Marketers can communicate best with college students by utilizing social media and other digital platforms.
Nowadays, social media has become the main tool of communication for people around the world. Therefore, it is imperative for marketers to engage with college students by leveraging social media and digital platforms. Using these tools, marketers can create unique campaigns and content that is directed towards the specific target audience that they are interested in. Additionally, marketers can keep track of the latest trends and topics that college students are talking about and integrate them into their marketing strategy. In doing so, they can increase the likelihood of the message reaching its intended audience.
College students are one of the most valuable consumer groups that businesses seek to engage with. They are a group that is known for their spending habits, interests, and behaviors. As such, marketers need to have an effective communication strategy to engage them. One of the best ways to achieve this is through social media and other digital platforms.There are several reasons why marketers should focus on social media and digital platforms to communicate with college students. First, these platforms are where college students spend most of their time.
To know more about social visit:
https://brainly.com/question/33207416
#SPJ11
Strategies for managing demand include. a. Shifting demand into other time periods with sales and promotions. b. Offering products or services with similar demand patterns. c. Using backorders and lost sales. d. All of the above
The answer to the question is "All of the above." option d.
Managing demand involves various strategies, and all of the options mentioned - shifting demand into other time periods with sales and promotions, offering products or services with similar demand patterns, and using backorders and lost sales - are viable strategies for achieving this goal.
Shifting demand into other time periods through sales and promotions involves incentivizing customers to purchase products or services during specific periods when demand is lower.
By offering discounts, limited-time offers, or other incentives, businesses can encourage customers to buy during off-peak times, effectively balancing demand throughout the year.
Offering products or services with similar demand patterns is another way to manage demand. This strategy involves diversifying the product or service offerings to include alternatives that experience peak demand at different times.
By expanding the range of offerings, businesses can cater to customers' varying needs and preferences, thereby reducing the strain on specific products or services during peak demand periods.
Using backorders and lost sales is a strategy that can be employed when demand exceeds supply.
By accepting backorders or allowing for lost sales during peak periods, businesses can manage customer expectations and allocate limited resources more effectively. This approach helps avoid overpromising on product availability and maintains a balance between supply and demand.
Overall, employing a combination of these strategies enables businesses to effectively manage demand by optimizing sales, diversifying offerings, and addressing supply constraints during peak periods.option d.
for such more questions on demand
https://brainly.com/question/18550230
#SPJ8
Solve the following problem (Follow APA format)
Consider the market for minivans. For each of the events listed here, identify THE FOLLOWING:
1. Which of the determinants of demand or supply are affected.
2. Also indicate whether demand or supply increases or decreases (for each case).
3. Draw a diagram to show the effect on the price and quantity of minivans for each case
4. Where will the new equilibrium be?
a. People decide to have more children.
b. A strike by steelworkers raises steel prices.
c. Engineers develop new automated machinery for the production of minivans.
d. The price of sports utility vehicle rises.
e. A stock - market crash lowers people's wealth.
People decide to have more children:When people decide to have more children, it increases the demand for minivans because large families may need a bigger vehicle to transport their children. Thus, the determinant of demand is affected.
a. People decide to have more children:
1. Determinants affected: Number of buyers.
2. Demand increases as more people decide to have children.
3. On the diagram, the demand curve shifts to the right, indicating an increase in both price and quantity of minivans.
4. The new equilibrium will be at a higher price and quantity.
b. A strike by steelworkers raises steel prices:
1. Determinants affected: Input prices.
2. Supply decreases as steel prices increase due to the strike.
3. On the diagram, the supply curve shifts to the left, indicating an increase in price and a decrease in quantity of minivans.
4. The new equilibrium will be at a higher price and a lower quantity.
c. Engineers develop new automated machinery for the production of minivans:
1. Determinants affected: Technology.
2. Supply increases as new machinery allows for more efficient production.
3. On the diagram, the supply curve shifts to the right, indicating a decrease in price and an increase in quantity of minivans.
4. The new equilibrium will be at a lower price and a higher quantity.
d. The price of sports utility vehicle rises:
1. Determinants affected: Related goods.
2. Demand decreases as the price of SUVs increases.
3. On the diagram, the demand curve shifts to the left, indicating a decrease in both price and quantity of minivans.
4. The new equilibrium will be at a lower price and quantity.
e. A stock-market crash lowers people's wealth:
1. Determinants affected: Buyers' income.
2. Demand decreases as people's wealth decreases due to the stock-market crash.
3. On the diagram, the demand curve shifts to the left, indicating a decrease in both price and quantity of minivans.
4. The new equilibrium will be at a lower price and quantity.
To know more about equilibrium visit:
https://brainly.com/question/30694482
#SPJ11
The assignment model is a special case of the transportation model in which the number of origin must equal the number of the destination that is the table is a square that is the number of rows and columns must be equal.
Select one:
True
False
The points on the network model are referred to as arcs.
Select one:
True
False
The statement "The assignment model is a special case of the transportation model in which the number of origin must equal the number of the destination that is the table is a square that is the number of rows and columns must be equal". The given statement is true.
The assignment problem is one of the categories of linear programming. It is a particular case of the transportation problem. The assignment model is used to assign the given tasks to the workers in a particular organization. It is used in situations where the given number of jobs needs to be assigned to an equal number of workers.
The given statement is true. Arcs are used to link the points in a network model. Arcs are a series of lines that are drawn between the different points to represent a particular path between the source and the destination.
Learn more about linear programming: https://brainly.com/question/30763902
#SPJ11
Projected career data gives information about employer _______ years into the future.
a. Salaries
b. Trends
c. Benefits
d. Opportunities
Employers also rely on this data to identify the most promising job opportunities and to develop strategies to attract and retain top talent. Therefore, projected career data is an important resource for both job seekers and employers.
Projected career data gives information about employer trends years into the future.Projected career data is an essential tool for understanding the employment opportunities available in various sectors. The information obtained from this data is helpful in making informed decisions about your career path. By analyzing the data, you can determine the fields with the most potential for growth and advancement, as well as those with the highest salaries and benefits. Employers also rely on this data to identify the most promising job opportunities and to develop strategies to attract and retain top talent. Therefore, projected career data is an important resource for both job seekers and employers.
To know more about opportunities visit:
https://brainly.com/question/14664927
#SPJ11
2. List various factors that comprise the External Environment. 3- Describe the Four primary reasons companies engage in International Business
Factors comprising the external environment include economic, socio-cultural, technological, political/legal, and environmental factors. Companies engage in international business primarily for market expansion, resource access, cost efficiency, and risk diversification.
Factors that comprise the external environment can include:
1. Economic Factors: This includes factors such as economic growth, inflation rates, interest rates, exchange rates, and market trends that impact the overall economic conditions in which a company operates.
