The statement is incorrect because the People's Bank of China (PBOC) follows a managed floating exchange rate system. When the PBOC announces a reference rate of 7.00 RMB per dollar.
it means that it sets a central rate around which the exchange rate can fluctuate within a certain band. In this case, the band is ±2% of the reference rate. Therefore, the PBOC is willing to buy dollars at a rate as low as 6.86 RMB per dollar and sell dollars at a rate as high as 7.14 RMB per dollar. This allows the PBOC to manage the exchange rate to some extent and intervene in the foreign exchange market if necessary.
In a freely floating exchange rate system, speculators do not have the power to stabilize the exchange rate. In fact, speculators may contribute to exchange rate volatility. In this system, the exchange rate is determined by market forces of supply and demand, and speculators can take advantage of fluctuations in exchange rates to make profits. However, if speculators engage in large-scale buying or selling of a currency.
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The beta of the risk-free asset is 0 1 −1 0.5
The beta values provided are 0, 1, -1, and 0.5.
Beta is a measure of an asset's sensitivity to market movements. A beta of 1 indicates that the asset's price tends to move in line with the overall market. A beta of 0 suggests that the asset's price is not affected by market fluctuations. A positive beta greater than 1 implies the asset is more volatile than the market, while a negative beta less than 0 indicates an inverse relationship to market movements.
In this case, the given beta values are 0, 1, -1, and 0.5.
- A beta of 0 means the asset's returns are uncorrelated with the market returns.- A beta of 1 indicates the asset's returns move in line with the market returns.
- A beta of -1 suggests an inverse relationship, meaning the asset's returns move opposite to the market returns.- A beta of 0.5 indicates the asset's returns are less volatile than the market returns.
These beta values help investors assess the risk and potential returns associated with different assets and create diversified portfolios based on their risk preferences.
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Institutional Conformance at Meridian Credit Union
Q7. The move to go national as a bank rather than a credit union was partly based on the following quotation from the CEO of Meridian: "The bank is the financial entity Canadians are most used to". The CEO's concern that consumers don't fully understand what a credit union is represents what institutional force from the follwing ?
a. Cognitive
b. Normative
c. Regulatory
The CEO of Meridian Credit Union's concern that consumers don't fully understand what a credit union is represents a cognitive institutional force.
Cognitive forces pertain to individuals' cognitive abilities, knowledge, and mental competence. In this case, the CEO's concern reflects the cognitive force related to consumers' lack of understanding of what a credit union is. The statement suggests that consumers are more familiar with the concept of a bank and may not fully grasp the differences between a credit union and a bank. Normative forces, on the other hand, are related to social norms, values, and societal expectations. While societal norms can influence consumer behavior and preferences, the CEO's concern does not directly align with normative forces. Regulatory forces involve laws, regulations, and policies that govern an industry. The CEO's concern about consumer understanding does not pertain to regulatory factors. Therefore, in the context of the CEO's quotation and concern that consumers don't fully understand what a credit union is, the institutional force involved is cognitive. It highlights the need to address the lack of financial literacy or knowledge among consumers, emphasizing the importance of clear communication and education regarding the credit union model to enhance consumer understanding and decision-making.
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4. Refer to the article on Colorado Water Markets provided in Additional Readings under Week 7 module. Summarize the authors' findings on socio-economic effects of water rights transfers in the South Platte vs. the Arkansas basins. 20 pts.
ABSTRACT of Colorado Water Marketsarticle: This paper presents an analysis of the effects of different institutional arrangements and economic environments on water markets. Characteristics of water rights transfers in theSouth Platte Basin of Colorado and transfers of shares of the Northern Colorado Water Conservancy District (NCWCD) are compared to show how different institutional arrangements can affect the types and size distributions of transfers. The characteristics of water rights transfers in the prosperous South Platte are then compared with water rights transfer characteristics in the economically marginal Arkansas River basin of Colorado to identify the effects of different economic environments. Finally, the economic losses from reductions in irrigated acreage resulting from water transfers are estimated for the South Platte and Arkansas and compared with purchase prices by municipalities. Transfers in the South Platte were to new uses in the same basin, while more recent transfers in the Arkansas were to out-of-basin users. Transfers of South Platterights and especially NCWCD shares were small and continuous over time, while transfers in the Arkansas were dominated by a few very large transfers. The negative impacts are judged to be more severe in the Arkansas basin than in the South Platte. Purchase prices paid by municipalities substantially exceeded capitalized transitional losses in the selling areas. In the South Platte, gains and losses were in some basins, while the Arkansas absorbedthe losses, with the benefits going to the purchasing basin.
Conclusion of Colorado Water Markets Article
In comparing the patterns of transfers of traditional water rights in the South Platte basin with transfers of shares in the NCWCD, it becomes clear that the differences in the nature of the property rights involved and the differences in the types of social oversight used to have very different results: the homogeneous nature of NCWCD shares make them easier to trade, while the avoidance of water court review contributes to a continuous market in small transactions. Traditional water rights have not only different priorities but different consumptive fractions and seasonal patterns of use. A prospective buyer must search for rights with the right characteristics. The higher transaction costs of water court review result in economies of scale in the transfer process, resulting in much larger transfers on average. The comparisons of transfer characteristics between the South Platte and the Arkansas (both of which involve traditional water rights and are subject to water court review) suggest that out-of-basin transfers (the Arkansas) involve much larger transaction costs and thus, because of scale economies in transfer costs, result in a distribution of transfer sizes dominated by a few large, occasional transfers. The comparative impact analysis indicates that more severe economic and social impacts are likely in specialized, marginal agricultural regions like the Arkansas: the direct and indirect losses of income, tax receipts, and employment per acre foot are likely to be significantly higher than those in a prosperous basin, while the losses on a per capita basis are much greater and are likely to persist over a longer timespan. The results suggest grounds for extra market assistance to basins of origin when conditions in the basic approximate those found in Arkansas. The set of criteria to be considered by the transfer agencies in approving, modifying, or disapproving water transfers should be expanded to include consideration of the secondary economic and social costs imposed on the basis of origin (as is the practice in Utah, Wyoming, and Idaho). When it is determined that serious costs will be imposed on the basin of origin, one or both of two policies might be followed: (1) a transfer fee per acre foot could be imposed on the buyer and transferred to a unit of general government (including school districts) in the area of origin to support social services during the period of transition; and (2) a more gradual transfer of the water over several years as is done currently with revegetation requirements could be specified, allowing more time for adjustments to take place.
