Walt Disney conforms more to the organic model of organizational structure.
The organic model of organizational structure emphasizes flexibility and adaptability over stability and control. Organizations that use the organic model tend to have a flat hierarchy, decentralized decision-making, and a focus on teamwork and collaboration. Walt Disney was known for his creative and innovative ideas, which required a flexible and adaptable organizational structure to bring to life. Disney's company was structured around a creative vision rather than a rigid set of rules, which allowed for constant experimentation and innovation.
This can be seen in the way that Disney's company created a number of groundbreaking films and theme park attractions that were unlike anything that had been seen before. In contrast, the mechanistic model of organizational structure emphasizes stability and control over flexibility and adaptability. Organizations that use the mechanistic model tend to have a tall hierarchy, centralized decision-making, and a focus on specialization and standardization. While Disney's company did have some aspects of a mechanistic structure, such as clear lines of authority and standardized procedures for producing films and theme park attractions, these were secondary to the company's primary focus on creativity and innovation.
To know more about organizational visit:
https://brainly.com/question/30090683
#SPJ11
An employee manual may be beneficial to a company owner. State the benefits of an employee manual, and state
any negatives
An employee manual is a document that contains the company's policies, procedures, and expectations. It serves as a reference for employees to follow and also helps the employer to protect their business interests.
The benefits of an employee manual are numerous.Benefits of employee manualAn employee manual provides a consistent standard for all employees and helps ensure that everyone is aware of the company's expectations and policies. It also helps reduce misunderstandings and disputes between employers and employees because everyone is on the same page.
An employee manual can also serve as a legal document that can be used to defend the company in court in case of an employee lawsuit. It provides the employer with the opportunity to include policies regarding discrimination, harassment, and other legal issues.A good employee manual also includes clear procedures for addressing employee grievances, complaints, and disciplinary actions, which can help to resolve conflicts and improve employee relations.
To know more about business interests visit:-
https://brainly.com/question/858225
#SPJ11
Which of the following factors favors concentrating production in a centralized location?
A) Volatility in important exchange rates is expected.
B) The product's value-to-weight ratio is low.
C) Trade barriers are high.
D) The product serves universal needs.
E) Location externalities are not important.
Which of the following factors favors concentrating production in a centralized location? E) Location externalities are not important.
Concentrating production in a centralized location is favored when location externalities are not important. Location externalities refer to the external factors or benefits that are associated with a specific location, such as access to resources, transportation networks, skilled labor, or proximity to markets.
If location externalities are not significant or do not have a substantial impact on production, it becomes more feasible and advantageous to concentrate production in a centralized location. This allows for economies of scale, streamlined logistics, and cost efficiency.
Let's review the other options to understand why they do not favor concentrating production in a centralized location:
A) Volatility in important exchange rates is expected: This factor may favor decentralizing production or diversifying production across multiple locations to mitigate risks associated with exchange rate fluctuations.B) The product's value-to-weight ratio is low: If a product has a low value-to-weight ratio, it may be more cost-effective to produce it closer to the market or in multiple locations to reduce transportation costs.C) Trade barriers are high: High trade barriers may necessitate decentralization or diversification of production to overcome trade restrictions and access different markets.D) The product serves universal needs: If the product serves universal needs, it may be more efficient to have production facilities located near the target markets to ensure timely delivery and better cater to local preferences.In conclusion, the factor that favors concentrating production in a centralized location is when location externalities are not important.
To know more about production, visit :
brainly.com/question/30333196
#SPJ11
Tesla is undergoing a major expansion. The expansion will be financed by issuing new 20-year, $1,000 par, 6% annual coupon bonds. The market price of the bonds is $1,040 each. Tesla's flotation expense on the new bonds will be $24 per bond. Tesla's marginal tax rate is 35%. What is the relevant cost of debt for the newly-issued bonds?
a. 5.66%
b. 3.81%
c. 3.68%
d. 5.86%
To calculate the relevant cost of debt for the newly-issued bonds, we need to consider the coupon rate, flotation expense, market price, and the marginal tax rate.
First, let's calculate the after-tax cost of debt using the formula:
After-tax cost of debt = (Coupon payment - Flotation expense) * (1 - Tax rate) / Market price
Coupon payment = Coupon rate * Par value
Coupon payment = 6% * $1,000 = $60
After-tax cost of debt = ($60 - $24) * (1 - 0.35) / $1,040
After-tax cost of debt = $36 * 0.65 / $1,040
After-tax cost of debt = $23.40 / $1,040
After-tax cost of debt ≈ 0.0225 or 2.25%
The relevant cost of debt for the newly-issued bonds is approximately 2.25%.
Therefore, none of the provided answer choices (a. 5.66%, b. 3.81%, c. 3.68%, d. 5.86%) is correct.
Learn more about financed here-
https://brainly.com/question/29634203
#SPJ4
Between 1970 and the present, research comparing similar wealthy countries found that increases in the money supply: a had little effect on prices. b caused large increases in real GDP. c caused large decreases in real GDP.
d and increases in the price level were roughly proportional.
Between 1970 and the present, research comparing similar wealthy countries found that increases in the money supply had little effect on prices. This suggests that changes in the money supply did not lead to significant inflationary pressures in these countries during this period.
Studies examining the relationship between money supply and prices have generally shown that the impact of monetary expansion on price levels is not substantial in the long run. Factors such as productivity growth, supply-side shocks, and changes in aggregate demand play more significant roles in determining price levels. While an increase in the money supply can influence economic activity and financial markets, its direct impact on prices has been found to be relatively limited.
Therefore, the research indicates that increases in the money supply during this period did not cause large increases in real GDP (option b) or large decreases in real GDP (option c). Additionally, the research suggests that the relationship between increases in the money supply and the price level was not roughly proportional (option d). The primary finding is that increases in the money supply had little effect on prices (option a).
To know more about , inflationary pressures , click here https://brainly.com/question/28273007
#SPJ11
A UNO student wants to celebrate graduating and getting a job by spending $5,000 on a trip to Bali with his wife. He applies for and subsequently gets a "vacation loan" of $4,000 from UNO FCU. The bank offers an interest rate of 11% per year and the loan must be repaid in 5 equal annual payments. Construct his loan amortization schedule.
Amortization is the process of spreading out the cost of a loan over a set period of time with fixed payments. When a loan is taken, a schedule of payments is set up, the interest is calculated on the unpaid balance of the loan, and it decreases as the payments are made principal balance of $601.13.
Let us construct the amortization table below:
A UNO student borrows $4,000 from UNO FCU with an interest rate of 11 percent per year. They must make five equal annual payments to repay the loan. Let us find out the equal annual payment based on the formula below:
PV = P [ 1 - (1 + r)-n ] / r
Where,PV = Present ValueP = Paymentr = Interest raten = Number of payments
PV = 4,000P = ?r = 11% per yearn = 5 payments
Therefore,
P = $1,044.47 each year.Then let us compute the amortization schedule.
