Master Business with Fun Quizzes & Brain Teasers!

Suppose the mean rate of return on the common stocks in a large, diversified investment portfolio was 12% last year. If the rates of return of the stocks within the portfolio are approximately normally distributed and a rate of return of 15% represents the 80th percentile, what is the approximate standard deviation of the rates of return in the portfolio
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Remy corporation sold 5,300 units of its product at a price of $25 per unit. total variable cost per unit is $17.50, consisting of $16.60 in variable cost of goods sold and $0.90 in variable selling and administrative cost. compute the contribution margin for the company.
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Suppose you are running a business and incur the following monthly expenses: labor costs are $80,000; raw materials and business supplies are 30,000; equipment leasing expenses are $7,000; finance charges on loans are $3,000. you are not paying rent, because you own the building in which you operate the business. if you had rented it out, however, you would have received $12,000 in rent income. you also estimate the value of your own time to equal $40,000. if the total revenue is $500,000, compute your economic and accounting profit? explain the scope of managerial economics. if the demand function for an industry is d = 500 - .01q and its supply function is 5 + .04q, what will be its competitive equilibrium output and price levels? suppose that a firms profit function is given by the following relationship: = -25 + 100q1 + 95q2 10q12 5q22 5q1q2 where q1 and q2 are the respective quantities of the two products that the firm manufactures and sells. determine: a.the values of q1 and q2 that maximize b.the maximum value of
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________ is a simple, yet effective, method for catching or preventing many types of employee fraud. group of answer choices requiring all employees to take a fraud prevention awareness course requiring all employees to take annual vacations explaining that fraud is illegal and will be severely punished to employees monitoring all employees' computer usage activities
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You are the Chief Operating Officer of Littleco. Over lunch, the President of Bigco offers to sell Littleco a piece of fully depreciated manufacturing equipment youneed for your production line for $1,000. You tell the President of Bigco that you will buy it,and you shake on it. The Bigco President later changes his mind and decides to keep theequipment. Littleco sues Bigcofor breach of contract. Assume that the Uniform Commercial Code does not apply. 1. What remedies can Littleco seek againstBigco?2. What defenses can Bigco assert?Please help.
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Most organizations expect their _____ to abide by AUPs. studentsemployeesemployerscostomers
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The journal entry to dispose of a small amount of overapplied or underapplied overhead, if overhead is applied based on direct labor hours, would be charged to:
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1. The size of the economy currently stands at US$10,000m, however unemployment is a major problem due to the downturn in the economy caused by the pandemic and a fall in export revenue of is two major exports - natural gas and oil. The unemployment rate has risen to 10% and the economy has been declining since 2014. The Minister of Finance has decided to implement a fiscal stimulus package worth $500m comprising mostly of higher government spending on infrastructure projects. The government plans to finance some of its expenditure by borrowing from domestic sources such as commercial banks. Currently the marginal propensity to consume (MPC) is 0. 65, partly reflecting consumers willingness to save given the uncertainty in the economy. (i) What is the Keynesian prescription for a government that is managing an economy that is contracting and there is high unemployment? Mention one of the assumptions of Keynesian economics 5 marks(ii) Draw a Keynesian cross showing the current equilibrium GDP at US$10,000m 5 marks(iii) Calculate the Keynesian spending multiplier? 1 mark (iv) Given the size of the multiplier and the size of the fiscal stimulus (higher government expenditure) what would be the actual change in gross domestic product? 2 marks b) Draw a Keynesian cross showing the change in aggregate expenditure, the new equilibrium and the change in GDP as a result of the fiscal stimulus 10 marks (ii) If the MPC is 0. 80 and the government wanted to grow the economy to US$12,000m how much would the government need to spend to reach its GDP target? 5 marks2) Classical economists are not supporters of higher government spending to alleviate unemployment and a recession. They believe that prices such as wages and interest rates need to adjust. (i) State one assumption of classical economists 1 mark (ii) Classical economists believes that higher government spending financed by domestic borrowing leaves aggregate demand unchanged because of the crowding out effect. Explain what is the crowding out effect and use it to explain how higher government spending financed by domestic borrowing leaves GDP unchanged. 5 marks (ii) If higher government spending was financed by higher taxes why would aggregate demand still remain unchanged according to classical economists? 2 marks (iii) Keynesian economists focus on the demand side of the economy while classical economist focus on the supply side and are not proponents of increasing aggregate demand to increase GDP. What sort of investments classical economists recommend that would trigger long run economic growth? 3 marks
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Arlington steel company is a producer of raw steel and steel-related products. on january 3, 2022, arlington enters into a firm commitment to purchase 10,000 tons of iron ore pellets from a supplier to satisfy spring production demands. the purchase is to be at a fixed price of $63 per ton on april 30, 2022. to protect against the risk of changes in the fair value of the commitment contract, arlington enters into a futures contract to sell 10,000 tons of iron ore on april 30 for $63/ton (the current price). the contract calls for net cash settlement, and the company must report changes in the fair values of its hedging instruments each quarter.required:on march 31, the price of iron ore fell to $61/ton, and then to $60/ton on april 30. 1. calculate the net cash settlement at april 30, 2022. 2. prepare the journal entries for the period january 3 to april 30, 2022, to record the firm commitment, necessary adjustments for changes in fair value, and settlement of the futures contract.
