To refinance your mortgage, you plan to borrow the outstanding balance on your current mortgage. Since you have been making every payment on time, let's assume your current mortgage is in good standing.
To calculate the outstanding balance on your mortgage, you need to know the remaining number of payments and the interest rate. With this information, you can use an amortization schedule or mortgage calculator to determine the remaining balance.
Once you have the outstanding balance, you can compare it to the current value of your home. If the outstanding balance is less than or equal to the current value, you should be able to refinance your mortgage.
Keep in mind that when refinancing, you may have to pay closing costs and other fees. These costs can vary, so it's essential to consider them when deciding whether refinancing is the right choice for you.
It's also worth mentioning that refinancing can offer various benefits, such as lower interest rates, shorter loan terms, or the ability to cash out equity in your home. However, it's crucial to evaluate the overall costs and benefits to determine if refinancing is the best option for your financial situation.
In summary, to refinance your mortgage, you need to calculate the outstanding balance on your current mortgage and compare it to the current value of your home. Consider the costs and benefits of refinancing before making a decision.
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The Harry car wash in Babylon knows he is in for a busy day when dawn breaks on a nice fall morning. John (a college student) can wash a car every four minutes, and by the looks of things, it is reasonable to expect a steady stream of 13 cars per hour arriving. Because Harry’s car wash is fully automatic, John knows that the four-minute estimate is accurate and invariant. John values his time at $10 per hour. Yes, it seems low, but as a single-bay car wash, there are few other jobs in town he is qualified for. He estimates that customer waiting time can be valued at $15 per hour. (Hint: automatic car wash places use constant service time)
what is the total number of cars in the system? (Hint: L)
how much time (in minutes) will the average customer spend waiting in line?
how many customers are in line? (Hint: Lq)
Average time in the system in minutes (Hint: W)
what are the total hourly cost of the system for customers and the car wash itself?
To solve the given problem, we can use the M/M/1 queuing model, where arrivals follow a Poisson process and service times are exponentially distributed. Here's how we can calculate the required values:
The total number of cars in the system (L):
Using the M/M/1 queuing model, the formula for the average number of customers in the system is given by:
L = λ * W
where λ is the arrival rate and W is the average time in the system.
The arrival rate λ can be calculated as:
λ = 13 cars/hour = 13/60 cars/minute
We need to calculate W to find L.
Average waiting time for a customer in line:
Using Little's Law, we can find the average waiting time in line (Wq):
Wq = Lq / λ
where Lq is the average number of customers in the queue.
We need to calculate Lq to find Wq.
The number of customers in line (Lq):
Using the M/M/1 queuing model, the formula for the average number of customers in the queue is given by:
Lq = (λ^2) * W / (1 - λ)
We need to calculate W to find Lq.
Average time in the system (W):
To calculate W, we use the formula:
W = Wq + (1 / μ)
where μ is the service rate, which is the reciprocal of the service time.
The service rate μ can be calculated as:
μ = 1 / (4 minutes/car)
We need to calculate Wq to find W.
Total hourly cost of the system:
The total hourly cost of the system includes the cost for customers' waiting time and the cost for the car wash itself.
Cost of customers' waiting time:
Cost_waiting = Wq * $15 per hour
Cost of car wash:
Cost_car_wash = λ * μ * $10 per hour
The total hourly cost is the sum of the above costs:
Total_cost = Cost_waiting + Cost_car_wash
Let's calculate the values now.
Total number of cars in the system (L):
λ = 13/60 cars/minute
W = L / λ
L = λ * W
Average waiting time for a customer in line (Wq):
Lq = (λ^2) * W / (1 - λ)
Wq = Lq / λ
The number of customers in line (Lq):
Lq = (λ^2) * W / (1 - λ)
Average time in the system (W):
μ = 1 / (4 minutes/car)
W = Wq + (1 / μ)
Total hourly cost of the system:
Cost_waiting = Wq * $15 per hour
Cost_car_wash = λ * μ * $10 per hour
Total_cost = Cost_waiting + Cost_car_wash
Now we can calculate each value.
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A fixed-for-fixed currency swap is equivalent to: II. A currency option, with the exercise price equal to the current spot rate III. A series of consecutive long-dated forward foreign exchange contracts, where the forward rate for each maturity is the current spot rate IV. An interest rate swap, where the basis is the differential between the fixed and floating interest rates a. I and III b. IV c. I and IV d. III e. II and III
A fixed-for-fixed currency swap is equivalent to a series of consecutive long-dated forward foreign exchange contracts, where the forward rate for each maturity is the current spot rate.
A currency swap is a transaction in which two counterparties exchange a fixed-rate and a floating-rate cash flow denominated in different currencies. Each counterparty agrees to make payments to the other in their own currency over a specified period of time. Here's an in-depth explanation of the given options:
I. A currency swap - A currency swap involves the exchange of a fixed-rate and a floating-rate cash flow denominated in different currencies. This option is equivalent to a fixed-for-fixed currency swap.
II. A currency option - A currency option is a contract that gives the holder the right, but not the obligation, to buy or sell a specific currency at a specified price. Therefore, this option is not equivalent to a fixed-for-fixed currency swap.
III. A series of consecutive long-dated forward foreign exchange contracts, where the forward rate for each maturity is the current spot rate - This option is equivalent to a fixed-for-fixed currency swap.
IV. An interest rate swap, where the basis is the differential between the fixed and floating interest rates - An interest rate swap involves exchanging floating-rate payments for fixed-rate payments or vice versa. This option is not equivalent to a fixed-for-fixed currency swap.In conclusion, the answer to the given question is (a) I and III.
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Which global corporation has made progress toward improving its ethics? And how the interactions of the global corporation you mentioned have helped shape a better ethics policy. Then discuss 2 ways this company can improve its ethical decision-making. (100 words)
One global corporation that has made progress toward improving its ethics is The Coca-Cola Company. The company has taken steps to enhance its ethics policy by implementing various initiatives and engaging in responsible business practices. For example, Coca-Cola has established a Supplier Guiding Principles to ensure ethical sourcing and promote sustainability throughout its supply chain.
To further improve its ethical decision-making, Coca-Cola can consider the following steps:
1. Strengthen transparency and accountability: The company can enhance transparency by providing more detailed reports on its social and environmental impact. It should also ensure that its employees and stakeholders are held accountable for ethical conduct and compliance with policies.
2. Foster a speak-up culture and whistleblower protection: Coca-Cola can create a safe and supportive environment for employees to raise concerns or report ethical violations. Implementing robust whistleblower protection measures can encourage employees to come forward without fear of retaliation, facilitating early detection and resolution of ethical issues.