The Colorado Water Markets article investigates the socio-economic effects of water rights transfers in the South Platte and Arkansas basins. In the South Platte Basin, water transfers were to new uses within the same basin. In contrast, more recent transfers in the Arkansas were to out-of-basin users.
The characteristics of water rights transfers in the prosperous South Platte were then compared with water rights transfer characteristics in the economically marginal Arkansas River basin to identify the effects of different economic environments.
Overall, the article suggests that more severe economic and social impacts are likely in specialized, marginal agricultural regions like the Arkansas, while the losses on a per capita basis are much greater and are likely to persist over a longer timespan.
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A bank offers 30 -year, $195,000 mortgages at 5.0 percent and charges a $4,000 refundable loan application fee. The current disclosure law requires that any fees that will be refunded if the applicant is rejected be included in calculating the APR. What is the APR that they are required to disclose? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))
(1) A mortgage loan fixed monthly payment $1,044.53 per month (rounded to the closest penny) (2) Total interest paid during the course of the loan: $180,151.25 in total interest (rounded to the closest penny) (3) The total price was $184,151.25. (4) The bank is obligated to provide a 3.15% APR.
The calculation is as follows:
Loan amount P
r is the ongoing interest rate.
n is the number of months in the loan period.
Monthly Payment (M) is calculated as follows: P * (r * (1 + r)n) / ((1 + r)n-1)
Monthly interest rate (r) equals annual interest rate divided by 12.
r = 0.05 / 12
$195,000 * (0.05 / 12 * (1 + 0.05 / 12)360) / ((1 + 0.05 / 12)360 - 1) = Monthly Payment $1,044.53 per month (rounded to the closest penny)
Subtract the loan amount from the total number of payments made over the loan period to determine the total interest paid.
Total Payments are calculated as Monthly Payment * Months.
Total interest equals total payments less the loan amount.
Payments Total = $1,044.53 * 360
Sum of Interest equals Sum of Payments minus $195,000
$375,151.25 in total payments (rounded to the closest penny)
$180,151.25 in total interest (rounded to the closest penny)
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Accents Associates sells only one product, with a current selling price of \( \$ 110 \) per unit. Variable costs are \( 30 \% \) of this selling price. and fixed costs are \( \$ 16,800 \) per month. M
The breakeven point, we first need to determine the variable cost per unit. It is calculated as 30% of $110:
Variable cost per unit = 30% of $110 = $33 per unit
Next, we calculate the contribution margin per unit, which is the selling price per unit minus the variable cost per unit:
Contribution margin per unit = selling price per unit - variable cost per unit
= $110 - $33
= $77
The contribution margin ratio is calculated by dividing the contribution margin per unit by the selling price per unit:
Contribution margin ratio = Contribution margin per unit / Selling price per unit
= $77 / $110
= 0.7 or 70%
Given that the fixed costs for Accents Associates are $16,800 per month, we can now determine the breakeven point in units:
Breakeven point in units = Fixed costs / Contribution margin per unit
= $16,800 / $77
= 218.18 units
Rounding up to the nearest whole number, the breakeven point in units is 219 units.
To find the breakeven point in sales dollars, we multiply the breakeven point in units by the selling price per unit:
Breakeven point in sales dollars = Breakeven point in units x Selling price per unit
= 219 x $110
= $24,090
Therefore, the breakeven point is 219 units, or $24,090 (rounded).
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Berlioz Inc. is trying to estimate its cost of common equity, and it has the following information.
The firm has a beta of 0.90, the before-tax cost of the firm's debt is 7.75%, and the firm estimates that the risk-free rate is 4% while the current market risk premium is 5%.
Berlioz stock currently sells for $35.00 per share. The firm pays dividends annually and expects dividends to grow at a constant rate of 2% indefinitely.
The most recent dividend per share, paid yesterday, was $2.00. Finally, the firm has a marginal tax rate of 35%.
The cost of common equity using the CAPM is
A. 11.25%
B. 8.5%
C. 6%
D. 7%
The cost of common equity using the CAPM is approximately 4.9% or 4.9 (rounded to one decimal place).
To calculate the cost of common equity using the Capital Asset Pricing Model (CAPM), we can use the following formula:
Cost of Equity = Risk-Free Rate + Beta × Market Risk Premium
First, let's calculate the market risk premium:
Market Risk Premium = Current Market Risk Premium - Risk-Free Rate
Market Risk Premium = 5% - 4% = 1%
Next, we can calculate the cost of equity:
Cost of Equity = 4% + 0.90 × 1%
Cost of Equity = 4% + 0.009
Cost of Equity = 0.049 or 4.9%
However, the cost of equity is calculated on an after-tax basis. Since the firm has a marginal tax rate of 35%, we need to adjust the cost of equity accordingly.
After-Tax Cost of Equity = (1 - Tax Rate) × Cost of Equity
After-Tax Cost of Equity = (1 - 0.35) × 4.9%
After-Tax Cost of Equity = 0.65 × 4.9%
After-Tax Cost of Equity = 3.185% or 3.19% (rounded to two decimal places)
Therefore, the cost of common equity using the CAPM is approximately 3.19%. None of the options provided match this calculation, so it seems there might be an error in the answer choices or the calculations above.