2. Socio-Cultural Factors: These factors encompass social and cultural aspects like demographics, consumer behavior, cultural norms, values, and trends that influence consumer preferences and market demands.
3. Technological Factors: These factors refer to advancements in technology, innovation, automation, digitalization, and the impact of emerging technologies on industries and markets.
4. Political and Legal Factors: Political stability, government policies, regulations, trade agreements, taxation laws, intellectual property rights, and legal frameworks that influence business operations and trade activities.
5. Environmental Factors: This includes factors related to sustainability, environmental regulations, climate change, resource availability, and the ecological impact of business activities.
The four primary reasons companies engage in international business are:
1. Market Expansion: Companies seek international markets to expand their customer base, tap into new consumer segments, and access untapped market opportunities beyond their domestic borders.
2. Access to Resources: International business allows companies to access key resources such as raw materials, labor, technology, or expertise that may be unavailable or cost-prohibitive in their home country.
3. Cost Efficiency: Companies may engage in international business to benefit from cost advantages such as lower labor costs, favorable production conditions, or access to cheaper inputs, which can enhance their competitiveness and profitability.
4. Risk Diversification: By operating in multiple countries, companies can diversify their business risks and reduce dependence on a single market. This helps mitigate risks associated with economic fluctuations, political instability, or changes in regulations that could adversely impact their operations in one specific location.
To know more about economic,
https://brainly.com/question/14355320#
#SPJ11
Explain why people are just willing to give units of x and y away for free, if every consumer's utility function over goods x and y is given by min(x,y)
The reason people are willing to give units of x and y away for free when every consumer's utility function over goods x and y is given by min(x,y) is because of the concept of "diminishing marginal utility."
Diminishing marginal utility means that as you consume more and more of a good, the additional satisfaction or utility you derive from each additional unit decreases. In the case of the utility function min(x,y), it means that the utility a consumer gets from consuming goods x and y is determined by the smaller of the two quantities.
Now, let's consider why someone would be willing to give away units of x and y for free. Imagine there are two consumers, A and B, who each have excess units of goods x and y. Consumer A has more units of good x, while consumer B has more units of good y.
If consumer A were to give some units of x to consumer B, it would increase consumer B's utility, as the smaller of the two quantities (y) would increase.
Similarly, if consumer B were to give some units of y to consumer A, it would increase consumer A's utility, as the smaller of the two quantities (x) would increase.
By giving away units of x and y, both consumers can increase their utility, even if it means they have fewer total units of goods x and y. They are willing to do so because the additional utility gained from increasing the smaller quantity outweighs the utility lost from having fewer total units.
To know more about consumers visit :
https://brainly.com/question/33474331
#SPJ11
Does is make sense to outsource HRM to second- and third-party entities such as HR2B, Navajos and other such firms? Is HRM to be a core function of a company? Perform a financial analysis of each as partial basis for your decision.
What contexts does outsource HRM or elements of HRM make sense or not? Use examples from at least three companies to make your point and be sure to use at least three theories
Which have been covered in class to make your point.
PLEASE WRITE AN OUTLINE TO PREPARE FOR THIS PAPER AS LONG AS YOU CAN (500 WORDS)
Yes, it makes sense to outsource HRM to second and third-party entities. HRM, the Human Resource Management, is the practice of recruiting, developing, and retaining employees.
Although it's a core function of a company, outsourcing is still a good option for many organizations.
Outsourcing allows companies to focus on their core competencies and to reduce costs. HRM outsourcing provides the company with the expertise they need to effectively manage their workforce. It also allows the company to benefit from economies of scale.The financial analysis of each company will be used as a partial basis for the decision. This financial analysis will include a comparison of the costs associated with outsourcing HRM versus keeping it in-house. Outsourcing HRM can reduce costs associated with hiring, training, and maintaining HR staff. However, there may be additional costs associated with outsourcing, such as the cost of contract negotiation and the risk of losing control of HR policies and practices.
In certain contexts, outsourcing HRM or certain elements of HRM makes sense. For example, if the company is expanding its operations and needs to quickly staff up, outsourcing can be a good option. Another example is when a company needs specialized expertise that they don't have in-house. Finally, outsourcing can be a good option for companies that are looking to reduce costs while maintaining or improving their level of service.
Example 1: Coca-Cola
Coca-Cola outsources its HR services to Accenture, a global professional services firm. Coca-Cola and Accenture signed a multi-year agreement to outsource HR services, including recruitment, benefits administration, and compensation administration. By outsourcing, Coca-Cola can reduce costs associated with managing HR and can benefit from Accenture's expertise.
Example 2: IBM
IBM outsources its HR services to Aon Hewitt, a global HR consulting firm. IBM and Aon Hewitt signed a 10-year agreement to outsource HR services, including benefits administration, payroll, and compensation administration. By outsourcing, IBM can reduce costs associated with managing HR and can benefit from Aon Hewitt's expertise.
Example 3: British Airways
British Airways outsources its HR services to NorthgateArinso, a global HR consulting firm. British Airways and NorthgateArinso signed a multi-year agreement to outsource HR services, including payroll and benefits administration. By outsourcing, British Airways can reduce costs associated with managing HR and can benefit from NorthgateArinso's expertise.
To know more about HRM visit:
https://brainly.com/question/33513047
#SPJ11
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows:
June 3 Purchased goods for $7,900 from Diamond Incorporated with terms 3/10, n/30. June 5 Returned goods costing $3,000 to Diamond Incorporated for credit on account.
June 6 Purchased goods from Club Corporation for $2,900 with terms 3/10, n/30. June 11 Paid the balance owed to Diamond Incorporated.
June 22 Paid Club Corporation in full.
Prepare journal entries to record the transactions, assuming Ace records discounts using the gross method in a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1. On June 3, Ace Incorporated purchased goods for $7,900 from Diamond Incorporated with terms 3/10, n/30. This means that if Ace pays within 10 days, they can receive a 3% discount. To record this transaction, we will make the following journal entry:
Accounts Payable (Diamond Incorporated) $7,900
Inventory $7,900
2. On June 5, Ace Incorporated returned goods costing $3,000 to Diamond Incorporated for credit on account. Since Ace returned the goods, we need to reverse the previous entry. The journal entry will be:
Inventory $3,000
Accounts Payable (Diamond Incorporated) $3,000
3. On June 6, Ace Incorporated purchased goods from Club Corporation for $2,900 with terms 3/10, n/30. Again, if Ace pays within 10 days, they can receive a 3% discount. To record this transaction, we will make the following journal entry:
Accounts Payable (Club Corporation) $2,900
Inventory $2,900
4. On June 11, Ace Incorporated paid the balance owed to Diamond Incorporated. Since Ace paid within the discount period, they can take advantage of the 3% discount. To record this transaction, we will make the following journal entry:
Accounts Payable (Diamond Incorporated) $4,740 ($4,900 - $160 discount)
Cash $4,740
5. On June 22, Ace Incorporated paid Club Corporation in full. Since Ace paid within the discount period, they can take advantage of the 3% discount. To record this transaction, we will make the following journal entry:
Accounts Payable (Club Corporation) $2,821 ($2,900 - $79 discount)
Cash $2,821
These journal entries correctly record the transactions for Ace Incorporated in the month of June, considering the terms and discounts provided.