Loan amortization schedule for a UNO student loan:
$ $1,044.47$ $1,044.47$ $1,044.47$ $1,044.47$ $1,044.47
Principal $1,604.12 $1,959.54 $2,390.47 $2,901.35 $3,498.51
Interest $440.88 $85.46 $346.53 $465.65 $546.49
Balance $2,395.88 $2,040.46 $1,649.99 $1,098.64 $601.13
At the start of the loan, the student has $4,000 in principal, and they have to pay $1,044.47 per year for five years. For the first year, the interest on the loan is 11 percent of $4,000 or $440.88, leaving a principal balance of $1,604.12.
For each subsequent year, the principal payment is constant, but the interest payment decreases as the principal balance decreases. By the fifth and final payment, the student pays $546.49 in interest, leaving a remaining principal balance of $601.13.
To know more about interest visit:-
https://brainly.com/question/32498187
#SPJ11
Great Catch Corp.'s true cost of debt is 10% but it is able to borrow $90m for 17 years at a subsidized 9% rate. What is the NPV of debt financing if the firm makes annual interest payments and has to repay the principal at maturity? The tax rate is 30%.
The NPV of debt financing if the firm makes annual interest payments and has to repay the principal at maturity is $96,102,333.98.
It is given that Cost of debt, rd= 10%
Subsidized rate, rs = 9%
Amount borrowed, P = $90m
Period, t = 17 years
Tax rate, T = 30%
The net present value (NPV) of debt financing is the sum of the present value of principal and the present value of annual interest payments.
NPV of debt financing is = (PV of Principal) + (PV of Interest Payment)
The formula to calculate the present value (PV) of a debt is:
PVi = (Ci / (1 + r)i)
Where,
PVi = present value of cash flow in the i-th year
Ci = cash flow in the i-th year
ri = required rate of return or discount rate
i = time period
For Principal repayment, the cash flow is $90m.
Therefore, its present value will be:
PVP = ($90m / (1 + 0.09)17)
PV of Principal = $90m / 7.4501
PV of Principal = $12,086,802.64
For annual interest payment, the cash flow will be the interest payment of the previous year (since the principal will remain constant for each year) for 17 years.
The amount of interest for the first year will be:
PVAI = $90m × 0.09 = $8.1m
The interest payment for the 2nd year will be:
PVAI2 = $90m × 0.09 = $8.1m
The interest payment for the 3rd year will be:
PVAI3 = $90m × 0.09 = $8.1m
And so on until the 17th year.
PVAI17 = $90m × 0.09 = $8.1m
The PV of the cash flow can be calculated as:
PVA = (C × ((1 - (1 + r)-t) / r))
Where,
PVA = present value of annuity
Ci = cash flow in the i-th year
ri = required rate of return or discount rate
i = time period
t = number of years for the cash flow
After calculating for all 17 years, the total PV of Interest Payment is:
PVA = ($8.1m × ((1 - (1 + 0.09)-17) / 0.09))
PV of Interest Payment = $84,015,531.34
Therefore, the net present value of debt financing is:
NPV of Debt = (PV of Principal) + (PV of Interest Payment)
NPV of Debt = $12,086,802.64 + $84,015,531.34
NPV of Debt = $96,102,333.98
Hence, the NPV of debt financing is $96,102,333.98.
To learn more about net present value (NPV): https://brainly.com/question/18848923
#SPJ11
A 17-year, semiannual coupon bond sells for $1,008.82. The bond has a par value of $1,000 and a yield to maturity of 6.63 percent. What is the bond's coupon rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16) A stock has a beta of 0.90 and a reward-to-risk ratio of 5.95 percent. If the risk-free rate is 2.6 percent, what is the stock's expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16)
The bond's coupon rate is 3.32%. The stock's expected return is 5.34%.
The bond's coupon rate can be calculated using the following formula: coupon rate = (yield to maturity * par value) / (number of payments per year)
Plugging in the given values, we get:
coupon rate = (6.63% * $1,000) / (2) = $331.50
Dividing this amount by the bond's face value of $1,000, we get the bond's coupon rate of 3.32%.
The stock's expected return can be calculated using the following formula:
expected return = risk-free rate + beta * (reward-to-risk ratio)
Plugging in the given values, we get:
expected return = 2.6% + 0.90 * 5.95% = 5.34%
Therefore, the stock's expected return is 5.34%.
It is important to note that these are just estimates, and the actual return on the bond or stock could be higher or lower. The bond's return could be higher if interest rates fall, and the stock's return could be higher if the company's earnings increase.
To learn more about returns here brainly.com/question/32493906
#SPJ11
In your opinion, what are the decision motivations for developing or selling a hotel property? Summarize the due diligence process
Decision motivations for developing or selling a hotel property: Hotel development and sales decisions are generally influenced by a number of factors. The following are the decision motivations for developing or selling a hotel property Market forces and economic conditions are the first factor to consider when developing a hotel property.
The number of tourists, market demands, and economic factors all play a role in the decision to build or sell a hotel property.Competition is the second factor to consider when developing or selling a hotel property. A significant amount of competition in the hotel industry might be an indicator that new properties are required for specific niches, while an oversupply of rooms may indicate that development opportunities are less promising.Regulatory environment is the third factor to consider when developing or selling a hotel property. A developer should examine zoning restrictions and the legal requirements for construction projects in a certain region or area. The community and location of the property are also factors to consider.Internal factors of a company are the fourth factor to consider when developing or selling a hotel property. The company should have the capability to oversee and maintain the property. This will have an impact on whether or not the property is built or sold.Investment goals and objectives are the fifth factor to consider when developing or selling a hotel property.
Investment objectives are established in order to guide the investor's future activities, hence it is critical to define clear investment goals. Due Diligence Process: Determining the potential of the property, developing and implementing a plan, and ultimately closing the deal are all part of the due diligence process.The due diligence procedure comprises a comprehensive examination of all aspects of a property, from legal and financial issues to physical assessments. The following are the steps in the due diligence process: 1. Market research and feasibility study: Market analysis and feasibility study determine whether the hotel is viable. The market study examines the area's economic conditions, infrastructure, and the hotel's ability to compete.
To know more about Hotel development visit :
https://brainly.com/question/12453889
#SPJ11
Reflect on which 5 factors of the 3X3 writing process were most
beneficial for your writing purposes.
The five factors of the 3X3 writing process that were most beneficial for my writing purposes were prewriting, drafting, revising, editing, and proofreading.
