Question 5 A Mountain Bicycle that originally sold for $699.99 was reduced to sell for $599.99. i) Find the markdown. ii) Find the rate of markdown.
Q: Since 2007, a particular fund returned 13.2% compounded monthly. How much would a $6000 investment…
A: The future value of an investment is the value of an initial deposit after a certain period of time.…
Q: Principal = $2500, Interest %3D $127.00, time = 5 years, find the %3D rate. Round to the nearest…
A: Principal = $2500 Interest = $127 Period = 5 Years
Q: Your firm has taken on cost saving measures that will provide a benefit of $11,000 in the first…
A: First year benefits (C) = $11,000 Annual growth rate (g) = - 0.03 (-3%) Interest rate (r) = 0.09…
Q: Cov1,2 = 0. %3D 4. In the general case where -1 < Cov12 < +1 express the relationship between the…
A: Portfolio return and portfolio variance: 4. Portfolio returns and portfolio variance The portfolio…
Q: Garrett Boone, Flint Enterprises' vice president of operations, needs to replace an automatic lathe…
A: Here, To Find: Part a. Internal rate of return =? Part b. Purchase decision =? Part c. Net present…
Q: Assume that you buy a 1-year, 210,000-peso Philippine bond that pays 7 percent when the exchange…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: Redtail Hawk Company is evaluating two possible investments in depreciable plant assets. The company…
A: The payback period is one of the simplest methods of capital budgeting that is used in calculating…
Q: Identify the firm’s three major capital structure components and give their respective component…
A: To meet the financial requirements of the business, companies raise funds from external sources.…
Q: 13. Find the amount and present value of an annuity of P540 payable every end of the month at 7%…
A: An annuity is a payment plan where for a lump sum paid now, we get future periodic payments. It is…
Q: A loan of R30 000 is secured at an interest rate of 25% p.a. (cq) and will be paid back with monthly…
A: We need to use monthly amortisation formula to calculate monthly payment R =P*i1-1(1+i)n where…
Q: our company has been doing well, reaching $1.15 million in earnings, and is considering launching a…
A: Here, Depreciation is 7 Year MACRS Depreciation Rate of Depreciation under MACRS Depreciation for…
Q: Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It…
A: Given: Contract NPV Use of facility A 1.95 100% B 0.95 58% C 1.47 42%
Q: You may use your financial calculator or excel for calculations but be sure to show your work (i.e.…
A: Part 1: Future Value = $400,000 Rate = 2% Time period = 18 months - 12 months = 6 months Present…
Q: A stock is expected to pay a dividend of $1.00 at the end of the year (i.e., D1 = $1.00), and it…
A: Next dividend (D1) = $1 Growth rate (g) = 0.09 Required return (r) = 0.14 Stock's expected price 2…
Q: BTC has 15M shares in an all-equity firm, at a price of $13 per share. The firm announced that they…
A: The overall advantage of the borrowed amount is $25million (25% of corporate tax on $100 million…
Q: Some banks now have biweekly mortgages (that is, with payments every other week). Compare a 20-year,…
A: When payments are monthly and interest rate is compounding monthly, while calculating monthly…
Q: How does a firm's use of short-term debt as opposed to long-term debt subject the firm to a greater…
A: The given statement is that short-term debt leads to illiquidity as opposed to long-term debt. The…
Q: shares of Stock B that sell for 2. Portfolio Expected Return You own a portfolio that has $3,140…
A: Expected Return: The expected return is the minimum required rate of return which an investor…
Q: You want to buy a $168,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…
A: Cost of home = $168000 Down payment = 5% Loan period = 30 Years Interest rate = 6.95%
Q: Find the capitalized cost of a present cost of $310,000, annual costs of $50,000, and periodic costs…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: f you have an opportunity to earn a guaranteed return of 6%, what is the most you would pay for…
A: The value of the annuity is the present value of the future value of payments. This can be found…
Q: [The following information applies to the questions displayed below.] Following is information on an…
A: Net Present Value: Net present value (NPV) is the excess of present value of cash inflows over the…
Q: Q2: The initial investment in project is $ 2550 from now with interest 11.5%, it received yearly…
A: Net Present Value(NPV) is one of the modern techniques of capital budgeting which considers the time…
Q: retail coffee company is planning to open 105 new coffee outlets that are expected to generate $15.7…
A: NPV = Free Cashflow/( WACC - Growth)
Q: 2. The Jones Company has just completed the third year of a five-year MACRS recovery period for a…
