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3 years ago

Return on Common Stockholders' Equity

Business

1 answer:

attashe74 [19]3 years ago

8 0

Answer:

Explanation:

Return on common stockholders' equity for 2015:

(Net income - preferred stock)/Equity

(63,000-5,400)/2,400,000 = 57,600/2,400,000 = 2.4%

Return on common stockholders' equity for 2015:

(99,000-5,400)/3,000,000 = 93,600/3,000,000 = 3.12%

From these calculations, it is clear that return has improved.

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A(n) _____ is a business that is based primarily in a single country but acquires some meaningful share of its resources or reve

choli [55]

Answer:

d. international business

Explanation:

A(n) international business is a business that is based primarily in a single country but acquires some meaningful share of its resources or revenues (or both) from other countries.

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3 years ago

M has four liens, which were recorded in the following order: $150,000 on the mortgage, $2,000 to a general contractor for a new

AnnyKZ [126]

Answer:

First the bank will collect its $150,000 and then the county will collect $2,500 in unpaid property taxes.

Explanation:

Generally, liens get in line depending on the time that they were recorded (contractor then credit card) but property taxes have superiority over other liens even f they were recorded before. After the foreclosure, the liens cease to exist, but not the debt. The property will still owe $500 in taxes and the previous owner will still owe $3,000 to the contractor and $12,000 in credit card debt.

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4 years ago

Seventy new jobs are opening up at an automobile manufacturing plant, and 1000 applicants show up for the 70 positions. To selec

777dan777 [17]

Answer:

As explained below, given that the score of the person is among the 0.03125 fraction of the best applicants, he can count on getting one of the jobs.

Explanation:

The hint is to use Chebyshev’s Theorem.

Chebyshev’s Theorem applies to any data set, even if it is not bell-shaped.

Chebyshev’s Theorem states that at least 1−1/k² of the data lie within k standard deviations of the mean.

For this sample you have:

mean: 60
standard deviation: 6
score: 84

The number of standard deviations that 84 is from the mean is:

k = (score - mean) / standar deviation
k = (84 - 60) / 6 = 24 / 6 = 4

Thus, the score of the person is 4 standard deviations above the mean.

How good is that?

Chebyshev’s Theorem states that at least 1−1/k² of the data lie within k standard deviations of the mean. For k = 4, that is:

1 - 1/4² = 1 - 1/16 = 0.9375

That means that half of 1 - 0.9375 are above k = 4: 0.03125

Then, 1 - 0.03125 are below k = 4: 0.96875

Since there are 70 positions and 1,000 aplicants, 70/1,000 = 0.07. The compnay should select the best 0.07 of the applicants.

Given that the score of the person is among the 0.03125 upper fraction of the applicants, this person can count of geting one of the jobs.

3 0

3 years ago

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$419,000 –$37,000 1 47,000 19,800 2

allochka39001 [22]

Answer:

a. The payback period for project A=3.44 years, and the payback period for project B=2.21 years.

b. Net present value for project A=$78,560.951, and the Net present value for project B=$11,694.239

c. IRR for Project A= 16.57% and IRR for Project B=25.72%

d. Probability index (P.I) for Project A=1.187 and the Probability index (P.I) for Project B=1.316

e. The final decision should be based on the NPV since it doesn't have the ranking problem that is usually associated with other capital budgeting techniques. I would choose Project A since it has a higher Net Present Value (NPV) as compared to Project B.

Explanation:

PROJECT A PROJECT B

Year Cash flow Cash flow

0. $419,000 $37,000

1. $47,000 $19,800

2. $59,000 $13,900

3. $76,000 $15,600

4. $534,000 $12,400

The payback period for Project A can be determined as follows;

The cash flows at Year 0 represent the initial investment to the project. The payback period is the number of years it will take until the return on the project is equal to the initial investment. This can be calculated as shown;

419,000-(47,000+59,000+76,000)

=419,000-182,000=$237,000

After 3 years, the total cash flow will be=$182,000 which is still $237,000 less from the initial investment. Determine the number of months in the fourth year that it will take to cover the remainder;

(237,000/534,000)=0.44 years

Total number of years=3+0.44=3.44 years

The payback period for project A=3.44 years

The payback period for Project B can be determined as follows;

37,000-(19,800+13,900)

=37,000-33,700=$3,300

After 2 years, the total cash flow will be=$33,700 which is still $3,300 less from the initial investment. Determine the number of months in the third year that it will take to cover the remainder;

(3,300/15,600)=0.21 years

Total number of years=2+0.21=2.21 years

The payback period for project B=2.21 years

Net present value for project A is;

NPV=-419,000+{47,000/(1+0.11)}+{59,000/((1+0.11)^2)}+{76,000/((1+0.11)^3)}+534,000/((1+0.11)^4)=-419,000+(42,342.342+47,885.724+55,570.545+351,762.340=$42,378,560.61

Net present value for project A=$78,560.951

Net present value for project B is;

NPV=-37,000+{19,800/(1+0.11)}+{13,900/((1+0.11)^2)}+{15,600/((1+0.11)^3)}+12,400/((1+0.11)^4)=-37,000+(17,837.837+11,281.552+11,406.586+8,168.264=$11,694.239

Net present value for project B=$11,694.239

The IRR for each project A is:

$419,000 = $47,000 / (1 + IRR) + $59,000 / (1 + IRR)^2 + $76,000 / (1 + IRR)^3 + $534,000 / (1 + IRR)^4

Using a spreadsheet, financial calculator, or trial and error to find the root of the equation, we find that:

IRR = 16.57%

The IRR for each project B is:

$37,000 = $19,800 / (1 + IRR) + $13,900 / (1 + IRR)^2 + $15,600 / (1 + IRR)^3 + $12,400 / (1 + IRR)^4

Using a spreadsheet, financial calculator, or trial and error to find the root of the equation, we find that:

IRR = 25.72%

Probability index (P.I) for Project A;

P.I=[{47,000/(1+0.11)}+{59,000/((1+0.11)^2)}+{76,000/((1+0.11)^3)}+534,000/((1+0.11)^4)]/419,000=(42,342.342+47,885.724+55,570.545+351,762.340=1.187

The Probability index (P.I) for Project A=1.187

Probability index (P.I) for Project B;

[{19,800/(1+0.11)}+{13,900/((1+0.11)^2)}+{15,600/((1+0.11)^3)}+12,400/((1+0.11)^4)]/37,000=(17,837.837+11,281.552+11,406.586+8,168.264=1.316

The Probability index (P.I) for Project B=1.316

The final decision should be based on the NPV since it doesn't have the ranking problem that is usually associated with other capital budgeting techniques. I would choose Project A since it has a higher Net Present Value (NPV) as compared to Project B.

4 0

3 years ago

Arch gives you an amended form w-4 dated march 11, 2013, on which he claims two additional withholding allowances. he asks you t

Butoxors [25]

Having been asked by Arch to refund the excess taxes that were subtracted from January 1 to march 11, when arch claimed only one withholding allowance, I should inform Arch that I won’t be able to pay back the over withheld taxes that were withheld before March 13 and that the correction will have to be made when he documents his annual income tax return.

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3 years ago