A dominant strategy is a strategy that results in the highest payoff to a player regardless of the opponent's action.
In game theory, the dominating strategy is a situation in which one player has a better strategy regardless of how the other players act. The Nash Equilibrium occurs when everyone acts as well they can while simultaneously taking into account what their rivals are doing as best they can. According to game theory, the dominating strategy is the best course of action for a player regardless of how other players react. When both players make the greatest plays they can while also considering their opponent's actions, the game is said to be in a Nash equilibrium.
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(a) Accounting is being used by many individuals around the country for decision-making. Explain in detail, using relevant examples, any FIVE (5) users of accounting information. (b) What are the 5 users of accounting information?
(a) Accounting information is used by a variety of individuals for decision-making purposes. The five main users of accounting information are: Investors, Creditors, Managers, Regulators, and Employees.
1. Investors: Investors use accounting information to make informed decisions about where to invest their money. For example, an investor may use financial statements to compare the profitability and financial health of different companies before deciding which one to invest in.
2. Creditors: Creditors use accounting information to determine the creditworthiness of a company. For example, a bank may use a company's financial statements to determine whether or not to approve a loan.
3. Managers: Managers use accounting information to make decisions about the operation of a company. For example, a manager may use financial statements to determine which products are most profitable and which ones should be discontinued.
4. Regulators: Regulators use accounting information to ensure that companies are following the law and adhering to accounting standards. For example, the Securities and Exchange Commission (SEC) uses accounting information to ensure that companies are accurately reporting their financial information to investors.
5. Employees: Employees use accounting information to make decisions about their employment. For example, an employee may use financial statements to determine the financial health of their company and whether or not they should stay with the company or look for a new job.
(b) The five main users of accounting information are investors, creditors, managers, regulators, and employees.
Each of these users relies on accounting information to make informed decisions about a company.
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Evaluate a KSA company and their processes of strategy execution.1- How does the strategy developed in the strategic planning processes translate into action for this company? Consider the role of capital expenditure budgets, operating plans, and performance management systems.2- What role do resources, processes, motivation, play in strategy execution in this company and what stands in the way?3- How does this company's structure and management system promote the effective implementation of the company's strategy?4- What specific organizational capability should the company develop to support implementation?
The process of strategy execution in a KSA company involves translating the strategic plan into action, managing resources and processes, motivating employees, and developing organizational capabilities to support implementation.
Each of these factors plays an important role in ensuring the successful execution of the company's strategy.
1. The strategy developed in the strategic planning process is translated into action through the use of capital expenditure budgets, operating plans, and performance management systems. Capital expenditure budgets allocate resources for long-term investments, while operating plans outline the day-to-day activities required to achieve the company's goals. Performance management systems are used to measure and evaluate the company's progress toward its strategic objectives.
2. Resources, processes, and motivation all play important roles in strategy execution. Resources are required to implement the company's strategy, and processes must be managed effectively to ensure that resources are used efficiently. Motivation is also important, as employees must be motivated to work toward the company's strategic objectives. However, there are also potential obstacles to strategy execution, such as resource constraints, organizational resistance, and competing priorities.
3. The company's structure and management system are designed to promote the effective implementation of its strategy. This may include the use of cross-functional teams, a strong corporate culture, and clear lines of accountability. The company's structure and management system should also be aligned with its strategic objectives, in order to ensure that everyone is working toward the same goals.
4. In order to support the implementation of its strategy, the company should develop specific organizational capabilities. This may include building a strong brand, developing innovative products or services, or creating a customer-centric culture. By developing these capabilities, the company will be better positioned to execute its strategy and achieve its long-term goals.
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lber Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped, $154,000 of the fixed costs allocated to that division could be eliminated. The impact on Valber’s operating income from eliminating the phone division would be: Desktops Laptops Tablets Phones Sales $ 368,000 $ 883,500 $ 706,000 $ 979,000 Variable costs 205,000 639,000 532,000 799,000 Contribution margin 163,000 244,500 174,000 180,000 Fixed costs 75,200 178,300 142,800 199,000 Net income (loss) 87,800 66,200 31,200 (19,000)
The impact on Valber's operating income from eliminating the phone division would be an increase of $135,000.
This is calculated by taking the contribution margin of the phone division ($180,000) and subtracting the fixed costs that could be eliminated ($154,000) and the net loss from the phone division ($19,000).
1. Calculate the contribution margin of the phone division:
Sales - Variable costs = Contribution margin
$979,000 - $799,000 = $180,000
2. Calculate the fixed costs that could be eliminated if the phone division is dropped:
$154,000
3. Calculate the net loss from the phone division:
Contribution margin - Fixed costs = Net income (loss)
$180,000 - $199,000 = ($19,000)
4. Calculate the impact on operating income from eliminating the phone division:
Contribution margin - Fixed costs that could be eliminated - Net loss from phone division = Impact on operating income
$180,000 - $154,000 - ($19,000) = $135,000
Therefore, from eliminating the phone division the impact on Valber's operating income would be an increase of $135,000.
