
Debit Accounts Receivable (or Trade Receivables) for $854,200
Credit Sales Revenue for $854,200
Debit Cost of Goods Sold for $517,800
Credit Inventory for $517,800
The debit to Accounts Receivable represents the amount owed by Wildhorse Company for the merchandise purchased on account. The credit to Sales Revenue recognizes the revenue generated from the sale. The debit to Cost of Goods Sold recognizes the cost of the merchandise sold, and the credit to Inventory reduces the inventory balance as the goods are no longer in stock.
(b) The journal entry to record the return of merchandise by Wildhorse Company on March 6th would be:
Debit Sales Returns and Allowances for $109,800
Credit Accounts Receivable (or Trade Receivables) for $109,800
Debit Inventory for $66,800
Credit Cost of Goods Sold for $66,800
The debit to Sales Returns and Allowances reduces the revenue from the original sale. The credit to Accounts Receivable reduces the amount owed by Wildhorse Company for the returned merchandise. The debit to Inventory increases the inventory balance as the goods are returned to stock, and the credit to Cost of Goods Sold reduces the cost of the merchandise originally sold.
(c) The journal entry to record the payment received by Windsor Company on March 12th would be:
Debit Cash (or Bank) for the amount received from Wildhorse Company
Credit Accounts Receivable (or Trade Receivables) for the same amount
The debit to Cash represents the inflow of funds from the customer's payment. The credit to Accounts Receivable reduces the amount owed by Wildhorse Company, reflecting the settlement of the outstanding balance.
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What might you do if you are unable to get a credit card? (Select the best answer.)
Pay less attention to your bank balance
Apply for a department store card
Stop accepting government assistance
Make as many cash purchases as possible
Answer:
Apply for a department store card
Explanation:
Departmental retail stores and a card issuer co-issued issue departmental store cards. The store card may work in the issuing department store only or other related retailers as well. They work like regular credit cards only that they are acceptable in limited places and may have a lower credit limit.
Departmental store cards may be issued to persons with a lower credit score. This makes them ideal for a person who need to build on or improve his credit score. They also provide great savings on huge one-time purchases.
Answer:
correct answer is B
Explanation:
The current stock price of Alcoco is $40, and the stock does not pay dividends. The instantaneous risk-free rate of return is 7%. The instantaneous standard deviation of Alcoco's stock is 25%. You want to purchase a put option on this stock with an exercise price of $45 and an expiration date 30 days from now. According to the Black-Scholes OPM, you should hold __________ shares of stock per 100 put options to hedge your risk. Assume 365 days in a year
a) 59
b) 99
c) 55
d) 94
Which of the is not one of the risks of starting a new business
Answer: There are five kinds of risk that entrepreneurs take as they begin starting their business. Those risks are: founder risk, product risk, market risk, competition risk, and sales execution risk.
Explanation:
ECONOMICS
One way a partnership differs from a sole proprietorship is that it:
O A. places all risk and liability on one person.
B. has owners with many different skill sets.
C. protects all owners from bankruptcy.
D. has less potential for conflict.
Answer: B. has owners with many different skill sets
One way a partnership differs from a sole proprietorship is that it has owners with many different skill sets. Hence, the correct option is B.
What is a partnership?A partnership is a type of business structure where two or more people share ownership of a business. In a partnership, the partners share profits and losses, as well as the risks and liabilities of the business. Unlike a sole proprietorship where a single person has full control and is fully responsible for the business, in a partnership, the responsibility and risk are shared among the partners.
Since, partnership can have two or more partners, it is likely to have owners with many different skill sets. This is an advantage that a partnership has over a sole proprietorship.
Therefore, one way a partnership differs from a sole proprietorship is that it has owners with many different skill sets. Hence, the correct option is B.
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Schmaltz Herring revenue and costs are forecast to be changed this year from last. But the IRS has announced an increase in the corporate profits tax rate. If Schmaltz pays the same amount of dividends, its payout ratio will:
Answer:
If Schmaltz pays the same amount of dividends, its payout ratio will:
change.
