The statement is partly true. While the Russell 3000 Value Index does use factors such as P/E, EV/EBITDA, and P/Book to define the composition of the index, it also takes into account other financial metrics.
The Russell 3000 Value Index is a subset of the Russell 3000 Index and includes companies with lower price-to-book ratios, lower expected growth rates, and lower expected price-to-earnings ratios than the broader index. The value index is intended to represent companies that are considered undervalued by the market, and as a result, may have higher dividend yields and a more defensive profile. The Russell 3000 Value Index is reconstituted annually and adjusted quarterly to ensure that it reflects the current value investing landscape. The index is widely used as a benchmark for value-oriented investment strategies.
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A former Wells Fargo employee realized that what she was asked to do by her managers was not ethical and after deliberation she decided to "push back and refused to meet the sales goals because, she told her managers, there was no ethical way to do it." If instead, she had said, "I do not want to lose my job over this" and proceeded to engage in fraudulent activities, at which of the following stages (Rest's ethical decision-making model) would her moral decision-making have failed?
a) moral judgement
b) moral recognition
c) moral awareness
d) moral intent
Answer:
moral intent
Explanation:
1. What is the purpose of using credit?
2. List several sources of consumer credit.
3. What types of information are asked for on a typical credit
Application?
4. How are store credit accounts different from bank credit card
Accounts?
5. How are credit cards different from charge cards?
6. How is a single payment similar to an installment loan? How is it
Different?
7. Give two examples of collateral that might be used to secure a loan.
8. What is the responsibility of a cosigner of a loan?
9. How is a line of credit different from other types of loans?
10. List several benefits of using credit.
Answer: To earn CREDIT
Explanation:
If you lose your job in this country, you can claim unemployment and collect money to help you until you can find another job. This is because of economic
security
freedom
equity
growth
(I couldn’t find economics lol)
This is because of economic "Economic Security".
Economic security is characterized as a person's, family's, or alternately local area's capacity to meet their essential requirements in a feasible and honorable way. This shifts relying upon a person's actual prerequisites, the general climate, and social standards.
When a person is able and eager to work, but they are not employed, they are considered to be unemployed. A person's percentage of the labour force who is jobless is known as the unemployment rate. Consequently, knowing who is employed is necessary to calculate the unemployment rate.
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Which of the following prevents soil degradation?
1 Crop rotation maintains soil fertility because different crops use up different nutrients.
2 Removing an entire harvest and leaving the soil fallow (unused) for a period of time, thereby preventing wind erosion
3 Improved irrigation methods prevents desertification and salinization.
4 Planting trees and bushes reduces wind erosion.
Answer:
1 crop rotation maintains soil fertility because crops use up different nutrients
once a firm has established a low-cost position, it can act as a barrier to new competition. T/F
False. A firm's establishment of a low-cost position does not necessarily prevent new competition. Competitors can still enter the market and offer similar or lower prices, challenging the firm's advantage.
Determine whether having a low-cost position can provide certain advantages to a firm?While having a low-cost position can provide certain advantages to a firm, such as the ability to offer lower prices or higher profit margins, it does not automatically guarantee a barrier to new competition.
Competitors may still enter the market and offer similar or even lower prices, thereby challenging the firm's low-cost advantage. Additionally, other factors such as product differentiation, brand loyalty, and economies of scale can also play significant roles in determining a firm's competitiveness.
Moreover, new entrants might find innovative ways to reduce costs or differentiate their products, negating the advantage of an established low-cost position.
Thus, while a low-cost position can be beneficial and make it more challenging for new competitors to enter the market, it does not inherently act as an insurmountable barrier to competition.
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Question 1: According to Waide, what negative effect does participation in producing and promoting associative advertising have on the advertisers?
A. It leads them to neglect non-market means of satisfying non-market desires—which includes a range of virtues necessary for acquiring such goods.
