You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both $1.65 in dividends and $25 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 11% return.
Answers
Answer:
Present value = $24.009009 rounded off to $24.01
The maximum price that should be paid for a share today is $24.01
Explanation:
To calculate the price of the stock today that should be paid, we can use the discounted cash flow approach. It calculates the value of stock today based on the present value of future values of cash flows that are expected from the stock. Thus the present value of a stock that is expected to pay a dividend and sell for a given price in 1 year can be calculated as follows,
Present Value = [D1 + P1] / (1+r)
Where,
D1 is the next dividend expected from the stock P1 is the price of the stock in 1 yearr is the required rate of returnPresent value = [1.65 + 25] / (1+0.11)
Present value = $24.009009 rounded off to $24.01
Related Questions
XYZ Co is considering a major expansion program that has been proposed by the company’s information technology group. To decide whether the company will undertake this major expansion project, the company paid McLindsay Co., a large consulting company, a fee of $2 million to calculate the costs and benefits of the program, but they will refund half of that cost back to XYZ if the company does not move forward with the project. McLindsay reported that the expansion project will have an upfront cost of $20 million for assets, which are depreciated straight line to zero over the four-year horizon of the project. The company does not need to invest in net working capital (i.e., NWC = 0). McLindsay also expects that the program will generate an operating cash flow equal to $10 million the first year and will expand by 20% per year until the project is liquidated at the end of year four. The liquidation value from selling the equipment will be $4 million. You are an assistant to the CFO of the company and your first task is to advise XYZ whether the company should undertake the investment. The CFO has provided you with the following data, which he believes may be relevant to your task (all the market data are current). The firm’s tax rate is 20%. The market data on XYZ Co’s securities are:
Debt
oBond A: 42,750 bonds with a 5.4% coupon rate, with 20 years to maturity selling at par. oBond B: 55,000 bonds with a 4% coupon rate, with 15 years to maturity selling at par.
Assume that both bonds have a par value of $1,000 and they make semiannual payments.
Common stock
o 1,000,000 shares outstanding, selling for $95 per share; XYZ Co just paid a dividend of $4 per share and is expected to increase its future dividends at a constant rate of 5%. The firm’s beta is 1.8. Assume the risk-free rate is 2% and the market return is 8%.
Answer the following questions and show all the formulas and calculations (if using a financial calculator show all the entries).
a. What is XYZ Co’s cost of debt?
b. What is XYZ Co’s cost of equity using the CAPM?
c. What is XYZ Co’s cost of equity using the dividend growth model?
d. What is XYZ Co’s cost of capital? (for your cost of equity calculations, use the average of cost of equity you calculated in the last two parts).
e. Find the cash flows from assets (CFFA) of the project and then compute the NPV of the project. Accounting for all relevant expenses, should the firm undertake the expansion project?
f. Suppose instead that (1) Bond A and Bond B are priced below par and (2) the common stock is selling for $142.50 per share and the last dividend paid was $6. Would the firm’s WACC be higher, lower, or the same as what you found in part (d)? Explain.