Prewriting: This stage allowed me to brainstorm ideas, gather information, and organize my thoughts before starting the actual writing process. It helped me clarify my purpose, identify my target audience, and establish a clear structure for my writing.Drafting: During the drafting stage, I focused on putting my ideas into words and developing the content of my writing. This allowed me to create a rough draft without worrying too much about grammar, style, or word choice. It helped me get my thoughts on paper and build the foundation for further revisions.Revising: The revising stage was crucial for refining and improving my writing. I reviewed my initial draft, assessed its clarity, coherence, and effectiveness, and made necessary revisions to enhance the overall quality of the content. This involved reorganizing paragraphs, clarifying ideas, strengthening arguments, and ensuring a logical flow.Editing: In the editing stage, I focused on refining the language and style of my writing. I paid attention to grammar, punctuation, sentence structure, and word choice. I reviewed each sentence and paragraph to ensure clarity, coherence, and precision. This step helped me eliminate errors and polish the language to make my writing more professional and effective.Proofreading: Proofreading was the final stage where I carefully reviewed my writing for any remaining errors or typos. I checked for spelling mistakes, formatting issues, and inconsistencies. This step allowed me to ensure the accuracy and professionalism of my writing before finalizing it.The five factors of the 3X3 writing process, including prewriting, drafting, revising, editing, and proofreading, were all instrumental in achieving my writing purposes. Prewriting helped me plan and organize my thoughts, drafting allowed me to generate content, revising helped me refine and improve my writing, editing polished the language and style, and proofreading ensured the accuracy and professionalism of the final piece. By following these steps, I was able to produce well-structured, coherent, and error-free written work
To know more about 3X3 writing process, visit :
https://brainly.com/question/14412075
#SPJ11
kyoko wants to consider the safety and security needs of her employees. which of the following organizational conditions would help meet those needs?
Creating a culture of safety and security in the organizational conditions is essential to meeting the needs of employees. By providing a safe working environment, clear policies and procedures, training, regular safety audits, and employee involvement, Kyoko can ensure that her employees feel safe and secure while at work.
The organizational conditions that would help Kyoko meet the safety and security needs of her employees are:
1. Providing a safe working environment: Providing a safe working environment is the most critical factor in meeting the safety and security needs of employees. In addition to being safe from physical harm, employees must also feel emotionally secure.
2. Policies and Procedures: The organization should have policies and procedures in place to ensure that the employees' safety and security needs are met. These policies and procedures should be clearly communicated to all employees to ensure that they are aware of them.
3. Training: Training should be provided to employees on safety and security issues. This should include training on how to handle an emergency situation, how to evacuate the building, and how to respond to a threat.
4. Regular safety audits: Regular safety audits should be conducted to ensure that the safety and security needs of employees are being met. These audits should identify potential hazards and recommend actions to reduce or eliminate them.
5. Employee involvement: Employees should be involved in the safety and security program. This can be done by establishing a safety committee made up of employees from different departments. This committee can review policies and procedures, conduct safety audits, and make recommendations for improvements.
To know more about organizational conditions visit:-
https://brainly.com/question/32083600
#SPJ11
You buy a stock for $73. The following year you sell it at again at $73 plus $8 and you receive a dividend of $8. Your rate of return was:
Give your answer with two decimals and with no $ or %. Note for instance that 10% = 0.1 = 10 should be written as 10.00.
Selling stock at $73 plus $8 again with a dividend of $8 will give a return rate of 21.92%. The rate of return is a measure that indicates the gain or loss on an investment relative to the amount invested. It is typically expressed as a percentage. The rate of return allows investors to assess the profitability and performance of an investment.
To calculate the rate of return, we need to consider the initial investment, final investment value, and any additional income received.
Initial investment: $73
Final investment value: $73 + $8 = $81
Dividend received: $8
Total return = Final investment value + Dividend - Initial investment
Total return = $81 + $8 - $73 = $16
Rate of return = Total return / Initial investment
Rate of return = $16 / $73 = 0.219178 (rounded to 6 decimal places)
Therefore, the rate of return is 0.219178, which is equivalent to 21.92%.
Learn more about Dividend: https://brainly.com/question/2960815
#SPJ11
Incremental costs are always: Multiple Choice variable costs. fixed costs sunk costs differential costs
Answer:
Incremental costs are differential costs, which implies that when selecting one alternative over another, incremental costs are the extra costs that will be incurred.
Explanation:
Incremental costs can be defined as the amount that a company's cost increases when there is a change in the activity level, sales volume, or output. Incremental costs can be differentiated from other cost types such as sunk costs and fixed costs. They are relevant in making business decisions.
Differential cost, on the other hand, is the difference between the total costs of two alternative courses of action. Incremental and differential costs are related concepts but they are different from each other. Differential costs help in decision-making between two different options and incremental costs determine the amount of cost increases when output or sales volume increases.
Therefore, the answer to the question is differential costs because incremental costs may be variable, fixed or sunk depending on the activity level or sales volume. The term "always" makes the answer false because it limits the choices to only one category of cost.
Thus, it is incorrect to say that incremental costs are always variable costs as incremental costs can be sunk or fixed costs. For instance, fixed costs such as rent and salaries are incremental costs because they increase when there is a change in the level of output.
In conclusion, incremental costs refer to the increase in total costs when the level of output changes while differential cost refers to the difference in cost between two alternatives.
Learn more about Incremental & Differential Costs.
https://brainly.com/question/32716737
#SPJ11
You came to know about the idea of insurance and that it works on sharing of losses. However, your father does not agree with you. As discussed in class, explain the idea of sharing of losses to your father. Assume asset to be insured worth Rs 1009000 and a chance of loss to be 19%. (Hint: consider at least two similar assets to prove your point.) 5 Marks
SUBJECT IS RISK AND INSURANCE
Insurance is a way of managing the risk of financial loss. The sharing of losses occurs in insurance. In case of a loss, the insurance company pays a certain amount to the insured.
What happens with it?When there is insurance, the insured pays a premium to the insurance company to cover the risk. The amount of the premium is determined by the potential loss of the item being insured. There are two similar assets that can be taken into account to prove the idea of sharing of losses to your father: a car and a house.
Suppose a car is worth Rs. 5,00,000 and a house is worth Rs. 10,00,000. For both the car and the house, the chance of a loss is 15%. Therefore, the expected loss for the car is Rs. 75,000 and the expected loss for the house is Rs. 1,50,000.The owner of the car or the house might have to pay the entire loss themselves if there is no insurance. This can be difficult for many individuals to handle, and it can lead to serious financial difficulties.
However, if the car and the house are insured, the losses are shared with the insurance company. In the event of a loss, the insurance company pays a portion of the loss. The insured person will only have to pay the amount of the deductible, which is usually a small fraction of the total loss.
Therefore, insurance is a way of managing the risk of financial loss. Insurance companies offer protection against the possibility of loss, and they charge a premium for this protection. In the event of a loss, the insurance company shares the loss with the insured person.
To know more on Insurance visit:
https://brainly.com/question/989103
#SPJ11
Newton Insurer changes its property quota share reinsurance program from ABC Re to XYZ Re effective Jan. 1, 2020. One of Newton’s policyholder suffers a total loss at 2 AM Eastern time/ 11PM Pacific time on Jan.1 2020/Dec.31, 2019. The policyholder is located in California. Explain whether the old or the new treaty would respond to this loss.
