The journal entry to record the redemption of the bonds assuming the interest for the period has already been paid by ACME Inc. is the following: Debit Bonds Payable $150,000Credit Cash $153,000Credit Gain on Redemption of Bonds $3,000
The journal entry to record the redemption of bonds assuming the interest for the period has already been paid is the following: On the debit side: Bonds Payable (face value of the bonds)On the credit side: Cash (amount paid to bondholders upon redemption), and Gain on Redemption of Bonds (difference between the redemption price and the bond's amortized cost)The gain on redemption of bonds is the difference between the amount paid for the bonds upon redemption and the bond's amortized cost. In this case, the bonds were redeemed at 102, meaning that $153,000 were paid ($150,000 x 102%). The bond's amortized cost was $127,500. Therefore, the gain on redemption of bonds is $3,000 ($153,000 - $127,500).
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John who is the supply chain analyst for the Exatar manufacturing company must choose between two shipping alternatives to receive a part from their supplier: a two-day freight and a six-day freight. The freight (shipping) cost per unit is $4 for the six-day freight and $8 for the two-day freight. The purchasing cost is $150. In addition, the annual holding cost is 20% of the item’s value and 2500 items are to be shipped in a year. The company will need to keep 30 units as the safety stock at all times if they go with the two-day freight, but this amount will be 60 units if they choose the six-day freight. What is the annual safety stock holding costs for the six-day shipping? [ Assume 250 days in a year, and the shipping cost is charged when the items arrive at the destination.]
$600
$948
$1800
$1848
None of the above
The annual safety stock holding costs for the six-day shipping option amount to $225,000.
To calculate the annual safety stock holding costs for the six-day shipping option, we need to consider the annual holding cost per unit and the difference in safety stock levels between the two shipping alternatives.
First, let's calculate the annual holding cost per unit:
Annual Holding Cost per Unit = Annual Holding Cost Rate * Item Value
Since the annual holding cost is 20% of the item's value, we can calculate it as:
Annual Holding Cost per Unit = 0.20 * $150 = $30
Next, let's calculate the difference in safety stock levels between the two shipping alternatives:
Safety Stock Difference = 60 units - 30 units = 30 units
Now, we can calculate the annual safety stock holding costs for the six-day shipping:
Annual Safety Stock Holding Costs = Safety Stock Difference * Annual Holding Cost per Unit * Number of Days in a Year
Annual Safety Stock Holding Costs = 30 units * $30 * 250 days = $225,000
Therefore, the annual safety stock holding costs for the six-day shipping option amount to $225,000. However, none of the given options ($600, $948, $1800, $1848) matches this result, so the correct answer is "None of the above."
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Business-to-Consumer (B2C) electronic commerce is the
communication and sale of products or services to consumers over
various social media platforms and the internet. From Chapter 12
which outlines t
Traditionally, many manufacturers sold their products to retailers with physical locations. Retailers made profits on the markup they added to the price paid to the manufacturer.
But that changed once the internet came. New businesses arose that promised to sell directly to the consumer, thus cutting out the middle person—the retailer—and lowering prices. During the bust of the dotcom boom in the 1990s, businesses fought to secure a web presence.
Many retailers were forced to shut their doors and went out of business.
Decades after the dotcom revolution, B2C companies with a web presence continue to dominate over their traditional brick-and-mortar competitors. Companies such as Amazon, Priceline, and eBay are survivors of the early dotcom boom. They have gone on to expand upon their early success to become industry disruptors.
Business-to-Consumer (B2C) electronic commerce is the communication and sale of products or services to consumers over various social media platforms and the internet. B2C is a form of e-commerce that is designed to reach out to individuals and their needs directly. As per Chapter 12, B2C has many advantages and disadvantages for both consumers and businesses.
The term business-to-consumer (B2C) refers to the process of selling products and services directly between a business and consumers who are the end-users of its products or services. Most companies that sell directly to consumers can be referred to as B2C companies.
B2C became immensely popular during the dotcom boom of the late 1990s when it was mainly used to refer to online retailers who sold products and services to consumers through the internet.
As a business model, business-to-consumer differs significantly from the business-to-business (B2B) model, which refers to commerce between two or more businesses.
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If money is worth 8 percent compounded semiannually, how much is a bond maturing in six years with a face value of \( \$ 30,000 \) and a coupon rate of 9 percent worth today?
The bond is worth $23,149.96 today. We have been given: Face Value = $30,000Coupon Rate = 9%Years to Maturity = 6 years Compounding Frequency = Semi annually Interest Rate = 8%To determine the value of the bond, we first calculate the value of each coupon payment.
Coupon payment = Face Value × Coupon Rate = $30,000 × 0.09 = $2,700Next, we determine the present value of each coupon payment, discounted at the semi-annual interest rate. Present value of each coupon payment = Coupon Payment × Present Value Factor= Coupon Payment × [1 - (1 + r/n)-nt]/(r/n)= $2,700 × [1 - (1 + 0.08/2)-2×6]/(0.08/2)= $2,700 × 3.3452= $9,047.64Finally, we calculate the present value of the face value, discounted at the semi-annual interest rate.
Present value of face value = Face Value × Present Value Factor= Face Value × [1 - (1 + r/n)-nt]/(r/n)= $30,000 × [1 - (1 + 0.08/2)-2×6]/(0.08/2)= $30,000 × 0.5351= $16,053.35The total value of the bond today is the sum of the present value of each coupon payment and the present value of the face value. Total value of bond today = Sum of present value of each coupon payment + Present value of face value= $9,047.64 × 10 + $16,053.35= $23,149.96Thus, the bond is worth $23,149.96 today.
