The examples of cash flows from (used in) investing activities are: 1. Cash payments to acquire equity or debt instruments of other companies 2. Cash receipts from repayment of advances and loans made to other parties.
1. Cash payments to acquire equity or debt instruments of other companies: This refers to the cash outflows incurred when a company purchases equity or debt securities of other entities. It includes investments in stocks, bonds, or other financial instruments.
2. Cash receipts from repayment of advances and loans made to other parties: This represents the cash inflows received from the repayment of loans or advances provided to other parties. It includes the return of principal amounts along with any interest or fees associated with the loans.
Cash flows from investing activities are related to the acquisition and disposal of long-term assets and investments. These activities involve the purchase or sale of property, plant, and equipment, investments in other companies' securities, and lending or borrowing of funds.
Cash payments to acquire equity or debt instruments of other companies involve the company's investment in stocks, bonds, or other financial instruments issued by other entities. These investments are considered as investing activities as they involve the deployment of funds with the expectation of earning a return.
Cash receipts from repayment of advances and loans made to other parties indicate the return of funds previously lent to other entities. These cash inflows are generated when the borrowers repay the principal amounts along with any interest or fees associated with the loans.
Both of these activities are part of investing activities and are reported in the statement of cash flows to provide information about the company's investments and the utilization of its financial resources.
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Tim Horton's has estimated the daily demand curve for their new Asiana blend of coffee, a high-end blend brewed exclusively from the tears of coffee bean farmers. The demand curve is Q 100 – 4P + 7.25Y+ 1.5 PM – 4PT, where Y is the average monthly income, PM is the price of McDonald's coffee, and PT is the price of a dozen Timbits. - Which of the following is FALSE? Timbits are a complementary good The income elasticity of demand decreases as P falls dQ/dPT = 4 If Q rises from 30 to 60 as P falls from 3.50 to 2.50, arc price elasticity = -2
The FALSE statement among the following options is: The income elasticity of demand decreases as P falls Explanation: Tim Horton's has estimated the daily demand curve for their new Asiana blend of coffee.
where the demand curve is Q = 100 – 4P + 7.25Y + 1.5 PM – 4PT, whereY is the average monthly income, PM is the price of McDonald's coffee, and PT is the price of a dozen Timbits.The arc price elasticity of demand for a particular price range is calculated as: (change in quantity / average quantity) ÷ (change in price / average price)Given: When Q rises from 30 to 60 as P falls from 3.50 to 2.50, the arc price elasticity = -2.Substituting the values in the formula:(60 - 30) / ((60 + 30) / 2) ÷ (2.50 - 3.50) / ((2.50 + 3.50) / 2)= 30 / 45 × (-1) / 1= -0.67
Therefore, the value of arc price elasticity is -0.67, which is less than one, indicating that the demand for the Asiana blend of coffee is inelastic with respect to price. The income elasticity of demand measures the responsiveness of the quantity demanded of the product due to the change in the income of the consumers. It is given by: Income elasticity = % change in quantity demanded / % change in income If the income of the consumers increases, the quantity demanded of the product also increases.
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the prices that firms set are a function of the costs they incur, and these costs, in turn, depend on (check all that apply.)
The prices set by firms are influenced by the costs they incur, which depend on several factors. These factors include production costs, such as raw materials, labour, and overhead expenses, as well as the costs of research and development, marketing, and distribution.
The prices that firms set are primarily driven by the costs they incur in their operations. These costs can be categorized into various components. Production costs play a crucial role in determining prices. These costs include expenses related to raw materials, labour wages, energy, machinery, and other resources used in the production process. Higher production costs generally lead to higher prices, as firms seek to recover their expenses and maintain profitability. In addition to production costs, firms also consider other costs that influence their pricing decisions. Research and development (R&D) costs, for instance, contribute to the overall expenses incurred by firms. Investments in R&D are essential for innovation, product improvement, and staying competitive in the market. As R&D costs increase, firms may factor in these expenses when setting prices. Marketing and distribution costs are other aspects that impact pricing. Advertising, promotions, sales commissions, and distribution expenses are necessary for firms to create awareness, attract customers, and deliver products or services to the market. These costs are often included in the pricing strategy to ensure they are covered and generate sufficient revenue. External factors also come into play when determining costs and, consequently, prices. Taxes and regulations imposed by governments can directly affect a firm's expenses, such as corporate taxes, import duties, or environmental compliance costs. These factors may lead to higher costs, which firms may pass on to consumers through higher prices. Furthermore, market competition is a crucial determinant of costs and prices. In a competitive market, firms must consider the pricing strategies of their rivals. If a firm sets prices too high compared to its competitors, it may lose market share. Conversely, setting prices too low may lead to reduced profitability. Therefore, firms assess the competitive landscape and adjust their prices accordingly to remain competitive while covering their costs.
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Which one of the following has a direct effect on helping boost a company's image rating? Increasing the dividend the company pays to shareholders Increases in the S/Q rating of a company s branded footwear Reduced reject rates on branded footwear produced in the company's manufacturing plants Increases in employee compensation to levels above the industry average Shortening the time it takes to deliver orders to retail outlets
Shortening the time it takes to deliver orders to retail outlets can have a direct effect on helping boost a company's image rating.
Shortening the time it takes to deliver orders to retail outlets is crucial for boosting a company's image rating. Customers prefer retailers who deliver their purchases quickly and efficiently.
Thus, this will result in increased customer satisfaction and loyalty. Faster delivery also adds value to the company's brand image and promotes positive word-of-mouth marketing.
In addition, shorter delivery times can attract new customers who prioritize fast delivery when choosing a retailer. This, in turn, can lead to increased sales and profits for the company.
Therefore, by focusing on improving the efficiency of their delivery network, companies can significantly boost their image rating.
