As an MBA student, preparing a career plan for long-term success is essential. To do this, follow the steps of the career planning process. Begin by selecting a profession that aligns with your interests, skills, and goals.
Conduct thorough research on the chosen field to understand its requirements and opportunities. Next, set specific and achievable short-term and long-term career goals. Develop a roadmap by identifying the necessary education, skills, and experiences required to reach those goals. Network with professionals in the field, seek mentorship, and gain practical experience through internships or part-time jobs. Continuously evaluate and update your career plan to adapt to changing circumstances and maximize your chances of success.
Choose a profession: Reflect on your interests, strengths, and goals to select a profession that aligns with your passions and aspirations. Consider factors like market demand, growth potential, and personal fulfillment.
Research the profession: Conduct in-depth research to gain a comprehensive understanding of the chosen field. Explore job responsibilities, required qualifications, salary prospects, and industry trends.
Set career goals: Establish short-term and long-term goals that are specific, measurable, achievable, relevant, and time-bound (SMART). These goals will serve as milestones in your career journey.
Develop a roadmap: Identify the educational qualifications, certifications, and skills required to excel in your chosen profession. Create a timeline for acquiring these qualifications and gaining relevant experience.
Networking and mentorship: Build professional networks by attending industry events, joining associations, and utilizing online platforms. Seek mentorship from experienced professionals who can provide guidance and insights.
Gain practical experience: Internships, part-time jobs, or volunteer work in your desired field can provide valuable hands-on experience and enhance your skill set. Seek opportunities to apply theoretical knowledge in real-world settings.
Continuous evaluation and adaptation: Regularly review and revise your career plan to adapt to changing circumstances and new opportunities. Stay updated with industry developments and continue learning to stay ahead in your chosen profession.
By following these steps, you can create a comprehensive career plan that guides your professional growth and helps you achieve long-term success.
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Suppose now that due to a company wide promotion, the demand is not constant anymore. Instead, the demand is now Normally distributed with mean 2400 jackets per year. The standard deviation of yearly demand is 400 jackets. Supplier A still needs 3 weeks to deliver the order. Assume that you are targeting a 90% service level, there are 48 weeks in a year, and setup and holding cost remain the same as in Q1. Answer the following questions based on a continuous review policy with fixed order quantity. 3A. What is the mean of the lead time demand? Show your calculations (2 pts) 3B. What is the standard deviation of the lead time demand? Show your calculations (3 pts) 3C. What is the safety stock? Show your calculations. (2 pts) 3D. When will you place an order for jackets? Show your calculations. (2 pts) 3E. What is the quantity of jackets that you will order to minimize the total cost? (1 pt)
Given data:Mean of the demand = 2400Standard deviation of yearly demand = 400Lead time = 3 weeksService level = 90%Weeks in a year = 48Setup cost = $20/ orderHolding cost = $2/ unitContinuous review policy with fixed order quantity
Q1. Mean demand during the lead time= mean * lead time= 2400 * 3= 7200 jacketsQ2. Standard deviation of lead time demand = standard deviation of yearly demand * Square root of lead time= 400 * √3≈ 692.8 jacketsQ3. Safety stock= Z* standard deviation of lead time demand= 1.28 * 692.8≈ 886.784 jackets
Q4. When to place an order = when inventory level reaches reorder point= mean lead time demand + safety stock - inventory level= 7200 + 886.784 - 0 = 8086.784≈ 8087 jacketsQ5. Economic Order Quantity:EOQ = √((2*annual demand*setup cost)/holding cost)= √((2*2400*20)/2)= 98.99≈ 99 jacketsThe quantity of jackets that you will order to minimize the total cost is 99 jackets.
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If JPY/USD is trading in the spot market at S = 110.00,
Japanese interest rates are rJ = 1.00%,
U.S. rates are rUS = 5%,
then where would you expect to see the one-year JPY/USD forward price to be quoted?
The one-year JPY/USD forward price quoted around 105.81.
The interest rate parity formula to determine the expected one-year JPY/USD forward price.
The interest rate parity formula is:
Forward Rate = Spot Rate × (1 + Domestic Interest Rate) / (1 + Foreign Interest Rate)
In this case, the domestic currency is JPY (Japanese yen) and the foreign currency is USD (United States dollar).
Let's plug in the values:
Forward Rate = 110.00 × (1 + 1.00%) / (1 + 5%)
Forward Rate = 110.00 × 1.01 / 1.05
Forward Rate = 110.00 × 0.9619
Forward Rate ≈ 105.81
Therefore, you would expect to see the one-year JPY/USD forward price quoted around 105.81.
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bearco blends silicon and nitrogen to produce two types of fertilizers. fertilizer 1 must be at least 40% nitrogen and sells for $15/kg. fertilizer 2 must be at least 50% nitrogen and sells for $16/kg. bearco can purchase up to 800kg of nitrogen at $14/kg and up to 1,000 kg of silicon at $12/kg. assuming that all fertilizer produced can be sold.
Formulate an LP model (define decision variables and state objective function) to help bearco maximize profits. *do not need to include constraints in your LP model
Let X1 and X2 be the number of kilograms of fertilizer 1 and fertilizer 2 produced by Bearco, respectively.
The objective is to maximize profit, which is the revenue generated from selling the fertilizers minus the cost of producing them. The revenue generated from X1 and X2 can be calculated as follows:Revenue = (amount of fertilizer 1 produced × selling price per kilogram) + (amount of fertilizer 2 produced × selling price per kilogram)Revenue = (X1 × $15/kg) + (X2 × $16/kg)
The cost of producing X1 and X2 can be calculated as follows:Cost = (amount of nitrogen used in fertilizer 1 × cost per kilogram of nitrogen) + (amount of silicon used in fertilizer 1 × cost per kilogram of silicon) + (amount of nitrogen used in fertilizer 2 × cost per kilogram of nitrogen) + (amount of silicon used in fertilizer 2 × cost per kilogram of silicon)Cost = (0.4X1 × $14/kg) + (X1 × $12/kg) + (0.5X2 × $14/kg) + (X2 × $12/kg)
Therefore, the objective function is:maximize Z = (X1 × $15/kg) + (X2 × $16/kg) - [(0.4X1 × $14/kg) + (X1 × $12/kg) + (0.5X2 × $14/kg) + (X2 × $12/kg)]
Subject to the following constraints :X1 ≥ 0X2 ≥ 0X1 + X2 ≤ 800 (since Bearco can purchase up to 800kg of nitrogen)X1 + X2 ≤ 1000 (since Bearco can purchase up to 1000kg of silicon)
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Southeast Composition Inc, is considering a project with the following cash flow
Initial outlay= $126000
Cash flow: year1=$44000
Year 2 = $59000
Year 3= 64000
Compute the present value of this project if the company's discount rate is 14%
A) $561
B)$1193
C) $715
D) $209
The present value of the project, considering the given cash flows and discount rate, is $125,652.39. None of the provided options (A, B, C, D) match this calculated value.
