The intrinsic value of Shell Oil stock should be D. $72.00.
The intrinsic value of a stock can be calculated by multiplying the expected earnings per share (EPS) by the average price-to-earnings (P/E) multiple in the industry. In this case, the EPS of Shell Oil is $4.50 and the average P/E multiple in the oil industry is 16.
Therefore, the intrinsic value is calculated as $4.50 × 16 = $72.00. This means that the stock should be valued at $72.00. Therefore, option D is the correct answer.
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The keynesian model:_____.
a. takes into account individual business decisions.
b. is a dynamic model.
c. is a pedagogical model.
d. begins with individual decisions.
The keynesian model is vtakes into account individual business decisions.
Keynesians consider that, because fees are truly rigid, fluctuations in any aspect of spending intake, funding, or government fees purpose output to trade. If authorities spending increases, for example, and all other spending components continue to be constant, then output will boom.
Keynes proposed that the authorities spend more money and reduce taxes to turn a price range deficit, which might increase client demand in the economy. this will, in flip, lead to an growth in average economic pastime and a discount in unemployment.
keynesian economics a form of call for-aspect economics that encourages authorities action to growth and decrease demand and output. demand side economics. the idea that authorities spending and tax cuts help an financial system through raising call for.
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Mike company reported beginning and ending total assets of $240,000 and $320,000, respectively. Its net sales for the year was $341,600. What was mike's asset turnover ratio?
Asset Turnover Ratio = Net Sales / Average Total Assets
=$341,600/ $280,000
=28%
The ratio of a company's sales or revenues to the value of its assets is known as the asset turnover ratio.
It serves as a gauge of how well a business uses its resources to generate money. As a result, asset turnover ratio can be used to gauge a business' performance. The performance of the company improves as the ratio rises. The asset turnover ratio might vary from one organization to another.
A low asset turnover ratio typically denotes issues with excess manufacturing capacity, subpar inventory management, and subpar tax collection methods. It is typically calculated annually for a certain financial year. The ratio of assets to total assets is typically higher in low-margin businesses.
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Imagine that you have a friend who has expressed interest in designing and programming video games. He loves to play video games, and he thinks it would be a lot of fun to be able to work in the industry behind his favorite hobby. What would you say to him to get him to understand the qualifications needed to work in video game design
In order to get to the core of developing and programming video games, one must have a thorough understanding of coding and computer programming, and it might take weeks, months, or even years to finish a game. Getting into the video game industry would need a lot of effort and patience on his part. Programming computers and mobile applications might require years of schooling to complete.
This is further explained below.
What is video game design?Generally, Everything about a game is imagined by a videogame designer. This includes the storyline, the characters, the visuals, and the layouts. Designers get together with other groups to come up with a unified vision.
In conclusion, It should be brought to the audience's attention that getting to the fundamental level of creating and programming video games requires knowledge in coding and computer programming and that it takes weeks, months, or even years to finish developing a game in its entirety. In order for him to be successful in the video game production industry, he would need both time and patience. The education required to program computers and applications might take many years to complete.
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______ is paid communication with potential customers in a public medium, such as newspapers and television.Group of answer choicesJournalism
Advertising is paid communication with potential customers in a public medium, such as newspapers and television
This is further explained below.
What is Advertising?Generally, the activity of generating ads for commercial items or services, either as a job or as a hobby.
In conclusion, Advertising is the exchange of money for the use of a public medium, such as newspapers or television, to communicate with prospective clients.
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Resource providers use accounting information to identify companies with high earnings potential because those companies are better able to ______.
Resource providers use accounting information to identify companies with high earnings potential because those companies are better able to make payment for goods or resources they buy and also have the ability to repay debt.
Why is company with high earning potential sought for?Companies with high earnings potential have the capability to manage their company.
Banks and other agencies look to working with them because they have a viable business tat brings in money from where they can also get their own share if they invest with them.
Therefore,
Resource providers use accounting information to identify companies with high earnings potential because those companies are better able to make payment for goods or resources they buy and also have the ability to repay debt.
