Steel 1.18 30%

Financial

Services 1.14 70%

The average tax rate for these industries is 40%.

In the most recent period, the company you are analyzing earned 70% of its operating income from steel and 30% from financial services. The firm also had a debt/equity ratio of 150%, and a tax rate of 30%. Estimate the levered beta for the company.

Answer:

**Answer:**

The levered beta for the company is 1.93.

**Explanation:**

Levered beta for the company = (Weight of steel business*levered beta of steel business) + (Weight of financial services business*levered beta of financial services business)

Levered beta of steel business = Unlevered beta of steel sector*[1+(1 - firm's tax rate)*(firm's debt/equity ratio)

levered beta of financial services business = Unlevered beta of financial services sector*[1+(1 - firm's tax rate)*(firm's debt/equity ratio)

Unlevered beta of steel sector = Current beta of steel sector/[1+(1 - avg. tax rate of firms in the sector)*(Avg. debt/equity ratio of the sector)

Unlevered beta of steel sector = 1.18/[1+((1-0.4)*0.3)]

Unlevered beta of steel sector = 1.18/[1+(0.6*0.3)]

Unlevered beta of steel sector = 1.18/(1+0.18)

Unlevered beta of steel sector = 1.18/1.18

Unlevered beta of steel sector = 1

Levered beta of steel business = 1*[1+((1-0.3)*1.5)]

Levered beta of steel business = 1*[1+(0.7*1.5)]

Levered beta of steel business = 1*(1+1.05)

Levered beta of steel business = 1*2.05

Levered beta of steel business = 2.05

Unlevered beta of financial services sector = Current beta of financial services sector/[1+(1 - avg. tax rate of firms in the sector)*(Avg. debt/equity ratio of the sector)

Unlevered beta of financial services sector = 1.14/[1+((1-0.4)*0.7)]

Unlevered beta of financial services sector =1.14/[1+(0.6*0.7)]

Unlevered beta of financial services sector = 1.14/(1+0.42)

Unlevered beta of financial services sector = 1.14/1.42

Unlevered beta of financial services sector = 0.80

Levered beta of financial services business = 0.8*[1+((1-0.3)*1.5)] = 0.8*[1+(0.7*1.5)] = 0.8*(1+1.05) = 0.8*2.05 = 1.64

Levered beta for the company = (0.7*2.05) + (0.3*1.64)

Levered beta for the company = 1.44 + 0.49

Levered beta for the company = 1.93

Hence, the levered beta for the company is 1.93.

Answer:
### Final answer:

### Explanation:

### Learn more about Levered Beta Calculation here:

To estimate the levered beta for a company with operations in multiple sectors - steel and financial services in this case - you take a **weighted average** of the sector betas based on earnings distribution to get the unlevered beta. You then adjust for the company's debt/equity ratio and tax rate to get the levered beta. The estimated levered beta for this company is 2.378.

To estimate the levered beta for the company, we first need to consider the betas for each of the sectors the company operates in - steel and financial services. Given the firm's earnings distribution, the **unlevered beta** is computed as 0.7*Steel Beta + 0.3*Financial Services Beta = 0.7*1.18 + 0.3*1.14 = 1.16.

Next, to calculate the levered beta, we need to factor in the firm's debt/equity ratio. We use the formula for the levered beta: Levered Beta = Unlevered Beta * (1 + (1 - Tax Rate) * D/E ratio). Substituting the values we have: Levered Beta = 1.16 * (1 + (1 - 0.3) * 1.5) = 1.16 * 2.05 = 2.378. Therefore, the estimated levered beta is 2.378.

#SPJ11

The widespread acceptance that bacteria causes diseases helped lead to a public health movement in the late nineteenth and early twentieth centuries. This movement eventually brought sewers, clean drinking water, and garbage removal to all U.S. cities. The public health movement in the United States in the late nineteenth and early twentieth centuries was like a technological advance to the country's production possibilities, since both ____________ expanded secured the economy's productive capacity, the former by increasing the nation's ________ degree of sophistication effective workforce .

Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows:Direct materials Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter’s budgeted materials requirements.Prepare a direct materials budget for the second quarter.

Tanya is the night supervisor for a data processing company. She supervises 26 workers who perform routine jobs that require minimal training. Which of the following statements would indicate that Tanya is following the transformational model of leadership?Multiple Choice:O Tanya wants to develop a partnership with his team illustrated by reciprocal influence, mutual trust, respect and liking, and a sense of common fates.O Tanya seeks to motivate employees to pursue organizational goals above their own self-interests.O Tanya likes to provide the guidance and support needed by employees and ties meaningful rewards to completion of objectives.