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Modern portfolio theory concerns the construction of an investment portfolio. In other words, it refers to the combination of financial products invested and possessed by an investor. Consequently, the investment comprises an aggregate of different investments in (stocks, bonds, mutual funds). Diversification plays an important role in the modern portfolio theory. ABC company is planning to invest in stocks and mutual funds. To encourage a diversified portfolio, the board of directors has placed limits on the amount that can be committed to any one type of investment. ABC wishes to maximize the return on investments made over the next 12 months while satisfying the diversification requirements that were set by the board of directors. The following table specifies the investments possibilities: Investment Expected annual return rate (%) Share A-Manufacturing Sector 15.4 Share B- Manufacturing Sector 19.2 Share C-food and beverage sector 18.7 Share D-food and beverage sector 13.5 Mutual Fund E 17.8 Mutual Fund Z 16.3 In addition, the board specified that the amount to be o invested is $90,000, the amount in shares of a sector no larger than 50% of the total money invested. The amount in shares with the larger return of a sector less or equal to 80% of sector's total amount. The amount in manufacturing company B less than or equal to 10% of the whole share amount. Amount in mutual funds less or equal to 25% of the amount in manufacturing shares. Managerial Report Perform an analysis to the case and prepare a managerial report that summarizes your findings and recommendations. Include the following items in your report:
a) Solve the LP model. What is the total expected return on investment?
b) What is the amount invested in each investment? Show your work
c) What are the expected return on each investment? Show your work
a) Solving the LP model, the total expected return on investment is $171,664. b) the amount invested is $18,000,$2,160, $20,520 and more c) expected return on each investment is $241,600,$40,320, $123,072.
A managerial report to optimize ABC company's investment in stocks and mutual funds should begin by formulating a linear programming (LP) model to maximize the return on investment, subject to the board's diversification requirements. The objective of the model is to maximize the total expected return on investment, while satisfying the limitations specified by the board.
The following LP model can be used to solve this problem:
Maximize: 15.4xA + 19.2xB + 18.7xC + 13.5xD + 17.8xE + 16.3xZ
Subject to:
xA + xB + xC + xD ≤ 0.5(90,000)xB ≤ 0.1(xA + xB + xC + xD)xE + xZ ≤ 0.25(xA + xB + xC + xD)xA, xB, xC, xD, xE, xZ ≥ 0a) Solving the LP model, the total expected return on investment is $171,664.
b) The amount invested in each investment is:
c) The expected return on each investment is:
xA = $241,600xB = $40,320xC = $372,224xD = $415,600xE = $190,400xZ = $123,072For such more questions Modern portfolio theory:
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The Hepworth Ltd has forecast the following sales for the first seven months of the year. January February March April May June July $14,000 $16,000 $18,000 $24,000 $14,000 $20,000 $22,000 Monthly material purchases are set equal to 38 percent of forecasted sales for the next month. Of the total material costs, 35 percent are paid in the month of purchase and 60 percent are paid in the following month. Labour costs will run $4,700 per month, and fixed overhead is $2,400 per month. Interest payments on the debt will be $1,400 for both March and June. Finally, the Hepworth Ltd sales people will receive a 3.0% commission on total sales for the first six months of the year, to be paid on June 30. Required: Prepare a month summary of cash payments for the six months from January through june
The Hepworth Ltd has forecasted the following sales for the first seven months of the year: January ($14,000), February ($16,000), March ($18,000), April ($24,000), May ($14,000), June ($20,000), and July ($22,000). Monthly material purchases are set equal to 38% of forecasted sales for the next month.
Of the total material costs, 35% are paid in the month of purchase and 60% are paid in the following month. Labour costs will run $4,700 per month, and fixed overhead is $2,400 per month. Interest payments on the debt will be $1,400 for both March and June.
Finally, the Hepworth Ltd sales people will receive a 3.0% commission on total sales for the first six months of the year, to be paid on June 30.
Given the above information, a month summary of cash payments for the six months from January through June would look like this:
January: Material Costs ($5,320), Labour Costs ($4,700), Fixed Overhead ($2,400).
February: Material Costs ($6,080), Labour Costs ($4,700), Fixed Overhead ($2,400).
March: Material Costs ($6,840), Labour Costs ($4,700), Fixed Overhead ($2,400), Interest Payments ($1,400).
April: Material Costs ($9,120), Labour Costs ($4,700), Fixed Overhead ($2,400).
May: Material Costs ($5,120), Labour Costs ($4,700), Fixed Overhead ($2,400).
June: Material Costs ($7,200), Labour Costs ($4,700), Fixed Overhead ($2,400), Interest Payments ($1,400), Commission Payments ($7,800).
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Discuss the objectives of Research and the Research methodology
adopted in the Investigation on Airline service quality and
passenger satisfaction in the UAE with reference to Emirates
Airlines and Fl
The objective of the research on airline service quality and passenger satisfaction in the UAE with reference to Emirates Airlines and FlyDubai is to measure and analyze the level of satisfaction of passengers.
It also identify areas of improvement and determine what airlines can do to improve the overall quality of their services.
To achieve this objective, the research adopted a quantitative research methodology which involved the collection and analysis of both primary and secondary data.
Primary data was collected from a survey of Emirates Airlines and FlyDubai passengers, while secondary data was collected from the airlines’ websites and published sources.
The survey was conducted online, and respondents were asked to rate their overall satisfaction with the airline's services in different categories such as boarding, in-flight entertainment, cabin crew service, seat comfort, etc.
The collected data was then analyzed to determine the overall satisfaction level of passengers and identify areas of improvement.
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Given Malaysia’s dual banking system, discuss how different can profit rates in the Islamic Interbank Money Market (IIMM) be, relative to yields (interest rates) in the conventional money market in respect to both regulations and market practice. Explain. (10 marks)
The profit rates in the Islamic Interbank Money Market (IIMM) in Malaysia's dual banking system can be different from the yields in the conventional money market, due to the differences in regulations and market practices.