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When manufacturing overhead costs are assigned to production in a process cost system, they are debited to.
When manufacturing overhead costs are assigned to production in a process cost system, they are debited to a work in process account.
What Is a Work-in-Progress (WIP)?
Production and supply-chain management terms for partially finished goods that are awaiting completion include "work-in-progress" (WIP). Raw materials, labor, and overhead expenses expended for goods that are in different phases of manufacturing are referred to as "work in progress," or WIP. On the balance sheet, WIP is a part of the asset account for inventory. The finished goods account receives these costs after which they are ultimately passed to the cost of sales.
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What can happen if the framework you choose as a foundation does not fit your organization’s business objectives?
It will lead to wasting money, time, effort and resource.
A business objective is a quantifiable result that a firm wishes to achieve. Many business professionals use the SMART goal strategy, which stands for specified, measurable, attainable, relevant, and time-bound goals.
If a framework that does not match the company is chosen, the organization is always at danger of being a victim of a security assault or a breach that exploits the revealed vulnerabilities in the system.
Therefore, the answer is wasting money, time, effort and resource.
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The 7.5 percent preferred stock of Rock Bottom Floors is selling for $60 a share. What is the firm's cost of preferred stock if the tax rate is 35 percent and the par value per share is $100
The firm's cost of preferred stock is (C) 8.93%.
What are preferred stocks?Preferred stock (also known as preferred shares, preference shares, or simply preferreds) is a type of share capital that can include any combination of attributes not found in common stock, such as the characteristics of both an equity and a debt instrument, and is thus considered a hybrid instrument. Preferred stocks are senior (i.e., higher ranking) to common stock but subordinate to bonds in terms of the claim (or rights to their share of the company's assets, provided such assets are payable to the returnee stock bond) and may have priority over common stock (ordinary shares) in dividend payment and liquidation.To find the firm's cost of preferred stock:
Rp = (.075 × $100)/$84 = .0893,
= 8.93%
Therefore, the firm's cost of preferred stock is (C) 8.93%.
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Complete question:
The 7.5 percent preferred stock of Rock Bottom Floors is selling for $84 a share. What is the firm's cost of preferred stock if the tax rate is 35 percent and the par value per share is $100?
(A) 10.79 percent
(B) 8.13 percent
(C) 8.93 percent
(D) 7.50 percent
(E) 9.14 percent
Uunder which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?
Under the installments for a fixed period annuity settlement option, the annuitant selects the time period for the benefits; the insurer determines how much each payment will be. This option pays for a specific amount of time only, and there are no life contingencies.
Identical payments are made over underneath a specific time body determined by means of the annuitant (e.g. 5, ten, or 20 years). If the annuitant dies in advance of the forestall of the rating period, the annuitant's beneficiary will collect the stableness of the remaining payments due.
A lifestyle insurance preference can be determined on an agreement below which the coverage proceeds are left on deposit with the coverage employer to accrue hobby and are paid to the beneficiary in identical bills for a specific quantity of years.
“Annuity fine” or “Annuity duration sure” is while payments are disbursed to you for a hard and fast time frame. In most instances, you could pick out a period beginning from five years to 30 years with a length of superb annuity.
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The ROI calculation will indicate: Select one: a. the overall quality of a company's earnings. b. the invested capital generated from each dollar of income. c. the sales dollars generated from each dollar of income. d. the percentage of each sales dollar that is invested in assets. e. how effectively a company used its invested capital.
The ROI calculation will indicate (C) how effectively a company used its invested capital.
What is ROI?Return on investment, often known as return on costs, is a ratio of net income to investors. A high ROI indicates that the benefits of the investment outweigh the costs. ROI is used as a performance indicator to evaluate the efficiency of an investment or to compare the efficiencies of several investments.What is ROI calculation?A computation that compares the monetary value of an investment against its cost. (profit minus cost) / cost is the ROI formula. If you earned $10,000 from a $1,000 investment, your return on investment (ROI) would be 0.9, or 90%. This is commonly obtained by using an investment calculator.The ROI calculation will show how well a business utilizes its invested capital.As the description says, the ROI calculation will show how well a business utilizes its invested capital.