B. By making money a priority, one’s conception of the good life becomes distorted
C. It desensitizes them to the well-being of others, including reduced compassion, concern, and sympathy
D. It influences them to spend money in a way that fails to satisfy desires fostered by advertising
The correct answer is D. According to Waide, participation in producing and promoting associative advertising influences advertisers to spend money in a way that fails to satisfy desires fostered by advertising.
Associative advertising refers to a marketing technique that associates a product or brand with specific positive emotions, experiences, or lifestyle attributes. Instead of directly promoting the product's features or benefits, associative advertising aims to create an emotional or psychological connection between the product and the consumer. This is often done by incorporating imagery, narratives, or themes that evoke certain emotions or desires.
Associative advertising seeks to tap into consumers' desires for social status, personal fulfillment, happiness, love, or other positive experiences. It relies on the belief that consumers will be more inclined to purchase a product if they associate it with the desired emotional or lifestyle outcomes.
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A machine was purchased on March 1, 2021 for RM220,000. The machine will be used for 5 years and is expected to have a salvage value of RM38,000 at the end of its useful life. Calculate the amount of depreciation and book value at the end of each year, and also until the machine is retired, using: a) Straight line depreciation b) Double declining balance depreciation
Under the double declining balance method, the annual depreciation amount is higher in the earlier years and decreases over time, resulting in a book value that decreases more rapidly.
a) Straight-line Depreciation: To calculate straight-line depreciation, we subtract the salvage value from the initial cost and divide it by the useful life in years. Each year, the same amount of depreciation is allocated.
Annual Depreciation = (Initial Cost - Salvage Value) / Useful Life
Annual Depreciation = (RM220,000 - RM38,000) / 5 = RM36,400
The book value at the end of each year is calculated by subtracting the accumulated depreciation from the initial cost:
Year 1: Book Value = Initial Cost - Year 1 Depreciation = RM220,000 - RM36,400 = RM183,600
Year 2: Book Value = Initial Cost - Year 1 Depreciation - Year 2 Depreciation = RM183,600 - RM36,400 = RM147,200
Year 3: Book Value = Initial Cost - Year 1 Depreciation - Year 2 Depreciation - Year 3 Depreciation = RM110,800
Year 4: Book Value = Initial Cost - Year 1 Depreciation - Year 2 Depreciation - Year 3 Depreciation - Year 4 Depreciation = RM74,400
Year 5: Book Value = Initial Cost - Year 1 Depreciation - Year 2 Depreciation - Year 3 Depreciation - Year 4 Depreciation - Year 5 Depreciation = RM38,000
b) Double Declining Balance Depreciation: Under the double declining balance method, the depreciation rate is twice the straight-line rate. The book value decreases faster in the earlier years and slows down over time.
Depreciation Rate = 2 * (1 / Useful Life)
Year 1: Depreciation = Depreciation Rate * Initial Cost = 2 * (1/5) * RM220,000 = RM88,000
Book Value = Initial Cost - Year 1 Depreciation = RM220,000 - RM88,000 = RM132,000
For subsequent years, the same depreciation rate is applied to the remaining book value from the previous year.
Year 2: Depreciation = Depreciation Rate * Book Value at the end of Year 1 = 2 * (1/5) * RM132,000 = RM52,800
Book Value = Book Value at the end of Year 1 - Year 2 Depreciation = RM132,000 - RM52,800 = RM79,200
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Maxine and her friend Alice share a love of listening to music from England. They spend
plenty of sleepovers listening to their favorite bands and are always sharing new songs or
artists with each other.
One day, Alice excitedly tells Maxine her dad bought her tickets to a huge music festival in
England where some of their favorite bands will play. Plus, she has a ticket for Maxine, and
Alice's dad said he'll cover half of Maxine's airfare. The other half is only $412. Maxine feels
like this is a once-in-a-lifetime opportunity. Should Maxine use her emergency fund to take this super rare opportunity? Explain your reasoning.
