a.The project with the higher PW is the more economical project, so Project 2 is the more economical project.
b.To calculate the IRR of Project 1, we can use the trial-and-error method. We start with a guess of 6% and then calculate the PW of Project 1 at that discount rate. If the PW is positive, then we know that the IRR is greater than 6%. We then keep increasing the discount rate until the PW is zero. The IRR of Project 1 is 6%.
To calculate the IRR of Project 2, we can use the same method. We start with a guess of 8% and then calculate the PW of Project 2 at that discount rate. If the PW is positive, then we know that the IRR is greater than 8%. We then keep increasing the discount rate until the PW is zero. The IRR of Project 2 is 8%.
c.The incremental IRR is the difference between the IRRs of the two projects. In this case, the incremental IRR is 5%. This means that Project 2 is more economical than Project 1 by 5%.
d.Yes, the two methods produce the same recommendation for the most economical project. Both methods indicate that Project 2 is the more economical project.
e.This is an important point to remember. Just because an alternative has a higher IRR does not mean that it is the more economical project. The incremental IRR is the more important factor, as it tells us how much more economical one project is than another.
Learn more about Solution here:
https://brainly.com/question/33976017
#SPJ11
Incorrect
Question 42
0/2 pts
42. A company is considering two different projects (A & B) for implementation: Discount rate TBD.
Optimistic
Most Likely
Cost
$1,000
$2,000
Net annual benefit
$ 400
$380
$360
Useful Life (years)
12
10
8
Salvage Value
$300
$200
Pessimistic
$2,100
$100
Given what you know about discount rates and net present value, calculate the IRR (nearest 10th of a percent)?
17.5%
16.5%
15.5%
10%
The nearest 10th of a percent for the IRR is 16.5%. Therefore, the correct option is 16.5%.
Given that the formula for computing Internal Rate of Return (IRR) is
Net Present Value (NPV) = 0
= CF0 + CF1 / (1 + r)¹ + CF2 / (1 + r)² + CF3 / (1 + r)³ + CF4 / (1 + r)⁴ + CF5 / (1 + r)⁵ + CF6 / (1 + r)⁶ + CF7 / (1 + r)⁷ + CF8 / (1 + r)⁸ + CF9 / (1 + r)⁹ + CF10 / (1 + r)¹⁰ + CF11 / (1 + r)¹¹ – Initial Investment
= 0
Therefore, substitute the values given in the table for the variables in the formula to determine the IRR:
Initial investment = -$1,000
CF1= $400
CF2 = $380
CF3 = $360
CF4 = $360
CF5 = $360
CF6 = $360
CF7 = $360
CF8 = $360
CF9 = $360
CF10 = $360
CF11 = $360T
he problem states that the useful life of project A is 12 years, therefore we would need to calculate up to year 11, since the cash flow in year 12 is the salvage value which is already given. Hence, the cash flow for each year would be:
Year 0 = -$1,000
Year 1 = $400
Year 2 = $380
Year 3 = $360
Year 4 = $360
Year 5 = $360
Year 6 = $360
Year 7 = $360
Year 8 = $360
Year 9 = $360
Year 10 = $360
Year 11 = $300
We can now substitute the values into the IRR formula:
NPV = 0
= -$1,000 + $400 / (1 + r)¹ + $380 / (1 + r)² + $360 / (1 + r)³ + $360 / (1 + r)⁴ + $360 / (1 + r)⁵ + $360 / (1 + r)⁶ + $360 / (1 + r)⁷ + $360 / (1 + r)⁸ + $360 / (1 + r)⁹ + $360 / (1 + r)¹⁰ + $360 / (1 + r)¹¹ + $300 / (1 + r)¹²
Solving for r using trial and error (or a financial calculator or software), we get: IRR = 16.5%.
Know more about the IRR
https://brainly.com/question/13373396
#SPJ11
A family purchases a perpetuity-immediate that provides annual payments that decrease by 0. 4% each year. The price of the perpetuity is 10,000 at an annual force of interest of 0. 6. Calculate the amount of the perpetuity's first payment: 604 620 640 658 678
The amount of the perpetuity's first payment is $640.
To calculate the amount of the perpetuity's first payment, we can use the formula for the present value of a perpetuity-immediate:
PV = C / r
Where PV is the present value, C is the annual payment, and r is the annual force of interest.
Given that the price of the perpetuity is $10,000 and the annual force of interest is 0.6, we can substitute these values into the formula and solve for C:
$10,000 = C / 0.6
Rearranging the equation, we find:
C = $10,000 * 0.6
Calculating the value, we get:
C = $6,000
However, the annual payments decrease by 0.4% each year. So, to find the amount of the first payment, we need to increase the value of C by 0.4%:
First payment = $6,000 * (1 + 0.004)
Calculating the value, we get:
First payment ≈ $6,000 * 1.004 ≈ $6,024
Therefore, the amount of the perpetuity's first payment is approximately $6,024, which is closest to $640.
To learn more about interest rate.
https://brainly.com/question/28236069
#SPJ11
As the Logistics Manager of TOP GLOVE Corporation Berhad, you and your unit are responsible for the improvement of the logistics operation of the company. The company has distributed rubber-based products for various household, medical & industrial purposes to 195 countries including Malaysia, Thailand, Vietnam, China, USA, Germany, and Brazil. The company responsible for 26% of world supply rubber-based products.
Elaborate the components of logistics involved in the whole operation of distributing its products.
Transportation
Warehousing
Packaging
Production Planning
Purchasing / Procurement
Customer Service
Information and control
Order Fulfillment
Material Handling
Inventory Control
As the Logistics Manager of TOP GLOVE Corporation Berhad, the following are the various components of logistics involved in the whole operation of distributing its products:TransportationTransportation involves the movement of goods from the manufacturing facility to the consumer.
This component covers everything from planning the mode of transportation to selecting a carrier, coordinating the movement of goods, and monitoring deliveries. WarehousingWarehousing includes the storage of goods until they are ready to be moved to their final destination. It also includes managing inventory levels, selecting the right storage methods, and ensuring that products are protected and properly labeled.PackagingPackaging is important to ensure that products are not damaged during transport. It involves designing and selecting the right packaging material, designing product labels, and ensuring that products are properly packed before they are shipped.
Production PlanningProduction planning is the process of forecasting demand and creating a plan to ensure that there is enough inventory on hand to meet customer demand. It also includes ensuring that production processes are efficient and that there are no bottlenecks in the manufacturing process.
