The price of the bond today is $804.91. To compute the price of the bond, we need to discount each of the bond's future cash flows to its present value and sum those present values.
The future cash flows for this bond consist of a series of semiannual coupon payments of $26 (=$1,000 × 5.2% ÷ 2) and a final principal payment of $1,000 at maturity.
The number of semiannual periods until maturity is 30 years × 2 = 60 semiannual periods.
The discount rate we will use to calculate the present value of these cash flows is the bond's YTM, which is 7.0% / 2 = 3.5% per semiannual period.
Using the present value formula for a bond's cash flows, we can calculate the present value of the semiannual coupon payments and the final principal payment as follows:
Present value of semiannual coupon payments = $26 × [1 – 1 / (1 + 0.035)^60] / 0.035 = $728.95
Present value of final principal payment = $1,000 / (1 + 0.035)^60 = $75.96
Therefore, the price of the bond is:
Price = Present value of semiannual coupon payments + Present value of final principal payment
= $728.95 + $75.96
= $804.91
So, the price of the bond today is $804.91.
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Is the process of human resource manganment much wider than simply the design of personnel programme
Yes, it can be argued that the Human resources management process is much broader than just designing a personnel system.
Human resources management focuses on maintaining all executive and mortal coffers systems, while mortal coffers operation takes a more strategic approach, anticipating the requirements of the association and constantly covering and conforming all systems.
Human resource management ( HRM), also known as labor force operation, includes all conditioning of the company aimed at icing the effective use of workers to achieve individual, collaborative, and organizational pretensions. The association's HRM function focuses on the mortal side of the operation.
One of the main parallels between human resource operation is that both consider placing the right people in the right jobs as one of the overall pretensions of people operating in the plant.
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Three characteristics of a formal business
?
Answer:
Here's some you can choose from!
Explanation:
(1) It has Defined Interrelationship
(2) It is based on Rules and Procedures
(3) It is based on Division of Work
(4) It is deliberately created
(5) It is Impersonal
(6) It is more stable
Identify and briefly explain any four incentives by companies to
produce information for stakeholders. (4Marks)
Companies may produce information for stakeholders for a number of reasons, such as to meet legal requirements, uphold moral standards, and foster a favourable perception of the business.
Identify and briefly explain any four incentives by companies to produce information for stakeholders.
Four possible incentives for businesses to generate information for stakeholders are listed below: Legal requirements: Businesses might be forced by the law to provide certain information to interested parties. For instance, businesses must disclose financial data to the public and the government. Fines, penalties, and legal action may be incurred for breaking these legal requirements. Ethics: As part of their ethical obligations, businesses may produce information for stakeholders. Transparency, responsibility, and fairness are some ethical factors. Competitive advantage is possible for businesses that provide stakeholders with high-quality information. Information production for stakeholders can be used by businesses to manage their reputation.
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Assuming that 1990 is the base year, Real GDP in 2012 is:
a. $51
b. $86
c. $92
d. $49
Goods 1990 Quantities 1990 Prices 2012 Quantities 2012 Prices
Papayas 10 $1. 00 20 $0. 50
Fish 15 $0. 60 20 $0. 80
Skirts 8 $4. 00 15 $4. 00
The correct answer is $92. By assessing the changes in the real GDP, economists may determine a country's economic growth. The effects of price changes like inflation are taken into account while calculating the real GDP.
The real GDP will be determined using the formula below:
Real GDP=QXyear∗PBase year
Where,
QXyear = Amount produced in a given year.
PBase year = Cost from the base year
Real GDP in 2012=(20∗$1)+(20∗$0.60)+(15∗$4)
Real GDP in 2012=$20+$12+$60
Real GDP in 2012=$92
Keep in mind that we must consider the output of every good generated within the economy in 2012 using the pricing of the base year (1990). As a result, we need to consider skirts, fish, and papayas. You may see the calculations below.
Thus, $92 is the right response.
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As their proportions in the workforce increase, the lower educational levels among latinos, black and native Americans compared to those of non hispanic. Whites are an important diversity concern. The PhD project is an organization designed ti improve workforce diversity by improving the diversity of faculty at business schools by attracting underrepresented minorities to doctoral programs. The rationale for this approach was that having more diversity at the front of the classroom would increase the amount of diversity among students in the classroom. In 1994, the PhD Project estimated that fewer than 300 of the 22,000 business school faculty in the united states were from underrepresented minority groups. With the help of the PhD project, the number of latinos, blacks, and native Americans on certain business school faculties increased from 294 to 686 between 1994 and 2004. The PhD project believes that increasing the diversity of business school faculty will ; Encourage more underrepresented minorities to pursue business degrees. Improve the performance and completion rate of underrepresented minorities by providing role models and more natural mentors. Better prepare all business students for todays multicultural society and work environment. Recognizing the importance of diversity to organizational success, many universities and well know corporations have joined in supporting the PhD project. Sponsors include PhD project founder KPMG foundation, the Graduate management admission council, citigroup foudation, Ford motor company, Daimler chrysler corportation fund, GE foundation, Abbott Labs, JP Morgan Chase, Hewlett Packard, and numerous other companies. These sponsors believe in participating in the PhD project signals to its employees and to universities commitment to diversity in the workforce. The PhD project provides peer support and assists selected student in obtaining scholarship and funding to obtain a PhD. Doctoral student involved in the PhD project have higher rates of completion of their degrees and are more likely to work in academic positions than other students. These are currently more than 400 PhD project student in doctoral programs around the nation.
1.What are the benefits of white students and students of color of having minority faculty members?