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The Kansas City Chiefs are deciding whether to offer a contract extension to Tyreek Hill. Suppose the contract would give him a signing bonus of $20 million up front (i.e. today) and $25 million annually over the next five years. If the expected cash inflows from signing him are $35 million, $30 million, $29 million, $28 million, and $27 million, respectively over the next five years, the expected IRR of signing Tyreek Hill is If the Kansas City Chiefs, required rate of return is 10 percent, the Kansas City Chiefs accept this contract. Based on the above information (using the Chiefs discount rate), the computed net present value of this contract offer must be (Hint: you should net out the inflows and outflows when calculating the IRR). (a) 8.73%; should; negative (b) 11.27%; should; positive (c) 8.73%; should not; positive (d) 11.27%; should not; negative
The given information, we need to calculate the net present value (NPV) of the contract offer to determine if the Kansas City Chiefs should accept it. The correct answer is (b) 11.27%; should; positive
The NPV is calculated by subtracting the initial investment from the present value of the expected cash inflows.
To calculate the NPV, we need to find the present value of each cash inflow and sum them up. The formula for calculating the present value is: PV
= CF / (1 + r)^n
Where PV is the present value, CF is the cash flow, r is the discount rate, and n is the number of years.
Let's calculate the present value for each cash inflow: PV1
= 35 / (1 + 0.10)^1
= 31.82 million
PV2
= 30 / (1 + 0.10)^2
= 24.79 million
PV3
= 29 / (1 + 0.10)^3
= 21.43 million
PV4
= 28 / (1 + 0.10)^4
= 18.34 million
PV5
= 27 / (1 + 0.10)^5
= 15.69 million
Now, we can calculate the NPV by subtracting the initial investment from the sum of the present values: NPV
= -20 + PV1 + PV2 + PV3 + PV4 + PV5
= -20 + 31.82 + 24.79 + 21.43 + 18.34 + 15.69
= 92.07 million
Since the NPV is positive, the Kansas City Chiefs should accept this contract offer. The correct answer is (b) 11.27%; should; positive.
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An increase in depreciation expense of $6,000 for the year
Select one: A. decreases cash flow from operations by $3,000. B.
increases cash flow from financing by $3,000. C. will lead to an
increase in
An increase in depreciation expense of $6,000 for the year will lead to a decrease in net income.
The depreciation expense reduces the reported net income by the same amount. This is because of the matching principle. When the company matches expenses to revenues, this means that the depreciation expense should be recorded in the same period as the revenues.
Thus, it will decrease the net income. However, the depreciation expense has no impact on cash flows directly.The cash flow from operations is not directly affected by the depreciation expense. This is because depreciation is a non-cash expense. Cash flow from operations is calculated by taking the net income and adjusting for non-cash items, such as depreciation.
Thus, the increase in depreciation expense of $6,000 will be added back to the net income to arrive at the cash flow from operations. Therefore, the increase in depreciation expense of $6,000 for the year will have no impact on the cash flow from operations.
In conclusion, option A is not correct. It is incorrect to say that an increase in depreciation expense of $6,000 for the year decreases cash flow from operations by $3,000. Similarly, option B is also incorrect. It is incorrect to say that an increase in depreciation expense of $6,000 for the year increases cash flow from financing by $3,000. Therefore, the correct answer is option C. It is correct to say that an increase in depreciation expense of $6,000 for the year will lead to an increase in net income.
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Which interest type prefers research and problem solving tasks? A. Realistic B. Investigative C. Artistic D. Social E. Enterprising F. Conventional
The interest type that prefers research and problem-solving tasks is the Investigative type.
The Investigative interest type, represented by the letter B, is characterized by individuals who have a strong inclination towards research, analysis, and problem-solving tasks. People with an investigative interest are typically curious, analytical, and enjoy exploring and understanding complex concepts.
Individuals with an investigative interest are drawn to activities that involve scientific inquiry, data analysis, and intellectual challenges. They thrive in environments that provide opportunities for research, experimentation, and problem-solving. They are often found in fields such as science, technology, engineering, mathematics, research, academia, and other knowledge-intensive professions.
These individuals have a natural curiosity and enjoy exploring ideas, theories, and concepts in depth. They are motivated by the pursuit of knowledge and seek to understand the underlying principles and mechanisms behind various phenomena. They excel in tasks that require critical thinking, logical reasoning, and the ability to analyze data and solve complex problems.
Overall, individuals with an investigative interest are driven by their intellectual curiosity and their desire to uncover new knowledge and solve challenging problems through research and analysis.
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When reflecting on your past experiences, describe how statistics are used in your organizations to communicate performance. Include topics/type? Were the communication or methodology helpful? If so, how? If not, why not? Please thoroughly explain
In most organizations, statistics are used to track and communicate performance in various topics and types, such as sales performance, customer satisfaction, employee engagement, and financial performance.
Overall, I found the communication and methodology of using statistics to be helpful in understanding and improving organizational performance. For instance, the use of visual aids such as charts and graphs made it easier to understand complex data and identify trends over time. In addition, the use of statistics allowed us to benchmark performance against industry standards and set realistic goals for improvement.
However, there were also instances where the use of statistics was not helpful. For example, there were times when the methodology for collecting and analyzing data was flawed, resulting in inaccurate or misleading statistics. In such cases, the use of statistics only served to undermine confidence in organizational performance.
In conclusion, the use of statistics to communicate performance in organizations can be a helpful tool when used appropriately. It is important to ensure that the methodology for collecting and analyzing data is sound and that the communication of statistics is clear and accurate.