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In the presence of external costs, unregulated markets are__and taxing the products____market efficiency.
Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.
a. efficient; further increases
b. efficient; does not affect
c. efficient; reduces
d. inefficient; increases
e. inefficient; further reduces
In the presence of external costs, unregulated markets are inefficient and taxing the products further reduces market efficiency.
External costs refer to the negative consequences or costs imposed on society that are not directly accounted for by the producers or consumers involved in the market transaction. Examples of external costs include pollution, congestion, and health issues caused by certain products or activities.
In unregulated markets, producers and consumers may not take into account these external costs when making their decisions. As a result, the market equilibrium does not reflect the true social costs and benefits, leading to an inefficient allocation of resources.
By taxing the products that generate external costs, the government can internalize these costs and make the market more efficient. The tax increases the price of the product, reducing its demand and consumption. This reduction in consumption helps align the private costs with the social costs, resulting in a more optimal allocation of resources.
unregulated markets are inefficient in the presence of external costs. Taxing the products that generate these costs helps to reduce market inefficiency by aligning private and social costs.
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The company's collection activity on credit sales historically has been as follows. Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter. Compute Spicer's budgeted cash balance at the ends of March, April, and May.
Spicer's budgeted cash balance at the ends of March, April, and May are $500,000, $700,000, and $1,100,000, respectively.
To compute Spicer's budgeted cash balance at the ends of March, April, and May, we need to consider the cash receipts from credit sales and the cash expenditures for each month.
March:
Cash receipts from credit sales: $400,000 (20% of $2,000,000)
Cash expenditures: $400,000
Budgeted cash balance at the end of March:
Cash balance on March 1 + Cash receipts - Cash expenditures
= $500,000 + $400,000 - $400,000
= $500,000
April:
Cash receipts from credit sales: $600,000 (30% of $2,000,000)
Cash expenditures: $400,000
Budgeted cash balance at the end of April:
Cash balance on March 1 + Cash receipts - Cash expenditures
= $500,000 + $600,000 - $400,000
= $700,000
May:
Cash receipts from credit sales: $1,000,000 (50% of $2,000,000)
Cash expenditures: $400,000
Budgeted cash balance at the end of May:
Cash balance on March 1 + Cash receipts - Cash expenditures
= $500,000 + $1,000,000 - $400,000
= $1,100,000
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Your company just made a decision to 3D print several assemblies replacing conventional machining and assembly. You, as a Director QC, need to present a comprehensive plan for quality control of the new assemblies. What would be your primary concerns and objectives? Will you require any new equipment and resources ? If so - what kind ? Edit View Insert Format Tools Table 12pt Paragraph B I U T?
By addressing these primary concerns and objectives, and potentially acquiring the necessary equipment and resources, we can ensure that the 3D printed assemblies meet the required quality standards.
As the Director of Quality Control, my primary concerns and objectives for the quality control plan of the 3D printed assemblies would be to ensure the following:
Dimensional Accuracy and Precision: Since 3D printing involves layer-by-layer additive manufacturing.
Material Quality and Strength: I would focus on evaluating the quality and mechanical properties of the 3D printed materials.
Surface Finish and Aesthetics: The appearance and surface finish of the 3D printed assemblies play a vital role, especially if they are visible parts or have functional requirements related to smoothness or texture.
In terms of equipment and resources, implementing a comprehensive quality control plan for 3D printed assemblies may require some new tools and resources. These could include:
Coordinate Measuring Machine (CMM): A CMM would be useful for precise dimensional measurements of the printed parts and comparing them against design specifications.
Mechanical Testing Equipment: This may include universal testing machines, impact testers, hardness testers, or other specialized equipment to assess material properties and mechanical performance.
Surface Roughness Measurement Tools: Instruments like profilometers or laser scanners can be employed to measure the surface roughness and texture of the 3D printed parts.
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business mathematics - depreciation
c) An asset has a scrap value of RM9,500 at the end of 7 years and the book value of RM12,000 at the end of 5 years. Using the straight-line method, find the cost of the machine. (5 marks)
The cost of the machine is RM21,500.
The given information is:
Scrap value of the asset = RM9,500
Book value of the asset at the end of 5 years = RM12,000
The straight-line method of depreciation is given as:
C = P - SV / n
where
C = Annual depreciation
P = Original cost of an asset
SV = Salvage value of an asset
n = Number of years of useful life.
The annual depreciation of the asset is calculated as:
Annual depreciation = (Cost - Scrap value) / Number of useful years
Annual depreciation = (RM12,000 - RM9,500) / (7 - 5)
Annual depreciation = RM1,750
The cost of the machine can be calculated using the formula:
Cost = Annual depreciation * Number of useful years + Scrap value
Cost = (RM1,750 * 7) + RM9,500Cost = RM21,500
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Using the Rule of 72 , approximately what interest rate is needed to double an investment over 5.80 years? Note: Round your answer to 2 decimal places.
Approximately a 12.41% interest rate is needed to double the investment over 5.80 years.
The Rule of 72 is a simple and quick method to estimate how long it will take for an investment to double, given a fixed annual interest rate. It's a helpful rule of thumb for back-of-the-envelope calculations without the need for complex financial formulas.
The formula for the Rule of 72 is:
Years to Double = 72 / Annual Interest Rate
In your case, you want to find the interest rate needed to double an investment over 5.80 years. Let's solve for the interest rate:
Interest Rate = 72 / Years to Double
Interest Rate = 72 / 5.80 ≈ 12.41%
So, an approximate interest rate of 12.41% is required to double the investment over 5.80 years.