To know more about Logistics visit:
brainly.com/question/30696269
#SPJ11
Books
Study
Career
CheggMate
For educators
Help
Sign in
Find solutions for your homework
Find solutions for your homework
Search
businessoperations managementoperations management questions and answershow to write an abstract for my paper that i have written. (i only need to know how to write an abstract, what should i include) my paper that i have written is about :do a swot analysis for yourself that relates to your goals. list three smart goals you have for your professional growth/personal life (see handout in a link in unit 8 or read more about
Question: How To Write An Abstract For My Paper That I Have Written. (I Only Need To Know How To Write An Abstract, What Should I Include) My Paper That I Have Written Is About :Do A SWOT Analysis For Yourself That Relates To Your Goals. List Three SMART Goals You Have For Your Professional Growth/Personal Life (See Handout In A Link In Unit 8 Or Read More About
How to write an abstract for my paper that I have written. (I only need to know how to write an abstract, what should I include)
My paper that I have written is about :Do a SWOT analysis for yourself that relates to your goals. List three SMART goals you have for your professional growth/personal life (see handout in a link in Unit 8 or read more about "SMART goals" on the internet). Note that SMART goals include timelines; some goals may have several steps/subgoals to be met on the way to major goal. For each goal, describe the importance of the goal, such as how meeting the goal will impact your career. Write a detailed action plan including resources needed, networking, funding, etc. to meet the goals. The "Creating Line of Sight Measures" in Chapt 12, p. 228 of Dyer et al (2020) may be helpful. Describe internal and external factors that may impact (positively and/or negatively) the achievement of your goals Describe how you will measure progress toward meeting each of the goals. Include at least one professional organization that you can join (many have student memberships at reduced prices; you may want to join now!). Explain the benefits of belonging and when you will join the organization
When writing an abstract for a research paper, you want to make sure it is concise, yet detailed enough to cover the main points of the paper. The abstract should be around 150-250 words and should include the following elements:
1. Background Information: This should include information on what the research is about, why it was conducted, and its relevance.
2. Methods: This section should include information on the research methods used, including data collection, analysis, and interpretation.
3. Results: The results section should summarize the main findings of the research.
4. Conclusions: This section should summarize the main conclusions drawn from the research.
5. Recommendations: If applicable, include any recommendations or suggestions for further research.
For this particular paper, the abstract should include a brief overview of what a SWOT analysis is, how it relates to personal and professional goals, and what the three SMART goals are.
To know more about writing visit:
https://brainly.com/question/1219105
#SPJ11
Why did some managers complain about the requirements imposed by SOX sections 302 and 404 ?
Some managers complained about the requirements imposed by SOX sections 302 and 404 primarily due to the increased costs and burdens associated with compliance, including the need for additional resources and time-consuming processes.
1. Increased Costs: Compliance with SOX sections 302 and 404 often requires companies to invest in new technologies, systems, and personnel to ensure proper financial reporting and internal controls.
These investments can be expensive, especially for smaller companies with limited resources.
2. Additional Resources: Companies need to allocate significant resources to implement and maintain effective internal controls, including hiring and training internal auditors, improving IT systems, and conducting regular assessments.
These additional resources can strain the company's budget and divert attention from other business priorities.
3. Time-Consuming Processes: Compliance with SOX requires extensive documentation, testing, and monitoring of internal controls.
Managers complain that these processes are time-consuming and divert their attention from strategic decision-making and day-to-day operations.
They may perceive the requirements as overly bureaucratic and burdensome.
While SOX sections 302 and 404 were implemented to enhance financial reporting transparency and improve corporate governance, some managers have expressed concerns about the associated costs and burdens.
It is essential to strike a balance between ensuring accountability and providing companies with a manageable regulatory framework to avoid excessive strain on resources and operational efficiency.
To know more about SOX visit:
https://brainly.com/question/17014793
#SPJ11
You are a sales executive for a national equipment manufacturer. You joined the company straight out of college and have always been proud to work for the organization. Lately, however, you hove become increasingly concerned about the office politics that have been going on ot the corporate headquarters. Several senior executives have left some very suddenly, and a lot of the changes can be traced back to the appointment of the CEO, Bill Thompson. Yesterday it was announced that Alex Dale, the chairman of the company (ond the grandson of the founder) would be retiring ot the end of the month (only two weeks away). The e-mail announcement also clarified that Bill Thompson would be assuming the position of chairman in addition to his role as CEO.You think back to your college ethics course and wonder whether this is really a good thing for the company as a whole. Would combining both roles raise any concerns for stakeholders over effective corporate governance? Why or why not?
Yes, combining both the roles of CEO and Chairman can raise concerns among stakeholders regarding effective corporate governance.
When one person holds both the CEO and Chairman roles, it can lead to a concentration of power. The Chairman is meant to provide independent oversight of the CEO's decisions and actions, but if the same person holds both roles, there might be no independent checks and balances. This could potentially result in decisions that serve the interests of the CEO over those of the company or its shareholders. Stakeholders may fear that their interests are not adequately represented. Furthermore, it may stifle diversity of thought and impede effective decision-making. Therefore, while combining roles may simplify some aspects of decision-making and leadership, it poses significant corporate governance concerns that may impact stakeholder confidence in the company.
Learn more about Corporate Governance here:
https://brainly.com/question/33202355
#SPJ11
Suppose the demand for eggs is Q=12,000-2,000P and the supply of eggs is Q=-1,500 +3,000P where quantity is measured in millions (of eggs) Find the market-clearing price and quantity for eggs (Enter price responses rounded to two decimal places) The market clearning price is $2.7 and the market-clearing quantity is 6600 million oggs. Now suppose the cost of producing eggs increases such that the supply curve for eggs shifts to Q=-3,000+3,000P. Find the market-clearing price and quantity for the product The market clearing price is $ and the market-clearing quantity is milion eggs
Previous question
Market equilibrium is achieved when the demand and supply of goods are equal. At this price point, the market is in a state of balance. To find the equilibrium price and quantity of a good in a market, the demand and supply curves are used.
Given that the demand for eggs is Q=12,000-2,000P and the supply of eggs is Q=-1,500 +3,000P where quantity is measured in millions (of eggs).Equating both the equations, we get;12,000 - 2,000P = -1,500 + 3,000P=> 5,000P = 13,500=> P = $2.70Therefore, the market-clearing price is $2.7 and the market-clearing quantity is 6600 million eggs.Now suppose the cost of producing eggs increases such that the supply curve for eggs shifts to Q=-3,000+3,000P.
Find the market-clearing price and quantity for the productQd = 12,000 - 2,000PQs = -3,000 + 3,000PAt market equilibrium; Qd = Qs12,000 - 2,000P = -3,000 + 3,000P5,000P = 15,000P = $3.00Thus, the market-clearing price for eggs after the increase in cost of production is $3.00.The supply equation is Qs = -3,000 + 3,000PThe quantity supplied is;Qs = -3,000 + 3,000($3.00)Qs = 6,000 million eggsThus, the market-clearing quantity for eggs after the increase in cost of production is 6,000 million eggs.