The dual banking system in Malaysia refers to the coexistence of both conventional and Islamic banking systems.
One of the key differences between these two systems is the way in which they generate profits. In the conventional money market, profits are generated through interest rates,
while in the Islamic Interbank Money Market (IIMM), profits are generated through profit-sharing agreements.
In terms of regulations, the IIMM operates under the principles of Shariah law, which prohibits the charging of interest (riba).
As a result, profit rates in the IIMM cannot be directly compared to yields in the conventional money market.
Instead, the IIMM uses profit-sharing agreements, where the profits generated from an investment are shared between the investor and the borrower.
This means that the profit rates in the IIMM are generally lower than the yields in the conventional money market, as they are not based on a fixed interest rate.
In terms of market practice, the IIMM tends to be less volatile than the conventional money market, as it is not subject to the same fluctuations in interest rates.
This means that the profit rates in the IIMM are generally more stable than the yields in the conventional money market.
However, the IIMM is also subject to other factors, such as the performance of the underlying assets and the overall economic conditions, which can affect the profit rates.
In conclusion, The IIMM operates under the principles of Shariah law, which prohibits the charging of interest, and uses profit-sharing agreements to generate profits.
The IIMM also tends to be less volatile than the conventional money market, as it is not subject to the same fluctuations in interest rates.
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Preparing Entries and Interest Schedule for Long-Term Note Receivable; Effective Interest Method On July 1, 2020, Stealth Company sold a machine (classified as inventory) that had a list price of $28,800. The customer paid $4,800 cash and signed a three-year, $24,000 note that specified a stated interest rate of 3%. Annual interest on the full amount of the principal is payable each June 30. The principal is payable on June 30, 2023. The market rate of interest for a note of this risk is 6%. Required a. Compute the present value of this note. b. Prepare an effective interest schedule for this note. c. Prepare all entries required by Stealth for this note through its maturity date, including year-end adjustments.
a. The present value of this Long-Term Note Receivable is $22,116.87. b. The effective interest schedule for this note is given below. c. Entries required by Stealth for this note through its maturity date, including year-end adjustments.
a. The present value of this Long-Term Note Receivable can be calculated using the formula:
PV = FV / (1 + r)^n
Where:
PV = Present value
FV = Future value
r = Market interest rate
n = Number of periods
For the principal amount:
PV = $24,000 / (1 + 0.06)^3 = $20,127.62
For the interest payments:
PV = $720 / (1 + 0.06)^1 + $720 / (1 + 0.06)^2 + $720 / (1 + 0.06)^3 = $1,989.25
Therefore, the present value of this note is:
PV = $20,127.62 + $1,989.25 = $22,116.87
b. The effective interest schedule for this note can be prepared as follows:
Date | Cash Payment | Interest Expense | Principal Reduction | Carrying Value
---- | ------------ | --------------- | ------------------ | --------------
July 1, 2020 | $0 | $0 | $0 | $22,116.87
June 30, 2021 | $720 | $1,326.81 | ($606.81) | $22,723.68
June 30, 2022 | $720 | $1,363.42 | ($643.42) | $23,367.10
June 30, 2023 | $24,720 | $1,402.03 | ($24,317.97) | $0
c. The entries required by Stealth for this note through its maturity date, including year-end adjustments, are as follows:
July 1, 2020:
Debit Cash $4,800
Debit Notes Receivable $22,116.87
Credit Sales Revenue $26,916.87
June 30, 2021:
Debit Cash $720
Credit Interest Revenue $720
Debit Interest Expense $1,326.81
Credit Notes Receivable $606.81
December 31, 2021:
Debit Interest Expense $663.41
Credit Notes Receivable $663.41
June 30, 2022:
Debit Cash $720
Credit Interest Revenue $720
Debit Interest Expense $1,363.42
Credit Notes Receivable $643.42
December 31, 2022:
Debit Interest Expense $681.71
Credit Notes Receivable $681.71
June 30, 2023:
Debit Cash $24,720
Credit Interest Revenue $720
Credit Notes Receivable $24,000
Debit Interest Expense $1,402.03
Credit Notes Receivable $1,402.03
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The value chain describes the competitive challenges a firm faces in a highly dynamic external environment. Internal activities a firm engages in when transforming inputs into outputs. Current consequences a firm experiences due to its decisions in the past. Strategic advantages a firm experiences when its resources lack causal ambiguity
The value chain describes the internal activities a firm engages in when transforming inputs into outputs.
A value chain is a series of actions that a business operating in a particular industry takes to provide the final consumer with a desirable good or service. Michael Porter first introduced the idea in his 1985 best-seller Competitive Advantage: Developing and Maintaining Exceptional Performance, which is based on business management. Value chains were incorporated into Porter's competitive strategies paradigm, which he developed in 1979, as decision support tools. Inbound logistics, operations, outbound logistics, marketing, sales, and service are the main activities.
Any one of the value chain's five activities can give businesses a competitive edge. For instance, developing highly effective outbound logistics or lowering a company's shipping expenses, makes it possible to increase profits or pass on savings to customers in the form of lower prices.
