Answer:

**Answer:**

See the explanation below:

**Explanation:**

**a- Calculate ROE and EPS under each of the economic scenarios before any debt is issued.**

**Under an expansion**

Earnings before interest and taxes (EBIT) = $23,000 * (100% + 20%) = $27,600

Earnings after taxes = $27,600 * (100% - 35%) = $17,940

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $17,940 / $180,000 =

0.0997, or 9.97%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $17,940 /

6,000 = $2.99 per share

**Under a recession**

Earnings before interest and taxes (EBIT) = $23,000 * (100% - 30%) = $16,100

Earnings after taxes = $16,100 * (100% - 35%) = $10,465

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $10,465 / $180,000 =

0.0581, or 5.81%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $10,465 /

6,000 = $1.74 per share

**b- Repeat part a, assuming that the company goes through with the capitalization.**

**Under an expansion**

Earnings before interest and taxes (EBIT) = $23,000 * (100% + 20%) = $27,600

Interest on debt = $75,000 * 7% = $5,250

Page 2 of 2

Earnings after interest = $27,600 - $5,250 = $22,350

Earnings after taxes = $22,350 * (100% - 35%) = $14,527.50

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $14,527.50/ $180,000 =

0.0807, or 8.07%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $14,527.50 /

6,000 = $2.42 per share

**Under a recession**

Earnings before interest and taxes (EBIT) = $23,000 * (100% - 30%) = $16,100

Interest on debt = $75,000 * 7% = $5,250

Earnings after interest = $16,100 - $5,250 = $10,850

Earnings after taxes = $10,850 * (100% - 35%) = $7,052.50

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $7,052.50 / $180,000 =

0.0392, or 3.92%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $7,052.50 /

6,000 = $1.18 per share

**c- Calculate the percentage changes in EPS when the economy expands or enters a recession.**

Percentage change under expansion = ($2.42 - $2.99)/$2.99 = 0.1902 decrease, or 19.02% decrease.

Percentage change under recession = ($1.18 - $1.74)/ $1.74 = 0.3218 decrease, or 32.18% decrease

Select all that apply.Select the items that describe wants (not needs).latest laptopmost expensive shoesextra pair of jeanswater

The owner of Cafe Bakka is considering investing in a new point-of-sale system. He spent $10,000 on his current point-of-sale system five years ago. The new point-of-sale technology will cost $25,000, and will dramatically improve the speed at which his counter staff will be able to take orders, and reduce the owner's administrative work. How should the owner account for the cost of the current point-of-sale technology when performing the capital budgeting analysis to determine whether or not to purchase the new point-of-sale technology? a. He should ignore the cost of the current point-of-sale system when evaluating the cost of the new point-of-sale system. b. He should include the cost of the current point-of-sale system as part of the cost of the new point-of-sale system.

Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price: Big Brow High Price Low PriceLittle Kona Enter $2 million, $3 million -$2 million, $1 million Don't Enter $0, $8 million $0,$3 millionBoth Little Kona and Big Brew have a dominant strategy in this game.a. Trueb. False

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $234,000 $204,000 $56,000 Equipment 84,000 152,000 27,000 Lily's taxable income before these transactions is $194,500. What are Lily's taxable income and tax liability for the year

Type the correct answer in the box. Spell all words correctly.Which process does a court use to select a jury?The court selects a jury from a jury pool through a process known as _____.

The owner of Cafe Bakka is considering investing in a new point-of-sale system. He spent $10,000 on his current point-of-sale system five years ago. The new point-of-sale technology will cost $25,000, and will dramatically improve the speed at which his counter staff will be able to take orders, and reduce the owner's administrative work. How should the owner account for the cost of the current point-of-sale technology when performing the capital budgeting analysis to determine whether or not to purchase the new point-of-sale technology? a. He should ignore the cost of the current point-of-sale system when evaluating the cost of the new point-of-sale system. b. He should include the cost of the current point-of-sale system as part of the cost of the new point-of-sale system.

Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price: Big Brow High Price Low PriceLittle Kona Enter $2 million, $3 million -$2 million, $1 million Don't Enter $0, $8 million $0,$3 millionBoth Little Kona and Big Brew have a dominant strategy in this game.a. Trueb. False

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $234,000 $204,000 $56,000 Equipment 84,000 152,000 27,000 Lily's taxable income before these transactions is $194,500. What are Lily's taxable income and tax liability for the year

Type the correct answer in the box. Spell all words correctly.Which process does a court use to select a jury?The court selects a jury from a jury pool through a process known as _____.

B)Using exponential smoothing with ? = 0.20, if the exponential forecast for week 3 was estimated as the average of the first two weeks [(315 + 415)/2 = 365], what would you forecast week 5 to be? (Round your answer to the nearest whole number.)

Week 1 315

Week 2 415

Week 3 615

Week 4 715

**Answer: A. 582 ; B. 475**

**Explanation:**

A. Three week moving average

three moving average requires us to take the last three weeks forecast in calculating the forecast for following week, to calculate week 5 forecast we will start from week 2 to week 4.

Week 2 = 415

Week 3 = 615

Week 4 = 715

Three week moving average = (WEEK 2 + Week 3 + Week 4)/N

Three week moving average = (415 + 615 + 715)/3

Three week moving average = 1745/3 = 581.6667 = **582**

using three week moving average the forecast for week 5 is **582**

B.Exponential smoothing

Exponential smoothing forecast for week 3 is 365, to calculate the forecast of week 5 we need to find a forecast for week 4 first using exponential smoothing

S = smoothing Factor = 0.2

D = most recent forecast (week 3) = 615

F = most recent forecast under exponential smoothing = 365

Forecast(week 4) = (D × S) + (F × (1 - S))

Forecast(week 4) = (615 × 0.20) + (365 × (1 - 0.20))

Forecast(week 4) = 123 + 292 = **415**

The forecast for week 4 using exponential smoothing is** 415**

Week 5 forecast calculation

S = smoothing Factor = 0.2

D = most recent forecast (week 4) = 715

F = most recent forecast under exponential smoothing = 415

Forecast(week 5) = (D × S) + (F × (1 - S))

Forecast(week 5) = (715 × 0.20) + (415 - (1 - 0.20))

Forecast(week 5) = 143 + 332= **475**

forecast for week 5 is **475**

The forecast for the next week using a three-week moving average would be 448 items. Using exponential smoothing with a smoothing constant of 0.20, the forecast for week 5 would be 435 items.

To answer both parts of your question:

A) The** three-week **moving average is calculated by taking the average of the past 3 weeks, so for week 4, it would be the average of weeks 1, 2, and 3: [(315 + 415 + 615)/3 = 448]. Therefore, the forecast for week 4 using a three-week moving average would be 448 items, rounded to the nearest whole number.

B)Exponential **smoothing **requires the use of a smoothing constant, in this case, ? = 0.20, and the previous actual and forecasted values. Using the given exponential forecast for week 3 of 365, the forecasted demand for week 5 would be calculated as follows: Forecast = ? * Actual_previous + (1-?) * Forecast_previous = 0.20 * 715 + (1-0.20) * 365 = 435. Therefore, your week 5 forecast would be 435 items, rounded to the nearest **whole **number.

#SPJ3

**Answer:**

a) 5.45%

b) 6.98%

**Explanation:**

We are** given the following** information in the question:

Mean, μ = 0.8%

Standard Deviation, σ = 2%

We are given that the distribution of profit is a bell shaped distribution that is a** normal distribution.**

**Formula:**

**a) We have to find the value of x such that the probability is 0.99**

P(X < x)

Calculation the value from standard normal z table, we have,

Thus, 5.45% of assets does the company need to be 99% sure that it will have a positive equity at the end of the year.

