Mellon Inc., has equity with a market value of €50 million and debt with a market value of €10 million. Mellon has bond with a YTD of 4 percent per year, and the expected return on the market portfolio is 10 percent. Mellon has a Beta of 1, and the tax rate is 25%, the company has a huge tax loss carry forward.
a) What is the Debt/asset ratio? What is the Debt-to-Equity ratio?
b) What is the firm's weighted average cost of capital?
a) The Debt/Asset ratio for Mellon Inc. is 0.1667, and the Debt-to-Equity ratio is 0.2. b)The firm's weighted average cost of capital (WACC) is approximately 8.833%.
a) To calculate the Debt/Asset ratio, divide the market value of debt by the market value of total assets: €10 million / (€10 million + €50 million) = 0.1667 (rounded to four decimal places).
To calculate the Debt-to-Equity ratio, divide the market value of debt by the market value of equity: €10 million / €50 million = 0.2.
b) The firm's weighted average cost of capital (WACC) is X%.
The WACC is calculated by weighting the cost of equity and the cost of debt by their respective proportions in the capital structure.
First, we calculate the cost of equity using the Capital Asset Pricing Model (CAPM):
Cost of Equity = Risk-Free Rate + Beta * Equity Risk Premium
Given that the expected return on the market portfolio is 10% and the risk-free rate is not provided, let's assume it to be 3%. If Mellon has a Beta of 1, the equity risk premium would be 10% - 3% = 7%.
Cost of Equity = 3% + 1 * 7% = 10%.
Next, we calculate the after-tax cost of debt by adjusting the yield to maturity (YTM) for taxes:
After-Tax Cost of Debt = YTM * (1 - Tax Rate)
Given that the YTM is 4% and the tax rate is 25%:
After-Tax Cost of Debt = 4% * (1 - 0.25) = 3%.
Now, we calculate the WACC using the weights of equity and debt in the capital structure:
WACC = (Equity Proportion * Cost of Equity) + (Debt Proportion * After-Tax Cost of Debt)
Since the debt and equity market values are provided, we can determine their proportions:
Equity Proportion = €50 million / (€10 million + €50 million) = 0.8333
Debt Proportion = €10 million / (€10 million + €50 million) = 0.1667
WACC = (0.8333 * 10%) + (0.1667 * 3%) = 8.333% + 0.5% = 8.833%.
Therefore, the firm's weighted average cost of capital (WACC) is approximately 8.833%.
To know more about Debt/Asset ratio visit:
https://brainly.com/question/5905586
#SPJ11
Your retail consultant is advising you on the best chips to keep near the checkout area. They claim that at the checkout area, for a store your size, Doritos outsell Cheetos by 40 bags a day or more. You wish to provide evidence to support this claim, using (Doritos minus Cheetos) for your hypothesis test. You take a random sample of 60 days with Doritos by the counter, finding average daily sales of 350 bags with a standard deviation of 120 bags. You take a random sample of 80 days with Cheetos by the counter, finding average daily sales of 280 bags with a standard deviation of 100 bags. At the 5% significance level, what is the upper bound of the correct confidence interval used in your hypothesis test? Please round to 2 decimal places. At the 5% significance level, can you provide evidence to support the consultant's claim? Please answer Yes or No. Yes means you can reject the null and support the consultant's claim. No means you do not have enough data to reject the null and thus cannot support the consultant's claim.
To calculate the upper bound of the correct confidence interval, we need to perform a two-sample t-test for the difference in means between Doritos and Cheetos. After calculation, the upper bound of the correct confidence interval is 107.44.
A two-sample t-test is a statistical test used to compare the means of two independent groups or samples to determine if there is a significant difference between them. It is commonly used when comparing the means of two treatment groups, two populations, or two variables.
The null hypothesis (H0) in a two-sample t-test states that there is no significant difference between the means of the two groups, while the alternative hypothesis (Ha) states that there is a significant difference.
Learn more about two-sample t-test here:
https://brainly.com/question/30778037
#SPJ4
Performance management is the process through which managers ensure that employees activities and outputs contribute to the
organization's goals.
Performance management is the process through which managers ensure that employees activities and outputs contribute to the
organization's goals. true / false
True. Performance management is the process by which managers ensure that employees' activities and outputs align with the organization's goals.
Performance management is a crucial function of managers in any organization. Its purpose is to align employee activities, behaviors, and outcomes with the goals and objectives of the organization. Through performance management, managers establish expectations, provide feedback, and evaluate employee performance to ensure that it contributes to the overall success of the organization.
Managers use various tools and techniques in the performance management process, such as goal setting, performance appraisals, coaching and feedback, performance improvement plans, and rewards and recognition systems. These activities aim to monitor and improve individual and team performance, identify areas for development, and align employee efforts with organizational goals.
By implementing performance management practices, managers can clarify expectations, improve communication, motivate employees, identify high performers and areas for improvement, and ultimately drive organizational success. Therefore, it is true that performance management is the process through which managers ensure that employees' activities and outputs contribute to the organization's goals.
Learn more about organization's goals here:
https://brainly.com/question/32408783
#SPJ11
Use the following for questions 7 - 9
Jessie and her friend Patrick are working together in their Art class at school to make.
blankets to sell on the weekend. Their most popular blankets are their classic blue blanket
and their royal red blanket. To make their classic blue blanket, it takes them 30 minutes fo
get the supplies ready for the blanket, 1 hour to make the blanket, and 30 minutes to finish
and box up the blanket. For the royal red blanket, it takes them 45 minutes to get the.
supplies ready, 30 minutes to make the blanket, and 1 hour to make the finishing touches
and box up.
Jessie and Patrick se 40 hours aside each week for getting their supplies ready to make.
the blankets. They have an additional 40 hours that they allocate each week for making
their blankets. Lastly, they dedicate 60 hours a week to finishing touches and boxing up
their blankets. Jessie and Patrick sell their classic blue blanket for a $15 profit and their
royal red blanket for a $20 profit. How many of each type of blanket should Jessie and
Patrick make to maximize their profit?
Question 7 What is the objective? O Maximize profit O Minimize profit O Maximize the number of blankets produced O Create the same number of classic blue and royal red blankets Question 8 What are the decision variables? O The number of hours spent getting the supplies ready, making the blankets and finishing up O The total number of blankets produced O The number of classic blue and royal red blankets made by Jessie and Patrick O The number of classic blue and royal red blankets produced (who produced them does not matter) Question 9
Blankets produced (who produced them does not matter) Which is a valid constraint? O Jessie and Patrick must produce the same number of blankets O The number of classic blue blankets must be equal to the number of royal red blankets produced O The number of hours spent making blankets must be less than or equal to 40 hours O The number of royal red blankets produced must be at least twice the number of class blue blankets produced
The objective is to maximize profit. The correct answer is option 1. (question 7)
Question 8 The decision variables are the number of classic blue and royal red blankets made by Jessie and Patrick. The correct option is 3. Question 9 A valid constraint is that the number of royal red blankets produced must be at least twice the number of classic blue blankets produced. The correct option is 4.
