Robber Corp. pays a constant $9 dividend on its stock. The company w.pdf

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Robber Corp. pays a constant $9 dividend on its stock. The company will maintain this dividend for the next 13 years and will then cease paying dividends forever. If the required return on this stock is 9.5 percent, what is the current share price? Solution 0.03734The PV factor of an ordinary annuity for 13 years with the dividend payments made at the end of the year is 0.03734 Therefore the value of this stock is: $ 9 x 0.03734 FV = 0 PMT = 14.70 N = 10 I/Y = 11 CPT PV.

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Ross and Rachel have just tied the knot. The probability that they are happy each day depends on whether they were happy or sad during the last two days, in the following fashion: Last two days Happy Sad HH [ .8 .2 ] HS | .5 .5 | SH | .7 .3 | SS [ .4 .6 ] For example, if the newlyweds were sad two days ago and yesterday they were happy, then there is a 70% chance they will be happy tomorrow and a 30% chance they will be sad tomorrow. On what fraction of days will Ross and Rachel be happy? Solution The probability of Ross and Rachel to be happy during a day is 7/10.

Ross and Rachel have just tied the knot. The probability that they.pdf

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Rory, Elyse, Jason, Jodi, and Sarah are each going to host a class party after each exam. The host for each party will be randomly selected to give a party after each one of the five exams. If Elyse and Jodi are roommates, what is the probability that parties for these two students are back to back? Solution number of ways to give parties: 5x4x3x2x1 = 5! =120 number of ways to give parties for Elyse and Jodi back to back: 2*4! = 48 probability = 48/120 = 2/5 = 0.4.

Rory, Elyse, Jason, Jodi, and Sarah are each going to host a class p.pdf

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Rose Corporation acquired 100 percent of Lilly Company’s outstanding common stock on January 1, for $880,000 in cash. Lilly reported net assets with a carrying amount of $560,000 at that time. Some of Lilly’s assets had fair values that differed from book values as follows: Book Values Fair Values Trademarks (indefinite life) $ 96,000 $ 256,000 Customer relationships (5-year life) 0 120,000 Equipment (10-year life) 547,200 499,200 Rose computed income from Lilly using the Equity Method. Following are financial statements at the end of the first year for these two companies prepared from their separately maintained accounting systems. Credit balances are indicated by parentheses. Rose Lilly Revenues $ (1,800,000) $ (832,000) Cost of goods sold 480,000 364,800 Depreciation expense 120,000 112,000 Amortization expense 40,000 0 Income from Lilly (336,000) 0 Net income $ (1,496,000) $ (355,200) Retained earnings 1/1 $ (1,120,000) $ (400,000) Net income (1,496,000) (355,200) Dividends paid 227,200 128,000 Retained earnings 12/31 $ (2,388,800) $ (627,200) Cash $ 296,000 $ 168,000 Receivables 360,000 89,600 Inventory 280,000 216,000 Investment in Lilly 1,088,000 0 Trademarks 758,400 96,000 Customer relationships 0 0 Equipment (net) 1,480,000 435,200 Goodwill 0 0 Total assets $ 4,262,400 $ 1,004,800 Liabilities $ (1,233,600) $ (217,600) Common stock (640,000) (160,000) Retained earnings 12/31 (2,388,800) (627,200) Total liabilities and equity $ (4,262,400) $ (1,004,800) Determine the amount of Amortization Expense to be reported for this business combination for the year ending December 31. Determine the amount of Depreciation Expense to be reported for this business combination for the year ending December 31. Determine the amount of Income from Lilly to be reported for this business combination for the year ending December 31. Determine the amount of Dividends Paid to be reported for this business combination for the year ending December 31. Determine the amount of Reatained Earnings to be reported for this business combination at December 31. Rose Corporation acquired 100 percent of Lilly Company’s outstanding common stock on January 1, for $880,000 in cash. Lilly reported net assets with a carrying amount of $560,000 at that time. Some of Lilly’s assets had fair values that differed from book values as follows: Solution (a) Amortization Total amortization expense for the business combination = Amortization of Rose + Amortization expense of Lilly (Book value) + Amortization expense of Lilly for Fair value adjustment. Fair value adjustments: a. Customer relationship = $120,000 / 5 = $24,000 So, Amortization Expense = $40,000 + 0 + $24,000 = $64,000 (2) Depreciation Total Depreciation expense for the business combination = Depreciation of Rose + Depreciation expense of Lilly (Book value) + Depreciation expense of Lilly for Fair value adjustment. Fair value adjustments: a. Equipment = $(499,200 - 547,200) / 10 = - $4,800 So, Depreciation Expense = $12.