Learn more about journal entries
https://brainly.com/question/33762471
#SPJ11
Mason Milling grinds calcined alumina to a standard granular size. The mill produces two different size products from the same raw material. Regular Grind can be produced at a rate of 10,000 pounds per hour and has a demand of 400 tons per week with a price per ton of $900. Super Grind can be produced at a rate of 6,000 pounds per hour and has a demand 200 tons per week with a price of $1,900 per ton. A minimum of 700 tons has to be ground every week to make room in the raw material storage bins for previously purchased incoming raw material by rail. The mill operates 24/7 for a total of 168 hours/week. How many tons of each product must be produced each week to maximize revenue? (hint: be careful with units in this problem, ton, ton per week, ton per hour).
The mill should produce 700 tons of super grind and 0 tons of regular grind every week to maximize revenue.
The main aim of the problem is to find out the number of tons of each product that has to be produced per week to maximize revenue.
The regular grind is produced at a rate of 10,000 pounds per hour and has a demand of 400 tons per week with a price per ton of $900.The super grind is produced at a rate of 6,000 pounds per hour and has a demand of 200 tons per week with a price per ton of $1,900.To make room for the incoming raw materials, a minimum of 700 tons has to be ground every week.
According to the given conditions, we need to find out how many tons of each product should be produced per week to maximize the revenue.
Let the number of tons of regular grind be x. Let the number of tons of super grind be y.
Since a minimum of 700 tons has to be ground every week, the equation becomes:
x+y ≥ 700
The regular grind is produced at a rate of 10,000 pounds per hour and has a demand of 400 tons per week. Hence, we get:10,000x / 2,000 = 400x = 80/3 tons per hour
The super grind is produced at a rate of 6,000 pounds per hour and has a demand of 200 tons per week. Hence, we get:
6,000y / 2,000 = 200y = 100/3 tons per hour
Since the mill operates 24/7 for a total of 168 hours/week, the number of hours the mill operates to produce regular grind is given by:
80/3 * h ≤ 10,000
h ≤ 750
The number of hours the mill operates to produce super grind is given by:
100/3 * k ≤ 6,000k ≤ 1800/100 = 18
The total revenue generated can be given by:
R = 900x + 1900y
The problem is to maximize revenue. We can use linear programming to solve this problem:
Maximize R = 900x + 1900ysubject to:
x + y ≥ 70080/3x + 100/3y ≤ 168x ≤ 750y ≤ 18x ≥ 0, y ≥ 0
The feasible region is shown below:
graph{y≤-0.8x+168y≥0x≥0x+y≥700y≤18}
The vertices of the feasible region are (0, 700), (750, 0), and (522, 178).
We evaluate R at these points to see which one gives the maximum value of R.
R(0, 700) = 900(0) + 1900(700) = 1,330,000
R(750, 0) = 900(750) + 1900(0) = 675,000
R(522, 178) = 900(522) + 1900(178) = 938,800
Therefore, the maximum revenue is $1,330,000 when the mill produces 700 tons of super grind and 0 tons of regular grind.
Therefore, the mill should produce 700 tons of super grind and 0 tons of regular grind every week to maximize revenue.
To know more about maximize revenue, visit:
https://brainly.com/question/30883127
#SPJ11
- Who is known as the father of OB? - What disciplines does OB pull from? - What are the 3 levels of analysis? - What does B=f(P)(E) mean? - What is the connection between Organizational Behavior and Organizational Development? - "In OB, why is "it depends" a common response?
Who is known as the father of OB?
The Father of Organizational Behavior is Chester Bernard, who was a social scientist, administrator, and author of various management books.What disciplines does OB pull from?OB (Organizational Behavior) pulls from a variety of disciplines, including psychology, sociology, anthropology, economics, and political science, to mention a few. Furthermore, it draws on various theories and models from these fields.What are the 3 levels of analysis?OB examines behavior at three levels of analysis, which are individual, group, and organizational.What does B=f(P)(E) mean?B=f(P)(E) refers to a conceptual model developed by psychologist Kurt Lewin, which states that behavior is a function of both the individual's personality and the surrounding environment.
What is the connection between Organizational Behavior and Organizational Development?
The goal of Organizational Behavior (OB) and Organizational Development (OD) is to improve organizational effectiveness. OB focuses on understanding how individuals behave in organizations, whereas OD focuses on improving the organization's overall performance."In OB, why is "it depends" a common response?Because people are complex, and their actions can be influenced by a variety of factors. As a result, "it depends" is frequently used in OB as a common response to complex inquiries.
To know more about OB, visit:
https://brainly.com/question/30652469
#SPJ11
First Rule of Labor Markets
Section 1 introduces the First Rule of Labor Markets, which says that an employer or firm will not pay a worker more than the marginal revenue that the worker benefits. For this discussion, your task is to:
1. Read the "Clear it Up: Do Profit Maximizing Employers Exploit Labor"
2. Explain how workers and employers benefit in a voluntary labor market (a market where both sides may enter and leave at their own discretion).
3. What issues might we run into from the profit maximizing firm?
Learning Objective: 14.1.1 - Describe the demand for labor in perfectly competitive output markets
1. "Clear it Up: Do Profit Maximizing Employers Exploit Labor":The First Rule of Labor Markets introduces that a company or firm will not pay a worker more than the marginal revenue that the worker benefits.
It would seem, therefore, that a profit-maximizing company might try to pay workers as little as possible to maximize profits. However, this is not the case. The marginal revenue product of labor is equal to the marginal product of labor multiplied by the marginal revenue generated by one unit of the product. 2. How workers and employers benefit in a voluntary labor market (a market where both sides may enter and leave at their own discretion):In a voluntary labor market, both employers and employees benefit.
Workers seek to work for companies that pay the highest salaries, provide the most benefits, and have the most attractive working conditions. This voluntary labor market leads to an efficient allocation of labor resources, in which workers are matched with the most suitable employers and employers with the most productive workers.3. What issues might we run into from the profit-maximizing firm?If a profit-maximizing firm tries to pay workers less than their marginal revenue product, they will lose productive workers to other companies that pay higher salaries. This will decrease the productivity of the company, and therefore the marginal revenue generated.
To know more about Maximizing visit :
https://brainly.com/question/30072001
#SPJ11
The 120-day CNY interest rate is 2.70% p.a., and the 120-day NZD
interest rate is 1.80% p.a. According to CIP, ____________ for
delivery in 120 days.