Jessie and Patrick have limited time to make the blankets, so they need to maximize their profits by using their time efficiently. They need to make decisions about how many classic blue blankets and royal red blankets to produce to maximize their profits. Question 7 The objective is to maximize profit. Jessie and Patrick are making these blankets to sell, so the objective is to earn as much profit as possible from the blankets they produce. They must make the decision to produce the right combination of blue and red blankets to maximize profits. Question 8The decision variables are the number of classic blue and royal red blankets made by Jessie and Patrick.
The total number of blankets produced is not a decision variable, but rather a result of the decision made about how many of each type of blanket to produce. The number of hours spent getting the supplies ready, making the blankets, and finishing up is also not a decision variable, as these values are already set by the problem. Question 9A valid constraint is that the number of royal red blankets produced must be at least twice the number of classic blue blankets produced. This constraint helps to limit the number of combinations of blue and red blankets that can be produced. Since the red blankets earn more profit than the blue blankets, the optimal combination will likely involve more red blankets than blue blankets. Therefore, setting a minimum number of red blankets helps to ensure that they will not produce too many blue blankets and not earn as much profit as they could.
Jessie and Patrick should produce more royal red blankets than classic blue blankets to maximize their profits. They can produce up to 12 royal red blankets and 8 classic blue blankets within the time limits set by their schedule. By following this plan, they can earn a maximum profit of $300.
To know more about Profit visit:
brainly.com/question/31117493
#SPJ11
Firms in the monopolistically competitive furniture industry face excess capacity, which means that firms produce____furniture than the output at which____cost is minimized
O a. less, marginal
O b. more, average total
O c. less, average total
O d. more, marginal
The answer is option B, more, average total. Monopolistically competitive firms in the furniture industry face excess capacity. As a result, firms produce more furniture than the output at which average total cost is minimized.Excess capacity occurs when a company produces less than the optimal level of output, resulting in unused capacity.
In such cases, the company has a surplus of production resources but is not producing the best amount of output at the lowest cost. If a firm is producing at a higher level than the level of output at which average total cost is minimized, it is inefficient and wasting resources, resulting in a higher cost of production. As Kevin Stabler is the lead engagement partner on the Wolf engagement, he is responsible for managing the audit for the company.
Therefore, it is natural that he is present at the Wolf stockholder meeting on November 11, 20x3, where he answered questions from the audience about the audit.The engagement partner is the person who is responsible for the overall performance of an audit. The engagement partner is responsible for selecting the audit team, reviewing the audit work, and making sure the audit is conducted in compliance with auditing standards.As Kevin Stabler is the lead engagement partner on the Wolf engagement, it means that he has been chosen by the audit firm to lead the audit of the Wolf company. Thus, his presence at the Wolf stockholder meeting is crucial, as he is in charge of the overall quality of the audit.The stockholder meeting is a gathering of the shareholders of a company to discuss the company's financial performance and other related issues. In this meeting, the engagement partner is expected to answer questions about the audit process, the quality of the audit, and the findings of the audit report.
Toi know more about Monopolistically visit:
https://brainly.com/question/28940085
#SPJ11
Xavier Davis is preparing the statement of cash flows using the indirect method for the National Urban League. The beginning balance in pledges receivable is $20,000 and the ending balance is $12,000. Which of the following describes the way these amounts would be presented in the statement of cash flows?
a. Increase in operating cash flows of $8,000
b. Increase in financing cash flows of $8,000
c. Increase in investing cash flows of $8,000
d. Decrease in operating cash flows of $8,000
e. Decrease in investing cash flows of $8,000
f. Decrease in financing cash flows for $8,000
The way these amounts would be presented in the statement of cash flows will be; Increase in operating cash flows of $8,000. Option A is correct.
The change in the balance of pledges receivable from $20,000 (beginning balance) to $12,000 (ending balance) indicates a decrease in pledges receivable.
In the statement of cash flows using the indirect method, changes in operating activities are presented under the operating cash flows section, while changes in investing and financing activities are presented under the investing and financing cash flows sections, respectively.
Since pledges receivable is an asset account, a decrease in the balance indicates that cash was received from the collection of pledges. Therefore, it would be presented as an increase in operating cash flows because the collection of pledges is a source of operating cash for the National Urban League.
This means that $8,000 of cash was received from the collection of pledges, resulting in an increase in operating cash flows.
Hence, A. is the correct option.
To know more about cash flows here
https://brainly.com/question/27994727
#SPJ4
Moon Co decides to establish a petty cash fund with a beginning balance of $360. At the end of the first month the accumulated receipts represent $80 for delivery expenses. $200 for merchandise inventory, and $55 for miscellaneous expenses. The fund has a balance of $20. The Journal entry to reimburse the fund will include a. Debit to Cash Short and Over for $5 b. Credit t to Cash Short and Over for $25 c. Credit to Petty Cash for $340 d. Debit to Cash for $335.
Petty Cash Fund: Petty cash fund is a sum of money put aside for minor expenses that a company incurs, such as office supplies and postage fees. The balance in the petty cash fund is kept small, often $100 to $200, to minimize the likelihood of abuse or theft.
The fund is replenished by either returning the exact amount of the petty cash used in exchange for receipts or by issuing a check to the petty cash fund, which is then distributed in exchange for receipts. The fund's balance is always updated, with receipts totaling the balance of the fund.
Reimbursement of petty cash fund: The process of restoring a petty cash fund to its original balance after it has been used to make small purchases is referred to as reimbursement.
For reimbursement of petty cash fund, the journal entry includes a debit to the accounts that were initially debited when the petty cash fund was first created, as well as a credit to the petty cash account.
This journal entry compensates for the money that has been withdrawn from the petty cash account and ensures that its balance is restored.
The journal entry to reimburse the fund will include:
Debit to Delivery Expenses - $80
Debit to Merchandise Inventory - $200
Debit to Miscellaneous Expenses - $55
Debit to Cash Short and Over - $5
Credit to Petty Cash - $340
Here, Debit to Delivery Expenses, Merchandise Inventory and Miscellaneous Expenses are debited because these are the accounts that were initially debited when the petty cash fund was first created. Cash Short and Over is debited for $5 because the fund has a balance of $20, and the total of accumulated receipts is $335, indicating a shortfall of $5.