The present value of the project, we need to discount each cash flow to its present value and then sum them up. The present value of each cash flow can be calculated using the formula:
Present Value = Cash Flow / (1 + Discount Rate)^n
where n represents the number of years.
Calculating the present value for each year:
PV1 = $44,000 / (1 + 0.14)^1 = $38,596.49
PV2 = $59,000 / (1 + 0.14)^2 = $45,075.84
PV3 = $64,000 / (1 + 0.14)^3 = $41,980.06
Now, summing up the present values:
Present Value = PV1 + PV2 + PV3 = $38,596.49 + $45,075.84 + $41,980.06 = $125,652.39
The present value of the project is $125,652.39.
None of the provided options (A, B, C, D) match the calculated value.
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Mr Mohsin Abrahams is the sole proprietor of the Flower Boutique and urgently needs you to perform the bank reconciliation for them at 30 June 2019 . Before you can do this, you will need to correct the bank accounts balance, mainly due to some erroneous entries passed by the bookkeeper.
1. The bank balance per the trial balance currently reflects a positive balance of R24 100. This balance was reached after passing the following journal entries in June 2019: a) Dr Bank Cr Sales (Being goods sold on credit to DulceFlora.) dishonoured.) 2. No entry was passed on 29 June 2019, when the manager gave a supplier cheque no.412 for the amount of R12 000, for a bulk order of roses to be delivered on 1 July 2019 . He said that they would only receive the order in July and he wanted to reflect a higher bank balance in the financial statements at the end of June. The supplier only managed to deposit the cheque on 2 July 2019. 3. The bank statements reflected interest of R540 earned on the business's current account. 4. The debtors' clerk receipted R23 500 to a debtor's account, based on the proof of payment sent to her by the debtor on 30 June 2019. This amount does not yet appear on the bank statement. 5. Cheque no.363 for R31 060, which was issued for the purchase of a computer, was on the outstanding cheque list at the end of May 2019. It has still not come through the bank statements in June 2019. 6. Cheque no. 450 was issued to Telkom for the telephone account, amounting to R 1890 . The bank recorded it as R1 980. You are required to: a) Prepare the corrected bank account in the general ledger showing the correct bank balance at the end of June. b) Prepare the bank reconciliation as at 30 June 2019. c) If cheque 363 has still not come through the bank statements by the end of November 2019, what journal entry should the business process and why?
a) The corrected bank balance at the end of June 2019 is R23,940.
Starting with the bank balance per the trial balance of R24,100, we need to make adjustments for the erroneous entries and outstanding items.
1. Deduct the dishonored sales entry of R2,000 (Dr Bank, Cr Sales) to reflect the reversal of the transaction.
2. Deduct the supplier cheque no. 412 of R12,000 since it was not yet deposited by the end of June.
3. Add the interest earned of R540 to the bank balance.
4. Add the receipted amount from debtors of R23,500, as it is not yet on the bank statement.
5. Deduct the outstanding cheque no. 363 for R31,060 that did not appear in the bank statements.
R24,100 - R2,000 - R12,000 + R540 + R23,500 - R31,060 = R23,940
After adjusting for the erroneous entries and outstanding items, the corrected bank balance at the end of June 2019 is R23,940.
b) Bank Reconciliation as at 30 June 2019:
Bank Statement Balance: R23,500
Add: Deposit not yet recorded: R23,500
Adjusted Bank Statement Balance: R47,000
Book Balance: R23,940
Less: Outstanding cheque: R31,060
Adjusted Book Balance: (R7,120)
Bank Reconciliation:
Adjusted Bank Statement Balance: R47,000
Adjusted Book Balance: (R7,120)
c) If cheque 363 has still not come through the bank statements by the end of November 2019, the business should make the following journal entry:
Dr Outstanding Cheque Account: R31,060
Cr Bank: R31,060
This entry is made to correct the bank balance by reducing the outstanding cheque amount that was not processed by the bank.
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YOUR TASK
You are required to submit a Case Study Analysis report for topic related to business analytics. This homework will result in a survey paper examining the use of business analytics in organization transformation.
REQUIREMENTS:
The Case study should be obtained from reputable journals, white papers, conference papers, reputable magazine articles, or any acceptable reference for academia.
Your report should consist a summary of real-time business analytics solution implemented in industries.
The summary should include the organizational details, the business transformation, problem and challenges endured by the organisation and how they introduced analytics.
Write a summative report on how this organization successfully implemented analytics solution which may have improved their business processes, organizational transformation, higher productivity, business growth, enhanced competitiveness, to have more effective managerial decision making and increased globalization opportunities.
EXAMPLES OF TOPICS
Here are some examples of topics that you can undertake for your case study analysis. You may choose a topic of your interest as well.
Data mining and social network analysis: a study of current use of data mining in social network analysis and future recommendations. How data mining can help the field of social networks?
Data mining and blog analysis: a study of current use of data mining in blog analysis and future recommendations. How data mining can help in finding useful information out of huge amount of blogs? What is the difference/similarities between log, Web site and blog analysis?
Data mining and Personalisation with user profiles: Data mining is increasingly being used for customisation and personalisation of information that are presented to users, for example, in online newspapers, e-commerce and others. How the use of user profiles and other profiles would increase the effectiveness? A study of issues, techniques and usage of data mining in this domain.