Rose Corporation acquired 100 percent of Lilly Company’s outstanding.pdf

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Ronald is about to roll his two dice again. What are the odds of ha.pdf

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Romeo and Juliet plan to meet each other at the Theta Pond on the Valentine’s Day. Assume that they arrive independently at random times between 5:00 pm and 6:00 pm (uniform distribution), and due to the cold weather, they agree not to wait more than 20 minutes for the other. (a) Find the probability that they will meet. (b) If Romeo arrives first, and Juliet arrives within 20 minutes (they meet each other!), find Romeo’s expected waiting time under these conditions. (c) Forget the conditions in (b), find Romeo’s overall expected waiting time. Solution a)probality = 20/60 =1/3 b) expected waiting =20 minute c) oveall waitin = 60-20 =40.

Romeo and Juliet plan to meet each other at the Theta Pond on the Va.pdf

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Robert has eight guests, two of whom are Jim and John. If the guests.pdf

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ROA2 The net profit margin for a company is 26.2 %, the asset turnover is 0.877, the equity multiplier is 1.573, and the dividend payout rate is 19 %. What is the return on assets? Show Your Work! (Answer to the nearest tenth of a percent, i.e. 12.3 without the % sign). Solution Net profit margin = Net profit / Sales = 0.262 Asset turnover = Sales / Assets = 0.877 times Therefore Return on assets = Net profit / Assets = Net profit margin x Asset turnover = 0.262 x 0.877 = 0.2297 or 22.9% or 23% approx.

ROA2The net profit margin for a company is 26.2 , the asset turno.pdf

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Robert Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2014, the following balances related to this plan: As a result of the operation of the plan during 2014, the actuary provided the following additional data at December 31, 2014: Instructions: (a) Compute pension expense for Robert Corp. for the year 2014 by preparing a pension worksheet that shows the journal entry for pension expense. (b) Indicate the pension amounts reported in the financial statements.Plan assets (market related value$170,000Projected benefit obligation$340,000Pension asset/liability$170,000 cr.Prior service cost$100,000OCI-Loss$39,000 Solution Interest cost = Beginning PBO × Interest rate = $340,000 × 7% = $23,800 Service cost = $45,000 Expected returns on pension fund = Beginning plan assets × Expected rate = $170,000 × 8% = $13,600 Net pension expense = Interest cost + Service cost – Expected returns on pension fund = $23,800 + $45,000 - $13,600 = $55,200 a. Journal Date Account titles P.ref Debit Credit 31/12/14 Pension expense $55,200 Pension related asset/liability $55,200 To record 2014 pension expense b. Pension expense $55,200 should be reported in the income statement of 31/12/2014. Balance sheet items would as below: Projected benefit obligation (31/12/2014) = Beginning PBO + Service cost + Interest cost – Retirement benefits paid = $340,000 + $45,000 + $23,800 - $51,000 = $357,800 Fair value (31/12/2014) = Beginning fair value + Employer contribution – Retirement benefits paid + Actual returns = $170,000 + $85,000 - $51,000 + $27,000 = $231,000 Date Account titles P.ref Debit Credit 31/12/14 Pension expense $55,200 Pension related asset/liability $55,200 To record 2014 pension expense.

Robert Corp. sponsors a defined benefit pension plan for its employe.pdf

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River Forest, Inc., has 5,000 shares of 6%, $100 par value, noncumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. If the board of directors declares a $100,000 dividend, the A) preferred stockholders will receive 1/10th of what the common stockholders will receive. B) preferred stockholders will receive the entire $100,000. C) $30,000 will be held as restricted retained earnings and paid out at some future date. D) preferred stockholders will receive $30,000 and the common stockholders will receive $70,000. Solution Answer- d- Out of the $ 100000 dividend declared Preference shareholders will receive $ 30000 ( 5000*100*6/1000 first [as preference shareholders have preference over common stockholders in receipt of dividends] and the balance $ 70000 will be distributed to common stockholders..

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Risk management is made up of primary and secondary activities. Which of the following is an example of a secondary activity? a) Risk analysis data b) Risk assessment c) Risk mitigation d) Risk methodology Solution a. Risk management must often rely on speculation, best guesses, incomplete data, and many unproven assumptions. The risk-based data are another source of uncertainty and are an example of a secondary activity..

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risk in securites trading are? Solution Hi, The biggest risk in securing trade is the price and liquidity risk. The price of any company is very uncertain and it may go up or down so there is an inherent risk that losses may be incurred as a result of buying and selling securities. Another risk is the beta risk. Beta risk is the risk which affets the market as a whole. The risks cannot be diversified by investing in different securities..