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In the video, McDonald's Introduction of all-day breakfast was said to be an "adjust" strategy as well as a turn around" strategy. How is this strategic action a "turn around strategy? Multiple Choice a. Offering all day breakfast was expected to improve McDonald's marginat revenue. b. Offering all-day breakfast was expected to stom McDonald's revenue decine c. Offering all-day breakfast was expected to see more coffee d. Offering all day breakfast was expected to increase sales in the Zomto Itam range e. Offering all day breakfast was expected to reduce costs by eliminating menu complexity
(B) Offering all-day breakfast as a strategic action by McDonald's was considered a "turnaround strategy" because it was expected to reverse the decline in McDonald's revenue.
When McDonald's introduced all-day breakfast, it was facing a decline in revenue. The company was experiencing a slowdown in sales, and competitors were gaining market share. By offering breakfast items throughout the day, McDonald's aimed to attract more customers and increase sales. Breakfast is a popular mealtime, and extending its availability beyond the morning hours was seen as a way to tap into a larger customer base.
This strategic move was expected to have a positive impact on McDonald's revenue by reversing the decline. By offering all-day breakfast, the company hoped to reinvigorate customer interest and loyalty, potentially leading to increased sales and a boost in overall revenue. It was a turnaround strategy because it aimed to reverse the negative trend and restore growth and profitability for McDonald's.
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Suppose that the annual interest rate is 8% in England and 12% in, Germany, and that the current spot exchange rate is £1.200/€1. If we assume that the arbitrager can borrow up to £2,000,000 in England, or its equivalent in Germany based on the current spot exchange rate, you are required to:
a). Calculate the covered interest arbitrage on the transaction (7 marks)
b). Determine the equivalent of the covered interest arbitrage in Euro terms (6 marks)
Therefore:
a) The covered interest arbitrage on the transaction is -£80,000.
b) There is no equivalent in Euro terms as the arbitrage opportunity is not profitable.
To calculate the covered interest arbitrage and its equivalent in Euro terms, we need to consider the interest rate differential and the spot exchange rate.
Given:
Interest rate in England (GBP): 8%
Interest rate in Germany (EUR): 12%
Spot exchange rate: £1 = €1.200
a) Covered Interest Arbitrage:
Step 1: Determine the potential profit from borrowing in England and investing in Germany.
Interest earned in England: 8% of £2,000,000 = £160,000
Exchange the borrowed amount to Euros: £2,000,000 * €1.200 = €2,400,000
Invest the Euros in Germany at 12% interest rate: €2,400,000 * 12% = €288,000
Step 2: Convert the Euros back to pounds using the spot exchange rate.
€288,000 / €1.200 = £240,000
Step 3: Calculate the potential profit from the covered interest arbitrage.
Profit = Interest earned in England - Interest earned in Germany
Profit = £160,000 - £240,000 = -£80,000
b) Equivalent in Euro terms:
Since the covered interest arbitrage resulted in a negative profit, there is no equivalent in Euro terms. The arbitrage opportunity does not exist or is not profitable.
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Customer loyalty programs are a type of:
Please choose the correct answer from the following choices, and then select the submit answer button.
Answer choices
a. versioning.
b. lock-in strategy.
c. bundling strategy.
d. teaser strategy.
Customer loyalty programs are a type of lock-in strategy. So, the correct option is b.
A lock-in strategy refers to a business approach aimed at creating barriers for customers to switch to competitors by providing incentives and benefits that promote customer loyalty. Customer loyalty programs are designed to reward and incentivize repeat purchases, encourage customer retention, and discourage customers from switching to other brands or providers.
By offering exclusive perks, discounts, rewards, or points accumulation systems, companies aim to build long-term relationships with their customers and create a sense of loyalty and commitment. These programs often involve membership cards, reward points, special discounts, personalized offers, and other incentives to enhance the customer experience and foster a strong bond between the customer and the company.
The goal of a lock-in strategy is to create a loyal customer base and increase customer lifetime value, ultimately benefiting the company's bottom line.
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Politic
With Jamaica celebrating its 60th year of independence, and with Barbados setting strides by removing the queen as its head of state the debate in Jamaica has heightened to remove the queen as the head of state of Jamaica. Required to Discuss, with mention of 4 functions, the role of the Governor-General in Jamaica, with specific reference to the privy council of Jamaica. Give a little introduction, Analysis, and Conclusion
Jamaica is a constitutional monarchy that has the Queen of England as its head of state. In the Jamaican constitutional system, the governor-general serves as the representative of the monarch and performs numerous functions. The discussion has heightened in Jamaica on the removal of the Queen of England as the head of state, with some citizens believing that it is long overdue.
The Governor-General is Jamaica's official representative and performs a variety of roles in Jamaica, including the following four key functions:
1. The Governor-General is responsible for ensuring that Jamaica has a functioning government by appointing the Prime Minister and other ministers to their positions.
2. The Governor-General is responsible for approving or rejecting laws passed by the Jamaican parliament.
3. The Governor-General is responsible for ensuring that Jamaica's legal system operates smoothly by appointing judges to the Jamaican courts.
4. The Governor-General is responsible for representing Jamaica on the international stage, including representing Jamaica at various international events and ceremonies.The Privy Council of Jamaica is an advisory body of the Governor-General in Jamaica. The council advises the Governor-General on certain issues relating to government and the administration of justice. While the council has no official powers, its advice is highly valued and has often been influential in shaping Jamaican public policy.
In conclusion, the Governor-General of Jamaica plays a crucial role in the Jamaican political system. The Governor-General is responsible for ensuring that Jamaica has a functioning government, that the legal system operates smoothly, and that Jamaica is well-represented on the international stage. Additionally, the Privy Council of Jamaica serves as an important advisory body to the Governor-General and plays an influential role in shaping Jamaican public policy.
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Jenna, a longtime client of yours, is employed as an architect. To keep up to date with developments in her profession, she attends continuing education seminars offered by the architecture school at State University. This year, Jenna spends $2,000 on course tuition to attend these seminars. She spends another $400 on architecture books during the year. Jenna's dependent daughter Caitlin is a senior majoring in engineering at the University of the Midwest. During the 2021 calendar year, Caitlin incurs the following expenses: $8,200 for tuition ($4,100 per semester) and $750 for books and course materials. Caitlin lives at home while attending school full-time. Jenna is married, files a joint return, and has a combined AGI with her spouse Morrie of $120,000. a. (2) Jenna's American Opportunity credit is $ 360 x. b Calculate the couple's education tax credits if their combined AGI is $162,000. 2,860 X. 2,100 X, and her lifetime learning credit is $
Jenna's American Opportunity credit is $ 360. The American Opportunity credit, as a tax credit, allows taxpayers who pay for post-secondary education to receive up to $2,500 for each eligible student's expenses.
