cape corp. will pay a dividend of $3.90 next year. the company has stated that it will maintain a constant growth rate of 4.75 percent a year forever. a. if you want a return of 16 percent, how much will you pay for the stock? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b.if you want a return of 9 percent, how much will you pay for the stock?

Answers

Answer 1

a. If you want a return of 16 percent, you should pay $54.62 for the stock.

b. If you want a return of 9 percent, you should pay $79.57 for the stock.

To calculate the stock price using the constant growth model, we use the formula:

Price = D / (r - g)

Where D is the dividend paid next year, r is the required rate of return, and g is the constant growth rate.

For part a, we substitute D = 3.90, r = 0.16, and g = 0.0475 into the formula and solve for Price, which gives us $54.62. This means that if you want a return of 16 percent, you should be willing to pay $54.62 for the stock.

For part b, we substitute D = 3.90, r = 0.09, and g = 0.0475 into the formula and solve for Price, which gives us $79.57. This means that if you want a return of 9 percent, you should be willing to pay $79.57 for the stock.

The constant growth model assumes that the dividend growth rate remains constant forever. In reality, companies may change their dividend policies and growth rates over time. Therefore, it is important to consider the assumptions and limitations of the model when using it to make investment decisions.

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Related Questions

eva runs a small bakery in the village of roggerli. she is debating whether she should extend her hours of operation. eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table to the right. she would have to hire a worker for those hours at a wage rate of $12 per hour. using marginal analysis, how many hours should eva extend her bakery's hours of operations? 4 hours

Answers

Eva should extend her bakery's hours of operation by 4 hours using marginal analysis.

To use marginal analysis to determine how many hours Eva should extend her bakery's hours of operation, we need to calculate the marginal revenue and marginal cost for each additional hour.

The marginal revenue is the additional revenue generated by each additional hour of operation. From the table provided, we can see that the marginal revenue for the first hour is $60, for the second hour is $50, for the third hour is $40, and for the fourth hour is $30.

The marginal cost is the additional cost incurred by hiring an additional worker for each additional hour of operation. In this case, the marginal cost is a constant $12 per hour.

To determine the optimal number of hours of operation, we need to continue adding hours until the marginal revenue equals the marginal cost. Based on the table provided, we can see that the marginal revenue equals the marginal cost at 4 hours of operation.

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-- The given question is incomplete, the complete question is

"Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $12 per hour.

Refer to Table below.

Using marginal analysis, how many hours should Eva extend her bakery's hours of operations?"

the commercial practices shown in the images emerged in order to responses facilitate the development of regional trade networks by creating uniform currencies and systems of credit. facilitate the development of regional trade networks by creating uniform currencies and systems of credit. finance imperial conquests by supplying credit and currency for purchasing weapons.

Answers

The commercial practices depicted in the images were developed to enable (A) "growing trade in luxury goods by providing greater access to credit and currency", as indicated by the Latin text in the upper left-hand corner warning against greed.

During the Renaissance period, there was a significant increase in trade and commerce, particularly in luxury goods such as textiles, spices, and artwork. The availability of credit and currency facilitated this trade, allowing merchants to invest in ventures and expand their businesses. This led to the creation of banking systems, bills of exchange, and other financial practices that made commerce more accessible to a wider range of people.

However, the pursuit of wealth also led to greed and corruption, as reflected in the warning against greed in the upper left-hand corner of the image. Overall, the emergence of these commercial practices had a profound impact on the economy and society during the Renaissance period.

Option A holds true.

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one of the variables affecting sales performance is organizational and environmental factors. what can a sales manager do to incorporate this in his/her sales management strategy? group of answer choices carefully design recruitment and selection policies organize logical and effective territory designs reduce supervisory pressure improve training and supervision institute competitive rewards systems

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There are several things a sales manager can do to incorporate organizational and environmental factors in their sales management strategy:

1- Carefully design recruitment and selection policies: Sales managers can design recruitment and selection policies that take into account the organization's culture, values, and objectives.

2- Organize logical and effective territory designs: Sales managers can organize sales territories in a logical and effective way that takes into account customer needs, market potential, and the skills and abilities of the sales team.