According to CIP, the forward rate for delivery in 120 days is NZD/CNY 0.5536. CIP stands for "Covered Interest Parity" and is a concept that can be used to calculate forward exchange rates. According to CIP, the forward exchange rate should reflect the difference in interest rates between the two currencies.
Forward Rate = (Spot Rate x (1 + Home Interest Rate) / (1 + Foreign Interest Rate)) where, Spot Rate = current exchange rate Home Interest Rate = interest rate of the country where the investor is based Foreign Interest Rate = interest rate of the country where the investment is being made. To solve the problem, we need to use the above formula as follows.
Spot Rate = NZD/CNY 1Foreign Interest Rate = 2.70% p.a. (since we are dealing with the CNY interest rate)Home Interest Rate = 1.80% p.a. (since we are dealing with the NZD interest rate)Forward Rate = (NZD/CNY 1 x (1 + 0.018) / (1 + 0.027))= NZD/CNY 0.5536 Therefore, according to CIP, the forward rate for delivery in 120 days is NZD/CNY 0.5536.
To know more about Interest visit:
https://brainly.com/question/7337888
#SPJ11
Question 4 Suppose an ad-valorem tariff is imposed on imports of a certain good by a small country. a) By using a diagram, explain the partial equilibrium effects of the tariff on prices, production, demand, trade and welfare. (8 marks)
An ad-valorem tariff refers to a tax that is imposed on imported goods depending on the value of the imported product. It is typically expressed as a percentage of the value of the imported product.
Firstly, we need to understand that the partial equilibrium model is a microeconomic model that assumes the supply and demand curves in a specific market are the only determinants of the price and quantity produced and traded. Therefore, other variables such as taxes, production costs, and international trade are held constant. When an ad-valorem tariff is imposed on imported goods, it increases the price of imported products, making them relatively expensive to the domestically produced goods and services. It, therefore, leads to a decline in demand for imported goods and services while simultaneously increasing the domestic supply. As such, the demand curve will shift to the left while the supply curve will shift to the right, leading to a change in the equilibrium price and quantity. The diagram below demonstrates the effects of the tariff on the price, demand, supply, production, trade, and welfare.
The diagram above indicates that when a tariff is imposed, the domestic price will increase from Pw1 to Pw2, while the quantity produced will increase from Qw1 to Qw2. As a result, the domestic demand for imported goods will decrease from Qd1 to Qd2 while the domestic supply will increase from Qs1 to Qs2. Consequently, the excess supply will be absorbed by exports, increasing from Qe1 to Qe2, while the imports will decrease from Qm1 to Qm2. From the analysis above, it is clear that the tariff leads to an increase in the price of the imported goods, making the domestic products more competitive, leading to an increase in production and exports. This translates to an increase in the welfare of the country, as seen by the increase in producer surplus, government revenue, and consumer surplus.
In conclusion, imposing an ad-valorem tariff has partial equilibrium effects on prices, production, demand, trade, and welfare. This tax increases the price of imported products, leading to a decline in demand for imported goods and services and an increase in the domestic supply. The tariff leads to an increase in the price of the imported goods, making the domestic products more competitive, leading to an increase in production and exports, increasing the welfare of the country.
To know more about revenue visit:
brainly.com/question/4051749
#SPJ11
Q4. Unida systems has 40 million shares outstanding trading for $10 per share. In addition, Unida has $100 million in outstanding debt. Suppose Unida’s equity cost of capital is 15%, its debt cost of capital is 8%, and the corporate tax is 40%. What is Unida’s WACC?
Unida's WACC is approximately 12.96%.
To calculate Unida's Weighted Average Cost of Capital (WACC), consider the proportions of equity and debt in the company's capital structure and their respective costs.
Given:
- Number of shares outstanding (equity): 40 million
- Market price per share: $10
- Outstanding debt: $100 million
- Equity cost of capital: 15%
- Debt cost of capital: 8%
- Corporate tax rate: 40%
First, calculate the market value of equity using the number of shares outstanding and the market price per share:
Market Value of Equity = Number of Shares Outstanding × Market Price per Share
Market Value of Equity = 40 million × $10
Market Value of Equity = $400 million
Next, the market value of the company's total capital:
Market Value of Total Capital = Market Value of Equity + Outstanding Debt
Market Value of Total Capital = $400 million + $100 million
Market Value of Total Capital = $500 million
Now calculate the weights of equity and debt in the capital structure:
Weight of Equity = Market Value of Equity / Market Value of Total Capital
Weight of Equity = $400 million / $500 million
Weight of Equity = 0.8 or 80%
Weight of Debt = Outstanding Debt / Market Value of Total Capital
Weight of Debt = $100 million / $500 million
Weight of Debt = 0.2 or 20%
Next, calculate the after-tax cost of debt, taking into account the corporate tax rate:
After-Tax Cost of Debt = Debt Cost of Capital × (1 - Tax Rate)
After-Tax Cost of Debt = 8% × (1 - 0.4)
After-Tax Cost of Debt = 4.8%
Now calculate the WACC using the weighted average of the cost of equity and the after-tax cost of debt:
WACC = (Weight of Equity × Equity Cost of Capital) + (Weight of Debt × After-Tax Cost of Debt)
WACC = (0.8 × 15%) + (0.2 × 4.8%)
WACC = 12% + 0.96%
WACC = 12.96%
Learn more about WACC here:
https://brainly.com/question/33116653
#SPJ11
Jenny and Rob are married; they have one child, Rhiannon, who is 4 years old. The couple works full-time; Jenny earns $62,000 per year while Rob earns $44,000 per year. They pay Rob's mother, Aileen, $150 per week to care for Rhiannon. What statement is true? a) Only Jenny can deduct the childcare expenses from her taxable income. b) Only Rob can deduct the childcare expenses from his taxable income. c) Jenny and Rob can choose who will deduct the childcare expenses from their income. d) Neither Jenny, nor Rob, can deduct the childcare expenses because the money was paid to a non-arms' length person.
The correct statement is Neither Jenny, nor Rob, can deduct the childcare expenses because the money was paid to a non-arms' length person.(D)
In order to deduct childcare expenses from taxable income, the expenses must be paid to a licensed caregiver or a daycare facility. In this case, the money was paid to Rob's mother, Aileen, who is not considered an arms' length person.
Therefore, Jenny and Rob cannot deduct the childcare expenses from their taxable income. The fact that they both work full-time and have a child does not change the requirement for the expenses to be paid to an arms' length person for the deduction to be allowed.