A: Book value is the value of an asset after depreciation is recorded on it. When an asset is sold,…
Q: Suppose you have the opportunity to invest in a bond which matures in three years has a face value…
A: To get the present value of a bond the future cash flows need to be discounted using the discount…
Q: 1. The table below provides show the share price and dividends received: Share price ($) Dividend…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: 11.4 CAPM Suppose the risk-free rate is 8 percent. The expected return on the market is 14 percent.…
A: Capital Asset Pricing Model (CAPM): CAPM is the method of calculating the expected return on…
Q: léstions 1-24) 1. Determining Portfolio Weights What are the portfolio weights for a portfolio that…
A: Answer - Calculation of Total Value of Portfolio - Total value = (No of shares * stock A price per…
Q: Haystack, Inc. manufactures machinery used in the mining industry. On January 2, 2018, it leased…
A: Here, Cost of the equipment = £480,000 Selling price of the equipment = £702,000 Interest rate =…
Q: АСTIVITY 5 An investor requires a return of 12 percent. A stock sells for P5000, it pays a dividend…
A: First we need to calculate current stock price by using constant growth model. Stock price(P0)…
Q: Given the information below for HooYah! Corporation, compute the expected share price at the end of…
A: Given: Year 2014 2015 2016 2017 2018 2019 Price $22.00 $58.50 $130.00 $207.00 $97.00 $27.50…
Q: Five years ago, Betty saved $10,000 in an account that pays 5% compounded monthly. Now he intends to…
A: In order to calculate the amount to be added in between the investment, firstly we must find the…
Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…
A: Since you have asked a question with multiple questions, we will solve the first one for you. If you…
Q: An investment will pay $10,000 eighteen months from now. What purchase price will provide a rate of…
A: Maturity amount (MV) = $10,000 Interest rate (r) = 7% Period (m) = 18 months
Q: If you want to be paid from a 15 year ordinary annuity with a guaranteed rate of 4.277% compounded…
A: Annual payment (C) = $10,000 Period (n) = 15 Years rate (r) = 0.04277 (i.e. 4.277%) Present value or…
Q: The real risk-free rate of interest is 3 percent. Inflation is expected to be 4 percent this coming…
A: An expectation theory is defined as the theory, which used to attempt for predicting what the rate…
Q: You have received $200,000 from the PowerBall Lottery and want to have half that amount available…
A: Total lottary amount = $200,000 Amount required at retirement (FV) = $200,000/2 = $100,000 Interest…
Q: If you want to earn 15% annual simple interest on an investment, how much should you pay for a note…
A: Maturity amount = $6750 Interest rate = 15% Period = 10 months
Q: QUESTION 1 Consider the exchange rate between U.S. Dollar and New Zealand Dollar: USD/NZD. If the…
A: Nominal exchange rate is the relative price of the currencies between two countries. And real…
Q: 11. A 8% $1,000 par-value bond with quarterly coupons maturing in nine years is to be replaced by a…
A:
Q: After spending a year and $50,000, you finally have the design of your new product ready. In order…
A: Given: Raw material = $30,000 Market value of used machine = $100,000 Tax rate = 25%
Q: Accounts receivable turnover is 4. What is the average collection period assuming annual data are…
A: Accounts receivable is the amount, which the customer has paid later on. This is the money, which a…
Q: . Investment Problem Cost of bldg.. =5M Gross Revenue = 9.5 M Operating expense = 4M Nominal…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Given there are two assets making up a portfolio where each asset has the following characteristics:…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: The following financial information is available for Beasties upper and lower divisions: Upper Lower…
A: ROI is the rate of return calculated by dividing the operating income by assts invested in business…
Q: What is the present value of a perpetual stream of cash flows that pays $3,500 at the end of year…
A: Cash flow =$3500 Annual growth rate is 4% To Find:- Present value of a growing perpetuity if…
Q: 1. How is a fixed interest rate different from a variable interest rate? When can either be an…
A: Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…
Q: how did you end up with the number 11.4619, I cannot seem to figure out how or what I should type…
A:
Q: To save for graduate school, a student invests $2220 semiannually in an ordinary annuity with 7%…
A: Semi annual investment amount (P) = $2220 Interest rate = 7% Semi annual interest rate (r) = 7%/2 =…
Question 5
A Mountain Bicycle that originally sold for $699.99 was reduced to sell for $599.99.
i) Find the markdown.
ii) Find the rate of markdown.