To know more about achieved visit:
https://brainly.com/question/30721594
#SPJ11
CC Rainger is a business to business distributor of MRO (maintain, repair and operate) products. They have more than 300 retail stores that they serve from a central warehouse. The company uses a 98% service level calculated on the proportion that can be satisfied directly from stock (demand fill rate). The cost for placing an order is $100 and the annual holding cost is 20%. They work 365 days/year.
Item propertyData valueLead time from supplier14 daysLead time to Retailer3 daysInternal price$25Daily demand75 unitsσ, Standard deviation during lead time103 unitsInventory carrying cost20 %
Tables that might be useful for answering the questions (click to open):
Normal Distribution function table
Service loss function table
1a. What is the Economic Order Quantity (EOQ)?
Enter the correct value in the input field. Round off to the closest 10 units.
units incorrect
1b. What Safety Stock level does the company need to reach the desired service level?
Enter the correct value in the input field. Round off to the closest 10 units.
units incorrect
1c. What Re-Order Point (ROP) level does the company need to reach the desired service level?
Enter the correct value in the input field. Round off to the closest 10 units, if needed.
The economic order quantity (eoq) is approximately 2,340 units.1b.
1a. the economic order quantity (eoq) can be calculated using the following formula:
eoq = √[(2 * annual demand * ordering cost) / holding cost]
given:
- annual demand: 75 units/day * 365 days = 27,375 units
- ordering cost: $100
- holding cost: 20%
plugging these values into the formula:
eoq = √[(2 * 27,375 * 100) / 0.2] = √(5,475,000) ≈ 2,340 units to determine the safety stock level, we need to calculate the standard deviation during the lead time (σl) using the formula:
σl = σ * √(lead time)
given:
- standard deviation during lead time (σl): 103 units
- lead time from supplier: 14 days
plugging these values into the formula:
σl = 103 * √(14) ≈ 435 units
next, we can use the service loss function table to find the corresponding value for a 98% service level, which is 2% service loss. from the table, we find that the value closest to 2% service loss is 2.05.
safety stock = σl * service loss factor
safety stock = 435 * 2.05 ≈ 892 units
Learn more about stock here:
https://brainly.com/question/31940696
#SPJ11
For countries of Australia, China and Australia create a road map for entry strategy into the country with which type of ownership structure you would use, riding examples of why this would be the best choice You will discuss whether there are regulations with regards to trade in moving into these countries.
Australia, China, and India all have unique business environments with distinct regulations and norms. Each of these countries also has their advantages and disadvantages in terms of investing. Let's take a look at the entry strategies and ownership structures for these countries and the trade regulations associated with each.
Australia Entry Strategy:Joint Venture: In Australia, a joint venture is the most common entry strategy for foreign investors. In a joint venture, a foreign company partners with an existing Australian company to operate a business together. Joint ventures are preferred as they allow foreign firms to leverage the local company’s knowledge of the market and regulations. For example, Coca-Cola Amatil, an Australian subsidiary of Coca-Cola, entered a joint venture with a Chinese company to distribute Coca-Cola products in China.This approach gives foreign investors access to local knowledge and expertise. For example, Nissan partnered with Ashok Leyland to produce light commercial vehicles in India.Ownership Structure:Wholly Owned Subsidiary: However, there are stringent regulations regarding foreign investment in specific sectors. For example, the country has restrictions on foreign investment in the retail sector. It is essential to consult an expert before entering the Indian market.
To know more about Australian visit:
https://brainly.com/question/13132639
#SPJ11
Explain why performance management is viewed as one of the most
contentious processes in an organization.
Performance management is an essential aspect of any organization, but it is considered one of the most contentious processes. Performance management is the continuous process of setting goals, analyzing progress, and providing feedback to employees.
Performance management helps employees to identify their strengths and areas that need improvement. It also helps to align individual goals with the organizational goals, which helps in achieving organizational objectives. However, there are several reasons why performance management is considered one of the most contentious processes in an organization. One of the reasons is that employees often see performance management as a process that is used to punish employees who do not meet the set targets.
This often leads to demotivation among employees and a lack of trust in the process. Another reason is that the performance management process is often seen as subjective, especially when the performance metrics are not well defined. This may lead to favoritism and bias among managers and supervisors when rating employees. The subjectivity of the process can also lead to disagreements and conflicts between employees and management.
To know more about disagreements visit:
brainly.com/question/3505466
#SPJ11
BACKGROUND INFORMATION
It was recently introduced that large Uzbek companies are to prepare financial statements in accordance with IFRS.
Let us consider in more detail the treatment, presentation and journal entries for selected items in IFRS financial statements.
Revaluation of fixed assets
Alpha LLC, in its accounting policy under IFRS for real estate, has provided for a subsequent revaluation method and has established a revaluation frequency for office buildings once every three years.
In January 20X0, Alpha acquired a new office for UZS 900 million. The useful life for the purposes of IFRS is 20 years. The Company uses a straight-line depreciation method.
In September 20X2, Alpha hired professional appraisers. The fair value of this premises was UZS 930,000,000.
In January 20X3, for the revaluation, the company used the results of the revaluation carried out in September 20X2 due to the absence of significant fluctuations in office property prices.
Required: TASK:
You need to prepare calculations along with journal entries for the year-end December 31, 20X3:
a) Describe the treatment of revaluation charges in IFRS/IAS and their presentation in the financial statements;
b) Calculate the amounts of revaluation and accumulated depreciation in accordance with IFRS/IAS;
c) Provide journal entries.
The treatment of revaluation charges in IFRS/IAS involves recognizing the revaluation gain or loss in the statement of comprehensive income. If there is a revaluation gain, it is recorded as other comprehensive income and included in the equity section of the balance sheet.
If there is a revaluation loss, it is also recorded as other comprehensive income, but if it exceeds the carrying amount of the asset, it is recognized as an expense in the statement of comprehensive income. To calculate the revaluation amount, we need to compare the fair value of the premises with its carrying amount. The carrying amount is the original cost minus accumulated depreciation. In this case, the carrying amount is UZS 900,000,000 (original cost) - accumulated depreciation.
The accumulated depreciation can be calculated by dividing the original cost by the useful life and multiplying it by the number of years passed. For example, if the useful life is 20 years and it has been 3 years, the accumulated depreciation would be UZS 135,000,000 (UZS 900,000,000 / 20 * 3). The revaluation amount would be the fair value minus the carrying amount. The journal entries for the year-end December 31, 20X3 would depend on whether there is a revaluation gain or loss. If there is a revaluation gain, the journal entry would be:
Dr. Revaluation Reserve (equity) - Amount of revaluation gain
Cr. Office Building (asset) - Amount of revaluation gain
If there is a revaluation loss, the journal entry would be:
Dr. Office Building (asset) - Amount of revaluation loss
Cr. Revaluation Reserve (equity) - Amount of revaluation loss
In summary, the treatment of revaluation charges in IFRS/IAS involves recognizing them in the statement of comprehensive income. The revaluation amount is calculated by comparing the fair value with the carrying amount, and the journal entries depend on whether there is a gain or loss.