To bring the balance of the fund back up to $360, the Cash Short and Over account must be debited for $5.Petty Cash is credited for $340 because it's the amount of money that is paid to replenish the fund.
The $80 delivery expense, $200 merchandise inventory, and $55 miscellaneous expense add up to $335, which is the total amount of money that was taken out of the fund. As a result, a $340 credit is required to compensate for the money that was taken out of the fund.
Learn more about cash fund here :
https://brainly.com/question/15345926
#SPJ11
Moonlight Bank Ghana is currently facing keen competition. As the lead marketing consultant,
you have been tasked to develop a new product for a particular target market. From a marketing
perspective, new product development refers to the complete process of bringing a new product
to the market. Discuss the steps you will consider in developing the new product for it to be
successful in this competitive Ghanaian banking industry. You also believe that a good brand
creates structure in the minds of your consumers; hence discuss extensively how branding can
be used to create strong, unique and favourable associations in the minds of your customers,
five importance each of branding to your customers and your institution. In addition, with
relevant examples discuss how the use of brand names, slogans, product strategies, pricing
strategies, promotional strategies and celebrity endorsement each can contribute to building
and enhancing brand equity within the financial service industry
These steps include conducting market research, identifying customer needs, evaluating and selecting the best ideas, developing a product prototype, launching and marketing the new product effectively.
Branding plays a crucial role in creating strong, unique, and favorable associations in the minds of customers. Five important aspects of branding for customers and the institution are: building customer loyalty, differentiating from competitors, enhancing credibility and trust, creating emotional connections, and increasing brand recognition and recall.
Using brand names, slogans, product strategies, pricing strategies, promotional strategies, and celebrity endorsement can contribute to building and enhancing brand equity in the financial service industry. For example, a well-chosen brand name and slogan can effectively communicate the brand's value proposition and create a memorable impression. Product strategies can focus on offering innovative features or tailored solutions to meet specific customer needs. Pricing strategies can position the brand as premium or value-oriented, influencing customers' perceptions of quality. Promotional strategies help create awareness and engage customers through various channels, while celebrity endorsement can leverage the influence and credibility of well-known personalities to strengthen the brand's image.
By carefully considering these branding elements and strategies, a financial service institution can build and enhance brand equity, leading to a strong market presence and competitive advantage.
Learn more about branding, below:
https://brainly.com/question/31752787
#SPJ11
Question 1 (30%) You are asked to read the case "Hau Lee, David W. Hoyt, Samir Singh (2007). Rio Tinto Iron Ore: Challenges of Globalization in the Mining Industry (pp. 1- 26). Harvard Business Publishing." as well as extra academic material and answer the following questions: How basic industries active in commoditized products such as iron ore design their global supply chains. Provide at least two relevant examples. (15%) Are there any new supply network capabilities that may be used to sustain a competitive position in the commodities (e.g. iron, copper, other metals) market? Provide at least two relevant examples. (15%)
Rio Tinto Iron Ore: Challenges of Globalization in the Mining Industry." My responses are generated based on a mixture of licensed data, data created by human trainers, and publicly available data.
I can provide general information on the topic of basic industries and global supply chains in the mining industry, as well as examples of new supply network capabilities. However, I won't be able to refer to specific details from the mentioned case study.
Basic industries involved in commoditized products like iron ore often design their global supply chains to optimize efficiency, cost-effectiveness, and reliability. Here are two general approaches they may adopt:
1. Vertical Integration: Some companies opt for vertical integration by owning and controlling various stages of the supply chain. This can include owning mines, transportation infrastructure, ports, and steel mills. By integrating the different stages, companies can have greater control over the production, transportation, and distribution of their products, enabling them to achieve economies of scale and reduce costs.
2. Strategic Partnerships and Contracts: Companies may engage in strategic partnerships and long-term contracts with suppliers, transportation providers, and customers. These partnerships help ensure a stable supply of raw materials, efficient logistics, and guaranteed markets. By forming alliances, companies can share risks, reduce uncertainties, and achieve cost savings through collaborative efforts.
Regarding new supply network capabilities that can sustain a competitive position in the commodities market, here are two examples:
1. Advanced Analytics and Data Integration: Mining companies can leverage advanced analytics and data integration techniques to optimize their supply chain operations. By collecting and analyzing data from various sources, including mines, logistics, and market demand, companies can gain insights into optimizing production levels, inventory management, and transportation logistics. This can lead to improved efficiency, reduced costs, and enhanced responsiveness to market changes.
2. Digital Technologies and Automation: The use of digital technologies such as Internet of Things (IoT), artificial intelligence (AI), and automation can transform supply chain capabilities. For example, IoT sensors can be deployed to monitor equipment performance, track inventory levels, and enable predictive maintenance. AI algorithms can optimize production planning and scheduling, while automation can streamline material handling and logistics processes. These technologies enhance productivity, reduce downtime, improve safety, and increase overall supply chain efficiency.
Please note that the specific strategies and capabilities employed by companies in the iron ore and mining industry can vary based on their unique circumstances, market conditions, and business objectives.
Know more about transportation infrastructure here
https://brainly.com/question/16360666#
#SPJ11
1) Neither total assets nor net income are affected when:
a) a company adjusts prepaid rent for rent expense at the end of the period
b) a company pays its employs bi-weekly
c) a company pays an amount owned to one of its vendors/suppliers
d) a company collects an amount owed by one of its customers
2) A chart of accounts:
a) is used to prepare the financial statements
b) reports the balance in all accounts
c) shows that debit equals credits
d) lists all of the account names and account numbers
1. When a company pays its employees bi-weekly, neither total assets nor net income is affected. (option.b)
2. A chart of accounts lists all of the account names and account numbers. (option.d)
1. Bi-weekly paychecks refer to paying employees every two weeks. Employees will receive 26 paychecks each year under a bi-weekly payment schedule. There is no impact on total assets or net income when a company pays its employees bi-weekly.
A company adjusts prepaid rent for rent expense at the end of the period. This transaction decreases the asset account prepaid rent and increases the expense account rent expense, resulting in a net decrease in total assets and net income.
A company pays an amount owned to one of its vendors/suppliers. This transaction decreases the asset account cash and decreases the liability account accounts payable, resulting in no impact on total assets and net income. A company collects an amount owed by one of its customers. This transaction increases the asset account cash and decreases the asset account accounts receivable, resulting in no impact on total assets and net income.
