ICE 3-3

1. Identify 7 sources of vehicle purchasing information and the type of information available in each source. 2. For all the information available, what specific information about the different makes and models is the most relevant to Samuel and Grace in making their purchasing decision. 3. What is the highest price they can pay on the new vehicle if they can afford a down payment of $4,000?Assume they finance their purchase for 48 months at 7.5%? 4. If they were to lease, what key factors are important in a good lease?

A used car salesman has the following typical strategy for selling cars.His car is really worth £5000. But he starts his negotiations with a buyer byasking for a starting price of £6000. He then negotiates the price down to £5750at which point the buyer is happy to buy the car. What heuristic is the salesmanexploiting?

Pls help ASAP on both

company wants to issue a 15-year Bond with $1,000 face value and an 8% Annual coupon. the bond can be sold to investors for $1,010 per Bond but will incur transaction cost of $15 per Bond if the company tax rate is 21%. what is the after-tax cost of debt financing to the firm?

Which of the following are important to investors evaluating direct participation programs? I. The economic soundness of the program II. The expertise of the general partner III. The basic objectives of the program IV. The start-up costs A I, II, and IV B I, II, and III C I, II, III, and IV D II, III, and IV

Hh1. Account

Which of the following losses or outgoings incurred cannot be deducted as a general deduction by a share investor: Group of answer choices Interest on money borrowed to buy shares expected to produce dividends, Investment journals and publications. Investment journals and publications. Subscriptions to share market information services. Management fees or retainers to investment advisers for an initial investment plan. Management fees or retainers to investment advisers for ongoing investment advice.

I draw 5 cards from a deck (replacing each cardimmediately after it is drawn). I receive $4 for each heartthat is drawn. Find the mean and variance of my total payoff.

Asymmetric information and imperfect information tend to distort market price and quantity.  The use of a money-back guarantee might work to Group of answer choices Enhance the promise of quality and reduce distortion of the market price and quantity. Motivate buyers to intentionally abuse products so that they can get their money back, reducing the impact of distorted market price and quantity. Encourage buyers to worry about why such a guarantee was necessary, increasing the distortion of market price and quantity. Stabilize the price and quantity of the product.

Estimating Costs in an Uncertain Environment Many companies face increasingly unpredictable costs and revenues as the recession affects demand for products and the costs of materials and labor for these products. Revenues and costs have fluctuated significantly in recent years for such cost elements as fuel, labor, commodities (agricultural commodities, metals, etc.), interest, and rent expense, among others. Dealing with the increased fluctuations requires cost estimation methods that are more sophisticated and more frequently updated. The result is that companies are including in their cost estimation additional independent variables. Moreover, these companies are updating their estimation models more frequently. For example, Southwest Airlines updates its revenue prediction model on a daily basis. Required Consider Southwest Airlines and the following six key areas of cost for the company. Which of these costs do you think the airline must update most frequently? Flight crew. Fuel…

XYZ Insurance Company, a relatively small general insurer, has outsourced its claims adjusting function. Now, when a claim is reported, the insurer notifies the outsource adjusting company, which then causes one of its adjusting personnel to visit the site of the loss and prepare an estimate as to the amount that will have to be paid to settle the claim. The outsource company then notifies the insurer of the amount and this is set up as a case provision in the insurer’s claim files. XYZ has indicated that the adjusting company is more specialized and has greater expertise in this area than the insurer can support in house For claims that can be settled in a straight-forward manner, the adjusting company will pay the claim and then invoice XYZ for the amount. i. Discuss the 3 potential pitfalls in the use of an adjusting company. ii. Discuss 3 advantages on the usage of an adjusting company. iii. Are these sufficient to offset any advantages disadvantages. Explain your answer. iv. You…

Estimating Costs in an Uncertain Environment Many companies face increasingly unpredictable costs and revenues as the recession affects demand for products and the costs of materials andlabor for these products. Revenues and costs have fluctuated significantly in recent years for suchcost elements as fuel, labor, commodities (agricultural commodities, metals, etc.), interest, and rentexpense, among others. Dealing with the increased fluctuations requires cost estimation methods thatare more sophisticated and more frequently updated. The result is that companies are including intheir cost estimation additional independent variables. Moreover, these companies are updating theirestimation models more frequently. For example, Southwest Airlines updates its revenue predictionmodel on a daily basis.Required Consider Southwest Airlines and the following six key areas of cost for the company. Which ofthese costs do you think the airline must update most frequently?1. Flight crew.2. Fuel…

1. Let’s say that last November you have sold 10,000 pieces of chrysanthemum at 25 pesos each. For every piece sold, you will be given a commission of 10%. How much was your total commission? *   a. 2.50 b. 225,000 c. 10,000 d. 250,000 e. 25,000   2. Camille forecasts to sell 575 units of the perfume she is selling by the first week of December. At the end of the 1st week of December, she was able to disposed 500 perfumes at Php150 each. Of these 500 units, she gave a total of 20 giveaways. The total cost for each perfume is Php120. Determine Camille’s sale volume variance to assess how the variance affect the total profit. *   a. 11,250 b. 1,500 c. 9,000 d. 2,250