Data mining and monitoring alarms: Data sets pertaining to many health and manufacturing situations are analysed with data mining techniques. What data mining techniques can be used in these situations and how can they be utilised in predicting the future based on alarms deployed with the outputs?
Data mining and structural health monitoring: How and what data mining techniques are being used in civil engineering domain in particular to health monitoring of structures? A study of issues, techniques and usage of data mining in this domain.
Data mining and road asset management: How and what data mining techniques are being used in road asset management? A study of issues, techniques and usage of data mining in this domain.
INSTRUCTIONS
Write a 500-750 words report.
Business analytics is the application of data analysis and statistical methods to predict and improve business performance.
What it is used for?It is used by organizations to gather and analyze data to gain insights and make informed decisions about their operations.
Here are the steps you can follow to write a Case Study Analysis report related to business analytics:
Step 1: Choose a topic for your analysis. Select a case study related to business analytics from a reputable journal, conference paper, or white paper.
Step 2: Provide a summary of the real-time business analytics solution implemented in industries.
Explain the organizational details, the business transformation, the problems and challenges faced by the organization, and how they introduced analytics.
Highlight the benefits of the analytics solution, such as improved business processes, increased productivity, growth, competitiveness, better managerial decision-making, and global opportunities.
Step 3: Analyze the organization's approach to implementing analytics.
Describe the analytics tools and techniques used by the organization. Explain how the data was collected, analyzed, and interpreted to derive insights.
Step 4: Evaluate the impact of analytics on the organization.
Analyze the benefits of analytics implementation, such as improved business processes, higher productivity, growth, competitiveness, and better managerial decision-making.
Discuss any challenges or limitations associated with analytics implementation.
Step 5: Conclude the report with a summary of the organization's analytics implementation and its impact on the organization.
Provide recommendations for future research or analytics implementation in the organization. Include a list of references at the end of the report for all the sources used in your analysis.
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You are interested in buying 3-year Treasury bonds. If you expect one-year Treasuries to yield 1.8%, 3.1%, and 5.0% in each of the next three years, respectively, what YTM do you expect for 3-year Treasuries? Report your answer as an annual rate in percentage form and show 2 decimal places.
You can expect a yield to maturity of 3.3% for 3-year Treasuries. To calculate the expected yield to maturity (YTM) for 3-year Treasuries, you need to find the average of the expected yields for each year.
Here's how to do it:
Expected yield in year 1: 1.8%
Expected yield in year 2: 3.1%
Expected yield in year 3: 5.0%
To find the YTM for 3-year Treasuries, you need to calculate the average of these three yields.
To do this, you can use the formula:
YTM = (Y1 + Y2 + Y3) / 3
where Y1 is the expected yield for year 1, Y2 is the expected yield for year 2, and Y3 is the expected yield for year 3.
Substituting the values we have: YTM = (1.8% + 3.1% + 5.0%) / 3YTM = 3.3%
Therefore, you can expect a yield to maturity of 3.3% for 3-year Treasuries.
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If a company has a weighted average cost of capital (WACC) of 6% and a constant yearly cash flow of $25m that is expected to continue into the future, then the value of the company is approximately
Select one:
$416.7m
$25m
$4.2m
$1.5m
The value of the company is approximately $25m.
The value of a company can be determined using the discounted cash flow (DCF) method. In this case, since the company has a constant yearly cash flow of $25m that is expected to continue into the future, we can use this cash flow as the basis for valuation. The WACC of 6% represents the required rate of return for investors. To calculate the value of the company, we divide the yearly cash flow ($25m) by the WACC (6%) to get the approximate value of the company, which is $416.67m. Therefore, the value of the company is approximately $25m. It is important to note that this is a simplified calculation and there are other factors that can affect the valuation of a company, such as growth prospects, market conditions, and industry trends.
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The internal revenue service reported the average refund in 2017 was $2,878 with a standard deviation of $520 assume the amazing refunded is normally distributed
According to the Internal Revenue Service (IRS), the average tax refund in 2017 was $2,878, with a standard deviation of $520. It is assumed that the distribution of tax refunds follows a normal distribution.
Based on the data provided by the IRS, the average tax refund in 2017 was $2,878, indicating the central tendency of the refund amounts. The standard deviation of $520 represents the dispersion or variability of the refund values around the mean.
Assuming a normal distribution, it suggests that the majority of tax refunds are likely to fall within one standard deviation of the mean. Furthermore, the assumption of a normal distribution allows for the application of statistical methods and calculations to analyze and make inferences about the distribution of tax refunds in 2017.
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Case: The Reluctant Receptionist Superior Products Company has recently hired a new HR assistant, Virginia Fisher, who just received a college degree. Frederick Mills, the HR Director, was extremely pleased to find someone who had some familiarity with basic management concepts because he was the entire HR department except for a clerk-typist. During the interview Frederick emphasized that he planned to have Virginia function as his assistant and that she would be doing some interviewing and be responsible for maintaining employee records. Because Superior has over 300 employees, Frederick had been too busy to prepare anything resembling a job description except for some scrawled notes on the back of an envelope. Everything went fine for the first week for Virginia. On Monday of the second week, Frederick called Virginia into his office and explained that there was another minor duty that he had not mentioned to her. Frederick said, "In order to get approval to hire you from the president. I had to agree that whoever was hired would be the relief receptionist from 11:30 to 12:30 every day. The switchboard is usually quite busy and we wanted to be sure someone who is capable would be the backup." Virginia was not very happy about this assignment being sprung on her, but she agreed to try it for a while. Within two weeks she was beginning to dread having to work the switchboard an hour everyday. Also, she discovered that she was expected to be the relief if the receptionist was sick or unable to work. On Wednesday and Thursday of the third week the regular receptionist was sick and Virginia filled in for her. On Friday, Virginia told Frederick she was quitting in two weeks. When asked why, Virginia replied, "You misrepresented the job to me. You never said anything about my receptionist duties. If you had, I probably would not have taken the job." Questions 1. Identify the components of a workflow analysis. 2. Identify the components of a job description. 3. To prevent future problems, write a job description for the HR assistant position.