The maximum credit is $2,500 per student, not per household. To determine the credit, the taxpayer should fill out Form 8863. In this case, Jenna paid $2,000 on her continuing education seminars this year, and thus she is eligible for $2,000 x 0.18 = $360 American Opportunity Credit.
In other words, the credit equals 18% of the first $2,000 of qualified education expenses plus 25% of the next $2,000 of qualified education expenses. The credit begins to phase out at $80,000 of modified adjusted gross income (MAGI) for single taxpayers and $160,000 for married couples filing jointly.
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Suppose you own a car assembly line in Zambia. The different parts of the car are imported from the South Africa and the assembled cars are exported back to the South Africa. a. What happens to the price of the imports when the Zambian Kwacha depreciates? b. Does your car become more or less attractive for South African consumers when the Zambian Kwacha depreciates? Explain. c. As a Zambian producer, do you think the depreciation of the kwacha is a good thing?
a. When the Zambian Kwacha depreciates, the price of the imports from South Africa will rise. (B) the car becomes less attractive to the South African consumers. (C) the depreciation of the kwacha negatively affects the Zambian producers.
a. This is because with the weakening of the kwacha, more kwacha will be needed to buy the same amount of South African Rand (ZAR), which in turn will increase the cost of the imported parts.
b. When the Zambian Kwacha depreciates, the cost of production in Zambia will increase since the prices of imported parts will increase. Consequently, the price of the assembled cars will increase. Therefore, the car becomes less attractive to the South African consumers.
c. As a Zambian producer, the depreciation of the kwacha is not a good thing. When the kwacha depreciates, the cost of importing parts from South Africa increases. As a result, the cost of production increases, leading to an increase in the price of the assembled cars. A higher price will make the cars less competitive in the South African market, reducing demand for Zambian cars. Hence, the depreciation of the kwacha negatively affects the Zambian producers.
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. It is to be between 900 and 1100 words, plus title page and bibliography or references. this is a research paper for business law.
(2) - CASE STUDY
The Windmill Motel in Hope, BC is for sale and your client is thinking about purchasing it. The business consists of 38 motel units which were built in 1938, a restaurant, service station and vehicle repair shop. The Motel is identified by a large windmill lit by a neon sign and sits adjacent to the entrance to the motel, partly on municipal property. The business has been in the seller’s family since it was built.
Employees of the Motel include 4 chamber maids, a daytime cook as well as an evening/weekend cook, and two part-time waitresses who work shifts. All employees except the 2 part-time waitresses belong to the Hotel workers Union. The front desk and bookkeeping are handled by the owner. The owner wishes to sell the Motel as he is now 85 years old and wishes to retire. The business is being sold ‘as is’, and includes all of the assets of the Motel business. These include the building of the service station, a tow truck, a hoist and various automotive tools. The restaurant’s assets include food and food products, dishes, cutlery, tables and chairs, a coffee maker, a stove, large refrigerator and freezer, and kitchen utensils. The Motel itself consists of beds, bedding, washer and dryer, towels and miscellaneous cleaning equipment and materials. The neon sign on the windmill is rented from Neon Products under a rental agreement.
REQUIRED: You are asked to identify risks that buying and owning this business will entail, and to identify the legislation and bylaws (federal, provincial and municipal) which will impact the business and its assets, as well as the purpose of such legislation.
The risks that buying and owning this business entail can be called Environmental Liability, Employment, and Labor Law, Contractual Obligations, and Financial Considerations.
Legislation and statutes that may affect the businessCompetition Act.Employment Standards Act.Employment Standards Act.Workers Compensation Act.Zoning Bylaws.Business Licensing Bylaws.Buying and operating a hotel is a very delicate investment because, in addition to having many risks, it will require compliance with many laws and intense supervision so that everything works safely and honestly. Potential buyers of a hotel should carefully research environmental and labor obligations, zoning notions, and contractual obligations.
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n) With the increase in production costs to 123.222, at what price will the market be in equilibrium again?
To calculate the equilibrium price of a good or service, the intersection point of the supply and demand curves is determined. The equilibrium price is the price at which the quantity demanded equals the quantity supplied. When production costs increase, supply decreases, resulting in a higher equilibrium price to balance the market again.
Given that the production costs have increased to 123.222, the supply curve will shift upwards from S0 to S1. The demand curve, on the other hand, remains constant at D0. This causes the equilibrium point to move from E0 to E1 as shown in the diagram below:Here, P1 is the new equilibrium price where the quantity demanded (Q1) equals the quantity supplied (Q1). Therefore, the market will be in equilibrium again at a price of 123.222 units.
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calculate the required rate of return for mudd enterprises assuming that investors expect a 3.4% rate of inflation in the future. the real risk-free rate is 2.0%, and the market risk premium is 8.0%. mudd has a beta of 2.0, and its realized rate of return has averaged 14.5% over the past 5 years. round your answer to two decimal places.
The required rate of return for Mudd Enterprises can be calculated using the following formula:$$R_{E} = R_{F} + β(R_{M} - R_{F})$$Where, $R_{E}$ is the required rate of return, $R_{F}$ is the real risk-free rate, β is the Beta of Mudd Enterprises, $R_{M}$ is the market risk premium.
The real risk-free rate is given as 2.0%.The expected rate of inflation is 3.4%. Therefore, the nominal risk-free rate is $$R_{F} = R_{r} + R_{i} = 2.0\% + 3.4\% = 5.4\%$$The market risk premium is given as 8.0%.The beta of Mudd Enterprises is 2.0.The required rate of return is calculated using the above formula.$$R_{E} = 5.4\% + 2.0\times 8.0\%$$$$\Rightarrow R_{E} = 21.4\%$$Therefore, the required rate of return for Mudd Enterprises is 21.4%. Hence, the answer is 21.4%.