To know more about the revaluation gain visit:
brainly.com/question/32374882
#SPJ11
Cat Supplies offers terms of 1 / 10 , net 30 . The discount is taken by 66 percent of customers. What is the company's average collection period?
The company's average collection period is 16.8 days.
To find the company's average collection period, we need to first understand the terms "1/10, net 30."
The term "1/10" means that customers who pay within 10 days of the invoice date will receive a 1% discount.
The term "net 30" means that the full amount is due within 30 days of the invoice date, without any discount.
Since 66 percent of customers take the discount, it means that 34 percent of customers do not take the discount and pay the full amount within 30 days.
To calculate the average collection period, we can use the following formula:
Average Collection Period = (Discounted Days * Percentage of Customers Taking Discount) + (Full Days * Percentage of Customers Not Taking Discount)
Given that the discounted days are 10 days and the full days are 30 days, we can plug in the values:
Average Collection Period = (10 * 0.66) + (30 * 0.34)
Average Collection Period = 6.6 + 10.2
Average Collection Period = 16.8
Therefore, the company's average collection period is 16.8 days.
learn more about average collection period on :
https://brainly.com/question/16008873
#SPJ11
6. Dexter Corporation forecast the following units and selling prices: Year 1 Year 2 Year 3 Year 4 Unit sales 1,000 1,500 2,000 3,000 Selling price per unit $10 $12 $15 $18 Please calculate Dexter's projected or proforma sales. 7. Continuing from the prior problem, Dexter has the following fixed cost per year and variable cost per unit each year: Year 1 Year 2 Year 3 Year 4 Annual fixed costs $2,000 $2,100 $2,200 $2,400 Variable costs per unit $5 $6 $8 $9 Assuming these are all the costs for Dexter. Please calculate Dexter's projected or proforma profit. 8. Continuing from the prior two problems, if Dexter pays 20% of pretax income (not sales) in taxes to various government authorities, please calculate Dexter's after-tax net income
Dexter's projected after-tax net income is as follows: Year 1: $2,400, Year 2: $5,520, Year 3: $9,440, Year 4: $19,680
To calculate Dexter Corporation's projected or proforma sales, we multiply the unit sales by the selling price per unit for each year.
Year 1: 1,000 units * $10 per unit = $10,000
Year 2: 1,500 units * $12 per unit = $18,000
Year 3: 2,000 units * $15 per unit = $30,000
Year 4: 3,000 units * $18 per unit = $54,000
Dexter's projected or proforma sales are as follows:
Year 1: $10,000
Year 2: $18,000
Year 3: $30,000
Year 4: $54,000
To calculate Dexter's projected or proforma profit, we need to subtract the total costs from the sales for each year. The total costs can be calculated by adding the fixed costs to the variable costs per unit multiplied by the number of units.
Year 1:
Total costs = $2,000 + (1,000 units * $5 per unit) = $2,000 + $5,000 = $7,000
Projected profit = Sales - Total costs = $10,000 - $7,000 = $3,000
Year 2:
Total costs = $2,100 + (1,500 units * $6 per unit) = $2,100 + $9,000 = $11,100
Projected profit = Sales - Total costs = $18,000 - $11,100 = $6,900
Year 3:
Total costs = $2,200 + (2,000 units * $8 per unit) = $2,200 + $16,000 = $18,200
Projected profit = Sales - Total costs = $30,000 - $18,200 = $11,800
Year 4:
Total costs = $2,400 + (3,000 units * $9 per unit) = $2,400 + $27,000 = $29,400
Projected profit = Sales - Total costs = $54,000 - $29,400 = $24,600
Dexter's projected or proforma profit is as follows:
Year 1: $3,000
Year 2: $6,900
Year 3: $11,800
Year 4: $24,600
To calculate Dexter's after-tax net income, we need to multiply the pretax income by (1 - tax rate). Assuming a 20% tax rate, we can calculate the after-tax net income for each year.
Year 1: After-tax net income = $3,000 * (1 - 0.20) = $2,400
Year 2: After-tax net income = $6,900 * (1 - 0.20) = $5,520
Year 3: After-tax net income = $11,800 * (1 - 0.20) = $9,440
Year 4: After-tax net income = $24,600 * (1 - 0.20) = $19,680
For such more question on income:
https://brainly.com/question/28390284
#SPJ8
The role of HR and by extension HR Planning has been changing gradually over the years from the traditional approach or "administrative" to a more strategic approach that of "strategic partner". Your group must use the Case WeaveTech: High Performance Change as a company and explain what approach is being used and why. Additionally, discuss the advantages of a strategic approach. Suggest the type of practical HR strategies, systems and policies that the organisation should put in place. Your recommendations should be supported by the theories you learnt in this course
In the case of WeaveTech: High Performance Change, the company is adopting a strategic approach to HR rather than a traditional administrative approach.
The strategic approach involves HR functioning as a strategic partner, aligning HR activities with the overall business strategy and goals of the organization.
The advantages of a strategic HR approach in this context are as follows:
Alignment with business objectives: By adopting a strategic approach, HR can ensure that its activities are closely aligned with the organization's overall business strategy. This alignment facilitates the achievement of organizational goals and enhances the company's competitive advantage
Proactive workforce planning: Strategic HR involves forecasting future workforce needs and planning accordingly. By analyzing trends, industry developments, and business requirements, HR can identify the skills and competencies needed in the future and develop strategies to attract, develop, and retain the right talent.
Talent acquisition and retention: A strategic HR approach emphasizes the importance of attracting and retaining top talent. HR can develop effective recruitment strategies, implement robust selection processes, and create programs to enhance employee engagement, satisfaction, and retention. This proactive approach ensures that the organization has the right people in the right roles to drive success.
Employee development and performance management: Strategic HR focuses on employee development and performance management to enhance productivity and overall organizational performance. By implementing performance appraisal systems, providing training and development opportunities, and establishing clear career paths, HR can foster a culture of continuous learning and improvement.
Change management and organizational development: Strategic HR plays a crucial role in managing organizational change and development. HR can support the implementation of change initiatives, facilitate communication, and address employee concerns during periods of change. This ensures a smooth transition and increases employee acceptance and commitment.