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Richard has just been given a ten-question multiple choice test in his history class. Each question has five answers only one of which is correct. Since Richard has not attended class recently, he does not know any of the answers. Assume that Richard guesses randomly on all ten questions. What is the probability that he answers at least one question correctly? Solution P(he answers at least one question correctly) = 1 - P(he answers all incorrectly) = 1 - (4/5)^10 = 0.8926.

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Review the main principles of effective listening, and select two (2) listening skills that you do well and two (2) listening skills upon which you could improve. Next, create a scenario in which you could implement the improvements that you have selected. List References Solution (2).1 Listening is the ability to accurately receive and interpret messages in the communication process. Listening is key to all effective communication, without the ability to listen effectively messages are easily misunderstood.

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Review the list of Statistical Process Control (SPC) Tools below. Check Sheet Scatter Diagram Pareto Chart Histogram Process Flow Diagram. Which of them is best describes a schematic diagram that shows the flow of the product or service through the various activities? Solution PROCESS FLOW DIAGRAM: A schematic diagram that shows the flow of the product or service as it moves through the various processing stations or operations.

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Results-based training does not focus on which of the followinga..pdf

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Results from the 2000 census showed that 42 of grandparents are the.pdf

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Restrictions on retained earnings generally: Aare reported on the balance sheetBare reported on the income statementCare disclosed in the notes to the financial statementsDare ignored in the financial statementsRestrictions on retained earnings generally: Aare reported on the balance sheetBare reported on the income statementCare disclosed in the notes to the financial statementsDare ignored in the financial statements Solution Retained Earnings are past profits of the company, which they use in declaring dividend to the shareholders, setting off any extraordinary losses, to maintain the debt equity ratio / Total Asset to Equity Ratio, for expanding the business, for avoiding interest cost in case of additional capital requirement, etc. Any restriction on retained earning is surely a reportable concern and should be highlighted on the face of the balance sheet. Being such a material item for the stakeholders, this should also be disclosed separately in notes to the financial statements as well accompanying the balance sheet..

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Rodney and Alice Jones have three small children, ranging in age from 5 to 10. One child is blind and needs special care. Rodney works as an accountant for a large CPA firm and has gross income of $45,000. Alice is a lawyer with a national law firm and earns $48,000. Rodney’s parents are quite old, and he and his two brothers entirely support them according to the following percentages: Rodney 45% Steven 40% Robert 15% The brothers decide that in 2013 Rodney should be allowed to declare his parents as dependents. Rodney’s employer provides group-term life insurance at twice the employee’s annual salary. Rodney is 40 years of age. During 2013, Rodney and Alice receive the following dividends on their jointly held investments: Dividends from Mexico Inc. (Mexican Corp.) $700 Dividends from Widget Steel Corp. 150 They received interest income from the following investments: Interest on State of Ohio highway bonds $800 Interest on deposits in savings and loans 400 The Joneses have itemized deductions of $15,000. Compute their taxable income. Solution.

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Roger Bhd’s common stock is selling for $ 29.50 and recently paid dividends of $ 1.75 per share. The company has an expected growth rate of 4 percent. (a) What is the stock’s expected rate of return? (4 Marks) (b) Should you make the investment if your required rate of return is 14 percent? (6 Marks) (c) Why preferred stock is often said as a hybrid security? Explain the characteristics of preferred stock compared with common stock and bonds. (10 marks) Solution (a) What is the stock’s expected rate of return? (4 Marks) stock’s expected rate of return = D0*(1+g)/Stock Price + g stock’s expected rate of return = 1.75*(1+4%)/29.50 + 4% stock’s expected rate of return = 10.17% (b) Should you make the investment if your required rate of return is 14 percent? (6 Marks) No , You Should not make the investment if your required rate of return is 14 percent as the stock’s expected rate of return is 10.17% which is much lower than required rate, hence projects NPV would be negative the would not be Viable (c) Why preferred stock is often said as a hybrid security? Explain the characteristics of preferred stock compared with common stock and bonds. (10 marks) Preferred stock is often said as a hybrid security because it is having some feature of common stock as well as of Bond but its having a fixed income in form of Dividend. The characteristics of preferred stock compared with common stock and bonds are : Prferred Stock has a feature of Convertible i.e It might be converted from it to Common Stock Prefered Stockholder are sometime issue to participate in dividend in excess of fixed rate of Dividend Preffered Stock has a feature of Cummulative dividend, where the holder may earn their income even on los.

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