Based on the given information Maxine should not use her emergency fund to take this super rare opportunity as it is intended to use in an unforeseen situation.
What is an emergency fund?
An emergency fund is said to be savings that an individual intended do in order to meet challenges that are not predictable and unforeseen for them.
An emergency fund shouldn't be used for a planned vacation or other predictable expenses; rather, it should only be used in the event of an unexpected event. You don't have to deprive yourself of small comforts in life.
In the given case, the music concert is not an unforeseen event is a planned vacation so the emergency fund should not be utilized.
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true or false: if the surplus balance on the service account exceeds the deficit balance on the merchandise account, the goods and services balance will be in surplus. true false
If the surplus balance on the service account exceeds the deficit balance on the merchandise account, the goods and services balance will be in surplus ,the statement is False.
What is surplus balance?The balance of trade in goods and services includes the balance of trade in services and the balance of trade in items. It must be the case that the surplus in the services balance outweighs the deficit in the merchandise balance if the goods and services balance is in surplus and the merchandise trade balance is in deficit. The surplus in the merchandise balance must be greater than the deficit in the services balance if the goods and services balance is in surplus and the services balance is in deficit.
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Which of the following does NOT explain why many people are not living on a budget?
People do not balance their checkbook on a monthly basis.
People find spending money a hobby and form of entertainment.
Or government is not modeling good budgeting skills.
People are unable to earn enough money to meet their financial obligations.
Answer:
People do not balance their checkbook on a monthly basis.
Explanation:
I just took the test
there is a surplus of a new brand of cereal on the market. what will likely happen to the price of the cereal?
Answer:
The price of the cereal would fall.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
When there is a surplus of a new brand of cereal in the market. What will likely happen to the price of the cereal is that the its price would fall.
The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-5: $200 (initial balance)
Days 6-20: $350 ($150 purchase)
Days 21-30: $150 ($200 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Enter
The balance on a credit card, that charges a 20% APR interest rate, the Finance charge is given as
$4.3055
This is further explained below.
What is the APR interest rate?Generally, The interest rate that is applied to a loan, mortgage loan, credit card, etc. is referred to as an annual percentage rate of charge, which sometimes corresponds to a nominal APR and sometimes corresponds to an effective APR.
The annual percentage rate of charge is the interest rate for the entire year, as opposed to just a monthly fee or rate. It is a fee for financing that is presented in the form of an annual rate.
Interest rate APR = 12%
Average balance = ((200*5)+(350*15)+(150*10))/30
Average balance = $258.33
Average balance*APR/12
Finance charge =\(\frac{258.33*20 \%}{12 }\)
Finance charge = $4.3055
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What is the standard deduction for marry filing joint for tax year 2017?
Answer: $12700
Explanation:
Standard deduction refers to the portion of income that's not being subjected to tax which can be used in the reduction of the tax bill. It should be noted that the amount of one's standard deduction will be based on the age, filing status, age, as well as some other criteria.
For taxpayers who don’t itemize, it should be noted that the 2017 standard deduction depends on the filing status and this include:
Single = $6,350
Married Filing Jointly = $12,700
Married Filing Separately = $6,350
Head of Household = $9,350
Qualifying Widow(er) = $12,700
womble inc. has beginning inventory of $340 and an ending inventory of $640 for a given period in which it purchased $14,200 worth of materials. what is the dollar amount of materials used in this period?
For a specific time period in which it made material purchases totaling $14,200, womble Inc. had beginning inventory of $340 and ending inventory of $640. The total cost of the materials utilized during this time was $13,900.
What does accounting employ direct materials for?Direct materials are one type of raw material. Although not all raw materials are used in the same way, direct materials are those that you use directly in your end product. Even today, safety equipment worn by industry workers and cleaning agents used on machines are considered to be raw commodities required for production.
In accounting, the materials used to make a product are referred to as direct materials. These sources need to be closely related to the end result you're producing. Direct material costs are one of the expenses associated with producing a good.
