What carries out public policy by performing tasks with the help of staff agencies?

Q1: Grohl Co. issued 11-year bonds a year ago at a coupon rate of 6.5 percent. The bonds make semiannual payments. If the YTM on

WINSTONCH [101]

Answer:

Explanation:

N = 4 (5-year bond - 1 year (ago))*2 = 8

I% = YMT= 8/2 = 4

PMT = (1,000)(.07) = 70/2 = 35

FV=1,000

Calculating PV, PV=966.34

6 0

3 years ago

Beck Company has inventory of $ 740 comma 000 in its stores as of December 31. It also has two shipments inminustransit that lef

EastWind [94]

Answer:

The invention balance sheet as at 31 December is $923,000

Explanation:

In this question, we are asked to calculate the amount of money Beck company will report in its balance sheet as of December 31st.

To do this, we simply employ a mathematical approach.

Mathematically, the amount of inventory recorded by Beck company on its balance sheet as of December 31st would be;

Inventory in stores + Goods in consignment + Good in transit F.o.b shipping point

We identify these values as follows;

Inventory in stores = $740,000

Goods in transit f.o.b shipping point = $108,000

Goods in consignment = $75,000

The amount of inventory Beck company should record will be; $740,000 + $108,000 + $75,000 = $923,000

3 0

3 years ago

Pro forma income statementAustin Grocers recently reported the following 2016 income statement (in millions of dollars):Sales $7

tia_tia [17]

Answer:

$102 million and 6.25%

Explanation:

The computation is shown below:

a. For net income

As we know that

Net income = (Earning before interest and taxes - interest) × (1 - tax rate)

where,

EBIT is calculated after finding out the sales, operating cost which is given below:

Sales = $700 million × 1.20 = $840 million

And, the operating costs = 75% × $840 million = $630 million

So, the EBIT is

= $840 million - $630 million

= $210 million

Now the net income is

= ($210 million - $40 million) × (1 - 40%)

= $102 million

2. Now expected growth rate in net income is

= (Latest year Net income ÷ previous year net income) - 1

= ($102 million ÷ $96 million) -1

= 6.25%

Since dividend payout ratio is same so the growth rate in dividend should be equal to the growth rate in net income i.e 6.25%

3 0

3 years ago

Carol has decided to open a Vietnamese restaurant in her neighborhood. She will be solely responsible for the management of the

bogdanovich [222]

Answer:

e. She may find it difficult to deal with the stress of rent increase.

Explanation:

Carol has decided to open a Vietnamese restaurant solely. She has adopted 'sole proprietorship' form of business.

Sole Proprietorship is a form of business owned, run & managed by a single entrepreneur (proprietor).

This form of business has following advantages & disadvantages:

Advantages : Easy formation, dissolution ; sole, flexible, quick decision making
Disadvantages : Limited Capital ; Entrepreneur Unlimited Liability ; Less expansion scope.

So : Carol being a sole proprietor won't face problems like - difficulty in quick & independent decision making, adaptability to market demand, focus on specific consumer groups .

She as a sole proprietor, would rather face issue like limited capital funds & hence would - find it difficult to deal with stress of rent increase.

3 0

4 years ago

Assuming the average person works 50 weeks per year, median earnings of a college graduate are $56,850 per year compared to $33,

Drupady [299]

Answer:

a. over 100,000

b. is more than 8 times

Explanation:

a.

Cost of four-year bachelor degree = Actual cost + opportunity cost

And

Actual cost = amount spent

opportunity cost = amount lost in not doing job just after high school

So ,

opportunity cost would be the 4 year salary of a high school graduate.

∴

Opportunity cost = 4 * yearly income of high school graduate

= $ 4 * 33900

= $ 135,600

Actual cost = 4 * yearly cost to attend college

= $ 4 * 25,290

= $ 101,160

As,

Total cost = Actual cost + opportunity cost

= $ 101,160 + 135,600

= $ 236,760

b.

Lifetime gain in pursuing bachelor degree over high school = life time earning of bachelor - lifetime earning of high school graduate

= 2,444,500 - 1,593,300 = 851,200 $

Hence,

the expenses of obtaining a bachelor degree is worth it because the increase in lifeime earning exceeds cost. [ cost = 236,760 $ , gain = 851,200 $ ]

So,

The expense of obtaining a bachelor's degree worth it because the increase in lifetime earnings is more than 8 times the cost

5 0

3 years ago