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Use the following information to answer the next eight questions. Market for a new hardcover book: Demand: Qa= 325 - 8P Supply: Q== -60 + 3P What would be the quantity demanded if a price ceiling is set at $30?
1) 90
2)165
3)85
4)305
5)265
option 1 (90) is the correct answer.
The formula for a price ceiling is P_max < P_eq, where P_max is the maximum price that can be charged and P_eq is the equilibrium price. In this case, the equilibrium price is where the supply and demand curves intersect, so we can solve for that first:Qa = Qs325 - 8P = -60 + 3P388 = 11P35.27 = P_eqNow we need to find the quantity demanded at a maximum price of $30. Since the price is below the equilibrium price, the quantity demanded will be greater than the quantity supplied, so the quantity demanded will be equal to the quantity supplied:Qd = Qs = -60 + 3PQd = -60 + 3(30)Qd = -60 + 90Qd = 30Thus, the quantity demanded if a price ceiling is set at $30 is 30.
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Is the following statement true or false? Explain your answer.
The rate of interest that you are paying on a mortgage loan is 3.5 per cent per year and the real rate of interest on your mortage loan is 2.5 per cent. The inflation is thus running at 6 per cent per year.
The statement is true. A mortgage loan is a type of secured loan that is usually tied to the property that it's intended to purchase. The rate of interest you are paying on your mortgage loan is 3.5 percent per year.
This means that you'll be paying the lender a certain amount of interest each year on the total amount you've borrowed (the principal).If the real rate of interest on your mortgage loan is 2.5 percent, then it means that the nominal rate of interest has been adjusted for inflation. This is also called the inflation rate of interest, which represents the real cost of borrowing money.
The inflation rate is running at 6 per cent per year. This means that prices are increasing by 6% per year on average. The real rate of interest on your mortgage loan is 2.5 per cent. So, if you subtract the inflation rate from the nominal rate, you get the real rate of interest:3.5% - 6% = -2.5%Thus, the real rate of interest on your mortgage loan is negative, which means that you're paying less in real terms than you would if the rate of interest were not adjusted for inflation.
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Moving to another question will save this response. Question 19 of estion 19 1 points S Lenovo runs a plant that produces 3,000 tablets per day. As Lenovo gains experience in producing tablets, it learns how to do it better. Workers learn shortcuts and become more familiar with th equipment. With practice, the work becomes better organized, and Lenovo finds better equipment and production processes. With higher volume, Lenovo becomes more efficient and gains eco of scale. As a result, the average cost tends to decrease with accumulated production experience. This drop in the average cost with accumulated production experience is called: a. Experience Elasticity Curve O b. Learning Curve O c. Long-term Production Elasticity Curve O d. Learning Elasticity Curve Moving to another question will save this response.
Lenovo runs a plant that produces 3,000 tablets per day. As Lenovo gains experience in producing tablets, it learns how to do it better.
Workers learn shortcuts and become more familiar with the equipment. With practice, the work becomes better organized, and Lenovo finds better equipment and production processes. With higher volume, Lenovo becomes more efficient and gains economies of scale. As a result, the average cost tends to decrease with accumulated production experience.
This drop in the average cost with accumulated production experience is called Learning Curve.Learning Curve refers to the drop in the average cost with accumulated production experience. The more production experience is accumulated, the more efficient workers and processes become, thus leading to a decrease in the average cost per unit of production.
In other words, the learning curve indicates how much improvement can be achieved over time as workers gain more experience in producing goods or services. It can be used to estimate the cost and time required to produce new products and services. Lenovo, by producing 3,000 tablets per day, gains experience, improves the processes, and lowers the average cost per unit.
Lenovo's experience in producing tablets results in increased efficiency and productivity, which, in turn, leads to cost savings and higher profits. Lenovo has an advantage over competitors who have not been in the industry for a long time, as they can benefit from economies of scale and learning curves.
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Identify the major reasons why managing organizational behaviour will be challenging during changing times. Briefly identify the major drivers of change in the current work environment. 2. Distinguish between informal and formal organizations. Are they complementary or contradictory? Provide an example of a business firm as an open system. 3. What technological changes have been taking place in virtually all work environments and what impact will they have on workers? 4. How could a manager use self-fulfilling prophecies to improve a work group? Identify the most common errors that affect the attribution process and briefly discuss the implications for managers. 5. Briefly explain the ABC model and provide an example of each model element. Identify several work attitudes and indicate the importance of positive work attitudes.
Managing organizational behavior can be challenging during changing times due to various reasons. One major challenge is the resistance to change among employees, as people tend to be comfortable with familiar routines and may resist adapting to new ways of working.
Another challenge is the need to effectively communicate and align the organization's vision, goals, and values during periods of change to maintain employee engagement and commitment. Additionally, managing diverse workforce dynamics, such as generational differences and cultural diversity, can present challenges in promoting collaboration and understanding within the organization. The drivers of change in the current work environment include technological advancements, globalization, changing demographics, and evolving customer expectations. Informal and formal organizations are two different aspects of an organizational structure. Formal organizations are the official structures and processes defined by the organization, including hierarchies, job roles, and reporting relationships. They are based on rules, regulations, and formal authority. Informal organizations, on the other hand, emerge spontaneously within the formal structure and are based on social relationships, informal communication channels, and personal networks. While formal organizations provide structure and stability, informal organizations can play a crucial role in facilitating communication, knowledge sharing, and social support among employees.