Explanation:
Since the revenue and costs will change in the current year, with some increase in the corporate income tax rate by the IRS, the earnings per share will also change. If the amount of dividends paid out does not change, the payout ratio will still change as a result of the change in the earnings per share.
Schmaltz's payout ratio shows the relationship between the dividends paid to shareholders and the company's earnings. The simplest way to calculate the payout ratio is to divide the dividend per share by the earnings per share, then multiplied by 100.
2.1 Choose/identify FIVE businesses and conduct research on the CSI projects and
ways in which businesses can contribute time and effort in improving the well-being
of employees.
Use the following resources for your findings:
Businesses in your community
Internet, magazines, articles, journals, and interviews.
Attach evidence of your research findings in a form of pictures, newspaper cuttings etc.
2.1.1 Outline the CSI projects that businesses use to support/uplift the local
community.
2.1.2
Explain ways in which EACH business can contribute time and effort to
improving the well-being of employees.
The FIVE businesses that CSI projects have be research on are:
Education business sectorHealth business sector Food security and agriculture business sectors.Safety businessSkill development businessThey are:
Business improves Schools in my communities through the aid of aiding them with better educational facilities. Business also provides some Job opportunities for the unemployed individuals in the communities.Businesses do contribute to the community via employee volunteering (EV).The ways that business can contribute a lot of time and effort to improving the well-being of employees are:Education business sector - Provide scholarship Health business sector - provide free eye care services and medical aids.Food security and agriculture business sectors - free fertilizer distribution to local communitiesSafety business - creation of billboards with safety tips as well as safety education Skill development business - organizing of skill acquisition program for local communities.Learn more about CSI projects from
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c.social justice. 20:01 >>how social justice could help you fight social challenges
In order to combat societal issues, social justice enables civil society and activists to create equitable opportunities for everyone. Social justice may put an end to most ills, including voting suppression, homelessness, gender inequity, and violations of human rights.
In any society where activists fight to guarantee that everyone has an equal chance at success, social justice activities have long been a defining characteristic. This bolsters the idea that the persistent problems facing the globe may be resolved in a humanitarian manner.
Being a social activist is simple if you register as a volunteer with a local nonprofit, use social media to voice your opinion, create citizen journalism, take action to stop unfair practices, and accept that reality may go against what you believe.
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How does the OKR framework work?
Answer:
The OKR (Objectives and Key Results) framework is a goal-setting system that helps organizations define and track progress toward their objectives. Here's how it works:
Define Objectives: Objectives are the overarching goals that you want to achieve. They should be specific, measurable, achievable, relevant, and time-bound (SMART). Objectives should be set at the organizational level and should be aligned with the overall mission and vision of the organization.
Define Key Results: Key Results are the specific, measurable outcomes that will indicate progress toward your objectives. They should be quantifiable and time-bound, and should be tied directly to your objectives. Key Results are the metrics that you will use to track progress and determine success.
Set Priorities: Once you have identified your objectives and key results, you need to prioritize them. Determine which objectives and key results are most important, and focus your efforts on those first.
Assign Ownership: Assign ownership of each objective and key result to a specific individual or team. This ensures that there is accountability for progress and that everyone knows who is responsible for what.
Track Progress: Track progress toward your objectives and key results on a regular basis. This helps you stay on track and adjust your strategy as needed. Use metrics to measure progress and determine success.
Review and Reflect: Review progress regularly and reflect on what is working and what isn't. Use this information to adjust your strategy and improve performance going forward.
The OKR framework is a flexible system that can be used at any level of an organization, from the individual to the team to the company as a whole. It is designed to be agile and adaptable, allowing organizations to adjust their objectives and key results as needed in response to changing circumstances.
Explanation:
Answer:The Objectives and Key Results (OKR) framework is a goal-setting process meant to assist people, teams, and organisations in focusing their efforts on obtaining particular goals.
The OKR framework works as follows:
Objectives are definite, measurable, and time-bound goals that an individual or team wishes to accomplish. These objectives should be ambitious and demanding, but still attainable within a reasonable time span. Objectives should be linked to the organisation's broader mission and vision, and they should be explicit enough to track and measure progress.