2.The PhD project assumes that having more faculty of color will increase the probability that student of color will tend and complete college, reducing the education gap between whites and blacks, latinos, and native Americans. Investigate the changes in college completion rates for these groups between 1995 and the present.
1. It includes role models and more natural mentors etc.
2. The PhD project has been successful in improving the diversity of faculty at business schools.
The benefits of white students and students of color of having minority faculty members include having role models and more natural mentors, being better prepared for today's multicultural society and work environment, and being encouraged to pursue business degrees.
The PhD project has been successful in improving the diversity of faculty at business schools. From 1994 to 2004, the number of Latinos, Blacks, and Native Americans on certain business school faculties increased from 294 to 686. College completion rates for these groups have also seen an improvement over time. Between 1995 and the present, completion rates for Blacks, Latinos, and Native Americans have all seen an increase.
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Suppose for $1,00 you could buy a 10%, 10-year, annual payment bond or a 10%, 10-year, semi annual payment bond. They are equally risky. which would you prefer? if $1,000 is the proper price for the semi-annual bond, what is the equilibrium price for the annual payment bond?
The equilibrium price for the annual payment bond is $607.9, assuming both bonds are equally risky and the semi-annual bond is priced at $1,000.
What is the equilibrium price for the annual payment?The semi-annual bond pays 10%/2 = 5% every six months for 10 years, which is a total of 20 payments. The annual bond pays 10% once a year for 10 years, which is a total of 10 payments.
To compare the two bonds, we need to convert the semi-annual bond payments to an annual equivalent yield, which is done using the following formula:
Annual Equivalent Yield = (1 + Semi-Annual Yield)^2 - 1
For the semi-annual bond, the annual equivalent yield is:
Annual Equivalent Yield = (1 + 0.05)^2 - 1 = 0.1025 or 10.25%
Therefore, if both bonds are equally risky, an investor should prefer the annual payment bond since it has a higher yield.
To calculate the equilibrium price for the annual payment bond, we need to use the same yield as the semi-annual bond, which is 10.25%. The present value of the bond's cash flows can be calculated using the following formula:
Bond Price = (Annual Coupon Payment / Annual Yield) * (1 - 1 / (1 + Annual Yield)^n)
where n is the number of years until maturity. In this case, n is 10.
Using the above formula, the price of the annual payment bond is:
Bond Price = (0.1 * $1,000 / 0.1025) * (1 - 1 / (1 + 0.1025)^10) = $607.9
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Valuation of Bonds
Scenario: Suppose Greenback Corporation, an Australian company, issued 10-year bonds with a maturity value of AUD 100 and a coupon rate of 6%.
a) What is the estimated bond price if the required rate of return is 4%?
b) What is the estimated bond price if the required rate of return is 6%?
c) What is the estimated bond price if the required rate of return is 8%?
d) What is the estimated bond price if the required rate of return is 10%?
e) With regards to the above calculations, describe how the required rate of return affect bond prices.
The estimated bond prices are a) $79.30 if the required rate of return is 4%, b) $83.70 if the required rate of return is 6%, c) $88.70 if the required rate of return is 8%, d) $93.10 if the required rate of return is 10%. e) If rate of return increases, the bond price decreases and vice versa.
It is proved that Face value of bond, M = $100, Coupon rate, C = 6% = $6, Maturity period, n = 10, Required rate of return or yield, k = 4% = 0.04, 6% = 0.06, 8% = 0.08, 10% = 0.10.
Using the formula for the bond price calculation:
P = (C * Present Value Interest Factor,n) + (M * Present Value Interest Factor,n)
The PVIF (Present Value Interest Factor) can be calculated using the formula:
PVIF = 1/(1+k)Power (n)
Now, we can calculate the estimated bond price as follows:
a) k = 4% = 0.04PVIF (4%, 10 years) = 1 / (1 + 0.04)10 = 0.67556P = (6 * 0.67556) + (100 * 0.67556) = $79.30
b) k = 6% = 0.06PVIF (6%, 10 years) = 1 / (1 + 0.06)10 = 0.55839P = (6 * 0.55839) + (100 * 0.55839) = $83.70
c) k = 8% = 0.08PVIF (8%, 10 years) = 1 / (1 + 0.08)10 = 0.46319P = (6 * 0.46319) + (100 * 0.46319) = $88.70
d) k = 10% = 0.1PVIF (10%, 10 years) = 1 / (1 + 0.1)10 = 0.38554P = (6 * 0.38554) + (100 * 0.38554) = $93.10
e) As the required rate of return increases, the bond price decreases. Similarly, as the required rate of return decreases, the bond price increases. This relationship between required rate of return and bond price is known as the bond price-yield relationship or the yield curve.
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which of the following would be classified as an autonomous change to planned aggregate expenditure? instructions: in order to receive full credit, you must make a selection for each option. for correct answer(s), click the option once to place a check mark. for incorrect answer(s), click the option twice to empty the box. check all that apply interest rates in an economy decrease.unanswered congress decides to undertake an infrastructure repair project.unanswered current income in an economy increases.unanswered domestic goods become more expensive relative to foreign goods.unanswered
The following choice would be considered an autonomous modification to the total anticipated expenditure: In a growing economy, interest rates fall.
An autonomous modification to the total anticipated spending is what?The parts of an economy's total spending that are unaffected by that economy's real level of revenue are referred to as autonomous expenditures. Both at the governmental and private levels, this kind of expenditure is regarded as automatic and necessary.