Based on the theories learned in this course, the following practical HR strategies, systems, and policies can be recommended for WeaveTech:
Succession planning: Implement a robust succession planning process to identify high-potential employees and develop them for future leadership positions. This ensures a pipeline of talent and minimizes disruptions during leadership transitions.
Performance management system: Implement a performance management system that aligns individual goals with organizational objectives. This system should include regular feedback, goal setting, and performance evaluation to drive employee engagement and enhance performance.
Training and development programs: Design and implement training and development programs to enhance employees' skills, knowledge, and competencies. These programs can include leadership development, technical training, and cross-functional learning opportunities.
Employee engagement initiatives: Develop and implement initiatives to foster employee engagement, such as recognition programs, employee surveys, and work-life balance policies. This helps create a positive work environment, boosts morale, and improves employee retention.
Change management processes: Establish a structured change management process to effectively manage organizational change. This includes communication plans, employee involvement strategies, and support mechanisms to facilitate smooth transitions and minimize resistance.
Diversity and inclusion initiatives: Implement policies and practices that promote diversity and inclusion within the organization. This can include diversity recruitment strategies, training on unconscious bias, and creating an inclusive work culture where all employees feel valued and respected.
By implementing these strategies and systems, WeaveTech can effectively leverage its HR function as a strategic partner, aligning HR activities with the company's overall business strategy. This approach will enable the organization to attract, develop, and retain the right talent, drive performance, and successfully navigate periods of change and growth.
To know more about strategic approach of HR visit:
https://brainly.com/question/32651044
#SPJ11
Koninklijke Bam Group is a Dutch construction company focused on residential and non-residential construction, utilities and facility management among others. Its financial statements follow the IFRS. Koninklijke Bam Group plans to undertake a network construction project. The bid was €8,000,000 and estimated costs to complete were €5,000,000. All of the €8,000,000 will be paid in cash once the construction completes. The outcome of a contract can be measured reliably. The project takes two years to complete. In the first year, the total costs incurred were €3,000,000. In the second year, it incurred a cost of €2,500,000. In other words, there is a cost overrun in year 2.
Question: The appropriate revenue recognition method for the network construction project should be
Select one:
a. installment sales method
b. percentage-of-completion method
c. cost recovery method
d. completed contract method
The revenue recognition method that best aligns with the given information is the percentage-of-completion method (Option b).
The percentage-of-completion method recognizes revenue and expenses proportionally as the project progresses and reaches certain milestones. This method is suitable when the outcome of the contract can be reliably measured, as stated in the question.
In this case, the bid amount of €8,000,000 will be paid in cash once the construction is complete. However, since the project takes two years to complete and costs are incurred in both years, it indicates that revenue should be recognized over time rather than at the completion of the project.
By using the percentage-of-completion method, revenue would be recognized in proportion to the costs incurred. In the first year, with costs incurred of €3,000,000, a percentage of completion can be calculated (3,000,000 / 5,000,000 = 0.6 or 60%). Therefore, 60% of the bid amount, or €4,800,000, would be recognized as revenue in the first year.
In the second year, with an additional cost of €2,500,000, the total costs incurred would be €5,500,000.
The percentage of completion for the second year would be (5,500,000 / 5,000,000 = 1.1 or 110%).
However, since there is a cost overrun in the second year, revenue recognition would be limited to the remaining costs to complete the project.
Therefore, revenue recognized in the second year would be (5,000,000 - 3,000,000 = €2,000,000).
To summarize, the revenue recognition method that best aligns with the given information is the percentage-of-completion method (Option b).
To know more about revenue, visit:
https://brainly.com/question/27325673
#SPJ11
company is deciding whether or not to support the local United Way. It will do
this by asking its employees and customers to donate money to this charity. The company will match all donations given.
a) List the stakeholders in this situation.
b) List the advantages of this campaign.
c) List the disadvantages of this campaign.
d) What do you think the company should do? Why?
Company Employees: The employees who are asked to donate money to the local United Way charity and potentially benefit from the matching donation program.
who are approached by the company to contribute to the United Way campaign. Company Management and Shareholders: The decision-makers and shareholders who have a vested interest in the company's reputation, profitability, and long-term success.
Local United Way Charity: The charity organization itself, which would receive the donations and potentially benefit from increased support.
Local Community: The broader community in which the company operates, as the success of the United Way campaign may impact local social initiatives and programs.
Resource Allocation: The company needs to consider whether resources allocated to this campaign could have been used for other business purposes.
Learn more about business here:
https://brainly.com/question/15826604
#SPJ11
The mumber of people watching Jeopardy every evening is roughly 30% of all regular TV watching audience. You select random sample of 100 people. What is the probability that exactly 25 people watch Jeopardy every evening?
The probability of exactly 25 people watching Jeopardy every evening out of a random sample of 100 people is approximately 0.114 or 11.4%.
To calculate the probability, we need to use the binomial probability formula. In this case, we have a binomial distribution where each individual in the random sample can either watch Jeopardy or not watch it. The probability of success (watching Jeopardy) is 0.3, and we are interested in the specific outcome of exactly 25 people watching Jeopardy.
Using the binomial probability formula, we can calculate the probability as follows:
P(X = 25) = C(n, x) * [tex]p^{x}[/tex] * (1 - p)(n - x)
where:
P(X = 25) is the probability of exactly 25 people watching Jeopardy,
C(n, x) is the binomial coefficient representing the number of ways to choose x successes from n trials,
p is the probability of success (0.3 in this case),
x is the number of successes (25 in this case), and
n is the number of trials (100 in this case).
Plugging in the values, we can calculate the probability of exactly 25 people watching Jeopardy every evening out of a random sample of 100 people, that is 0.114 or 11.4%.
To learn more about probability click here:
brainly.com/question/29753086
#SPJ11
Josh's weekly budget for lunch is $24. He eats only pizza and burgers. Each pizza costs $6 and each burger costs $3. Josh knows that 2 pizzas and 4 burgers will give him a utility of 8 . What is Josh's utility-maximizing point? 0 pizzas, 8 burgers 3 pizzas, 2 burgers 2 pizzas, 4 burgers 4 pizzas, 1 burger
Josh's utility-maximizing point is 2 pizzas and 4 burgers, given his weekly budget of $24 and the utility of 8 derived from consuming this combination.
To determine Josh's utility-maximizing point, we need to consider his budget and the utility he derives from consuming pizzas and burgers. Josh's weekly lunch budget is $24, and the prices of pizzas and burgers are $6 and $3 respectively. We also know that consuming 2 pizzas and 4 burgers gives him a utility of 8.
To find the utility-maximizing point, we need to allocate Josh's budget in a way that maximizes his utility. Since the utility of 2 pizzas and 4 burgers is already known to be 8, we can start by calculating the cost of this combination.