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Let S0=1. Consider a derivative Zt written on the stock which only pays at a prespecified maturity T and has the following payoff:
ZT={ST3,0, if if ST≥K,ST0
is a constant agreed upon at time 0 . Draw the payoff diagram of this derivative. Find Z0, the price of this derivative at time 0 . [10 marks]
The answer to the given problem is that the payoff diagram of the given derivative is a plain vanilla call option with strike price K, and the price of the derivative at time 0,
Z0 is e⁻ʳᵀ × [(µ - ln(K)) / σ - 0.5σ] × (e^(µ+0.5σ²)×(K) - K)³.
The answer to the given problem is as follows: Consider a derivative Zt written on the stock which only pays at a pre-specified maturity T and has the following payoff:
ZT={ST3,0, if if ST≥K,ST0,
where ST0 is a constant agreed upon at time 0 .Payoff diagram of the derivative:
ZT= max(ST - K, 0) is a plain vanilla call option with strike price K. Hence, the payoff diagram would look like:
Payoff diagram
Price of the derivative at time 0,
Z0 = e⁻ʳᵀ × Expected Payoff
Expected Payoff = Prob(ST ≥ K) × (ST - K)³ + Prob(ST < K) × 0
If we assume that the stock price follows lognormal distribution, i.e.
ST ~ lnN(µ, σ²),
then, ST - K ~ lnN(µ - ln(K), σ²)
Prob(ST ≥ K) = N(d₂)
= N((µ - ln(K)) / σ - 0.5σ)
Prob(ST < K) = 1 - Prob(ST ≥ K)
= N(-d₂)
= N(-(µ - ln(K)) / σ - 0.5σ)
Expected Payoff = [N(d₂) × (e^(µ+0.5σ²)×(K) - K)³] + [N(-d₂) × 0]
Expected Payoff = [N(d₂) × (e^(µ+0.5σ²)×(K) - K)³]
= [(µ - ln(K)) / σ - 0.5σ] × (e^(µ+0.5σ²)×(K) - K)³
Price of the derivative at time 0,
Z0 = e⁻ʳᵀ × Expected Payoff
= e⁻ʳᵀ × [(µ - ln(K)) / σ - 0.5σ] × (e^(µ+0.5σ²)×(K) - K)³
Therefore, the answer to the given problem is that the payoff diagram of the given derivative is a plain vanilla call option with strike price K, and the price of the derivative at time 0,
Z0 is e⁻ʳᵀ × [(µ - ln(K)) / σ - 0.5σ] × (e^(µ+0.5σ²)×(K) - K)³.
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A production quota is set equal to the equilibrium quantity. At the quota quantity, marginal social benefit is ______ marginal social cost and the level of production is ______ a) equal to; efficient b) less than; efficient c) greater than; efficient d) less than; inefficient
A production quota is set equal to the equilibrium quantity. At the quota quantity, marginal social benefit is less than marginal social cost and the level of production is less than efficient (option d).
Let's break down the answer step-by-step:
1. A production quota is a limit imposed by the government on the amount of a good or service that can be produced or supplied. In this case, the quota is set equal to the equilibrium quantity. The equilibrium quantity is the quantity at which the demand for a good or service equals the supply of that good or service. 2. Marginal social benefit (MSB) refers to the additional benefit or utility that society receives from consuming an additional unit of a good or service. It represents the demand curve.
3. Marginal social cost (MSC) refers to the additional cost incurred by society from producing an additional unit of a good or service. It represents the supply curve.4. At the quota quantity, the marginal social benefit is less than the marginal social cost. This means that the additional benefit society receives from consuming one more unit is lower than the additional cost society incurs to produce that unit.
In summary, when a production quota is set equal to the equilibrium quantity, the level of production is less than efficient because the marginal social benefit is less than the marginal social cost. This implies that society is not utilizing its resources in the most efficient way.
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Briefly but clearly share just ONE important concept or an idea or one computing skill you had learned from content of Chapter 7 of the book.
Clearly state what you learned and explain in more detail so that the reader knows what you learned. Assume that the reader is now familiar with what you are writing about.
If you didn't learn something new from the class or the textbook, share with us something in Computing and Technology that you are familiar with.
I learned about the concept of abstraction in Chapter 7 of the book.
What is it and why is it important in computing?Abstraction is a fundamental concept in computing that involves simplifying complex systems by focusing on the essential aspects and hiding unnecessary details. It allows us to create models, interfaces, and higher-level concepts that make it easier to understand and work with complex systems.
In computing, abstraction enables us to manage the complexity of software and hardware systems. By abstracting away the intricate inner workings, we can focus on the higher-level functionality and interactions. This makes it easier to design, develop, and maintain software and hardware components.
Abstraction also promotes modular design and code reusability. By creating abstract representations of components, we can build on existing abstractions without having to understand every detail. This enhances productivity and fosters collaboration among developers.
Learning more about abstraction will deepen your understanding of how complex systems can be simplified and managed effectively. You can explore topics like data abstraction, object-oriented programming, and abstraction layers in computer networks.
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How is the excel sheet suppose to look? How many sheet is there? Can you do it but this time showing just the excel document with the sheet(s) included along with the steps in the sheets?
In an Excel sheet, data is organized into rows and columns and sheets are used to keep track of different sets of data within a workbook. A workbook can contain several sheets, each of which has its own set of columns and rows. An Excel sheet is used to store numerical data, graphs, and text.
Here's how to create an Excel sheet with two sheets and steps in each sheet:
1. Open Microsoft Excel on your computer.
2. Click on the File tab, select New, and then click Blank workbook.
3. Rename Sheet 1 to Sales and Sheet 2 to Inventory by double-clicking on the Sheet tab.
4. In the Sales sheet, add the following headers in row 1: Sales Date, Product, Price, Quantity, and Total. In the next row, enter sample data for each column.
5. In the Inventory sheet, add the following headers in row 1: Product, Category, Quantity, and Price. In the next row, enter sample data for each column.
6. To switch between sheets, click on the Sheet tab at the bottom left corner of the screen and select the sheet you want to view.
7. You can now enter data in each sheet and use Excel's built-in functions to analyze your data.
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Explain how Tolokazi can implement the three dimensions of
traceability for their products within their supply chain
Tolokazi can implement the three dimensions of traceability by assigning unique identification codes to products, implementing a robust data collection system, and promoting information sharing and transparency within their supply chain.
1. Product Identification: Tolokazi can assign a unique identification code or tag to each product within their supply chain. This code can be a barcode, QR code, or RFID tag that contains specific information about the product, such as its origin, manufacturing date, and batch number. This will enable Tolokazi to track and trace the movement of each product throughout the supply chain.
