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3 years ago

Luther's Operating Margin for the year ending December 31, 2008 is closest to: Group of answer choices 0.5% 0.7% 5.4% 6.8%

Business

1 answer:

svlad2 [7]3 years ago

3 0

Answer:

the operating margin is 5.4%

Explanation:

The computation of the operating margin is shown below:

As we know that

Operating Margin = Operating Income ÷ Sales

= $31.3 ÷ $578.3

= 5.4%

Hence, the operating margin is 5.4%

It could be determined by dividing the operating income from the sales

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Presented below is the adjusted trial balance of Splish Brothers, Inc. at December 31, 2017. Debit Credit Cash $ ? Supplies 1,33

igomit [66]

Answer:

Cash $ 5710

Total debit side $ 199200 Credit side $ 199200

Explanation:

We list the correct accounts at the right side. First we add up the credit side to find the total and then subtract the debit side from it to get the cash amount as the debit and credit side of the trial balance must be equal.

Splish Brothers, Inc.

Adjusted trial balance

December 31, 2017.

Debit Credit

Cash $ 5710

Supplies 1,330

Accounts Receivable 3,580

Prepaid Insurance 2,620

Equipment 80,160

Accumulated Depreciation—Equipment $20,100

Trademarks 3,760

Accounts Payable 3,220

Salaries and Wages Payable 920

Unearned Service Revenue 1,060

Bonds Payable (due 2024) 31,880

Common Stock 2,120

Additional paid-in capital 15,160

Retained Earnings 14,720

Service Revenue 30,040

Salaries and Wages Expense 14,080

Insurance Expense 2,400

Rent Expense 3,260

Interest Expense 2,320

Total $ 199200 $ 199200

7 0

4 years ago

The risk-free rate of return is 2.5 percent; the expected rate of return on the market is 7 percent. Stock X has a beta coeffici

zvonat [6]

Answer:

Stock is overpriced/ overvalued.
Sell if you own it.
Don't buy if you don't.

Explanation:

Use CAPM to find the required return on the stock:

Required return = Risk free rate + beta * ( Market return - risk free rate)

= 2.5% + 1.3 * (7% - 2.5%)

= 8.35%

Price based on Constant Dividend Growth Model (CDGM):

Price = Next dividend / (Required return - growth rate)

Next dividend = 1.40 * ( 1 + 4%)

= $1.456

Price = 1.456 / (8.35% - 4%)

= $33.47

Stock is selling for $35. It is overvalued. Don't buy the stock. Sell if you have the stock.

4 0

3 years ago

Albert just purchased a $1,000, 5.4%, 10minusyear bond when he heard about his friend Charlie who just bought a equal quality b

svetoff [14.1K]

Answer:

A) interest rate

Explanation:

Interest rate risk refers to the risk of purchasing a bond that offers a certain coupon and then the price of that bond changes due to changes in the market interest rate.

This can work in your favor, if the market interest rate decreases, you will have a bond that pays above market coupon, which will increase the market value of the bond. But if the market interest rate increases, the market value of your bond will decrease, and you will lose money. This is what happened to Albert, since the market interest rate increased, the value of Albert's bond decreased.

8 0

4 years ago

Which type of company enjoys the benefit of passing along deductions and credits of the company on to partners to file on their

Oksi-84 [34.3K]

Answer:

The correct answer is Limited Liability Partnerships.

Explanation:

A Limited Liability Company is a type of mercantile company, in which the liability is limited to the capital contributed, and therefore, in the event that debts are incurred, it does not respond with the personal assets of the partners, but to the one contributed in said Limited company. It presents as a capitalist-type society in which capital, which will be divided into social interests, will be integrated by the contributions of all partners, who will not respond personally to social debts.

Social ACTIONS are not equivalent to the actions of corporations, as there are legal obstacles to their transmission. In addition, they do not have a "value" character and cannot be represented by means of securities or account entries, and their transmission by means of the public document that will be registered in the partner register book is mandatory. It will be constituted in a public deed and subsequently in the registration of the commercial register, at which time it acquires legal personality.

3 0

3 years ago

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you received your s

s344n2d4d5 [400]

Answer:

Final Value= $4,216,869

Explanation:

Giving the following information:

You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.2 percent per year. Your salary will increase at 3 percent per year throughout your career. Your salary is $52,000

Your retirement is in 40 years.

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A=annual payment= 5,200

i= 9.2% interest + 3% year increase= 12.2%

n=40

FV= {5,200*[(1.122^40)-1]}/0.122

FV= $4,216,869

6 0

4 years ago