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QUESTION 23 In the 1950s, Walt Disney began to plan the development of a theme park that would eventually become Disneyland. Disney hired an economist to help determine whether the park would be a financial success. This economist surveyed managers of existing amusement parks for advice. Many of these managers A. recommended that the theme park be located in California because population in the state would increase greatly in the future. Disney followed this advice. B. recommended that Disney first build an audience for his park by offering the ABC television network a weekly program that would feature Disney movies, cartoons and original programming. Walt Disney followed this advice. Both the television program and Disneyland were financial successes. C. recommended that Disney not build the park and leave the amusement park business to those who knew what they were doing. D. believed that a theme park would be very successful because the Disney name created a market among children and parents who had watched Disney cartoons and movies such as Snow White.
Disney hired an economist to help determine whether the park would be a financial success. This economist surveyed managers of existing amusement parks for advice. Many of these managers recommended that Disney first build an audience for his park by offering the ABC television network a weekly program.
That would feature Disney movies, cartoons and original programming. Walt Disney followed this advice. In the 1950s, Walt Disney began to plan the development of a theme park that would eventually become Disneyland. To help determine whether the park would be a financial success, Disney hired an economist who surveyed managers of existing amusement parks for advice. Many of these managers recommended that Disney first build an audience for his park by offering the ABC television network a weekly program that would feature Disney movies, cartoons and original programming. Walt Disney followed this advice.
Both the television program and Disneyland were financial successes. So, option B is the correct one.Option A is incorrect. Although the managers recommended that the theme park be located in California because population in the state would increase greatly in the future, Disney didn't hire any economist for this purpose.Option C is incorrect. The managers didn't recommend Disney not to build the park.Option D is also incorrect. Though the managers believed that a theme park would be very successful because the Disney name created a market among children and parents who had watched Disney cartoons and movies such as Snow White, the economist surveyed the managers and gave the idea of offering the ABC television network a weekly program that would feature Disney movies, cartoons and original programming.
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The presentation can be one of these topics: 1. a new technology, 2. a new company's technology, 3. an evolution of an existing technology, or 4. a problem with an existing technology. the presentation will follow similar to your group projects in content and flow. This means it will encompass the 4 sections we walked through within the sememster. this will include a current state, innovation strategies for both internal and external, and finally the support capabilities for the organization. Think about your group presentations, now that you have a full picture of managing technology how would you set up to manage your technology?
In today's era, technology is the backbone of every business. Therefore, managing technology is essential to increase productivity and efficiency.
1. A new technology, 2. A new company's technology, 3. An evolution of existing technology, or 4. A problem with existing technology.The presentation should be structured as your group projects in content and flow. It should have four sections. These include the current state, innovation strategies for both internal and external, and the support capabilities for the organization. To manage technology effectively, companies need to take a proactive approach. One way to do this is to establish an Information Technology (IT) governance structure. The IT governance structure should be composed of top-level management, IT professionals, and stakeholders. The purpose of the IT governance structure is to ensure that technology is being managed efficiently and effectively.To manage technology effectively, companies must also employ innovation strategies. One way to do this is by partnering with external companies. Partnering with external companies can help businesses stay up-to-date with new technologies. Finally, companies must have support capabilities in place to manage technology effectively. This includes having a help desk or support team available to assist employees with technology-related issues.In conclusion, managing technology is essential to a company's success.
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A new start-up company develops spreadsheet software that can do many more things than Microsoft Excel currently does. This is an example of _____.
a. threat of new entrants
b. bargaining power of suppliers
c. rivalry among existing competitors
d. bargaining power of buyers
A new start-up company develops spreadsheet software that can do many more things than Microsoft Excel currently does. This is an example of threat of new entrants
The development of a new start-up company that introduces spreadsheet software with enhanced capabilities beyond what Microsoft Excel currently offers represents a threat of new entrants in the market. The start-up's innovative product creates competition for Microsoft Excel and poses a potential challenge to its market dominance. This threat of new entrants can disrupt the existing competitive landscape and compel established players like Microsoft to respond and innovate in order to maintain their market share and competitive advantage.
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Pick a situation in which a public administrator would find
themselves. Describe what type of political influence is best
utilized for specific situation.
A public administrator might find themselves in a situation where they have to draft policies that ensure efficient and effective distribution of the government's resources. In such a case, the public administrator will require adequate political influence to enable them to achieve their goals.
In the U.S., the public administrator's role is to ensure that public resources are used to benefit citizens and not to advance political interests.
To achieve this goal, public administrators have to understand the complex environment of government operations. This complexity can be political, financial, or managerial. Public administrators have to interact with legislators, executives, stakeholders, and citizens to influence policies and resource allocation. Therefore, the political influence that a public administrator can use depends on the situation. For example, in cases of budgetary constraints, a public administrator may use political influence to create alliances with political leaders to ensure that they secure more resources. The public administrator may also build relationships with civil society organizations to enable them to gain support for their policies.
A public administrator's role is to ensure that public resources are used effectively and efficiently. They need political influence to achieve this goal. They can utilize different types of political influence, depending on the situation. For instance, they can build alliances with political leaders, gain support from civil society organizations, and interact with stakeholders. A successful public administrator will use their political influence to create policies that are beneficial to the public.
A public administrator's role is critical in ensuring effective and efficient use of public resources. Political influence is an important tool that can be utilized to achieve this goal. Public administrators should be familiar with the complex environment of government operations and be able to interact with various stakeholders to influence policies and resource allocation.
In conclusion, They need to build alliances with political leaders, civil society organizations, and other stakeholders to create policies that are beneficial to the public. Public administrators who are successful in their roles utilize political influence to create policies that are beneficial to the public.
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2) GreatWest Corp. is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, GreatWest would have 135,000 shares of stock outstanding. Under Plan II, there would be 90,000 shares of stock outstanding and $1.350 million in debt outstanding. The interest rate on the debt is 10.00 percent and there are no taxes.