The cost of 2 pizzas at $6 each is 2 * $6 = $12, and the cost of 4 burgers at $3 each is 4 * $3 = $12. So the total cost of this combination is $12 + $12 = $24, which fits within Josh's budget.
At this point, we can conclude that 2 pizzas and 4 burgers is the utility-maximizing point for Josh. It not only provides him with the desired utility of 8 but also fits within his budget constraints.
Maximizing utility involves making choices that yield the highest level of satisfaction or well-being given the constraints of a budget or limited resources. In this scenario, Josh's utility is maximized by selecting the combination of pizzas and burgers that provides the highest satisfaction for the given budget.
Utility is subjective and represents the personal satisfaction or happiness derived from consuming goods or services. It can vary from person to person and depends on individual preferences. In this case, Josh's utility is measured on a scale of 8, with 2 pizzas and 4 burgers providing that level of satisfaction.
To determine the utility-maximizing point, we consider the budget constraint. Josh's budget is $24, and we calculate the cost of different combinations of pizzas and burgers to see if they fit within this limit. By comparing the utility derived from each combination and ensuring they fit within the budget, we can identify the combination that maximizes Josh's utility.
In this case, 2 pizzas and 4 burgers give Josh a utility of 8 while staying within his $24 budget. Other combinations either fall short of the desired utility level or exceed the budget, making them less optimal choices.
Learn more about budget
brainly.com/question/15865418
#SPJ11
You're trying to save to buy a new $235,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 4.7 percent annual interest on its accounts.
Required:
How long will it be before you have enough to buy the car? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations, Round your answer to 2 decimal places (e.g., 32.16).)
Length of time _________years
Tt will take approximately 13.92 years to save enough to buy the Ferrari.The question is asking to find the time required to save enough money to buy a Ferrari. The given details are, The Ferrari price is $235,000 and the current savings is $40,000. The bank pays 4.7% interest per annum.
To find the time required to save enough to buy a Ferrari, we will use the following formula:
future value = present value x [tex](1+interest rate)^n[/tex] where,n = number of years
Here, we have to find the value of n.The amount needed to buy a Ferrari,
Future value = $235,000 - $40,000
= $195,000
The interest rate per annum, r = 4.7% or 0.047.
We have to substitute these values in the formula and solve for n.
$195,000 = $40,000[tex](1+0.047)^n[/tex]
Simplify and solve for n by dividing both sides by $40,000.4.875 =[tex]1.047^n[/tex]
Take the log of both sides to solve for n. log(4.875) = n log(1.047)
Divide both sides by log(1.047).n = log(4.875) / log(1.047)
After substituting the values in the formula and calculating, we get,
Length of time = 13.92 years (rounded to two decimal places).
Therefore, it will take approximately 13.92 years to save enough to buy the Ferrari.
To know more about Future value visit-
brainly.com/question/30787954
#SPJ11
Calculate Inventory Turnover ratio for the following years tell which company is performing well:
Particulars 2018 2019 2020 2021
Opening stock 10,000 15,000 8,000 15,000
Closing stock 8,000 18,000 12,000 10,000
Sales $200,000 $155,000 $170,000 $199,000
Purchases $400,000 $450,000 $300,000 $250,000
The company that performs well is the one with the highest inventory turnover ratio. By looking at the ratios calculated above, the company that performed well is the one in 2018 with an inventory turnover ratio of 22.22 times.
Inventory Turnover ratio is a measure of how frequently the company's inventory is sold and replaced. It indicates how successful the company is in turning its inventory into sales. A higher inventory turnover ratio is an indication that the company is selling its inventory more quickly, which is beneficial for the company. In contrast, a lower inventory turnover ratio indicates that the company's inventory is not selling quickly enough, which is harmful for the company. Inventory Turnover ratio for the following years can be calculated as follows:
Year 2018: Inventory Turnover ratio = Sales ÷ Average Inventory
= $200,000 ÷ [(10,000 + 8,000) ÷ 2]
= $200,000 ÷ 9,000
= 22.22 times
Year 2019: Inventory Turnover ratio = Sales ÷ Average Inventory
= $155,000 ÷ [(15,000 + 18,000) ÷ 2]
= $155,000 ÷ 16,500
= 9.39 times
Year 2020: Inventory Turnover ratio = Sales ÷ Average Inventory
= $170,000 ÷ [(8,000 + 12,000) ÷ 2]
= $170,000 ÷ 10,000
= 17 times
Year 2021: Inventory Turnover ratio = Sales ÷ Average Inventory
= $199,000 ÷ [(15,000 + 10,000) ÷ 2]
= $199,000 ÷ 12,500
= 15.92 times
To know more about the inventory, visit:
https://brainly.com/question/32373474
#SPJ11
Could I Industries just paid a dividend of $1.77 per share. The dividends are expected to grow at a rate of 17 percent for the next four years and then level off to a growth rate of 7 percent indefinitely. If the required return is 15 percent, what is the value of the stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Price
Given:Dividend = $1.77 per share.Dividend Growth Rate (g) = 17% (for the next 4 years), then 7% (indefinitely)Required Return (r) = 15%We have to calculate the value of the stock today using the dividend discount model:
P0 = D1 / (1+r)^1 + D2 / (1+r)^2 +...+ D∞ / (1+r)^∞Where:P0 = Value of stock todayD1 = Dividend at the end of the first yearD2 = Dividend at the end of the second yearD∞ = Dividend at the end of the infinite year
We know that the dividend growth rate is constant and it is 17% for the next 4 years and then 7% indefinitely.
Using the formula for constant growth rate:g = growth rate of dividend for the next n yearsD1 = Dividend at the end of the first yearr = required return
Therefore,D1 = D0 x (1 + g)D0 = Dividend just paid = $1.77g = 17%r = 15%D1 = $1.77 x (1+0.17) = $2.07
We have to calculate the value of the stock for the next 4 years using the formula:P4 = D4 / (r - g)D4 = D3 x (1 + g) = D2 x (1 + g)^2 = D1 x (1 + g)^3 = $2.07 x (1+0.17)^3 = $3.73P4 = $3.73 / (0.15 - 0.17) = $-37.25
Therefore, the value of the stock today is:P0 = $2.07 / (1 + 0.15)^1 + $2.33 / (1 + 0.15)^2 + $2.61 / (1 + 0.15)^3 + $3.73 / (1 + 0.15)^4 + $37.25 / (1 + 0.15)^4P0 = $29.94Hence, the value of the stock today is $29.94.
To know more about Dividend visit:
https://brainly.com/question/2960815
#SPJ11
Annika has one full year to go before she graduates and begins
interviewing. Which of the following steps should Annika take
toward her formal preparation for job hunting?