What are some instances of autonomous spending?Autonomous expenditures include things like taxes, exports, and necessities like food and shelter. They are primarily driven by outside variables like trade agreements, political unpredictability, interest rates, etc.
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which of the following statement is correct? question 17 options: accrual accounting provides a better picture of the economic status cash accounting is complicated but efficient accrual accounting can mimic tax statement cash accounting is required by gaap g
The correct statement is -: Accrual accounting provides a better picture of the economic status.
What is Accrual accounting?Accrual accounting is an accounting method in which revenue and expenses are recorded when they are incurred, regardless of whether the money has been received or paid out yet. Accrual accounting is the standard accounting method for most businesses, especially those with more complex financial structures.
Accrual accounting provides a better picture of the economic status because it reflects the current state of a company's financial position. Even if a company has not received or paid money for goods and services, it records these transactions in its accounting records when they occur.
Accrual accounting provides a more accurate picture of the company's financial status because it reflects the economic impact of transactions when they occur. This method is considered more informative and reliable than the cash method of accounting, which only records transactions when money is exchanged.
In summary, the correct statement among the given options is: Accrual accounting provides a better picture of the economic status.
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How do firms maximize profits? A manufacturer of consumer electronics anticipates that due to a temporary spike in production cost, it will operate at a slight loss for three quarters (nine months) before returning to profitability. Nonetheless, the firm plans to keep production levels at the point where MR MC. Why? Click or tap a choice to answer the question Shifts in policy are possible only during periods of profitability. The same policy that maximizes profits will minimize losses. Decisions are based on profit or loss in the long run, not the short run. A different production level would involve the same variable costs
The correct answer is "The same policy that maximizes profits will minimize losses."
The firm plans to keep production levels at the point where MR=MC because maximizing profits is the goal of any business. Despite the expected losses in the short-term, they are willing to accept it because they know that the same policy that maximizes profits will minimize losses in the long run.
Therefore, decisions are based on the potential profit or loss in the long run, not just in the short run. Shifts in policy are possible only during periods of profitability. The firm plans to keep production levels at the point where MR=MC, due to the fact that the same policy that maximizes profits will minimize losses.
It is the best choice that they can make to minimize the loss that they are expected to incur in the next 3 quarters. Therefore, a firm maximizes profits by keeping production levels where MR (Marginal Revenue) = MC (Marginal Cost). When MR is equal to MC, it means that the firm is producing the optimal quantity of goods that will maximize profits.
They should produce more goods when MR is greater than MC, and they should produce fewer goods when MC is greater than MR.
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Euthanasia, or "aid in dying" statutes exist in several states. Conduct an internet search, choose one such state, and provide a brief summary of the law. The laws vary, so it will be educational to see posts on various state statues on this topic. Also, offer your views on the ethical implications of euthanasia. Provide a reputable link to support your initial post. Post initially and then reply to at least two of your peers. All posts due Saturday by 7 pm CT.
In the state of Oregon, the "Death with Dignity Act" allows terminally ill patients to request a prescription for medication that will end their lives in a peaceful and humane manner.
To qualify, patients must be at least 18 years old, mentally capable of making the decision, and have a terminal illness that will lead to death within six months. Additionally, the patient must make two oral requests and one written request, and the prescribing physician must confirm the diagnosis and ensure that the patient is making an informed decision.
The ethical implications of euthanasia are complex and controversial. Supporters argue that it allows individuals to die with dignity and avoid unnecessary suffering, while opponents argue that it violates the sanctity of life and could lead to abuse or coercion.
Ultimately, the decision to pursue euthanasia should be a personal one, made in consultation with medical professionals, family members, and loved ones. It is important to ensure that individuals have access to high-quality end-of-life care and support, regardless of their decision on euthanasia.
Source: https://www.oregon.gov/oha/PH/PROVIDERPARTNERRESOURCES/EVALUATIONRESEARCH/DEATHWITHDIGNITYACT/Pages/faqs.aspx
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Financial Statements of a Manufacturing Firm The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes:
Purchased $213,800 of materials.
Used $183,900 of direct materials in production
Incurred $160,000 of direct labor wages
Applied factory overhead at a rate of 80% of direct labor cost
Transferred $453,000 of work in process to finished goods
Sold goods with a cost of $421,200
Sold goods for $753,900 Incurred $181,100 of selling expenses
Incurred $67,400 of administrative expenses
Question Content Area
a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method.
Migliozzi Inc.
Income Statement
For the Month Ended July 31
Administrative expensesFactory overheadGross profitIncome from operationsRevenues
Administrative expensesCost of goods soldFactory overheadMaterialsSelling expenses
Administrative expensesGross profitFactory overheadRevenuesWork in process
Selling and administrative expenses:
Cost of goods soldFactory OverheadFinished goodsRevenueSelling expenses
Administrative expensesDirect laborMaterialsRevenuesWork in process
Total selling and administrative expenses
Cost of Goods ManufacturedFinished good income from operationsMaterialsWork in process
Migliozzi Inc. Income Statement for the Month Ended July 31 can be recorded using the perpetual inventory method.
Migliozzi Inc.
Income Statement
For the Month Ended July 31
Revenues: $753,900
Cost of goods sold:
Direct materials used: $183,900
Direct labor: $160,000
Factory overhead (80% of direct labor cost): $128,000
Total manufacturing cost: $471,900
Add: Beginning finished goods inventory: $0
Total cost of goods available for sale: $471,900
Less: Ending finished goods inventory: $421,200
Cost of goods sold: $50,700
Gross profit: $703,200
Selling and administrative expenses:
Selling expenses: $181,100
Administrative expenses: $67,400
Total selling and administrative expenses: $248,500
Income from operations: $454,700
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The Sanding Department of Jo Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation.