Key Results are the exact measurements that will be used to track progress towards meeting the Objectives. They should be quantifiable and measurable, and they should clearly indicate whether the Objective has been met. https://10xokr.com/okr/what-is-the-okra-framework-and-how-is-it-useful/ for more knowledge visit this site.
Explanation:
2020 quantity
cost
PRICE
2021 quantity
cost
PRICE
Brocoli Cauliflowe Carrots
100
200
50
75
1.5
80
120
1.5
75
2
75
225
3
300
500
50
0.1
500
100
0.2
100
325
475
CPI base year 2020
100
146.154
46%
Inflation rate
The inflation rate can be calculated using the Consumer Price Index (CPI) formula, which measures the change in the price of goods and services over time. In this case, the base year is 2020, and we want to calculate the inflation rate for 2021.
First, we need to calculate the CPI for 2020 and 2021:
CPI 2020 = (1001.5) + (2002) + (503) = 500
CPI 2021 = (751.5) + (1201.5) + (2253) = 975
Next, we can use the formula to calculate the inflation rate:
Inflation rate = ((CPI 2021 - CPI 2020) / CPI 2020) x 100%
Inflation rate = ((975 - 500) / 500) x 100%
Inflation rate = 95%
Therefore, the inflation rate between 2020 and 2021 is 95%.
An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate annually. We know that the cash flow expected in 4 years from today is expected to be $7500 and the cash flow expected in 5 years from today is expected to be $9000. What is the cash flow expected to be in 2 years from today?
Answer:
$5,208
Explanation:
First we need to calculate the growth rate using following formula
Growth Rate = (Final Value - Initial Value) / Initial Value
Placing Values in the formula = ($9,000 - $7,500) / $7,500 = $1,500 / $7,500 = 0.2 = 20%
As the cash flow in growing on constant rate of 20%. We need to calculate the prior years cash flow using following formula.
Cash Flow after growth = Current Cash flow ( 1 + growth rate)
Year 3 cash flow
$7,500 = Cash Flow of Year 3 ( 1 + 20% )
Cash Flow of Year 3 = $7,500 / 120%
Cash Flow of Year 3 = $6,250
Year 2 cash flow
$6,250 = Cash Flow of Year 2 ( 1 + 20% )
Cash Flow of Year 3 = $6,250 / 120%
Cash Flow of Year 3 = $5,208
Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 3% stock, $20 par and 410,000 shares of $25 par common.
During its first four years of operations, the following amounts were distributed as dividends: first year, $33,000; second year, $74,000; third year, $80,000; fourth year, $110,000.
Determine the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0.00".
The dividends per share on each class of stock for each of the four years is stated below:
What is a preferred dividend?A preferred dividend is a payment made on a company's preferred shares that is allotted to them. Preferred dividend claims are paid before claims for dividends paid on common shares in the event that a corporation is unable to pay all dividends.
Given:
Preferred stock dividend = Number of share ×value of share ×dividend %
= 60000 × 20 × 3% ==> 36000
1. Out of first year dividend of 33000, full 33000 will be paid to preferred stock.
Preferred stock dividend per share = 33000 / 60000 ==> 0.55
Equity stock dividend = 0
2. Out of second year dividend of 74000, 36000 & 4000 year one dividend will be paid to preferred stock. And balance will be paid to Equity stock(74000-36000-4000 = 34000)
Preferred stock dividend per share = 40000 / 60000 ==> 0.67
Equity stock dividend = 33000 / 400000 ==> 0.082
3. Out of third year dividend of 80000, 36000 will be paid to preferred stock. And balance will be paid to Equity stock(100000 - 36000 = 64000)
Preferred stock dividend per share = 36000 / 60000 ==> 0.60
Equity stock dividend = 64000 / 400000 ==> 0.16
4. Out of fourth year dividend of 110000, 36000 will be paid to preferred stock. And balance will be paid to Equity stock(120000 - 36000 = 84000)
Preferred stock dividend per share = 36000 / 60000 ==> 0.60
Equity stock dividend = 84000 / 400000 ==> 0.21
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You can earn 3% interest on a CD and 1.25% interest on a savings account.
How much more interest will the CD earn for one year if you make a deposit of
$1,650?