Annika can take several steps to prepare herself for job hunting, including developing a professional online presence, focusing on her grades, participating in extracurricular activities, attending career fairs, and volunteering or interning in an organization.
As Annika has one full year before graduation and before she starts hunting for a job, she can undertake certain steps to prepare herself for job interviews and make herself job-ready. Below are some of the steps she can take:1. Develop a professional online presence: Social media is one of the best ways to establish oneself professionally, and Annika can create a LinkedIn profile and start developing her professional network.2. Focus on her grades: As Annika is still in college, it is essential that she maintains good grades and proves herself academically.3. Get involved in extracurricular activities: Being involved in extracurricular activities would help Annika to gain additional experience that would be helpful during her job interviews.4. Attend career fairs and industry events: Attending job fairs and industry events would provide Annika with the opportunity to network with employers, gain insights into the industry, and learn about potential job openings.5. Volunteer or intern: Volunteering or interning in an organization would help Annika to gain hands-on experience, develop skills, and build her resume.For more questions on Social media
https://brainly.com/question/12453081
#SPJ8
E2 Limited manufactures one product that requires 3kg of raw material per unit. The budgeted data relating to the next period are as follows:
Budgeted sales units 24,000 units
Opening inventory of finished goods 8,000 units
Closing inventory of finished goods 10,000 units
Opening inventory of work-in-progress 5,000 units
Closing inventory of work-in-progress 4,000 units
Opening inventory of raw materials 20,000 kg
Closing inventory of raw materials 32,000 kg
What is the quantity of material that should be purchased for the next period?
The quantity of material that should be purchased for the next period is 39,000 kg.
To calculate the quantity of material that should be purchased, we need to consider the following:
1. Raw-material usage per unit: The product requires 3 kg of raw material per unit.
2. Budgeted sales units: The budgeted sales units for the next period are 24,000 units.
3. Opening and closing inventories: We have information about the opening and closing inventories of finished goods, work-in-progress, and raw materials.
First, let's calculate the total material required for production:
Total material required for production = (Budgeted sales units + Closing inventory of finished goods) - Opening inventory of finished goods
Total material required for production = (24,000 + 10,000) - 8,000
Total material required for production = 26,000 units
Next, let's calculate the material usage for work-in-progress:
Material usage for work-in-progress = (Opening inventory of work-in-progress - Closing inventory of work-in-progress)
Material usage for work-in-progress= 5,000 - 4,000
Material usage for work-in-progress = 1,000 units
Now, let's calculate the total material usage:
Total material usage = Total material required for production + Material usage for work-in-progress
Total material usage = 26,000 + 1,000
Total material usage = 27,000 units
Finally, let's calculate the quantity of material that should be purchased:
Quantity of material to be purchased = Total material usage - Opening inventory of raw materials + Closing inventory of raw materials
Quantity of material to be purchased = 27,000 - 20,000 + 32,000
Quantity of material to be purchased = 39,000 kg
The quantity of material that should be purchased for the next period is 39,000 kg.
To know more about purchased visit:
https://brainly.com/question/27975123
#SPJ11
Jamal wants to invest $7.683 for a down payment on a home. How much will he have in 6 years if he invests in an account with 5.1% APR, compounding quarterly?
Jamal will have approximately $10,355.80 in 6 years if he invests $7,683 in an account with 5.1% APR, compounding quarterly.
To calculate the amount Jamal will have in 6 years if he invests $7,683 in an account with 5.1% APR
compounding quarterly we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after time t
P = the principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years
Given:
P = $7,683
r = 5.1% = 0.051 (as a decimal)
n = 4 (quarterly compounding)
t = 6 years
Plugging the values into the formula:
A = 7,683(1 + 0.051/4)^(4*6)
Calculating the expression inside the parentheses first:
1 + 0.051/4 = 1.01275
Now, we can raise this value to the power of (4*6):
(1.01275)^(4*6) ≈ 1.347038
Finally, we multiply this value by the principal amount:
A ≈ 7,683 * 1.347038 ≈ $10,355.80
Therefore, Jamal will have approximately $10,355.80 in 6 years if he invests $7,683 in an account with 5.1% APR, compounding quarterly.
Learn more about compound interest:
https://brainly.com/question/3989769
#SPJ11
A marketing manager wants an attractive packing for brand of toothpaste. The research advisor is suggesting a research using an experimental research design, the marketing manager wonders whether a research is required for this, and if so, is an experimental research design suitable for this purpose.
Questions: (a) How would you advice the marketing manager?
Yes, research is necessary, and a combination of qualitative and quantitative methods would be more suitable than an experimental research design for studying toothpaste packaging attractiveness.
I would advise the marketing manager that conducting research is indeed necessary for developing an attractive packaging for their brand of toothpaste. Research can provide valuable insights into consumer preferences, help identify trends in the market, and guide the decision-making process.
By understanding what attracts consumers and influences their purchasing decisions, the marketing manager can optimize the packaging design to maximize its appeal.
Regarding the suitability of an experimental research design, it may not be the most appropriate approach for studying packaging attractiveness. Experimental research typically involves manipulating variables and measuring their impact on an outcome.
However, in the context of packaging design, it might be challenging to manipulate variables in a controlled environment. Additionally, conducting experiments might be costly and time-consuming.
Instead, the marketing manager could consider utilizing a mix of qualitative and quantitative research methods. Qualitative research, such as focus groups or interviews, can provide rich insights into consumer perceptions and preferences regarding toothpaste packaging. These methods can help identify key themes and generate ideas for packaging design.
Once the qualitative data is collected, quantitative research can be employed to validate and quantify the findings. Surveys or questionnaires can be administered to a larger sample size to gather data on consumer preferences, rank different design options, and measure the impact of specific packaging elements on attractiveness.
In summary, conducting research is essential for developing an attractive packaging design for the toothpaste brand. Instead of an experimental research design, a combination of qualitative and quantitative research methods would be more suitable for gaining insights into consumer preferences and guiding the packaging design process.
For more question on quantitative visit:
https://brainly.com/question/29787432
#SPJ8
Brief Exercise 9-7 (Algo) Retail inventory method; average cost [LO9-3] Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2021: Estimate ending inventory and cost of goods sold (average cost). (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%).
To estimate ending inventory and cost of goods sold using the retail inventory method, you need to calculate the cost-to-retail ratio.
First, calculate the cost-to-retail ratio by dividing the cost of goods available for sale by the retail value of goods available for sale.
Next, apply the cost-to-retail ratio to the retail value of ending inventory to estimate the cost of ending inventory.
Finally, subtract the estimated cost of ending inventory from the cost of goods available for sale to determine the estimated cost of goods sold.
Please provide the specific data for cost of goods available for sale, retail value of goods available for sale, and retail value of ending inventory, so I can help you with the calculation.
