The implication of a rising exchange rate on the balance of payments curve is usually a deterioration in the current account balance. The increase in imports due to cheaper foreign goods and the decrease in exports due to more expensive domestic goods can contribute to a larger current account deficit.
a. Domestic prices are falling:
When domestic prices are falling, it generally indicates deflation or a decrease in the overall price level of goods and services within the domestic economy. This can have implications for the balance of payments curve as follows:
1. Effect on Exports: Falling domestic prices can make domestic goods and services relatively cheaper compared to foreign goods and services. This can increase the competitiveness of domestic exports in international markets, leading to an increase in export volume. As a result, the balance of payments curve may shift outward or experience an improvement in the current account balance.
2. Effect on Imports: Falling domestic prices can make imported goods and services relatively more expensive. This can reduce the demand for imports as consumers and businesses may find domestic products more attractive due to their lower prices. As a result, the balance of payments curve may shift inward or experience a reduction in the current account deficit.
Overall, the implication of falling domestic prices on the balance of payments curve depends on the relative impact on exports and imports. If the increase in export volume outweighs the decrease in import volume, the balance of payments curve may improve. Conversely, if the decrease in import volume outweighs the increase in export volume, the balance of payments curve may worsen.
b. The exchange rate is rising:
When the exchange rate of a country's currency rises, it means that the currency has appreciated or become stronger relative to other currencies. This can have implications for the balance of payments curve as follows:
1. Effect on Exports: A rising exchange rate can make domestic goods and services relatively more expensive for foreign buyers. This can lead to a decrease in export volume as foreign consumers may find it less attractive to purchase relatively more expensive domestic products. As a result, the balance of payments curve may shift inward or experience a deterioration in the current account balance.
2. Effect on Imports: A rising exchange rate can make imported goods and services relatively cheaper for domestic consumers. This can increase the demand for imports as domestic consumers may find it more affordable to purchase imported products. As a result, the balance of payments curve may shift outward or experience an increase in the current account deficit.
Learn more about balance of payments curve here:
https://brainly.com/question/32527519
#SPJ11
A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Purchase cost of the equipment Annual cost savings that will be $ 530,000 provided by the equipment $ 100,000 Life of the equipment 10 years Required: 1a. Compute the payback period for the equipment. 1b. If the company requires a payback period of four years or less, would the equipment be purchased? 2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. 2b. Would the equipment be purchased if the company's required rate of return is 15%?
1a. To compute the payback period for the equipment, we divide the purchase cost of the equipment by the annual cost savings provided by the equipment:
Payback period = Purchase cost of the equipment / Annual cost savings
Payback period = $530,000 / $100,000
Payback period = 5.3 years
1b. Since the payback period (5.3 years) is greater than the company's requirement of four years or less, the equipment would not be purchased based on the payback period criterion.
2a. To compute the simple rate of return on the equipment, we need to calculate the average annual net income generated by the equipment and divide it by the initial investment:
Average annual net income = Annual cost savings - Depreciation expense
Depreciation expense = Purchase cost of the equipment / Life of the equipment
Depreciation expense = $530,000 / 10 years
Depreciation expense = $53,000 per year
Average annual net income = $100,000 - $53,000
Average annual net income = $47,000
Simple rate of return = Average annual net income / Initial investment
Simple rate of return = $47,000 / $530,000
Simple rate of return = 0.0887 or 8.87%
2b. If the company's required rate of return is 15%, the equipment would not be purchased since the simple rate of return (8.87%) is lower than the required rate of return (15%).
Learn more about payback period here:
https://brainly.com/question/27835298
#SPJ11
Question 12 of 19 Using Supply and Demand to Analyze Markets -- End of Chapter Problem Black markets are exchanges that occur in violation of the law and government regulations. For the following scenarios, select the answer that best describes how a black market could potenially improve society's well-being a. The government imposes a binding S1 per loaf price ceiling on bread. Producers and consumers would not have to pay taxes on bread bought and sold in the black market since it cannot be traced. In a black market, people willing to pay more than I would still be able to acquire bread, resulting in allocating bread to customers who value it the most In a black market, people may pay more than $1 a loaf, resulting in a loss to consumers since they are paying more than the price ceiling dictates. 1). The government establishes a binding $20 per bushel price floor in the market for com.
Black markets can potentially improve society's well-being in certain scenarios. In the case of a binding price ceiling on bread, a black market could allocate bread to consumers who value it the most and bypass taxes. However, in the case of a binding price floor on corn, a black market would result in a loss to consumers who would end up paying more than the price floor dictates.
In the scenario of a binding price ceiling on bread, a black market can potentially improve society's well-being. Since the black market operates outside the legal framework, producers and consumers would not have to pay taxes on bread bought and sold in this market.
Additionally, the black market allows people who are willing to pay more than the price ceiling to acquire bread. This ensures that bread is allocated to customers who value it the most, which can enhance overall satisfaction and utility.
However, it is important to note that this may lead to income disparities and unequal access to bread, as those who can afford to pay more would have an advantage in acquiring the product.
On the other hand, in the case of a binding price floor on corn, a black market would result in a loss to consumers. A price floor sets a minimum price that producers must receive, which can lead to a surplus of the product if the equilibrium price is lower. In a black market, consumers may be forced to pay more than the price floor dictates in order to acquire corn.
This would result in higher costs for consumers, leading to decreased well-being as they are paying more than they would in a competitive market. Furthermore, a black market in this situation would undermine the purpose of the price floor, which is to support producers' incomes.
Learn more about equilibrium here :
https://brainly.com/question/31534615
#SPJ11
2a. Poverty and exclusion are evidence of a society that wastes human resources, opportunities and life-chances, both now and for the future. What policies can be taken to help achieve lasting reductions in poverty and exclusion? (15 marks)
A combination of policies, both short- and long-term, can be implemented to achieve lasting reductions in poverty and exclusion, improving the lives of people today and ensuring a more prosperous and equitable future for all.
Poverty and exclusion are a clear indication of a society that squanders human resources, possibilities, and opportunities, not just in the present, but also in the future. With this in mind, certain policies can be taken to promote lasting reductions in poverty and exclusion. Some of these policies include implementing programs that aid in the redistribution of wealth and resources, increasing access to education, healthcare, and job opportunities, and establishing social safety nets that protect vulnerable populations.
A focus on human rights, the rule of law, and strengthening democratic institutions can also help to address the root causes of poverty and exclusion, which are often exacerbated by corruption and a lack of accountability. Overall, a combination of policies, both short- and long-term, can be implemented to achieve lasting reductions in poverty and exclusion, improving the lives of people today and ensuring a more prosperous and equitable future for all.
To know more about poverty visit:
https://brainly.com/question/30771214
#SPJ11
Homer Simpson, does not abide by the life cycle theory of
consumption. Homer has a "let’s live life like it’s our last day"
mentality and thus, he prefers to consume more today, relative to
th
Homer Simpson does not adhere to the life cycle theory of consumption. He adopts a "live life like it's our last day" mentality, leading him to prefer higher consumption today compared to the future.
