Ghost, Inc., has no debt outstanding and a total market value of $140,000. Earnings before interest and taxes, EBIT, are projected to be $32,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 12 percent higher. If there is a recession, then EBIT will be 30 percent lower. The company is considering a $115,000 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,000 shares outstanding. Ignore taxes for this problem. a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer 1

Answer:

Ghost, Inc.

a-1) Calculation of Earnings Per Share (EPS) under three economic scenarios:

Economic       EPS =

Scenario        (Net Income / Common Stock Shares)

i) Normal         $4.57 ($32,000/7,000)

ii) Expansion   $5.12 ($35,840/7,000)

iii) Recession  $3.20 ($22,400/7,000)

a-2) Calculation of the Percentage Changes in EPS, given expansion or recession:

i) Expansion  = 12.04% ($5.12 - $4.57)/$4.57 * 100

ii) Recession = -29.98% ($3.20 - $4.57)/$4.57 * 100

b-1) Calculation of Earnings Per Share (EPS) under three economic scenarios after recapitalization:

Interest on debt = $115,000 * 6% = $6,900

Net Income = EBIT - $6,900

Outstanding Common Stock Shares = 1,250 (7,000 - $115,000/20) shares

Economic       EPS =

Scenario        (Net Income / Common Stock Shares)

i) Normal         $20.08 ($25,100/1,250)

ii) Expansion   $23.15 ($28,940/1,250)

iii) Recession  $12.40 ($15,500/1,250)

b-2) Calculation of the Percentage Changes in EPS, given expansion or recession, after recapitalization:

i) Expansion  = 15.29% ($23.15 - $20.08)/$20.08 * 100

ii) Recession = -38.25% ($12.40 - $20.08)/$20.08 * 100

Explanation:

a) EPS is Earnings Per Share.  It is a financial indicator of the percentage of net income that accrues to common stockholders after the payment of interests and taxes.  EPS can be calculated by taking a company's quarterly or annual net income and dividing by the number of its shares of stock outstanding.

b) Expansion: The net income increased to $35,840 ($32,000 x 1.12).  After capitalization, this net income will be $28,940 ($35,840 - 6,900).

c) Recession: The net income decreased to $22,400 ($32,000 x 0.7).  After capitalization, the net income will become $15,500 ($22,400 - 6,900).

d) Since the total market value is $140,000 with 7,000 shares outstanding, it means that the market price per share is $20 ($140,000/7,000).

e) The outstanding shares will be reduced by 5,750 ($115,000/$20) shares after the debt issue and recapitalization.


Related Questions

According to the above material, there exist large differences between economic growth rate using traditional expenditure approach and the satellite night-light data. How do you evaluate the night-light data method? and can you identify several reasons why there exists such differences?

Answers

The use of satellite night-light data as a method to evaluate economic growth has both strengths and limitations. Reasons for Differences between Traditional Expenditure Approach and Night-light Data: Informal Economy, Data Limitations, Urbanization Bias and Structural Changes.

Here is an evaluation of the night-light data method and several reasons for the differences observed between the traditional expenditure approach and the night-light data:

Evaluation of the Night-light Data Method:

Objective and Timely: Satellite night-light data provides an objective and timely measure of economic activity. Wide Coverage: Night-light data can cover large geographical areas, including remote and inaccessible regions. Granularity: The data can be analyzed at a fine-grained level, allowing for detailed spatial analysis of economic patterns. This can help identify pockets of growth and disparities within regions.

Reasons for Differences between Traditional Expenditure Approach and Night-light Data:

Informal Economy: The traditional expenditure approach relies on official economic data, which may not fully capture the informal sector. Data Limitations: Night-light data has its limitations. It primarily measures economic activity related to lighting, which may not capture other dimensions of economic growth such as services or knowledge-based industries. Urbanization Bias: Night-light data tends to be more representative of urban areas with higher population density and greater access to electricity. Structural Changes: The traditional expenditure approach focuses on consumption and investment, while night-light data primarily captures the energy consumption associated with lighting.

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David Ortiz Motors has a target capital structure of 45% debt and 55% equity. The yield to maturity on the company's outstanding bonds is 12%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 11.35%. What is the company's cost of equity capital

Answers

Answer:

the company's cost of equity capital is 14.75 %.