The following formula must be used to determine the amount of direct material used:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= $340 + $14,200 - $640
= $13,900
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What is the goal of using a personal budget?
O A. To save for your future financial goals
B. To reduce your tax burden
C. To eliminate your
fixed
expenses
O D. To maximize the return on your investments
Answer:
to save for ur future financial goals
Which part of an insurance application will contain information regarding the cause of death of the applicant's deceased relative
Answer:
Medical Information
Explanation:
Medical Information of the application includes certain information on the insured's prospective medical background, his or her present health conditions, any kind of visits to the medical in the recent years, the medical status of the living relatives, and also causes of death of the deceased relatives.
The medical information are used by the insurance companies to underwrite the policies.
The following information is for the standard and actual costs for the Happy Corporation:
Enter favorable variances as negative numbers.
Standard Costs:
Budgeted units of production - 16,000 [80% (or normal) capacity]
Standard labor hours per unit - 4
Standard labor rate - $26 per hour
Standard material per unit - 8 lbs.
Standard material cost - $12 per pound
Standard variable overhead rate - $15 per labor hour
Budgeted fixed overhead - $640,000
Fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity.
Actual Cost:
Actual production - 16,500 units
Actual fixed overhead - $640,000
Actual variable overhead - $1,000,000
Actual labor - 65,000 hours, total labor costs $1,700,000
Actual material purchased and used - 130,000 lbs, total material cost $1,600,000
Actual variable overhead - $1,000,000
Determine the Quantity Variance
a. 24,000 unfavorable
b. 24,000 favorable
c. 12,000 unfavorable
d. 12,000 favorable
Answer:
a. 24,000 unfavorable
Explanation:
Quantity Variance = Standard Price ( Actual Quantity - Standard Quantity Allowed)
= $12 per pound (8 lbs.*16,500 lbs-8 lbs.*16,000)
= $ 12 (132,000 lbs-130,000 lbs) = $ 12 (2000)= 24,000 unfavorable
It is unfavorable because the actual quantity used is more than the standard quantity allowed.
Quantity variance is obtained by multiplying the standard price with the difference in the actual quantity used and the standard quantity allowed.
Select ALL the correct answers.
Which two of the following are factors of production?
a home mortgage loan
stock in a construction company
a newly built house
carpentry skills
planks of hardwood
Answer:
stock in a construction company
planks of hardwood
As part of their monthly check-in with their distributor, Sam's Greenhouse owes them a sales report, price list, and next month's order. These items are known collectively as what?
As the part of their monthly check-in with their distributor, Sam's Greenhouse owes them a sales report, price list, and next month's order; these items are known collectively as a sales records.
What is a sales records?Generally, a Sales Records refers to those information you have on your customers, including but not limited to their contact information, how often they purchase from you, what they purchase and how they pay their bills
A typical sales records are quite likely to prove your most valuable marketing information source. Items such as the files of customer purchases with addresses, amounts, dates, products, payment methods, returns and other information constitute a rich trove of marketing data.
Because of these explained fact, then, as the part of a firm monthly check-in with their distributor, Sam's Greenhouse owes them a sales report, price list, and next month's order; these items are known collectively as a sales records.
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Tiffany's Dilemma Tiffany graduated from college and needed to decide where she wanted to work. She had several options. Her aunt Martha owned and operated a small business that she started about twenty years ago. Martha, an individual owner of her business, informed Tiffany that she could work for her. On one hand, Tiffany thought it would be a great opportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retires. On the other hand, she also felt that she wanted something a little more challenging; a job where she could really use her education. Her other option would be to work for a company that a friend and her husband had started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However, Tiffany had some reservations about this choice because she was not sure she wanted to work for friends. Her last option was to work for a large retail company, headquartered in Maryland, which had s
Answer: that's a hard one lol let me try
Explanation:
one sec
Mr. Chan is a financial adviser with First National Bank Ltd. Tom had $500,000 to invest. Tom hired Mr. Chan to advise on some appropriate investments. Mr. Chan advised Tom to put $250,000 into Vic Properties Ltd (VPL) and $250,000 into Oil Explorers Ltd (OEL). Tom paid Mr. Chan $2,500 for his advice. Tom invested $250,000 in VPL immediately. However, he only invested in OEL after making some enquires from an oil expert.