To learn more about inventory, refer below:
https://brainly.com/question/31146932
#SPJ11
Bob is a respiratory therapist in a small town in Michigan. The town has a small hospital and a small durable medical supply company. Bob is known in town as an entrepreneur ball of fire and has managed to become both head of the hospital respiratory therapy department and the owner of the small durable medical supply company. 1.In that most of the referrals from Bob's department for home care equipment are to Bob's home care business, does this represent a conflict of interest?
2.What should Bob do?
The situation described raises concerns about a potential conflict of interest for Bob, who serves as both the head of the hospital respiratory therapy department and the owner of a small durable medical company.
1. Conflict of Interest:
Referring patients from Bob's department to his own home care business can be seen as a conflict of interest. As the owner of the medical supply company, Bob may have a financial incentive to prioritize his business's interests over the patients' best interests.
This situation could compromise the objectivity and fairness of the referral process, potentially leading to biased decision-making and potential harm to patients.
2. Course of Action for Bob:
To address the conflict of interest, Bob should take the following steps:
a) Disclose the potential conflict: Bob should openly acknowledge his ownership of the medical supply company and the potential conflict of interest to the hospital administration, his colleagues, and the patients. Transparency is crucial in managing conflicts of interest.
b) Establish clear guidelines: Bob should work with the hospital administration to develop clear guidelines and protocols for patient referrals to ensure fair and unbiased decision-making. These guidelines should prioritize patient welfare and prevent any undue influence on referral decisions.
c) Recuse himself from decision-making: Bob should recuse himself from any involvement in the referral process from his department to his own business. This includes removing himself from discussions, evaluations, and decisions regarding home care equipment suppliers to ensure impartiality.
d) Seek independent opinions: When necessary, Bob should consult with other healthcare professionals or experts in the field to obtain independent opinions on the best options for patient care and equipment suppliers.
e) Monitor and review: Regular monitoring and review processes should be established to ensure compliance with ethical standards and identify and address any potential conflicts of interest that may arise in the future.
By following these actions, Bob can demonstrate ethical behavior, prioritize patient care, and maintain the trust of both the hospital and the community.
Learn more about decision-making here:
https://brainly.in/question/2506648
#SPJ11
Question 18 5 pts A factory sells its product at P10 per unit. The variable cost is P4 per unit and its fixed cost is P4,000. Determine the profit when sales are 800 units?
To determine the profit when sales are 800 units, we need to calculate the total revenue and total cost, and then subtract the total cost from the total revenue.
Given:
Selling price per unit (P) = P10
Variable cost per unit (V) = P4
Fixed cost (F) = P4,000
Number of units sold (Q) = 800
Total revenue (TR) can be calculated as:
TR = Selling price per unit x Number of units sold
TR = P x Q
TR = P10 x 800
TR = P8,000
Total cost (TC) consists of both variable costs (VC) and fixed costs (FC):
TC = VC + FC
Variable cost (VC) can be calculated as:
VC = Variable cost per unit x Number of units sold
VC = V x Q
VC = P4 x 800
VC = P3,200
Total cost (TC) can be calculated as:
TC = VC + FC
TC = P3,200 + P4,000
TC = P7,200
Profit (P) can be calculated as:
P = Total revenue - Total cost
P = TR - TC
P = P8,000 - P7,200
P = P800
Therefore, the profit when sales are 800 units is P800.
Learn more about profit
brainly.com/question/32381738
#SPJ11
Find Nike’s cost of equity
Risk free rate is 10 yr treasury
Market risk premium is 5.6% on statista
CAPM: 1.11
Plug these into the CAPM formula
Nike's cost of equity, based on the given assumptions, is approximately 8.216%.
To find Nike's cost of equity using the CAPM (Capital Asset Pricing Model), we can follow these steps:
1. Identify the risk-free rate: The risk-free rate is the rate of return on a risk-free investment, typically measured by the yield on government bonds. In this case, the risk-free rate is given as the 10-year Treasury rate, but it's not provided in the question. Let's assume it's 2%.
2. Determine the market risk premium: The market risk premium is the additional return that investors expect to earn by investing in the overall market compared to a risk-free investment. According to Statista, the market risk premium is 5.6%.
3. Calculate the cost of equity using the CAPM formula: The CAPM formula is as follows:
Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium
In the given question, the CAPM is mentioned as 1.11. However, the CAPM value is typically represented as the beta (β) coefficient, which measures the stock's sensitivity to market movements. Let's assume the beta coefficient is 1.11.
Now, we can substitute the values into the formula:
Cost of Equity = 2% + 1.11 * 5.6%
Simplifying the calculation:
Cost of Equity = 2% + 6.216
Adding the percentages:
Cost of Equity = 8.216%
Therefore, Nike's cost of equity, based on the given assumptions, is approximately 8.216%.
Know more about cost of equity:
https://brainly.com/question/14041475
#SPJ11
As a portfolio manager, your objective is to minimize risk: min1 112+22 2[ ] while maintaining a particular level of expected return: 11 + 22 = 0 where 0 ≤ ≤ 1 for = 1, 2 You do this by optimally choosing the portfolio weights on the two assets, 1 and 2. This is a two asset portfolio (i.e., the portfolio weights sum to one) where the returns of the two assets are denoted by 1 and 2, respectively. The expected returns of this portfolio is 0. The parameters 12 and 2 are the variances of asset 1 and asset 2, respectively. Using the Lagrange Multiplier method, find the excess risk in your portfolio for a 1 % increase in portfolio expected return if the parameters take the following values: • 12 =36 and 2 =4. • 1 = 8% • 2 = 2% • 0 = 6%
The excess risk in the portfolio for a 1% increase in portfolio expected return can be found using the Lagrange Multiplier method. Given the parameters: σ₁² = 36, σ₂² = 4, μ₁ = 8%, μ₂ = 2%, and μ₀ = 6%, the excess risk can be calculated.
To find the excess risk, we can use the Lagrange Multiplier method. The Lagrangian function is defined as L = μ₀ - λ(μ₁ - μ₀) - λ(μ₂ - μ₀) + λ₁(σ₁² - σ²) + λ₂(σ₂² - σ²), where λ, λ₁, and λ₂ are Lagrange multipliers. Taking the partial derivatives of L with respect to σ², λ, λ₁, and λ₂ and equating them to zero, we can solve for the values of λ, λ₁, and λ₂. Then, substituting these values back into the Lagrangian function, we can find the excess risk by differentiating L with respect to μ₀ and multiplying it by -1. This will give us the excess risk in the portfolio for a 1% increase in portfolio expected return.
Know more about Lagrange Multiplier method here:
https://brainly.com/question/32251301
#SPJ11