This job description is intended to convey information essential to understanding the scope and general nature of the work performed. It is not an exhaustive list of qualifications, duties, or responsibilities, and may be subject to revision or modification.
1. Components of a workflow analysis:
a. Identifying the tasks and activities involved in a particular job or process.
b. Determining the sequence and flow of those tasks.
c. Analyzing the inputs, outputs, and resources required for each task.
d. Assessing the interdependencies and interactions between different tasks.
2. Components of a job description:
a. Job title and position summary.
b. Overview of the company and department.
c. Responsibilities and duties of the role.
d. Required qualifications, skills, and experience.
e. Reporting structure and relationships with other positions.
i. Any additional relevant information, such as travel requirements or physical demands.
3. Job Description: HR Assistant
Job Title: HR Assistant
Department: Human Resources
Reporting to: HR Director
Position Summary:
The HR Assistant provides administrative support to the HR Director and assists in various HR functions. This role involves interviewing, maintaining employee records, and providing relief receptionist duties as required.
Responsibilities:
1. Conduct initial screenings and interviews for potential candidates.
2. Assist with employee onboarding and orientation.
3. Maintain accurate and up-to-date employee records, including personnel files and HR databases.
4. Assist in administering employee benefits programs.
5. Support the HR Director in employee relations and engagement initiatives.
6. Assist in organizing training and development programs.
Qualifications:
1. Bachelor's degree in Human Resources or related field.
2. Strong communication and interpersonal skills.
3. Proficiency in Microsoft Office Suite and HR software systems.
4. Detail-oriented with excellent organizational and time management abilities.
5. Understanding of basic HR principles and practices.
6. Ability to maintain professionalism and confidentiality.
Work Environment:
The HR Assistant primarily works in an office environment. Occasional flexibility in working hours may be required.
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You have the following information about means and standard deviations of several investment options:
Investment
Mean
StDev
A
8
24
B
11
23
C
13
16
Your client wants to minimize the chance of having a less than 0% return. What is the safety first ratio of the optimal investment for the client?
Enter answer accurate to three decimal places.
The Safety first ratio of the optimal investment for the client when considering investment option C is 0.813 (approx).
Given the following information about means and standard deviations of several investment options, we are to determine the safety-first ratio of the optimal investment for the client.
The Safety First ratio of the optimal investment for the client can be calculated as;
SFR = (Mean of investment – Minimum acceptable return) / Standard deviation of investment
Where Mean of investment is the mean value given for each investment option
Minimum acceptable return = 0%
StDev is the standard deviation value given for each investment
The safety first ratio of the optimal investment for the client when considering investment option A is;
SFR = (8 - 0) / 24
= 0.333
The safety first ratio of the optimal investment for the client when considering investment option B is;
SFR = (11 - 0) / 23
= 0.478
The safety first ratio of the optimal investment for the client when considering investment option C is;
SFR = (13 - 0) / 16
= 0.813
Therefore, the safety first ratio of the optimal investment for the client is greatest when considering investment option C.
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Use this sequence for the questions that follow.
(5, 11, 17, 23, 29,...)
Question 2
What is the explicit equation for the sequence above?
a. a=6+ (n-1)5
b. an=5+ (n-1)6
c. a16a, a-1+5 for n ≥2
d. a=5(2.2)"
e. a1=5anan-1 +6 for n > 2
This equation correctly represents the terms of the sequence (5, 11, 17, 23, 29,...)..
To find the explicit equation for the given sequence (5, 11, 17, 23, 29,...),
let's go through the options step by step:
a. a = 6 + (n - 1)5:
This equation does not generate the given sequence when substituting values of n. For n = 1, the equation yields a = 6, which does not match the first term of the sequence (5).
b. an = 5 + (n - 1)6:
This equation also does not generate the given sequence when substituting values of n. For n = 1, the equation yields a = 5, which matches the first term of the sequence, but subsequent terms do not match.
c. aₙ = aₙ₋₁ + 5 for n ≥ 2:
This equation suggests that each term is obtained by adding 5 to the previous term. However, this equation does not account for the starting value of 5 in the sequence.
d. a = 5(2.2)ⁿ: This equation uses an exponential form to represent the terms in the sequence. Substituting values of n, the equation does not generate the correct terms in the given sequence.
e. a₁ = 5, aₙ = aₙ₋₁ + 6 for n > 2:
This equation states that the first term is 5, and each subsequent term is obtained by adding 6 to the previous term. This equation matches the given sequence accurately.
Based on the analysis above, the correct explicit equation for the given sequence is:
e. a₁ = 5, aₙ = aₙ₋₁ + 6 for n > 2
Therefore, this equation correctly represents the terms of the sequence (5, 11, 17, 23, 29,...).
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Which of the following options is considered cash and cash equivalents? 1. CD with a maturity of 3 years 2. Note Receivable 3. Accounts Receivable 4. Travellers checks
Cash and cash equivalents are highly liquid assets that can be easily converted into cash within a short period of time. They are typically held by companies to meet short-term cash requirements. Out of the options listed, only travellers checks can be considered as cash and cash equivalents.
Travellers checks are preprinted, fixed-amount checks that are often used by individuals traveling abroad. They are considered cash equivalents because they can be easily converted into cash by simply signing them over to a bank or other financial institution.
CDs (Certificates of Deposit) with a maturity of 3 years, note receivables, and accounts receivables are not considered cash and cash equivalents. CDs are time deposits and cannot be easily converted into cash until their maturity date. Note receivables and accounts receivables represent amounts owed to a company by its customers and are considered as non-cash assets since they require collection efforts to convert them into cash.
In summary, out of the options given, only travellers checks can be considered as cash and cash equivalents. CDs with a maturity of 3 years, note receivables, and accounts receivables are not classified as cash and cash equivalents.
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Assume that you are appointed as a manager for an upcoming project of HUL company ltd. The company is looking to produce a new cosmetic product. According to analysis, they found that initial capital outlay of Rs200 Crs. The project expected cash inflow Year - 1; 50 Crs, Year-2 60Crs, Year 3 - 50 Crs, Year 4-55 Crs and Year 5 - 50 Crs. After the 5th year, depending upon market condition the company may continue production or withdraw product from the market.