Explanation:

WACC = ke × (E/V) + kd × (D/V)

Where,

ke = cost of equity

    = this is unknown

E/V = Weight of Equity

      = 55%

kd = cost of debt

     = Interest × ( 1 - tax rate)

     = 12% × ( 1 - 0.40)

     = 7.20 %

D/V = Weight of Debt

       = 45%

Therefore,

WACC = ke × (E/V) + kd × (D/V)

11.35% = 55%ke + 7.20 % × 45%

11.35% = 55%ke + 3.24 %

55%ke = 8.11 %

ke = 14.75 %

I am not a very adventurous person on the job.

Answers

what is the question supposed to be?

The adjective in your statement is "adventurous."  It depicts the sort of individual you are, showing that you are not leaned to face challenges or search out new encounters in your work.

A Adjectives is a word that depicts or changes a thing or pronoun. It gives extra data about the thing or pronoun by giving insights regarding its quality, size, shape, variety, and so forth. Modifiers can be utilized to improve depictions and give more clear and explicit implications.

Adjectives are utilized to give more data about things or pronouns in a sentence. Generally, descriptive words assume a vital part in adding profundity, explicitness, and subtlety to our language, permitting us to communicate an extensive variety of data about our general surroundings.

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Your question is incomplete, probably the complete question is-

I am not a very adventurous person on the job. What is the adjective here?

Under which situation would it be legal for an employer to pay an employee a
wage less than the federal minimum wage?
A. If the state allows employers to pay less than the federal rate
OB. If the employee's job involves receiving tips
C. If the employer provides additional benefits to the employee
O D. If the employer is not pleased with the employee's work

Answers

The situation where it is legal for an employer to pay an employee a wage less than the federal minimum wage is B. If the employee's job involves receiving tips.

When is it legal to pay less than minimum wage ?

One exclusion pertains to laborers who obtain gratuities as an aspect of their occupational obligations; instances of such professions consist of servers and bartenders. These staff members are held accountable to a lower bare minimum salary known for its characteristic name, the tipped bare minimum salary.

In summary, it is well within legal bounds for an employer to issue a level of income inferior to the federal bare minimum salary when referring to staff members enlisted in jobs necessitating them to receive gratuities.

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q Conflict Consequences 2 Difference between critical and Creative thinking. 3. Positive Use & Teisure time 41m Portance & Self Identity Svalues associated with creative Thinking​

Answers

Critical thinking involves analyzing and evaluating information, while creative thinking involves generating new ideas and solutions. Positive use of leisure time includes engaging in activities that promote personal well-being, learning, self-improvement, socializing, and exploring new experiences.

Difference between critical and creative thinking:

Critical thinking is a cognitive process that involves analyzing and evaluating information or arguments in a logical and systematic manner. It focuses on objective analysis, reasoning, and problem-solving. Critical thinking requires the ability to question assumptions, recognize biases, and assess evidence to form well-reasoned judgments or decisions.

On the other hand, creative thinking involves generating new ideas, insights, or solutions. It is a process of divergent thinking, breaking away from conventional thoughts and exploring alternative perspectives.

Creative thinking often involves combining different ideas, making connections, and thinking outside the box. It encourages imagination, flexibility, and the ability to embrace uncertainty.

While critical thinking aims to assess and evaluate existing information or arguments, creative thinking aims to generate new possibilities or approaches. Critical thinking seeks to analyze and deconstruct, while creative thinking seeks to synthesize and construct.

Positive use of leisure time:

Leisure time refers to the period when individuals are free from work or other obligations and can engage in activities of their choice. Positive use of leisure time involves engaging in activities that contribute to personal well-being, growth, and fulfillment. Here are some examples:

Pursuing hobbies and interests: Engaging in activities such as painting, playing a musical instrument, gardening, or sports can provide relaxation, personal enjoyment, and a sense of accomplishment.

Learning and self-improvement: Using leisure time to learn new skills, read books, take online courses, or engage in personal development activities can enhance knowledge, broaden perspectives, and foster personal growth.

Physical and mental well-being: Allocating leisure time for exercise, meditation, yoga, or other wellness activities promotes physical fitness, reduces stress, and enhances overall well-being.

Socializing and building relationships: Spending leisure time with family, friends, or participating in community activities helps foster social connections, build relationships, and strengthen support networks.

