Final answer:
The first call option with an exercise price of $85 has a value of approximately $16.67, calculated by discounting the average of the possible end-of-year values. The second call option with an exercise price of $115 has a value of approximately $1.90, based on the discounted expectation of its single profitable outcome.
Explanation:
The value of a call option on a stock can be assessed by considering the possible outcomes at expiration and discounting them back to the present value, given a risk-free interest rate such as the yield on T-bills. Call options provide the holder the right, but not the obligation, to purchase the underlying stock at a specified exercise price before the option expires.
Part A: Call Option with Exercise Price of $85
If the stock price ends up at $86, the call will be worth $1 (86 - 85). If the stock price rises to $119, the call will be worth $34 (119 - 85). We would average the two possible values, weighted by the probability of occurrence. Assuming risk-neutrality, both outcomes are equally likely, so the call option's expected payout is $17.50 (Average of $1 and $34). We then discount this back at the T-bill yield of 5%, which results in a value of $16.67 for the call option.
Part B: Call Option with Exercise Price of $115
If the stock price ends up at $86, the call will be worthless since $86 is less than the exercise price of $115. If the stock rises to $119, the call will be worth $4 (119 - 115).
Again assuming risk-neutrality and equal probability, the expected payout is $2.
Discounting this at 5% gives us a present value of $1.90 for the call option.
Therefore, the value of the call option with a $115 exercise price is $1.90.
The Program Manager just received approval of his proposed acquisition strategy with one exception: he has been directed to make maximum use of existing Air Force software. Which ofthe best software acquisition practices is most applicable to his situation?
a. Use system based software design
b. Inspect requirements and design
c. Assess reuse risks and cost
d. Use metrics to manage
Answer:
Option (C) is the correct answer.
Explanation:
According to the scenario, the program manager has been directed to use existing software whose one of the main aspects to check is the risk included in reusing the software.
Assessing the cost of reusing the software is also one of the main aspects to check.
Hence the most appropriate answer is option (C).
while other options are not that appropriate because it is directed to use the existing software that means the design and metrics are already given with the existing software.
American car dealers are still not completely back on their feet from a recent economic downturn. In order to help American car companies like Ford and GM gain more sales, Senator Joseph Ellis has proposed that all automobiles imported from Japan and Germany should pay an extra $2,000 per vehicle to enter the United States. (This would not affect cars from foreign car companies like Toyota and BMW that are built in factories in the United States, only those cars that are actually transported from overseas into the United States.Type of trade barrier: _________________________The trade barrier meant to protect _________________________.Argument for why you would or would not recommend this proposal:_________
Answer:
The answer is Tariffs.
Explanation:
To put it simply, tariffs are taxes put upon imported goods from foreign countries.
However, imported means actual and physical goods that are physically transported from one country to another.
These tariffs are imposed to protect the local industries/goods and services. Tariffs increase the price of imported goods which are usually cheaper than the locally produced goods, thus increasing the demand for the local goods.
I would recommend this as certain financially stronger foreign corporations do various illegal and unethical practices such as Dumping (selling below the production cost) which can be harmful for the local industries in the long term.
Moreover, a nation should focus more on developing entrepreneur capacities within their own countries rather than majorly relying on imported goods.
In addition, local small and medium businesses contribute to the employment more. Making it much important to protect the local industries.
George has been looking into buying a bond for his portfolio. His greatest investment objective is total return. Which of the following bonds would be the BEST choice for George with this objective in mind?
A. A bond which has a price of $850, a Yield to Maturity of 4%, and a Current Yield of 3.75%
B. A bond which has a price of $875, a Yield to Maturity of 3.95%, and a Current Yield of 3.80%
C. A bond which has a price of $825, a Yield to Maturity of 3.5%, and a Current Yield of 3.45%
D. A bond which has a price of $925, a Yield to Maturity of 3.75%, and a Current Yield of 3.65%
Answer:
A. A bond which has a price of $850, a Yield to Maturity of 4%, and a Current Yield of 3.75%
Explanation:
Since George is focussed on achieving a high total return for his portfolio, he will consider adding a bond whose yield to maturity (YTM) is the highest. Among these options, option A would be ideal since it has a 4% YTM; he would probably not consider if the price of $850 is high or not . This is the annual interest rate paid on the bond investment.
The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy.
Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply.
a.Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
b. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
c. Changes in government purchases and taxation must be passed by both houses of Congress and signed by the president.
d. Businesses make investment plans many months in advance.