Therefore, the ROI calculation will indicate (C) how effectively a company used its invested capital.
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Complete question:
The ROI calculation will indicate:
A. the percentage of each sales dollar that is invested in assets.
B. the sales dollars generated from each dollar of income.
C. how effectively a company used its invested capital.
D. the invested capital generated from each dollar of income.
E. the overall quality of a company's earnings.
Which two business and technical challenges does implementing virtualization within a data center help businesses to overcome?
Two technical and business challenges include physical footprint as well as the power and air conditioning at the data center.
Initially, only one server was built within one machine with one operating system only . The server also required power and a cool environment, also a method of backup is required.
Virtualized servers always require more compatible and robust hardware than a standard machine because a computer or server which has been installed in a virtual machine commonly shares hardware with more than one servers and operating systems.
By placing more than one servers within the same physical case, more space is saved.
The proper licenses for operating virtual systems or applications or both is always required and also need the proper security applications and settings applied on them.
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Dinklage corp. has 6 million shares of common stock outstanding. the current share price is $84, and the book value per share is $5. the company also has two bond issues outstanding. the first bond issue has a face value of $145 million, a coupon rate of 5 percent, and sells for 95 percent of par. the second issue has a face value of $130 million, a coupon rate of 4 percent, and s
The answers to the questions are given below.
A. The company's capital structure weights on a book value basis are:
Equity = 9.84%Debt = 90.16%B. The company's capital structure weights on a market value basis are:
Equity = 64.55%Debt = 35.45%What is the calculations about?A. The company's capital structure weights on a book value basis are:
Firm's Outstanding common stock = 6 million shares
Current share price = $84
Book value per share = $5
Hence, Total equity book value = $30 million (6,000,000 x $5)
Total equity market value = $504 million (6,000,000 x $84)
First bond's face value = $145 million
Coupon rate = 5%
Selling price = 95% of par
Market value of first bond = $145 x 95%
= $137.75 million
The Second bond's face value = $130 million
Coupon rate = 4%
Market value = $130 x 107% = $139.1 million
Total market value of bonds = $276.85 million ($137.75 + $139.1)
Book value of bonds = $275 million ($145 + $130)
Therefore, the company's capital structure by book value:
Equity = $30 million
Debt = $275 million
So, Total firm's value = $305 million
Hence:
Equity = $30/$305 x 100 = 9.84%
Debt = $275/$305 x 100 = 90.16%
B. Hence company's capital structure by market value:
Equity = $504 million
Debt = $276.85 million
Total firm's value = $780.85 million
Therefore:
Equity = $504/$780.85 x 100 = 64.55%
Debt = $276.85/$780.85 x 100 = 35.45%
See full question below
Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $84, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $145 million, a coupon rate of 5 percent, and sells for 95 percent of par. The second issue has a face value of $130 million, a coupon rate of 4 percent, and sells for 107 percent of par. The first issue matures in 24 years, the second in 9 years. Both bonds make semiannual coupon payments.
Required:
a. What are the company's capital structure weights on a book value basis?
b. What are the company's capital structure weights on a market value basis?
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Household production, such as baking bread at home, is not included in gdp because it:.
Household production, such as baking bread at home, is not included in GDP because it is not a market transaction.
What transactions are included in GDP?The total private and public consumption, government expenditures, investments, increases in private inventories, paid-in building expenses, and the foreign balance of trade are all included in the computation of a nation's GDP. (Imports are deducted from the amount while exports are added.)
Moreover, these are intermediate goods that are not included in GDP.
Why are intermediate not included in GDP?When calculating the gross domestic product, economists do not include intermediary products (GDP). The market worth of all finished products and services generated in the economy is gauged by GDP. These items would be tallied twice, thus they are not included in the computation.
Therefore, baking bread at home is not included in GDP because it is not a market transaction.