A. If EBIT is $243,000, what are the EPS estimates for the two plans?
B. If EBIT is $1,134,000, what are the EPS estimates for the two plans?
C. What is the break-even EBIT?
Explain and show working
The EPS estimates for Plan I and Plan II are $1.80 per share and $1.40 per share, respectively. The break-even EBIT is $405,000.
What are the EPS estimates for Plan I and Plan II, and the break-even EBIT for GreatWest Corp.?To calculate the EPS (Earnings Per Share) for each plan, we need to determine the earnings available to common shareholders after interest expense (for Plan II).
1. For Plan I:
Number of shares outstanding = 135,000
Earnings Before Interest and Taxes (EBIT) = $243,000
EPS for Plan I = EBIT / Number of shares outstanding
= $243,000 / 135,000
= $1.80 per share
2. For Plan II:
Number of shares outstanding = 90,000
EBIT = $243,000
Interest expense = Debt * Interest rate
= $1,350,000 * 0.10
= $135,000
Earnings available to common shareholders (EAC) = EBIT - Interest expense
= $243,000 - $135,000
= $108,000
EPS for Plan II = EAC / Number of shares outstanding
= $108,000 / 90,000
= $1.20 per share
B. The EPS estimate for Plan I is $8.40 per share, and for Plan II is $7.60 per share.
Using the same calculations as above but with EBIT = $1,134,000, we find:
EPS for Plan I = $1,134,000 / 135,000 = $8.40 per share
EPS for Plan II = ($1,134,000 - $135,000) / 90,000 = $7.60 per share
C. The break-even EBIT is $405,000.
To find the break-even EBIT, we need to equate the EPS for both plans:
EPS for Plan I = EPS for Plan II
EBIT / 135,000 = (EBIT - Interest expense) / 90,000
Simplifying the equation, we have:
EBIT / 135,000 = (EBIT - $135,000) / 90,000
Solving for EBIT, we find:
EBIT = $405,000
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Expected return. Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 11%, the probability of a stable growth economy is 17%, the probability of a stagnant economy is 54%, and the probability of c recession is 18%. Estimate the expected returns on the following individual investments for the coming year, Hint: Make sure to round all intermediate calculations to at least sever (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type.
The required answer to this question is expected return for Investment B is approximately 2.3%.
To estimate the expected returns on individual investments, we need to multiply the return of each economic state by its corresponding probability and then sum them up. Let's calculate the expected returns for each investment based on the given probability estimates.
Investment A:
Return in a boom economy: 25%
Return in a stable growth economy: 10%
Return in a stagnant economy: 2%
Return in a recession: -15%
Using the probability estimates provided, we can calculate the expected return for Investment A:
Expected return = (Probability of boom economy * Return in boom economy)
+ (Probability of stable growth economy * Return in stable growth economy)
+ (Probability of stagnant economy * Return in stagnant economy)
+ (Probability of recession * Return in recession)
Expected return = (0.11 * 0.20) + (0.17 * 0.08) + (0.54 * 0.01) + (0.18 * -0.10)
Expected return = 0.022 + 0.0136 + 0.0054 - 0.018
Expected return = 0.023 or 2.3% (rounded to two decimal places)
The expected return for Investment B is approximately 2.3%.
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Robert owned stock in GIN. The corporation's Board of Directors voted to contribute $100,000 to a charity. Hunter disagreed with this action because the charity supported an action that violated one of Robert closely-held religious beliefs, so he sued to stop the contribution.
Robert owned stock in GIN. The corporation's Board of Directors voted to contribute $100,000 to a charity. Hunter disagreed with this action because the charity supported an action that violated one of Robert's closely-held religious beliefs, so he sued to stop the contribution.
What is a closely held corporation? A closely held corporation refers to a corporation whose shares are owned by a small group of people, typically members of a family or a few business partners.
What are the legal rights of closely held corporations? Closely held corporations can use their discretionary rights to manage their affairs, so long as the actions of their directors are in line with their obligation to act in the best interests of the company. They may not, however, ignore their fiduciary duties or abuse their powers.
Closely held corporations are not required to go public, issue shares to the public, or report on their performance in the same way that publicly traded companies are required to. They may also be exempt from certain government regulations that apply to public companies. In this case, Hunter disagreed with the corporation's decision to donate money to a charity that supported an action that violated one of Robert's closely-held religious beliefs.
As a shareholder, Hunter had the legal right to sue to prevent the corporation from making the contribution.
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Which of the following $1,000 face value bonds has the lowest yield if these bonds have the same time to maturity?
A 12 percent coupon bond selling for $1,000
A 10 percent coupon bond selling for $1,000
A 5 percent coupon bond selling for $1,000
A 5 percent coupon bond selling for $1,090
The bond with the lowest yield among the options is the 12 percent coupon bond selling for C. $1,000. Yield refers to the return an investor would receive from owning a bond.
It is typically expressed as a percentage of the bond's face value. In this case, all the bonds have the same face value of $1,000 and the same time to maturity. When the coupon rate (annual interest payment as a percentage of face value) is higher than the prevailing market interest rate, the bond is said to be selling at a premium. Conversely, when the coupon rate is lower than the market interest rate, the bond is selling at a discount. Based on the given information, the 12 percent coupon bond is selling for $1,000, which means it is selling at its face value. This implies that the coupon rate is equal to the market interest rate, resulting in a yield that matches the prevailing rate.
On the other hand, the 10 percent coupon bond and the 5 percent coupon bond selling for $1,000 are both selling at a discount since their coupon rates are lower than the market interest rate. The 5 percent coupon bond selling for $1,090 is also selling at a discount but at a higher price, indicating an even lower yield compared to the other bonds. Therefore, among the given options, the 12 percent coupon bond selling for $1,000 has the lowest yield, as it is selling at its face value with a coupon rate equal to the prevailing market interest rate.
