The statement "Generally, using legalese and sophisticated phrasings will impress most readers, particularly in tech or business writing" is a False statement.
What is legalese?
Legalese is a terminology that is generally used by the legal profession. In simple terms, legalese is a specialized language that is applied in legal documents. The legalese is frequently utilized to imply things with utmost clarity, without leaving any kind of space for confusion or misinterpretation.
Why should one avoid using sophisticated phrasings in writing?
Sophisticated phrasings are typically unfamiliar to people, and using them in writing can cause confusion. Moreover, using sophisticated words and terms can make the readers feel that the writer is attempting to show off their vocabulary rather than conveying a message.
Therefore, it is advisable to avoid using sophisticated phrasings while writing.
Likewise, using legalese and sophisticated phrasings will not impress most readers, particularly in tech or business writing. This is because most readers, even those in the tech or business industry, prefer simple and straightforward language to complicated vocabulary.
In conclusion, it is vital to use simple language and avoid sophisticated phrasings while writing.
The use of legalese is also discouraged unless it is necessary to imply things with utmost clarity.
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A service is a type of business in which where the major product can be weighed or measured. True False . Third Party Logistics Providers is the main cost criterion used in analyzing a logistics network. True False. The following are objectives of sourcing Provide an interrupted flow of materials, supplies, and services Differentiate, whenever possible, the items bought Purchase products at the highest cost Accomplish purchasing objectives at the maximum administrative costs None of the above
A service is a type of business in which where the major product can be weighed or measured.False - Third Party Logistics Providers is not the main cost criterion used in analyzing a logistics network.None of the above - The following are objectives of sourcing: Provide an interrupted flow of materials, supplies, and services.
Differentiate, whenever possible, the items bought.Explanation:Sourcing is the procedure for identifying, selecting, and collaborating with suppliers of goods and services. The procedure includes creating and maintaining a long-term partnership with the vendor to ensure a continuous supply of the necessary raw materials for the organization's production or operations.
The following are objectives of sourcing:Provide an interrupted flow of materials, supplies, and services.Differentiate, whenever possible, the items bought.Purchase products at the lowest possible total cost while also maintaining or increasing the quality level of goods and services purchased.Accomplish purchasing objectives at the lowest possible administrative costs.
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You must decide between two mutually exclusive projects. Project A has cash flows of $10,000; $5,000; $5,000; and $5,000; for years 0 through 3, respectively. Project B has cash flows of -$20,000; $10,000; $10,000; and $10,000; for years 0 through 3, respectively. The firm has decided to assume that the appropriate cost of capital is 10% for both projects. Which project should be chosen? Why?
Select one:
a. Project A's NPV > Project B's NPV.
b. A or B; Makes no difference which you choose because the IRR for A is identical to the IRR for B and both IRRs are greater than 10 percent, the cost of capital.
c. Neither A nor B; The NPVs of both projects are negative
d. Project B's NPV > Project A's NPV.
NPV (Net present value) is the total sum of cash flows in the future and present reduced by the opportunity cost (cost of capital).
In this scenario, a company has to decide between Project A and Project B. It is important to determine which of these projects should be taken up by analyzing their NPV in relation to the cost of capital.
NPV determines the cash inflow and outflow of an investment over time, making it an important decision-making metric for businesses.
In this case, Project A has cash flows of $10,000; $5,000; $5,000; and $5,000; for years 0 through 3, respectively. Project B, on the other hand, has cash flows of -$20,000; $10,000; $10,000; and $10,000; for years 0 through 3, respectively.
To choose the right project for investment, it is crucial to calculate the NPV of each project using the formula NPV = Sum of [CF/(1+r)^t].Where, CF = cash flow, r = discount rate (cost of capital), and t = time. In this case, since the cost of capital for both projects is 10%, the calculations will be easy to perform.
Project A has an NPV of $15,470, while Project B has an NPV of $9,077. Therefore, since Project A has a higher NPV than Project B, we can conclude that Project A should be taken up. Answer: a. Project A's NPV > Project B's NPV.
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The Industrial Revolution created a dramatic divergence in the living standards around the world. Explain why the international trade created even stronger incentives for innovation in British Manufacturing. Cite all sources and use critical analysis
During the Industrial Revolution, the world experienced a significant divergence in living standards. The international trade made the incentive for innovation in British manufacturing even stronger.
The IR's inventions and innovations increased production efficiency, leading to a surge in manufacturing and mass production. Britain's monopoly over the production of these machines provided them with a competitive advantage, and its colonies became captive markets for the goods they produced. According to Crafts (2010), Britain's competitive advantage in the cotton industry allowed them to control 85% of global cotton production by 1820. The control Britain had over the production of these commodities further incentivized the country to continue to innovate, creating more efficient and effective ways to manufacture and transport these goods.
In conclusion, the international trade created even stronger incentives for innovation in British manufacturing during the Industrial Revolution.
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08) Understand the concepts of equal opportunity, diversity management and work-life balance
Equal opportunity, diversity management, and work-life balance are critical concepts in the workplace.Equal opportunity refers to the idea that all employees, regardless of their gender, race, religion, or sexual orientation, should be treated fairly.
Employers must ensure that job opportunities, salaries, promotions, and other benefits are accessible to all employees without discrimination. Fair hiring practices, such as using objective criteria in the selection process, are critical in achieving equal opportunity in the workplace.Diversity management entails recognizing and valuing the differences among employees. It includes developing policies and practices that support a diverse workforce and fostering an inclusive culture. Diversity management encourages all employees to feel valued and respected, which, in turn, leads to higher job satisfaction and improved productivity.Work-life balance is the balance between work commitments and personal life. Achieving work-life balance can help employees avoid burnout, enhance their mental and physical health, and improve job satisfaction. Employers can facilitate work-life balance by providing flexible work arrangements, such as remote work or flexible hours. A supportive culture that respects employees' personal lives is also critical to achieving work-life balance.In conclusion, equal opportunity, diversity management, and work-life balance are crucial concepts that can improve job satisfaction, productivity, and overall well-being. Employers who invest in these concepts will reap the benefits of a diverse and inclusive workforce.
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The amount should be about 3 A4 pages or less. 1.Company selection and company introduction: Additional points when selecting an unlisted company(listed company(listed companies can also be selected 2.Introduce two or more comparison companies and explain why they were selected: It is important to explain in detail why these comparison companies were selected 3.Select multiple(ex.PER,PBR)to be used and explain why 4.Calculation of multiples of comparative companies and presenting appropriate stock prices of selected companies. 5.Presenting limitations and potential problems of the analysis method.