2. A chart of accounts is a list of all the accounts used by a company and their account numbers. It is used to record transactions and classify them into the correct accounts. The chart of accounts serves as a roadmap for preparing financial statements and reports, making it easier to access financial information.
The chart of accounts is a list of all accounts used by a company, with each account identified by an account number and an account name. The chart of accounts is used to record transactions and classify them into the correct accounts.
To know more about net income refer here: https://brainly.com/question/32614743#
#SPJ11
Using the free cash flow valuation model to price an IPO Personal Finance Problem Assume that you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for $6.81 per share. Although you are very much interested in owning the company, you are concerned about whether it is fairly priced. To determine the value of the shares, you have decided to apply the free cash flow valuation model to the firm's financial data that you've accumulated from a variety of data sources. The key values you have compiled are summarized in the following table, a. Use the free cash flow valuation model to estimate CoolTech's common stock value per share. b. Judging by your finding in part a and the stock's offering price, should you buy the stock? c. On further analysis, you find that the growth rate in FCF beyond 2023 will be 5% rather than 4%. What effect would this finding have on your responses in parts a and b? C*** a. The value of CoolTech's entire company is $ (Round to the nearest dollar.) X Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Free cash flow Year (t) FCF Other data 2020 $720,000 Growth rate of FCF, beyond 2023 to infinity = 4% 2021 $800,000 Weighted average cost of capital = 15% 2022 $920,000 Market value of all debt = $1,600,000 2023 $1,030,000 Market value of preferred stock = $640,000 Number of shares of common stock to be issued = 1,100,000
The value of CoolTech's entire company is $14,510,297.
Using the free cash flow valuation model to estimate CoolTech's common stock value per share.
To calculate the value of the common stock of the company, the free cash flow valuation model is used which is based on the company's FCF (Free Cash Flow).
Firm's Value = FCF / (WACC – g)
Where,
FCF = Free cash flow for the period
WACC = Weighted average cost of capital
g = Growth rate of the FCF beyond the period
The value of the company can be calculated by using the formula given below,
Firm's Value = FCF1 / (WACC – g) + FCF2 / (WACC – g)2 + FCF3 / (WACC – g)3 + FCF4 / (WACC – g)4 + Terminal Value / (WACC – g)4
Using the above formula, we can calculate the value of the firm as,
Firm's Value = ($720,000/1.15) + ($800,000/1.3225) + ($920,000/1.5291) + ($1,030,000/1.7568) + [($1,030,000 * (1 + 0.04))/(0.1576 - 0.04)]
=$626,085.50 + $605,398.67 + $602,116.16 + $586,885.15 + $12,089,811.67
= $14,510,297.15
The value of CoolTech's entire company is $14,510,297.
b. Judging by your finding in part a and the stock's offering price, should you buy the stock?
The offering price of the stock is $6.81 per share. The number of shares of common stock issued is 1,100,000. So, the total equity raised from issuing shares is $7,491,000. Therefore, the value of the common stock of the company is $14,510,297 / 1,100,000 = $13.19 per share.
The intrinsic value of the common stock of the company is $13.19, which is less than the offering price of $6.81 per share. Therefore, the stock of the company should not be purchased.
c. On further analysis, you find that the growth rate in FCF beyond 2023 will be 5% rather than 4%. What effect would this finding have on your responses in parts a and b?
If the growth rate in FCF beyond 2023 is 5% instead of 4%, then the value of the firm's common stock per share will increase as the growth rate of the company is higher, which means that it is a better investment. Therefore, the value of the common stock of the company can be calculated as,
Firm's Value = ($720,000/1.15) + ($800,000/1.3225) + ($920,000/1.5291) + ($1,030,000/1.7568) + [($1,030,000 * (1 + 0.05))/(0.1576 - 0.05)]
=$626,085.50 + $605,398.67 + $602,116.16 + $586,885.15 + $12,632,911.67
= $15,053,397.15
Therefore, the intrinsic value of the common stock of the company is $15.05 per share. The stock of the company should be purchased as its intrinsic value is greater than the offering price of $6.81 per share.
To know more about Free Cash Flow visit:
https://brainly.com/question/28591750
#SPJ11
The expected payoff under risk is $12.7 and the expected value
of perfect information is $3.5. What is the expected payoff under
certainty?
Multiple Choice
$3.5
$9.2
$16.2
Cannot be determined
The expected payoff under certainty is $9.2. To calculate the expected payoff under certainty, we need to subtract the expected value of perfect information from the expected payoff under risk.
Expected Payoff under Certainty refers to the expected value or outcome when there is no uncertainty or risk involved. It represents the payoff that an individual would receive with complete certainty.
Expected payoff is a concept commonly used in decision theory and probability theory to assess the potential outcome of a particular action or event. It represents the average value or expected return that an individual can anticipate from a decision or a gamble, taking into account the probabilities of different outcomes and their associated values.
Expected Payoff = (Probability of Outcome 1 * Value of Outcome 1) + (Probability of Outcome 2 * Value of Outcome 2) + ... + (Probability of Outcome n * Value of Outcome n)
In this case, the expected payoff under certainty is $9.2. This value is obtained by subtracting the expected value of perfect information ($3.5) from the expected payoff under risk ($12.7).
Expected Payoff under Certainty = Expected Payoff under Risk - Expected Value of Perfect Information
Expected Payoff under Certainty = $12.7 - $3.5 = $9.2
The expected payoff under certainty is $9.2. This means that if we were certain about the outcome, without any risk or uncertainty, we would expect to receive $9.2.
To know more about payoff, visit;
https://brainly.com/question/14104381
#SPJ11
Suppose you invested $125,000 three years ago. During the first year, you made 11.4%. During the second year you lost 3.41%. During the most recent year, you made 5.24%. How much money do you have?
Based on the given information, if you initially invested $125,000 three years ago and experienced different rates of return for each year, we can calculate the final amount of money you have.
1. For the first year, you made a return of 11.4%. Therefore, the amount after the first year is: $125,000 + (11.4% * $125,000).
2. For the second year, you experienced a loss of 3.41%. Therefore, the amount after the second year is: (previous year's amount) - (3.41% * previous year's amount).
3. For the most recent year, you made a return of 5.24%. Therefore, the final amount of money you have is: (previous year's amount) + (5.24% * previous year's amount).
By performing these calculations iteratively, we can determine the final amount of money you have after three years.
learn more about "invested":- https://brainly.com/question/29547577
#SPJ11
Fintech What is Fintech? Give an example of a digital platform and discuss its prospects for taking business from the traditional suppliers of financial services in NZ. What are the main arguments for and against RBNZ issuing a Central Bank Digital Currency?