Answers
a. To calculate the cost of debt, we need to find the yield to maturity (YTM) of each bond. We can calculate the YTM of Bond A as 5.4% and the YTM of Bond B as 4%. Therefore, the cost of debt for XYZ Co is the weighted average of the YTM of each bond, where the weights are the proportion of the total market value of debt that each bond represents. Assuming that all bonds are selling at par, the total market value of debt is $97,750,000. Thus, the weight of Bond A is 42,750/97,750 = 0.4376 and the weight of Bond B is 55,000/97,750 = 0.5624. Therefore, the cost of debt is:
Cost of Debt = 0.4376 × 5.4% + 0.5624 × 4% = 4.48%
b. Using the CAPM, we can calculate the cost of equity as:
Cost of Equity = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate)
= 2% + 1.8 × (8% - 2%)
= 13.6%
c. Using the dividend growth model, we can calculate the cost of equity as:
Cost of Equity = (Dividend / Price) + Growth Rate
= ($4 / $95) + 5%
= 9.3%
d. To calculate the cost of capital, we need to find the weighted average of the cost of debt and the cost of equity, where the weights are the proportion of the total market value of debt and equity that each component represents. Assuming that the total market value of equity is $95,000,000, the weight of debt is 97,750,000/(95,000,000 + 97,750,000) = 0.5073 and the weight of equity is 1 - 0.5073 = 0.4927. Therefore, the cost of capital is:
Cost of Capital = 0.5073 × 4.48% + 0.4927 × 13.6% = 9.54%
e. To calculate the cash flows from assets (CFFA) of the project, we need to find the operating cash flows (OCF) and the net capital spending (NCS) for each year of the project. Using the given data, we can calculate the OCF for each year as:
Year 1: OCF = $10,000,000
Year 2: OCF = $12,000,000 (20% increase from year 1)
Year 3: OCF = $14,400,000 (20% increase from year 2)
Year 4: OCF = $17,280,000 (20% increase from year 3)
The net capital spending (NCS) for year 0 is the upfront cost of the project, which is $20,000,000. The NCS for year 4 is the liquidation value of the equipment, which is $4,000,000. The NCS for years 1 to 3 is zero since there is no net working capital requirement.
Calculating the CFFA for each year:
Year 0: CFFA = - $20,000,000
Year 1: CFFA = $10,000,000 - $0 - $20,000,000 = -$10,000,000
Year 2: CFFA = $12,000,000 - $0 = $12
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Which is an example of a financial institution? (1 point)
A. government regulatory agency of money
B. the IRS
C. a group of investors
D. a retail or commercial bank
Answers
Answer:
D) a retail or commercial bank
Explanation:
An example of a financial institution is a retail or commercial bank. Thus the correct option is D.
What is a financial institution?An institution that is in the industry of managing monetary and financial transactions, such as savings, loans, and investments, in order to assist with finances that require repayment at a later time and carry a specific rate of interest is known as a financial institution.
A bank is a type of financial institution that enables customers to deposit and withdraw cash as well as borrow money at a set interest rate for use in investments which is repaid by them on a later date with a certain rate of interest.
Reduced transaction fees, reduced likelihood, and increased liquidity are the goals of the economic system in order to create a platform for the establishment of new businesses that strengthen the national economy.
Therefore, option D is appropriate.
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The process of allocating funds to projects and investments includes the following:
A. Analysis
B. Selection
C. Monitoring
D. Evaluating performance
Analyze or explain any three of the above.
Answers
The process of allocating funds to projects and investments involves several important steps, including analysis, selection, and monitoring. By following these steps, organizations can make informed decisions about where to invest their resources and ensure that their investments are delivering the expected returns.
The process of allocating funds to projects and investments involves several important steps, including analysis, selection, monitoring, and evaluating performance. Here are explanations of three of these steps:
Analysis: This step involves gathering and analyzing information about potential projects and investments to determine whether they are financially viable and aligned with the organization's goals and objectives. This includes conducting market research, analyzing financial statements and projections, assessing risks, and identifying potential barriers to success. The analysis phase helps decision-makers to make informed choices about which projects and investments to pursue.
Selection: Once potential projects and investments have been analyzed, the next step is to select the most promising ones. This involves using the information gathered during the analysis phase to compare options and choose the projects and investments that are most likely to provide the greatest returns on investment. The selection process may involve developing criteria for evaluating potential options, ranking them based on their financial potential, and weighing the costs and benefits of each option.
Monitoring: Once projects and investments have been selected and funded, it is important to monitor their progress and performance over time. This involves regularly reviewing financial and operational data to identify any potential issues or risks, and taking action to address them. Monitoring can help decision-makers to stay informed about the status of their investments, identify opportunities for improvement, and make adjustments to their funding strategies as needed.
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What would it cost an insurance company to replace a family's personal property that originally cost $42,000
Answers
Answer: $48,300
Explanation:
The last part of the question is:
The replacement costs for the items have increased 15 percent.