Which of the following are examples of automatic stabilizers? Check all that apply.
a. Unemployment insurance benefits
b. Personal income taxes
c. The discount rate
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Instability of user capability needs, design, and production processes are most likley to cause:_________-
Answer:
Cost increase and Schedule Slips
Explanation:
Schedule slips is the act of missing the deadline of the project and in order to avoid the schedule slips, person should plan their projects carefully so that could avoid the delays the schedule.
Instability, states it lacks the stability in the capability design, production processes and needs of the project, so, if the users lacks in the following areas, which in turn result in the increase in the cost of the project as well as the schedule slips.
Payments to principal on a mortgage
a. represent the cost to the individual for taking out the loan.
b. increase the market value of the home.
c. decrease the market value of the home.
d. decrease liabilities, thereby increasing home equity and wealth.
e. decrease liabilities, thereby decreasing home equity and wealth.
Answer:
A
Explanation:
Principal us the amount of the loan collected and when paying back the loan the principal and interest is paid in return
The body system most responsible for homeostasis in response to stress and broadly dictates metabolism is ___.
The body system most responsible for homeostasis in response to stress and broadly dictates metabolism is the immune system
Explanation:
The immune system is a diverse cell and protein system that protects the body from infection. Each germ (microbe) which the immune system has ever overcome will be registered, so it can quickly recognize and remove the microbe if it goes in the body.
The capacity of the immune system to combat antigens is decreased when we become stressed. We are therefore more vulnerable to infections. The corticosteroid stress hormone can minimize the immune system efficacy (i.e., decreased lymphocyte numbers).
A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 77 pounds of Kona coffee beans a day. (Demand can be assumed to be distributed normally with a standard deviation of 14 pounds per day). After ordering (fixed cost = $14 per order), beans are always delivered from Hawaii in exactly 4 days. Per-pound annual holding costs for the beans are $2.
a) What is the economic order quantity? (EOQ) for Kona coffee beans?b) What are the total annual holding costs of stock for Kona coffee beans?
Answer:
a. 464 beans
b. $464
Explanation:
a. The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
where,
Annual demand = 200 days × 77 pounds = 15,400
And, all other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= [tex]\sqrt{\frac{2\times \text{15,400}\times \text{\$14}}{\text{\$2}}}[/tex]
= 464 beans
The average inventory would equal to
= Economic order quantity ÷ 2
= 464 units ÷ 2
= 232 units
b. Holding cost = average inventory × carrying cost per unit
= 232 units × $2
= $464
Water resource economics. The riparian doctrine Select one: a. Is a method of allocating water, according to proportion of land next to a stream, used in the west and east United States. b. Is a method of allocating water dubbed "first-in-time, first-in-right." c. Is a method of allocating water developed by miners to account for water scarcity. d. Is a method of allocating water effective in humid climates (Eastern US) but that was replaced by the doctrine of prior appropriation in the west.
Answer:
a. Is a method of allocating water, according to proportion of land next to a stream, used in the west and east United States
Explanation:
Riparian Water Rights (Riparian Rights)
This reprsents a water allocation system, allowing landowners who owned lands along rivers and streams to use the water for basic domestic purposes including cooking, bathing, drinking and watering livestock.
These landowners were also responsible for ensuring that the water body is preserved in a unpolluted and undiminshed condition.
This Riparian Water Rights was used in may areas of common law heritage such as Western and Eastern United States including Canada among others. Outside the United States, Australia also used the Riparian Water Rights.
Assume that you are a vending machine dealer. You plan to purchase a vending machine for $200,000. One year later, you are expected to sell it back and receive $224,000 as cash. What is the IRR (internal rate of return) on this investment? Be sure to apply the definition of IRR and show your work.
3 points>
In order to buy the vending machine, you plan on borrowing $80,000 from Bank at 5% of interest rate and raise $120,000 from investors at 10% of cost of equity, are you going to accept this project? Why? (Tax rate is 30%). Show your work.
Answer:
1) 22%
2) YES as the return in the investment is 12% while the average cost of capital in this case; is of 8% hence there is a gain above the minimum accepted return.