Fintech is an umbrella term that refers to the intersection between finance and technology. It's a catch-all term that refers to the development of cutting-edge technology that is used to enhance the performance of financial services. Fintech firms focus on creating technology that provides consumers with a seamless, secure, and user-friendly way to access financial services. What is a Digital Platform? A digital platform refers to any website, mobile application, or service that is operated and provided by a company over the internet.
Digital platforms provide a means for customers to engage with a business or its products or services digitally. Discuss the Prospects for Taking Business from Traditional Suppliers of Financial Services in NZF in tech companies are making a significant impact in the financial services industry, and they're changing the way that people access and use financial services. Fintech is a rapidly growing industry that is taking business from traditional suppliers of financial services in NZ. One example of a digital platform that is taking business from traditional suppliers of financial services in NZ is the peer-to-peer (P2P) lending platform, Harmoney.P2P lending is a form of debt financing that enables individuals to borrow money from other individuals. The P2P lending model has been successful in New Zealand, and Har money is a leading provider of P2P lending services. Har money is a digital platform that connects borrowers with investors and provides them with access to affordable financing. Main Arguments for and against RBNZ Issuing a Central Bank Digital Currency The RBNZ has been considering issuing a Central Bank Digital Currency (CBDC). There are several arguments for and against the RBNZ issuing a CBDC. Arguments for Issuing a CBDC include :Enhanced Payment System Efficiency - CBDC would improve payment system efficiency by reducing the cost of payments and making them more secure. Enhanced Financial Inclusion - CBDC would improve financial inclusion by providing access to banking services to those who are unbanked or underbanked. Security and Privacy - CBDC would provide more security and privacy for users, as it would be built on blockchain technology.
To know more about Fintech visit:
https://brainly.com/question/32571225
#SPJ11
Please answer the following questions: (1) What are "SMA", "EMA"
and "MACD" ? (2) How do you use Moving Average Convergence
Divergence (MACD) to create a forex trading strategy? Explain
SMA, EMA, and MACD are commonly used technical analysis indicators in trading and investing:
SMA (Simple Moving Average): It calculates the average price of an asset over a specified period by summing up the prices and dividing by the number of periods. SMA is often used to identify trends and support/resistance levels.
EMA (Exponential Moving Average): Similar to SMA, EMA calculates the average price of an asset. However, it gives more weight to recent prices, making it more responsive to price changes. EMA is useful for identifying short-term trends and generating trading signals.
MACD (Moving Average Convergence Divergence): MACD is a trend-following momentum indicator that consists of two lines: the MACD line (the difference between two EMAs) and the signal line (a smoothed EMA of the MACD line). It is used to identify potential trend reversals, generate buy/sell signals, and measure the strength of a trend.
Moving Average Convergence Divergence (MACD) can be used to create a forex trading strategy in the following way:
Signal Line Crossovers: When the MACD line crosses above the signal line, it generates a bullish signal, indicating a potential buying opportunity. Conversely, when the MACD line crosses below the signal line, it generates a bearish signal, indicating a potential selling opportunity.
Zero Line Crossovers: When the MACD line crosses above the zero line, it suggests a shift from a bearish to a bullish trend, signaling a potential buying opportunity. Conversely, when the MACD line crosses below the zero line, it suggests a shift from a bullish to a bearish trend, signaling a potential selling opportunity.
Divergence: MACD divergence occurs when the MACD line diverges from the price movement. Bullish divergence is observed when the price makes lower lows while the MACD makes higher lows, indicating a potential bullish reversal. Bearish divergence is observed when the price makes higher highs while the MACD makes lower highs, indicating a potential bearish reversal.
By incorporating these MACD signals into a forex trading strategy, traders can make informed decisions on when to enter or exit trades, based on the indications of trend reversals and momentum shifts provided by the indicator. It is important to combine MACD with other technical indicators and consider market conditions for a comprehensive trading strategy.
Learn more about Convergence Divergence, brainly.com/question/32559883
#SPJ11
Conflicts are often inevitable in the business world. Explain three of the five different conflict management styles and their potential implications for actually resolving conflict situations.
Conflict is an unavoidable reality of the business world. No matter how organized and cooperative a team is, some issues will arise. Resolving conflict involves skill, strategy, and preparation. Five types of conflict management styles that are commonly used to resolve conflicts include Compromising.
Competing, Collaborating, Avoiding, and Accommodating. In this question, we will be discussing three conflict management styles and their potential implications in the conflict resolution process.1. Competing styleCompeting is a conflict management style that involves the use of power to satisfy individual interests. Individuals use this style to compete with others in order to meet their own goals. It is a confrontational approach that can be aggressive. Competing style has a potential implication of quick resolution. However, the relationship with the other party is jeopardized.2. Collaborating styleCollaborating is a conflict management style that involves teamwork and working together to meet the interests of all parties.
It is a win-win approach that requires active listening and understanding. The potential implication of this style is that it leads to a constructive solution that can build a stronger relationship between the parties involved. However, it requires a lot of time, effort, and patience.3. Compromising styleCompromising is a conflict management style that involves both parties agreeing to give up something in order to reach a mutual agreement. This style is used to resolve conflicts that cannot be resolved through other styles. The potential implication of this style is that it results in a quick resolution. However, the solution is temporary and may lead to future conflicts. is a necessary evil in the business world. It is important to understand that there are different conflict management styles that can be used to resolve conflicts. Competing, Collaborating, and Compromising are some of the styles that are commonly used. The choice of a conflict management style depends on the nature of the conflict and the goals of the parties involved.
To know more about Compromising visit :
https://brainly.com/question/20842488
#SPJ11
The Central Division of the Nebraska Company has a rate of return on investment of 28% and a profit margin of 14%. What is the investment turnover?
a. 0.5
b. 0.2
c. 5.0
d. 2.0
The correct answer is: b. 0.2, Investment turnover is a ratio that determines how many times a company's assets are sold and replaced within a given time period.
Profit Margin: Net Income/Revenue = 14%Rate of Return: Net Income/Total Assets = 28%The investment turnover formula is net sales divided by total assets. The investment turnover is calculated by dividing net sales by total assets. Investment Turnover = Net Sales/Total Assets Total Assets can be calculated from the rate of return as: Total Assets = Net Income/Rate of Return This equation can be rearranged to solve for Net Sales: Net Sales = Total Assets * Investment Turnover Since we want to determine the Investment Turnover,
Investment Turnover = Net Sales / Total Assets Substitute the known values in the formula: Investment Turnover = Net Sales / Total Assets Investment Turnover = (Net Income/Profit Margin) / (Net Income/Rate of Return)Investment Turnover = (Rate of Return / Profit Margin)Profit Margin: Net Income/Revenue = 14%Rate of Return: Net Income/Total Assets = 28%Therefore, Investment Turnover = 28/14 = 2.0.