Here's an example to illustrate the calculation:
Suppose you have an initial investment of $10,000. To double that investment in 5.80 years, you would need an annual interest rate of approximately 12.41%. After the first year, your investment would grow to $10,000 + ($10,000 * 0.1241) = $11,241. After the second year, it would become $11,241 + ($11,241 * 0.1241) = $12,611. And so on until it doubles to $20,000 at the end of 5.80 years.
It's essential to note that the Rule of 72 is an approximation and may not be perfectly accurate for high-interest rates or longer timeframes. For precise calculations, it's best to use financial formulas or tools like compound interest calculators. Nonetheless, the Rule of 72 provides a quick estimate that can be helpful in many situations.
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1)Assume that you are the new manager of a firm selling a good. Historically, your firm has charged a single price for every unit sold as opposed to price discriminate.
Consider a strategy of using two-part tariffs (2nd degree price discrimination) to sell. Say that every consumer had quantity demanded of 10 units at a price of $2.
a.If you could charge consumers an access fee for the right to purchase your good, do you have enough information to say what the lowest access fee consumers would be willing to pay?
b.What would the demand curve look like to dictate such an access fee?
c.In what situation could you charge your customers a higher access fee: when they have elastic demand curves or inelastic demand curves? In one sentence and/or a picture, why?
The lowest access fee consumers would be willing to pay cannot be determined without additional information. In order to determine the lowest access fee, you would need to know the consumers' willingness to pay for the right to purchase the good.
The demand curve to dictate the access fee would depend on the consumers' willingness to pay for the right to purchase the good. If consumers have a higher willingness to pay, the demand curve would be steeper, indicating a higher access fee. If consumers have a lower willingness to pay, the demand curve would be flatter, indicating a lower access fee.
You could charge your customers a higher access fee when they have elastic demand curves. Elastic demand means that a small change in price leads to a relatively larger change in quantity demanded. In this situation, consumers are more price-sensitive and are likely to be less willing to pay a higher access fee. Therefore, charging a higher access fee to customers with inelastic demand curves would be more feasible as they are less sensitive to price changes.
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Today is Rachel’s 30th birthday. Five years ago, Rachel opened a brokerage account when her grandmother gave her $25,000 for her 25th birthday. Rachel added $2,000 to this account on her 26th birthday, $3,000 on her 27th birthday, $4,000 on her 28th birthday, and $5,000 on her 29th birthday. Rachel’s goal is to have $400,000 in the account by her 40th birthday.
Starting today, she plans to contribute a fixed amount to the account each year on her birthday. She will make 11 contributions, the first one will occur today, and the final contribution will occur on her 40th birthday. Complicating things somewhat is the fact that Rachel plans to withdraw $20,000 from the account on her 35th birthday to finance the down payment on a home. How large does each of these 11 contributions have to be for Rachel to reach her goal? Assume that the account has earned (and will continue to earn) an effective return of 9 percent a year.
a. $17,065.59
b. $11,536.20
c. $16,331.81
d. $17,223.30
e. $19,115.67
The correct answer is (a) $17,065.59.
To determine the amount Rachel needs to contribute each year on her birthday to reach her goal of $400,000 in the brokerage account by her 40th birthday, we need to follow these steps:
Step 1: Calculate the future value of the initial deposit and subsequent contributions made by Rachel.
- Calculate the future value of the $25,000 initial deposit made when Rachel turned 25. Since five years have passed and the account earns an effective return of 9 percent per year, the future value can be calculated using the formula for compound interest: FV = PV * (1 + r)^n, where FV is the future value, PV is the present value, r is the interest rate, and n is the number of years. In this case, FV = $25,000 * (1 + 0.09)^5 = $25,000 * 1.547869 = $38,696.73.
- Calculate the future value of the subsequent contributions made by Rachel on her 26th, 27th, 28th, and 29th birthdays. Using the same formula, we can calculate the future values as follows:
- $2,000 * (1 + 0.09)^4 = $2,000 * 1.411581 = $2,823.16
- $3,000 * (1 + 0.09)^3 = $3,000 * 1.295029 = $3,885.09
- $4,000 * (1 + 0.09)^2 = $4,000 * 1.188116 = $4,752.46
- $5,000 * (1 + 0.09)^1 = $5,000 * 1.090000 = $5,450.00
Step 2: Determine the future value of the withdrawal made on Rachel's 35th birthday.
- Since Rachel plans to withdraw $20,000 on her 35th birthday, we need to subtract this amount from the future value calculated so far. Thus, $38,696.73 + $2,823.16 + $3,885.09 + $4,752.46 + $5,450.00 - $20,000 = $35,607.44.
Step 3: Calculate the future value of the remaining contributions made by Rachel.
- Rachel plans to make 11 contributions in total, with the first one occurring today (her 30th birthday) and the final one occurring on her 40th birthday. Since the contributions occur annually, the remaining contributions will occur over a span of 10 years. Using the formula for future value, we can calculate the future value of these contributions as FV = PMT * [(1 + r)^n - 1] / r, where PMT is the contribution amount, r is the interest rate, and n is the number of years. Substituting the given values, we have $400,000 - $35,607.44 = PMT * [(1 + 0.09)^10 - 1] / 0.09. Simplifying this equation, we get $364,392.56 = PMT * (1.09^10 - 1) / 0.09.
Step 4: Solve for the contribution amount (PMT).