Some limitations include choosing the incorrect comparison companies, not considering qualitative data, and having different fiscal year-ends.
In a comparative analysis, a company must be chosen as a benchmark, and multiples of the comparative firms must be calculated and compared. Here are the steps you must take to complete a comparative analysis: Company selection and company introduction: An unlisted company must be chosen, and the company must be introduced. Additional points when selecting an unlisted company are that the company must be a competitor of the comparative company and must be able to present the necessary financial statements for the calculation of multiples. It measures the relationship between a company's stock price and its earnings per share. To calculate the price-to-earnings ratio, the stock price per share is divided by the earnings per share. To calculate the price-to-book ratio, the stock price per share is divided by the book value per share. Presenting limitations and potential problems of the analysis method: The limitations and potential issues of the comparative analysis method must be presented. Some limitations include choosing the incorrect comparison companies, not considering qualitative data, and having different fiscal year-ends.
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For Johnson and Johnson, I need help addressing the FV based off
the data from the end of Q1 2022. Thanks!
Time Value of Money - Future Value Annuity
Number of Years
Rate of Return
Payment
Time Value of Money - Future Value of Lump Sum
Rate
Years
Initial Investment
To calculate the future value (FV) based on the data from the end of Q1 2022 for Johnson & Johnson, we need the following information:
Future Value Annuity:
Number of Years: The number of years for which the annuity payments will be made.Rate of Return: The rate of return or interest rate for the annuity.Payment: The payment amount made at regular intervals.Future Value of Lump Sum:
Rate: The rate of return or interest rate for the lump sum.Years: The number of years for which the lump sum will be invested.Initial Investment: The initial amount invested as a lump sum.Read more about Future Value of an annuity here brainly.com/question/5303391
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Q3: A company offers to lease a system to you for $180 per month for five years. At the end of five years, you have the option to buy the system for $600. You will pay at the end of each month. He will sell the same system to you for $3,700 cash. If the going interest rate is 9%, which is the better offer? (5 Marks)
If the present value of Option 1 is lower than $3,700, then Option 1 is the better offer. However, if the present value of Option 1 is higher than $3,700, then Option 2 is the better offer.
To determine which offer is better, we need to compare the present value of the cash flows associated with each option. The present value takes into account the time value of money, allowing us to compare the value of cash flows at different points in time.
Option 1: Lease with Purchase Option
Under this option, you would pay $180 per month for five years and have the option to buy the system for $600 at the end. To calculate the present value of this option, we need to discount the monthly lease payments and the purchase price at the end of the five-year period. Using a discount rate of 9%, we can calculate the present value of the lease payments and the purchase price separately. Adding them together will give us the total present value of Option 1.
Option 2: Cash Purchase
Under this option, you would purchase the system outright for $3,700 in cash. The present value of this option is simply the cash price itself.
Comparing the present values of the two options, we can determine which offer is better. If the present value of Option 1 is lower than the present value of Option 2, then Option 1 is the better offer. On the other hand, if the present value of Option 1 is higher than the present value of Option 2, then Option 2 is the better offer.
Calculating the present values:
For Option 1, we need to calculate the present value of the monthly lease payments and the purchase price at the end.
For Option 2, the present value is the cash price itself.
After performing the calculations, if the present value of Option 1 is lower than $3,700 (the cash price of Option 2), then Option 1 is the better offer. However, if the present value of Option 1 is higher than $3,700, then Option 2 is the better offer.
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The supply chain manager for Kockin Irdustries, Sean Winoma, nou developed the data shown in the table below for two vendors. Based on the weights and rankings shown which is the preferred vstoon? Click the icon to view the additional information The weighted total for Joglekar Technology in or your response as a whole number). The weighted totalt for men Systems is center your response as a whole number Which is the preferred vendor? Choose the correct answer below OAJoglekar Technology is the preferred vendor OB Both vendors are equal preferable C. Samson Systems is the preferred vendor More Info JOGLEKAR SIEMSEN SYSTEMS, TECHNOLOGY, LLC INC. SCORE (1-5) SCORE (1-5) VENDOR CRITERION WEIGHT (5 HIGHEST) (5 HIGHEST) Engineering Competence 20 3 5 Process Capability 18 3 2 Cost 12 3 3 Quality 20 4 Performance to Schedule 15 5 After-Sales Service 15 3 Total 100 Notice that the weights in this problem are expressed in whole units (that sum to 100), not percentages, so each supplier's total score will be between 100 and 500.
The correct option is OA Joglekar Technology is the preferred vendor.
The preferred vendor is Joglekar Technology. Given below is the calculation of the weighted total for both the vendors:
Joglekar Technology: The sum of the product of each criterion score and its corresponding weight for Joglekar Technology is calculated as follows:
Engineering competence: (20 × 3) = 60
Process capability: (18 × 3) = 54
Cost: (12 × 3) = 36
Quality: (20 × 4) = 80
Performance to schedule: (15 × 5) = 75
After-sales service: (15 × 3) = 45
The sum of these weighted scores is 60 + 54 + 36 + 80 + 75 + 45 = 350. Therefore, the weighted total for Joglekar Technology is 350.
Samson Systems: The sum of the product of each criterion score and its corresponding weight for Samson Systems is calculated as follows:
Engineering competence: (20 × 5) = 100
Process capability: (18 × 2) = 36Cost: (12 × 3) = 36
Quality: (20 × 3) = 60
Performance to schedule: (15 × 4) = 60
After-sales service: (15 × 3) = 45
The sum of these weighted scores is 100 + 36 + 36 + 60 + 60 + 45 = 337.
Therefore, the weighted total for Samson Systems is 337. Since Joglekar Technology has a higher weighted total (350 > 337), it is the preferred vendor.
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The risk-adjusted discount rate for a proposed project is equivalent to:
Select one:
a.
the company's average cost of capital.
b.
its cost of capital.
c.
the company's cost of debt financing.
d.
the company's cost of equity financing.
e.
the industry cost of capital.
The risk-adjusted discount rate for a proposed project is equivalent to: The correct option is B. its cost of capital.
Cost of capital is the minimum required return that an organization requires to gain access to funds, whether by borrowing, equity, or a combination of both. Cost of capital, in other words, is the opportunity cost of funds, and therefore it is utilized as a benchmark to assess any investment returns in business entities.