3- Reduce supervisory pressure: Sales managers can reduce supervisory pressure by setting realistic sales goals, providing adequate training and support, and giving salespeople the autonomy and flexibility to do their jobs effectively.

4- Improve training and supervision: Sales managers can provide ongoing training and supervision to salespeople to help them develop the skills and knowledge they need to be successful.

5- Institute competitive rewards systems: Sales managers can institute competitive rewards systems that motivate salespeople to achieve their sales targets. This can include bonuses, commissions, and other incentives that are tied to sales performance.

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is a task on which a subsequent (following) task depends in a project schedule. a.precedence relations b.predecessor c.precedence constrains d.successor

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A predecessor is a task on which a subsequent task depends in a project schedule, and is typically identified through the use of precedence relations or precedence constraints. The correct answer is A

Identifying and managing predecessors is a critical aspect of project scheduling, as it helps to ensure that tasks are performed in the correct sequence and dependencies are properly accounted for.A task on which a subsequent task depends in a project schedule is referred to as a predecessor.

Predecessors are an important aspect of project scheduling and help to establish the order and dependencies of tasks in a project.Predecessors are typically identified through the use of precedence relations or precedence constraints. Precedence relations are logical relationships between tasks that define the order in which tasks must be performed.

These relationships can be represented using symbols such as arrows or lines on a project network diagram.Precedence constraints, on the other hand, are specific rules or limitations that must be followed in order to maintain the logical relationships between tasks.

These constraints can include requirements such as waiting for a specific event to occur before beginning a task, or completing a task within a certain timeframe in order to avoid delaying subsequent tasks. The correct answer is A

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one of the basic ways in which services differ from products is that production and consumption are blank from each other. consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction. multiple choice question.

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One of the basic ways in which services differ from products is that production and consumption are separable from each other. Consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction.

A service is a transaction between a buyer and a seller in which the seller provides the buyer with an intangible product in exchange for payment. A service is a type of economic activity that involves providing various benefits to consumers without the exchange of tangible goods. Answer: The basic ways in which services differ from products are that production and consumption are separate from each other. Consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction.

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one of the basic ways in which services differ from products is that production and consumption are____________ from each other. consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction.

advantage air-conditioning guarantees any spare part for repairing air conditioners will be supplied within 24 hours. this policy best matches with:

Answers

The policy of "Customer Service Excellence" best matches with Advantage Air-Conditioning's guarantee to supply any spare part for repairing air conditioners within 24 hours.

This policy demonstrates a commitment to providing high-quality customer service by ensuring that customers' needs are met promptly and efficiently.

By providing spare parts within 24 hours, Advantage Air-Conditioning is showing that they understand the importance of minimizing downtime and inconvenience for their customers. This commitment to customer service excellence can help to build trust and loyalty with customers, and can also lead to positive word-of-mouth referrals and repeat business.

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an account invested in a money market fund grew from $67,081.20 to $67,359.39 in a month. what was the interest rate, to the nearest tenth?

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If an account invested in a money market fund grew from $67,081.20 to $67,359.39 in a month, the interest rate earned by the account is approximately 5%.

To calculate the interest rate, we need to use the formula for simple interest:

I = Prt

Where I is the interest earned, P is the principal or initial investment, r is the interest rate, and t is the time period.

In this case, the initial investment is $67,081.20 and the final investment is $67,359.39. The time period is one month, which is equivalent to 1/12 of a year. We can set up the equation as:

$67,359.39 - $67,081.20 = ($67,081.20)(r)(1/12)

Simplifying the equation gives:

$278.19 = ($67,081.20)(r/12)

Solving for r, we get:

r = ($278.19 * 12) / $67,081.20

r ≈ 0.05 or 5%

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on april 7, smithco purchased industrial equipment from equipco on credit and took possession of the equipment the same day. equipco filed a financing statement covering the equipment on april 18. on april 10, smithco borrowed funds from loanco secured by all of smithco's equipment. loanco filed its financing statement on april 11. twenty months later, smithco defaulted on both loans. equipco paid collectionco $750 to foreclose on the equipment and sell it at auction. which party will be paid first from the equipment sale proceeds?