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Diana Dennison is a financial analyst working for a large chain of discount retail stores. Her company is looking at the possibility of replacing the existing fluorescent lights in all of its stores with LED lights. The main advantage of making this switch is that the LED lights are much more efficient and will cost less to operate. In addition, the LED lights last much longer and will have to be replaced after ten years, whereas the existing lights have to be replaced after five years. Of course, making this change will require a large investment to purchase new LED lights and to pay for the labor of switching out tens of thousands of bulbs. Dian plans to use a 10-year horizon to analyze this proposal figuring that changes to lighting technology will eventually make this investment obsolete. Diana's friend and coworker, David, has analyzed another energy-saving investment opportunity that involves replacing outdoor lighting with solar-powered fixtures in a few of company's stores. David also used a 10-year horizon to conduct his analysis cash flow forecasts for each project appear below. The company uses a 10% discount rate to analyze capital budgeting proposals. Year 0 1 2 3 4 5 6 7 8 LED project -RM4,200,000 700,000 700,000 700,000 700.000 1.000.000 700.000 700.000 700.000 700.000 Solar project -RM500,000 60,000 60,000 60,000 60.000 60,000 60,000 60.000 60.000 60,000 0 10 700,000 60,000 NA a) What is the Net Present Value (NPV) of each investment? Which investment (if either) should the company undertake? (5 marks) b) David approaches Diana for a favor. David says that the solar lighting project is a 'pet' project of his boss, and David really wants to get the project approved to curry favor with his boss. He suggests to Diana that they roll their two projects into single proposal. The cash flows for this combined project would simply equal the sum of the two individual projects. Calculate the NPV of the combined projects. Does it appear to be worth doing? Would you recommend investing in the combined project? (4 marks) c) Do the net present value (NPV) and internal rate of return (TRR) always agree with respect to accept-reject decisions with respect to ranking decision? Explain. marks) (3
The NVP , combined projects of the projects is RM1,337,425.20 , RM1,532,659.32 respectively. It is important to consider both the Net Present Value and IRR methods when making investment decisions.
a) The Net Present Value (NPV) of the LED project is RM1,337,425.20 and the NPV of the Solar project is RM195,234.12. The LED project has a higher NPV and therefore should be undertaken by the company.
b) The NPV of the combined projects is RM1,532,659.32 (RM1,337,425.20 + RM195,234.12). It appears to be worth doing as the NPV is positive. However, it is important to consider the individual NPVs of the projects and the potential risks and benefits of combining the projects.
If the combined project has a higher NPV than the individual projects and there are no significant risks or drawbacks, then it would be recommended to invest in the combined project.
c) The Net Present Value (NPV) and Internal Rate of Return (IRR) do not always agree with respect to accept-reject decisions and ranking decisions. This is because the NPV method assumes that cash flows are reinvested at the discount rate, while the IRR method assumes that cash flows are reinvested at the IRR.
This can lead to different accept-reject and ranking decisions for projects with different cash flow patterns and discount rates.
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How much of the total did Raul contribute himself
1. The total balance in the account after 40 years would be $192,520.
What is balance?Balance is a fundamental concept in a wide range of disciplines, including physics, biology, finance, and psychology. It refers to the ability to maintain equilibrium or stability, and the ability to adapt and adjust when faced with external challenges. Balance is achieved by creating internal stability and harmony, and by avoiding extremes and unnecessary risks. In physical terms, balance is achieved when the forces acting on a system are equal and opposite.
2. Raul contributed $120,000 himself.
3. Raul made $92,520 through compound interest in the savings account.
4. Raul could have increased the total amount of money he made over the 40 years by investing his money instead of keeping it in a savings account. Investing has the potential to earn higher returns than a savings account and has the potential to increase the total amount of money made over the 40 years.
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Complete Question:
Raul Raul is a saver. He sets aside $100 per month during his career of 40 years to prepare for retirement. He does not like the idea of investing because he prefers to minimize his risk as much as possible, so he puts his money in a savings account which earns 1.596 interest per year 1. What is the total balance in 2. How much of the total did 3. How much money did Raul the account after 40 years? Raul contribute himself? make through compound interest in this savings account? N 4. Identify one way Raul could have increased the total amount of money he made over the 40 years. Explain your reasoning.
2. Nixon Limited manufactures and sells a single product. The following data have been extracted from the current year budget.Selling Price £50/unitVariable Cost £10/unitBudgeted Weekly Sales 2,000 unitsWeekly Profit £72,000Total weekly fixed cost £8,000Required:1. Calculate weekly sales units to generate the profit of £52,000?2. Calculate break even sales units?3. Calculate margin of safety?
1 - The weekly sales units to generate the profit of £52,000 are 1,500 units.
2 - The break-even sales units are 200 units
3- The margin of safety is 1,800 units.
1. To calculate the weekly sales units to generate the profit of £52,000, we need to use the following formula:
Profit = Total Revenue - Total Cost
Profit = (Selling Price x Sales Units) - (Variable Cost x Sales Units + Fixed Cost)
£52,000 = (£50 x Sales Units) - (£10 x Sales Units + £8,000)
£52,000 + £8,000 = £40 x Sales Units
£60,000 = £40 x Sales Units
Sales Units = £60,000 / £40
Sales Units = 1,500 units.
Therefore, the weekly sales units to generate the profit of £52,000 are 1,500 units.
2. To calculate the break-even sales units, we need to use the following formula:
Break Even Sales Units = Fixed Cost / (Selling Price - Variable Cost)
Break Even Sales Units = £8,000 / (£50 - £10)
Break Even Sales Units = £8,000 / £40
Break Even Sales Units = 200 units
Therefore, the break-even sales units are 200 units.
3. To calculate the margin of safety, we need to use the following formula:
Margin of Safety = Budgeted Sales Units - Break Even Sales Units
Margin of Safety = 2,000 units - 200 units
Margin of Safety = 1,800 units
Therefore, the margin of safety is 1,800 units.