The risk-adjusted discount rate is a term utilized to account for the possibility of losses in a given investment opportunity. It is frequently used to determine the discount rate applied to a particular cash flow. This discount rate is used to calculate a net present value (NPV) for the project.
A risk-adjusted discount rate is a rate used to determine the net present value (NPV) of an investment while also taking into account the risk of future cash flows. The discount rate, adjusted for risk, is used to estimate a more accurate present value of future cash inflows. It means that the required return for a project is higher than that of a project that has less uncertainty. The company's cost of capital is used to determine the risk-adjusted discount rate for a proposed project. So, the correct option is B.
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Home produces Cloth (C) and Food (F) using two factors of production: Labour (L) and Land (T). Land is used intensively in the production of Cloth and Labour is used intensively in the production of Food. The endowment of Labour at Home is L = 4000 and the endowment of Land at Home is T = 2000. Explain whether Lc = Tc is possible in an autarky equilibrium for the Home country (Peaut). (Drawing a box that shows the resource endowments may be helpful.) 2. What is intra-industry trade? In a world with two countries (Home and Foreign) and an industry (A) with differentiated products, explain whether Paut + P*aut is necessary for countries to benefit from voluntary trade. If the condition is not necessary, provide a brief explanation of how benefits arise in this model. 1. There are two countries: Home and Foreign. There are two goods/industries: Forestry products (F) and Electronics (E). These goods are produced using two factors of production: Labour (L) and Capital (K). The production of Electronics is Capital intensive. The consumers in each country have identical preferences and enjoy consuming both goods. Carry out your analysis using the Heckscher-Ohlin model. (b) Provide an explanation of how movement from Autarky to Free-Trade will affect relative factor prices (™) in the Home country. In addition, describe the distributional effects of a move to free-trade (changes to incomes/real earnings for the different factors of production). Your answer should include a figure that ties relative goods prices with relative factor prices and relative factor intensities/demands.
The given equation is: Lc = Tc is possible in an autarky equilibrium for the Home country (Peaut).From the given equation, it can be seen that Lc = Tc cannot be possible in an autarky equilibrium for the Home country (Peaut). The land is used intensively in the production of cloth and Labour is used intensively in the production of Food.
Thus, it can be concluded that the Home country (Peaut) cannot produce Cloth and Food using equal amounts of Labour and Land.2. Intra-Industry Trade: Intra-Industry Trade refers to the exchange of goods between countries that belong to the same industry. For example, trade of cars between the USA and Japan.The condition Paut + P*aut is not necessary for countries to benefit from voluntary trade.
Even if this condition is not met, countries can still benefit from trade. The benefits arise in this model due to specialization. If countries specialize in producing goods that they are best at, then they can trade and consume goods that they are not good at producing. Thus, countries can benefit from trade even if the condition Paut + P*aut is not met.1. The Heckscher-Ohlin model is used to explain international trade patterns. The model explains that countries will produce and export goods that use their abundant factors of production and import goods that use their scarce factors of production. In this case, the Home country is producing two goods/industries: Forestry products (F) and Electronics (E) using two factors of production: Labour (L) and Capital (K).The movement from Autarky to Free-Trade will affect relative factor prices (™) in the Home country as follows:If the Home country has an abundance of capital and a scarcity of labor, then the relative price of labor (w) will increase while the relative price of capital (r) will decrease. This is because in the free trade situation, the Home country will export the capital-intensive good (Electronics) and import the labor-intensive good (Forestry products). As a result, the demand for labor in the Home country will increase, and the demand for capital will decrease.The distributional effects of a move to free-trade (changes to incomes/real earnings for the different factors of production) can be explained as follows:If the Home country has an abundance of capital and a scarcity of labor, then the owners of capital will gain from free trade while the owners of labor will lose. This is because the relative price of capital (r) will decrease, and the relative price of labor (w) will increase. Thus, the real earnings of the owners of capital will increase while the real earnings of the owners of labor will decrease.
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the inspect and adapt event always starts with which activity?
The inspect and adapt event always starts with the "Retrospective" activity.
The Retrospective is the first activity of the inspect and adapt event in Agile frameworks such as Scrum. It is a dedicated time for the team to reflect on the previous increment and identify areas of improvement. During the Retrospective, team members openly discuss what went well, what didn't go well, and any potential actions or adjustments that can be made to enhance future performance.
The purpose of starting the inspect and adapt event with a Retrospective is to foster a culture of continuous improvement within the team. By reflecting on their work, the team members can identify patterns, bottlenecks, or areas where they can enhance their collaboration, processes, or product development. The Retrospective encourages open communication, honest feedback, and a focus on learning and adaptation. It sets the stage for the subsequent activities in the inspect and adapt event, such as problem-solving, planning, and alignment, which aim to address the identified areas of improvement and drive progress in the upcoming iterations or increments.
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Which method of payment Impiles the highest risk for the
seller
A) Documentary coflection
B) cash in advance
C) Common check
D) Letter of Credit
The method of payment that implies the highest risk for the seller is option C) Common check.
When a seller accepts a common check as a method of payment, there is a higher risk compared to other options. A common check is a form of payment where the buyer issues a check drawn on their bank account, which the seller deposits into their own bank account. However, there is a risk associated with common checks because the buyer's account may not have sufficient funds to cover the payment. If the check bounces or is returned due to insufficient funds, the seller may not receive the full payment or any payment at all. In contrast, other payment methods mentioned have lower risks for the seller. Cash in advance (option B) implies the lowest risk as the seller receives the payment upfront before providing the goods or services.
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Doc’s Ribhouse had beginning equity of $82,000; net income of $45,000, and withdrawals by the owner of $22,000. The owner made no investments during the year. Calculate the ending equity.
$(15,000).
$59,000.
$15,000.
$149,000.
$105,000.
Given, Beginning equity of Doc’s Ribhouse = $ 82,000 Net income = $45,000 Withdrawal by the owner = $22,000. The correct answer is $105,000.
The owner made no investments during the year. Ending equity is calculated by adding the net income to the beginning equity and subtracting the withdrawals made by the owner.
During the year, there was no investment, therefore the ending equity would be calculated as Ending equity = Beginning equity + Net income - Withdrawals. Therefore, the ending equity of Doc’s Ribhouse will be: Ending equity= $82,000 + $45,000 - $22,000= $105,000
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Which of the following are the phases of an effective strategy?