Production: 11,000 units finished and transferred 100% complete as to materials and 25% complete as to conversion costs
Manufacturing costs: Materials $48,000; labor $42,000; and overhead out; 4,000 units started that are $36,000.
Prepare a production cost report based on this data
The 75% completion factor for conversion costs means that 3,000 units are considered completed for conversion costs, while 1,000 units are still in process.
To prepare a production cost report, we need to calculate the total cost incurred during the month and allocate it to the units produced. Here are the steps to prepare the report:
Step 1: Calculate the equivalent units of production (EUP) for materials and conversion costs.
Materials: All units were finished and transferred, so the EUP for materials is the same as the units produced, which is 11,000.
Conversion costs: Only 25% of conversion costs were incurred for the units produced, so we need to calculate the EUP for conversion costs as follows:
EUP = Units completed and transferred + (Ending WIP x % complete)
EUP = 11,000 + (4,000 x 25%)
EUP = 12,000
Step 2: Calculate the cost per equivalent unit (CPEU) for materials and conversion costs.
Materials: CPEU = Total material costs / EUP for materials = $48,000 / 11,000 = $4.36 per unit
Conversion costs: CPEU = Total conversion costs / EUP for conversion costs = ($42,000 + $36,000) / 12,000 = $6.50 per unit
Step 3: Allocate the total cost to the units produced.
Materials cost: Total materials cost = CPEU for materials x EUP for materials = $4.36 x 11,000 = $47,960
Conversion costs: Total conversion costs = CPEU for conversion costs x EUP for conversion costs = $6.50 x 12,000 = $78,000
Total cost: Total cost incurred during the month = Total materials cost + Total conversion costs + Overhead cost = $47,960 + $78,000 + $4,000 = $129,960
Cost per unit: Cost per unit produced = Total cost / Units produced = $129,960 / 11,000 = $11.81 per unit
Step 4: Prepare the production cost report.
Jo Furniture Company
Production Cost Report - March 2017
Units Produced:
Finished and transferred: 11,000 units
Ending WIP: 4,000 units (75% complete as to conversion costs)
Costs Incurred:
Materials: $48,000
Labor: $42,000
Overhead: $4,000
Equivalent Units of Production:
Materials: 11,000 units
Conversion costs: 12,000 units
Cost per Equivalent Unit:
Materials: $4.36 per unit
Conversion costs: $6.50 per unit
Costs Allocated to Production:
Materials: $47,960
Conversion costs: $78,000
Total Cost Incurred: $129,960
Cost per Unit Produced: $11.81 per unit
Note: The ending WIP is included in the report to show the units that are partially completed and their corresponding costs. The 75% completion factor for conversion costs means that 3,000 units are considered completed for conversion costs, while 1,000 units are still in process.
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Which of the following firms would MOST likely be a successful candidate for acquisition and restructuring?
Tire manufacturer established in 1910
Start-up communications technology firm
b.
Tire manufacturer established in 1910
c.
Medical practice
d.
Management consulting firm that has a tradition of long-term, client-consultant relationships
The firm that would most likely be a successful candidate for acquisition and restructuring is the Management consulting firm that has a tradition of long-term, client-consultant relationships. The correct answer is option d.
What is an acquisition?An acquisition is when one company acquires another company by purchasing a controlling interest. The firm that is being acquired is then absorbed into the buying company, and the stock of the acquiring company is converted into stock of the acquired company.
The importance of the management consulting firm that has a tradition of long-term, client-consultant relationships in acquisition and restructuring is that the traditional client-consultant relationship provides a secure foundation for restructuring efforts.
The key to any effective restructuring is to maintain good client relationships. A long-term, client-consultant relationship can provide a secure foundation for restructuring efforts, as the consultant already knows the client well and has an established level of trust.
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In real estate describe how you would rectify this complaint with the potential buyer. Refer to at least two communication strategies in your answer
To rectify a complaint with a potential buyer in real estate, it is important to use effective communication strategies. Two such strategies are active listening and empathy.
Firstly, it is important to actively listen to the potential buyer’s complaint. This involves giving them your full attention, avoiding interruptions, and asking clarifying questions to ensure that you fully understand their concerns. By actively listening, you demonstrate that you value their feedback and are committed to addressing their concerns.
Secondly, it is important to show empathy towards the potential buyer. This involves acknowledging their feelings and expressing an understanding of their perspective. By showing empathy, you can build rapport with potential buyers and help them feel heard and understood.
Once you have actively listened to the potential buyer’s complaint and shown empathy towards their concerns, you can work towards finding a solution that addresses their needs. This may involve offering a compromise or taking steps to rectify the issue that led to the complaint. By using effective communication strategies such as active listening and empathy, you can help resolve the complaint and maintain a positive relationship with the potential buyer.
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Of the following, which would be LEAST appropriate to use as an allocation base for calculating factory overhead rates? Question 4 options: - direct labor hours
- direct labor dollars - machine hours - total units produced
Direct labor dollars would be the least appropriate allocation base for calculating factory overhead rates because it does not necessarily correspond to the amount of overhead resources used.
For example, if two different products require the same amount of direct labor, but one uses significantly more overhead resources than the other, allocating overhead based on direct labor dollars would not accurately reflect the true costs of producing each product. Therefore, direct labor dollars would not provide an appropriate basis for allocating overhead costs.