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The seller reviews and signs the offer at 6:00 pm Saturday. She texts her acceptance to her broker. The broker does not read the text until 7:00 am Sunday, and then immediately forwards it to the buyer's broker. Meanwhile, the buyer changes her mind and texts a withdrawal of the offer directly to the seller. A few minutes later, the seller's broker texts the original notice of acceptance to the seller. Is there a binding contract?
No, there is no binding contract because the withdrawal of the offer was made and communicated to the seller before the buyer was notified of the acceptance.
Contract, within the simplest definition, is a promise enforceable by law. The promise can be to do something or to refrain from doing something. The making of an agreement requires the mutual assent of or more persons, one of them normally making an offer and some other accepting.
Offer and acceptance are commonly recognized as vital requirements for the formation of an agreement, and evaluation in their operation is a traditional approach in agreement regulation. The offer and recognition method, advanced in the 19th century, identifies a second formation while the parties are of one mind.
Any change to an offer creates a new offer, referred to as a "counteroffer." Like a proposal, a counteroffer can be withdrawn by the seller at any time before it is signed via the purchaser and the signed attractiveness is brought back to the seller or his agent.
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g Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP, unemployment, and inflation
Expansionary monetary policy shifts AD to the right.
What is Expansionary monetary policy?Expansionary policy, often known as loose monetary policy, expands the availability of money and credit in order to stimulate economic growth. During difficult economic circumstances, a central bank may use expansionary monetary policy to reduce unemployment and stimulate growth.Impacts on GDP, unemployment, and inflation by the increase of supply of money:The Federal Reserve begins to grow the money supply at an increasing rate. The impact on GDP, unemployment, and inflation would be significant. AD is shifted to the right by expansionary monetary policy.Therefore, expansionary monetary policy shifts AD to the right.
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Wang co. manufactures and sells a single product that sells for $420 per unit; variable costs are $231 per unit. annual fixed costs are $909,000. current sales volume is $4,220,000. compute the contribution margin per unit.
The contribution margin per unit is 4809.52.
What is the contribution margin?Contribution margin is the level of output at which revenue would equal zero.
Contribution margin = fixed cost / (price - variable cost)
909,000 / (420 - 231)
909,000 / 189 = 4809.52
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To avoid problems with schedules and deadlines, contractors are held accountable with _________ clauses in the contract for failure to perform up to standard.
To avoid problems with schedules and deadlines, contractors are held accountable with penalty clauses in the contract for failure to perform up to standard.
Party who comes in contract to perform certain tasks and breach the compensation in case the contract is failed to be completed is called a penalty clause resulting to the payment of certain penalty to the aggrieved party.
There are certain deadlines, schedules given by contractors so they could complete the task on time resulting to failure of performance upto a standard can lead a penalty .
The sum payable is the agreed amount or completion of work with providing spare days .
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In ________ cultures, economic systems tend to provide incentives and rewards for a person's private business initiatives.
In individualist cultures, economic systems tend to provide incentives and rewards for a person's private business initiatives.
economic incentives in private business
Monetary structures in individualist societies frequently offer incentives and rewards for an individual's private running of a business. Economic incentives are motivations to do particular things. They urge people to go after their financial goals. Money is a financial incentive to start a business or look for employment. Improvement can be encouraged by the number of tax breaks, grants, and Economic incentives. Incentives are exemptions, credits, deductions, or exclusions that lower a company's burden to the state or federal government in exchange for taking specific actions.
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________ supply chain decisions are made affecting how products are developed, manufactured, moved, and sold.
Hundreds of times each day supply chain decisions are made affecting how products are developed, manufactured, moved, and sold.
Supply chain. It consists of all parties directly or indirectly involved in the procurement of products or raw materials. Supply chain management (SCM) involves managing the flow of information between stages in the supply chain to maximize the effectiveness and profitability of the entire supply chain.
Decision stages can be defined as different stages of supply chain management for making actions or decisions related to a product or service. Successful supply chain management requires decisions about the flow of information, products, and money, which fall into three decision phases.
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When purchase costs of inventory regularly decline, which method of inventory costing will yield the lowest gross profit and income
LIFO method of inventory costing will yield the lowest gross profit and income.