1.Alignment, Foundations, Sophistication, Formalize, Continuous improvement
2.Assessment, Foundations, Structure, Formalize, Continuous improvement
3.Assessment, Foundations, Sophistication, Formalize, Continuous improvement
4.Assessment, Foundations, Sophistication, Familiarize, Continuous improvement
The correct answer is option 3: Assessment, Foundations, Sophistication, Formalize, Continuous improvement.
The phases of an effective strategy are:
Assessment: This is the first step and involves evaluating the present situation of the company, including what is working, what is not, and why.
Foundations: This stage entails defining the fundamental principles of the company, such as its vision, mission, and values, as well as the strategy's guiding principles and objectives.
Sophistication: In this stage, the organization determines the most appropriate course of action based on the analysis of the data it has gathered in the assessment phase and the establishment of a structure for executing the strategy.
Formalize: In this stage, the organization documents the strategy, including its objectives, goals, and how it intends to accomplish them, as well as the metrics it will use to determine whether it is successful or not. Continuous
improvement: Finally, this stage entails continuously refining the strategy based on the results achieved, the feedback received, and the latest developments in the market and the organization's operating environment.
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This is an individual assignment. Select one of the following companies for your case study assignment:
McDonald’s
Marriott
Tim Horton’s
Air Canada
The Keg
TripCentral.ca
Carnival Cruise Line
Fairmont
Best Western
Etihad Airways
Wahlburgers
Contiki Tours
Once you have chosen your company, do some research and using the information that you found, along with your own analysis based on what you’ve learned from the course lessons so far, include the following information:
Provide a very brief introduction and background of the company you have chosen. This only needs to be a short paragraph for this assignment.
What type of strategies does the company currently use? The company likely follows a variety of different types of strategies, but for this assignment identify ONE type of strategy from the options below and explain.
Corporate level (diversified business? diversified markets? etc.)
Network level (strategic alliances? franchise? management contract?)
Business level (positioning? access-based, variety based, cost leadership, etc?)
Who are the company’s main competitors? The company will have many direct and indirect competitors. Identify which companies would be considered their MAIN direct competitors and provide and explanation of why they are considered main competitors. In your answer, you can consider things such as similar pricing, similar products/services, similar markets, etc.
You must demonstrate a high level of thinking and analysis, clarity of thought and overall organization and professionalism.
Writing Guidelines
Write your assignment using complete sentences and proper paragraph structure and headings where appropriate. Use correct grammar, spelling, and syntax. Include a cover page, and proper bibliography and in-text citations.
Spelling and grammar do count so make sure that you leave enough time to have someone review your assignment to help you fix any problems.
If you find information from another source, be sure to cite your sources accordingly with a proper Bibliography AND in-text citations. Each outside source that you use must be cited as both an in-text citation AND in the bibliography. Please review all of the content under the Academic Integrity folder under the Course Information menu tab.
For this case study assignment, I have chosen McDonald's as the company to analyze. McDonald's is a global fast food chain that is recognized for its hamburgers, french fries, and other fast food items. It operates in numerous countries and has a strong presence in the global fast food market.
McDonald's employs a variety of strategies to maintain its competitive position in the market. One key strategy it uses is business-level positioning.
McDonald's positions itself as a convenient and affordable fast food option for customers, emphasizing its quick service and value pricing. It focuses on providing a consistent menu and experience across its locations, ensuring that customers can expect the same quality and taste wherever they visit.
In terms of competitors, McDonald's faces competition from other fast food chains such as Burger King, Wendy's, and KFC. These companies are considered main competitors as they offer similar products, target similar customer segments, and compete for market share in the fast food industry.
They often have comparable pricing strategies and engage in promotional activities to attract customers.
McDonald's also faces indirect competition from healthier food options and changing consumer preferences, which have led to increased demand for healthier alternatives. To address this, McDonald's has introduced healthier menu options and made efforts to improve the quality of its ingredients.
Overall, McDonald's employs a business-level positioning strategy, competes with other major fast food chains, and addresses evolving consumer preferences in the industry.
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The following table summarizes sales forecasts for Stirling Corp. The unit price is $40. The unit cost is $25. In addition, annual fixed expenses are expected to be $35,000.
Year Unit Sales
1 22,000
2 30,000
3 14,000
4 9,000
5 5,000
To calculate the total sales revenue, total cost, and net income for each year, we can use the given unit sales, unit price, and unit cost information.
Year 1:
Unit Sales: 22,000
Unit Price: $40
Unit Cost: $25
Total Sales Revenue: Unit Sales × Unit Price = 22,000 × $40 = $880,000
Total Cost: Unit Sales × Unit Cost = 22,000 × $25 = $550,000
Net Income: Total Sales Revenue - Total Cost - Fixed Expenses = $880,000 - $550,000 - $35,000 = $295,000
Year 2:
Unit Sales: 30,000
Unit Price: $40
Unit Cost: $25
Total Sales Revenue: Unit Sales × Unit Price = 30,000 × $40 = $1,200,000
Total Cost: Unit Sales × Unit Cost = 30,000 × $25 = $750,000
Net Income: Total Sales Revenue - Total Cost - Fixed Expenses = $1,200,000 - $750,000 - $35,000 = $415,000
Year 3:
Unit Sales: 14,000
Unit Price: $40
Unit Cost: $25
Total Sales Revenue: Unit Sales × Unit Price = 14,000 × $40 = $560,000
Total Cost: Unit Sales × Unit Cost = 14,000 × $25 = $350,000
Net Income: Total Sales Revenue - Total Cost - Fixed Expenses = $560,000 - $350,000 - $35,000 = $175,000
Year 4:
Unit Sales: 9,000
Unit Price: $40
Unit Cost: $25
Total Sales Revenue: Unit Sales × Unit Price = 9,000 × $40 = $360,000
Total Cost: Unit Sales × Unit Cost = 9,000 × $25 = $225,000
Net Income: Total Sales Revenue - Total Cost - Fixed Expenses = $360,000 - $225,000 - $35,000 = $100,000
Year 5:
Unit Sales: 5,000
Unit Price: $40
Unit Cost: $25
Total Sales Revenue: Unit Sales × Unit Price = 5,000 × $40 = $200,000
Total Cost: Unit Sales × Unit Cost = 5,000 × $25 = $125,000
Net Income: Total Sales Revenue - Total Cost - Fixed Expenses = $200,000 - $125,000 - $35,000 = $40,000
Therefore, the total sales revenue, total cost, and net income for each year are as follows:
Year 1:
Total Sales Revenue: $880,000
Total Cost: $550,000
Net Income: $295,000
Year 2:
Total Sales Revenue: $1,200,000
Total Cost: $750,000
Net Income: $415,000
Year 3:
Total Sales Revenue: $560,000
Total Cost: $350,000
Net Income: $175,000
Year 4:
Total Sales Revenue: $360,000
Total Cost: $225,000
Net Income: $100,000
Year 5:
Total Sales Revenue: $200,000
Total Cost: $125,000
Net Income: $40,000
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The following table summarizes sales forecasts for Stirling Corp. The unit price is $40. The unit cost is $25. In addition, annual fixed expenses are expected to be $35,000.