Exploring new experiences: Traveling, visiting museums, attending cultural events, or trying new cuisines broadens horizons, provides exposure to different cultures, and creates memorable experiences.

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If 30,000 after-tax dollars are invested at 7% in a single-premium tax-deffered annuity, how many after-tax dollars will be accumulated in 20 years

Answers

Answer:

$72,000

Explanation:

We need to first calculate the interest on investing $30,000 after 20 years at 7% in a single-premium tax-deffered annuity using the simple interest formula.

Simple interest = Principal * Rate * Time/100

Simple interest = $30,000*7*20/100

Simple Interest = $42,000

After-tax dollars that will be accumulated in 20 years = Initial investment + Interest = $30,000+$42,000 = $72,000

Hence, after-tax dollars that will be accumulated in 20 years is $72,000.

Choose the cultures that display the Latin American enthusiasm for dance. Brazil Mexico Scotland Wales

Answers

Answer:

Mexico and Brazil

Explanation:

They are both countries known for Latin America

extranaughtee kitties, inc., sells obscene materials. this is

Answers

bhbhh lh l lljh l lh ;h ;hh hkkhh hj hjb Answer:   jhh ki

Explanation:

If Mary owes the IRS $5,000 for her income taxes and is in the 15% marginal tax bracket, what would be her average tax rate if she had taxable income of
$41,667?
O About 12%
O About 13%
O About 14%
O About 15%

Answers

answer : about 12%

explanation:

Analyse the potential consequences of unresolved conflict within a team.

Answers

Answer:

Unresolved conflict within a team can have various negative consequences for the team members, the team leader, and the organization as a whole1234. Some of these consequences are:

Reduced morale and motivation: Conflicts affect the emotional and   psychological well-being of team members. If conflicts remain unresolved, then employees naturally feel stressed out and unable to focus on their job. When conflicts linger on for longer periods of time, then employees feel uncertain about their role and the future. This mental state is the main cause of their low morale and motivation.Poor communication and collaboration: Conflicts create barriers and distrust among team members. They hinder effective communication and information sharing, which are essential for teamwork and innovation. Conflicts also reduce the willingness and ability of team members to cooperate and coordinate with each other, resulting in inefficiency and errors.Decreased performance and productivity: Conflicts distract team members from their core tasks and goals. They consume time and energy that could be otherwise spent on productive work. Conflicts also impair the quality and quantity of work output, as team members may avoid or sabotage each other’s efforts. Conflicts can also lead to missed deadlines, wasted resources, and lost opportunities.Increased turnover and absenteeism: Conflicts create a hostile and unpleasant work environment for team members. They may cause employees to feel dissatisfied, frustrated, or burned out with their job. This may lead them to seek alternative employment or quit altogether. Conflicts may also cause employees to take more sick leaves or avoid coming to work altogether, which affects the availability and continuity of the team.Damaged reputation and customer service: Conflicts can affect the external image and reputation of the team and the organization. They can damage the relationships with customers, clients, partners, or stakeholders, who may perceive the team as unprofessional, unreliable, or incompetent. Conflicts can also affect the quality and timeliness of customer service, as team members may be less responsive, courteous, or helpful to customers

Unresolved conflicts within a team can lead to several negative consequences such as:

Decreased productivity, lower morale, loss of trust ,increased turnover, damage to relationships ,missed opportunities.

-Unresolved conflicts can cause tension and distractions, which can decrease productivity and disrupt the work environment.

-Conflicts can lower team morale and create an atmosphere of negativity, which can lead to reduced job satisfaction and motivation.

-Conflicts can cause team members to lose trust in one another, which can make it difficult for them to work together effectively.

-Conflicts can distract team members from important opportunities and prevent them from reaching their full potential.

Therefore, these are the consequences of unresolved conflicts within a team.

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A benefit of a monopoly is:
a. greater creativity by authors who can copyright their novels.
b. a wide variety of similar products.
c. decreasing long-run average total costs.
d. lower prices.

Answers

A benefit of a monopoly is: a. greater creativity by authors who can copyright their novels.

What is monopoly?

Because they give artists and innovators the chance to acquire exclusive rights and financial rewards through intellectual property rights, such as copyright protection, monopolies may be an incentive for creativity and innovation.

Knowing that they may enjoy exclusive ownership and possible financial advantage from their works might motivate authors to invest in producing original and distinctive works.