- Rearranging the equation, we have PMT = $364,392.56 * 0.09 / (1.09^10 - 1).
- Evaluating this expression, we find PMT ≈ $17,065.59.
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The labor force in an economy consists of all ______
O a. people in the economy who are employgnd.
O b. people in the economy who are unemployed.
O c. adults in the economy.
O d. adults in the economy who are employed and unemployed.
O e. adults in the economy who are discouraged.
The labor force in an economy consists of all d. adults in the economy who are employed and unemployed.
What is labor force?The term "workforce" or "labor force" refers to the group of people who are either employed or unemployed. It usually refers to people who work for a certain organization or sector, but it can also refer to a specific geographic area like a city, state, or nation.
Study of the labor force as a component of the production process is called labor economics. All people who work for pay, whether as employees, employers, or self-employed people, as well as those who are jobless but looking for work, are considered to be part of the labor force.
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You are considering a 20-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 9.2025%, how much should you be willing to pay for the bond? Do not round intermediate calculations. Round your answer to the nearest cent.
You should be willing to pay approximately $1,202.71 for the bond.
To determine the price you should be willing to pay for the bond, you need to calculate the present value of its cash flows using the given effective annual interest rate of 9.2025%.
First, calculate the number of coupon payments over the bond's life. Since the bond pays interest semiannually and has a 20-year term, there will be 20 x 2 = 40 coupon payments.
Next, determine the semiannual coupon payment. The coupon rate is 10%, and the par value of the bond is $1,000. So the semiannual coupon payment is (10% x $1,000) / 2 = $50.
Now, calculate the present value of each semiannual coupon payment. Since the effective annual interest rate is given, we need to convert it to the semiannual rate. The semiannual interest rate is (1 + 9.2025%)^(1/2) - 1 = 4.4581%.
Using the formula for the present value of an ordinary annuity, which is PV = C * (1 - (1 + r)^-n) / r, where PV is the present value, C is the coupon payment, r is the interest rate per period, and n is the number of periods, we can calculate the present value of each semiannual coupon payment.
PV = $50 * (1 - (1 + 4.4581%)^-40) / 4.4581%
= $50 * (1 - (1.044581)^-40) / 0.044581
= $50 * (1 - 0.331212) / 0.044581
= $50 * 0.668788 / 0.044581
= $750.05
Now, calculate the present value of the bond's face value, which is $1,000. Since the face value is paid at maturity, there are no further periods involved, and we can simply discount it using the semiannual interest rate:
PV = $1,000 / (1 + 4.4581%)^40
= $1,000 / (1.044581)^40
= $1,000 / 2.208422
= $452.66
Finally, add the present values of the coupon payments and the face value to get the price you should be willing to pay for the bond:
Price = PV of coupon payments + PV of face value
= $750.05 + $452.66
= $1,202.71
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Suppose that you purchased a warehouse for $20 million using a 20-year loan for 80% of the purchase price. The loan has an annual interest rate of 6% with monthly payments and monthly compounding. You plan on selling the property at the end of the 5th year and predict that the future selling price will be $25 million. If selling expenses are expected to be 3% of the future selling price, what will the before-tax equity reversion be from the sale of the property at the end of the 5th year?
Question 21 options:
$11.74 million
$10.03 million
$9.60 million
$10.67 million
Option D is correct. The before-tax equity reversion from the sale of the property at the end of the 5th year will be $10.67 million.
For calculating the before-tax equity reversion, need to determine the amount of equity that remains after paying off the loan and deduct the selling expenses. The loan amount is 80% of the purchase price, which is $20 million, resulting in a loan amount of $16 million.
Needed to calculate the future value of this loan at the end of the 5th year with monthly compounding and 6% interest rate. Using the future value formula, find that the loan will have grown to approximately $19.14 million. The equity reversion is the difference between the future selling price ($25 million) and the loan balance ($19.14 million) minus the selling expenses (3% of $25 million, which is $0.75 million). Therefore, the before-tax equity reversion is $10.67 million.
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A. Briefly outline FOUR (4) main elements of the promotional
mix. (8 marks)
B. With the use of examples, discuss the TWO (2) main components
of the AIDA model. (12 marks)
A. Briefly outline FOUR (4) main elements of the promotional mix.The four main elements of the promotional mix are Advertising, Personal selling, Sales promotion, and Public Relations. These elements are often combined to create a comprehensive marketing campaign that reaches customers through multiple channels.
Advertising is the most widely used component of the promotional mix. It is the process of communicating with the customers through various media such as television, radio, newspapers, magazines, and billboards. Personal selling is a one-to-one communication process between a salesperson and a potential customer. Sales promotion refers to short-term incentives that are used to encourage customers to buy a product or service. Public relations involve creating a positive image for a company or brand through the media and other channels.
B. With the use of examples, discuss the TWO (2) main components of the AIDA model.The AIDA model is a marketing communication model that stands for Attention, Interest, Desire, and Action. It is a four-stage model that describes the process by which customers are attracted to a product or service and then convinced to buy it. The two main components of the AIDA model are Attention and Desire.Attention: This is the first stage of the AIDA model, where marketers seek to grab the attention of potential customers.
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The ________of interest rates refers to the relationship among the interest rates on bonds that have _________ maturities and _________ characteristics.
Select one:
risk structure; same; same term structure; different; different
risk structure; same; different term structure; same; different
The correct answer is "term structure; different; different." The term structure of interest rates refers to the relationship among the interest rates on bonds that have different maturities and different characteristics.