The life cycle theory of consumption suggests that individuals plan their consumption patterns over their lifetime.
assumes that people strive to balance their consumption between present and future periods. According to this theory, individuals save during their working years to support their consumption during retirement.
However, Homer Simpson does not follow this theory. He has a carefree and impulsive attitude, often prioritizing immediate gratification over long-term planning. Homer's "let's live life like it's our last day" mentality leads him to focus on maximizing his present consumption rather than saving for the future.
This behavior is evident in many episodes of "The Simpsons" where Homer indulges in extravagant spending, such as buying unnecessary items or indulging in excessive eating and drinking. He rarely exhibits financial discipline or considers the long-term consequences of his actions.
Homer's preference for immediate consumption can be attributed to his personality traits and the comedic nature of the show. His impulsive behavior serves as a source of entertainment and contributes to the humor of the character.
In summary, Homer Simpson deviates from the life cycle theory of consumption. His "live for today" mindset and preference for immediate gratification result in higher consumption in the present, without much consideration for future planning or savings.
Learn more about financial here:
https://brainly.com/question/28319639
#SPJ11
Company A had purchased machinery 3 years ago at the beginning of 2013 and depreciated it using the straight-line depreciation method until the end of 2015. Subsequent to year end Company A determined that the useful life of the machinery was going to be a total of 7 years rather than the 5 years they originally estimated. The machinery was originally purchased for $30,000 and had a $3,000 estimated initial residual value. In addition to the useful life now being a total of 7 years, the residual value has been revised to an estimated $1,200. Calculate the original annual depreciation expense prior to the revision in estimates. The original annual depreciation $ 5400 /year Calculate the revised annual depreciation expense for the remainder of its useful life. The revised annual depreciation $ /year
That the machinery was purchased 3 years ago, at the beginning of 2013, and depreciated using the straight-line depreciation method until the end of depreciation 2015. Also, the useful life of the machinery was going to be a total of 7 years instead of the 5 years originally estimated.
The machinery was originally purchased for $30,000 and had an estimated initial residual value of $3,000, revised to an estimated $1,200.Now, let us calculate the original annual depreciation expense prior to the revision in estimates the cost of machinery is $30,000The estimated initial residual value is $3,000.
The estimated useful life is 5 years Depreciation = (Cost of machinery - Estimated residual value) / Estimated useful life Annual depreciation = Depreciation / Estimated useful lifeAnnual depreciation = (Cost of machinery - Estimated residual value) / Estimated useful lifeAnnual depreciation = (30000 - 3000) / 5Annual depreciation = $5,400 /yearTherefore, the original annual depreciation is $5,400 /year.Now, let us calculate the revised annual depreciation expense for the remainder of its useful life.The cost of machinery is $30,000The estimated initial residual value is $1,200The estimated useful life is 7 years Depreciation = (Cost of machinery - Estimated residual value) / Estimated useful life Annual depreciation.
To know more about Depreciation visit:
https://brainly.com/question/32735001
#SPJ11
You have the opportunity to purchase a 16-year, $1,000 par value bond that has an annual coupon rate of 9%. If you require a YTM of 7.1%, how much is the bond worth to you? The price of the bond is $. (Round to the nearest cent.)
The content loaded has been mentioned in your question. Here's the solution to your query: According to the solving The price of the bond is $1,310.08 (rounded to the nearest cent).
To find out the price of the bond, we have to use the formula for bond pricing.
The bond pricing formula is:
P[tex]= C * (1 - (1 + r)^{-n} / r + FV * (1 + r)^{-n}[/tex]
Where,
P = price of bond
C = coupon payment
r = required rate of return
n = number of periods
FV = face value of the bond
From the question,
Given,
C = $90 (Since, the annual coupon payment is $1,000 x 9% = $90)
FV = $1,000
n = 16 years
r = 7.1%
Using the above formula:
P = $90 * (1 - (1 + 0.071)⁻¹⁶) / 0.071 + $1,000 * (1 + 0.071)⁻¹⁶
= $1,310.08
The price of the bond is $1,310.08 (rounded to the nearest cent). Therefore, this is the required solution.
To know more about required rate of return visit:
https://brainly.com/question/32539722
#SPJ11
Which of the following contributes to the ability of the federal government to borrow vast sums?
Like personal borrowing, age limits the federal government's ability to borrow.
Higher interest rates make it easier to repay debt and this encourages more borrowing.
Buyers of government debt typically cash-in their bonds when Treasury securities mature.
Government debt is not backed by assets.
One of the reasons why the federal government has the ability to borrow vast sums is that government debt is not backed by assets.
Government debt is referred to as the sum of all outstanding bonds and other securities that the United States Treasury has issued in order to borrow money from the public. The government can use these funds to finance its operations, which can range from basic tasks like funding road maintenance and law enforcement to more complex initiatives such as scientific research or military development. The fact that government debt is not backed by assets is a critical factor in its appeal to investors, as it allows the government to borrow more without incurring the risks associated with personal borrowing. If an individual were to borrow money without assets to back up the loan, they would be considered a high-risk borrower, and this would lead to higher interest rates and limited loan amounts. However, since the federal government has a good credit rating and has a lot of clout in the financial markets, investors are willing to lend the government money without any asset backing. In general, the more investors are willing to lend the government money, the lower the interest rates, and the easier it is for the government to repay the debt. This encourages more borrowing, which enables the government to keep up with the nation's growing needs and expenditures. Thus, this contributes to the ability of the federal government to borrow vast sums.
To know more about borrow visit:
brainly.com/question/29550173
#SPJ11
01)Distinguish the range of mechanisms that multinationals have at their disposal to enhance knowledge sharing 02)Discuss how multinationals can access and retain external knowledge 03)Identify different forms of training delivery, the activities of Assessment and Development Centers, and reasons for MNC investments in T&D and human resource development (HRD) 04)Rationalize and illustrate the political economy and strategic choice approaches 05)Explain the role that a nation's culture plays in the effective execution of PMS
1) Multinationals have various mechanisms to enhance knowledge sharing, such as **communities of practice**, **knowledge repositories**, **knowledge transfer programs**, and **technology platforms**. Communities of practice enable employees across different locations to share expertise and collaborate on projects. Knowledge repositories store and disseminate organizational knowledge, making it easily accessible to employees. Knowledge transfer programs involve the exchange of knowledge between individuals or teams, either through formal training or mentoring. Technology platforms, such as intranets or collaboration tools, facilitate communication and knowledge sharing among employees across geographically dispersed locations.
2) Multinationals can access and retain external knowledge through **strategic partnerships**, **joint ventures**, **acquisitions**, and **collaborative research and development (R&D)**. Strategic partnerships and joint ventures allow companies to tap into the knowledge and capabilities of external entities. Acquisitions enable multinationals to acquire companies with specialized knowledge and expertise. Collaborative R&D initiatives with external organizations or research institutions provide access to external knowledge and insights. To retain external knowledge, multinationals can establish knowledge-sharing mechanisms, engage in ongoing collaboration, and create incentives for knowledge contributors to remain within the organization.