To determine whether the old or new treaty would respond to the loss, we need to consider the effective date and time of the change in the property quota share reinsurance program from ABC Re to XYZ Re.
In this case, the effective date of the change is Jan. 1, 2020. The loss occurred at 2 AM Eastern time/11 PM Pacific time on Jan. 1, 2020/Dec. 31, 2019.
Since the loss occurred after the effective date of the change, which is Jan. 1, 2020, the new treaty with XYZ Re would be in effect at the time of the loss. Therefore, the new treaty with XYZ Re would respond to this loss.
It's important to note that the specific terms and conditions of the reinsurance treaty would also need to be considered to determine the coverage and response to the loss, as they may vary between the old and new treaties.
Learn more about reinsurance here
https://brainly.com/question/29427008
#SPJ11
Portfolio C is the minimum variance portfolio (MVP).
A more risk-averse investor will prefer portfolios on the left side of the efficient frontier.
Portfolios A, B, and D are attainable, but C is not.
Portfolios on the upper segment above C dominate those on the bottom segment below C.
The statements provided relate to the concepts of portfolio theory and the efficient frontier. Let's break down each statement:
Portfolio C is the minimum variance portfolio (MVP): The minimum variance portfolio is the portfolio with the lowest level of risk or volatility among all possible portfolios. It represents the optimal combination of assets that minimizes the portfolio's overall risk.
A more risk-averse investor will prefer portfolios on the left side of the efficient frontier: The efficient frontier is a graph that plots the risk (standard deviation) of a portfolio against its expected return. Portfolios on the left side of the efficient frontier have lower levels of risk for a given level of return. Risk-averse investors prefer portfolios with lower risk, so they would prefer portfolios on the left side of the efficient frontier.
Portfolios A, B, and D are attainable, but C is not: Attainable portfolios are those that can be constructed using the available assets in the investment universe. If portfolios A, B, and D are attainable, it means they can be created using the available assets, while portfolio C cannot be constructed.
Portfolios on the upper segment above C dominate those on the bottom segment below C: Dominance in this context refers to the comparison of portfolios based on their risk-return characteristics. Portfolios on the upper segment above C have higher expected returns for the same level of risk compared to portfolios on the bottom segment below C. In other words, they offer a better risk-return trade-off.
It's important to note that these statements are general principles based on portfolio theory and the efficient frontier. The specific preferences of an investor may vary based on their individual risk tolerance, investment goals, and other factors.
To know more about frontier visit-
brainly.com/question/19166445
#SPJ11
Consider the efficient market hypothesis which indicates that markets that have all information available are more efficient. What type of information efficiency does a market have that includes all public information but priviate information in companies still exists for insiders to exploit.
Semi-strong form efficiency
Weak form efficiency
None of the available choices provide this type of informational efficiency.
Strong form efficiency
According to the given scenario, the type of information efficiency that a market has that includes all public information but private information in companies still exists for insiders to exploit is Semi-strong form efficiency.
Efficient market hypothesis states that all the investors in the market have the same access to the information, hence it is not possible for anyone to make excess profits. As soon as any news is released in the market, it will be reflected in the market prices of the securities in an instant.So, all the participants have the same ability to access the information and hence there is no possibility of anyone having excess profits.
There are three forms of market efficiency namely:1. Strong form efficiency: It implies that all public as well as private information are reflected in the stock prices.2. Semi-strong form efficiency: It implies that all public information is reflected in the stock prices.3. Weak form efficiency: It implies that only past market information and prices are reflected in the stock prices.
To know more about private information visit:
https://brainly.com/question/29851892
#SPJ11
The Cybertronics Corporation reported the following information for its Cyclotron Division:
Revenues $2,500,000
Operating costs 1,200,000
Operating assets 1,300,000
Income is defined as operating income. What is the Cyclotron Division's investment turnover ratio? OA. 1.92 B. 0.92 C. 1.08 OD. 2.08
The Cybertronics Corporation reported the following information for its Cyclotron Division:
Revenues $2,200,000
Operating costs 1,600,000
Operating assets 1,500,000
Income is defined as operating income. What is the Cyclotron Division's return on investment? A. 37.5% B. 40% C. 43.8% D. 20%
The investment turnover ratio of the Cyclotron Division is 1.92. Option A is correct. The return on investment (ROI) of the Cyclotron Division in the second scenario is 40%. Option B is correct.
To calculate the investment turnover ratio, you need to divide the revenues by the average operating assets.
Investment Turnover Ratio = Revenues / Average Operating Assets
For the first scenario;
Revenues = $2,500,000
Operating assets = $1,300,000
The average operating assets are not given, so we'll assume it's the same as the operating assets.
Investment Turnover Ratio = $2,500,000 / $1,300,000 = 1.92
Therefore, the investment turnover ratio for the first scenario is 1.92.
For the second scenario;
Revenues = $2,200,000
Operating assets = $1,500,000
Investment Turnover Ratio = $2,200,000 / $1,500,000 = 1.47
Therefore, the investment turnover ratio for the second scenario is 1.47.
So the investment turnover ratio of the Cyclotron Division is 1.92.
Hence, A. is the correct option.
To calculate the return on investment (ROI), you need to divide the operating income by the average operating assets and multiply by 100 to express it as a percentage.
Return on Investment (ROI) = (Operating Income/Average Operating Assets) × 100
For the second scenario;
Operating costs = $1,600,000
Operating Income = Revenues - Operating costs = $2,200,000 - $1,600,000 = $600,000
Return on Investment (ROI) = ($600,000 / $1,500,000) × 100 = 40%
Therefore, the correct answer for the return on investment (ROI) of the Cyclotron Division in the second scenario is 40%.
Hence, B. is the correct option.
To know more about turnover ratio here
https://brainly.com/question/29690693
#SPJ4
2 FARO Technologies, whose products include portable 3D measurement equipment, recently had 35 million shares outstanding trading at $30 a share. Suppose the company announces its intention to raise $
FARO Technologies is an organization that creates and produces portable 3D measurement equipment. As of now, it had 35 million offers extraordinary that were exchanging at $30 per share.
The company needs to raise $120 million by giving more offers to the general population. In any case, the value that the company can get by selling shares relies upon various components like market interest, the general economic situation, and financial specialists' expectations.The market interest and the general financial state can prompt the stock's cost to rise or fall. On the off chance that the market is doing great, financial specialists are probably going to put resources into the stock, which will drive up the price.
In any case, if the general economic situation is poor, there might be a decrease in interest, which can prompt a decrease in share cost. Additionally, the investor's expectations of the future performance of the organization will also influence the stock cost. An investor may expect a higher return on investment on the off chance that the organization has strong performance history and prospects. Thus, the share's cost will be higher if there are high expectations from the investors.