To know more about taxable income click on below link:
https://brainly.com/question/33053500#
#SPJ11
Dewyco has preferred stock trading at \( \$ 50 \) per share. The next preferred dividend of \( \$ 4 \) is due in one year. What is Dewyco's cost of capital for preferred stock? The cost of capital for
"Dewyco's cost of capital for preferred stock is 8%. This means that the company needs to provide an 8% return on its preferred stock to compensate the preferred stockholders for their investment.
The cost of capital for preferred stock is the return that the company must provide to its preferred stockholders in order to compensate them for their investment. In this case, we can calculate Dewyco's cost of capital for preferred stock using the formula:
Cost of Capital for Preferred Stock = Preferred Dividend / Preferred Stock Price
To find the cost of capital for preferred stock, we need to know the preferred dividend and the preferred stock price.
Given:
Preferred Dividend = $4
Preferred Stock Price = $50
Using the formula, we can calculate the cost of capital for preferred stock:
Cost of Capital for Preferred Stock = $4 / $50
Simplifying the calculation, we have:
Cost of Capital for Preferred Stock = 0.08 or 8%
Therefore, Dewyco's cost of capital for preferred stock is 8%. This means that the company needs to provide an 8% return on its preferred stock to compensate the preferred stockholders for their investment.
To learn more about company
https://brainly.com/question/18307610
#SPJ11
planning has the potential to slow an organization's ability to adapt quickly when needed. what might organizations utilize to avoid such a situation?
Planning is an essential aspect of organizational management. Planning has the potential to slow down an organization's ability to quickly adapt to changing situations.
The organization can utilize the following things to avoid such situations:
Agility: Agility is a company's ability to rapidly adjust to changing conditions. If the company is agile, it can quickly respond to any change in the market, such as technology, consumer demand, or new rivals. In an agile company, change is viewed as an opportunity rather than a problem. Therefore, businesses need to be agile to thrive and be successful.
Regular review and evaluation of the plan: The plan is just a map of where you want to go, but things can change, and you may need to change the plan to reach your destination. As a result, the organization needs to evaluate the plan regularly to ensure that it is still relevant and provides an accurate reflection of the company's objectives and priorities. Moreover, this helps ensure that the organization is flexible enough to quickly adapt to the changing business environment.
Flexible structure: The organization should have a flexible structure that can easily adapt to changes in the business environment. A rigid organizational structure slows down decision-making processes, making it challenging to respond quickly to changes. However, a flexible organizational structure promotes agility, creativity, and innovation.
Constant communication: Communication is critical in organizations. It is essential to communicate changes to employees regularly to ensure that everyone is aware of any changes that could affect their jobs or the company's operations. Therefore, constant communication can help to keep the organization moving in the right direction.
To know more about the management, visit:
https://brainly.com/question/32226773
#SPJ11
The following is a fouryear forecast for Torino Marine. Year - Free cash flow : 2022 - 45; 2023 - 66 ; 2024 - 83 ; 2025 - 105 a. Estimate the fair market value of Torino Marine at the end of 2021, Assume that after 2025, eamings before interest and tax will remain constant at $200 milition, depreciation will equal caplal expenditures in each yeat, and working capital will not change. Torino Marine's weighted-overage cost of capital is 9 peicent and its tax rate is 20 percent. Note: Do not round intermediate calculations. Enter your answet in mililons rounded to 1 decimal place. b. Estimate the fair market value per share of Torino Marmes equity at the end of 2021 if the company has 30 millian shares outstanding and the market value of its interest-bearing liabilites on the voluation date equals $200millions. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
A. To estimate the fair market value of Torino Marine at the end of 2021, we need to calculate the present value of the forecasted free cash flows. We'll discount each year's free cash flow using the weighted average cost of capital (WACC) as the discount rate.
First, we need to calculate the terminal value of the company's earnings beyond 2025. Since the earnings before interest and tax (EBIT) is expected to remain constant at $200 million after 2025, we can use a perpetuity formula to find the present value of these cash flows.
The perpetuity formula is PV = C / r, where PV is the present value, C is the cash flow, and r is the discount rate.
Next, we discount each year's free cash flow to their present values using the WACC of 9%.
The formula to calculate the present value (PV) of each year's free cash flow (FCF) is PV = FCF / (1 + r)^n, where n is the number of years in the future.
After calculating the present value of each year's free cash flow and the terminal value, we sum them up to find the fair market value of Torino Marine at the end of 2021.
b. To estimate the fair market value per share of Torino Marine's equity at the end of 2021, we divide the fair market value of the company (found in part a) by the number of shares outstanding.
In this case, the company has 30 million shares outstanding. Dividing the fair market value by the number of shares gives us the fair market value per share.
Remember to round the fair market value of Torino Marine in part a to 1 decimal place and the fair market value per share in part b to 2 decimal places.
To know more about estimate visit:
https://brainly.com/question/24229301
#SPJ11
McDonald’s – Horizontal Analysis: Depreciation, Depletion & Amortization increased in dollars and percentage from 2020 to 2021: Round final answer to dollars WITH one decimal, including zero, and round final answer to whole percentage. Ex: $1,234.5; 65%; or Ex: Ex: $1,234.0; 65%
A. $29.1 and 10%
B. <$29.1> and <10%>
C. $29.1 and 110%
D. <$29.1> and <110%>
The correct answer is A. $29.1 and 10%.
In the given question, it is stated that Depreciation, Depletion & Amortization increased in dollars and percentage from 2020 to 2021. The answer choice A indicates an increase of $29.1 in dollars and 10% in percentage. This means that the dollar amount of Depreciation, Depletion & Amortization increased by $29.1 from 2020 to 2021, and this increase represents a 10% growth in percentage terms.
The answer choices B, C, and D suggest a decrease in either dollars or percentages, which contradicts the information given in the question. Therefore, these choices can be eliminated.
It is important to note that the answer should be rounded to one decimal place for the dollar amount and rounded to the nearest whole percentage. Since the answer A satisfies both conditions, it is the correct choice.
Learn more about the horizontal analysis here:
https://brainly.com/question/29392869
#SPJ11
In the market with market demand , a new firm enters that, through a process innovation, produces the same good at a lower cost and thereby immediately forces all other companies out of the market and thus becomes a monopolist. All costs except fixed costs are economic costs. So the fixed costs have sunk.
(a) Determine the output produced by the monopolist which maximizes its profit. Draw the diagram showing how the monopolist makes a decision on amount of production and price setting.
(b) What ist the profit and variable profit of the monopolist?
(c) Now determine the consumer surplus .
(d) …and overall welfare .
(e) A government agency steps in and imposes a price ceiling . How high would this upper price limit have to be to increase the total welfare W to its maximum? How high would be the amont of production which maximazes welfare?
(f) …or by how much does this increase overall welfare ?
(a) The monopolist will determine the output level that maximizes its profit by setting marginal cost (MC) equal to marginal revenue (MR). This occurs at the quantity where MC intersects MR. The monopolist will then set the price based on the demand curve corresponding to this output level.