3) Different forms of training delivery include **classroom training**, **e-learning**, **on-the-job training**, and **blended learning**. Assessment and Development Centers (ADCs) are used to evaluate employees' skills and potential for development through various assessment exercises and simulations. Multinationals invest in training and development (T&D) and human resource development (HRD) for reasons such as **enhancing employee skills**, **improving organizational performance**, **ensuring talent retention and succession planning**, and **keeping up with industry advancements**. T&D and HRD initiatives contribute to building a skilled and adaptable workforce, fostering innovation, and driving organizational growth.
4) The political economy approach examines how the interaction between political and economic factors influences the strategic choices of multinationals. It considers how government policies, regulations, and political environments shape the options and constraints faced by multinationals in different countries. The strategic choice approach focuses on the decision-making processes within the organization and emphasizes the role of managers in making strategic choices. It considers factors such as organizational goals, resources, capabilities, and competitive dynamics when determining the strategic direction of the multinational.
5) A nation's culture plays a crucial role in the effective execution of Performance Management Systems (PMS). Cultural values, norms, and practices shape employees' perceptions of performance, feedback, and rewards. For example, in a culture that values individual achievement, PMS may emphasize individual performance evaluation and recognition. In contrast, in a culture that emphasizes collective harmony, PMS may focus on team-based evaluations and rewards. Cultural differences can impact the acceptance, effectiveness, and fairness of PMS, requiring multinational companies to consider cultural nuances and adapt their PMS to align with local cultural expectations for optimal execution.
Learn more about human resource development (HRD) here:
https://brainly.com/question/32728788
#SPJ11
Alliance Manufacturing Company is considering the purchase of a new automated drill press to replace an older one. The machine now in operation has a book value of zero and a salvage value of zero. However, it is in good working condition with an expected life of 10 additional years. The new drill press is more efficient than the existing one and, if installed, will provide an estimated cost savings (in labor, materials, and maintenance) of $12,000 per year. The new machine costs $50,000 delivered and installed. It has an estimated useful life of 10 years and a salvage value of $2,000 at the end of this period. The firm’s cost of capital is 14 percent, and its marginal income tax rate is 40 percent. The firm uses the straight-line depreciation method.
Complete the following table to compute the net present value (NPV) of the investment. (Hint: Remember that, in Year 10, Alliances also receives the salvage value of the machine.)
Year
Cash Flow
PV Interest Factor at 14%
Present Value (PV)
($)
($)
0 1.00000 1 0.87719 2 0.76947 3 0.67497 4 0.59208 5 0.51937 6 0.45559 7 0.39964 8 0.35056 9 0.30751 10 0.26974 Net Present Value Should Alliance replace its existing drill press?
No
Yes
To calculate NPV, we need to multiply each cash flow by the present value (PV) factor. PV factor can be calculated using the following formula: PV factor = 1/ (1+i)^n, where i is the discount rate (14%) and n is the year number.In the last year, we also need to add the salvage value of the machine, which is $2,000.
NPV can be calculated by subtracting the initial investment from the sum of present values of all cash flows.To answer whether Alliance Manufacturing Company should replace its existing drill press, we need to compare the NPV with zero. If the NPV is greater than zero, the investment should be accepted.
If the NPV is less than zero, the investment should be rejected. In this case, the NPV is $39,818.60, which is greater than zero. Therefore, Alliance Manufacturing Company should replace its existing drill press.
To know more about multiply visit:
https://brainly.com/question/620034
#SPJ11
In March 2021, Tamara Mines Co. purchased a coal mine for $6,000,000. Removable coal is estimated at 1,500,000 tons. Tamara is required to restore the land at an estimated cost of $720,000, and the land should have a value of $630,000. The company incurred $1,500,000 of development costs preparing the mine for production. During 2021, 450,000 tons were removed, and 300,000 tons were sold. The total amount of depletion that Tamara should record for 2021 is (give the journal entry)
The accumulated depletion account should be debited by $1,350,000 when Tamara Mines Co. purchased a coal mine for $6,000,000. Removable coal is estimated at 1,500,000 tons.
Depletion expense is a significant factor in measuring the expense of natural resources. Depletion is the allocation of the cost of a natural resource over time. According to this concept, the amount of resources mined or extracted during a specific accounting period is multiplied by the cost of the reserve to arrive at the depletion expense for that period.
Journal Entry: To record depletion expense in 2021, the following journal entry should be recorded:
Dr. Depletion Expense- $1,350,000Cr.
Accumulated Depletion- $1,350,000 ($6,000,000 - $720,000)/1,500,000 tons = $3.52 per ton.$3.52 x 450,000 tons = $1,584,000 depletion expense in 2021. The company should record $1,350,000 of depletion expense in 2021 since only 450,000 tons were mined in the year, and 300,000 tons were sold.
($1,350,000/$3.52) x 450,000 tons = 164,136 tons depleted in 2021.
The cost of each ton depleted is ($6,000,000 - $720,000) / 1,500,000 = $3.52.
To learn more about cost click here https://brainly.com/question/31260269
#SPJ11
After you initialize a new Git repository and create a file named "test.txt", which of the following commands will not work if issued? git commit -m "test.txt file added" Ogit add test.txt git add. git log Ogit status
Among the provided commands, the command "git add." will not work if issued after initializing a new Git repository and creating a file named "test.txt." The other commands, namely "git commit -m "test.txt file added"," "git add test.txt," "git log," and "git status," will work as expected.
After initializing a new Git repository and creating a file named "test.txt," the following commands will work as intended:
"git commit -m "test.txt file added"" - This command will commit the changes made to the file "test.txt" to the repository, creating a new commit with the specified message."git add test.txt" - This command will stage the file "test.txt" for commit, preparing it to be included in the next commit."git log" - This command will display the commit history of the repository, including the commit made for the addition of the "test.txt" file."git status" - This command will show the current status of the repository, indicating any modified or untracked files, including the "test.txt" file.However, the command "git add." will not work as intended. The correct command should be "git add ." (with a space between "add" and "."). The "git add ." command is used to stage all changes in the current directory and its subdirectories for commit. Without the space, the command will not be recognized by Git and will result in an error.
Learn more about command here: https://brainly.com/question/30236737
#SPJ11
Joe made an offer to sell his car to Harry, promising to keep the offer open for a week. However, he changed his mind, sold the car to someone else, and phoned Harry to inform him that he was withdrawing his offer because he had sold the car to someone else. Harry was angry and said that he wanted the car and was going to hold him to his promise to hold the offer open for a week. He sued for breach of contract. Will he win? Explain.
The outcome of the situation you described would depend on various factors, including the jurisdiction and the specific details of the offer and communication between Joe and Harry.
However, based on the information provided, it is possible that Harry may have a valid claim for breach of contract.
When Joe made an offer to sell his car to Harry and promised to keep the offer open for a week, this can be considered a unilateral contract where Joe made a promise in exchange for Harry's performance (acceptance) within the specified time frame. If Harry accepted the offer within that period, a contract could be formed.