The estimation of the organization's offers after the declaration will rely upon the overall market interest, the financial situation, and investor expectations. In the event that the market interest for the company's offers is high, the organization will get more cash by selling shares. Additionally, if the general economic situation is great, financial specialists may put resources into the organization's offers, which will prompt a rise in share prices. Then again, if the economy is weak, there may be low demand for the shares, which will prompt a decrease in the offer price. Finally, the investors' expectations of the organization's performance will also impact the stock price. If the organization has a strong past performance and prospects for growth, the investors will have high expectations from the shares, which will prompt a rise in share prices. The shares' cost will be higher if investors are more certain about the organization's prospects.
In conclusion, the estimation of FARO Technologies' shares will rely upon various components like market interest, the overall financial situation, and investors' expectations.
To know more about FARO visit:
brainly.com/question/14300215
#SPJ11
Using MUS, an auditor determined the preliminary sample size for testing inventory valuation to be 15
(using a 100% average misstatement assumption). The population has 4,060 inventory items valued at $3,450,000. The auditor will select the MUS sample from the 4,060 inventory items using systematic sampling. Assuming a random starting point of 127,800, identify the cumulative dollar amounts associated with the first five sample items. How will the auditor determine the physical inventory items associated with each sample dollar?
Begin by identifying the cumulative dollar amounts associated with the first five sample items. How will the auditor determine the physical inventory items associated with each sample dollar?
Cumulative dollar amounts
Random dollar starting point
2nd sample dollar selected
3rd sample dollar selected
4th sample dollar selected
5th sample dollar selected
How will the auditor determine the physical inventory items associated with each sample dollar?
The selection of the first five sample items would be associated with a ..........
The auditors can determine the physical inventory items associated with each sample dollar by using the following steps:
Calculate the sampling interval by dividing the total value of the population by the sample size.
The auditor must randomly choose a starting point, as well as the dollar interval for selecting a sample.
The auditor will use the interval dollar amount to select the next sample dollar.
The auditor must physically check the inventory items linked to each sample dollar to determine whether there is a misstatement.
The auditor must check and correct the sample results.
The auditors can determine the physical inventory items associated with each sample dollar by using the steps mentioned above.
MUS sample selection is used for auditing inventory. MUS is a statistical sampling strategy that helps auditors to decide how many inventory items to test. The formula for determining sample size using MUS is shown below:
n = R × [ (t/AR)2 + 1 ]^-1
For the given question:
Population value = $3,450,000
Preliminary sample size = 15
Therefore,
R = Population value / Preliminary sample size
n = 3450000 / 15n = 230,000 / ARAR = 15 / 4060
AR = 0.00369
t = 3.71 (95% confidence)
Using the formula,
n = R × [ (t/AR)2 + 1 ]^-1n = 0.00369 × [(3.71/1)^2 + 1]^-1n = 15.4 or 16
So, the sample size is 16 inventory items.
The cumulative dollar amounts associated with the first five sample items are shown below:
First, the auditor must determine the sampling interval, which is calculated as follows:
Sampling interval = Total population value / Sample size
Sampling interval = 3,450,000 / 16Sampling interval = $215,625
A random starting point of 127,800 has been chosen, and the first sample dollar selected will be 215,625.
The first five sample items are as follows:
First sample dollar selected = Random starting point = $127,800
Second sample dollar selected = $127,800 + $215,625 = $343,425
Third sample dollar selected = $343,425 + $215,625 = $559,050
Fourth sample dollar selected = $559,050 + $215,625 = $774,675
Fifth sample dollar selected = $774,675 + $215,625 = $990,300
The selection of the first five sample items would be associated with a sampling error or misstatement. The auditor must then verify the items and correct any inaccuracies found.
To know more about inventory visit:
https://brainly.com/question/31146932
#SPJ11
Assume that you are working as an analyst in VNN Investment Bank. The CFO of Meteor Manufacturing Limited (MM Ltd.) has approached VNN for an advice whether MM should refund its existing bonds with a size of $65 million. The bonds were issued 5 years ago with an original maturity of 15 years and annual coupon rate of 12 percent. At the time of issue, the underwriting cost was $5 million. For tax purposes, this underwriting cost is being amortized on a straight-line basis over the 15-year original life of the bonds. The issues are currently callable at a premium of 10 percent. Coupled with the fact that the market interest rates on new 10-year bonds of the same quality have dropped to 10 percent, MM Ltd. is anxious to determine how much the company would save if the old issue could be refunded at the new rate. VNN has assured MM that the underwriting cost of the new issue will be $1 million lower than what it was required for the oldissue at the time of the issuance. This amount, which will be paid upfront, will be amortized on a straight-line basis over the life of the new bonds for tax purposes. The company’s tax rate is 30%. Both VNN and MM’s senior management anticipate that long-term interest rate will be stable at 10 percent.
Your colleague at VNN believes that VNN should advice MM to call the old issue and refund it with the new issue because the new issue has both lower interest rate and lower underwriting costs. Do you think your colleague is correct in their recommendation? Why or why not? As a senior analyst at VNN Investment Bank looking after this case, what recommendation would you make to the CFO of MM Ltd? Provide your analyses with detailed calculations.
As a senior analyst at VNN Investment Bank, I would recommend the CFO of MM Ltd. to call the old bonds and refund them with the new issue.
This recommendation is based on the analysis of the cost savings associated with the refunding and the comparison of the net present value (NPV) of the two options.
To assess the cost savings, we need to calculate the present value of the old and new bonds.
For the old bonds:
Original size: $65 million
Coupon rate: 12%
Years remaining: 10 years (original maturity of 15 years minus 5 years already passed)
Market interest rate: 10%
Underwriting cost: $5 million (amortized over 15 years)
Tax rate: 30%
Using the present value formula for a bond, we can calculate the present value of the remaining payments for the old bonds:
PV_old = Coupon payment x [1 - (1 + Market interest rate)^(-Years remaining)] / Market interest rate + Principal payment / (1 + Market interest rate)^Years remaining
PV_old = $65 million x [1 - (1 + 0.10)^(-10)] / 0.10 + $65 million / (1 + 0.10)^10
PV_old ≈ $51.26 million
For the new bonds:
Size: $65 million
Coupon rate: 10%
Years: 10 years
Market interest rate: 10% (same as old bonds)
Underwriting cost: $4 million (amortized over 10 years, $1 million lower than old issue)
Tax rate: 30%
Using the same present value formula, we can calculate the present value of the payments for the new bonds:
PV_new = Coupon payment x [1 - (1 + Market interest rate)^(-Years)] / Market interest rate + Principal payment / (1 + Market interest rate)^Years
PV_new = $65 million x [1 - (1 + 0.10)^(-10)] / 0.10 + $65 million / (1 + 0.10)^10
PV_new ≈ $51.26 million
By comparing the present values, we can see that PV_old is equal to PV_new, indicating that the cost savings from the refunding are not significant.