The Insurance company will have to replace the total value of the family's property including whatever replacement costs that may have arisen.
Total cost = 42,000 * ( 1 + 15%)
= $48,300
Alfred E. Old and Beulah A. Crane, each age 42, married on September 7,2017. Alfred and Beulah will file a joint return for 2019. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304. Alfred was divorce from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2019. In addition, in January 2019, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Alfred's salary for 2019 is $150,000. He is an executive working for Cherry.Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah recently graduated from law school and is employed by Legal Aid Society.Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives salary of $42,000 in 2019. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Alfred and Beulah had interest income of $500. They received $1,900 refund on their 2018 state income taxes. They claimed the standard deduction on their 2018 Federal income tax return. Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2019. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Alfred and Beulah have never owned or used any virtual currency, and they do not want to contribute to the Presidential Election Campaign. Compute the Old's net tax payable (or refund due) for 2019. Suggested software: ProConnect Tax Online
Answers
To compute the Olds' net tax payable (or refund due) for 2019, we need to gather all the relevant information and calculate their taxable income, apply the appropriate tax rates, deductions, and credits. Since the tax calculation involves various factors and tax laws, it would be best to use tax software such as ProConnect Tax Online or consult with a tax professional. The software will streamline the process and ensure accurate calculations based on the specific tax laws and regulations applicable to the Olds' situation.
Which of these is not an example of good practice when differentiating phonological awareness instruction?
a.
Increasing the intensity of instruction by teaching in smaller group sizes.
b.
Expecting all children to be able to produce rhyming words at the same time of the year.
c.
Increasing the intensity of instruction by giving individual children more opportunities to respond.
d.
Supporting children's understanding of an activity by using visual supports.
Answers
The option that is not an example of good practice when differentiating phonological awareness instruction is (b) Expecting all children to be able to produce rhyming words at the same time of the year.
What is good practice?Recognizing that children learn at various speeds and have varied degrees of preparedness is a key component of good practice in differentiating phonological awareness training. It is unrealistic to anticipate that all kids will develop at the same rate.
Each child's unique requirements and talents are taken into account while differentiating instruction. Therefore, it is inconsistent with the ideas of differentiation to expect all kids to be able to come up with rhymes at the same time of the year.
Therefore the correct option is b.
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why did the duck cross the road?
will mark brainiest for right answer!
think hard
Answers
Answer:
because it was the chicken's day off
Explanation:
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Which descriptions best characterize the young Dr. Jekyll? Check all that apply.
-He was rich.
-He was in excellent shape.
-He was family oriented.
-He was famous.
-He was destined for a good future.
Don't mind the question btw.
My other account got deleted, Feel free to add me!!
Answers
Answer:
The descriptions that best characterize the young Dr. Jekyll include the following:
1. -He was famous.
2. -He was rich.
3. -He was in excellent shape.
Explanation:
He was an eccentric Dr who was researching on the possibility of discovering a drug that will help mankind. During his research, he noticed that, when ever he take a particular drug, it alters his personality and body which would bring out the darkest thoughts in him.
The more he took the drug, the more him slips into darkness and destruction which always makes him sober after transforming back to his normal personality.
Answer:
1, 2, 5
Explanation:
He was rich.
He was in excellent shape.
He was destined for a good future
(EDGE2020)
New Hampshire’s legislature has declared a busy roundabout a hazard because of the number of semi accidents that occur there. They’ve hired an independent consultant who specializes in traffic flow to make recommendations for improvement. What tasks will this person perform for the state?
A. working with police to study accidents and designing a traffic-improvement plan for the roundabout
B. working with police to step up enforcement after analyzing traffic flow information
C. analyzing traffic flow information and convincing shipping companies to use a different route
D. analyzing traffic flow and designing a traffic-improvement plan for the roundabout
Answers
Answer:
d
Explanation:
This person's duties for the state will include assessing traffic flow and creating a roundabout traffic-improvement plan. As a result, choice (D) is accurate.