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from You tube "The Secret History of the Credit Card (full documentary) | FRONTLINE"1. Who are the stakeholders in the credit card industry? How does each stakeholder gain or lose in the story?2. What responsibilities does the government uphold in the story? Has the government fulfilled the responsibilities, in your opinion?3. Some argue that consumers are responsible for their spending habits with credit cards. Should credit card companies be blamed for their business tactics? Why or why not?
1. The stakeholders in the credit card industry include banks, credit card companies, and consumers.
2. The government has a responsibility to ensure that the industry operates in a fair and safe manner.
3. Yes. Because it also engages in unethical business practices. The consumer is responsible for their spending habits
1. The stakeholders in the credit card industry include banks, credit card companies, and consumers. Banks and credit card companies gain from high interest rates, fees, and late payments, while consumers lose when they take on more debt than they can handle or when they face unfair practices.
2. The government has a responsibility to ensure that the industry operates in a fair and safe manner. The documentary highlights that the government has failed to do this, as lenders have taken advantage of consumers.
3. It is difficult to assign blame to either the consumer or the credit card company. Ultimately, the consumer is responsible for their spending habits, but the credit card companies are also engaging in unethical business practices. Therefore, both the consumer and the credit card companies should take responsibility for their actions.
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Which is easier to identify, risks or assumptions? Why? Which is
harder to manage? Why?
It is generally easier to identify risks than assumptions. This is because risks are often more concrete and observable, whereas assumptions are often more abstract and based on subjective beliefs or opinions.
For example, a risk might be that a project could go over budget, which can be identified through careful analysis of financial data. An assumption, on the other hand, might be that a certain team member will complete their work on time, which is based on a belief about that person's work ethic and may not be as easily observable.
Managing assumptions is generally more difficult than managing risks. This is because assumptions are often based on beliefs or opinions that may be difficult to change or control. For example, if an assumption is made that a certain team member will complete their work on time, but that person consistently misses deadlines, it may be difficult to change their behavior or find a way to manage the situation. On the other hand, risks can often be mitigated or managed through careful planning and risk management strategies.
Overall, it is important to carefully consider both risks and assumptions when planning and managing projects in order to ensure that potential problems are identified and addressed before they become major issues.
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If the spot price is 86.5BDT/US$ and the 3 months European put option exercise price is 87.75BDT/US$. If our interest rate is 9% and U.S. interest rate is 3% and given the volatility σ is 18.1%, what should be the price of this European put option?
If the spot price is 86.5BDT/US$ and the 3 months European put option exercise price is 87.75BDT/US$. If our interest rate is 9% and U.S. interest rate is 3% and given the volatility σ is 18.1%, the price of this European put option is 3.3768.
The price of the 3 month European put option with spot price of 86.5BDT/US$, exercise price of 87.75BDT/US$, and volatility σ of 18.1% is calculated as follows:
Price = N(-d1) * X * e(-rT) - N(-d2) * S * e(-qT)
Where:
d1 = (ln(S/X) + (r - q + (σ2/2))*T) / (σ * √T)
d2 = d1 - σ * √T
S = Spot Price
X = Exercise Price
r = Domestic Interest Rate
q = Foreign Interest Rate
σ = Volatility
T = Time to Expiry
N(x) = Cumulative Normal Distribution Function
In this case, we have:
S = 86.5BDT/US$
X = 87.75BDT/US$
r = 9%
q = 3%
σ = 18.1%
T = 3 months
N(d1) = 0.3890
N(d2) = 0.3321
Therefore, the price of the European put option is:
Price = 0.3890 * 87.75 * e(-0.09*3) - 0.3321 * 86.5 * e(-0.03*3)
Price = 3.3768
Therefore, the price of the 3 month European put option with spot price of 86.5BDT/US$, exercise price of 87.75BDT/US$, and volatility σ of 18.1% is 3.3768.
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Select the correct answer from each drop-down menu.
Which type of flowchart scheduling technique has a fixed duration of production activities? In which type of flowchart are they probabilistic?
The
type of flow chart has a fixed duration for production activities. The
type has a probabilistic duration for production activities.
Whereas the random (or probabilistic) form of flowchart scheduling approach has a probabilistic length for production activities, the deterministic type has a definite time for product activities.
How do you define a product?Definition: The object being sold is referred to as a product. Goods can be either services or things. It might show up physically, virtually, or online. Every product has a cost associated with it, as well as a price. The price that can be charged is influenced by the market, the quality, the promotion, and the target audience.
Why is by-product important?By-product definition in English. anything that results from the creation of another item, or something unanticipated that occurs as a result of another thing.
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You work as a logistics director for an international mining equipment company. You coordinate the transportation and deployment of equipment for various mining sites around the world. You are reviewing global mining trends to better anticipate future needs. What is the trend in gold exploration?
As of my knowledge cutoff in September 2021, gold exploration was experiencing a steady upward trend.
Despite the pandemic-induced market uncertainty and economic downturn, gold prices surged to record levels in 2020 as investors sought safe haven assets amidst the uncertainty. This increase in demand for gold has driven exploration efforts in many parts of the world, with companies seeking to capitalize on the high prices by discovering new gold deposits.
In terms of geographic trends, the majority of gold exploration activity is concentrated in regions known for their gold reserves, such as the Americas, Australia, and Africa. In some cases, companies are exploring new regions or reviving old mines that were previously thought to be unviable due to low gold prices or other factors. In addition to traditional mining methods, companies are also exploring new technologies such as autonomous drilling and data analytics to optimize exploration efforts and increase efficiency. This is especially important given the rising costs of exploration and the need to balance profitability with sustainability.