A $20,000 municipal bond is offered for sale at $18,000. The bond interest rate is 6 percent per year payable semiannually. The bond will mature and be redeemed at face value 5 years from now. If you purchase the bond, the first premium you will receive is 6 months from today. You have decided that you will invest $18,000 in the bond if your effective semi-annual yield is at least 4 percent. What effective semi-annual rate will this investment yield?

Mary signed up and paid $660 for a 6 month ceramics course on June 1st with Choplet Ceramics. As of August 1st, Choplet’s accounting records would indicate:

Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows:Direct materials Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter’s budgeted materials requirements.Prepare a direct materials budget for the second quarter.

Tanya is the night supervisor for a data processing company. She supervises 26 workers who perform routine jobs that require minimal training. Which of the following statements would indicate that Tanya is following the transformational model of leadership?Multiple Choice:O Tanya wants to develop a partnership with his team illustrated by reciprocal influence, mutual trust, respect and liking, and a sense of common fates.O Tanya seeks to motivate employees to pursue organizational goals above their own self-interests.O Tanya likes to provide the guidance and support needed by employees and ties meaningful rewards to completion of objectives.

A $20,000 municipal bond is offered for sale at $18,000. The bond interest rate is 6 percent per year payable semiannually. The bond will mature and be redeemed at face value 5 years from now. If you purchase the bond, the first premium you will receive is 6 months from today. You have decided that you will invest $18,000 in the bond if your effective semi-annual yield is at least 4 percent. What effective semi-annual rate will this investment yield?

Mary signed up and paid $660 for a 6 month ceramics course on June 1st with Choplet Ceramics. As of August 1st, Choplet’s accounting records would indicate:

a. Sam faces economies of scale; Liza faces diseconomies of scale; Tina faces constant returns to scale.

b. Sam faces economies of scale; Tina faces diseconomies of scale; Liza faces constant returns to scale.

c. Tina faces economies of scale; Sam faces diseconomies of scale; Liza faces constant returns to scale.

d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scal

Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale

Explanation:

Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.

Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".

**Answer:**

**Part 1. Calculate the total prime cost for last week**

Direct materials 28,000

__ Add __Direct labor 28,000

Prime Cost 56,000

**Part 2. Calculate the per-unit prime cost**

per-unit prime cost=$56,000/5,600

=$10.00

**Part 3. Calculate the total conversion cost for last week**

Direct labor 28,000

__Add __Manufacturing Overheads 55,000

Total conversion cost 83,000

**Part 4. Calculate the per-unit conversion cost.**

per-unit conversion cost=$83,000/5,600

=$14.82

**Explanation:**

**Part 1. Calculate the total prime cost for last week**

Prime Cost = Direct Materials + Direct Labor

**Part 2. Calculate the per-unit prime cost**

Per Unit Prime Cost = **total prime cost/number of units manufactured**

**Part 3. Calculate the total conversion cost for last week**

Conversion Cost = Direct Labor + Manufacturing Overheads

**Part 4. Calculate the per-unit conversion cost.**

Per-unit conversion cost =Total Conversion Cost / number of units manufactured

The total prime cost last week was $56,000, and the per-unit prime cost was $10. The total conversion cost was $83,000, and the per-unit conversion cost was $14.82.

The prime cost is calculated by adding the costs of the direct materials and direct labor. Therefore, the total prime cost for Slapshot Company last week was $28,000 (direct materials) + $28,000 (direct labor) = **$56,000**.

The per-unit prime cost is calculated by dividing the total prime cost by the number of units produced. Therefore, it is $56,000 ÷ 5,600 hockey sticks = **$10 per unit** (rounded to the nearest cent).

The conversion cost is calculated by adding the cost of direct labor and manufacturing overhead. Therefore, the total conversion cost last week was $28,000 (direct labor) + $55,000 (overhead) = **$83,000**.

The per-unit conversion cost is calculated by dividing the total conversion cost by the number of units produced. Therefore, it is $83,000 ÷ 5,600 hockey sticks = <-strong>$14.82 per unit (rounded to the nearest cent).

b.Efficient use of housing space results.

c.Nonprice methods of rationing emerge.

d.The quantity of available rental housing units falls.

**Answer: **C) and D) answers.

**Explanation: **The rental market must have a free operation, that is, supply and demand have to set their price level, especially since, in this case, the product is not fungible, that is, it is not interchangeable. Each floor varies in location, number of square meters, construction qualities, etc. You cannot set a fixed reference price. Another of the most repeated consequences by experts is that the limitation will cause a reduction in supply, but demand will not go down, which will necessarily lead to greater tension in rental prices.