What do you know about New Hampshire?The Northeastern United States' state of New Hampshire is located in the New England region. It shares borders with the Canadian provinces of Quebec to the north, Maine and the Gulf of Maine to the east, Massachusetts to the south, Vermont to the west, Maine, and the Gulf of Maine.
New Hampshire is the tenth least populous and fifth least populous of the 50 states in the United States, according to the 2020 census, which had 1,377,529 people as citizens. The state's major city is Manchester, while Concord is the capital. The state of New Hampshire is known for its "Live Free or Die" motto, which refers to its participation in the American Revolutionary War.
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5.24 The United States Golf Association requires that the weight of a golf ball must not exceed 1.62 oz.The association periodically checks golf balls sold in the United States by sampling specific brands stocked by pro shops....
Answers
The probability that none of the randomly selected golf balls exceed 1.62 oz in weight will be 0.7857.
How to calculate probability?It should be noted that probability simply means the likelihood of the occurence of an event.
From the table given, the probability that none of the randomly selected golf balls exceed 1.62 oz in weight will be 0.7857.
The probability that at least one of the randomly selected golf balls exceed 1.62oz will be:
= 1 - 0.7857
= 0.2143
The probability of x is being greater than or equal to 3 will be 0.9999.
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Why consumer is important in economy?; How is the economy affected by wise consumers?; How does consumer demand affect a company's ability to make profit?; What is the consumer demand?
Answers
Rooms booked well in advance may receive a lower rate than those rooms booked at
the last minute. What term best refers to this concept?
ADR
Orack rate
yield management
accounting services
Answers
Answer:
Explanation:
The answer is c. 200 rooms
You need some money today and the only friend you have that has any is a miser. He agrees to loan you the money you need, if you make payments of $30 a month for the next six months. In keeping with his reputation, he requires that the first payment be paid today. He also charges you 2 percent interest per month. How much total interest is he charging?
Answers
Answer:
$8.6
Explanation:
Calculation for How much total interest is he charging
First step is to calculate the present value (PV) using financial calculator by using this formula
PV=PV(Rate,Nper,PMT,FV,Type)
Rate represent Interest Rate
Nper represent Period
PMT represent Payment
FV represent Future Value
Type = 1 which represent the annuity due reason been that the 1st payment is to be made today
Let plug in the formula
Rate = 2%
Nper = 6
PMT = $30
FV = 0
Type = 1
Hence,
PV = PV(2%,6,30,0,1)
PV= $171.40
Since we have known the PV the last step is to calculate the total interest
Using this formula
Total interest =( PMT*Nper)-PV
Let plug in the formula
Total interest = ($30*6) - $171.40
Total interest = $180 - $171.40
Total interest = $8.6
Therefore the amount of the total interest he will be charging is $8.6
Answer:
$8.6
Explanation:
I/Y = Rate = 2.0
PMT = -$30
N = 6
Future Value = $0.00
First we need to set the calculator to annuity due and calculate the CPT PV. We get the Value of loan, $171.40
Interest payment = PMT x 6 - Present value of loan
Interest payment = $30*6 - $171.40
Interest payment = $180 - $171.40
Interest payment = $8.6
Thus, the total interest he is charging is $8.6
Federal debt now stands at $23 trillion USD. You must pay 5% simple interest on the debt at the end of the year ... and the US Congress over-spent by another $500 billion deficit this year! Calculate the anticipated new Federal debt at the end of the year (type a number expressed in trillions of dollars)
Answers
Answer:
ion know im dumb
Explanation:
Chapter 14: Applying Excel Data Example E Cost of equipment needed $60,000 Working capital needed $100,000 Overhaul of equipment in four years $5,000 Salvage value of the equipment in five years $10,000 Annual revenues and costs: Sales revenues $200,000 Cost of goods sold $125,000 Out-of-pocket operating costs $35,000 Discount rate 14% Enter a formula into each of the cells marked with a
Answers
Answer:
Net present value (NPV) = $31,493
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the upper part of Sheet1 of the attached excel file for the complete question.