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. Answer the questions below about ALM. 1) The market value and duration of assets are 100 billion won and 5 years, respectively, and the market value and duration of liabilities are respectively What is the duration gap (DGAPK) of this bank when 80 billion is two years? 2) When the current market interest rate is 10% and the interest rate is expected to rise by 1 percentage point over the next year, this bank What will be the change in the net asset value of 3) What strategy can this bank take in the above situation? Done
1) The duration gap (DGAPK) of this bank when 80 billion is two years is 3 years.The duration gap (DGAPK) is the difference between the durations of assets and liabilities. Given,Market value and duration of assets= 100 billion won and 5 yearsMarket value of liabilities= 80 billion wonDuration of liabilities= 2 yearsDuration of assets - Duration of liabilities = DGAPKDAPK - DLiab = DGAPK5 - 2 = 3Therefore, the duration gap (DGAPK) of this bank when 80 billion is two years is 3 years.2) When the current market interest rate is 10% and the interest rate is expected to rise by 1 percentage point over the next year, the change in the net asset value of this bank can be calculated using the following formula:Change in net asset value = - DGAPK x change in interest rate x value of assetsGiven,Current interest rate (i) = 10%Expected interest rate (i1) = 10% + 1% = 11%Value of assets (V) = 100 billionWonTherefore, the Change in net asset value= - 3 x 1% x 100 billionWon= - 3 billionWonHence, the change in the net asset value of this bank would be - 3 billionWon.3) This bank can adopt various strategies to address the given situation, such as:Invest in short-term assets: The bank can invest its assets in short-term assets such as 2-3 year bonds that will mature when the liabilities come due. This will help to match the maturity of assets and liabilities.Reduce DGAPK: The bank can reduce the duration gap by changing the maturities of its assets and liabilities. It can increase the maturity of liabilities or decrease the maturity of assets. This will help to reduce the impact of interest rate changes on the net asset value.
The following table1 shows a monopolist’s demand curve and cost information for the production of its good. What quantity will it produce to maximize profit? (HINT: You have to find MR = MC!)
Quantity Price per Unit Total Cost
10 $ 20 $ 120
20 $ 18 $ 260
30 $ 17 $ 410
40 $ 16.50 $ 570
50 $ 16 $ 750
The monopolist will produce a quantity of 30 units to maximize profit because that is where Marginal Revenue (MR) equals Marginal Cost (MC).
To determine the quantity that maximizes profit for a monopolist, we need to find the point where Marginal Revenue (MR) is equal to Marginal Cost (MC). In this scenario, we can observe the price per unit, total cost, and corresponding quantities.
By examining the given data, we can calculate the marginal cost (MC) by finding the change in total cost divided by the change in quantity. For example, between quantities 20 and 30, the change in total cost is $150 ($410 - $260), and the change in quantity is 10 units. Therefore, the marginal cost is $15 ($150 / 10).
Next, we need to determine the marginal revenue (MR). In a monopolistic setting, the marginal revenue is equal to the price per unit. Looking at the given data, the marginal revenue is $18 at a quantity of 20 units and decreases to $17 at a quantity of 30 units.
We can see that at a quantity of 30 units, the marginal cost ($15) matches the marginal revenue ($17), indicating that this quantity will maximize profit for the monopolist. Therefore, the monopolist will produce 30 units to maximize their profit.
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The Bucks Sdn Bhd produces clear syringes for hospitals in a process that starts in the Cast Department. Data relating to the department's operations is of below: Beginning work in process: Units in process Materials percentage of completion Conversion percentage of completion 200 80% 40% Units started into production 5,00 0 ? 960 100 Units completed and transferred out Normal Losses Abnormal Losses Ending work in process: Units in process Materials percentage of completion Conversion percentage of completion 400 40% 25% Normal and abnormal losses are identified at the end of the production process. The Bucks uses the FIFO methods in its process costing system. Cost data: Work in process inventory, July 1: Materials cost Conversion cost. Cost added during the month: Materials cost Conversion cost. $8.500 $4.900 $139.400 $244.200
FIFO stands for "First-In-First-Out". It is one of the most common methods used in the process costing system. It is used by Bucks Sdn Bhd to compute the cost of production of clear syringes for hospitals. Below is the calculation of cost: Beginning work in process:
Units in process
= 200Units started into production
= 5,000Total units to account for
= 5,200Units completed and transferred out
= 4,760Ending work in process: Units in process
= 400The number of units transferred out of production is calculated by subtracting the ending WIP from the total units to account for: 5,200 – 400
= 4,800Units in beginning WIP will have costs incurred in the previous period. Costs to be accounted for in the production process include costs incurred in the current period, which are the beginning WIP costs plus the total costs incurred in the current period. Therefore, the costs to be accounted for are: Beginning WIP:
Materials cost = $8,500Conversion cost
= $4,900Current Period: Materials cost
= $139,400Conversion cost
= $244,200Total costs to account for:
Materials cost = $147,900 Conversion cost
= $249,100Cost per equivalent unit: Materials cost per equivalent unit
= Total materials cost / Equivalent units of production
= $147,900 / 4,960
= $29.77Conversion cost per equivalent unit
= Total conversion cost / Equivalent units of production
= $249,100 / 4,960 = $50.18The total cost of production
= Cost per equivalent unit x Number of equivalent units produced Total cost of materials
= $29.77 x 4,760 = $141,995.20Total cost of conversion
= $50.18 x 4,760 = $238,972.80Therefore, the cost of production for clear syringes is $141,995.20 + $238,972.80
= $380,968.
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In our lecture, we reviewed Hellmann's' focus on Quality and their efforts in exceeding Customers' expectations, following a prior Warehousing, Distribution, and Logistics Service Provider's poor performance. Do you agree with Hellmann's solutions and what are your thoughts in regards to the following Quality themes?
Customer needs & wants: What’s the difference?
Design a product or service that meets or exceeds customer wants
Design processes that facilitate doing the job right the first time
Keep track of results: Monitor (real-time, reporting, business reviews)
Extend these concepts throughout the supply chain: Where else could Hellmann help these customers?
Top management must be involved and committed: How important is this?
By identifying customer needs and wants, designing products and services that exceed customer expectations, designing processes that facilitate doing the job right the first time, keeping track of results, extending concepts throughout the supply chain, and ensuring top management is committed to quality improvement initiatives, Hellmann's has set itself apart from other logistics providers and has created a reputation for excellence.