The last in, first out (LIFO) approach for inventory accounting is utilized.
According to LIFO, expenses are deducted starting with the expenditures of the most recent goods that were bought (or produced).
Only in the United States is LIFO practiced, and it is governed by generally accepted accounting rules (GAAP).
The average cost approach and first in, first out (FIFO) are other techniques for accounting for inventories.
When prices are rising, using LIFO often reduces net revenue but offers tax benefits.
Hence, When purchase costs of inventory regularly decline, the LIFO method of inventory costing will yield the lowest gross profit and income.
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Which payment option can offer additional security like fraud protection? a. cash check b. debit card c. credit card
A credit card can offer additional security like fraud protection.
The answer is option C.
Credit cards provide higher consumer protections against fraud in comparison with debit playing cards related to a bank account. newer debit cards provide more credit score card-like protection, at the same time as many credit score playing cards no longer fee annual costs.
Debit cards can help you draw a budget directly out of your checking account. Debit cards generally offer more fraud protection than credit playing cards. Debit playing cards never require a signature to finalize a buy like credit score playing cards. Debit playing cards price higher hobby quotes on purchases than credit cards.
If a person used your debit card without your information or authorization, your liability is blanketed by way of the electronic finances Transfer Act, which gives you the right to assign fraudulent transactions.
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Answer:
credit card
Explanation:
Several times during the winter, supervisor Clyde goes ice fishing with Bubba, one of the workers in his department. After fishing they often have a few beers together. When it comes time for Clyde to write a performance evaluation of Bubba, Clyde faces the ethical dilemma of ________.
Several times during the winter, supervisor Clyde goes ice fishing with Bubba, one of the workers in his department. After fishing they often have a few beers together. When it comes time for Clyde to write a performance evaluation of Bubba, Clyde faces the ethical dilemma of conflict of interest.
An ethical dilemma is what?Any alternative that requires the agent to violate or compromise on their ethical norms presents an ethical problem in a decision-making situation.
We note that the following three characteristics can be used to categorize ethical dilemmas:
The agent must have a decision to make or be given an option.There must be multiple options open to the agent.The agent understands that every option forces them to give up some personally held ethical principle or value.Ethics are inherently contradictory, hence they do give rise to ethical problems. Employees may encounter situations where lying or breaching the law appears to serve other vital goals like increasing pay or avoiding layoffs.
What kinds of ethical dilemmas are there?
In the course of carrying out their tasks and obligations, agents may run across a variety of ethical problems, including the following:
Epistemic conundrumsSelf-imposed conundrumWorld-imposed conundrumA conflict of obligationProhibition conundrum.Learn more about the ethical dilemma with the help of the given link:
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Spence recently graduated from high school. He is learning to be a drywaller by working with Phillip, who has more than a decade of experience in the trade. After several years, Spence expects to apply for jobs in the field on his own, then, one day, perhaps start his own business. Spence's current training exemplifies:
Answer:
an apprenticeship
Explanation:
Cindy’s car wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes). The firm's total cost is:______.
a. $100
b. 5200
c. $300
d. 5500
The firm's total cost is $500
AVC= 2
AFC = 3
ATC = AVC + AFC
= 2 + 3
=5
Output = 100
TC = ATC * OUTPUT
= 5 * 100
= 500
A firm is a for-profit enterprise, usually incorporated as a partnership, providing professional services such as legal and accounting services. The corporate theory assumes that firms exist to maximize profits
A company is a business that sells services or products, usually professional services, for profit. Business, on the other hand, refers to a business that engages in income-generating activities involving the sale of goods and services and includes all business divisions and structures.
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Intuitive decision making uses ____ to make decisions
Answer:
Judgment.
Explanation:
Intuitive decision making uses ____ to make decisions. Judgment.
Intuitive decision making uses judgement to make decisions. Correct answer is judgement.
What do you mean by Decision?Process of deciding is known as decision.
Rational decision-making is based on reasoning, evidence, and facts. Choosing among possibilities without using logic or analysis is what intuitive decision-making entails. It entails making decisions based on emotions or inadvertently recalling a memory.