Therefore the correct option is A.

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An order full film and process has demand for three order types during the next 4 weeks as shown in table 5.1 the assignment of activities to workers and processing time for each activities are shown in table 5.21 all workers have 40 hour per week available to work on this process.

Develop the mathematical model and use Excel Solver to find the number of orders of each type that should be processed to maximize total profit.
TABLE 5.20
Routing, Demand, and Profit Data for Exercise 5.18
OrderType Activities demand profile
Basic 1,2,3 and5. 90 125
Special 1,3,4and6 110 175
Deluxe 2,4,5,and6. 90 200

Table 5.21
Activity time and resource assignment data for exercise 5.18
Activity Time (Min) Employee
1 24 Anne
2 18 Anne
3 25. Meg
4 27 joe
5 15 joe
6 14 Meg
Nov solve it in Excel solver sheet

Answers

Using Excel Solver, the optimal solution for the order and process demand is to process 62.5 Basic, 30 Special, and 90 Deluxe orders, resulting in a total profit of $29,875.

To solve this problem using Excel Solver, we need to first create a mathematical model. We can define the decision variables as the number of orders of each type that should be processed.

Let x1, x2, and x3 be the number of orders of Basic, Special, and Deluxe types, respectively.

The objective is to maximize the total profit, which can be calculated as follows:

Total Profit = 125x1 + 175x2 + 200x3

We also need to ensure that the available time of each employee is not exceeded. For this, we can use the following constraints:

24x1 + 18x2 <= 40(Anne's available hours)

25x1 + 27x2 + 14x3 <= 40(Meg's available hours)

15x1 + 27x3 <= 40(Joe's available hours)

We also need to ensure that the demand for each order type is met. For this, we can use the following constraints:

x1 <= 90 (Demand for Basic)

x2 <= 110 (Demand for Special)

x3 <= 90 (Demand for Deluxe)

All decision variables should be non-negative, i.e., x1, x2, and x3 >= 0

Now we can set up the Excel Solver to find the optimal solution. Follow the below steps:

Step 1: Open a new Excel spreadsheet.

Step 2: Enter the demand and profit data in Table 5.20 into the spreadsheet.

Step 3: Enter the activity time and resource assignment data in Table 5.21 into the spreadsheet.

Step 4: Define the decision variables, objective function, and constraints in the spreadsheet as described above.

Step 5: Go to the "Data" tab and click on "Solver" in the "Analysis" group.

Step 6: In the Solver Parameters dialog box, set the objective to "Max" and set the decision variable cells as the range containing x1, x2, and x3.

Step 7: Enter the constraints by clicking on "Add" in the "Constraints" tab of the Solver Parameters dialog box.

Step 8: Click on "OK" to close the "Add Constraint" dialog box and then click on "Solve" in the Solver Parameters dialog box.

Step 9: The Solver will calculate the optimal solution and display the values of x1, x2, and x3 that maximize the total profit.

The optimal solution, as calculated by Excel Solver, is:

x1 = 62.5

x2 = 30

x3 = 90

This means that the company should process 62.5 orders of the Basic type, 30 orders of the Special type, and 90 orders of the Deluxe type to maximize total profit. The total profit will be $29,875.

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Guys, This question determines my life.
1.If nothing Is faster than light, then how did the dark get there first?

Answers

Answer:

its simply not true that nothing is faster than light. ill give a quick proof: black holes. Gravity is stronger and faster than light, because gravity captures light and prevents it from leaving the black hole.

Explanation:

Darkness came before light, so light had to be created to get there.

Suppose you own a preferred stock that promises to pay an annual dividends of 8% of par value of

the stock received in semiannual basis. If par value is $50, how much the preferred stockholder will

receive?

Answers

Answer:

the preferred stockholder will receive $4 in dividends per semiannual period.

Explanation:

To calculate the amount that the preferred stockholder will receive, we need to consider the dividend rate and the par value of the stock.

Given that the preferred stock promises to pay an annual dividend of 8% of the par value on a semiannual basis, we can calculate the dividend amount per semiannual period.