If Mr Chan had made the proper enquires he would have found that:
Because of the downturn in the property market VPL is expecting to make a large loss. Y’s $250,000 investment is now worth only $100,000.
OEL is being sued for $100 million. It has since gone into liquidation (bankruptcy) and Y has lost its $250,000.
Due to Mr. Chan's inadequate research and advice, Tom suffered significant losses in his investments. Tom invested $250,000 in Vic Properties Ltd (VPL), which experienced a downturn in the property market and resulted in a loss. His investment in VPL is now worth only $100,000. Additionally, Tom invested $250,000 in Oil Explorers Ltd (OEL), which was sued for $100 million and subsequently went into liquidation, causing Tom to lose his entire investment of $250,000. Mr. Chan received a fee of $2,500 for his advice.
1. Tom had $500,000 to invest and sought the advice of Mr. Chan, a financial adviser from First National Bank Ltd.
2. Mr. Chan advised Tom to invest $250,000 each in Vic Properties Ltd (VPL) and Oil Explorers Ltd (OEL).
3. Tom paid Mr. Chan $2,500 for his advice.
4. Tom immediately invested $250,000 in VPL without conducting further research.
5. Unfortunately, VPL experienced a downturn in the property market, resulting in a significant loss. Tom's $250,000 investment in VPL is now worth only $100,000.
6. Tom did not immediately invest in OEL and instead made inquiries from an oil expert.
7. Tom discovered that OEL was being sued for $100 million, which led to the company going into liquidation (bankruptcy).
8. As a result, Tom lost his entire investment of $250,000 in OEL.
9. It is evident that Mr. Chan did not properly inquire about the investment opportunities and provided inadequate advice to Tom.
10. Consequently, Tom suffered substantial financial losses due to Mr. Chan's negligence and incomplete research.
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which of the following is not one of the risks that you, as an entrepreneur would take on?
They are taking a finatal risk
Entrepreneur is some one who runs and manages their own business and willing to take any risk that may lead his company to profit. In this process always provides value to the clients and customers.
The entrepreneurs take a risk of founder, product, market, competition, and sales execution risk. They don't take the risks of exposing their business plan to others.Learn more about the not one of the risks that you, as an.
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A workshop is a meeting in which individuals do physical labor.
False
True
TRUEEEEEEEEEEEEEEEEEEEEEEE
Answer:
Its trueeeeeeeeeeeeeeeeee
Consider simultaneous shifts in demand and supply. What is the net effect on equilibrium price if there is a simultaneous increase in demand and an increase in supply?.
Consider how both supply and demand could be shifting at once. The equilibrium price is unaffected if supply and demand are both increasing concurrently.
The price is at equilibrium when supply and demand are in balance. When a major index experiences a phase of consolidation or sideways momentum, it can be argued that the forces of supply and demand are comparatively equal and the market is in an equilibrium price. Researchers have shown that the equilibrium price is the region where prices frequently oscillate. If the price rises too much, market forces will push sellers to enter the market and create more. A price that is too low will result in higher bids from more buyers. These acts sustain the relative equilibrium of the equilibrium level over time. Market
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The present value of $3,500 discounted 1 year at 6%. Round to
the nearest dollar
The present value of $3,500 discounted for 1 year at a 6% rate is approximately $3,302.
To calculate the present value, we use the formula PV = FV / (1 + \(r)^n\), where PV is the present value, FV is the future value, r is the discount rate, and n is the number of periods.