Financial Lit, please help!!
Answer:
The CD will earn $49.50 more interest than the savings account for one year if you make a deposit of $1,650.
What could be driving the tremendous growth in Salesforce.com’s stock price and revenue? and Why do you think investors put such a high premium on Salesforce.com’s stock?
Salesforce's fourth quarter of fiscal 2023, which concluded on January 31, saw a 14% year-over-year increase in revenue to $8.4 billion. Wall Street forecasts projected for $8 billion in revenue, thus this exceeded their projections.
Why investors put such a high premium on Salesforce.com’s stock?
Shares of Salesforce (CRM) are soaring after the software giant reported profits that above analyst expectations, provided a more optimistic outlook, and announced intentions to increase stock buybacks in response to pressure from activist investors. Salesforce's $8.4 billion in revenue increased by 14%, above the predicted 9.2% rise. The yearly revenue for Salesforce in 2023 was $31.352 billion, an increase of 18.35% over 2022.
Salesforce's yearly sales in 2022 increased by 24.66% from 2021 to $26.492 billion. A 24.3% rise from 2020, Salesforce's yearly revenue in 2021 was $21.252 billion. According to valuation criteria, Salesforce Inc. can be overpriced. It would not be a good choice for value investors, according to its Value Score of D. CRM's financial stability and expansion prospects show that company has the potential to perform worse than the market.
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Bald Eagle, Inc., had the following transactions for the year ended December 31, Year 7. Select from the options list provided the best classification for each activity. Each choice may be used once, more than once, or not at all.
Cash Flow Classification
1. Purchased equipment for $30,000
2. Sold available-for-sale securities for $7,000
3. Paid income taxes of $40,000
4. Issued 40,000 shares of common stock, $2.50 par
5. Paid $2,000 interest
6. Paid $10,000 cash dividends to shareholders
7. Received $1,500 interest
8. Sold land for $17,000
9. Paid $7,000 to vendors for inventory
The best classification of each transaction and activity of Bald Eagle, Inc. for the year ended December 31, Year 7 is as follows:
Cash Flow Classification
1. Equipment Purchase $30,000 Investing Activity
2. Sale of available-for-sale securities $7,000 Investing Activity
3. Payment of income taxes $40,000 Operating Activity
4. Issuance of 40,000 shares at $2.50 par Financing Activity
5. Payment of interest $2,000 Operating Activity
6. Dividend payment $10,000 Financing Activity
7. Received $1,500 interest Operating Activity
8. Sold land for $17,000 Investing Activity
9. Payment of $7,000 to vendors for inventory Operating Activity
What are cash flow activities?Cash flow activities that affect the Cash Flow Statement include:
Operating ActivityInvesting ActivityFinancing Activity.Options List:Operating Activity
Investing Activity
Financing Activity
Depends on nature and purpose
Not reported on Bald Eagle's Statement of Cash Flows
Thus, the correct classification of the cash flow activities has been done.
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Ringo Manufacturing is considering the purchase of a new machine for $45,000. The machine is expected to save the firm $4,100 (before tax) per year in operating costs over a 5 year period, and can be depreciated on a straight-line basis to a zero salvage value over its life. Alternatively, the firm can lease the machine for $3,400 per year for 5 years, with the first payment due in 1 year. The firm's tax rate is 20%, and its before tax cost of debt is 10%. The Net Present Value of purchasing the new machine is:
Answer:
The NPV is a negative which means leasing the machine is a better option. (THERE ARE 2 EXPLANATIONS) BUT BOTH ANSWERS ARE CORRECT!!!
Explanation:
Explanation ONE :
To find the NPV of purchasing the new machine, we need to calculate the cash flows associated with this option:
Year 0: Initial cash outflow of $45,000
Years 1-5: Annual cash inflows of $4,100
Total cash inflows: $4,100 x 5 = $20,500
To calculate the present value of these cash flows, we need to discount them by the firm's cost of capital. Since the problem does not provide a cost of equity, we will assume that the firm's cost of capital is equal to the before tax cost of debt, which is 10%. Using a financial calculator or spreadsheet, we can calculate the present value of the cash inflows as:
PV = $4,100 x (1 - 1/1.1^5) / 0.1 = $16,228.24
The NPV of purchasing the new machine is:
NPV = PV of cash inflows - initial cash outflow
NPV = $16,228.24 - $45,000
NPV = -$28,771.76
This negative NPV means that purchasing the new machine is not a good investment for Ringo Manufacturing. It would cost the firm more in present value terms than it would save in operating costs.