Dividend per semiannual period = (Dividend rate * Par value) / 2

Dividend per semiannual period = (8% * $50) / 2

Dividend per semiannual period = (0.08 * $50) / 2

Dividend per semiannual period = $4

Conducting a survey of your friends to see how many might go to a trampoline park is an example of

Answers

Answer: Primary research

Explanation: Primary research is defined as the type of research where the person himself collects information. In this type of research, surveys, observation, and interviews are used.

In the primary research, the information is collected directly and not depending on other research that has been done previously. One of the advantages of this research is that it is carried out around a specific problem and with this information find a solution.

Assume that a gourmet food manufacturer has considered renting a booth at a local mall to sell gift boxes of candy, nuts, and cookies during the holiday season. The fixed costs to rent and operate the booth would be $27,900. The unit contribution margins and sales mix anticipated by the company are as follows: Unit Contribution Margin Sales Mix Candy $1.50 50% Nuts $2.00 30% Cookies $1.00 20% What would be the weighted average contribution margin

Answers

Do not go to the link its bad

15-9: Harris Company must set its investment and dividend policies for the coming year. It has three independent projects from which to choose, each of which requires a $3 million investment. These projects have different levels of risk, and therefore different costs of capital. Their projected IRRs and costs of capital are as follows: Project A: Cost of capital: 17%; IRR: 20% Project B: Cost of capital: 13%; IRR: 14% Project C: Cost of capital: 7%; IRR: 9% Haris intends to maintain its 35% debt and 65% common equity capital structure, and its net income is expected to be $7,500,000. If Harris maintains its residual dividend policy (with all distributions in the form of dividends), what will its payout ratio be?

Answers

Answer:

Its payout ratio will be 22%

Explanation:

Residual dividend policy is a policy where a company uses the residual equity to fund dividend payments.

Accept Project A, B and C as they all have higher Cost of capital than the IRR

The total investment = $3,000,000 * 3 = $9,000,000

Dividend = Earnings - Investment in equity = $7,500,000 - 65%*$9,000,000 = $7,500,000 - $5,850,000 = $1,650,000

Dividend payout ratio = Dividend / Total earnings = $1,650,000 / $7,500,000 = 0.22 = 22%

SBA a business from any of the THREE sectors and conduct a research using newspaper clips, business articles, any business magazines, News 24 and a other business websites to answer the following Research (Part A) for your Select a business business questions. (Collect FIVE resources) must be NB After choosing the sector you able to motivate your answer then provide picture/ newspaper article of the business -You must identify challenges experienced by the business and classify those challenges according to the three Business Environments and state the extent of control.​

Answers

Selecting a business from one of the three sectors, conducting research using newspaper clips, business articles, any business magazines, News 24, and other business websites to answer research (Part A) questions. This article will discuss the challenges faced by the business and classify them based on the three business environments. The business selected for this research is Sasol, which belongs to the primary sector. Sasol is an integrated energy and chemicals firm with operations in over 30 countries and more than 30,000 employees. It mines coal and convert it into synthetic fuels and chemical feedstock. Sasol operates in a challenging environment, and it faces many challenges. However, in this research, we will discuss the most important challenges faced by Sasol. The following are the difficulties Sasol faces: Environmental challenges: Sasol is a large company, and it emits greenhouse gases, which affect the environment. Furthermore, environmental regulations have become more stringent, which is a significant challenge for the company. Sasol must adhere to environmental regulations, which will impact its operations. Sasol must also protect its reputation, which is critical to its success. Sasol should be proactive in responding to environmental challenges by investing in renewable energy and ensuring that it adheres to environmental regulations. Economic challenges: Sasol faces economic challenges, including fluctuating oil prices, currency volatility, and rising operating costs. These issues are beyond the company's control, and they can have a significant impact on Sasol's financial performance. Sasol must adapt to economic changes by diversifying its revenue streams and improving its operational efficiency. Social challenges: Sasol faces social challenges such as workforce diversity, employee engagement, and community relations. Sasol must address these challenges by fostering a diverse and inclusive culture, promoting employee engagement, and engaging with the community. Sasol must also ensure that its business practices align with the expectations of its stakeholders, including customers, employees, and investors. In conclusion, Sasol faces many challenges, which can be classified into three categories: environmental, economic, and social. Sasol has limited control over some of these challenges, but it must be proactive in responding to them to ensure its long-term success.

A business that you can select for this analysis is the importation of cars into a country. Some challenges that may affect the importation of cars include import duties and trade agreements between nations.

What are business challenges?