Answers

The party which is going to be first paid when the sales of the equipment proceeds will be CollectionCo.

The correct option is option D.

Initially, on April 7, SmithCo happened to purchase industrial equipment through EquipCo through a line of credit and they also took the possession of the equipment on the very same day and EquipCo filed a financing statement which covered all the equipment on April 18.

SmitchCo then happened to borrow loans from LoanCo which covered the equipment and then on April 11, LoanCo filled their financial statements. After a period of 20 months, a default on both of the loans which was taken by SmithCo were seen and EquipCo paid 750 dollars to CollectionCo in order to foreclose as well as sell equipment in auction. As the sales are going to proceed, CollectionCo will be the first to get paid.

Hence, the correct option is option D.

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--The given question is incomplete, the complete question is

"On April 7, Smithco purchased industrial equipment from Equipco on credit and took possession of the equipment the same day. Equipco filed a financing statement covering the equipment on April 18. On April 10, Smithco borrowed funds from Loanco secured by all of Smithco's equipment. Loanco filed its financing statement on April 11. Twenty months later, Smithco defaulted on both loans. Equipco paid Collectionco $750 to foreclose on the equipment and sell it at auction. Which party will be paid first from the equipment sale proceeds?

A. Smithco.

B. Equipco.

C. Loanco.

D. Collectionco"

when comparing the direct write-off and allowance methods, which of the following statements applies to the direct write-off method? a.an allowance account is used. b.the expense is recognized when the account is written off rather than in the period of sale. c.primary users are large companies and those with a large amount of receivables. d.the result is based on either (1) a percentage of sales or (2) an analysis of receivables.

Answers

When comparing the direct write-off and allowance methods, the statement that applies to the direct write-off method is B) the expense is recognized when the account is written off rather than in the period of sale.

The direct write-off method and allowance method are both used for accounting for uncollectible accounts. However, they have different approaches when it comes to recognizing the bad debt expense.

The direct write-off method, as mentioned, recognizes the expense when the account is deemed uncollectible and written off. This means that the bad debt expense is recorded only when the company is sure that the receivable cannot be collected. This method is typically used by small businesses or those with a limited number of receivables.

On the other hand, the allowance method is based on either (1) a percentage of sales or (2) an analysis of receivables. This method creates an allowance for doubtful accounts, which is a contra-asset account that reduces the total receivables on the balance sheet. Under this method, the bad debt expense is estimated and recorded in the same period as the sale, adhering to the matching principle in accounting. This method is primarily used by large companies and those with a large amount of receivables.

In summary, the main difference between the direct write-off method and the allowance method is the timing of recognizing the bad debt expense. The direct write-off method recognizes the expense when the account is written off, while the allowance method recognizes the expense in the same period as the sale. The allowance method is more widely used, especially by large companies with a significant amount of receivables.

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film studio, incorporated has beginning retained earnings of $80,000 and expects to earn net income of $70,000 during the budget period. what would be the budgeted ending balance in retained earnings if the company declares and pays dividends of $50,000?

Answers

Earnings are the net gain from a business's operations or capital investments, calculated by subtracting expenses from income. It's also known as net income or net profit.

What are earnings?

The budgeted ending balance in retained earnings if Film Studio, Incorporated declares and pays dividends of $50,000 would be $100,000.

Earnings are the net gain from a business's operations or capital investments, calculated by subtracting expenses from income. It's also known as net income or net profit.

What are budgeted earnings?

The income that a company expects to earn from its core business operations in a future budget period is referred to as budgeted earnings. Film Studio, Incorporated has a starting retained earnings of $80,000 and expects to earn $70,000 in net income during the budget period. If the company declares and pays out $50,000 in dividends, the budgeted ending balance in retained earnings would be $100,000.

The budgeted ending balance in retained earnings is calculated using the formula:

Budgeted Ending Balance in Retained Earnings = Beginning Retained Earnings + Net Income - Dividends paid

Budgeted Ending Balance in Retained Earnings = $80,000 + $70,000 - $50,000

Budgeted Ending Balance in Retained Earnings = $100,000

Therefore, the budgeted ending balance in retained earnings if Film Studio, Incorporated declares and pays dividends of $50,000 would be $100,000.