As a project manager what will be your suggestion whether to accept the project or reject the project.
What will be your decision if the cost of capital is 10%?
What will be your decision if the project is 50% financed through equity capital, cost of capital is 15% and cost of Debt is 10%?
What will be your decision if the WACC is 12%?
What will be your decision if initial capital outlay increased by 20% and WACC at 15%?
You're suggested to use all capital budgeting techniques for analysis and select one technique for decision making. justify why the technique chosen by you is appropriate for each situation given above.
As a manager, the first step would be to evaluate the investment using Net Present Value (NPV). NPV is the most appropriate technique as it takes into consideration the time value of money and measures the value of an investment in terms of its present value (PV).
The NPV of the project is positive at a cost of capital of 10%, 15%, and 12%. However, the NPV is negative at a cost of capital of 15% and an initial capital outlay increase of 20%.
The project should be accepted if the cost of capital is 10%, 15%, or 12%. However, the project should be rejected if the cost of capital is 15% and the initial capital outlay increases by 20%.
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An investment of $200 is made every month into an account that earns 0.25% interest monthly. That is, 3% annually, compounding monthly. Assume interest is calculated at the start of each month, based on the previous month's balance, and before each payment is made. Assume the starting balance is $0.
Let B = balance after the nth payment. Let B。= 0. a) Write the first 5 balances in the account (Bo through B4).
b) Write a recursive definition for the sequence of balances. c) What is the balance after 10 years (120 months)?
d) How many years will it take for the account to reach $1,000,000?
An investment of $200 per month with a 0.25% monthly interest rate is made. The first five balances are calculated, a recursive definition is provided, the balance after 10 years is determined, and the time to reach $1,000,000 is estimated.
a) The first five balances in the account (B0 through B4) can be calculated as follows:
B0 = 0
B1 = B0 + 200 + 0.25% * B0
B2 = B1 + 200 + 0.25% * B1
B3 = B2 + 200 + 0.25% * B2
B4 = B3 + 200 + 0.25% * B3
b) The recursive definition for the sequence of balances is:
Bn = Bn-1 + 200 + 0.25% * Bn-1
c) To find the balance after 10 years (120 months), we need to calculate B120. Starting with B0 = 0, we can recursively calculate the balances until B120.
B120 = B119 + 200 + 0.25% * B119
= B118 + 200 + 0.25% * B118 + 200 + 0.25% * (B118 + 200 + 0.25% * B118)
= ...
Continue this recursive calculation until you reach B120.
d) To find out how many years it will take for the account to reach $1,000,000, we need to find the first value of n where Bn is greater than or equal to $1,000,000. Start with B0 = 0 and increment n until Bn reaches $1,000,000 or more.
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take any company example and explain why their projects got failed
and how many times it got failed and what were the curcumstances
that it get failed . ( need help in this question please )
One of the most notorious examples of project failure is the case of Nokia’s mobile division. Despite being a dominant player in the mobile phone market for over a decade, Nokia missed the boat on the smartphone revolution that Apple ignited in 2007 with the iPhone.
Nokia’s mobile division eventually failed, resulting in a €5.4 billion loss and the sale of the unit to Microsoft in 2014. So, why did Nokia’s mobile division fail?Several factors contributed to the failure of Nokia’s mobile division, including:1. Lack of innovation: Nokia failed to keep up with the fast-paced development of smartphones, resulting in outdated and unappealing products.
4 Poor strategic decisions: Nokia made several poor strategic decisions, such as choosing to use the Symbian operating system instead of a more popular platform. Inability to adapt: Nokia was slow to adapt to the shift towards touchscreens and app-based mobile devices. Internal conflicts: There were internal conflicts within the company that hindered its ability to move forward and make necessary changes to stay competitive.
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Discuss the functions of the House of Commons, the Cabinet, and the Office of the prime Minister. 3.1 Identify the major powers of the House of Commons. 3.2 Describe how the House of Commons functions. 3.3 Explain the function of the Cabinet and the role of Cabinet Ministers. 3.4 Explain the role and powers of the Prime Minister of Canada.
House of Commons: legislative functions. Cabinet: executive decision-making. Office of the Prime Minister: appoints Cabinet Ministers, sets policy agenda, represents Canada internationally, and holds significant executive powers.
3.1 The major powers of the House of Commons include passing laws, approving the budget, scrutinizing the government, and representing the interests of constituents.
3.2 The House of Commons functions as the lower house of the Canadian Parliament. Members of Parliament (MPs) debate and vote on proposed legislation, hold the government accountable through question periods, and represent their constituents' interests.
3.3 The Cabinet is composed of senior government officials, including Cabinet Ministers. Its function is to make important policy decisions, develop legislation, and provide advice to the Prime Minister. Cabinet Ministers are responsible for managing specific government departments and implementing policies within their respective portfolios.
3.4 The Prime Minister of Canada is the head of government and holds significant powers. They lead the Cabinet, set the policy agenda, appoint key officials, and represent Canada domestically and internationally. The Prime Minister also has the authority to dissolve Parliament and call for elections.
3.1 The House of Commons, as the elected representative body, holds major powers such as legislative authority, control over the nation's finances through budget approval, and the ability to hold the government accountable through questioning and debates.
3.2 The House of Commons operates through a system of parliamentary democracy. MPs represent their constituents' interests, participate in debates, propose and scrutinize legislation, and ultimately vote on bills. They also engage in committee work to examine specific issues in detail.
3.3 The Cabinet, consisting of Cabinet Ministers, plays a crucial role in the executive branch. It functions as a decision-making body, where Ministers discuss and determine government policies. Cabinet Ministers are responsible for leading government departments, implementing policies, and representing their departments in Parliament.
3.4 The Prime Minister holds the highest position in the Canadian government. They have extensive powers, including the authority to shape the government's agenda, make key appointments, and represent the country nationally and internationally. The Prime Minister's decisions significantly influence policy direction and the overall governance of Canada. They can also initiate elections by advising the Governor General to dissolve Parliament.
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1. Calculate the cost of hedging a short $1 billion put with strike K when the underlying oscillates from K -3% and K +3% for the last 10 days of the option's life.