Business challenges refer to those problems that are encountered by entrepreneurs who want to go into any area of trade. For those into the importation of cars and other such items, excessive import duties might be limiting to them.

They may also experieice trade agreements sbetween nations and rising forex that amy not be favorable for trade.

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On October 17, Nikle Company purchased a building and a plot of land for $750,000.
The building was valued at $500,000 while the land carried a value of $250,000.
Nikle paid $300,000 down in cash and signed a note payable for the balance.
Prepare the journal entry for this transaction.

Answers

Answer:

Building (debit) $500,000

Land (debit) $250,000

Cash (credit) $300,000

Note payable (credit) $450,000

Explanation:

Recognize the Assets : Building $500,000 and Land $250,000, de-recognized the assets of cash $300,000 and recognize liability arising from the note payable of $450,000.

In a planned economy price of commodities are controlled by

Answers

Answer:

they are controlled by the government

Explanation:

I will give brainliest and ratings if you get this correct ​

I will give brainliest and ratings if you get this correct

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A. The firm's short-run total cost curve can be calculated as 2√(100)L. The short-run average cost curve can be calculated as TC/Q, or 2√(100)L/Q.

B. The firm's short-run marginal cost function is MC = (2√(100))/Q. At 25 units of output, the short-run total cost is 2√(100)25 = 200, the short-run average cost is 200/25 = 8 and the short-run marginal cost is 2/25 = 0.08. At 200 units of output, the short-run total cost is 2√(100)200 = 400, the short-run average cost is 400/200 = 2 and the short-run marginal cost is 2/200 = 0.01.

C. The graph for SAC and SMC can be seen below:

D. The SMC curve intersects the SAC curve at its lowest or minimum points, which is because when marginal cost is below the average cost, the average cost decreases and when marginal cost is above the average cost, the average cost increases. Thus, at the lowest point of the SAC curve, the SMC curve must also intersect it as that is the point where the marginal cost is equal to the average cost.

Which would be a good reason for a borrower to use a Peer-to-Peer (P2P) lender?
The fees may be higher than from a depository institution.
The interest rate is higher than from a depository institution.
They may not be able to borrow money from any other source.
They will build their credit score faster than using other sources.

Answers

A good reason for borrower to use a Peer-to-Peer (P2P) lender is because they may not be able to borrow money from any other source.

What Is Peer-to-Peer (P2P) Lending?

The P2P lending service is also known as “social lending” or “crowd lending. This is a form of financial technology that allows people to lend or borrow money from one another without going through a bank.

Furthermore, the service enables individuals to obtain loans directly from other individuals while cutting out the financial institution as the middleman. Now, the websites that facilitate P2P lending have greatly increased its adoption as an alternative method of financing.

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credit economical definition.​

Answers

Answer:

The credit definition in economics is any agreement where one party borrows money from a second party with the promise to pay the amount back with interest. Credit ranges from consumer loans and credit cards to corporate bonds. I hope it helps. : )

Explanation:

The economical definition of credit is the allowance of one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date.

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A company intends to refinance a portion of its short-term debt in Year 2 and is negotiating a long-term financing agreement with a local bank. This agreement would be noncancelable and would extend for a period of 2 years. The amount of short-term debt that the company can exclude from its statement of financial position at December 31, Year 1.

a. May exceed the amount available for refinancing under the agreement.
b. Depends on the demonstrated ability to consummate the refinancing.
c. Must be adjusted by the difference between the present value and the market value of the current debt.
d. Is zero unless the refinancing has occurred by year end.

Answers

Answer:

Refinancing Short-term Debt

The amount of short-term debt that the company can exclude from its statement of financial position at December 31, Year 1:

b. Depends on the demonstrated ability to consummate the refinancing.

Explanation:

Demonstrating the ability to consummate the refinancing agreement of short-term obligations to long-term obligations enables the borrowing entity to exclude the obligations from its current liabilities and to classify the obligations as noncurrent.  This ability is demonstrated when an entity issues post-balance-sheet-date long-term obligation or equity securities or enters into a financing agreement that meets some criteria. These criteria are that the agreement lasts more than 1 year, is noncancelable by the lender, no agreement violation exists at the balance sheet date, and the lender does not default on the agreement.

What is the term for the illegal practice of using special
knowledge about a firm for profit or gain?