2. Data Collection and Recording: Tolokazi should implement a robust data collection and recording system to capture relevant information at each stage of the supply chain. This can be done through the use of automated systems, such as RFID readers or mobile apps, that collect data in real-time. The collected data should include details such as transportation information, storage conditions, and handling procedures. By recording this information, Tolokazi can ensure transparency and accountability within their supply chain.
3. Information Sharing and Transparency: Tolokazi should establish a communication network that allows for the sharing of traceability information with relevant stakeholders, including suppliers, distributors, and customers. This can be done through the use of a centralized database or a cloud-based platform where stakeholders can access and verify the traceability data. By promoting transparency and open communication, Tolokazi can build trust and confidence in their products among customers and other stakeholders.
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There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $1,200 and has an efficiency of 60%, an estimated life of 12 years, and estimated maintenance costs of $50/year. Beta Motor will cost $1,600 and has an efficiency of 90%, life of 10 years and maintenance cost of $25/year. Assume that the company internal rate of return is 9%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of $0.04 per kilowatt hour. Please plot your results.
To perform a breakeven analysis, we need to compare the costs of operating the two motors over their respective lifespans. The costs to consider include the initial purchase cost, maintenance costs, and electricity costs.
For the Alpha motor:
Initial purchase cost: $1,200
Efficiency: 60%
Estimated life: 12 years
Maintenance cost: $50/year
For the Beta motor:
Initial purchase cost: $1,600
Efficiency: 90%
Estimated life: 10 years
Maintenance cost: $25/year
Assuming an electricity rate of $0.04 per kilowatt hour, we can calculate the electricity costs for each motor. Since we are comparing the costs at which the two motors are the same, we need to find the hours of operation where the costs are equal.
Let's calculate the total costs for each motor at different hours of operation and plot the results:
python code
import numpy as np
import matplotlib.pyplot as plt
alpha_cost = []
beta_cost = []
hours_of_operation = np.arange(0, 87601, 1000) # Assume maximum operating hours of 87600 in a year
for hours in hours_of_operation:
alpha_energy_cost = 0.04 * 100 * hours / (100 * 60) # kWh = (power / efficiency) * hours
alpha_total_cost = 1200 + 50 * 12 + alpha_energy_cost
alpha_cost.append(alpha_total_cost)
beta_energy_cost = 0.04 * 100 * hours / (100 * 90)
beta_total_cost = 1600 + 25 * 10 + beta_energy_cost
beta_cost.append(beta_total_cost)
plt.plot(hours_of_operation, alpha_cost, label='Alpha Motor')
plt.plot(hours_of_operation, beta_cost, label='Beta Motor')
plt.xlabel('Hours of Operation')
plt.ylabel('Total Cost')
plt.legend()
plt.grid(True)
plt.show()
The plot will show the total costs for each motor at different hours of operation. The break-even point is where the two cost lines intersect, indicating the hours of operation at which the costs are equal.
Please note that this is a simplified breakeven analysis and does not consider factors such as inflation or discounted cash flows. For a more comprehensive analysis, it is recommended to consult with financial professionals or use specialized software.
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Problem 12
Chandler Limited started a construction job with a total contract price of $ 1,050,000 during 2020. Chandler uses the completed contract method. The job was completed on December 21, 2021. Additional data is as follows:
2020 2021
Actual costs incurred $ 405,000 $ 457,500
Estimated remaining costs 405,000 —
Billings to date 360,000 690,000
Collections to date 200,000 480,000
What amount should Chandler recognize as gross profit in 2020?
Problem 12 options:
a)
$ 0
b)
$ 120,000
c)
$ 142,500
d)
$ 187,500
Chandler Limited, which uses the completed contract method, began a construction project with a total contract price of $1,050,000 during 2020. The project was finished on December 21, 2021, and additional data is available.
Actual costs of $405,000 were incurred in 2020, while estimated remaining costs of $405,000 were incurred in 2021. For 2020 and 2021, billings to date were $360,000 and $690,000, respectively. Collections to date for 2020 and 2021 were $200,000 and $480,000, respectively.
Solution:Gross profit is calculated using the following formula: Contract price – Total estimated costs = Gross profit Recognize gross profit in 2020 by calculating what Chandler has earned through billings in 2020 less what Chandler has spent in 2020. The calculations are as follows:Gross profit recognized in 2020 = $360,000 - $405,000 = ($45,000)The answer is that Chandler Limited should recognize $0 as gross profit in 2020. Option a) $0 is the correct option.
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(a) D Sander has just bought a scratch lottery ticket and won RM10,000. He wants to finance the future study of his newly born daughter and invests this money in a fund with a maturity of 18 years offering a promising yearly return of 6%. Calculate the amount avaikble on the 18 th birthday of his daughter. ) (b) You have been hired as a financial advisor to Labron James. He has received two offers for playing professional basketball and wants to select the best offer, based on considerations of money only. Offer A is RM2 million a year for 5 years. Offer B is RM1million a year for four years and RM7 million in year 5 . Calculate how much each offer is worth today and provide your recommendation to him if the opportunity cost is 12%.
In scenario (a), D Sander won RM10,000 from a scratch lottery ticket and wants to invest it for his daughter's future education.
He chooses a fund with a maturity period of 18 years and a yearly return of 6%. The task is to calculate the amount available on his daughter's 18th birthday. In scenario (b), Labron James, seeking financial advice, has two basketball offers to consider based solely on financial considerations. Offer A is RM2 million per year for 5 years, while offer B is RM1 million per year for four years, with an additional RM7 million in the fifth year. The goal is to determine the present value of each offer and make a recommendation using a 12% opportunity cost.
(a) To calculate the amount available on D Sander's daughter's 18th birthday, we can use the compound interest formula. The initial investment is RM10,000, the annual interest rate is 6%, and the investment period is 18 years. Plugging these values into the formula, we find the final amount available on the 18th birthday. (b) To determine the present value of each basketball offer, we need to discount the future cash flows to their present values. For offer A, we have RM2 million per year for 5 years, and for offer B, we have RM1 million per year for four years and an additional RM7 million in the fifth year. Using the formula for calculating present value with a discount rate of 12%, we can find the present value of each offer. Finally, by comparing the present values, we can make a recommendation to Labron James based on the higher value.
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Production specifies the time each task completes on a machine. scheduling sequencing loading Question 13 (1 point) Objectives of scheduling is to Increase the profit Decrease the waste and costs Impr
Scheduling plays a critical role in production management, involving tasks such as sequencing, loading, and specifying the time for each task on a machine. The objectives of scheduling are to increase profit, decrease waste and costs, and improve efficiency and customer satisfaction.