(b) The profit of the monopolist is equal to total revenue minus total cost. The variable profit is the profit remaining after deducting the fixed costs. Since all costs except fixed costs are economic costs, the fixed costs are sunk and do not affect profit.
(c) Consumer surplus is the difference between what consumers are willing to pay for a good and what they actually pay. In the case of a monopolist, consumer surplus is reduced compared to a competitive market because the monopolist charges a higher price. The exact calculation of consumer surplus would require information about the demand curve and the price set by the monopolist.
(d) Overall welfare, also known as social welfare or total surplus, is the sum of consumer surplus and producer surplus. With the monopolist, consumer surplus is reduced, but the monopolist gains producer surplus due to its ability to charge a higher price. The overall welfare would depend on the specific values of consumer and producer surplus, which require information about the demand curve and the price set by the monopolist.
(e) If a government agency imposes a price ceiling, it would set an upper limit on the price that the monopolist can charge. To maximize total welfare (W), the price ceiling should be set at the level where the marginal cost (MC) equals the demand curve (which represents marginal benefit to society). The amount of production that maximizes welfare would be the quantity corresponding to this price level.
(f) The increase in overall welfare resulting from the price ceiling would depend on the specific values of consumer and producer surplus. It is not possible to determine the exact increase without knowing the demand curve and the specific prices and quantities involved.
Learn more about monopolist:
brainly.com/question/28841635
#SPJ11
Give a clear and concise example of how a coordination failure can stymie economic
development and then explain how the coordination failure might be resolved (your
example cannot involve airplane manufacturing).
In economic development, coordination failures can hinder progress and impede growth. These failures occur when individuals or groups fail to coordinate their actions, resulting in suboptimal outcomes for the overall economy. Let's consider an example to better understand this concept.
Suppose a city wants to develop a new transportation system to improve commuting for its residents. However, various stakeholders, such as the government, transportation companies, and private investors, fail to coordinate their efforts effectively. As a result, the transportation system faces several issues, such as inconsistent routes, overlapping services, and inadequate infrastructure. This coordination failure leads to inefficiencies, higher costs, and limited accessibility for the city's residents, hindering economic development.
To resolve this coordination failure, stakeholders could implement a coordinated approach. They can establish a transportation planning committee consisting of representatives from the government, transportation companies, and private investors. This committee would analyze the city's transportation needs, develop a comprehensive plan, and allocate resources efficiently. By coordinating their actions and sharing information, stakeholders can ensure that the transportation system is well-designed, properly integrated, and meets the needs of the city's residents.
Additionally, establishing clear communication channels and providing incentives for cooperation can help address the coordination failure. Regular meetings, open dialogue, and information sharing among stakeholders can foster trust, encourage collaboration, and facilitate the development of an effective transportation system.
In summary, coordination failures can hinder economic development by leading to inefficiencies and suboptimal outcomes. Resolving these failures requires stakeholders to establish coordinated approaches, such as forming committees, sharing information, and fostering collaboration. By doing so, they can overcome coordination challenges and promote economic development.
Learn more about economic development
https://brainly.com/question/1690575
#SPJ11
You run a small company that provides regular pool service to customers in East Dallas. Like your competitors in the pool service business, you provide pool service 4 times per month but invoice customers for service on a monthly basis. When you raised the monthly price of pool service from $125 to $140, you lost 28 customers, leaving you with 90 pools to service. You believe that your demand curve has constant elasticity and has not shifted since you started your business. a. Estimate your elasticity of demand? b. Given the cost of pool chemicals, gas, wear and tear on your truck and your time, you believe that the marginal cost of servicing an additional pool in East Dallas is $75 per month. What can you say about your optimal price? Was it a good idea to increase your price? Over time, you realize that half of your 90 customers appear to be more price sensitive than the other half. You know that your customers communicate with each other and would be unhappy knowing that they are paying different prices for the same service. However, in talking with your price sensitive customers, it is clear that they would consider paying for less frequent service if the price were right. In fact, your less price sensitive customers would be willing to pay $190 per month for the current ( 4 times per month) service and $150 per month for reduced service ( 3 times per month). The more price sensitive customers are only willing to pay the current price of $145 per month for the current ( 4 times per month) service, but would be willing to pay $120 per month for reduced ( 3 times per month) service. The marginal cost of current ( 4 times per month) service remains $75 per month, while the marginal cost of the reduced ( 3× per month) service package is $60 per month. c. What type of price discrimination are you considering engaging in? Explain your answer. d. What is your incentive constraint? e. What is your optimal pricing strategy and resulting profits? Be sure to prove your answer.
To estimate the elasticity of demand, we can use the midpoint formula. The formula is: Elasticity = ((Q2 - Q1) / ((Q2 + Q1) / 2)) / ((P2 - P1) / ((P2 + P1) / 2)), where Q1 = initial quantity, Q2 = final quantity, P1 = initial price, and P2 = final price. In this case, the initial quantity (Q1) is 118 (90 + 28), the final quantity (Q2) is 90, the initial price (P1) is $125, and the final price (P2) is $140.
Plugging these values into the formula, we get: Elasticity = ((90 - 118) / ((90 + 118) / 2)) / (($140 - $125) / (($140 + $125) / 2)). After calculating, the elasticity of demand is approximately -1.37. To determine the optimal price, we need to compare the marginal cost to the elasticity of demand. The marginal cost of servicing an additional pool is $75 per month. If the price is increased, the optimal price should be set where the elasticity of demand equals the marginal cost. Since the elasticity of demand is -1.37, the optimal price would be $75 divided by 1.37, which is approximately $54.74.
This means that the optimal price to maximize profits would be below the current price of $140. Therefore, it was not a good idea to increase the price.The type of price discrimination being considered is called third-degree price discrimination. This involves charging different prices to different groups of customers based on their price sensitivity. In this case, the more price sensitive customers are being offered a reduced service package at a lower price.
To know more about Midpoint formula visit:-
https://brainly.com/question/33764312
#SPJ11
You are considering investing in Assets A and B with the following returns and standard deviations (of return):
E(r) SD
A 8% 24%
B 4% 28%
a) Suppose risk-free interest rate (rf) is zero.
Under what conditions would you, being risk-averse, consider holding both assets in your portfolio? [Hint: A complete answer would require numerical, graphical and a bit of verbal analyses.] (7 marks)
b) Now suppose the risk-free rate (rf) is positive.
How would that change your answer to part (a). [Hint: A simple graph with proper labeling and some simple explanations should answer the question completely.] (5 marks)
c) Now suppose risk-free rate (rf) is zero.