To know more about Investment turnover visit:-
https://brainly.com/question/4370797
#SPJ11
FOFA Ltd. is promising to pay 23.75 as dividend each year for ever whoever invests in this company and the current expected rate of return on this stock is 7.25 percent. Find out the market price of this (FOFA) stock?
Market price of the FOFA stock will be $327.59.
The formula used to calculate the market price of stock is Dividend per share/Rate of return. The market price is calculated by dividing the annual dividend by the expected rate of return. For example, if the annual dividend is $4 and the expected rate of return is 8%, the market price of the stock is $50.
The market price of FOFA Ltd. is calculated as follows; $23.75/0.0725 = $327.59.Market price of stock is the price at which investors buy shares in the company. It represents the market value of each share of the company and is calculated using the dividend and expected rate of return.
The dividend is the amount of money paid to investors each year as a reward for investing in the company. The expected rate of return is the expected profit from investing in the stock. It is used to calculate the present value of the future dividend payments.
When the expected rate of return is high, the market price of stock is high. When the expected rate of return is low, the market price of stock is low.
To know more about Rate of return click on below link:
https://brainly.com/question/17164328#
#SPJ11
TRUE / FALSE. "Increasing the probability and impact of negative events is one
of the objectives of Project Risk Management
Increasing the probability and impact of negative events is one
of the objectives of Project Risk Management is False.
Increasing the probability and impact of negative events is not one of the objectives of Project Risk Management. The main objective of Project Risk Management is to identify, assess, and mitigate risks to minimize their negative impact on the project. The goal is to proactively manage risks by implementing strategies to reduce their likelihood or impact, or by developing contingency plans to address them effectively. The aim is to increase the probability of project success by minimizing the occurrence and impact of negative events or risks. Therefore, the statement is false.
Project Risk Management aims to mitigate risks and minimize their negative impact on a project, rather than increasing the probability and impact of negative events. By effectively managing risks, project managers can improve the chances of project success and ensure that potential issues and challenges are addressed proactively.
To know more about Project Risk Management, visit :
https://brainly.com/question/28273371
#SPJ11
in building a condominium on land adjacent to a lake, a contractor drove piles into the ground to provide a stable base on which to construct the condominium. although the contractor used reasonable care in driving the piles, the vibrations from doing so caused cracks and other major damages to a nearby building. it was foreseeable that driving the piles, which is not an activity commonly engaged in, created a highly significant risk of physical harm, but there was no physical invasion of objects or particles as a result of driving the piles.
In the case described, the contractor is guilty of the tort of nuisance. The tort of nuisance occurs when an act or omission causes significant and unreasonable harm to someone else. In this case, the vibrations from the contractor's piling work caused significant damage to a nearby building, which is a type of nuisance.
The defendant (contractor) did not physically invade the plaintiff's (building owner's) property; instead, the damage was caused by vibrations from the piling work. However, the defendant is still liable for the harm caused because they should have reasonably foreseen that their piling work would create a significant risk of physical harm to nearby buildings.
Therefore, the building owner can sue the contractor for damages resulting from the nuisance. The contractor may have to compensate the building owner for the cost of repairing the damages caused by the piling work.However, the defendant is still liable for the harm caused because they should have reasonably foreseen that their piling work would create a significant risk of physical harm to nearby buildings.
To know more about contractor Visit:
https://brainly.com/question/31457618
#SPJ11
Project S requires an initial outlay at t = 0 of $10,000, and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $44,500, and its expected cash flows would be $11,750 per year for 5 years. If both projects have a WACC of 16%, which project would you recommend?
Select the correct answer.
a. Project S, since the NPVs > NPVL.
b. Both Projects S and L, since both projects have NPV's > 0.
c. Neither Project S nor L, since each project's NPV < 0.
d. Both Projects S and L, since both projects have IRR's > 0.
e. Project L, since the NPVL > NPVs.
Project L should be choosen after comparing both projects because project L has higher NPV. The correct option is e.
NPV stands for Net Present Value. It is a financial metric used to evaluate the profitability of an investment or project. NPV calculates the difference between the present value of cash inflows and the present value of cash outflows over a specified time period, taking into account the time value of money.
Let us calculate the NPV of both projects to find the answer.a. Project S:
NPV = - Initial Investment + Present Value of cash inflow at 16% cost of capital
NPV = - 10,000 + 7000/(1+0.16)¹ + 7000/(1+0.16)² + 7000/(1+0.16)³ + 7000/(1+0.16)⁴ + 7000/(1+0.16)⁵
NPV = $3,503.87
b. Project L:
NPV = - Initial Investment + Present Value of cash inflow at 16% cost of capital
NPV = - 44,500 + 11,750/(1+0.16)¹ + 11,750/(1+0.16)² + 11,750/(1+0.16)³ + 11,750/(1+0.16)⁴ + 11,750/(1+0.16)⁵
NPV = $4,855.36
Therefore, Project L should be recommended as it has a higher NPV. The corect option is e.
Learn more about Present value: https://brainly.com/question/30390056
#SPJ11
Once you have identified the unexpected inflation from the Phillips curve: O add the nominal interest rate to arrive at the real interest rate. O equate it to the actual inflation rate. O add the expected inflation rate to get the actual inflation rate. O subtract the expected inflation rate to get the actual inflation rate.
Option O, which says "add the nominal interest rate to arrive at the real interest rate" is the correct answer.
TheThe Phillips Curve is a representation of the inverse relationship between inflation and unemployment rates. It shows that inflation and unemployment have an inverse relationship in the short run but not in the long run. This is because in the short run, firms and employees have sticky wages that do not adjust to inflation in the economy, which causes inflation to be high when unemployment is low. In the long run, however, wages are flexible and adjust to inflation, which makes the relationship between inflation and unemployment positive.
To calculate the real interest rate once the unexpected inflation from the Phillips curve is identified, one must add the nominal interest rate to arrive at the real interest rate. This is because the nominal interest rate does not account for inflation, whereas the real interest rate does. By adding the nominal interest rate to the inflation rate, one can determine the real interest rate. Therefore, option O, which says "add the nominal interest rate to arrive at the real interest rate" is the correct answer.