However, it's important to consider the underwriting cost savings, which are $4 million for the new issue compared to $5 million for the old issue. These savings are upfront and will be amortized over the life of the new bonds for tax purposes.
Considering the lower underwriting costs and the expectation of stable long-term interest rates, it would be beneficial for MM Ltd. to proceed with the refunding of the old bonds with the new issue. This will result in immediate cost savings and a slightly lower amortized underwriting cost for tax purposes. It also aligns with the expectation of stable interest rates.
Therefore, I agree with my colleague's recommendation to call the old issue and refund it with the new issue.
Learn more about bonds here:
https://brainly.com/question/31358643
#SPJ11
Alisha invests 5,000 into an account. The e↵ective monthly interest rate is .3% for the first six months, .5% for the next year, and .8% for the next six months. Find the amount Alisha has in the account after two years, and find the average compound monthly interest rate (i.e. the equivalent e↵ective monthly interest rate) for the two year period. Finally, find the average yearly interest rate (i.e. the equivalent e↵ective annual interest rate) for the two year period.
After two years, Alisha will have $5,327.76 in her account. The average compound monthly interest rate for the two-year period is approximately 0.47%. The average yearly interest rate, which represents the equivalent effective annual interest rate, is approximately 5.73%.
To calculate the amount Alisha has in the account after two years, we need to apply the compound interest formula for each time period. In the first six months, the effective monthly interest rate is 0.3%, so the amount becomes $5,000 * (1 + 0.003)^6 = $5,089.15. For the next year, with a 0.5% effective monthly interest rate, the amount becomes $5,089.15 * (1 + 0.005)^12 = $5,228.89. Finally, for the last six months, the effective monthly interest rate is 0.8%, resulting in $5,228.89 * (1 + 0.008)^6 = $5,327.76.
To find the average compound monthly interest rate for the two-year period, we take the geometric mean of the three interest rates: [(1 + 0.003) * (1 + 0.005) * (1 + 0.008)]^(1/3) - 1, which is approximately 0.47%.
To determine the average yearly interest rate, we need to calculate the equivalent effective annual interest rate. The formula for this is (1 + r)^12 - 1 = (1 + 0.0047)^12 - 1, which gives us approximately 5.73%. Therefore, the average yearly interest rate for the two-year period is approximately 5.73%.
To know more about interest rate click here brainly.com/question/25720319
#SPJ11
Question Zicco owns a provision shop at Keta. On 31st December, 2020 the following trial balance was extracted from her books: Dr. Cr. GH¢ GHE Capital (1/1/2020) 960,000 Motor van(cost) 680,000 Equipment (cost) 320,000 Accumulated depreciation: Motor van 128,000 Equipment 104,000 Inventory (1/1/2020) Purchases and sales 450,000 Returns 12,000 Carriage outwards Carriage inwards Trade Receivables Trade payables 120,000 Allowance for receivables 16,000 Bad debts Wages and Salaries 270,000 Discounts 88,000 Postage and Stationery Utility Bills 10% Loan 160,800 Rent & Rates Sundry expenses Cash Bank Personal drawings 3,108,800 1520,000 27,000 120,000 48,000 20,400 290,000 60,000 54,000 132,000 128,000 42,000 100,000 239,400 40,000 88,000 3,108,800 The following additional information was made available:
The Income statement for the year ended 31st December 2020 has net income before interest and tax (1,308,400). The Statement of financial position as of 31st December 2020 has Total assets of 801,600 and Total equity and liabilities of 2,180,800.
a) Income Statement for the Year Ended 31st December 2020:
Sales revenue 1,520,000
Less: Sales returns (12,000)
Net sales revenue 1,508,000
Less: Cost of goods sold:
Inventory at 1/1/2020 450,000
Add: Purchases 1,520,000
Less: Inventory at 31/12/2020 (176,000)
Cost of goods sold 1,794,000
Gross profit (286,000)
Less: Operating expenses:
Carriage outwards 20,400
Discounts 88,000
Wages and salaries 270,000
Postage and stationery (accrued) 28,000
Utility bills 10,000
Rent and rates 132,000
Sundry expenses 42,000
Depreciation expense:
Motor van (40% x 680,000) 272,000
Equipment (50% x 320,000) 160,000
Total operating expenses (1,022,400)
Net income before interest and tax (1,308,400)
b) Statement of Financial Position as at 31st December 2020:
Assets:
Motor van (680,000 - 128,000 - 272,000) 280,000
Equipment (320,000 - 104,000 - 160,000) 56,000
Inventory 176,000
Trade receivables (120,000 - 16,000 - 10,000) 94,000
Prepaid rent and rates 25,600
Prepaid postage and stationery 28,000
Cash 42,000
Bank 100,000
Total assets 801,600
Equity and Liabilities:
Capital 960,000
Accumulated depreciation: Motor van (128,000 + 272,000) 400,000
Equipment (104,000 + 160,000) 264,000
Allowance for receivables 10,000
Loan 160,800
Trade payables 54,000
Accrued wages and salaries 132,000
Total equity and liabilities 2,180,800
To know more about Income statement refer here:
https://brainly.com/question/31745960#
#SPJ11
Complete Question:
Zicco owns a provision shop at Keta. On 31st December, 2020 the following trial balance was extracted from her books: Dr. Cr. GH¢ GHE Capital (1/1/2020) 960,000 Motor van(cost) 680,000 Equipment (cost) 320,000 Accumulated depreciation: Motor van 128,000 Equipment 104,000 Inventory (1/1/2020) Purchases and sales 450,000 Returns 12,000 Carriage outwards Carriage inwards Trade Receivables Trade payables 120,000 Allowance for receivables 16,000 Bad debts Wages and Salaries 270,000 Discounts 88,000 Postage and Stationery Utility Bills 10% Loan 160,800 Rent & Rates Sundry expenses Cash Bank Personal drawings 3,108,800 1520,000 27,000 120,000 48,000 20,400 290,000 60,000 54,000 132,000 128,000 42,000 100,000 239,400 40,000 88,000 3,108,800
The following additional information was made available:
i) Inventory at 31st December, 2020 was valued at GH¢ 176,000.
ii) Depreciation at the rate of 40% on cost for Motor Van and 50% on Equipment on reducing balance method basis.
iii) An amount of GH¢ 28,000 is accrued in respect of Postage and Stationery at 31st December, 2020.
iv) Allowance for receivables is to be adjusted to GH 10,000 at 31st December, 2020 as a result of improvement in debt recovery efforts.
v) Rent and rates pre-paid amounted to Ghø25,600.
vi) The loan was contracted on 1st January, 2020. Provision should be made for the interest on loan.