Year Unit Sales
1 22,000
2 30,000
3 14,000
4 9,000
5 5,000
Thereafter 0
Stirling has developed a new improved water flow system that requires an additional investment of $425,000. Old equipment is the same asset class (25% CCA rate) can be sold for $25,000. After 5 years the asset will have a value of zero. The firm’s tax rate is 35%.
The net working capital requirement (including the initial working capital needed in year 0) is expected to be 25% of the following years sales. The company requires a 12% return on projects of this nature.
Provide a detailed explanation of the current direction of the Indian economy (what part of the business cycle is the economy in presently)- Graph India's business cycle
The business cycle refers to the fluctuation of economic activity around its long-term trend. It typically consists of four phases: expansion, peak, contraction, and trough.
As of September 2021, the Indian economy was in the post-pandemic recovery phase following the severe impact of the COVID-19 pandemic. Here is a breakdown of the current direction of the Indian economy:
1. Contraction (March 2020 - June 2020): The Indian economy experienced a sharp contraction in the first quarter of 2020 due to the nationwide lockdown imposed to contain the spread of COVID-19. Various sectors, including manufacturing, construction, services, and trade, faced significant disruptions.
2. Trough (June 2020 - September 2020): The economy reached its lowest point in the second quarter of 2020, marked by reduced economic activity and high levels of unemployment. However, gradual easing of lockdown restrictions led to a partial recovery.
3. Recovery (September 2020 - present): Since the third quarter of 2020, the Indian economy has been experiencing a gradual recovery. The government implemented several measures to revive economic activity, including fiscal stimulus packages, reforms, and policy support. Industries such as agriculture, information technology, pharmaceuticals, and e-commerce performed relatively well during this phase.
During the recovery phase, the Indian economy witnessed improvements in various macroeconomic indicators. For example:
a) Gross Domestic Product (GDP) growth: After a sharp decline in GDP growth in 2020, the Indian economy started to rebound, with positive growth rates recorded in subsequent quarters.
b) Industrial production: Industrial production, measured by the Index of Industrial Production (IIP), showed signs of recovery, although the growth rate varied across sectors.
c) Inflation: Inflation levels remained relatively moderate during this period, although certain sectors experienced temporary price increases due to supply chain disruptions.
d) Employment: The labor market gradually recovered as economic activity resumed. However, there were persistent challenges in terms of job losses and underemployment, particularly in sectors heavily impacted by the pandemic.
It's important to note that the direction of the Indian economy can change over time based on various factors such as government policies, global economic conditions, and the management of the ongoing pandemic. For the most up-to-date information and a visual representation of the Indian business cycle, I recommend referring to official sources such as the Reserve Bank of India (RBI), Ministry of Statistics and Program Implementation, or reputable economic research institutions.
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Your friend Jethro informs you that his uncle has surprisingly bequeathed to him $600,000 under the provisions of his will. He informs you that his initial thoughts are to apply this sum to maximize his retirement income.
Jethro is 35 years old and is employed as an administrator at a university. He is not married and is not presently in a relationship. He owns his own house, which was left to him by his father under the terms of his will. Jethro intends to retire at age 65.
REQUIRED:
In Jethro’s situation, discuss the investment options which may be considered to achieve his goal of maximizing his retirement income. What do you consider to be the two most appropriate options, and provide an explanation for your conclusions?
In Jethro's situation, there are several investment options he can consider to maximize his retirement income. The two most appropriate options to consider are:
Retirement Savings Account (IRA or 401(k)): Jethro should take advantage of tax-advantaged retirement savings accounts like an Individual Retirement Account (IRA) or an employer-sponsored 401(k) plan. These accounts offer tax benefits, such as tax-deferred growth or tax-free withdrawals in retirement. Jethro can contribute a portion of his $600,000 inheritance to these accounts, potentially reducing his taxable income and maximizing his retirement savings over time.Diversified Investment Portfolio: Jethro should consider investing a portion of his inheritance in a diversified investment portfolio. This can include a mix of stocks, bonds, mutual funds, and other investment vehicles based on his risk tolerance and investment goals. Diversification helps spread the risk and can provide growth potential over the long term. Jethro can consult with a financial advisor to determine the appropriate asset allocation based on his age, risk profile, and retirement timeline.Retirement savings accounts provide tax advantages, such as tax deductions on contributions (for traditional IRAs and 401(k)s) or tax-free withdrawals in retirement (for Roth IRAs and Roth 401(k)s). By contributing to these accounts, Jethro can maximize his retirement savings while potentially reducing his tax liability.Diversified investment portfolios offer growth potential and can help Jethro build wealth over the long term. By investing in a mix of assets, he can spread the risk and potentially earn higher returns. With a long investment horizon until retirement, Jethro can take advantage of compounding growth and withstand short-term market fluctuations.It's important for Jethro to consider his risk tolerance, financial goals, and time horizon when selecting investment options. He may also want to consult with a financial advisor who can provide personalized advice based on his specific circumstances. Additionally, Jethro should regularly review and adjust his investment strategy as he gets closer to retirement and reassess his income needs at that time.
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Stratosphere Wireless is examining its cash conversion cycle. The company expects its cost of goods sold, which equals 60 percent of sales, to be $648,000 this year. Stratosphere normally turns over inventory 30 times per year, accounts receivable is turned over 18 times per year, and the accounts payable turnover is 36. Assume there are 360 days in a year. Calculate the cash conversion cycle. Round your answer to the nearest whole number. days Calculate the average balances in accounts receivable, accounts payable, and inventory. Round your answers to the nearest dollar.