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Question 1: Workplace accidents can be very costly to an
employer. Explain any two (2) incidents or tragedies either locally
or globally that had contributed to the importance of workplace
safety. (50
Local incidents or tragedies or global are:
Incident 1: Rana Plaza Collapse in Bangladesh (2013).Incident 2: Deepwater Horizon Oil Spill (2010).The analysis of incidents or tragedies are:
Incident 1: Rana Plaza Collapse in Bangladesh (2013)
The Rana Plaza tragedy in Bangladesh is one of the deadliest industrial accidents in history. The eight-story building, which housed several clothing factories, collapsed, killing over 1,100 people and injuring over 2,500. The building was poorly constructed, and the factories were operating without proper safety measures. The incident drew global attention to the need for better workplace safety standards, particularly in the garment industry.
As a result of the tragedy, many global fashion brands and retailers have adopted stricter safety standards and codes of conduct for their suppliers. The Bangladesh Accord on Fire and Building Safety was also established to improve workplace safety in the garment industry.
Incident 2: Deepwater Horizon Oil Spill (2010)
The Deepwater Horizon oil spill in the Gulf of Mexico was one of the worst environmental disasters in history. The explosion and subsequent spill killed 11 workers and caused extensive damage to marine life and coastal habitats. The incident highlighted the importance of workplace safety in the oil and gas industry.
The accident led to increased scrutiny of offshore drilling practices and the development of new regulations to improve safety. The oil and gas industry also implemented new safety standards and protocols to prevent future accidents.
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Examine the two figures below. Which of these figures will experience a higher long-run growth rate, assuming their ratio of consumer goods to capital goods produced remains constant over time?
Economy B, because it produces more capital goods relative to consumer goods.
Societies that invest a relatively larger percentage of their production into capital goods, which are a type of investment in future production, experience higher growth rates in the long run. So, the ratio of capital to consumer goods produced is higher in economy B, and consequently economy B's long-run growth rate will be higher.
Examining the two figures below, it can be seen that Economy B will experience a higher long-run growth rate, assuming their ratio of consumer goods to capital goods produced remains constant over time.
This is because societies that invest a relatively larger percentage of their production into capital goods, which are a type of investment in future production, experience higher growth rates in the long run.
The ratio of capital to consumer goods produced is higher in Economy B, and thus its long-run growth rate will be higher.
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robin plans to open a bar in a high-crime area. she had difficulty obtaining insurance for the business. she found an insurer willing to write the coverage, but only if robin agreed to have a security alarm system in operation at all times when the business is closed. robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a
Robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a contingency. A contingency is a provision that is included in a contract or agreement to protect a party against possible losses or other adverse occurrences.
A contingency is a possibility or occurrence that is not expected or planned for but could happen. A contingency is a clause in a contract or agreement that specifies that the agreement will be carried out only if certain conditions are met.
For example, a home purchase agreement might include a contingency stating that the sale is contingent on the buyer obtaining financing. Robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a contingency because the insurance company requires it as a condition for coverage.
The contingency specifies that if Robin fails to have the security alarm system operational at all times when the business is closed, the insurance coverage may be voided.
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1. The Abbott Company just paid a dividend of $3.44 per share. Dividends are expected to grow at 20% for the next 3 years, and then 3% forever. Calculate the projected dividend payment 4 years from today. (Round to 3 decimals)
2. Whitmore Inc. just reported earnings of $20 million. It plans to retain 40% of its earnings and payout the rest in the form of a dividend. The historical ROE for the firm is 14%, a figure expected to continue for the foreseeable future. Calculate the projected earnings one year from today. (Round to 2 decimals)
3. Hasbro Inc (HAS) has the following financial information:
Sales: 6,191.6 million
Net income: 414.6 million
Free Cash Flows: 229.2 million
Total Book Equity: 2,999 million
Price Per Share: $59.04
Shares Outstanding: 138 million
Benchmarks:
Price / Earnings: 19.23
Price / FCF: 14.6
Price / Sales: 2.26
Price / Book: 3.61
Given the provided information, calculate the comparable valuation price based on Price / Earnings. (Round to 3 decimals)
4. Hasbro Inc (HAS) has the following financial information:
Sales: 6,191.6 million
Net income: 414.6 million
Free Cash Flows: 229.2 million
Total Book Equity: 2,999 million
Price Per Share: $59.04
Shares Outstanding: 138 million
Benchmarks:
Price / Earnings: 19.23
Price / FCF: 14.6
Price / Sales: 2.26
Price / Book: 3.61
Given the provided information, calculate the comparable valuation price based on Price / FCF. (Round to 3 decimals)
5. Hasbro Inc (HAS) has the following financial information:
Sales: 6,191.6 million
Net income: 414.6 million
Free Cash Flows: 229.2 million
Total Book Equity: 2,999 million
Price Per Share: $59.04
Shares Outstanding: 138 million
Benchmarks:
Price / Earnings: 19.23
Price / FCF: 14.6
Price / Sales: 2.26
Price / Book: 3.61
Given the provided information, calculate the comparable valuation price based on Price / Sales. (Round to 3 decimals)
6.Rudy-G Co. will pay a dividend of $1.25 per share next year. The dividends are expected to grow at 2% per year, forever. Calculate the stock price assuming investors require a 7.5% rate of return on their investment. (Round to 2 decimals)
7. Microsoft just paid a dividend of $2.48 per share. The price of the stock is $241.15. Dividends are expected to grow at 5%, forever. Calculate the implied rate of return on this investment. (Enter percentages as decimals and round to 4 decimals)
8. West Side Co. expects the following dividends to be paid over the next 6 years: $10, $9, $8, $7, $6, and $5. Afterward, the company pledges to maintain a constant growth rate of 3% forever. If the required rate of return is 10%, calculate the current share price. (Round to 2 decimals)
9. Clue Co. just paid a dividend of $1.50 per share. The dividends are expected to grow at 40% over the next five years, and then the dividends will grow at 3% forever. Calculate the current price per share if investors require a 10% return on their investment. (Round to 2 decimals)
The projected dividend payment 4 years from today is $8.051.The projected earnings one year from today is $28 million.