Answers

Answer:

Insider trading.

Explanation:

Illegal practice of using special knowledge about a firm for profit or gain is called insider trading

Question 2 of 20
Lexi wants to open an account where she can access the funds she needs to
pay her rent and other bills any time she wants. Which type of account would
be the best option for Lexi?
OA. A checking account
OB. A certificate of deposit
OC. A savings account
D. A money market account
SUBMIT

Question 2 of 20Lexi wants to open an account where she can access the funds she needs topay her rent

Answers

The best option for Lexi, who needs access to funds anytime she wants to pay her rent and other bills, would be a checking account (option A).

Checking accounts offer features such as check writing, debit card usage, and online banking, allowing Lexi to conveniently and quickly access her money whenever needed. With a checking account, she can easily pay bills by writing checks or using electronic payment methods.

In contrast, options B and C, a certificate of deposit (CD) and a savings account, respectively, may not be the best fit for Lexi's immediate needs. A CD typically requires the funds to be locked in for a specified period of time, usually ranging from a few months to several years, with limited or no access to the funds until the maturity date.

Option D, a money market account, is another viable choice for Lexi. Money market accounts often offer higher interest rates than traditional savings accounts, and they also provide check-writing and debit card capabilities. However, some money market accounts may have minimum balance requirements or limitations on the number of transactions.

Option A.

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Consider that the market demand function For IBM Computer represented as a. Calculate Price elasticity of demand when d=20,000-0.5P, Ceteris paribus the price per unit is Birt 10,000. b. It the demand for IBM Computer aces elsarric, inelastic or Unitary elastic? C. Interpret the result ​

Answers

A. The price elasticity of demand is PED ≈ -0.67.

B. The demand for IBM computers is inelastic because the absolute value of the price elasticity of demand (PED) is less than 1.

C. The negative value of the price elasticity of demand (-0.67) indicates an inverse relationship between price and quantity demanded.

To calculate the price elasticity of demand (PED), we need to use the formula:

PED = (% change in quantity demanded) / (% change in price)

a. Given the demand function d = 20,000 - 0.5P and the price per unit is $10,000, we can calculate the quantity demanded at this price by substituting P = $10,000 into the demand function:

d = 20,000 - 0.5 * 10,000

d = 20,000 - 5,000

d = 15,000

Now, let's consider a small change in price. Let's say the price decreases to $9,500, and the quantity demanded changes to 15,500. We can calculate the percentage changes:

% change in quantity demanded = (15,500 - 15,000) / 15,000 * 100 = 3.33%

% change in price = (9,500 - 10,000) / 10,000 * 100 = -5%

Now we can calculate the price elasticity of demand:

PED = (% change in quantity demanded) / (% change in price)

PED = 3.33% / -5%

PED ≈ -0.67

b. The demand for IBM Computer is inelastic because the absolute value of the price elasticity of demand (PED) is less than 1. In this case, the PED is approximately -0.67, indicating that a 1% change in price will lead to a smaller percentage change in quantity demanded.

c. The negative value of the price elasticity of demand (-0.67) indicates an inverse relationship between price and quantity demanded. In other words, as the price of IBM Computers increases, the quantity demanded decreases, and vice versa. However, since the demand is inelastic, the change in quantity demanded is proportionately smaller than the change in price. This suggests that consumers are not highly responsive to price changes, and IBM Computers are relatively price-insensitive.

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what is development​

Answers

the process of developing or being developed.

Answer:

when your slowly growing or developing a new tecnique of something

Explanation:

Which of the following is an Installation Commander/Agency Head responsibility?

Answers

They are in charge of all aspects of installation security, such as law enforcement, traffic control, physical security, data security, and information systems security.

As a Counterintelligence Special Agent, you will conduct investigations, gather and analyze physical and forensic evidence, and prepare the necessary countermeasures to eliminate threats from foreign intelligence and international terrorism.

The COS directs and coordinates the staff, allowing the Commander to concentrate on leadership, giving direction and intent, and building and strengthening relationships based on trust with partners, subordinates, and higher HQs. The importance of terms of reference document that outlines the essential staff members' and leaders' duties and responsibilities.