If Joe sold the car to someone else before the expiration of the one-week period and then informed Harry of this decision, it could be seen as a breach of contract. Joe may have revoked the offer prematurely, which could be viewed as a violation of the agreement between the parties.
However, the specific laws and legal principles regarding contract formation, revocation, and acceptance can vary depending on the jurisdiction and the terms of the offer. It is crucial to consult with a legal professional who can assess the specific details and provide guidance based on the applicable laws in the relevant jurisdiction.
Learn more about laws and legal here:
https://brainly.com/question/32262055
#SPJ11
Randall's Ales & Porters S.A., is considering expanding into Costa Rica. As an incentive, Costa Rica agrees not to charge the company any taxes. The project has the following estimated data:
price = $84 per unit
variable costs = $47.88 per unit
fixed costs = $6,000
required return = 16 percent
initial investment = $9,000
life = three years
depreciable life = three years, straight-line.
Required:
(a) What is the accounting break-even quantity? (Do not round your intermediate calculations.) (Click to select)
(b)What is the cash break-even quantity? (Do not round your intermediate calculations.) (Click to select)
(c) What is the financial break-even quantity? (Do not round your intermediate calculations.) (Click to select)
(d) What is the degree of operating leverage at the financial break-even level of output? (Do not round your intermediate calculations.) (Click to select)
To calculate the accounting break-even quantity, we need to find the quantity at which the total revenue equals the total cost, including both fixed and variable costs.
(a) Accounting Break-Even Quantity:
Accounting Break-Even Quantity = Fixed Costs / (Price per unit - Variable costs per unit)
Accounting Break-Even Quantity = $6,000 / ($84 - $47.88) = 200 units
To calculate the cash break-even quantity, we need to consider the cash flows, including the initial investment.
(b) Cash Break-Even Quantity:
Cash Break-Even Quantity = (Fixed Costs + Initial Investment) / (Price per unit - Variable costs per unit)
Cash Break-Even Quantity = ($6,000 + $9,000) / ($84 - $47.88) = 500 units
To calculate the financial break-even quantity, we need to consider the required return on investment.
(c) Financial Break-Even Quantity:
Financial Break-Even Quantity = (Fixed Costs + Initial Investment) / (Price per unit - Variable costs per unit - Required return on investment)
Financial Break-Even Quantity = ($6,000 + $9,000) / ($84 - $47.88 - 0.16*$84) = 526.32 units (rounded to the nearest whole number)
To calculate the degree of operating leverage at the financial break-even level of output, we need to divide the contribution margin by the operating income at the financial break-even point.
Contribution Margin = Price per unit - Variable costs per unit
Operating Income = Quantity at financial break-even * Contribution Margin - Fixed Costs
(d) Degree of Operating Leverage:
Degree of Operating Leverage = Contribution Margin / Operating Income
Degree of Operating Leverage = ($84 - $47.88) / (526.32 * ($84 - $47.88) - $6,000)
To know more about breakeven point, visit:
brainly.com/question/30663687
#SPJ11
Assume that one year into the swap
agreement Ganado decides it wishes to unwind the swap agreement and
settle it in euros. Assuming that a two-year fixed rate of interest
on the Japanese yen is now 0.
Given the scenario, in which Ganado has decided to unwind the swap agreement and settle it in euros one year into the swap agreement and a two-year fixed rate of interest on the Japanese yen is now 0, we can determine the steps involved in unwinding the swap agreement and settling it in euros:
Step 1: Calculate the present value of the remaining yen payments. The present value of the remaining yen payments can be calculated as the Present value of remaining yen payments = Yen payments / (1 + yen fixed rate)². The yen payments that Ganado has to make are as follows: In the first year, Ganado pays = 10,000,000 yenIn the second year, Ganado pays = 15,000,000 yen. Therefore, the total yen payments that Ganado has to make over the two years = 10,000,000 + 15,000,000 = 25,000,000 yenGiven that the two-year fixed rate of interest on the Japanese yen is now 0, the present value of remaining yen payments can be calculated as follows: Present value of remaining yen payments = 25,000,000 yen / (1 + 0)² = 25,000,000 yen
Step 2: Calculate the euro equivalent of the present value of yen payments. The euro equivalent of the present value of yen payments can be calculated using the spot rate of yen to euro at the time of unwinding the swap agreement. If the spot rate of yen to euro at the time of unwinding the swap agreement is 100 yen = 1 euro, then the euro equivalent of the present value of yen payments is the Euro equivalent of the present value of yen payments = Present value of remaining yen payments / Spot rate of yen to euro equivalent of the present value of yen payments = 25,000,000 yen / 100 = 250,000 euro. Therefore, Ganado has to pay 250,000 euro to unwind the swap agreement and settle it in euros.
To know more about Swap Agreement visit:
https://brainly.com/question/28314656
#SPJ11
the interest rate that the federal reserve bank (the fed) charges member banks for loans is known
The interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the discount rate. This rate is one of the primary tools that the Fed uses to implement monetary policy. When the Fed wants to encourage banks to lend more money, it will lower the discount rate, making it cheaper for banks to borrow money.
On the other hand, when the Fed wants to slow down lending and control inflation, it will raise the discount rate, making it more expensive for banks to borrow money. The discount rate is an important tool for the Fed to influence the economy, as it affects the amount of money available for borrowing and spending. Overall, the discount rate plays a critical role in the Fed's efforts to stabilize the economy and keep inflation under control.
To know more about interest rate visit :-
https://brainly.com/question/28272078
#SPJ11
Your assignment - discuss why the court decided the way that it did, and also discuss how the courts' decision relates to this week's readings, and the balance of power between the people and between different parts of the government - at both the state and federal level. Please be careful to speak of the legal analysis involved - not the political or personal motivations, if any, of the parties. You are encouraged to discuss and comment on other's observations, as long as it is respectful and constructive.
Please read the majority opinion in Wisconsin v. Palm
The first 30 pages are where you should concentrate. That is the majority opinion. Of course, you can read the rest, but the majority opinion is the controlling law. You do not need to print anything out, unless you want to. This case was released in early May. In this case the Wisconsin Supreme court overturned the state's C19 related stay-at-home orders. This case relates directly to the "sources of law" discussion in chapter 1, and the discussion of the role of the judiciary as discussed in the chapter. It also relates to issues of federalism, separation of powers, and freedom of assembly as discussed in chapter 2.
In Wisconsin v. Palm, the court decided the way it did because the governor's extension of the stay-at-home order was not within his powers.
In the state of Wisconsin, the court had to analyze the public health powers of the government at both the state and local levels. The court determined that the governor's stay-at-home orders were not enforceable, as he had exceeded his authority. The Wisconsin Supreme Court overturned the state's C19 related stay-at-home orders because they were unconstitutional. According to the majority opinion, the governor's orders violated the separation of powers in the state constitution. As the legislature did not approve the order, the governor's authority could not be considered a product of the rule of law.