Also note: See the lower part of Sheet1 of the attached excel file for the answer to this question.
From the the lower part of Sheet1 of the attached excel, we have:
Net present value (NPV) = $31,493
What companies value comparative advantage in their business decisions?
Answers
A favorable environment for producing a certain type of good gives a company a comparative advantage in producing that good.
What is an comparative advantage?The ability of an economy to produce a specific good or service at a lower opportunity cost than its trading partners is referred to as comparative advantage. The concept of comparative advantage is used to explain why companies, countries, or individuals benefit from trade.
A variety of factors influence comparative advantage. A comparative advantage allows a company to lower its finished product prices, potentially leading to more sales. Before designing and manufacturing products, a company should determine which ones have a comparative advantage.
Therefore, companies value favorable environment as an comparative advantage in their business decisions.
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1. Which of the following is NOT a reason why employees lose their jobs?
A. Failure to follow directions
B. Good attendance
C. Poor quality of work
D. Incompetence
Answers
Answer:B. Good attendance
Explanation: Employers want their employees to have good attendance, this is a good quality, it is NOT a reason why employees lose their jobs.
It is not a reason why employees lose their jobs is Good attendance. The reason employees lose their jobs are failure to follow directions, poor quality of work, incompetence. The correct option is (B).
What do you mean by the employees?A person who receives compensation for working for a company or another individual is called an employee.
A person who is paid to work for another person or business is an employee. Employees need only be compensated for their work by an employer; they are not required to work full-time in order to qualify.
The true assets of a company are its personnel. They are the ones who effectively contribute to an organization's smooth operation. They work really hard to deliver what they promise and complete the specified tasks by the deadline.
The foundation of a solid, long-lasting corporation is its workforce. No matter what level, employees are in charge of the company.
Therefore, it is not a reason why employees lose their jobs is Good attendance. The reason employees lose their jobs are failure to follow directions, poor quality of work, incompetence.
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which of the following accounts are listed in a post-closing trial balance? (select all that apply.) check all that apply salaries expense salaries expense supplies supplies retained earnings retained earnings dividends dividends service revenue service revenue
Answers
Salaries expense, suppliers and dividends are listed in post-closing trial balance.
What is Salaries expense?Salaries expense is the cost incurred by a company for the compensation paid to its employees. This includes all forms of payment to employees, including salaries, wages, bonuses, commissions, and benefits. The salaries expense is a significant expense item for most businesses, and it is critical to accurately track and record all employee-related costs to ensure accurate financial statements. In addition, the salaries expense also includes employer contributions to employee benefits such as health insurance, retirement plans, and payroll taxes. It is important for companies to budget for salaries expense, as it is a significant factor in determining profitability and cash flow. Effective management of salaries expense requires a combination of proper staffing levels, competitive compensation, and efficient payroll processes.
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7) Restaurants and bars can sell alcohol without permission from the state.
True or False
Answers
It is false that Restaurants and bars can sell alcohol without permission from the state.
What is licensing?The process of getting a license from a government agency or other regulatory body to carry out a specific activity or conduct business is referred to as licensing.
In the majority of areas, in order to lawfully sell alcohol, restaurants and bars need to get a license or permit from the state or local government.
Depending on the state and the type of establishment, different rules and regulations may apply to getting a license.
The establishment may face fines, license suspension or revocation, as well as possible criminal charges if it sells alcohol without a license or in violation of state laws and regulations.
Thus, the given statement is false.
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QUESTION 11
Whether targeting consumers or resellers, marketers need to focus on:
O Buying center synergy.
O Corporate profit sharing
O Reducing derived demand
O Creating value for their customers
Answers
Marketers need to focus on creating value for their customers. The Option D.
Why is creating value for customers crucial for marketers?Creating value for customers is crucial for marketers as it directly impacts customer satisfaction and loyalty. When marketers prioritize creating value, they focus on understanding customer needs and preferences, developing products or services that meet those needs and delivering exceptional customer experiences.