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Solutions Company - Unadjusted Trial Balance as of December 31.
Account Titles
Unadjusted Trial Balance Dr. Unadjusted Trial Balance Cr.
100: Cash 20,000
110: Accounts Receivable 0
120: Supplies 7,600
160: Machinery 50,000
161: Accumulated Depreciation 20,000
200: Accounts Payable 0
205: Interest Payable 0
210: Wages Payable 0
230: Unearned Rental Fees 7,200
240: Note Payable 30,000
300: Common Stock 10,000
310: Dividends 9,500
320: Retained Earnings 14,200
400: Rental Fees 32,450
600: Wage Expense 24,500
610: Interest Expense 2,250
620: Supplies Expense 0
630: Depreciation Expense 0
113,850 113,850
Totals


Requirement:

Prepare year-end adjusting journal entries for each of these separate situations.

As of December 31, employees had earned $400 of unpaid and unrecorded wages. The next payday is January 4 at which time $1,200 in wages will be paid.
The cost of supplies still available at December 31 is $3,450.
The notes payable requires an interest payment to be made every three months. The next payment occurs after the new year begins. The amount of unrecorded accrued interest at December 31 is $800.
Analysis of the unearned rental fees shows that $3,200 remains unearned at December 31.
In addition to the machinery rental fees included in the revenue account balance, the company has earned another $2,450 in unrecorded fee that will be collected on January 31 of next year.
Depreciation expense for the year is $3,800.

Answers

The Preparing Adjusted Trial Balance with the help of Worksheet: is given below:

The Adjusted Trial Balance

Solutions Company

Worksheet

December 31

Accounts Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance

Debit Credit Debit Credit Debit Credit

Cash $20,000    $20,000

Accounts Receivable 0  $2,450  2,450

Supplies 7,600   $4,150 3,450

Machinery 50,000    50,000

Accumulated Depreciation  $20,000  3,800  $23,800

Accounts Payable  0    0

Interest Payable  0  800  800

Salaries Payable  0  400  400

Unearned Rental Fees  7,200 4,000   3,200

Note Payable  30,000    30,000

Common Stock  10,000    10,000

Dividends 9,500   9,500

Retained Earnings  14,200    14,200

Rental Fees  32,450  6,450  38,900

Salaries Expense 24,500  400  24,900

Interest Expense 2,250  800  3,050

Supplies Expense 0  4,150  4,150

Depreciation Expense 0  3,800  3,800

Totals $113,850 $113,850 $15,600 $15,600 $121,300 $121,300

Preparing Income Statement:-

Solutions Company

Income Statement

For the Year Ended December 31

Accounts Amount Amount

Revenue:-  

Rental Fees $38,900

Total Revenue  $38,900

Expenses:-  

Salaries Expense $24,900

Interest Expense 3,050

Supplies Expense 4,150

Depreciation Expense 3,800

Total Expenses  ($35,900)

Net Income  $3,000

Preparing Statement of Retained Earnings:-

Solutions Company

Statement of Retained Earnings

For the Year Ended December 31

Accounts Amount

Retained Earnings 14,200

Net Income 3,000

$17,200

Dividends (9,500)

Retained Earnings, Ending $7,700

Preparing Balance Sheet:-

Solutions Company

Balance Sheet

December 31

Accounts Amount Amount

Assets:-  

Cash $20,000

Accounts Receivable 2,450

Supplies 3,450

Machinery 50,000

Accumulated Depreciation (23,800)

Total Assets  $52,100

Liabilities:-  

Accounts Payable $0

Interest Payable 800

Salaries Payable 400

Unearned Rental Fees 3,200

Note Payable 30,000

Total Liabilities  $34,400

Stockholders Equity:-  

Common Stock $10,000

Retained Earnings, Ending 7,700

Total Stockholders Equity  $17,700

Total Liabilities and Stockholders Equity  $52,100

Preparing Closing Entries:-

Solutions Company

General Journal

December 31

Date Accounts Title and Explanation Debit Credit

December 31 Rental Fees $38,900

Income Summary  $38,900

(To close Revenue Account)  

December 31 Income Summary $35,900

Salaries Expense  $24,900

Interest Expense  $3,050

Supplies Expense  $4,150

Depreciation Expense  $3,800

(To close Expenses Accounts)  

December 31 Income Summary $3,000

Retained Earnings  $3,000

(To close Income Summary)  

December 31 Retained Earnings $9,500

Dividends  $9,500

(To close Dividends Account)

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