Accounts receivable: $
Accounts payable: $ I
nventory: $
The average balances in accounts receivable, accounts payable, and inventory are as follows:Accounts receivable: $54,000 Accounts payable: $64,800 Inventory: $54,000
Cash conversion cycle is a metric used in management accounting that quantifies the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. The formula for the cash conversion cycle (CCC) is Inventory Conversion Period + Receivables Collection Period – Payables Deferral Period. Calculation of Cash Conversion Cycle: Average Inventory Turnover=360/Inventory Conversion PeriodAverage Accounts Receivable Turnover=360/Receivables Collection Period
Average Accounts Payable Turnover=360/Payables Deferral Period. So, the calculation of the cash conversion cycle for Stratosphere Wireless company is as follows: Average Inventory Turnover = [tex]360/30 = 12[/tex] times
Average Accounts Receivable Turnover [tex]= 360/18 = 20[/tex] timesAverage Accounts Payable Turnover [tex]= 360/36 = 10[/tex] timesCost of Goods Sold (COGS) = 60% of sales = 0.60 x salesCost of Goods Sold (COGS) = $648,000, therefore0.60 x Sales = $648,000 Sales =[tex]$648,000 / 0.60 = $1,080,000[/tex] Inventory Turnover = 12 timesAverage Age of Inventory [tex]= 360 / 12 = 30[/tex] daysReceivables Turnover = 20 times average
Collection Period [tex]= 360 / 20 = 18[/tex] daysPayables Turnover = 10 timesPayables Deferral Period = 360 / 10 = 36 daysCash Conversion Cycle =[tex]30 + 18 - 36 = 12[/tex] daysTherefore, the cash conversion cycle for Stratosphere Wireless company is 12 days.The Average balances in accounts receivable, accounts payable, and inventory are as follows:Inventory = Cost of Goods Sold / Average Inventory Turnover= [tex]$648,000 / 12[/tex] = $54,000Accounts Receivable = Sales / Average Accounts Receivable Turnover= [tex]$1,080,000 / 20[/tex] = $54,000 Accounts Payable = COGS / Average Accounts Payable Turnover=[tex]$648,000 / 10[/tex]= $64,800.
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Under the Fair and Accurate Credit Transactions Act (FACTA),
a. a creditor may not discriminate against a borrower on the basis of race, sex, religion, or age.
b. a credit card company must promptly investigate and respond to any consumer complaints about a credit card bill.
c. a debt collector may not harass or abuse debtors.
d. a consumer has the right to obtain one free credit report every year from each of the three major reporting agencies.
Under the Fair and Accurate Credit Transactions Act (FACTA), a consumer has the right to obtain one free credit report every year from each of the three major reporting agencies. This law was passed by the U.S. Congress in 2003 to help consumers fight identity theft and errors on credit reports.
The Act is actually an amendment to the Fair Credit Reporting Act (FCRA) and provides numerous protections to consumers, including the right to review their credit reports, the right to dispute any errors on their credit reports, and the right to receive notice if their personal information is used to obtain credit fraudulently.
Furthermore, FACTA requires that businesses take steps to protect their customers' sensitive information from identity theft. Businesses are required to follow proper data destruction procedures to ensure that any personal information is properly destroyed before it is discarded.
Overall, FACTA provides important protections for consumers to ensure that their credit reports are accurate and that their personal information is protected from identity theft.
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Moving to another question will save this response. Question 23 Once managers of The Orchid have decided on their product concept and marketing strategy, they cant evaluate the business atractiveness of the proposal in the new product development process. O a business analysis O b. test marketing Oc, business process reengineering O d. business transformation:
Once managers of The Orchid have decided on their product concept and marketing strategy, they evaluate the business attractiveness of the proposal through a business analysis.
After deciding on the product concept and marketing strategy, the next step in the new product development process is to evaluate the business attractiveness of the proposal. This evaluation is typically done through a comprehensive business analysis. A business analysis involves assessing various aspects of the proposed product or service to determine its potential viability in the market. This analysis includes evaluating factors such as market demand, competitive landscape, target customers, pricing strategy, distribution channels, and financial projections. It aims to provide a thorough understanding of the potential risks, benefits, and overall feasibility of introducing the new product into the market.
By conducting a business analysis, The Orchid's managers can assess whether the proposed product aligns with the company's strategic objectives, meets customer needs, and has the potential to generate desired financial returns. The analysis helps in making informed decisions regarding resource allocation, investment, and the overall business strategy for the new product. Overall, the business analysis stage plays a crucial role in evaluating the business attractiveness of the proposed product and ensuring that it aligns with the company's goals and objectives.
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Carla Vista Farms reports the following results for the month of November: Sales (11,100 units) Variable costs Contribution margin Fixed costs Net income $699,300 488,400 210,900 122.100 Management is considering the following independent courses of action to increase net income. Course $88,800 1. Increase selling price by 5% with no change in total variable costs. 2. Reduce variable costs to 66% of sales. 3. Reduce fixed costs by $10,000. Calculate net income for the above courses of action. 3. Reduce fixed cost 1. Increase selling price 2. Reduce variable cost to GA A Net Income 734265 488400 122100 Net income Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 5% with no change in total variable costs. 2. Reduce variable costs to 66%% of sales. 3. Reduce fixed costs by $10,000. $ 88,800 Calculate net income for the above courses of action. Course 1. Increase selling price $ 2. Reduce variable cost $ 3. Reduce fixed cost Best course of action is $ Net Income 734265 488
To calculate the net income for each course of action, we need to apply the given changes to the original results.
Course 1: Increase selling price by 5% with no change in total variable costs.
Increase in selling price: 5% of $699,300 = $34,965
New sales revenue: $699,300 + $34,965 = $734,265
New net income: $734,265 - $488,400 (variable costs) - $122,100 (fixed costs) = $123,765
Course 2: Reduce variable costs to 66% of sales.
New variable costs: 66% of $699,300 = $461,598
New contribution margin: $699,300 - $461,598 = $237,702
New net income: $237,702 - $122,100 (fixed costs) = $115,602
Course 3: Reduce fixed costs by $10,000.
New fixed costs: $122,100 - $10,000 = $112,100
New net income: $699,300 (sales) - $488,400 (variable costs) - $112,100 (fixed costs) = $98,800
Based on the calculations, the net income for each course of action is as follows:
Increase selling price: $123,765
Reduce variable costs: $115,602
Reduce fixed costs: $98,800
The best course of action, in terms of maximizing net income, would be to increase the selling price by 5% with no change in total variable costs, resulting in a net income of $123,765.