Explanation:
[tex]-200,000 + \frac{224,000}{1+ IRR} = 0[/tex]
IRR = 12%
weighted-average cost of capital:
DEBT 80,000 x 5% = 4,000
EQUITY 120,000 x 10% = 12,000
VALUE 200,000 16,000
16,000 / 200,000 = 8%
Assume that the following asset values (in millions of dollars) exist in Ironmania:
Category
Value
Federal Reserve Notes in circulation
$ 700
Money market mutual funds (MMMFs) held by individuals
400
Corporate bonds
300
Iron ore deposits
50
Currency in commercial banks
100
Savings deposits, including money market deposit accounts (MMDAs)
140
Checkable deposits
1,500
Small-denominated (less than $100,000) time deposits
100
Coins in circulation
40
Instructions: Enter your answers as whole numbers.
a. What is M1 in Ironmania? $ _________million.
b. What is M2 in Ironmania? $_________ million.
Answer:
a. $2,240
b. $2,880
Explanation:
The computations are shown below:
a. For M1:
= Notes in circulation + Check-able deposits + Coins in circulation
= $700 + $1,500 + $40
= $2,240
b. For M2:
= M1 + saving deposits + time deposit + Money market mutual funds (MMMFs) held by individuals
= $2,240 + $140 + $100 + $400
= $2,880
All other information which is given is not relevant. Hence, ignored it
Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor who would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following costs:
Cost per Unit:
DM 31
DL 18
Variable Overhead 9
Answer:
Supplier's quotation (2,400 x $6.25) 150,000
Less: Relevant cost of production:
Direct material (2,400 x $31) 74,400
Direct labour (2,400 x $18) 43,200
Variable overhead (2,400 x $9) 21,600 139,200
Savings 10,800
The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.
Explanation:
In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.
To make an informed decision, Chucky Valters, the CEO of Quirch Inc., needs to compare the costs of purchasing 2,400 units of product PQ107 from the subcontractor with the in-house production costs. The purchase price from the subcontractor is $150,000 for 2,400 units, which translates to $62.50 per unit.
On the other hand, if Quirch produces the parts in-house, they would incur the following costs per unit:.s (DM) $31, Direct Labor (DL) $18, and Variable Overhead $9, totaling $58 per unit.
By comparing the purchase price of $62.50 with the in-house production cost of $58 per unit, Chucky can make an informed decision about whether to accept the subcontractor's offer or produce the parts in-house. If the purchase price is lower than the in-house production cost, it may be more cost-effective to buy from the subcontractor, but if the in-house production cost is lower, it would be better to manufacture the parts internally.
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Karl and Leonard want to make trail mix. In order to get the right balance of ingredients for their tastes they bought 2 pounds of raisins at $ 3.95 per pound comma 3 pounds of peanuts for $ 2.08 per pound comma and 5 pounds of chocolate chips for $ 3.25 per pound. Determine the cost per pound of the trail mix.
Answer:
Cost per pound of the trail mix: $
Raisins 2 pounds @ $3.95 each = 7.90
Peanuts 3 pounds @ $2.08 each = 6.24
Chocolate 5 pounds @ $3.25 each = 16.25
Total 10 pounds 30.39
Cost per pound of the trail mix = $30.39/10 pounds
Cost per pound of the trail mix = $3.039 per pound
Explanation:
In this case, we need to determine the total cost of the trail mix, which is the quantity of each ingredient multiplied by price per ingredient. Then, we will calculate the cost per pound of the trail mix, which is the total cost divided by the total pounds of ingredients.
El valor de cada libra de mix de frutos secos preparado por Karl and Leonard is $1.625
To know the value per pound of the trail mix that Karl and Leonard made, it is necessary to carry out the following operations.
Calculate the total price of the quantities of nuts they bought by multiplying the value of each one by the number of pounds they bought.
2 pounds × $ 3.95 = $ 7.93 pounds × $ 2.08 = $ 6.245 pounds × $ 3.25 = $ 16.25Now it is necessary to know how many pounds of the mix of nuts they have by adding all the ingredients, for them the number of pounds of each ingredient must be added
2 pounds + 3 pounds + 5 pounds = 10 pounds
Finally, to know the value of each pound of trail mixed, it is necessary to divide the total value of the mix into the total number of pounds.
$ 16.25 ÷ 10 pounds = $ 1.625
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Jeremy operates his own small business, but he doesn't want to be bothered with accounting information. He tells his friends, "All I need accounting for is to prepare my income tax return for my business. I'll hire someone to do that for me." Jeremy's attitude would be disastrous if he managed a large firm, but is a reasonable view for a small business owner. (Points : 2) True False
Answer:
The correct answer is the option True, it would be reasonable.