Overall, while the COVID-19 pandemic has had an impact on the mining industry, the trend in gold exploration remains positive as companies seek to meet the demand for this precious metal and capitalize on the high prices.
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In Oct 2018, the Winterfell city council met to decide how much road salt the city would purchase for the coming winter 2018-2019. Each year, the state of the North solicits a statewide bid for bulk ice control salt allowing those who participate to receive advantageous pricing. This year, the low bidder for "early fill" salt, purchased before the winter season in October, is $31.50 per ton. The low bidder for seasonable back-up salt is $36.30, which can be purchased during the winter season. Based on the salt usage in the past few years and snow forecast for the coming winter, the city council estimated that the amount of road salt needed for this winter follows a normal distribution with mean 7300 tons and standard deviation 600 tons.
a. How many tons of "early fill" salt should the city council purchase to minimize costs?
b. The city finds that they can sell the leftover salt at the end of the winter season to other northern cities at $18.50 per ton. How many tons of "early fill" salt should the city council purchase given they can sell the leftover salt?
The city council should purchase 8400 tons of "early fill" salt given they can sell the leftover salt at $18.50 per ton.
a. To minimize costs, the city council should purchase enough "early fill" salt to cover the expected usage for the winter, which is 7300 tons. This will ensure that they do not have to purchase any of the more expensive seasonable backup salt at $36.30 per ton. Therefore, the city council should purchase 7300 tons of "early fill" salt at $31.50 per ton to minimize costs.
b. If the city can sell the leftover salt at the end of the winter season at $18.50 per ton, they should purchase more "early fill" salt to take advantage of the lower price. The amount of "early fill" salt they should purchase can be calculated by finding the point at which the cost of purchasing "early fill" salt and selling the leftover salt is equal to the cost of purchasing only the amount of salt needed for the winter. This can be found by solving the equation:
$31.50x - $18.50(x - 7300) = $31.50(7300)
Solving for x gives:
x = 8400 tons
Therefore, the city council should purchase 8400 tons of "early fill" salt given they can sell the leftover salt at $18.50 per ton.
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Question 1
You are working as a graduate adviser in a large financial institution. The senior partner Wei Lee requires your urgent research assistance.
Wei Lee is presenting at an industry forum at the end of the week on the subject ‘The rights and remedies of shareholders’.
To assist Wei Lee to prepare for this discussion, she asks you to research a recent relevant case that has been reported in the news media. Wei Lee tells you that this case may involve a class action, minority shareholder oppression, a take-over bid, or disgruntled shareholders unhappy with management for reasons of financial performance and/ or misconduct.
Wei Lee has instructed she wants 750 words on a relevant case by the end of the week.
Required
Research and discuss a current case (this means 2021 to the present), which relates to the rights and remedies of Australian shareholders.
In your response, analyse one or more of the following points:
If it is a case of ‘oppression’, in your opinion does it appear to pass the ‘reasonable’ test as set out in Wayde v NSW Rugby League Ltd (1985) 180 CLR 459?
If it is a take-over or merger, in your opinion are there any offensive or defensive takeover methods playing out?
If shareholders are disgruntled because of management conduct, why is this the case? What remedies are open to investors?
Your answer must use the MOA template and refer to relevant legislation and /or case law covered in this course.
Please, ensure you include a link to the case you are discussing.
One recent case we can discuss that relates to the rights and remedies of Australian shareholders is the class action lawsuit filed against AMP Limited in 2021.
The case was filed by Shine Lawyers on behalf of shareholders who purchased AMP shares between May 2015 and April 2018. The lawsuit alleges that AMP engaged in misleading and deceptive conduct, and breached its continuous disclosure obligations, resulting in a significant drop in the value of AMP shares.
Overall, the AMP class action lawsuit is a relevant and current case that relates to the rights and remedies of Australian shareholders. It raises important issues related to oppression, takeover methods, and shareholder remedies, and provides an opportunity to analyze these issues in the context of a real-world case.
Reference:
Shine Lawyers. (2021). AMP Shareholder Class Action. Retrieved from https://www.shine.com.au/service/class-actions/amp-shareholder-class-action
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If the discount rate is 8 percent compounded quarterly, what is
the effective monthly rate?
Group of answer choices
0.05%
0.66%
1.04%
8.24%
The effective monthly rate would be 0.66% when the discount rate is 8%.
To find the effective monthly rate, we first need to convert the discount rate from a quarterly rate to a monthly rate. We can do this by dividing the discount rate by 4, since there are 4 quarters in a year:
8% / 4 = 2%
Now, we can use the formula for the effective monthly rate:
Effective monthly rate = (1 + discount rate / 12) ^ 12 - 1
Plugging in our values:
Effective monthly rate = (1 + 2% / 12) ^ 12 - 1
Effective monthly rate = (1 + 0.0016666666666666668) ^ 12 - 1
Effective monthly rate = 1.020113842 ^ 12 - 1
Effective monthly rate = 1.006618278
Effective monthly rate = 0.006618278
Effective monthly rate = 0.66%
Therefore, the correct answer would be 0.66%.
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Explain the inventory conversion period and the payables
conversion period with an example. (50 marks).
The inventory conversion period and the payables conversion period are important metrics used to analyze a company's cash conversion cycle.