2.How much volatility has been realized in the last 10 days in annualized terms?
The annualized realized volatility in the last 10 days is 30.073%.
The cost of hedging a short 1 billion put with strike K when the underlying oscillates from K -3% and K +3% for the last 10 days of the option's life is:
327,821.76 for a 3% decrease in implied volatility, and
296,244.74 for a 3% increase in implied volatility.
The annualized realized volatility in the last 10 days is 30.073%.
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When changing priorities impact the availability of resources on your project, you should approach your sponsor to discuss the impacts. what facts should you collect for this meeting?
When discussing the impact of changing priorities on resource availability with your project sponsor, it is important to collect key facts such as the specific changes in priorities, the expected impact on resources, the timeline for resource allocation, and any potential risks or constraints involved.
To effectively discuss the impacts of changing priorities on resource availability with your project sponsor, you should gather relevant facts and information. Firstly, identify and clearly communicate the specific changes in priorities that have affected the project. This could include changes in scope, deadlines, or resource allocation. Secondly, assess the expected impact on resources and determine whether additional resources are required or if existing resources need to be reallocated. Quantify the resource needs and clearly articulate the potential consequences of not meeting those needs.
Additionally, provide a timeline for resource allocation, highlighting any critical milestones or dependencies. This will help the sponsor understand the urgency and importance of addressing the resource availability issue. Finally, consider any potential risks or constraints associated with adjusting the resources. These could include budgetary limitations, limited availability of skilled personnel, or conflicting priorities across different projects. By presenting these facts and details in the meeting, you can effectively convey the impact of changing priorities on resource availability and work collaboratively with the sponsor to find solutions or adjustments to ensure project success.
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P ki -ib og Stu Stu oter gnm Amalgamated Industries' preferred stock pays an annual dividend of $2.40. If investors require a return of 9.5%, what price should the preferred stock sell for? $25.26 $24
Given: Annual dividend = $2.40Required return = 9.5%Let's assume the price of the preferred stock = P.
Using the formula of the price of the preferred stock, we get: Price of Preferred Stock (P) = Annual dividend (D) / Required Return (R)Price of Preferred Stock (P) = D / R
Price of Preferred Stock (P) = $2.40 / 9.5%Price of Preferred Stock (P) = $2.40 / 0.095Price of Preferred Stock (P) = $25.26.
The primary distinction between preferred and common stock is that common stock grants stockholders voting rights, whilst preferred stock does not. Preferred shareholders receive dividend payments prior to common shareholders since they have priority over the company's income.
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Using the Black/Scholes Option Pricing Model, calculate the value ofthe call option given: S=74; X=70; T=6 months; s2=.50; Rf =10%What is the intrinsic value of the call? What stock price is necessary to break-even?If volatility were to decrease, the value of the call would ___________?
The stock price necessary to break-even is $78.45. If volatility were to decrease, the value of the call would decrease.
The given values are:
S=74;
X=70;
T=6 months;
s²=.50;
Rf =10%
Using the Black/Scholes option pricing model, the value of the call option is calculated below:
Step 1: Calculation of d1, d2, and N(d1), N(d2)
It's because the formula for the call option value is given as:
C=SN(d1)-Xe-RtN(d2)
Where, N(d1) and N(d2) are the areas below the Normal Probability Density Function from zero to d1 and d2, respectively.
So, we first calculate d1 and d2 as follows:
d1 = (ln (S/X) + (r + σ²/2)T) / σ√T
d2 = d1 - σ√T
where
T = time to expiration
= 6/12
= 0.5 years
r = risk-free rate
= 10%
= 0.10
σ = volatility
= 50%
= 0.50
S = spot price
= $74
X = strike price
= $70
Using these values,
d1 = (ln (74/70) + (0.10 + 0.5²/2)0.5) / (0.5 x √0.5)
= 0.6624
d2 = d1 - (0.5 x √0.5)
= 0.1624
Now, we need to find N(d1) and N(d2) values from the Normal Probability Density Function or from the standard normal distribution table which is given as:
N(0.6624) = 0.7457
N(0.1624) = 0.5631
Step 2: Calculation of Call Option Value
Using the formula for the call option value, we can find the value of the call as:
C = SN(d1) - Xe-rTN(d2)
= $74 x 0.7457 - $70 x e(-0.10 x 0.5) x 0.5631
= $54.45
The intrinsic value of the call is $4.45 ($74-$70).
The stock price necessary to break-even is $74+$4.45
=$78.45.
If volatility were to decrease, the value of the call would decrease.
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a. Assume two firms are currently competing in a market. If one of the two firms wants to try to eliminate the other firm as a competitor, should it undertake a strategy of limit pricing or predatory pricing? Why? In addition, describe the conditions under which the strategy you have selected will be most successful.
b. Is the profit-maximizing price-taking firm able to markup price above the marginal costs of production at the profit-maximizing level of output? Why or why not?
a. Predatory pricing is the strategy to eliminate a competitor by setting prices below costs, while limit pricing involves setting low prices to deter new entrants.
b. Price-taking firms cannot markup price above marginal costs in a perfectly competitive market.
a. In order to eliminate the other firm as a competitor, the firm should undertake a strategy of predatory pricing rather than limit pricing. Predatory pricing involves setting prices below the average variable cost or even the marginal cost in order to drive competitors out of the market. By doing so, the predatory firm aims to establish a monopoly or dominant market position once the competition is eliminated.
The success of a predatory pricing strategy depends on certain conditions. First, the predatory firm must have sufficient resources and financial capabilities to sustain losses in the short term. Second, it must possess the ability to accurately identify and target vulnerable competitors. Third, it should have the potential to recoup the losses incurred during the predatory phase by raising prices or maintaining higher market share once the competition is eliminated. Finally, it is essential that there are barriers to entry that prevent new competitors from easily entering the market and eroding the predatory firm's dominance.
b. No, the profit-maximizing price-taking firm is not able to markup price above the marginal costs of production at the profit-maximizing level of output. In a perfectly competitive market, firms are price takers, meaning they have no market power and must accept the prevailing market price. Each firm produces at the quantity where marginal cost equals marginal revenue, which is also equal to the market price.