What is payment ?Payment is the transfer of money or other compensation from one party to another in exchange for goods or services. It is a fundamental part of many economic transactions. Payments can be made in a variety of ways, including cash, checks, credit cards, money orders, wire transfers.
The comparable valuation price based on Price / Earnings is $70.731.The comparable valuation price based on Price / FCF and Price / Sales are $81.731 and $133.916.The stock price assuming investors require a 7.5% rate of return on their investment is $17.43.The implied rate of return on this investment is 0.1022.The current share price is $37.78.The current price per share if investors require a 10% return is $10.93.
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#SPJ1a seller offers a promotion to customers which provides one free box of golf balls (valued at $20) if the customer purchases three boxes of golf balls at the regular price of $20 each. in order to receive the free box of golf balls, the customer must fill out a request form and mail it to the seller within three weeks of the date of purchase of the golf balls. the seller estimates that approximately 45% of customers will complete the request form necessary to take advantage of the promotion. in addition, the seller provides three free golf tees (valued at $.15) with every purchase. what amount of revenue would the seller record upon a cash sale of three boxes of golf balls (plus the three free golf tees) to a customer? select one:
In sales, commerce, and economics, a customer is a recipient of a good, service, product, or idea - obtained from a seller. Thus, option B is appropriate.
Total number of Box of Golf Balls Given by the seller to the Customer = 4
So, a Discount is Given to the Customer [tex]= 20/4 =5$[/tex]per box of a Golf ball
So, what amount of revenue would the seller record upon a cash sale of three boxes of golf balls [tex]= ($20 * 3) -(5$ *3)=$60 - $15=$52[/tex]
A customer is someone who purchases goods, services, products, or ideas from a seller, supplier, or vendor in exchange for money or another useful consideration. Sales, business, as well as economics, are all covered by this term.
A customer is a person who purchases something from a vendor, provider, or seller in exchange for money or another item of value in the fields of sales, business, and economics. These terms can also be used to refer to this person.
Thus, option B is correct.
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A seller offers a promotion to customers which provides one free box of golf balls (valued at $20) if the customer purchases three boxes of golf balls at the regular price of $20 each. To receive the free box of golf balls, the customer must fill out a request form and mail it to the seller within three weeks of the date of purchase of the golf balls. The seller estimates that approximately 45% of customers will complete the request form necessary to take advantage of the promotion. In addition, the seller provides three free golf tees (valued at $.15) with every purchase. What amount of revenue would the seller record upon a cash sale of three boxes of golf balls (plus the three free golf tees) to a customer?
Select one:
A. $50.70
B. $52.17
C. $45
D. $52.19
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product: A - B - C - D - E - F Apparel: 120,000 - 96,000 - 72,000 - 48,000 - 24,0000 Chemicals(tons): 0 - 24 - 48 - 72 - 96 - 120 U. S. Production Possibilities Product: R - S - T - U - V - W Apparel: 40,000 - 32,000 - 24,000 - 16,0000 - 8,0000 Chemicals(tons): 0 - 16 - 32 - 48 - 64 - 80a. Are comparative-cost conditions such that the two countries should specialize?
Yes / No.
If so, what product should each produce?
China should produce chemicals or apparel.
The United States should produce chemicals or apparel?
b. What is the total gain in apparel and chemical output that would result from such specialization?
Apparel: units.
Chemicals: tons
Having the Production Possibilities China should create clothing, while the United States should produce chemicals, there will be a gain of 6000 in apparel and 2 in chemicals overall.
To know about Production Possibilities we need to know about its curve,the production possibility curve illustrates the cost to society of selecting one of two items. When an economic system operates at the frontier of manufacturing potential, which is the extreme edge of this curve, it may have the highest quality of life possible since it is employing the best use of its resources to provide as much as possible. The PPF illustrates that a rise in output for one commodity can only happen when output for the associated commodity falls. While deciding on the ideal product mix for their company, managers can utilise the PPF as a tool for decision-making.
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night, inc., a domestic corporation, earned $300,000 from offshore manufacturing activities on which it paid $36,000 of foreign income taxes. night's foreign sales income is taxed at a 50% income tax rate. assume a 21% u.s. tax rate. round your answer to the nearest dollar. what amount of foreign sales income can night earn without generating any excess ftcs for the current year?
The amount of foreign sales income Night can earn without generating any excess FTCs for the current year is $1,080,000.