Required: a) Prepare the Income statement for the year ended 31st December 2020
b) Prepare the Statement of financial position as at 31st December 2020
Julie wishes to draw down her Canada Pension retirement benefit early. If Julie were 65, her CPP retirement benefit would be $800 per month. How much will Julie receive per month if she draws down her pension starting at age 63? A $733 B $627 C $701 D $685
If Julie decides to draw down her Canada Pension retirement benefit early at age 63, the amount she will receive per month will be lower than the amount she would receive at age 65. However, to determine the exact amount, we need to consider the CPP reduction factor for early retirement.
The CPP reduction factor for early retirement is 0.6% per month prior to age 65, up to a maximum reduction of 36%. Since Julie wants to start drawing her pension at age 63, which is 24 months before age 65, the reduction in her benefit will be 24 times 0.6%, which is 14.4%.
To calculate Julie's monthly benefit at age 63:
$800 - (14.4% of $800) = $800 - ($115.20) = $684.80
Rounding to the nearest dollar, Julie will receive approximately $685 per month if she draws down her pension starting at age 63. Therefore, the closest option is (D) $685.
Learn more about Pension here:
brainly.com/question/28319433
#SPJ11
Scenario Analysis: Go back to the sheet of Income Statement. Use the scenario manager to create three scenarios stated below and create a scenario summary, which will be a separate worksheet.
a. You will create 3 different scenarios by changing the product pricing mix in order to determine their impacts to Net Profit.
- The First Scenario is to raise the price of Product B by $5.00. However, this would cause sales of Product B to fall by 800 units and sales of Product C to increase by 700 units. Title the scenario name as Product B Price Change
- The Second Scenario is to raise the price of Product C by $4.00. However, this would cause sales of Product C to fall by 550 units and sales of Product B to increase by 400 units. Title the scenario name as Product C Price Change
- The Third Scenario is to raise the price of both Product B and Product C by $6.00. This would cause sales for Products B and C to both decrease by 350 units each. Title the scenario name as Product B and C Price Changes
b. Create a Scenario summary report, which will become a new and separate worksheet. Make sure the Results Cells include Earnings Before Taxes and Net Profit. Rename this worksheet as Scenario Analysis, and move the sheet to the right of the sheet of Goal Seek.
c. Write up a brief conclusion on your scenario analysis result in the sheet of Scenario Analysis, below the summary report. Which scenario will bring the company the optimum outcome of 2017 sales?
Scenarios by changing the product pricing mix in order to determine their impacts to scenarios by changing the product pricing mix in order to determine their impacts to Net Profit 2 = $88071.62.
Revenue of product A = 6543 × $62.00
Revenue of product A = $405666.00.
COGS of product A= Unit sold × Unit cost
COGS of product A = 6543.00 × $48.00
COGS of product A = $314064.00.
Gross profit = Total Revenue - Total COGS.
Gross profit of Scenario 1 = $1112043.00 -$923151.00
Gross profit of Scenario 1 = $188892.00.
Earning Before Tax= Gross profit-Total Operating expenses.
Earning Before Tax of Scenario 1 = $188892.00 - $209126.18
Earning Before Tax of Scenario 1 = -20234.18.
Net profit = Earning before tax-Tax 25%
Net profit of Scenario 2 = $117428.82- 25% of $117428.82
Net profit of Scenario 2 = $117428.82- $29357.21
Net profit of Scenario 2 = $88071.62.
Learn more about on Scenario Analysis, here:
https://brainly.com/question/31544671
#SPJ4
Note: the other Net Profit scenario was the as usual calculate.
Assume the market for one-bedroom apartments in a large city has the following demand and supply functions, where R is the monthly rent in dollars and Q is the number of one-bedroom apartments: Demand: R = 700 – Q Supply: R = 100 + 2Q Now suppose that the government imposes a rent ceiling of $400 per month. Draw a graph of the market. Be sure to fully and clearly label the graph, including the Supply and Demand curves (as D and S respectively), Equilibrium Quantity (Q*), Equilibrium Price (R*), Rent Ceiling (Rc), Quantity Demanded with the Rent Ceiling (Qdc) and Quantity Supplied with the rent ceiling (Qsc).
What are two unintended consequences of a rent ceiling, other than the obvious shortage of apartments?
Who benefits because of this price ceiling? Who is harmed?
What would be an alternate method to ensure that more renters could afford housing besides using a price ceiling?
Two unintended consequences of the rent ceiling are reduced quality of apartments and inefficient allocation of housing. The price ceiling benefits renters while landlords and potential renters who cannot find housing are harmed.
The graph of the market with the rent ceiling shows the demand curve (D) intersecting with the rent ceiling (Rc) at a point below the equilibrium price (R*). This intersection creates a new quantity demanded (Qdc) that is higher than the quantity supplied (Qsc), resulting in a shortage of apartments.
Two unintended consequences of the rent ceiling are reduced quality of apartments and inefficient allocation of housing. Landlords may have less incentive to maintain or improve the quality of their apartments due to reduced rent revenue. Additionally, the rent ceiling can lead to inefficient allocation of housing as it may not be based on the true market demand and supply equilibrium.
Renters who can secure an apartment below the rent ceiling benefit from the price ceiling as they pay a lower rent than they would have in the absence of the ceiling. However, landlords are harmed as they receive lower rental income, potentially leading to reduced maintenance and investment in housing. Moreover, potential renters who cannot find housing due to the shortage are also harmed.
An alternate method to ensure more renters can afford housing is by providing subsidies or housing vouchers to low-income renters. This approach directly targets those in need without distorting the market mechanisms. Subsidies can be targeted to individuals or families based on their income levels, allowing them to afford housing based on their specific financial circumstances, while maintaining the market equilibrium and incentivizing landlords to provide quality housing.
To know more about landlords click here brainly.com/question/29642592
#SPJ11
The articles of incorporation of XYZ Corporation provide, among other matters, for an authorized capital stock of P1,000,000.00 divided into 10,000 shares at P100.00 par value per share. Five thousand (5,000) shares have been subscribed at P100.00 per share of which 3,000 shares have been paid in full while 2,000 shares have been paid at 80% of the subscription price. Of the 3,000 shares paid in full, 100 shares were reacquired at par value.
The issued capital stock of the corporation is: ans: 500,000
The outstanding capital stock of the corporation is: ans: 490,000
The subscribed capital stock of the corporation is: ans:500,000
The issued capital stock of XYZ Corporation is P500,000, the outstanding capital stock is P490,000, and the subscribed capital stock is P500,000.
To calculate the issued, outstanding, and subscribed capital stock of XYZ Corporation, we can use the information provided:
Issued Capital Stock:
The issued capital stock represents the total number of shares that have been issued by the corporation. In this case, 5,000 shares have been subscribed, but we need to deduct the 100 shares that were reacquired.