Using your instincts to guide your decision-making is part of the intuitive paradigm. When the team is knowledgeable about the topic, this model is suitable. Generally speaking, it is less organized than other models and depends on team members using prior knowledge to spot patterns and use related solutions.
Therefore, Judgement is used to make decision in Intuitive decision making.
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The interest rate charged to banks to borrow from the federal reserve is the _____
The interest rate charged to banks to borrow from the federal reserve is the discount rate.
The discount rate is known as the interest rate charged by the Federal Reserve on loans to banks. The Federal Open Market Committee consists of the Board of Governors, the President of the Federal Reserve Bank of New York, and the Presidents of five other regional Federal Reserve Banks.
The federal Funds Rate is the rate banks charge each other for lending the Federal Reserve money overnight. A country's central bank uses it in addition to other tools to promote economic stability by increasing or decreasing borrowing costs
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The definition of Blank______ states: the difference between money coming into a country (from exports) and money leaving the country (from imports) plus money flows coming into or leaving a country from other factors such as tourism, foreign aid, military expenditures, and foreign investment.
The definition of Balance of Payments states:
The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment.
What is Balance of Payments ?The balance of payments is a tool in international trade that demonstrates the financial transaction made by a particular country with foreign countries. Its most often includes export, import and transfer payments.
Theoretically, it should be zero as a country's assets should equal the liabilities. However, in practice, that is not always the case, as the country's debits and credits can create a discrepancy in the balance of payments, which creates a surplus or deficit.
A favorable balance of payment means that a country exports exceed imports. B.O.P records economic transactions of goods and services as well as other payments such as international aid, capital flow, and international remittances. A Favorable or positive balance of payment means that the aggregate of country foreign inflow exceeds outflows.
Thus, we can say that above definition state Balance of Payments.
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International trade is fundamentally a?
International trade is fundamentally a win win situation.
What is international trade?International trade is the process by which goods and services are traded between countries. People and countries have access to goods and services that are either unavailable or more expensive domestically because to global trade.
The exchange of money, goods, and services across international boundaries or regions is a result of a need or desire for certain commodities or services. The bulk of countries' gross domestic products benefit greatly from this trade.
The most common types of trade restrictions are tariffs, quotas, and nontariff barriers. In international trade, a tariff is an import tax imposed by the federal government that raises the price of the good for the customer. Often referred to as fees or import duties, tariffs usually begin by placing restrictions on certain goods.
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A taxing jurisdiction has a mill rate of 14.7. what is an owner’s tax bill if his assessed value is $250,000?
A taxing jurisdiction has a mill rate of 14.7. the owner’s tax bill would be $3,675.00. Over 55,000 jurisdictions make up the United States. The taxing authority that imposes the tax is known as a jurisdiction. A tax jurisdiction code is used to identify each jurisdiction.
The place where the transaction will be taxed is specified by this code. The tax jurisdiction code is a key that, along with the tax code and other factors, defines the tax amount and how the total tax amount is split between the several taxing authorities for payment. For calculating procedure TAXUSJ,
The system can handle up to four jurisdiction levels, and for TAXUSX, up to six jurisdiction levels. Each level of jurisdiction has a unique jurisdiction code.
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What have lenders established to protect borrowers from unlimited increases in the interest rate?
Borrowers are protected from unlimited increases in the interest rate, lenders establish " interest rate caps."
The first cap which is known as the periodic cap sets the amount of increase or decrease which is allowed in each adjustment period. The second cap which is known as overall or aggregate cap sets a maximum interest-rate increase over the lifespan of the loan.
An interest rate cap is a limit on the amount how much high an interest rate can rise on variable-rate debt. Interest rate caps can be fixed across all types of variable rate products. But these are commonly used in variable-rate mortgages only or in the specifically adjustable-rate mortgage loans only.
Interest rate caps can also have an overall limit on the interest for the loan and also be used to limit incremental increases in the rate of a loan.
Interest rate caps provide borrowers a good protection against the dramatic rate increases and it also provide a ceiling for maximum interest rate costs.
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