By doing so, they differentiate themselves from competitors, build strong customer relationships and drive business growth. When customers perceive value in what a company offers, they are more likely to make repeat purchases.
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A down payment is:
O
a) The monthly payment you make towards your mortgage.
Ob) Part of your closing costs.
c)
The initial sum of money that you pay toward your house.
A homeowner's final mortgage payment.
d)
Submit
Answers
Answer:
C
Explanation:
Down payment is something that you pay upfront before getting anything.
16. Small businesses account for approximately
percent of the gross domestic product in the United States.
A. 70
B. 30
C. 15
D. 60
The correct answer is A
Answers
Answer:
All small businesses in The United states of America all take 70% of their gross domestic product
60 percent of the gross domestic product in the United States. Thus, option (d) is correct.
Depending on how small enterprises are defined and the time period taken into consideration, the actual percentage may change. All authorities, however, concur that small enterprises significantly boost the American economy.
Small businesses maintain the American ideal by generating jobs, fostering innovation, and increasing competitiveness. They are crucial to the nation's economic growth and success because they are more robust in difficult times.
Therefore, option (d) is correct.
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Gamma Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31:
1. A one-year bank loan of $720,000 at an annual interest rate of 6% had been obtained on December 1.
2. The company's pays all employees up-to-date each Friday. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. Employees earn a total of $12,800 per week.
3. On December 1, rent on the office building had been paid for three months. The monthly rent is $7,000.
4. Depreciation of office equipment is based on an estimated useful life of five years. The balance in the Office Equipment account is $12,360; no change has occurred in the account during the year.
5. All fees totaling $19,800 were earned during the month for clients who had paid in advance.
What should be the balance of the Prepaid Rent?
a. $0
b. $7,000
c. $14,000
d. $21,000
Answers
Answer; c. $14,000
Explanation
On December 1, rent had been paid for 3 months. At a rate of $7,000 a month this will come to;
= 7,000 * 3
= $21,000
The Prepaid rent account will reduce every month by the rent due for that month. The balance on the Prepaid account as at December 31 will therefore have reduced by one month from December 1.
= 21,000 - 7,000
= $14,000
3. Find the amount of tax owed: residential property valued at $162,000.00; assessed at 15%; taxed at $12.00 per hundred
dollars worth of property.
Answers
The amount of tax owed for the residential property is $29.16.
How to calculate the amount of tax owed1. Calculating the assessed value of the property by multiplying the property value by the assessment rate (expressed as a decimal):
Assessed value = Property value x Assessment rate
Assessed value = $162,000.00 x 0.15
Assessed value = $24,300.00
2. Calculate the taxable value of the property by dividing the assessed value by 100:
Taxable value = Assessed value / 100
Taxable value = $24,300.00 / 100
Taxable value = $243.00
3. Calculate the amount of tax owed by multiplying the taxable value by the tax rate:
Tax owed = Taxable value x Tax rate
Tax owed = $243.00 x ($12.00 / $100.00)
Tax owed = $29.16
Therefore, the amount of tax owed for the residential property is $29.16.
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At year-end, ABC Company is completing its closing process. Use the following account balances to demonstrate the closing of the Dividends account.
Account Debit Credit Consulting Fees $5,000
Rental Revenue $2,000
Wages Expense $700
Rent Expense $1,900
Dividends $500
A debit Income Summary for $500.
Credit Dividends for $500.
Credit Retained Earnings $500
Debit Dividends for $500.
A credit Income Summary for $500.
Debit Retained Earnings $500.
Answers
Answer:
Debit Retained Earnings $500.Credit Dividends for $500.Explanation:
Dividends are payments to shareholders as a means of sharing company profits to them.
As they are a means of sharing profits, they will be paid from the Retained Earnings account. As this is an Equity account, it should be debited when it is to be reduced so Retained Earnings will be debited by $500 which is the dividend amount.
The dividend account will be credited to indicate that this is a debt that needs to be paid to shareholders so the Dividends account will be credited by $500.
Businesses rarely consider profits when supplying goods and services.