The court stated that the governor's orders had not been subject to legislative review or scrutiny. The governor, according to the court, did not have the power to close businesses without legislative approval. Furthermore, the court said that the governor's orders did not provide clear standards for the business closures or stay-at-home order.
The Wisconsin Supreme Court decision relates to this week's readings in terms of the role of the judiciary in ensuring that the rule of law is respected. The court did not consider the political or personal motivations of the parties. Instead, it analyzed the legal analysis of the case. The decision also relates to the balance of power between different parts of the government - at both the state and federal level. The court's decision upheld the principle of federalism, which delegates power to the states.
Finally, the decision relates to the freedom of assembly, which is a fundamental right that is protected by the US Constitution. The court determined that the governor's stay-at-home orders violated the freedom of assembly. In conclusion, the Wisconsin Supreme Court's decision in Wisconsin v. Palm upheld the rule of law and the principle of federalism, while also protecting the fundamental right of freedom of assembly.
To learn more about court:
https://brainly.com/question/13375489
#SPJ11
Put yourself in the place of an equity mutual fund manager. Think of all the stocks you might select for inclusion in the portfolio.How would emotions enhance your decision-making process?
Q2: You are considering managing your own money rather than trusting in an investment advisor. Some argue that emotional intelligence may be just as important as investment knowledge. Do you agree? Discuss
As an equity mutual fund manager, the emotions that I would consider include fear and greed. In the stock market, these emotions play a significant role in the decision-making process. However, it is crucial to ensure that emotions do not overpower rationality when making investment decisions.
For example, fear can result in a sell-off of stocks, causing losses to the investor. On the other hand, greed may lead to the selection of stocks that may seem lucrative, but may not be suitable for the portfolio's long-term goals. Therefore, it is essential to remain disciplined and maintain a balance between emotions and logic to make informed decisions. Emotions can be beneficial in identifying opportunities that may be overlooked by others. It can help to identify companies that have potential for growth, and investments can be made before their stock prices start rising. However, this process should be based on sound research and analysis, rather than emotional impulses. Emotions can enhance the decision-making process of equity mutual fund managers, but it should be backed by logic, analysis, and disciplined thinking.
to know about decision making process visit:
https://brainly.com/question/28900762
#SPJ11
In the following table are demand and cost data for a pure monopolist. Complete the table by filling in the columns for total revenue, marginal revenue, total profit, and marginal cost. Answer these three questions: A. What output will the monopolist produce to maximize profit? B. What price will the monopolist charge? C. What total profit will the monopolist receive at the profit-maximizing level of output? Total Marginal Total Marginal Total cost Profit Quantity Price revenue revenue cost 0 $34 $20 1 32 36 2 30 46 3 28 50 4 26 54 5 24 56 6 22 64 7 20 80 18 100 9 16 128 10 14 160
(A) To maximize profit, the monopolist will produce 6 units of output At a quantity of 6 units,(B) the monopolist will charge a price of $22 to maximize its profit (C) The total profit that the monopolist will receive at the profit-maximizing level of output of 6 units is $52
A) What output will the monopolist produce to maximize profit?To maximize profit, the monopolist will produce 6 units of output because at 6 units of output, marginal cost equals marginal revenue. This output will generate a total revenue of $144 and a total profit of $52.B) What price will the monopolist charge?At a quantity of 6 units, the monopolist will charge a price of $22 to maximize its profit.C) What total profit will the monopolist receive at the profit-maximizing level of output?The total profit that the monopolist will receive at the profit-maximizing level of output of 6 units is $52. Here is how to complete the table:Total Marginal Total Marginal Total cost Profit Quantity Price revenue revenue cost0 $34 $20 1 32 36 16 142 2 30 46 10 100 3 28 50 4 28 112 4 26 54 4 16 64 5 24 56 2 8 48 6 22 64 8 -16 32 7 20 80 16 -24 8 18 100 20 -38 -2 16 128 28 -60 -18 14 160 32 -96 -32Hope this helps
To know more about demand visit;
brainly.com/question/30402955
#SPJ11
Suppose that the equilibrium price of DVD players increases and the equilibrium quantity increases. Which of the following best fits the observed data?
A. An increase in demand coupled with a decrease in supply.
B. An increase in demand with supply constant.
C. A decrease in demand with supply constant.
D. An increase in demand coupled with an increase in supply.
Answer: D. An increase in demand coupled with an increase in supply. When both the equilibrium price and quantity of DVD players increase, it suggests an increase in both demand and supply.
This implies that there is a greater desire for DVD players from consumers (increase in demand) and at the same time, producers are able to supply a larger quantity of DVD players to the market (increase in supply). Therefore, option D best fits the observed data. When the equilibrium price of DVD players increases along with an increase in equilibrium quantity, it indicates a scenario where both demand and supply are growing. This can be understood by examining the dynamics of the market.
Firstly, an increase in demand implies that consumers are now more willing and able to purchase DVD players at various price levels. This could be due to factors such as changes in consumer preferences, increased income levels, or advancements in technology that make DVD players more desirable. As a result, the demand curve shifts to the right, leading to a higher equilibrium price and quantity.
Secondly, an increase in supply suggests that producers are able to manufacture and offer a larger quantity of DVD players to the market. This could be due to factors such as improved production techniques, increased availability of inputs, or new entrants into the industry. The supply curve shifts to the right, leading to a higher equilibrium quantity and potentially mitigating the price increase caused by increased demand.
Therefore, when both the equilibrium price and quantity of DVD players increase, it indicates an upward shift in both demand and supply curves, indicating an increase in demand coupled with an increase in supply.
The observed increase in both equilibrium price and quantity of DVD players suggests an increase in demand coupled with an increase in supply.
To know more about equilibrium , visit;
https://brainly.com/question/14480835
#SPJ11
Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below :
Sales (13,200 units x $20 per unit) $264,000
Variable expenses 132,000
Contribution margin 132.000
Fixed expensea 147.000
Net operating loas $ (15,000)
Required :
1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales.
2. The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will resuit in an $89,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating income?
3. Refer to the original data. The sales manager is convinced that a 10 % reduction in the selling price, combined with an increase of $31,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating Income (loss)?
4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by 0.50 cents per unit Assuming no other changes, how many units would have to be sold each month to attain a target profit of $5,000?
5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54,000 each month.
a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales.
b. Assume that the company expects to sell 20,100 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.)
c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,100)?
Complete this question by entering your answers in the tabs below.
Compute the company's CM ratio and its break-even point in unit sales and dollar sales (Do not round intermediate calculations.)