Hellmann's focus on quality is a crucial aspect of managing a business. This is because when a company meets or exceeds customers' expectations, they are more likely to return and spread the word to their friends and family. Therefore, customer needs should always be a top priority for management.
Customer Needs: The distinction between customer needs and wants is significant. Customer needs are essential requirements that must be met to satisfy the customer and achieve success. On the other hand, customer wants are not necessary requirements but rather desires, which may or may not be met by the company.
Hellmann's response to the distribution provider's poor performance was exceptional. The company identified the needs of its clients and ensured that those needs were met. Hellmann's solution is critical to customer satisfaction. By exceeding their expectations, Hellmann's not only gained customer loyalty but also created a reputation for reliability.
Designing a product or service that meets or exceeds customer wants: Hellmann's solution has also been successful in developing a product or service that exceeds customer desires. This is because Hellmann's focuses on the customer and what they want from their logistics provider.
By providing tailored solutions that meet the unique needs of their customers, Hellmann's has set itself apart from other logistics providers.
Designing processes that facilitate doing the job right the first time: Hellmann's has set itself apart from other logistics providers by ensuring that its processes facilitate doing the job right the first time. This is because when the job is done correctly, it is less likely to result in errors or customer dissatisfaction.
Hellmann's has implemented several quality control measures to ensure that it delivers high-quality services. By ensuring that everything is done correctly the first time, Hellmann's has created a reputation for excellence in the logistics industry.
Keeping track of results: Hellmann's has been successful in keeping track of results through real-time monitoring, reporting, and business reviews. This ensures that they can address any issues that arise and make changes where necessary. By keeping track of results, Hellmann's can identify areas that require improvement and implement changes to address those issues.
Extending these concepts throughout the supply chain: Hellmann's should extend these concepts throughout the supply chain to help customers in other areas. This will allow them to identify and address issues that arise in the supply chain, ensuring that everything runs smoothly.
Hellmann's can do this by partnering with other logistics providers to ensure that all aspects of the supply chain are working seamlessly. This will help ensure customer satisfaction and enhance Hellmann's reputation in the industry.
Top management must be involved and committed to quality improvement initiatives. This is because management sets the tone for the entire organization. When management is involved in quality improvement initiatives, it shows that they are committed to meeting customers' needs and exceeding their expectations. This also ensures that quality improvement initiatives are given the resources necessary to succeed. In conclusion, Hellmann's focus on quality is essential for success.
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Cori's Corporation has an equity value of $13,655. Long-term debt is $9,100. Net working capital, other than cash, is $3,720. Fixed assets are $18,280 and current liabilities are $1,990. a. How much cash does the company have? (Do not round intermediate calculations.) b. What is the value of the current assets? (Do not round intermediate calculations.) a. Cash b. Current assets
How much cash does the company have? (Do not round intermediate calculations.)b. What is the value of the current assets? (Do not round intermediate calculations.)Solution:a) To calculate the amount of cash a company has, we will use the balance sheet equation.
Total assets = Total liabilities + EquityRearranging this equation,Total assets - Total liabilities = EquitySince we are given equity, total liabilities, and all assets except cash, we can calculate the amount of cash as follows:Total assets = Equity + Total liabilitiesCash = Total assets - (Fixed assets + Other current assets + Current liabilities)Cash = $13,655 - ($18,280 + $3,720 + $1,990)
Cash = $(9,335)Therefore, the company has $9,335 cash.b) To calculate the value of current assets, we first need to find the value of other current assets.Other current assets = Total assets - (Cash + Fixed assets + Current liabilities)Other current assets = $46,405 - ($9,335 + $18,280 + $1,990)Other current assets = $16,800.
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Identify the ‘6 areas of sponsorship’ and provide an example of
each.
Sponsorship is one of the most significant sources of revenue for organizations today. A business supports an event, a non-profit organization, or an activity to generate goodwill, build brand recognition, and acquire new customers.
Sponsorship comes in several different forms, and each type of sponsorship provides specific benefits to the sponsor. Here are the six areas of sponsorship along with an example of each:Sports SponsorshipSports sponsorship is the most traditional type of sponsorship.
Sports sponsorship includes all types of sports, ranging from regional to international sports events. Examples of sports sponsorships include Coca-Cola sponsoring the Olympic Games, Nike sponsoring soccer teams, and Gatorade sponsoring a basketball team.
Entertainment Sponsorship Entertainment sponsorships are where businesses sponsor events such as concerts, movie premieres, or award ceremonies. For example, AT&T sponsors the Oscars, while American Express sponsors music festivals and concerts. Cause-Related Sponsorship Cause-related sponsorship is where businesses support non-profit organizations or social causes such as poverty reduction, education, and healthcare.
An example of cause-related sponsorship includes Bank of America's partnership with (RED) to fight against AIDS. Corporate Sponsorship Corporate sponsorship is where businesses sponsor an event or an activity to increase brand recognition and improve their image.
For example, a company might sponsor a charity event to show their commitment to social responsibility or sponsor a trade show to improve their brand recognition. Educational Sponsorship Educational sponsorships are where businesses sponsor educational programs or conferences to increase their brand awareness. For example, Intel sponsors technology conferences to build their brand recognition and support the growth of the technology industry.
Media Sponsorship Media sponsorship is where businesses sponsor media events such as television programs, magazines, or newspapers.
For example, Rolex sponsors the Wimbledon tennis tournament to support the growth of the sport and increase their brand recognition.
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Suppose a closed economy with no government spending which in equilibrium is producing an output and income of 2300. Suppose also that the marginal propensity to consume is 0.80, and that, if at full employment, the economy would produce an output and income of 3750. By how much would the government need to cut taxes (T) to bring the economy to full employment? (round your answer to the nearest whole value)
In the given scenario, a closed economy with no government spending is in equilibrium and is producing an output and income of 2300. The marginal propensity to consume is 0.80, and if the economy was at full employment, it would produce an output and income of 3750.
We are required to determine how much the government needs to cut taxes (T) to bring the economy to full employment. To determine how much the government needs to cut taxes to bring the economy to full employment, we can use the following formula:
ΔY/ΔT = (1 - MPC) × (1/ MPS) where
ΔY = change in output
ΔT = change in taxes
MPC = marginal propensity to consume
MPS = marginal propensity to save.