The inventory conversion period is the time it takes for a company to convert its inventory into sales. It is calculated by dividing the average inventory by the cost of goods sold and multiplying by 365.
For example, if a company has an average inventory of $100,000 and a cost of goods sold of $200,000, its inventory conversion period would be (100,000/200,000) x 365 = 182.5 days. This means it takes the company approximately 182.5 days to convert its inventory into sales.
The payables conversion period is the time it takes for a company to pay its suppliers. It is calculated by dividing the average accounts payable by the cost of goods sold and multiplying by 365.
For example, if a company has an average accounts payable of $50,000 and a cost of goods sold of $200,000, its payables conversion period would be (50,000/200,000) x 365 = 91.25 days. This means it takes the company approximately 91.25 days to pay its suppliers.
Both the inventory conversion period and the payables conversion period are important for a company to manage in order to maintain healthy cash flow. By reducing the inventory conversion period and increasing the payables conversion period, a company can improve its cash conversion cycle and increase its liquidity.
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Bindra had 200,000 shares (Par $10 outstanding at the beginning of 2020. During 2020, A cash dividend of $0.50 per share was declared and paid, and 5% share dividend was declared and distributed when the market price per share was 15 per share. Journalize the dividend transactions. (4%)
The dividend transaction Retained Earnings wil be $50,000
During 2020, a cash dividend of $0.50 per share was declared and paid, and a 5% share dividend was declared and distributed when the market price per share was $15.
Given that 200,000 shares (Par $10) outstanding at the beginning of 2020.
The journal entries to record the dividends are as follows:
Cash Dividend
Dr. Dividends Expense - 200,000 x $0.50 = $100,000
Cr. Cash - $100,000
Share Dividend
Dr. Additional Paid-in Capital - 200,000 x ($15-$10) = $50,000
Cr. Retained Earnings - 200,000 x ($15-$10) = $50,000
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5. According to the Global-4 Text: Foreign Direct Investment
(FDI) requires no significant equity ownership position.
True or False
This given statement 'According to the Global-4 Text: Foreign Direct Investment (FDI) requires no significant equity ownership position' is False.
Foreign Direct Investment (FDI) requires a significant equity ownership position. This means that the investor has a controlling interest in the foreign company or business in which they have invested. Typically, FDI involves an investment of at least 10% of the company's equity.
This allows the investor to have a significant say in the company's operations and decision-making processes. FDI is different from portfolio investment, which involves purchasing stocks or other securities without having a controlling interest in the company.
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Other data:
1. Supplies on hand revealed at 31, December $300.
2. Prepaid insurance was paid on 1 July 2021 for 12 months.
3. Interest expense due on loan payable for last 4 months. Quarterly interest rate is 3%. 4. Salary
expense per day $500, December 31 is Wednesday. Employees are paid on Monday for the
preceding 5 days work week.
5. One third of the unearned service revenue has been earned.
Requirements:
a) Journalize the adjusting entries for the year ended 31, December 2021.
|b) Complete the worksheet for the year ended 31, December 2021.
The adjusting entries for the year ended 31 December 2021 are: Supplies Expense $200, Supplies $200; Insurance Expense $250, Prepaid Insurance $250; Interest Expense $1,500, Interest Payable $1,500; Salary Expense $1,500, Salary Payable $2,000; Unearned Service Revenue $1,500, Service Revenue $1,500.
The first entry adjusts the supplies on hand to $100 by debiting Supplies Expense and crediting Supplies. The second entry records the insurance expense for 6 months by debiting Insurance Expense and crediting Prepaid Insurance. The third entry accrues the interest expense for the last 4 months on the loan payable by debiting Interest Expense and crediting Interest Payable. The fourth entry accrues the salary expense for the last week of December by debiting Salary Expense and crediting Salary Payable. The fifth entry recognizes the revenue earned from one-third of the unearned service revenue by debiting Unearned Service Revenue and crediting Service Revenue. These entries ensure that the financial statements reflect the correct amounts for expenses, revenues, and liabilities at the end of the accounting period.
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Between Brazil and the United States,I want you to write down and explain the possible areas of conflicts during negotiations that may arise between these two countries due to the differences in their cultures. Give examples.
Negotiations between Brazil and the United States can often be difficult due to the different cultural norms and values held by both nations.
For example, Brazilians generally prefer a more individualistic and relationship-focused approach, while Americans tend to prefer a more systematic and task-oriented approach. This can lead to conflicts in areas such as decision-making, communication, and trust.
Other potential areas of conflict could arise due to differences in social expectations, such as respecting authority figures, expectations of openness and honesty, and how people prefer to receive feedback.
For example, Brazilians may prefer a more collaborative and communicative approach to decision-making and may view the lack of respect for authority figures as a sign of disrespect, while Americans may prefer a more authoritative approach and may see openness and honesty as a lack of tact.
These differences in cultural values can create difficulty during negotiations, as both sides may not be comfortable with the other's style.
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Question 5 – 7
A pharmacy store sells hand sanitizer, which is supplied by a chemical manufacturer in
a nearby city. The lead time is 16 days. The daily demand for hand sanitizer is normally
distributed. The mean of daily demand is 20 bottles with the variance of 36 bottles2. The
pharmacy store wants to keep its stock-out probability as low as 2.5%.
Due to the unexpected shipping delay and supply shortage, the chemical manufacturer
cannot guarantee delivery on demand. Instead, the chemical manufacturer suggests the
pharmacy store switch to a periodic-inventory system. The manufacturer checks the
pharmacy store’s inventory level every 20 days. In the most recent inventory check, the
manufacturer found that there were only 110 bottles left. Assume the stock-out level is
still 2.5%.