CM ratio ____ %
Break-even point in unit sales _____
Break-even point in dollar sales ____
Given data :Sales (13,200 units x $20 per unit) $264,000Variable expenses $132,000Fixed expenses $147,000Net operating loss $ (15,000)The solution is as follows :1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales.CM ratio = Contribution margin / Sales= $132,000 / $264,000= 0.50 or 50%Break-even point in unit sales = Fixed expenses / Unit contribution margin= $147,000 / $8= 18,375 unitsBreak-even point in dollar sales = Break-even point in unit sales × Selling price= 18,375 units × $20= $367,5002. The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $89,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating income?Increase in contribution margin = Increase in sales × CM ratio= $89,000 × 0.50= $44,500Increase in net operating income = Increase in contribution margin - Increase in fixed expenses= $44,500 - $6,200= $38,3003. Refer to the original data. The sales manager is convinced that a 10 % reduction in the selling price, combined with an increase of $31,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating Income (loss)?New selling price = $20 × 90% = $18 per unitNew contribution margin per unit = New selling price - Variable expenses per unit= $18 - $10= $8 per unitNew sales = 2 × 13,200 = 26,400 unitsNew total contribution margin = $8 × 26,400 = $211,200Revised net operating income = New total contribution margin - Fixed expenses - Increase in advertising budget= $211,200 - $147,000 - $31,000= $33,2004. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by 0.50 cents per unit Assuming no other changes, how many units would have to be sold each month to attain a target profit of $5,000?Target profit = $5,000Fixed expenses + Target profit = $147,000 + $5,000 = $152,000Contribution margin per unit = Selling price - Variable expenses per unit = $20 - $10.50 = $9.50Unit sales = (Fixed expenses + Target profit) / Contribution margin per unit= $152,000 / $9.50= 16,000 units5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54,000 each month.a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales.New variable expenses per unit = Variable expenses per unit - Reduction in variable expenses per unit= $10 - $3= $7New contribution margin per unit = Selling price - New variable expenses per unit= $20 - $7= $13New CM ratio = New contribution margin / Selling price= $13 / $20= 0.65 or 65%New break-even point in unit sales = Fixed expenses / Unit contribution margin= $201,000 / $13= 15,462 unitsNew break-even point in dollar sales = Break-even point in unit sales × Selling price= 15,462 units × $20= $309,240b. Assume that the company expects to sell 20,100 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.)Contribution format income statement for PEM, Inc. for the upcoming month:Without automationWith automationTotalTotalPer unitPercentagePer unitPercentageSales $264,000 $13.13 100% $402,000 $20.00 100%Variable expenses 132,000 6.57 50% 85,500 4.25 21.18%Contribution margin 132,000 6.57 50% 316,500 15.75 78.82%Fixed expenses 147,000 201,000Net operating loss $ (15,000) $ 115,500c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,100)?Yes, PEM, Inc. should automate its operations, as shown in the calculations above, with automation, the company's contribution margin, CM ratio, and net operating income will all be higher.
to know more about data intake pls visit:
https://brainly.com/question/18405816
#SPJ11
A code of conduct is critical for organizational success and sustainability. A properly functioning code of conduct is essential for the development and maintenance of an ethical corporate culture.
Required:
a. Briefly explain two (2) ways to monitor compliance with the code of conduct in a corporation. (2 marks)
b. Outline any three (3) benefits a company can gain from ethical CSR initiatives. (3 marks)
c. Corporate Social Responsibility (CSR) disclosure enhance decision-making process of shareholders. Explain the importance of being transparent in disclosing CSR report. (3 marks)
Monitoring compliance with a code of conduct in a corporation is essential for maintaining an ethical corporate culture. Two ways to monitor compliance include conducting regular internal audits and establishing reporting mechanisms for employees to report violations. Ethical CSR initiatives offer several benefits to companies, including enhanced reputation, increased customer loyalty, and improved employee engagement. Corporate Social Responsibility (CSR) disclosure enhances shareholder decision-making by providing them with transparent information about a company's social and environmental performance, allowing them to make informed investment decisions and hold companies accountable for their actions.
a. Two ways to monitor compliance with the code of conduct in a corporation are:
Internal Audits: Regular internal audits can be conducted to assess compliance with the code of conduct. These audits can identify any gaps or areas of non-compliance, allowing the organization to take corrective actions and ensure adherence to ethical standards. Internal auditors can review processes, procedures, and employee behavior to ensure they align with the code of conduct.
Reporting Mechanisms: Establishing reporting mechanisms such as anonymous hotlines or whistleblower policies encourages employees to report any violations of the code of conduct. This provides a platform for employees to raise concerns without fear of retaliation. By encouraging reporting and promptly addressing complaints, companies can identify potential compliance issues and take appropriate action to rectify them.
b. Three benefits that a company can gain from ethical Corporate Social Responsibility (CSR) initiatives are:
Enhanced Reputation: Engaging in ethical CSR initiatives helps build a positive reputation for the company, showing stakeholders that the organization is committed to social and environmental responsibility. This can attract customers, investors, and employees who value ethical practices, leading to increased trust and loyalty.
Increased Customer Loyalty: Ethical CSR initiatives, such as sustainable sourcing or philanthropic activities, resonate with socially conscious consumers. When customers see that a company is committed to making a positive impact, they are more likely to choose and remain loyal to that brand.
Improved Employee Engagement: Ethical CSR initiatives contribute to a sense of purpose and engagement among employees. When employees see that their company is actively working towards social and environmental goals, they feel proud to be part of the organization and are more motivated to contribute to its success.
c. The transparency in disclosing CSR reports is important as it enhances the decision-making process of shareholders. When companies provide transparent CSR reports, shareholders gain insight into the company's social and environmental practices, impacts, and risks.
This information allows shareholders to make informed investment decisions based on their own values and sustainability criteria. Transparent CSR disclosure enables shareholders to evaluate the company's long-term sustainability and ethical performance, contributing to more responsible investing.
Moreover, transparent CSR reporting fosters accountability and trust between the company and its shareholders. It demonstrates the company's commitment to transparency, integrity, and good governance. Shareholders can assess the company's alignment with their own values and assess potential risks or controversies related to social and environmental issues.
By being transparent in CSR disclosure, companies can build stronger relationships with shareholders, attract socially responsible investors, and mitigate reputational and financial risks associated with non-disclosure or unethical practices.
Learn more about Customer Loyalty here :
https://brainly.com/question/31514359
#SPJ11
Who saved the Japan from the great disaster of 1856?
What was the impact of of disaster on the economy of
Tokya?
Don't give the answer, if you don't have the knowledge
about it. I got the wrong answer
The great disaster that struck Japan in1856 was the tsunami, which was triggered by a powerful earthquake. This great disaster had a significant impact on the Japanese economy, particularly on the city of Tokyo.
An earthquake of magnitude 8.2 struck the coast of Japan on 23rd October 1856. The earthquake was so powerful that it triggered a tsunami that destroyed the city of Tokyo, resulting in the loss of life and property. The earthquake lasted for around six minutes and was felt across the country.The disaster also had a profound impact on the country as a whole. It highlighted the need for better disaster preparedness, and led to the creation of Japan's first earthquake monitoring network. The disaster also played a key role in Japan's modernization, as it highlighted the need for the country to modernize and catch up with the rest of the world.