Learn more about Philips curve here,https://brainly.com/question/4486587
#SPJ11
appropriate. To provide information regarding any engagement in consult related to their affiliation with the Institute, the Innovator shall be responsible for ensuring that any related agreements with entities external to the Institute are not in conflict with this Policy or other commitments involving the Institute. To make their obligations to the Institute clear to those with whom they make agreements and the Innovator shall provide other parties to the agreement with a current statement of this Policy. Cost Recovery. Revenues received in the form of cash royalties and/or equity holdings as a result of licensing Institute intellectual property and innovations, as well as other agreements, shall be distributed in such a manner as to encourage technology development within and technology transfer from the Institute.
The statement emphasizes the Innovator's responsibility to avoid conflicts of interest, adhere to Institute policies in consulting engagements, provide external parties with policy statements, and distribute revenues to support technology development and transfer.
The statement emphasizes the need for the Innovator to be mindful of their affiliations with the Institute and to disclose any engagements related to consulting work. The Innovator needs to ensure that any agreements they make with external entities do not conflict with the Institute's policies or other commitments. This helps maintain integrity and avoids potential conflicts of interest.Furthermore, the statement highlights the Innovator's responsibility to provide other parties involved in agreements with a current statement of the Institute's policy. This ensures transparency and clarity regarding the Innovator's obligations to the Institute, establishing a shared understanding between all parties involved.In terms of cost recovery, the statement mentions that revenues received from licensing intellectual property and innovations, as well as other agreements, should be distributed in a manner that encourages technology development within the Institute and facilitates technology transfer. This ensures that the benefits from these agreements contribute to the advancement of technology within and outside the Institute, fostering innovation and knowledge dissemination.Overall, the statement outlines the responsibilities of the Innovator regarding their affiliations, the importance of aligning external agreements with the Institute's policies, and the distribution of revenues to promote technology development and transfer. By adhering to these principles, the Institute can maintain its integrity, protect its intellectual property, and foster a conducive environment for technological advancement and innovation.
To learn more about technology development, Visit:
https://brainly.com/question/24518752
#SPJ11
14.4. Company R stock traded at $23.75 and with a PE of 10. Company R bought- back 5% of their stock. If the PE remains at 10, then what is the new stock price? (Answer in dollars to two decimal places, but without the dollar sign, XX.XX for example.)
The new stock price is $22.56.
First, let's calculate the earnings per share (EPS) of Company R:
PE = Price/EPS
EPS = Price/PE
EPS = 23.75/10 = 2.375
Next, let's calculate how many shares were bought back:
Shares bought back = 5% x Total shares
We don't know the total number of shares, but we can use algebra to solve for it:
PE = Price/EPS
Total shares = Price/(EPS x PE)
Total shares = 23.75/(2.375 x 10) = 1,000
Shares bought back = 5% x 1,000 = 50
Now, we can calculate the new EPS:
New EPS = 2.375 x (1 - 0.05)
New EPS = 2.25625
Finally, we can calculate the new stock price:
New price = New EPS x PE
New price = 2.25625 x 10 = 22.56
Therefore, the new stock price is $22.56.
Learn more about stock price here:
https://brainly.com/question/29997372
#SPJ11
List three separate motivations for shopping and give an example
of each
The three seperate motivations for shopping are Functional Motivation, Emotional Motivation, Social Motivation.
Functional Motivation: This motivation is driven by practical needs and the desire to fulfill specific purposes.
Example: Someone shopping for groceries to stock up their pantry and meet their daily nutritional needs. They are motivated by the functional goal of acquiring essential food items for sustenance.
Emotional Motivation: This motivation is driven by the desire to fulfill emotional or psychological needs, seeking pleasure, enjoyment, or satisfaction through shopping.
Example: Someone purchasing a new outfit for a special occasion, such as a wedding or a party. They are motivated by the emotional desire to feel confident, attractive, and excited about the event.
Social Motivation: This motivation is driven by social influences, the desire to conform, or the need to maintain social connections and relationships.
Example: A person buying a gift for a friend's birthday. They are motivated by the social need to express care, celebrate the occasion, and strengthen their bond with the friend.
It's important to note that motivations for shopping can vary greatly depending on individual preferences, cultural influences, and personal circumstances. These examples are just a few illustrations of the various motivations people may have when engaging in shopping activities.
Know more about Social Motivation here
https://brainly.com/question/30037033#
#SPJ11
Over to you If you had a lot of money to invest, would you take the risk of joining a hedge fund? If not, why not?
Some general information about hedge funds that may help you make your own decision.
Hedge funds are investment vehicles that aim to generate high returns by employing various investment strategies, often using more complex and risky techniques than traditional investment funds. While hedge funds can offer potential high returns, they also come with higher risks compared to more conservative investment options.
Here are some factors to consider when deciding whether to invest in a hedge fund:
Risk tolerance: Hedge funds typically involve higher risks due to their aggressive investment strategies. You should carefully assess your risk tolerance and determine if you are comfortable with the potential volatility and the possibility of losing a significant portion of your investment.
Financial goals: Consider your financial goals and investment objectives. Are you seeking aggressive growth or more stable and predictable returns? Hedge funds can be suitable for investors looking for higher potential returns, but they may not align with everyone's investment objectives.
Expertise and due diligence: Hedge funds often require specialized knowledge and expertise to evaluate their strategies and performance. Conduct thorough due diligence on the fund's track record, investment approach, management team, and risk management practices.
Liquidity and lock-up periods: Hedge funds may have restrictions on the liquidity of your investment, such as lock-up periods where your money is tied up for a specific duration. Ensure you understand the fund's terms and the impact on your access to your investment.
Diversification: Consider the diversification of your overall investment portfolio. Adding hedge funds to a well-diversified portfolio can potentially provide benefits, but it's important to balance the risks and ensure proper asset allocation.
Ultimately, the decision to invest in a hedge fund should be based on your individual circumstances, risk appetite, and financial goals. It's advisable to consult with a qualified financial advisor who can assess your specific situation and provide personalized guidance tailored to your needs.
Learn more about hedge funds here:
https://brainly.com/question/28174916
#SPJ11
Data from Aswath Damodaran, a New York University finance professor, shows that, since 1928, U.S. stocks returned about 9.5% per year, compared with only 4.9% for 10-year Treasury bonds and 3.5% for three-month Treasury bills. Assume that you start with $1,000 in 1928. Compute the value of a stock portfolio, a bond portfolio and a Treasury bill portfolio as of 2018 (90-years later
The value of a stock portfolio as of 2018 is $334,280, the value of a bond portfolio is $19,990, and the value of a Treasury bill portfolio is $8,130.
As per the data provided by Aswath Damodaran, a New York University finance professor, the U.S. stocks had returned about 9.5% per year, compared to only 4.9% for 10-year Treasury bonds and 3.5% for three-month Treasury bills since 1928.