Night, Inc., earned $300,000 from offshore manufacturing activities, on which it paid $36,000 in foreign income taxes. Its foreign sales income is taxed at a 50% income tax rate. It is necessary to determine the amount of foreign sales income that Night can earn without generating any excess FTCs for the current year. To solve this problem, we need to follow the steps below;
Step 1: Determine foreign taxable income Foreign sales income = $300,000
Foreign income taxes paid = $36,000
Taxable foreign income = $300,000 – $36,000= $264,000
Step 2: Compute the maximum allowable FTCs
Let’s calculate the maximum allowable FTCs. The excess amount is taxable at 50%, which is Night's foreign income tax rate. The maximum amount of foreign income tax credits is as follows; $264,000 * 50% = $132,000
Step 3: Compute the amount of foreign sales income Night should earn a maximum amount of foreign sales income that generates foreign income tax of $132,000. To achieve this goal, we can use the formula below; Maximum allowable foreign sales income = (Foreign income taxes paid/Foreign sales income) * Total foreign sales income + Taxable foreign income
Let’s use the values in the formula;(36000/Maximum allowable foreign sales income) * Total foreign sales income + $264,000 = $132,000(36000/Maximum allowable foreign sales income) * Total foreign sales income = $132,000 - $264,000(36000/Maximum allowable foreign sales income) * Total foreign sales income = -$132,000Total foreign sales income = -$132,000 * Maximum allowable foreign sales income / 36000Total foreign sales income = -$132,000 / 36000 = -3.67Maximum allowable foreign sales income = $300,000 * (50% + 21%) / 50%Maximum allowable foreign sales income = $540,000 / 50% = $1,080,000.
Therefore, the amount of foreign sales income Night can earn without generating any excess FTCs for the current year is $1,080,000.
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On December 31, Year 1, JM Co. exchanged a used machine for a new machine from DP Inc. The used machine had a book value of $100,000 ($120,000 cost minus $20,000 accumulated depreciation) and a fair value of $90,000. The new machine had a list price of $150,000, and DP gave JM a trade-in allowance of $ 105,000, with the difference paid in cash. The exchange has commercial substance. Question How much should JM record as the cost of the new machine in Year 1? How much should JM record as a gain (loss), if any, in Year 1? ear 1?
The cost of the new machine recorded in Year 1 is $45,000. JM record a loss of $10,000 on the trade.
The cost of the new machine to JM Co. should be computed as follows:
New machine list price = $150,000
Less trade-in allowance = $105,000
Cash payment = $45,000 (calculated as $150,000 – $105,000)
Therefore, the cost of the new machine is $45,000.
When an exchange has commercial substance and no cash is involved, a gain or loss should be recognized. In this instance, a gain is recognized when the fair value of the asset received is more than the carrying value of the asset given up. A loss, on the other hand, is recognized when the fair value of the asset received is less than the carrying value of the asset given up.
Since the exchange has commercial substance, JM Co. must first determine whether it has a gain or loss on the trade. Gain on the trade is calculated as follows:
Fair value of the old machine given up = $90,000
Less book value of old machine given up = $100,000
Loss on trade = $10,000
Since the fair value of the old machine is less than its book value, a loss of $10,000 should be recorded. Thus, JM Co. should record a loss of $10,000 on the trade.
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Rusthe Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 74 units were sold.
Date Explanation Units Unit Cost Total Cost
May 1
15
24
Inventory
Purchase
Purchase
Total
30
25
38
——
93
===
$9
10
11
$270
250
418
————
$938
======
Intructions
Calculate the ending inventory at May 31 using the FIFO, LIFO, and average-cost methods. (For average-cost, round the average unit cost to three decimal places.)
Prove the amount allocated to cost of goods sold under each method.
FIFO, LIFO and Average Cost:
FIFO:- Under this method cost of ending inventory will be the most recent purchase and the cost of goods sold will be the most earliest cost.
LIFO:- Under this method cost of ending inventory will be the most earliest purchase and the cost of goods sold will be the most recent cost.
Average Cost:- Under this method cost of ending inventory and cost of goods sold will be the weighted average of cost. Weighted Average Cost can be calculated by the following formula
Weighted Average Cost = Cost of Goods Available for Sales / Units Available for Sales
To calculate the ending inventory and cost of goods sold using the FIFO, LIFO, and average-cost methods, we need to first determine the cost of goods available for sale.
What is a FIFO ?FIFO stands for "first-in, first-out." It is an inventory valuation method that assumes that the first items purchased are the first items sold. Under the FIFO method, the cost of goods sold (COGS) is based on the cost of the earliest inventory items, and the ending inventory is based on the cost of the most recent inventory items. In other words, the cost of the oldest inventory items is assumed to be used up first, while the cost of the most recent inventory items is assumed to remain in inventory. FIFO is commonly used in industries where the cost of inventory items tends to increase over time, such as in the electronics industry.
What is the cost ?Cost refers to the amount of money or resources that a business or individual must expend in order to produce or acquire a product or service. In business, cost can refer to various expenses associated with the production, sale, or delivery of goods or services. These expenses may include direct costs, such as the cost of raw materials, labor, and equipment, as well as indirect costs, such as overhead expenses like rent, utilities, and advertising. Costs can be classified as either fixed or variable, depending on whether they remain constant or fluctuate with changes in production or sales volume. Understanding and managing costs is an important aspect of financial management for businesses, as it can impact profitability and sustainability.
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In February 2023, Rosenbluth shifted its business strategy, resulting in the August 2023 sale of a component of the company considered a separate major line of business. The sale produced a gain on disposal of $199,620. The operations of the component, prior to the sale in December, produced an income of $21,460. How would I add this to an income statement?
In the operating income section of the income statement, the income earned from operations before the sale is recorded. The gain on disposal, which is not included in operating income, is recorded.
To add the given information to an income statement, you need to recognize the two different items involved. A business that changes its business strategy can sell or dispose of a division, asset, or liability. The income or loss derived from the sale or disposal of an asset, which is usually uncommon, is known as a gain or loss on disposal. A gain on disposal occurs when the price received exceeds the net book value of the asset, while a loss on disposal occurs when the price received is less than the net book value of the asset.