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when a cardiac arrest occurs and an aed becomes available
When a cardiac arrest occurs and an AED becomes available, it should be used as soon as possible.
When a cardiac arrest occurs, the most effective therapy is defibrillation. It's a method of delivering a therapeutic dose of electrical energy to the heart with a device known as an automated external defibrillator (AED).AEDs are small, portable, and simple to operate. They're designed to be used by the public, first responders, and healthcare professionals, with little or no training required. When an AED becomes available, it should be used as soon as possible.CPR should be performed right away. Chest compressions and rescue breaths are used in CPR to pump oxygenated blood to the brain and other vital organs. It may help to stabilize a person's heart rhythm and save their life. If the AED arrives, attach it to the person's chest. If the AED detects a shockable rhythm, it will provide the shock to restore the normal rhythm.
Therefore, when a cardiac arrest occurs and an AED becomes available, it should be used as soon as possible. CPR should be done, and if an AED arrives, it should be attached to the patient's chest.
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1. What is onboarding? Describe Employee onboarding and how does it matter.
2. How was Onboarding for the Remote Work Era?
3. what we would class as a welcoming process and not an onboarding. What is the difference? Why do we consider 18 months for onboarding?
Onboarding is the procedure of integrating a new employee into a company and arranging the necessary resources and equipment for the employee to become a successful team member. Onboarding for the Remote Work Era was quite a bit different than the traditional in-person onboarding process.
1. Onboarding is the procedure of integrating a new employee into a company and arranging the necessary resources and equipment for the employee to become a successful team member. Employee onboarding involves assisting new employees in acquiring the knowledge and skills required to excel in their new job. This process entails more than just introducing them to their colleagues and handing them a list of do's and don'ts; it involves establishing a connection with the new hires and supporting them throughout the integration process.
Employee onboarding is crucial to the long-term success of a business because it fosters a sense of belonging and ownership in the employee. It creates a good first impression and sets the tone for the employee's future engagement and performance. It ensures that employees have the knowledge and skills required to succeed in their new position, as well as a clear understanding of the company's goals and values.
2. Onboarding for the Remote Work Era was quite a bit different than the traditional in-person onboarding process. The remote work onboarding process has become more popular since the pandemic. Remote work onboarding has become an essential component of the process. Employers can provide their new remote workers with technology and information that will help them acclimate to their new positions. Remote onboarding can include virtual meet-and-greets with colleagues, company culture training, and virtual tours of the workspace.
3. Welcoming a new employee to the company and introducing them to their team members is only one aspect of onboarding. Employee onboarding is a comprehensive process that covers everything from educating new hires about the company's culture and values to training them on job-specific tasks. Onboarding goes beyond making an employee feel welcome; it establishes a framework for how they will interact with the organization. It takes 18 months to complete the process because it covers several stages of development for the employee. It begins with the initial onboarding phase, which lasts for several months, and then progresses to the mid-term phase, which lasts for around six months. The final stage is the employee's long-term growth, which lasts for up to a year and a half.
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The principal purpose of a business strategy is to guide a firm towards greater success or profitability. Required: Discuss, with appropriate examples, the significance of the following in the formulation or implementation of strategy:
A. An analysis and understanding of a firm's external environment.
B. A merger or joint venture.
The purpose of business strategy is to guide a firm toward greater success and profitability. The principal goal of a firm is to have a competitive advantage over its competitors. To gain this competitive advantage, a business strategy must be formulated, and it must be done with careful consideration.
It must be able to address the business's internal and external environment, among other factors.
A. Analysis and understanding of a firm's external environment:
For any organization to formulate or implement an effective business strategy, the company must have a thorough understanding of its external environment.
This entails analyzing the industry, market trends, political, social, economic, and environmental aspects of the market where the firm operates. External factors are crucial as they have a direct impact on the performance of a business. Organizations must stay current with changes in the external environment and modify their business strategies to keep up with the changes.
For instance, a company must consider the current market trends to launch a new product. Understanding the external environment is critical in decision-making processes.
B. A merger or joint venture: In some instances, firms opt for mergers or joint ventures as part of their business strategy to create more value than if they were operating independently.
Mergers and joint ventures are viable options when firms wish to pool resources or leverage capabilities for a common goal. This is evident in the telecommunications industry, where AT&T and Time Warner merged to create a global media and entertainment conglomerate.
Mergers and joint ventures provide an opportunity for companies to increase their market share, expand their product range, or enhance their technological capabilities.
The strategic benefit of this approach is that the company gets to enjoy shared expenses and a broad customer base. It can also lead to economies of scale and better bargaining power with suppliers.
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Ma'am Jo's Native Lechon plans to have a Whole Lechon package for December. The Total start -up costs are Php 10,000, and the estimated costs to serve the said package is Php 5,000.00. What is the rational function A(x) given the average cost of producing x (Whole Lechon package )?
The rational function assumes that the costs are evenly distributed among the packages and do not vary with the number of packages produced.
To determine the rational function A(x) given the average cost of producing x Whole Lechon packages, we need to consider the total cost and the number of packages produced.
Let's define the average cost per package as A(x), where x represents the number of Whole Lechon packages produced.
The total cost (TC) can be calculated as the sum of the start-up costs and the costs to serve the packages:
TC = Start-up costs + Costs to serve packages
TC = Php 10,000 + Php 5,000
TC = Php 15,000
The average cost per package (A(x)) can be calculated by dividing the total cost by the number of packages produced (x):
A(x) = TC / x
A(x) = Php 15,000 / x
Therefore, the rational function A(x) representing the average cost of producing x Whole Lechon packages is:
A(x) = 15,000 / x
The rational function assumes that the costs are evenly distributed among the packages and do not vary with the number of packages produced.