To understand this concept, let's break it down step by step: Term structure: This refers to the pattern of interest rates across different maturities. It shows how the interest rates change as the time to maturity of the bond varies. For example, the interest rate on a 5-year bond might be different from the interest rate on a 10-year bond. Different maturities: Bonds can have various maturities, which means the length of time until the bond expires or reaches its maturity date.
Different characteristics: Bonds can also have different characteristics, such as credit risk, liquidity, and tax treatment. These characteristics affect the perceived risk associated with the bond, which in turn influences the interest rate. So, in summary, the term structure of interest rates refers to how interest rates vary across different bond maturities and characteristics. It helps investors understand the relationship between time to maturity and interest rates, allowing them to make informed decisions when investing in bonds.
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What is meant by organizational structure? Describe (5)
characteristics about the organization that might be observed in
looking at an organization’s organizational chart.
Organizational structure refers to the framework that outlines how various roles, responsibilities, and tasks are organized, coordinated, and allocated within an organization.
Organizational structure defines the hierarchical relationships, reporting lines, and communication channels that exist among individuals and departments. An organizational chart is a graphical representation of this structure, depicting the formal relationships and positions within the organization.
The five characteristics that can be observed by examining an organization's organizational chart include: Hierarchy; Span of Control; Departmentalization; Centralization or Decentralization; and Reporting Relationships and Communication Channels.
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In the Hecksher-Ohlin model, what is the basis for trade? How does a country determine which good to export? What is the effect on the functional distribution of income with trade, according to H−O ?
The Hecksher-Ohlin model suggests that trade is driven by differences in resource endowments between countries, leading to specialization and changes in income distribution.
In the Hecksher-Ohlin model, trade is based on differences in resource endowments between countries. This means that countries specialize in producing and exporting goods that make use of their abundant resources, while importing goods that require resources they lack.
To determine which good to export, a country considers its resource endowments. If a country has a relative abundance of a certain resource, it will specialize in producing goods that require that resource. For example, a country with abundant land resources might specialize in agricultural goods, while a country with abundant capital resources might specialize in producing high-tech goods.
According to the Hecksher-Ohlin model, trade has an effect on the functional distribution of income. It states that trade will lead to an increase in the return to the abundant factor of production and a decrease in the return to the scarce factor of production. This means that in a country that specializes in exporting goods that make use of its abundant resources, the owners of those resources will see an increase in their income. On the other hand, the owners of the scarce resources will experience a decrease in their income.
Overall, the Hecksher-Ohlin model suggests that trade based on differences in resource endowments can lead to specialization, increased production efficiency, and changes in the distribution of income within a country.
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Briefly explain TWO (2) importance of selection
process in an organization with an appropriate example each.
Selection process plays a vital role in any organization as it helps in identifying and hiring the right candidate for a specific job role. It is a time-consuming and expensive process, but it is essential to choose the best candidate for the job.
The two main importance of selection process are discussed below:
1. Identifying the Right Candidate: The primary importance of the selection process is to identify the right candidate for the job. It helps in ensuring that the individual selected has the skills, knowledge, and experience required for the job. In the selection process, the recruiter looks for specific qualities and skills required for the job role. The candidate is tested, interviewed, and evaluated based on their performance, and the best-suited candidate is selected. For instance, let's say that an organization is looking for a sales representative. The selection process will involve evaluating the candidate's communication skills, confidence, and ability to sell the product.
2. Reducing Employee Turnover: Another essential importance of the selection process is to reduce employee turnover. When an organization hires the right candidate for the job, they are likely to remain with the company for an extended period. It reduces employee turnover, which saves the organization the time and cost of recruiting new staff. If a wrong candidate is hired, the chances of employee turnover are high, which can be costly to the organization. For example, if an organization is hiring a software developer, the selection process will involve evaluating the candidate's knowledge of coding and software development tools, ensuring that the selected candidate can handle the job requirements well.
The selection process is crucial in any organization as it helps in identifying the right candidate for the job and reducing employee turnover. It is essential to choose the right candidate to avoid additional recruitment costs and ensure that the organization has the right staff to achieve its goals. The selection process is time-consuming and expensive, but it is worth investing in as it has long-term benefits for the organization.
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Is
the CAGR calculcated over a time period or is it for one year? If
it is a time period, is the beginning value the oldest years
revenue and the end value the latest year?
a..It is not limited to one year.
b..These values can represent any point in time within the specified period.
The CAGR is calculated over a time period and represents the average annual growth rate of an investment or variable over that period.
For example, if you have revenue data for a company from 2010 to 2020, you can calculate the CAGR using the revenue values for 2010 as the beginning value and the revenue value for 2020 as the end value.
The time period would be 10 years.
The CAGR provides a smoothed average growth rate over the entire period, allowing for comparison and evaluation of growth rates across different timeframes.
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In the case of CDH Invest NV v Petrotank South Africa (Pty) Ltd and Another (2018), timeframes may be tricky when shareholders legitimately call for a shareholders' meeting. The shareholders' recourse is to approach the courts when the board is essentially ignoring the call for a shareholders' meeting. Explain how this may exacerbate an already challenging relationship between shareholders and the board.
When shareholders legitimately call for a shareholders' meeting, the timeframes may become difficult to handle. This situation was witnessed in the case of CDH Invest NV v Petrotank South Africa (Pty) Ltd and Another (2018).