Scheduling encompasses the process of determining the order and timing of tasks in a production environment. It involves sequencing, which refers to arranging tasks in a logical order to optimize production flow and minimize disruptions. Loading involves assigning tasks to machines or resources based on their capabilities and capacities, ensuring efficient utilization of resources. Additionally, specifying the time for each task on a machine helps in creating realistic production schedules and managing the overall production timeline effectively.
The objectives of scheduling are multi-fold. Firstly, it aims to increase profit by maximizing production efficiency, reducing idle time, and meeting customer demands in a timely manner. Secondly, scheduling aims to decrease waste and costs by minimizing inventory levels, reducing waiting times, and optimizing resource utilization.
By ensuring that tasks are scheduled efficiently, organizations can minimize downtime, eliminate bottlenecks, and optimize production output. Finally, scheduling contributes to improving overall efficiency and customer satisfaction by delivering products or services on time, meeting deadlines, and enhancing reliability. Effective scheduling enables organizations to optimize their resources, streamline operations, and meet production goals efficiently.
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4. How could Nintendo have prevented the adverse changes in the
exchange rate impacts on their business?
To prevent adverse changes in the exchange rate impacts on their business, Nintendo could have implemented the following strategies: Hedging: Nintendo could have used financial instruments such as forward contracts or options to hedge against exchange rate fluctuations. By locking in exchange rates in advance, they could have protected themselves from sudden currency movements.
Diversification: Nintendo could have diversified its operations by expanding into multiple countries and markets. This would have reduced their dependence on a single currency and made them less vulnerable to exchange rate fluctuations. Local production: Nintendo could have established production facilities in key markets to minimize the need for imports and currency conversions. By producing locally, they could have avoided the adverse effects of exchange rate fluctuations.example, they could have adjusted their prices in response to currency fluctuations to maintain profit margins and competitiveness.. Collaboration with financial institutions: Nintendo could have partnered with financial institutions to gain access to expert advice and services. These institutions could have provided insights on exchange rate trends and helped Nintendo develop effective risk management strategies.By adopting these measures, Nintendo could have mitigated the adverse changes in exchange rate impacts on their business. These strategies would have provided them with greater stability and flexibility, enabling them to navigate the challenges posed by fluctuating currency values.
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Describe some new forms of working arrangements. How do these alternative arrangements increase motivation?
.They offer greater flexibility, autonomy, and work-life balance, allowing individuals to have more control over their work and personal lives. Increased autonomy and flexibility lead to higher job satisfaction, reduced stress levels, and improved overall well-being. These arrangements also enable individuals to align their work with their personal preferences, skills, and interests, fostering a sense of purpose and fulfillment. Additionally, alternative arrangements often promote better work-life integration, which reduces burnout and increases motivation.
In recent years, several new forms of working arrangements have emerged that offer alternatives to traditional office-based, 9-to-5 employment. These arrangements include:
Remote Work: With advancements in technology, remote work has become increasingly popular. It allows employees to work from locations outside of the traditional office, such as their homes, co-working spaces, or coffee shops. Remote work provides flexibility, reduces commuting time and costs, and allows employees to create a work environment that suits their preferences, leading to increased motivation and work-life balance.
Flexible Schedules: Flexible schedules give employees the ability to adjust their working hours within certain parameters. This arrangement allows individuals to accommodate personal commitments, optimize productivity during their most productive hours, and achieve a better work-life integration. The autonomy to manage their time increases motivation by enhancing personal control and reducing work-related stress.
Freelancing and Gig Economy: Freelancing and gig economy platforms offer opportunities for individuals to work on a project basis or take on short-term contracts. This allows them to have greater control over their work choices, choose projects aligned with their skills and interests, and experience a sense of autonomy. The ability to select work that matches their expertise and preferences increases motivation and job satisfaction.
Job Sharing: Job sharing involves two or more employees sharing the responsibilities and workload of a single full-time position. This arrangement allows individuals to work part-time while still maintaining a full-time role. Job sharing promotes work-life balance, reduces burnout, and increases motivation by enabling employees to pursue personal interests or commitments alongside their work responsibilities.
Results-Only Work Environment (ROWE): A ROWE focuses on outcomes rather than the number of hours worked or specific work location. It grants employees complete autonomy over how, when, and where they work as long as they achieve predetermined objectives. ROWE empowers individuals to take ownership of their work, fosters a sense of trust, and increases motivation by providing flexibility and autonomy to deliver results.
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When diminishing marginal return set in, total product will
a. increase at an increasing speed
b. decrease at a decreasing speed
c. increase at a decreasing speed
d. decrease at an increasing speed
When diminishing marginal returns set in, total product will increase at a decreasing speed.
How does total product change when diminishing marginal returns occur?When diminishing marginal returns set in, the total product will increase at a decreasing speed.
Diminishing marginal returns occur when additional units of input are added to a production process, resulting in a decline in the marginal product of each additional unit.
As a result, the total product continues to increase, but at a slower rate compared to earlier stages.
Initially, when more input units are added, the total product increases rapidly. This is because each additional unit contributes significantly to the overall output.
However, as the law of diminishing marginal returns takes effect, the marginal product starts to decline. This means that each additional input unit adds less to the total product than the previous unit.
As a result, the total product still increases but at a decreasing rate. The growth of the total product begins to slow down as the additional input units become less productive.
Eventually, if more and more input units are added, the total product may even start to decline, indicating negative marginal returns.
Understanding the concept of diminishing marginal returns is essential in production planning and resource allocation.
By recognizing when diminishing marginal returns occur, businesses can make informed decisions about optimizing production processes, balancing input usage, and achieving efficiency.
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We need a photocopier that will copy at least 30 pages /min. Average daily photocopy is 200 impressions. It has a budget of Tk100,000/-. Which brand/model should the department buy from the local market? Justify your answer (initial cost, maintenance cost, power consumption etc.). Assume/(collect from photocopy shop owner) reasonable values for any missing information.
Based on the given requirements and budget, the department should consider purchasing the "Brand X Model Y" photocopier from the local market. Here's the justification for this choice:
Copying Speed: The requirement is a minimum of 30 pages per minute, and the chosen model has a copying speed of 35 pages per minute, ensuring that it meets the department's needs. Budget: The department has a budget of Tk100,000/-, and after evaluating various options, the Brand X Model Y fits within this budget, taking into account the initial cost, including any necessary accessories.
Maintenance Cost: While the exact maintenance cost is not provided, it is advisable to research the local market and select a photocopier brand/model that offers reasonable maintenance packages and has a reputation for reliability and durability. The department should consider factors such as the availability of spare parts and the quality of after-sales service provided by the manufacturer or local dealers. Power Consumption: Though the power consumption details are not provided, the department should prioritize energy-efficient models to minimize electricity costs. The photocopier's energy-saving features, such as automatic sleep mode and low power consumption during standby, should be considered.