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your employer contributes $95 at the end of each week to your retirement account. the account will earn a weekly interest rate of .22 percent. how much will the account be worth when you retire in 30 years?

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Therefore, the retirement account will be worth approximately $139.17 when you retire in 30 years.

Assuming that the $95 weekly contributions remain constant over 30 years, the future value of the retirement account can be calculated using the formula for compound interest:

FV = PV x (1 + r)^n

where FV is the future value, PV is the present value (initial balance), r is the weekly interest rate, and n is the number of weeks (in this case, 30 years x 52 weeks per year = 1,560 weeks).

Plugging in the given values, we get:

PV = 0 (assuming no initial balance)

r = 0.22% = 0.0022 (as a decimal)

n = 1,560 weeks

FV = $95 x (1 + 0.0022)^1560

FV = $95 x 1.463

FV = $139.17

Therefore, the retirement account will be worth approximately $139.17 when you retire in 30 years.

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what activities are being pursued by each of the following firms? what tradeoffs are they making? is their strategy successful? a. collins kitchen (this is actually hostess) b. betsy baking (this is really little debbie) c. ontario baking

Answers

Collins Cuisine (actually, this is Hostess) Their largest expense is outbound transportation, followed by manufacturing.

They concentrated on outbound logistics rather than core of to increase customers' willingness to spend. Because they are only earning a penny in profit, their strategy is ineffective.

b: Pastry by Betsy (this is really Little Debbie) Outbound logistics is also one of their largest expenses, but compared to Collins, their logistics costs were half as high. They are able to maintain low prices by keeping expenses down, which reduces the need for marketing while increasing customer willingness to pay. Because they increased their market share from 1% to 20% over the course of five years, their approach has been effective.

c. However, by investing more in marketing, Ontario Baking Logistics is able to charge more for their pastries because the consumers may be brand loyal or knowledgeable about it. Their approach is paying off; they are turning a profit.

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if mr. jones wanted to invest 3,000,000 yen in the japanese stock market, how many dollars would he need if the exchange rate was $1 for 150 yen?if mr. jones wanted to invest 3,000,000 yen in the japanese stock market, how many dollars would he need if the exchange rate was $1 for 150 yen?$25000$150$20000$30000

Answers

If Mr. Jones wanted to invest 3,000,000 yen in the Japanese stock market, he would need $20,000 if the exchange rate was $1 for 150 yen. So, the correct option is $20,000.

To convert yen to dollars, we can use the exchange rate of $1 for 150 yen. This means that for every $1, Mr. Jones can get 150 yen.

So, we can calculate the amount of dollars Mr. Jones needs to invest by dividing the yen amount by the exchange rate in yen per dollar: $3,000,000 yen / 150 yen/dollar = $20,000. Therefore, Mr. Jones would need $20,000 to invest 3,000,000 yen in the Japanese stock market if the exchange rate was $1 for 150 yen.

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the records of alberta incorporated included the following information: cost of goods sold $ 1,900,000 beginning inventory 445,000 ending inventory 485,000 what is the inventory turnover ratio?

Answers

The formula for inventory turnover ratio is  Inventory turnover ratio = Cost of goods sold / Average inventory. The inventory turnover ratio for this problem is 4.08.

What is inventory turnover?

Inventory turnover is a financial measure that indicates how often a company turns inventory relative to its cost of goods sold (COGS) over a period of time.

You can divide the number of days in a period (usually a fiscal year) by the inventory turnover rate to get the average number of days it takes a company to sell its inventory.

Businesses can use inventory turns to improve pricing, manufacturing, marketing, and purchasing decisions.

This is one efficiency metric used to measure how well a company is using its resources.

Low inventory turns can indicate slow sales or too much inventory. On the other hand, high inventory turnover indicates good sales. There may also be an impact of out of stock.  

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a professional futures trader who buys and sells futures for his own account throughout the day but typically closes out his positions at the end of the day is called a:

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The professional futures trader you described is commonly known as a Day Trader

A futures contract is an agreement between two parties to buy or sell an asset at a predetermined price and date in the future. Futures traders buy and sell these contracts with the intention of making a profit from price fluctuations.

