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2 years ago

QUESTION 3 of 10: Generally, budgets are created for:

Business

2 answers:

MrRissso [65]2 years ago

6 0

Answer:

b) One month

Explanation:

PIT_PIT [208]2 years ago

6 0

<h2>One month</h2>

One month because one year is a verylongperiod of time and cannot be planned whereas one week is very short period of time.

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Floyd Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the dividends are expected to grow at 5

stiks02 [169]

Answer:

5.62%

13.75%

Explanation:

According to the DDM method,

the value of a stock = [dividend x ( 1 + growth rate)] / [cost of equity - growth rate]

67 = 0.4(1.05) / r - 0.05

multiply both sides of the equation by r -0.05

67(r - 0.05) = 0.42

divide both sides of the equation by 67

r - 0.05 = 0.006269

r = 0.0563

= 5.63%

b. the cost of equity using the capm method =

risk free rate of return + beta x ( expected return - risk free return)

5% + 1.25 x (12 - 5) = 13.75%

3 0

3 years ago

Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollec

inysia [295]

Answer:

1. Estimate the appropriate 12/31/2021 balance for Dhaliwal’s allowance for uncollectible accounts.

$19,905 credit balance

2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?

December 31, 202x, adjustment of bad debt expense

Dr Bad debt expense 45,605

Cr Allowance for uncollectible accounts 45,605

= $19,905 + $25,700 = $45,605

Explanation:

Accounts not yet due = $104,000; estimated uncollectible = 15%. ⇒ bad debt = $104,000 x 15% = $15,600

Accounts 1–45 days past due = $14,400; estimated uncollectible = 20%. bad debt = $14,400 x 20% = $2,880

Accounts more than 45 days past due = $5,700; estimated uncollectible = 25%. bad debt = $5,700 x 25% = $1,425

total bad debt expense = $15,600 + $2,880 + $1,425 = $19,905

7 0

3 years ago

Palace Company has two service departments and two user departments. The number of employees in each department is:Personnel 10C

joja [24]

Answer:

$3,483.17

Explanation:

Calculation for the amount of cost allocated to the Cafeteria under the step method

Using this formula

Allocation to Cafeteria=[Cafeteria/(Cafeteria+Producing Department A+Producing Department B)]×Budgeted costs

Let plug in the formula

Allocation to Cafeteria=[25/(25 + 308 + 287)] x $72,450

Allocation to Cafeteria=(25/520)×$72,450

Allocation to Cafeteria=0.0480769231×$72,450

Allocation to Cafeteria=$3,483.17

Therefore the amount of cost allocated to the Cafeteria under the step method would be $3,483.17

8 0

3 years ago

Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $36 per share. She borrows $4,500 from her b

meriva

Answer:

A) Dee´s Margin = 58.33%; B) Remaining Margin if price drops to $26 is 30.56% C) She won´t receive a margin call (but close...)

D) Rate of Return = - 32.36%

Explanation:

Hi, first let´s find out what the initial margin is, for that we have to use the following formula.

$Margin=\frac{Equity}{ValueStocks}$

Now, in order to find the equity, we have to find the total value of the stocks and substract the debt from it, since it was 300 shares at $30 per share, the total value of the investment is $7,800, therefore, its equity is $3,300 ($7,800-$4,500).

So everything should look like this

$Margin=\frac{6,300}{10,800} =0.5833$

So the initial margin was 58.33%

If the price drops to $26 by the end of the year, the remaining margin in her account is:

$Margin=\frac{3,300}{10,800} =0.3056$

So the remaining margin one year later, after the stock price dropped to $26 was 30.56%

Now, in order to find the rate of return on her investment, at the end of the year, we have to remember that the money loaned was at 11%, therefore, the best way to find out the return of this investment is to convert this into money, like such.

First (Gross Return of the stock)

$Gross Return=\frac{Final.P-Initial.P}{Initial.P} x100$

$Gross Return=\frac{26-36}{36} x100=-0.2778$

Ok, we have the gross return, which is -$27.78%

The interest expenses are just as follows.

$Interest Expense=4,500*0.11=-495$

To find the return on the investmen, we need to use the following formula.

$RateReturn=\frac{FinalInvestment-InitialInvestment}{InitialInvesment} x100$

The final investment is: Gross return($)+interest Expenses

$FinalInvest=\frac{300*(-10)+(-4,500*0.11)}{10,800} =-0.3236$

This means that, by the end of the year, her return on the investment was -32.36%. In money, this is - $3,495.

Best of luck.

5 0

3 years ago

A brand manager for a certain company must determine how much time to allocate between radio and television advertising during t

forsale [732]

Answer:

Optimization

Explanation:

Since we were told that the brand manager has limited budget of $25,000 which makes the manager to decide that television adverts is much more effective than radio adverts making him to allocates, at least 70% of the time to television, based on this I wiill run OPTIMIZATION test reason been that optimization will help and enable me to make the best or most effective use of available resource which will in turn Reduce costs while improving the performance which is why the brand manager decide to allocate 70% to Television in order to make the business more efficient as well as cost effective.

5 0

4 years ago