Explanation:
To begin with, accounting is one of the most importants subjects to have in mind regarding the fact of openning and managing a business, no matter how small or large that firm will be. Moreover, accounting will facilitate the fact of keeping up with everything that goes in and goes out regarding money in the business and to also help the manager to see how well the incomes and outcomes are doing in the balance sheet. Therefore that accounting can help the manager to improve the performance of the business if the information is understood and used properly. Besides, accounting information is obligatorily important when regarding subjects of taxes and legal matters as well.
Secondly, although is important to keep up with the accounting of the business, a small company could not pay too much attention to it and instead focusing in other matters. However, it is very important to understand that to be a master in managing a business and to improve the performance of it, it is very important to give more attention to accounting information with the purpose of understanding the business better.
Jeremy's disregard for accounting principles, except for tax preparation, is not a reasonable view for any business owner as it overlooks the importance of accounting in decision-making and understanding the business's financial health.
Explanation:The statement that Jeremy's attitude toward accounting would only be reasonable for a small business owner but disastrous for a large firm is false. Accounting offers more than just preparation for income tax; it is a crucial element for decision-making at any business size. Accurate profit and loss accounting helps entrepreneurs make informed decisions about resource utilization and consider opportunity costs, which directly impact the viability and strategic planning of the business. Even for a small business, ignoring accounting principles can lead to suboptimal decisions, such as underpaying oneself or failing to grasp the full financial impact of business operations. Thus, a thorough understanding of accounting is vital irrespective of the enterprise’s size.
Suppose you buy a new iClicker 2 from the Illinois bookstore for $29.99. Your friend was lucky and found a used iClicker 2 online for 10. Assume that iClickers are also produced in the U.S. How much does U.S. GDP increase by?
Answer:
U.S. GDP increase by $29.99
Explanation:
given data
buy new iClicker 2 from bookstore for $29.99
used iClicker 2 online = 10
to find out
How much does U.S. GDP increase by
solution
we know that GDP is only include value of good and service produce during the certain period of time
and here we buy new iClicker 2 from the Illinois bookstore at $29.99 is only part of U.S. GDP
but when used iClicker 2 online is at $10 is not the part of U.S. GDP
so we can say U.S. GDP increase by only at $29.99
so U.S. GDP increase by $29.99
Time Warner Inc. is a leading media and entertainment company whose businesses include Turner, Home Box Office, and Warner Bros. A number of years ago, the company's annual report contained the following information (dollars in millions): Net loss $ (13,402 ) Depreciation, amortization, and impairments 34,790 Decrease in receivables 1,245 Increase in inventories 5,766 Decrease in accounts payable 445 Additions to equipment 4,377 Source: Time Warner Inc.
Required: 1. Based on this information, compute cash flow from operating activities using the indirect method. (Enter your answers in millions. List loss amounts and cash outflows as negative amounts.)
Answer:
Net Cash flow from Operating activities $16,422
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net loss - $13,402
Adjustment made:
Add: Depreciation, amortization, and impairments $34,790
Add: Decrease in accounts receivable $1,245
Less: Increase in inventory -$5,766
Less: Decrease in accounts payable -$445
Total of Adjustments $29,824
Net Cash flow from Operating activities $16,422
Gwen recently purchased a new video card, and after she installed it, she realized she did not have the correct connections and was not able to power the video card. What connectors should Gwen look for when purchasing a new power supply?
Answer:
The correct answer is: 8-pin PCI-E connector and 6-pin PCI-E connector.
Explanation:
One of the components that consume more power of a computer is the video card. Depending on the different models and brands of graphic cards available there are in the market, the external power for the video card requires a 6-pin or 8-pin PCI-Express power connector.
Suppose Amazon Inc. pays no dividends but spent $ 2.95 billion on share repurchases last year. If Amazon's equity cost of capital is 7.6 %, and if the amount spent on repurchases is expected to grow by 6.4 % per year, estimate Amazon's market capitalization. If Amazon has 428 million shares outstanding, what stock price does this correspond to?
