Universal Export's Preferred shares will pay their first dividend in five years. The dividend will be 6.5% on a $50-par value. Assume that the dividends will continue annually in perpetuity at that level. The required return of preferred shareholders is 9%. What is the fair price for the preferred shares?
In: Finance
Using Calculus, calculate the elasticity of the following demand functions. After that, calculate the elasticity for the points (1, 3) and (2, 2).
The first coordinate of the points above is Q, the second is Price.
(1) Q = 10P ^ (-4)
(2) Q = 10 - P
In: Economics
Record journal entries for the following events for Mind the GAAP, Inc.1. On December 1, 2019, Mind the GAAP repurchased 5,000 shares of its $2 par common stock at a price of $30 per share. This was the company’s first share repurchase.
In: Accounting
In: Finance
In: Accounting
1) How does the Bordeaux wine distribution system work? Who benefits and how?
2) How is price set? Trace the process from the sale of the first tranche to the sale of a bottle in a wine store for $1,200. Why is the process so complicated?
In: Operations Management
1. How does the Bordeaux wine distribution system work? Who benefits and how?
2. How is price set? Trace the process from the sale of the first tranche to the sale of a bottle in a wine store for $1,200. Why is the process so complicated?
In: Operations Management
Better Footprint Shop, a fair-trade environmentally friendly gift shop, purchases goods from developing countries. The owner of the shop, Paula Miranda, is thinking of adding a fundraising program which would encourage nonprofit organizations such as schools, churches and community groups to sell fair trade chocolates. The nonprofit organization would sell the candy bars for $3/candy bar and Better Footprint would give them a $1.25/candy bar sales discount. In other words, Better Footprint would collect $1.75/candy bar from the nonprofits. Better Footprint would not require a minimum sales quantity from the organizations. Better Footprint however must order the chocolates from the national organization at least one month in advance and they cannot be returned. The chocolates cost $.75/candy bar with a minimum order of 500 candy bars. Any additional candy bars would have to be ordered in increments of 100. The national organization charges a flat $25 shipping fee per order. Better Footprint would order once per month. Since the fundraising plan would not require any additional facilities and negligible processing costs, the only costs associated with the project for Better Footprint would be the $.75 cost of the candy bars and the shipping cost. REQUIRED a.What term best describes the cost behavior for the candy bars? The shipping cost? Use candy bars sold as the activity base. b. To make the project worthwhile, Paula would like to earn a before tax profit of $1,275 for the first month of the venture. What level of sales in units and dollars for the month would be required to meet this target net income amount? SHOW AND LABEL ALL COMPUTATIONS. c.Assume that the venture is undertaken and an order is placed for 1,000 candy bars in the first month. How many candy bars would Paula have to sell to break even for the month? SHOW AND LABEL COMPUTATIONS. d.If Paula would like to earn a pretax profit of $2,000 in the first month how many candy bars would she have to sell in the month to meet this target net income amount? SHOW, LABEL AND EXPLAIN COMPUTATIONS. (Remember Better Footprints must order candy bars in increments of 100). e.After running the program for the past year, Paula has determined that the fundraising program has not met her expectations and she will discontinue it. She has 150 candy bars remaining and is considering selling them at a discounted price to Better Footprint’s largest fundraising partner. One of the volunteers at the shop told Paula that she would be increasing her profits if she sold the remaining candy bars at any amount since there are no incremental costs. Paula is confused because she believes that she can’t increase profits if she doesn’t charge at least $1.75 - enough to cover her costs. Who is right? Justify your answer. What other factors should Paula consider before selling the remaining candy bars at a discounted price? (You should have a minimum of 3-4 factors to consider.)
In: Accounting
| 1. |
On October 1, BSS placed an order for 100 golf shirts at a unit cost of $21, under terms 2/10, n/30. Record the place of the order for golf shirts. |
| 2. |
The order placed on October 1 was received by BSS on October 10, but 10 golf shirts had been damaged in shipment. Record the inventory purchased on account. |
| 3. |
On October 11, the 10 damaged golf shirts were returned. Record the return of the damaged inventory. |
| 4. |
On October 12, BSS complained that the remaining golf shirts were slightly defective so the supplier grated a $290 allowance. Record the allowance received for the defective inventory purchased. |
| 5. |
On October 13, BSS paid for the golf shirts. Record the payment in full. |
| 6. |
During the first week of October BSS received student and faculty orders for 90 golf shirts, at a unit price of $39.00, on terms 2/10, n/30. The golf shirts were delivered to the customers on October 18. Record the sales revenue on account for the order. |
| 7. |
During the first week of October BSS received student and faculty orders for 90 golf shirts, at a unit price of $39.00, on terms 2/10, n/30. The golf shirts were delivered to the customers on October 18. Record the cost of goods sold for the order. |
| 8. |
Customers were unhappy with the golf shirts, so BSS permitted them to be returned or gave an allowance of $9.00 per shirt. On October 21, one-half of the golf shirts were returned by customers. Record the return of the unsatisfactory merchandise sold on account. |
| 9. |
Customers were unhappy with the golf shirts, so BSS permitted them to be returned or gave an allowance of $9.00 per shirt. On October 21, one-half of the golf shirts were returned by customers. Record the cost of goods returned. |
| 10. |
Customers were unhappy with the golf shirts, so BSS permitted them to be returned or gave an allowance of $9.00 per shirt. On October 22, the remaining 45 customers were granted the allowance. Record the allowance granted for the defective inventory sold on account. |
| 11. |
On October 25, the customers paid their remaining balances due on account. Record the customers' payments in full. |
| 12. |
As of October 31, the payment of inventory ordered in full dated October 13 had not yet cleared the bank. Record the Otober 13 check that had not yet cleared the bank. |
value:
1.33 points
Required information
C6-1 Part 1
| Required: | |
| 1b. |
Prepare journal entries for the transactions described above, using the date of each transaction as its reference. Assume BSS uses perpetual inventory accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1a. |
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Report the financial effects of the above transactions in a multistep income statement for the month ended October 31 prepared for internal use. Assume operating expenses, other than cost of goods sold, are $100 and income tax expense is $135. |
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In: Accounting
Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $6,000 per month beginning with the first month after your 70th birthday until you reach your birthday at age 100. If the account which contains your savings earns 7% APR compounded monthly, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to the nearest dollar.)
In: Finance