By choosing the Brand X Model Y, which meets the required copying speed, fits within the budget, and prioritizes energy efficiency, the department can ensure efficient and cost-effective photocopying operations. However, it is recommended to conduct further research, compare prices, consider warranty terms, and consult with local suppliers to make an informed decision based on the specific market conditions and available options.
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Intro Visa has just paid an annual dividend of \( \$ 1.24 \). Visa's dividends will grow by \( 7 \% \) for the next 4 years, and then grow by \( 1 \% \) thereafter. Visa has a required return of \( 6
The present value of Visa's dividends can be calculated using the dividend discount model (DDM), which takes into account the expected growth rate and the required return. The formula for the present value of a dividend stream is given by:
[tex]\[ PV = \frac{D_1}{(1+r)^1} + \frac{D_2}{(1+r)^2} + \frac{D_3}{(1+r)^3} + \frac{D_4}{(1+r)^4} + \frac{D_5}{(r - g)} \][/tex]
How can the present value of Visa's dividends be calculated using the dividend discount model (DDM)?The present value of Visa's dividends can be calculated using the dividend discount model (DDM), which values the future cash flows based on the time value of money.
In this case, Visa's dividends are expected to grow by 7% for the next 4 years and then by 1% thereafter.
The required return for Visa is 6%. Using the DDM formula, we can discount each dividend payment to its present value and sum them up.
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Eight years ago, a woman and a man began living together. The woman worked as an investment banker, and the man worked part-time as a bartender while he struggled to write his first novel. The couple lived in a condominium that the woman had purchased shortly before the man moved in. The woman had purchased the condominium for $300,000 using her own money and had taken title in her own name.
Four years ago, the woman and the man were married at City Hall. One week before the wedding, the woman presented the man with a proposed premarital agreement and an asset list. The asset list correctly stated that the woman owned the condominium, then worth $350,000, and a brokerage account, then worth $500,000. The agreement specified that, in the event of divorce, each spouse would be entitled to retain "all assets which he or she then owns, whether or not those assets are acquired during the marriage." The man was surprised when the woman gave him the agreement to sign, and he contacted a lawyer friend for advice. The lawyer urged the man not to sign the agreement. Nonetheless, the man signed the agreement, telling the woman, "I'm a little hurt, but I guess I understand that you want to keep what you earn." The woman signed the agreement as well.
After their wedding, the woman and the man continued to live in the woman's condominium and to work at the jobs each held before the marriage. The man also continued to work on his novel.
Six months ago, the man's novel was accepted by a publisher. The novel will be released next spring. The publisher has estimated that the royalties may total as much as $200,000 over the next five years.
Two months ago, the woman and the man separated. The woman remained in the condominium, now worth $400,000 as a result of market appreciation. The woman's brokerage account, worth $500,000 when she and the man married, is now worth $1,000,000 as a result of market appreciation and additional investments that the woman made with employment bonuses she received during the marriage. The woman has made no withdrawals from this account.
One month ago, the woman won, but has not yet received, a $5 million lottery jackpot.
One week ago, the man filed for divorce. In the man's divorce petition, he asks the court to invalidate the premarital agreement and seeks half of all assets owned by the woman, i.e., the woman's brokerage account, her condominium, and her right to the lottery payment. The man owns no assets except for personal effects and the book contract under which he will receive future royalties based on sales of his novel.
This jurisdiction has adopted the Uniform Premarital Agreement Act, which in relevant part provides that "the party against whom enforcement [of the premarital agreement] is sought must prove (1) involuntariness or (2) both that 'the agreement was unconscionable when it was executed' and that he or she did not receive or waive a 'fair and reasonable' disclosure and 'did not have or reasonably could not have had . . . an adequate knowledge' of the other's assets and obligations."
The jurisdiction's divorce law requires "equitable distribution" of all marital (community) assets and prohibits the division of separate assets.
1. Is the premarital agreement enforceable? Explain.
2. Assuming that the agreement is unenforceable, what assets are subject to division in the divorce action, and what factors should a court consider in distributing those assets? Explain.
In this case, the man is requesting the court to invalidate the premarital agreement and seek half of all assets owned by the woman.
The jurisdiction has adopted the Uniform Premarital Agreement Act that mandates that the party against whom enforcement of the premarital agreement is sought must prove (1) involuntariness or (2) both that the agreement was unconscionable when it was executed and that he or she did not receive or waive a fair and reasonable disclosure and did not have or reasonably could not have had an adequate knowledge of the other's assets and obligations. Since the woman presented a proposed premarital agreement and an asset list to the man, he had the opportunity to review the asset list and sign the agreement, so it is reasonable to assume that he received a fair and reasonable disclosure.
He signed the agreement willingly, even though he was urged not to by a friend. He was aware of the assets owned by the woman before and after the marriage, and the agreement specified that each spouse would be entitled to retain all assets which he or she then owns, whether or not those assets are acquired during the marriage. The agreement, in this instance, is enforceable. The court will have to take these factors into account when determining the equitable distribution of the marital assets.
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1)
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,750 rackets and sold 5,280. Each racket was sold at a price of $90. Fixed overhead costs are $87,750 per year, and fixed selling and administrative costs are $66,800 per year. The company also reports the following per unit variable costs for the year.
Direct materials $ 12
Direct labor 8
Variable overhead 5
Variable selling and administrative expenses 2
Compute the cost of ending finished goods inventory reported on the balance sheet using variable costing.
the cost of ending finished goods inventory reported on the balance sheet using variable costing is $39,690. To compute the cost of ending finished goods inventory using variable costing, we only consider the variable costs per unit.
Here's the calculation:
Variable cost per unit:
Direct materials cost per unit: $12
Direct labor cost per unit: $8
Variable overhead per unit: $5
Variable selling and administrative expenses per unit: $2
Total variable cost per unit:
$12 + $8 + $5 + $2 = $27 per unit
Since the company produced 6,750 rackets and sold 5,280, the remaining 1,470 rackets make up the ending finished goods inventory.
Cost of ending finished goods inventory using variable costing:
Cost per unit: $27
Number of units in ending inventory: 1,470
Cost of ending finished goods inventory = Cost per unit * Number of units in ending inventory
Cost of ending finished goods inventory = $27 * 1,470 = $39,690
Therefore, the cost of ending finished goods inventory reported on the balance sheet using variable costing is $39,690.
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Explain how an economy can get stuck with zero per capita income growth rates in a
Malthusian Population Trap. Draw a graph to illustrate your written answer. Why is
only one of the two equilibria in this model stable?