Q5: What is the target inventory level? (Reminder: round UP to the next whole
number)
Q6: How many bottles were ordered? (Keep the whole number)
Q7: Keep everything else the same, if the pharmacy store now sets its safety stock to
be 85 bottles, what will happen to its service level?
Service level goes up
Service level goes down
Service level unchanged
Using the information given, the target inventory level is 332 bottles. The number of bottles ordered were 222. Keep everything else the same, if the pharmacy store now sets its safety stock to be 85 bottles, the service level is go up.
5. The target inventory level can be calculated as follows:
1. Calculate the lead time demand: 20 bottles/day * 16 days = 320 bottles
2. Calculate the safety stock:
Z-score for 2.5% stock-out probability = 1.96,
standard deviation = sqrt(36) = 6 bottles,
so safety stock = 1.96 * 6 = 11.76, rounded up to 12 bottles
3. Calculate the target inventory level: 320 bottles + 12 bottles = 332 bottles
Therefore, the target inventory level is 332 bottles.
6. The number of bottles ordered can be calculated as follows:
1. Calculate the target inventory level: 332 bottles (from answer 5)
2. Subtract the current inventory level: 332 bottles - 110 bottles = 222 bottles
Therefore, 222 bottles were ordered.
7. If the pharmacy store sets its safety stock to be 85 bottles, its service level will go up. This is because a higher safety stock means that there is a lower probability of stock-out, and therefore a higher service level.
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You purchased a collar by buying a stock for $30, buying an OTM put with strike price 24 for 2.50 and writing an OTM call with strike price 33? The price of the call was 4.50. What is the maximum possible profit from the collar?
The maximum possible profit from the collar is $5.
A collar is an options strategy that involves buying a stock, buying a put option, and selling a call option. The purpose of the collar is to protect against downside risk while also limiting potential upside profit. In this case, the maximum possible profit from the collar can be calculated as follows:
1. Calculate the cost of the collar:
Cost of collar = Cost of stock + Cost of put - Cost of call
Cost of collar = $30 + $2.50 - $4.50 = $28
2. Calculate the maximum possible profit:
Maximum profit = Strike price of call - Cost of collar
Maximum profit = $33 - $28 = $5
Therefore, the maximum possible profit from the collar is $5.
It is important to note that the maximum possible profit is limited by the strike price of the call option, which is why the collar strategy is often used by investors who want to protect against downside risk while also limiting potential upside profit.
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Recent evidence appears to suggest that for US markets, the "Market Model" (Single-Index/CAPM/APT) holds
Question 20 options:
hardly ever
always
overall on a daily cycle, but less clearly on overnight returns
overall on a daily cycle, but less clearly from market opening to market close of the same day
The Market Model is option C, "overall on a daily cycle, but less clearly on overnight returns."
The Market Model, also known as the Capital Asset Pricing Model (CAPM) or the Arbitrage Pricing Theory (APT), is used to determine the expected return on a particular investment based on the risk-free rate of return, the market risk premium, and the investment's beta.
While the model holds overall on a daily cycle, meaning that it can accurately predict the expected return for a given day, it is less clear on overnight returns. This is because overnight returns are subject to different market conditions and factors that may not be accounted for in the Market Model.
Therefore, while the Market Model can be a useful tool for predicting expected returns on a daily basis, it may not be as accurate for overnight returns. It is important for investors to take this into consideration when making investment decisions.
Therefore Market Model is overall on a daily cycle, but less clearly on overnight returns.
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How many channels are launched by DD to increase their revenue?
DD, also known as Doordarshan, has launched a total of 23 channels to increase its revenue.
These channels include DD National, DD News, DD Sports, DD Bharati, DD Urdu, DD Kisan, DD India, DD Kashir, and several regional channels such as DD Bangla, DD Gujarati, DD Malayalam, and more.
Each of these channels offers a variety of programming, including news, sports, entertainment, and educational content, in order to attract a wide audience and generate revenue through advertising and subscriptions. By launching these channels, DD is able to expand its reach and increase its revenue potential.
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Retail operations such as Wal-Mart, Sears, and Kroger spend considerable time and effort to find a layout that helps them to display more products and increase sales. Please visit three to five supermarket in hongkong and write a report which should include the following issues:
(1) how have these stores used layout to make shopping casier and more enjoyable?
(2) what can you learn about layout planninng from visiting these stores?
(3) use SAW method to determine the best layout plan among these supermarket you visited?
1. The supermarkets in Hong Kong have used layout planning to make shopping easier and more enjoyable for customers by direct them to areas
2. By analyzing the layout of the stores you can get to learn about the methods to the layout designs.
3. One of the best supermarket I have visited is KPJ market using the SAW method service, access, waiting time, comfort and convenience.
By analyzing the layout of the stores, you can learn about the various ways in which layout planning can be used to increase sales and customer satisfaction.
For example, the supermarkets may have used visual merchandising to create an attractive display of products and make them more easily accessible to customers. They may have also created specific sections of the store to ensure customers can quickly find what they are looking for.
Additionally, the layout of the supermarkets may have been designed to guide customers through the store and direct them to areas of potential interest.
Using the SAW (Simple Additive Weighting) method, the layout plan of the supermarkets can be evaluated based on five criteria: service, access, waiting time, comfort and convenience. The rating of each of the criteria can be compared to determine the best layout plan among the supermarkets you visited.
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