Answer:
Market Capitalization = $261.567 Billion
Stock Price per share = $611.137 per share
Explanation:
given data
spent = $2.95 billion
equity cost of capital ke = 7.6 % = 0.076
grow = 6.4 % per year = 0.064
shares outstanding = 428 million = 0.428 Billion
to find out
Amazon’s Market Capitalization and stock price
solution
first we get here Amazon's market capitalization that is express as
Market Capitalization = Cash Flow (1 + g) ÷ (Ke - g) ..............1
here g is grow rate and ke is equity cost of capital
Market Capitalization = [tex]\frac{2.95(1+0.064)}{(0.076-0.064)}[/tex]
Market Capitalization = $261.567 Billion
and
Stock Price per share will be as
Stock Price per share = [tex]\frac{Market\ Capitalization}{shares\ outstanding}[/tex] ..................2
Stock Price per share = [tex]\frac{261.567}{0.428}[/tex]
Stock Price per share = $611.137 per share
Jack, a Caucasian male, works as a tennis coach with Shaquita, an African-American female. There is a well-known stereotype in the tennis community that women can’t serve as fast as men can. Based on the summaries of these two studies, which of the following statements would be most likely to decrease the speed of Shaquita’s serve because of the effects of stereotype threat?A) Shaquita, did you know that women make 99% of the decisions about which appliances to buy?
B) Shaquita . . . that’s an interesting name. So many of the women around here have boring names like "Mary" or "Sue."
C) Wow, Shaquita, did you see what Jim sold last month? Just remember, if you want your full commission this month, you’ve got to meet this week’s large appliance goals.
D) I expect all of the people on my sales team to do equally well—now let’s get out there and move some merchandise!
The correct question should be: "Jack, a Caucasian male, works in the sales department of a large home goods store with Shaquita, an African-American female. There is a well-known stereotype in the sales community that women sell less than men do. This stereotype is often accompanied by the idea that African-Americans sell less than Caucasians. Based on the summaries of these two studies, which of the following statements would be most likely to increase Shaquita’s sales of large appliances because of the effects of stereotype threat?"
Answer:
A) Shaquita, did you know that women make 99% of the decisions about which appliances to buy?
D) I expect all of the people on my sales team to do equally well, now let’s get out there and move some merchandise!
Explanation:
Stereotype threat occurs when a person who fits into a particular stereotyped group is worried about his or her action confirming that stereotype. This may end up affecting the person's performance on a task.
Both statements in options A and D chosen above, are likely to boost Shaquita's confidence and encourage her to improve her sales of large appliances.
Stereotype threat can impact performance of stereotyped groups; emphasizing stereotypes can have negative effects.
Stereotype threat is a phenomenon where individuals from stereotyped groups underperform in situations where stereotypes are activated. In the context of the question, a statement like C) Wow, Shaquita, did you see what Jim sold last month? Just remember, if you want your full commission this month, you’ve got to meet this week’s large appliance goals. would most likely decrease the speed of Shaquita’s serve due to the effects of stereotype threat by emphasizing the stereotype that women, like her, cannot serve as fast as men.
Thom Corporation is considering an investment opportunity with the following expected net cash inflows:
Year 1, $ 230,000; Year 2, $ 370,000; Year 3, $ 360,000.
The company uses a discount rate of 13%, and the initial cost of the investment is $ 720,000.
Present Value of $1:
| 10% | 11% | 12% | 13% | 14% | 15%
1 | 0.909 | 0.901 | 0.893 | 0.885 | 0.877 | 0.870
2 | 0.826 | 0.812 | 0.797 | 0.783 | 0.769 | 0.756
3 | 0.751 | 0.731 | 0.712 | 0.693 | 0.675 | 0.658
4 | 0.683 | 0.659 | 0.636 | 0.613 | 0.592 | 0.572
5 | 0.621 | 0.593 | 0.567 | 0.543 | 0.519 | 0.497
The IRR of the project will be ________.
A. between 13% and 14%
B. less than 13%
C. between 14% and 15%
D. more than 13%
Answer:
C. between 14% and 15%
Explanation:
IRR (internal rate of return) is the rate whereas the net present value (NPV) of project is zero.