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Check my work A company purchases a 6,072-square-foot commercial building for $405,000 and spends an additional $92,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 792 square feet, will be rented for $2.50 per square foot. Unit B contains 5,280 square feet and will be rented for $1.50 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation? Market Value Percent of Market Value Joint Cost Apportioned Cost Numerator Denominator % of Mkt Value Unit A Unit B Totals es
Using the value basis of allocation, approximately $33,333.33 should be assigned to Unit B out of the joint cost of $50,000.
The value basis of allocation assigns the joint cost based on the relative value or worth of each unit. In this case, Unit A is rented for $1.00 per square foot and has an area of 3,340 square feet, resulting in a value of $3,340 for Unit A. Similarly, Unit B is rented for $0.75 per square foot and has an area of 6,680 square feet, giving it a value of $5,010 for Unit B.
To determine the allocation of the joint cost, we calculate the ratio of the value of each unit to the total value of both units. The total value of both units is $3,340 + $5,010 = $8,350. The ratio for Unit B is $5,010 / $8,350 ≈ 0.5993.
Finally, we apply this ratio to the joint cost of $50,000 to determine the allocation for Unit B. Multiplying $50,000 by 0.5993 gives us approximately $29,965. Subtracting this amount from the total joint cost, we get $50,000 - $29,965 ≈ $20,035 allocated to Unit A. Therefore, using the value basis of allocation, approximately $33,333.33 should be assigned to Unit B out of the joint cost of $50,000.
A company purchases a 10,020-square-foot commercial building for $325,000 and spends an additional $50,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 3,340 square feet, will be rented for $1.00 per square foot. Unit B contains 6,680 square feet and will be rented for $0.75 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation?
Unit A: $150,000
Unit B: $225,000.
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Describe the main differences between quantitative and
qualitative research. (30 marks)
Quantitative and qualitative research differ in terms of their approach to data collection, analysis, and the nature of the data itself.
In quantitative research, data is collected through structured methods such as surveys or experiments, and statistical techniques are used to analyze the data and draw objective conclusions. The emphasis is on numerical measurements and patterns that can be generalized to a larger population. In contrast, qualitative research involves collecting data through methods like interviews, observations, or document analysis, often generating rich descriptions and narratives. Researchers seek to understand the meanings, perspectives, and contexts associated with the data, identifying themes and patterns through thematic analysis.
Quantitative research focuses on numerical data, statistical analysis, and generalization, while qualitative research delves into subjective experiences, rich descriptions, and in-depth understanding. The choice between these approaches depends on the research questions and objectives, with each providing valuable insights in different contexts.
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The cross-price elasticity between two products is estimated to be -0.9. This tells us the two products are: Group of answer choices
inferior goods
normal goods
complements
substitutes
Giffen goods
The cross-price elasticity between two products being estimated as -0.9 indicates that the two products are substitutes. Option D is correct answer.
Cross-price elasticity measures the responsiveness of the quantity demanded of one product to changes in the price of another product. A negative cross-price elasticity indicates that the two products are substitutes, meaning that an increase in the price of one product leads to an increase in the demand for the other product.
In this case, the cross-price elasticity of -0.9 suggests that a 1% increase in the price of one product leads to a 0.9% decrease in the quantity demanded of the other product. This negative relationship indicates that the two products are substitutes, as consumers tend to switch from one product to the other when there is a price change.
It is important to note that this information does not provide insights into whether the products are normal goods (demand increases as income increases) or inferior goods (demand decreases as income increases). The cross-price elasticity only signifies that the two products are substitutes, implying a close relationship in consumer preferences and demand patterns.
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The complete question is
The cross-price elasticity between two products is estimated to be -0.9. This tells us the two products are: Group of answer choices
A. inferior goods
B. normal goods
C. complements
D. substitutes
E. Giffen goods
The original sale of the $50 par value common shares of Shamrock Company was recorded as follows:
Cash 266,800
Common Stock 230,000
Paid-in Capital in Excess of Par 36,800
Transactions:
(a) Bought 400 shares of common stock as treasury shares at $62.
(b) Sold 100 shares of treasury stock at $60.
(c) Sold 60 treasury shares at $67.
After recording these transactions, the balances in the treasury stock and related accounts will be adjusted accordingly.
To record the transactions related to the treasury stock, we need to update the respective accounts. Here's the journal entry for each transaction:
(a) Bought 400 shares of common stock as treasury shares at $62:
Treasury Stock (400 shares * $62) 24,800
Cash 24,800
(b) Sold 100 shares of treasury stock at $60:
Cash 6,000
Treasury Stock (100 shares * cost) 6,200
Paid-in Capital from Treasury Stock 200
(c) Sold 60 treasury shares at $67:
Cash 4,020
Treasury Stock (60 shares * cost) 3,720
Paid-in Capital from Treasury Stock 300
After recording these transactions, the balances in the treasury stock and related accounts will be adjusted accordingly.
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During 2020, there have been an increasing number of collaborations between multinational pharmaceutical industry, national governments, universities and biotechnology companies in the search for a COVID-19 vaccine. By June 2020, tens of billions of dollars had been invested to develop dozens of vaccine candidates and prepare for global vaccination programs. However, collaborations between different actors, with different strategic imperatives, may be challenging. In your assignment, you should look in detail at AstraZeneca’s decision to enter into this race to the creation of a working COVID-19 vaccine. There are two main related questions you should focus on:
1- Is going into the production of a COVID-19 vaccine a good strategy?
2- Is the partnership with Oxford University a wise move?
In 2020, multinational pharmaceutical industry, national governments, universities, and biotechnology companies have collaborated to find a COVID-19 vaccine. Billions of dollars were invested to prepare for global vaccination programs. In this context, AstraZeneca entered the competition to develop a working COVID-19 vaccine.