Step by step
Solved in 3 steps
- QUESTION 1 An oven was sold for RM425 after a 35% markdown. No use excel. Calculate the original selling price of the oven.Hh2. Account Kamp, Inc., sells specialized bicycle shoes. At year-end, due to a sudden increase in manufacturing costs, the replacement cost per pair of shoes is $55. The original cost is $43, and the current selling price is $50. The normal profit margin is 10% of the selling price, and the selling costs are $3 per pair. Using the lower of cost or market method under U.S. GAAP, which of the following amounts should each pair of shoes be reported on Kamp's year-end balance sheet?QUESTION 1 Daffodils Florist bought 50 tulips at RM8 each and 20 lilies at RM12 each. The owner wanted a net profit of 18% based on cost and operating expenses of 10% based on the cost. a) Find the selling price for each tulip and lily. b) Find the gross profit for all flowers. c) Find the breakeven price for a tulip. d) Find the maximum percentage of markdown that can be offered without incurring any loss for tulips.
- Question A4 Freda is looking to sell her Bike that has been sitting in the garage unused for some time. The bike cost Freda £650 when she purchased it from a local bike shop. She is keen to recover as much as possible for the bike and is disappointed to see similar used bikes are currently selling on eBay for around £250. If Freda considered relevant costing in arriving at a selling price for her bike, what would the £650 be described as? A A past cost B A relevant cost C An incremental cost D A sunk costWhen discount should be recognized and recorded. Company sold machinery for $100,000 with terms 2/10, n/30. No discount was taken within the 10 days. 1. is this a successful way to market and sell machinery. 2. how is it recorded. Is it a reduction in revenue or a cost of sale?Crazy Cliff’s Computers (CCC) purchases computer parts from its suppliers 2/5, net 30. What is the effective annual cost of not taking the trade discount? Select one: a. 2.00% b. 2.04% c. 27.43% d. 34.31% e. None of the above.
- Hh1. Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $121,930. The seller agreed to allow a 5.25 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,320. Southwest Milling had to hire a specialist to calibrate the loader. The specialist’s fee was $1,220. The loader operator is paid an annual salary of $32,000. The cost of the company’s theft insurance policy increased1.A jet ski that previously sold for $5,399.99 has been reduced to $3,401.99. What is the markdown percent? (Round your answer to one decimal place.) % 2.At a red-tag sale, all items with red tags have been marked down by 49%. What should be the sale price of a DVD player having a red tag, if the presale price was $232.95? $114.15 $118.80 $183.95 $208.45 3.A dress is currently on sale for $52.49. If the markdown percent is 22%, what was the original price to the nearest cent? $64.04 $67.29 $68.38 $75.59EB12. 2.3 Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October, Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?
- E18.17 (LO 3) (Sales with Returns) Refer to the revenue arrangement in E18.16. Assume that instead of selling the tool sets on credit, Steele sold them for cash. Below is the E18.16 On March 10, 2022, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Steele allows Barr to return any unused tool sets within 60 days of purchase. Steele estimates that: (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2022, Barr returned six tool sets and received a credit to its account. Instructions 1. Prepare journal entries for Steele to record (1) the sale on March 10, 2022, (2) the return on March 25, 2022, and (3) any adjusting entries required on March 31, 2022 (when Steele prepares financial statements). Steele believes the original estimate of returns is correct.2. Indicate the income statement and…question 1 JamCore Investments has completed their 2021 financial year which ran from the 1 May 2020. The company sells masks and sold 1 000 000 masks (2020:20 000) at a price of N$10 (2020:5). The company also manufactures the masks, the cost of sales in 2021 is N$ 1, 200% less than the prior. They managed to decrease the cost of sales by using cheaper and thinner fabric. a. Compare the gross profit margin for 2020 and 2021?b. Comment on any ethical considerations you may have? c.Can ethical qualities be attributed to corporations?(3 reasons to support claim)D. Markup and Markdown1. A car accessory is sold for Php 420 .90. The store’s marked-up based oncost is 43.28%. What is the cost of the accessory? What is the rate ofmarkup?2. A strawberry juice was offered for sale at Php 25.50 at E-mart. At Lottemart, the selling price of a similar juice drink was Php 30.50. What rate ofmarkdown would Lotte mart offer to sell the drink at the same price asE-mart?E. Profit From Loss1. Ryeowook buys an old scooter for Php 14 700 and spends Php 1 800 onits repairs. If he sells the scooter for Php 15 800, what is his gain or loss?2. A dealer losses Php 5 000 when he sells meat at a loss of 10%. Howmuch is the selling price of the meat?F. Breakeven1.A barbecue stall sells barbecue at Php 10 per piece. The fixed cost is Php5 000 and the variable cost is Php 5 per piece. At what level of productionwill it generate a profit of Php 1 000?2. An electric company that produces calculators has an annual fixed costof Php 450 000. The variable cost of producing a…