We can easily calculate IRR in excel by the formula = IRR(-720000,230000,370000,360000) = 14.73%
However, this exercise want you to do the calculation manually, so we have to do as followings:
- calculate NPV of each year cash inflow with every present value of $1 according to every discount rate
- The sum up of all NPV of 3 years cash inflow with the initial investment
- Any sum up nearest to zero, then the applied rate is the IRR
For example 1: we do for rate 14%
NPV of Cash inflow Year 1 = 230,000*0.877= 201.710
NPV of Cash inflow Year 2 = 370,000*0.769= 284,530
NPV of Cash inflow Year 3 = 360,000*0.675= 243,000
So NPV of investment = 201.710 + 284,530 +243,000 – 720,000= 9,240
For example 2: we do for rate 15%
NPV of Cash inflow Year 1 = 230,000*0.870= 200,100
NPV of Cash inflow Year 2 = 370,000*0.756= 279,720
NPV of Cash inflow Year 3 = 360,000*0.658= 238,880
So NPV of investment = 200,100+ 279,720 + 238,880 – 720,000= (3,300)
The NPV of investment turn from $9,240 to (3,300) when rate change from 14% to 15%; thus IRR is between 14% and 15%
Divine Apparel has 3,100 shares of common stock outstanding. On October 1, the company declares a $0.75 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. Record all transactions on the appropriate dates for cash dividends. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)1) Record the declaration of cash dividends.2) Record the entry on date of record.3) Record the payment of cash dividends
Final answer:
To record the cash dividends transactions, follow these steps: 1) Record the declaration of cash dividends. 2) Record the entry on the date of record. 3) Record the payment of cash dividends.
Explanation:
To record the cash dividends transactions, we need to follow the following steps:
Record the declaration of cash dividends: On October 1, we will debit Retained Earnings for the total amount of cash dividends, $0.75 per share, multiplied by the number of shares outstanding, 3,100. This would decrease Retained Earnings and create a liability called Dividends Payable.Record the entry on the date of record: On October 15, we do not need to record any journal entry since this is just a record-keeping date which determines who the shareholders are that will receive the dividends.Record the payment of cash dividends: On October 31, we will debit Dividends Payable for the total amount of cash dividends, $0.75 per share, multiplied by the number of shares outstanding, 3,100. We will also credit Cash for the same amount. This will decrease the liability of Dividends Payable and provide a decrease in assets with the cash payment.Presented below is information for Metlock Company.
1. Beginning-of-the-year Accounts Receivable balance was $22,700.
2. Net sales (all on account) for the year were $101,600. Metlock does not offer cash discounts.
3. Collections on accounts receivable during the year were $82,300.
Prepare (summary) journal entries to record the items noted above
Answer:
The Journal entries are as follows:
(1) For Opening Balance Journal entry Not Required
(2) Net sales (all on account) for the year were $101,600. Metlock does not offer cash discounts,
Accounts Receivable A/c Dr. $101,600
To Sales A/c $101,600
(To record sales on account)
(3) Collections on accounts receivable during the year were $82,300,
Cash A/c Dr. $82,300
To Accounts Receivable $82,300
(To record the receipt of accounts receivable)
The Scrum Team should choose at least one high priority process improvement, identified during the Sprint Retrospective, and place it in the Product Backlog.
A. True
B .False
Answer:
B-False
Explanation:
After the retrospective discussion all the improvement items discussed are placed in the Product Backlog. To ensure continuous improvement, the next sprint backlog ( & not the current one) should include at least one high priority process improvement which was identified in the previous Sprint Retrospective meeting.
The Scrum Team should choose at least one high priority process improvement identified during the Sprint Retrospective and place it in the Product Backlog.
Explanation:The statement is true:
The Scrum Team should identify high priority process improvements during the Sprint Retrospective.These identified improvements should be placed in the Product Backlog.This allows the improvements to be prioritized, planned, and implemented in future sprints.Learn more about Scrum process improvement here:https://brainly.com/question/33442740
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When the price level declines the interest rate falls, and consumers borrow more funds, which causes a movement down along the aggregate demand curve. interest rates fall, and consumers borrow more funds, which causes the aggregate demand curve to shift to the left. the interest rate rises, and consumers borrow fewer funds, which causes a movement up the aggregate demand curve. the interest rate is not affected, so there is no movement along the aggregate demand curve.
Answer:
Interest rates fall, and consumers borrow more funds, which causes the aggregate demand curve to shift to the left.
Explanation:
The quantity of money demanded is inversely related to the interest rate. One of the most useful features of the liquidity preference framework is that it allows us to see how changes in the demand and supply of money affect interest rates.