The decision of AstraZeneca to enter into the production of a COVID-19 vaccine was a good strategy.The partnerships with universities in biotechnology is a wise move by AstraZeneca. Here's why:
1. Going into the production of a COVID-19 vaccine is a good strategy for AstraZeneca. It is a good strategy because it aligns with the company's existing capabilities and strategic objectives. The company has a long-standing commitment to research and development, which makes them one of the best companies to partner with universities to develop a COVID-19 vaccine. Additionally, AstraZeneca's decision to invest in COVID-19 vaccine research shows that the company is willing to take risks to tackle the challenges of this pandemic.
2. The partnership with Oxford University is a wise move by AstraZeneca. The partnership is a wise move because Oxford University is one of the best universities for biotechnology research. The university has a long-standing reputation for innovation and excellence in research, and it is known for its expertise in biotechnology. Additionally, the partnership with Oxford University gives AstraZeneca access to the university's research and development capabilities, which helps the company in the development of the COVID-19 vaccine. Furthermore, the partnership with Oxford University allows AstraZeneca to benefit from the university's expertise in clinical trials, which is crucial for the development of a COVID-19 vaccine.
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Chiltern Farms
"[T]he beautiful valley of Vyeboom nestled between the majestic Franschhoek Mountains and the
Theewaterskloof Dam is the home of Chiltern Farms, who since their establishment in 1954 have
been growing and packing fruit for the local and international market. From humble beginnings
over six decades ago the "Chiltern family" has grown the enterprise to a world class growing and
packing facility providing produce to the local and international market. This family run business,
which packed is first harvest of 50 boxes of apples in 1954, now packs 1.5 million cartons of pome
fruit (i.e., pears, nashi, quince) and 3000 tons of blueberries annually.
Ably run by a board of directors, headed by members of the Mudge family, strong executive
(EXCO) and skilled support teams the "Chiltern Family" along with their industry partners
Fruitways and Berryworld SA work together to grow, pack and distribute quality produce to clients
all over the world, and uphold the vision of Chiltern – an innovative agri-business striving to create
an extraordinary future.The packhouses, pome and berry, pack not only their own fruit, but also the produce of 17 other farmers from the surrounding area. The company’s mission statement "doing what’s right for the fruit and what’s right for the grower" ensures that the best value is extracted from each bin of fruit.
"The use of supply chain management has become an absolute necessity for companies. It can in fact be classed as a raison d’être for any organisation that is part of a supply chain. To overlook it is a risk that no company is willing to take."
1. In what ways could transport pooling benefit a business such as Chiltern farms? Use practical at least 2 examples to substantiate you.
Transport pooling could benefit a business like Chiltern Farms in several ways.
Two practical examples are discussed below:
Lower transportation costs: One of the most significant advantages of transport pooling is cost savings. When multiple companies join forces and pool their transportation resources, they can lower transportation costs. Chiltern Farms can save costs because they share transportation with other growers and producers in the area.
By combining the shipments of various customers, transportation pooling reduces shipping costs, such as fuel, vehicle wear and tear, and driver compensation.
For example, it helps Chiltern Farms to make fewer truck runs and save on costs.
Faster and more reliable transportation: When transport resources are pooled, transportation times may be reduced, particularly for businesses located in remote areas. This is because the company can arrange for just one large transport to visit several locations at once, with goods from different companies, rather than having several smaller transport trips over a longer time frame.
This would save time, reduce delays, and offer a more reliable service. This would also help ensure that the produce reaches its intended destination fresh, and on time. In conclusion, Transport pooling is an effective method for Chiltern Farms to reduce their transportation costs and delivery time.
It also allows for efficient use of resources by sharing transport with other businesses in the area.
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You purchase a new home for $250,000. If you make a 11% down payment, what will your monthly payment be assuming a loan term of 10 years and a rate of 7% ? (Enter the absolute value of your response to 2 decimal places ex: 123.45 NOT - 123.45)
The loan amount after the 11% down payment is $222,500. With a 10-year term and 7% interest rate, the monthly payment is approximately $2,559.63.
To calculate the monthly payment on a loan, we need to consider the loan amount, interest rate, and loan term. In this case, the home purchase price is $250,000, and the down payment is 11% of that amount, which is $27,500. Therefore, the loan amount is $250,000 - $27,500 = $222,500.
Next, we need to determine the monthly interest rate. The annual interest rate is 7%, so the monthly interest rate would be 7% divided by 12 (months), which is 0.5833%.
To calculate the monthly payment, we can use the formula for a fixed-rate mortgage:
M = [tex]P * (r * (1 + r)^n) / ((1 + r)^n - 1)[/tex]
Where:
M = Monthly payment
P = Loan amount
r = Monthly interest rate
n = Total number of payments (loan term in months)
Plugging in the values:
M = $222,500 * (0.5833% * (1 + 0.5833%)^(1012)) / ((1 + 0.5833%)^(1012) - 1)
Using a financial calculator or spreadsheet software, we can calculate the value of M to be approximately $2,559.63. Therefore, the monthly payment would be $2,559.63 (rounded to the nearest cent).
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both a demand curve and a demand schedule show how
Both a demand curve and a demand schedule are tools used to illustrate the relationship between price and quantity demanded in the market. They provide insights into consumer behavior and help determine the demand for a product or service.
A demand curve and a demand schedule are two common ways to represent the relationship between price and quantity demanded for a particular good or service. Both tools are used in economics to study consumer behavior and market demand.
A demand schedule presents a table or list that shows different price levels and the corresponding quantity demanded at each price. It provides a numerical representation of the relationship between price and quantity demanded.
On the other hand, a demand curve is a graphical representation of the same information. It plots the price on the vertical axis and the quantity demanded on the horizontal axis. The curve typically slopes downward from left to right, indicating the inverse relationship between price and quantity demanded.
Both the demand curve and demand schedule serve as visual representations of how consumers respond to changes in price. They help economists and businesses understand the price elasticity of demand and make informed decisions about pricing, production levels, and market strategies.
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