In the given scenario,
ΔY = 3750 - 2300
= 1450
MPC = 0.80
MPS = 0.20
Plugging in the values in the formula:
ΔY/ΔT
= (1 - MPC) × (1/ MPS)1450/ΔT
= (1 - 0.80) × (1/0.20)1450/ΔT
= 0.20 × 5ΔT
= 1450/1
= 1450
The government would need to cut taxes by 1450 to bring the economy to full employment.
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A weak Australian dollar will 2 a. force Australian exporters to raise their foreign currency prices b. enable Australian importers to reduce their dollar costs c. enable Australian exporters to improve their profit margins d. cost Australian exporters market share abroad e. not affect domestic only producers and sellers
A weak Australian dollar can have several impacts on the economy and businesses in Australia. Here are the possible effects:
a. Force Australian exporters to raise their foreign currency prices: A weak Australian dollar can make Australian exports more expensive for foreign buyers, as they will have to pay more in Australian dollars to purchase the same goods. This can make it difficult for Australian exporters to compete with foreign exporters, and they may need to raise their prices to remain competitive.
b. Enable Australian importers to reduce their dollar costs: On the other hand, a weak Australian dollar can make imported goods cheaper for Australian buyers, as they will be able to purchase them with fewer Australian dollars. This can benefit Australian importers by reducing their costs and potentially increasing their profit margins.
c. Enable Australian exporters to improve their profit margins: As mentioned above, a weak Australian dollar can make Australian exports more expensive for foreign buyers, but it can also increase the value of Australian exporters' revenue when it is converted into other currencies. This can improve their profit margins, especially if they are able to pass on the higher export prices to foreign buyers.
d. Cost Australian exporters market share abroad: A weak Australian dollar can make it more difficult for Australian exporters to compete with foreign exporters in foreign markets, and this can lead to a loss of market share.
e. Not affect domestic only producers and sellers: It's important to note that a weak Australian dollar can have different effects on domestic and foreign producers and sellers. While it may be a benefit for some domestic importers, it can be a disadvantage for others, such as domestic exporters who may struggle to compete with foreign exporters. Additionally, a weak Australian dollar can affect the prices of imported goods, which can impact domestic producers and sellers who rely on those goods as inputs or components.
Overall, a weak Australian dollar can have both positive and negative impacts on the Australian economy and businesses, and it's important to consider these factors when analyzing its effects.
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Consider a simultaneous-choice game in which the principal can choose to delegate (D) or centralise (C) and a worker can opt for either low (L) or high (H) effort. The payoffs are (1, 2) if the choices are (D, L) to the principal and the agent, respectively. The payoffs are (3, 4) if the choices are (C, H). If either (C, L) or (D, H) are chosen, the payoffs are O to both players. If in the mixed strategy equilibrium, the principal plays D with probabilty a and the worker plays L with probability b, what is outcome in the mixed strategy equilibrium? O a = 3/4; b = 2/3 O None of the other answers are correct. O a 2/3; b = 3/4 O a 1/3; b = 1/2 O a = 1/2; b = 1/3
In the statement, a = 2/3 and the outcome in the mixed strategy equilibrium is (2/3, 7/9). Therefore, the correct option is O a = 2/3; b = 7/9.
Mixed strategy equilibrium: In game theory, mixed strategy equilibria are equilibria that include randomness. Players choose a mixed strategy when none of their available pure strategies have a higher expected payoff than the others. A mixed strategy creates a probability distribution over available actions. In the simultaneous-choice game,
we have the following strategies and outcomes: If the principal plays D with probability a and the worker plays L with probability b, then the expected payoff to the principal is 1a + 0(1 - a - b) + 0b = a,
and the expected payoff to the worker is 0a + 2(1 - a - b) + 4b = 2 - 2a + 2b.
Therefore, (a, 2 - 2a + 2b) is the outcome when the principal plays D and the worker plays L.
The expected payoff to the principal is 0a + 3(1 - a - b) + 0b = 3 - 3a - 3b, and the expected payoff to the worker is 0a + 0(1 - a - b) + 4b = 4b.
Therefore, (3 - 3a - 3b, 4b) is the outcome when the principal plays C and the worker plays H.
If the principal plays D and the worker plays H or the principal plays C and the worker plays L, the payoffs to both players are O. The principal is indifferent between delegating and centralizing when 3 - 3a - 3b = a or a = 3/4.
Similarly, the worker is indifferent between low and high effort when 2 - 2a + 2b = 4b or a = 1/2 + b.
Substituting this expression for a in the first equation,
we get 2 - 4b = 3/2 or b = 1/6.
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Just war doctrine currently consists of which two key principles?
The two key principles of the just war doctrine are jus ad bellum (the right to go to war) and jus in bello (conduct during war).
The just war doctrine, also known as the theory of just war, comprises two main principles: jus ad bellum and jus in bello. Jus ad bellum refers to the criteria that determine whether a nation is morally justified in resorting to war. These criteria include just cause, legitimate authority, right intention, probability of success, proportionality, and last resort. Just cause implies that a war must have a morally acceptable reason, such as self-defense or defense of others. Legitimate authority suggests that only duly constituted authorities should have the power to declare war. Right intention necessitates that the objective of war should be to establish a just peace rather than promote selfish interests. Probability of success asserts that there must be a reasonable chance of achieving the desired outcome. Proportionality requires that the anticipated benefits of the war should outweigh the expected harm. Lastly, the principle of last resort emphasizes that all peaceful alternatives must have been exhausted before resorting to armed conflict.
Jus in bello, on the other hand, governs the conduct of parties engaged in warfare. It sets forth ethical guidelines that should be followed during the course of armed conflict. This principle emphasizes the need for proportionality and discrimination in the use of force.