True of False
Answers
1. Which of the following words is generally used to describe what managers do as opposed to what leaders do?
O A. Organize
O B. Inspire
O C. Innovate
O D. Influence
Answers
17-1: Many multinational and global companies use ethnocentric staffing in their operations abroad. Why do you think a company might prefer to have someone from home country in top management positions? If you were hired as a consultant, would you recommend that a multinational or global business change its policy? Explain.
17-2: Culture shock is commonly experienced by people living in an unfamiliar culture. Yet not all people experience it, and not all people feel its effects in the same way nor to the same extent. Some experts advise psychological testing to determine one's likelihood of handling such an adjustment. What psychological attributes do you suppose are advantageous in this situation? What sort of training do you think could help someone adapt more easily to a new culture? Explain.
Answers
Many multinational and global companies use ethnocentric staffing in their operations abroad for reasons such as cultural familiarity, language similarity. psychological attributes that are beneficial in adapting are flexibility, desire to learn more and accept others openly.
In addition to encouraging consistency in management procedures, an ethnocentric staffing policy may also make communication and decision making easier. However, such a policy might also restrict diversity and make it more difficult for the business to respond to local market circumstances or capitalize on local talent. If appointed as a consultant I would suggest multinational companies to adopt a more geocentric staffing strategy that promotes diversity and inclusion while striking a balance between local and global perspectives.
The psychological qualities of openness to new experiences, flexibility, empathy, and resilience are helpful in adjusting to a new culture. These characteristics increase a person propensity to be receptive to new ideas, adaptable to novel circumstances and equipped to deal with the difficulties of integrating into a foreign culture. Intercultural communication classes and language and cultural immersion programs are all types of training that could make it easier for someone to adapt to a new culture.
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Johnson Cleaning Service has the following account balances on December 31, 20X1.
Cash
Equipment
Accounts payable
Elicia Johnson, Capital
$ 76,000
184,000
96,800
163,200
Answers
Based on the type of accounts they are, the proper classification will be:
Cash - Debit balance.Equipment - Debit balance. Accounts payable - Credit balance. Capital - Credit balance. Classifying the balancesThe question asks that the above balances are put on the appropriate side of a T Account.
The proper way to do this will be:
Dr. Account Title Amount Account title Amount Cr.
Cash $76,000 Accounts payable $96,800
Equipment $184,000 Elica Capital $163,200
In conclusion, assets go to the left side and capital and liabilities to the right.
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Accounts classification: Cash - Debit balance, Equipment - Debit balance, accounts payable - Credit balance, Capital - Credit balance.
T-account is a visual representation of an account used in bookkeeping. The T-account gets its name from its resemblance to the letter "T."
A T-account consists of two sides: the left side is called the debit side (or "dr" for "debit"), and the right side is called the credit side (or "cr" for "credit").
The proper T- account of the Johnson Cleaning Service, will be:
Dr. Account Title Amount Account title Amount Cr.
Cash $76,000 Accounts payable $96,800
Equipment $184,000 Elica Capital $163,200
Total Credits $260,000 Total debits $260,000
Thus, this is the proper way of showing a T- account.
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Johnson Cleaning Service has the following account balances on December 31, 20X1.
Cash $ 76,000
Equipment 184,000
Accounts payable 96,800
Elicia Johnson, Capital 163,200
Enter the above balances on the proper side of the T-account.
What notation, if any, is made in a formal business letter that contains additional documents in the envelope?
“More”
“Enc.” or “Att.”
“Add plus 1”
None of the above
Answers
Answer:
The notation that is made in a formal business letter that contains additional documents in the envelope is:
“Enc.” or “Att.”
Explanation:
"Enc." means "Enclosures," while "Att." means "Attention." These notations draw the attention of the letter recipient to the fact that there are other documents that may be accompanying the business letter. The plural form of the word "Enclosures" is regularly used with the number of enclosures indicated. But if it is one document, then the word "Enclosure" is preferred, indicating that the document is not more than one. When "Attention" or "Att." is used, the documents are listed.