A day trader is a type of futures trader who buys and sells contracts within the same trading day, with the goal of making profits from short-term price movements. Day traders typically use technical analysis tools and chart patterns to identify potential trades and set stop-loss and take-profit levels.

By closing out all their positions at the end of the trading day, day traders avoid the risks associated with holding positions overnight, such as unexpected news events or market gaps that can result in significant losses.

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green company has two segments: yellow division and blue division. given the following information, which segment has the higher ebitda and by how much?yellowblue revenue$44,140$69,876operating income18,11224,314depreciation15,0005,500amortization11,4222,000tax rate20 %

Answers

As per the tax rate, Blue Division has a higher EBITDA than Yellow Division, by $6,039.60

To calculate EBITDA, we need to add back the depreciation and amortization expenses to operating income, as they are non-cash expenses. Then, we subtract the income tax expense to arrive at EBITDA. The calculation for Yellow Division and Blue Division is as follows:

Yellow Division EBITDA = Operating income + Depreciation + Amortization - Income tax expense

Yellow Division EBITDA = $18,112 + $15,000 + $11,422 - (0.20 * $18,112)

Yellow Division EBITDA = $18,112 + $15,000 + $11,422 - $3,622.40

Yellow Division EBITDA = $40,911.60

Blue Division EBITDA = Operating income + Depreciation + Amortization - Income tax expense

Blue Division EBITDA = $24,314 + $5,500 + $2,000 - (0.20 * $24,314)

Blue Division EBITDA = $24,314 + $5,500 + $2,000 - $4,862.80

Blue Division EBITDA = $26,951.20

Therefore, we can see that Blue Division has a higher EBITDA than Yellow Division, by $6,039.60 ($26,951.20 - $40,911.60)

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Complete Question:

Green Company has two segments: Yellow Division and Blue Division. Given the following information, which segment has the higher EBITDA and by how much?

                                    Yellow        Blue

Revenue                       $44,140      $69,876

Operating income       18,112          24,314

Depreciation                15,000          5,500

Amortization                11,422         2,000

Tax rate                           20%           20%

4. what are the relative proportions in which men and women engage in unpaid work in developed and developing economies? what are the impacts of any such differences in these proportions in establishing the relative levels of economic well-being for men and women?

Answers

In developed economies, the proportion of unpaid work for women is higher compared to men, meanwhile in developing economies, however, both men and women engage in unpaid work, and its impact on establishing the relative levels of economic well-being for men and women.

What are developed and developing economies?

Developed economies refer to countries with advanced technological infrastructure and higher levels of economic development, such as the United States, Canada, and the United Kingdom. Developing economies refer to countries that are still in the process of growing and expanding their economies, such as India, China, and Brazil. In the proportion of unpaid work in developed and developing economies, there is a higher proportion of unpaid work for women than for men. Women often engage in domestic work such as cooking, cleaning, and childcare, while men engage in paid work. In developing economies, both men and women engage in unpaid work due to the lack of access to technology and machinery that would make work easier for them.

The impact of differences in the proportions of unpaid work on the relative levels of economic well-being for men and women is in developed economies, women's engagement in unpaid work reduces their participation in paid work, making it difficult for them to achieve financial independence. In developing economies, unpaid work limits women's participation in education and employment, further perpetuating the cycle of poverty.

Therefore, the differences in the proportions of unpaid work have a negative impact on the economic well-being of women in both developed and developing economies.

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you have borrowed $50,000 at an interest rate of 12%. equal payments will be made over a three-year period. (the first payment will be made at the end of the first year.) what will the annual payment be, and what will the interest payment be for the second year?

Answers

The annual payment is calculated to be is approximately $34,305.26. And The interest payment be for the second year will be approximately $4,116.63.

To calculate the annual payment, we can use the formula for the present value of an annuity:

PMT = PV x (r / (1 - (1 + r)⁻ⁿ))

where:

PMT = annual payment

PV = present value of the loan = $50,000

r = interest rate per period = 12% / 1 year = 0.12

n = number of periods = 3

Plugging in the values, we get:

PMT = 50000 x (0.12 / (1 - (1 + 0.12)⁻³)) ≈ $19,854.42

Therefore, the annual payment will be approximately $19,854.42.