The future value (FV) is $3,500, the discount rate (r) is 6%, and the time period (n) is 1 year. Plugging these values into the formula, we get PV = $3,500 / (1 + 0.06)^1 = $3,500 / 1.06 = $3,301.89. Rounding to the nearest dollar, the present value is approximately $3,302.
The present value represents the current worth of a future amount of money, taking into account the time value of money and the discount rate. In this example, it indicates that receiving $3,500 in one year is equivalent to having $3,302 in present value today, assuming a 6% discount rate. This concept is important in financial decision-making, such as evaluating investments or determining the value of future cash flows.
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Your firm is thinking of expanding. If you invest today, the expansion will generate $12 million in FCF at the end of the year, and will have a continuation value of either $145 million (if the economy improves) or $46 million (if the economy does not improve). If you wait until next year to invest, you will lose the opportunity to make $12 million in FCF but you will know the continuation value of the investment in the following year (that is, in a year from now you will know what the investment continuation value will be in the following year). Suppose the risk-free rate is 5%, and the risk-neutral probability that the economy improves is 44%. Assume the cost of expanding is the same this year or next year. a. If the cost of expanding is $80 million, should you do so today, or wait until next year to decide? b. At what cost of expanding would there be no difference between expanding now and waiting? To what profitability index does this correspond? a. If the cost of expanding is $80 million, should you do so today, or wait until next year to decide? The NPV of the expand-now option is 9 million. (Round to two decimal places.)
a) Calculation of the NPV of the expand-now option:Given,Initial cash flow generated by the expansion = $ 12 million.The continuation value of the investment if the economy improves = $ 145 millionThe continuation value of the investment if the economy does not improve = $ 46 millionCost of expanding = $ 80 millionRisk-free rate = 5%Risk-neutral probability of economy improvement = 44%To calculate whether to do the expansion today or wait until next year, we need to calculate the NPV for each case. If NPV is positive, the firm should go for the expansion today, else wait until next year.NPV for expansion today can be calculated as follows:Future cash flow generated at the end of the year = $ 12 millionContinuation value of the investment if the economy improves = $ 145 million.Continuation value of the investment if the economy does not improve = $ 46 millionNPV = (CF / (1 + r)) + (Prob. of high * Continuation value of investment in high state + Prob. of low * Continuation value of investment in low state) / (1 + r) ^ 2 - Initial investment= (12 / (1.05)) + (0.44 * 145 + 0.56 * 46) / (1.05) ^ 2 - 80= $ 9.45 million.Since the NPV for expansion today is positive, the firm should go for the expansion today.
b) Calculation of cost of expanding that makes the NPV of expansion today equal to the NPV of waiting until next year:To calculate the cost of expansion that makes the NPV of expansion today equal to the NPV of waiting until next year, we need to equate the NPVs of both options.NPV for waiting until next year can be calculated as follows:Future cash flow generated at the end of the year = $ 0 (Since we wait until next year)Continuation value of the investment if the economy improves = $ 145 millionContinuation value of the investment if the economy does not improve = $ 46 millionNPV = (Prob. of high * Continuation value of investment in high state + Prob. of low * Continuation value of investment in low state) / (1 + r)= (0.44 * 145 + 0.56 * 46) / (1.05)= $ 93.95 millionLet C be the cost of expanding next year.NPV of waiting until next year = (Prob. of high * Continuation value of investment in high state + Prob. of low * Continuation value of investment in low state) / (1 + r) - C= (0.44 * 145 + 0.56 * 46) / (1.05) - CThe cost of expanding that makes the NPV of expansion today equal to the NPV of waiting until next year is given by the solution of the equation9.45 = (0.44 * 145 + 0.56 * 46) / (1.05) - CTherefore, C = $ 80 million.The profitability index (PI) of the expansion option can be calculated as follows:PI = NPV of the project / Initial investment= $ 9.45 million / $ 80 million= 0.1181 (rounded to four decimal places)Therefore, the profitability index of the expansion option is 0.1181.