The shareholders can approach the court if the board ignores the call for a shareholders' meeting, which can exacerbate an already challenging relationship between shareholders and the board. In general, this scenario can lead to a problematic and tumultuous relationship between the board of directors and the shareholders. The shareholders' attempt to control the direction and management of the company by calling for a meeting to discuss its affairs may be disregarded by the board's inaction, leading to a strained relationship. As a result, the shareholders may seek the court's intervention to compel the board to hold the meeting, which can be an extended legal process and may result in more time and expenses.
Furthermore, the act of taking legal action could be seen as a hostile move by the shareholders, prompting the board to further isolate them and view them with suspicion. This, in turn, can make it difficult for the board to operate effectively. The situation could ultimately lead to an environment that is detrimental to the interests of both the shareholders and the board.
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which of the following is defined under the scope component of corporate strategy?
a.
The decision to employ social media as a key promotional element.
b.
The decision to engage in vertical integration.
c.
The firm's branding policies.
d.
Product line extensions.
The scope component of the corporate strategy is defined as the extent to which the company will operate in the value chain from manufacturing to sales. This involves identifying the geographical location where the company will operate, the markets that it will serve, and the types of products or services that it will provide.
Therefore, the decision to engage in vertical integration is defined under the scope component of the corporate strategy. Vertical integration is when a company acquires or merges with a supplier or distributor. This strategy is intended to streamline the supply chain, reduce costs, and improve efficiency. This requires the company to have a clear understanding of the industry and the factors that influence the supply chain.
This decision involves evaluating the company's core competencies and the resources it needs to successfully execute this strategy. Furthermore, it is important to assess the risks and benefits associated with this decision before implementing it. In summary, the decision to engage in vertical integration is defined under the scope component of corporate strategy.
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Growth and development: In 2017, Ethiopia had a per capita income of $1,600, about $4
per day. Compute per capita income in Ethiopia for the year 2050 assuming average
annual growth is
a. 1% per year.
b. 2% per year.
c. 4% per year.
d. 6% per year.
Under the given growth rate scenarios, the per capita income in Ethiopia is projected to range from $2,095.68 to $8,475.54 in the year 2050. The higher the annual growth rate, the greater the increase in per capita income over time.
In order to compute the per capita income in Ethiopia for the year 2050 under different growth scenarios, we can use the compound interest formula. The formula for calculating the future value (FV) of an investment with a fixed annual growth rate (r) over a certain number of years (t) is:
FV = PV * (1 + r)^t
Where:
FV = Future Value (per capita income in 2050)
PV = Present Value (per capita income in 2017)
Given that the per capita income in Ethiopia in 2017 was $1,600, we can calculate the per capita income for 2050 using the following growth rates:
a. 1% per year:
FV = $1,600 * (1 + 0.01)^33 ≈ $2,095.68
b. 2% per year:
FV = $1,600 * (1 + 0.02)^33 ≈ $2,770.14
c. 4% per year:
FV = $1,600 * (1 + 0.04)^33 ≈ $4,782.90
d. 6% per year:
FV = $1,600 * (1 + 0.06)^33 ≈ $8,475.54
Based on these calculations, the per capita income in Ethiopia for the year 2050 would be approximately:
a. $2,095.68
b. $2,770.14
c. $4,782.90
d. $8,475.54
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Filaska Corp. paid a dividend of $2.84 on its common stock at the end of last year. Dividends are expected to grow at a constant rate of 3% in the forseeable future. What is the intrinsic value of the stock if investors’ required rate of return is 12%? Round to two decimal places (Ex. $0.00)
The intrinsic value of a stock can be determined using the Gordon Growth Model, which calculates the present value of all future dividends.
In this case, we can use the formula:
Intrinsic Value = Dividend / (Required Rate of Return - Growth Rate)
Given that Filaska Corp. paid a dividend of $2.84 and the dividends are expected to grow at a constant rate of 3%, we can plug in these values into the formula.
Dividend = $2.84
Growth Rate = 3%
Required Rate of Return = 12%
Using the formula, the intrinsic value of the stock is:
Intrinsic Value = $2.84 / (0.12 - 0.03)
Now let's calculate it step by step:
1. Subtract the growth rate from the required rate of return:
0.12 - 0.03 = 0.09
2. Divide the dividend by the result:
$2.84 / 0.09 = $31.56
Therefore, the intrinsic value of the stock is $31.56 if the investors' required rate of return is 12%.
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PLEASE DO :
Use correct punctuation.
Make the subject line and the first sentence tell why you are writing (or, to say it another way...what you want or what your main message is).
Avoid passive expressions and use the active voice.
Use some kind of bulleted or numbered list with parallel structure since you are dealing with multiple items,
Have a clear introduction, details in the body, and a call to action in the conclusion.
Use your own words, and construct grammatically correct sentences.
Click the link to download the Create Memo document. Follow the directions on the document to write the memo. There is a rubric on the document to indicate the requirements for the memo and the factors related to your grade. Notice you will have a chance to practice your parallel construction in this memo.
This sample memo has totally different content than you will have in your memo; however, it shows you the correct format for a memo. Notice there is no "Dear So-and-So, and no closing with Sincerely or any other word. The only "signature" is the initials of the writer (you) on the "From" line. Since this is a digitial document, I don't expect you to put your initials on your document. The paragraphs in this memo follow the Opening/Body/Closing structure described in the instructional video.
Be sure to use the tab key when you line up (left-align) the content into a straight line after each of the 4 headers.
Create your memo on a blank Microsoft Word document and upload to this assignment area. If you all demonstrate good understand of this communication type, we won't repeat it next week.