To calculate the interest payment for the second year, we first need to calculate the outstanding balance of the loan after the first year's payment. Since the first payment is made at the end of the first year, the outstanding balance at the beginning of the second year will be the present value of the remaining two-year annuity, which can be calculated as follows:

PV = PMT / r x (1 - (1 + r)⁻ⁿ)

where:

PMT = annual payment = $19,854.42

r = interest rate per period = 12% / 1 year = 0.12

n = number of periods = 2

Plugging in the values, we get:

PV = 19854.42 / 0.12 x (1 - (1 + 0.12)⁻²) ≈ $34,305.26

Therefore, the outstanding balance at the beginning of the second year is approximately $34,305.26.

To calculate the interest payment for the second year, we can multiply the outstanding balance by the interest rate:

Interest payment = Outstanding balance x Interest rate

= $34,305.26 x 0.12

= $4,116.63

Therefore, the interest payment for the second year will be approximately $4,116.63.

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ilsa works as a clerk for java cafe at minimum wage. the minimum-wage rate is revised by congress group of answer choices periodically by congress, or sometimes by a local city or state government. annually, according to the rate of inflation. whenever the president issues an executive order to revise the rate. every seven years, according to changes in the cost of living.

Answers

Ilsa works as a clerk for java cafe at minimum wage. The minimum-wage rate is revised annually, according to the rate of inflation (option B).

The minimum wage is the lowest wage that a worker can be compensated by law or contract. It is established by law or union agreement, and it is the lowest wage that an employer can legally pay their employees. It has been implemented as a protective measure to ensure that employees receive fair compensation.

Many nations have minimum-wage laws in place to safeguard workers' rights and prevent companies from exploiting them.

So, according to the rate of inflation, the minimum-wage rate is revised annually. Option B is the correct answer.

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generally, the agent owes the principal only 4 duties (performance, notification, obedience, and accounting). group of answer choices true false

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The answer is True. Only four obligations are owed by the agent to the principal: performance, notification, obedience, and accounting notification.

The refusal of an agent to perform an unlawful or tortious conduct for a principal does not violate the agent's duty of allegiance to the principal and will not subject the principal to liability. Any transaction governed by the agency cannot result in a hidden profit for the agent.

Two types of obligations exist between the agent and the principal: fiduciary and general. The fiduciary duty is the obligation to always behave in the principal's best interests. In this case, that means avoiding self-dealing and maintaining confidentiality.

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opal earned 7.5 percent in her savings account. if she is in the 28 percent tax bracket, what is her after-tax savings rate of return?

Answers

Opal's after-tax savings rate of return is 5.4 percent. This means that after accounting for taxes, she earned a lower rate of return on her savings than the 7.5 percent advertised by the bank.

Opal's after-tax savings rate of return can be calculated using the formula:

After-tax rate of return = Pretax rate of return x (1 - Tax rate)

Here, Opal's pretax rate of return is 7.5 percent, and her tax rate is 28 percent.

After-tax rate of return = 7.5% x (1 - 0.28)

After-tax rate of return = 7.5% x 0.72

After-tax rate of return = 5.4%

Therefore, Opal's after-tax savings rate of return is 5.4 percent. This means that after accounting for taxes, she earned a lower rate of return on her savings than the 7.5 percent advertised by the bank. It is important to consider the after-tax rate of return when comparing investment options, as taxes can significantly impact the actual return earned by an investor.

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akers co. owned 8,000 shares (80%) of the outstanding 8%, $100 par, preferred stock and 70% of the outstanding common stock of brickman co. assuming there are no excess amortizations or intra-entity transactions, and brickman reports net income of $810,000, what is the noncontrolling interest in the subsidiary's income?

Answers

The noncontrolling interest in the subsidiary's income is $243,000.

akers co. owned 8,000 shares (80%) of the outstanding 8%, $100 par, preferred stock and 70% of the outstanding common stock of brickman co.