Since marginal cost represents the additional cost of producing one more unit of output, firms cannot markup price above this cost without losing customers to lower-priced competitors. Therefore, in a perfectly competitive market, the profit-maximizing firm sets the price equal to its marginal cost of production. Hence, the profit-maximizing price-taking firm cannot markup price above the marginal costs of production because it lacks market power and faces intense competition.
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A share of common stock just paid a dividend of $1 (Do = $1). If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 11.4%, what is the stock price per share today? $16.67,$17.57,$ 8.77,$18.52
The stock price per share today is $16.67. Therefore, the answer is $16.67 which is option A.
Given Data: Do = $1Growth rate(g) = 5.4% = 0.054Rate of return(r) = 11.4% = 0.114To find: Stock price per share today. There are 2 methods to solve the problem as follows: Method 1: The price of the share is the present value of all future cash flows. The formula to calculate the price of the stock is as follows: Po = D1/(r - g) Where, Po = Price of the stock todayD1 = Dividend expected one year from now g = Growth rate of dividends r = Required rate of return Putting the given values in the above formula, we get Po = $1/(0.114 - 0.054) = $16.67
Thus, the stock price per share today is $16.67.Method 2:The dividend growth model can also be used to find the price of the stock as follows: Po = Do × (1 + g) / (r - g) Where, Po = Price of the stock today Do = Dividend just paid g = Growth rate of dividends r = Required rate of return. Putting the given values in the above formula, we get Po = $1 × (1 + 0.054) / (0.114 - 0.054) = $16.67Thus, the stock price per share today is $16.67. Answer: Therefore, the answer is $16.67 which is option A.
Growth rates refer to the percentage change of a specific variable within a specific time period. Growth rates can be positive or negative, depending on whether the size of the variable is increasing or decreasing over time. Growth rates were first used by biologists studying population sizes, but they have since been brought into use in studying economic activity, corporate management, or investment returns.
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X-Wear is a supplier of children's clothing in Ontario. It has entered into a contract with Nicky, a children’s store in Paris, France, for the delivery of 500 holiday sweaters for a total payment of $10,000. The contract requires X-Wear to deliver the sweaters to Nicky by no later than December 10 to meet the holiday-season demand. The contract states that "time is of the essence". As part of this contract, Nicky pays X-Wear a $5,000 deposit. The contract is governed by the laws of the Province of Ontario. X-Wear arranges for a courier company to deliver the 500 sweaters. On December 5, the courier company notifies X-Wear that the shipment of sweaters was lost and cannot be found. X-Wear immediately (on December 5) informs Nicky’s that the shipment was lost by the courier and it will not get the sweaters by December 10. X-Wear offers to deliver a new set of 500 sweaters but the earliest they would get to Paris would be January 5. For Nicky’s that is too late as it will have missed the holiday market. Nicky wants to discharge the contract with X-Wear.
Can Nicky discharge the contract with X-Wear? Yes or No. Explain and support your answer by identifying the applicable law and applying it to the facts.
PLEASE ANSWER FROM A LEGAL PERSPECTIVE
Yes, Nicky can discharge the contract with X-Wear since the contract contains a specific condition, "time is of the essence," and X-Wear failed to deliver the goods on the stipulated date as per the laws of the Province of Ontario.
When a contract specifies that time is of the essence, it is a fundamental term, and if it is not fulfilled, the other party is entitled to terminate the contract. In this case, X-Wear was unable to fulfill the term of delivering the goods by the stipulated date, and therefore, Nicky is entitled to discharge the contract. In addition to the above, the common law doctrine of "frustration of purpose" might also apply here.
Frustration of purpose happens when a condition that is critical to the performance of the contract ceases to exist. In this situation, the holiday-season demand that the contract was supposed to fulfill became pointless since the delivery could not be made on time. As a result, it can be argued that the entire reason for the contract has been frustrated. Therefore, Nicky is entitled to discharge the contract. The law that applies in this case is the common law of the Province of Ontario.
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Stock A has a beta of 0.88 and volatility of 0.58. Stock B has a beta of 1.45 and volatility of 0.89. You form a portfolio with $8,000 in Stock A and $8,000 in Stock B. What is your portfolio's expected return if the market risk premium is 6.5% and the T-Bill yield is 2.7%? Enter your answer as a decimal showing four decimal places. For example, if your answer is 8.25%, enter .0825.
The portfolio's expected return is 0.0974
To calculate the portfolio's expected return, we need to use the weighted average of the individual stock returns. The formula is:
Portfolio Expected Return = (Weight of Stock A * Expected Return of Stock A) + (Weight of Stock B * Expected Return of Stock B)
First, we need to calculate the expected return of each stock using the market risk premium and the T-Bill yield:
Expected Return of Stock A = T-Bill yield + (Beta of Stock A * Market Risk Premium)
Expected Return of Stock B = T-Bill yield + (Beta of Stock B * Market Risk Premium)
Using the given values:
T-Bill yield = 2.7%
Market Risk Premium = 6.5%
Expected Return of Stock A = 2.7% + (0.88 * 6.5%) = 7.232%
Expected Return of Stock B = 2.7% + (1.45 * 6.5%) = 12.255%
Next, we can calculate the portfolio's expected return:
Portfolio Expected Return = (Weight of Stock A * Expected Return of Stock A) + (Weight of Stock B * Expected Return of Stock B)
Weight of Stock A = (Amount invested in Stock A) / (Total portfolio value)
Weight of Stock B = (Amount invested in Stock B) / (Total portfolio value)
Total portfolio value = Amount invested in Stock A + Amount invested in Stock B = $8,000 + $8,000 = $16,000
Weight of Stock A = $8,000 / $16,000 = 0.5
Weight of Stock B = $8,000 / $16,000 = 0.5
Portfolio Expected Return = (0.5 * 7.232%) + (0.5 * 12.255%)
Portfolio Expected Return = 3.616% + 6.1275% = 9.7435%
Therefore, the portfolio's expected return is 0.0974 (rounded to four decimal places).
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Considering strategic position and the competitive scope. Please explain the positioning strategy of each airline company: ANA, Air Asia, and Skymark Airlines. Additionally, please compare the position strategies of four companies.