-------------------------------------------------
The following describes a memo which you are writing to all employees in your department (the
purchasing department). The "To:" line in your memo can be Purchasing Department Staff. The
"From:" line is your name. You will create the subject line which expresses exactly what the purpose of
this memo is...why you are writing. The subject line will be around 4 words and each word is capitalized.
You will undoubtedly have a list in this communication, so be sure to use parallel structure in the
bulleted or numbered list.
-------------------------------------------------
Along with your parents, brothers, and sisters, you own a share of a growing family business with 55
employees. As the head of the Purchasing Department, you realize that the business must keep better
track of purchases. Some employees use the company purchasing order forms, but others submit sloppy
e-mails or handwritten notes that are barely legible. What's worse, you are not sure whether the
requested purchase has been authorized by the budget manager. You talk to the family management
council, and they urge you to establish a standard procedure for submitting purchase requests.
Because the business has a good Web site, you decide that purchase requests must now be downloaded
from the company intranet (http://www.lunch.com/intranet). To provide the fastest service, employees
should fill out the new purchase request form. This may be done manually or digitally. Employees must
include complete information for each requested purchase: date, quantities, catalog numbers, complete
descriptions, complete vendor mailing address and contact information, delivery requirements, and
shipping methods (usually f.o.b.). The Purchasing Department should be sent the original, and a copy
should be kept by the requesting employee. An important step in the new procedure is approval by the
budget manager on the request form. That is, employees should talk to the budget manager and get her
approval before submitting the purchase request. You think this new procedure will solve many
problems for you and for employees.
MEMO
To: Purchasing Department Staff
From: [Your Name]
Subject: New Procedure for Purchase Requests
I am writing this memo to inform all employees in the Purchasing Department about a new procedure for submitting purchase requests. The purpose of this memo is to establish a standard process that will streamline our purchasing operations and ensure better tracking of purchases.
Background:
As the head of the Purchasing Department, it has come to my attention that there are inconsistencies in how purchase requests are submitted. While some employees use the company purchasing order forms, others resort to submitting sloppy e-mails or handwritten notes that are difficult to decipher. Additionally, there is uncertainty about whether the requested purchases have been authorized by the budget manager.
Proposed Solution:
After consulting with the family management council, it has been decided that a standard procedure needs to be implemented for submitting purchase requests. To ensure efficiency and ease of access, the new procedure will require employees to download the purchase request form from our company intranet at http://www.lunch.com/intranet.
Key Guidelines:
Complete Information: Employees must provide comprehensive details for each requested purchase, including the date, quantities, catalog numbers, complete descriptions, vendor mailing address and contact information, delivery requirements, and shipping methods (usually f.o.b.).
Submission Process: Employees have the option to fill out the purchase request form manually or digitally. The original form should be sent to the Purchasing Department, while a copy should be retained by the requesting employee.
Budget Manager Approval: A crucial step in the new procedure is obtaining approval from the budget manager. Employees must consult with the budget manager and obtain her approval before submitting the purchase request.
Benefits:
We believe that implementing this new procedure will address many of the challenges faced by both the Purchasing Department and employees. It will streamline our purchasing operations, ensure better record-keeping, and provide a clear authorization process for requested purchases.
Please familiarize yourself with the new procedure and begin utilizing the standardized purchase request form for all future requests. This change will enhance efficiency and help us maintain accurate records of purchases.
If you have any questions or require further clarification, please do not hesitate to reach out to me. Thank you for your cooperation in implementing this new process.
[Your Initials]
[Your Position/Title]
[Company Name]
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You have 20 percent market share of an industry that sells 1,000 total units each year. You know that each unit contributes $2,000 to profits. If your fixed costs amount to $250,000, what is your profit or loss for the year?
(place your answer in the space below with no $ sign)
The total cost is the sum of fixed cost and variable cost. The variable cost here is $400,000. Substituting the values in the formula, the profit or loss can be calculated as -$250,000. Therefore, the answer is a loss of $250,000.
Given,
Market share = 20%
Total number of units = 1000
Profit contribution by each unit = $2000
Fixed cost = $250000
Formula to calculate the profit is,
Profit = Total revenue - Total cost
Total revenue = Price × Quantity sold
Total revenue = $2000 × 200
Total revenue = $400000
Total cost = Fixed cost + Variable cost
Variable cost = Total cost - Fixed cost
We know that,
Market share = Quantity sold ÷ Total market size
Quantity sold = Market share × Total market size
Quantity sold = 20/100 × 1000
Quantity sold = 200
Variable cost = $2000 × 200
Variable cost = $400000
Total cost = $250000 + $400000
Total cost = $650000
Profit = Total revenue - Total cost
Profit = $400000 - $650000
Profit = - $250000
Thus, the main answer is Loss of $250,000 for the year.
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Go to the University of Michigan website and collect that data on inflation expectations, current for next year (2022) and next 5 years: http://www.sca.isr.umich.edu/tables.html Assume that the economy is at capacity and that consumers' expectations about inflation for 2022 are accurate. Further, suppose that the natural real interest rate is 0.7 and the coefficient assigned to inflation, α=0.5. i. What should the federal funds rate be by the end of 2022 according to the Taylor rule? ( 10 points) ii. The Fed is expected to target an FFR =4.75 in 2023. According to inflation expectations (for the next 5 years) in the survey above and keeping the same assumptions under c)i, would such policy be contractionary or expansionary? Briefly explain. ( 10 points) EXPECTED CHANGE IN INFLATION RATES
According to the Taylor rule, the federal funds rate by the end of 2022 can be calculated using the formula: FFR = natural real interest rate + (α * inflation expectations) .