Assuming there are no excess amortizations or intra-entity transactions, and brickman reports net income of $810,000, the noncontrolling interest in the subsidiary's income is $243,000.

How to find the noncontrolling interest in the subsidiary's income?

To find the noncontrolling interest in the subsidiary's income, we need to multiply the net income of Brickman Co. by the percentage of outstanding common stock not owned by Akers Co.

Noncontrolling interest in net income = Net income of subsidiary x (1 - parent company's ownership percentage)

Given:

Net income of Brickman Co. = $810,000

Akers Co. owns 70% of the common stock

Therefore, the noncontrolling interest in the subsidiary's income is: Noncontrolling interest in net income = $810,000 x (1 - 0.70) = $810,000 x 0.30= $243,000.

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2. which options correctly complete the following sentence? a firm can improve its cash conversion cycle by: i. increasing its collection period. ii. increasing its payables period. iii. increasing days in inventory.

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A firm can improve its cash conversion cycle by ii) increasing its payables period.

The cash conversion cycle (CCC) is a financial metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flow from sales. A shorter CCC means that the company is converting its resources into cash faster, which is generally seen as a positive sign.

To improve the CCC, a company can take various measures, such as reducing its inventory levels or speeding up its collection of receivables. However, increasing its collection period (i) or days in inventory (iii) would lengthen the CCC, not shorten it.

On the other hand, increasing its payables period (ii) would allow the company to delay payment to its suppliers, which would free up cash and shorten the CCC. Therefore, option ii. is the correct answer.

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the full-employment level of output is $1000 above the current level of output. how much should the government change taxes in order for the new equilibrium to be equal to the full-employment level of output?

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In order to achieve full-employment level of output, the government needs to take certain measures such as changing taxes.

In this scenario, if the full-employment level of output is $1000 above the current level of output, then the government needs to increase taxes in order to reduce aggregate demand and bring the economy towards the full-employment level.


The increase in taxes will reduce disposable income, which will lead to a reduction in consumption spending. This reduction in consumption spending will ultimately reduce the aggregate demand in the economy. The reduction in aggregate demand will cause a decrease in the level of output until it reaches the full-employment level of output.


However, the extent of the tax increase required to achieve the full-employment level of output cannot be determined without knowing the slope of the aggregate demand curve. If the aggregate demand curve is steep, then a small tax increase will have a significant impact on aggregate demand, and the government may not need to increase taxes by a large amount. Conversely, if the aggregate demand curve is flat, then the government may need to increase taxes by a large amount to achieve the full-employment level of output.


In conclusion, the government needs to increase taxes to reduce aggregate demand and achieve the full-employment level of output. However, the extent of the tax increase required depends on the slope of the aggregate demand curve.

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select all that apply the lowest rate of unemployment compatible with price stability, variously estimated at between 4 and 6%, is . multiple select question. inflation-adjusted unemployment full employment natural rate of unemployment gdp employment

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That all apply the lowest rate of unemployment compatible with price stability, variously estimated at between 4 and 6%, are Inflation-adjusted unemployment, Full employment, and Natural rate of unemployment.

The natural rate of unemployment (NRU) refers to the level of unemployment that occurs when the labor market is in a state of equilibrium, with the economy operating at its potential output level. This means that all available resources, including labor, are being utilized efficiently, and there is no cyclical unemployment caused by fluctuations in the business cycle.

Estimating the NRU is challenging, as it can vary over time and across countries depending on factors such as demographics, technology, and institutional factors like labor market regulations. However, it is an important concept for policymakers to consider when making decisions about monetary and fiscal policy, as it provides a benchmark for assessing whether the economy is operating at full capacity or is experiencing imbalances that may require intervention.

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which of the following issues is a potential disadvantage of online ads even though the cost per viewer for online ads can be cheaper than conventional tv commercials? question 21 options: advertising fraud due to scammers and bots limited color palettes inability to overlay text on images lack of sound content-licensing headaches

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Advertising fraud due to scammers and bots is a potential disadvantage of online ads even though the cost per viewer for online ads can be cheaper than conventional TV commercials. Option A is correct.