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Valvoline Instant oil change Manager at Farmingdale, NY has videotaped 20 different auto mechanic oil-change’s to observe the number of mistakes being made. Eight transactions had no mistakes, five had one mistake, five had two mistakes, and two had three mistakes. Compute Upper and lower control limits at the 95% confidence level. ( Z =1.96) (Hint: c chart)
Upper and lower control limits at the 95% confidence level are 4.11 and 0 respectively.
Given the information that the Valvoline Instant oil change Manager at Farmingdale, NY has videotaped 20 different auto mechanic oil-change’s to observe the number of mistakes being made. Eight transactions had no mistakes, five had one mistake, five had two mistakes, and two had three mistakes.
Lower control limit (LCL) is computed by:
LCL = c - 3 * sqrt(c)
Where c is the number of mistakes divided by the total number of oil changes.
Upper control limit (UCL) is computed by:
UCL = c + 3 * sqrt(c)
Where c is the number of mistakes divided by the total number of oil changes.
Here is the computation of the Upper and lower control limits at the 95% confidence level:
Total Number of Oil Changes = 20
Number of mistakes = 1*5 + 2*5 + 3*2
= 5 + 10 + 6 = 21
c = Number of mistakes / Total Number of Oil Changes
= 21 / 20
= 1.05
Since the c chart is a counting chart, the Standard Deviation (σ) equals the square root of the average number of mistakes per unit.
Let's calculate the Standard Deviation (σ):
σ = sqrt[c]
= sqrt[1.05]
= 1.02
Hence, Lower control limit (LCL) = c - 3 * sqrt(c)
= 1.05 - 3 * 1.02
= -2.01
(As it is not possible to have a negative value of LCL, it should be taken as 0)
Therefore, Lower control limit (LCL) at the 95% confidence level = 0
Upper control limit (UCL) = c + 3 * sqrt(c)= 1.05 + 3 * 1.02= 4.11
Therefore, Upper control limit (UCL) at the 95% confidence level = 4.11.
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In the short run, if a firm operates, it earns a profit of $500. The fixed costs of the firm are $100. This firm has a producer surplus of, O $400 $600 $500 O Not enough information is given.
In the short run, the firm has a producer surplus of $400.
Producer surplus represents the difference between the price at which a firm is willing to supply a product and the price at which it actually sells the product. It is a measure of the firm's profitability and captures the benefit or surplus that the firm receives from producing and selling its goods or services.
In this case, the firm's profit is given as $500, which represents the total revenue minus the total variable costs. Fixed costs, on the other hand, do not affect the short-run profit as they are incurred regardless of the level of production. Therefore, the producer surplus is equal to the firm's profit, which is $500, minus the fixed costs of $100. This gives a producer surplus of $400, indicating the additional benefit or surplus generated by the firm's operations in the short run.
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Blossom Company has a stock portfolio valued at $8,300. Its cost was $6,200. If the Fair Value Adjustment account has a debit balance of $520, prepare the journal entry at year-end.
The stock portfolio's fair value adjustment account has a debit balance of $520. The cost of the portfolio is $6,200. The portfolio's present fair value is $8,300.
We need to calculate the unrealized gain on the stock portfolio. Unrealized gain on the stock portfolio can be calculated as:
Unrealized gain = fair value of the stock portfolio - cost basis= $8,300 - $6,200= $2,100
Therefore, the unrealized gain on the stock portfolio is $2,100.
Now, we can prepare the journal entry at year-end to record the unrealized gain on the stock portfolio and to adjust the fair value of the portfolio:
Journal entry at year-end will be:
Investment in stock portfolio $2,100
Fair value adjustment account $2,100
Note: If the fair value adjustment account has a debit balance, it indicates that the fair value of the portfolio is more than its cost. The unrealized gain will be credited to the fair value adjustment account.
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Calculate the net pay for the following employee. Show all calculations. Jodi Wheatley is a 38 year old employee in Manitoba. She is paid an annual salary of $35,000 on a semi-monthly basis, and vacation at 6% is accrued. In addition to the salary, she receives a car allowance of $120.00 per month. For this pay period, she is also receiving 6 hours of overtime pay. Overtime is paid at 1.5 times for any hours worked in excess of 37.5 hours per week. Jodi has a company cell phone and the personal portion, worth $35 per month, is paid by her employer. Deductions for Jodi include $50.00 per pay for RRSP's, $21.50 per month for union dues and $5 per pay for the company's "social fund". There is also a garnishment order against Jodi, calculated as 15% of gross pay less statutory deductions. Based on Jodi's tax exemption codes (both 2 for Federal and Manitoba), the combined Federal and Provincial tax rate is 17.04%. The pay date is February 28, 2019.
The net pay for Jodi Wheatley for the given pay period can be calculated as follows:
Salary per annum: $35,000Salary per semi-month: $35,000/24 = $1,458.33
Car allowance: $120.00Vacation at 6%: ($35,000 x 6%) / 24 = $87.50Total earnings: $1,665.83
Overtime pay: For 6 hours worked in excess of 37.5 hours per week, the regular rate is 1.5 times the hourly rate, i.e. 1.5 x $18.53 = $27.80Overtime pay: $27.80 x 6 = $166.80
Total b with overtime pay: $1,832.63Deductions:RRSP: $50.00Union dues: $21.50Company's "social fund": $5.00Total statutory deductions: $76.50
Gross pay: $1,832.63 - $76.50 = $1,756.13Garnishment order: 15% of gross pay less statutory deductions= 15% of $1,679.63 = $251.94Net pay: Gross pay - statutory deductions - garnishment order - income tax
Income tax = (federal tax rate + provincial tax rate) x taxable incomeTaxable income:
Gross pay - statutory deductions - garnishment orderFederal tax rate: 15% - 2 exemption codes = 13%
Provincial tax rate: 4.04% - 2 exemption codes = 2.04%Combined Federal and Provincial tax rate: 13% + 2.04% = 15.04%Taxable income: $1,679.63
Income tax: 15.04% x $1,679.63 = $252.74Net pay: $1,756.13 - $76.50 - $251.94 - $252.74 = $1,174.95Therefore, Jodi Wheatley's net pay for the given pay period is $1,174.95.
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