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1. What is a business plan?
Answer:
It's simple, what you want to do with your business. Or what your planning to do with it.
What is weighted average cost of capital (WACC)?
Weighted average cost of capital (WACC) is a financial metric that represents the average cost of all of the capital that a company has raised to finance its operations, including debt and equity.
The WACC calculation takes into account the cost of each type of capital and the proportion of each type of capital that the company has in its capital structure. The formula for WACC is:
WACC = (E/V x Re) + ((D/V x Rd) x (1 - T))
Where:
E = market value of the company's equity
V = total market value of the company (equity + debt)
D = market value of the company's debt
Re = cost of equity
Rd = cost of debt
T = tax rate
The WACC is used as a discount rate for calculating the net present value of future cash flows. A company's WACC is typically used in investment analysis, such as in determining the feasibility of a new project or in valuing a company as a whole. A lower WACC indicates that the company has a lower cost of capital and is therefore more valuable.
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Marianne was a computer programmer making almost $170,000 a year at a rate of $80 an hour for Big Tech. Ginger, her boss, demanded that she work 100 hours of overtime over the next month until a large project was complete. Marianne believes she is entitled to 100 hours of overtime pay. Under the Fair Labor Standards Act, how much overtime pay is she entitled to
Under the Fair Labor Standards Act, Marianne is entitled to $12,000 for overtime pay.
What is the overtime rate under the Fair Labor Standards Act?Under the Fair Labor Standards Act, the overtime rate is a time and a half.
Data and Calculations:Annual salary = $170,000
Rate per hour = $80
Overtime rate per hour = $120 ($80 x 1.5)
Overtime hours = 100 hours
Overtime pay = $12,000 (100 x $80 x 1.5)
Thus, under the Fair Labor Standards Act, Marianne is entitled to $12,000 for overtime pay.
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twu communications is considering a project with an initial fixed asset cost of $2.168 million which will be depreciated straight-line to a zero book value over the 10-year life of the project. at the end of the project the equipment will be sold for an estimated $495,000. the project will not directly produce any sales but will reduce operating costs by $634,000 a year. the tax rate is 30 percent. the project will require $128,000 of net working capital which will be recouped when the project ends. what is the net present value at the required rate of return of 15 percent?
the correct option is: E. the net present value at the required rate of return of 14.3 percent = $657,345.35
Initial cash flow = −$2,168,000 − 128,000
Initial cash flow =$2,296,000OCF = $634,000(1 − .21) + ($2,168,000/10)(.21)OCF = $546,388
Last cash flow = $128,000 + $495,000(1 − .21)
Last cash flow = $519,050NPV = −$2,296,000 + $546,388{[1 − (1/1.14310)]/.143} + $519,050/1.14310NPV = $657,345.35
Initial cash flow is the all-out cash that is accessible when an undertaking or business is in the arranging stages. The figure incorporates any advances or investments made in the task. It is normally a negative figure since sending off a business requires capital investment with expectations of creating future pay.
Equation. Initial cash flows = FC+WC-S + (S-B) * T Here, FC = fixed capital, WC = working capital, S = Rescue esteem, B = Book esteem, and T = Duty rate.
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the complete question is:
Gateway Communications is considering a project with an initial fixed asset cost of $ 2.168 million which will be depreciated straight-line to a zero book value over the 10-year life of the project. Ignore bonus depreciation. At the end of the project, the equipment will be sold for an estimated $495,000. The project will not directly produce any sales but will reduce operating costs by $634,000 a year. The tax rate is 21 percent. The project will require $128,000 of networking capital which will be recouped when the project ends. What is the net present value at the required rate of return of 14.3 percent?
A) $668,019.24
B) $701,414.14
C) $652,108.10
D) $570,475.57
E) $657,345.35