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What changes in the global industry structure and competitive dynamics allowed challengers from australia and other new world countries to take market share from france and other traditional producers in the late twentieth century
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The following information is provided for a company. Accounts payable $ 15,000 Buildings 80,000 Cash 10,500 Accounts receivable 9,500 Salaries payable 4,500 Retained earnings 47,500 Supplies 40,000 Notes payable (due in 18 months) 35,000 Interest payable 3,000 Common stock 35,000 What is the amount of current assets, assuming the accounts above reflect normal activity
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Bonnie purchased a 10-year bond on 1/1/2000, after the coupon was paid on that date. the bond was purchased to yield 4% per year convertible quarterly. the coupons are paid at 5% convertible quarterly. the bond is redeemable at par at the amount of 10,000. bonnie received a coupon on 7/1/2005. what is the amortization of premium of the coupon she just received
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A firm has a market value of equity of $30,000. It borrows $7500 at 8%. If the unlevered cost of equity is 15%, what is the firm's cost of equity capital
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Ketchup For All, a food manufacturing company, markets its tomato ketchup globally. As its consumers are well aware of the uses of ketchup, the company does not have to generate product awareness. The company, however, wishes to focus on convincing consumers to buy Ketchup For All's ketchup instead of other brands of ketchup. In this scenario, Ketchup For All must employ _______
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As successive equal increases in a variable factor of production are added to fixed factors of production, there will be a point beyond which the extra product that can be attributed to each additional unit of the variable factor of production will decline. This is known as the law of diminishing total product. Diminishing average product. Decreasing product. Diminishing marginal product
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The marketing team at p&g company is developing an advertising campaign to promote their specialty products. they are considering the usage of television (tv) and social media (sm) as the advertising media for their proposed campaign. the cost of making one tv ad is $1200 and the cost of making one sm ad is $600. p&g's advertising budget has been set at $30,000. the tv exposure rate is 600,000 per ad and sm exposure rate is 200,000 per ad. the following additional guidelines are to be considered. do not use more than 25 social media ads. use at least 35 combined tv and social media ads. ensure a minimum of 5000 exposures through social media exposures the number of social media ads cannot be less than the number of tv ads.the management at p&g would like to know how many tv and how many sm ads should be used to maximize the overall exposure rates of the advertising campaign.
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Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash $8,600 Accounts payable $11,800 Accounts receivable 43,000 Unearned revenue 4,720 Supplies 2,600 Long-term note payable 61,700 Equipment 11,700 Common stock 2,700 Land 9,600 Additional paid-in capital 8,320 Building 36,300 Retained earnings 22,560Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash. Received a $600 deposit from a customer who wanted her piano rebuilt. Rented a part of the building to a bicycle repair shop; received $850 for rent in January. Received $7,200 from customers as payment on their accounts. Received an electric and gas utility bill for $400 to be paid in February. Ordered $960 in supplies. Paid $2,300 on account in January. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock. Paid $16,500 in wages to employees who worked in January. Declared and paid a $2,200 dividend (reduce Retained Earnings and Cash). Received and paid cash for the supplies in (f). Required:Create T-accounts
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A nationwide motel chain is considering locating a new motel in Bigtown, USA. The cost of building a 130-room motel (excluding furnishings) is $5. 2 million. The firm uses a 12-year planning horizon to evaluate investments of this type. The furnishings for this motel must be replaced every four years at an estimated cost of $1,875,000 (at k=0, 4, and 8). The old furnishings have no market value. Annual operating and maintenance expenses for the facility are estimated to be $130,000. The market value of the motel after 12 years is estimated to be 20% of the original building cost. Rooms at the motel are projected to be rented at an average rate of $45 per night. On the average, the motel will rent 60% of its rooms each night. Assume the motel will be open 365 days per year. MARR is 9% per year. A. Using an annual-worth measure of merit, is the project economically attractive?
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It has been said that short selling is an uncomfortable maneuver for most investors, whereas they are quite comfortable going long. Why should this be so? How can an investor use a stop loss order to limit short selling losses?
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Zhao company has fixed costs of $469,200. its single product sells for $193 per unit, and variable costs are $125 per unit. the company reports sales of 10,000 units. prepare a contribution margin income statement for the year ended december 31
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Paris participates in her employers nonqualified deferred compensation plan. For 2020, she is deferring 10 percent of her $320,000 annual salary. Assuming this is her only source of income and her marginal income tax rate is 32 percent, how much does deferring Pariss income save her employer (after taxes) in 2020? The marginal tax rate of her employer is 21 percent (ignore payroll taxes)
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Product differentiation: a. refers to the attempt of firms to make their products look like those of the other firms in the industry and is used in a perfectly competitive market structure. b. leads to nonprice competition in a perfectly competitive market structure. c. refers to the attempt of firms to make real or apparent differences in essentially substitutable products look different in the minds of the consumers and is used in a monopolistically competitive market structure. d. leads to price equaling the minimum average total cost in the long run in a monopolistically competitive market structure.
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Prepare journal entries to establish the fund on may 1, to replenish it on may 15 and on may 31, and to reflect any increase or decrease in the fund balance on may 16 and may 31.
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Pepperdine reported net sales of $8,500 million, net income of $126 million and average accounts receivable, net of $680 million. its accounts receivable turnover is:
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