Now let's calculate the net present value of leasing the machine:
Year 0: Initial cash outflow of $0 (since the first payment is due in 1 year)
Years 1-5: Annual cash outflows of $3,400
Total cash outflows: $3,400 x 5 = $17,000
To calculate the present value of these cash outflows, we again use the firm's cost of capital of 10%. Using a financial calculator or spreadsheet, we can calculate the present value of the cash outflows as:
PV = $3,400 x (1 - 1/1.1^5) / 0.1 = $13,568.24
The NPV of leasing the machine is:
NPV = -initial cash outflow + PV of cash outflows
NPV = -$0 + $13,568.24
NPV = $13,568.24
This positive NPV means that leasing the machine is a better option for Ringo Manufacturing than purchasing it. The firm would save money in present value terms by leasing instead of buying.
Explanation TWO:
To calculate the Net Present Value (NPV) of purchasing the new machine, we need to calculate the present value of all cash inflows and cash outflows associated with the purchase.
First, let's calculate the present value of the savings the machine is expected to generate:
PV of savings = $4,100 / (1 + r) + $4,100 / (1 + r)^2 + $4,100 / (1 + r)^3 + $4,100 / (1 + r)^4 + $4,100 / (1 + r)^5
where r is the discount rate.
Assuming a discount rate of 10%, we can calculate the present value of savings as:
PV of savings = $4,100 / (1 + 0.1) + $4,100 / (1 + 0.1)^2 + $4,100 / (1 + 0.1)^3 + $4,100 / (1 + 0.1)^4 + $4,100 / (1 + 0.1)^5 = $16,145.58
Next, let's calculate the present value of the cost of purchasing the machine:
PV of cost = -$45,000 / (1 + r) + 0 / (1 + r)^2 + 0 / (1 + r)^3 + 0 / (1 + r)^4 + 0 / (1 + r)^5
Since the machine can be depreciated on a straight-line basis to a zero salvage value over its life, the salvage value is zero. Therefore, we have zero salvage value at the end of the fifth year.
The present value of the cost of purchasing the machine can be calculated as:
PV of cost = -$45,000 / (1 + 0.1) + 0 / (1 + 0.1)^2 + 0 / (1 + 0.1)^3 + 0 / (1 + 0.1)^4 + 0 / (1 + 0.1)^5 = -$30,689.66
Lastly, we need to calculate the tax shield associated with depreciation. Since the machine is being depreciated on a straight-line basis, the annual depreciation expense is:
Annual depreciation expense = $45,000 / 5 = $9,000
The tax shield associated with depreciation can be calculated as:
Tax shield = Annual depreciation expense x Tax rate = $9,000 x 0.20 = $1,800
To calculate the present value of the tax shield, we need to determine the tax shield in each year, and discount it to the present value using the same discount rate.
Year 1 tax shield = $1,800 / (1 + 0.1) = $1,636.36
Year 2 tax shield = $1,800 / (1 + 0.1)^2 = $1,487.07
Year 3 tax shield = $1,800 / (1 + 0.1)^3 = $1,351.88
Year 4 tax shield = $1,800 / (1 + 0.1)^4 = $1,229.89
Year 5 tax shield = $1,800 / (1 + 0.1)^5 = $1,120.81
Total present value of tax shield = $1,636.36 + $1,487.07 + $1,351.88 + $1,229.89 + $1,120.81 = $7,826.01
Therefore, the net present value (NPV) of purchasing the new machine can be calculated as:
NPV = PV of savings + PV of tax shield + PV of cost = $16,145.58 + $7,826.01 - $30,689.66 = -$6,718.07
Since the NPV is negative, purchasing the new machine would not be a profitable investment. The company should consider leasing the machine instead.