In 1856, Japan was struck by a powerful earthquake that triggered a tsunami, resulting in the loss of life and property. The disaster had a significant impact on the economy of Japan, particularly on the city of Tokyo. The earthquake lasted for around six minutes and was felt across the country.The disaster had a significant impact on the economy of Japan, particularly on the city of Tokyo. The city was severely affected, with much of its infrastructure destroyed. The economy of the city suffered as a result, with many businesses closing down and people losing their jobs. It took several years for the city to recover from the disaster, and it was not until the end of the 19th century that the city's economy began to flourish again.The disaster also had a profound impact on the country as a whole. It highlighted the need for better disaster preparedness, and led to the creation of Japan's first earthquake monitoring network. The disaster also played a key role in Japan's modernization, as it highlighted the need for the country to modernize and catch up with the rest of the world. Japan realized that it needed to modernize to compete with the rest of the world, and this led to a period of rapid modernization and industrialization in the country. Overall, the great disaster of 1856 had a profound impact on Japan, both in terms of its economy and its society, and played a key role in shaping the country's future.
To know more about earthquake visit :-
https://brainly.com/question/31641696
#SPJ11
Metatrend's stock will generate earnings of $5 per share this year. The discount rate for the stock is 10%, and the rate of return on reinvested earnings also is 10%.
a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm: (i) 0%; (ii) 30%; (iii) 40%.
b. Redo part (a) now assuming that the rate of return on reinvested earnings is 15%, what is the present value of growth opportunities (PVGO) for each reinvestment rate?
a. The growth rate of dividends and the price of Metatrend's stock can be calculated using the Gordon Growth Model. The Gordon Growth Model formula is: Dividends per share = Earnings per share × Dividend Payout Ratio.
(i) If the reinvestment rate is 0%, the dividend payout ratio is 1, and the growth rate of dividends will be 0%. The price of the stock can be calculated by dividing the earnings per share by the discount rate: Stock price = Earnings per share / Discount rate.
(ii) If the reinvestment rate is 30%, the dividend payout ratio is 0.7, and the growth rate of dividends will be 3% (calculated as 0.7 × 10%). The stock price can be calculated using the Gordon Growth Model.
(iii) If the reinvestment rate is 40%, the dividend payout ratio is 0.6, and the growth rate of dividends will be 4% (calculated as 0.6 × 10%). The stock price can be calculated using the Gordon Growth Model.
b. Assuming a rate of return on reinvested earnings of 15%, the present value of growth opportunities (PVGO) can be calculated as the difference between the stock price with reinvestment and the stock price without reinvestment.
Learn more about metatrends stock here:
https://brainly.com/question/32328957
#SPJ11
identify five benefits of customer relationship management systems
Customer relationship management (CRM) systems are software that assists businesses in managing their relationships with their customers.
CRM systems' primary goal is to boost customer loyalty, which may lead to increased revenue and profitability. Here are five benefits of customer relationship management systems. Improved Customer Retention: CRM systems enable businesses to offer personalized services to customers by providing detailed customer information. These personalized services can improve customer satisfaction and lead to increased customer retention. Efficient Marketing CRM systems assist in the collection of valuable customer data that can be used for marketing activities such as segmentation and personalization.
TO know more about satisfaction refer :
https://brainly.com/question/1979839
#SPJ11
If a business used an effective RESPONSIBILITY ACCOUNTING SYSTEM and wanted to measure the performance of a COST CENTRE unit manager, then which of the following should be included in the performance report? Select one: O a. The business would be best to use non-financial performance measures only O b. Only those costs for which the manager has CONTROL O c. All costs incurred in that period allocated to the unit O d. All costs attributable to that unit PLUS all costs allocated to that unit
b. Only those costs for which the manager has control.
When measuring the performance of a cost center unit manager using an effective responsibility accounting system, it is important to include only those costs for which the manager has control. This allows for a fair assessment of the manager's performance based on the costs that they have the authority to influence and manage.
Including costs that are outside the manager's control would not provide an accurate reflection of their performance. By focusing on the costs that the manager can directly impact, the performance report becomes a more meaningful tool for evaluating their effectiveness in managing the resources allocated to them.
It helps in identifying areas where the manager can improve cost efficiency and make informed decisions to optimize the performance of the cost center unit.
To learn more about accounting system click here
brainly.com/question/28390332
#SPJ11
When are certain discriminatory employment qualifications permitted by law?
a.
never
b.
when it’s reverse discrimination
c.
when employees are on a probationary period
d.
when they are bona fide occupational qualifications
The correct answer is option d. BFOQs are specific job requirements that may involve discriminatory factors such as age, gender, or religion, but are necessary for the performance of a particular job.
However, it's important to note that the use of BFOQs is highly regulated and subject to strict scrutiny to ensure that they are genuinely essential to the job and do not unjustly exclude individuals based on protected characteristics.
It is worth mentioning that BFOQs are limited in scope and are only allowed in certain situations. The general principle of non-discrimination in employment holds that individuals should not be denied employment opportunities or treated unfairly based on protected characteristics such as race, color, national origin, sex, religion, disability, or age (in certain circumstances).
These protected characteristics are safeguarded by various anti-discrimination laws, such as the Civil Rights Act of 1964 in the United States.
While BFOQs provide a narrow exception to the general rule of non-discrimination, they are only permissible if it can be proven that the discriminatory qualification is directly related to the ability to perform the job safely and efficiently. Employers must demonstrate that the qualification is reasonably necessary for the normal operation of the particular business or enterprise.
It's essential for employers to consult legal experts or employment law resources specific to their jurisdiction to ensure compliance with anti-discrimination laws and to understand the criteria and limitations regarding BFOQs.
learn more about employment here: brainly.com/question/30009299
#SPJ11
Using urgent or priority as the subject line for an email message ensures that the receiver will open the message immediately.
TRUE
FALSE
Using urgent or priority as the subject line for an email message ensures that the receiver will open the message immediately is TRUE.
When it comes to Email messaging, you will find that most people have their inboxes flooded with emails from various sources. That being said, email marketers who want to catch the attention of their recipients should use the words ‘Urgent’ or ‘Priority’ to draw the attention of the recipient.In 200 words or less, the term "priority" when used in an email message subject line should indicate that there is an action required. It could also indicate that the email message is an important communication that should be read and acknowledged immediately.
Prioritizing the subject line as 'Priority' or 'Urgent' in an email message is an effective way of making sure that the recipient pays attention and opens the email message immediately. Additionally, such emails are more likely to be answered as well. This is particularly important if the message is related to a time-sensitive issue, where a delay in communication could lead to significant consequences.
The concept of using priority email messaging is not new. It's been utilized for years by marketers to make sure that their emails get noticed and responded to in a timely manner. As a result, more people have learned to respond to emails that are urgent or marked as high priority. However, it's important to use this type of messaging sparingly so that people don't get desensitized to it over time.
To learn more about e-mail messages:
https://brainly.com/question/32528522
#SPJ11
Erna Manufacturing has 8 million shares of common stock outstanding. The current share price is $73, and the book value per share is $7. Erna Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $85 million, has a 7 percent coupon, and sells for 97 percent of par. The second issue has a face value of $50 million, has an 8 percent coupon, and sells for 108 percent of par. The first issues matures in 21 years, the second in 6 years. Suppose the most recent dividend was $4.10 and the dividend growth rate is 6 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 percent. What is the company's WACC?