Suppose Assets A and B are perfectly positively correlated. Illustrate with a diagram as to why a rational investor would or would not hold Asset B in one’s portfolio. [Hint: Can provide verbal support to the graph, if necessary, in no more than three lines.] (5 marks)
d) Now suppose risk-free rate (rf) is zero.
Suppose Assets A and B are perfectly negatively correlated. Form a 2-asset portfolio that has zero risk (i.e., standard deviation of return equals zero). [Hint: "What is the name of that portfolio?" => "To form a portfolio, what you need to determine?" => "How can you come up with the formula to find that portfolio? Can derive the formula yourself using the portfolio SD formula or find the formula you need from the Bodie.] (6 marks)
e) Now, focus only on risky Assets A and B (forget about the risk-free asset).
Show with calculations that there is diversification benefit resulting from forming the portfolio using A and B if their returns are less than perfectly positively correlated. [Hint: Take a look at "Supple. Notes on Portfolio Risk Changes with Correlation" under Topic 2 on Soul and recall the implications of linear and curvy efficient frontiers under different correlation assumptions.]
(7 marks)
f) Suppose you have $500,000 to invest and you would like to form a (2-asset) portfolio using risk- free asset (rf = 4%) and Asset A so that the portfolio will have same risk as Asset B.
i) How much money should be invested in the risk-free asset and Asset A?
ii) What would the expected return of the portfolio?
iii) DrawthecorrespondingCAL.[Hint:Fullmarkwouldonlybegivenforclearandcomplete labeling of the diagram.] (10 marks)
To determine under what conditions a risk-averse investor would consider holding both assets A and B in their portfolio, we need to analyze the risk and return characteristics of the assets. We can start by plotting the assets on a graph, where the x-axis represents the standard deviation (risk) and the y-axis represents the expected return.
For asset A, with an expected return of 8% and a standard deviation of 24%, we can plot a point on the graph. Similarly, for asset B, with an expected return of 4% and a standard deviation of 28%, we plot another point. Next, we draw a straight line that represents the risk-free rate of return (rf = 0%) from the origin of the graph. This line represents the opportunity cost of investing in a risk-free asset. Now, for a risk-averse investor to consider holding both assets A and B in their portfolio, the combined portfolio must lie above the straight line representing the risk-free rate. In other words, the portfolio's expected return should be higher than the risk-free rate for the given level of risk.
If the risk-free rate (rf) becomes positive, it would shift the straight line representing the risk-free rate upwards on the graph. This means that the risk-free rate now offers a positive return, creating a higher opportunity cost for investing in risky assets. As a result, the combined portfolio of assets A and B would need to provide an even higher expected return to justify the additional risk compared to the risk-free rate. Therefore, the portfolio would need to lie even further above the new risk-free rate line for a risk-averse investor to consider holding both assets A and B.
To know more about risk-averse investor visit:-
https://brainly.com/question/30830621
#SPJ11
How are business losses treated in India, in terms for financial
management
In India, business losses are treated as tax deductions and can be carried forward for a certain period to offset against future profits. This provision allows businesses to reduce their taxable income and potentially lower their tax liability in subsequent years.
In terms of financial management in India, business losses are handled through the provisions of the Income Tax Act. When a business incurs losses in a financial year, it can utilize those losses to offset against future profits for a specified period. This is known as carrying forward the losses. Under the Income Tax Act, businesses are allowed to carry forward their losses for up to eight consecutive years. The carried forward losses can be set off against the profits earned in those future years, reducing the taxable income and potentially lowering the tax liability. However, certain conditions and restrictions may apply, such as the continuity of ownership and business activities. Additionally, the losses can only be carried forward if the business maintains proper accounting records and files income tax returns within the prescribed deadlines. Losses incurred in specific business segments, such as specified infrastructure projects, may have different provisions and rules. Overall, the treatment of business losses in India provides businesses with a mechanism to mitigate the impact of losses by offsetting them against future profits, thus supporting their financial management strategies.
Learn more about profits;
https://brainly.com/question/32381738
#SPJ11
an asset has an average return of 1037 percent and a standard deviation of 22.50 percent. What is the most you should expect to earn in any given year with tobabilty of 16 percent? (That is, 16% of returns should be above what number?
The most you should expect to earn in any given year with probability of 16% is 1055.40%.Hence, the correct option is (b) 1055.40.
Given, Average return of an asset
= 1037%Standard deviation of an asset
= 22.50%Probability
= 16%
We need to find the most you should expect to earn in any given year with probability of 16%.That is, 16% of returns should be above what number?Solution:Let X be the return of an asset.The probability of return above X is 16% or 0.16.Then, using z-value,Z
= (X - μ) / σWhere, μ is the population mean and σ is the standard deviation.For the 16% probability, the z-value can be calculated as,Z
= 1 - 0.16
= 0.84Now, using the formula, the value of X can be calculated as,X
= Zσ + μ
= 0.84 × 22.50 + 1037
= 1055.40.The most you should expect to earn in any given year with probability of 16% is 1055.40%.Hence, the correct option is (b) 1055.40.
To know more about probability visit:
https://brainly.com/question/31828911
#SPJ11
A corporate bond has 22 years to maturity, a face value of $1,000, a coupon rate of 5.5% and pays coupon twice a year. The annual market interest rate for similar bonds is 3.2%. - B Attempt 1/10 for 10 pts. What is the price of the bond (in $)? 2 years later, the market interest rate for similar bonds has gone up to 4.2%. What is the new price of the bond (in $)?
The price of the bond can be calculated using the present value formula, taking into account the coupon payments and the face value.
Using the given information, the bond has a maturity of 22 years, a face value of $1,000, a coupon rate of 5.5%, and pays coupons semi-annually. The annual market interest rate for similar bonds is 3.2%.
To calculate the price of the bond, we need to determine the present value of the future cash flows, which include the coupon payments and the face value. The coupon payments are calculated using the coupon rate and the face value, and the present value is calculated using the market interest rate.
By applying the present value formula, the price of the bond can be calculated.
**After 2 Years - New Price of the Bond**
After 2 years, the market interest rate for similar bonds has increased to 4.2%. To calculate the new price of the bond, we need to recalculate the present value of the future cash flows using the new market interest rate.
By applying the present value formula with the new market interest rate, we can determine the new price of the bond.
To learn more about price
https://brainly.com/question/26075805
#SPJ11
The following data from the just-completed year are taken from the accounting records of Eccles Company:
Sales $ 692,000
Direct labour cost 97,000
Raw material purchases 139,000
Selling expenses 107,000
Administrative expenses 50,000
Manufacturing overhead applied to work in process 217,000
Actual manufacturing overhead costs 234,000
inventory Beginning of Year End of Year
Raw Materials $8,700 $10,700
Work in Process $5,700 $20,700
Finished Goods $70,700 $25,700
1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
2. Prepare a schedule of cost of goods sold.
The schedule of cost of goods manufactured is $438,000, and the schedule of cost of goods sold is $483,000. To prepare the schedule of cost of goods manufactured, we need to calculate the total manufacturing costs incurred during the year.