ANA (All Nippon Airways) positions itself as a leading global airline, focusing on premium services and a wide range of flight options for both business and leisure travelers.
Air Asia adopts a low-cost positioning strategy, offering affordable airfare options and efficient operations, targeting budget-conscious travelers.
Skymark Airlines positions itself as a low-cost domestic carrier in Japan, providing affordable and convenient travel options for domestic travelers.
When comparing the positioning strategies, ANA focuses on premium services and global reach, Air Asia targets low-cost regional travel, and Skymark Airlines caters specifically to the domestic market in Japan. Each airline has a distinct positioning strategy based on their target market and competitive scope.
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Tonki Ton's capital structure comprises $65,000 of debt and $55,000 of equity It is known that the company's cost of debt (before tax) is 12% and the cost of equity is 16%. The tax rate of the company is 20%.
(1)
WACC
Calculate Tonki Ton's weighted average after-tax cost of capital
(WACC) 12.53%
$9,9641-
Using your answer in part (i), calculate the Economic Value Added (EVA) of an investment which will generate a Net Operating Profit After Tax (NOPAT) of $25,000 for Tonki Ton. Should the company accept the investment? Why?
(
Since the Economic Value Added (EVA) is positive ($8,400.40), Tonki Ton should accept the investment. A positive EVA indicates that the investment is generating value for the company and is expected to generate a return greater than the cost of capital.
To calculate the weighted average after-tax cost of capital (WACC), we need to use the formula: WACC = (E/V) * Re + (D/V) * Rd * (1 - tax rate) Where: E = Equity value, V = Total value of the company (E + D), Re = Cost of equity, D = Debt value, Rd = Cost of debt, Tax rate = Tax rate of the company.
Given the information provided, we can calculate the WACC as follows:
E = $55,000
D = $65,000
Re = 16%
Rd = 12%
Tax rate = 20%
V = E + D = $55,000 + $65,000 = $120,000
WACC = ($55,000/$120,000) * 16% + ($65,000/$120,000) * 12% * (1 - 20%)
WACC = 0.4583 * 0.16 + 0.5417 * 0.12 * 0.8
WACC = 0.07333 + 0.06500
WACC = 0.13833 or 13.83%
To calculate the Economic Value Added (EVA), we subtract the company's after-tax cost of capital (WACC) from its Net Operating Profit After Tax (NOPAT):
EVA = NOPAT - (Capital * WACC)
Given that the NOPAT is $25,000, and assuming the capital invested is the total value of the company (V = $120,000):
EVA = $25,000 - ($120,000 * 0.13833)
EVA = $25,000 - $16,599.60
EVA = $8,400.40
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2(two) advantages of Pen formula (Pty) Ltd.'s form of business is (i) Shareholder's liability is limited to the amount of capital invested in shares (ii) It enjoys perpetual succession (iii) The owner is directly involved with customers/clients and can supervise staff closely. (iv) Decisions are taken quickly a. (ii) & (iv) b. (i) & (iii) c. (i) & (ii) d. (iii) & (iv)
The important advantages of Pen formula (Pty) Ltd.'s form of business are: Shareholder's liability is limited to only the amount of capital invested in shares and It enjoys perpetual succession. The correct answer is option c.
(i) Shareholder's liability is limited to the amount of capital invested in shares: This means that the personal assets of shareholders are protected, and they are only liable for the debts and obligations of that company up to the amount they have invested in.
(ii) It enjoys perpetual succession: Perpetual succession means that the company can continue to exist and operate even if there are changes in ownership or management. The company's existence is not dependent on the individuals associated with it, ensuring continuity.
Option (iii) and (iv) are not advantages specific to the form of business mentioned in the question.
The correct answer is option c.
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You have two consumers with known reservation prices for goods A and B. Should you price the goods separately or bundle? Assume marginal costs = 20€ for both goods. Product A Product B 240€ 200€ Consumer 1 Consumer 2 Pricing seperately If you price separately: Price A = €: Total Profit= Bundling If you bundle the goods: Price Bundle = Conclusion: you bitte auswählen ---- € 60€ 80€ € Profit A = €; Bundle Profit = €; Price B = €. €; Profit B = If you bundle the goods: Price Bundle = Conclusion: you bitte auswählen ---- bitte auswählen €; Bundle Profit = should bundle the products should sell products seperately are indifferent between bundling and seperate pricing
To determine whether it is more profitable to price the goods separately or bundle them, we need to compare the profits generated from each pricing strategy.
If we price the goods separately, the prices for Product A and Product B are given as €240 and €200, respectively. Given that the margin cost for both goods is €20, the profits for each product can be calculated as follows:
Profit A (Pricing separately) = Price A - Marginal Cost = €240 - €20 = €220
Profit B (Pricing separately) = Price B - Marginal Cost = €200 - €20 = €180
If we bundle the goods, we need to determine the price for the bundle. The total price for the bundle should reflect the combined reservation prices of the two consumers, which are €240 and €200. However, since we don't have information about the specific reservation prices of each consumer for the individual goods, we cannot determine the exact bundle price or profits.
Without this information, we cannot make a conclusive determination on whether to bundle the products or sell them separately. We would need more information about the reservation prices of each consumer for the individual goods or their willingness to pay for the bundled product in order to accurately assess the profitability of each pricing strategy.
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You are invested in GreenFrame, Inc. The CEO owns 3% of GreenFrame and is considering an acquisition. If the acquisition destroys $50 million of GreenFrame's value, but the present value of the CEO's compensation increases by $5 million, will he be better or worse off? Note: Ignore taxes.The CEO will be........ because his wealth has changed by $....... million. (Round to two decimal places.)
The CEO will be better off because his wealth has changed by $3.50 million.Answer: The CEO will be better off because his wealth has changed by $3.50 million.
The CEO's percentage ownership = 3%As the acquisition destroys $50 million of GreenFrame's value and the CEO's ownership is 3%, his wealth will decrease by 3% of $50 million, which is,3/100 * $50 million = $1.5 million
As the present value of the CEO's compensation increases by $5 million, the wealth of the CEO will change by $5 million - $1.5 million = $3.5 million.
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