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Graphics can be added to business reports to clarify data, create visual interest, and make numerical data meaningful. Identify five categories of graphics and the type of data each is best used to illustrate. Then give an original example of when each could be used
Graphics are an excellent way to create visual interest and communicate data effectively in business reports. They can help illustrate trends and patterns that might be difficult to discern from just looking at the raw numbers.
Here are five categories of graphics and the type of data each is best used to illustrate:
1. Line graphs: Line graphs are best used to show trends over time, such as changes in revenue or sales. An example of when a line graph might be useful would be to show how a company's sales have increased over the past year.
2. Bar graphs: Bar graphs are best used to compare data across different categories, such as different products or services. An example of when a bar graph might be useful would be to compare sales of different product lines.
3. Pie charts: Pie charts are best used to show how data is distributed across different categories. An example of when a pie chart might be useful would be to show what percentage of a company's sales come from different regions.
4. Scatterplots: Scatterplots are best used to show the relationship between two variables, such as the relationship between advertising spending and sales. An example of when a scatterplot might be useful would be to show how changes in advertising spending impact sales.
5. Tables: Tables are best used to show detailed data, such as sales figures broken down by product line and region. An example of when a table might be useful would be to provide an in-depth breakdown of a company's sales by different categories.
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A forced rider is someone who:
A.
does not pay a share of the costs of a public good and does not enjoy the benefit.
B.
pays a share of the costs of a public good but who does not enjoy the benefit.
C.
pays a share of the costs of a public good and enjoys the benefit.
D.
none of the above.
Answer:
Please mark brainliest
Explanation:
The correct option is B
A. does not pay a share of the costs of a public good and does not enjoy the benefit.
A forced rider is an individual who does not contribute their fair share towards the costs of a public good but still benefits from it. In other words, they "ride" on the contributions of others without contributing themselves.
To illustrate this, let's consider an example where a public park is being maintained through contributions from the local community. The park provides various benefits to the community members, such as a place for recreation and relaxation.
If someone in the community does not contribute financially towards the maintenance of the park but still enjoys its benefits, they would be considered a forced rider. This is because they are not paying their fair share of the costs but are still able to access and enjoy the park.
The answer is A. A forced rider is someone who does not pay a share of the costs of a public good and does not enjoy the benefit.
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Cepat Sdn Bhd is a manufacturer of semiconductor at Kluang, Johor. On
1 January 2016, the company leases an equipment to Laju Sdn Bhd at
RM55,000, which is the fair value. The lessee is required to pay the
annual rental of RM10,000 in advance. The present value of the minimum
lease payment is RM53,295.
Under the terms of the lease, Laju Sdn Bhd is responsible for repairing
and insuring the plant and at the end of the lease period of six years the
title of the asset is transferred to the lessee. The plant has an estimated
useful life of eight years with no residual value at the end of this period.
The rate of interest implicit in the lease is 5%. The bank balance as at 31
December 2015 is RM500,000.
Required:
In the book of Laju Sdn Bhd:
(a) Calculate the interest charge by using the actuarial method.
(5 marks)
(b) Lease liability account for the year ended 31 December 2019
and 2020.
(5 marks)
(c) Extract of Statement of Profit and Loss as at 31 December
2016 until 2020.
The actuarial method is also known as the effective interest rate method. The lease is a finance lease because it is a long-term lease of an asset and transfers substantially all the risks and rewards of ownership. The asset's present value is equal to or greater than 90% of its fair value.
In the statement of financial position of the lessee, the asset and the related liability should be recorded. Lease Liability Account for the year ended 31 December 2019 & 2020Year ended 31 December 2019Lease rental payment per annum = RM10,000The present value of minimum lease payments as at 31 December 2016 = RM53,295Total lease rental payments for 6 years = RM60,000The present value of the residual value, assuming it is certain to be payable = RM0Therefore,
the present value of minimum lease payments = RM53,295+RM0=RM53,295Present value of lease payments = RM53,295Annual lease payments = RM10,000Lease Liability as at 1 January 2019 = RM42,549Discount rate = 5%Lease interest expense = 5%*RM42,549=RM2,127Lease Liability as at 31 December 2019 = RM50,676Year ended 31 December 2020Lease rental payment per annum = RM10,000Lease liability as at 31 December 2019 = RM50,676Lease interest expense = 5%*RM50,676=RM2,534Lease Liability as at 31 December 2020 = RM57,210Extract of Statement of Profit and Loss as at 31 December 2016 to 2020Extract of Statement of Profit and Loss as at 31 December 2016 to 2020Particulars 2016 RM 2017 RM 2018 RM 2019 RM 2020 RMLease rental expense 10,000 10,000 10,000 10,000 10,000Interest on lease liability 2,662 2,525 2,388 2,127 2,534The interest charge by using the actuarial method is calculated by multiplying the interest rate and the present value of the minimum lease payments.
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Zahari runs fitness centers in Penang and Kangar, each center generating its own cash inflows and is accounted as a cash generating unit. As at 31 October 2012, the value in use and its fair value less selling costs of the Kangar center were determined to be RM9,000,000 and RM10,500,000 respectively. The recoverable amount of the building was RM5,000,000. On the same date, the net identifiable assets of the center in Kangar comprise of the following:
Building RM
Furniture and 4,800,000
fittings 2,000,000
Goodwill 900,000
Equipment 6,200,000
Trade receivables 300,000
Bank overdraft (75,000)
Required:
a. Discuss whether there will be impairment loss for the building.
b. Determine the impairment loss and the new carrying amount of the assets in the cash generating unit. Show all workings. Round up your answers to the nearest RM.
c. Discuss how the reversal of impairment loss should be treated if any.
a. Yes, there will be an impairment loss for the building. This is because the recoverable amount of the building (RM5,000,000) is lower than its carrying amount (RM9,000,000).
b. To determine the impairment loss and new carrying amount of the assets in the cash generating unit, we compare the recoverable amount (RM5,000,000) with the carrying amount of the assets. The carrying amount of the assets is the sum of their individual carrying amounts, which are:
Building: RM9,000,000
Furniture and fittings: RM4,800,000
Goodwill: RM900,000
Equipment: RM6,200,000
Trade receivables: RM300,000
Bank overdraft: RM75,000 (since it is a liability, it is subtracted)
The total carrying amount is RM21,225,000 (9,000,000 + 4,800,000 + 900,000 + 6,200,000 + 300,000 - 75,000).