Issued Capital Stock = Subscribed Shares - Reacquired Shares
Issued Capital Stock = 5,000 - 100
Issued Capital Stock = 4,900 shares
Since each share has a par value of P100, we can calculate the issued capital stock amount as follows:
Issued Capital Stock Amount = Issued Capital Stock * Par Value
Issued Capital Stock Amount = 4,900 * P100
Issued Capital Stock Amount = P490,000
Therefore, the issued capital stock of XYZ Corporation is P490,000.
Outstanding Capital Stock:
The outstanding capital stock represents the total number of shares that have been issued and are currently held by shareholders. Since there were no shares repurchased from the 5,000 subscribed shares, the outstanding capital stock will be the same as the issued capital stock:
Outstanding Capital Stock = Issued Capital Stock
Outstanding Capital Stock = P490,000
Therefore, the outstanding capital stock of XYZ Corporation is P490,000.
Subscribed Capital Stock:
The subscribed capital stock represents the total number of shares that have been subscribed by shareholders, regardless of whether they have been fully paid or not.
Subscribed Capital Stock = Subscribed Shares * Par Value
Subscribed Capital Stock = 5,000 * P100
Subscribed Capital Stock = P500,000
Therefore, the subscribed capital stock of XYZ Corporation is P500,000.
Learn more about l stock here: https://brainly.com/question/24239991
#SPJ11
Managing the Business Enterprise (5 points): "Consider the following statement: In some companies, it is important that the CEO put more emphasis on technical skills than on human relations skills." Do you agree or disagree with the statement? Defend your answer with at least 2 thoughts or facts.
Disagreeing with the statement that CEOs should put more emphasis on technical skills than on human relations skills in some companies, as effective leadership requires a balance of both skill sets to succeed.
I disagree with the statement that CEOs should prioritize technical skills over human relations skills in some companies. Effective leadership requires a balance between technical proficiency and strong human relations skills. Building and managing teams: CEOs are responsible for leading and managing teams of employees. Strong human relations skills, such as effective communication, empathy, and conflict resolution, are crucial for fostering a positive work environment, promoting teamwork, and motivating employees. Technical skills alone may not be sufficient to inspire and engage a workforce.
Stakeholder relationships: CEOs play a critical role in building and maintaining relationships with stakeholders, including customers, investors, suppliers, and the community. Human relations skills are essential for understanding their needs, managing expectations, and creating mutually beneficial partnerships. This aspect of leadership goes beyond technical skills and requires emotional intelligence, negotiation skills, and the ability to connect with people on a personal level.
While technical skills are undoubtedly important for CEOs, they should be complemented by strong human relations skills. The ability to effectively communicate, collaborate, and inspire people is essential for successful leadership and fostering a positive organizational culture. By prioritizing both technical and human relations skills, CEOs can create a well-rounded leadership approach that contributes to the overall success of the company.
Learn more about Stakeholder here: https://brainly.com/question/3044495
#SPJ11
Stock A has a beta of 1.6. Stock B has a beta of 0.9 and an expected return of 12 percent. If the risk- free rate is 2 percent and both stocks have equal reward-to-risk ratios, what is the expected return on stock A? 17.78 percent 21.33 percent None of the answers is correct. 14.50 percent 19.78 percent
The expected return on stock A is 14.50 percent. Given, The beta of stock A = 1.6The beta of stock B = 0.9The expected return of stock B = 12%Risk-free rate = 2%Reward-to-risk ratios of both stocks are equal.
We need to calculate the expected return of stock A. Now, the reward-to-risk ratio of stock B is; Reward-to-risk ratio of stock B = (expected return of stock B − risk-free rate)/beta of stock B = (12 − 2)/0.9 = 10/0.9 = 11.1111Now, the reward-to-risk ratio of stock A is the same as stock B because both have equal ratios. So, we can say that the reward-to-risk ratio of stock A = 11.1111.Now, we can use the Capital Asset Pricing Model (CAPM) to calculate the expected return of stock A.CAPM = risk-free rate + beta of stock A × (expected market return − risk-free rate)Since both stocks have equal reward-to-risk ratios, the expected market return is equal to the expected return of stock B. So, expected market return = expected return of stock B = 12%Now, substitute the given values in the above formula to get the expected return of stock A.14.50% = 2% + 1.6 × (12% − 2%)Therefore, the expected return on stock A is 14.50 percent.
To know more about stock visit:
https://brainly.com/question/31940696
#SPJ11
believe that you are working for a start-up in the industry that you are considering for a career. And your company will be selling an imported service or goods. Share what that service or good will be and which country you think would be best to import from and why. Share what you think might be the biggest challenges in working with companies in that country. max 200 words
One potential challenge is the competitive nature of the US market. It may be challenging to differentiate our software solution and gain market share in a crowded industry.
As an employee of a startup in the technology industry, the service our company will be selling is a cloud-based project management software solution. This software will provide businesses with a centralized platform to plan, track, and collaborate on their projects efficiently.
In terms of importing this service, the country that would be best to consider for import would be the United States. The US has a well-established technology sector, with a high level of expertise and innovation in the field of cloud computing and software development. It is home to many renowned tech companies and has a robust ecosystem of startups and industry events. Importing from the US would allow us to tap into this expertise, access a large market, and benefit from established business networks.
However, there may be challenges in working with companies in the US. One potential challenge is the competitive nature of the US market. It may be challenging to differentiate our software solution and gain market share in a crowded industry. Additionally, navigating legal and regulatory requirements, such as data protection and privacy regulations, can be complex and may require a thorough understanding of US laws. Cultural differences and time zone disparities may also pose communication and collaboration challenges when working with US-based companies.
To overcome these challenges, it would be important to conduct market research and develop a unique value proposition that sets our software apart from competitors. Building strong relationships with local partners and customers, attending industry events, and leveraging digital marketing strategies would help establish a presence in the US market. Seeking legal counsel and ensuring compliance with relevant regulations would also be essential for a smooth operation. Effective communication channels and proactive customer support would help bridge any cultural and time zone gaps, ensuring a positive experience for our clients in the US.
To know more potential challenge,
https://brainly.com/question/6985709#
#SPJ11
QUESTION 23
Using the following data, calculate the Apple's CFFA Cashflow to creditors 67
Dividend paid 400
Net new equity-347
O a. 680
O b. 320
O c. 120
O d. None of the above
The answer options (a, b, c) accurately represent the calculated CFFA of $747. The correct answer is option D: None of the above.
To calculate Apple's Cash Flow to Creditors (CFFA), we need to consider the dividend paid and the net new equity.
CFFA = Dividend Paid - Net New Equity
Given the data provided:
Dividend Paid = $400
Net New Equity = -$347 (negative value indicates a decrease in equity)
CFFA = $400 - (-$347) = $400 + $347 = $747
Therefore, none of the given answer options (a, b, c) accurately represent the calculated CFFA of $747. The correct answer is option D: None of the above.
Learn more about CFFA here
https://brainly.com/question/10644839
#SPJ11