Given that the natural real interest rate is 0.7 and the coefficient assigned to inflation (α) is 0.5, we need to find the inflation expectations for 2022 from the University of Michigan website. Next, we need to apply the formula to calculate the federal funds rate. ii. To determine whether a policy with a target FFR of 4.75 in 2023 would be contractionary or expansionary, we need to consider the inflation expectations for the next 5 years. By referring to the inflation expectations data from the University of Michigan survey.
we can assess the expected change in inflation rates. Therefore, the policy with a target FFR of 4.75 in 2023 can be either expansionary or contractionary depending on the inflation expectations for the next 5 years. Remember to refer to the specific inflation expectations data from the University of Michigan survey to obtain accurate values for your calculations.
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If you have a margin account and your broker requires 40% initial margin, this means:
a. you can borrow no more than 40% of the purchase price of the stock from your broker.
b. you can borrow no more than 60% of the purchase price of the stock from your broker.
If you have a margin account and your broker requires 40% initial margin, it means you can borrow no more than 60% of the purchase price of the stock from your broker.
In a margin account, an investor can borrow funds from a broker to purchase securities. The initial margin requirement is the minimum percentage of the purchase price that the investor must contribute in cash or eligible securities. In this case, with a 40% initial margin requirement, the investor needs to provide at least 40% of the purchase price as cash or eligible securities. The remaining 60% can be borrowed from the broker.
For example, let's say an investor wants to buy $10,000 worth of stock. With a 40% initial margin requirement, the investor would need to contribute at least $4,000 (40% of $10,000) from their own funds. The remaining $6,000 (60% of $10,000) can be borrowed from the broker. This borrowing is known as buying on margin.
It's important to note that buying on margin involves risks, as the borrowed funds need to be repaid with interest, and if the value of the securities purchased declines, the investor may face a margin call, requiring additional funds to be added to the account or securities to be sold to maintain the required margin level.
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You can speculate on the depreciation of the Japanese Yen relative to the dollar by
a. buying a Yen Put, selling a Yen future
b. buying a yen put, buying a yen future
c. buying a Yen call, selling a Yen future.
d. buying a yen call, buying a yen future
You can speculate on the depreciation of the Japanese Yen relative to the dollar by buying a Yen Put, selling a Yen future or buying a Yen call, selling a Yen future. To speculate the value of Japanese yen depreciation relative to the dollar, an individual has to buy a Yen Put or Yen call, while selling a Yen future.
An individual can speculate on the depreciation of the Japanese Yen relative to the dollar by purchasing a Yen Put, selling a Yen future or purchasing a Yen call, selling a Yen future. However, buying a Yen Put or a Yen call provides the investor with the right to sell or buy yen respectively at a fixed rate. By purchasing a Yen Put, the investor gains a right to sell Yen at a predetermined price.
However, when the yen price falls, the value of the put also drops. Buying a yen call provides the investor the right to purchase yen at a fixed price. If the yen value rises, the investor benefits. Nevertheless, a rise in the yen's value leads to a decrease in the call value. Selling a Yen future is another way of speculating on the yen value. A person speculating on the depreciation of the yen would go long on the Yen future. Nevertheless, the depreciation of the yen would lead to an increase in the Yen future value.
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The design capacity for engine repair in your company is 80 buses per day. The effective capacity is 40 engines per day and the actual output is 36 engines per day. Calculate the utilization and efficiency of the operation. If the efficiency for next month is expected to be 82%, what is the expected output?
Utilization = 0.45 or 45%, Efficiency = 0.9 or 90%, Expected output = 32.8 engines per day.Utilization: Utilization refers to how much of the total capacity is actually being used. It is calculated as Actual output / Design capacity. Utilization = Actual output / Design capacity.
Therefore, Utilization = 36 engines / 80 engines = 0.45 or 45%.
Efficiency: Efficiency measures the performance of the company as compared to its maximum possible output. It is calculated as Actual output / Effective capacity.
Efficiency = Actual output / Effective capacity.
Therefore, Efficiency = 36 engines / 40 engines = 0.9 or 90%.
Expected output: Expected output can be calculated using the formula:
Expected output = Efficiency × Effective capacity = 0.82 × 40 = 32.8 engines per day.
Answer: Utilization = 0.45 or 45%, Efficiency = 0.9 or 90%, Expected output = 32.8 engines per day.
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Ace Ventura, Inc. has expected earnings of $5 per share for next year. The firm's ROE is 15% and its dividend payout ratio is 60%. Assume a discount rate of 10%. What is the present value of its growth opportunities (PVGO)?
PVGO is also known as present value of growth opportunities. It is the difference between the price of a company's stock and the "no-growth" valuation of that stock.
It can be calculated using the formula :
PVGO = P - E/R,
where P is the current stock price,
E is earnings per share, and
R is the discount rate.
In this problem, we are given E = $5 per share, R = 10%, and a dividend payout ratio of 60%.
To find P, we need to first find the "no-growth" valuation of the stock, which is calculated using the formula
P = E/R.
Thus, P = $5/0.15 = $33.33 per share.
The dividend payout ratio is the percentage of earnings that is paid out as dividends, so the retained earnings ratio is 1 - 0.6 = 0.4.
Therefore, the growth rate (g) of earnings is g = ROE × Retention Ratio = 0.15 × 0.4 = 0.06 or 6%.
Now, we can calculate the PVGO using the formula PVGO = P × g / (R - g) = $33.33 × 0.06 / (0.1 - 0.06) = $6.67.
The present value of growth opportunities (PVGO) for Ace Ventura, Inc. is $6.67.
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