Since the recoverable amount (RM5,000,000) is lower than the carrying amount (RM21,225,000), there is an impairment loss. The impairment loss is the excess of the carrying amount over the recoverable amount, which is RM16,225,000 (21,225,000 - 5,000,000). The new carrying amount of the assets in the cash generating unit would be RM5,000,000 (the recoverable amount).
c. The reversal of impairment loss should be treated in the following manner: If there is an indication that the impairment loss has reversed, the carrying amount of the cash generating unit's assets should be increased to their recoverable amount, up to the amount that would have been determined if no impairment loss had been recognized in prior years. Any reversal of impairment loss should be recognized as income in the profit and loss statement, up to the amount of the original impairment loss. However, the reversal should not exceed the carrying amount of the asset that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
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Consider the following capital structure for a particular firm along with the cost of each source of capital Debt 35% Preferred Stock 10% Equity 55% The company's tax rate is 32%. What is the firm's weighted average cost of capital? Enter your answer rounded to four decimal places in decimal form (ex: 2020). Type your answer..... 5.1% 7% 12%
The following capital structure for a particular firm along with the cost of each source of capital Debt 35% Preferred Stock 10% Equity 55% The firm's weighted average cost of capital (WACC) is 7%.
The weighted average cost of capital (WACC) is calculated by multiplying the cost of each source of capital by its respective weight, summing up these values, and adjusting for the tax rate. In this case, the cost of debt is 35%, the cost of preferred stock is 10%, and the cost of equity is 55%. The weights assigned to each source of capital are 35%, 10%, and 55%, respectively. To calculate the WACC, we multiply each cost by its weight, sum up these values, and adjust for the tax rate. Therefore, the WACC is (0.35 × 0.35) + (0.10 × 0.10) + (0.55 × 0.55) × (1 - 0.32) = 0.1225 × 0.68 = 0.0833 or 8.33%. Rounded to four decimal places, the WACC is 7%.
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Make a summary and analysis of elevator pitches and what should
include a good and strong elevator pitch
An elevator pitch is a concise and compelling summary of a business idea, product, or service that can be delivered in the time span of an elevator ride (usually around 30 seconds to 2 minutes).
It aims to capture the attention of the listener and generate interest in further conversation or potential opportunities. A strong elevator pitch effectively communicates the value proposition, addresses a problem or need, and showcases the unique selling points of the offering.
Analysis:
A good elevator pitch is crucial for capturing the interest of potential investors, partners, or customers in a brief encounter. Here are some key elements that should be included in a strong elevator pitch:
Clear and concise message: The pitch should convey a clear message about what the business does, the problem it solves, or the value it provides. Avoid jargon and complex language, and focus on simplicity and clarity.
Unique selling proposition: Highlight the unique aspects of the business, product, or service that differentiate it from competitors. Clearly articulate the benefits and advantages it offers to potential customers.
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Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%.
Company $1 Discount Store Everything $5
Forecast return 12% 11%
Standard deviation of returns 8% 10%
Beta 1.5 1.0
What would be the fair return for each company, according to the capital asset pricing model (CAPM)?
Company Expected Return
$1 Discount Store %
Everything $5 %
The answer is the Capital Asset Pricing Model (CAPM), the fair return for Company $1, Discount Store is 13%, and for Company Everything $5, it is 10%.
The capital asset pricing model (CAPM) provides the estimated required return on a company's equity. This model requires investors to consider two factors: risk and return, as stated in the question, and it is expressed by the equation: ke = Rf + β(RM − Rf).
Where,
ke = expected rate of return for a security
Rf = risk-free rate
β = beta of a security
RM = expected market return
Given the data provided, Company 1 has a beta of 1.5, while Company Everything $5 has a beta of 1.0. The risk-free rate is 4%, and the market risk premium is 6%.
Applying these values to the CAPM formula for each company provides:
For Company $1 Discount Store, ke = 4% + 1.5(6%) = 13%.
Therefore, the expected return is 13%.
For Company Everything $5, ke = 4% + 1.0(6%) = 10%.
Therefore, the expected return is 10%.
Therefore, according to the Capital Asset Pricing Model (CAPM), the fair return for Company $1 Discount Store is 13%, and for Company Everything $5, it is 10%.
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IBM purchased computer chips from NEC, a Japanese electronics concern, and was billed ¥230 million payable in six months. Currently, the spot USD/JPY rate is 109 and the six-month forward rate is 103. The six-month money market interest rate is 5.9 percent per annum in the U.S. and 2.5 percent per annum in Japan. The management of IBM decided to use the money market hedge to deal with this yen account payable. Calculate today's dollar cost of meeting this yen obligation. (USD, no cents)
Selected Answer: 1,812,210
Correct Answer: 2,084,041 ± 1
In the given question, IBM purchased computer chips from NEC, a Japanese electronics concern, and was billed ¥230 million payable in six months. The spot USD/JPY rate is 109 and the six-month forward rate is 103.the six-month money market interest rate is 5.9% per annum in the U.S. and 2.5% per annum in Japan. The management of IBM decided to use the money market hedge to deal with this yen account payable. The calculation of today's dollar cost of meeting this yen obligation is as follows: Calculation of Forward Exchange Rate:
1 USD = 109 JPY Selling 6-month forward rate = 103 JPY/USD (as given) Calculation of Forward Discount: Forward Discount = (Spot Rate – Forward Rate) / Spot Rate= (1/109 – 1/103) / (1/109)= 0.053 or 5.3%
Money Market Hedge: In a money market hedge, the company borrows the required amount at the domestic interest rate and converts it into foreign currency by purchasing it on the spot market. This foreign currency is invested in a foreign interest-bearing account until the payables become due. The first step is to calculate the yen payable in dollars, and then borrow the required amount in dollars and convert them into yen at the spot rate. The yen is invested in the yen-denominated account. The amount in the yen account will increase to ¥238.527 million in six months. The second step is to convert this yen amount into dollars using the forward rate of ¥103/$1. The dollar amount received would be $2,318,602. The dollar cost of meeting this yen obligation today would be $2,318,602. Thus, IBM will need to pay $2,318,602 to meet its yen obligation today. In conclusion, IBM will have to pay $2,318,602 to meet its yen obligation today by using a money market hedge. The money market hedge is an effective strategy that helps organizations to manage their currency risks by eliminating currency risk.
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