The effect of the sale on the income statement can be determined as follows:
Operating income (before sale)$21,460
Gain on disposal$199,620
Total income$221,080
When the sale is recorded in the accounts, the gain on disposal will be posted to the income statement. For accounting purposes, the sale and gain are recorded separately. In the operating income section of the income statement, the income earned from operations before the sale is recorded.
After that, the gain on disposal, which is not included in operating income, is recorded. As a result, the income statement will include all income received from the sale, as well as income earned from operations before the sale, in accordance with the above calculations.
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a life insurer is about to issue a 30-year deferred annuity-due with annual payments of $20 000 to a select life aged 35. the policy has a single premium which is refunded without interest at the end of the year of death if death occurs during the deferred period. (a) calculate the single premium for this annuity. (b)the insurer offers an option that if the policyholder dies before the total annuity payments exceed the single premium, then the balance will be paid as a death benefit, at the end of the year of death. calculate the revised premium.
A) The single premium for this annuity-due is $346,230.68.
B) The revised premium is $365,344.37.
A) This is calculated by using the present value of an annuity-due formula PV=nPVIF(i,n)+C. Here, n=30, PVIF(i,n)=71.362, C=20,000, and i=5%.
B) This is calculated by subtracting the present value of the annuity payments until the year of death (calculated using the present value of an annuity-due formula) from the single premium of $346,230.68. The present value of the annuity payments until the year of death is $19,113.69.
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In organizational behaviour, organizations are best described as: Group of answer choices legal entities that must abide by government regulations and pay taxes. any social entity with profit-focused motives and objectives. social entities with a publicly stated set of formal goals. physical structures with observable capital equipment. groups of people who work interdependently towards some purpose.
Organizations are best described as social entities with a publicly stated set of formal goals. They are typically formed as legal entities that must abide by government regulations and pay taxes, but the primary purpose of an organization is to pursue specific objectives and goals. Organizations are typically comprised of groups of people who work interdependently towards a common purpose. Organizations can also refer to physical structures with observable capital equipment, as this equipment helps support the activities of the organization and allows its members to pursue their goals. All the given choices are correct.
Organizations are complex social systems and are typically characterized by their formal and informal goals and objectives. A formal goal is a goal that has been publicly stated and documented, and that the organization strives to achieve. Informal goals are goals that are not formally stated but are still commonly accepted and pursued by the organization's members. Organizations are usually composed of various departments, teams, and individuals who work together to achieve the organization's goals and objectives.
Organizations have various resources at their disposal, such as money, time, people, and other physical assets. These resources are used to pursue the organization's stated goals and objectives. Organizations often have specific processes, such as policy-making, decision-making, budgeting, and human resource management, that help ensure that resources are used in an effective manner.
In summary, organizations are best described as social entities with a publicly stated set of formal goals. They are usually formed as legal entities that must abide by government regulations and pay taxes, but the primary purpose of an organization is to pursue specific objectives and goals. Organizations typically consist of groups of people who work interdependently towards a common purpose, and they have various resources at their disposal to pursue their goals. Hence, all the given options are correct.
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a restaurant is undergoing a change in cuisine and style of service. it is important that new staff is hired and existing staff retrained. why might the hr manager recommend vestibule training as being highly effective in this situation? group of answer choices prospective and present employees can focus on learning and feedback instead of productivity. off-site training has great value for evaluating the effectiveness of performance appraisals. employees will be reluctant to undertake training removed from the workplace. the owners can be more confident that the change to the restaurant will be popular with customers. employees will see limited connections to everyday work in this type of training.
The HR manager might recommend vestibule training as being highly effective in this situation because it provides an environment in which prospective and present employees can focus on learning and feedback, rather than on productivity.
Furthermore, it provides the opportunity to evaluate the effectiveness of performance appraisals, while also helping the owners to be confident that the change to the restaurant will be popular with customers. Additionally, it enables employees to see the direct connections to their everyday work in this type of training.
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Discuss the implications of cost budgeting in project cost
management.
Examine the differences between strategic and tactical
investments
Cost budgeting is an important part of project cost management. It is a process that involves the planning, estimation, and allocation of project costs to ensure that the project is completed within the budget.
The implications of cost budgeting in project cost management are as follows:
Helps to estimate project costs accurately:
Cost budgeting helps in the estimation of the costs of the project, both direct and indirect costs, as well as the various components that are involved in the project.
Enables better planning:
Cost budgeting helps in the planning process by providing an estimate of the costs involved in the project. This allows project managers to plan the project more effectively and to allocate resources accordingly.
Manages project costs:
Cost budgeting helps in managing project costs by providing a basis for monitoring the costs and adjusting the project plan as required.
This helps in ensuring that the project is completed within the budget. Minimizes cost overruns: Cost budgeting helps in minimizing cost overruns by providing a framework for managing costs and identifying potential problems before they occur.
Examines the differences between strategic and tactical investments: Strategic investments:
These are long-term investments that are aimed at achieving the goals of the organization.
They are usually large-scale investments that involve a high degree of risk. These investments are usually made with the aim of increasing the value of the organization or achieving a competitive advantage. Tactical investments: These are short-term investments that are aimed at achieving immediate goals.
These investments are usually made to address a specific problem or to take advantage of an opportunity that arises.
Tactical investments are usually made with the aim of generating a quick return on investment (ROI).
In conclusion, cost budgeting plays a crucial role in project cost management. It helps in estimating project costs accurately, enables better planning, manages project costs, and minimizes cost overruns.
Strategic investments are long-term investments that are aimed at achieving the goals of the organization, while tactical investments are short-term investments that are aimed at achieving immediate goals.
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