Equilibrium interest rates will increase if there is a…
Increase in money demand (+)
Decrease in money supply (+)
Equilibrium interest rates will decrease if there is a…
Decrease in money demand (-)
Increase in money supply (-)
A lower price level has the opposite affect inducing a decrease in the interest rate which triggers an increase in borrowing used for consumption expenditures and investment expenditures. The negative slope of the aggregate demand curve captures the inverse relation between the price level and aggregate expenditures on real production.When the price level changes, the interest-rate effect is activated, which is what then results in a change in aggregate expenditures and the movement long the aggregate demand curve.A higher interest rate can add to the overall cost of the expenditure. A lower interest rate can reduce the overall cost of the expenditure.
This means that changes in the interest rate can have a big impact on consumption and investment spending. The interest rate tends to increase and decrease as the price level increases and decreases. This means that a higher price level induces a higher interest rate which raises the cost of borrowing and discourages investment and consumption spending. A lower price level has the opposite result.
Purchasing Power Parity (PPP) theory states that A. the exchange rate between currencies of two countries should be equal to the ratio of the countries' price levels. B. as the purchasing power of a currency sharply declines (due to hyperinflation) that currency will depreciate against stable currencies. C. the prices of standard commodity baskets in two countries are not related. D. both a) and b)
Answer:
The correct answer is A and B
Explanation:
PPP stands for Purchasing Power Parity, which is a theory that states or define as the exchange rate among the currencies of 2 countries, which should be equal to the ratio of the price levels of the countries.
It is grounded on The Law of One Price, which states all the identical goods have the same price.
As the purchasing power of the currency which sharply decrease because of hyperinflation, that currency will be depreciated against the stable currencies.
Assume cereal and milk are complements for most consumers. Use the slider to show what will happen to the demand for cereal if the price of milk decreases?
Sammie's Shiny Shoes is a firm that operates in a competitive market. The number of firms in the shoe-shining market increases. In the short run, Sammie will _______.
A. cut back on the number of shoes he shines
B. increase the number of shoes he shines to maintain market share
C. wait and see what happens to the market price
D. not be affected by the number of competitors
Answer:
A. cut back on the number of shoes he shines
Explanation:
Assuming a competitive market, in the short run, an increase in the number of firms means an increase in competitiveness and, consequently, an increase in the service supply while demand stays the same. This change causes Sammie to experience a decrease in his market share and, therefore, he will cut back on the number of shoes he shines.
Raising the reserve ratio __________ the ability of banks to create money (make loans) and decreases a bank’s ability to make a profit..
Answer:
Lowers
Explanation:
Required reserve ratio refers to the portion of deposits with banks that will be kept with central banks. If there is an increase in the required reserve ratio then the banks have to keep more amount of deposits with the central bank which reduces the bank's ability to give loans and create money.
Because with an increase in the reserve ratio, the less amount of deposits available with the banks for giving loans.
Your savings account currently has a balance of $32,300. You opened the savings account two years ago and have not added to the initial amount you deposited. If your savings have been earning an annual interest rate of 2 percent, compounded annually, what was the amount of your original deposit?
Answer:
Original deposit= $31,045.75
Explanation:
Giving the following information:
Your savings account currently has a balance of $32,300.
You opened the savings account two years ago.
Interest rate= 2 percent, compounded annually
To calculate the original sum we need to use the following formula:
PV= FV/(1+i)^n
PV= 32,300/(1.02^2)= $31,045.75
An increase in the amount of household wealth in an economy would ________ the average standard of living and would ________ the spending power experienced by the typical person.a. raise; have little effect onb. raise; improvec. raise; reduced. have no effect on; improvee. lower; reduce
Answer: raise; have little effect on is the correct option
Explanation:Wealth is understood as ownership of economic capital. It is viewed as a
dimension of people’s economic (or material) well-being, alongside income and
consumption. There are other concepts of capital that are important to people’s well-being
and complement the concept of economic capital, such as human capital, social capital
and collectively-held assets. However, while they may have considerable economic value to
the people that possess (or have access to) them, they are not material assets and liabilities
over which people can exercise ownership rights.
Information on household wealth is important at both the macro and micro levels.
Wealth is one of the key components of the economic system. It is a source of finance for
future consumption, for reducing vulnerability to shocks and to other unexpected
developments, and for undertaking business and other economic activities. At both the
macro and micro levels, household wealth statistics play a vital role in informing responses
to a wide range of policy and research questions. However, the perspectives and insights
provided at each level are also quite different. The primary focus
at the macro level is on the household sector’s wealth, its relation with the other sectors of
the economy, and its role within the broader economic system; conversely, the primary
focus at the micro level is on the wealth of individual households and its distribution
across different types of households.