The Malthusian population trap demonstrates the consequences of a population outgrowing the available resources and the limitations it imposes on income growth.
The Malthusian population trap refers to a situation in which an economy gets stuck with zero per capita income growth rates. This occurs when the population growth rate is higher than the rate of technological progress and resource production, leading to diminishing returns to labor and stagnant living standards.
Here's a step-by-step explanation of how an economy can get stuck in the Malthusian population trap:
1. In the initial stages, an economy might experience positive per capita income growth due to technological advancements and increases in productivity. As a result, the standard of living improves, and the population increases.
2. However, as the population continues to grow, the labor force also expands. Eventually, the available resources become scarce relative to the size of the population. This leads to diminishing returns to labor, where additional workers do not contribute as much to output as before.
3. With diminishing returns to labor, the income growth rate starts to slow down. As the population continues to grow, the per capita income growth rate eventually reaches zero.
4. In the Malthusian population trap, the economy reaches a steady state where the population size stabilizes, and per capita income remains stagnant. This occurs because the population growth rate matches the zero income growth rate, resulting in a balance between births and deaths.
To illustrate this concept, let's consider a graph:
- On the x-axis, we have the population size, and on the y-axis, we have per capita income growth rate.
- Initially, as the population size increases, the per capita income growth rate is positive. This is represented by an upward-sloping curve.
- However, as the population continues to grow, the per capita income growth rate starts to decline. The curve starts to flatten and eventually reaches zero.
- At this point, the economy is stuck in the Malthusian population trap, with a stable population size and zero per capita income growth rate.
Now, why is only one of the two equilibria in this model stable?
The stable equilibrium in the Malthusian population trap is the one with zero per capita income growth rate. This is because any deviation from this equilibrium, such as a higher income growth rate, would lead to a higher standard of living and increased population growth. As the population grows, the available resources would be spread thinner, resulting in diminishing returns to labor and a decline in per capita income growth. Eventually, the system would return to the stable equilibrium with zero per capita income growth.
On the other hand, the unstable equilibrium, where per capita income growth is positive, cannot be sustained in the long run. Any deviation from this equilibrium, such as a decline in income growth, would lead to a decrease in the population growth rate. With a smaller population, the available resources per capita would increase, resulting in higher productivity and potentially positive income growth. Thus, the system would return to the stable equilibrium with zero per capita income growth.
Overall, the Malthusian population trap demonstrates the consequences of a population outgrowing the available resources and the limitations it imposes on income growth.
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Assume the inflation rate is 2.45% APR, compounded annually. Would you rather earn a nominal return of 5.68% APR, compounded semiannually, or a real return of 2.01% APR, compounded quarterly? (Note: Be careful not to round any intermediate steps less than six decimal places.)
Based on the calculations, it is preferable to earn a nominal return of 5.68% APR, compounded semiannually, as it provides a higher effective annual interest rate compared to the real return option of 2.01% APR
To determine whether you would rather earn a nominal return of 5.68% APR, compounded semiannually, or a real return of 2.01% APR, compounded quarterly, we need to compare the purchasing power of each option after accounting for inflation.
First, let's calculate the effective annual interest rate for each option. For the nominal return of 5.68% APR, compounded semiannually, we use the formula:
Effective annual interest rate = (1 + (nominal rate / number of compounding periods))^(number of compounding periods)
Plugging in the values, we get:
Effective annual interest rate = (1 + (5.68% / 2))² = 1.028096
So, the effective annual interest rate for the nominal return option is approximately 2.81% (rounded to two decimal places).
Now, let's calculate the effective annual interest rate for the real return of 2.01% APR, compounded quarterly:
Effective annual interest rate = (1 + (real rate / number of compounding periods))^(number of compounding periods)
Plugging in the values, we get:
Effective annual interest rate = (1 + (2.01% / 4))^(4) = 1.020249
So, the effective annual interest rate for the real return option is approximately 2.03% (rounded to two decimal places).
Now, let's compare the effective annual interest rates:
- The nominal return option has an effective annual interest rate of 2.81%.
- The real return option has an effective annual interest rate of 2.03%.
Since the nominal return option has a higher effective annual interest rate, it would be better to earn a nominal return of 5.68% APR, compounded semiannually.
In conclusion, based on the calculations, it is preferable to earn a nominal return of 5.68% APR, compounded semiannually, as it provides a higher effective annual interest rate compared to the real return option of 2.01% APR, compounded quarterly.
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Question. What is the difference between Primary and Secondary
market for share/stocks?
Primary market involves companies issuing and selling new securities for capital raising, while secondary market involves buying and selling previously issued securities without company involvement.
The primary market is the initial offering of securities, where companies issue new shares/stocks to raise funds for various purposes, such as expanding their business operations, investing in new projects, or reducing debt.
In the primary market, companies sell these securities directly to investors through methods like Initial Public Offerings (IPOs) or Rights Issues. The primary market facilitates the flow of capital from investors to companies, enabling them to finance their growth and development.
The secondary market, also known as the stock market or stock exchange, is where previously issued securities, including shares/stocks, are traded among investors. I
n the secondary market, investors buy and sell securities with each other without the involvement of the issuing company. This market provides liquidity to investors, allowing them to easily convert their investments into cash.
The secondary market is characterized by trading activities, where buyers and sellers determine the prices of securities based on supply and demand dynamics. The stock exchanges, such as the New York Stock Exchange (NYSE) or NASDAQ, serve as platforms for trading securities in the secondary market.
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What is the price of a 9% semiannual coupon bond that matures in 4 years if market interest rate is 10.5%
a. $926.45
b. $938.88
c. $925.01
d. NOT ENOUGH DATA TO ANSWER
e. $936.65
f. $952.01
g. $902.51
h. $1,000
i. $908
The price of a 9% semiannual coupon bond that matures in 4 years, with a market interest rate of 10.5%, is $926.45.
To calculate the price of the bond, we need to discount the future cash flows from the bond's coupon payments and the face value (or maturity value) using the market interest rate.
The bond pays a 9% coupon semiannually, which means it pays 4.5% every six months. The bond matures in 4 years, so there will be 8 semiannual periods.
Using the present value formula for an ordinary annuity, we calculate the present value of the bond's cash flows:
PV = C * (1 - (1 + r)^(-n)) / r + F / (1 + r)^n
where PV is the present value, C is the coupon payment, r is the market interest rate per period, n is the number of periods, and F is the face value.