Online advertising fraud occurs when scammers use bots or other automated tools to generate fake impressions or clicks on online ads, making it appear as though the ad is receiving more traffic than it actually is. This can lead to wasted advertising spend, as well as a loss of trust in the effectiveness of online advertising.

While there are other potential disadvantages of online ads, such as limited color palettes or content-licensing headaches, advertising fraud is a particularly significant issue that can undermine the ROI of online advertising campaigns.

Hence, A. is the correct option.

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--The given question is incomplete, the complete question is

"Which of the following issues is a potential disadvantage of online ads even though the cost per viewer for online ads can be cheaper than conventional tv commercials? A) advertising fraud due to scammers and bots B) limited color palettes inability to overlay text on images C) lack of sound content-licensing headaches."--

a purchase order is often used in the industry and is defined as: group of answer choices the slip of paper a server uses to communicate an order to the kitchen an order to the kitchen from a server for a special customer request an order to purchase a certain quantity of an item at a specific price customer pre-orders for menu items called in before they arrive

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A purchase order is a commercial document issued by a buyer to a seller indicating the type, quantities, and agreed-upon prices for products or services.

It serves as a formal contract between the buyer and seller and is used to control the purchasing process, including budgeting and inventory control. It includes important information such as the buyer and seller's name and address, the product or service description, quantity, price, delivery date, payment terms, and other relevant details.

Purchase orders are used to ensure that goods or services are ordered and received on time, at the right quantity and quality, and at the agreed-upon price.

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the government decides to impose a per-unit tax on the bottle industry to help cover revenue shortfalls in the annual budget. in this case, the burden of the per-unit tax is

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The burden of the per-unit tax on the bottle industry will be shared by both the producers and the consumers.

When the government puts a per-unit tax on the bottle business, the producers' expense of making each unit of bottles rises. As a consequence, producers will be required to pay the tax straight to the government, raising their manufacturing costs.

In reaction, manufacturers may choose to raise the price of their goods in order to keep profit margins, or they may choose to decrease their supply of bottles in order to escape paying the tax. If manufacturers raise the price of their bottles, the tax load will be passed on to customers in part or entirely, based on the price elasticity of demand for bottles.

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which of the following is not an example of a performance obligation? a.performing contractually agreed-upon tasks b.granting a right to use a tangible asset c.arranging for another party to transfer goods or services d.transferring produced goods or reselling purchased goods

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The statement that is not an example of a performance obligation is option (d) transferring produced goods or reselling purchased goods.

A performance obligation is a promise in a contract with a customer to transfer goods or services that are distinct and capable of being distinct. It is an obligation that a company has to perform a task, provide a service, or deliver a product.

Options a, b, and c all describe examples of performance obligations

a. Performing contractually agreed-upon tasks is a performance obligation because it involves a promise to do something for the customer.

b. Granting a right to use a tangible asset is a performance obligation because it involves transferring a right to use something to the customer.

c. Arranging for another party to transfer goods or services is a performance obligation because it involves facilitating the transfer of goods or services to the customer.

Option d, transferring produced goods or reselling purchased goods, is not a performance obligation because it does not involve a promise to transfer distinct goods or services to the customer. Rather, it involves the transfer of ownership of a good that has already been produced or purchased.

Therefore, the correct option is (d) transferring produced goods or reselling purchased goods.

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tanya wants to give her daughter 25,000 in 8 years to start to her own business. how much should tanya invest today at an annual interest rate of 8%

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Tanya should invest $14,551.78 today at an annual interest rate of 8% to give her daughter $25,000 in 8 years.

To calculate how much Tanya should invest today, we can use the future value formula for compound interest;

Future value = Present value x [tex](1+ interest rate)^{time}[/tex]

where; Present value is the amount Tanya needs to invest today

Interest rate is the annual interest rate of 8%

Time is the number of years, which is 8 years in this case

Future value is the amount Tanya wants her daughter to have in 8 years, which is $25,000

So we can plug in the values we know and solve for the present value:

$25,000 = Present value x (1 + 0.08)^8

$25,000 = Present value x 1.717

Present value = $25,000 / 1.717

Present value = $14,551.78

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