**b) We have to find the value of x such that the probability is 0.999**

P(X < x)

Calculation the value from standard normal z table, we have,

Thus, 6.98% of assets does the company need to be 99% sure that it will have a positive equity at the end of the year.

**Answer:**

The amount that should be in its savings account is __ $40,554.48__.

**Explanation:**

To calculate this, formula for calculating the present value of an ordinary annuity is employed as follows:

PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

PV = Present value of or amount in the saving =?

P = yearly scholarship payment = $5,000

r = interest rate = 4%, 0.04

n = number of years = 10

Substitute the values into equation (1) to have:

PV = $5,000 * [{1 - [1 / (1 + 0.04)]^10} / 0.04]

PV = $5,000 * [{1 - [1 / 1.04]^10} / 0.04]

PV = $5,000 * [{1 - 0.961538461538461^10} / 0.04]

PV = $5,000 * [{1 - 0.675564168825795} / 0.04]

PV = $5,000 * [0.324435831174205 / 0.04]

PV = $5,000 * 8.11089577935512

PV = $40,554.48

Therefore, the amount that should be in its savings account is __ $40,554.48__.

The present value of an annuity formula can be used to determine the amount needed in the savings account.

To determine how much should be in its savings account to fund one $5,000 scholarship each year for the next 10 years, we can use the formula for the **present value** of an annuity. The formula is:

PV = PMT * ((1 - (1 + r)^(-n)) / r)

Where PV is the present value, PMT is the payment amount, r is the interest rate, and n is the number of periods. In this case, the payment amount is $5,000, the interest rate is 4% (or 0.04), and the number of periods is 10. Plugging these values into the formula, we get:

PV = $5,000 * ((1 - (1 + 0.04)^(-10)) / 0.04) = $42,179.84

Therefore, North Carolina State University's Irwin College of Engineering should have $42,179.84 in its savings account to fund one $5,000 scholarship each year for the next 10 years.

#SPJ11

a. Gamma should export both tea and pots to Sigma

b. Sigma should export tea to Gamma and Gamma should export pots to Sigma

c. Gamma should export tea to Sigma and Sigma should export pots to Gamma

d. Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots

**Answer:**

The correct answer is "C"

**Explanation:**

Production prospects Frontier utilizes the idea of chance expense of creation. It is the measure of other great relinquished or not created so as to deliver a specific decent.

For Gamma, the opportunity cost of delivering one unit of tea is 120/120 = 1 unit of pot. For Sigma, this open door cost is 120/40 = 3 units of pot. It shows that the open door cost of delivering tea is lower in Gamma. Consequently Gamma ought to represent considerable authority in the creation of tea and should trade it. Sigma ought to represent considerable authority underway of pots and fare it.

Economy of Economy Stock A Stock B

Recession .20 .010 – .35

Normal .55 .090 .25

Boom .25 .240 .48

a. Calculate the expected return for the two stocks.'

**Answer:**

** 11.15%**

**Explanation:**

The formula to compute the expected rate of return is shown below:

**Expected rate of return = (Recession probability× Possible Returns ) + (Normal Probability × Possible Returns ) + (Boom Probability × Possible Returns 3) **

= (0.20 × 0.010) + (0.55 × 0.090) + (0.25 × 0.240)

= 0.002+ 0.0495 + 0.06

=** 11.15%**

Simply we multiply the probability with its return so that accurate rate could come.

purchase order

employee time ticket

receiving document

**Answer:**

job cost sheet

**Explanation:**

The job cost sheet refers to the statement used to report production costs and is developed by businesses using a work-order charging system to measure and assign costs of goods and services.

is the responsibility of the accounts department to chart all production costs (primary supplies, direct labor and overhead production) on the work cost sheet. For each worker, a separate job expense sheet is arranged.

Job cost sheet not gets utilized for paying work expenses only, it's also component of the reporting records of the business. It is also used in the system account as something of a subordinate ledger to the project as it includes all the information about the work being done.