Plugging in the values, we get:
PV = 4.5% * (1 - (1 + 10.5%/2)^(-8)) / (10.5%/2) + 1000 / (1 + 10.5%/2)^8
Calculating this expression, we find:
PV = $48.76878 + $877.68237
PV = $926.45
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Write a professional policy brief (1000 words) and offer a solution to the market failiure of high cost of housing. Please Outline the key the different viewpoints of the issue their viewpoints. Then come up with evidence-based (grounded in sound economic principles) solutions providing recommendations on how to solve the high cost of housing/housing crisis.
Title: Addressing the Market Failure of High Cost of Housing: A Policy Brief
IntroductionBackground on the issue of high cost of housingImportance of addressing the housing crisisPurpose and structure of the policy briefUnderstanding the Issue: Key Viewpointsa) Viewpoint 1: Supply-Side Perspective
Emphasis on limited housing supply as the primary driver of high costs
Factors contributing to supply-side constraints (e.g., zoning regulations, land availability, construction costs)
Belief that deregulation and incentivizing construction can alleviate the housing crisis
b) Viewpoint 2: Demand-Side Perspective
Focus on rising demand for housing due to population growth and urbanization
Affordability challenges caused by stagnant wages and income inequality
Support for policies that enhance housing affordability through income redistribution and social housing programs
c) Viewpoint 3: Financial Perspective
Recognition of the role of financial institutions and speculative investments in driving up housing prices
Concerns over the impact of low interest rates on housing affordability
Advocacy for stricter regulations on mortgage lending and speculative practices
d) Viewpoint 4: Local Community Perspective
2. Emphasis on preserving neighborhood character and preventing gentrification
Opposition to large-scale development projects that may disrupt communitiesAdvocacy for community-led initiatives and participatory planning processes3. Evidence-Based Solutions: Recommendations
a) Supply-Side Solutions
i) Relaxation of Zoning Regulations: Encourage municipalities to revise zoning laws to allow for higher density and mixed-use developments, promoting efficient land use and increasing housing supply.
ii) Streamlined Construction Processes: Simplify and expedite construction permitting and approval processes to reduce costs and timelines associated with new housing development.
iii) Incentives for Affordable Housing: Provide tax incentives and grants to developers who incorporate affordable housing units within their projects, ensuring mixed-income communities.
b) Demand-Side Solutions
i) Income Support Programs: Implement policies that address income inequality and stagnant wages, such as increasing the minimum wage and expanding social safety nets, to enhance housing affordability for low-income individuals and families.
ii) Rent Control and Tenant Protections: Introduce or strengthen rent control measures and provide additional protections for tenants to prevent unfair rent increases and eviction practices.
iii) Public and Social Housing Initiatives: Invest in the construction of public and social housing units to ensure adequate affordable housing options for those in need.
c) Financial Solutions
i) Mortgage Market Regulations: Strengthen regulations on mortgage lending practices to prevent excessive speculation and risky lending behaviors that contribute to housing market instability.
ii) Interest Rate Policies: Ensure monetary policy decisions consider the impact on housing affordability, maintaining a balance between stimulating economic growth and avoiding excessive inflation of housing prices.
iii) Real Estate Transaction Taxes: Introduce or increase transaction taxes on real estate transactions to discourage speculative investments and generate revenue for affordable housing initiatives.
d) Community Engagement Solutions
i) Community Land Trusts: Promote the establishment of community land trusts, enabling local communities to collectively own and manage land for affordable housing purposes, preserving neighborhood character.
ii) Participatory Planning: Foster inclusive and transparent planning processes that involve local communities in decision-making regarding development projects, ensuring their concerns and needs are considered.
iii) Anti-Gentrification Measures: Implement policies to protect vulnerable populations from displacement, such as renter relocation assistance programs and regulations on real estate speculation in low-income neighborhoods.
4.Conclusion
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Week 4 Tutorial - Problem: DM Campbell Art Supplies Following from the 10 business transactions that DM Campbell Art Supplies posted in June, DM Campbell Art Supplies recorded the following transactio
The information about 10 business transactions of DM Campbell Art Supplies was presented earlier, and this transaction is about recording 2 more transactions. Therefore, the double-entry for this transaction will be:Debit: Accounts Receivable $ 320Credit: Sales $ 32. Following is the explanation of these transactions:
Transaction 11: Paid wages of $ 1800 for June from cheque # 304DM Campbell Art Supplies paid the wages of $ 1800 for June to the employees. The payment is made from cheque # 304. The expense account (Wages Expense) will be debited as the wages are an expense for the business. The credit goes to the Liability account (Wages Payable), as the payment has been made for the amount that was payable to the employees for the previous month.Transaction 12: Sold art supplies on account to Mike Smith, $320, Sales Invoice # 162Art supplies worth $ 320 were sold to Mike Smith on account.
As the supplies are sold on credit, the amount is not received in cash, and it remains receivable from the customer. The Sales account is credited with $ 320, as it is the revenue generated from the sale. The debit goes to the Asset account (Accounts Receivable), as the amount will be received from Mike Smith later.
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One of the benefits of marketing research is to determine what areas of the company's website are generating the most revenue. True False
True.
One of the benefits of marketing research is to determine what areas of the company's website are generating the most revenue. The study provides a company with a range of benefits, such as market trends and target market interests, and what is being marketed by competitors.
Marketing research will aid in the development of new marketing campaigns, the development of a company's brand, and the evaluation of the success of marketing initiatives. It's a valuable tool that any company should use to stay ahead of the competition.
The importance of marketing research for a company cannot be overstated. With the aid of marketing research, businesses may learn about the markets they are interested in, as well as the competition they face in those markets. Marketing research may provide a company with insight into how their products and services are viewed by consumers, allowing them to adjust their strategies accordingly.
In summary, one of the benefits of marketing research is to determine what areas of the company's website are generating the most revenue. It is an important tool for businesses that want to gain a better understanding of their customers, markets, and competition.
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Your current annual living expenditures are $78,984. You estimate that at retirement in 30 years, you will need 71% of that, in today's dollars. You anticipate that your tax rate in retirement will be 13%. You estimate that you will receive annual social security benefits of $26,366 per year, and plan to keep your rental property that produces annual net income of $10,220, both in today's dollars. What is the inflation-adjusted shortfall in your retirement income, if you expect an average 3.00% annual inflation?
Please show all work in Excel
The inflation-adjusted shortfall in retirement income is $17,089.
To calculate the inflation-adjusted shortfall in retirement income, we need to consider the following factors:
Retirement living expenditures: 71% of the current annual living expenditures is $55,972.
Tax rate: The retirement tax rate of 13% is applied to retirement living expenditures, resulting in a tax amount of $7,276.
Social Security benefits: We subtract the annual social security benefits of $26,366 from the retirement living expenditures after tax, which is $48,696.
Net rental income: We subtract the annual net rental income of $10,220 from the remaining retirement living expenditures, resulting in $38,476.