We can compute the value of a stock portfolio, bond portfolio, and Treasury bill portfolio using the following steps:
1. The compound interest formula is used to calculate the future value of $1,000 invested in 1928 at an interest rate of 9.5% for 90 years.
FV = PV (1 + r / n)^(n*t)
where
FV = Future Value,
PV = Present Value,
r = rate of interest,
n = number of times the interest is compounded in a year,
t = time period.
FV of stock portfolio = $1,000 x (1 + 0.095/1)^(1*90) = $1,000 x 334.28 = $334,280.
2. The future value of $1,000 invested in 1928 at an interest rate of 4.9% for 90 years can be calculated using the compound interest formula.
FV of bond portfolio = $1,000 x (1 + 0.049/1)^(1*90) = $1,000 x 19.99 = $19,990.
3. To calculate the future value of $1,000 invested in 1928 at an interest rate of 3.5% for 90 years, we can use the compound interest formula.
FV of Treasury bill portfolio = $1,000 x (1 + 0.035/1)^(1*90) = $1,000 x 8.13 = $8,130.
Therefore, the value of a stock portfolio as of 2018 is $334,280, the value of a bond portfolio is $19,990, and the value of a Treasury bill portfolio is $8,130.
To learn more about portfolio: https://brainly.com/question/14986133
#SPJ11
A proposed investment has a cost of $1200. It will have a life of 4 years. The cost will depreciated straight-lose to a 200 salvage value, and will be worth $300 at that time. The fi project Cash sales will be $700 in year I and cash costs will run $300 in year 1 Productio will also need to invest $150 in net working capital at year 0, to be recovered at the end of the 35% The project in financed entirely with equity and the cost of equity is 12% (15 points) costs will increase at 815s per year. Sales will increase at 5% per year. The corporate tax rate is a. Determine the cash flows during the life of the project. Show your calculations to get credit. b. What is the NPV of the project? Is the project acceptable?
a) At the end of Year 4, the net working capital investment of $150 is recovered. b) If the NPV is positive, it indicates that the project is acceptable, and if the NPV is negative, it indicates that the project is not acceptable.
a. To determine the cash flows during the life of the project, we need to calculate the annual cash inflows and outflows.
Year 0:
Initial Cost of Investment: -$1200
Net Working Capital Investment: -$150
Year 1:
Cash Sales: $700
Cash Costs: -$300
Year 2:
Cash Sales: $700 * (1 + 5%) = $735
Cash Costs: -$300 * (1 + 8%) = -$324
Year 3:
Cash Sales: $700 * (1 + 5%)^2 = $770.25
Cash Costs: -$300 * (1 + 8%)^2 = -$348.48
Year 4:
Cash Sales: $700 * (1 + 5%)^3 = $808.76
Cash Costs: -$300 * (1 + 8%)^3 = -$375.67
Salvage Value: $200
At the end of Year 4, the net working capital investment of $150 is recovered.
b. To calculate the net present value (NPV) of the project, we need to discount the cash flows to the present value using the cost of equity, which is 12%.
Using the cash flows calculated in part a, the NPV can be calculated as follows:
NPV = (Cash Flow at Year 0 / (1 + Cost of Equity)^0) + (Cash Flow at Year 1 / (1 + Cost of Equity)^1) + ... + (Cash Flow at Year 4 / (1 + Cost of Equity)^4)
NPV = (-$1200 / (1 + 12%)^0) + ($700 / (1 + 12%)^1) + ($735 / (1 + 12%)^2) + ($770.25 / (1 + 12%)^3) + ($100.25 / (1 + 12%)^4) + ($200 / (1 + 12%)^4)
Calculating the above expression will give us the NPV of the project. If the NPV is positive, it indicates that the project is acceptable, and if the NPV is negative, it indicates that the project is not acceptable.
To know more about capital investment visit:
https://brainly.com/question/30034557
#SPJ11
AppleBanana Corp. is considering raising 100 million baht through rights offering. The company currently has 10 million shares outstanding that sell for 29 baht per share. Its underwriter has set a subscription price of 25 baht per share and will charge the company a spread of 5 percent. If you currently own 10,000 shares of AppleBanana stock and decide not to participate in the rights offering, how much money will you receive from selling your rights? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16)
You will receive 27,500 baht from selling your rights in the rights offering of AppleBanana Corp.
To calculate this, we need to determine the theoretical value of the rights and subtract it from the current stock price to find the value of the rights. The theoretical value of the rights can be calculated as the difference between the stock price and the subscription price. In this case, the theoretical value of the rights is 4 baht (29 baht - 25 baht).
Next, we calculate the total value of your rights by multiplying the theoretical value per right by the number of rights you own. Since you own 10,000 shares, you will receive 10,000 rights. Therefore, the total value of your rights is 40,000 baht (10,000 rights * 4 baht/right).
Finally, to determine the amount of money you will receive from selling your rights, we need to consider the underwriter's spread. The underwriter charges a spread of 5 percent on the subscription price.
The spread on each right is 1.25 baht (25 baht * 5%). Therefore, the total spread on your rights is 12,500 baht (10,000 rights * 1.25 baht/right).
Subtracting the spread from the total value of your rights, you will receive 27,500 baht (40,000 baht - 12,500 baht) from selling your rights in the rights offering of AppleBanana Corp.
To learn more about rights offering, visit:
https://brainly.com/question/29242635
#SPJ11
All transporting, storing, and product-handling activities of a
business and a whole channel system should be coordinated as one
system by:
All transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system by supply chain management.
Supply chain management (SCM) is a term that refers to the process of streamlining activities involved in the production and distribution of goods and services. The primary objective of supply chain management is to improve a company's efficiency and lower its costs by streamlining product supply and demand and improving communication and cooperation with suppliers, manufacturers, distributors, and retailers in the supply chain network.
The primary aim of the supply chain is to provide high-quality goods and services to the end customer in a timely and cost-effective manner. To achieve this, the following activities must be streamlined: procurement, warehousing, inventory management, demand forecasting, logistics, and transportation.
SCM aids in the improvement of supply chain performance by providing greater transparency, accountability, and efficiency, which leads to higher profitability, customer satisfaction, and competitiveness.The aim of SCM is to improve and optimize the flow of goods and services across the entire supply chain network, from the supplier to the end consumer, in order to meet customer needs efficiently and cost-effectively.
As a result, all transportation, storage, and product-handling activities of a company and a whole channel system should be coordinated as one system by supply chain management.
To know more about supply chain management, visit https://brainly.com/question/25160870
#SPJ11