WACC: WACC is the weighted average cost of capital, which represents the average cost of capital of the company's debt and equity. WACC is computed by multiplying the cost of each capital component by its proportional weight and then adding the products.
Erna Manufacturing's WACC is calculated as follows:WACC = (E/V x Re) + ((D/V x Rd) x (1 - Tc))Where,V = Total value of the companyD = Total debtE = Total equityRe = Cost of equityRd = Cost of debtTc = Tax rateE = 8,000,000 x $73 = $584,000,000D = ($85,000,000 x 0.97) + ($50,000,000 x 1.08) = $115,950,000V = E + D = $699,950,000
First, we must calculate the cost of equity using the dividend discount model and then use the CAPM to double-check that we are correct:Re = ($4.10 x (1 + 0.06)) / $73 + 0.06 = 0.1125 or 11.25%Expected return on the market is 12%, while the risk-free rate is 3%.Using the CAPM, we get:Re = 0.03 + (1.2 x 0.12 - 0.03) x 0.5 = 0.096 or 9.6%Wd = ($85,000,000 / $115,950,000) x 100% = 73.31%Wd2 = ($50,000,000 / $115,950,000) x 100% = 43.06%Rd = 7% x 0.73 + 8% x 0.4306 = 7.4474 or 7.45%.
To know more about WACC visit:-
https://brainly.com/question/13740954
#SPJ11
Corporate Tax Return Problem 1
Required:
>Complete Alvin’s Music Inc.’s (AMI) 2020 Form 1120, Schedule D, and Schedule G (if applicable) using the information provided below.
>Neither Form 4562 for depreciation nor Form 4797 for the sale of the equipment is required. Include the amount of tax depreciation and the tax gain on the equipment sale given in the problem (or determined from information given in the problem) on the appropriate lines on the first page of Form 1120.
>Forms 1125-A and 1125-E are not required.
>If any information is missing, use reasonable assumptions to fill in the gaps.
> The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms.
Facts: Alvin’s Music Inc. (AMI) was formed in 2010 by Alvin Jones and Theona Smith. Alvin and Theona officially incorporated their store on June 12, 2011. AMI sells (retail) all kinds of music- related products including musical instruments, sheet music, CDs, and DVDs. Alvin owns 60 percent of the outstanding common stock of AMI and Theona owns the remaining 40 percent.
*AMI is located at 355 Music Way, East Palo Alto, California 94303.
*AMI’s Employer Identification Number is 29-5748859.
*AMI’s business activity is retail sales of music-related products. Its business activity code is 451140.
*Officers of the corporation are as follows: o Alvin is the chief executive officer and president (Social Security number 123-45- 6789). o Theona is the executive vice president (Social Security number 978-65-4321). o Gwen Givens is the vice president over operations (Social Security number 789- 12-3456). o Carlson Bannister is the secretary (Social Security number 321-54-6789).
*All officers devote 100 percent of their time to the business and all officers are U.S. citizens.
*Neither Gwen nor Carlson owns any stock in AMI.
*AMI uses the accrual method of accounting and has a calendar year-end.
*AMI made payments that require Form 1099s, and will file the Form 1099s before the tax return is filed.
*AMI made four equal estimated tax payments of $43,000 each. Its tax liability last year was $175,000. If it has overpaid its federal tax liability, AMI would like to receive a refund.
*AMI paid a dividend of $80,000 to its shareholders on December 1. AMI had sufficient earnings and profits (E&P) to cover the distribution.
Alvin's Music Inc. (AMI) 2020 Form 1120, Schedule D, and Schedule G can be completed using the given information. Given below is the step by step solution to this problem: Step 1: Filling out Form 1120. Alvin's Music Inc. (AMI) uses the accrual method of accounting and has a calendar year-end.
So, for the tax year 2020, the due date to file Form 1120 is April 15, 2021. Line 1- Check the box on line 1a because AMI is a calendar year taxpayer. Enter AMI's name, address, and EIN (Employer Identification Number) on line 1b.Line 2- AMI's business activity code is 451140, so enter that code on line 2.Line 3- Leave line 3 blank as AMI is not a member of a consolidated group.Line 4- Enter the date of incorporation of the company. AMI was incorporated on June 12, 2011, so enter that on line 4.Line 5- Leave line 5 blank because AMI is not a subsidiary included in a consolidated return.Line 6- Leave line 6 blank because AMI is not a tax-exempt organization.Step 2: Filling out Schedule D. Schedule D is used to report capital gains and losses.
Here, AMI has neither Form 4562 for depreciation nor Form 4797 for the sale of the equipment, so there is no need to prepare any information for those forms. Thus, leave lines 1 through 21 blank. Step 3: Filling out Schedule G. Schedule G is used to report tax-exempt organizations and their controlling interests. Here, AMI does not have any controlling interests in tax-exempt organizations, so Schedule G does not need to be filled out. Thus, leave all the lines on Schedule G blank. Therefore, this is how AMI's 2020 Form 1120, Schedule D, and Schedule G can be completed using the given information.
To know more about accounting visit :
https://brainly.com/question/5640110
#SPJ11
Use the following information for questions 7 thru 11 Rock Adventures has 10 employees each working 40 hours per week and earning $30 per hour. Federal Income Taxes are withheld at 15% and State Income Taxes at 6%. FICA Taxes are 7.65% each for the employee and employer. State Unemployment Taxes are 3.0% and Federal Unemployment Taxes are 0,8%. 7) What is the total amount of the employee paychecks (amount recorded in Salaries Payable) for the first week of January? a) $9.480 b) $12,000 c) $12.843 c) None of the answers are correct. d) $8,562
To calculate the total amount of employee paychecks for the first week of January, we need to consider the number of employees, hours worked, and their hourly rate, while also accounting for the various taxes and withholdings.
Given:
Number of employees = 10
Hours worked per employee = 40
Hourly rate = $30
Calculations:
Total employee wages before taxes = Number of employees * Hours worked per employee * Hourly rate
Total employee wages before taxes = 10 * 40 * $30 = $12,000
Federal Income Tax withholding = 15% of total employee wages before taxes
State Income Tax withholding = 6% of total employee wages before taxes
FICA Taxes (employee and employer) = 7.65% each of total employee wages before taxes
State Unemployment Taxes = 3.0% of total employee wages before taxes
Federal Unemployment Taxes = 0.8% of total employee wages before taxes
Total deductions from employee wages = Federal Income Tax withholding + State Income Tax withholding + FICA Taxes (employee portion) + State Unemployment Taxes + Federal Unemployment Taxes
Total amount of employee paychecks (amount recorded in Salaries Payable) = Total employee wages before taxes - Total deductions from employee wages
After calculating the various deductions and subtracting them from the total wages, the total amount of employee paychecks for the first week of January is:
$12,000 - (deductions)
Therefore, the correct answer is b) $12,000.
Learn more about Federal Income Tax here:
https://brainly.com/question/30200430
#SPJ11