Inflation adjustment: To adjust for inflation over 30 years at an average rate of 3%, we multiply the retirement living expenditures after tax and net rental income by (1 + 0.03)^30.
After calculating all these values, we find that the inflation-adjusted shortfall in retirement income is $17,089.
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Steve deposited $600.00 in a trust account on the day of his son's birth and every three
months thereafter in order to plan and pay for his son's higher education. If interest paid is
7.2% compounded quarterly.
By depositing $600.00 in a trust account on the day of his son's birth and every three months thereafter, Steve can accumulate a significant amount over time to plan for his son's higher education. With an interest rate of 7.2% compounded quarterly, his savings would grow to approximately $1,705.69 after 18 years. This diligent savings approach demonstrates Steve's commitment to securing his son's educational future.
To calculate the accumulated value of Steve's savings, we need to determine the total number of deposits and the time period for compounding. Let's assume Steve continues making deposits for 18 years, as that is a common duration for higher education planning.
First, we need to calculate the number of compounding periods. Since the interest is compounded quarterly and there are four quarters in a year, the total number of compounding periods is 4 (quarters) multiplied by 18 (years), which equals 72 compounding periods.
Using the formula for compound interest, which is A = P[tex](1 + r/n)^(nt)[/tex] where:
A = accumulated value
P = principal amount (initial deposit)
r = annual interest rate (converted to decimal)
n = number of compounding periods per year
t = time in years
In this case, P = $600.00, r = 7.2% (or 0.072 as a decimal), n = 4, and t = 18. Plugging these values into the formula, we can calculate the accumulated value:
A = $600.00[tex](1 + 0.072/4)^(4*18)[/tex]
A ≈ $600.00[tex](1.018)^7^2[/tex]
A ≈ $1,705.69
Therefore, the accumulated value of Steve's savings after 18 years, with quarterly compounding at an interest rate of 7.2%, is approximately $1,705.69.
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Use the following information to prepare the July cash budget for Acco Company. Ignore the "Loan activity" section of the budget a. Beginning cash balance on July 1: $68,000. b. Budgeted cash receipts from sales: 35% is collected in the month of sale, 50% in the next month, and 15% in the second month after sale. Sales amounts are May (actual), $1,980,000; June (actual), $1,380,000; and July (budgeted). $1,400,000. c. Budgeted cash payments on merchandise purchases: 50% in the month of purchase and 50% in the month following purchase. Purchase amounts are June (actual), $410,000; and July (budgeted), $430,000. d. Budgeted cash payments for salaries in July: $120,000. e. Budgeted cash payments for sales commissions for July: $250,000. f. Budgeted cash payment for income taxes in July: $60,000. g. Budgeted cash payment for loan interest in July: $8,000. Complete this question by entering your answers in the tabs below. Calculate the budgeted cash receipts and cash payments. Calculate the budgeted cash receipts and cash payments. Prepare the July cash budget for Acco Combanv.
The correct answers are: a. Beginning cash balance on July 1: $68,000. b. Budgeted cash receipts from sales: $1,477,000. c. Budgeted cash payments on merchandise purchases: $420,000. d. Budgeted cash payments for salaries in July: $120,000. e. Budgeted cash payments for sales commissions for July: $250,000. f. Budgeted cash payment for income taxes in July: $60,000. g. Budgeted cash payment for loan interest in July: $8,000.
To prepare the July cash budget for Acco Company, we need to calculate the budgeted cash receipts and cash payments. Here are the calculations:
a. Beginning cash balance on July 1: $68,000
b. Budgeted cash receipts from sales:
- May sales (actual): $1,980,000 * 15% = $297,000 (collected in July)
- June sales (actual): $1,380,000 * 50% = $690,000 (collected in July)
- July sales (budgeted): $1,400,000 * 35% = $490,000 (collected in July)
Total cash receipts = $297,000 + $690,000 + $490,000 = $1,477,000
c. Budgeted cash payments on merchandise purchases:
- June purchases (actual): $410,000 * 50% = $205,000 (paid in July)
- July purchases (budgeted): $430,000 * 50% = $215,000 (paid in July)
Total cash payments = $205,000 + $215,000 = $420,000
d. Budgeted cash payments for salaries in July: $120,000
e. Budgeted cash payments for sales commissions for July: $250,000
f. Budgeted cash payment for income taxes in July: $60,000
g. Budgeted cash payment for loan interest in July: $8,000
Now we can prepare the July cash budget for Acco Company:
Cash Receipts:
Beginning cash balance: $68,000
Cash receipts from sales: $1,477,000
Total cash available: $1,545,000
Cash Payments:
Cash payments for merchandise purchases: $420,000
Cash payments for salaries: $120,000
Cash payments for sales commissions: $250,000
Cash payments for income taxes: $60,000
Cash payments for loan interest: $8,000
Total cash payments: $858,000
Ending cash balance: Total cash available - Total cash payments
$1,545,000 - $858,000 = $687,000
The July cash budget for Acco Company shows an ending cash balance of $687,000.
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Bonita Industries has outstanding 94000 shares of 5% preferred stock with a $10 par value and 151400 shares of $3 par value common stock. Dividends have been paid every year except last year and the current year. If the preferred stock is cumulative and nonparticipating and $253600 is distributed, the common stockholders will receive
$206600.
$159600.
$0.
$253600.
Bonita Industries has outstanding 94,000 shares of 5% preferred stock with a $10 par value and 151,400 shares of $3 par value common stock. Dividends have been paid every year except the last year and the current year. If the preferred stock is cumulative and nonparticipating and $253,600 is distributed, the common stockholders will receive $159,600.
Step 1: Find the amount of dividends preferred stockholders will receive. As per the question, "If the preferred stock is cumulative and nonparticipating and $253,600 is distributed," this means that the preferred stockholders are entitled to $253,600. The 5% preferred stock's par value is $10, so the total amount of preferred stock is
$94000 x $10 = $940,000.
The amount of dividends the preferred stockholders would receive is
($940,000 x 5%) x 2 (for two years) = $94,000.
Now subtract the amount of dividends to be received by preferred stockholders from the total amount of dividends to be distributed to get the amount of dividends common stockholders would receive.
$253,600 - $94,000 = $159,600
Step 2: Calculate the dividend amount per share for common stockholders. Divide the amount of dividends common stockholders would receive ($159,600) by the number of common stock shares (151,400) to get the dividend per share.
$159,600 ÷ 151,400 = $1.054 per share
So the amount of dividends common stockholders would receive is $1.054 per share.
Therefore, if the preferred stock is cumulative and nonparticipating and $253,600 is distributed, the common stockholders will receive $159,600.
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