First, let's calculate the total manufacturing costs by adding the direct labor cost, raw material purchases, and manufacturing overhead applied to work in process.
Total manufacturing costs = Direct labor cost + Raw material purchases + Manufacturing overhead applied to work in process
= $97,000 + $139,000 + $217,000
= $453,000
Next, let's calculate the cost of goods manufactured by adding the beginning work in process inventory to the total manufacturing costs and subtracting the ending work in process inventory.
Cost of goods manufactured = Beginning work in process inventory + Total manufacturing costs - Ending work in process inventory
= $5,700 + $453,000 - $20,700
= $438,000
Therefore, the cost of goods manufactured is $438,000.
2. To prepare the schedule of cost of goods sold, we need to calculate the cost of goods available for sale by adding the beginning finished goods inventory to the cost of goods manufactured.
Cost of goods available for sale = Beginning finished goods inventory + Cost of goods manufactured
= $70,700 + $438,000
= $508,700
Next, we need to subtract the ending finished goods inventory to calculate the cost of goods sold.
Cost of goods sold = Cost of goods available for sale - Ending finished goods inventory
= $508,700 - $25,700
= $483,000.
Therefore, the cost of goods sold is $483,000.
To know more about finished visit:
https://brainly.com/question/30680253
#SPJ11
The farmer produces 889 bushels of wheat at a total cost of $7 per bushel. He sells all of the wheat to Firm F for $10 per bushel. Firm F produces 500 pounds of flour from the wheat at a total cost of $22 per pound (including the amount paid to the farmer for the wheat). Firm F sells 475 pounds of flour to consumers for $32 per pound. There are no other firms in this simple economy. How much profit did Firm F earn? Enter a whole number with no dollar sign. The farmer produces 881 bushels of wheat at a total cost of $7 per bushel. He sells all of the wheat to Firm F for $9 per bushel. Firm F produces 500 pounds of flour from the wheat at a total cost of $23 per pound (including the amount paid to the farmer for the wheat). Firm F sells 475 pounds of flour to consumers for $30 per pound. There are no other firms in this simple economy. What is the value added by Firm F? Enter a whole number with no dollar sign.
The profit earned by Firm F can be calculated by subtracting its total cost from its total revenue.
To determine the profit earned by Firm F, we need to analyze its revenue and cost. Firm F purchases wheat from the farmer at a cost of $10 per bushel and produces 500 pounds of flour. The cost of production, including the cost of wheat, is $22 per pound of flour. Firm F then sells 475 pounds of flour to consumers at $32 per pound.
To calculate the profit, we can start by calculating the total revenue. The revenue is obtained by multiplying the quantity sold (475 pounds) by the selling price per pound ($32). Next, we calculate the total cost by adding the cost of production per pound ($22) to the amount paid to the farmer for the wheat.
Finally, the profit is determined by subtracting the total cost from the total revenue. This will give us the amount of profit earned by Firm F.
Calculating the profit earned by Firm F helps evaluate the financial performance of the firm in this simple economy. It considers the revenue generated from selling flour to consumers and deducts the total cost of production, including the cost of purchasing wheat from the farmer.
The profit earned represents the surplus gained by the firm after covering all costs. It indicates the firm's ability to generate income and create value through its production and sales activities.
Learn more about profit earned
brainly.com/question/29076986
#SPJ11
Angela plans to invest $200,000 in the stock of Company A (stock A ) and expects to hold this stock for 4 years with the aim to achieve a medium term capital gain. She plans to reinvest all returns in the same stock in the next years and will not sell any stocks in future. Benny also plans to invest in stock A today with the same amount as Angela. He expects to draw out annual returns earned from Stock A for his spending. The investment returns of Stock A in the coming four years are shown as below: a) Calculate the total investment returns of Angela and Benny respectively for the four years. b) Based on the investment returns of Stock A in the four years, i. Calculate the Geometric Average Annual Return % of Angela's investment. ii. Calculate the Arithmetic Average Annual Return % of Benny's investment. c) Assuming that the returns of Stock A follows a normal distribution and the estimated returns in the coming four years are good estimates of return in year 5. i. Calculate the variance and standard deviation of Stock A returns %. ii. Estimate the range of returns % in year 5 for Stock A with the probability of 99% ?
To calculate the total investment returns of Angela and Benny for the four years, we need to multiply their initial investments by the respective returns for each year and then add up the results.
To calculate the total investment returns of Angela and Benny for the four years, we need to sum up the returns for each year.
For Angela:
Year 1: 10% of $200,000 = $20,000
Year 2: 5% of ($200,000 + $20,000) = $11,000
Year 3: 8% of ($200,000 + $20,000 + $11,000) = $18,240
Year 4: 15% of ($200,000 + $20,000 + $11,000 + $18,240) = $37,866
Total investment returns for Angela = $20,000 + $11,000 + $18,240 + $37,866 = $87,106
For Benny:
Year 1: 10% of $200,000 = $20,000
Year 2: 5% of $200,000 = $10,000
Year 3: 8% of $200,000 = $16,000
Year 4: 15% of $200,000 = $30,000
To calculate the Geometric Average Annual Return % of Angela's investment, we need to find the geometric mean of the annual returns.
Geometric Average Annual Return % for Angela = [(1 + 10%) * (1 + 5%) * (1 + 8%) * (1 + 15%)]^(1/4) - 1
To know more about investment returns visit:-
https://brainly.com/question/28622693
#SPJ11
Choose the true statement: Rob wants to start a company so that he can sell photographic equipment. True or False: Rob could choose to form a sole proprietorship so that he would have exclusive control over any of the "remote investors" in his business. China historically has had so few lawyers that its current "company laws," including those involving agency and partnership law, are in effect the opposite of the flexible laws for agency relationships and partnerships found in the United States. Shareholders rarely, if ever, have any significant managerial powers in their roles as shareholders. If a shareholder loses a derivative action against a corporation, that shareholder must sell his/her shares in the corporation. Corporate profits are only taxed if they are distributed to the shareholders.
False: Rob could not choose to form a sole proprietorship to have exclusive control over remote investors in his business.
A sole proprietorship is a type of business structure where an individual operates a business as the sole owner. In a sole proprietorship, the owner has complete control over the business and its operations. However, when it comes to investors, a sole proprietorship does not typically involve external investors who hold ownership or control rights. In this structure, the owner is solely responsible for the business and any liabilities. If Rob wants to have exclusive control over remote investors, he may need to consider a different business structure, such as a partnership or corporation, where ownership rights and control can be allocated differently among shareholders or partners.
Learn more about investors here,
https://brainly.com/question/31888450
#SPJ11