**Answer:**

The expected January 31 Accounts Payable balance is **$6,590**

**Explanation:**

The December Accounts Payable balance is $7,900 - this is the 50% purchase amount in December and will be paid in January.

In January, Fortune Company will pay 50% purchase amount in December and 50% purchase amount in January.

Expected payment = $7,900 + 50% x $13,180 = $14,490

At January 31, the expected Accounts Payable balance:

$13,180 x 50% = **$6,590**

The expected Accounts Payable balance for Fortune **Company** at the end of January is $10,540, taking into account the payables carried over from December and half of January's purchases.

The question is regarding the calculation of the expected Accounts Payable balance at the end of January for Fortune Company. The company's payment schedule shows a split of 50% payment in the month of purchase and 50% in the following month. To compute the January 31 Accounts Payable, we need to consider the December Accounts Payable which is to be paid in January (50% of $7,900 = $3,950), and half of January's purchase ($13,180) which will amount to $6,590. Hence the expected January 31 Accounts Payable is: $3,950 (**December's** payable) + $6,590 (January's payable) = $10,540.

#SPJ12

B. grass

C. grain

D. milk

Answer:

The finest veal is milk-fed.

Explanation:

The finest veal is** milk-fed.**

**Option - D**

**Explanation:**

The meat of calves or **younger male** dairy breeds is said to be veal whereas the meat of older ones is called beef. Since the male calves cannot lactate, they are used for veal. In Culinary, the veal is mostly used in the form of cutlets, like **cotoletta (Italian) or Wiener Schnitzel**, the famous Austrian dish.

The majority of veal meat produced in the US is from **milk-fed calves**. The milk-fed veal has a **firm, velvety and fine** appearance with ivory or creamy pink in color.

**Answer:**

**1. Cost of goods manufactured =437,000.00**

**2. cost per hockey stick= $230 **

**Explanation:**

**Total product cost**: The sum of direct material cost, direct labour cost and overhead.

**Direct material cost** is the costs of all specific materials required to product a product. For example, cost of the flour, sugar used to produce cakes. Where there exist inventory of materials at the beginning and end of a period, the cost of material used is calculated as follows:

**Cost of material used is calculated as = Opening stock + Purchases - closing stock**

Direct labour cost : the cost of the man hours used directly for the purpose of production. The cost of hours paid to the tailors for making garments in a clothing factory . *It is arrived as the active hours used for production × wage rate per hour.*

**Overhead : **Sum of the indirect costs. These include expenditutures on materials , labour and expenses incurred not specifically for a particular product. Example are cost of toiletries used in a bakery, salaries of the security guard , rent of the bakery, e.t.c.

**Opening working in progress** represents accumulated production cost incurred on goods for which production commenced in a prior period but was not concluded. These items will need to be continued in the following period, hence further production costs would be incurred.

**Closing working in progress **this represents the cost production work for which work is yet to be completed as the end of the current period.

Working in Progress is adjusted on the production cost in the current period as follows to determine the production cost of the completed units as thus:

**Cost of the goods manufactured =**

**opening WIP + production cost incurred in the period - closing W.I.P.**

So we are not set to apply these explanation

Direct materials (132000+48,000-45,000) 135,000.00

Direct labour 113,000.00

Manufacturing Overhead 187,000.00

Add opening W.I.P 65,000.00

less closing W.I.P __ (63,000.00)__

Cost of goods manufactured __ __** 437,000.00**

**Cost of one hockey stick = cost of good manufactured / Hocky sticks produced**

** =$ 437,000/1900 sticks**

**Cost per hockey stick= $230**

The cost of goods manufactured for Slapshot Company in June is $429,000. The cost of one hockey stick, given that 1,900 hockey sticks were produced** in June**, is approximately $225.79.

To determine the cost of goods manufactured, we need to add purchases, direct labor costs, and manufacturing overheads then subtract the change in materials inventory. Here, the purchases are $132,000, direct labor cost of $113,000, and manufacturing overhead is $187,000. The materials inventory decreased by $3,000 ($48,000 - $45,000). So, the total cost of goods manufactured is $429,000 ($132,000+$113,000+$187,000-$3,000).

To find the **cost of one hockey stick**, we just need to divide the cost of goods manufactured by the number of items produced. Therefore, if 1,900 hockey sticks were completed during June, each hockey stick costs $225.79 ($429,000 / 1,900).

#SPJ6