Cost Estimation; High-Low and Regression Methods The Mac Davis Company specializesin the purchase, renovation, and resale of older homes. Mac employs several carpenters and paintersto do the work for him. It is essential for him to have accurate cost estimates so he can determinetotal renovation costs before he purchases a piece of property. If estimated renovation costs plus thepurchase price of a house are higher than the house’s estimated resale value, it is not a worthwhileinvestment.Mac has been using the home’s interior square feet for his exterior paint cost estimations. Recentlyhe decided to include the number of external openings—the total number of doors and windows ina house—as a cost driver. Their cost is significant because they require time-consuming preparatorywork and careful brushwork. The rest of the house usually is painted either by rollers or spray guns,which are relatively efficient ways to apply paint to a large area. Mac has kept careful records of theseexterior…

Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the current year, Banek Inc. issued $700,000 of 8%, nine-year bonds for $618,173, which implies a market (yield) rate of 10%. Semiannual interest is payable on June 30 and December 31 of each year. a. Show Excel inputs to confirm the bond issue price. Note: Round your answer to two decimal places. rate= nper= pmt= FV= 0.05 18 (28,000) (700,000) ▼ Answer = $ 125,901.16 * b. Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payment and discount amortization on June 30 of the current year, and (3) semiannual interest payment and discount amortization on December 31 of the current year. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Note: Round your…

48- The maximum number of sales that can occur in a given period to an individual or businesses that are willing to sell in a given market is known as: a. Product demand b. Market potential c. Market demand d. All the options are correct

Stocks with high market betas have higher expected returns than stocks with low market betas. This evidence is inconsistent withI.    The weak form efficient market hypothesisII.    The semi-strong form efficient market hypothesisIII.    The strong form efficient market hypothesis a) I, II, and III b) I and II c) I d) None of I, II, and III

On October 1, 2023, Ross Wind Energy Inc. issued a $1,570,000, 10.5%, seven-year bond. Interest is to be paid annually each October 1. Assume a November 30 year-end. (Use appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 8% on the date of the bond issue. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Issue price of the bond $ 17,755,252 b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Period Ending Cash Interest Paid Period Interest Expense Premium Unamortized Carrying Amort. Premium Value Oct. 1/23 $ Ο

Weismann Company issued 18-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 10 percent, what is the current bond price?

After a cursory examination of the put option prices, Torelli suspects that a good strategy is to buy one put option A for each share of GMS stock purchased. What are the mean and standard deviation of return for this strategy?

Current Asset Usage Policy Payne Products had $2.4 million in sales revenues in the most recent year and expects sales growth to be 25% this year. Payne would like to determine the effect of various current assets policies on its financial performance. Payne has $3 million of fixed assets and intends to keep its debt ratio at its historical level of 50%. Payne's debt interest rate is currently 9%. You are to evaluate three different current asset policies: (1) a restricted policy in which current assets are 45% of projected sales, (2) a moderate policy with 50% of sales tied up in current assets, and (3) a relaxed policy requiring current assets of 60% of sales. Earnings before interest and taxes are expected to be 11% of sales. Payne's tax rate is 35%. What is the expected return on equity under each current asset level? Round your answers to two decimal places. Tight policy % Moderate policy % Relaxed policy %

Ken is an appraiser who was hired to appraise a single-family home. Ken's subject property is similar to many of the houses in the neighborhood since much of the neighborhood was built around the same time. Why would the sales comparison approach be the most effective valuation method for Ken? ○ Since the cost to rebuild the property can easily be determined, the sales comparison approach should be used, Since the property has the potential to be rented out, the sales comparison approach should be used. Residential properties are typically valued using the sales comparison approach, and Ken will most likely have several comparable properties to use to value the subject property. The cost approach should be used by Ken rather than the sales comparison approach.

Assume a company's Income Statement for Year 12 is as follows: Year 12 (in 000s) Income Statement Data Net Revenues from Footwear Sales $ 580,000 370,000 40,000 75,000 15,000 90,000 Cost of Pairs Sold Warehouse Expenses Marketing Expenses Administrative Expenses Operating Profit (Loss) Interest Income (Expense) Pre-tax Profit (Loss) Income Taxes Net Profit (Loss) (15,000) 75,000 22,500 $ 52,500 Based on the above income statement data and assuming the company has 20 million shares of common stock outstanding , the company's operating profit margin and EPS were Copyright O by Glo-Bus Software, Inc. Capying, distributing, ar 3rd party website posting isexpressly prohibited and constitutes copyright vialation. 15.52% and $4.50. O 9.05% and $3.75. 13.79% and $1.75. O 12.93% and $3.75. O 15.52% and $2.63.

The owner of a copper mine gets together with all the other copper mine owners and agrees to enter a trust with them. The board of “trustees” for this copper trust then sets the price of copper much higher than they were selling it for before. Is this a vertical integration or a horizontal integration?